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Industry News from IRI and MorningNewsBeat.com 07/11/2008

Sheetz Invests $46 Million in Food Services
• Fox Business reported that c-store chain Sheetz has opened a new $46 million kitchen facility that will serve as a new distribution center for the chain to make and ship fresh, ready-to-eat foods to all of its 350 locations – a considerable investment in food service as a cornerstone of the company's operations in the future.


Jalapeno Peppers Could Be Source of Recent Salmonella Outbreak
• The Centers for Disease Control and Prevention (CDC) and the US Food and Drug Administration (FDA) said late last week that they now are focusing on jalapeño peppers as a possible source of the recent salmonella outbreak, and not just tomatoes.

According to a statement released by the United Fresh Produce Association, "This announcement narrows the scope of the investigation, which FDA said last week focused more broadly on 'other items commonly consumed with tomatoes.' The CDC and FDA's statement about jalapeño peppers should end speculation about other produce items not ever associated with the outbreak."


Town & Country Markets to Open a New 50,000 square foot Store
• The Seattle Times reported that Town & Country Markets in the Seattle plans to open a new 50,000 square foot Central Market unit in Issaquah Highlands in 2010. It will be the fourth such store operated by the company, which also has them in Poulsbo, Shoreline and Mill Creek.



City in San Diego County Attempting to Ban Plastic Bags
• The San Diego Union-Tribune reported that "Encinitas, a beach town where crosswalk signs show pedestrians carrying surfboards, could become the first city in San Diego County to ban single-use plastic bags." The City Council has been presented with a petition signed by 1,500 residents supporting the ban, and it is thought that "the idea would quickly gain traction in the city of 63,000, which includes a contingent of environmental activists.

"In California, the cities of San Francisco, Malibu and Manhattan Beach have banned single-use plastic bags."


Starbucks Looks to Spike Sales With Sampling
• Advertising Age reported that Starbucks has announced that "it is offering prolonged and far-flung sampling of summer beverages to assuage consumers and boost traffic through the season. The promotions, which vary by region, are focused in major cities."

However, Ad Age says that some analysts believe that the sampling program signals even deeper-than-believed problems at Starbucks, which recently announced that it is closing 600 underperforming units.


FastNewsBeat
• The Chicago Tribune reports that a Whole Foods store in the Lincoln Park section of the city has finally reopened after failing two health inspections in three days because of a rodent infestation. According to the story, the store was "shuttered on Wednesday after health inspectors found mouse feces and a dead mouse," and then "flunked another review Friday after inspectors found more of the same in other parts of the supermarket."

• The Times of London reports that "the Co-operative Group is poised to jump back into the supermarket big league" and has completed an agreement to acquire Somerfield for the equivalent of about $3 billion (US). The deal would create a combined company that is the fifth biggest supermarket chain in the UK and that "is central to its hopes of reviving memories of the 1960s, when the group … became Britain's biggest grocery retailer with about 13 million customer-members."

The MNB Wal-Mart Watch

• The New York Times reports that NBC Universal has signed a multimillion dollar deal with Walmart that will have the retailer's commercials appearing in what are being called "momtourage" segments that are designed to help people be better parents.

The "momtourage" segments will appear in a number of NBC Universal venues seen as being family-friendly, such as the "Today" show, the iVillage website, and the Oxygen cable network.


The Balance Sheet

• Costco Wholesale reported June sales of $714 billion, up 12 percent from the same month a year ago, on same-store sales that were up nine percent in US stores and 11 percent in the company's international stores.

• Family Dollar stores said that its June sales rose 10.7 percent to $715 million, with same-store sales up eight percent.

• BJ's Wholesale Club reported that its June sales were up 1 percent to $1 billion, with food sales up 11 percent for the month and same-store sales showing a 16.5 percent increase.


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