Breaking News on Food Marketing and Retailing

Energy drinks rescue Russia's FAB Boom

Energising ingredients and more spending on research and development has turned around the fortunes of flavoured alcoholic beverages in Russia, bringing better opportunities and growth forecasts, writes Chris Mercer.

Russia to become Europe's largest grocery market

Europeans in 39 countries spent a combined total of €1,363bn on food and groceries in 2004, with Germany as the largest market, to be overtaken by Russia in 2020, according to IGD Services.

Russia: A hard market to crack

Although Russia's food retail market is set to become the largest on the continent, it will be a tough market for western European food processors to crack.

Eastern Europe: a value-added dairy playground

Emerging dairy markets in Eastern Europe have shown dynamic growth thanks to innovation drives and the development of retail networks, providing big opportunities for value-added products, writes Chris Mercer.

Kellogg's European sales fall

Once inflation is taken into account Kellogg's sales figures in a stagnant European market fell by about one per cent in the second quarter, according to figures published this week.

Sources to multiply for organic ingredients?

With the rise in organic processed food comes a leap in demand for organic ingredients, but is it still early days for local ingredients sourcing, asks Lindsey Partos.

Regulator rules Somerfield purchase anti-competitive

It looks likely that Somerfield might be forced by the UK's competition regulator to sell 14 of the 100 former Safeway stores it purchased from Wm Morrison, a move that might provide a modicum of relief to food processors under pressure from retailer buying power.

Europe makes Cadbury Schweppes drinks suffer

Diet trends help Cadbury Schweppes to push forward in the US, yet its European soft drinks arm looks to be a weak link as tough market conditions hamper sales, profits and margins, reports Chris Mercer.

PepsiCo bid for Danone, pure speculation

French food and drink giant, Groupe Danone, has acknowledged US PepsiCo's denial of takeover plans, as the French government threatens to do everything in its power to stop such a bid from ever taking place, writes Claire Johnston.

Carrefour's strategy puts pressure on suppliers

Suppliers to Carrefour will continue to be limited on what they can charge for their products as the world's second largest retailer fights to boost flagging sales across most of Europe.

Hovis targets children with new crustless bread

British food group RHM last week announced it will launch a crustless bread under its Hovis brand, targeted at young children who only like the soft part of a loaf.

Food formulation to target 'foodie-forties'?

Food makers would be wise to target their marketing campaigns and food formulations at Brits in their forties, claims new research that finds this slice of the population spends nearly 30 per cent more on food than the rest of the nation.

Functional water struggles to escape niche sectors

Britain and France are leading launches of functional, bottled water in Europe, yet the trend remains in the grip of niche sectors and still below flavour in the R&D priority list of the big players, reports Chris Mercer.

Sudan, the banned red dye, turns up in Italian gnocchi

Harmful red colour Sudan 1 crops up in prepared pasta dish in Italy, reports the EU's food risk alert system this week, confirming food makers still risk contamination by this illegal food colour.

Brand awareness vital to business success

If food manufacturers can achieve a better understanding of how consumers interact with brands, then product development could be less of a hit-and-miss affair, writes Anthony Fletcher in New Orleans.

Sesame food allergies rise, food labels essential

New study that highlights a rise in sesame allergies reminds food makers of the importance of tough European labelling rules on allergen ingredients enforced later this year,reports Lindsey Partos.

GI studies inconclusive, says Grain Foods Foundation

A campaign designed to combat the glycaemic index momentum is being launched in the US by the Grain Foods Foundation and public relations firm Mullen, reports Lorraine Heller.

Move over wrinkle creams, anti-ageing foods hit Europe

Foods designed to help slow ageing are exploding onto the European market, with mainstream manufacturers confirming that the trend may be here to stay, reports Dominique Patton.

Cadbury Schweppes ponders European drinks sale

Cadbury-Schweppes looks set to try and sell its European soft drinks arm, again, but whoever buys it may have a tough time improving the division's rather average performances, reports Chris Mercer.

New ARS apricots pack a flavor punch

Flavorful new apricots known as "Kettleman" may soon hit the supermarket shelves, claim US scientists.

EU outlines plans to relax BSE restrictions

The European Commission's plan to relax the bloc's rules on mad cow disease provides hope to food companies that they will have wider access to beef suppliers, including those in the UK.

Oatcake maker expands capacity to meet GI dieters' demand

The success of the GI diet in the UK has triggered soaring demand for oats, pushing the country's leading oatcake maker to add new production capacity, writes Lorraine Heller.

Recent deals boost bottom line for Northland Cranberries

Cranberry supplier Northland Cranberries gains from agreement with rival Ocean Spray plus sale of branded juice business, reporting a lift in income for the third quarter this year.

French wine come-back fuels market scrap

Crisis in the French wine industry is spurring producers' acceptance of aggressive marketing strategies that, whilst perhaps long-overlooked, could be worrying for foreign producers on an increasingly competitive world market, writes Chris Mercer.

US bakeries launch wholegrain white

Two major US bakeries are today adding white wholegrain bread to their product ranges, targeting consumers who want the taste they like while receiving the nutrition they need, reports Lorraine Heller.

Superfos takes packaging to Eastern Europe

Danish packaging company Superfos says it is expanding its packaging production in Poland as part of a focused growth strategy that targets all consumer packaging including food and drink products, reports Simon Pitman.

Seniors driving the ready meals market

Food makers designing ready meals would be wise to consider the over fifties, after fresh research reveals they are driving a hefty slice of the market,reports Lindsey Partos.

BakeMark UK launches new product for Indian snack market

BakeMark UK, subsidiary of Dutch ingredients firm CSM, is hoping to cash in on the rapidly growing UK market for Indian foods, announcing yesterday the launch of a new Indian snack product.

Kellogg launches wholegrain cereal for growing niche market

A new all wholegrain cereal range was launched in the UK last week by cereal giant Kellogg, targeting the increasing number of consumers turning towards healthier wholegrain products, but Mintel analyst says it is unlikely to be a mainstream bestseller, writes Lorraine Heller.

Skane to develop shiitake-based foods

Innovative Swedish dairy company Skanemejerier has signed an agreement to develop immune-boosting products based on an extract from the shiitake mushroom, reports Dominique Patton.

Colour as the next step in tamper proofing food?

The use of colour on food packaging may soon tell retailers if a product has been tampered with or damaged.

OJ contamination sparks industry fears

The discovery of potential Salmonella Typhimurium contamination in an orange juice product has compounded worries over falling juice sales in the US.

Asda reorganises as supermarket war heats up

There's more movement in the UK's supermarket battle for supremacy, as Asda announced yesterday it is cutting 200 management jobs and adding about 1,200 store positions as part of a reorganisation.

Biodar makes mineral-fortified candy taste good

Biodar's new line of microencapsulated vitamins and minerals for kids' chewable applications could help improve diets and even save food makers money, writes Anthony Fletcher.

Consolidation shows drinks industry on the defensive

Drinks industry consolidation aptly took on greater importance this week as Diageo announced tough trading conditions in a sign that cost-savings and pricing will be crucial, reports Chris Mercer.

Openings for natural colours as Co-op bans food additives

New opportunities for natural colour suppliers arise as the UK's Co-op chain bans a raft of food colours, along with the flavour enhancer, MSG from all its own-brand food products,reports Lindsey Partos.

Weekly comment

Let food be thy medicine

A society that views food as taste-bud entertainment rather than a basic of well-being was always bound to run into health problems. But with obesity now afflicting 300m people, and diabetes set to reach similar numbers within two decades, the problems borne of food abuse are emerging as more than a glitch. They amount to a profound loss of direction in our understanding of both food and medicine.

Ikea to move into speciality grocery market

Following Wal-Mart's announcement it plans to expand operations into the rest of Europe, furniture retailer Ikea said it will move into the grocery market with its own-label products next year.

Local beer brands boom in Ukraine

A strong sales increase for Ukrainian brewer Sarmat reveals how the country's beer market is growing strongly in Russia's shadow and adds new evidence to the popularity of 'local' brands, writes Angelina Drujinina.

New recalls reflect EU food chain still exposed to risk

Risk continues in the European food chain with member states recalling over fifty products due to food pathogens and illegal colours in seven days, suggesting industry still needs to crack down on food safety, reports Lindsey Partos.

Food formulations to use new allergen-free apple?

Food makers looking to slice potential allergens from their food formulations will benefit from a new allergen-free apple designed by researchers in The Netherlands, reports Lindsey Partos.

Budweiser caffeine beer faces consumer scepticism in UK

Never mind the pressure group fury, Anheuser Busch's caffeine beer faces UK consumers who are sceptical about flavoured beer and a tough advert code that will stop the product displaying its 'best' assets, writes Chris Mercer.

Aspartame sweetener dominates new product launches in sweetener category

Weight and health concerns continue to propel the market for low-calorie sweeteners, with a host of recent global product launches showing the popularity of sugar replacer aspartame in new sugar and sweetener formulations, reports Lindsey Partos.

Women are hungry for health foods

Designing foods and beverages to meet the specific nutritional needs of women could be a shrewd move for formulators, suggests a new market report that predicts retail sales will grow 67 percent by 2009. Jess Halliday reports on what women want.

Kellogg's targets cereal bar potential with new UK launch

Cereal giant Kellogg's to cash in on growing cereal bar market, rolling out a new range this week in the UK.

Pepsi rolls out Ting grapefruit drink in UK

Soft drinks giant Pepsi will roll out its carbonated grapefruit drink Ting to UK consumers this week.

Low-GI product launches climbing in UK

Australia is currently the most dynamic market for low-GI product launches but the UK appears to be catching up, writes Dominique Patton.

Voluntary COOL labeling the answer, says GMA

The Grocery Manufacturers Association (GMA) has welcomed the introduction of legislation that would establish a voluntary country-of-origin labeling (COOL) program in place of a mandated program.

Constellation and Pernod march on

Constellation is planning to launch newly acquired Robert Mondavi wines across Europe after it helps sales soar in the US, and Pernod Ricard finally has Allied Domecq in its sights, reports Chris Mercer.

Claims, claims, claims

As lawyers circle the food and drink industry like a fatted calf, the first lesson for those preparing for defence is that it is not so much what you sell that matters, as how you sell it.

Weekly Comment

Food intolerance: a scientific void

It is time to draw on science to establish once and for all whether food intolerance is just a source of succour for hypochondriacs, or whether it is genuinely a modern scourge.

Discount food hits Moscow

Moscow's leading retailer, Sedimoy Continent, has launched a new discount, food hypermarket format that promises new opportunities in private label as Russia's retailers look to increase their control of the country's food market, writes Angela Drujinina.

Supermarket update: Wal-Mart and Somerfield

Following up on the company's policy on further international expansion, Wal-Mart's chief executive Lee Scott, indicated the world's largest retailer was now ready to go after the market's currenttop dogs.

Failing Australian wineries face ruin, study says

Militant French vintners may be grabbing the headlines, yet new research claims small-to-medium wineries in Australia are also on the track to financial ruin, as the big boys march calmly on, reports Chris Mercer.