Marketing Memo: Mega-Food Marketer Kellogg Co. is Launching a Line of Hip, Urban Streetwear as a Way To Earn Some 'Street Cred' From Younger Consumers

Mega-food company and breakfast cereal brand king Kellogg Co. isn't historically known as a hip and edgy brand marketer.

In fact, for decades since it's founding as the conservative food company from Battle Creek, Michigan which specializes in iconic breakfast cereal brands like Kellogg's Corn Flakes, Frosty Flakes, Fruit Loops and Rice Krispies, along with 22 other varieties, it has been a generally conservative and mainstream food product marketer.

However, Kellogg Co. did start moving into the natural foods segment a few years ago. First it acquired the natural foods brands Worthington and Loma Linda, which it still owns. Both are all natural brands of canned and frozen all-natural, vegetarian healthy foods products. Kellogg's has expanded both brands to include additional varieties of both canned vegetarian items and healthy frozen entrees.

A little later Kellogg's acquired the Morningstar Farms brand of healthy and vegetarian frozen and refrigerated entrees, side dishes and breakfast items, which it has grown considerably in the last few years.

The mega-food marketer then followed these acquisitions up by buying the Kashi natural foods brand, which at the time was primarily a line of all-natural and organic cereals with a couple other items like cereal bars under the Kashi brand name.

Kellogg's currently markets six different varieties of Kashi brand cereal, ranging from the original Golean variety to the newer Heart-to-Heart heart-healthy line. There also are energy and breakfast bars and snacks under the Kashi brand, as well as frozen foods items.

Most recently, the $11 billion a year food company acquired two strong natural foods brands: natural and organic Bare Naked Granola, a line of granola-based cereals and Garden Burger, the healthy soy-based line of burgers and related items. Both acquisitions fit perfectly with Kellogg's core natural and organic foods business, which is breakfast cereals and related items and healthy and vegetarian-based meals and breakfast foods.

In many ways the Battle Creek food and cereal maker and marketers' move into the natural foods sector shouldn't be a surprise. Not only is it a smart marketer that has spotted the huge potential of the natural and organic categories, but Kellogg's actually has its roots in making and selling healthy cereal such as All Bran and the original Kellogg's Corn Flakes, which contained no sugar or other artificial sweeteners.

Of course, it then got into sugar-sweet cereals like all of the other major cereal marketers because frankly that was--and to a large degree still is--hot. The company's best-selling cereal brands remain its sugar-filled cereals such as Frost Flakes, Fruit Loops, Frosted Mini Wheats, Apple Jacks and others.

However, even with its key brands the company has been coming out with reduced sugar varieties, as well as bulking up the cereals with more whole grains and fiber in recognition of the healthy eating trend.

Kellogg Co. also is a major maker and marketer of crackers and cookies, including mainstream brands like Keebler, Sunshine and Austin, specialty brands like Carrs and Famous Amos, and natural brands under the Kashi label.

The company also markets high sugar content snack items like Kellogg's Pop Tarts and Kellogg's Rice Krispy Treats, but also offers health snack items like Kashi granola and cereal bars and Stretch Island Fruit Leathers, which is another natural foods company it acquired.

Lastly, Kellogg's has extended its brands into a mainstream line of products it calls its specialty channel offerings. These items include Kellogg's Graham Cracker Pie Crust, Keebler Ice Cream Cones and a handful of other items.

Kellogg's gets hip with new line of urban streetwear

The purpose of the brief history above of Kellogg Co., from conservative mainstream food product and breakfast cereal marketer to a more diversified food company which is increasingly looking to the natural and organic foods categories for new growth and sales, is simply to show an evolution in the development of the mega food company, including growth in the natural channel via acquisitions.

With that diversification, as well as general changes in the culture and spirit of the times over the years, Kellogg's has decided it needs to create a bit more edgy and hip image for its brands.

As a way to do this, the company has launched a line of Kellogg-branded "urban design" apparel in partnership with the popular urban clothing design company Under the Hood. "Under the Hood" is one of the hottest new lines of clothing to hit the market, and has an urban streetwear, hip-hop style to its designs.

The Kellogg's-branded items in the line include: Kellogg's Corn Flakes-logo hip T-Shirts and pants; Fruit Loops-branded pants with the famous Fruit Loops' parrot logo on the pants' pockets, along with Fruit Loop T-shirts; Tony the Tiger Kellogg's Frosted Flakes emblazoned T-shirts, jackets and sweat pants; Honey Smacks cereal Jeans and Shirts; Jackets, pants and shirts featuring the famous Keebler Elves and other branded clothing items. Items also include shoes and "hoodies," the trendy and popular light jackets worn by young men and woman.

The Kellogg's-branded urban wear apparel line created and produced by Under the Hood is designed to appeal to young, hip kids and young adults. And, since that is the super-popular "Under the Hood" clothing companies target market--the line should do very well.

The hip street wear also is designed to strengthen sales of Kellogg's cereal and other food products among the younger demographic, as well as to help create a more hip and edgy image withing this target market for the brands.

Since the urban-style and hip hop scene which goes with it appeals to young people of all races, along with the fact that suburban youth love it as much as urban residents, the Kellogg's-branded apparel should reach a wide target audience.

The idea is to mesh a person's lifestyle with what one eats. It's sociographics mixed with psychographics, along with identity marketing.

We expect the hip streetwear line to do well because of the association with Under the Hood, which is such a hot clothing company and line right now many of its items are back ordered by consumers.

We also expect to see lots of cross-marketing by Kellogg's of its cereals and the branded urban streetwear clothing items. For example, offers on the back of cereal and snack foods item packages, in-store point-of-sale displays, giveaways and media advertising in hip publications targeted to the same demographic as Under the Hood's clothes are.

In terms of the quality of the Kellogg's-branded streetwear from Under the Hood, we recently talked to a 16 year old who bought a Tony the Tiger T-shirt, Jacket and pair of black sweat pants with Tony embossed on all three items of clothing. His comment when we asked how he liked the three items of Kellogg's-branded streetwear? He said, mimicking Tony the Tiger..."There Grrreat!

Tuesday Talking Points Memo

A Big Week for Natural Products Company Acquisitions

Are industry giants Kellogg and Clorox igniting a new round of deals? We offer analysis and what we think is coming up for the rest of this year and next.

Food industry powerhouse Kellogg Co. reported today it agreed to buy two natural foods companies: Irvine, California-based Wholesome & Hearty Foods Co., parent company of Gardenburger, and Norwalk, Connecticut-based Bear Naked, makers of the top-selling brand of granola in natural foods stores, and the no. 2 selling granola brand in supermarkets.

Kellogg Co. said it paid about $122 million for the two companies. Wholesome & Hearty Co. had sales this year of about $47 million, and according to analysts, has been experiencing some serious financial problems. For example, in 1997 the Gardenburger brand had sales of about $100 million, more than half of its current annual sales. Kellogg Co. has annual sales of $11 billion.

Natural granola maker Bear Naked is a different story however. Analysts predict the company will have sales of about $20 million this year, up a whopping 160% from 2006. Bear Naked is only four years old. The company was launched in 2002 by two 23 year olds, Kelly Flaley and Brendon Synnott, who are counting their Kellogg Co. cash this afternoon. In addition to granola, Bear Naked markets oatmeal, cereals and trail mix.

In another deal, Oakland, California-based consumer packaged goods company Clorox said last week it's acquiring natural products company Burt's Bees for $925 million. The popular Durham, North Carolina-based natural personal care manufacturer expanded its products from natural foods stores into the mass market beginning in 2003 and had sales this year of $170 million.

Although Burt's Bees is a much older natural products company than Bare Naked, the company has interesting entrepreneurial roots as well. It was founded in 1984 by beekeeper Burt Shavitz and waitress Roxanne Quimbly, to initially market Shavitz's handmade beeswax candles. It branched out, adding soap, perfume and lip balm to its product offerings. By 2003 Burt's Bees was a multi-line natural personal care company with sales of $55 million.

In 1999 Ms. Quimbly bought out Shavitz's half of the company. She then turned around in 2003 and sold 80% of Burt's Bees to investment firm AEA Investors for $155 million. AEA expanded the natural product lines to supermarkets, mass merchandisers and other retail formats from its primarily natural food store base, and in four years grew the company's sales to today's $170 million. Clorox paid close to $1 billion for the company, demonstrating the promise for growth the company sees in Burt's Bees.

Burt's Bees is the first natural products industry acquisition for Clorox, marketers of such mass market brands as Clorox Bleach, Fresh Step Cat Litter, Glad Plastic Bags, Kingsford Charcoal Briquets, Hidden Valley Ranch Salad Dressing, KC Masterpiece BBQ Sauce, Brita Water Filters, and a number of other household cleaning, food and consumer products brands.

Clorox has been moving into the "green" or environmental market recently. It's launched a major marketing and PR campaign for its Brita home water filtration system, joining up with activist groups and others who are against the environmental aspects of bottled water. Clorox has been an active part of this coalition, which argues that plastic bottled water bottles are creating a huge environmental mess. This "bottled water backlash" is a well organized campaign, with members ranging from environmental groups to city officials and companies like Clorox, which wants people to buy and use its Brita system at home on their water taps rather than buy bottled water.

Clorox also has been researching the green cleaning and personal care products market at its large research facility in Oakland. One result of this research is that the company will launch a biodegradable, plant-based cleaning line named Green Works in September, 2008. This new line gets the company into the fast-growing green or environmental segment of the household cleaning products category. The Burt's Bees acquisition will position Clorox in the booming natural personal care products category as well as a major player.

Our Analysis

These two back-to-back acquisitions of three natural products companies by two major international consumer packaged goods companies isn't surprising. Although there has been a bit of a slow-down in such acquisitions over the last couple years, that slow down was more due to mass market companies not being able to find suitable natural products acquisition opportunities rather than any lack of desire on their part to buy them.

The two acquisitions, Wholesome & Hearty and Bare Naked, fit Kellogg Co.'s core business very well. They're small brands in terms of sales by Kellogg's standards but the company sees huge growth opportunities domestically and internationally in the mass retail market for both brands. Kellogg also has the international distribution network which will allow the company to rollout the brands into the mass market relatively rapidly. It also has the budget to be able to promote the brands in print and broadcast media, something the former owners couldn't afford to do.

Kellogg Co. isn't new to acquiring smaller natural foods companies and brands. It acquired the Kashi cereal brand some years ago for example and has expanded it from its primarily natural food store base when it bought the brand, to supermarkets, mass merchandisers and even drug stores, today. Kellogg Co. also has acquired--and grown--the Morningstar Farms, Worthington and Loma Linda vegetarian foods brands.

More Acquisitions: What We See Coming

Natural and organic product company acquisitions by large consumer packaged goods and food companies have had two spikes in the last decade. The first was from 1997 to about 2002. A major reason for this spate of activity was do to the fact that the U.S. federal government passed the draft USDA organic standards in 1997. This brought smaller natural and organic product companies to the forefront of many large packaged goods and food company executives. Additionally, in 2002 those draft standards were implemented as federal law, creating a second wave of such acquisitions until about 2005.

The chart above shows many of the major acquisitions of organic products companies by major food and consumer packaged goods companies over the last ten years. The chart was created in July, 2007 by Dr Phil Howard, professor at the University of Missouri. The charts depicts only organic product company acquisitions, and not natural product, but it provides a pretty good overview of the landscape none the less. (You can view a larger version of the chart here.

From 2005 to the present, acquisition activity has been fairly slow. We believe that's about to change. We see the Kellogg Co. and Clorox acquisitions as not mere aberrations. Rather, we see these purchases as the beginning of a new spate of large mass market acquisitions of natural products companies. The mood was set in part earlier this year with the Whole Foods acquisition of Wild Oats and the sale of specialty foods distributor Millbrook to natural products distributor United Natural Foods, Inc. Although one is a retail acquisition and the other a distributor, both are major natural products industry players. They lubricated the acquisition wheels in the industry as a whole, if you will allow that mixed metaphor.

Whats next? We know of a number of large food and packaged goods companies that currently are looking hard for natural products company acquisition targets in the natural and organic foods categories and the natural and organic personal care and household cleaning categories. We also know of a number of natural products companies that are looking to be bought if the deal is right. It takes two to tango.

For example, in the food sector, Heinz, General Mills and Kraft (in addition to Kellogg) are all very interested in buying smaller natural and organic foods companies that fit their strategies. All three of these companies already own numerous natural and organic foods brands and have made major commitments to the category.

Clorox Co. isn't alone in wanting to get into the natural cleaning products and personal care markets either. Colgate, Kimberly Clark, Proctor & Gamble and a few others are all launching major green efforts and plan on developing (and likely acquiring) new green product lines for what their research shows them is the key emerging market in both categories. In many cases it's much easier for these companies to buy a small natural products company and then grow it through their vast distribution resources than it is to create a brand from the ground-up. Such acquisitions also are good ways to get a quick education in the category as a way to speed-up the learning curve so these huge companies can then start producing their own brands internally.

We don't have a crystal ball, nor are we in the business of predicting. However, we are fairly good at reading trends, based on observation and solid research. What we believe therefore is that these current acquisitions by Kellogg and Clorox will usher in a period of more active acquisitions of natural products companies by major international and national food and consumer packaged goods companies.

This buyout activity won't be overly dramatic for the rest of 2007, as we're entering the Thanksgiving and Christmas holiday season, a time when deal-making of any kind tends to fall off to hear-nothing. However, barring a serious recession or other similar global or U.S. economic meltdown, we see 2008 as being a year in which--like the Kellogg and Clorox deals this week--more large, mass market consumer packaged goods companies gobble-up smaller, natural products companies, as they increasingly realize the significance that the fast-growing natural and organic categories can have to the futures of their companies' success.

Supply-Side Memo: A 'Bare-Naked' Success Story

Bryndon Synnott and Kelly Flately outside Stew Leonards' in Norwalk, Connecticut. (Photo: courtesy Bare Naked, Inc.)

Early one morning about five years ago, famed independent grocer Stew Leonard Jr., founder and president of the Stew Leonard's chain of superstores, came upon two young people--Brendan Synnott and Kelly Flately--waiting for him in the lobby of his Stew Leonard's Dairy store in Norwalk, Connecticut. The pair were holding a serving tray, which contained their Bare Naked brand granola, milk and a banana. They were waiting in the lobby to catch Leonard and pitch him on their homemade granola.

Leonard tasted the granola and loved it, talked briefly to the two young entrepreneurs, and ordered 20 cases of the hand-baked granola created by Kelly Flately for his store.

As mentioned, that was just five years ago. Late last year, Synnott and Flately sold their company, Bare Naked, to the Kashi division of food industry giant Kellogg Company in a $122 million dollar deal that also included Kellogg's purchase of natural foods company Gardenburger, which shared an investor with Bare Naked. Bare Naked is the number 1 selling granola brand in natural foods stores, and the number 2 selling brand in supermarkets.

In an article in today's New York Times, Stew Leonard says when he heard the two granola empire builders had sold Bare Naked to Kellogg's, and made bank on the deal, he was thrilled.

Just five years ago when the pair of struggling entrepreneurs got that 20 case order from Mr. Leonard, they had to spend the entire night baking enough granola just to fill the order. Just five years later, when they sold Bare Naked to Kellogg's last year, the company had sales of $65 million, and was growing by double-digits annually.

As the Times' piece explains, the company became a local success story in Fairfield County, Connecticut. This is do in large part to the way the pair marketed their granola products: lots of personal product sampling in local grocery stores, word of mouth advertising, community-event support, and using humor to create their brand, first among the locals and then nationally.

That humorous, fun approach has been key to the company's success. For example, there's a huge sign outside their corporate headquarters building in Norwalk, that reads: "Do You Get Bear Naked?" Additionally, their website is packed with puns on the "Bare Naked" name, such as "Get Bear Naked" and "Live Bear Naked." They also sell "Bare Naked Gear" like 100% percent organic cotton "Live Bear Naked" Tee-Shirts and similar themed items like hats and sweatshirts.

By using local and community marketing techniques, as well as having a quality product, Bare Naked has built up much support in the towns where they make their granola and have their headquarters.

Of course, with the sale to Kellogg's there's a bittersweet taste in the mouth's of many locals (and it isn't from eating Bare Naked Granola), who've followed the pair's story and route to success. However, any bittersweet feelings about losing the company headquarters and the 90 jobs that go with it (Kellogg's plans to close the production facility), pale compared to the abundance of good will expressed locally for the two and their success.

For Kelley Flately, who created the granola, and Brendan Synnott, the marketing and sales chief who gained its distribution, there's some uncertainty as to what the future will hold for both of them as well. Both are under contract with Kellogg's until February 1 as part of the buyout deal, according to the Times' story. After that, they're on their own.

We aren't worried about them though. They should have enough Kellogg's money to put a roof over their heads for a bit while they figure out their next venture. There are second acts for entrepreneurs, especially for those who aren't afraid to work hard and get "Bare Naked" in the process.

Read the New York Times story by Jan Ellen Spiegel here.

Marketing Memo: Search Marketing is a Growing and Key Part of the Marketing Arsenal; Offers Great Opportunity For Natural~Specialty Foods Companies

Yesterday we wrote about how using social media Web sites offers the perfect opportunity for natural and specialty foods suppliers, marketers and retailers to interactively market their brands to consumers by communicating their company and brand message through various means in an online social and conversational environment -- the online social media site such as Facebook, MySpace, Twitter and others.

The Internet and Web offer players in all sectors of the natural and specialty foods industry additional opportunities along with the use of social media sites for communications and ultimately brand building uses.

Although it does require a small marketing budget because it is paid advertising, unlike social media sites, which have no cost to use, search marketing, using sites such as Google and Yahoo, also is an excellent means (and virtually untapped) for natural and specialty foods suppliers, marketers, brokers and retailers to create high impact, low cost marketing campaigns.

A chief advantage of search marketing is the ability to target your message using various search terms. It's niche marketing that reaches anybody who searches a topic related to your brand or product.

Big consumer packages goods companies like Coca-Cola, ConAgra and Kellogg have discovered the power of search, and each are using it extensively.

Coke, ConAgra and Kellogg all are players in the natural and specialty foods categories as well. Coke owns the Vitamin Water and related brands, ConAgra markets organic packaged goods products under different brands, and Kellogg is a major player in the natural breakfast cereal and snack categories.

The marketing publication Brandweek reports Coca-Cola has set up a marketing campaign on Google and Yahoo in which each time a user types in the search terms "Coke," Diet Coke," "Sprite," "Vitamin Water" or any other brand marketed by the beverage giant, the phrase "My Coke Rewards" comes up at the top of the search list as on of the options.

My Coke Rewards is the company's consumer loyalty marketing program. Coke's using it on the search engines makes thousands more consumers aware of the program compared to if the loyalty scheme was only advertised in traditional media and in-store.

This week Kellogg is using search to help kick off its new RiceKrispies.com Web site, which promotes the food company's Rice Krispies brand cereal.

Because Halloween (October 31) is such a big sales period for Rice Krispies (people make the famous Rice Krispies marshmallow snack treats for Halloween) Kellogg has bought search words like "Halloween" and "Recipe" on the Google and Yahoo search engines. When userers (read potential Rice Krispies' customers) types in these search terms and others, the RiceKrispies.com Web site comes to the top of the search answers list.

ConAgra has gotten into search marketing in a big way as well. The food company has bought up scores of search terms related to its brands and products, including "great tasting recipe" and "easy-to-prepare." Type those (and numerous others) search terms in Google.com and at or near the top of the results will be information about various ConAgra brands, recipes features the company's products and related brand information, according to Brandweek.

The use of search marketing by consumer packaged goods companies is expected to grow about 30% to $594 million by 2012, according to recent research by Forrester Research, Cambridge, Mass.

Additionally, both Google and Yahoo say the use of search marketing by consumer packaged goods companies is one of their respective fastest growing categories.

Search marketing and the natural and specialty foods industry

Search marketing using Google or Yahoo or other search engines offers numerous pluses for natural and specialty foods companies.

First, the cost of entry is low. Companies can get into search using a few key search terms to start for very little money. It's far less of a cost than producing a four-color brochure, for example.

Additionally, make this comparison. Natural and specialty foods suppliers/marketers often use in-store food sampling demos as a major aspect of their marketing and promotional campaigns. Doing a demo at just one store can run $100 or more today. That means if you do demos at 20 stores the cost would be about $2,000-$3,000 If you reach 1,500 consumers at those 20 stores that's considered a pretty successful conclusion.

However, from the standpoint of return on investment (ROI) reaching 1,500 consumers with a brand message for $2,000-$3,000 isn't great. It's true their is a certain qualitative aspect to in-store demos in that you get your product tasted. However the ROI is low.

By comparison, for $2,000-$3,000 a company can get into search marketing in a substantial way to start, including buying numerous search words or terms. And instead of reaching just $1,500 consumers with the investment, tens of thousands of consumers can be reached.

We aren't suggesting search marketing as a substitute for in-store demos per se -- although in these lean times it isn't something we advocate much . Rather we are suggesting search marketing can leverage a brand message in terms of ROI far more than a promotional tactic such as an in-store demo can.

Second, search marketing has a very good return on investment (ROI), as we mentioned above In fact it offers one of the biggest bangs for the marketing bucks currently available.

This is true not only compared to in-store demos but compared to numerous other marketing tactics as well, especially within the paid advertising segment.

Lastly, Search is a trusted tool for consumers. And consumers are increasingly turning to sites like Google and Yahoo to look up recipes, types of foods and other related information. Embedding your brand message within search offers not just an advertising message but also an informational one. food products and search go together well.

For example, say a user is looking to make some treats for the kids' Halloween party. She goes to Google, types in "Halloween treat recipes," and among the thousands of search results that come up there's Kelloggs Rice Krispies Treats right at the top, including the recipe. She sees this result, thinks about how her mother always made the marshmallow treats for Halloween, and makes a note to do so herself, adding Rice Krispies to her grocery list.

Such can be the power of search for consumer packaged goods companies of all sizes.

Search marketing is perfect for companies producing and marketing natural and organic food products since so many consumers are using search sites to research healthier food options.

For example, "organic foods" is one of the top search terms on Google and Yahoo. So is "food allergies."

The same is the case in the specialty foods segment. Consumers increasingly are using search sites to look for recipes including premium ingredients and products.

For example, let's say you produce and market a unique product such as a Key Lime cookies. We bet there are thousands of Key Lime cookie lovers out there who actually use Google or Yahoo to search the term in order to find out what's out there in Key Lime cookie world. A company that makes the cookies can buy a dozen or so related search terms for very little money and get a major impact, which also is measurable, using Google or Yahoo search. It's a specialty advertising for a niche, specialty product.

For natural and specialty foods manufacturers, marketers and even retailers that aren't using search marketing we suggest you look into it. It's not only fast growing but also becoming among the most powerful ways to reach consumers with a targeted message. It's also a level playing field. You need not be a Coke, Kellogg or ConAgra to get into search marketing. It's cost of entry is low and it potential impact as a marketing tool is high.

The List: Food, Grocery, Beverage & Related Companies Donating to Earthquake Relief Efforts in Haiti

Last Update: January 21, 2010 - 10:55 pm eastern - 07:55 pm pacific

The earthquake that stuck the island nation of Haiti on Tuesday is one of the most devastating natural disasters in recent times.

The U.N., United States and other nations are rushing to the country's aid with money and human resources, as are key non-governmental agencies (NGO's) like the Red Cross, Salvation Army, Doctors Without Borders and many others.

Right now the biggest need for these key agencies is cash in the form of donations. This is particularly the case with the Red Cross, which is serving as the lead NGO in Haiti as it regularly does globally in such disasters.

Our beat is food - the global food and grocery industry, along with all related topics.

In this post we will keep a running count of all the food-grocery companies - retailers, food-makers, marketers and others - throughout the world we can find that are making donations of any type to Haiti relief, along with listing any types of fund-raising programs these companies and their employees are doing.

The Natural~Specialty Foods Memo List is regularly updated as we learn about new efforts.

Also follow our Twitter feed - www.twitter.com/NSFoodsMemo - for real-time updates on food-grocery companies donating to the relief efforts in Haiti.

As individuals, one simple way you can contribute to Red Cross Haiti assistance efforts is by simply texting "HAITI" to 90999 on your mobile phone. Doing so will result in a donation of $10 to be charged to your cell phone bill.

Donations to the Red Cross can also be made here (American Red Cross) or here (International Red Cross).

Numerous other NGO's and non-profits are also seeking donations for their respective earthquake relief efforts.

Some Information, resources, and ways you can help survivors of the Haiti earthquake.

The Natural~Specialty Foods Memo List

Food-grocery retailers of all formats

1. Walmart Stores, Inc., the largest retailer in the U.S. and the world, has donated $500,00 to Haiti earthquake relief efforts so far - $400,000 in cash to the Red Cross and $100,000 worth of pre-packaged food kits donated at the request of the Mexican Red Cross for Haiti.

Walmart also has set up a special Web site here where its employees and others can make individual donations to the relief efforts. Walmart also said on Wednesday (January 13) that it is working on an addition support plan for Haiti. Read about it here and here.

Update: Friday, January 15: Below are some of the additional efforts Walmart has made since Wednesday, January 13:

>Walmart Canada announced a campaign to raise money for Haiti disaster relief, starting with a $100,000 contribution from the company to the Canadian Red Cross.

>Walmart Puerto Rico made a donation of $25,000 to the Puerto Rico chapter of the American Red Cross and launched a campaign to encourage customers to contribute the change from their store purchases to benefit disaster victims.

>Walmart Argentina also announced a $25,000 contribution today to the Red Cross in that country.

>Walmart operations in Canada, Puerto Rico, Mexico, and Chile have launched fund-raising campaigns to benefit disaster victims.

2. Florida-based grocery chain Publix has donated $100,000 to Haiti relief. The supermarket chain has also launched a donation campaign in all of its Florida stores, where shoppers can make cash donations to help the victims of the 7.0 magnitude earthquake. Link: http://tinyurl.com/yz5w9rq

3. Food, grocery and general merchandise retailer Target just announced it will donate $500,000 to earthquake relief efforts in Haiti. More here. In addition to the cash donation, Target stores volunteers are working in partnership with students from The Fair School in Minneapolis, Minn. and ImpactLives, a local non-profit organization, to prepare more than one million meals to send to Haitian earthquake victims.

4. Pleasanton, California-based Safeway Stores, Inc. is making an initial $100,000 donation to the American Red Cross and UNICEF, two organizations at the forefront of the earthquake disaster relief mission in Haiti. More here. In addition, Safeway has launched a company-wide fundraising program to help Haiti. The company’s 1,730 stores throughout the U.S. and Canada will immediately begin collecting donations for Haiti disaster relief through a checkstand donation program, says Safeway CEO Steve Burd. Further, Safeway’s corporate offices and other non-store facilities will also conduct employee fundraisers so the company’s entire workforce can contribute to helping the people of Haiti recover from the earthquake, Burd says.

5. Online consumer packaged goods-consumer products retailer and multi-level marketer Away is donating $100,000 to disaster relief efforts in Haiti, as well as matching contributions its employees and distributors make through its Web site here. Among the products Amway sells include natural-organic-health food and beverage items, vitamins and nutritional supplements.

6. Toy, game and kids' products (and yes food and grocery) retailer Toys "R" Us, through its Toys"R"Us Children's Fund, is making a $150,000 donation to help the non-profit Save the Children organization in its efforts to provide relief to victims of the 7.0 magnitude earthquake that struck Haiti's capital of Port-au-Prince on Tuesday. More here . [Learn about what 'Save the Children' is doing, and the help it needs, in Haiti here .] And yes - Toys "R" Us qualifies as a 'food and grocery' retailer." Read our May 5, 2009 story here.

7. Mega-online retailer Amazon.com, which sells an extensive selection of food, grocery and non-foods packaged goods, has established/placed a box on its main Web Site homepage where customers can contribute to the international relief efforts for the survivors of the 7.0 magnitude earthquake in Haiti. See details here. All customer donations go to the charity Mercy Corps, which is assisting on the ground in Haiti.

8. Pennsylvania USA-based supermarket chain Weis Markets Inc. will begin collecting donations on behalf of the American Red Cross' Haiti Relief and Development Fund in its 165 stores in Pennsylvania, Maryland, New York, New Jersey and West Virginia on Friday, January 15. Starting tomorrow, customers can donate the amount they wish by adding to their grocery bill at check out or at the stores' courtesy desks, says company president and CEO David J. Hepfinger.

9. Jacksonville, Florida-based supermarket chain Winn-Dixie announced today it is launching its "Neighbors Helping Neighbors" program in all of its 514 stores to help support the American Red Cross disaster relief efforts in Haiti. "Neighbors Helping Neighbors" allows Winn-Dixie customers to donate to the Red Cross by simply indicating the amount of their choosing (between 50 cents and $500) at the cash register, says Mary Kellmanson, group vice president of marketing for the grocery chain. Additionally, the Winn-Dixie Foundation and the Western Union Foundation have partnered to donate $200,000 to the American Red Cross International Response Fund. See here.

10. Seattle, Washington-based PCC Natural Markets (@PCC on Twitter.com), the largest natural foods retail cooperative in the United States, has made a $25,000 donation to the American Red Cross for the benefit of relief efforts in Haiti following the earthquake that has devastated that country. “The magnitude of food, health care and infrastructure support needed by victims of this disaster is overwhelming,” says Tracy Wolpert, PCC’s CEO. “We are pleased to contribute to the recovery efforts being coordinated by the American Red Cross." See more here.

11. United Kingdom-based Tesco, Britain's leading food retailer and the fourth-largest overall retailer in the world, has donated ~50,000 pounds ($81,645 in U.S. dollars) to the British Red Cross to be used for the agency's relief efforts in Haiti. See here. Tesco also owns and operates 135 Fresh & Easy Neighborhood Market food stores in California, Nevada and Arizona USA.

12. Kroger Co. announced today (01/19/2010)) it has donated $250,000 through its The Kroger Foundation to the American Red Cross for its Haiti relief efforts. Read more here.

The Kroger Co.-owned and Los Angeles, California-based Ralphs/Food 4 Less grocery chain announced today (01/14/2010) that their stores will accept donations from customers to support the Red Cross' Haitian earthquake relief efforts. The supermarket chains are establishing collection points in all of their Ralphs stores in Southern California, Food 4 Less stores in Southern California, Las Vegas, Illinois and Indiana, and Foods Co stores in Central and Northern California where customers can make cash donations. Donations will be accepted beginning today through January 30, 2010 with all funds collected going directly to the American Red Cross for its Haitian earthquake relief efforts. More here.

Additionally, Kroger Co.-0wned chains Dillons, Fred Meyer, Fry’s, King Soopers, QFC and Smith’s Food & Drug are all conducting in-store collection drives similar to what its Ralphs/Food 4 Less chain is doing., Kroger C0. also announced today (01/19/2010) all of its stores have thus far raised $600,000 in donations for the Red Cross, and that the company expects the total donations to be more than $1 million by the time the drives are completed. The $600,000 in customer contributions is in addition to the $250,000 donation Kroger made to the Red Cross.

13. North Carolina-based supermarket chain Harris Tweeter Inc. is donating $25,000 to the American Red Cross for the organizations Haiti relief efforts. Additionally, the grocery chain has launched a chain-wide fundraising drive to aid victims of the earthquake in Haiti. The grocer is selling $1 and $5 earthquake relief cards to customers at all of its 194 stores. The cards can be purchased through Jan. 31. Harris Teeter says customers donated more than $66,784 during the first day of the campaign. More here.

14. The eastern U.S.-based Stop & Shop Supermarket chain announced today that along with its sister supermarkets it will donate $100,000 to the American Red Cross International Response Fund. Additionally, beginning on Saturday, January, 16th and continuing through January 31st, it will be collecting donations in all stores and corporate offices for the Victims of the Haiti earthquake on behalf of the American Red Cross International Response Fund. More here.

15. The Rite Aid drug chain announced today that it's making a $50,000 donation through its Rite Aid Foundation to the American Red Cross International Response Fund to help the victims, families and communities affected by the earthquake in Haiti. The retailer also announced that it will launch a customer and associate fundraising program next week to aid earthquake relief efforts. Customers will be able to donate funds by purchasing $1 disaster relief certificates at any Rite Aid store across the United States. Rite Aid sells a selection of food, grocery and related packaged goods products in its stores. More here.

16. Walgreens, the largest drug chain in the U.S., announced today it's donating $100,000 to the American Red Cross in response to the devastating 7.0 magnitude earthquake that struck Haiti this Tuesday. In addition, the retailer will also match employee donations–dollar for dollar–up to $50,000. Further, Walgreens is providing non-perishable food, water and medical supplies to the University of Miami Global Institute for Community Health and Development which has set up clinics and triage units on the streets of Port-au-Prince, the largest city in Haiti, just miles from the epicenter of the quake. Walgreens stores in the Miami area are also taking donations for local Red Cross relief efforts on the ground in Port-au-Prince. Walgreens sells a selection of packaged and perishable foods, grocery products and related goods in its 7,159 drug stores, which are located in all 50 U.S. states. More here.

01/21/2010 Walgreens said today that just days into offering customers the option to make donations to Haiti disaster relief efforts at its registers, its stores across the country have collected more than $1 million. Contributions are helping the American Red Cross Haiti Relief and Development Fund send much needed assistance and aid to those affected by last week’s earthquake. Walgreens stores will continue taking customer donations through the end of the month. More here.

17. Modesto, California-based Save Mart Supermarkets has launched a fundraising drive in all 259 of its Save Mart; SMart Foods, Lucky and FoodMaxx banner stores in Northern California and California's Central Valley region for Haiti relief. The grocer's chainwide fund drive runs until February 1, 2010.

18. Natural and organic food retailer Whole Foods Market Inc. announced today that its 289 stores in the U.S., Canada and the United Kingdom have set up an easy way for shoppers to make donations to help the people of Haiti who have been devastated by the recent earthquake. Shoppers can give any amount at the checkouts at its 289 stores to directly support several different relief organizations, the grocer said today. In addition, the company has created a special “Haitian Fund” to support Whole Foods Market Team Members who have been affected by the earthquake. “We have many Team Members from Haiti, and together we are supporting them by taking these steps,” said Walter Robb, co-president and chief operating officer at Whole Foods Market. “We’re also setting up donation boxes in employee areas in stores, facilities and offices.” More here.

01/20/2010: Whole Foods Market, Inc. announced today that its customers at 289 stores in the U.S., Canada and the U.K. have donated $1 million to several relief efforts in Haiti since January 14. Additionally, through its Whole Planet Foundation, Whole Foods Market said today it is doubling its original commitment to now provide $1 million to its on-the-ground microlending partner in Haiti, Fonkoze. More here.

Here are two examples of what all or most of the 289 Whole Foods Market stores are doing: (1) The Whole Foods Market store in West Hollywood, California [ here on Facebook] is collecting donations to help provide medical aid to survivors of the earthquake in Haiti. All donations will go to the organization AmeriCares to aid it in its work in Haiti. AmeriCares is a non-profit global health and disaster relief aid organization, which delivers medicines, medical supplies and aid to people in crisis around the world. (2) The Whole Foods Market store in Walnut Creek, California [here and here] has started a 'Haiti Earthquake Fund Relief Drive' in the store. Here's how they describe it: Please join us in our efforts to help the people of Haiti by making a donation today! Simply tell your cashier which amount ($2, $5, $10) you would like to add to your bill. All donations will go directly to The American Red Cross Earthquake Relief for Haiti... Thank you.

19. Two-store Jacksonville, Florida-based independent natural and organic foods grocer Native Sun Natural Foods Market has launched a customer fundraising drive in its stores to aid the victims of the earthquake in Haiti. The retailer has set up cash donation boxes at every checkstand in its two locations (11030 Bay Meadows Road and 10000 San Jose Blvd in Jacksonville). Customers paying with a credit or debit card can also donate by asking their cashier to add a $1 or $5 donation to their total purchase, the natural grocer says. Collections will be taken through Jan. 31. More here.

20. The Sacramento, California-based Raley's Family of Fine Foods supermarket chain has launched an in-store fund drive for Haiti relief efforts. "Customers can give to Haitian earthquake relief during their stop at the grocery store, and know that 100% of their donations are going directly to the International Response Fund through the American Red Cross to help the devastated area," Raley's said. The chain has set up checkstand collection boxes in all its 134 Raley’s, Bel Air, Nob Hill Foods and Food Source banner stores in Northern California. The checkstand donation program runs January 16 through February 13, 2010. Raley's is paying for all administrative costs, it says, and 100% of the donations will go directly to the International Response Fund through the American Red Cross to help the devastated area. More here.

21. Family-owned Portland, Oregon-based grocer New Seasons Market has launched a checkstand-based fundraising campaign for the victims of the earthquake in Haiti in its nine Oregon stores. All donations collected in the stores will be donated to MercyCorps, a non-profit organization that has launched a major aid effort in Haiti. Learn more about the organization here. New Seasons Market also announced today (January 16) that it will match dollar-for-dollar the first $10,000 of donations made by customers in its stores.

22. The St. Louis, Missouri-based Dierbergs supermarket chain is conducting a checkout donation fundraiser in all 24 of its stores in the state. Shoppers can have whatever amount of money donated to Haiti relief efforts by simply adding it (rounding up) to their grocery bill total at checkout. All donations go to the American Red Cross. More here and here.

23. Omaha, Nebraska-based Baker's Supermarkets, which is owned by Kroger Co., has teamed up with the local television station, KETV, in Omaha to raise money for the American Red Cross' relief efforts for Hiati. Shoppers can make donations at the checkstands in all the the chain's stores. Customers can either make a cash donation or “round-up” their grocery bills as they go through the check-out. The fundraiser started on January 15 and runs until January 30, 2010. More here and here.

24. 180-store supermarket chain Giant Food of Landover, Md. today (January 15, 2010) announced that along with its sister supermarkets, it will donate $100,000 to the American Red Cross International Response Fund. In addition, beginning Saturday, January 16 and continuing through January 31, Giant Food of Landover, Md. will collect donations in all 180 of its stores in Virginia, Maryland, Delaware, and the District of Columbia, and in its corporate offices for the victims of the Haiti earthquake on behalf of the American Red Cross International Response Fund. More here.

25. Family-owned 153-store Arizona USA supermarket chain Bashas' started a checkout-based donation campaign today in all of its stores in the state. Bashas' operates stores under the Bashas,' Food City, AJ's Fine Foods, Dine Markets and Sportsman's banners in Arizona. From the grocery chains BashasNews Twitter site January 15, 2010: 'Donate to the Haiti Relief Fund at any Bashas', AJ's or Food City statewide. 100% given directly to the American Red Cross relief efforts. More here and here.

26. Beverage and food retail giant Starbucks, which also produces, markets and sells natural and specialty foods products, just announced on Twitter (January 17) that it's donating $1 million via its Starbucks Foundation on to the American Red Cross to assist the agency in its relief efforts in Haiti. Here's Starbucks' (@Starbucks on Twitter) Tweet this evening: We're devastated by the destruction in Haiti. To help, the Starbucks Foundation is donating $1 million dollars to the American @RedCross.

In addition, today (January 18) Starbucks says it is committing additional support and funding to the growing international relief effort in Haiti. Starting today, participating Starbucks stores in the U.S. and Canada will enable customers to make monetary donations at store registers, with no purchase necessary, to benefit the American and Canadian Red Cross organizations for a limited time, says chairman and CEO Howard Schultz. More here.

As part of the in-store fundraising effort, Starbucks has teamed up with musician Wyclef Jean, who is a native of Haiti, to produce a video about the fundraising campaign at Starbucks. View the video here: http://tinyurl.com/y954eb2

27. North Carolina-based natural grocery chain Earth Fare has pledged to make donations to two non-profit oranizations - Partners in Health and the (former Presidents) Clinton-Bush Haiti Fund. In addition, the natural grocer has made a post on its company Blog encouraging customers and others to make a donation to four organizations (including the two it is donating to) it says that based on its own research will ensure your donation reaches the people in need. More here.

28. Kroger Co.-owned supermarket chain Smith's Food & Drug in Nevada has teamed up with the American Red Cross to accept donations for international relief in response to the earthquake in Haiti. Starting today (January 18) through Jan. 30, customers of Smith's Food & Drug can make a donation to the American Red Cross by simply adding any amount to their checkout purchase. All funds collected will directly benefit Red Cross International relief efforts in Haiti to provide food, water, shelter, medical supplies and other assistance, according to Marsha Gilford, Smith's vice president public affairs. More here.

29. Family-owned, New York based supermarket chain Wegmans has donated $100,000 through its The Wegman Family Charitable Foundation to the American Red Cross International Response Fund Haiti Relief. In addition, Wegmans is accepting customer donations for Haiti relief at the checkstands in all 75 of its stores in New York, Pennsylvania, New Jersey, Virginia, and Maryland. The in-store program runs through Saturday, January 23. Customers may donate any amount, and 100% of their donations will go to the American Red Cross International Response Fund Haiti Relief which provides funding for sending relief supplies, mobilizing relief workers, and providing financial resources, according to Jo Natale, Wegmans' director of media relations. More here.

30. The Virgina-based Ukrop's supermarket chain is partnering with First Bank to help support American Red Cross Haiti relief efforts. Beginning on Saturday, Jan. 16, 2010, and running until January 30, 2010, the supermarket chain is accepting shopper contributions at all 28 of its Ukrop’s supermarket and Joe’s Market store locations in Virginia. First Market Bank locations in the state also are accepting donations. Ukrop’s and First Market Bank will match the amount donated by customers up to $50,000, a Ukrop's spokesperson says. More here and here.

Food/grocery/beverage makers-marketers

1. Beverage giant Coca-Cola has made a $1 million cash donation to the earthquake relief efforts in Haiti. Link: http://tinyurl.com/ycv89pw

2. Kellogg Company, makers and marketers of numerous food brands, including some in the natural and organic foods space, has donated $250,000. Kellogg is also matching any donations its employees make to the earthquake relief efforts on a dollar-for-dollar basis. Link: http://tinyurl.com/yc9skvh.

3. Kraft Foods, which makes and markets natural and organic foods brands in addition to its extensive portfolio of conventional food products, has donated $25,000 to the efforts to assist the victims of the earthquake in Haiti. See here

4. Nestle Waters North America, the bottled water division of food and beverage giant Nestle, has donated $1 million worth of bottled water which is being shipped to Haiti. Link: http://tinyurl.com/yhfktkg.

5. Food and beverage company Pepsi has donated $1 million to Haiti relief efforts through its Pepsico Foundation. Additionally, Pepsi is shipping truckloads of bottled water, Gatorade and food items from its Quaker Oats food division to Haiti. Link: http://tinyurl.com/ydmjmbu.

6. Food company General Mills is donating $250,000 to earthquake relief in Haiti through its General Mills Foundation. The $250,000 pledge includes a $100,000 donation to the American Red Cross International Response Fund and a $150,000 donation to CARE International for long-term rebuilding efforts. See here. Among General Mills' extensive consumer packaged goods brand portfolio include natural and organic food brands Cascadian Farm, Muir Glen and Nature Valley.

7. US-based global food company ConAgra is donating $100,000 via its CanAgra Foods Foundation to the International Red Cross Relief Fund for its efforts to aid the victims of the 7.0 magnitude earthquake in Haiti. See here. The $100,000 donation designated specifically for Haiti is in addition to overall major funding the food company gives to the Red Cross. In 1998, the ConAgra Foods Foundation became a founding member of the American Red Cross Annual Disaster Giving Program, and, in 2005, it pledged an additional $1 million to the cause, to be contributed over five years.

8. Global food, grocery and consumer packaged goods company Unilever is donating $500,000 to the victims of Tuesday's devastating earthquake in Haiti, through its global partnership with the United Nations World Food Programme (WFP). See here. In addition to its monetary donation, Unilever says it's encouraging its employees worldwide to contribute to disaster relief efforts. Additionally, the company says it's preparing product donations to help meet the needs of those affected by the earthquake. Unilever's extensive portfolio of brands includes the popular Hellman's/Best Foods mayonnaise and Knorr specialty foods brand.

9. Dr. Pepper Company, the parent company of the Dr. Pepper/Snapple Beverage Group, has made a $100,000 donation to Haiti relief efforts. More here.

10 Drinks company Diageo Plc has donated 45,000 pounds of food and emergency supplies to the earthquake victims in Haiti. Diageo's specially commissioned 727 aircraft departed on January 15 from Miami with the 45,000 pounds of food and supplies aboard, the comapny said. More here.

11. Tyson Foods is matching employee donations up to $100,000 for Haiti relief efforts. The contributions will go to the Salvation Army, which has personnel on-site and is preparing one million ready-to-eat meals to send to Haiti. Tyson also is exploring ways to provide in-kind relief to accountable organizations providing assistance in Haiti.

12. Hormel Foods is matching employee donations up to $25,000 for relief efforts, with all contributions going to the American Red Cross. In addition to its main line foods business, Hormel has a substancial specialty and natural foods division. More here.

13. Cargill is making an initial corporate donation of $50,000 to long-time Cargill partners CARE and the World Food Programme. In Minneapolis, Cargill volunteers at the company's headquarters will be packaging 20,000 meals on Jan. 18 for the nonprofit Kids Against Hunger, which will be sent directly to people in Haiti; Cargill volunteers will be packaging an additional 30,000 meals over the next month.

Specialty and natural foods-specific food companies

Note: Let us know what you are doing in terms of donations, fundraising, ect to assist the relief efforts for the people of Haiti and the groups helping in the country in the aftermath of the earthquake. You can let us know using the comments box at the end of this post - or at our Twitter Feed at www.twitter.com/NSFoodsMemo. We want to know what you're doing - and add you the our list - regardless of company size or size the effort.

Others (wholesalers, brokers, co-operatives, trade associations, ect.)

1. Cooperative Development Foundation raising money to rebuild Haitian cooperatives. http://ow.ly/WxoY.

2. Coinstar, Inc. today (January 16, 2010) announced that more than 15,000 Coinstar centers in the U.S. have been enabled to support victims of the devastating Haitian earthquake that occurred earlier this week. A special U.S. Fund for UNICEF code, 5556, has been added to Coinstar Centers in participating locations allowing individuals to help the millions of children and families struggling to survive the aftermath of the Haiti earthquake. Coinstar centers are those machines you see that turn your change into currency. Many of the machines are located in supermarkets and discount stores in the U.S. Click here for full and additional details.

3. The Dairy Farmers of America, a cooperative representing more than 18,000 dairy farmer producer-members in the United States, is sending 54,000 cans of its “Sports Shake” dairy-based energy drink to Hiati for distribution by relief workers there. More here and here. The cooperative produces and markets value-added, milk-based products like its "Sports Shake," along with its other business activities.

4. Wine and spirits distribution company Southern Wine and Spirits is matching employee donations for Haiti relief up to a total of $100,000.

5. The National Association for the Specialty Foods Trade (NASFT), the U.S.-based trade association for the specialty foods industry - specialty foods manufactures-marketers, retailers and related companies - is encouraging its exhibitors and members to continue their long tradition of assisting people in need by responding to the humanitarian crisis in the aftermath of the earthquake in Haiti,” says Ann Daw, president of NASFT.

NASFT is currently holding its annual winter specialty foods trade show in San Francisco, California. The show runs through Tuesday, January 19.

The specialty foods association is encouraging its members and others in the $60 billion specialty food industry to support relief efforts in Haiti. Reports are stating that donations of money are the best way to help, the association president says.

In Addition, Ms. Daw says the Winter Fancy Food Show plans to keep its commitment to donate more than 100,000 pounds of specialty food and beverages to San Francisco Bay Area residents in need. The donation will be made at the close of the trade event on Tuesday, Jan. 19. For the second year, NASFT has been working with Feed the Hungry, an international hunger relief organization, to organize the donation and deploy the food to a network of local anti-hunger programs. More here.

[Note: If you're a food-grocery retailer, food company or related food and grocery industry business of any size that's doing any type of fundraising or making a donation for Haiti relief but aren't mentioned in our list, let us know using the comments box below. We will then add you and your efforts to our list. Readers: if you know of any such companies helping but don't see them on our list, please do the same - just tell us using the comments box and we will add them to our list. Thanks.]

Monday Morning Java

Blog Action Day at Natural~Specialty Foods Memo

Today is Blog Action Day. Blog publishers from throughout the world have committed to write something about the environment today in their blogs, offering there own unique perspectives depending on what industries, topics, issues or other things their publications focus on. You can read the organizer's full press release here.

As our readers know, Natural~Specialty Foods Memo (NSFM) writes about environmental or green issues as they relate to the food and grocery industries, on a regular basis. The topic is part of everything we write about--food marketing, retailing, food processing, agriculture and a myriad of related industries, topics, issues and ideas. We also have a weekly feature, Weekly Green Report, where we discuss all aspects of the environment as it relates to the natural and specialty foods and related industries.

As a participant in Blog Action Day NSFM has decided to bring you some interesting information and ideas regarding all things green this morning. Our goal is to stimulate our readers' thoughts regarding the environment and the natural and specialty foods industries. We also invite you to read our latest "Weekly Green Report" (published Friday, October 13) here. Over 15,000 blogs have signed up for Blog Action Day, and it's estimated their combined writings will reach about 12.5 million readers. We welcome our regular readers and readers viewing NSFM for the first time to Blog Action Day.

Report: Wal-Mart and Environmental Sustainability

In Friday's Weekly Green Report NSFM provided a report with various points of view from Wal-Mart's Living Well Sustainability Summit held in Roger's Arkansas on Wednesday, October 11. Read our report here.

Sami Grover, an executive for The Change, a company that works on environmental sustainability issues, attended the all-day green conference in Rogers, Arkansas, and was able to get an interview (one of the few if not the only one) with a group of key Wal-Mart executives.

These executives included: Andy Ruben, vice president of strategy and sustainability, Linda Dillman, executive vice president of risk management, benefits and sustainability, Leslie Dach, executive vice president of corporate affairs and governmental relations, and Doug McMillan, CEO of Sam's Club. Grover's interview is published in today's Treehugger Blog. You can read Sami Grover's exclusive interview with Wal-Mart's sustainability brain trust here. (We thank the folks at Groovy Green Blog for the Wal-Mart graphic at left.)

In addition to reading the piece linked above, you can listen to an 18 minute podcast interview with Andy Ruben, Wal-Mart's sustainability chief, and Ashok Gupta of the Natural Resource Defense Council (NRDC). In the interview, conducted by Betsy Rosenberg of the EcoTalk sustainability radio network, Ruben and Gupta lay out Wal-Mart's sustainability program and discuss how the mega-retailer and the non-profit environmental group are working together on some green issues and the Wal-Mart sustainability initiative. Listen here.

Speaking of EcoTalk, we suggest the following podcast interviews below conducted by Ms. Rosenburg. Like the Wal-Mart/NRDC interview above, all of the podcasts are free and you can download them here. Suggested podcast interviews:

>Interview Title: "Greener Pastures." Kate Clancy, author of the paper, "Greener Pastures: How Grass Fed Beef and Milk Contribute to Healthy Eating." She is the Senior Scientist with the Food and Environment Program at the Union of Concerned Scientists.

>Interview Title: "Daniel Imhoff: Paper or Plastic." Mr. Imhoff is the author of the book, "Paper or Plastic: Searching for solutions to an over packaged world."

>Interview Title: "Al Gore." Former U.S. Vice President Al Gore just won the Nobel Peace Prize for his work on reducing global warming. He is interviewed by Ms. Rosenberg about his book "An Inconvenient Truth" and the issue of global warming.

>Interview Title: "Frog's Leap Winery." Jonah Beer of California's Frog's Leap Winery is interviewed. The Winery and company vineyards are considered to be among the most environmentally sustainable in the U.S.

There are a number of other podcasts available at this link in addition to those we have suggested our readers listen to. Enjoy!

Analysis & Opinion: The State of the Organic Foods Industry 2007

We believe 2007 will mark the beginning of the "mainstreaming" of organic foods in the developed world. By this we don't mean organics will replace conventionally-produced food products as the norm anytime soon. Rather, by the "mainstreaming" of the organic foods industry we mean 2007 marks the realization among all sectors in the food and grocery industry that organic food products no longer are a tiny niche product limited to merely the elite, but rather the category is one that can have widespread appeal if factors such as the price/value ratio are reasonable.

We see five major develoments which have made 2006-2007 the "moment" in our opinion when the food industry (and consumers) have began to really look at organics as a viable, potentially mainstream food and product category. Those five "moments" are:

>The announcement late last year, and focus this year, by Wal-Mart that the world's largest food retailer would begin making a major push in the organic products category, merchandising many more skus of organic food and grocery products in their stores and making organic marketing a corporate retailing priority.

>An Announcement by the CEO of Kroger Co., the largest supermarket chain in the U.S., soon after the Wal-Mart organics initiative kick off that he wants Kroger to be the food retailer which brings organic foods to the masses. Kroger has dramatically expanded the number of branded organic food and grocery products it sells in its stores and developed an extensive private label organic grocery product line (which they continue to grow) since the announcement.

>The fabulous success of Whole Foods Market, Inc. and its acquisition last month of natural foods supernatural retailer Wild Oats Markets. Just 10 years ago Whole Foods was a retail super-niche grocer. The chain had stores in just a few regions of the U.S., primarily in major cities. Even in those places where there was a Whole Foods store 10 years ago only a select group of consumers shopped in the stores. Today, ten years later, Whole Foods has more than doubled the number of stores they had a decade ago, including markets in places like Tennessee, Kentucky, Illinois and other heartland and southern states as well as on the east and west coasts in the U.S. They also have stores in Canada and one in the UK.

Whole Foods also is growing as fast as it can. The grocer is going through a new store building frenzy, constructing and opening huge new lifestyle retail stores where organic products take center stage in every department, from produce, meat and seafood, to grocery, bakery, health & beauty care and non-foods. These stores have become more than a place to buy groceries for consumers from various walks of life--they've become "third places" where people love to spend time in the in-store restaurants, wine bars and even mini day spa's like the new addition to the recently opened store in Canpbell, California.

>The development by major grocery and mass merchandising retail chains like Wal-Mart, Target, Kroger, Safeway Stores, Publix, Wegmans and others in the U.S., and Carrefour (France), Tesco and Sainsbury (OK-based) and others throughout the world, of comprehensive private label organic grocery product brands which not only rival branded organic products, but conventional ones as well.

>The growing number of large, conventional consumer packaged goods companies that are either creating new organic grocery product brands or acquiring existing, smaller organic foods companies, or doing both. General Mills, Kraft Foods, Heinz, Kellogg, M&M Mars, Kimberly-Clark, Unilever, Nestle and many others are moving aggressively into the organic grocery and non-foods categories. Organic industry pioneering companies like Hain-Celestial are creating mega-consumer products companies built on organic product brands.

We believe these five key developments in 2006-2007 (plus a few others) mark a key moment in time--2007-- when all sectors of the food and grocery industry realized the organic category is not only here to stay but also becoming part of the mainstream.

Below is a chart prepared by Dr. Philip H. Howard, an assistant professor in the Department of Community, Agriculture, Recreation and Resource Studies at the University of Missouri. The chart shows the acquisitions of organic food and product companies made by the top 25 food processors in North America over the last decade. (The chart was prepared in July, 2007.)

The chart graphically shows the "mainstreaming" process of the organic industry via acquisitions by major consumer packaged goods companies over the last 10 years. We believe these types of acquisitions will increase dramatically over the next decade as the organic category grows in consumer demand and is merchandised even more extensively by major food retailers. Dr. Howard also has created a number of other charts detailing the current structure of the organic foods industry in the manufacturing, marketing and retailing segments. You can view those charts here.

Essay: 2007 A Green Tipping Point for Food Retailers

Just as we believe 2007 is a watershed year for the beginning of the "mainstreaming" of organic foods and products, we also believe this year is a major tipping point for the food retailing industry in most of the developed world in terms of environmental or green retailing.

Just a few years ago very few if any major food retailers (just like corporations in general and most people) took seriously such concepts as global warming, energy conservation, environmental sustainability and related green issues. In our opinion, today there is widespread acceptance in the retail food industry that all these environmental issues are real and that the time is here to address them aggressively. This year will be noted we believe as the year of the green tipping point environmentally for food retailers.

North America and Europe's (also Australia and parts of Asia) leading food retail chains (and many independents) are to one degree or another launching green initiatives. Some initiatives are more aggressive than others but the key point is the industry norm is now that companies must incorporate their carbon footprints and other green issues into their day-to-day business operations. Leading global retailers like Carrefour in France, Marks & Spencer, Sainsburry and Tesco in the UK, Wal-Mart, Kroger, Safeway Stores, Publix, Whole Foods and many others in the U.S., are all in the process of refining their environmental policies and carrying out initiatives that include everything from attempting to measure carbon footprints to installing solar energy panels on store rooftops, buying wind power, cutting down dramatically on packaging, and in a number of cases even building "eco-stores" to the strictest green standards.

In Scotland, UK-based Marks & Spencer just opened two "eco-stores" which use 40% less energy than conventional supermarkets. Tesco is developing a similar "eco-store" format in the UK. In the U.S. Whole Foods is building two new stores that meet the strictest green building standards thus far developed globally under the LEED system. In California, Safeway Stores just installed solar panels on a store and is in the process of installing them on 30 more. Wal-Mart has done the same with 22 stores in California and Hawaii as well as at distribution centers in both states. These green initiatives are just the tip of the iceberg in terms of what these and many other food retailers of all sizes are doing environmentally. Much more is on the way.

In our view the green tipping point has arrived. This year will go down as the "environmental moment" when food retailing changed its paradigm from a raw energy consumer to a green, conservation-minded corporate citizen. A "Green Grocer" if you will. This tipping point was achieved by the realization that green retailing impacts the bottom line. Conservation makes environmental sense, but even more important to these retailers, it makes economic sense. We have no problem with economics being the driving force.

As realists we know much more needs to be done. However, our point is that the tipping point has arrived, which means the discussion now is focused on how best be good green retailers rather than the old discussion about whether doing so even made sense. We're also optimists and believe--especially with prodding from consumers and groups--these food retailers want to do the right thing. That doesn't mean they will compromise profits. But it does mean they are open to listen, to improve, and to make the environment a central aspect of their corporate and merchandising operations.

The next decade will look different than we can imagine in terms of green food retailing. The green retailing moment has arrived and we believe those retailers who seize the environmental mantle also will be the ones who succeed and thrive.

Mid-Week Round-Up

Mid-Week News, Information and Ideas You Can Use

Whole Foods Opens Hip, New Lifestyle Store In San Francisco

Whole Foods Market, Inc. opened its newest store in San Francisco today in the City's Potrero Hill neighborhood. The new 42,000 square-foot store reflects the neighborhood's hip, diverse and upscale location. The neighborhood is a mix of professionals, artists, light manufacturing and has increasingly become one of the City's most desirable places to live. The 42,000 square-foot store is the largest of the grocer's three stores in San Francisco. Whole Foods currently has 21 stores in Northern California.

The store new hip, lifestyle-oriented store features a small in-store day spa, a first for any of Whole Foods' stores. The store also has a "street-side" bistro where diners can hang out at an upscale wine bar, eat restaurant-quality meals and snacks and listen to a live DJ spin various tunes. The bistro concept also is a new development for Whole Foods.

The new Potrero Hill neighborhood store also is making a commitment to selling locally produced foods from area growers and artisan producers. For example, the store features high-quality confections and chocolates created by local Bay Area chocolatiers. The bistro and the store also will carry an exclusive to Whole Foods, a Cabernet-Merlot wine blend produced by York Creek Winery, which is located just down the street from the store and owned by San Francisco entrepreneur Fritz Maytag, who also owns Anchor Steam Brewery. The brewery is located in the Potrero Hill neighborhood and the store is merchandising a large selection of the local brewery's micro-beer varieties as well.

The store features locally-grown organic produce, baked goods and natural and specialty grocery products and beverages. The bistro also has a complete selection of upscale prepared grab-and-go meals. The store also has a selection of Asian Stir-Fry and Italian foods kits for ethnic food lovers who want an authentic meal but either don't cook or don't want to. The kits include everything needed for an authentic Asian or Italian meal and the assembly takes the shopper just a few minutes at home.

The Potrero Hill store is having its grand opening today (Wednesday Sept. 12) and Whole Foods kicked the opening off with a full-page advertisement in the popular Food Section of this morning's San Francisco Chronicle. The grand opening day with the store's upscale coffee bar opening at 7:AM, followed by a special bread baking event in the in-store bakery at 8:45AM. The "street-side" patio bistro opened at 11:AM for lunch and has a DJ all day and throughout the evening playing music for shoppers and patrons.

The store also has creating a program called "Nickles for Non-Profits" which will give selected local non-profit groups five-cents in the form of a donation for every paper or plastic grocery bag shoppers bring into the store to be recycled. The first non-profit group to benefit from the "Nickles for Nonprofits" program is "Creativity Explored," a San Francisco non-profit visual arts center where artists with developmental disabilities create, exhibit and sell art. Read more about "Creativity Explored here. The new Whole Foods store will donate the nickle per bag to the group beginning today and for the rest of the year to support their programs.

Speaking of Whole Foods Market, Inc. and San Francisco...It seems the supernatural grocer is eyeing (and negotiating for) another store location in the City. With the new Potrero Hill store opening today this potential new location that would bring the retailer's current total store count in San Francisco to four--three current with the potential new location making it four.

A local San Francisco neighborhood newspaper, The Noe Valley Voice, and Natural~Specialty Foods Memo (NSFM) Sources report that Whole Foods is in negotiations with real estate representatives to purchase the Kroger-owned Bell Market on 24th street in the City's very upscale Noe Valley neighborhood. "It's not a done deal yet. I'm not going to verify one way or another," said Mark Compana, a broker who represents Bell Market's property owners. "They are going through due diligence," Compana told the Noe Valley Voice in verifying the deal talks were progressing,"and I don't want to comment beyond that."

Whole Foods also has a posting on its website under the "Stores in Development" section which says a 16,790 square-foot Whole Foods Market is coming to San Francisco's Noe Valley. That is the square-footage of the Bell Market and there aren't any other buildings in the neighborhood that approximate that size according to neighborhood real estate sources we talked to.

The Bell Market store size, 16,790 square-feet, is rather small by Whole Foods' current store size standards. For example the retailer's new store opening today in the Potrero Hill neighborhood is 42,000 square feet. However, the Noe Valley neighborhood is a perfect location for a Whole Foods store despite the site's existing store size. There isn't much if any room for expansion on the site.

The Bell Market store has always done well in its location. It was originally part of the Cala Foods/Bell Market chain, a long-time locally-owned 18-store grocer in the Bay Area. Cala Foods, the parent company, was purchased by Kroger Co. some years ago as part of its buyout of Ron Burkle's Yucaipa Companies supermarket holdings. Those holdings included Ralph's Supermarkets, Food For Less, Boy's Markets, Cala Foods and a number of other banners all based in California.

Kroger decided to sell the Cala/Bell stores last year as they were too small for Kroger's brand of merchandising as well as the fact that the chain decided they didn't want to remain in the Northern California market. Seven or eight Cala and Bell Market stores in San Francisco and Marin County were purchased by an independent IGA group called Delano IGA. The President of Delano IGA, Harley Delano, was at one time the President of Cala Foods when it was an independent operation.

Delano IGA and Kroger were unable to agree on terms for the purchase of the Noe Valley store so it remained under operation by Kroger's Southern California-based Ralph's Supermarkets operation. The store is a winner--in the mid 1990's the store was doing over $300,000 per-week in sales in less than 17,000 square-feet of selling space. It also was the most profitable of all the Cala/Bell Market stores in the region.

Should Whole Foods take over the site and open a store there it would be a perfect location for the grocer's merchandising philosophy. The neighborhood has a very high college educated demographic, including post-graduate and professional degree holders. It also has an age demographic that fits Whole Foods perfectly. Lastly, neighborhood income levels are among the highest in the City.

Additionally, the Bell Market site is the only decent sized supermarket in the neighborhood. There once was a natural foods store, locally-owned small chain Real Foods, right across the street but it closed a couple years ago do to an inability to come to a lease agreement with the building's landlord.

More New Store News of Note

Whole Foods to open New Florida Store Filled With Special Features

Whole Foods Market, Inc. has announced it will have the grand opening for its newest store, located in Coral Gables, Florida, on Wednesday, September 26. The new Florida store is nearly 48,000 square-feet.

Among the store's features include indoor and outdoor cafes's, a 3,000 square-foot produce department with over 500 varieties of fresh produce, large fresh meat and seafood full-service cases, and extensive in-store prepared foods offerings including an in-store smoked meats station, an old-world charcuterie (delicatessen) featuring hand sliced turkey, salami's and more, and numerous other in-store specialty and prepared foods offerings. The store also is including a major focus on prepared Latin Foods items and groceries for the region's large Hispanic population. Read more about the new Whole Foods' Florida store's many in-store special features and departments here.

Major New York Development Finally Gets a Supermarket: Amish Markets to Open Gourmet Supermarket in Long Island City

The massive Long Island City (LIC) mixed-use development in New York has for some time had a major drawback which has prevented many people from moving to the development...it's been without a supermarket or grocery store.

This is changing however according to New York real estate broker Andrew Fine. Fine says the developer has inked a deal with Amish Markets for the upscale market operator to locate a 20,000 square-foot gourmet supermarket in Long Island City. The store will be located at Center and 47th Avenue and is expected to open in February, 2008.

Amish Markets currently has five upscale gourmet markets in New York. Three stores are in Manhattan, one is in Hyde Park, and the newest store is located in Forest Hills. The new store in Long Island City will be the gourmet grocer's largest store to date.

Amish Markets puts an emphasis on fresh produce, baked goods and perishables and offers a large selection of specialty, gourmet and natural groceries in addition to basic grocery items. The stores also have fresh meat and seafood departments and in-store deli's featuring lots of prepared foods items. The stores also have upscale salad and olive bars and sell gourmet coffee drinks from an in-store coffee bar.

The store's also feature their own gourmet private label line called "Amish Fine Food." The line includes olive oils, spring waters, spices and extracts, roasted peppers, sundried tomatoes and other items. Amish Markets also operates a full catering program through its stores and online at its website.

Georgia C-Store Retailer Going Upscale, Gourmet With New Format Design

The Parker Companies, owners and operators of the Parker Convenience Store chain based in Savannah, Georgia, has hired a Tampa and Miami, Florida-based design firm called api (+) to develop what the family-owned retailer says will be an all new 8,500 square-foot gourmet convenience store format called Parker's Market.

The retailer currently operates two Parker's Market Gourmet Convenience Markets in Savannah, Georgia. The stores feature over 5,000 specialty and standard food products ranging from gourmet hot sauces to imported cheeses and deli items. The stores also offer fresh made breads and pastries, desserts and fresh prepared meals 24 hours a day, including entrees and special picnic lunch packages.

The upscale Parker's Convenience Markets also sell fresh cut flowers and a large selection of specialty wines and beers. The stores also offer many conventional convenience store features in their upscale setting including gas fueling stations, non foods, maps, batteries and other convenience-type items.

The new 8,500 square-foot concept is said to be more upscale and larger than the current two stores. The news stores will also feature expanded prepared foods offerings and an increased selection of specialty, gourmet and natural groceries and beverages. Once the format design is competed Parker plans to build stores in select locations throughout Georgia.

The company said in hiring api (+), a noted retail design firm that has done work for Whole Foods Markets, Inc. and Wal-Mart among others, it plans to have the firm position the Parker's Markets as "the premier upscale provider of food retailing and convenience in the market."

"Being an environmental branding and creating design firm, we are planning to position the Parker's Market as the "Better Convenience Store," says Juan F. Romero, president of api (+).

The Parker Companies operates a 23-store chain (all located in Georgia) of traditional Convenience stores called Parker's Convenience Stores, an oil and gasoline distribution arm called Parker Oil, A large self-service, upscale laundromat called Spin City in Savannah, and a self-storage facility called Urban Attic also located in Savannah, in addition to the two current Parker's Market upscale convenience stores.

Ethnic Marketing Research: Hispanic Consumers

The U.S. market for Hispanic foods and beverages continues to grow dramatically, fueled not only by the growing number of Hispanics moving into the U.S., but also by the desire for non-Hispanic Americans to buy and consume Hispanic foods.

A new research report by market research firm Packaged Facts takes this fact into account in its new (August, 2007) report, "Hispanic Foods and Beverages in the U.S. In the report the research firm says food and beverage manufacturers targeting the U.S. Hispanic food and beverage market should position their products within one of three category segments depending on the type of consumer targeted. The report reinforces the fact that growth in the $5.7 billion annual

Hispanic market is driven not only by the growth in the Hispanic population but also by the expanding taste's of non-Hispanic Americans.

Packaged Facts has broken down the Hispanic food and beverage market into three groups. The first group is called "Mainstream Mexican." This group encompasses products that have become mainstays in the U.S. packaged foods industry such as nachos, salsas and taco's. "Mainstream Mexican" products also include refried beans, tortilla chips, burritos and margarita mix. The report calls these products the "backbone" of the industry.

The second major segment is called "Authentic Hispanic." These are foods and beverages imported into the U.S. from Hispanic or Latin American countries. These foods may or may not be Hispanic but they were made across the border. For example, a canned corned beef product imported from Argentina or a canned fruit product from Costa Rica would be classified as "Authentic Hispanic" in addition to a traditional imported Hispanic items.

The "Authentic Hispanic" segment also includes products made in the U.S. but made using traditional recipes as well as basic staples made by Hispanic manufacturer's and carry what is described as an "authentic" brand, the report says.

The last segment, "Nuevo Latino," includes products with what the report calls a "South of the Border" flair. This includes traditional American made foods made with Hispanic ingredients and new creations that combine a variety of Hispanic flavors and food traditions.

The Packaged Facts report says it's important to understand these three segments and how a manufacturer's and marketer's product fits into them in order to properly target a product for maximum sales effectiveness.

The report also details the top ten product categories in the Hispanic food and beverage market as a whole today. They rank as follows: Tortillas/taco shells, salsa, entrees/hand-held items, refried beans, cooking sauce/marinade/sauce, bakery items, seasoning/spice mixes, cheese, picante, and rice/rice mixes.

Packaged Facts estimates the total Hispanic food and beverage market at about $5.7 to $6 billion. That's an increase of 21% in five years, from $4.7 billion in 2002. The research firm predicts growth of about 7% over the next 4-5 years with estimated total category sales of about $8.4 billion in 2011.

The major growth categories--all which will experience double-digit growth during this 2007-2011 forecast period are: entrees/hand-held items, fruits/vegetables, meat, milk/milk-style beverages and yogurt/cultured dairy drinks.

The major growth factor for the Hispanic food and beverage market is the continuing increase in the U.S. Hispanic population, especially for those products classified as "Authentic Hispanic," says the report.

The current Hispanic population in the U.S. is about 44-45 million people. Hispanics are today the largest minority group in the U.S. and make up almost 15% of the total population. By 2030 The U.S. Census Bureau projects that one out of every five U.S. residents will be Hispanic.

You can get information on how to purchase the complete Packaged Facts research report here.

September 15th Begins National Hispanic Heritage Month, September 16th is Mexican Independence Day

September 15 begins the month long national celebration of "Hispanic Heritage Month," from September 15 to October 15, 2007. The celebration is a month-long event which celebrates the Hispanic heritage and culture in the U.S. The observation began in 1968 by U.S. President Lyndon B. Johnson as "Hispanic Heritage Week" and was expanded by President Ronald Reagon in 1988 as a month-long celebration. you can learn more about the event here and also read more about "Hispanic Heritage Month" and Hispanic American's in the U.S. in this U.S. Census Bureau report here.

September 16, the day after the month-long heritage celebration begins, is the Mexican Independence Day Holiday ( El Grito de Independencia). This holiday is important to Mexicans and Mexican Americans. It celebrates Mexico's independence from Spain declared in 1810 and recognized by the Spanish in 1821. You can read about the history of Mexican Independence Day here.

A major aspect of the Mexican Independence Day celebration in Mexico and among Mexican Americans in the U.S. is a fiesta--a celebration of the day featuring lots of authentic Mexican foods and beverages, family and friends.

"Hispanic Heritage Month" and "Mexican Independence Day" present a unique opportunity for specialty and ethnic food and beverage manufacturers, marketers, brokers and retailers to create promotions focused on Hispanics and these important celebrations. In the U.S. this is a time when sales in the Hispanic food and beverage category explodes, lead both by Mexican Americans and non-hispanics who enjoy the celebration as well and buy and prepare Hispanic foods and beverages to celebrate.

For manufacturers in the Hispanic foods and beverage market this month-long celebration is an opportunity to partner with retailers to increase category sales significantly. For retailers the celebrations provide an opportunity to increase impulse sales in the Hispanic category dramatically with in-store events and promotions, media advertising and support of Hispanic cultural celebrations in the community.

For example, in California, the U.S. state with the largest Hispanic population, Modesto, California-based Save Mart Supermarkets devoted its entire mass-mailed advertising circular this week to a Hispanic foods and beverages theme. The chain is tieing-in store displays and tastings with the ad theme as well. The week-long promotion features hundreds of authentic and more common Hispanic food and beverage brands and items across all store categories--fresh produce, meats, groceries, perishables and non-foods. All the items have discounts for the week and many of the items are displayed in special point-of-purchase displays in-store.

Also in California specialty Department store retailer Macy's, which also merchandises a large selection of specialty, gourmet, ethnic and natural foods in it's Cellar Departments, is making a major promotional effort for "Hispanic Heritage Month." The retailer is a major sponsor of the International Mariachi Festival in San Jose, which is being held September 26-30. The festival is a 5-day celebration of Hispanic music, dance, food, culture and family. You can learn more about the festival here.

Macy's took out full-page color advertisements in today's San Francisco Chronicle, San Jose Mercury News and other major Bay Area newspapers, saluting "Hispanic Heritage Month" and the Hispanic American Community, also mentioning their support of the festival, where the retailer will have a special Macy's stage.

Pleasanton, California-based Safeway Stores, Inc. also is a sponsor of the festival as well as being a major sponsor of the Mexican Heritage Plaza facility in San Jose where the mariachi festival and Mexican Independence Day celebrations are being held.

Safeway Stores also is promoting Hispanic foods and beverages in their advertising circular and in-store leading up to Mexican Independence day on September 16th. Safeway has been a long-time promoter of Hispanic products at both its Safeway banner stores in Northern California and Von's banner in Southern California.

In neighborhoods where there are a high number of Hispanic residents Safeway tailors its stores so that they carry an expanded selection of Hispanic products across all store categories. The chain also promotes the category throughout the year as well as in September. The retailer also is a major supporter of initiatives in the Hispanic community and advertises on Spanish language TV and radio stations as well as in Hispanic print media publications.

Another sponsor of the International Mariachi Festival is Hispanic foods manufacturer El Mexicano, which is based in the San Jose area. The company produces and markets everything from Hispanic cheeses to canned and packaged Hispanic grocery products.

The company's products are sold throughout the Western U.S. and are making inroads nationally, especially in the Midwest. El Mexicano is promoted all of its products this month and participating in numerous promotions with supermarket chains and independent grocers.

It's Hispanic products are primarily "authentic" for Hispanic consumers but the company also has been coming out with more and more crossover items that appeal to non-Hispanic consumers as well as to Hispanics.

Many other manufacturers, marketers and retailers throughout the country are creating or participating in Hispanic food and beverage promotions and sponsorships this month. The Hispanic category is huge--and growing. It offers an opportunity for those involved in its selling space to build loyalty with Hispanic consumers as well as increase brand identity and sales.

Wal-Mart Begins Major Hispanic Heritage Month Promotion September 15

Wal-Mart, the largest retailer in the U.S., is participating in "Hispanic Heritage Month." About 400 Wal-Mart stores nationally will celebrate the month-long event with in-store Hispanic product promotions--including foods and beverages--radio station live remotes, live music in store parking lots, special store appearances by Hispanic personalities and numerous other promotional events and activities.

Wal-Mart is the largest private employer of Hispanic Americans in the U.S. The retailer says more than 154,000 Hispanic Americans currently work for the chain. Additionally, two members of the retailer's board of directors are Hispanic Americans. Read more about Wal-Mart's September 15 to October 15 "Hispanic Heritage Month" promotion and celebration here.

News and Information Briefs You Can Use

Better Nutrition Info Equals Good Marketing Too...

Packaged goods companies Kellogg and General Mills will begin putting symbols that represent and identify nutrition information on their breakfast cereal boxes as part of a growing trend to provide more nutrition information for shoppers at the point of purchase. The companies are doing this voluntarily but the FDA has invited food companies to show the agency how using front of the package nutrition labels can improve public health. Read the full story from the Associated Press here.

Aussies, Germans, Others Say Yes to Gourmet McCafe...

McDonald's Gourmet McCafe coffee shops are becoming a big hit in Australia, Germany, Portugal, Argentina and Brazil even though they have yet to gain popularity at home in the U.S. There currently are over 400 McCafe's in Australia and over 300 in Germany with plans to built more in both countries. McDonald's recently entered Japan with its Gourmet cafe format and plans on building numerous McCafe's in Tokyo and elsewhere in the country. Read more about McCafe's success and growth overseas in this Sept. 10, 2007 article in Advertising Age.

Speaking of Gourmet Coffee--and Organic, Fair Trade and more...

The coffee craze in the U.S. and elsewhere continues to percolate "full-steam ahead." The New York Times has an excellent feature article on how coffee purveyors are literally going "to the ends of the Earth" to find new coffee beans and varieties to meet this seemingly insatiable demand for the perfect cup. Read the Sept. 12, 2007 Times' article here.

Gourmet, Organic Confections to be Stars of This Show...

Gourmet, natural, organic and fortified confections are the four fastest growing sub-categories in the confections market and will be the focus of the upcoming "All Candy Expo" in Chicago beginning on September 17 and running until September 19. This year's show will feature a dedicated area on the show floor for luxury gourmet, all-natural, organic and fortified confections. This development demonstrates how consumers are trading-up to quality in the confection category. (Fortified confections refer to those fortified with vitamins, nutritional supplements and the like. It's a new but rapidly growing sub-category within the overall confections category.

Industry Food Fight Over Better Chocolate

This trading-up to quality by confections consumers comes at a time when a number of larger, mass-market confection makers are lobbying the Federal government to allow them to substitute a certain percentage of vegetable oil for cocoa butter in chocolate production. Cocoa butter, many confections experts say, is the "essense" of chocolate; in other words it's what makes it quality chocolate. The primary reason some large chocolate producers want this change is money: Even if one can replace only 5% of the cocoa butter content in a chocolate bar with vegetable oil that can add up to lots of extra profit.

The Grocery Manufacturers of America (GMA) and a number of large chocolate bar producers are advocating the change. Others, including Gary Guittard, president of chocolate-maker Guittard Chocolate, are against it. Guittard says replacing a percentage of cocoa butter with vegetable oil goes completely against the growing consumer demand for more premium and better varieties of chocolate. This Sept. 11, 2007 article by the Associated Press discusses the "chocolate war" and talks about how the same issue has taken 30 years to solve in Europe.

Mid-Week Round-Up Ender...

Welcome to Whole Foods Markets New York City Beer Room

The Whole Foods Market in New York City's Bowery District has created a 1,600 square-foot Beer Room adjacent to the store on Crystie Street and Houston. The Beer Room features over 200 different varieties of beer in a setting designed for beer lovers and the just curious as well. The Beer Room features "Whole Foods Growlers," half-gallon glasses used for toting your beer around with you.

The New York City-based adult beverage blog "Racked New York" recently toured the Bowery Whole Foods Beer Room with camera in tow. You can read about what they thought of the innovative Beer Room and view numerous pictures of the facility here. You can read Whole Foods' list of suggestions on how to best enjoy the Bowery Beer Room here in case you plan on visiting and enjoying a "Growler" or two when next in New York City.