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Updated on 24/10/2003
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STOP PRESS

New products drive record at McDonald’s

McDonald’s boss Jim Cantaloupo has been careful not to throw out the baby with the bathwater. Following massive changes to its menu, its ingredients and its marketing message after its first-ever loss, the world’s top fast food chain has bounced back with record earnings per share of 43 cents, up 13% on the previous period.

“Our emphasis on improving the taste of our food, the introduction of Premium Salads and McGriddles, continued demand for the Dollar Menu's outstanding value, and other initiatives are generating almost one million new customer visits each day,” Cantaloupo said. “While we are pleased with our customers' response to these innovations, our efforts remain aligned around delivering improved service and a superior overall restaurant experience.”

Total income for the quarter was $547m, up 11% (7% in constant currencies), driven mainly by increased US, French and German sales.

HEADLINE NEWS 23 October 2003

CIAA welcomes German deposit review 
Risk management, stock price drive sustainability
EU to spend 166m euros on food research

Trade

CIAA welcomes German deposit review  

European food and drinks industry body, the CIAA, has welcomed the European Commission’s decision to test the legality of Germany’s controversial deposit system for “one-way” drinks containers, mainly cans and plastics bottles.

The EC believes Germany’s system may breach EU law that bans discrimination against imports from member countries. German retailers are reluctant to stock imported single-serve drinks, up to 95% of which are packed in “single-trip” containers, because they bear the cost of disposing of them. As a result, they have restocked goods packed in refillable containers, mostly from local suppliers.

“Imports of carbonated soft drinks, water and beer have therefore significantly decreased and the choice of German consumers is consequently limited,” the CIAA said.

EC internal market commissioner Fritz Bolkestein said he isn’t against the deposit system. But after months of discussions with the German authorities, a national collection and disposal system is still not in place, and that this created an indirect barrier to trade for non-German drinks suppliers.

Germany has two months to respond to the EC’s formal request for information. If the commission is unsatisfied with the response, it could send a formal request for changes to the system. If Germany does not comply, it could take the case to the European Court of Justice.

Sustainability

Risk management, stock price drive sustainability

Less risk and a winning run-up in the share price are the main reasons for operating a business on a sustainable basis. Environmental concerns are way down the list.

These insights come from a survey of members of the World Business Council for Sustainable Development (WBCSD) just out. The council has 170 members from 30 countries and includes most global brand owners.

In terms of selling sustainability internally, respondents risk reduction ranked top with 39% of the vote, followed by market opportunities (19%) and operational efficiency and effectiveness (18%). Other factors were enhancement of brand and creation of goodwill (13%), recruitment & retention of talent (6%), and protecting the resource base of raw materials (6%).

Two-thirds believe that operating “sustainably” would lead to a high share price compared to its competitors within five years. One in 10 said it doesn’t hurt the share price, and 9% said their share price had already improved.

Although about one in five said their top managers bang the sustainability drum constantly, half said they don’t do it consistently. A third were sceptical about their bosses’ real motives.

Research

EU to spend 166m euros on food research

The European Commission is to fund 36 projects to the tune of 166m euros to research quality and safety of the complete food chain. This follows a call for research proposals in July.

The EU said many diseases and disorders prevalent in Europe can be linked to diet, genetic make-up and lifestyle. Two projects will look at how to prevent human degenerative diseases. The first will explore how diet can promote healthy ageing. The EU hopes this will improve quality of life for the elderly, cut public health costs by preventing nutrition-related diseases, and encourage development of nutritionally-balanced food products for the elderly.

The second project will study the nutritional impact of zinc, which is known to control the development and function of the immune cells, and helps to maintain genomic integrity and stability. However, ageing decreases the intake of zinc and causes frailty, general disability and more age-related degenerative diseases such as cancer.

Other projects will focus on the formation and effects of acrylamide in heat-treated carbohydrate-rich foods and aim to improve animal welfare. More details are at http://ftp.cordis.lu/pub/food/docs/p5_1c_overview_en.pdf.

Price of knowledge approaches zero

If the representatives of the European research institutes who met yesterday in Berlin follow through, access to knowledge could drop to the cost of an Internet call.

The Berlin Declaration on Open Access to Knowledge in the Sciences and Humanities says "Our organisations are interested in the further promotion of the new open access paradigm to gain the most benefit for science and society. Therefore, we intend to make progress by encouraging our researchers/grant recipients to publish their work according to the principles of the open access paradigm."

The move follows the open systems movement in the information technology industry. This has seen a rapid and massive development and improvement of software based on the “free” Linux operating system, and “free” content on the Internet.

"The Internet now offers the chance to constitute a global and interactive representation of human knowledge, including cultural heritage and the guarantee of worldwide access," says the declaration.

Under the declaration, readers may access, copy, and distribute research papers freely, subject to proper attribution of authorship. Rather than charge readers to access research, researchers pay open-access publishers to publish their results.

Signatories include all major research institutes in Germany and France, and others in Europe, including Norway and Hungary. US research firms are still studying a similar document and plan to discuss a response in April 2004. This delay probably reflects the fact that in the US much funding comes from private sources that have a commercial interest in the results.

Click here for the Berlin Declaration and here for the list of signatories.

 
Tuesday, 01 February 2005
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