- The food business blog -
Dean Best's unique web log on the global food industry, key events, people and his own daily experiences. If you would like to offer your comments, opinions, suggest topics or just have a good rant, please feel free to email: Dean Best. |
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Retailers launch fresh offensive on education
10th March 2010 17:14
Tesco, the UK's largest private employer, has continued the prolonged assault on what it terms the failings of the UK's education system.
Addressing a conference in London today (10 March), Lucy Neville-Rolfe, the retailer's director of corporate and legal affairs, said that UK school-leavers have problems with basic literacy and numeracy, timekeeping and “what you might call an attitude problem”.
“They don't seem to understand the importance of a tidy appearance and have problems with timekeeping ... Some seem to think that the world owes them a living,” she griped.
Her comments echo sentiments expressed by Tesco chief executive Sir Terry Leahy, who bemoaned the “woefully low” standards in UK schools last October.
Striking a more upbeat note, both Asda and Sainsbury's today unveiled new training programmes designed to equip employees – or potential employees – with the skills needed in the workplace.
Highlighting the “lack of recognition” that the grocery sector receives as a driver of economic growth, Sainsbury’s chief executive Justin King announced the launch of the UK’s first supermarket bakery college.
Meanwhile, Asda has said that it will offer 14 to 16 year olds a week of “real” work experience. Each of Asda's 371 stores will partner with a local school or college to help introduce young people into the world of work. The supermarket group will also offer 15,000 of its workers the chance to take part in a 12-week apprenticeship programme.
“One million people under the age of 25 are unemployed, and it's probably going to get worse before it gets better," Asda CEO Andy Bond (rather gloomily) predicted. “That's why I'm determined that we do everything we can now to help young people get a foot in the door."
So the message from the world of retail is loud and clear: schools are failing to equip the next generation of workers with skills needed in the workplace.
These criticisms have been repeatedly shrugged off by teaching unions and the government, who argue that educational standards have never been higher.
Nevertheless, if the controversial assessment of business leaders proves accurate, it has some serious implications for the future economic prosperity not just of the UK's food and retail sectors, but the UK economy as a whole.
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FDA "crackdown" shows how political wind has changed
8th March 2010 14:10
When it comes to ensuring that food is marketed responsibly, the US food industry is no longer being left to its own devices.
Last week, US consumer advocates welcomed a regulatory "crackdown" against how some manufacturers market health claims on their products. Nestle, Schwan's and Diamond Foods were among a raft of companies that received warning letters over "misleading" claims and were ordered to change labels or face action.
"The previous administration tolerated such shenanigans, but I hope that the party is now over," Bruce Silverglade, legal affairs director at the consumer watchdog Center for Science in the Public Interest, remarked last week.
There is no doubt that the political wind has changed direction in the US. President Obama's appointment of Dr Margaret Hamburg, a paediatrician, as the new head of the FDA underlined how central nutrition and tackling obesity is to his administration. The First Lady has also been vocal on these issues.
Last week's "crackdown" from the FDA was a further sign of the importance the Obama administration is placing on health and nutrition and on fighting obesity. Combine this ideological shift with the failure of some industry-led initiatives, notably last autumn's scrapping of the Smart Choices Program, and there is little doubt that the current administration will look to grab more and more control over how food is marketed to consumers.
On Wednesday (10 March), regulatory officials in the UK will meet to discuss plans for a "hybrid" scheme for front-of-pack labelling. Nutritional labelling has long been a topic of fierce debate in the UK, with manufacturers, and the country's largest retailer, Tesco, backing one system, while other retailers favour another - or a combination of the two.
However, amid concern that different labels cause confusion for shoppers, the FSA has formalised its proposals for a hybrid scheme that would combine the words 'high, medium, and low' with traffic-light colours and Guideline Daily Amounts (or GDAs) in percentage terms. The FSA has also called for portion size to be presented "in an easily identifiable way".
The Food and Drink Federation, the body representing UK manufacturers, said it wanted to wait until Wednesday's meeting of the FSA board before commenting on the plans, although its counterparts at the British Retail Consortium had no such qualms, arguing it "made no sense" for the UK to bring in plans before a decision is made at European level.
Nevertheless, given that the FSA's plans include such a "hybrid" approach will be seen as something of a victory for the likes of Tesco, for so long an opponent of the regulator's favoured traffic-light scheme.
If the FSA board backs the proposals, the recommendations will then be taken to UK government ministers. Regulators and legislators across the Atlantic, with labelling a hot topic in the US, will be watching events closely.
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Write off India's domestic retailers at your peril
5th March 2010 18:30
For all the talk of Wal-Mart, Tesco and Metro Group making strides in India - as well as the speculation over when Carrefour will enter the market - it is sometimes easy to lose sight of the growth seen by the country's domestic retailers.
The likes of Pantaloon Retail and Reliance Retail are expanding across India and, although the progress of India's homegrown players may be mixed, the cards are right now stacked in their favour - principally due to the local laws restricting foreign ownership in the sector.
Another local group, Aditya Birla Retail, today (5 May) told just-food about its plans for expansion across India.
Aditya Birla's ambitions emphasise not just the potential for growth in India but also the level of resources necessary to gain a significant foothold in the market.
The retailer is backed by one of India's largest conglomerates, with interests in construction and mining, but still the company is looking to private-equity firms for cash.
Neverthless, the boss of Aditya Birla's retail business is enjoying the ride. "There is a huge queue of people trying to get into the store," Thomas Varghese told just-food as he stood outside the company's newest store in Mumbai. "It is unbelievable."
For the likes of Tesco and Wal-Mart, the fledgling but fast-growing Indian economy will demand a lot of patience - and also deep pockets.
And, all the while, the likes of Aditya Birla are setting out their own blueprints for growth.
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McWeight Watchers?
4th March 2010 17:53
Continuing with the obesity theme, a surprising development to come out of New Zealand is the announcement of a tie-up between Weight Watchers and unlikely bed-fellow McDonald's.
As part of the deal, McDonald's will use the Weight Watchers logo on its menu boards and Weight Watchers will promote McDonald's to dieters. The dieting group has endorsed various items on McDonald's menu, including chicken nuggets and Filet-O-Fish.
Now, I'm not really a McDonald's aficionado, but I am assured that although Weight Watchers has pumped for the “healthier” white meat and fish options, healthy they aint. There are three grams of fat in each McNugget and 18 grammes of fat in a Fillet-O-Fish (which contains copious amounts of tartar sauce and processed cheese).
Now, call me cynical, but it seems pretty clear what this deal is all about – the famous 'golden arches' have found a golden opportunity to reach out to the abstinent.
As for Weight Watchers, shouldn't there be some concern that the move will devalue the Weight Watchers brand, which is reliant on the trust of dieters? Doesn't it seem a bit like Alcoholics Anonymous announcing a tie-up with Budweiser?
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In defence of fish 'n' chips
4th March 2010 17:44
The debate surrounding obesity has generated reams of headlines as policy-makers, pressure groups and the food industry vie for public attention.
Here in the UK, regulators have struck out at seaside favourite fish and chips.
According to a report in The Daily Telegraph, the Food Standards Agency wants fryers to increase the size and thickness of their chips because chunkier versions absorb less fat as well as altering cooking temperatures and portion sizes.
Fish and chips are a high-profile target for the FSA and, as iconic foods – indeed foods that to many a casual observer 'define' a nation – go, it seems an apt, albeit unglamorous, representation of the UK's culinary traditions.
Nevertheless, there are few who would mistake fish and chips for a “healthy” option.
Rather, the takeaway favourite speaks of a treat at the end a summer day... Of eating out of paper off your (salty and possibly slightly sunburnt) knees. And, frankly, I don't want the FSA meddling with my nostalgic, romanticised notions of the meal.
(But then, I didn't like when they stopped serving it out of newspaper either!)
Douglas Roxburgh, president of the National Federation of Fish Fryers, makes a more serious point – chip shops already tend to serve chunky chips. According to Roxburgh, the FSA should concentrate its efforts on the likes of McDonald's, Burger King and KFC, who serve skinnier French fries.
“At the moment it seems like a case of picking on the little guys because they can't touch the big guy,” he told The Telegraph.
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An unlikely pair at Waitrose
3rd March 2010 15:28
Waitrose this morning (3 March) announced what it described as “a dream alliance” set to be the “envy of the food retail world”.
Drum roll…
Celebrity chefs Delia Smith and Heston Blumenthal are set to become food ambassadors for the UK upmarket retailer.
Great news for Waitrose and no doubt a pricey signing, but for the consumer, it may send a rather mixed message.
As the undisputed queen of TV cookery, Delia Smith is a fair choice, no question. Her image has always been quite mumsy, a woman known for her straightforward, fail-safe recipes and her squeaky-clean persona.
Bring in scientific, experimental and off-the-wall chef Heston Blumenthal though and one wonders where Waitrose is going with this.
Owner of The Fat Duck, a three-star Michelin restaurant, there’s no doubt Blumenthal is an accomplished and extremely talented chef (I won’t mention the Little Chef) but, alongside Delia, it's a struggle to see who Waitrose is targeting.
The release says little about what we can expect from the duo, other than sharing their expertise, showcasing recipes and offering tips.
There’s no doubt that celebrity endorsement can work if matched with the right brand. Jamie Oliver is a testament to that with his work for Sainsbury’s.
But a chef such as Nigella Lawson would have been a more appropriate choice, the 'domestic goddess' known for her polished TV persona.
I could be wrong, but let’s see what they come up with.
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A possible reason for Paddington's return to marmalade
3rd March 2010 15:14
Earlier this week, we told how Paddington bear had returned to plugging marmalade, this time on behalf of UK food giant Premier Foods.
The much-loved TV bear had spent the last couple of years peddling Marmite for Unilever and his return to the orange stuff provoked furrowed brows in ad land.
Could this be the reason? Unilever has launched Marmite XO, a "mega-matured, extra-strong version" of the love-it-or-hate-it spread.
Now, Marmite is an acquired taste and perhaps Paddington could not stomach this new line, which is "matured" for at least 28 days.
Grahame Walker, a Marmite "Alchemist" (Unilever's words, not ours) said: "The resultant blend creates an intense sensory experience that can only be appreciated by the most extreme Marmite devotees.”
One can almost imagine Paddington wrinkling his nose at that one.
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All change at Aldi UK - again
2nd March 2010 15:38
Aldi has unveiled the latest management team it hopes will breathe fresh life into its struggling UK business.
The German discount giant has named two managing directors to lead its operations in the UK and Ireland.
Matthew Barnes, a former Aldi executive in Australia, and Roman Heinl, who had overseen the company's business in Switzerland, will both take the helm at the retailer here and across the Irish Sea.
The duo are Aldi's latest attempt to revitalise its business here. Paul Foley quit the business last summer and his replacement, Armin Burger, left the company after just three months.
Little is known about how the two will work but, in the UK at least, they have their work cut out.
Aldi is no longer being talked about in the terms it enjoyed in the second half of 2008, when the media was full of stories about the so-called "Aldi effect".
Competition among the UK's largest food retailers has meant that shoppers, who were lured by Aldi as the country's economy moved into recession, have reverted back to the likes of Tesco and Asda.
And, according to the latest sales data from Kantar Worldpanel, published today (2 March), Aldi has lost market share in the UK, due in part to the Big Four (or Five, if you include The Co-op).
However, Kantar also argues that the weakness of sterling has made Aldi less competitive.
"The weakness of sterling continues to threaten some of the pricing in the German-based retailers and consumers are once again starting to shop there more selectively," the company argued.
With the likes of Tesco and Asda showing signs of not letting up on their battles on price and, notably, loyalty programmes, Aldi will find it tough to win back those pulled in by the "Aldi effect".
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Kettle will give some sparkle to Diamond portfolio
1st March 2010 18:06
Diamond Foods' move to buy premium crisp maker Kettle Foods played a part in driving down the US snack firm's shares on Friday (26 February) amid investor fears over how the acquisition would be funded.
Shares in Diamond dropped 10% as the company uses an equity offering to fund the purchase of Kettle.
However, as our comment piece argued today, Kettle has the potential to add some long-term, branded sparkle to a company that historically has derived most of its revenues from own label.
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Ad land: Mrs Kipling's TV debut; Paddington lured back to marmalade
1st March 2010 14:34
A couple of amusing tales have emerged from ad land today (1 March).
First, TV screens in the UK will soon see what Mrs Kipling looks like in the flesh in a new campaign for Premier Foods' cake brand Mr Kipling.
The Mr Kipling brand is among Premier's five "drive" brands and categories that the UK group believes will drive growth at the company.
Mrs Kipling's identity has, until now, been kept under wraps but the UK's largest food maker is allowing the cake maker's good lady wife make her TV debut to plug its Oatibakes range, which was first launched in January.
Premier, meanwhile, has also lured back Paddington Bear to marmalade after a couple of years of munching on Marmite.
The TV character will from tomorrow be the "face" of the Robertson’s Golden Shred marmalade after a stint plugging the Unilever brand.
Premier said the use of Paddington made "perfect sense" amid the consumer trend for nostalgia. The company is also hoping the signing of Paddington will take its marmalade products to a "younger audience".
Unilever, meanwhile, issued an impish goobye to Paddington as he returned to marmalade.
"We said farewell to Paddington and sent him off on his travels with his suitcase full of Marmite sandwiches," a spokesperson said.
"It seems fitting that a bear as prone to mishaps as Paddington should turn up at Robertson's after developing such a savoury tooth."
One key questions remains, however: did Paddington love Marmite? Or hate it?
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