Wednesday, June 30, 1999

NZMP Key Ingredients expands operations

June 30—NZMP Key Ingredients has relocated its operations from Harrisburg, Penn. to a new 45,000 sq. ft. facility with expanded production capacity to meet the rising demand from food processors for cheese-based flavor ingredients. "The ability of our cheese ingredients to deliver unique flavor solutions to the industry necessitated the need to expand and modernize our production facilities," said Steve King, VP, Manufactured Ingredients.

Performance Food Group acquires meat processor

June 30—Performance Food Group announced that it has acquired certain assets of State Hotel Supply Company, Inc., a privately-owned meat processor based in Newark, New Jersey. Robert C. Sledd, Chairman and Chief Executive Officer of Performance Food Group, remarked, "The acquisition of State Hotel expands the operating base we initially established in this geographic area through the purchase of the stock of AFI FoodService Distributors, Inc. in 1997.'' Sledd indicated that State Hotel is expected to add approximately $25 million in net sales annually. Performance Food Group reported net sales of $1.6 billion in 1998. Performance Food Group markets and distributes more than 25,000 national and private label food and food-related products to approximately 20,000 restaurants, hotels, cafeterias, schools, healthcare facilities and other institutions.

JT acquires food products business of Asahi Chemical

June 30—Japan Tobacco Inc. concluded an agreement with Asahi Chemical Industry Co., Ltd. to acquire the latter's food products business. The agreement includes the transfer of all tangible assets, business rights, and other assets of the food products business of Asahi Chemical, including its frozen food, seasonings, bread-making materials, and other operations. JT is engaged in a strategic initiative to develop into a diversified, global growth company with core operations in tobacco. Significant operations in pharmaceuticals and foods constitute two strategic elements of JT's business. JT is focused on enhancing corporate value through selective investment in, and development of, strategic businesses. In its food business, aggressive investment has already led to the successful establishment, development, and growth of operations in beverages and in processed foods.

General Mills reports record earnings

June 30—General Mills reported record financial results for its fourth quarter and full 1999 fiscal year. Earnings for the fourth quarter ended May 30, 1999, totaled 67 cents per diluted share, up 18% from 57 cents a year earlier. Annual earnings before unusual items totaled $3.60 per diluted share, up 12% from $3.22 earned in fiscal 1998. Big G cereals achieved record annual volume and a record 31.2 percent dollar market share. Yoplait and Colombo yogurt posted a third consecutive year of double-digit unit volume growth, and captured the No. 1 market position based on units sold. Sales for the fourth quarter of 1999 totaled $1.60 billion, 3 percent above last year's fourth-quarter sales despite one less week. The Farmhouse Foods side dish business and Lloyd's Barbeque Company, which were acquired during the third quarter of 1999, together contributed approximately 2 percentage points of the final quarter's sales increase.

Tuesday, June 29, 1999

Opta reacquires EverFresh rights

June 29—Opta Food Ingredients, Inc. announced it has reacquired all intellectual property, manufacturing, sales and marketing rights to EverFresh®, a product invented by Opta to replace dangerous sodium bi-sulfite chemicals used by the shrimp and seafood industry worldwide to preserve natural coloration following harvesting and prevent blackspot. Everfresh, Opta's first commercially marketed product, was licensed in 1992 to Pfizer Food Science Group, which subsequently was purchased by Cultor, Inc. As part of the original licensing agreement, rights to EverFresh reverted to Opta at no cost when Cultor recently spun off its seafood products group as part of its acquisition by Danisco A/S of Denmark. According to Lewis C. Paine, Opta's chairman and chief executive officer, Pfizer and Cultor invested heavily in seeking the necessary regulatory approvals for EverFresh in major aquaculture markets, including Asia and the Gulf of Mexico. Several of these approvals were obtained recently, while others are active and pending. EverFresh, which inhibits an enzyme that causes discoloration of crustaceans after harvesting, has been marketed domestically since 1991 following U.S. Food and Drug Administration confirmation as a ``generally recognized as safe'' (GRAS) processing aid.

Interstate Bakeries announces financial results

June 29—Interstate Bakeries Corp., the nation's largest baker and distributor of fresh branded bread and cake, closed fiscal year 1999 with higher net sales, but slightly lower earnings per share for the fourth quarter, the twelve weeks ended May 29, 1999. Net sales rose 5.3% for the quarter in comparison to the prior year, primarily due to recently acquired baking operations. Excluding acquisitions and disposed operations, net sales rose 2.0% for the quarter. Earnings per share for the fourth quarter were $0.42 compared to $0.46 in the prior year.

Dean Foods reports results

June 29—Dean Foods Company announced that its fiscal fourth quarter income from continuing operations before charges associated with plant closures was $27.1 million, or $.68 per diluted share, compared to $24.6 million, or $.60 per diluted share, in the same period of the prior year. According to Howard Dean, CEO, the results showed significant improvement over the previous fiscal year in each business segments. The dairy segment results reflected earnings increases in fluid, ice cream and extended shelf life operations. The Pickles segment, before $800 thousand of plant closure expense, increased 20% over the prior year due to earnings from a late fiscal 1998 acquisition. The Specialty segment continued its strong fiscal year operating performance in the fourth quarter as earnings increased 20% over the prior year. The aseptic foods and powdered products operations have led the way through volume and earnings increases due to acquisitions and new business.

FDA sets up apple cider safety workshop

June 29—The Food and Drug Administration (FDA) has announced a workshop on food safety controls for the apple cider industry. The workshop will clarify issues related to the implementation of the agency's regulations requiring a warning statement for certain juice products. The workshop will be held on Thursday, July 15, 1999, from 9 a.m. to 4 p.m., and Friday, July 16, 1999, from 9 a.m. to noon. The workshop will be held at the Department of Health and Human Services, Hubert Humphrey Bldg., conference room 705-A, 200 Independence Ave. SW., Washington, DC 20201. Submit registration to Darrell J. Schwalm, Center for Food Safety and Applied Nutrition (HFS-625), Food and Drug Administration, 200 C. St. SW., Washington, DC 20204, 202-205-4040, FAX 202-205-4121. Additional information regarding the workshop will be posted on FDA's web site www.cfsan.fda.gov.

Monday, June 28, 1999

Shannon to step down At Ecolab

June 28—Chairman of the Board Michael E. Shannon announces that he will retire at the end of this year. He has held that post as well as that of Chief Financial and Administrative Officer with the world leader in cleaning and sanitizing products and services for the hospitality, healthcare, food and beverage, and light industrial markets since December, 1995. Ecolab Chief Executive Officer Al Schuman also announces that L. White Matthews III will join Ecolab on July 1 as Executive Vice President and Chief Financial Officer. Shannon will continue to serve as Chairman and Chief Administrative Officer through the transition period of July through December.

Sun Orchard recalls non-pasteurized orange juice

June 28--Based on limited findings, Sun Orchard Inc. is voluntarily recalling non-pasteurized orange juice supplied by the company that may have been the source of illness in a salmonella outbreak that occurred in mid-June in Washington State and Oregon. None of the cases appear to be long-term, nor required hospitalization. Sun Orchard is a full service manufacturer and distributor of freshly squeezed single strength citrus products. Founded in 1984, Sun Orchard is headquartered in Tempe, Arizona with primary manufacturing facilities in Tempe, Strathmore, California, and Haines City, Florida.

New findings indicate alcohol does not protect health

June 28—A new study published this week in the British Medical Journal (Vol. 318:1725-1728) indicates that, contrary to previous studies on the health benefits of moderate alcohol consumption, alcohol has no beneficial effects on health. The study was conducted with Scottish men who consumed more than 35 units of alcohol a week. The researchers found these men were twice as likely to die from stroke than were nondrinkers and people who consumed fewer than 35 units of alcohol per week.

Friday, June 25, 1999

Campbell to reorganize; takes special charge in fourth quarter

June 25—Campbell Soup Company has announced a reorganization of its global business structure, creating a new division for its North American soup and sauce businesses to strengthen its focus on growth opportunities in the company's core market. Campbell also announced that due primarily to continued inventory reductions by retailers, earnings for the fourth quarter would be approximately 8 to 10 cents per share below current market expectations, excluding a special charge. Campbell also said it intends to take a special charge in the fourth quarter related to cost savings initiatives. The company said its outlook for fiscal 2000, which begins in August, is unchanged. Campbell named F. Martin Thrasher, Senior Vice President and President -- Europe/Canada as President of the new Campbell North America Soup and Sauce Division, which combines Campbell's Canadian business with the company's U.S. soup and sauce operations. Canada is Campbell's largest soup business outside of the U.S. The company also announced that its beverage unit will now report directly to President and Chief Executive Officer Dale F. Morrison.

Varian reports on analytical testing in Belgian food crisis

June 25—Varian, Inc., a leading producer of scientific instruments and vacuum technologies, reported today that its analytical products are helping European laboratories test for the toxins responsible for the recent food scare originating in Belgium. The crisis focused on Belgian meat and dairy products distributed throughout Europe, which were contaminated by two toxic compounds: polychlorinated biphenyls (PCBs) and dioxins. In early June, the Belgian government called on businesses to remove Belgian meat and dairy products from store shelves for fear they were contaminated with PCBs and dioxin. This led most nations, including the United States, to suspend imports of Belgian beef, poultry, pork, eggs, milk, and byproducts. The tainted food products apparently resulted from over 400 Belgian farms using animal feed laced with PCBs and dioxin, causing the biggest European food scare since the 1996 mad cow crisis. Immediately following the initial crisis, Belgium's Ministry of Agriculture and private European food and toxicology laboratories faced significantly increased demand for testing food samples for contamination. Fast and accurate testing was critical so safe products could be returned to store shelves. The Belgian food and farm industries estimate losses from this crisis at over $850 million.

Nabisco to close Houston bakery

June 25—Nabisco, Inc. announced today that it intends to cease operations at its Houston bakery by November 20, 1999. The action is being taken to reduce system-wide excess manufacturing capacity in the U.S. The bakery, which is located at 6803 Almeda Road, currently manufactures Ritz, Air Crisps Cheese Nips, Nabisco Graham crackers, and Chewy Chips Ahoy! chocolate chip cookies. The closure will affect approximately 425 salaried and hourly employees. Company officials said the decision to close the facility follows extensive studies of the entire domestic Nabisco bakery network. Those studies show that Nabisco's existing baking capacity exceeds its needs, which is adding costs to the company's overall operations.

Thursday, June 24, 1999

Vacu-dry sells ingredient business

June 24—Vacu-dry Company announced today that it has entered into a definitive agreement to sell the bulk of its apple-based industrial ingredients product line to Tree Top, Inc., of Selah, Washington. The agreement, which excludes inventory and real estate, calls for a purchase price of $12 million in cash and is subject to approval by Vacu-dry's shareholders. The sale is an important element in Vacu-dry's strategic plan to transform itself from an industrial ingredients supplier to a major participant in the retail natural foods industry. It builds on last year's acquisition of Made In Nature, a leading brand of organic fruit and vegetable products. The transaction will result in the closing of Vacu-dry's apple processing plant located on Gravenstein Highway North in Sonoma County, Sebastopol, California.

Coca-Cola to resume production in Belgium and France

June 24—Coca-Cola confirmed today that the Minister of Health in Belgium has approved the reintroduction of all Belgian produced Coca-Cola products into the Belgian marketplace. As a result of the Belgian action, the Company also expects to reintroduce products from its Belgian plants into Luxembourg and the Netherlands in the near future. In addition, the Ministry of Economics in France has approved the resumption of the sale in France of canned products produced in Dunkirk. The Company anticipates that approximately 14 million unit cases of product were impacted by the product recall, representing substantially less than 1% of the Company's annual volume.

EcoScience provides tomatoes for prepackaged salad

June 24—EcoScience Corporation, the largest U.S. producer of premium, greenhouse grown tomatoes, announced today that it has begun supplying tomatoes for an innovative line of freshly prepared, ready-to-eat salads with long shelf lives. The salads are being introduced this week at selected supermarket chains in New England. EcoScience's Agro Power Development (APD) subsidiary is supplying its Village Farms® tomatoes under an agreement with SunBlush Technologies Corp. of Vancouver, B.C. SunBlush, recently voted one of Canada's top five fastest growing companies, developed an advanced packaging technology for the breakthrough product - the first prepackaged salad to contain fresh tomatoes. The new product, branded "Salad for You," stays fresh for up to 12-14 days using SunBlush's Modified Atmosphere Packaging (MAP). Tomatoes naturally emit ethylene gas that over time yellows lettuce. MAP circumvents that process with its packaging technique, keeping the salad ingredients crisp for extended periods of time.

Bally expands nutritional supplements line

June 24—Bally Total Fitness announced its successful line of proprietary nutritional supplements sold under its Bally Nutritionals brand will expand immediately from 13 to 44 products. The roll out of the expanded product line will begin immediately and should be available in all Bally Total fitness facilities throughout the United States by the end of July. The Company is also reviewing several opportunities to distribute this or parallel product lines through retail distributors outside its fitness centers. Included among the new items in the expanded Bally Nutritionals line are seven top-selling natural herbal supplements --Ginseng, Gingko Biloba, Echinacea/Goldenseal, Garlic, Kava Kava, St. John's Wort and Saw Palmetto. In addition to being distributed in Bally Total Fitness centers nationwide, the entire, expanded line of Bally Nutritional Supplements will be offered via the Company's website, http://www.BallyFitness.com.

FDA to detain milk products from Belgium

June 24—The Food and Drug Administration announced that it is expanding the import alert issued June 11 on egg- containing products from Belgium to include milk-containing products such as cheese. The import alert recommends detention of products at ports of entry until importers provide laboratory test results showing the shipments are free of detectable levels of polychlorinated biphenyls (PCBs) and/or dioxins. As with the June 11 import alert, today's expansion is a precautionary step. The first import alert was issued shortly after FDA learned that fat used in animal feed manufactured and used in Europe was contaminated with PCBs and/or dioxins in a one-time incident in January 1999. Food producing animals may have consumed the feed resulting in potentially contaminated food products. Once again, the agency is taking this action as a precautionary measure. FDA continues to believe that exposure of U.S. consumers to harmful levels of PCBs and dioxins is minimal because this is a one-time incident. Also, in most cases, eggs and milk are combined with other ingredients to produce final products. FDA is continuing its investigation and is sampling and analyzing products that have been imported since the incident in question.

Trans fatty acids linked with elevated cholesterol

June 24—High intake of trans fatty acids may be linked with elevated cholesterol, according to a new study published this week in the New England Journal of Medicine. The researchers’ studies suggest that fatty acids containing at least one trans double bond have a detrimental effect on serum lipoprotein cholesterol levels compared with unsaturated fatty acids containing double bonds in the cis configuration. In their commentary, Ascherio and his colleagues point out that the average U.S. consumer gets just 25% - 37% of their daily trans fatty acid intake from butter or margarine, with the rest coming from prepared products such as baked goods and fried fast foods.

Wednesday, June 23, 1999

NCA holds third annual Candy Expo

June 23—Yes! There are some nice perks to this job! The National Confectioners Association is holding its third annual Candy Expo on Navy Pier in Chicago, Ill. this week. Since it is just three blocks away from the IFT office, I begged to be let off my chains to go attend. And I’m not the only person in the U.S. who loves candy. U.S. per capita consumption of candy rose 1%. That was 24.9 lb per person in 1997, the last year such information is available. Including gum, per capita consumption hit a record 26.7 pounds. That’s about $22.4 billion in retail sales.

Looking for product trends at the show (yeah, you know what that means, eating about 5 lbs of candy), some of more popular products are strong breath mints, chewy candies, and candy with toys. I saw a great CatDog Chew combination toy-and-gum dispenser based on a Nickelodeon cartoon coming out this fall from Amurol Confections. Andalan Products is offering a neat product called Edo, which is an edible moldable clay-like substance. So kids can play with their food before they eat it. Tiger Electronics Inc. had a FM radio you can listen to while biting down on a lollipop. The retail price seemed kind of expensive; I mean what kid is going to have more than $5 for candy. Chocolate products are becoming more indulgent rather than less so. I did see a few sugar-free chocolate products, but not many. It seems as if most chocolate manufacturers are going for the tastier, richer products. I did see a few nutraceutical-type products, but not many. There was a caffeine-enriched gum called StayAlert from Amurol and a series of candies with added herbs such as St. John’s Wort.

The three-day event will end Thursday, with more than 370 candy makers having exhibited their wares to thousands of retail candy buyers and wholesalers. The show expects to draw more than 13,000 people, which isn't open to the public. Too bad. The event is expected to move from Navy Pier to Chicago’s McCormick Place exhibition center next year. For some more information on candy sales see the National Confectioners' Association website at www.candyusa.org.

Sara Lee acquires Wechsler Coffee

June 23—Sara Lee Corporation announced that it has acquired Wechsler Coffee Corporation. With annual revenues of more than $110 million, privately held Wechsler Coffee markets regular and gourmet coffee, tea, cappuccino, and other beverages to foodservice companies, convenience stores and other customers throughout the United States. Founded in 1903, Wechsler Coffee employs approximately 225 people, primarily at its coffee roasting facility in Moonachie, N.J. Wechsler's products are marketed under a variety of labels including its own brand name, which is widely recognized in the Northeast and Mid-Atlantic region.

Tuesday, June 22, 1999

Japan Tobacco and Zeneca form rice biotech venture

June 22—Japan Tobacco Inc. and Zeneca Agrochemicals announced that they have signed an agreement to form a 50:50 joint venture in rice biotechnology which will bring together the expertise and technological strengths of both parties to research and then develop new rice varieties. The venture is scheduled to be established later this year with 100 million yen capital. The research program, which will be based in Shizuoka, Japan, will have close links with Zeneca's agricultural research centres at Jealott's Hill (UK), Leiden (NL) and John Innes Centre at Norwich (UK). Research will focus on improved quality and yield as well as on input traits such as disease and insect resistance. A separate joint venture will be set up to commercialise inventions from the research program.

Brio Industries Inc. announces launch of Country Harvest Natural Juices

June 22—Brio Industries announces the launch of its new line of Country Harvest® natural juices. The products will initially be offered Canada-wide and will be introduced into the United States this Fall. Brio Chairman and CEO Ralph D. McRae said, "Country Harvest® fulfills our promise of delivering the highest quality products at the lowest possible price to the consumer. Our product development team has produced a winning line-up of flavors and our new packaging is nothing short of outstanding. There is nothing comparable to the product in the market." Country Harvest® will initially be available in 10oz (300ml) and 16oz (473ml) sizes. The flavor line-up will include Apple, Orange, Cranberry, Grapefruit and Pink Grapefruit. Further line extensions are contemplated.

Sheraton dedicates new healthy eating program

June 22—For the busy business traveler, healthy eating while on the road can be a challenge, but Sheraton Hotels & Resorts has the solution. In July, the international hotel chain will launch a major initiative to help executives stay fit with the introduction of Sheraton Light, a new food and beverage program that offers meals with reduced fat and calories. The program, which will make its debut in North America, was unveiled today in New York City. "Today's traveling executive is far more conscious of health and fitness than his or her counterpart of 10 years ago," says Jennifer Fox, vice president of Starwood Hotels & Resorts Worldwide, Inc. - Hotel Group and Sheraton brand manager. Fatty, high calorie menu items are being replaced by fresh vegetables and fruits, and lower fat, higher protein foods."

FDA sends authority for approval of food packaging to CFSAN

June 22—The Food and Drug Administration (FDA) is amending the general redelegation of authority from the Commissioner of Food and Drugs to other officers of FDA. The amendment delegates to the Director and Deputy Director, Center for Food Safety and Applied Nutrition (CFSAN); the Director, Office of Regulations and Policy, CFSAN; and the Director, Office of Premarket Approval, CFSAN authority to implement the Federal Food, Drug, and Cosmetic Act. The new section 409(h) of the act requires manufacturers or suppliers of food-contact substances to notify the Secretary of Health and Human Services (and by delegation, the Commissioner of Food and Drugs), at least 120 days prior to the introduction or delivery for introduction into interstate commerce, of the identification and use of food-contact substances, and to provide information showing that the substance is safe according to the standards of section 409(c)(3)(A) of the act. For more information, see the Federal Register of June 22, 1999 (Volume 64, Number 119).

Dakota Growers debuts new web site

June 22—Pasta lovers now have a place to go for pasta recipes and cooking tips while retailers, foodservice companies, and food processors have a resource to learn about the only grower-owned pasta company. The resource is www.dakotagrowers.com. The site provides company news, product information, agronomy developments, and financial data.

 

Monday, June 21, 1999

Peapod opens another fulfillment center

June 21—Peapod, Inc. , a leading Internet grocer, today announced the opening of a dedicated fulfillment center in the San Francisco Bay area. The Company currently has warehouse operations on the East Coast in Boston and Long Island, N.Y., and in the Midwest in Chicago. With the opening of the San Francisco facility, Peapod has the only market-tested, centralized fulfillment model that is operational in three key geographical regions. This centralized fulfillment model is the cornerstone of Peapod's strategy to capitalize on the high volume of activity generated by the dynamic Internet market. I think it is interesting to keep up with what is happening with companies like this because of the way new distribution methods may change food product development.

Friday, June 18, 1999

Some Coke products back on European shelves

June 18—French President Jacques Chirac will propose an international food safety council to monitor food safety. This, coming on the heels of the Coca-Cola ban in many European countries, emphasizes the concern raised by the suggestion of foodborne illness on the Continent. Coke was permitted to reshelve certain brands Thursday, but not Coke, Fanta, and Sprite. A number of additional countries have banned Coke products produced in Belgium. Coke has announced that there was no toxic contamination of the beverages, and pointed to substandard carbonating gas used in the Antwerp, Belgium plant, and noted that a fungicide used on crates had adsorbed on can bottoms, causing unsavory aromas.

Ocean Spray president plans exit

June 18—Ocean Spray Cranberries President and CEO Thomas E. Bullock plans to step down next year, according to the firm. Ocean Spray reported sales of $1.48 billion for the fiscal year ending 8/31/98, a 3% increase over the previous year, and profits improved to $280 million, from $273 million for the previous fiscal year. Ocean Spray has reduced its work force by about 20% over the past few years, and controls about 70% of the total crop.

Folexco gets new chief operating officer

June 18—Michael P. Petteruti has been appointed Vice President and Chief Operating Officer of Felexco, now the largest botanicals extracts manufacturer in North America.

J.M. Smucker has a good year

June 18—Sales increases in all of its business area keeps J.M. Smucker out of a financial jam. Earnings for the year are 4% above last year's, with increases in consumer business, industrial ingredients, international marketing, and foodservice. International markets increased in the Australasia market with the acquisition of the Allowrie brand of fruit spreads, and gains were above 5% in Mexico. New product development including Smucker's Snackers, a shelf-stable form of peanut butter and jelly, and Adam's natural peanut butter were seen as future earners. Sales were 6.5% over last fiscal year's results, and permitted retirement of current short-term borrowings.

Commissioner Henney notes Deputy Commissioner Michael Friedman's departure

June 18—Dr. Michael Friedman got a rousing send-off from FDA's Commissioner Jane Henney, lauding him for his work as Acting Commissioner. Henney noted that Friedman had worked tirelessly with Congress on the FDA Modernization Act of 1997, and other issues.

Thursday, June 17, 1999

Kellogg may close part of Battle Creek plant

June 17—Kellogg Company announced it is considering the closure of the South Operations portion of its Battle Creek, Michigan, cereal plant. "An integral part of our strategy is continuing to reduce costs and improve efficiency to enable greater reinvestment for profitable growth," said Carlos M. Gutierrez, president and chief executive officer of Kellogg Company. "We have thoroughly examined all aspects of our business. In that examination, we have determined that we have an opportunity to further streamline our operations and that there would be a significant future cost to operate and maintain our South Operations in Battle Creek. Streamlining our operations and avoiding future costs would help keep our North American cereal business cost-competitive going into the 21st century." Under the proposal being considered, up to 700 of the current 1,100 hourly and salaried positions at the plant would be eliminated as early as the first quarter of the year 2000. Some production capacity from the South Operations would be relocated to other Kellogg North America cereal plants. The company will make a final decision after discussions with BCTGM Local 3-G, which represents the plant's hourly workers.

National health organizations produce common dietary guidelines

June 17—A group of six national health organizations have joined forces to produce a common set of dietary guidelines to prevent disease. The American Heart Association's Nutrition Committee, The American Cancer Society, the American Dietetic Association, the American Academy of Pediatrics, the National Institutes of Health, and the American Society for Clinical Nutrition participated in developing the guidelines. These organizations, each of which had previously issued its own dietary guidelines, reviewed the scientific basis for their recommendations and developed one unified set of guidelines that they believe will reduce the risk of four common diseases. The report is to be published in the July 27th issue of Circulation: Journal of the American Heart Association.

Council on Food Safety to hold public meeting

June 17—The President's Council on Food Safety was established in August 1998 under Executive Order 13100 to strengthen and focus our efforts to coordinate food safety policy and resources. The Council was directed to develop a comprehensive national food safety strategic plan. The United States Department of Agriculture (USDA), the Department of Health and Human Services (HHS), and the Environmental Protection Agency (EPA) are announcing a public meeting to discuss development of the plan. The purpose of the strategic plan is to reduce the annual incidence of acute and chronic foodborne and waterborne illness by further enhancing the safety of the nation's food supply. USDA, the Food and Drug Administration (FDA), and EPA have established public dockets to receive comments about the President's Council on Food Safety strategic planning process and the plan. The meeting will be held on July 15, 1999, from 8:30 a.m. to 5 p.m. Comments should be submitted by September 1, 1999. For more information, see the Federal Register of June 17, 1999 (Volume 64, Number 116).

Tropicana names Cornell President, Tropicana Europe and Canada

June 17—Tropicana Products, Inc. has announced that Brian C. Cornell has been appointed President, Tropicana Europe and Canada. In his new position, Cornell is responsible for all of Tropicana's businesses in Europe and Canada. Tropicana is the leading marketer of chilled juice in the U.K., Belgium, France and Canada and operates production facilities in France, Belgium, Spain and the U.K.

Wednesday, June 16, 1999

McCormick reports strong second quarter

June 16—McCormick & Company, Inc. reported strong sales and earnings per share for the second quarter of 1999 on a comparable basis with 1998. Earnings per share before the effect of previously announced special charges were 28 cents for the quarter versus 22 cents for the prior year, an increase of 27%. Net sales for the quarter were $468 million, up 8% over the second quarter of 1998. Second quarter sales rose 8% for both the Company's worldwide consumer food business and the industrial and food service businesses. Before special charges, operating income for the global food businesses increased more than 15%. Sales for the Company's packaging business rose 4%, and operating income increased at a similar rate. For the first half, net sales were $910 million, an increase of 7% over 1998.

Dannon introduces new light yogurt

June 16—The Dannon Co., a leader in the light yogurt segment, will unveil a new Dannon Light this month with new packaging and improved taste. The new packaging features a soft blue and white background and a pair of active figure behind the logo. This new design changes give the yogurt cup a new look that tested well with consumers.

Chicken nuggets recalled

June 16—Serenade Foods, Inc., a Milford, Ind., firm is voluntarily recalling approximately 480,000 pounds of chicken nuggets that may contain undeclared whey, the U.S. Department of Agriculture's Food Safety and Inspection Service announced yesterday. The product being recalled is Maple Leaf Farms brand of "Crunchy Chicken Nuggets," in 10-ounce packages. The packages bear "Est. #P-2375" in the USDA mark of inspection on the front of the package and an identifying code number of from 9001 to 9124 embossed on the end panel above the opening strip. All "Crunchy Chicken Nuggets" produced between January 1, 1999 and May 4, 1999, are being recalled. The "Crunchy Chicken Nuggets" were distributed nationwide. For more information, see http://www.fsis.usda.gov/OA/news/99-rc-31.htm.

Tuesday, June 15, 1999

FDA detains eggs and animal feeds

June 15—The Food and Drug Administration announced that all imports of eggs, products containing eggs, and game meats from Belgium, France, and the Netherlands, and all animal products including animal derived medicated and non-medicated feeds, feed ingredients, and pet foods from all European countries will be detained at U.S ports of entry. These products are being detained because of the possibility that they may be contaminated with polychlorinated byphenyls (PCB's) and dioxins. Dioxins and PCB's are groups of compounds that may be potential carcinogens at low levels of exposure over extended periods of time and may have other types of toxicological effects. FDA is detaining these products as a precautionary step. FDA is taking this action in response to recent reports that a fat product from a rendering company in Europe was contaminated with PCB's and dioxins in January 1999. This fat was subsequently sold to European animal feed manufacturers. Most of these feed manufacturers are in Belgium although some of the contaminated feed has reportedly been shipped to feed manufacturers in France and the Netherlands. Food producing animals may have consumed the feed resulting in potentially contaminated food products, for example, eggs. Since some animals that ate the contaminated feed may have been rendered and the renderings added to feed shipped to other European countries, FDA is also detaining all animal-derived feed and feed ingredients as well as pet food from all European countries. The United States Department of Agriculture is holding poultry and pork from all European Community member states because of the possibility that the livestock may have been fed the contaminated feed. USDA is initiating investigations and analyses of these products. FDA will continue to provide updates to this information. For updated information, consult the FDA web site at www.cfsan.fda.gov, under the heading "What's New."

Coke products banned in Belgium

June 15—On Monday, Belgian Health Minister Luc Van den Bossche banned sales of Coke and Coca Cola brands such as Fanta, Sprite, Aquarius, Bonaqua and Minute Maid fruit juices. "We are hard at work trying to find the cause of the problems,'' said Maureen O'Sullivan, a spokeswoman for Coca Cola in Belgium. "We are also implementing a total recall of our products.'' The ban was imposed after nearly 50 people, most of them young people, were hospitalized Monday suffering from nausea after drinking Coke products. Eight remained in the hospital today. Last Thursday, 31 school children fell ill after drinking Coke, forcing the company to recall 2.5 million bottles.

Monday, June 14, 1999

New products target healthy

June 14—TrimFast Group, Inc., is rolling out its new Nutritional Weight Loss Bar, in three flavors (Chocolate Chocolate Chip, Chocolate Peanut Butter, and Passion Fruit) aimed at the general adult public. The bar reportedly includes ingredients that curb appetite and increase metabolism levels. The firm is projecting sales of $2 million during its first year and is offering sales via the Internet at NutritionCafe.com. Also on June 14, Saratoga Beverage Group announced the launch of its Saratoga Juice line of products, including a six-flavor line of smoothies and eight flavors of fortified juice products. The names of the fortified juice products clearly denote their purpose—to meet the nutraceutical market. Fruit for Thought includes Spirulina Spin, Berry Drain Boost, Mellow Mango, Vita-Buzz, Power Pick-up, Chromium High, Ginseng Zing, and Anti-up. The products are packaged in PET bottles for a claimed nine extra days of shelf life, in addition to being transparent so that the fruit colors show through.

Cereal hype gets competitive

June 14—Kellogg's Cereal City USA opened last Friday with a 16-ft replica of the first Kellogg'sR Froot LoopsR cereal box, at Battle Creek, Michigan's World's Longest Breakfast Table. The summer celebration—or maybe it's sell-a-bration—features the impact of the '60s on the food industry, especially the cereal segment. At the same time, General Mills launched a new program to promote its new NesQuik cereal, a combination of tiny corn and rice puffs with NesQuik powder that forms chocolate milk when milk is poured on the cereal. Also, General Mills and Gateway Computers have joined forces on a new promotion called Discovery Days, in which kids can win cereal and computers. Samples of the cereal and bookmarks announcing the event will be distributed, along with entry forms, at Gateway Country stores in their Kids Zone areas in seven major U.S. cities (Baltimore, Chicago, Dallas, Houston, Denver, St. Louis and Minneapolis.) Cereal will be sampled at public libraries, Head Start centers, and summer programs across the country. NesQuik is licensed by General Mills from Nestlé, USA.

FDA acts to halt eggs and animal-derived ingredients at ports of entry

June 14—The Food and Drug Administration announced today that all imports of eggs, products containing eggs, and FDA-regulated game meats from Belgium, France, and the Netherlands and all animal products including animal-derived medicated and nonmedicated feeds, feed ingredients, and pet foods from all European countries will be detained at U.S. ports of entry because of the possibility that they may be contaminated with polychlorinated byphenyls (PCBs) and dioxins. FDA is taking this action in response to recent reports that a fat product from a rendering company in Europe was contaminated with PCBs and dioxins in January 1999. This fat was subsequently sold to European animal feed manufacturers. Food producing animals may have consumed the feed.. FDA is also detaining all animal-derived feed and feed ingredients as well as pet food from all European countries. The agency is gathering information on food products that may be affected. Because this was a one-time incident, with eggs being only one component of many egg-containing products, FDA believes that the exposure of U.S. consumers to harmful levels of PCBs and dioxins is minimal. The U.S. Dept. of Agriculture is holding poultry and pork from all European Community member states because of the possibility that the livestock may have been fed the contaminated feed. USDA is initiating investigations and analyses of these products.

Friday, June 11, 1999

Kellogg promotes new VP

June 11—Kellogg Company announced today the promotion of Harold G. Gobble to corporate vice president -- global product development. Gobble, a 28-year veteran of Kellogg's science and technology operations, had been staff vice president -- global product development since May 1998. Previously, he was director -- convenience foods development, Kellogg USA.

Clearly Canadian touts oxygenated water

June 11—Clearly Canadian Beverage Corporation has received numerous awards following the recent North American introduction of its super-oxygenated beverage, Clearly Canadian O+2(tm). "We worked closely with our creative team, Karacters Design Group, to develop a brand identity, package design and point-of-sale material for Clearly Canadian O+2 that would position this new beverage in the highly competitive bottled water and sports drink categories of the Alternative Beverage market," said Jonathan Cronin, VP Marketing. The product features a bottle shaped like an oxygen tank and a label communicating the product's unique qualities of added oxygen and flavor varieties. Hmmmm, oxygenated water, that’s interesting.

Heineken acquires Cruzcampo

June 11—The Executive Board of Heineken N.V., the leading international brewer, today announced that The Company acquired 88.2% of the shares of Grupo Cruzcampo S.A., a major Spanish brewery group. Agreement on the acquisition has been reached with the spirits and brewing group Diageo. Heineken intends to integrate Cruzcampo and El Aguila, in which Heineken has a majority stake of 72%, into one brewing group. The joint market share of the two companies will be approximately 37%.

Thursday, June 10, 1999

Coke recalls product in Belgium

June 10—According to an AP report, Coca-Cola Co.'s Belgian branch recalled 2.5 million bottles of Coca-Cola after several children fell ill after drinking the beverage at school. On Tuesday, 31 pupils in northern Belgium were hospitalized after drinking from Coca-Cola bottles that came from a batch of 2.5 million bottles produced last week in Antwerp. Analysis by the company found that some of the bottles had a quality defect, which can lead to symptoms such as headaches, nausea and stomach cramps.

Foodborne illness peaks in summer—why?

June 10—The Food Safety and Inspection Service (FSIS) looked at the data collected for the first 3 years of the Foodborne Diseases Active Surveillance Network (FoodNet) project to understand why foodborne illnesses increase during the summer months. The FoodNet project was developed to better characterize, understand, and respond to foodborne illnesses in the United States. It is a collaborative project between the Centers for Disease Control and Prevention, the U.S. Department of Agriculture, and the Food and Drug Administration. Review of the 1996 through 1998 FoodNet data showed an increase in laboratory-confirmed infections caused by E. coli O157:H7, Campylobacter, and Salmonella during the summer months (June through August). But why? The answer appears to be two-fold. First, there are the natural causes. These microorganisms grow faster in the warm summer months. Most foodborne bacteria grow fastest at temperatures from 90 to 110° F. Bacteria also need moisture to flourish, and summer weather is often hot and humid. Second, there are the "people" causes for the upswing in summertime foodborne illnesses. Outside activities increase. More people are cooking outside at picnics, barbecues, and on camping trips. The safety controls that a kitchen provides—thermostat-controlled cooking, refrigeration, and washing facilities—are usually not available. For in-depth information, see http://www.fsis.usda.gov/OA/pubs/illpeaks.htm.

Wednesday, June 9, 1999

Tree Top acquires Watermill Foods

June 9—Tree Top, Inc., Selah, Washington, has purchased Watermill Foods, Inc. in Milton-Freewater, Oregon. The purchase, effective May 1, gives Tree Top the capability to provide frozen cherries and prune-plums, as well as an increased capacity for fresh and frozen apple ingredients. This is Tree Top’s second acquisition this year. The first was the February purchase of the former Seneca plant in Prosser, Washington. The purchase gives Tree Top seven plants.

Tuesday, June 8, 1999

Sara Lee extends offer to buy Chock Full O'Nuts shares

June 8—Sara Lee Corp., Chicago, Ill., yesterday extended until June 18 its cash tender offer to purchase all outstanding common shares of Chock Full O'Nuts Corp. for $10.50 a share. To date, 56% of the outstanding shares have been tendered. Sara Lee also extended its offer to purchase Chock Full O'Nuts' outstanding 7% convertible senior subordinated debentures due 2012 for $1.3 million net and all outstanding 8% convertible subordinated debentures due 2006 at $1.3 million per $1,000 principal.

McCormick to announce second-quarter figures for restructuring

June 8—McCormick & Co. plans to post fiscal second-quarter charges for a restructuring program that will consolidate certain manufacturing operations, mainly in Britain, and eliminate 300 employee positions, or about 3.9% of its work force, primarily in Europe, according to today's Wall Street Journal. The restructuring expenses for the quarter ended May 31 are expected to total about $20 million, or 27 cents a share. The Maryland-based flavoring and spice company said it also plans to post a one-time gain of $5 million, or about 7 cents a share, resulting from a change in the way it accounts for certain pension-plan assets. The special items are expected to reduce earnings by about $15 million, or 20 cents a share. McCormick expects to report full second-quarter results on June 16. The restructuring, when completed in 2000, is expected to result in annual savings of $6 million, the company said.

EU takes steps to allay fears about dioxin-contaminated food

June 8—The European Commission will meet with representatives of non-European Union countries today to allay fears over Belgian food contaminated with dioxin, which has led to trade bans on EU farm produce. On June 3, USDA's Food Safety and Inspection Service said that it would hold all imports of EU pork and poultry. Measures endorsed yesterday by the Commission prevent EU member states from blocking Belgian poultry, pork, beef and dairy products if they could be proved dioxin-free. The dioxin contamination has been traced to a Belgian fats and oils processing company which sold material for use in making animal feeds. According to a Reuters news report, Belgium Prime Minister Jean-Luc Dehaene said that only chickens had shown clear signs of contamination and there were no risks regarding pork or beef. Many member states last week introduced trade blocks on all Belgian meat and dairy products, but Monday the Commission said only products which came from farms suspected of using the tainted animal feed should be restricted. Belgium banned butter sales yesterday because it is a high-fat food, making it particularly susceptible to retaining dioxi

Friday, June 4, 1999

SAIB permitted for use in nonalcoholic beverages

June 4—The Food and Drug Administration (FDA) is amending the food additive regulations to provide for the safe use of sucrose acetate isobutyrate (SAIB) as a stabilizer of emulsions of flavoring oils used in nonalcoholic beverages. This action is in response to a petition filed by Eastman Chemical Co. For more information, see the Federal Register of June 4, 1999 (Volume 64, Number 107).

KISS to be in milk ads

June 4—KISS, the rock band made famous by its members' on-stage antics and wild dress, has updated its trademark makeup with chocolate milk mustaches. The new ad featuring Gene Simmons, Paul Stanley, Ace Frehley and Peter Criss debuts in the July issue of Spin. The aim of the new KISS ad is to spread the word to young adults about chocolate milk's role in helping to prevent osteoporosis. What? These guys were old when I was in Junior High?! I’m not going to publish the photo here, but to check out the group go to http://www.businesswire.com and search for KISS.

Seafood safety lab dedicated

June 4—Agriculture Secretary Dan Glickman dedicated a new Center of Excellence and a U.S. Department of Agriculture seafood safety lab at Delaware State University, an 1890 historically African-American land grant university. Delaware State University has an extensive program in aquaculture, and the new center will carry the title of Microbial Safety of Aquaculture Products Center of Excellence. The new lab, which is part of USDA's Agricultural Research Service (ARS), will focus on microbiological food safety issues of aquaculture products, in particular, developing faster, more efficient tests to detect disease-causing viruses and bacteria in clams, mussels, and oysters.

Australian Meat Safety Enhancement Program (MSEP) approved

June 4—The U.S. Department of Agriculture's Food Safety and Inspection Service has made a determination that the Australian Quarantine and Inspection Service's (AQIS) new inspection system for slaughter establishments that export meat to the United States, known as the the Meat Safety Enhancement Program (MSEP), is equivalent to the U.S. inspection system. FSIS reviewed the final MSEP with particular emphasis on two criteria: 1) Does the MSEP meet all USDA requirements for the import of meat and meat products to the United States; and 2) Does the MSEP afford American consumers the same level of public health protection provided by USDA domestic slaughter inspection? FSIS found that the criteria are met by the MSEP and that the AQIS Meat Safety Enhancement Program is equivalent. Under MSEP, AQIS government inspectors will provide oversight of company employee functions, carcass-by-carcass verification, and oversight and verification that plant hazard control systems are resulting in safe and wholesome product.

North Dakota meat company recalls wieners

June 4—Valley Meat Supply, a Valley City, N.D., firm is voluntarily recalling approximately 150 pounds of beef wieners and frankfurters that may be contaminated with Listeria monocytogenes, the U.S. Department of Agriculture’s Food Safety and Inspection Service announced today. The packaged products being recalled vary in weight, but are approximately one pound each. The wieners are packed in 10 count units and the frankfurters are packed in 5 count units, and bear only a price label. Product being recalled was sold between May 22 and June 1. The product was distributed only at the meat company’s retail counter. Consumers with questions about the recalled product can call Rod Haugtvedt, Valley Meat Supply manager, at (701) 845-4705.

Thursday, June 3, 1999

Quality Ingredients acquires former General Spice facility

June 3—Quality Ingredients Corp. announced that is has reached an agreement to acquire a manufacturing facility in Marshfield, Wis. from General Spice Armour Food Ingredients, a division of ConAgra. The 80,000-sq. ft facility will serve as an additional site for the company’s product development laboratories and manufacturing, and will maintain approximately forty-one employees.

NTIS makes 1999 Food Code available

June 3—The Food and Drug Administration is releasing its Food Code 1999 which reflects progress made in monitoring and preventing foodborne diseases. It is an indispensable guide for state and local regulatory agencies that oversee food safety in restaurants, grocery stores, nursing homes, food vending operations, and other institutional and retail settings. The Food Code, available from the National Technical Information Service, presents requirements for safeguarding public health and ensuring that food offered to the consumer is safe, unadulterated, and honestly presented. Over 1 million retail food establishments apply the Food Code provisions to their operations. The Food Code 1999 is available in a printed spiral bound version, in an enhanced version on CD-ROM and diskette, and in the Word Perfect 6.1 files on diskette. The CD makes it effortless to quickly find what you need with bookmarks to the various Food Code and Annex sections and offers easy-to-use searching by food type, code, procedure, or any other topic you need. You may cut and paste from any page and print the pages you need on any Windows-defined printer. The CD also contains two manuals not found in the printed version: a draft of the Hazard Analysis and Critical Control Point's Managing Food Safety and the Plan Review Manual. Food Code 1999 is available from NTIS, 1-800-553-NTIS (6847) or (703) 605-6000 in print, order PB99-115925KOU for $40; on CD-ROM, order PB99-500506KOU for $69; on diskette, order PB99501033KOU for $69. Order online http://www.ntis.gov/fcpc. Order via e-mail: orders@ntis.fedworld.gov. Fax order to: (703) 605-6900.

Wednesday, June 2, 1999

Heinz acquires foodservice units

June 2—H. J. Heinz Co. announced that Heinz Foodservice has expanded its global single-serve business with the acquisitions of Thermo Pac, Inc. of Stone Mountain, Georgia; and Serv-A-Portion of Turnhout, Belgium. Thermo Pac produces single-serve products (including cheese, jams, jellies, peanut butter, fruit toppings, sauces, condiments and seasonings) for restaurants and quick-serve and takeout establishments. Serv-A-Portion is a leader in Europe's single-serve business, specializing in jams and sauces. More than 85 percent of Serv-A-Portion's products are exported to markets across Europe from its factory in Turnhout, where it employs about 110 people.

FSIS reopens comments on irradiation

June 2—The Food Safety and Inspection Service (FSIS) is reopening the comment period for the proposed rulemaking, "Irradiation of Meat and Meat Products," which closed on April 26, 1999, in response to the great interest in this proposal. (64 FR 9089, February 24, 1999). The comment period will be reopened to include comments received from April 27, 1999, until 15 days after the date of publication of this notice. For more information, see the Federal Register of June 2, 1999 (Volume 64, Number 105).

Wolverine Proctor & Schwartz new name for merged divisions

June 2—Two of the leading manufacturers of industrial ovens and food processing equipment—Wolverine of Merrimac, Mass., and Proctor & Schwartz of Horsham, Penn.—have merged to become one operating division of Wolverine Corp. The new division will maintain its former sales and manufacturing facilities.

Tropicana launches vitamin C and calcium OJ in Canada

June 2—After several years of planning, Tropicana Canada has launched Tropicana Calcium and Vitamin C Supplement throughout Canada. The new drink is Canada’s first calcium supplement in an orange juice. Because of Canada’s food regulations, the juice has been introduced as a vitamin supplement, under the drug side of the Canadian Food and Drug Act.

Tuesday, June 1, 1999

Dean Pickle Co introduces new packaging

June 1—Peter Piper's(R) Pickles, a pickle brand from Dean Pickle and Specialty Products Company, a division of Dean Foods Company is now being introduced into a Florida lead market and into select accounts nationally with an innovative new packaging feature—the Picklevator(TM)—a plastic serving basket inside the jar that enables consumers to lift and remove the pickles easily. For a photo check out http://www.newscom.com/cgi-bin/prnh/19990601/CGTU009.

International Home Foods acquires Tyson seafood brands

June 1—International Home Foods, Inc. announced that it has agreed to acquire the Analog Division of the Tyson Seafood Group, a division of Tyson Foods, Inc. The Analog Division comprises the manufacturing and sales operations of surimi seafood products under the Louis Kemp® and other name brands, and includes three value-added manufacturing facilities located in the United States and Canada. The Analog Division does not include the fishing vessels and fish processing facilities also operated by Tyson Seafood Group. The acquired operations will be integrated into and managed by IHF's Bumble Bee Seafoods subsidiary. International Home Foods, Inc. is a nationally prominent manufacturer, distributor and marketer of food products.

Ocean Spray strengthens premium juice line

June 1—Ocean Spray is strengthening its family of good-for-you products by repositioning and renaming its Wellfleet Farms line of 100% juices as Ocean Spray(R) Premium 100% Juices and adding two new flavors to its product portfolio. Ocean Spray Premium 100% Juices is a premium line of 100% cranberry juice blends that combines the fresh taste of Ocean Spray cranberries with distinctive flavors from unique varietal fruits. The four existing flavors—Cranberry, Cranberry and Granny Smith Apple, Cranberry and Georgia Peach, and Cranberry and Key Lime—which will be available under the Ocean Spray name in June, will be complemented with Cranberry and Concord Grape and Cranberry and Pacific Raspberry later this year.

Neogen consolidates manufacturing

June 1—Neogen Corp. announced that it has moved its manufacturing operations for diagnostic test kits to detect microorganisms, such as E. coli O157:H7 and Salmonella, from Bridgeport, N.J., to the Company's headquarters in Lansing, Mich. The decision to combine diagnostic manufacturing operations in Lansing was made in conjunction with the recent sale of Neogen's human clinical line of products to Ampcor Technologies Inc. of Denville, N.J.

Schratter Foods recalls Ricotta cheese

June 1—Schratter Foods Inc. announced that it is voluntarily recalling 2056 cases labeled Pinna Ricotta Salata Cheese. The recall has been initiated by the company because they have the potential to be contaminated with Listeria monocytogenes, an organism which can cause serious and sometimes fatal infections in young children, frail or elderly people, and others with weakened immune systems. Although healthy individuals may suffer only short-term symptoms such as high fever, severe headache, stiffness, nausea, abdominal pain and diarrhea, Listeria infection can cause miscarriages, and stillbirths among pregnant women. The recalled Ricotta Salata were distributed to several Eastern states in retail stores and through distributors. Consumers with questions may contact the company at 973/575-9120.