Friday, July 30, 1999

U.S. takes action against EU

July 30—The U.S. Secretary of Agriculture announced the implementation of retaliatory measures against the European Union (EU) on Thursday. Because of the beef hormone issue, the United States began implementing retaliatory measures against exports from the EU valued at $116.8 million. Dan Glickman said, " We are taking this WTO-authorized retaliation because the EU has left us with no recourse. It is unfortunate that the EU has brought us to this point by choosing to ignore the WTO rulings that U.S. beef should be afforded access to the EU market . The EU is the only WTO member country not to abide by a WTO ruling. Every other member receiving an adverse judgment from the dispute-settlement process has abided by that decision."

McNeil announces Benecol dressing flavors

July 30—The makers of Benecol have launched a new line of dressings. The first line of dressings that help promote healthy cholesterol levels, Benecol Dressings, will be launched today by McNeil Consumer Healthcare, a member of the Johnson & Johnson family of companies. The Benecol line of foods contains plant stanol ester, which has been clinically proven to lower LDL, or "bad" cholesterol up to 14%. Most people can start to see healthier cholesterol levels within two weeks of eating three servings of Benecol per day, in place of regular spreads and salad dressings, as part of a healthy lifestyle. With reported distribution in grocery stores of 66% within two weeks after the May launch and climbing to 82% in the fourth week after launch, distribution of Benecol spread has outpaced recent new product launches such as WOW Chips and V8 Splash. Like Benecol regular and light Spreads, Benecol Dressings can be easily incorporated into meals and snacks, and should be used as part of a healthy diet. Benecol Dressings are available in four popular flavors, including Ranch, French-Style, Thousand Island and Creamy Italian. The new dressings are available in grocery stores, drug stores and mass merchandisers for a suggested retail price of $4.99.

Thursday, July 29, 1999

Kellogg reports increase in earnings

July 29—Kellogg Company reported second quarter earnings per share of $.38, an increase of 8.6% over the second quarter of 1998. Kellogg also reported net earnings of $154.2 million, up 7.7%, and net sales of $1.78 billion, up 4.1%. "As we continue to make progress in our cereal business, our high-growth convenience foods business delivered another quarter of strong double-digit growth," said Carlos M. Gutierrez, president and chief executive officer of Kellogg Company. According to Gutierrez, market conditions continue to be very challenging in both North America and Europe for the cereal business.

Codex Alimentarius to meet

July 29—The Office of Under Secretary for Food Safety, United States Department of Agriculture (USDA) is sponsoring a public meeting on August 17, 1999. The purpose of this meeting is to provide information about decisions on issues considered at the Forty-sixth Session of the Executive Committee of the Codex Alimentarius Commission and the Twenty-third Session of the Codex Alimentarius Commission which were held in Rome, Italy June 24-25, 1999, and June 28-July 3, 1999, respectively, and to take comments on the future direction of U.S. efforts in Codex. For more information, see the Federal Register of July 29, 1999 (Volume 64, Number 145).

Wednesday, July 28, 1999

ADA commends Congress for support

July 28—For the second consecutive year—in two different sessions of Congress—a bipartisan majority of the House of Representatives has signed on as co-sponsors of legislation that would permit reimbursement under Medicare Part B for care provided by registered dietitians or nutrition professionals. The American Dietetic Association (ADA), which has been urging Congress for nearly four years to extend Medicare to cover comprehensive nutrition services, particularly in outpatient settings.

Vitamins C, E play role in reducing prostate cancer

July 29—A new research report by a group at the University of Wisconsin indicates that a combination of antioxidant Vitamins C and E can reduce the effect of male hormones that stimulate prostate cancer cells. A team led by Dr. George Wilding of the University of Wisconsin's Department of Medicine reported in the Journal of the National Cancer Institute: "Previous studies have suggested that male hormones (androgens) ... are linked to the development of prostate cancer. We hypothesized that androgens contribute to prostate carcinogenesis (cancer) by increasing oxidative stress." Then, in tests, the five-member team demonstrated that Vitamin C plus Vitamin E blocked cellular activities that can lead to prostate cancer.

Bush Boake Allen reports earnings

July 28—Bush Boake Allen Inc. reported second quarter earnings of $.30 a share (diluted) compared to the $.45 a share (diluted) earned in the second quarter of 1998. Net sales in the second quarter increased 4% to $127 million from $122 million in the prior year. Net income was $5.8 million compared to $8.7 million in the second quarter of 1998. "For the most part, the second quarter reflected a continuation of the difficult market conditions that were evident during the first three months of this year, particularly in our aroma chemical and European flavor and fragrance businesses," stated Julian W. Boyden, BBA's chairman, president and chief executive officer.

Michael Foods forms joint venture

July 28—Michael Foods, Inc. announced that it has formed an egg products joint venture in Canada with two partners. The joint venture, Trilogy Egg Products, Inc., will sell value-added egg products in Canada. Trilogy is equally owned by Michael Foods, Inc., Canadian Inovatech, Inc., a leading Canadian egg products producer, and The Egg Producers Co-op Ltd., a group of Manitoba-based egg producers. Michael Foods will provide the joint venture with processing know-how for value-added egg products, primarily extended shelf-life liquid eggs, brand names, and marketing expertise, while the other partners will provide manufacturing capabilities and eggs for processing.

Guentert named VP at Haarmann & Reimer

July 28—Raymond E. Rossi, President of Haarman & Reimer’s Flavor Division, announces the appointment of Matthias Guentert as Vice President, Research and Development, Flavors. Guentert to Mr. Rossi. In his new position, Matthais Guentert will be responsible for natural research/flavor development, analytical service, formula management, and technology development.

Tuesday, July 27, 1999

Nabisco establishes E-business unit

July 27—Nabisco, Inc. announced the creation of a new business unit, Nabisco Global E-Business, and named one of its senior executives as president. Sharon A. Fordham, currently senior vice president of marketing for the Nabisco Biscuit Company, will assume the new position effective immediately. "The dramatic growth of the Internet, E-Commerce, electronic business-to-business transactions and a host of other related activities will make global E-business one of the most important drivers of all commerce in the future,'' said James M. Kilts, president and CEO of Nabisco. "Our new Global E-Business unit will provide Nabisco with a worldwide strategy, new business model and dedicated organization that will guide and enhance our future growth." Mr. Kilts said that Nabisco's Global E-Business unit would have wide-ranging responsibilities, including leadership in the grocery industry's new efforts to utilize the Extranet as an industry-wide standard for conducting E-business; exploration of the rapidly growing area of on-line grocery retailing; Internet advertising and marketing; consumer relationship marketing; and electronic customer support services.

Hershey announces improved sales and income

July 27—Hershey Foods Corp. announced sales and earnings for continuing operations for the second quarter ended July 4, 1999. On a continuing operations basis, consolidated net sales for the second quarter of 1999 of $853,239,000 increased by 7.4%, net income of $50,055,000 increased by 6.4%, and earnings per share diluted of $.35 increased by 9.4%. During the first six months of 1999, consolidated net sales from continuing operations of $1,769,121,000 declined about one percent, net income of $108,221,000 declined by 7.1%, and earnings per share diluted of $.76 declined 5.0%.

Monday, July 26, 1999

Kelco Biopolymers notes product anniversary

July 26—At this year's Institute of Food Technologists Annual Meeting and Expo, July 24-28, Chicago, Ill., Monsanto's Kelco Biopolymers marked the 30th anniversary of the introduction of its Keltrol® line of xanthan gum to the food and beverage industry.

Survey shows improvement in home food safety practices

July 26—While the vast majority of households are still at risk for foodborne illnesses, consumers are starting to show some improvement in their habits and practices. These were the findings of the 1999 home food safety survey conducted by Audits International, the leaders in food safety risk assessment. The 1999 survey, a follow-up to the ground-breaking survey conducted in 1997, measured respondents' food safety and sanitation practices, during a meal prepared in their own kitchens, against those standards that restaurants routinely pass. According to Richard W. Daniels, President of Audits International, ``It was no surprise that only a handful of respondents passed the 1997 survey. Most of us have higher expectations for food safety practices in restaurants than we do in our own homes.'' These practices include activities such as washing hands and avoiding cross contamination, cooking to safe temperatures, preparing and holding hot/cold ingredients and storing leftovers. Data for the 1999 survey was collected from a total of 121 households in 82 cities. For a copy of the 1999 Home Food Safety Survey, visit their website at www.audits.com.

Sunday, July 25, 1999

USDA announces HACCP grants

July 25—Agriculture Secretary Dan Glickman announced grants to five land grant universities that will serve as models for very small meat and poultry plants due to implement the final phase of the nation's new, science-based inspection system in January.  “This is a model of cooperation," said Glickman.  “USDA is helping these universities to help very small meat and poultry plants meet the tough standards of our new, prevention-oriented inspection system.” The five grant recipients are: Ohio State University, Columbus, Ohio - $30,000; University of Tennessee Institute of Agriculture, Knoxville, Tenn.- $19,500; Pennsylvania State University, Harrisburg, Pa. - $18,193; Southern University and A&M College, Baton Rouge, La. - $16,986; Iowa State University, Ames, Iowa.- $15,000. The five universities receiving grants from USDA's Food Safety and Inspection Service will offer technical training and information to very small plants, those with fewer than 10 employees or less than $2.5 million in annual sales.  Plant owners and managers will be able to receive one-on-one assistance and answers to their questions.  

Safeway to buy Randall's food chain

July 25—Safeway Inc. has announced that it will purchase the 116-store Houston-based Randall's Food Markets chain in a $1.4 billion cash and stock deal. The combined company will operate more than 1,645 stores in 19 states and in Western Canada, employing more than 183,000 people. Sales are estimated at $30 billion. Randall's operates 46 stores in Houston and 12 in Austin, plus 58 Tom Thumb stores in the Dallas-Fort Worth area, will continue to operate under the Randall's and Tom Thumb names.

Dean Foods announces dividend

July 25—The Board of Directors of Dean Foods Company voted to increase the quarterly dividend rate to 22 cents per share from 21 cents, a 5% increase. The Company has paid a dividend for 56 consecutive years.  Dean Foods is the nation's leading dairy processor and distributor, producing a full line of branded and private label products, including fluid milk, cottage cheese and ice cream sold under the Dean's and other regional brand names. Dean dips and Marie's refrigerated salad dressing are the leading brand names in their respective categories, while Dean Foods is also the leader in private label pickles and non-dairy coffee creamers. 

Pepsi acknowledges making Coca-Cola compliant

July 25—According to an AP report, PepsiCo has acknowledged filing the complaint that prompted a European investigation of charges Coca-Cola is illegally trying to force competitors out of the market. Pepsi said Friday it first complained to European regulators about Coke's business practices last year and formally filed its complaint June 1.

Thorn Apple Valley sold

July 25—IBP, Inc., the nation’s largest meat packer based in Dakota Dunes, S.D., has announced it is buying Thorn Apple Valley as part of a bankruptcy plan for $115 million. The sale was approved Thursday by Judge Ray Reynolds Graves in U.S. Bankruptcy Court in Detroit. He ruled that all proceeds will go to secured creditors.

Friday, July 23, 1999 

McDonald's posts great results  

July 23—McDonald's Corporation announced record global results for the quarter and six months ended June 30, 1999. Based on increased sales linked with promotions such as the Furby Happy Meal program, which set a record as our highest Happy Meal program ever, excluding Teenie Beanie Babies. Also in the U.S., breakfast bagel sandwiches, which were rolled out in more than 5,600 restaurants, primarily in our Great Lakes and Northeast Divisions, drove incremental breakfast business. Diluted net income per common share was up 12%, operating income rose 10%, sales for the quarter were up 15% in Latin America, 13% in Europe and 8% in Asia/Pacific in constant currencies. U.S. sales increased 5% for the quarter. 

Key Technology releases new operating system 

July 23—Key Technology, Inc., a manufacturer of process automation equipment primarily for the food processing industry, today announced the introduction of Tegra® Operating System 2.0. The new software product is available as an upgrade to all existing Tegra optical inspection systems in the field and will be supplied with all future shipments of the Tegra sorter. News releases and other information on Key Technology, Inc. can be accessed at www.keyww.com 

Icon Genetics and Biosource announce agreement 

July 23—Icon Genetics, Inc. announced the signing of an agreement with Biosource Technologies, Inc. (Vacaville, CA) in which Biosource will license key enabling gene transfer technology from Icon for use in conjunction with Biosource's proprietary Geneware(TM) system. "The agreement recognizes the importance of being able to control gene activity and of managing the transfer of transgenes into valuable crops, particularly as our rate of gene discovery escalates," said Robert Erwin, CEO of Biosource. "Our Genomics group continues to generate a tremendous number of new and useful genes, many of which will need go on to testing in valuable crop species after validation in Geneware,'' added Erwin.  

Suiza Foods acquires Valley of Virginia Coop 

July 23--Suiza Foods Corporation announced that it has signed a definitive agreement to acquire Valley of Virginia Cooperative Milk Producers Association, an agricultural marketing cooperative with two dairy processing plants. Valley of Virginia, which had sales of approximately $206 million in the past year, sells milk and ice cream products in Virginia, Maryland, Pennsylvania, Delaware, and the District of Columbia and ultra-high temperature (UHT) dairy products across the eastern half of the United States, primarily under the Shenandoah's Pride® brand.  

Gardenburger reports results 

July 23--Gardenburger, Inc. reported sales for the second quarter ended June 30, 1999 of $22.2 million, a 14% decrease from the second quarter of 1998, chiefly due to lower than anticipated sales of the Gardenburger brand® and the veggie burger category in the grocery channel. "We are disappointed by our second quarter results," said Lyle Hubbard, Gardenburger's chief executive officer. "Our aggressive growth plan was dependent upon our ability to accelerate consumer trial of the Gardenburger brand and the veggie burger category. Despite a strong start to the year, with unit sales up 69% for the brand during the first quarter according to A.C. Nielsen consumer data, second quarter growth slipped to only 2%, leaving Gardenburger up only 22% year-to-date.'' 

Thrusday, July 22, 1999 

Investigators raid Coca-Cola’s European offices 

July 22—According to an AP report, European Union investigators have raided the offices of Coca-Cola Co. in four European nations on suspicion the company abused its position as the world's leading soft drinks maker by offering retailers unfair incentives to shut out competitors. EU Competition Commissioner Karel Van Miert said he had ordered raids on Coke offices in Britain, Germany, Austria, and Denmark over the past two days to seize documents. A statement from Coke's London office said the company was "very much in compliance with the spirit and letter of all competition laws." 

Heinz sells Weight Watchers Weight Control unit  

July 22—H. J. Heinz Co. announced that it has agreed to sell the Weight Watchers weight control business for $735 million to a unit of Artal Luxembourg, S.A., a European private investment firm. Senior Weight Watchers management will be invited to participate in the buyout, and Heinz will use $14 million of the proceeds to retain an equity interest of 6 percent under the leveraged recapitalization structure of the transaction. The sale does not include Weight Watchers core food businesses such as Weight Watchers Smart Ones frozen meals, desserts and breakfast items, Weight Watchers from Heinz in the UK and a broad range of other Weight Watchers branded foods in Heinz's global core product categories. 

STERIS to acquire FoodLabs 

July 22—STERIS Corp. announced it has entered into a definitive agreement to acquire all outstanding shares of privately held FoodLabs, Inc. The transaction is expected to close by July 31, 1999. FoodLabs, based in Manhattan, Kansas, is a provider of analytical, product development, and consulting services to the food and agricultural industries, with a particular focus on food safety. STERIS Corporation is a leading provider of infection prevention, contamination prevention, microbial reduction, and therapy support systems, products, services, and technologies.  

APS meeting to discuss bioterrorism and food security 

July 22—Most people have heard of the Irish potato famine and other plant diseases that have wiped out a country's staple crop. Throughout history, there have been many famines and epidemics as a result of disease. What if they were caused deliberately? Many people are aware of the threat of biological weapons directed towards people, but few realize the potential dire effects of crop bioterrorism, the use of pathogens to cause a food crop epidemic or contamination of our food supply. A symposium to bring together plant pathologists, military intelligence and criminal experts to discuss anti-crop bioterrorism will be held during the joint American Phytopathological Society (APS) and Canadian Phytopathogical Society (CPS) Annual Meeting in Montreal, Canada. The symposium on plant pathology's role in combating anti-crop bioterrorism and promoting food security, will be held at the APS/CPS Annual Meeting in Montreal, Canada on Tuesday, August 10 at 2 p.m. For more information on APS, visit the website at http://www.scisoc.org. 

FSIS to hold meeting on HACCP implementation 

July 22—The Food Safety and Inspection Service (FSIS) is holding a public meeting on August 17-18, 1999, to discuss technical issues related to the implementation of the Pathogen Reduction/Hazard Analysis and Critical Control Point Systems, Final Rule. The focus of the meeting will be to address how a hazard analysis is to be conducted and documented, and what constitutes validation of HACCP plans. The meeting will be held August 17-18, 1999, the Embassy Suites Omaha Downtown/Old Market, 555 South 10th Street, Omaha, Nebraska 68102. For more information, see the Federal Register of July 22, 1999 (Vol. 64, No. 140).  

Wednesday, July 21, 1999 

Earnings reports 

July 21—Worthington Foods, Inc., the world's largest company solely dedicated to producing and marketing meat alternative products, reported net sales improved 27.5% to $45,951,000 for the thirteen weeks ended July 2, 1999 from $36,038,000 for the comparable period last year. Net sales for the first six months of 1999 rose 22.9% to $82,759,000 from $67,348,000 in 1998. 

Tasty Baking Company announced financial results for the second quarter and twenty-six weeks ended June 26, 1999. For the second quarter, gross sales were $56.8 million, compared to $56.9 million last year. Gross sales, less discounts and allowances, resulted in net sales of $38.5 million, compared to $38.4 reported last year. Net income for the thirteen weeks was $1.4 million, or $0.18 per diluted share, compared to $1.0 million or $0.13 per diluted share during the prior period.  

Chiquita Brands International, Inc. reported second quarter net income of $7million ($.05 per share) compared to 1998 second quarter earnings of $53 million ($.66 per share). The decrease in earnings was primarily attributable to the Company's Fresh Produce business segment. Second quarter results for the Company's Processed Foods segment were comparable to the prior year. 

Pilgrim's Pride Corporation announced record third fiscal quarter results for its quarter ended July 3, 1999 with net income of $18.3 million, or $.66 per share, an increase of 54.8%, compared to the prior year third fiscal quarter net income of $11.8 million, or $.43 per share. Net sales for the third fiscal quarter increased 4.8% to a record $344.2 million from $328.5 million in the prior year third fiscal quarter.  

Nature's Sunshine Products, Inc., a leading manufacturer and marketer of encapsulated herbs and vitamins, today announced operating results for the second quarter and six months ended June 30, 1999. Second quarter sales revenue was $71.6 million compared to $77.2 million in the same period the prior year, a decrease of 7 percent. Net income for the same period was approximately $4.8 million compared to $6.1 million the prior year, a decrease of 21 percent. For the second quarter, basic and diluted earnings per common share were $0.27 compared to basic and diluted earnings per common share of $0.33 and $0.32, respectively, in the same period the prior year.  

Buoyed by a net gain from bottling transactions, PepsiCo's second quarter EPS soared 48% to $.49, compared to $.33 per share in 1998. Net income jumped to $743 million, compared to $494 million a year ago. Results in the 1999 period include an after-tax net gain of $270 million or $.18 per share from the sale of shares by The Pepsi Bottling Group and the merger of bottling franchises with the Whitman Corporation. Revenues were $5.0 billion in the quarter. Revenues include the results of bottling operations for part of the 1999 quarter, compared to a full quarter in 1998. Comparisons in the current quarter reflect growth at Frito-Lay and Pepsi-Cola and the inclusion of Tropicana, the world's leading branded juice company. PepsiCo purchased Tropicana in August 1998. 

International workshop on total diet studies 

July 21—An international workshop on total diet studies is to be held in Kansas City, Mo. on July 26 to August 6, 1999. It will be cosponsored by the U.S. Food and Drug Administration and the World Health Organization in cooperation with the Pan American Health Organization. Divided into two parts, the first week’s workshop will include presentations and discussions concerning the planning, implementation and evaluation of total diet studies, including practical advice from several countries with long experience in total diet studies, include Japan, New Zealand and the USA. Persons interested in participating in the workshops should register throughthe FDA homepage at http://www.fda.gov/ora/RegForm/TD_Register.html. 

For comments and questions contact: James Giese, Institute of Food Technologists, 221 N. LaSalle St., Suite 300, Chicago, IL 60601, 312-782-8424jhgiese@ift.org

Thrusday, July 22, 1999

Investigators raid Coca-Cola’s European offices

July 22—According to an AP report, European Union investigators have raided the offices of Coca-Cola Co. in four European nations on suspicion the company abused its position as the world's leading soft drinks maker by offering retailers unfair incentives to shut out competitors. EU Competition Commissioner Karel Van Miert said he had ordered raids on Coke offices in Britain, Germany, Austria, and Denmark over the past two days to seize documents. A statement from Coke's London office said the company was "very much in compliance with the spirit and letter of all competition laws."

Heinz sells Weight Watchers Weight Control unit

July 22—H. J. Heinz Co. announced that it has agreed to sell the Weight Watchers weight control business for $735 million to a unit of Artal Luxembourg, S.A., a European private investment firm. Senior Weight Watchers management will be invited to participate in the buyout, and Heinz will use $14 million of the proceeds to retain an equity interest of 6 percent under the leveraged recapitalization structure of the transaction. The sale does not include Weight Watchers core food businesses such as Weight Watchers Smart Ones frozen meals, desserts and breakfast items, Weight Watchers from Heinz in the UK and a broad range of other Weight Watchers branded foods in Heinz's global core product categories.

STERIS to acquire FoodLabs

July 22—STERIS Corp. announced it has entered into a definitive agreement to acquire all outstanding shares of privately held FoodLabs, Inc. The transaction is expected to close by July 31, 1999. FoodLabs, based in Manhattan, Kansas, is a provider of analytical, product development, and consulting services to the food and agricultural industries, with a particular focus on food safety. STERIS Corporation is a leading provider of infection prevention, contamination prevention, microbial reduction, and therapy support systems, products, services, and technologies.

APS meeting to discuss bioterrorism and food security

July 22—Most people have heard of the Irish potato famine and other plant diseases that have wiped out a country's staple crop. Throughout history, there have been many famines and epidemics as a result of disease. What if they were caused deliberately? Many people are aware of the threat of biological weapons directed towards people, but few realize the potential dire effects of crop bioterrorism, the use of pathogens to cause a food crop epidemic or contamination of our food supply. A symposium to bring together plant pathologists, military intelligence and criminal experts to discuss anti-crop bioterrorism will be held during the joint American Phytopathological Society (APS) and Canadian Phytopathogical Society (CPS) Annual Meeting in Montreal, Canada. The symposium on plant pathology's role in combating anti-crop bioterrorism and promoting food security, will be held at the APS/CPS Annual Meeting in Montreal, Canada on Tuesday, August 10 at 2 p.m. For more information on APS, visit the website at http://www.scisoc.org.

FSIS to hold meeting on HACCP implementation

July 22—The Food Safety and Inspection Service (FSIS) is holding a public meeting on August 17-18, 1999, to discuss technical issues related to the implementation of the Pathogen Reduction/Hazard Analysis and Critical Control Point Systems, Final Rule. The focus of the meeting will be to address how a hazard analysis is to be conducted and documented, and what constitutes validation of HACCP plans. The meeting will be held August 17-18, 1999, the Embassy Suites Omaha Downtown/Old Market, 555 South 10th Street, Omaha, Nebraska 68102. For more information, see the Federal Registe of July 22, 1999 (Vol. 64, No. 140).

Wednesday, July 21, 1999

Earnings reports

July 21—Worthington Foods, Inc., the world's largest company solely dedicated to producing and marketing meat alternative products, reported net sales improved 27.5% to $45,951,000 for the thirteen weeks ended July 2, 1999 from $36,038,000 for the comparable period last year. Net sales for the first six months of 1999 rose 22.9% to $82,759,000 from $67,348,000 in 1998.

Tasty Baking Company announced financial results for the second quarter and twenty-six weeks ended June 26, 1999. For the second quarter, gross sales were $56.8 million, compared to $56.9 million last year. Gross sales, less discounts and allowances, resulted in net sales of $38.5 million, compared to $38.4 reported last year. Net income for the thirteen weeks was $1.4 million, or $0.18 per diluted share, compared to $1.0 million or $0.13 per diluted share during the prior period.

Chiquita Brands International, Inc. reported second quarter net income of $7million ($.05 per share) compared to 1998 second quarter earnings of $53 million ($.66 per share). The decrease in earnings was primarily attributable to the Company's Fresh Produce business segment. Second quarter results for the Company's Processed Foods segment were comparable to the prior year.

Pilgrim's Pride Corporation announced record third fiscal quarter results for its quarter ended July 3, 1999 with net income of $18.3 million, or $.66 per share, an increase of 54.8%, compared to the prior year third fiscal quarter net income of $11.8 million, or $.43 per share. Net sales for the third fiscal quarter increased 4.8% to a record $344.2 million from $328.5 million in the prior year third fiscal quarter.

Nature's Sunshine Products, Inc., a leading manufacturer and marketer of encapsulated herbs and vitamins, today announced operating results for the second quarter and six months ended June 30, 1999. Second quarter sales revenue was $71.6 million compared to $77.2 million in the same period the prior year, a decrease of 7 percent. Net income for the same period was approximately $4.8 million compared to $6.1 million the prior year, a decrease of 21 percent. For the second quarter, basic and diluted earnings per common share were $0.27 compared to basic and diluted earnings per common share of $0.33 and $0.32, respectively, in the same period the prior year.

Buoyed by a net gain from bottling transactions, PepsiCo's second quarter EPS soared 48% to $.49, compared to $.33 per share in 1998. Net income jumped to $743 million, compared to $494 million a year ago. Results in the 1999 period include an after-tax net gain of $270 million or $.18 per share from the sale of shares by The Pepsi Bottling Group and the merger of bottling franchises with the Whitman Corporation. Revenues were $5.0 billion in the quarter. Revenues include the results of bottling operations for part of the 1999 quarter, compared to a full quarter in 1998. Comparisons in the current quarter reflect growth at Frito-Lay and Pepsi-Cola and the inclusion of Tropicana, the world's leading branded juice company. PepsiCo purchased Tropicana in August 1998.

International workshop on total diet studies

July 21—An international workshop on total diet studies is to be held in Kansas City, Mo. on July 26 to August 6, 1999. It will be cosponsored by the U.S. Food and Drug Administration and the World Health Organization in cooperation with the Pan American Health Organization. Divided into two parts, the first week’s workshop will include presentations and discussions concerning the planning, implementation and evaluation of total diet studies, including practical advice from several countries with long experience in total diet studies, include Japan, New Zealand and the USA. Persons interested in participating in the workshops should register through the FDA homepage at http://www.fda.gov/ora/RegForm/TD_Register.html.

Tuesday, July 20, 1999

Tyson completes sale of seafood assets

July 20—Tyson Foods, Inc. has announced that it has completed its sale of the assets in its seafood division, Tyson Seafood Group, in two separate transactions, originally announced on May 28. The analog business, which includes the manufacture, sales, distribution and marketing of surimi based products under trade names Louis Kemp, Captain Jac, SeaFest and Pacific Mate, was sold to Bumble Bee Seafoods, Inc., a wholly owned subsidiary of International Home Foods, Inc. of Parsippany, New Jersey. The remaining seafood assets, which include vessels, associated fishing rights and shoreside processing plants, were sold to TT Acquisition, Inc., a wholly owned subsidiary of Trident Seafoods Corporation of Seattle, Washington. In these transactions, Tyson will receive proceeds of approximately $180 million for assets with approximate carrying values of $197 million. Those proceeds will be used to reduce indebtedness. The Seafood Group sales for fiscal 1998 were approximately $214 million.

SKW Trostberg expands food additives business

July 20—The Nature Products Division of SKW Trostberg AG is strengthening its position within the food additives market. SKW has acquired Lucas Meyer, Hamburg, Germany. Lucas Meyer holds the worldwide market leadership for lecithin-based specialties. Its business activities focus primarily on lecithins used as emulsifiers for products such as chocolate and baked goods.

Monday, July 19, 1999

Dean Foods acquires Dairy Express

July 19—Howard M. Dean, Chairman and Chief Executive Officer of Dean Foods Co. announced that Dean Foods has acquired Dairy Express, Inc., a full-line distributor of dairy and related products based in the Philadelphia area serving convenience stores, vending companies and independent retailers. Dairy Express has current annual sales of approximately $13 million.

Ion Beam Applications to purchase SteriGenics

July 19—Ion Beam Applications s.a. ("IBA") announced that it has successfully completed its tender offer to purchase all outstanding shares of SteriGenics International, Inc. for $27.00 per share. SteriGenics has developed a position of leadership in the areas of sterilization services of medical devices and food products, and for polymer modification by using gamma radiation. Following the consummation of the offer, a subsidiary of IBA will merge with and into SteriGenics, at which point SteriGenics will become a wholly owned subsidiary of IBA. IBA expects to complete the merger within the next few days.

Friday, July 16, 1999

Plan unveiled for joint food safety research institute

July 16—The President's Council on Food Safety has developed a blueprint for establishing a Joint Institute for Food Safety Research to coordinate federal food safety research. According to the blueprint submitted today, Agriculture Secretary Dan Glickman and Health and Human Services Secretary Donna E. Shalala will jointly lead the Institute, which will work closely with others in federal, state and local government, as well as the private sector and academia. An executive director and staff are expected to be in place later this year. The blueprint and other food safety information can be accessed on the web at www.foodsafety.gov .

Qualicon and Pasteur de Lille to form alliance

July 16—DuPont has announced that its business unit, Qualicon, and the Institut Pasteur de Lille have formed a broad-ranging alliance to improve food safety and public health. The partnership brings Qualicon’s genetic-based technologies together with the talents of the researchers at the institute.

Tropicana to sell juice bowl facility

July 16—Tropicana Products, Inc., has announced that it is seeking a buyer for its beverage packaging and citrus processing facility in Lakeland, Fla. The facility, commonly known as Juice Bowl, has about 125 full-time employees. Tropicana said it intends to sell the 15-acre Juice Bowl facility at 2090 Bartow Road because it no longer fits with the company's strategy. Company officials said that much of Juice Bowl's business consists of packaging beverages for other companies, a business inconsistent with Tropicana's plans. The 175,000-square-foot operation has three packaging lines with an annual capacity to package 18 million cases of canned and glass beverages. It can also process four million boxes (360 million pounds) of citrus per year.

General Mills announces management changes

July 16—Charles W. Gaillard, President of General Mills, has announced his plans to retire on October 1, 1999, after a distinguished 33-year career with the company. Gaillard has led virtually every one of the company's major U.S. foods businesses, and served as the first chief executive officer of Cereal Partners Worldwide, the company's successful joint venture with Nestle. Steve Demeritt, 55, currently Executive Vice President of General Mills and CEO of Cereal Partners Worldwide based in Switzerland, will return to General Mills as Vice Chairman.

Thrusday, July 15, 1999

Coca-Cola earnings drop

July 15—The Coca-Cola Company reported today that second-quarter worldwide unit case volume declined 2%. The volume and earnings drop were partially attributed to difficult global economic conditions that exist in many key markets throughout the world. However, Coke’s recent product withdrawal in Belgium and France was also cited as a cause of the sales drop. For the second quarter, diluted earnings per share were $0.38. These results reflect the slight decline in gallon shipments, the impact of a stronger U.S. dollar, and the continued investment in long-term brand building activities. The overall impact of the recent European situation on second quarter earnings is estimated to be approximately $0.02 - $0.03 per share after tax. This amount reflects the loss of sales in several key markets in Europe, the resulting impact on equity income, and incremental marketing expenses associated with maintaining the strength of our brands.

Universal Foods expands natural color business

July 15—Universal Foods Corp. announced an agreement to acquire Nino Fornaciari fu Riccardo S.N.C., a premier manufacturer of natural colors for the food and beverage industries. Fornaciari is located in Reggio Emilio, Italy. Annual sales are expected to exceed $10 million in the next fiscal year. The cash transaction should be completed by the end of the fourth quarter. Fornaciari is a leading supplier of anthocyanin, a natural food color sold worldwide. The company specializes in producing liquid anthocyanin; complementing UFC's purchase last September of Reggiana Antociani, a producer of dry anthocyanin also located in Italy. The company's products are exported to North America and Japan and are also sold in Europe.

Cyanamid and Nidera to develop herbicide-tolerant corn

July 15—American Cyanamid Co and Nidera Seeds have signed an agreement to develop herbicide-tolerant corn hybrids. This initiative combines Cyanamid's expertise in herbicide tolerant crops and weed control, and Nidera's expertise in the development of high yielding hybrids, through traditional breeding techniques.

Ashland named distributor for Ace-K sweetener

July 15—Ashland Distribution Co.’s Fine Ingredients Division was named the authorized distributor throughout North America for JRS International, Inc.’s Acesulfame Potassium, also known as Acesulfame-K, a high potency sweetener. The agreement was effective July 1999.

Wednesday, July 14, 1999

USDA secretary addresses biotech policy

July 14—In remarks made before the National Press Club on July 13 in Washington, D.C., Secretary of Agriculture Dan Glickman, announced USDA’s plans for regulatory oversight of genetically modified foods. Glickman gave five principles that should guide the USDA approach to biotechnology in the 21st century: " (1) An Arm's Length Regulatory Process. Government regulators must continue to stay an arm's length, dispassionate distance from the companies developing and promoting these products; and continue to protect public health, safety and the environment; (2) Consumer Acceptance. Consumer acceptance is fundamentally based on an arm's length regulatory process. There may be a role for information labeling, but fundamental questions to acceptance will depend on sound regulation; (3) Fairness to Farmers. Biotechnology has to result in greater, not fewer options for farmers. The industry has to develop products that show real, meaningful results for farmers, particularly small and medium size family farmers; (4) Corporate Citizenship. In addition to their desire for profit, biotechnology companies must also understand and respect the role of the arm's length regulator, the farmer, and the consumer; and (5) Free and Open Trade. We cannot let others hide behind unfounded, unwarranted scientific claims to block commerce in agriculture." Glickman also asked for an independent scientific review of USDA's biotech approval process as well as the establishment of regional centers around the country to evaluate biotech products over a long period of time and to provide information on an ongoing basis to growers, consumers, researchers and regulators.

Food Safety Council to meet

July 14—President Clinton's Council On Food Safety will host a day-long public meeting on Thursday, July 15, 1999 to solicit input on the development of a national food safety strategic plan. Council co-chairs Agriculture Secretary Dan Glickman, Health and Human Services Secretary Donna Shalala, and Assistant to the President for Science and Technology Neal Lane are expected to open the meeting at approximately 8:30 a.m., July 15 at the Washington Plaza Hotel, 10 Thomas Circle, NW, Washington, D.C.

Earthgrains reports improved results

July 14—The Earthgrains Company reported that first-quarter net earnings increased 26 percent to $12.5 million, or $0.30 per diluted share, compared with $9.9 million a year ago, or $0.23 per diluted share, excluding a one-time nonoperating gain. Including the pretax gain of $1.7 million for the sale of property in the year-ago quarter, net income was $10.9 million, or $0.26 per diluted share. Last year's earnings-per-share amounts have been restated to reflect the two-for-one stock split effective July 20, 1998.

Opta completes purchase of Stabilized Products

July 14—Opta Food Ingredients, Inc. announced it has completed the purchase of Stabilized Products, Inc., a manufacturer of specialized stabilizing ingredients for the dairy product industry. The cash amount of the acquisition was undisclosed. Stabilized will continue to operate as an autonomous division of Opta.

Jungbunzlauer and Casco to build new citric acid plant

July 14—Jungbunzlauer and Casco have announced that the two companies have signed a long-term supply agreement. As a result, Jungbunzlauer will process fermentation feed stock supplied by Casco into citric acid, at a new facility to be built by Jungbunzlauer in Port Colborne, Ontario. The new plant will be adjacent to the Casco corn wet milling facility, and is expected to be operational by the end of 2001.

Almond crop forecast is up

July 14—The July 8, 1999 objective almond forecast for the 1999-2000 crop year is 830 million meat pounds, according to the California Agricultural Statistics Service (CASS). The forecast is based on 480,000 bearing acres. The forecast is up 9% from last May’s subjective forecast and up 60% from last year’s crop. The nonpareil variety is forecast at 365 million meat pounds, up 73% from last season. The nonpareil variety represents approximately 44% of total California almond production.

Tuesday, July 13, 1999

Keebler recalls fudge cookies for undeclared peanut butter

July 13—Keebler Company today announced that, as a precaution, it is voluntarily recalling 500 cases of E.L. Fudge® Butter Flavored Sandwich Cookies with Fudge Creme Filling marked with the date code G10209B. Packages marked with this code may contain peanut butter filled cookies and not fudge filled cookies as described on the package. People who have an allergy or severe sensitivity to peanuts run the risk of serious or life-threatening allergic reaction if they consume this product. No illness has been reported to date. The affected product is limited to the following areas: Dallas-Fort Worth, Milwaukee, San Diego and San Francisco. The date code is printed on the back of the package. The Company's findings and corrective actions were reported to the Food and Drug Administration and the Food Allergy Network, which provides alerts to allergy sensitive individuals. Consumers are asked to return the product to the place of purchase for product replacement or refund. Consumers may call 800-554-5676 for further information.

FDA issues warning about Sun Orchard unpasteurized OJ

July 13—The Food and Drug Administration is issuing a nationwide warning to consumers against drinking unpasteurized orange juice products, both frozen and liquid, distributed under a variety of brand names by Sun Orchard Inc. of Tempe, Arizona. The products have the potential to be contaminated with Salmonella Muenchen, an organism, which can cause serious and sometimes fatal infections in young children, frail or elderly people, and others with weakened immune systems. Healthy individuals may suffer short-term symptoms such as high fever, severe headache, vomiting, nausea, abdominal pain and diarrhea. Long- term complications can include severe arthritis. Although the company has already issued a warning and undertaken a recall of the affected product, FDA is taking this action because of continuing reports of illness related to this product. The product comes in a variety of forms distributed to retail stores, restaurants and other dining institutions. The product sold in retail stores comes in clear plastic gallon, half-gallon, quart, pint, 12 ounce and half-pint containers. The fresh, unpasteurized orange juice has an enjoy by date of July 7, 1999 or earlier stamped on the side. The products are identified on the labels as freshly squeezed or fresh orange juice. The following labels are involved: Sun Orchard, Earls and Joey Tomatoís, Viola, Trader Joeís, Aloha, Zupan, Markon, and Sysco. In addition, to these liquid retail products, a frozen form of the unpasteurized juice was sold under the brand name Vareva especially to restaurants, food services and other institution. Therefore the agency recommends that consumers check their freezers for the recalled product and inquire about the source of any unpasteurized orange juice they may be served at a restaurant or other dining facility. To date dozens of illnesses have been reported throughout the United States and Canada. The potential for contamination was noted after several individuals in Pacific Northwest became ill after drinking the juice. Subsequent investigation confirmed the presence of Salmonella Muenchen. Sun Orchard has stopped production of unpasteurized orange juice and is currently pasteurizing all of its juice products. Consumers who have purchased unpasteurized orange juice labeled with any of the above listed trade names are urged to return them to the place of purchase for a full refund. Consumers with questions may contact the company at 206-780- 8042 or 212-213-7012.

CFTRI to hold meeting

July 13—The CFTRI Alumni group from Mysore, India, will hold a meeting on Monday, July 26, from 11:30-1:30 p.m. in Chicago, Ill. at the Chicago Hilton and Towers, Room PDR 7(Private Dinning Room). Snack and beverages will be provided. The meeting is to discuss the formation of North American CFTRI Alumni Chapter and for the participation of CFTRI Alumni Meeting in Mysore on November 14th and 15th, 1999. Dr. Prakash, director of CFTRI will also be attending our meeting. An Indian dinner is also arranged for CFTRI Alumni and their friends on July 27th. Transportation will be provided from McCormick Place between 6:30 and 7:00 PM.

Monday, July 12, 1999

Eridania Beghin-Say creates functional foods unit

July 12—Eridania Beghin-Say, a leading manufacturer of starch products, has created a new international business unit, the Health and Nutrition Group. The new unit will develop and market ingredients for the growing functional food industry. "Because EBS is involved in many agricultural businesses, the company is able to transform soybeans, sugar, corn, and wheat into value-added ingredients that are being actively studied for their role in delivering long-term health," said Stefano Meloni, president of EBS. The North American headquarters for the Health & Nutrition Group will be in Fort Wayne, Ind., which is also the headquarters city of Central Soya Co., Inc.

FDA reports raw sprout risks

July 12—Because of reports of increasing numbers of illnesses associated with consumption of raw sprouts, the Food and Drug Administration is advising all persons to be aware of the risks associated with eating raw sprouts (e.g., alfalfa, clover, radish). Outbreaks have included persons of both genders and all age categories. Those persons who wish to reduce the risk of foodborne illness from sprouts are advised not to eat raw sprouts. People in high risk categories should not eat raw sprouts. This advisory is updated from a previous health advisory issued August 31, 1998, and is based on additional information from clover and alfalfa sprout-associated salmonellosis outbreaks from January through May 1999. Two outbreaks were associated with clover sprouts: one occurred in California in May and involved approximately 30 cases; a second outbreak in Colorado from March through May involved approximately 70 cases. In addition, from January through March an outbreak of salmonellosis affecting approximately 85 people occurred in Oregon, Washington, and California and was associated with the consumption of alfalfa sprouts. The sprout industry has been working in cooperation with government, academia, and other industry segments to enhance the safety of its product. These efforts have focused primarily on seed treatment strategies, good manufacturing practices, and sanitation.

Friday, July 9, 1999

OM hot dogs and cold cuts get new packaging

July 9—Oscar Mayer Cold Cuts and Hot Dogs have a new look. The new packaging features new graphics and a new design that will simplify the refrigerated meat case of the supermarket. The new packaging is designed to make it easier for consumers to find OM products. For cold cuts, the product name is now prominently displayed on the "face" of the package. The traditional OM yellow is featured, but the packages are also color-coded to meat type: yellow for bologna, blue for ham, red for turkey, and maroon for salami.

Researchers call for doubling of RDA on vitamin C

July 9—According to a press release from Oregon State University’s Linus Pauling Institute, the recommended dietary allowance, or RDA, for vitamin C should be officially doubled to a new level of 120 mg per day, researchers conclude in a new report, with potential benefits for everything from heart disease to cataracts and cancer. The study, published in the American Journal of Clinical Nutrition by scientists from the Linus Pauling Institute, says the time is past when the amount of vitamin C that can prevent the 16th century sailor's disease of scurvy is considered all that's needed for optimal health. The current recommendation of 60 mg of vitamin C daily has been in place for decades. According to the researchers it doesn't reflect new research, which shows that slightly higher levels of this antioxidant vitamin could play a more important role in prevention of degenerative disease. The totality of evidence from human studies strongly suggests a dietary intake of at least 90-100 mg of vitamin C is associated with reduced risk of cardiovascular disease and cancer, and even higher intakes to reduce cataract risk, said the researchers. For a complete report, see www.sciencedaily.com/releases/1999/07/990709083208.htm

Thursday, July 8, 1999

FDA authorizes whole grains/heart disease claim

July 8—The U.S. Food and Drug Administration authorized a new health claim today that will allow food companies to promote the heart-disease-fighting and cancer-fighting health benefits of whole grains. "Increasing whole grain consumption could have a profound impact on the health of the nation,'' said Louis Sullivan, M.D., former Secretary of the U.S. Department of Health and Human Services and current president of the Morehouse School of Medicine. "We could reduce the incidences of heart disease and cancer substantially.'' The new health claim is the first that endorses a single food in the fight against two chronic diseases: cancer and heart disease. Manufacturers of whole grain foods—or foods that contain 51% or more whole grain (such as whole grain wheat or oats) by weight—can use the following claim on product labels: Diets rich in whole grain foods and other plant foods and low in total fat, saturated fat, and cholesterol may reduce the risk of heart disease and certain cancers.

Tropicana launches juices in India

July 8—Tropicana Products, Inc., a division of PepsiCo, Inc., has announced that it is introducing a line of 100% fruit juices in India. The roll-out marks Tropicana's entry into India. This month, Tropicana orange juice will be available in the New Delhi and Bangalore metropolitan areas. The 100% pure juice will be offered in both one-liter and 250ml shelf-stable aseptic cartons with a suggested retail price of Rs. 57 and Rs. 15 ($1.32, $.34), respectively.

Balchem hires new VP, Specialty Products

July 8—Balchem Corporation, a manufacturer and worldwide distributor of microencapsulated food ingredients and specialty chemicals, has named David F. Ludwig as Vice President and General Manager, Specialty Products. Mr. Ludwig will be a member of the executive management team and be directly responsible for the Specialty Products Business, including sales and marketing, Government registration, business strategy, and logistics.

Safeway Inc. announces 22% increase in earnings

July 8—Safeway Inc. today reported net income of $236.4 million ($0.46 per share) for the second quarter ended June 19, 1999, compared to $193.2 million ($0.38 per share) for the second quarter of 1998, an increase of 22%. Second quarter sales increased 13.5% to $6.3 billion in 1999 from $5.6 billion in 1998, primarily because of the Dominick's acquisition. Comparable-store sales increased 1.5%, while identical-store sales (which exclude replacement stores) increased 0.7%.

FDA to hold meeting on structure/function claims

July 8—The Food and Drug Administration (FDA) is announcing a public meeting to solicit additional comments on three particularly controversial issues raised by FDA's proposed rule on statements made for dietary supplements concerning the effect of the product on the structure or function of the body (``structure/function claims''). This meeting is intended to provide the public an additional opportunity to provide focused comment on these issues in a manner that will assist FDA in evaluating appropriate policies and approaches. FDA is also reopening, until August 4, 1999, the comment period for the proposed rule, to allow interested persons to comment on the issues raised in this document. The meeting will be held on August 4, 1999, from 8 a.m. to 6 p.m. Submit written comments on or before August 4, 1999. For more information see the Federal Register of July 8, 1999 (Volume 64, Number 130).

Wednesday, July 7, 1999

P&G joins Purdue’s Carbohydrate Center

July 7—The Procter & Gamble Co. has become a Sustaining Member of the Whistler Center for Carbohydrate Research in the Department of Food Science at Purdue University. The mission of the university-industry cooperative center is to conduct research and provide education and outreach activities pertinent to practical uses of carbohydrates.

1999 ADSA award winners announced

July 7—The American Dairy Science Association (ADSA) has announced its 1999 award winners. The awards were presented during the 94th Annual Meeting of the ADSA held June 20 in Memphis, Tenn. Complete citations for the recipients are at www.adsa.uiuc.edu.

Luigino’s to open new plant for frozen entrees

July 7—Luigino’s Inc. has announced that the State of West Virginia has agreed to build and lease to the company a 250,000 sq. ft. processing facility in Parkersburg, W. V. Plans call for construction to begin during 2000. The facility will primarily pack Michelina and Michelina YuSing brand frozen entrees.

Tuesday, July 6, 1999

Interstate Bakeries to acquire Culinar Inc.

July 6—Interstate Bakeries Corp., the nation's largest baker and distributor of fresh branded bread and cake products, today agreed to acquire Culinar Inc., a major Canadian baker and distributor of snack cake, cookies, melba toast and other dry products. The acquisition was announced jointly by Charles A. Sullivan, IBC Chairman and Chief Executive Officer, and Bruno Riverin, President and Chief Executive Officer of Investissement Desjardins and Chairman of the Board for its subsidiary, Culinar. The Montreal-based food company serves the Canadian market area principally through its umbrella brands, Vachon, Viau-McCormicks and Grissol. Current sales of Culinar's branded products exceed $210 million U.S. ($300 million Canadian) annually. Culinar also owns the Hostess trademark for Canada.

Shell egg labeling rules published

July 6—The Food and Drug Administration (FDA) has published both the preliminary regulatory impact analysis prepared under Executive Order 12866 and the initial regulatory flexibility analysis prepared under the Regulatory Flexibility Act on the proposed rule (published elsewhere in this issue of the Federal Register) to require shell eggs to contain safe handling statements and to be stored and displayed under refrigeration at 7.2 deg.C when held by retail establishments. FDA is issuing the proposed rule because of the large number of illnesses and deaths caused by Salmonella enteritidis (SE) associated with shell eggs that have not been treated to destroy the pathogen. The proposed rule is intended to ensure that consumers will have the information necessary to protect themselves from eggs contaminated with SE and to ensure that eggs will be held at retail at temperatures that discourage pathogen growth. For more information, see the Federal Register of July 6, 1999 (Volume 64, Number 128).

Newly Weds acquires Norac Technology

July 6—In a move to further integrate their functional ingredient capabilities, Newly Wed Foods recently acquired all the outstanding shares of Norac Technologies, Inc. of Edmonton, Alberta. Charles Angell, President of Newly Weds, explained that the Norac acquisition enables the company to offer the food industry solvent-free ingredients. The benefits are achieved through Norac’s proprietary Supercritical Fluid Extraction process, which utilizes super-pressurized and heated carbon dioxide. This process is advantageous for isolating volatile components of products such as rosemary, ginger, sage, and thyme.

Friday, July 2, 1999

Egg safety measures formulated

July 2—Continuing their joint efforts to combat foodborne illness, the U.S. Department of Agriculture's Food Safety and Inspection Service (FSIS) and the Department of Health and Human Service's Food and Drug Administration (FDA) today announced three important new measures to prevent illnesses caused by contaminated eggs. The FDA is proposing to require safe handling statements on labels of shell eggs to warn consumers about the risk of illness caused by Salmonella enteritidis (SE). FDA's proposed handling instructions will contain the following statement on each carton of eggs:

SAFE HANDLING INSTRUCTIONS: Eggs may contain harmful bacteria known to cause serious illness, especially in children, the elderly, and persons with weakened immune systems. For your protection: Keep eggs refrigerated; cook eggs until yolks are firm; and cook foods containing eggs thoroughly. In addition, for the first time, there will be a uniform federal requirement that all eggs and egg

products packed for consumers be refrigerated at 45 degrees or below. Retail establishments governed by the proposed FDA regulation include supermarkets, restaurants, delis, caterers, vending operations, hospitals, nursing homes and schools. In addition, FSIS is issuing a directive applying the refrigeration requirement to warehouses and other distribution locations that store shell eggs packed into containers destined for consumers, including transport vehicles. A joint FDA-FSIS risk assessment found that refrigeration makes it more difficult for SE bacteria to grow. Finally, the President's Council on Food Safety will develop by November 1 a strategic plan to further improve the safety of shell eggs and processed egg products. The strategic plan will address the issue of controlling pathogens, including SE, and will suggest further steps to help better coordinate egg safety from the farm to the table. The FDA proposal is in the Federal Register of July 1, 1999. Written comments and recommendations on the proposed rule will be accepted for the next 75 days. FSIS's directive takes effect on August 27, 1999.

ConAgra reports fiscal 1999 results

July 2—ConAgra, Inc. reported a 13.9% increase in fiscal 1999 fourth quarter diluted earnings per share and an increase of 8.1% in diluted earnings per share for the full fiscal year ended May 30, 1999, excluding non-recurring charges. Fiscal 1999 is ConAgra's 19th consecutive year of record earnings, excluding required accounting charges and non-recurring items. ConAgra is committed to its 14% long-term trendline growth objective and said it plans double-digit earnings per share growth in fiscal year 2000. Bruce Rohde, ConAgra's chairman and chief executive officer, commented, "Our strength across multiple segments of the food chain proved to be a strategic advantage. We began fiscal 1999 in the midst of difficult conditions. U.S. and international markets and economic conditions were affected by decelerating Asian demand, and the protein markets were depressed due to an abnormally high supply of protein. In spite of that, at this same time last year we said that we anticipated earnings growth in fiscal 1999 with results improving as the year progressed. The year developed much in accordance with our expectations, with our performance improving during the fiscal year.''

Dean Foods acquires Steinfeld's

July 2—Howard M. Dean, Chairman and Chief Executive Officer of Dean Foods Company, announced that Dean Foods has acquired the assets of Steinfeld's Products Company, a pickle processor located in Portland, Oregon. Steinfeld's has annual sales of approximately $36 million and sells pickles and other condiments to the retail, foodservice and export markets.

Opta buys Stabilizied Products

July 2—Opta Food Ingredients, Inc. announced it has completed the purchase of Stabilized Products, Inc. (SPI), a privately held manufacturer of specialized stabilizing ingredients for the dairy product industry. The acquisition was for an undisclosed amount of cash. SPI, which was founded in 1971 and is based in High Ridge, Missouri, a suburb of St. Louis, is to continue operations as an autonomous division of Opta Food Ingredients. SPI formulates and distributes dry and liquid food ingredients known as stabilizers, which enhance the texture, appearance and consistency of dairy products such as yogurt, ice cream, sour cream and cheese. Initial incremental annual sales from the acquisition are expected to be approximately $3 million. As part of its previously announced overall strategic plan, Opta continues to aggressively pursue other acquisition opportunities.

Thursday, July 1, 1999

Starbucks earnings outlook revised

July 1—Starbucks Corporation announced it is revising earnings expectations for fiscal 1999 to $0.54 per share from current analysts' consensus estimate of $0.60 per share. The revision is said to reflect that despite strong Retail performance and the chance of higher year end store count than previously announced, some of the Company's other businesses have not grown as previously anticipated. In addition, the Company has incurred significant additional costs related to its commitment to its Internet strategy. Hmm, maybe people are just getting tired to paying $3.00 for a cup of joe.

Gatorade holds exercise nutrition conference

July 1—Exercise science experts at the Gatorade Sports Science Institute Conference on "The Science and Practice of Sports Nutrition" recently tackled a variety of sports nutrition controversies to ensure that the myths are separated from the facts. Protein powder, chicken breast and raw eggs in a blender add up to more muscle mass and better performance? Right? Wrong. Research shows that carbohydrates are the preferred fuel source to help with both strength and endurance. In fact, below are four things that you may not know about carbohydrates: 1. 80-95% of the fuel used during intense exercise, training and competition, comes from carbohydrates. 2. Without carbohydrates the body breaks down muscle, leading to loss of muscle mass, strength, and power. 3. Inadequate carbohydrates during exercise means athletes must slow down to less than 60% VO2max (working intensity), which limits competitive performance. 4. Carbohydrates are the primary fuel for the brain and nervous system they get the credit for split-second decisions, alertness, and improved reaction time.

Earthgrains acquires Patrick Raulet, S.A.

July 1—The Earthgrains Company announced that it has acquired refrigerated-dough manufacturer Patrick Raulet, S.A., of Dole, France. The purchase of Raulet, which had sales of approximately $40 million last year (226 million French francs), makes Earthgrains' European Refrigerated Dough Products business the largest refrigerated-dough supplier in France. Raulet, which was founded in 1986, operates a modern 158,000-square-foot plant in Dole and markets rolled-dough products throughout France under the Raulet brand and via retailer store brands. Rolled- dough products are used to prepare foods such as quiches, tarts, and pies. The combined operations will position Earthgrains to better serve retail grocery customers in France and throughout Western Europe with branded and store-label refrigerated-dough products. More information about Earthgrains may be found on the company's corporate Internet web site at http://www.earthgrains.com.