Oct 2008
Mexican Vanilla No Bargain
29/10/08 22:09 Filed in: In the News
Eating too many holiday cookies this coming season could indeed make you sick -- if they contain vanilla flavoring made from a tonka bean. Flavoring made with these beans has been manufactured in Mexico, and in some cases, put on the shelves for sale in the U.S.
When I read the following FDA alert, I flew to my pantry to throw out the bottle of vanilla flavoring that I had bought for this season’s holiday baking. Sold under the name of “Dancy”, the vanilla flavoring contains a dangerous toxic substance that is producd from the same compound as blood-thinning prescription drugs. Beware of one bargain that isn't always a good buy—so-called Mexican "vanilla." This flavoring product may smell like vanilla, taste like vanilla, and be offered at a cheap price. But it's often made with coumarin, a toxic substance banned in food in the United States.
In addition to being sold in Mexico and other Latin American countries, the coumarin-containing product has appeared on the shelves of some U.S. stores. The Food and Drug Administration (FDA) advises consumers not to purchase this product.
Pure vanilla is made with the extract of beans from the vanilla plant, a type of orchid that grows as a vine. Mexican vanilla is frequently made with the extract of beans from the tonka tree, an entirely different plant that belongs to the pea family. Tonka bean extract contains coumarin, a compound related to warfarin, which is in some blood-thinning medications. Eating food containing coumarin may be especially risky for people taking blood-thinning drugs because the interaction of coumarin and blood thinners can increase the likelihood of bleeding.
Tips for Consumers
When I read the following FDA alert, I flew to my pantry to throw out the bottle of vanilla flavoring that I had bought for this season’s holiday baking. Sold under the name of “Dancy”, the vanilla flavoring contains a dangerous toxic substance that is producd from the same compound as blood-thinning prescription drugs. Beware of one bargain that isn't always a good buy—so-called Mexican "vanilla." This flavoring product may smell like vanilla, taste like vanilla, and be offered at a cheap price. But it's often made with coumarin, a toxic substance banned in food in the United States.
In addition to being sold in Mexico and other Latin American countries, the coumarin-containing product has appeared on the shelves of some U.S. stores. The Food and Drug Administration (FDA) advises consumers not to purchase this product.
Pure vanilla is made with the extract of beans from the vanilla plant, a type of orchid that grows as a vine. Mexican vanilla is frequently made with the extract of beans from the tonka tree, an entirely different plant that belongs to the pea family. Tonka bean extract contains coumarin, a compound related to warfarin, which is in some blood-thinning medications. Eating food containing coumarin may be especially risky for people taking blood-thinning drugs because the interaction of coumarin and blood thinners can increase the likelihood of bleeding.
Tips for Consumers
- Be wary about buying vanilla in Mexico and other Latin American countries. Look for "vanilla bean" in the ingredient list on the label. If it has "tonka bean" or if there is no ingredient list or a vague one, avoid this product.
- Don't risk your health to save a few dollars. Vanilla with coumarin is generally sold at a lower price than pure vanilla because tonka beans are cheaper to grow than vanilla beans. If the price sounds too good to be true, pass it up.
- Don't buy a food product in the United States that is not labeled in English. Products may have Spanish or other non-English labeling, but they must also have complete English labeling to meet U.S. Government standards. (Products sold only in Puerto Rico are an exception—they are not required to be labeled in English.)
- Call the FDA Consumer Complaint Coordinator for your geographic area if you suspect that a food product sold in the United States has been imported illegally. (See list of contacts at www.fda.gov/opacom/backgrounders/complain.html.)
Harry and David Recall
23/10/08 23:35
October 22, 2008 -- Harry and David, of Medford, Oregon, is voluntarily recalling approximately 400 1 lb. 4 oz. boxes labeled Harry & David Moose Munch Confection, Milk Chocolate Gingerbread because the package may contain a different Moose Munch product which contains pecans not declared on the ingredient statement. People who have an allergy or severe sensitivity to pecans run the risk of serious or life-threatening allergic reaction if they consume this product.
Affected product was distributed throughout the United States under the Harry & David brand only in Harry and David stores.
Harry and David is recalling 1 lb. 4 oz. boxes of Harry & David Moose Munch Confection, Milk Chocolate with a "Best if used by" date of 06/28/09. The "Best if used by" date is located on a sticker on the bottom of the box. The bottom of the box also has the stock identifying number RSD142014 printed on it. This lot of product was sold beginning 10/09/08. The popcorn-based confection is packaged in 1 lb. 4 oz. brown and white paperboard boxes. The boxes have a slight wedge shape and feature a large white moose image on the front. Inside the boxes are clear plastic bags of the confection.
There have been no illnesses or injuries reported to date. Anyone concerned about an illness/injury should contact a physician immediately.
This problem, which was discovered on October 21st, 2008, occurred because Dark Chocolate Butter Pecan Moose Munch® Confection was inadvertently packed in a Milk Chocolate Gingerbread outer box. It is estimated that fewer than 60 such boxes were produced.
Consumers with product may return it to any Harry and David retail store for a full refund. Consumers with questions about the recalled product may phone the Harry and David Customer Service division at 800-233-1101, 24 hours a day.
#
Koala Cookie Recall
21/10/08 09:49 Filed in: In the News
October 17, 2008 -- Lotte USA, Inc., Battle Creek, MI initiated a recall of all Koalas' March Cookies on September 29, 2008 because they were produced in China and they may be contaminated with melamine. The products are packaged in a plastic overwrap and the recall includes the following products:
Koala March King Size Chocolate 1.8 oz 50 grams UPC 0 81900 00001 7 Koala March King Size Strawberry 1.8 oz/50 grams UPC 0 81900 00007 9
Koala March King Size White Chocolate 1.8 oz/50 grams UPC 0 81900 00011 6
Koala March Family Pack Chocolate 9.5 oz/270 grams UPC 0 81900 08001 9
Koala March Family Pack Strawberry 9.5 oz/270 grams UPC 0 81900 08002 6
Koala March Family Pack White Chocolate 9.5 oz/270 grams UPC 0 81900 08011 8
Koala March Family Pack Chestnut 9.5 oz/270 grams UPC 0 81900 08010 1
Koala March Family Hawaii Chocolate 9.5 oz/270 grams UPC 0 81900 08003 3
Koala March Family Hawaii Pineapple 9.5 oz/270 grams UPC 0 81900 08004 0
The product were distributed nationwide and to Canada through wholesale distributors and retail stores. Lotte USA, Inc. is not aware of any illnesses or injuries associated with these products.
Individuals who have experienced any health problems after consuming the Koala March cookies are advised to contact their health care professional.
Customers who have purchased Koala’s March cookies are urged to return them to the place of purchase for a full refund or discard it in their trash. Consumers with questions may contact the company at (269) 963-6664, Monday to Friday, 9:00 to 5:00 Eastern Standard Time.
Common Pricing Formula?
15/10/08 18:26 Filed in: Q & A
Q. Can you explain the most common method used in pricing a gift basket?
A. The most common way is not the most accurate way to determine a profitable margin, nor does it insure one, but it is helpful to newcomers to the trade. Here is the common formula:
Add up the wholesale cost of merchandise, container, and supplies (ribbon, shred, etc.). Double that base wholesale sum. Next, add a labor fee, usually between 15% - 30%. Finally, add the tax and delivery.
Example:
Wholesale cost $20
X 2 = $40
Plus Labor (20%) +$8 = $48
Plus tax and delivery = Final Retail Price
A. The most common way is not the most accurate way to determine a profitable margin, nor does it insure one, but it is helpful to newcomers to the trade. Here is the common formula:
Add up the wholesale cost of merchandise, container, and supplies (ribbon, shred, etc.). Double that base wholesale sum. Next, add a labor fee, usually between 15% - 30%. Finally, add the tax and delivery.
Example:
Wholesale cost $20
X 2 = $40
Plus Labor (20%) +$8 = $48
Plus tax and delivery = Final Retail Price
Cost of Nested Baskets?
15/10/08 13:39 Filed in: Q & A
Q. When baskets come in a set of 3 (or more), and are priced as a group, how do you determine how much each individual basket would cost? Obviously, the largest basket costs more than the smallest.
A. The following set pricing information comes from the Willow Specialties catalog: Sets of three: 25% small
33% medium
42% large
Sets of four: 17% small
22% next up
28% next up
33% largest
Sets of five: 10% small
15%
20%
25%
30% largest
Set of 3 Example:
$10 for a set of 3 nested baskets
$2.50 for the smallest
$3.30 for the medium sized basket
$4.20 for the largest basket)
Sole Proprietor vs. LLC
15/10/08 13:28 Filed in: Q & A
Q. What Is the difference in a Sole Proprietor and a Limited Liability Company (LLC)?
A. As a sole proprietor, your personal and family assets are exposed to legal action;as a limited liability company, only the COMPANY'S assets are exposed. That is, of course, an oversimplification of the structure. Talk to a business attorney before you decide on a structure, because it is costly to change later. Seek more in depth information about business types from the SBA (Small Business Administration). Look for a lawyer that specializes in small business matters.
A. As a sole proprietor, your personal and family assets are exposed to legal action;as a limited liability company, only the COMPANY'S assets are exposed. That is, of course, an oversimplification of the structure. Talk to a business attorney before you decide on a structure, because it is costly to change later. Seek more in depth information about business types from the SBA (Small Business Administration). Look for a lawyer that specializes in small business matters.
Move Into Retail?
15/10/08 13:17 Filed in: Q & A
Moving a Home based Business into a Retail Location
Q. I'm at a crossroads in my business. After operating from my basement studio for 4 years, I have not yet turned a decent profit because I keep investing in more things like Yellow Pages advertising, coupon advertising, a van lease, and now a web site. Now, I’ve found the perfect location for a retail store. The landlord is willing to work with me to move my business into this location, believing, as I do, that this is a prime location for a gift basket business. But, should I be turning a positive profit on my home based business before I consider moving into a retail location.
A. This is a hard question. With my first gift delivery business, like you, I often found myself looking at empty storefronts in the neighborhood. Eventually I rented a tiny space next to a busy, trendy restaurant. Business boomed. Six months after moving into the tiny space, I moved around the corner to a much larger shop. A year after that I sold the business and made a good profit. Taking that step into retail worked for me and it might work for you. But, I would wait until your business is earning enough to comfortably stash some cash before you move. Then, you’ll have money to invest in more inventory, spruce up the shop, advertise your new location, and feel more comfortable making the big plunge.
Q. I'm at a crossroads in my business. After operating from my basement studio for 4 years, I have not yet turned a decent profit because I keep investing in more things like Yellow Pages advertising, coupon advertising, a van lease, and now a web site. Now, I’ve found the perfect location for a retail store. The landlord is willing to work with me to move my business into this location, believing, as I do, that this is a prime location for a gift basket business. But, should I be turning a positive profit on my home based business before I consider moving into a retail location.
A. This is a hard question. With my first gift delivery business, like you, I often found myself looking at empty storefronts in the neighborhood. Eventually I rented a tiny space next to a busy, trendy restaurant. Business boomed. Six months after moving into the tiny space, I moved around the corner to a much larger shop. A year after that I sold the business and made a good profit. Taking that step into retail worked for me and it might work for you. But, I would wait until your business is earning enough to comfortably stash some cash before you move. Then, you’ll have money to invest in more inventory, spruce up the shop, advertise your new location, and feel more comfortable making the big plunge.
Christmas Forecast - Up 2%
06/10/08 15:44 Filed in: In the News
NRF Foresees Challenging Holiday Season, Forecasts Meager Sales Gains of 2.2 Percent
--NRF/BIGresearch to Unveil New Consumer Survey Info at 1 p.m. Media Briefing--
Washington, September 23, 2008 -- The National Retail Federation today released its forecast for the upcoming 2008 holiday season, projecting that sales will rise 2.2 percent this year to $470.4 billion.* This gain would fall well below the ten-year average of 4.4 percent holiday sales growth and would represent the slowest growth since 2002, when holiday sales rose 1.3 percent.
“Current financial pressures and a lack of confidence in the economy will force shoppers to be very conservative with their holiday spending,” said NRF Chief Economist Rosalind Wells. “We expect consumers to be frugal this season and less willing to splurge on discretionary items.”
A number of economic indicators point to a challenging holiday for retailers. A struggling housing market and rising unemployment accompanied by meager income gains will continue to hamper the consumer throughout the season. Food and energy costs will remain high. With the current financial industry crisis continuing to chip away at consumer confidence, NRF does not foresee an economic turnaround until the second half of next year.
Halloween Sales Expected to Rise
06/10/08 15:37 Filed in: In the News
Halloween Celebrations Rise as Consumers Look to Escape Everyday Realities
--Total Halloween spending to reach $5.77 billion--
Washington, September 30, 2008 – The spookiest holiday of the year may bring a bit of needed relief to consumers and retailers. According to the National Retail Federation’s Halloween Consumer Intentions and Actions Survey, conducted by BIGresearch, more consumers plan to celebrate the holiday this year (64.5% vs. 58.7%). This year, the average person plans to spend $66.54 on the holiday, up from $64.82 one year ago. Total Halloween spending for 2008 is estimated to reach $5.77 billion.*
Though the economy is struggling, Halloween sales may be a bright spot for retailers this fall,” said Tracy Mullin, NRF President and CEO. “Consumers--who have been anxious and uncertain for the past several months--may be looking at Halloween as an opportunity to forget the stresses of daily life and just have a little fun.”
This year’s survey results are reminiscent from 2002 Halloween data. Though consumers at the time were uncertain about the economy and a host of geopolitical factors, Halloween spending was strong. The holiday was seen as a way for consumers to escape from the uncertainties of daily life. In addition, many consumers at the time saw Halloween as a way to let loose during an otherwise tense period. NRF expects to see some of the same patterns this year for Halloween, as evidenced by the fact that the number of people who plan to celebrate is up and that people plan to spend moderately more than a year ago.
This year, consumers will spend an average of $24.17 on Halloween costumes (including costumes for adults, children, and pets). People will also be buying candy ($20.39 on average), decorations ($18.25) and greeting cards ($3.73).
Halloween remains most popular with young adults, as 18-24 year-olds plan to spend $86.59 on the holiday, the most of any group.
People will celebrate Halloween in a variety of ways, with the most popular activities including handing out candy (73.7%), carving a pumpkin (44.6%), and decorating (50.3%). Many consumers will also dress in costume (35.3%), throw or attend a party (31.1%), and take children trick-or-treating (33.6%).
“After months of bleak economic news, consumers are looking for a reason to let loose,” said Phil Rist, Vice President of Strategy for BIGresearch. “And with Halloween falling on a Friday this year, consumers may plan to celebrate all weekend long.”
The NRF 2008 Halloween Consumer Intentions and Actions Survey was designed to gauge consumer behavior and shopping trends related to the Halloween season. The surveys were conducted for NRF by BIGresearch. The poll of 8,167 consumers was conducted from September 2-9, 2008. The consumer poll has a margin of error of plus or minus 1.0 percent.
BIGresearch is a consumer market intelligence firm that provides unique consumer insights that are gathered online utilizing very large sample sizes. BIGresearch's syndicated Consumer Intentions and Actions survey monitors the pulse of more than 7,500 consumers each month to empower its clients with unique insights for identifying opportunities in a fragmented and changing marketplace.
The National Retail Federation is the world's largest retail trade association, with membership that comprises all retail formats and channels of distribution including department, specialty, discount, catalog, Internet, independent stores, chain restaurants, drug stores and grocery stores as well as the industry's key trading partners of retail goods and services. NRF represents an industry with more than 1.6 million U.S. retail establishments, more than 24 million employees - about one in five American workers - and 2007 sales of $4.5 trillion. As the industry umbrella group, NRF also represents more than 100 state, national and international retail associations. www.nrf.com.
--Total Halloween spending to reach $5.77 billion--
Washington, September 30, 2008 – The spookiest holiday of the year may bring a bit of needed relief to consumers and retailers. According to the National Retail Federation’s Halloween Consumer Intentions and Actions Survey, conducted by BIGresearch, more consumers plan to celebrate the holiday this year (64.5% vs. 58.7%). This year, the average person plans to spend $66.54 on the holiday, up from $64.82 one year ago. Total Halloween spending for 2008 is estimated to reach $5.77 billion.*
Though the economy is struggling, Halloween sales may be a bright spot for retailers this fall,” said Tracy Mullin, NRF President and CEO. “Consumers--who have been anxious and uncertain for the past several months--may be looking at Halloween as an opportunity to forget the stresses of daily life and just have a little fun.”
This year’s survey results are reminiscent from 2002 Halloween data. Though consumers at the time were uncertain about the economy and a host of geopolitical factors, Halloween spending was strong. The holiday was seen as a way for consumers to escape from the uncertainties of daily life. In addition, many consumers at the time saw Halloween as a way to let loose during an otherwise tense period. NRF expects to see some of the same patterns this year for Halloween, as evidenced by the fact that the number of people who plan to celebrate is up and that people plan to spend moderately more than a year ago.
This year, consumers will spend an average of $24.17 on Halloween costumes (including costumes for adults, children, and pets). People will also be buying candy ($20.39 on average), decorations ($18.25) and greeting cards ($3.73).
Halloween remains most popular with young adults, as 18-24 year-olds plan to spend $86.59 on the holiday, the most of any group.
People will celebrate Halloween in a variety of ways, with the most popular activities including handing out candy (73.7%), carving a pumpkin (44.6%), and decorating (50.3%). Many consumers will also dress in costume (35.3%), throw or attend a party (31.1%), and take children trick-or-treating (33.6%).
“After months of bleak economic news, consumers are looking for a reason to let loose,” said Phil Rist, Vice President of Strategy for BIGresearch. “And with Halloween falling on a Friday this year, consumers may plan to celebrate all weekend long.”
The NRF 2008 Halloween Consumer Intentions and Actions Survey was designed to gauge consumer behavior and shopping trends related to the Halloween season. The surveys were conducted for NRF by BIGresearch. The poll of 8,167 consumers was conducted from September 2-9, 2008. The consumer poll has a margin of error of plus or minus 1.0 percent.
BIGresearch is a consumer market intelligence firm that provides unique consumer insights that are gathered online utilizing very large sample sizes. BIGresearch's syndicated Consumer Intentions and Actions survey monitors the pulse of more than 7,500 consumers each month to empower its clients with unique insights for identifying opportunities in a fragmented and changing marketplace.
The National Retail Federation is the world's largest retail trade association, with membership that comprises all retail formats and channels of distribution including department, specialty, discount, catalog, Internet, independent stores, chain restaurants, drug stores and grocery stores as well as the industry's key trading partners of retail goods and services. NRF represents an industry with more than 1.6 million U.S. retail establishments, more than 24 million employees - about one in five American workers - and 2007 sales of $4.5 trillion. As the industry umbrella group, NRF also represents more than 100 state, national and international retail associations. www.nrf.com.