AGP Executive Report

Food Prices: Higher fuel costs from the Iran war are raising delivery and production expenses, but grocery price effects remain uneven as businesses absorb some of the increases. Grocery Operations: A cyberattack has kept Ahold Delhaize’s U.S. supermarket websites offline for days, disrupting online orders and access to loyalty rewards. Food Industry Deals: U.S. antitrust clearance paves the way for McCormick’s $44.8 billion deal with Unilever. Restaurant Drinks: KFC plans to replace PepsiCo beverages with Coca-Cola at its U.S. restaurants in 2027. Food Security: Colorado food banks face mounting pressure from inflation and SNAP cuts. Food Safety: Consumer confidence has fallen after a summer of high-profile recalls. Cattle Supply: A new U.S. allowance for tariff-free beef imports has drawn concern from ranchers facing a historically small domestic cattle herd.

Grocery Disruption: A cyber incident at Ahold Delhaize has kept websites and apps offline for Food Lion, Stop & Shop, Hannaford and Giant for days. Stores remain open, but online shopping is disrupted and the outage has renewed concerns about supermarket supply chains. Food Safety: A cheddar cheese recall tied to E. coli concerns comes as reports point to falling public confidence in food safety after a summer of recalls. Costs and Access: Food prices were unchanged overall in September, but shoppers still face uneven price swings, while food banks report mounting pressure as SNAP benefits drop. Restaurant News: KFC plans to switch its U.S. restaurants from Pepsi to Coca-Cola in January 2027. Farm and Trade: Illinois corn growers hosted Mexican millers to build export ties around food-grade white corn, while Kentucky received $414,000 in USDA specialty-crop grants for grower-focused projects.

Restaurant Deals: KFC will replace Pepsi with Coca-Cola at thousands of U.S. locations by spring 2027, ending a decades-long partnership. Food Costs: U.S. producer prices rose 1.3% in September, the biggest monthly jump in four years; higher wholesale food costs and fuel prices could push up grocery and restaurant bills. Food Safety: Federal inspectors plan routine Listeria swabs at deli-meat plants starting in January, following the deadly Boar’s Head outbreak. Texas has also sued Gerber and Nestlé over alleged heavy metals in baby food. A large U.S. study found no link between overall ultra-processed food intake and colorectal cancer, while higher meat intake was associated with greater risk. Grocery Risks: A cyberattack spoiled food in about 700 European supermarkets by tampering with refrigeration systems, highlighting a threat to U.S. grocers. Food Access: Inflation and SNAP cuts are straining food banks, with reports of 40,000 residents losing benefits in one area and about 80,000 Kentuckians losing food-aid access.

Food Rules: The FDA will let manufacturers replace some or all added sodium chloride in 139 standardized foods, including bread, cheese and canned tuna, with substitutes such as potassium chloride. The rule takes effect Dec. 14. Recalls and Safety: PepsiCo recalled more than 122,000 Gatorade bottles after four flavors were found to contain undeclared yellow food dyes. Separately, federal inspectors plan routine Listeria swabs at deli meat plants starting in 2027, following the deadly Boar’s Head outbreak. Legal Fight: Texas Attorney General Ken Paxton sued Gerber and Nestlé over alleged heavy metals in baby food. Nutrition Research: A controlled study found adults over 65 improved blood sugar regulation, cholesterol and other health measures after cutting ultra-processed foods for eight weeks. Food Costs: Grocery prices remain under pressure: September’s food CPI was unchanged, but wholesale food prices rose, potentially foreshadowing higher costs for shoppers.

Healthy Aging: A controlled eight-week study found adults over 65 who cut ultra-processed foods saw improvements in blood sugar, cholesterol and inflammation, even without extreme dieting. Food Costs: U.S. inflation reached 3.7% in September, with gasoline prices jumping 9.1% — adding pressure to household budgets and food distribution costs. Food Assistance: More than 80,000 Kentuckians lost SNAP benefits over the past year; participation also fell across Missouri, Kansas and Oklahoma after federal eligibility changes. Product Reformulation: The FDA is paving the way for salt reduction across dozens of food categories, a change with implications for manufacturers and shoppers. Food Safety: Consumer Reports urged the FDA to explain its response to a Cyclospora outbreak linked to lettuce that sickened nearly 13,000 people, citing delays and unclear public updates. Agricultural Research: USDA and Washington State University opened a 100,000-square-foot Pullman facility focused on crop research, including wheat, potatoes and legumes.

Food Costs: U.S. inflation accelerated to 3.7% in September, with gasoline prices up 9.1% for the month, adding pressure to household budgets and food businesses’ transport costs. Retail Resilience: A cyberattack overheated refrigeration systems at hundreds of French supermarkets and spoiled food; separate incidents disrupted websites and apps at U.S. grocery chains, underscoring risks to food supply systems. Policy & Production: The FDA is paving the way for salt reductions across dozens of food categories, while the USDA announced $86.6 million for the U.S. specialty-crop industry. Farmers in Alabama also raised concerns about high input costs and delayed federal assistance as debate over the farm bill continues. Industry Moves: B&G Foods is selling its B&M and Joan of Arc bean brands to McCall Farms, using proceeds to reduce debt and streamline its portfolio. Food & Health: A controlled study found that older adults who reduced ultra-processed foods for eight weeks improved several metabolic measures, including blood sugar regulation and cholesterol.

Food Safety: PepsiCo recalled more than 122,000 cases of Gatorade across 37 states because some bottles contain Yellow No. 5 or Yellow No. 6 dyes missing from the labels. Separately, a survey found U.S. consumer confidence in food safety has fallen to a record low. Farm Support: USDA is directing $86.6 million to specialty-crop projects, while the John Deere Foundation pledged $18.5 million for food banks and farmer connections, including $13 million in Iowa. Supply Chain Risks: Cyberattacks that overheated refrigeration systems at hundreds of French supermarkets spoiled food and underscored the vulnerabilities of connected grocery equipment. Food Costs: Rising fuel prices are adding to inflation worries, with higher transport costs a concern for food producers and retailers. Nutrition Research: A controlled study found adults over 65 who cut ultra-processed foods for eight weeks improved several measures of metabolic health, even without extreme dieting. Restaurant Growth: Freddy’s Frozen Custard & Steakburgers opened its 600th U.S. restaurant, in South Carolina, using a smaller format designed to expand into more locations.

Grocery Security: A cybersecurity incident at Hannaford parent Ahold Delhaize disrupted U.S. grocery websites, though stores remained open and the company reported no evidence of stolen customer or employee data. Separately, attacks on French supermarkets’ refrigeration systems spoiled food, highlighting risks to grocery operations. Food Safety: U.S. confidence in food safety has fallen to a record low, as a multistate smoked-fish recall over possible Listeria contamination adds to consumer concerns. After a cyclospora outbreak, Taylor Farms says it will suspend U.S. sales of iceberg lettuce harvested in central Mexico during the May–August risk period and expand monitoring. Nutrition Research: In a controlled eight-week study, adults over 65 who ate fewer ultra-processed foods improved blood sugar regulation, insulin sensitivity, cholesterol and inflammation without extreme dieting. Food Access: South Dakota advocates are urging the governor to join the summer food-benefit program, which would provide eligible families $120 per child and could reach about 57,000 children in the state.

Food Safety: Two recalls put shoppers on alert: broccoli sprouting seeds linked to a Salmonella outbreak that sickened 32 people, and smoked fish recalled in six states over possible Listeria contamination. No deaths were reported in the seed outbreak; no illnesses were reported in the fish recall. Retail Launches: Macho’s Mexinnaise Valentina Mayo is rolling out to 287 Walmart stores across 11 states, bringing the hot-sauce-flavored condiment to U.S. shoppers. Nutrition Research: A controlled eight-week study found older adults who sharply reduced ultra-processed foods improved blood sugar regulation, insulin sensitivity, cholesterol and inflammation—even when diets met similar nutrient targets. Consumer Confidence: Americans’ confidence in grocery food safety has fallen to a record-low 65%, according to a new Gallup poll.

Food Safety: The FDA announced a recall of Starfish Seafood Trio cold-smoked salmon, halibut and trout over possible listeria contamination. The product was distributed in six states; no illnesses have been reported. Retail Cybersecurity: Giant Food Stores’ website went offline after parent Ahold Delhaize detected a security incident, though its U.S. stores remained open. Separately, hackers disrupted refrigeration at hundreds of French supermarkets, spoiling food and underscoring risks to grocery operations. Dairy Consolidation: The number of U.S. dairy cooperatives has fallen from more than 1,900 in 1952 to 107 in 2023. Three major co-ops now market about 83% of milk sales, raising concerns among some farmers about conflicts of interest. Farm & Harvest: Cranberry growers on Washington’s Long Beach Peninsula are harvesting a crop that brings in more than $10 million annually in Pacific County. Restaurant Growth: Just Salad opened its second Naples, Florida, location as the fast-casual chain expands in the market.

Food Safety: U.S. grocery food-safety confidence has fallen to a record-low 65%, as FDA inspectors report cockroaches on cheese equipment and flies on ready-to-eat food at a Florida plant; a Brooklyn wholesaler also recalled smoked seafood over possible listeria. Seafood Supply: Alaska’s pollock fishery, which supplies McDonald’s Filet-O-Fish and other products, faces backlash over salmon bycatch amid declining runs and a seven-year Chinook fishing ban on the Yukon River. Farm Costs: Rising diesel prices are squeezing farmers and truckers, threatening to push food costs higher. Trade: Montana Gov. Greg Gianforte led a mission to Sri Lanka to explore export opportunities for the state’s food and agricultural producers. Restaurant Business: True Food Kitchen filed for Chapter 11 and plans to close 12 locations, while PepsiCo’s weak North American demand is prompting cost cuts and planned price increases.

Harvest: U.S. cranberry growers are gathering a crop that generates more than $10 million in annual sales in Washington’s Pacific County, where the fruit has been grown commercially for over 140 years. Food Safety: Broccoli sprouting seeds sold online are being recalled after an FDA-linked Salmonella outbreak sickened 32 people in six states; the agency also released its 2026 Food Code for retail and foodservice operators. Regulation: The FDA is weighing a broader exemption that could let some chemicals enter the food supply without prior safety review, drawing warnings from food-safety advocates. Farm Costs: Michigan farmers face nearly $1,200 more to fill a large combine with diesel than at the start of the year, adding pressure to farm finances and potentially grocery prices. Analysts doubt promised Russian fuel shipments will bring quick relief. Food Access: SNAP enrollment has fallen in Oklahoma, while local food banks report rising demand—renewing concerns about how benefit cuts affect households and food retailers.

Food Safety: U.S. authorities destroyed Korean frozen oysters six times after norovirus was detected, as concern over food safety remains high. The FDA has also released an updated Food Code for retail and foodservice operators. Nutrition: New research is lending support to full-fat milk, cheese and yogurt as U.S. dietary advice shifts. Food Access: Oklahoma SNAP enrollment is down 20%, with local food banks describing the strain. Separately, a study links food insecurity later in life with higher odds of probable dementia. Farm Costs: Farmers say immigration policies are adding to food costs, while diesel-price pressures threaten to raise expenses across the supply chain. Industry: PepsiCo’s weak U.S. sales are prompting a turnaround focused on cost cuts and logistics; McDonald’s faces a lawsuit alleging its AI pricing tool raises menu prices.

Produce Safety: Taylor Farms will stop selling U.S. and Canadian iceberg lettuce harvested or processed in Mexico during the May–August rainy season starting in 2027, after a cyclospora outbreak sickened as many as 12,000 people and was linked to its Mexican facility. Recalls and Rules: Gatorade recalled more than 120,000 cases nationwide, while Nature’s Own Hawaiian Bread was recalled in five states over an undeclared ingredient. The FDA also released its 2026 Food Code for retail food and foodservice operators. Costs and Supply: Diesel price spikes could push food costs higher this fall, and farmers say tighter immigration policies are adding to expenses. Trump’s move to sharply increase beef imports is also drawing pushback from Nebraska ranchers. Food Access: Oklahoma food banks report rising demand as SNAP enrollment falls, while food insecurity is peaking in Umatilla County amid federal changes.

Food Safety: FDA wrapped its investigation into the summer’s Taylor Farms-linked cyclospora outbreak, which sickened nearly 13,000 people; officials said they could not determine how contamination occurred. The agency also released a 2026 Food Code for foodservice and retail operators. Labeling Under Fire: Starbucks faces a class-action suit alleging its “sugar-free” protein drinks contain up to 21 grams of sugar per large serving, largely from milk. Kids and Energy Drinks: Doctors are urging the Big 12 and NCAA to reconsider energy drink marketing to young people after Monster’s conference sponsorship raised concerns about high caffeine levels. Costs and Consumers: Higher diesel prices could push food costs up this fall, while PepsiCo plans price increases and cost cuts amid weak North American sales. Restaurant Business: True Food Kitchen filed for Chapter 11 and plans to close 12 locations. Food Access: Local providers report rising demand as SNAP cuts leave more households seeking help.

Convenience Retail: Shoppers say better value, higher-quality food and fresh meals could bring more of them to convenience stores, which compete with fast-food and grocery outlets. Food Industry: PepsiCo plans cost cuts and price increases after weak North American sales, as consumers remain squeezed by rising living costs. Food Safety: Confidence in the food system is under strain, with recent recalls spanning Gatorade products, frozen berries over E. coli concerns and baby sleep gripe water containing undeclared alcohol. Restaurants: McDonald’s faces a lawsuit alleging its pricing recommendations helped drive menu prices higher; the company says franchisees set prices and the tools don’t coordinate them. True Food Kitchen has filed for Chapter 11 and closed 12 locations. Food Access: Food insecurity is worsening in parts of the country, while SNAP rule changes have reduced food-aid enrollment in Louisiana.