FDA to ban trans-fats?

The Food and Drug Administration (FDA) released a new proposed rule to effectively eliminate trans-fat from all food products in the United States. The proposal is open to a 60-day comment period with a twofold objective: to certify that trans-fat, specifically partially hydrogenated oils (PHOs), are not safe for human consumption; and to orchestrate a gradual elimination of trans-fats from food products over several years.

The Independent Bakers Association (IBA) is reviewing the proposal and investigating the potential impact on the baking industry. IBA members are encouraged to share thoughts, opinions or questions about the proposal via e-mail (independentbaker@yahoo.com), fax (202-337-3809) or mail (P.O. Box 3731, Washington, DC 20027-0231).

A statement from the FDA and the proposal are available here. IBA will evaluate the proposal and share elements significant to the baking industry with our members.

H-E-B Puts Families First With Normal Thanksgiving Hours

As part of its continued commitment to support the well-being of families throughout Texas, H-E-B will close early on Thanksgiving Day and will re-open the following morning at normal store hours. The San Antonio-based retailer’s decision, which is contrary to the increasingly common practice of accelerating Black Friday events earlier and earlier each year, is based on its conviction to put family first this holiday season and honor the cherished traditions held by families throughout Texas.

"At H-E-B, we believe that family matters more than anything else, especially during the holiday season," said H-E-B President Craig Boyan. "We feel strongly that our customers and partners should have the opportunity to spend quality time with their loved ones."

H-E-B Thanksgiving Day store hours are as follows:

• Thurs., Nov. 28 - stores will close at 2 p.m.
• Fri., Nov. 29 - stores will open at 6 a.m. and resume normal operating hours with Black Friday deals in all H-E-B plus! locations. (Black Friday deals exclusive to H-E-B plus! stores)

"Our customers can once again expect to see amazing Black Friday deals in all H-E-B plus! locations on their favorite brands and products in electronics, toys, housewares and more," said Bill Anderson, H-E-B’s group VP of general merchandise. "Our everyday commitment to low prices is especially paramount this holiday season, and we look forward to providing each community with opportunities to save without having to sacrifice time with those they care about most during this special time of year."

H-E-B, with sales of more than $19.4 billion, operates more than 350 stores in Texas and Mexico. Known for its innovation and community service, H-E-B employs more than 80,000 partners and serves millions of customers in more than 150 communities.

FDA’s Nutrition Facts Overhaul Spurs CPG Resource

FoodMinds LLC, Nutrition Impact LLC and EAS Consulting Group LLC have developed Food Label Compass for food and beverage companies, inspired by the Food and Drug Administration’s (FDA) plans to update its 20-year-old Nutrition Facts label policies “based upon the latest science-based nutrition recommendations.”

According to the consultancies, the new resource offers “a specialized suite of nutrition analysis, regulatory consulting and strategic services to guide food and beverage companies in understanding the impact, complying, communicating, and capitalizing on the new FDA guidelines.”

These “essential services” are in-depth analyses of the food and nutrient content of clients’ brands in relation to the new guidelines, identifying potential changes to the serving-size rules, and assessing the impact of potential changes to Daily Values (DVs) and how nutrition claim criteria may be affected; developing regulatory recommendations and guidance to create labels reflecting the new requirements, validating claim opportunities, answering questions on compliance, and ensuring the information is presented in an approved and consumer-friendly manner; and the development of a strategic road map for the client’s product portfolio and brand messaging to position and plan around new labels that will effectively communicate the new nutrition information.

“From a practical standpoint, we have learned a lot in the past 20 years about the world of food labeling, and how companies should meet regulatory requirements balanced with helping consumers make informed choices,” said Robert C. Post, chief science officer of Chicago-based FoodMinds. “Through our new Food Label Compass, we have effectively packaged a mind-trust of science-based analysis, regulatory counsel, and marketing communications experts to provide clients an edge to successfully navigate and capitalize on this opportunity.”

“While the nutrition label has been an invaluable tool to educate consumers, it is overdue for an update so that it can reflect current science and dietary recommendations,” noted Victor Fulgoni, SVP at Battle Creek, Mich.-based Nutrition Impact. “The trick for food and beverage industry will be how to successfully navigate upcoming changes proactively, and then clearly communicate this new information to their consumers.”

As well as changes to how nutrition label information will be presented, the expected FDA changes will include guidance for claims on labeling, which will present a challenge for the industry. “Understanding where there may be new claim opportunities and what scientific research will be needed to validate them is just one area,” explained Edward A. Steele, chairman and CEO of Alexandria, Va.-based EAS Consulting Group. “Just as important is how to be confident that any proposed new labeling is correct.”

According to the FDA, consumer use of the Nutrition Facts label continues to grow, with the percentage of consumers reporting that they often use the label rising from 44 percent in 2002 to 54 percent in 2008.

The Most Wonderful Time of the Year By Gustavo Guerra

With consumers on the hunt for everything they’ll need to prepare for the holidays, the next few months can be the most wonderful time of the year for retailers. The holiday season, starting with Halloween and ending with New Year’s, provides them with several opportunities to connect with shoppers and make an impact on sales of everything from candy to turkeys and even beer. In fact, Halloween and Christmas are in the top six beer-selling holidays in the United States, with a total volume of more than 51 million and 54 million cases, respectively, in only a two-week period.¹

So how can grocers make an even bigger impact on sales this holiday season? Many of them will look for programs that specifically target the fastest-growing segment of the U.S. population: Hispanics. Not only are Hispanics more driven to purchase by celebrations and holidays than their general market counterparts² , they’re also more likely to increase spending for these types of celebrations.³ Furthermore, anchoring retail programs to relevant Hispanic holidays and traditions can effectively extend the sales period by several days.

Día de los Muertos

Día de los Muertos (Day of the Dead), a holiday celebrated throughout Latin America on Nov. 1-2, has increased in popularity among bicultural U.S. Hispanics and even among their general market counterparts. An occasion to remember loved ones who have passed away, the holiday is usually observed by gathering with family and friends for special meals and to highlight the items that their ancestors enjoyed in life, including -- you guessed it -- beer.

Brands have started to notice the popularity of Día De Los Muertos, and many have already leveraged the holiday to connect with shoppers through their passion points of culture, tradition and art. It doesn’t hurt that Día de los Muertos extends the high beer-selling period for two days after Halloween.

Within the Heineken USA portfolio, Indio beer recently wrapped up its Day of the Dead retail program, which took over small- and large-scale retail accounts across California, Texas, Chicago, Las Vegas and Phoenix. Thematic POS materials educated shoppers on the holiday by highlighting key visual elements of the celebration such as cempasuchil (marigold flowers), photo frames and papel picado (perforated tissue paper banners). Throughout the four-week program, the dark Mexican lager brand encouraged Hispanic bicultural Millennials 21 and older to “Do Their Thing” and celebrate the holiday in their own way with Indio.

Maratón Lupe-Reyes

Christmas and New Year’s Eve are the pinnacles of the holiday season for most retailers, and the last chance of the year to generate sales. So why not extend it as much as possible?

Retailers can leverage a tradition in Mexico known as the Maratón Lupe-Reyes, a string of holiday celebrations that kicks off Dec. 12 and ends Jan. 6. Yes, that’s 14 separate occasions within a three-week period for Hispanic consumers to celebrate with family and friends.

To keep shoppers coming back to the store throughout Lupe-Reyes, Tecate and Tecate Light are providing grocers with a program comprising a variety of elements designed to give men of carácter everything they need to “survive” the Maratón season. For example, the attention-grabbing POS goes beyond price cards, cooler decals and case stackers to include a calendar-format “Survival Guide” poster with tips for consumers to make it through the celebrations responsibly. There’s also a text-to-win sweepstakes of branded items, such as glasses and domino sets.

Additionally, Tecate is partnering with brands like Guerrero tortillas and Tajín seasoning to offer consumers enticing mail-in and instant rebates on these holiday party essentials, while expanding Tecate’s visibility outside of the beer aisle and driving cross-merchandising purchases for higher basket rings.

These retail holiday programs have been well received in the market, as they give large- and small-scale retailers the opportunity to extend the most wonderful holiday shopping period and connect with their Hispanic customers in relevant and impactful ways.

[1] National Retail Federation and BIGInsight Research; "Nielsen Top Beer Holidays," 2011

[2] "Nielsen Top Beer Holidays," 2011

[3] "Mintel Holiday Study," 2012

Gustavo Guerra is brand director for Tecate Franchise and Indio at White Plains, N.Y.-based Heineken USA.

Butterball Experiencing Fresh Turkey Shortage

Ahead of Thanksgiving, Butterball LLC is reporting a shortage of some fresh whole turkeys, but retailers and shoppers needn’t worry about going bird-less this holiday.

Although confirming “some shortage of fresh whole turkeys, predominately for turkeys 16 pounds or greater, due to unexpected low weight gains,” Garner, N.C.-based Butterball said it “has ample supply of its frozen whole turkeys of all sizes – whether small, medium or large. Butterball has shipped 100 percent of customer orders of frozen whole turkeys, and products are in distribution across the country.”

The company added, “While we are continuing to evaluate all potential causes” of the shortage, “we are working to remedy the issue and are currently seeing turkey weight gain improvements.” It also “expects to completely fulfill all customer orders of fresh whole turkeys for Christmas.”

No other brands or turkey sizes appear to be affected by the shortage, the National Turkey Federation (NTF) told Progressive Grocer. According to Keith Williams, VP for communications and marketing at Washington, D.C.-based NTF, 85 percent of the turkey market is flash-frozen – which Williams hastened to note is “the same quality as fresh” – with just 15 percent fresh, of which the affected Butterball turkeys are just one “very small section.”

In the meantime, those who usually buy large fresh whole turkeys have options, Butterball emphasized. “If consumers cannot find a Butterball fresh whole turkey in their desired size, they can purchase a Butterball frozen whole turkey for their Thanksgiving meal,” the company suggested. “Depending on the size of their turkey, it typically takes between three to five days to thaw; we suggest thawing in a refrigerator for four hours per every pound of turkey.”

Retailers such as Springfield, Mass.-based Big Y, an independent grocer with 61 stores in Connecticut and Massachusetts, are prepared for the turkey shortfall, however. After being informed by Butterball that its fresh turkey orders, like those of other retailers across the United States, had been halved, Big Y sourced additional turkeys from other suppliers to have enough for its shoppers.

Additionally, to make sure that shoppers will have 16-pound and larger turkeys for the upcoming holiday, Big Y has upped its supply of large frozen Butterball turkeys of 16 pounds or more as an alternative for those who usually buy large fresh Butterball turkeys. The grocer also has plenty of fresh Butterballs under 14 pounds, as well as large fresh turkeys from other brands, including Shady Brook.

Big Y said it would continue to take customer orders for specific turkeys for all types, except for the large fresh Butterballs. In addition to a whole turkey, many of its customers select turkey breast, duck, goose, capon, other fresh turkey parts, or even a fully prepared turkey dinner as additional meal options, the grocer added, noting that it will introduce a Turkey Help Line to offer cooking tips, thawing suggestions, turkey size and selection advice, and other turkey-related questions. The help line will be open from Nov. 21 through Nov. 27.

NTF’s Williams praised Butterball’s honesty regarding the shortage as “good customer relations” and the “sign of a very good-thinking company.”

Nestle unloads Jenny Craig 11/7/2013 - by Monica Watrous

VEVEY, SWITZERLAND — The weight is over.

Amid swirling speculation over Nestle S.A.’s plans to divest weaker brands, the Vevey-based company has sold its Jenny Craig weight management business in North America and Oceania to North Castle Partners L.L.C., a Greenwich, Conn.-based private equity firm. Nestle’s Jenny Craig business in France is not part of the transaction. Financial terms of the acquisition were not disclosed.

Jenny Craig, founded in 1983, has been part of Nestle Nutrition since 2006, but the brand has been struggling in recent years, the company said.

“We do not disclose profit by businesses, but I will tell you that the Jenny Craig business — this year as well as last year — was very much below our expectations and below what they have been able to do in the last few years,” said Wan Ling Martello, chief financial officer of Nestle, in an Aug. 8 earnings conference call.

The company had shifted focus of Jenny Craig more to e-commerce and closed Jenny Craig centers in Europe.

“Jenny Craig, when we bought it, it was basically a U.S. and Australian business,” said Roddy Child-Villers, head of investor relations for Nestle, in the conference call. “We still have a good Australian business. We opened the U.K. operation. It was fundamentally an on-line operation, not a store-driven operation. And we have a small operation in France, and that continues.”

Declining to mention specifics, the company revealed plans to divest underperforming brands during an Oct. 1 investor seminar.

“Divestitures, we’re going to have some,” said Paul Bulcke, chief executive officer. “We’re not going to give figures on this, as you can imagine. But certain things that are not — that we can see — all of our strategy and all that — but we cannot enjoy the business. We want to be in business, not in agony.”

North Castle Partners invests in high-growth, middle-market businesses in the health and wellness category, including fitness facilities, performance equipment and apparel and personal care products. In 2010, the firm acquired Flatout, a brand of high-protein, high-fiber flatbreads.

North Castle Partners will offer employment to Jenny Craig staff in the affected regions.

F.D.A. moves to remove artificial trans fats from processed foods 11/7/2013 - by Keith Nunes

WASHINGTON — The Food and Drug Administration believes partially hydrogenated oils (P.H.O.s) no longer belong on the list of ingredients generally recognized as safe. The agency has published a Federal Register notice to that effect with the goal of removing artificial trans fats from processed foods.

If the F.D.A.’s preliminary determination is finalized, then partially hydrogenated oils would become food additives subject to premarket approval by the agency. Foods containing unapproved food additives are considered adulterated under U.S. law, meaning they cannot be sold legally.

“If F.D.A. determines that P.H.O.s are not GRAS, it could, in effect, mean the end of artificial, industrially-produced trans fat in foods,” said Dennis M. Keefe, Ph.D., director of the F.D.A.’s Office of Food Additive Safety. “F.D.A. is soliciting comments on how such an action would impact small businesses and how to ensure a smooth transition if a final determination is issued.”

The F.D.A. has the authority to act when it believes an ingredient is, in fact, not GRAS, and that’s what the agency said its preliminary determination is doing now with P.H.O.s. AFederal Register notice will be published on Nov. 7 announcing the preliminary determination that P.H.O.s are not GRAS, which includes the opening of a 60-day public comment period.

Walmart Building Its First Convenience Store for Test

BENTONVILLE, Ark. – Wal-Mart Stores Inc. plans to build its first convenience store in the same town as its headquarters, according to a Northwest Arkansas Business Journal report.

The new c-store will be built at the northwest corner of Arkansas Highway 102 and South Walton Boulevard, on a 2.01-acre site the company purchased for $4.5 million in September. It will offer gas, snacks and beverages along with staples such as milk, bread and eggs.

"We know this type of convenience store is popular with customers," said Walmart spokeswoman Deisha Barnett. "We're excited about the opportunity to test a new store and learn."

There are no current plans to build additional Walmart c-stores, Barnett added.

H-E-B Plans $100M Investment in Downtown San Antonio

H-E-B has put a $100-million headquarters expansion on the drawing board. The move would double its downtown San Antonio workforce by 2030 and transform the area just north of the historic King William neighborhood. The master plan includes a grocery store, to be called Flores Market, at South Flores Street and César E. Chávez Boulevard, according to San Antonio Express-News.

The retailer previously said that store wouldn't happen without a $1-million incentive the city put on the table, the company now no longer is seeking the cash. It has also increased the size of the proposed market, from no more than 8,000 square feet to 10,000 square feet. The company, however, still wants to see the controversial closure of South Main Avenue, the newspaper reported.

Chief Operating Officer Craig Boyan unveiled H-E-B's master plan in an exclusive interview with the San Antonio Express-News.

Years in the making, it includes several mixed-use buildings, new public spaces and a pedestrian and bike trail along South Flores between Chávez and Arsenal Street. The redevelopment would encompass nearly 27 acres. "Our proposal is much more than just a downtown store," Boyan said. "We think that we can help make South Flores and the San Pedro Creek a great street and a great redevelopment area in the city, perhaps like another Southtown."

The first phase of H-E-B's plan includes a culinary school and test kitchen, renovation of its 1601 Nogalitos St. location, the downtown store and a connected gas station. It also includes construction of a 24-foot pedestrian and bike path, which, like Flores Market, could be completed within a year of city approval. It will cost approximately $40 million.

The second phase, with an estimated price tag of $60 million to $80 million, spans over the next decade and would add green space near San Pedro Creek, some mixed-use buildings just north of the culinary center and a new office building, perhaps with underground parking, the news outlet reported.

General Mills ahead on health 10/31/2013 - by Eric Schroeder

MINNEAPOLIS — For nearly a decade, General Mills, Inc. has focused on improving the nutritional makeup of its U.S. Retail platforms through such efforts as increasing protein, fiber, vitamins and minerals, and reducing calories, sodium, sugar and fat. As a result, the company can boast that it has improved the health profile of 73% of its U.S. Retail sales volume since 2005.

Reductions in sodium and calories, and increases in whole grains, were among the main health improvements the company said it put in place to improve more than 20% of its U.S. Retail sales volume in fiscal 2013 alone.

At the conclusion of fiscal 2012, General Mills said 68% of its U.S. retail sales volume came from nutritionally improved products. This percentage compared with 64% of such products in fiscal 2011, 60% in fiscal 2010, and compared with only 16% of the company’s products when tracking began in 2005. In total, the company has nutritionally improved more than 750 of its products since 2005.

“Health is a core growth strategy for the company,” said Maha Tahiri, chief health and wellness officer for General Mills. Ms. Tahiri oversees the Bell Institute of Health and Nutrition. “Since General Mills began tracking health improvements in fiscal 2005, we have made considerable progress. Today, we can point to more than 750 products, both new and reformulated, that have been influenced by our Health Metric criteria, spanning our entire portfolio and accounting for nearly three quarters of our fiscal 2013 U.S. Retail sales volume.”

Much of General Mills’ efforts on nutrition have come in whole grains, but during fiscal 2013 the company paid special attention to reducing sodium. The company has set a goal of reducing sodium, on average, by 20% in its top 10 categories by 2015. Fiscal 2013 improvements include sodium reductions of at least 10% in several shelf stable Green Giant vegetable offerings, as well as a number of Suddenly Salads and Helper dinners.

The company also made meaningful calorie reductions during fiscal 2013, including reducing calories in Yoplait Light yogurt to 90 calories and the introduction of a new lower calorie dairy option — Yoplait Greek 100. Yoplait Greek 100 contains 100 calories and features a Weight Watchers PointsPlus value of two points per serving.

“General Mills has long had a focused health and wellness strategy and for many years we have been working to help our consumers lead healthier lifestyles,” Ms. Tahiri said. “We know consumers are focused on health, yet do not want to compromise the great taste they’ve come to expect from General Mills. So, as we improve the health profile of the foods people love and eat every day, we’ve found the most successful approach is a series of small, incremental changes. We are committed to continuing to make health improvements over time as we remain focused on delivering remarkable products.”