Butterball Experiencing Fresh Turkey Shortage

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

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

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

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

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

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

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

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

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

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

VEVEY, SWITZERLAND — The weight is over.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Walmart Building Its First Convenience Store for Test

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Gluten-free Foods Not Just for Those with Celiac Disease

Consumer interest in gluten-free offerings continues to rise, and according to recent research from Mintel, it’s not just those who suffer from a gluten allergy who stock their pantries with these wheat-free products.

In fact, 65 percent of consumers who eat or used to eat gluten-free foods do so because they believe them to be healthier, and 27 percent eat them because they think such foods help with weight loss efforts.

Amanda Topper, food analyst at Mintel, finds it “interesting to see that consumers think gluten-free foods are healthier and can help them lose weight because there’s been no research affirming these beliefs.”

“The view that these foods and beverages are healthier than their gluten-containing counterparts is a major driver for the market, as interest expands across both gluten-sensitive and health-conscious consumers,” Topper added.

Sales in the gluten-free food and beverage market are estimated to reach $10.5 billion in 2013, and from 2011-13, the market experienced 44 percent growth.

While the incidence of celiac disease affects only 1 percent of the U.S. population, Mintel’s research finds that there has been strong interest in gluten-free food and beverage for reasons other than gluten allergy.

Over a third (36 percent) of Americans who eat or used to eat gluten-free foods say they do so for reasons other than sensitivity, 7 percent say they eat them for inflammation and 4 percent say they purchase them to combat depression.

“When looking at the top 10 gluten-free food product claims in Mintel’s Global New Products Database, after gluten-free and low/no/reduced allergen, there also are product claims associated with being natural and free of additives or preservatives,” concluded Topper. “The positioning of gluten-free products as having multiple health benefits, such as low fat or no animal ingredients, may be leading to consumer perceptions that gluten-free products are healthier than products that contain gluten.”

Segmenting Shoppers Through ‘Natural’ Selection By Meg Major

Consumers are increasingly embracing natural and organic products, and often they are as concerned about what's not in the products they buy -- especially food -- as much as what is. To that end, Information Resources, Inc. (IRI) and SPINS have joined forces to create SPINS NaturaLink, a new segmentation of the total U.S. population that focuses on how shoppers think about, purchase and use natural/organic/eco-friendly products.

In 2012, U.S. natural/organic retail sales grew 13.5 percent, reaching a whopping $81.3 billion. But only 18 percent of shoppers account for nearly half of all natural/organic product sales. So how can trading partners attract the remaining 82 percent of consumers that are not yet "power shoppers" in this fast-growing sector?

In a nutshell, it's all about segmentation.

To wit: SPINS NaturaLink identifies seven distinct consumer segments based on lifestyle, organic/natural purchasing history, attitudes toward organic/natural products, the importance of physical and emotional category/product needs, and demographics.

“The segmentation offers an important set of insights for leveraging existing natural/organic buyers and attracting new shoppers to these products," notes Robert I. Tomei, president, IRI Consumer and Shopper Marketing.

Two shopper segments in particular -- “True Believers” and “Enlightened Environmentalists” -- offer outsized opportunities for manufacturers and retailers; each group represents 9 percent of the U.S. population, but together account for 46 percent of all natural/organic product sales.

True Believers – This segment's nomenclature is self-explanatory. True Believers are passionate about staying fit and healthy and are focused on trying new things, serving as strong role models for their children, and are strong believers in the benefits of natural/organic products. True Believers post a median income of $65,000, have an average age of 40, attended college and in some cases, embarked on post-graduate studies.

Enlightened Environmentalists – Also self-explantory, this shopper set is passionate about the environment and making good choices to support it. Enlightened Environmentalists are making a real effort to make healthier choices and will go out of their way to shop at stores that carry natural/organic products; they're older than True Believers, averaging 63 years old, attended graduate school and have a median income of $57,000.

“These two groups are ‘power shoppers’ when it comes to natural/organic products,” affirms Tony Olson, CEO, SPINS. “Manufacturers and retailers have a significant opportunity to better understand and tap into their needs, wants and motivations, not only to drive sales volume but also to continue to deliver the innovative products that shape our industry.”

At the same time, cautions Olson, it's important to motivate shoppers in other segments, "to expand their knowledge of natural/organic products to stimulate buying behavior and ensure long-term growth.”

Read on for a brief description of the following five segments, which comprise the remaining 54 percent of sales:

Strapped Seekers – This group likes to try new things and live a healthy lifestyle, but knows they should make healthier choices than they do. With a median income of $45,000 and median age of 45, these shoppers represent all levels of education.

Healthy Realists – Being healthy and fit and making exercise a priority is important to these shoppers. They are often the first among their friends to try something new, but can have difficulty deciding whether to buy healthy or traditional products. Their average age is 39; they have attended college and earn a median income of $65,000.

Indifferent Traditionalists – Leading a simple life with few passions, they may try healthy products but do not consider themselves on the leading edge of change. With a median income of $46,000 that skews under $25,000, these shoppers are aged 65 on average and have a high school education.

Struggling Switchers – These shoppers are focused on staying within their budgets, have suffered during the last recession, but know they should be eating healthier and getting more exercise. With a median income of $56,000, they are aged 39 on average and attended all levels of school.

Resistant Non-believers – With very little desire to explore other options for things to buy, Resistant Non-believers stay loyal to the products they know. They have completed high school; have an average age of 52 and a median income of $48,000.

IRI and SPINS completed the SPINS NaturaLink segmentation in October 2013; survey respondents were polled primarily from IRI’s National Consumer Panel, which represents the total U.S. population (and not just consumers already using natural/organic products). The partners teamed up for a recent webinar on the same subject, the archive of which can be accessed online.

McDonald’s splits with Heinz 10/28/2013 - by Monica Watrous

OAK BROOK, ILL. — McDonald’s Corp. has announced plans to end its 40-year relationship with supplier H.J. Heinz Co. following recent management changes at the ketchup company that hit too close to the Home of the Whopper.

Bernardo Hees, previously chief executive officer at fast-food rival Burger King Worldwide Inc., stepped in to the same position at Heinz in June — and that’s when McDonald’s stepped out.

“As a result of recent management changes at Heinz, we have decided to transition our business to other suppliers over time,” McDonald’s said in a statement. “We have spoken to Heinz and plan to work together to ensure a smooth and  orderly transition of the McDonald’s restaurant business, and are confident that there will be no impact to our business, our customers and our great tasting food at McDonald’s.”

Mr. Hees assumed the role following the $28 billion takeover of Heinz by Berkshire Hathaway and 3G Capital, which owns a stake in Burger King.

McDonald’s declined to provide details on which suppliers the hamburger chain will use instead. Heinz said the company does little business with McDonald’s in U.S. markets.

Asked about the split, a Heinz spokesperson said: “All our food service customers globally remain valuable to the company and are an important part of what has made the H.J. Heinz Co. what it is today. We continue to operate respecting every customer while upholding the high level of confidentiality and business ethics that the H.J. Heinz Co. has built with our business partners over the years.”

Ahold USA Among ‘Top Supplier Diversity Programs for Women’

Ahold USA is among Professional Woman's Magazine's “Top Supplier Diversity Programs for Women” for 2013 in honor of the Carlisle, Pa.-based grocer’s commitment to working with diverse and female-owned businesses. The publication’s 14th annual review of diversity programs evaluates the nation’s employers, initiatives, government agencies and educational institutions, basing its picks on market research, independent research, diversity conference participation and survey responses.

Ahold USA’s engagement with local and diverse businesses includes hosting annual trade local/diverse business opportunity fairs. This year’s events were held on Feb. 6 in Quincy, Mass., and Sept. 11 in Carlisle.

“As a responsible retailer, we continue to maintain our strong commitment to developing business opportunities with women and minority-owned companies who can supply their products and services to our customers,” said Jodie Daubert, Ahold USA’s SVP, sales development.

During the Quincy and Carlisle events, 81 companies had their products reviewed by Ahold USA procurement teams for potential placement through the grocer’s retail divisions in the Northeast and mid-Atlantic. Many of the participating vendors’ businesses are based within the Ahold USA geographic footprint.

“They tried very hard to make sure potential vendors are aware of the processes and requirements, so that there are no surprises and a win/win all around,” noted Debra Kaufmann, of Bethesda, Md.-basedGator Ron’s Zesty Sauces and Mixes.

“This is a huge opportunity for a small company to meet with senior buyers of a large company such as Ahold USA,” added Maria Kardamaki Robertson, of Silver Spring, Md.-based Demeter’s Pantry.

Ahold USA, part of Amsterdam-based international food retailing group Ahold, supports four regional divisions – Stop & Shop New England, Stop & Shop New York Metro, Giant-Landover and Giant-Carlisle – that collectively operate nearly 800 supermarkets with about 120,000 associates in 14 states and the District of Columbia, as well as e-grocer Peapod.