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Analyst: Kroger takes "opportunistic" approach to store M&A | Oliver's Food Revolution Day gains FreshDirect support | Companies respond to shift toward organic and local meat

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May 17, 2013

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Retail Beat

Analyst: Kroger takes "opportunistic" approach to store M&A
Kroger's strategy for acquiring stores is to follow the opportunity, Northcoast Research analyst Chuck Cerankosky says. "My experience following Kroger indicates that it has been very opportunistic in buying select stores sites that fit in with its existing store footprint," he said. American City Business Journals/Cincinnati/CincyBiz Blog (5/16)

Oliver's Food Revolution Day gains FreshDirect support
In honor of Jamie Oliver's Food Revolution Day, FreshDirect is donating a portion of sales this week to the Jamie Oliver Food Foundation. The push for healthy eating is also supported on FreshDirect's website and through social media and banner ads. Supermarket News (free registration) (5/16)

Trend-Spotter

Companies respond to shift toward organic and local meat
Retailers and meat producers are responding to growing consumer interest in meat that is organic and humanely raised. Whole Foods Market, which uses a five-step scale for ranking animal welfare, is promoting its meat and butchers with Best Butcher contests. Smithfield Foods plans to raise half of its hogs without ractopamine, up from 10%. MediaPost Communications/Marketing Daily (5/16)

Supplier News

ConAgra is recognized for employee wellness
A ConAgra Foods facility in Waterloo, Iowa, has been named a Blue Zones Worksite for its effort to improve employee wellness. Worker benefits include a discounted gym membership, help with smoking cessation, a 24/7 nurse line and access to mental health programs. Cedar Valley Business Monthly online (Waterloo, Iowa) (5/15)

Technology Solutions

Independent wholesalers implement ReposiTrak technology
Members of the Retailer Owned Food Distributors & Associates are adopting track-and-trace technology from ReposiTrak. "We selected the ReposiTrak solution for three reasons: The technology on which it is based is a proven, scalable platform; it is easy to use and inexpensive; and it is simple to implement because it is Web-based and requires no hardware or software installation," ROFDA President and CEO Francis Cameron said. Supermarket News (free registration) (5/16)

BJ's taps FoodLink to obtain fresh produce
BJ's Wholesale Club is sourcing and purchasing fresh produce using FoodLink technology, which connects growers, distributors, wholesalers and retailers. "FoodLink will help us improve supply-chain visibility into market data and enable us to work closely with our suppliers to better meet the needs of our members," said Jeff Desroches, senior vice president and logistics director at BJ's. Food Business Review (5/16), Retailing Today (5/15)

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Government Affairs

Legislation spurs tension between conventional, organic farmers
As organic food gains popularity, the industry is gaining power on Capitol Hill, sometimes pitting organic and traditional farmers against each other. The clash was seen during debate about a farm-bill amendment that would let the USDA approve industrywide promotional campaigns. The Washington Post/The Associated Press (5/17)

FMI Spotlight

FMI website is awarded for design and functionality
FMI was announced as a Silver Davey Award winner and a Platinum MarCom Award winner for website design. We are honored to have these agencies recognize last year's website redesign, as FMI.org updated design and functionality to better serve our members and the food-retail industry. Visit FMI.org and see all available resources.

Global Update

Price-cutting strategy pays off for ASDA
U.K. supermarket chain ASDA saw sales increase 1.3% in the first quarter compared with Q1 of 2012, its best quarterly performance in a year. Cutting prices on everyday items, instead of offering vouchers, has proved popular with consumers, CEO Andy Clarke says. The chain, owned by Wal-Mart Stores, says online sales increased 16% in Q1. The Telegraph (London) (tiered subscription model) (5/16)

Food Safety and Security

Retailers are slow to embrace Produce Traceability Initiative
Most retailers have not adopted the Produce Traceability Initiative, the PTI Leadership Council's co-chairmen say, but those that have, whether partially or completely, are contributing to a noticeable difference in the industry. "Recalls that were taking six weeks plus to figure out five years ago, the FDA is now nailing down in a matter of days," said Mike Agostini, senior director of produce and floral at Wal-Mart Stores. Supermarket News (free registration)/Total Access blog (5/16)

United Fresh nears launch of produce-recall program
Recall Ready, the United Fresh Produce Association's produce-recall program that has a 24-hour hotline and consulting services, is scheduled to be operational June 1. "The Recall Ready program is all about meeting the needs of our members in regards to one of our industry's most critical priorities –- food safety," said Apio CEO Ron Midyett, the association's incoming chairman. Progressive Grocer (5/16), GroceryHeadquarters.com (5/16)

Daily Quote

The longer I live, the more I am certain that the great difference between the great and the insignificant is energy -- invincible determination."

-- Sir Thomas Buxton,
British politician, brewer and social reformer

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