SMa leads homegrown brands into Czech market

Singapore: Singapore-based companies are returning to Czech Republic’s Salima International Food Fairs 2010 to explore food export opportunities to Central Europe.

Held from 2nd to 5th March 2010 at Brno-Exhibition Centre, Czech Republic, the bi-annual exhibition is one of the most important business trade fair for F&B manufacturers in Central Europe. Now in its 27th edition, Salima International Food Fairs is regarded as one of the most important trade exhibitions by veteran European buyers.

Under the Singapore Manufacturers’ Federation’s (SMa) lead, and support from International Enterprise (IE) Singapore, seven Singapore-based companies have confirmed their participation in the upcoming exhibition. They are: Tong Garden Food (S) Pte Ltd, Pottery-Mart (S) Pte Ltd, The Factory Chocolat Pte Ltd, Gan Hup Lee (1999) Pte Ltd, Seng Hua Hng Foodstuff Pte Ltd, Tee Yih Jia Food Manufacturing Pte Ltd and Morning Sun Foodstuff Pte Ltd.

This is the second time a Singapore Pavilion is set up to showcase Singapore’s products in the exhibition since 2008. Pauly Tan of International Development Division (ITD), SMa, who led the team of Singaporean F&B manufacturers in the last fair, will serve as the team leader again this year.

“With Czech Republic’s European Union (EU) membership and advantageous location in the centre of Europe, the Salima Fair offers insights to Central Europe’s food market, latest products, market trends, and access to the rest of the 100 million EU customers,” she said.

According to Salima International Food Fairs’ website, its visitors mostly come from Slovakia, Poland, Austria, Hungary and Germany. Exporters who are keen to penetrate these countries will find this fair a great alternative to other larger food fairs in Europe.

The Factory Chocolat Pte Ltd is one of the returning Singaporean exhibitors from the last Salima fair.

Known for its Gulliver Chocolates with freeze dry fruits fillings, The Factory Chocolat has an established network in more than 10 countries worldwide. It is returning with new products and business strategies to reinforce its brand presence after making some headway with the European market after the last Salima fair.

The Factory Chocolat’s General Manager, Ronald Ng spoke of his company’s intention to set up a concept chocolate shop in Europe, similar to the one they have in Hong Kong.

“There are many concept chocolate shops in Europe, but our use of tropical fruits in chocolates - something that is very Asian, will differentiate us from the other European brands and give us a competitive edge.”

SMa is a trade association representing the manufacturing and related services companies in Singapore. Its F&B Industry Group has been active in promoting the Singapore F&B manufacturing and services industries, at home and aboard, through trade missions and fairs, and through organising networking meetings.

Other than Salima, SMa’s ITD will also be leading Singapore group national participation in at least four other exhibitions. They are:

• Wine & Gourmet Japan 2010 (April 7 - 9, Tokyo, Japan)
• Thaifex - World of Food Asia 2010 (May 12 - 16, Bangkok, Thailand)
• Camfood 2010 (October 21 - 23, Phnom Penh, Cambodia)
• Inter-Food 2010 (October 27 - 28, Jakarta, Indonesia)

Under SMa’s lead, companies in the Singapore Pavilion of these fairs can receive financial assistance in several areas, from IE Singapore, to cover their exhibiting costs. IE Singapore is an agency under the Ministry of Trade and Industry spearheading the development of Singapore’s external economy. It is committed to promoting overseas growth of Singapore-based enterprises and international trade.

Kwong Cheong Thye Renews Emphasis On China And Dubai Markets

Singapore: As the world economy recovers from the deep slump from two years ago, some see China and Dubai as two of the strongest export destinations right now.

Singapore-based sauce specialist, Kwong Cheong Thye Pte Ltd (KCT) is one such company that places much emphasis on both markets. According to the company’s director Alice Woo, KCT’s products are already exported to more than 20 countries worldwide – business growth posted from China is among the fastest.

“The Chinese are very willing to spend and China has been experiencing good economic growth,” Woo said.

KCT had recently participated in the Chinese International Food Fair in Wuhan on December 12-16, 2009. “I’ve been to many places in China previously, but never to the Hubei province where Wuhan is. Now we see that that are quite a number of international hotel brands here, as well as an enormous number of Chinese restaurants of all kinds. It also has a huge population,” Woo said.

Indeed, Wuhan is the sixth most populous city in central China, according to the United Nations Urban Agglomeration. It has a population of approximately 7.54 million people (by 2010 estimate).

Woo said the experience at the Wuhan fair was “very encouraging”: “Sunny Koh and his team at SMa (Singapore Manufacturers’ Federation) did an excellent job in organising this expedition and leading local companies like us to Wuhan, which a relatively new city to many of us. There were so many visitors at the fair. We made many useful business contacts.”

According to Woo, this was also partly because KCT’s products suit the Wuhan residents very well. “In general, the Chinese consumer is increasingly appreciative of the Southeast Asian flavour. In Wuhan particularly, our range of spicy sauces are exceptionally well received. People here seem to really like spicy food.”

KCT manufactures and exports a wide range of sauces, condiments and seasonings, mainly for Chinese cuisines. Some of its spicy products include: Chilli Sauce, Vegetarian Chilli Sauce, Chicken Rice Chilli Sauce, Chilli Oil, Sweet & Sour Hot Bean Paste, Sichuan Hot Bean Paste, Premium Chilli King and Black Pepper Sauce, amongst others.

In Dubai, buyers can expect to see a complete array of KCT’s sauces and other products at the Gulfood fair. KCT’s importer and distributor in the emirate, S H Ali Trading LLC, will be putting up a prominent display of these products at its 72 sq-m booth at the show.

J G Dias, Director of S H Ali Trading, said Dubai’s recent financial woes did not impact the food industry. In fact, demand for imported food is still “very high”. He explained: “The economic crisis has not affected the hotels much. Restaurants are doing a brisk job all around the place here. Everybody has faith in Dubai bouncing back very soon. All these reasons have helped us to grow stronger. This year our sales increased by more than 20 percent as compared to last year. So you see the potential for quality food in Dubai is very high.”

Dias added that most of KCT’s products are supplied to “every five-star hotel in the UAE”. S H Ali also supplies the products to ship chandlers and large food catering services.
“All the Far eastern and European chefs are aware of the consistency in their [KCT’s] product quality. KCT is famous for its premium quality products and prompt services. Any product from them can be assured of being made available within a few working days. The chefs are aware of their commitment. This is what makes them successful,” Dias explained.

Gulfood is an important event for S H Ali Trading and KCT as a launch pad to push their products into the entire Middle East market, both Woo and Dias said. By exhibiting in the previous Gulfood, they were able to begin exporting to Qatar, Oman, Seychelles, Egypt, Jordan and Syria.

Woo said that the Middle East market was opened six to seven years ago, so many clients here are not familiar with KCT’s new packaging and logo. She added that “to play it safe”, that the company will invest more efforts in promoting their new look but it will be a slow phase-out.

FOOD PRICES SOAR IN N. KOREA

Seoul, Korea: Food prices in North Korea have soared this year amid chronic shortages, a Seoul-based welfare group said on January 10, according to AFP. as a world relief agency struggles to raise funds for the impoverished state.
Good Friends, citing its own contacts in the reclusive North, said prices for rice and corn doubled last week at markets in the capital Pyongyang and in the eastern port city of Chongjin.

Rice prices ranged from 120-150 won (US$0.11 – US$0.13) per kg in Pyongyang and 110 to 140 won in Chongjin last week – up from 40 to 50 won reported on December 30, 2009, the group said.

Corn also traded higher at 70-75 won last week – up from 20-25 won on December 30, 2009 in the areas, it added. Seoul's unification ministry, handling cross-border issues, could not confirm the data.

The official exchange rate is 135 won to the dollar but the black market rate is between 2,000 and 3,000 won. The report came as the World Food Programme (WFP) struggles to raise relief funds for the food shortage-hit North Korea.

Major donors – including South Korea and the United States – refuse to help in protest at its second nuclear test in May last year.

Statistics available at the WFP website display it raised US$89.8 million dollars as of late last month, around only 18 percent of its target of US$492 million dollars in relief funds for the communist North.

North Korean leader Kim Jong-Il has admitted failing to deliver an acceptable standard of living for the communist nation's people, according to Rodong Sinmun, the ruling communist party newspaper.

"The president has said that people should be allowed to eat white rice and meat soup, wear silk clothes and live under tiled roofs," the leader was quoted as saying, citing his father and ‘eternal’ President Kim Il-Sung who died in 1994. "But we've so far failed to carry out this goal."

"I will certainly resolve the issue of people's livelihood within the shortest possible period and achieve the president's last wish," he said.

In December 2009, North Korea carried out a drastic currency revaluation aimed at weakening the role of free markets and strengthening the socialist system.

OCEANUS TO BUY TWO FOOD COMPANIES, SPIN OFF RESTAURANT UNIT

Singapore: Oceanus Group Ltd, the world’s largest operator of abalone farms, plans to buy two companies this year to expand its food business and sell shares of its restaurant unit as early as 2012.

Oceanus expects to buy a Taiwanese food-packager by mid-2010 and acquire an Australian company later in the year to boost its supply of wild abalones, Chairman Ng Cher Yew said. Ah Yat Abalone Group, Oceanus’ chain of restaurants, will sell shares in Taiwan or Hong Kong.

The company is expanding to ride on China’s growing consumer market as the nation’s economy is expected to grow nine percent this year, based on Central Bank estimates.

The company is based in Singapore, where its shares are traded. Its operations are mainly in China, where its 137.9 million abalones are in 24,000 tanks along the country’s southern coast.

Oceanus became the first foreign company with main operational in China, to list shares in Taiwan last year, as ties between the island and the mainland reached their warmest since the two were separated after a civil war six decades ago.

“We want to see how we can basically acquire at least one Taiwanese packaging and processing entity and look at the Chinese market,” Chairman Ng said in an interview with Bloomberg on January 8 in Taipei. The Taiwan listing “gives us a better profile with the government and an image in the market that will help the business.”

Oceanus has 20 restaurants in markets including Singapore and China, according to Ah Yat’s Web site. The company aims to grow this number to 170 next year, with at least 120 on the mainland, Ng said.

The restaurant business may be worth as much as RMB 2 billion (US$293 million) in two years, said Jeffrey Lau, an analyst at Polaris Capital (Asia) Ltd in Hong Kong.

“It will be positive for Oceanus, as investors are in favour of Chinese catering companies,” Lau said.

Oceanus was considering the listing in Hong Kong or Taiwan because of demand for abalones from consumers in the two markets, Ng said. The restaurant chain, which is not profitable yet, may turn profitable by the end of the year, added Ng, declining to say how much the chain is making now.

BURGER KING S’PORE TO ACQUIRE 35 RESTAURANTS FROM BON-FOOD

Singapore: Burger King Singapore said it has reached an agreement to acquire 35 restaurants in Singapore from franchisee Bon-Food, as reported by Channel News Asia on January 8.

This represents the bulk of the 40 Burger King restaurants that Bon-Food currently operates.

According to a stock exchange filing by Bon-Food's holding company Bonvests, the restaurants are to be sold for up to S$19 million (US$13.7 million).

After the transaction is completed on February 1, Burger King Singapore will operate a total of 39 Burger King restaurants, as well as the Whopper Bar restaurant at Clarke Quay.

President of Burger King Asia Pacific, Peter Tan, said the US fast food chain is committed to strengthening its brand presence on a global scale and is well-positioned for continued growth in Singapore.

He added that the acquisition will diversify Burger King's global company restaurant portfolio, and establish Singapore as a strong company market.

Bon-Food has been a Burger King franchisee in Singapore since 1983 when it opened the first Burger King restaurant at Holland Village.

EASY FOOD TO SELL READY MEAL PRODUCTS IN INDIA

Melbourne, Australia: Australian food technology company, Easy Food Ltd, began its international expansion programme, initially establishing a presence in Asia, with the Indian diet food market.

As reported by FoodWeek Online, the company has signed an agreement with The All India Organisation of Chemists and Druggists (AIOCD), a network of 550,000 pharmacists in India, to sell Easy Food's products under Optipharm's brand 'Optislim', in which their diet meals will be sold through a chain of 60,000 newly trained and accredited pharmacies.

Easy Food Ltd’s subsidiary company, Easy Food India Pty Ltd has been established for the venture. It will own 75 percent of the business and Optipharm will own 25 percent. Easy Food will supply the bulk of the meal packages.

The programme is scheduled to commence in February 2010 and will see up to 224 million meals and shakes sold through the AIOCD channel on a per annum basis, within three years.

According to Easy Food, while India may seem an unlikely location to launch a range of diet meals, diet is a very real problem, with Diabetes India advising that due to obesity issues that in 2007 there were 41 million Indians suffering from Type 2 Diabetes with estimates that 60 million Indians will have Type 2 diabetes by 2015.

In commenting on the expansion into India, Paul Grogan, Managing Director of EasyFood Australia said, "We have extensive expertise developed over many years in formulating restaurant quality meals for specific dietary requirements and the pre-diabetic market in India is a huge target for Easy Food."

Two other major market players have agreed to take Easy Food's products to the UK through another chain of European pharmacies in 2010.

Easy Food is currently undertaking an AU$3.2million (US$2.98 million) capital raising from sophisticated investors, through the Australian Small Scale Offerings Board (ASSOB) to help fund the expansion into India and other international markets.

INDIAN’S RIGHT TO FOOD ACT FOR INCLUSIVE GROWTH

Mumbai, India: India’s Finance minister Pranab Mukherjee has announced that the government will pass the Right to Food law to promote inclusive growth, a concept that has been pursued by the Congress since Independence, the Live Mint reported.

The Congress, in its manifesto for the 2009 Lok Sabha elections, promised to enact the Right to Food law to provide 25kg rice or wheat at INR 3 (US$0.07) per kg every month to families living below the poverty line.

The Centre, Mukherjee noted, was implementing the National Rural Employment Guarantee Act and Right to Education Act to provide jobs and education to people through legislation.

The minister, however, emphasised that to make growth all encompassing, the country would have to produce more food and industry more manufactured goods.

Mukherjee said the rapid economic growth since liberalisation had led to a rise in the tax-GDP ratio. It was only because of the increase that former finance minister P Chidambaram was able to provide INR 71,000 crore in debt relief to farmers previously.

He further said that with the implementation of the programmes of the government, it would be able to achieve the goals of inclusive growth.

The concept of inclusive growth is not new, although the nomenclature has changed over the years, he said, adding, “from the beginning of our development, we accepted some sort of concept of inclusive growth.”

ARAB TO IMPROVE FOOD SECURITY

Manama, Bahrain: Action to combat the Arab world's massive dependence on food imports is coming under scrutiny at a conference which opened in Bahrain on January 10, Gulf Daily News had reported.

The Arab world and the Gulf Corporative Council (GCC) in particular import up to 65 percent of their domestic food needs, delegates heard at the fifth meeting of a technical committee working on the GCC Sustainable Palm Tree Production Project.

"Countries in the region are succeeding in improving the agriculture sector," Dr Kamel Shadeed, International Centre for Agricultural Research in the Dry Areas (ICARDA) international co-operation affairs deputy general manager, said at the opening of the three-day event.

"However, there are obstacles such as limited water resources and climate change that threatens the sustainability of these programmes."

The event, which is being held for the first time in Bahrain, has been organised in co-operation with the ICARDA, under the patronage of Municipalities and Agriculture Minister Dr Juma Al Ka'abi.

Ministry Under-Secretary Dr Nabeel Abu Al Fateh stressed that Bahrain was committed to supporting agricultural research to improve food security.

Its particular focus at the moment is researching sustainable production from palm trees, which have produced one of the region's staple foods throughout history.

The ministry's acting agricultural resources director and national project co-ordinator Dr Abdulaziz Abdulkarim said the meeting was being held annually to discuss technical reports and yearly programmes and budget for the project. He said the meeting would discuss protection of palm trees and combating parasites, marketing and protecting genetic characteristics of the trees.

"GCC countries aim to improve palm tree production through this project by conducting studies and research," said Dr Abdulkarim.

RFG SEES SPIKE IN FRANCHISE ENQUIRIES

Brisbane, Australia: The Australia’s Retail Food Group (RFG) has reportedly recorded a 120 percent increase in enquiries from potential franchisees over the past fortnight, as more and more people looking to secure their employment in 2010 turn to ‘proven’ systems, the Queensland Business Review reported on January 11.

As the country’s leading retail food brand manager and franchisor, RFG owns the Donut King, Michel’s Patisserie, Brumby’s Bakeries and BB’s cafe franchise systems.

Growing interest in the RFG brand comes as the Group begins rolling out its 2010 expansion strategy which will see the business open an additional 20 stores across its network during the next six months.

RFG National Sales Co-ordination Manager Faith Manning says the franchise enquiry line has been running hot since after Christmas 2009.

“Compared to the same period 12 months ago, our inquiries are up 120 percent during the past two weeks which has been really surprising,” Manning says.

“It seems people have worked hard through 2009, had a Christmas break and have taken that time to reconsider their future finances and employment,” she says.

According to Manning, the enquiries came from all across Australia, with particular strong interest from couples aged 30 years and over.

“Following the uncertainty of 2009 and the global financial crisis, it seems many couples are looking to take control of their future and their finances by owning their own small business. However at the same time they want to minimise risk by looking at proven and growing franchise systems,” she said.

CAPTURE HALAL FOOD MARKET, URGES MUKHRIZ

Muar, Malaysia: Malay entrepreneurs have been urged to emulate the business commitment of the non-Malays when venturing into the Halal food industries, reported the Star on January 10.

Deputy International Trade and Industry Minister Datuk Mukhriz Mahathir said by association, the Malays should be monopolising the Halal food industry as it was synonymous with Islam.

“However, it is the other way around and the Malays are being left far behind compared to the non-Malays in the Halal food market share, both domestically and at the international level,” he said, adding that the non-Malays succeeded because of their “strong will” in conquering this sector locally and internationally.

He said Malay entrepreneurs still have room to venture into the Halal food market, which has an annual global value of about RM7.4 trillion (US$2.2 trillion).

He said with the global population of Muslims estimated at 1.6 billion people in 2008, and the number increasing every year, the Malays had vast opportunities in capturing the market.

Mukhriz also urged industrial growth – those already successful should help other new ventures so that a strong business network can be built.

“The Government will always provide the necessary assistance to those interested in business and there are also several agencies as well as banks to help the entrepreneurs,” he added.

FOOD INFLATTION FALLS, CRUDE GETS PRICEY

New Delhi, India: Although food inflation has started to moderate, the increase in commodity prices following a recovery in global economy could now lead to prices of manufactured products going up, according to India Times.

Carmakers and consumer durable manufacturers could increase prices as cost of key inputs such as fuel, copper, aluminium and steel are on the rise. Prices of most are near 12-month highs.

"Once the excise sops provided as part of the fiscal stimulus are withdrawn and the prices of industrial inputs rise, another inflationary spiral may happen," points out DK Joshi, principal economist at credit ratings agency Crisil.

The inflation in food articles dropped to 18.22 percent for the week ended December 26, 2009, from 19.83 percent the week before, data released by the commerce ministry showed.

However, inflation in fuel segment increased to 4.85 percent from 4.45 percent in the week before January 8, as decontrolled industrial fuels became dearer following a rally in crude prices.

Samiran Chakraborty, head of research at Standard and Chartered bank, pointed out that the easing trend in food prices may keep headline inflation below their earlier projection of eight to 8 .5 percent by end of March and does not see high fuel and commodity prices causing too much concern.

"Crude oil is still hovering around US$85 and the other commodities do not have a weight in Wholesale Price Index (WPI) as others," he said.

Joshi, too, feels the commodity boom may not be sustainable, as it is fuelled by the excess liquidity which will come to an end when monetary regime tightens. StanChart expects tightening in the current quarter.

ALLOCATION OF SUGAR FOR LOCAL EXPORTERS

Manila, Philippines: Exporters of processed food could get an allocation of at least 5,500 metric tonnes (MT) of C-1 sugar, also known as strategic reserve sugar, following their recent meeting with the Sugar Regulatory Administration (SRA).

As reported by BusinessMirror, Philippine Food Exporters and Processors Organisation (Philfoodex) President Roberto Amores claimed that SRA has committed to consider the possibility of giving them an allocation under an import-substitution scheme.

“[SRA Administrator Rafael] Coscolluela promised to make available at least 5,500 MT of C-1 sugar to cover about three months of sugar [we require]. To replenish the buffer stock, SRA will be the one to import sugar,” said Philfoodex in a statement released by the Philippine Exporters Confederation (Philexport).

“It is an import-substitution scheme that honours an old agreement with SRA that local (sugar) producers will allocate at least two percent of their yearly sugar produce for sale to exporters at international prices.”

This allocation, called the ‘D Quedan,’ was recently cancelled reportedly due to the tight supply situation.

Amores said that it was agreed during a recent dialogue that exporters will draw from the strategic reserve and that SRA will replace the volume through import substitution: a way of helping food exporters fill up their sugar requirements.

Also present during the dialogue were officers from other sugar users’ groups including the Chamber of Food Manufacturers, Food Entrepreneurs and Exporters of the Philippines Inc, and Asia Brewery, which represents the soft-drinks industry.

Philfoodex noted that the SRA board “unilaterally terminated” an agreement between sugar producers and local food exporters on the ‘D Quedan’ and this placed food exporters in a bind as they will be forced to buy refined or “B” sugar at steep prices.

Food exporters noted that the price of sugar in the international market has already hit US$722 per metric tonne (MT). Amores said retail prices in major groceries in Metro Manila reflected global prices as they hovered between PHP 47 (US$1.03) and PHP 48 per kilogram, a new high in domestic prices happening at the height of the milling season.

Amores said they informed the SRA that refined domestic sugar in the open market has hit an all-time high of PHP 2,200 per 50-kg bag, much higher than the landed cost of imported sugar at about PHP 1,800-1,900 per 50-kg bag.

He said, however, that Coscolluela has asked food exporters to put their discussion points in writing for approval by the SRA board during its meeting on January 14.

Meanwhile, the domestic manufacturers in the alliance suggested the temporary lifting of the 38 percent tariff on sugar through an executive order to allow them to import their sugar requirements at competitive rates.

“[We are] ready to launch an advocacy campaign to bring down the protective import duties for sugar since there seems to be no more need to protect the local industry, as demand has overtaken domestic production,” said Amores.

Aside from rice, sugar is one other commodity that continues to enjoy high tariff since it is considered a “sensitive” commodity.

MALAYSIA TO PROMOTE LOCAL CUISINES

Kuala Lumpur, Malaysia: The Malaysian External Trade Development Corporation (MATRADE) has allocated 2 million pounds (US$3.26 million) this year for public relations and marketing campaign to promote Malaysian cuisines in the UK.

As reported by Benama, Malaysian Trade Commissioner to the UK Raja Badrulnizam said the publicity blitz to be launched via the ‘Malaysia Kitchen’ campaign was aimed at promoting Malaysian restaurants in London.

Thirty-eight of the 62 Malaysian restaurants in the UK are operating in London, he told Malaysian journalists who were there to cover the first official visit to London by Deputy Prime Minister Tan Sri Muhyiddin Yassin.

Raja Badrulnizam said the campaign also targets to increase customers by 20 to 30 percent patronising Malaysian restaurants, particularly in London, and to boost processed food imports from Malaysia.

Deputy Prime Minister Muhyiddin launched the Malaysian cuisine promotions campaign at the ‘Taste of London’ event on January 11 and Malaysia was the main sponsor of the four-day event.

Many well-known chefs like Gordon Ramsay, Angela Hartnet, Jason Atherton, Richard Corrigan and Atul Kochhar will attend the launch and visitors to the event will have the opportunity to savour the popular Roti Canai, Rendang and Satay.

"We'll also organise three or four visits this year to bring five or six celebrity chefs at a time to Malaysia to enable them to hone their cooking skills in preparing Malaysian dishes and promote Malaysian food here," Badrulnizam said.

The ‘Malaysia Kitchen’ campaign, previously handled by many agencies since 2006 to promote Malaysian cuisines in London and New York, has now been mandated to only MATRADE.

Badrulnizam added MATRADE would also sponsor courses at leading institutions in London on preparing Malaysian food to increase the number of talents in preparing Malaysian cuisines in the UK.

MATRADE also planned to introduce an interactive portal on Malaysian cuisines in February. Visitors to the online portal can expect features such as a Malaysian e-menu in which Malaysian food buffs in London will be shown the nearest Malaysian food restaurant within their residential area.

Badrulnizam further added that MATRADE would also host Malaysian food activities at various hypermarkets in London. They will probably start in Selfridge and Malaysian cuisines will be demonstrated and prepared by various local and Malaysian chefs. Well-known figures such as Datuk Jimmy Choo will be invited to talk about Malaysian food.

The UK imported goods from Malaysia were worth about GBP 1.85 billion in 2008, up 9.9 percent from 2007.

RICH POTENTIAL OF CHINESE HALAL MARKET

Bangkok, Thailand: Thai exporters are being urged to tap into China's expanding Muslim food market, reported the Bangkok Post on January 11.

"China is one of the world's most eye-catching Halal food markets, as Muslims there total up to more than 30 million, or 2.3 percent of China's population," said Srirat Rastapana, Director-General of the Department of Export Promotion of Thailand.

Demand is rapidly growing in Ningxia and Gansu provinces and in Inner Mongolia, she revealed.

The world Muslim population is about two billion or 29 percent out of the total. There are about eight million Muslim consumers in North America, 18 million in Europe, and 200 million in Indonesia.

The global Halal market was estimated to be worth US$547 billion in 2009 and is expected to grow to more than US$550 billion in 2010, said Rastapana.

Thailand is the fifth-largest Halal food exporter, controlling 5.6 percent of market share. In 2008, Thai Halal exports were worth 5.19 billion baht (US$3.01 billion), up 53.3 percent from 2007.

Armed with new strategies to drive the development of products for the Halal industry, the Thai government aims to expand Halal food exports by at least 10 percent per year from 2010 to 2014.

They include adhering to world Halal standards and meeting domestic demands, promoting the competitiveness of both entrepreneurs and workers in the industry, increasing Thailand's capability in certifying food as Halal, as well as expanding markets and upgrading research and development capabilities.

The targeted products are vegetables, fruit, fishery and livestock products and tourism and healthcare services. The strategy will see five southern provinces namely Pattani, Yala, Narathiwat, Satun and Songkhla, becoming Thailand’s production base for Halal products.

The department will also focus on health through the promotion of rice, fruit and organic Halal food. It will also support the opening of Halal food outlets and non-food business such as Halal hotels, Halal hospitals and Halal logistics services.

MALL OF THE EMIRATE SEES NEW DINING SPREAD

Dubai, UAE: Mall of the Emirates announces the inclusion of six new restaurants to their 10,500 sq m new extension which is expected to be complete in the third quarter of 2010.

According to AMEinfo.com, the new outlets will offer an array of cuisines from Europe, Asia, Africa and the Middle East to add to the already established array of regional and international food outlets at the mall.

Three of the restaurants are making their debut in the UAE with flagship outlets at the mall - Al Halabi, which serves authentic Middle Eastern food including home-made marinated kebabs, Tribe which specializes in the tastes of Africa and the legendary PF Changs, the famous US-based Chinese restaurant franchise with a unique American touch.

The other three renowned names include Fauchon - opening a flagship offering contemporary French cuisine with sophisticated signature dishes, Asha's - famous for its Indian curries and biryani and Biella - Mall of the Emirate's favourite Italian restaurant, which will relocate from its existing position on the First Floor to take advantage of the new indoor plaza setting.

The new food offering will span approximately 3,400 sq m on the ground level and will complement the luxury retail stores in the upper levels of the extension.

NO F&B PRICE HIKE, PUBLIC ASSURED

Kuala Lumpur, Malaysia: On January 8, Benama reported that F&B manufacturers as well as restaurant operators' associations nationwide have given their assurance that they will not raise their food and beverage prices following the sugar price increase.
Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob said this meant that prices of food like bread, cakes and condensed milk will not be raised.

"The people need not worry that the 20-sen (US$0.06) sugar price increase will adversely affect their expenditure. Studies have shown that household consumption of sugar generally is one to two kg per month, meaning 20 sen to 40 sen more spent on sugar.

"If they are worried that the price of other goods will also go up, the industries including restaurants have today assured that they would not raise prices," the minister concluded after meeting with over 50 representatives of the F&B industry and associations, in Kuala Lumpur.

Ismail Sabri added that assurance was given as the sugar price increase was too small and could be absorbed by the industry. He also urged the public to inform the ministry if there are food producers or eatery operators which rise prices due to the increase in sugar price, while the ministry will also mobilise its task force to carry out monitoring nationwide.

The recent shortage in sugar supply was due to the long festive holiday, and the sugar refineries and wholesalers only started distributing supplies on January 4, explained Ismail Sabri.

The public however, was reminded that not all commodity prices will remain constant, including petrol price, as it is beyond the government's control as selling prices are dependent on the world market price, as well as climate conditions.

HOLIDAY INN DUBAI AL BARSHA NOW HACCP CERTIFIED

Dubai, UAE: Holiday Inn Dubai - Al Barsha has been awarded the HACCP System certificate, signifying that the hotel now operates in line with the top health and hygiene regulation for hospitality services.

The internationally recognised HACCP system - Hazard Analysis and Critical Control Point system - is a complete food safety management system which oversees all stages of food production.

Hotel General Manager, Reda Moukhtar said that the adoption of the HACCP System is something they had to undergo to ensure complete safety for the guests of the hotel.

"Food safety and hygiene is something we practiced diligently anyway, but HACCP is the top system that sets all the guidelines and methods of working to the highest degree.”

ANOTHER TAINTED MILK CASE 'COVER-UP'

Shanghai, China: According to China Daily, quality inspectors are again in the eye of the storm for possibly covering up a tainted milk case for almost a year.

But a senior official from the country's top quality agency yesterday insisted the case is "an individual one" and has nothing to do with the major milk scandal in 2008, in which six babies were killed and about 300,000 were seriously ill.

Yan Fengmin, deputy director of the inspection division of the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), said yesterday that the case was withheld for such a long time because it was under criminal investigation.

Shanghai Panda Dairy Co Ltd was closed in early January and three of its executives were arrested. Those bought into custody included Wang Yuechao, the company's board chairman; Hong Qide, its general manager; and Chen Dehua, deputy general manager.

The tainted products include a batch of milk powder for elderly people, four batches of milk powder and four batches of condensed milk.

Yan said both AQSIQ and the government in Shanghai were informed immediately after the case was found, and all harmful products were seized. He added that the Shanghai Panda case is an individual one and refuted media speculations that the raw materials of the tainted Shanghai Panda’s products were left-over from those found in 2008.

In September of 2008, 22 dairy companies, including Shanghai Panda, were found to be producing milk products, mainly baby formula, tainted with melamine, an industrial chemical that may cause kidney stones and kidney failure among children.

Melamine, which is used during the manufacture of plastics and fertilizer, was added to watered-down milk to fool inspectors who were testing for protein content. The chemical was used in an attempt to boost profits.

CHINA LAUNCHS ENERGY-SAVING SUPERMARKETS

Beijing, China: People Daily Online has reported that Beijing has opened its first two supermarkets featuring energy-saving products on December 26, 2009.

With over 300 types of energy-saving products including energy-saving doors, windows and cookers being put on sale, buyers can expect prices to be 10 percent lower than usual.

Only energy efficient products tested and certified by recognised regulatory bodies be allowed to be put on sale in these supermarkets.

Officials of the Beijing Municipal Commission of Development and Reform said that Beijing has been planning to launch such supermarkets for the last three years.

They have also added that they strive to expand the project to all of Beijing’s eight urban districts by 2010 and subsequently, throughout the entire city in 2011 where every district or county in Beijing will have at least one energy-saving supermarket.

CR VANGUARD PLANS 360 NEW OUTLETS IN 2010

Beijing, China: China Resources Vanguard, the hypermarket subsidiary of China Resources (Holdings) Company, has opened its final outlet as according to its 2009 expansion plan for Guangzhou and is looking to open around 360 more outlets in 2010.

China Retail News reported that CV Vanguard has since opened about 100 outlets in the fourth quarter of 2009.

Following the opening of its first high-end supermarket Ole in Guangzhou's Taikoo Hui, Vanguard's second Ole supermarket in the city is now the subject of negotiations. In addition, the company is planning to open a fresh-food supermarket in Guangzhou.

According to Vanguard, 2010 will be a year of rapid growth for the company as it plans to open 60 new hypermarkets and 300 standard supermarkets during the year.

FOOD SAFETY DRIVE TO CONTINUE IN 2010

Beijing, China: The Nation's top quality control official yesterday promised to push forward a food-safety campaign that nailed 5,654 unsafe food producers last year.

"As the general food safety situation remains grim in the country, we'll continue the overhaul of the food industry this year," Wang Yong, director of the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), told a national working conference in Beijing.

Food safety has long been a long standing problem for China, especially after several deadly cases, such as the tainted milk scandal in 2008 in which at least six babies were killed and about 300,000 were seriously ill.

Wang said the past year has been a "very difficult" time for quality inspectors across the country, indicating many consumers have lost confidence in government supervision.

Nevertheless, due to collaborative efforts, quality control officers last year had revoked 6,045 food production licenses from 5,654 producers of unsafe food.

A crackdown on small food plants, which have been blamed by experts for the root of China's food safety problem, had also discovered 43,000 unsafe cases, involving products worth 650 million yuan (US$95 million).

Meanwhile, 706 food producers were deprived of export licenses last year. More than 99 percent of foodstuffs exported from China passed border quality checks, according to the AQSIQ.

“China is undergoing dramatic economic and social changes, and some producers lack basic ethics, Wang said.”What's worse, we lack quality inspectors at local bureaus.”

Official figures show that China now has 220,000 quality officers nationwide, which means every officer is responsible for about 6,000 people. These officers are responsible not only for safe food production, but also for safe consumer products as well as border inspections and quarantines.

At some local stations, two or three officers, with only one computer, are overseeing more than 200 enterprises.

To address this issue, the quality watchdog wishes to increase the number of inspectors, equipment and improve existing infrastructure within three to five years’ time.

However, the most important and effective measure to ensure product and food safety is to make producers fully understand their responsibility, Wang emphasized.
Official figures show that small plants, with 10 or fewer workers, account for three-quarters of the food manufacturers in China.

"And raw food materials come from about 200 million farmers across the country. It is almost impossible to get rid of accidents under the current situation," said Chen Junshi, a senior researcher at the National Institute for Nutrition and Food Safety.

Presently, at least five government departments are involved with food safety, leading to overlapping of responsibilities and lax law enforcement, Chen remarked.

BRIGHT FOOD TO INCREASE STAKE IN LISTED UNIT

Beijing, China: Bright Food (Group) Co has gotten approval from authorities to acquire Shanghai Industrial Holdings' (SIH) stake in dairy firm Bright Dairy & Food Co, the China Daily reported on January 5.

Bright Food, the parent company, plans to purchase 314 million shares or 30.18 percent stake in its listed entity Bright Dairy from the Hong Kong registered SIH for 1.55 billion yuan (US$2.3 million).

Following the transaction, Bright Food, controlled by the local state-owned asset regulatory authorities, together with another of its subsidiary Shanghai Milk Group, will become Bright Dairy's controlling shareholders with 65.45 percent stake.

"The stake transfer will provide a clearer roadmap for Bright Dairy and help it to focus on its core business," said Liu Jinhu, an analyst with Sealand Securities.

Wang Zongnan, chairman of Bright Dairy, said in July last year that the deal would help the company to optimize its resource distribution with the parent company.

Bight Dairy, largely focused on the eastern China market, has lagged far behind its two bigger rivals Mengniu Dairy and Yili Industrial Group.

The company saw its net profit drop 67.8 percent to 45.3 million RMB in the first half of 2009, while Mengniu and Yili posted 662 million RMB and 254 million RMB in net profit in the same period.

HKIA CALLS FOR F&B OPEN TENDER

Hong Kong, China: Airport Authority Hong Kong has called an open tender for four restaurants and six food court outlets in the restricted area of East Hall, Terminal 1, at Hong Kong International Airport (HKIA). The tender will close on February 12, 2010 at 11 am, Hong Kong time.

Between 1999 and 2008, HKIA F&B sales grew fivefold at a compound annual growth rate of 20 percent. Within the same period, HKIA also saw robust compound annual sales growth of 14 percent per passenger.

The number of East Hall food court seats has also more than doubled within the past five years. According to the airport's research, nearly 100 percent of departing passengers and around 80 percent of transfer/transit passengers pass through the East Hall. Departing passengers’ dwell time is around four hours at HKIA, with an average of over three hours spent within the restricted area.

Airport Authority Hong Kong said: “Situated in a high-traffic prime area among prominent international brands which nearly 100 percent of HKIA’s departing passengers pass through, these catering locations present potential partners with an excellent opportunity to showcase their catering offers to a high volume of worldwide travellers who are eager to make the most of their stay in Hong Kong to experience the best of the city’s international and local flavours.”

FOOD COSTS SOAR AS TEMPERATURE PLUNGES

London, UK: Britons have been warned to brace themselves for an increase in food prices as plunging temperatures leave farmers unable to harvest vegetables and hauliers struggle to distribute fresh produce.

On January 9, the Guardian reported that Prime Minister Gordon Brown, who not only chaired a meeting of the Cobra emergency committee to discuss the freeze, was also forced to reassure the country that it would not run out of gas or grit for its roads during the coldest weather in 30 years.

Sub-zero temperatures have made it impossible to extract some vegetables from the ground. Producers of brussels sprouts and cabbages are all reporting problems with harvesting. Cauliflowers are said to have turned to "mush" in the sustained frost, leaving imported ones as sole solutions – at more than GBP2 (US$3.25) each.

"Food is selling fast and there is a problem with replenishing it," said Stephen Alambritis of the Federation of Small Businesses. "One business I spoke to said it was like Christmas Eve, with people rushing to buy up food. This will inevitably have an impact on food prices."

Food prices had already started to edge up after a sustained period of low inflation. Food inflation increased by 3.7 percent in December 2009, up from 2.8 percent in November, said the British Retail Consortium.

In Ireland, 6,000 acres of potatoes remains unharvested and there are claims that up to three-quarters of the crop may be ruined. Potato growers in Northern Ireland say they are facing some of the biggest losses in recent history because of frost damage.

Meanwhile, greengrocers in some of the worst-hit areas are reporting shortages, with the price of carrots and parsnips reportedly rising by 30 percent in some small shops.

A spokesman for the National Farmers' Union said: "There are isolated examples of farms struggling to get milk supplies out, but so far the majority of farmers, although finding it difficult, are getting on with the job."

Milk suppliers in Somerset said they feared they may have to dump 100,000 litres of organic milk because tankers could not get through.

In a move that underscores the severity of the situation, the government will permit an emergency relaxation of European laws regulating the driving hours for hauliers involved in the distribution of animal feed.

Under the temporary rules, the hauliers will be allowed to drive for 10 hours rather than the EU maximum of nine. There will also be a reduction in their mandatory daily rest requirements, from 11 to nine hours.

Last week, nearly 100 large businesses were forced to stop using gas in an attempt to conserve supplies. Responding to this, Brown said: "I can assure you: supplies are not running out. We've got plenty of gas in our own backyard – the North Sea – and we also have access to the large reserves in Norway and Netherlands."

Brown also tried to allay concerns over salt stocks. "Working with the suppliers and the highway authorities, we are making sure stocks of salt to grit roads and pavements get to where they're most needed," he said.

NESTLE: BIGGEST FROZEN PIZZA MAKER

US: Nestlé SA, the Swiss food company which raised US$28.1 billion from selling a stake in Alcon Inc in early January, may be the winner in the battle for Cadbury Plc.

According to Food & Beverage News, Nestlé had agreed to buy Kraft Foods’ US pizza unit for US$3.7 billion o January 5, or 12.5 times estimated 2009 earnings.

The Kit Kat maker paid 15.7 times earnings for Gerber baby food in 2007, its last major food acquisition. While Kraft sold one of its fastest-growing units to lift the cash component of its hostile Cadbury bid, Nestlé becomes the world’s biggest frozen pizza maker with cash to spare for other purchases.

Paul Bulcke, chief executive officer, Nestlé, said that the company would always be open for possible acquisitions after selling its 52 percent stake shares in Alcon and ruling out buying Cadbury.

Kraft would be lumbered with debt post-Cadbury, but Nestlé clearly have the fire-power to pursue whatever they wanted, said Andy Smith, co-head of equity research at Icap Plc in London. “Why would Nestle get involved in a consortium to bid against Kraft when they can go after deals that make more sense without the competition?”

STUDENTS EATING MORE FAST FOODS

London, UK: Students' lifestyles tend to lead to them eating more fast foods, a university has said.

The survey of eating habits among first year self-catering students also found men were more likely to eat fast food than women. They often see cooking as "women's work" while their female counterparts are more worried about weight gain and appearance.

The survey was carried out by University of Leicester student Hannah Cooper, 22, under the supervision of Dr Ellen Annandale, from the university's Department of Sociology.

It found students' fast food consumption increased when they left home and began to cater for themselves, despite knowing of the links between fast food consumption and obesity.

The main reasons given were convenience, peer pressure and budget, as well as simply liking it. It found pizza proved to be the favourite, followed by pasta, curry and French fries.

Cooper, who carried out the research as part of her sociology degree, said: "Students might be tired and not feel like cooking. Fast food marketing makes it very accessible, and if several students combine to order fast food together then it becomes an even cheaper option.”

"At home their parents probably provided their meals. They come to university and have to start managing and budgeting for themselves. They didn't seem to have the knowledge of how to manage money in relation to food, and fast food was sometimes seen as cheaper than cooking. They knew that fast food was less healthy than home cooked food, but that knowledge wasn't strong enough to override their lifestyle,” she concluded.

FOOD INDUSTRY FACED NANOTECHNOLOGY CRITICISM

London, UK: The food sector in the UK has come in for criticism from a research committee for a lack of transparency when it comes to nanotechnology.

The House of Lords Science and Technology Committee said that the food industry had “(failed) to be transparent about its research into the uses of nanotechnologies and nano-materials”, a claim denied by the sector.

In their report, Nanotechnologies and Food, the Committee noted that transparency and honesty are key components for ensuring public trust in both food safety and scientific developments, and argued that the current approach of food companies in not publishing or discussing details of its research in this area is “unhelpful”.

The Committee added that the food industry had good reason to be sensitive around the issue, but was concerned that they were being more secretive than cautious.

Nanotechnology is a controversial issue that, like genetically-modified food, polarises opinion. It involves reducing common materials to the size of microscopic particles, allowing the acquisition of unusual properties.

In the case of nanotechnology the main argument is one of health - with manufacturers looking to find ways to reduce salt, fat or sugar levels or enhance the nutritional profile without impacting on taste. Detractors, however, question the possible health impact, concerned that it may have adverse affects on the human body - a point raised by the researchers.

“There is only a limited amount of research looking at the toxicological impact of nano-materials, and just one research team working on the impact of nano-materials on the gut in the United Kingdom,” the researchers remarked.

Lord Krebs, who chaired the Science and Technology Committee’s inquiry into Nanotechnologies and Food, said that growth of nanotechnology was set to soar and authorities needed to be prepared for such a circumstance.

“The use of nanotechnologies in food and food packaging is likely to grow significantly over the next decade,” he stated. “The technologies have the potential to deliver some significant benefits to consumers but it is important that detailed and thorough research into potential health and safety implications in this area is undertaken now to ensure that any possible risks are identified,” he added.

The Food and Drink Federation - the leading representative of food and beverage manufacturers in the UK - believes that the criticism is unjustified.

“Understandably, there are many questions and unknowns about the potential future uses of nanotechnologies in our sector, and there is much work still to be done by scientists, governments and regulators, as well as the food and drink industry. We support the report’s recommendation for the formation of an open discussion group to bring more transparency that we know is important to consumers, indeed we are already engaged in such initiatives, both at UK and EU level,” Julian Hunt, FDF’s Director of Communications, concluded.

KRAFTS FOOD’S PLANS ON TRACK

US: According to Financial Advice’s January 8’s report, US giant Kraft Foods is in prime position with regards to a potential takeover of UK chocolate manufacturer Cadbury.

Despite speculation that Nestlé was about to enter the bidding, the company has confirmed it will neither bid on its own or as part of a consortium. This announcement puts more pressure on US outfit Hershey which was seen by many as a potential consortium partner with Nestlé.

Even though the current Kraft Foods offer is unlikely to be successful, and is indeed well under the current Cadbury share price, analysts believe that an increased offer of around GBP8 (US$13.06) a share may well be enough to capture this well-known and historic company.

It is expected that Hershey, which is actually smaller than Cadbury, will struggle to raise the necessary finance to make an offer in its own right. Even though analysts believe that Cadbury saw Hershey as the perfect "white knight" the chances of the company stepping forward with an acceptable offer appear to be lengthening.

While there is nothing to stop other potential bidders entering the fray, nobody else has really shown their hand in a serious manner.

Analysts say Kraft needs to come up with more than US$5 per share to get the support of Cadbury's board. Kraft recently sold its U.S. pizza business to Nestlé last week to raise money but may face resistance from Warren Buffett, who owns 9.4 percent of Kraft and indicated he may vote against a proposed issue of 370 million shares of stock to fund the takeover.

The takeover also had opposition from UK government leaders. Hershey may team up with Italian chocolate maker Ferrero to come back to the table. Kraft manufactures and markets packaged food products and grocery products worldwide.

EUROPEAN COMMISSION SUPPORTS YEMEN’S FOOD SECURITY

Brussels, Belgium: The European Commission (EC) has approved a support programme for Yemen in the amount of EUR17 million (US$29.38 million).

The program aims to improve Food Security coordination among national institutions, while strengthening the farming communities, by developing plans for the improvement of water use, market access and income-generating opportunities.

In a press release, the EC said that the programme had approved the 2009 Annual Action Program for Yemen under the Development Cooperation Instrument of the EC, and came within the framework of development cooperation within Yemen.

“In November, the Commission had already granted EUR10 million to the country within the worldwide EUR227 million programme in 2009 for Food Security,” said the EC.

“The Commission provided Yemen with a grant of EUR21.3 million as part of the Food Facility initiative, a one-off funding of EUR1 billion directed to assist the least-developed countries in the world tackle the high food prices of international markets.”

The recent program contributes to the support of EUR48.3 million provided by the European Commission to the food security sector in Yemen in 2009, in light of the precarious situation of Yemeni population growth; 40 percent of Yemen’s rural population lives under the poverty line, while more than 50 percent of children under five suffer from malnutrition.

SUPERMARKET TSAR MAY INCREASE FOOD PRICES

London, UK: The Telegraph reported on January 5 that major chains have been accused of "bullying" in the past for using their monopoly power to push down prices at the farm gate then selling the food for a considerable profit later on.

The new "Supermarket Ombudsman" would name and shame those shops guilty of unfair dealing with both British suppliers and small farmers in the developing world.

The new body would be part of the Office of Fair Trading and also be able to levy fines. It would cost up to GBP5 million (US$8.16 million) per annum and be paid for by a new tax on the 10 major grocery chains.

The National Farmers Union (NFU) welcomed the move as an opportunity to fight back against the increasing might of the supermarkets and get more locally-sourced food onto the shelves.

But retailers said the watchdog would be costly and bureaucratic and ultimately push up the price of food.

The idea of a supermarket ombudsman was first put forward by farmers more than five years ago. However it was not taken seriously until this summer when the Competition Commission recommended that the Government set up a watchdog to regulate a new code of conduct for supermarkets.

Lord Mandelson's Department for Business Innovation and Skills (DBIS) was due to report back on the recommendation at the end of last year but has so far failed to do so.
Speaking at the Oxford Farming Conference this week, Nick Herbert, the Shadow Secretary of State for the Environment, will announce Conservative plans to go ahead with the watchdog.

“As the Competition Commission has made clear, failure to do so could result in reduced investment by suppliers, lower product quality, and less product choice, with potentially higher prices in the long run,” he said.

The new ombudsman would protect small suppliers from abuses like "retrospective discounting" which allows retailers to reduce the price at a later date if the product fails to sell and has driven many farmers to the edge of bankruptcy.

The watchdog will have teeth by naming and shaming supermarkets that fail to comply with the code of practice and issuing fines, although the level of the punishment has yet to be decided.

Terry Jones, Head of Government Affairs at the NFU, said it is not about "whingeing farmers" but getting the best deal for the customer.

He said ultimately prices for a variety of quality food will go down if more small suppliers can survive in the market.

But Richard Dodd of the British Retail Consortium said there is already a voluntary code of conduct in place to ensure the larger chain stores treat suppliers fairly.

"The last thing we need is a new multi-million pound bureaucracy to regulate the relationship between supermarkets and suppliers. It is unnecessary. All it will do is pile a whole lot of new costs on to retailers which will ultimately filter through to customers in the form of higher prices,” Dohh added.

On the other hand, Hilary Benn, the Environment Secretary, will also be speaking at the Oxford Farming Conference. He will announce Government food strategy for the next 20 years including plans to teach children about where food comes from, advice to consumers to eat less meat, improved labelling on meat products and support for agricultural research including genetic modification.

VAT RISE CAUSED RETAIL SALES FRENZY

London, UK: Supermarket groups Asda and Tesco today pledged to hold some prices ahead of January 1’s rise in Value Added Tax (VAT) amid signs that consumers are panic-buying to avoid the New Year's Day tax increase.

According to the Guardian, shoppers flocked to the high streets and out-of-town retail centres in huge numbers over the long bank holiday weekend to snap up sales bargains. The first week of January was expected to be busier, in terms of shopper numbers, than the week before Christmas.

Research group Synovate, which monitors shopper numbers at retail centres across Britain, said bank holiday December 28, was the busiest shopping day of 2009 – beating the last Saturday before last Christmas, which is traditionally the busiest of the year. Monday's shopper numbers were 27 percent up on the crowds that rushed to the sales on December 26, 2009.

However, Synovate analyst Tim Denison said the shopping frenzy did not mean consumer confidence had made a comeback, but was the result of fewer pre-Christmas discounts and a "bubble" created by the imminent increase in VAT from 15 percent to 17.5 percent.

The VAT rate was cut to 15 percent in December 2008 as an emergency government measure to bolster consumer spending in the wake of the near collapse of the banking system.

Nevertheless, many retailers believe the return to 17.5 percent now threatens to choke off recovery and fuel inflation – and that purchases brought forward to beat the tax rise mean the beginning of 2010 could be very difficult.

Tesco announced a "VAT freeze" to "help customers celebrate the New Year with savings across the store". However, the VAT freeze is not store-wide. It applies until "later in January" for big-ticket items such as large electrical products and to goods already on promotion.

Tesco’s existing clothing ranges will also stay at their current prices. But thousands of lines – including household goods, health and beauty products and some VAT-rated foods, such as ice cream – will go up on January 1st.

Asda said that half of its VAT-rated products, or 10,000 items including the entire George clothing range, would not go up on January 1st. A spokesman said the grocer did not have "an exact date" when prices would go up as different lines would vary.

Sainsbury's is making a similar offer on its electrical goods, clothing range and promotional products. Prices at Next will go up as new stock comes into the stores.

Department store chain John Lewis said before Christmas that it would not raise its prices until February and catalogue retailer Argos cannot increase its prices until it launches its new catalogue at the end of January.

Arcadia group has pledged to absorb the impact of the tax rise at its stores, which include Top Shop, Bhs and Wallis. Fashion retailer White Stuff, which has 64 stores, said it also intended to absorb the VAT increase in a move aimed at "helping out loyal customers" and would also donate 2.5 percent of its January sales to charities, "which are still suffering in the economic downturn".

Marks & Spencer is putting prices up on all its general merchandise – homewares, fashion and footwear – from January 1st, but prices will not go up on the shelves as over the past 12 months the VAT reduction has been made at the till, with the saving shown on the receipt. Online retailer Amazon is also increasing its prices, from midnight on New Year's Eve.

Research group Experian recorded similar figures to Synovate, and described the rush for bargains as "exceptional". It warned the post-Christmas panic buying suggested shoppers were now only prepared to spend big when prices – and profit margins – were slashed: "The number of consumers awaiting discounted prices has increased rapidly in recent years, highlighting the effects of the recession on consumers."

Experian added: "Retailers will have been delighted to see their stock diminish, as the focus to clear stock is strong at this time of the year, but this may have been at a cost of heavy promotions held by retailers."

UK SNAPS UP AS TEMPERATURE DIVE

London, UK: Hot food and warm clothing were flying off supermarket shelves as shivering shoppers braced themselves for the deepening big freeze, reported the Daily Mail on January 6.

Where roads were not already impassable with snow, buyers seized the chance to stock up on vital supplies to see them and their families through in case they end up trapped at home.

Bags of salt were being snapped up, with sales of 1.5 kg bags of cooking salt up five-fold at Morrisons and rock salt sales up 150 percent at B&Q.

Hot, hearty food was much in demand, with Asda selling 50 percent more porridge and other oat cereals as this time last year and 20 percent more ready-made hotpots and casseroles.

Stodgy puddings were also up, while Tesco said soup sales were up 80 percent when compared to sales two weeks before.

The deepening winter chill was encouraging shoppers to stock up on cold weather gear; thermal underwear sales up ten-fold at Asda and wellington boots also sought after.

Meanwhile, travel mug sales increased by more than 160 percent at Sainsbury's and motorists worried about getting stranded boosted demand for sleeping bags by a fifth at Halfords. Drivers were also buying extra screen wash, de-icer and ice scrapers for the worsening conditions.

Halfords spokeswoman Diane Perry said: 'A lot of people were caught out before Christmas, so now they're preparing much more with things like snow chains, heat-proof travel mugs and emergency blankets.'

Supermarkets said they were working to ensure shelves remained full, but acknowledged that with more snow forecast, many shoppers were buying more than they needed in case they found themselves trapped at home.

P&C AND TOPS REACH AGREEMENT

New York, US: Penn Traffic (P&C) has accepted Tops Supermarkets bid for their company.

Tops has been the first choice company to buy P&C. The supermarket chain has pledged to hire back all current workers and keep most, if not all, P&C stores open.

The bid was recommended to the US Bankruptcy Court in Delaware and a judge is scheduled to make a ruling on the case in late January.

Local United Food and Commercial Workers (UFCW) Union President Frank DeRiso says Tops was the first choice to buy Penn Traffic. Their bid will protect the jobs, pensions and health insurance for thousands of P&C workers around the state.

"I know it is the better bid," DeRiso says. "It keeps all our members working."

Senator Chuck Schumer has pushed for Tops Supermarkets to be the winning bidder since Penn Traffic filed for bankruptcy back in November 2009. The Senator says it is good to know Penn Traffic won't be liquidating local stores.

"In many communities, they are the only stores available for miles and miles around," Schumer says.

Penn Traffic officials say Tops bid is not official. The sale is still pending court approval and then there will still be an opportunity for another company to come in and make a higher, better bid. Senator Schumer and union members say in the end they believe Tops Supermarket's will be the winning bidder.

INCREASE OF SUPERMARKET PRICES

London, UK: One in five items in supermarkets is on special offer over the busy Christmas period but shoppers are unlikely to benefit because the overall price of goods has risen, reported the Sunday Telegraph on December 20, 2009.

Data compiled by Mysupermarket for The Sunday Telegraph shows 18,553 items are on offer across Tesco, Asda, Sainsbury’s and Ocado compared to 13,804 this time last year – a 34 percent increase and the highest number in at least three years.

But despite a sea of special offer stickers this festive season, shoppers at those stores will pay an average of 0.7 percent more than last December even after the discounts.

For example, a typical basket of Christmas essentials, including turkey and vegetables, will cost an average of GBP81.50 (US$180.06) at those four stores, up from GBP79.44 from last December – a 2.5 percent rise.

It means shoppers who believe they are getting a bargain from the current GBP500m price war between major retailers may be left disappointed.

The figures come as supermarkets compete for their share of the important Christmas trading market. More than 740 supermarkets will be trading 24 hours a day this week, an all-time high.

The data showed Tesco and Asda both had the highest prices rises of the four, with shoppers paying an average of 1.9 percent and 1.8 percent more respectively compared to this time last year. However, they also had the highest number of current special offers, at 6,406 and 5,995 respectively.

Ocado, linked to Waitrose, has the fewest special offers of the four but its average prices have actually fallen slightly over the past year, by 0.3 per cent. Sainsbury's has 4,542 special offers but prices fell by 0.9 per cent over the year.

Jonny Steel, spokesman for MySupermarket.co.uk said: “It is clear that the number of offers available across supermarkets has increased enormously since Christmas last year – there are now a staggering 34 percent more promotions available since December 2008, with the number of bargains soaring from 13,804 to 18,533.”

"So despite the fact that food prices have increased overall across some supermarkets, consumers can still save money on their food and groceries if they shop around for the best deals,” Steel said.

WAITROSE STAR PERFORMER DURING CHRISTMAS

London, UK: Sales in the grocery sector were robust in December 2009 with a particularly strong Christmas fortnight, reports market research company, Nielsen, on January 4.

In the four weeks to December 26, sales grew 6.7 percent as compared to last December in grocery multiples with sales in the last last weeks of this period increased 8 percent year on year. Mike Watkins, senior manager of Retailer Services at Nielsen commented, “We had a slow start to the season and from the figures it looks like consumers held back until the final fortnight where we saw some exceptional growths.”

The level of promotional activity in supermarkets usually drops off in December but it remained at 35 percent in 2009 which would have helped sales. There was also evidence of an improved underlying demand with value sales growths over the full 12 week at 4.8 percent and unit growths much improved at 3.4 percent.

Watkins continued, “Shoppers shared in the bonanza - price cuts, bigger than ever promotions and loyalty scheme give-aways all helped encourage shoppers to spend.”
“And with many shoppers bringing forward some bigger ticket purchases ahead of the January Value Added Tax (VAT) increase, the large out-of-town supermarkets enjoyed strong growth in general merchandise. This is further evidence of the success of food retailers in building market share in seasonal non-food goods, gifting, clothing, home wares and electrical goods.“

Waitrose was the star performer with stellar sales growths driven by new shoppers using the new stores for Christmas: 13.6 percent increase in sales registered 12 weeks through to December 26, 14 percent rise four weeks through to December 26.

Morrisons registered 10.1 percent sales increase 12 weeks through to December 26, 11.8 percent rise four weeks through to December 26. It already had good momentum and had successfully engaged shoppers with the 6 weeks loyalty bonus, redeemable in the week before Christmas.

Asda kept in the sweet spot they have be in all year and maximized the spend from savvy Christmas shoppers. It registered 6.1 percent sales increase 12 weeks through to December 26, 8.6 percent four weeks to December 26.

Sainsbury’s registered 5.9 percent rise in sales 12 weeks through to December 26, 7.7 percent four weeks through to December 26, where as Tesco saw a 5.3 percent in sales 12 weeks through to December 26, 7.4 percent increase four weeks through to December 26.

The Co-operatives benefited from the merger with Somerfield with acceleration in sales in the last four weeks following fascia conversions. It registered a 7.3 percent rise 12 weeks through to December 26, 11.4 percent increase four weeks through to December 26.

GOOD CHRISTMAS FOR ONLINE SUPERMARKET OCADO

London, UK: Ocado saw sales rise 49 perccent in the week leading up to Christmas last year, as the online supermarket delivered 3.5 million items to almost 42,000 customers. The strong trading period is likely to spark renewed speculation about a possible flotation this year. Observers believe the group could float within months, reported the Telegraph on January 1st.

Andrew Bracey, chief financial officer of Ocado, said: "In a tough retail environment we have seen growth and improvement in all the key metrics for our business. Sales in the four weeks to Christmas were up 30 percent."

The average order value in the four-week period was £136 (US$222.04), with order accuracy of over 99.9 percent.

GOAT TRADE AT SUPERMARKET

Kenya, South Africa: For the third year running, the Langata Road branch of Uchumi Supermarkets was giving its customers the unique service of selling them goats, according to the Sunday Nation’s report dated on December 26, 2009.

The supermarket acts as a broker between its customers and herders from Kajiado. Branch manager Edward Mwakima said the supermarket collects a commission from the herders, who use their yard to display the animals.

Customers select a goat from the yard, negotiate the price with the seller and the money is then handed over to the supermarket, which then deducts its commission.

“The supermarket attracts a lot of customers. We give the herders customers and they give us a negotiated commission. It is a win-win-win situation for the herders, our customers, and the business,” Mwakima remarked.

Mwakima said a group of herders approached the supermarket with the idea three years ago. “We ask the herders to bring quality goats, and not exploit our customers.” “Our deal is based on trust. They believe in us and we trust them. They know without us they wouldn’t be around to do business,” he said.

SUPERMARKETS ATTACKED FOR SELLING CHEAP ALCOHOL

London, UK: Supermarkets have come under fire for selling alcohol more cheaply than bottled water, as reported by Talking Retail on December 21, 2009.

Tesco, Asda, Morrisons and Sainsbury's were all found to be selling beer at just over 5p per 100ml. This compared to a typical price of 8p for 100ml of brand-name mineral water.

Campaigners claimed retailers were "irresponsible", and encouraging binge drinking by using cheap alcohol to tempt in customers, while ignoring the associated dangers to health of excessive alcohol consumption.

Sir Liam Donaldson, the chief medical officer for England and Wales, has called for minimum pricing for alcohol.

He claimed that charging a minimum of 50p per unit of alcohol - raising the cost of an average six-pack of lager to GBP6 (US$9.79) - would save up to 3,400 lives a year and cut the number of hospital admissions by 100,000.

The alcohol industry and Prime Minister Gordon Brown opposed the idea on the grounds that it discriminated against responsible drinkers.

Alcohol Concern said government attempts to curb binge drinking were being undermined by supermarket discounting. Supermarkets, however, had highlighted schemes requiring younger customers to prove their age as evidence of their intention to tackle under-age drinking.

FOOD MAKERS QUIETLY CUT BACK ON SALT

US: Amid rising government pressure and consumer concern, food makers are taking a new tack in their long-running effort to sell products with less salt, according to the Wall Street Journal.

Instead of offering foods labelled as low salt that few people eat, they are gradually reducing the salt from some of their most popular items—and not making a big fuss about it on the label.

By next summer, ConAgra Food Inc's Chef Boyardee canned pasta will have decreased its sodium by about 35 percent over the course of five years without a word on the package. Campbell Soup Co's original flavour of V8 100 percent vegetable juice also silently dropped its sodium by 32 percent over eight years.

For decades, new reduced-sodium products often had dramatic reductions of at least 25 percent from their original version to meet government regulations on advertising sodium declines. Those products often tasted different, and sales typically were slim.

So food makers in recent years have adopted a new strategy: decrease sodium so slowly that customers don't notice it. "If you gradually move sodium down in products, the consumers that use those products get used to them still tasting good but at lower salt," says Douglas Balentine, Unilever NV's North American director of nutrition and health.

Government health experts for years have been counselling people to eat less sodium, and now pressure is building to tighten restrictions on food makers.

New York City, leading a group of cities and health organizations, is expected to announce voluntary sodium-reduction targets for restaurants and food makers.

It wants to lower Americans' salt intake by at least 20 percent by 2014. Many food-industry executives also expect the US government's Dietary Guidelines Advisory Committee this year to recommend that Americans consume less sodium than it recommended in 2005.

So far, the food industry's efforts on sodium don't appear to have dented the amount of sodium in the packaged foods Americans most commonly purchase. Sodium in those foods has stayed flat since 1991 at an average of about 2,000 mg of sodium per pound of food, but the world's largest food makers are continuing to work on the problem.

In October 2009, ConAgra said that by 2015 it would lower the sodium level in about 80 percent of its products by an average of 20 percent. Sara Lee Corp. made a similar commitment in December 2009.

Campbell Soup, which has focused broadly on reducing sodium for at least a decade, says it has already reduced sodium in the top-selling products in all its categories by nearly 24 percent since 2001.

New technology is also driving many salt reductions by helping maintain the saltiness of products with less sodium. Some companies are deploying new meaty-tasting compounds that boost saltiness flavour without sodium or cooling agents that make the tongue taste salt better.

ConAgra's food scientists have since developed a new way to grind salt into particles that are 60 percent for the Orville Redenbacher brand of microwaveable popcorn.

The smaller salt particles helped Orville Redenbacher to drop the sodium level by 30 percent in 2008, and most varieties did not announce the change, says Jane Anders, ConAgra's vice president of research and development.

RETAIL FOOD PRICES CONTINUE TO FALL

Wisconsin, US: Wisconsin’s largest farm organization tracks the retail price of 20 food items in 26 communities. The Market Basket survey reported in January that the average cost of those 20 items in the fourth quarter of 2009 was US$51.49 — 61 cents less than the overall average of US$52.10 in the third quarter of 2009.

The average cost in the fourth quarter of 2009 is $6.41 or 11-percent less than the fourth quarter of 2008. In that quarter, the Market Basket average was $57.91

The decreases throughout 2009 can be attributed to some primary marketplace conditions. The biggest factor is lower fuel and energy prices. The decrease seen in energy costs in 2009 impact every stage of food production.

Lower energy prices result in less cost for production, processing, transportation and storage of food. Over the past year, US fuel and energy prices decreased 28 percent according to the US Bureau of Labour and Statistics Consumer Price Index (CPI). A second major factor is continued sluggish consumer demand as reported by the American Farm Bureau Federation (AFBF).

The item with the largest percent decrease in the fourth quarter was butter. A pound of butter cost US$2.48 in the fourth quarter, nearly 24 percent less than the third quarter retail price of US$3.26. Although prices paid to farmers for milk have increased slightly through the second half of 2009, butter has a longer storage life than milk.

Butter sold in the fourth quarter is most likely from milk produced earlier in 2009. Also the Wisconsin Farm Bureau Federation (WFBF) made a change in the type of butter surveyed. Surveyors are now allowed to use the store brand of butter, rather than a premium brand name. That change alone would cause a slight decrease in the price of butter reported.

A gallon of whole milk did track more closely to the farm prices for milk. The retail price for a gallon cost 13 cents more than the third quarter with a fourth quarter price of US$2.72. This is 53 cents less than the fourth quarter 2008 price of $3.25.

A pound of cheddar cheese was US$3.94 in the fourth quarter of 2009, just 7 cents more than the third quarter of 2009 and 22 cents less than the fourth quarter of 2008.

Potato prices were also down significantly in the fourth quarter. A 10-pound bag of Russet potatoes was US$2.98 in the fourth quarter, 42 cents less than the third quarter and US$1.33 less than the same time last year.

“Potato prices are seeing the effect of supply and demand just as we saw in 2008,” says Paul Ketring, Director of Communications for WFBF. “Potato prices saw large increases in the second half of 2008 when flooding and lower yielding harvests reduced the supply. In 2009, the US potato harvest set a yield record, increasing supply, with less flooding in Wisconsin and the rest of the Midwest.”

Pork continued to see low retail prices. A pound of pork chops was US$3.21 in the fourth quarter, down 28 cents from the third quarter of 2009 and down 47-cents from the same time last year. Bacon, flour, and sugar also decreased in this quarter’s survey.

The price for a pound of tomatoes was up 44 cents in the fourth quarter of 2009 at US$1.83. Retail prices for chicken breasts and whole chicken both increased as well. Ground sirloin and sirloin tip roast saw almost no change from the third quarter of 2009.
According to the US Department of Agriculture, the average price farmers received for their products from November to December of 2009, as well as compared to a year ago, remained flat or showed negligible changes.

ALOFT HOTELS TO EXPAND FOODSERVICE OPTIONS

US: According to Hotel Magazine, Starwood Hotels & Resorts' Aloft select-service brand will be expanding its food and beverage offerings in the coming months to complement the brand's popular WXYZ lobby lounge concept.

The 40-property brand, which opened its first hotel in 2008, will begin rolling out enhanced foodservice within the first quarter, says Brian McGuinness, senior vice president of specialty select brands.

Guests should not expect to see full restaurants coming to Aloft properties, but rather expanded menus that build on the brand's existing grab-and-go and upscale bar-food concepts.

The F&B enhancements are among the first changes to come from Starwood's December 2009 decision to launch a dedicated select-service organization at the corporate level, which oversees operations at its three select-service brands: Aloft, Element and Four Points by Sheraton.

The new select-service organization is dedicated to streamlining operations in terms of F&B, technology, training, sales, revenue management and marketing.

AUTOGRILL EXPANDS WITH NEW OPENING AT THE LOUVRE

Paris, France: Autogrill has expanded its food & beverage portfolio by opening the "Restaurants du Monde", the biggest food court in France, in the world's most visited museum, the Louvre.

According to The Moodie Report, the new food & beverage facilities on the first floor of the Carrousel du Louvre, with a view of the location’s famous inverted pyramid, and will include seven restaurants and three coffee shops (covering 1,800 sq m) will be operated directly by Autogrill France who will employ around 200 people.

The F&B range offers 400 recipes and will serve some two million meals a year, said the group. Restaurants du Monde is expected to generate over €10 million (US$16.31 million) a year.

The offer is said to cater to diverse tastes – French, Italian, Spanish, Mediterranean, Asian and American – and will “meet the needs of both cosmopolitan tourist and local Parisian clientele”, said Autogrill.

The project is part of Autogrill’s development of new business in cultural and other high prestige locations, such as the archaeological sites at Pompei, the Triennale in Milan, the Museo del Cinema in Turin, the Jardins de Versailles, the Palacio Real in Madrid and New York's Empire State Building.

GREECE RAISES TOBACCO, ALCOHOL TAXES

Athens, Greece: Greece's government announced it is increasing taxes on tobacco and alcohol, so as to rise EUR1 billion (US$1.43 billion) as the country grapples with a debt crisis, reported Business Times on January 8.

The Finance Ministry said the increase will take immediate effect for alcohol sales, while cigarette prices will increase January 12.

"The measure will help increase budget revenues and deter consumption, to the benefit of public health," a ministry statement said. The government has ruled out any increase in value added tax, currently at 19 percent.

Under the changes, tax on a packet of cigarettes will rise from 57.5 to 70 percent. Greeks are among the heaviest smokers in the European Union.

For most drinks, tax per liter (0.26 gallon) of alcohol will rise from EUR11.4 to EUR13.7, making the increase minor for wine and beer but more significant for spirits.

The new prices would mean a packet of cigarettes, commonly priced at EUR3.20 will cost EUR3.61 and add about EUR1 to the price of a bottle of whisky, currently selling at about EUR14.

"We are trying to impose changes that are sensitive to (people's budgets), so the increase on cheaper cigarettes and drinks will be lower than it will be for those at a higher price," Finance Minister George Papaconstantinou said.

He blamed the previous conservative government, ousted in an October general election, for Greece's financial woes. "At the table of finance ministers of the European Union, I feel very uncomfortable because I am obliged to defend an image that does no credit to my country," Papaconstantinou remarked.

Under heavy pressure from EU partners and international markets to improve its finances, Greece has promised to bring its soaring budget deficit below 3 percent of economic output by 2012 -- from an estimated 12.7 percent last year.

Government officials also say the huge public debt, projected at EUR300 billion in 2009, will start to fall from 2012, while the shrinking economy is expected to begin expanding again in 2011.

A team of European Union and European Central Bank inspectors completed a three-day visit to Athens, during which they held extensive talks with senior government officials on budgetary spending and proposed reforms.

Finance Ministry officials say they will submit an economic stability plan, outlining the spending cuts, to the European Union ahead of the January 31 deadline.

Brazilian Confectionery expects 10% growth in 2010

Brasilia, Brazil: According to a press report released by International Susswaren Messe (ISM) 2010, Brazil, the fourth largest manufacturer and sixth largest exporter of confectionery in the world, managed to not just obtain 2009 global sales almost levelled with its 2008’s record setting figures, it also increased the number of countries to which it exports sweets, chewing gum, chocolate and peanuts from 142 to 145.

Forecasts indicate that the Brazilian confectionery industry should experience 10 percent growth in 2010, resulting in the sector having a confident start to the year.

A record number of 37 Brazilian companies will be participating in ISM 2010, 30 of which are included under the Sweet Brazil banner (ABICAB, Brazilian Chocolate, Sugar Candies and Peanut Manufacturers Association).

The ABICAB project, undertaken with the support of Apex-Brasil (the Brazilian Trade and Investment Promotion Agency), will see companies exhibiting over an area spanning 720 sq m, the largest ever occupied by Brazil at ISM.

According to ABICAB President Getulio Ursulino Netto, Brazil’s solid economic performance, which remained practically unscathed during the international crisis, coupled with Brazilian’s sincere way of establishing lifelong business partnerships, allowed the Brazilian industry sales to maintain stability and even resulted in new markets being opened in 2009.

Almost all of Brazil’s confectioners are also set to further expand their production capabilities to meet the growing domestic demand. One of the most notable example is Nestlé, in which it will invest more than R$230 million (US$128 million) to increase the capacity of its chocolate garoto plant located in Vila Velha, in the state of Espírito Santo, in Brazil’s South-East.

Kraft, which already has a chocolate plant in the south of Brazil, has earmarked R$100 million for the construction of a chocolate and juice plant in the state of Pernambuco, in Brazil’s North-East.

Brazil is currently the largest producer of sugar in the world and the fifth largest producer of cocoa. It has a growing internal demand, with 85 million consumers out of a total population of 192 million.

“We are seeing expressive growth in non-traditional markets (Singapore: 46 percent; South Korea: 27 percent, Russia: 144 percent), although the exports to the US, one of our main markets, has yet to recover”, said the ABICAB President.

At the Sweet Brazil International – the country’s largest confectionery trade fair –, held in August of 2009, the industry saw the launch of 150 new products, all of which will be presented at ISM 2010, in which other new products will also be launched.

NEW GENERAL MANAGER FOR AL BUSTAN ROTANA DUBAI

Dubai, UAE: Rotana, the leading hospitality management company in the Middle East is pleased to announce the appointment of Mohammad Haj Hassan as the new General Manager of Al Bustan Rotana Dubai.

Mohammad joined the company in 2003 as Beach Rotana Abu Dhabi ‘s Food & Beverages Manager. In January 2008, he was General Manager of Al Salam Rotana in Khartoum, Sudan.

With 11 years of experience in the hospitality industry, Mohammad aims to bring the hotel to greater heights, spearheading new initiatives that will NNOUNCEMENTSfurther seal the reputation of Al Bustan Rotana Dubai as a market leader in terms of facilities, services, products and guest satisfaction.

Mohammad intends to extend the market reach of the hotel with his plans of strengthening the business with the international market while maintaining and further improving the strong relationship with individual guests and corporate clients from the Middle East.

LA TORRETTA LAKE RESOR & SPA APPOINTS NEW DIRECTOR OF F&B

Houston, US: According to Hotel Interactive, Nancy Paliani, a hospitality industry veteran with 25 years of experience in the upscale sector, has joined Noble House Hotels & Resorts’ La Torretta Lake Resort & Spa as director of food & beverage.

In this capacity, she will oversee culinary operations for the US$130 million, 445 room luxury waterfront destination which features a dedicated 70,000 sq ft foot conference and events center.

Prior to joining La Torretta Lake Resort & Spa, Paliani had served in various upscale hotels such as the Hyatt Hotels and Resorts, Hyatt Regency, Ritz-Carlton Hotels & Resorts, La Costa Resort and Spa, the Grand Wailea Resort, and the Loews Philadelphia Hotel.

Hormel Foods Acquires Country Crock Side Dish Line

Minnesota, US: Hormel Foods Corporation, a producer and marketer of consumer-branded meat and food products, has entered into a definitive agreement to acquire the Country Crock chilled side dish line from Unilever United States, Inc (UUS). All the entities are based in the US.

Unilever said Hormel will market and sell Country Crock products under a license agreement. No Unilever employees will be transferred with the business, a report by Dow Jones newswires said.

UUS is a consumer products company, while the Country Crock chilled side dish line consists of 10 varieties of refrigerated, microwaveable, multi-portion, potato and pasta-based side dish products. Some of these products include mashed potatoes and macaroni and cheese. The business generated about US$50 million in revenue last year for Unilever, the Associated Press reported on January 20, 2010.

According to the transaction, Hormel Foods will market and sell Country Crock chilled side dish products under a license agreement. UUS will retain the Country Crock trademark as well as the spreads product line.

The transaction is expected to close by February 2010.

The acquisition, which complements Hormel Foods' existing protein-based refrigerated products, represents a significant opportunity for the company to advance its participation in the segments of convenient meals and side dishes.

Michael B Polk, the president of Unilever Americas, said the deal was part of ongoing efforts to reshape his company's North America product line.

Reser's Fine Foods To Offer 500 Jobs

North Carolina, US: Reser's Fine Foods Inc will expand its North Carolina plant and create 500 new jobs over the next five years, ABC news reported on January 19, 2010. The plant, located at the Halifax Industrial Center in Halifax County will prepare salads, dips, side dishes and other products under a variety of brand names. Some names include: Stonemill Kitchens, Baja Café, Mrs Kinser’s, Don Pancho and the Reser’s range.

This expansion is estimated to cost more than US$60 million, according to state Commerce Assistant Secretary for Communications and External Affairs Katharine C Neal, the Daily Herald reported.

Some US$1 million will come from a government grant, the ABC news report said. Reser’s Fine Foods will have to fork out US$15 million for phase one of the plan.

"We are convinced North Carolina is the best strategic location, and we are excited to expand there," said CEO Al Reser in a statement. "We plan to build a facility that the people of Halifax County and our employees are proud of, and one that will continue to produce great products."

Starbucks Beverages To Be Made, Marketed By Arla Foods In Europe

Washington, US: Arla Foods has clinched a mega deal to manufacture, distribute and market Starbucks’ ready-to-drink coffee beverages in the European market.
Arla Foods is owned by 7,800 Swedish-Danish dairy products cooperative members who supply milk on a daily basis and cater to over 250 million customers in Northern Europe.

Baltimore news reported that Starbucks has plans to open 100 net new stores in the US and 200 new net international cafes, mostly in Europe.

The ready-to-drink beverage market in Europe is estimated to be worth about EUR 368 million a year, the Copenhagen Post report on this deal said.

“The success we have had bringing ready-to-drink coffee products to consumers in North America and Asia demonstrates the global potential of the business and we are proud to join with Arla Foods to bring our premium RTD beverages to consumers in Europe,” Starbucks’ global consumer products vice president Rich DePencier said in a statement.

McDonald's Delivers Another Year of Strong Results In 2009

Illinois, US: McDonald's Corporation on January 22, 2010 announced strong results for the fourth quarter and year ended December 31, 2009, driven by global comparable sales growth.

"McDonald's 2009 results reflect the broad-based strength of our global business," said McDonald's CEO, Jim Skinner. "Our in-demand food and beverages, unparalleled convenience and superior value at every level of our menu enabled us to serve 60 million customers per day during 2009, up two million per day over the prior year. In addition, McDonald's profitability increased as we marked our sixth consecutive year of positive comparable sales in every geographic segment and generated higher global revenues, operating income and earnings per share in constant currencies – all tremendous accomplishments given the tough global economy."

Global comparable sales increased 3.8 percent, fueled by the US (2.6 percent), Europe (5.2 percent) and Asia Pacific, Middle East and Africa (3.4 percent).

Throughout 2009, McDonald's U.S. sales outpaced the overall quick-service restaurant industry and drove market share increases. In the fourth quarter, US operating income rose as consumers enjoyed core menu favourites, everyday value offerings and new premium products, including McCafe espresso-based coffees and the Angus Third Pounder, and commodity costs eased.

McDonald's Europe delivered strong comparable sales for the fourth quarter against robust prior year results. The UK, France and Russia led the segment's operating income growth for the quarter. Emphasis on fourth-tier menu development, premium product innovation, daypart expansion and restaurant reimaging continued to provide an appealing restaurant experience and drive market share gains.

In the fourth quarter, Asia Pacific, Middle East and Africa (APMEA) delivered impressive double-digit operating income growth fuelled by results in Australia, expansion in China and operating efficiencies and lower commodity costs in many markets. Strong execution in convenience, value, core menu and breakfast continued to drive APMEA's performance.

Jim Skinner concluded, "As we begin 2010, McDonald's January global comparable sales trend remains positive. We will continue our fiscal discipline by investing prudently and returning excess cash to shareholders. I am confident that the collective efforts of our franchisees, suppliers and employees will continue to drive value for all stakeholders."