AGP Executive Report

Starbucks Turnaround: Starbucks says its “back to basics” push under CEO Brian Niccol is working, with four straight quarters of positive comparable-store sales and improving margins as it tightens store execution and food availability. QSR Expansion: Zaxby’s is moving into travel hospitality, signing a multi-unit deal with Areas USA to open five restaurants at Florida Turnpike service plazas, starting with a Sept. 29 Orlando location. Protein-Forward Dining: PROTEINHOUSE is leaning into the GLP-1-era nutrition conversation, pitching high-protein, freshly prepared meals and seed-oil-free cooking as it grows for franchisees. Food Safety Recall: FDA reports a nationwide Gatorade recall affecting more than 122,000 cases due to undeclared food dyes, with consumers urged to check affected flavors and lot codes. Retail & Food Retail Tie-In: IKEA will close its Bolingbrook store and relocate to a smaller Naperville format that includes a Swedish Food Market and deli, opening in late 2027. Data & Delivery Privacy: A new report digs into how DoorDash and Amazon capture front-door photos for no-contact deliveries and how long those images may be retained.

Food Safety Recall: FDA says more than 122,000 cases of PepsiCo’s Gatorade (28-ounce bottles in four yellow/orange flavors) were voluntarily recalled because labels didn’t declare synthetic Yellow No. 5/Yellow No. 6 dyes, which can trigger allergic reactions in rare cases. Policy & Shipping: Catholic investors urged FedEx to assess legal and reputational risk from shipping mifepristone across state lines, while the board opposed the shareholder proposal. Aquaculture & Water Quality: A judge let Conservation Law Foundation’s lawsuit against Cooke Aquaculture USA move forward, alleging Maine salmon operations violate Clean Water Act permit conditions. Energy Costs for Food Supply Chains: Trump temporarily expanded use of tax-exempt red-dyed diesel on highways to cut costs for truckers and farmers, deferring highway diesel excise tax collection through end of 2026. Dairy Industry Funding: Wisconsin Cheese Makers Association urged USDA to reverse a new 25% cost-share requirement for Dairy Business Innovation initiatives, warning it could halt grants and technical help. Convenience Retail Pizza: 7-Eleven rolled out a new pizza crust, aiming to boost its QSR pizza push as convenience chains compete harder for share. Beer Industry Watch: Beer Institute published an August 2026 estimate of 10.9M barrels in taxable removals, down 3.5% year over year.

FDA Food Safety: FDA says it has identified the source of the largest U.S. cyclospora outbreak in history, tracing positive findings to a Mexican Taylor Farms site (including a wastewater tank and drainage ditch), though it still can’t pinpoint how lettuce got contaminated; Taylor Farms says the facility is out of its supplier network and remains closed while enhanced protocols roll out. Medical Tech & Health: HeartBeam won FDA Breakthrough Device Designation for its at-home 3D ECG system aimed at earlier heart-attack assessment, while NeuWire Medical received FDA IDE approval for its STROKE-REWIRE pivotal study using a closed-loop vagus nerve stimulation implant to improve arm/hand rehab after chronic ischemic stroke. Ag Policy: President Trump signed an executive order directing USDA to investigate, modernize and expand licensing tied to ranchers processing and selling their own meat, a move ranchers say could help business—though sanitation and oversight remain key concerns. Global Food Prices: UN FAO reports September world food prices rose, driven by transport disruptions, weather shocks, and higher cereal and sugar costs. Food & Drink Recall Watch: FDA flagged large Gatorade recalls tied to undeclared food dyes, with affected flavors and lots varying by state.

Food Safety: PepsiCo recalled about 122,000 cases of Gatorade (28-ounce Lemon Lime, Lemon Lime Zero, Orange, Orange Zero) in 37 states after the FDA said undeclared Yellow No. 5 and/or Yellow No. 6 dyes were present; the recall was upgraded to Class II. Food Safety: Arkansas and other states also saw a frozen-berry recall expanded due to potential E. coli contamination, with shoppers told to discard or return affected Great Value and Trader Joe’s products. Retail & Pricing: A Budget Bytes guide urges shoppers to “tariff-proof” grocery carts with swaps like avoiding canned goods and choosing more stable proteins as tariffs push costs higher. Food Assistance: New SNAP changes are shifting benefit levels and administrative costs for counties, with some areas facing higher burdens even as some households get boosts. Local Food Systems: Rural and community groups are ramping up food support and scrap recovery, including growing demand at choice pantries and new pickup services seeking coffee grounds and eggshells. Industry & Innovation: Hovione plans a next-gen continuous tableting system in the U.S., signaling more flexible manufacturing for oral medicines.

Food Prices & Tariffs: Trump’s tomato tariffs could push up the cost of Mexican tomatoes enough to threaten the “free chips and salsa” tradition at many restaurants, as higher prices and supply shocks squeeze margins. Local Food Policy: Ellsworth, Maine is debating a “food sovereignty” ordinance that would let small producers sell more directly to consumers with fewer hurdles, and local shop owners are split on how much regulation should stay. Health & Nutrition: A doctor warns that fast food and ultra-processed meals can quietly damage kidneys, while another piece argues the modern food industry’s heavy sugar marketing is driving excessive added-sugar intake. Food Safety: Sterling Pharmaceutical Services is recalling more than 500,000 Walgreens-branded eye drops over sterility concerns, part of a broader recall affecting nearly 750,000 products. Industry Expansion: CJ CheilJedang is expanding its Korean spirits brand jari into Los Angeles after launching in New York, leaning on restaurant partnerships and Korean food pairings. Food Science Investment: UMass is set to receive a $120 million “Future of Food” initiative to expand food science research, including sustainability and a new food innovation hub.

Hemp vs. Food & Drink: Congress moved to close a loophole in the federal hemp law that has fueled a booming “hemp THC” market, delaying the effective date to Dec. 11 as producers and lawmakers scramble to avoid a shutdown of THC gummies and other impairing products. Plastic & Retail Accountability: New York protesters targeted Starbucks over claims its single-use plastic cups are recyclable, arguing they end up in landfills and driving new pressure for stronger packaging rules. Health Labeling Push: California signed a first-in-the-nation voluntary label to flag ultra-processed foods, aiming to help shoppers—especially families facing higher health risks—make easier choices. Food Safety Watch: FDA issued a major recall for Gatorade across 37 states after undeclared Yellow No. 5/6 colorings were found. SNAP Changes: SNAP benefits adjusted upward in the latest rollout, but states brace for future eligibility and cost impacts. Fast-Food Tech Stance: Chick-fil-A says it won’t use AI to take drive-thru orders, betting on “human-to-human” service as rivals automate. Food Waste Action: A Fairbanks community composting facility is turning food scraps into compost to divert waste from landfills.

Food Safety Recalls: Walmart and Trader Joe’s recalled frozen organic berries (Great Value blueberries and Triple Berry Blend; Trader Joe’s Mixed Berry Blend) over possible E. coli contamination, with affected lots and “best if used by” dates listed by FDA. Foodborne Illness Update: FDA closed a major lettuce parasite probe tied to cyclospora linked to shredded iceberg lettuce from Taylor Farms in Mexico, but Mexico’s Cofepris says its lab tests on facility materials and water were negative and that environmental findings alone can’t prove the source. Energy Drinks & Kids: A new warning highlights risks of energy drinks for children and teens, stressing caffeine limits and the difficulty parents face with aggressive marketing. Global Food Prices: UN/FAO data shows global food prices rose in September to the highest level since late 2022, driven by weather, shipping disruptions, and El Niño—raising volatility for U.S. grocery costs. Retail & Value: A “dumpster diving” debate reignited questions about retail waste and who’s responsible when edible products get discarded. Industry/Business: Genentech said FDA accepted its NDA under priority review for fenebrutinib, a BTK inhibitor for relapsing and primary progressive multiple sclerosis.

Food Safety: FDA says it found Cyclospora linked to the biggest U.S. outbreak at a Taylor Farms de Mexico wastewater tank and a nearby grower drainage ditch, closing its probe of the shredded iceberg lettuce recall that sickened 12,883 people in 21 states and killed two. Public Health Research: A University of Hawaiʻi at Mānoa study got a $3.3M NIH grant to track how PFAS “forever chemicals” and microplastics may affect infant brain development, following 300 families from pregnancy through the first year. Nutrition Access: Texas Agriculture Commissioner Sid Miller highlighted the Child and Adult Care Food Program, which serves about 200 million meals and snacks statewide through more than 12,000 sites. Food Policy & Cost of Living: SNAP benefit changes take effect this month, with inflation-based payment bumps but tighter rules that increase state funding responsibility. Community & Food Skills: Iowa State Extension’s Cyclone Kitchen launches in Lucas County with hands-on cooking sessions aimed at building lasting nutrition habits. Food Industry Recall Watch: FDA also confirmed a large eye-drop recall affecting hundreds of thousands of units sold under multiple brands due to sterility concerns.

Food Safety: The FDA closed its cyclospora lettuce probe tied to Taylor Farms de Mexico, saying it found the parasite in a wastewater tank and a lettuce drainage ditch, but still can’t determine how contamination happened—after nearly 13,000 illnesses across 21 states. Recall Watch: New York state issued alerts for listeria in raw milk from Big Brook Farm and in a nationwide ready-to-eat Starfish cold-smoked seafood trio (lot D139149161-153). Supply & Prices: The UN says global food prices rose in September on tightened supplies and shipping uncertainty, with sugar, cereals and vegetable oils leading. Industry & Trade: Sen. Cindy Hyde-Smith introduced the Ecuador Shrimp Tariff Act to protect U.S. wild-caught shrimp producers from surging imports. Local Food Access: SNAP changes and rising grocery costs are pushing more families toward food banks and pantries. Wildlife & Farming: USDA’s NRCS in Tennessee is accepting applications for conservation programs, while researchers in Kentucky track New World screwworm to protect livestock.

Food Safety Recalls: Walmart is recalling Bettergoods frozen pasta nationwide over possible listeria contamination, urging customers to return affected 22-ounce packages for a refund. Regulatory Watch: A federal court in Manhattan reinforced FDA preemption in an OTC cancer-warning fight, dismissing state-law labeling theories tied to benzoyl peroxide products. Public Health Access: The FDA is recruiting consumer representatives for drug and device advisory panels, with applications due Nov. 15, 2026. Dairy & Deal News: Sargento completed its acquisition of La Terra Fina, creating a new deli business unit for dips, spreads and quiches. Agriculture Research: Kentucky State University added a third year of field data on whether biochar can help keep soybean soil productive. Trade & Prices: A CHFA CEO warned consumers could see higher prices and fewer choices as trade tensions drag on. Energy Costs & Food Security: Maine Gov. Janet Mills urged Congress to boost LIHEAP after heating-oil prices surged, warning families may have to choose between staying warm and buying food. Industry Growth: Gong cha climbed to No. 129 on Franchise Times’ Top 400, citing faster Americas expansion.

Household Budget Strain: The Penny Hoarder’s 2026 State of Savings survey finds fewer Americans have an emergency cushion, with many using windfalls to cover overdue bills or essentials like groceries and healthcare. Campaign Trail Meets Local Food: GOP congressional candidate Joe Mitchell made stops in Iowa’s Tama-Toledo area, including an ice cream stop at Murph’s Creamery and Grill. Payment Habits Shift: Pew reports 42% of U.S. adults don’t use cash for any purchases in a typical week, a trend that can reshape how food retailers handle checkout and loyalty. Food Safety Recall: Keurig Dr Pepper’s 7UP Tropical recall affects 77,000+ cans in Utah where “Zero Sugar” labels were found on full-sugar soda; consumers are told to discard or return for a refund. Community Hunger Relief: Illinois State University’s Million Meal Pack drew volunteers to assemble 1 million meals for distribution via Midwest Food Bank and partner food banks. Creator Marketing in Retail: Brands report strong returns from creator-led content, with U.S. influencer spending projected to keep rising—relevant for food and beverage promotions. Trade & Food Policy: At the G20, the U.S. sought consensus on priorities including “weaponization of food trade,” but agreement was limited.

Restaurant Expansion: Döner Haus, founded in New York’s East Village, is gearing up for national growth with 11 locations across four states by end of 2026 and is actively seeking franchisees. Food Waste & Community Brewing: Skagit Coalition and WSU Skagit Extension are hosting “Bread to Beer,” turning surplus bread into Chuckanut Brewery’s Baker’s Beer, with leftover grain repurposed into cookies. Retail & Food Access: Feeding America received a $15M Walmart grant to modernize food-bank pickup and cold storage, aiming to rescue 500M pounds of food and expand SNAP outreach. Grocery Footprint: Walmart opened a Neighborhood Market in Crestview, Fla., adding 166 jobs and featuring fresh sushi, ready-to-eat meals, and a deli with tortillas. New Products & Manufacturing: SANY Nutrition Group opened a $30M Jonesboro, Ark., facility and launched its Beyond Resilience protein snack rollouts into Walmart stores. Affordability Pressure: Research finds 70% of Americans juggle multiple affordability burdens, including food, health care, housing, and childcare. Public Health: CDC-backed guidance highlights how parents can build healthy habits to reduce childhood obesity risks. Food Safety: A recall alert flagged raw milk cheese, peperoncini, and cinnamon pulled over E. coli, pest, and lead concerns.

Retail Value Push: Kroger is rolling out a new Kroger Plus credit card tied to its rewards program, aiming to give shoppers easier savings on gas and groceries as fuel costs squeeze budgets. Food Safety Alerts: The FDA announced a multistate recall of cinnamon seasoning due to elevated lead levels, and a separate recall hit Graziers raw milk cheeses after an E. coli outbreak. Pricing & Delivery Tech: McDonald’s is facing more backlash over how AI is used in pricing, while DoorDash is testing drone deliveries and adding a text-message ordering feature. Food Industry Moves: CJ CheilJedang says Bibigo Gimbap sales in the U.S. jumped 59% as distribution expands across major retailers. Community Food Access: Walmart granted $15 million to Feeding America to strengthen food access nationwide. Local Food & Events: An Iowa City family fight over an ICE detention case also spotlighted how food and community support matter during crises.

SNAP Security Upgrade: Virginia began rolling out chip-enabled EBT cards to curb SNAP theft, after reporting more than $1.5M stolen benefits from January–June 2026. Food Safety Alerts: USDA warned that recalled frozen pork breakfast sausage (possible plastic contamination) may still be in restaurant freezers; consumers and businesses should discard or return it. Inflation Watch: The Fed’s preferred PCE inflation gauge cooled in August (0.3% monthly; 3.4% year over year), but markets still saw bond yields firm, keeping rate-hike talk alive. Diesel Pressure on Food Logistics: U.S. on-highway diesel eased to $6.38/gallon, yet freight rates remain high, adding strain to supply chains feeding schools and food banks. Food Access Funding: Walmart pledged $15M to Feeding America to strengthen food rescue, storage, transport, and delivery capacity. Industry & Growth: Barren Inc. honored seven local industries, including Bluegrass Ingredients’ food-industry warehouse expansion in Kentucky. Aquaculture Debate: Chefs and stakeholders pushed back on anti-salmon-farming claims as EU fisheries policy talks increasingly shape future aquaculture support.

Food Safety & Trust: A new survey finds only 31% of Americans strongly agree the U.S. food system produces safe food, as scrutiny grows around a delayed traceability rule and a withdrawn salmonella plan for raw poultry. Prepared Meals: Aldi says it will roll out fresh ready-made meals in October, with single-serve options under $8 and family meals under $15, aiming for nationwide availability by January 2027. Food Allergy Innovation: DBV Technologies filed with the FDA for the VIASKIN Peanut Patch for children ages 4–7, seeking priority review after results from its large VITESSE trial. Food Costs Squeeze: A Georgetown analysis says 68% of Michigan residents face at least one basic-cost burden—housing, food, health care, or child care—mirroring the national 70% figure. Fast-Food Tech Push: McDonald’s is expanding its digital ad ambitions with a “Media Network” that could eventually place third-party ads across restaurant screens, starting with drive-thru menu boards. Consumer Pressure: Primerica’s Household Budget Index reports middle-income purchasing power is improving modestly, but necessity costs remain a key stress point.

AI Pricing Shake-Up: McDonald’s is using an AI engine to recommend “optimal” menu prices by location, potentially pushing different customers to pay different prices for the same items and raising franchisee and antitrust concerns. School Meal Funding: Senators introduced a bill to permanently raise school meal reimbursement rates, aiming to help districts facing higher costs and to expand access for military families. Food Assistance Pressure: A SNAP overhaul deadline approaches Sept. 30, with states taking on more costs tied to benefit-payment error rates—raising the risk of delays or denials for recipients. Food Safety Recalls: Multiple recalls are in the mix, including tuna and breakfast sausage tied to contamination risks, plus a nationwide cheese recall. Hunger Relief on the Ground: Produce giveaways and food bank partnerships are serving record numbers, including a Food Lion–Carolina Hurricanes effort targeting up to 150,000 meals. Controlled-Environment Produce: CEAg World named ENZA Zaden as signature sponsor for its controlled environment agriculture conference, spotlighting innovation for growers. Seafood Cold-Chain: Lineage and BSF extended a 25-year seafood warehousing and distribution partnership through 2028. Brand/Label Watch: A guide highlights how “Parmesan” can differ from protected Parmigiano Reggiano, urging shoppers to check labels.