Food Business News - Jan 06, 2009 - (Page 1)

FoodBusinessNews ® January 6, 2009 NEWS, MARKETS AND ANALYSIS FOR THE FOOD PROCESSING INDUSTRY Restaurant performance deteriorates in November F.D.A. takes issue with Diet Coke Plus labeling Operators will have to adapt to trends in order to profit in 2009 8 Sweet and spicy snacks on the horizon 22 Caution when changing colors 25 2 MARKET WATCH CH Red meat production Commercial, million lbs November 2008 2007 2006 3,871 4,300 4,151 2008 production fell 10% from 2007 and 7% from 2006. WASHINGTON - Food service operators are facing some of the most challenging market conditions in a decade and the outlook for the restaurant industry worsened in November, as the National Restaurant Association's (N.R.A.) index of restaurant activity plummeted to a recordlow level. The N.R.A.'s Restaurant Performance Index (R.P.I.) stood at 96.7 in November, down 0.4% from October and its 13th consecutive month below 100. "The November decline in the Restaurant Performance Index was the result of broad-based declines across the index components, with the Current Situation index falling to a new record low," said Hudson Riehle, senior vice-president of Research and Information Services for the N.R.A. "A solid majority of restaurant operators reported negative same-store Restaurant Performance Index 104 103 102 101 100 99 98 97 96 July Jan. July Jan. July Jan. July Jan. July Jan. July Jan. July 2002 2003 2004 2005 2006 2007 2008 Values greater than 100 = Expansion; Values less than 100 = Contraction Source: N.R.A. sales and traffic levels in November, while nearly one-half expect their sales in six Continued on Page 14 Drinking (and eating) to beauty Foods and beverages with functional beauty benefits are making their appearance in the United States T he quest to find the fountain of youth drove explorers to the Americas, but in today's world may a tea provide increased energy, stimulate healthy metabolism and restore gray hair to natural color? The current market in the United States for foods and beverages with beauty benefits, which includes products such as High Country Kombucha Original Ice Tea, suggests so. High Country Kombucha also has varieties in aloe and goji berry, which are ingredients known for beauty benefits. The market for such products originally emerged in Asia and Europe and has recently moved to the United States. In Asia, it has become rather common to find food and beverage products with ingredients such as collagen, aloe vera and ceramide - ingredients typically associated with skin care benefits in topical skin care treatments. "But in beauty foods in Asia, those Continued on Page 29

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Food Business News - Jan 06, 2009