Food Business News - Apr 12, 2005 - (Page 1)

FoodBusinessNews April 12, 2005 NEWS, MARKETS AND ANALYSIS FOR THE FOOD PROCESSING INDUSTRY Crawford focusing on food defense Join the club The club store channel is expanding at a rapid pace 16 New at PepsiCo - balanced growth 25 Focusing on 'friendly' bacteria 38 Flaxseed +76% +47% Canola +21% 2005 acreage versus 2004 Higher cash prices prompt large increase in planting intentions. Club stores are altering the retail landscape, according to Doug Bennett, client director for ACNielsen. Larger cash register rings combined with superb customer service has propelled this category's leaders to challenge traditional retailers. "In terms of the state of the business for the club channel, the current performance and future outlook are both strong," said Mr. Bennett during ACNielsen's Consumer 360 conference, held this past month in Hollywood, Fla. "Revenue has grown 36% over the past 4 years, including 10% in 2004 vs. 2003. "A key indicator of the health of this channel is the fact comparable store sales remain healthy and for some retailers, double digit. This clearly indicates that club retailers continue to make the right moves to continue to appeal to existing and new shoppers and members." As of December 2004, there were ap- proximately 1,200 stores within the club channel. Combined sales within the market Continued on Page 22 Crawford nomination hits a snag WASHINGTON - Food industry executives likely were not thinking about birth control when they considered Lester Crawford's prospects for confirmation as commissioner of the Food and Drug Administration. Dr. Crawford, the acting commissioner of the F.D.A., has received high praise for his qualifications for the post and for his accomplishments during the extended period he has spent at the agency as acting commissioner. Still, the issue of contraception has stymied Dr. Crawford's confirmation, at least for now. Two Democratic senators, Patty Murray of Washington and Hillary Rodham Clinton of New York, said April 6 they would block Dr. Crawford's nomination to oversee the F.D.A. because they were unsatisfied with his explanation of why a "morning after pill" has not been approved for use without a prescription. "Senator Clinton and I will hold up this nomination until a decision has been reached," Senator Murray said following a meeting last week with Dr. Crawford. Controversy over the pill mounted when the F.D.A. decided not to follow a recommendation from its scientific advisers. Those advisers voted 24-3 in December 2003 in favor of allowing Barr Laboratories to market the pill, also known as Plan B, over the counter. Peter Barton Hutt, former counsel to the F.D.A. and an attorney with Covington and Continued on Page 14

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Food Business News - Apr 12, 2005