Food Business News - Mar 22, 2005 - (Page 1)

FoodBusinessNews March 22, 2005 NEWS, MARKETS AND ANALYSIS FOR THE FOOD PROCESSING INDUSTRY Cost of coffee climbs as commodity prices rise McCormick's focus on flavor 15 Myriad soy health benefits 28 Haak on top at Brach's 36 MARKET WATCH CINCINNATI - Rising costs have prompted coffee price increases in recents days by Procter & Gamble Co., Kraft Foods Inc. and Sara Lee Corp. P.&G. was the first to move, raising the list price to retailers of its Folgers ground coffee by 12% on March 11. In doing so, the price of Folgers ground coffee increased 28c per 11.5-oz and 13-oz equivalent, to $2.56 from $2.28. Folgers instant coffee saw a 10c price increase per 8-oz serving. The company cited the higher cost of green coffee beans as the key factor behind the price hike, its second significant pricing action in three months. In December, P.&G. implemented a 14% price increase for its Folgers roast and ground coffee, its biggest rise in a decade. Northfield, Ill.-based Kraft, makers of Maxwell House coffee, followed suit on March 12, raising the price of its Maxwell House roast and ground coffee by 12% for a 13-oz can, to $2.57 from $2.29. The company raised the list price of its Continued on Page 13 Food and Drug Administration gears focus toward G.M.P. Part two of food law specialist's look at F.D.A.'s priorities Diesel fuel and other commodity prices have surged since January. While there always is some uncertainty with regard to what regulatory issues will demand the attention of the food industry in any given year, certain Food and Drug Administration priorities are widely known. It is known that the F.D.A. gives high priority to updating good manufacturing practices (G.M.P.). It also is known that the agency might like to revisit food standards, though other projects probably will take precedence, said Peter Barton Hutt, senior counsel in the Washington, D.C., law firm of Covington & Burling. "The food industry with regard to regulatory issues is inherently reactive not proactive, and it is very difficult to predict what the F.D.A. is going to do or what is going to require the riveted attention of the food industry in the next two months," Mr. Hutt said. "It's difficult to conceive of what issue suddenly could be thrust above all the others, demanding the food industry consider it, analyze it, think about it, meet and discuss it, and then comment to the F.D.A. on it. "The most important thing is the industry cannot afford to ignore any issues when they are raised. Industry leaders must think about them and respond." Food companies should participate in their trade associations, because that is how they can have the biggest impact, Mr. Hutt said. "If 20 companies submit 20 disparate Continued on Page 16

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Food Business News - Mar 22, 2005