Food Roundup: Salmonella Outbreak, Supervalu Loss, Kellogg to Boost Prices, and More

Salmonella Outbreak Hits 42 States — Here we go again. The U.S. Centers for Disease Control and Prevention is reporting that about 400 people in 42 states have become ill in recent months from a salmonella outbreak that has so far struck in 42 states. One woman may have died from the disease.

So far, it’s not known what food or foods may be responsible. The CDC isn’t saying which states have been hit, but put it this way: there is about an 80 percent chance your state is one of them.

Officials in Ohio and California say that 51 people so far have taken ill in each of their states. Other states reporting cases include Minnesota (where an elderly woman who carried the disease died), Georgia, Illinois, North Dakota and Michigan.

The illnesses began around September 3 and continued until at least December 29.

Nearly 1 in 5 victims have been hospitalized. [Source: AP]

Supervalu Reports Loss, Will Close Stores — The company that owns Jewel/Osco, Albertson’s and other grocery chains, and runs its own wholesale operation, will close about 50 stores. It also will cut back on store openings and remodeling plans. In all, plans call for a rollback of capital spending to about $850 million in 2010.

Supervalu also forecasted that it will lose more than $12 a share in fiscal 2009. Earlier, it had forecasted profits this year of nearly $3 a share.

The company also said it plans to cut prices and offer more promotions to boost store traffic.

In its third quarter, Supervalu lost $2.94 billion, compared with a profit of $141 million in the year-earlier period. Most of the losses were due to one-time charges. [Source: AP]

Kellogg to Boost Cereal Prices — Despite the fact that commodity prices have fallen by more than half over the past six months or so, the company will hike prices on all nearly of its cereals and on its Pop-Tart toaster pastries.

Increases will be in the low- to mid-single-digit percentage range, the company said.

Commodity and energy prices are still above historical prices. Also, food companies are still to one degree or another operating on the prices they paid for raw materials in the first half of last year, when prices were soaring. Kellogg says its raw materials costs will be about 5 percent higher this year compared to last. [Source: AP]

Ruby Tuesday Losses Continue — The casual-restaurant chain reported a second-quarter loss of 73 cents per share, much more than the 20-cent loss it reported in the same period last year. Revenues fell by 10 percent as diners continued to eat at home or opt for fast food. [Source: AP]