Food manufacturers and private label retailers are releasing products that play to the “affordable luxury” mindset that strengthened with the economic downturn.  One manifestation is a growing range of upscale condiments that enhance home-cooked meals, something that became more prevalent as consumers cut costs. Examples in this category include the Atlantic & Pacific Tea Co. private-label line, The Food Emporium Trading Co., which includes international specialties, culinary garnishes, ketchup and mustards, and Barhyte Specialty Foods sauces and condiments. A Barhyte Specialty Foods spokesperson notes the growing demand by consumers for condiments with fruitier and spicier flavors.

Walmart has launched a program aimed at providing its customers with healthy and affordable food options that gained the support of First Lady Michelle Obama. The program comes with five key components, namely: reformulation of packaged food items by cutting sodium 25% and added sugars by 10%, and removing all manufactured trans fats; cutting prices of fresh fruits and vegetables; strengthening standards for "front-of-package seal" to help consumers determine healthy food choices; opening stores to serve economically disadvantaged communities that need healthy and affordable foods; and expansion of corporate support for nutrition education campaigns. Walmart’s initiative will have far reaching affects across the US food supply chain In 2010, Walmart launched a $2 billion program to work against hunger by awarding fresh and healthy foods to food banks in the United States. Walmart will also work with the Partnership for a Healthier America to help address the country's obesity problem.

A Mintel study reveals that 44% of grocery shoppers believe that the quality of today's store brands is better than those of five years ago and 39% of respondents who are their households' primary shoppers say they would recommend a private label product. Also, significant majorities — 62% for dairy products; 61% for canned foods; and 56% for household cleaners — believe there are no quality difference between name and store brand products and just 19% say paying more for name brand products is worth it. Mintel says private label manufacturers continue to gain ground by introducing improved, budget-friendly products with enhanced packaging.

Supermarkets across the UK have started using the phrase "meat-free" instead of "vegetarian" on selected products. Marks & Spencer cite the trend among consumers who are more concerned about eating less meat for health benefits and not ethical reasons. Mintel says 6% see themselves as ‘vegetarian’ but 60% say they ‘eat meat-free foods.’ The "Meat-Free Mondays" campaign by Sir Paul McCartney, several popular books, and statements on sustainability by the UN have helped highlight the benefits of eating less meat. M&S will stock their meat-free products alongside products containing meat while Asda retains a separate shelf. 

The drive to cut waste in Britain is gaining momentum as taxes for landfills are up almost 50% in the last two years to about $100 per ton and the European Union requirement to halve all trash sent to landfills comes close to its 2013 deadline. In 2003 and again in 2008, the British government passed legislation to curb the increasing amount of waste sent to landfills. Working with government agencies, companies have made changes to packaging such as reducing boxes and bows on candy. Consumers are also looking critically at the packages in stores as seen when the Lincolnshire County Council, which has seen annual complaints rise from 3 to 100, sued over packaging of luxury meat. The store later reduced the packaging by more than 50 percent. In contrast, the United States Environmental Protection Agency encourages waste reduction but has no federal regulations or taxes.

Japan retail company Seven & I Holdings Co. says it will soon stop selling food products containing the trans fats that have been associated with high cholesterol and health problems like heart disease and hardening of the arteries. The parent company of Seven-Eleven convenience stores and various Japanese supermarkets and department stores, Seven & I says it will speed up efforts to remove trans fats from its own house brand products while asking food suppliers to follow suit. Until now, the company has been promoting products that are lower in trans fats. Japan's Consumer Affairs Agency has issued guidelines that require manufacturers of margarines to show trans-fat contents on product labels.

Quebec-based dairy cooperative Agropur has acquired La Crosse, Wisconsin-based Main Street Ingredients, a manufacturer of functional food ingredients including proteins and stabilizers. The value of the deal was not disclosed. Aside from manufacturing stabilizers, proteins and protein isolates, and dairy products, Main Street Ingredients also provides technical expertise, contract manufacturing services, and manufacturing of private-label products. Brands include Keystone, Capstone, Cornerstone, and Gemstone. Under the terms of the merger agreement, Main Street will continue operating under its own corporate name and the leadership of current president, Bill Schmitz.

The Chicago metropolitan area with its demographically diverse nine million people is seeing an upsurge in growth among all shapes and sizes of food retailers, including organic and other “green” grocery stores, specialty foods stores, independents, discounters like Walmart and big chain supermarkets like Safeway. Whole Foods Market Inc. has opened 10 stores in the Chicago area, while Supervalu unit Jewel-Osco opened a “green” store that boasts eco-friendly features such as a vegetation-covered roof. Walmart plans to open several dozen stores in Chicago. And Dominick’s, part of Safeway Inc., and Jewel-Osco had a total of 248 stores, representing nearly 47 percent of the Chicago market, according to food industry researcher Shelby Publishing Co.

Taking advantage of brand salience and ready-made infrastructure, top Indian retailers like Bharti Walmart and Future Group are increasing sales by reviving old brands that consumers still recall or by relaunching those that have become less popular. Bharti Walmart revived GlaxoSmithKline Consumer Healthcare’s clarified butter Gopikaghee, which gained a huge sales increase and now outsells market leader Verkaghee. It also revived GSKCH’s chocolate-flavored health drink Maltova, which now sells well in its three stores in Punjab, and will continue to look for regional brands that that will help it expand to new markets in other states. Future Group acquired and relaunched Buffalo, a dormant jeans brand that has become one of its fastest growing brands.

The 2010 Zenith Report on Dairy Snacks looks at the global dairy snacks market. It grew 7% in 2009 and Zenith forecasts 6% growth this year. Most dairy snacks are aimed at kids and based on cheese, although some counties are looking at adult options. Two-thirds of 2009 volumes were consumed in the US, with UK the second-largest market. Key brands include Bel’s Babybel and Kraft’s Dairylea, as well as Yoplait yogurt tubes. Private label items have emerged in the markets where dairy snacks are more established. Laura Knight of Zenith International said that increasingly people are seeking convenient snacks that also offer health and nutrition benefits, and dairy snacks are well positioned to deliver this. 

Retailer organic private labels are growing faster than organic brands in the international organic food market, perhaps indicating the future for organic food. In the US, for example, Safeway’s private label, O Organics, launched in 2005, looks set to become the leading brand of organic foods. O Organics has over 300 organic products with sales in excess of $400 million. While in Germany, a drugstore’s private label is the leading brand of organic & natural cosmetics.  Retailers are pushing a price advantage and often their organic products are cheaper than conventional ones.  As private labels increase their share of the organic market organic brands must revise their branding strategies. Green & Black for instance, has positioned itself as an ethical brand, while Organic Valley, in the US, increasingly positions itself as a supporter of family farms and a proponent of sustainability.

As part of its five-year global effort to shrink the company’s environmental footprint, the world’s biggest retail grocer will buy 9 percent of its U.S. produce from local, sustainably-run farms; an increase of 100 percent. Considering that Wal-Mart’s food business represents a large proportion of its $400 million annual sales, this move has significant consequences for U.S. farmers located in states where Wal-Mart operates. To further its sustainability impact, the retail giant plans to evaluate the production and shipping efficiencies of large suppliers and help small (under 50 acres) and mid-size farmers, particularly in emerging economies, to build more ecologically-aware operations. Part of the commitment includes selling $1 billion of produce from one million farms. In addition, Wal-Mart will spend over $1 billion to address spoilage and reduce waste by 10 percent in the U.S., expecting to improve profitability for itself and suppliers, and it has announced sustainable sourcing initiatives for palm oil and beef. Despite reservations from some, experts say that Wal-Mart’s plans will significantly advance local and global sustainability.

Organic sales in the UK rose for 15 consecutive years, only to turn down in 2009, but Mark Price, Managing Director at the retailer Waitrose, says organic food sales are rising once again. Price also indicated that consumers remain cost sensitive. To remain competitive, especially against Tesco, Waitrose offers around 800 promotions a month, with promotions accounting for 18 to 20 percent of store sales.  He also pointed to changing consumer preferences, mentioning that some customers now preferring to shop online, either with purchases delivered or for pick-up at the store.

An enhanced partnership between Metro and Auchan will enable both companies to expand their private label businesses. French retailer Auchan will grant Metro Cash and Carry, the wholesale arm of Metro Group in Germany, access to its private label supplier network. It will also provide insights on quality standards and assortment. The arrangement will enable Metro to obtain better prices and better meet consumer needs. Auchan will benefit from increased purchase volume, enabling it to obtain price discounts, and secure indirect access to additional consumers through Metro’s small independent retailers.

Thanks to research associating beet juice with lower blood pressure and reduced risk of heart disease, sales of beet juice at British supermarket chain Waitrose have risen 82 percent in the past year, surpassing sales growth of orange and other juices. The store also reports that sales of the raw vegetable – it’s known as beetroot in the U.K. – were up 15 percent and sales of prepared beets were up 22 percent. Another study conducted by the University of Exeter found that beet juice increases stamina during exercise. The high nitrate content reduces the amount of oxygen used by muscles, making them work more efficiently. The beet juices sold at Waitrose are all mixed with apple, with beet juice content varying from 79 percent to 90 percent.

The USDA, which contracts with private organizations to inspect and certify organic foods worldwide, has disqualified a private American inspector in China because of conflict of interest issues. The agency said it will send an audit team to China to take a close look at the certification process there. The problem with the disqualified inspector, the Organic Crop Improvement Association, is that it hired employees of a government agency to check state-controlled farms and food processing facilities. The OCIA earlier this year shut down most of its operations. Consumers and organic food retailers have long suspected there were problems with purportedly organic foods imported from China. Whole Foods Market will soon stock only two private label organic items from China, down from 30 two years ago.