Food Business News - Jan 20, 2009 - (Page 1)

FoodBusinessNews ® NEWS, MARKETS AND ANALYSIS FOR THE FOOD PROCESSING INDUSTRY Mr. Vilsack goes to Washington Peanut butter recall spreads widely through industry 16 New taste sensations 2 26 Steaming up sales 41 MARKET WATCH Individuals receiving SNAP (food stamp) benefits in fiscal '09 ATLANTA - For the second time in as many years, peanut butter has been identified as the source of a food-borne illness outbreak. The food industry was on edge in early January as word spread that the U.S. Centers for Disease Control and Prevention was investigating an outbreak of Salmonella Typhimurium. By midJanuary, the C.D.C. said more than 450 consumers in 43 states may have been sickened by the pathogen, the outbreak may be related to 5 deaths, and the source may be peanut butter manufactured by The Peanut Corporation of America, Lynchburg, Va. The C.D.C. came to its initial conclusion about the source of the outbreak because an epidemiologic investigation conducted by the Minnesota Department of Health suggested King Nut brand creamy peanut butter as a likely source of Salmonella infections among many ill people Continued on Page 10 27.2 27.3 27.6 27.8 27.7 28.0 28.2 28.4 28.9 29.1 29.5 31.6 in millions Oct. Dec. Feb. April 2007 2008 June January 20, 2009 Aug. D E L L A C E R Pricing: 'Power' or 'Poof' Whether price increases will hold is a central question for 2009 U.S. Department of Agriculture Monthly SNAP participation was up 7% in fiscal 2008 from 2007. I n the words of Robert Moskow, a food industry analyst with Credit Suisse, New York, pricing "is the single issue investors will most worry about in 2009." In particular, Wall Street is wary of whether food companies will be able to maintain the food price increases instituted amid the commodity price surge of 2007-08, whether companies will be able to push through another round or whether price cuts could be in the offing. The ability to raise prices was a significant contributor to the relative outperformance of food industry companies in 2008 versus the broader market averages. The packaged foods and meat sector of the S&P 500 declined 15% in 2008, a far narrower decline than the 39% drop in the S&P 500 and the 34% decline in the Dow Jones average of industrial shares. While a normal tendency of investors is Continued on Page 33

Table of Contents for the Digital Edition of Food Business News - Jan 20, 2009


Food Business News - Jan 20, 2009