Food Roundup: Kellogg Issues Peanut-Butter Warning, Coke Sued over VitaminWater, Denny's Sales off, and More

Kellogg Issues Salmonella ‘Precaution’
Kellogg is recommending that consumers avoid its Austin and Keebler brands of peanut-butter crackers.

While the company says that its “investigation has not indicated any concerns,” it is taking “precautionary measures” because of an outbreak of salmonella that has sickened more than 400 people in 43 states. The tainted peanut butter was made by Peanut Corporation of America, which is one of several suppliers to Kellogg. The company said it is putting a “hold” on inventories of peanut-butter-based products and is removing products from store shelves.

Kellogg asked consumers to hold on to their product until more information is obtained, but also said that refunds are available upon request. [Source: CNN]

Coke Sued over VitaminWater Nutrition Claims
Coca-Cola’s claims that VitaminWater is nutritious are “nonsense,” says the Center for Science in the Public Interest, which has filed a class-action lawsuit in the U.S. District Court in the Northern District of California.

Coke claims that because the product contains added vitamins, it boosts immunity and fends off disease. Making such claims for a product that is essentially sugar water with some vitamins thrown in “shocks the conscious,” said Stephen Gardner, director of litigation for the Center.

Coke bought Glaceau’s VitaminWater in 2007 for $4.1 billion. Since then, sales have risen by double digits every quarter as consumers are apparently duped into thinking the stuff is some kind of health food, or at least healthier than soft drinks. It might be, but only marginally, and there are far better ways to make sure you get enough vitamins.

Coke hasn’t yet commented on the lawsuit. [Source: AP]

Denny’s Same-Store Sales Decline
The restaurant chain reported that same-store sales fell by 3.2 percent in its fourth quarter at company-owned outlets, while sales were off by 7.2 percent at franchised locations.

Denny’s is cheap compared to harder-hit casual restaurant chains like Ruby Tuesday, but it is still being stung by consumers holding on to their wallets.

For the full year, same-store sales were down 3.7 percent systemwide.

Denny’s owns 315 of its outlets and franchises another 1,226. [Source: AP]

Supervalu Labels Healthy Foods
Supervalu-owned Jewel/Osco will begin labeling foods with tags aimed at helping consumers identify healthy foods. About 10 percent of the chain’s items will get the labels. [Source: Chicago Tribune]