DailyFinance.comhttp://www.dailyfinance.comDailyFinance.com%http://www.blogsmithmedia.com/BlogURL%/media/feedlogo.gifDailyFinance.comhttp://www.dailyfinance.comen-usCopyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only.Blogsmith http://www.blogsmith.com/Hershey's Gets a Bit Safer for Africa's Exploited Kidshttp://www.dailyfinance.com/2012/02/02/hersheys-gets-a-bit-safer-for-africas-exploited-kids/http://www.dailyfinance.com/2012/02/02/hersheys-gets-a-bit-safer-for-africas-exploited-kids/http://www.dailyfinance.com/2012/02/02/hersheys-gets-a-bit-safer-for-africas-exploited-kids/#commentsFiled under: , , , , ,

HersheyIn the 1970s, everyone could recite the Reese's Peanut Butter Cup campaign catchphrase: "You got your peanut butter in my chocolate!" Well, here's one for the new millennium: "You got your chocolate in my conscience!"

That's the message Reese's parent company Hershey (HSY) received when more than 100,000 consumers let the chocolatier know how they felt about the connection between forced child labor and Hershey's confections.

Hershey has announced its plan to purchase Rainforest Alliance-certified cocoa for its Bliss chocolate line by the end of this year. The company has made this move in the nick of time.

A Bitter Super Bowl Message

The International Labor Rights Forum planned to out Hershey's failures in a Super Bowl ad spot this weekend, pointing out that Hershey has fallen behind its rivals in addressing abusive practices in the cocoa industry.

According to the ILRF, 40% of the world's cocoa comes from West Africa's Ivory Coast. The Department of State estimates that 109,000 children work "under the worst forms of child labor" there, suffering abuse such as beatings as well as enduring long hours, having to utilize dangerous work tools, and being exposed to pesticides and brutal weather conditions for cocoa production.

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Meanwhile, 10,000 Ivory Coast children are subjected to human trafficking and even slavery.

Those are awfully high prices for some children to pay so the rest of us can snack on affordable Hershey bars.

Hershey isn't the only candy company moving toward the moral high ground. Privately held Mars vowed in 2009 to shell out millions to certify that the cocoa it uses in its products is sustainably sourced by 2020. When Kraft (KFT) bought Cadbury last year, it pledged to honor Cadbury's commitment to Fair Trade cocoa sourcing. Nestle (NSRGY) has also committed to buying chocolate that meets international labor rights standards.

People Power

The fact that Hershey's making a move in the right direction certainly underlines how important consumer advocacy is. The ILRF, Change.org, Global Exchange, and Green America have all done their part for years to ensure that the 100,000 letters from consumers made it onto Hershey's radar.

Consumers (including kids) are asking Hershey to do one better. An eighth-grader has started a Change.org campaign asking Hershey to commit to certified cocoa in all of its products going forward.

Most American kids love chocolate -- and frankly, so do most adults. That's why Hershey's failure to more fully address cocoa's problematic impact on children in far-off locales seems particularly unappetizing. While it's good that Hershey's making one step toward improving its supply chain, clearly it could still do a lot better in making sure chocolate's safe for all kids, everywhere.

Motley Fool analyst Alyce Lomax does not own shares of any of the companies mentioned.




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]]>child laborChildLaborcocoaCote DIvoireCoteDivoireFinanceHershey barHersheys blissHersheysBlissHuman TraffickingHumanTraffickingILRFInternational Labor Rights ForumInternationalLaborRightsForumIvory CoastIvory Coast CocoaIvoryCoastIvoryCoastCocoareeses peanut butter cupReesesPeanutButterCupslaverysuper bowl adsSuperBowlAdsAlyce Lomax, The Motley FoolThu, 02 Feb 2012 16:47:00 ESTThe Food of Love: Valentine's Day Dining by the Numbershttp://www.dailyfinance.com/2012/02/02/the-food-of-love-valentines-day-dining-by-the-numbers/http://www.dailyfinance.com/2012/02/02/the-food-of-love-valentines-day-dining-by-the-numbers/http://www.dailyfinance.com/2012/02/02/the-food-of-love-valentines-day-dining-by-the-numbers/#commentsFiled under: , , ,

Valentines dinnerLove isn't just in the air. It's being served on a platter.

A romantic dinner is a Valentine's Day staple, and this year the tradition continues, with lovebirds making reservations and -- in many cases -- planning to spend $200-plus to dine with their special someone, according to a recent Valentine's Day dining survey conducted by online restaurant reservation giant OpenTable (OPEN).

Planning Date Night

"With this Valentine's Day falling on a Tuesday, we are going to see two spikes in restaurant reservations," Caroline Potter, OpenTable's chief dining officer, said in a statement. "About half of the diners surveyed anticipate booking a romantic evening on the 14th, while another 26% are choosing to celebrate on Saturday night, Feb. 11."

And with 53% of survey respondents saying they plan to make their reservations more than a week in advance, a savvy move may include a few well-placed hints if the beloved tends to be a procrastinator.

Check, Please!

So where will lovebirds dine, and how much will they spend? More than half of survey respondents expect to shell out $101 to $200 for the special meal. And 10% of say they plan to run up a tab of $200 or more.

Here are some other nuggets from the OpenTable survey:

Ingredients for love:

  • 35% of survey respondents list Italian cuisine as the most romantic for Valentine's Day.
  • 25% are smitten with French cuisine.
  • 11% list American food.
  • 8% cite fondue.
  • 7% enjoy the romance of small plates of tapas.

Cash-strapped ZIP codes:

  • 16% of Seattle residents plan to spend less on those romantic Valentine's Day meals.
  • 15% of Atlanta survey respondents plan to do likewise.
  • 10% of Los Angeles diners are pulling back their purse strings on V-Day dining.

Where love (and budget) knows no bounds:

  • 20% of Las Vegas residents plan to spend more than $200 on Valentine's Day dinner.
  • 20% of Miami fun-in-the-sun residents plan to spend in excess of $200.
  • 19% of New Yorkers also expect to spend $200 or more.

Motley Fool contributor Dawn Kawamoto owns no stock in any of the companies listed. However, she is heavily invested in the notion of romance and Valentine's Day. (You can bet her husband will be reading this article.) The Motley Fool owns shares of OpenTable. Motley Fool newsletter services have recommended buying shares of OpenTable.


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]]>dining outDiningOutFrench cuisineItalian cuisineitalian foodItalianFoodreservationsromanceThe Motley FoolValentine's DayValentines day restaurantsValentinesDayRestaurantsDawn Kawamoto, The Motley FoolThu, 02 Feb 2012 14:15:00 ESTVenti, Meet Vino: Starbucks Spikes Its Drink Menuhttp://www.dailyfinance.com/2012/01/24/venti-meet-vino-starbucks-spikes-its-drink-menu/http://www.dailyfinance.com/2012/01/24/venti-meet-vino-starbucks-spikes-its-drink-menu/http://www.dailyfinance.com/2012/01/24/venti-meet-vino-starbucks-spikes-its-drink-menu/#commentsFiled under: , ,

StarbucksStarbucks (SBUX) is renowned for its caffeinated drinks, but it isn't above spiking its beverage menu here and there. The coffee giant is adding wine and beer at up to a dozen cafes in the Southern California and Atlanta markets.

While this might sound like big breaking news, dabbling in adult beverages isn't actually a new concept for Starbucks. The company has been slowly building its tolerance to alcohol for a while.

Trial Run at Tipplers

Starbucks has been testing the spiked waters in Seattle since fall 2010. As of now, five Seattle stores and one Starbucks in Portland, Ore., serve beer and wine. It also plans to open up to another six in Chicago.

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Starbucks says that customers in its small sampling thus far have received the added items positively.

The timing here is essential: Beer and wine won't be available at the select cafes until the afternoon. That's because, like any coffee shop, demand for coffee jolts wanes as the day wears on, with the slowest sales time of day being the evening. After a certain hour and in certain markets, Starbucks wants to be the destination for customers seeking out that "third place" between home and work.

Do Coffee and Booze Mix Well?

There are clear risks involved with serving alcohol, not least of which are potential legal liabilities related to minors and intoxicated drivers. Furthermore, depending on what kinds of crowds these cafes draw, Starbucks' reputation for being a family-friendly venue could fade. There's also the possibility of overly caffeinated drunks.

Those worries might be allayed by the fact that the Starbucks cafes slated to serve alcohol will also sell higher-end fare like fruit and cheese plates, hot flatbreads, and focaccia with olive oil. Starbucks has also revealed that it never intends to offer beer and wine in all of its cafes -- a sign that this is a pretty controlled experiment, and hardly aimed at the binge-drinking crowd.

That's probably good; alcohol can be a social lubricant, but a little bit can go a long way for a higher-end brand like Starbucks. Plus, Starbucks' heart and soul resides firmly in the coffee bean.

Motley Fool analyst Alyce Lomax owns shares of Starbucks.



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]]>alcoholbeercoffeemenuSeattleStarbuckswineAlyce Lomax, The Motley FoolTue, 24 Jan 2012 15:50:00 ESTCoke's New Orange Juice Flavor: Fungicide?http://www.dailyfinance.com/2012/01/17/cokes-new-orange-juice-flavor-fungicide/http://www.dailyfinance.com/2012/01/17/cokes-new-orange-juice-flavor-fungicide/http://www.dailyfinance.com/2012/01/17/cokes-new-orange-juice-flavor-fungicide/#commentsFiled under: , , ,

Coke's New Orange Juice Flavor: Fungicide?Coca-Cola (KO) has never shied away from trying new variations of its tried-and-true beverage (think New Coke and Cherry Coke). The company also is known for adding flavorful twists -- like lime and lemon -- to its drinks. But last week, Coke revealed that a more disturbing addition had made its way into its drinks: fungicide.

The warning pertained to some orange juices from Coke and its archrival PepsiCo (PEP), which have been found to contain trace amounts of the fungicide carbendazim, a chemical not approved for use here in the U.S. Coke sells orange juices under the Simply and Minute Maid brands, while Pepsi peddles the classic juice brands Tropicana and Dole.

Somebody Slipped Something Into My Drink

In this case, you can blame Brazil. That country's farmers make frequent use of the fungicide, and it supplies some orange juice to American companies. Although both Coke and Pepsi both import orange juice from Brazil, the primary source of their OJ is Florida.

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The Food and Drug Administration is on the case, vowing it will ban any juice that contains more than trace amounts of carbendazim. Likewise, both Coke and Pepsi have assured their customers that their orange juices are safe for consumers. And, in fact, the levels of carbendazim that were found in their OJ were below the amounts that would raise government safety concerns.

Still, this marks second time in recent months that American consumers have been jarred into awareness that some unwholesome additives might be stealthily sneaking into their supposedly "healthy" juices.

Last fall, Consumer Reports said that it found high levels of arsenic (exceeding the FDA's rules for the amount that can be in drinking water) in apple and grape juice. Countries like China may be responsible, since some use pesticides that contain the heavy metal. About 60% of apple concentrate used in American apple juice is imported from China.

This also isn't the first time that American consumers have been jarred to discover the less savory qualities of Coke and Pepsi products. When an individual recently sued Pepsi for finding a mouse in his Mountain Dew, Pepsi's rather unappetizing response was that his claim was impossible, because the rodent would have "dissolved" in the drink as time passed between bottling and pouring a cold glass of Dew, transforming it into "a jelly like substance." As French caffeine fanatics might say, mon Dew!

How Safe Do Americans Feel About Their Food?

Last fall, NPR conducted a survey of Americans' food safety concerns. Although the poll showed a slight decline in concern compared to the year before, 57% of respondents said they were concerned about food safety.

Last spring, a poll conducted by Pew, Hart Research, and American Viewpoint showed a majority of likely American voters supported additional funding for the FDA to strengthen food safety measures. Results included 90% in favor of making foreign countries certify that their exports meet U.S. standards, and 86% in favor of the FDA making more inspections of food facilities.

U.S. companies must address issues like these. More and more American consumers are becoming aware of what they're putting into their bodies, and the fact that many additives are stealthy and unhealthy. Increased distrust of certain products could cause a major shift in consumption, and companies that don't get the chemicals out could become outdated and out of luck in no time.

Motley Fool analyst Alyce Lomax does not own shares of Coke or Pepsi. The Motley Fool owns shares of Coca-Cola and PepsiCo. Motley Fool newsletter services have recommended buying shares of PepsiCo and Coca-Cola.




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]]>arsenicBrazilcarbendazimCoca-ColaConsumer ReportsConsumerReportsDoleFDAfood safetyFoodSafetyfungicidesHealthMinute MaidMinuteMaidMountain Deworange juiceOrangeJuicePepsipesticidestropicanaAlyce Lomax, The Motley FoolTue, 17 Jan 2012 16:00:00 ESTStarbucks Lightens Up with Mellower 'Blonde' Brewhttp://www.dailyfinance.com/2012/01/12/starbucks-coffee-goes-blonde/http://www.dailyfinance.com/2012/01/12/starbucks-coffee-goes-blonde/http://www.dailyfinance.com/2012/01/12/starbucks-coffee-goes-blonde/#commentsFiled under: , ,

Starbucks blondeStarbucks (SBUX) introduced the American consumer to high-powered gourmet coffee, and even somehow convinced us to use words like "venti" when ordering large caffeinated beverages.

Now, the coffee giant hopes we'll become accustomed to a new lighter roast that it calls Blonde.

Do Americans Prefer Blondes?

Starbucks thinks it's worth a shot to find out. There are plenty of holdouts out there who prefer lighter, less robust coffees. The complaint among those who don't dig Starbucks' fare is that the brew tastes "burnt," or in the language of coffee connoisseurs, "bold."

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Even Consumer Reports has busted on Starbucks brew. In August the magazine delivered a humiliation, stating that a cup of Walmart's (WMT) medium-roast Great Value 100% Colombia brewed coffee tasted comparable to Starbucks.

So yes, it might be time for Starbucks to try on something more tasteful. The company says it spent eight months exploring 80 different recipe and roast versions before it hit on what it says its customers wanted: "a flavorful, lighter-bodied coffee that offers a milder taste and a gentle finish." The company also uses words like "mellow" and "approachable" to describe the new Blonde roast.

Starbucks blonde

Battle of the Brews

Starbucks isn't just aiming for its own loyal customers with the Blonde roast, which will be available in its own cafes as well as in grocery stores. That would just be preaching to the caffeinated choir. It's really trying to turn all those people who prefer rivals' coffees to its own. The company will have the chance to see if Blonde has what it takes to attract new business this week during its "Find the Roast You Love the Most" tastings Thursday through Saturday.

Then again, this isn't just a taste test. Dunkin' Brands (DNKN) and McDonald's (MCD) coffee drinkers probably have another reason they stick with their lighter brews -- the price. It's going to take a really good cup of joe to convince the more budget-minded coffee drinkers to switch to Starbucks.

Motley Fool analyst Alyce Lomax owns shares of Starbucks.




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]]>Blonde roastBlondeRoastburntcoffeedunkin donutsDunkinDonutsgourmetmcdonaldsStarbuckstaste testTasteTestAlyce Lomax, The Motley FoolThu, 12 Jan 2012 13:45:00 ESTWhy Wendy's Will Never Be Great Againhttp://www.dailyfinance.com/2012/01/12/why-wendys-will-never-be-great-again/http://www.dailyfinance.com/2012/01/12/why-wendys-will-never-be-great-again/http://www.dailyfinance.com/2012/01/12/why-wendys-will-never-be-great-again/#commentsFiled under: , ,

Wendy'sThese should be exciting times for Wendy's (WEN):

  • The company spun off its Arby's sibling last year, freeing it to focus on its flagship burger-flipping chain.
  • In September, for the first time in its 42-year history, Wendy's reformulated its signature sandwich.
  • Just last month, the fast-food giant reentered the Japanese market,
  • And, it's hoping to give the breakfast market another crack soon.

However, pull up a stock quote and you'll find that a single share of Wendy's fetches about the price of one of its value meals. In fact, shares of Wendy's have been trading in the single digits for more than four years. There's little reason to expect that to change.

New Burger, Same Problem

The autumn debut of Dave's Hot 'N Juicy -- accompanied by a retro marketing campaign that brought back nostalgic "Where's the beef?" memories -- should have helped. The new burger features a more bountiful beef patty, bakery-style buttered bun, and extra cheese. In a twisted tribute, the new sandwich was named after the deceased founder, Dave Thomas, who never saw a need for an updated burger.

Wendy's can't help it. The "gourmet" burger joints are coming. Places with names like Five Napkin Burger and the organic-oriented Elevation Burger are raising expectations on the informal sandwich. Then you have the regional faves that are making territorial strides. Virginia's Five Guys is opening hundreds of new locations a year. West Coast icon In-N-Out Burger is taking baby steps eastward.

Upgrading its burger is nice, but even Dave's Hot 'N Juicy is no match for what some of these places are cranking out. In the meantime, retail watcher Technomic reveals that McDonald's (MCD) continues to gain market share at the expense of Wendy's and the now privately held Burger King.

McDonald's hasn't had to toss a new burger on the fryer to keep its charmed streak of success going.

Arby's Wasn't the Enemy

A fire sale for a majority stake in Arby's was cheered by investors late last year, sending the stock up to a fresh 52-week high.

Why?

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It's not as if unloading a concept has ever helped Wendy's turn around its namesake concept. A few years ago Wendy's shook off its fledgling Baja Fresh burrito joint and spun off Canadian bakery Tim Hortons (THI). All this did was bring down the stock to value-meal prices.

After all, it's not as if all of this focus led to a revival. Wendy's began 2008 with 6,645 stores. Three years later, there were just 6,576 locations.

This may not be entirely Wendy's fault. Burger King has struggled. Drive-in specialist Sonic (SONC) has also been a market laggard. Behind the Golden Arches, there is no worthy silver medalist these days. However, the facts are what they are. Wendy's is in trouble.

Will Goose Livers and Truffles Do the Trick?

It's not as if Wendy's hasn't gotten around to expanding overseas. It's just that it has been a disappointment as an export. Just 8% of its revenue comes from outside the United States. The burger chain may hail from Dublin, but it's the Dublin in Ohio.

Wendy's is getting crafty after flopping previously in Japan. Taking a page out of the gourmet playbook, the new Wendy's there offers a $16 burger topped with goose-liver pate and truffles. Yes, Wendy's just played the foie gras card. Whether that's the kind of novelty that will win it cult status in Japan or the ire of activists closer to home remains to be seen.

What about expanding the menu? When Wendy's tried to match Burger King and McDonald's in rolling out breakfast in the mornings, the a.m. rush never materialized, and Wendy's nixed its morning menu. (You know it's pretty bad when even Subway is promoting a breakfast menu, and you're not.)

More important, the consumer mind-set already has etched an impression of Wendy's that they can't shake loose. Trying to burn an older image by going all the way back to the glory days of Clara "Where's the beef?" Peller isn't going to be enough. If anything, in trying to be all things to all people, Wendy's may have lost the magic of its originally limited menu.

A few years ago, ordering a Frosty got you a simple frozen chocolate concoction. These days it's either vanilla or chocolate, and then an array of ways to turn what oozes out of that machine into sundaes, fruit parfaits, or shakes.

Wendy's can't go back to the past, and it may not be able to compete in the future.

Longtime Motley Fool contributor Rick Munarriz does not own shares in any of the stocks in this article. Motley Fool newsletter services have recommended buying shares of Tim Hortons and McDonald's.


Gallery: 5 Big Retail Chains That Will Be Gone in 5 Years




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]]>arbysBurger KingDave ThomasDaves Hot N JuicyDavesHotNJuicyDublinearningsfast foodFastFoodFinanceIn-N-Out Burgermarket shareMarketShareMcDonald'sMcdonald's CorpTim HortonsWendyswendys outlookWendysOutlookWhere's the beef?Wheres the beefWheresTheBeefRick Aristotle Munarriz, The Motley FoolThu, 12 Jan 2012 07:00:00 ESTFast-Food Joints Stepping Up Menu Bargains in Januaryhttp://www.dailyfinance.com/2012/01/11/fast-food-joints-stepping-up-menu-bargains-in-january/http://www.dailyfinance.com/2012/01/11/fast-food-joints-stepping-up-menu-bargains-in-january/http://www.dailyfinance.com/2012/01/11/fast-food-joints-stepping-up-menu-bargains-in-january/#commentsFiled under: , , ,

Fast-Food Joints Stepping Up Menu Bargains in JanuaryBy Kyle Woodley, InvestorPlace Assistant Editor


Fast-food companies face a two-headed monster after every New Year's Day: empty resolutions and even emptier wallets. While most people who swear off greasy-bag lunches will fall back off the wagon at some point, they'll spend January testing their self-control - and usually, their holiday overspending will help keep the debit cards sheathed, at least for a month.

So, as USA TODAY recently reported, fast-food companies have to get aggressive. In addition to warding off the January lull, the industry is coming off a 0.6% drop in third-quarter foot traffic, and NPD Group research expects visits to be flat - in the whole first half of 2012! To you and I, that means a solid month of gooey, cheesy, melty, lettuce-y deals.

Here's a look at the best bargains at a drive-thru near you.

Taco Bell: At the behest of this Yum! Brands (NYSE:YUM) chain's clamoring fans across social media, the 99-cent Beefy Crunch Burrito is back. It was a hit upon its 2010 debut, and while it has come and gone at varying prices, the Beefy Crunch Burrito's originally perfect mix of "cheap," "filling" and "marginally tasty" picked up a zealous following. So much so that a man was charged with aggravated assault against a public officer in 2011 after firing an air gun at officers - all in response to discovering the burrito's price was jacked up to $1.49. In the spirit of life, Taco Bell spared us the extra 50 cents this time around.

Papa John's: The Papa's making it happen for a little less coin. Large pizzas at Papa John's (NASDAQ:PZZA) are going for $11 - even specialties! Of course, it's trumped by ...

Pizza Hut: Which is doing the exact same thing for a buck less. And that's not even Pizza Hut's best deal by a longshot! For just $9.99 more, Pizza Hut offers the Big Dinner Box - two medium one-topping pizzas, eight wings and five breadsticks. Anyone ordering "just a pizza" is being taken for a sucker.

Wendy's: The House that Dave Built marches on with its 99-cent value menu, but Wendy's (NASDAQ:WEN) most recent commercials are pushing a pair of dollar burgers that blur the line of responsibility. The Jr. Cheeseburger Deluxe shows a beef patty, a slice of cheese, tomato, onion, lettuce and pickles. The Cheesy Cheddaburger eschews the ground-grown components of Junior for a "layer" of cheddar. Your reward for going veggies? More calories, more carbs, more fat. Go figure.

KFC: Speaking of healthy choices, the Colonel is hacking off $4 from the price of its 10-piece chicken buckets with "$11 Weekend Buckets." But everyone knows they get you on the sides - no one just sits down to a bucket of drumsticks and calls it a day.

Jack in the Box: The value meal is far from new, but Jack in the Box's (NASDAQ:JACK) current January deal is the stuff people in the Northeast can only dream about: A Jumbo Jack burger, two tacos, small fries and a small drink for $4.29. That's right: Burger. Tacos. Same restaurant. And more than half the country is missing out!

Of course, not everyone is trying to lull customers by pulling back prices. Among other plans in the works:

  • White Castle is experimenting with selling beer and wine in its locations. For those of you not in the know, beer and wine traditionally are the cause of most White Castle runs. Fish in a barrel, my friends. Fish in a barrel.
  • It's an Olympic year, which means McDonald's (NYSE:MCD) and Subway will be hauling out the medalists to peddle their wares. Of course, Subway has a much easier time leveraging the athletic spirit since you can believe Apolo Anton Ohno or Michael Phelps might actually eat its offerings as part of a training regimen. Maybe Big Macs help athletes nap.

USA TODAY's report on these and other fast-food deals can be found here.

As of this writing, Kyle Woodley did not hold a position in any of the aforementioned stocks.

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]]>Apolo Ohnobargainscheap eatsCheapEatsEntertainmentfast food dealsFastFoodDealsFish in a BarrelJack in the BoxMcDonald'smcdonaldsMichael PhelpsNPD GroupPapa John's PizzaPizza HutSubwayUSA TodayWendy's/Arby's Group IncWhite CastleYum! BrandsYum! Brands IncInvestorPlaceWed, 11 Jan 2012 11:05:00 ESTAfter 2011's Grocery Price Surge, Is Cooking at Home Still a Bargain?http://www.dailyfinance.com/2012/01/06/after-2011s-grocery-price-surge-is-cooking-at-home-still-a-bar/http://www.dailyfinance.com/2012/01/06/after-2011s-grocery-price-surge-is-cooking-at-home-still-a-bar/http://www.dailyfinance.com/2012/01/06/after-2011s-grocery-price-surge-is-cooking-at-home-still-a-bar/#commentsFiled under: , ,

gracery store pricesEverybody knows the basic rules for saving money on food. Don't eat out. Ditch the steaks in favor of ground beef. Stick to the staples, like milk and potatoes. But a recent USDA report shows that, in 2011, some traditional money-saving guidelines proved useless as food prices went through the roof.

On average, increasing global demand and rising commodity and fuel costs drive grocery costs up by about 2.9% per year, but in 2011, they rose by an estimated 4.25% to 4.75%. And while prices went up across the board, the cost increase on staples was especially sharp. For example, prices for ground beef -- one of the classic economizing ingredients -- went up by a staggering 10.2%, as did the price of eggs. Meanwhile, turkey, another classic source of cheap protein, went up by 10.5%.

And those were hardly the only groceries whose costs went through the roof. Milk prices rose by almost 10%, and ice cream went up by 10.3%. Apples cost about 9.6% more, and potatoes rose by a shocking 12%. Prices on fats and oils also went crazy, with a huge 11.1% increase.

Some Good Deals

It wasn't all bad news: In terms of proteins, fish and pork are comparatively good options. Seafood, for example, rose a mere 5.9% in 2011, while the price of pork went up by 6.9%. Cereal is only 3.5% to 4% more expensive than it was at the end of 2010, and prices on nonalcoholic beverages -- including sodas -- have only risen by 4.4%.

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One major reason that grocery items -- particularly staples -- went up so sharply in 2011 was because of increasing demand. As Richard Volpe, a research economist with the USDA's Economic Research Service, notes, that high unemployment, low wages, and other economic pressures have pushed many consumers to save money by eating at home. As families have tried to economize by buying cheap ingredients, they have increased demand. Ironically, prices of luxury foods like steaks and fresh fish -- which consumers have been eschewing in favor of cheaper fare -- went up by less.

Restaurants Becoming a Bargain?

For that matter, the cost of eating out -- a classic luxury expense -- rose much only half as much cost of eating in -- between 2% and 2.5%. Part of the reason, Volpe points out, is that restaurant managers "were reticent to pass on price increases to consumers."

This worry isn't surprising: While restaurants and grocery stores are both affected by rising food costs, it is still more expensive to eat out than to eat in, and price hikes can be a deal-breaker for many families. As Mike Lubansky, a senior financial analyst at Sageworks, a financial information company, puts it, "If restaurants pass along all their cost increases to consumers, it will make them less competitive." As a general rule, food costs are supposed to range between 25% and 38% of overall restaurant costs; the rest comes from labor, overhead and other expenses. Lubanski points out that restaurants can "save costs in other areas to make up for increased food costs."

The USDA estimates that the price gap between eating in and eating out will narrow even further in 2012: Grocery prices are predicted to rise by 3% to 4%, while menu prices will likely go up 2% to 3%. Eating at home will still be cheaper than going out, but it's worth asking how long the narrowing trend will continue -- and how many restaurants will survive the sluggish consumer economy.

Bruce Watson is a senior features writer for DailyFinance. You can reach him by e-mail at bruce.watson@teamaol.com, or follow him on Twitter at @bruce1971.

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]]>Bruce Watsoneating outEatingOutEconomic Research ServiceeggsFinancefood pricesFoodPricesgroceriesground beefGroundBeefHealthhome cookingHomeCookingmilkrestaurantsTwitterBruce WatsonFri, 06 Jan 2012 06:45:00 EST5 Foodie Sites That Can Find You Fine Meals for Lesshttp://www.dailyfinance.com/2012/01/05/5-foodie-sites-that-can-find-you-fine-meals-for-less/http://www.dailyfinance.com/2012/01/05/5-foodie-sites-that-can-find-you-fine-meals-for-less/http://www.dailyfinance.com/2012/01/05/5-foodie-sites-that-can-find-you-fine-meals-for-less/#commentsFiled under: ,

Frugal foodies, rejoice!

A growing list of websites is making it easier to indulge in culinary adventures that won't take a big bite out of your wallet.

Here are five sites designed to help you find foodie-worthy restaurants that are affordable, too.


Gallery: 5 Foodie Sites That Can Find You Fine Meals for Less

BiteHunter.comCheapism.comLocaleats.comUeatcheap.comRestaurant.com




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]]>best cheap restaurantsBestCheapRestaurantsBiteHunter.comcheap good restaurantsCheapGoodRestaurantsCheapism.comdealsfoodieFoursquaregrouponIPhonelivingsociallocaleats.comrestaurant reviewsRestaurant.comRestaurantReviewsrestaurantsueatcheap.comUrban SpoonUrbanSpoonYelp, Inc.zagatBarbara ThauThu, 05 Jan 2012 11:00:00 ESTHow the (Finally Ended) Corn Ethanol Subsidy Made Us Fatterhttp://www.dailyfinance.com/2012/01/04/how-the-finally-ended-corn-ethanol-subsidy-made-us-fatter/http://www.dailyfinance.com/2012/01/04/how-the-finally-ended-corn-ethanol-subsidy-made-us-fatter/http://www.dailyfinance.com/2012/01/04/how-the-finally-ended-corn-ethanol-subsidy-made-us-fatter/#commentsFiled under: , , ,

High Fructose corn syrupAmerica's food chain has lately produced a bumper crop of headline-ready catastrophes. From arsenic in apple juice to antibiotics in beef to E. coli-tainted lettuce, a trip to the friendly neighborhood grocery store can sometimes feel like a round of Russian roulette.

But the biggest threat -- the one that food experts agree is most responsible for America's health, economic, and dietary problems -- has just been neutralized: At the end of 2011, Congress allowed the much-vilified corn ethanol subsidy to expire.

Ethanol, a gasoline replacement and additive that could help reduce America's dependence upon foreign oil, has long been America's top recipient of alternative fuel funding. And since 1980, corn ethanol -- essentially, gas made from corn -- has been the biggest beneficiary of the biofuel craze. Over the past 30 years, the federal government has given an estimated $45 billion to the corn industry to help support ethanol production. In 2011 alone, those subsidies totaled about $6 billion, or about 45 cents for every gallon of ethanol.

Sweetner use dipsBrutalizing America's Waistlines ...

But the investment in generating more home-grown fuel has also generated a host of painful side effects. First, by driving down the cost of corn, the subsidy helped spur the wider use of America's most notorious sweetener: high fructose corn syrup.

Starting in the mid-1980s, as subsidy money trickled through the agricultural economy, farmers and food production companies discovered that, even when sale prices for corn were low, the government's largess meant it was still worthwhile to grow it -- lots of it. This meant that more was grown than could be consumed by people or livestock, but only so much of the excess could be made into fuel. Turns out, ethanol is hard on engines, so the standard blend of gas that goes into your tank is only 10% ethanol -- the rest is good old fossil fuel.

So what were corn producers supposed to do with the rest of that huge surplus?

Enter HFCS. Beginning in the late 1970s, the U.S. instituted tariffs that drove up the price of sugar. By coincidence, a few years later, the corn subsidy started driving down the price of corn. The combination suddenly made HFCS a great deal for food producers. Beginning in the mid-1980s, the sweetener started working its way into foods, and within a few years, it was showing up in thousands of products -- contributing thousands of empty calories a week to the average American diet.

Over the past few years, attacks on HFCS by nutritionists and food wonks like Michael Pollan have made consumers more wary of the additive. However, as HFCS usage has dropped, ethanol use has increased. In 2007, Congress mandated that the U.S. must consume 15 billion gallons of alternative fuels a year -- including ethanol -- by 2015; by 2022, annual usage must increase to 36 billion gallons. As ethanol production has ramped up, it has taken the price of HFCS with it, further reducing the sweetener's viability. The removal of the corn subsidy will likely make HFCS even more expensive -- and less attractive to food producers.

... And Mexico's Economy

At the same time that the corn subsidy was expanding America's waistlines, it was also devastating Mexico's rural economy. Because of the subsidy, U.S. farmers were able to sell corn for less money than it cost them to grow it. When the North American Free Trade Agreement was passed in 1994, it opened Mexico's borders to a tidal wave of cheap American corn. Since then, an estimated 2 million Mexican farm jobs have disappeared as unsubsidized Mexican corn has been priced out of existence. Today, farming in Mexico is a shadow of its former self, and millions of would-be agriculture workers have departed for sunnier pastures -- usually in the United States.

bio fuel

The saddest part of the subsidy saga is that corn isn't actually all that good as a source for fuel. For years, critics have argued that other crops, including sweet potatoes, wood chips, and even switch grass, can produce more fuel per acre than corn.

Bio fuelIn fact, to make the U.S. corn ethanol industry profitable, lawmakers had to institute a tariff against Brazilian ethanol, which is made with sugar cane. The 54-cents-a-gallon tariff, coupled with the 45-cents-a-gallon corn subsidy, effectively cut 99 cents from the price of every gallon of ethanol produced, making American corn ethanol far more cost-effective than competitors from other countries -- or other crops.

The decisions to drop the corn subsidy and kill the tariff aren't the end for ethanol -- or for the endless debates that surround the alternative fuel. Given the questions about the effect of ethanol on engines, it remains to be seen if the federally mandated alternative fuel goals for the next decade will be reached, but one thing is certain: 10 years from now, far less of the ethanol going into America's gas tanks will be coming from corn.




Bruce Watson is a senior features writer for DailyFinance. You can reach him by e-mail at bruce.watson@teamaol.com, or follow him on Twitter at @bruce1971.

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]]>alternative fuelAlternativeFuelcorn ethanol subsidyCornEthanolSubsidye90EthanolEthanol fuel in Brazilgas pricesGasPricesHealthhfcshigh fructose corn syrupHighFructoseCornSyrupMexicoNorth American Free Trade AgreementobesitysugarBruce WatsonWed, 04 Jan 2012 12:40:00 ESTYour Starbucks Fix Is About to Cost Morehttp://www.dailyfinance.com/2012/01/03/your-starbucks-fix-is-about-to-cost-more/http://www.dailyfinance.com/2012/01/03/your-starbucks-fix-is-about-to-cost-more/http://www.dailyfinance.com/2012/01/03/your-starbucks-fix-is-about-to-cost-more/#commentsFiled under: , , , , ,

Your Starbucks Fix Is About to Cost More By Jeff Reeves, Editor of InvestorPlace.com

If your New Year's resolution was to pinch a few more pennies, Starbucks (SBUX) has some bad news for you. The coffee king is raising prices thanks to rising costs of coffee and milk, passing its expenses on to java junkies.

More disturbing, however, isn't the price hike at Starbucks - but the unfortunate reality that nearly all of your favorite restaurants will be charging you more in 2012 than they did last year.

Here are the specifics on Starbucks: The company is raising prices about 1%, on average, in some of its most popular markets in the Northeast and Southwest. Cities such as New York, Dallas, Atlanta and others are the big targets. As one example, a 12-ounce cup of coffee will go up in cost by 10 cents, a Starbucks spokesman said.

This price hike at Starbucks comes after a rash of other increases. Some drinks in California and South Florida became pricier in November, so those regions were excluded from this recent increase. That's after Starbucks raised prices in 2010, then again in early 2011.

We all are paying more these days for essentials like milk and transportation and electricity, so the motivation isn't exactly a mystery. The U.S. inflation rate is tracking a roughly 3.4% annual rate based on recent data.

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But that doesn't make the coffee price change any easier to swallow - especially considering Starbucks has seen its year-over-year revenues increase for eight consecutive quarters, and has seen 10 straight quarters of profit increases. It's not exactly like SBUX is going bankrupt because of coffee costs.

What's more, other restaurants have been passing on their cost burden to consumers in an effort to prop up their bottom line. McDonald's (MCD) is in many ways a top competitor of Starbucks with its McCafe line, and McDonald's raised menu prices on a host of items in 2011. Burrito broker Chipotle (CMG) is in the same boat, in June announcing a price hike as food costs jumped from 32% to 35% of its overall business expenditures.

If you think you can stop eating out to avoid this trend, think again. Inflation is eating away at family food budgets, from items like peanut butter and ground beef to soy and Coca-Cola (KO) soft drinks. Heck, even Thanksgiving was a price shock - with the cost of a traditional turkey dinner up 13%, or $6 per household.

So if your New Year's resolution was to save a few more bucks this year by cutting costs, the reality is you probably will have to pair that with another goal: going on a diet.

Jeff Reeves is the editor of InvestorPlace.com. Write him at editor@investorplace.com, follow him on Twitter via @JeffReevesIP and become a fan of InvestorPlace on Facebook. Jeff Reeves holds a position in Alcoa, but no other publicly traded stocks.


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]]>chipotle mexican grillChipotleMexicanGrillCoca-Colacoffeecommodity pricesCommodityPricesFacebookFinancefood pricesFoodPricesinflationMcDonald'smenumilkpersonal financePersonalFinanceStarbucksstarbucks pricesStarbucksPricesTwitterInvestorPlaceTue, 03 Jan 2012 11:45:00 ESTAn Unappetizing Truth at Butterball: Turkey Abusehttp://www.dailyfinance.com/2011/12/30/an-unappetizing-truth-at-butterball-turkey-abuse/http://www.dailyfinance.com/2011/12/30/an-unappetizing-truth-at-butterball-turkey-abuse/http://www.dailyfinance.com/2011/12/30/an-unappetizing-truth-at-butterball-turkey-abuse/#commentsFiled under: ,

ButterballWhen consumers think of the Butterball brand, they think turkey. But on Thursday, unappetizing images of poultry in peril emerged that might cause many Butterball buyers to ponder what really went on before their holiday turkey dinners reached their plates.

Animal rights group Mercy for Animals went undercover and caught workers at a North Carolina Butterball-affiliated turkey facility on video abusing the birds. The footage reveals that workers stomped, kicked, threw, and dragged the animals.

If that's not enough to cause you to lose your lunch, some turkeys had untreated wounds and injuries such as open sores, infections, rotting eyes, and broken bones.

Butterball abuseMercy for Animals presented the footage and filed a formal legal complaint with local law enforcement, resulting in a warrant and raid on the facility Thursday morning.

In response, Butterball said it's working with Hoke County officials regarding the allegations, and that it has "zero tolerance" for cruelty to its birds. It also said it's conducting its own investigation, both internally and through third-party audits.

Butterball claims it trains employees to use humane treatment and has a company policy in place requiring workers to report any abuse they witness. Obviously, though, something went terribly wrong at Butterball; purported company policy and the images caught on video are at odds.

Supply and Demand (for Better Animal Treatment)

Major companies like Butterball need to be on the ball when it comes to eradicating such behavior. Consumers are becoming increasingly aware of animal welfare in various supply chains.

In November, The Humane Society of the United States filed a complaint against Smithfield Foods (SFD) regarding its continued use of gestation crates for sows. The Humane Society saw McDonald's (MCD) as guilty by association; Smithfield is a major supplier of the fast-food giant's pork.

Smithfield has since recommitted to its timeline to phase out the inhumane crates by 2017, a vow it had previously put off two years ago.

McDonald's must really be getting the picture, because later in November, it ditched egg supplier Sparboe after Mercy for Animals caught video footage of that farm's ugly treatment of birds.

Good Treatment, Better Business

If you think it's frivolous for companies like Butterball and McDonald's to care, think again. It's economics.

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Studies have shown that aggregate meat demand has decreased as consumers have become more aware of animal welfare issues in factory farming.

For example, last year, researchers Glynn Tonsor and Nicole Olynk, agricultural economists at Kansas State University and Purdue University, released a study showing that without the increase in animal welfare media coverage from 1999 through 2008, pork and poultry demand would have been 2.7% and 5% higher, respectively.

An agribusiness survey has even shown consumers' increasing distaste regarding inhumane treatment at factory farms. More than 40% of those surveyed stated that the U.S. is "on the wrong track" in terms of food production, and 20% are uncomfortable with the soundness of the food supply here in the U.S.

Making Moral Progress

Gandhi once said, "The greatness of a nation and its moral progress can be judged by the way its animals are treated." More American consumers seem to realize that there's no good reason why animals should be abused and tortured before they make their way to Americans' plates.

Surely American companies can innovate to cut inhumane treatment from their operations and supply chains. They'll have to, as more and more consumers are asking for that kind of moral progress.

Motley Fool analyst Alyce Lomax does not own shares of any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of McDonald's.



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]]>animal crueltyanimal rightsAnimalCrueltyAnimalRightsButterball turkey abuseButterballTurkeyAbuseHealthHumane societyHumaneSocietyMcDonald'sMcdonald's CorpMercy for AnimalsMercyForAnimalsSmithfield Foods IncThe Motley FoolAlyce Lomax, The Motley FoolFri, 30 Dec 2011 12:20:00 ESTHow to Get Your New Year's Eve Bubbly Without Paying a Bundlehttp://www.dailyfinance.com/2011/12/30/how-to-get-your-new-years-eve-bubbly-without-paying-a-bundle/http://www.dailyfinance.com/2011/12/30/how-to-get-your-new-years-eve-bubbly-without-paying-a-bundle/http://www.dailyfinance.com/2011/12/30/how-to-get-your-new-years-eve-bubbly-without-paying-a-bundle/#commentsFiled under: ,

It's not surprising that Champagne is the traditional tipple for New Year's parties: The wine of kings has a luxurious reputation that elevates even the most plebeian celebration, and its cheerful little bubbles seem to promise a bright, sparkly future. But as 2011's annus pretty-damn-horribilis transitions into 2012, it is hard to justify shelling out a small fortune for a bottle of genuine French Champagne.

Still, if the idea of ringing in the New Year with cheap substitutions like J. Roget or Korbel leaves you feeling flat, don't worry: There are plenty of other sparkling options out there.

Prosecco and Cava: The Classic Standbys

Lorena Ascencios, the wine buyer at Astor Wines and Spirits says that, when it comes to great sparkling wines at a great price, the best choices are "Prosecco and Cava, hands down." Prosecco, produced in Northwest Italy, comes from glera or prosecco grapes. "It's a good sipping sparkler," Ascencios notes, with outstanding bottles available in the $10 to $15 range.

Part of the reason that Prosecco is so much cheaper than Champagne lies in its preparation method. Champagne is produced through a process called methode champenoise, in which it's fermented twice -- once in a barrel, and a second time in its bottle. Prosecco also has a two-stage fermentation method, but the second fermentation happens in a large steel tank. Afterward, the sparkly wine is bottled under pressure.

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The Prosecco production process -- called the Charmat method -- costs less than methode champenoise and results in wines with larger bubbles. Ascencios likes Scu Do, which her store sells for $8.96 a bottle, and Mia, which costs $6.96. While these tend to be sweet, some Proseccos are drier: Castelir, for example, costs $16.95 a bottle and offers a more sophisticated flavor.

For those who prefer a more traditional champagne flavor, Cava is also a great option. Ascencios describes the Northeastern Spanish wine as "dry, with mineral flavors more attuned to salty foods, snacks, and seafood." Unlike Prosecco, Cava is often made through methode champenoise, which produces a drier bubbly. Not surprisingly, Cavas can be a bit more expensive, but Ascencios notes that there are some great deals available for under $15. She especially suggests Casteller, which Astor sells for $11.96 a bottle; Naveran, which costs $14.96; and Savia Viva, which costs $8.96.

Find the Real Thing ... for Less

While there are lots of great sparkling wines available for under $15, for some people, only true French bubbly will do. As with any other purchase, brand-name Champagnes often cost more than lesser-known gems. But the price difference doesn't necessarily reflect a higher quality wine. Large Champagne companies often spend a lot of money on promotion, passing the cost on to the consumer. By comparison, Ascencios notes, smaller brands often "are just doing what is second nature to them -- giving phenomenal value for the price."

Some especially good deals include Michel Loriot Blanc de Noir, which Ascencios' store sells for $36.96 a bottle; Pierre Brigandat non-vintage brut, which retails for $32.96 a bottle, and Brigandat Rose, which costs a bit more, at $39.96 a bottle.

Go Farther Off the Usual 'Wine Country' Map

Another method for getting a good bottle for less is to search among more obscure wine-making regions, which often produce outstanding vintages for less than their better-known cousins. For example, Hungary's Torley Winery has been producing sparkling wines since the 1800s, but its relative obscurity means its offerings can be real bargains. Tess Lampert, a representative of the Blue Danube wine company, notes that Torley's Gala wine "offers fruity flavors and loose bubbles," much like a Prosecco. Its Hungaria Grand Cuvee, on the other hand, is bottle-aged -- like a Champagne -- and has a "yeasty" flavor and "tight, small bubbles," much like the French wine.

Vintners from around the world offer sparkling wines that are surprisingly good and surprisingly low-priced. So when it comes to finding a great wine for New Year's Eve -- or for any day, for that matter -- Ascencios offers great advice: "Don't be afraid of something you don't recognize. There are a lot of interesting wines off the beaten path!"

Bruce Watson is a senior features writer for DailyFinance. You can reach him by e-mail at bruce.watson@teamaol.com, or follow him on Twitter at @bruce1971.



Gallery: 7 Financial New Year's Resolutions You Should Keep

8 Financial New Year's Resolutions You Should Keep1. Trim Your Waistline -- and Your Insurance Premiums2. Become a Smarter Shopper3. Simplify Your Day-to-Day Finances4. Increase Your Financial Literacy






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]]>bargainsBlue DanubeBruce WatsoncavaChampagneEntertainmentFrench wineNew Year's Eveproseccosparkling wineSparklingWineWine CountryBruce WatsonFri, 30 Dec 2011 07:00:00 ESTChristmas Dinner by the Numbers: How Much Did the Price of the Feast Increase?http://www.dailyfinance.com/2011/12/21/christmas-dinner-by-the-numbers-how-much-did-the-price-of-the-f/http://www.dailyfinance.com/2011/12/21/christmas-dinner-by-the-numbers-how-much-did-the-price-of-the-f/http://www.dailyfinance.com/2011/12/21/christmas-dinner-by-the-numbers-how-much-did-the-price-of-the-f/#commentsFiled under: ,

Christmas DinnerThe holidays are a time for nostalgia. And stuffing your stomach to the brim. Why not combine the two by taking inventory of a typical Christmas dinner and comparing today's prices -- and, in some instances, serving portions -- to those of yesteryear?

Let's start with the wine -- specifically Chandon Sparkling Red from Domaine Chandon in California's Napa Valley. Those who have sipped Domaine Chandon's bubbly fare are in good company: Both President Obama and former President George W. Bush have served sparkling brut and rose versions to visiting dignitaries. When the Sparkling Red was introduced in 2003, it cost $19. Today, a bottle will set you back $30.

If you're serving eggnog, then you'll also need to put rum or bourbon on your shopping list. If you're trying to pinch pennies, you might want to follow Martha Stewart's eggnog recipe. It serves 26, and calls for 5½ cups of booze, while to scale Rachael Ray's rum eggnog recipe to that many servings would require 6½ cups of spirits. You'll also save on eggs with Martha's brew. Her recipe calls for one dozen eggs; Rachael Ray's calls for one egg a serving, meaning a whopping 26 eggs. (Of course, Ray's portion sizes are about a third larger.)

If you haven't hosted the family holiday dinner in the past decade, brace yourself for the higher cost of a well-rounded festive meal, based on Bureau of Labor Statistics data from November 2001 and today:
  • Uncooked beef roast: up 45%
  • Non-canned ham: up 14%
  • Mashed potatoes: up 67%
  • Milk: up 23%
One menu item that's become a relative bargain in the past few years: fresh green beans. The cost per pound since 2008 has declined 23%.

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If turkey is on the menu, make sure you have enough on hand for second and third helpings. In the fourth quarter of 1970, Americans' per capita turkey consumption was 4.1 pounds. By last holiday season, that figure had jumped to 5.1 pounds. It's no wonder Americans are roughly 20 pounds heavier than they were two decades ago.

Finally, it's not really the holidays until somebody gives you a fruitcake, is it? These days, a one-pound fruitcake will run you $19.95 -- the same as it was five years ago, in fact. Some things never change -- or spoil, in the case of the much-maligned dessert. It's one of those gifts that can hang around for months, years, and even, potentially, an entire century. So maybe this is the year to stock up -- you know, just in case prices rise between now and Christmas future.

Motley Fool contributor Dawn Kawamoto is heavily invested in the spirit of Christmas.

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]]>Christmas dinnerchristmas menuChristmasMenueggnogEntertainmentfood costsFoodCostsfruitcakehamMartha StewartpricesRachael RayturkeywineDawn Kawamoto, The Motley FoolWed, 21 Dec 2011 07:00:00 ESTCoke Shares Its Secret Formula (Sort Of)http://www.dailyfinance.com/2011/12/20/coke-shares-its-secret-formula-sort-of/http://www.dailyfinance.com/2011/12/20/coke-shares-its-secret-formula-sort-of/http://www.dailyfinance.com/2011/12/20/coke-shares-its-secret-formula-sort-of/#commentsFiled under: , , , ,

Coca-ColaCoca-Cola (KO) is finally giving consumers a glimpse of its secret formula -- but just a glimpse.

Earlier this month, Coca-Cola moved its secret formula to a vault to be displayed in its World of Coca-Cola museum in downtown Atlanta as part of the company's 125th anniversary celebrations. The formula was previously stored in a bank vault at SunTrust Bank (STI), where it had resided since 1925.

Although the formula for Coca-Cola was created in 1886, when Dr. John Pemberton invented the concoction and founded the company, it was not written down on paper until 1919, when a group of investors, led by Ernest Woodruff, made plans to purchase the business.

Woodruff asked for the formula to be documented as collateral for his initial investment. At that point, the formula was stored in a vault at the Guaranty Bank in New York until it was moved to Atlanta's Trust Company (which later became SunTrust) in 1925.

What's Really on Display

Coke's Chairman and CEO Muhtar Kent claims that the display of the formula will allow customers to "celebrate both the rich history of the brand's beginnings and the moments of refreshment and happiness to come for future generations."

Unveiled in a vault, Coca-Cola's secret formula has found a new home at the World of Coca-Cola. AP

Actual sharing -- as in laying eyes on the formula -- will have to be left to the imagination, since the formula itself remains hidden from customers. Standing between safe-crackers and the secret formula is a keypad and hand-imprint scanner attached to the vault.

But even if you could get your hands on the formula, it probably wouldn't be of much use anyway: Given the increasing use of high-fructose corn syrup due to cost cutting, the current recipe is likely very different from the original formula passed down from Pemberton.

Besides, the real secret to Coca-Cola's worldwide success isn't what's behind the lock.

Coke's Real Trade Secret (Hint: It's Not the Flavor)

The highly orchestrated pageantry is more of a reflection of Coke's marketing genius than the importance of its "trade secret."

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Coca-Cola knows how to sell an image, and that's clearly on display in this display -- billowing "smoke" welcomes museumgoers into the exhibit that leads into a red-carpeted cylinder-shaped room (mimicking the shape of a can) displaying the vault.

It's the company's marketing genius that has made Coca-Cola the largest beverage company, beating out rival PepsiCo (PEP) and much smaller peers such as Dr Pepper Snapple (DPS). In fact, the company's production expenses pale in comparison to marketing expenses. Coke is the most recognizable brand in the world, and has customers in over 200 countries consuming 1.7 servings of Coke products daily.

By displaying the mysterious formula locked away in a vault hidden from view, Coke communicates to its customers that Coke is the "real thing," with a formula created 125 years ago, and guarded so carefully that competitors cannot access and copy it. The funny thing is that how the beverage itself is made is almost inconsequential.

Jim Royal, Ph.D., does not own shares of any company mentioned here. The Motley Fool owns shares of Coca-Cola. Motley Fool newsletter services have recommended buying shares of Coca-Cola.


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]]>anniversarycoca cola formulaCocaColaFormulaErnest WoodruffFinanceJohn PembertonmarketingMuhtar Kentsecret formulaSecretFormulasodaSuntrust BankvaultJim Royal, The Motley FoolTue, 20 Dec 2011 15:00:00 ESTCoke Fans See Red Over Seasonal White Canshttp://www.dailyfinance.com/2011/12/19/coke-fans-see-red-over-seasonal-white-cans/http://www.dailyfinance.com/2011/12/19/coke-fans-see-red-over-seasonal-white-cans/http://www.dailyfinance.com/2011/12/19/coke-fans-see-red-over-seasonal-white-cans/#commentsFiled under: , , ,

Coca-Cola's (KO) bold move of distributing seasonal white cans of regular Coke has been met with a host of negative public responses ranging from confusion to distaste -- literally.

The company says this year's design was meant to raise awareness about the dangers of global warming to polar bears and their habitat, part of the company's partnership with the World Wildlife Fund. The white cans were meant to be reminiscent of snowy days.

It turns out they were reminiscent of something else: Diet Coke.

Customers have complained that the wintry Coke cans look too much like Diet Coke cans, with some small businesses reporting that opened sodas were being returned once purchasers realized the contents weren't what they expected. One diabetic Diet Coke drinker told ABC News that she drank a whole can and "wondered why it tasted so good" before realizing that she'd purchased three six-packs of regular Coke instead of diet.

A Matter of Taste

Incredibly, others claimed that the Coke in the seasonal cans "tasted different" than Coke in red cans, with one couple posting a video on YouTube in which the wife did a blind taste test and identified the Coke from the white can as "the funky one."

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Others simply called the color change "blasphemy" and criticized the company for straying to far from its "classic" design. In the wake of the grassroots backlash, Coke announced that it would soon be releasing red seasonal cans that will also include polar bear images. The company claims it's likely that the white cans will be completely phased out in favor of the red cans by February.

Ye Olde Coke

Perhaps these reactions shouldn't be a surprise to Coca-Cola. Unlike PepsiCo (PEP), which is branded as a "young" and "fresh" brand, Coca-Cola relies heavily on nostalgia and its "classic" image. Who could forget the New Coke fiasco of the 1980s, when the company attempted to switch up its soda formula? Consumers would have none of it.

While special seasonal designs have long been utilized by the company to generate customer excitement, its brand limits what it can do to maintain loyalty while getting people excited. This latest design generated a lot of buzz -- but not the response Coca-Cola was looking for.

Jim Royal, Ph.D., does not own shares of any company mentioned here. The Motley Fool owns shares of Coca-Cola and PepsiCo. Motley Fool newsletter services have recommended buying shares of PepsiCo and Coca-Cola. Motley Fool newsletter services have recommended creating a diagonal call position in PepsiCo.


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]]>ABC NewsCoca Cola CoCoca-ColacomplaintsDiet Cokefunky cokeFunkyCokeNew Cokeseasonalsodasoda canSodaCanThe Motley FoolWhite Coke CansWhiteCokeCansWorld Wildlife FundWorldWildlifeFundJim Royal, The Motley FoolMon, 19 Dec 2011 12:30:00 ESTBe Careful Picking From the Menu of Restaurant Stockshttp://www.dailyfinance.com/2011/12/07/be-careful-picking-from-the-menu-of-restaurant-stocks/http://www.dailyfinance.com/2011/12/07/be-careful-picking-from-the-menu-of-restaurant-stocks/http://www.dailyfinance.com/2011/12/07/be-careful-picking-from-the-menu-of-restaurant-stocks/#commentsFiled under: , ,

Be Careful Picking From the Menu of Restaurant StocksIf you're finding it a bit easier to snag a table at your favorite restaurant lately, don't go crediting your debonair charm or your glowing Yelp review. Eateries really are less crowded these days.

Retail tracker NPD Group is forecasting that dining activity won't pick up until the latter half of next year. After a marginal 0.2% uptick during this year's first quarter, restaurant traffic has suffered 0.4% declines through the second and third quarters.

It's the economy, of course.

Pesky unemployment rates, high gas prices, and uncertain economic growth prospects make consumers less likely to splurge on a fancy outing. Even fast-food dollar menus can't compete with that cup of ramen noodles in your cupboard.

If you wanted any confirmation of the problematic industry trend, Darden Restaurants' (DRI) preliminary quarterly report should set you straight.

Darden if You Do, Darden if You Don't

"When you're here, you're family," is Olive Garden's slogan.

Well, Tuesday's earnings report makes Olive Garden parent Darden seem more like a broken home.

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Shares of Darden fell 12% after the company posted uninspiring preliminary fiscal second-quarter results and slashed its bottom-line growth target for the entire year. Darden now sees earnings climbing 4% to 7% in fiscal 2012, which ends in May, short of the 12% to 15% growth it was originally forecasting.

Darden is a major player in casual dining. It runs the Olive Garden, Red Lobster, and LongHorn Steakhouse chains. It also watches over the smaller Capital Grille, Bahama Breeze, Seasons 52, and Eddie V's chains that largely aim for a slightly more affluent crowd.

The problem spot for Darden right now is Olive Garden. Red Lobster and LongHorn held up well during the fiscal second quarter, but its Italian concept suffered a 2.5% dip in U.S. same-restaurant sales. Darden is responding to the shortfall at Olive Garden. It will push for new menu items across various price points. Darden will also work on a new marketing campaign that emphasizes the chain's value advantage over pricier Italian trattorias.

Like a busboy juggling a tray full of plates, its challenge here is not to lose sight of the many moving parts as it tries to set things right.

Optimistic Desserts

Dining out isn't going away. Flattish industry results suggest that there's a winner for every loser. Restaurant reservations specialist OpenTable (OPEN) saw a 42% spike in seated diners in its latest quarter, though a good chunk of that was the result of OpenTable growing its participating restaurants by 25% over the past year.

And some chains will continue to prosper. Analysts see Chipotle Mexican Grill (CMG), for example, growing its profitability by 21% this year and accelerating to 26% growth next year.

Investors may not necessarily want to wait until eatery traffic picks up a year from now. The key is to separate the winners from the losers. A little field research this weekend at your restaurant of choice may be more than a little overdue.

Longtime Motley Fool contributor Rick Munarriz does not own shares in any stocks in this article. The Motley Fool owns shares of OpenTable, Chipotle Mexican Grill, and Darden Restaurants. Motley Fool newsletter services have recommended buying shares of Chipotle Mexican Grill and OpenTable.


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]]>Chipotle Mexican GrillDarden Restaurantsdining outDiningOutLongHorn SteakhouseOlive GardenrecessionRed Lobsterrestaurant stocksRestaurantStocksstocks to watchStocksToWatchYelp, Inc.Rick Aristotle Munarriz, The Motley FoolWed, 07 Dec 2011 09:30:00 ESTMcDonald's Turns On a Dime to Beat San Francisco's Happy Meal Lawhttp://www.dailyfinance.com/2011/12/05/mcdonalds-turns-on-a-dime-to-beat-san-franciscos-happy-meal-la/http://www.dailyfinance.com/2011/12/05/mcdonalds-turns-on-a-dime-to-beat-san-franciscos-happy-meal-la/http://www.dailyfinance.com/2011/12/05/mcdonalds-turns-on-a-dime-to-beat-san-franciscos-happy-meal-la/#commentsFiled under: , , ,

McDonald's Happy Meal Clobbers Critics With KindnessA Happy Meal without a toy is, well, just a meal. However, McDonald's (MCD) has found a clever way to keep peddling Happy Meals in San Francisco, despite the city's having outlawed free promotional toys with meals that fail to meet certain nutritional requirements.

The trinket-banning law went into effect Thursday, and here's McDonald's response: Parents will have to request the toys, which will add an extra dime to Happy Meal prices. McDonald's will then donate those dimes to the Ronald McDonald House of San Francisco. (McDonald's Ronald McDonald House program provides support to families of sick children, as well as basic medical and dental care in some communities.)

Believe it or not, McDonald's Happy Meals actually do meet the law's requirement of having less than 600 calories. (They contain 500 calories.) The issue is that Happy Meals fall short of the law's standard for fruit and vegetable quotas. The San Francisco Department of Public Health doesn't count french fries as a vegetable.

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McDonald's critics are correct to raise awareness of such matters as marketing to children and health issues with popular fast-food fare. However, picking on Happy Meals is a bit joyless, not to mention insulting to the entire concept of parental choice in kids' diets.

Although CNN quoted San Francisco City and County Supervisor Eric Mar acknowledging parental responsibility amid America's childhood obesity epidemic, he also mentioned fast-food companies' benefiting from kids' "pester power." I'm not sure what it says about America's future if "pester power" might be considered too "powerful" to combat.

McDonald's has found a way to preserve the toys and parental choice, and it's not even seeking to profit off the nominal fee it's now charging for the toys to avoid providing them "free." The fast-food giant may have made a brilliant checkmate here -- and has certainly painted its overzealous critics in a negative light.

Motley Fool analyst Alyce Lomax does not own shares of McDonald's.




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]]>free toysFreeToysHappy MealHealthlawMcDonald'snutritionRonald McDonald House Charitiessan franciscoSanFranciscoAlyce Lomax, The Motley FoolMon, 05 Dec 2011 10:45:00 ESTThis Thanksgiving, Don't Forget to Thank Canada for Your Dinnerhttp://www.dailyfinance.com/2011/11/24/this-thanksgiving-dont-forget-to-thank-canada-for-your-dinner/http://www.dailyfinance.com/2011/11/24/this-thanksgiving-dont-forget-to-thank-canada-for-your-dinner/http://www.dailyfinance.com/2011/11/24/this-thanksgiving-dont-forget-to-thank-canada-for-your-dinner/#commentsFiled under:

This Thanksgiving, Don't Forget to Thank Canada for Your Dinner When it comes to eating locally, it's hard to beat the original Thanksgiving dinner. In addition to today's classic turkey, it featured lobsters, clams, deer, corn, beets, and almost every other animal, fruit and vegetable that the Pilgrims and their Wampanoag guests could hunt or gather.

Today's diners have far more options than the original Pilgrims, and the string beans, sweet potatoes, cranberries, and other foods that show up on the Thanksgiving table are often canned or frozen as they are shipped from state to state or country to country. While all that convenience multiplies our Thanksgiving options, it makes it harder to ensure that the classic all-American dinner is actually coming from the U.S. of A.

Cranberries are a good example: While the original accounts of the first Thanksgiving don't mention the tart berries, it's likely that at least a few of them made it to the table. Cranberries are native to Massachusetts, and are still one of its major crops. In fact, the Bay State is the country's second biggest cranberry producer, coming in right behind Wisconsin.

But, while the U.S. produced 679.6 million pounds -- of cranberries in 2010 (that's 308,261 metric tons) it is still a net importer, bringing in 110,843 metric tons in 2010. Most of these came from Canada, and many were sold by Ocean Spray, the Massachusetts-based cooperative that is synonymous with cranberries in America. Which means the Ocean Spray cranberries or cranberry sauce on your table may well have come from the Great White North.

Ditto for that big bowl of potatoes in the middle of your table. While the U.S. is still a major potato producer, it now ranks fourth among potato growers, and eighth among importers. In fact, according to some experts, almost 10% of the potatoes that show up on U.S. tables were grown outside the country -- and most of them came from Canada, too.

Your sweet potatoes may have traveled from the other direction. The U.S. produces 2.4 billion pounds of the orange tubers; almost half are grown in North Carolina. Still, it also imported 22.3 million pounds of fresh and frozen sweet potatoes in 2010; most came from the Dominican Republic, followed by China.

The ever-popular green bean casserole, a staple of the modern Thanksgiving table, was born out of the convenience food trend. Invented in 1955 by the Campbell's soup company, it was designed to use frozen green beans, cream of mushroom soup and fried onions -- ingredients that every housewife would have in her cupboard or freezer. Today, those ingredients come from farms around the world: The U.S. imports almost $112 million worth of mushrooms ever year, mostly from Canada. As for onions, it brings in 885.5 million pounds, mostly from Mexico. But green beans may be the biggest import in the dish: One in six packages of frozen green beans comes from outside the U.S., often from Mexico, China, France and, yes, Canada.

But it's not all bad news for locavores. Chances are good that the Thanksgiving turkey was born and bred on U.S. soil. This year, the country is on track to raise 248 million of the birds, valued at $4.37 billion. By comparison, the country imported just $7.8 million worth of the birds. Then again, it's worth noting that turkey prices are rising faster than any other ingredient on the Thanksgiving table: Over the last year, they've gone up by 4%.

On the bright side, even if your turkey was imported, it probably didn't come too far: 99.7% of U.S. turkey imports come from -- wait for it -- Canada!

Bruce Watson is a senior features writer for DailyFinance. You can reach him by e-mail at bruce.watson@teamaol.com, or follow him on Twitter at @bruce1971.

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]]>Bruce WatsonCampbell Soup CompanyCanadacranberriesDominican Republicfoodgreen bean casserolegreen beansGreenBeanCasseroleGreenBeansImportsMassachusettsMexicoOcean Spraypotatoessweet potatoesSweetPotatoesThanksgivingthanksgiving dinnerThanksgivingDinnerturkeyBruce WatsonThu, 24 Nov 2011 03:20:00 ESTCan You Make Better Soda at Home Than Coke or Pepsi?http://www.dailyfinance.com/2011/11/15/can-you-make-better-soda-at-home-than-coke-or-pepsi/http://www.dailyfinance.com/2011/11/15/can-you-make-better-soda-at-home-than-coke-or-pepsi/http://www.dailyfinance.com/2011/11/15/can-you-make-better-soda-at-home-than-coke-or-pepsi/#commentsFiled under: , ,

There's a cola war brewing, and it has nothing to do with Coca-Cola (KO) or PepsiCo (PEP).

The battle for brewing home-based pop is heating up now that bottled water magnate Primo Water (PRMW) is introducing its Flavorstation appliance to compete with SodaStream's (SODA) fast-growing system.

How easy is it to make carbonated beverages at home? Is it cheaper? Isn't soda bad for you?

You're probably going to like all three answers, but let's start at the beginning.

Birth of a Carbonated Movement

SodaStream is an Israeli company that has spent the past few years growing through Western Europe. Its market penetration in Sweden, for example, is now up to 25% of the Scandinavian country's households.

Despite its long overseas track record, SodaStream waited until last year to make an aggressive entry into the U.S. market. It landed a willing partner in Bed Bath & Beyond (BBBY), which not only agreed to feature the system and its soda flavors prominently in its home goods superstores but also became an important participant in SodaStream's CO2 cylinder exchange program.

CO2 cylinder what? SodaStream's starter kits retail for $100 and up for fancier models. The starter systems include the maker itself -- a compact manual appliance that doesn't require batteries or electricity -- a carbonator cylinder that fizzes up flat water, and a sample of various soft drink flavors.

The lightweight CO2 cylinders are good for roughly 60 liters of sparkling water. They typically retail for about $30, but you pay just $15 if you're exchanging a used carbonator. Dozens of varieties of syrups are available for roughly $6 each, and they're good for the equivalent of 33 cans of soda.

Making a soda is easy. Twist on a reusable bottle with a liter of water, tap the carbonation button that activates the CO2 cylinder until you hear a few buzzes, and you have seltzer. Then it's just a matter of pouring in the flavor of your choice, or just enjoying the sparkling water on its own or with a few drops of all-natural fruit essences.

Flavorstation works the same way, and its entry-level model starts at a compelling price point of $80. The rub with Flavorstation is that it's brand new. Home improvement chain Lowe's (LOW) is the only retailer currently stocking the Flavorstation, though you can order one directly from the company.

The Economy of Home Brews

Fresh soda does have taste advantages. CNBC's Jim Cramer challenged skeptical cohort Herb Greenberg to a blind taste test in May. SodaStream beat out name brand canned soft drinks all four times.
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Does it make financial sense? SodaStream's cost evaluation finds that a liter of sparkling water will set you back $0.25, a substantial discount relative to buying soda water at the store. The math is simple, since it's just the $15 carbonator refill divided by the 60 liters.

Obviously it costs more once you begin pouring in syrups, and that math breaks down to $0.25 a can. It's not the same kind of bargain, especially when compared to cheap supermarket brands. Buyers also have to factor in the initial purchase, though it does include a $30 carbonator and enough syrups and essences for several initial liters.

However, it's at this point where the other advantages of home-based beverages begin to make sense. There's no lugging cans or bottles from the store and storage allocations.

Eco-minded soda sippers will also appreciate the environmental benefits. A carbonator is good for the equivalent of 170 cans of soda. Between the greenhouse gas emissions during the production process and the landfills brimming with the vast majority of cans and bottles that don't get recycled, home pop is kind to one's carbon footprint.

To Your Health

There's no denying that soft drinks -- specifically non-diet sodas -- aren't good for you. The sugary and often caffeinated kicks may provide a near-term boost, but nutritionists generally prefer that folks scale back their soda consumption. Switching to fresh home-based sodas will help.

An eight-ounce serving of regular Coke or Pepsi is loaded with 100 calories, 27 grams of carbs, and 27 grams of sugar. The same-sized serving of SodaStream's cola is just a 34 calorie beverage with 9 grams of carbs and 9 grams of sugar. In other words, SodaStream's cola syrup is just a third as bad as brand name soda.

Flavorstation's nutritional information isn't as kind. An 8-ounce cola serving packs 55 calories, 14 grams of carbs, and 14 grams of sugar, but it's just roughly half as bad for you as Coke or Pepsi.

Pop Goes the Boom

During this week's quarterly earnings call, CEO Dan Birnbaum pointed out that there are now 400,000 active users of SodaStream's beverage makers in the United States.

He's not overly concerned by Flavorstation's threat, pointing out that the company has achieved 80% market share in European countries where it faces competition. SodaStream also continues to expand its retail distribution. Target (TGT) and Staples (SPLS) became the latest outlets to begin stocking SodaStream systems and flavors, and Staples also participates in the carbonator exchange program.

You don't need to recall Sweden's 25% market penetration to realize that this isn't a fad. Revenue grew 39% in SodaStream's latest quarter, and adjusted earnings more than doubled. The growth is there. The unit economics, convenience, environmental benefits, and nutritional advantages are there.

Choosing between SodaStream and Flavorstation is open for debate, but don't be surprised if you find yourself gifting -- or being gifted -- a home beverage system this holiday season.

Longtime Motley Fool contributor Rick Munarriz does not own shares in any of the stocks in this article. The Motley Fool owns shares of PepsiCo and Coca-Cola. Motley Fool newsletter services have recommended buying shares of Staples, Bed Bath & Beyond, Lowe's, Coca-Cola, PepsiCo, and SodaStream International. Motley Fool newsletter services have also recommended writing covered calls in Lowe's and recommended creating a diagonal call position in PepsiCo.

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]]>caloriesCoca Cola Codiet sodaDietSodaFinanceflavorstationhealthHome ImprovementLowe'snutritionPepsiPepsiCoprimo waterPrimo Water CorpPrimoWatersodastreamStaples Inc.sugarRick Aristotle Munarriz, The Motley FoolTue, 15 Nov 2011 10:00:00 EST