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• Safeway announced that its private brand skipjack (chunk-light) canned tuna “will be responsibly caught using free-school purse-seine methods. The company will transition to the purse-seine method by the end of the year. Free-school tuna is caught by purse-seiners using traditional methods of spotting schools of fish using radar and sonar, while captains employ powerful binoculars to spot birds attracted by schools of tuna.”

Joe Ennen, Senior Vice President of Consumer Brands, said the new sourcing policy is an important step in addressing consumer demand for high quality, sustainably sourced product.

• The Wall Street Journal reported over the weekend about how “coconut water is hitting a growing number of U.S. store shelves, whether in cartons, cans or bottles. U.S. retail sales rose to as much as $400 million last year, according to industry estimates. That is a tiny fraction of the country's $100-billion-plus market for nonalcoholic beverages, but the new category has roughly doubled its revenue each year since 2005—helped by celebrity musicians, models and athletes who have endorsed the drink, even as it draws lawsuits over health claims.”

The story goes on: “As a sign of faith that coconut water is more than a fad, Coca-Cola Co. plans to exercise its option to acquire a majority stake in Zico, the No. 2 coconut-water brand in the U.S. by sales, in the coming weeks after purchasing a minority holding in the start-up for less than $15 million in 2009. Coke won't disclose the price, but the option was triggered after Zico hit revenue targets.”

CNBC reports that PepsiCo CEO Indra Nooyi says that she has no intention of splitting up the company’s soft drink and snack businesses, saying that the two components “together create a lot more shareholder value than apart.”

Nooyi says, “We cannot have a successful snack business in many emerging markets unless we have the beverage market scale ... If you don’t have geographic diversity, if you don’t have product diversity and scale to really have heft in these emerging markets, you really can’t succeed.”

• The Wall Street Journal reports that Dunkin’ Donuts seems to be having some issues in its global expansion efforts, with costs and profits not living up to expectations or even the standards established by its domestic business. The biggest problems seem to be in South Korea and Japan.

CEO Nigel Travis tells the paper that the company hopes to turn around its global business “by making marketing dollars more effective, cutting down costs from suppliers, and hiring more people to support the franchisees.”
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