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By Katherine DohertyFood Logistics
INDUSTRY TRENDS
Smaller supermarket chains posted higher net profits and return on equity than their larger counterparts, according to the Food Marketing Institute's 2004 Annual Financial Review.
Researchers at Yale and Cornell universities concluded that slotting allowances support efficiency in the marketplace by optimally allocating scarce retail and warehouse space to the most successful products, balancing the risk of new product failure between manufacturers and retailers and widening retail distribution opportunities for manufacturers.
Campbell Soup, Coca-Cola, and Coors are among the firms that have joined forces to review supply chain best practices and metrics in the consumer goods industry. They are working with Tompkins Associates and The Soleus Group to gather their data, which will be available later this year.
The Frozen Food Foundation is launching a large educational initiative aimed at spreading the message: "Zero Degrees Fahrenheit: Nothing Tastes Better," highlighting the need to maintain proper temperatures throughout the frozen food supply chain.
The global food retail market is estimated at $3.5 trillion and will increase to $6.35 trillion by 2020, according to a report from IGD. The report predicts that, the United States will account for 19 percent of the entire global market, down from the 22 percent it occupied in 2003.
DIVESTITURES
As part of a $250 million, two-year cost-cutting program, Albertsons Inc., Boise, ID, plans to reduce administrative expenses, do more chain-wide purchasing and merge three northern California distribution centers into two.
Loblaw Cos., Toronto, will close six warehouses in Ontario and Quebec over the next three years as part of an effort to streamline operations.
LEGAL MATTERS
Winn-Dixie Stores Inc., Jacksonville, FL, filed for bankruptcy Feb. 22. All 920 Winn-Dixie stores in eight U.S. states and the Bahamas will remain open, but the store chain is looking at some asset rationalization and lease reductions as part of its reorganization.
