Food Business News - Dec 07, 2010 - (Page 1)

December 7, 2010 FOODBUSINESS NEWS NEWS, MARKETS AND ANALYSIS FOR THE FOOD PROCESSING INDUSTRY NDUSTRY www.foodbusinessnews Senate passes food safety bill ... but WASHINGTON - The U.S. Senate voted 73 to 25 to approve the F.D.A. Food Safety Modernization Act, S. 510, which, if enacted, would give the nation's food safety system its first major overhaul in 70 years. But elation over the bill's passage among consumer activists and food industry associations quickly turned to frustration when it was discovered a portion of the bill calling for new fees violated congressional procedures outlined in the Constitution. Some of the fees were considered revenue raisers, i.e. taxes, and all tax measures must originate in the House of Representatives. The Senate's error put the House leadership on the spot as the House may Continued on Page 28 Order sends sugar beet market into disarray KANSAS CITY - A court order last week to destroy bioengineered sugar beet seed root stock has created significant concern in the sugar industry by clouding future U.S. sugar beet and sugar production and prompting some to forecast record high refined sugar prices. Judge Jeffrey White in the U.S. District Court for Northern California on Nov. 30 ordered root stock, or stecklings, be "removed from the ground" as of Dec. 7. The stecklings would have been replanted next year to produce seed for use in 2012. It is believed Judge White's order was the first ever in the United States to Continued on Page 11 Story on Page 27 Kraft, Starbucks packaged coffee dispute escalates Decade-long agreement worth millions hangs in the balance NORTHFIELD, ILL. - Kraft Foods Inc. said it is initiating an arbitration proceeding against Seattle-based Starbucks Corp. after the latter's move to end its agreement with Kraft to distribute and promote Starbucks packaged coffee in stores. The agreement dates back to 1998, and analysts estimate that the business may be worth more than $1.5 billion. Howard Schultz, chairman, president and chief executive officer of Starbucks, first disclosed Starbucks' plans to end its agreement with Kraft during a Nov. 4 conference call discussing fourth-quarter financials. "For the last 10 years or so, Starbucks packaged coffee has been distributed to grocery stores and other outlets by Kraft Foods," Mr. Schultz said. "A month ago, we informed Kraft of our intention to discontinue the distribution arrangement. The details and timing around any transition will be subject to further private dialogue. We intend to work closely with Kraft to ensure an orderly transition, putting an emphasis Continued on Page 18 http://www.foodbusinessnews

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Food Business News - Dec 07, 2010