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Whole Foods Market (Austin, Texas) will close three East Coast regional kitchens that employ about 500 people. The affected workers in the facilities in Everett, Mass.; Landover, Md.; and metro Atlanta were given 60 days’ notice of the impending closures, which are part of an ongoing consolidation strategy. The company hopes to shift as many of the employees as possible to other jobs. The kitchens – they prepared a variety of ready-to-eat foods – are the last to be shuttered. Similar items are prepared in stores in other areas of the country or are supplied by vendors.
"Whole Foods Closing 3 Regional Kitchens, Trimming 500 Jobs", Austin American-Statesman, January 17, 2017
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A Michelin-honored Malaysian restaurant in Manhattan is serving up a new dessert based on a “spiky, odiferous fruit” known as the durian. The problem with the fruit, found in Southeast Asia, is the smell, which has been compared to rotting garbage and even kerosene. But despite that, several N.Y. restaurants, cafes and bars are adding the fruit to their menus because of its flavor, which is sweet with hints of melon and onion. Salil Mehta, owner of Laut restaurant, says it is like a mix of mango and jackfruit.
"Chefs No Longer Turning Up Their Noses at Pungent Durian", The Wall Street Journal, January 19, 2017
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Grocery retailer Kroger (Cincinnati, Ohio) has contracted with McLane Co., a supply chain services firm, to supply its 787 convenience stores, which include Loaf ‘N Jug, Turkey Hill Minit Market, Tom Thumb, Kwik Shop, and Quik Stop. McLane maintains a cold chain network, an expanded fresh foods program, and category management expertise.
"The Kroger Co. Moves C-Store Business to McLane Co.", Convenience Store, January 26, 2017
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The WPP communications services group will develop multiple marketing and communications for Walgreen Boots Alliance’s retail and wholesale businesses, and its health and beauty brands. WPP will provide traditional and digital advertising, media management, promotion and relationship marketing, and media relations. The group, which is based in London, U.K., will open hub offices in Chicago, London and New York to support Walgreens Boots Alliance and businesses including Walgreens, Boots and Alliance Healthcare businesses.
"Walgreens Boots Alliance and WPP announce global marketing and communications partnership", News release, Walgreens Boots Alliance, January 31, 2017
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Aldi Australia said its marketing director Sam Viney has been appointed to a top marketing position in the retailer's headquarters in Germany. Effective February 2017, Mark Richardson will succeed Viney. Viney used to be the group account director in charge of the Aldi account at advertising agency BMF until he was named marketing director in May 2013.
"Aldi marketing boss Viney exits for top Europe role ", AdNews, January 31, 2017
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A U.S. study that analyzed more than 400 samples of food packaging from 27fast-food restaurants found that much of the paper used was treated with chemicals used in stain-resistant products, firefighting materials, and nonstick cookware. Perfluorinated chemicals (PFC) were found in hamburger and sandwich wrappers, pastry bags, beverage cups and French fry containers. Fluorinated compounds called per- and polyfluoroalkyl substances (PFAS) were found in 56 percent of dessert and bread wrappers, 38 percent of sandwich and burger wrappers and 20 percent of paperboard. According to the researchers, PFC and PFAS get in the bloodstream, stay there and accumulate. “There are diseases that correlate to it, so we really don't want this class of chemicals out there," one scientist said.
"Fluorinated Compounds in U.S. Fast Food Packaging. ", Environmental Science & Technology Letters, February 01, 2017
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A Nielsen survey finds that consumers globally are willing to spend as much as 20 percent more for the quality and performance of premium items in any CPG category. The result of this trend is that premium FMCG products in many countries often outsell less expensive products. For example, between 2012 and 2014, the premium segment grew 21 percent in Southeast Asia, which is more than double the rate of the mainstream and value tiers. Survey respondents indicated that premium doesn’t just mean higher price: only 31 percent said price defined premium. Instead, they said premium signifies exceptional quality and performance.
"Sales of Premium CPG Products Increase around the World", CPG Matters, February 01, 2017
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To stay competitive with Amazon, Walmart is ditching its $49-a-year two-day shipping subscription, dubbed ShippingPass, and replacing it with free shipping for purchases over $35. In doing so, the retailer is acknowledging that free two-day shipping is now the standard in online shopping. The new strategy takes aim at Amazon’s highly successful Prime offer, which offers free two-day shipping for an annual $99 subscription fee. Data from Cowen and Company show that by November 2016, almost half of U.S. Internet users were living in a household with a Prime subscription. Some observers speculate that Walmart’s battle with Amazon will lead to even more tactical moves, such as deep discounting.
"Walmart Challenges Amazon with New Shipping Plan", eMarketer, February 01, 2017
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Sephora launched an email marketing campaign that suggests skincare products based on the results of a designed-for-mobile quiz. Created to help the beauty retailer gather consumer data, the email campaign encourages consumers to answer questions about their skin. Using a mobile device or desktop computer, users who have received an email message from the company can access the quiz to look at products recommended by experts.
"Sephora Clears Up Skincare-Product Choices with New Method of Recommendations", Mobile Marketer, February 02, 2017
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Metro Group said like-for-like sales grew slightly at 0.1 percent in the first quarter of financial year 2016/2017, a solid performance in a market full of challenges. According to the company, EBIT before special items remained at the previous year’s level, reaching €821 million during the quarter. EBIT after special items reached €733 million. In the previous year, the company reported EBIT after special items of €1,240 million, which included income from the sale of Metro Cash & Carry Vietnam. Media-Saturn’s online sales rose more than 25 percent, accounting for over 10 percent of the Metro’s total sales. Delivery sales rose 16.5 percent, accounting for 12.7 percent of total sales, the company said.
"METRO GROUP with stable sales and EBIT development", METRO GROUP, February 03, 2017
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The constituent companies of Royal Ahold Delhaize are embarking on a year-long restructuring program to strengthen their retail grocery brands – Giant Foods, Giant/Martin’s, Stop & Shop, Peapod, Hannaford, and Food Lion – by consolidating business support services while tailoring commercial strategies to local markets and communities. The more localized brand-centric strategies of Ahold USA and Delhaize America will include dedicated resources such as category merchandising, assortment, pricing, promotions, marketing and format teams. The parent company said the restructuring will be completed by early 2018. It also announced that the Stop & Shop New York Metro and Stop & Shop New England divisions will be consolidated.
"Ahold USA and Delhaize America announce plans to further strengthen brands ", News release, Royal Ahold Delhaize, February 06, 2017
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Discount retailer Lidl has dismissed CEO Sven Seidel, replacing him with Dane Jesper Hojer, according to parent company Schwarz Group. Appointed CEO in March 2014, Seidel left the company due to differences over strategy, the company said. Hojer has worked for Lidld for more than a decade and was recently head of the company’s international buying operations.
"Lidl replaces CEO after less than three years", Reuters, February 07, 2017
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Wal-Mart plans to use its resources and strengths as the world’s largest retailer to revive the sales performance and regain market share of its UK business Asda. After Wal-Mart acquired Asda in 1999, the UK retailer performed strongly as the country’s most affordable supermarket. Germany-based discount retailers Aldi and Lidl, which opened in the UK in 1990 and 1994, respectively, grabbed market shares from Asda. Wal-Mart will lend Asda its purchasing strength, which enables it to lower prices and costs.
"Wal-Mart aims to leverage British arm Asda back to health", Reuters, February 08, 2017
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Discount grocery chain Aldi plans to spend $1.6 billion renovating and expanding its 1,300 U.S. stores to accommodate customer demand for modern, convenient shopping with “a focus on fresh items,” including produce, dairy and bakery products. Remodeled stores will have open ceilings, natural lighting and eco-friendly building materials, such as recycled materials, energy-saving refrigeration and LED lighting. The remodeling plan will go forward concurrently with the building of 650 new stores to reach its goal of 2,000 U.S. stores by the end of next year.
"Aldi Unveils $1.6 Billion Nationwide Store Remodel Plan To Enhance Customer Shopping Experience", News release, Aldi Inc., February 08, 2017
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Whole Foods Market, Inc. reported total sales grew 1.9 percent to $4.9 billion for the 16-week first quarter ending January 15, 2017, compared with the same quarter in the previous year. Same-store sales, however, dropped 2.4 percent during the same period. According to the retailer, net income was $95 million, which was 1.9 percent of sales. EBITDA were $360 million, or 7.3 percent of sales, while diluted earnings per share were $0.30. Excluding charges, net income was $123 million, or 2.5 percent of sales, with diluted earnings per share at $0.39. EBITDA was 7.6 percent, with return on invested capital at 12 percent, the company said.
"Whole Foods Market Reports First Quarter Results", Whole Foods, February 08, 2017
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Amazon.com said it will build two new fulfillment centers in California, adding 2,000 jobs for associates who will pick, pack, and ship customer orders. The company did not say when the new centers in Eastvale and Redlands will open, but together they will have nearly two million square feet of storage space. A center being built in Sacramento is expected to open this year. Amazon employs 15,000 associates in California.
"Amazon to Create 2,000 New Full-Time Jobs at Two New California Fulfillment Centers", News release, Amazon.com, February 09, 2017
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Target is expanding its natural beauty care collections by adding more natural beauty brands, including Alaffia, Little Seed Farm, and Nubian Heritage, to the lineup. With millennial consumers showing preference for healthy and natural beauty options, the retailer seeks to position itself as their first choice for affordable natural beauty products. As part of this initiative, Target aims to achieve full ingredient transparency for beauty, personal care, baby care, and household care products by 2020. Target is requiring suppliers to remove toxic and dangerous ingredients, such as phthalates, propylparaben, and butylparaben, from their products.
"Target Boosts Selection of Natural Beauty Products", Women’s Wear Daily, February 10, 2017
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