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Newsletter

Thursday, October 5, 2006
The PMA is just a few weeks away and I am scheduling meetings. If you’re interested in finding out more about AgPlus information services or the advertising program on www.agplus.net send me an e-mail and let’s meet in San Diego.
FBI searches 2 spinach packing companies

(AP) SALINAS, Calif. The FBI searched two produce companies Wednesday for evidence of a crime in the nationwide E. coli outbreak that killed one person and sickened at least 191 others. Agents from the FBI and the Food and Drug Administration used warrants to search a Natural Selection Foods LLC plant in San Juan Bautista and a Growers Express plant in Salinas to determine whether they followed food safety procedures. Federal health officials said early in their investigation that deliberate contamination was not suspected. "We are investigating allegations that certain spinach growers and distributors may not have taken all necessary or appropriate steps to ensure that their spinach was safe before they were placed into interstate commerce," U.S. Attorney Kevin Ryan said in a statement.

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Source: KUTV.com

Harold Thinks! I am going out on a limb here and proclaiming this to be bad news for the produce industry. The latest chapter began today with breaking news about the FBI searching two plants in the Salinas area. We need this crisis in our rear view mirror rather than something new popping up in our headlights weekly. I hope that we can put this issue to rest and move forward to restore consumer trust.

Safeway goes grocery shopping

Safeway Inc. is purchasing the remaining shares of GroceryWorks and making the e-commerce unit a wholly owned subsidiary. However, it isn’t giving up many details about the timing of the transaction and what future plans it has in mind for the online grocer. Safeway, No. 172 in the Internet Retailer Top 500 Guide to Retail Web Sites, is purchasing the remaining 43.8% of GroceryWorks from investors such as Tesco PLC, an online food retailer that serves international markets via Tesco.com. Safeway already owns 56.2% of GroceryWorks.

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Harold Thinks! This move comes as no surprise since Tesco decided to enter the U.S. market in direct competition with Safeway and others.  One quote in the article that I found to be interesting and true was that “Safeway can compete nationally on price and economies of scale, but they will have to think on a local and regional basis to make a significant move in the online space.”  That statement is just common sense but not only online. If national chains don’t pay attention to local and regional markets they will fail. In the end the customer is local and they vote with the dollars they spend.