The American beef industry is facing a double whammy of rising input costs as well as a decline in consumer demand as the economic downturn worsens.

Ruben Ramirez reports from Goodhue, Minnesota. SOUNDBITES:

Hormel, like the rest of the packaged foods industry, is seeing a boon as cash-strapped consumers try to save money by eating at home.

As the economic downturn hits consumer pocketbooks around the globe, the packaged foods industry is seeing a surge in demand as consumers try to save money by skipping restaurants and eating at home. Ruben Ramirez reports from Austin, Minnesota.

Ruben Ramirez, Reuters, Austin, Minnesota.

SOUNDBITE:

After closing one of the biggest deals in the Mexican retail market in a decade by acquiring more than 200 stores from rival Gigante, Soriana plans to focus on keeping a tidy mid-term debt profile.
The Gigante transaction, which helped strengthen Soriana’s position against leader Wal-Mart de Mexico, will slow down the retailer’s organic growth for the next two years but the company hopes store openings will gather speed again in 2010.
Listen to Chief Financial Officer Aurelio Adan speak at the Reuters Latin America Investment Summit about how the company will handle debt in the next five years and the reasons why he thinks Soriana stock is undervalued.

Walmex, the Mexican arm of U.S. retail giant Wal-Mart Stores Inc., is set for another tough year amid an economic slowdown that is making it more difficult for customers to buy anything from food to clothing.
In 2007, retailers were hurt by a downturn in the Mexican and U.S. economies. However, Walmex hopes that its first-quarter results will be decent. 
Listen to the company’s Chief Executive Eduardo Solorzano talk about the challenges ahead during Reuters Latin America Investment Summit. 

Sara Lee Corp is looking to new types of bread to expand and deepen its reach across parts of the United States.

Speaking at the Reuters Food Summit in Chicago, CJ Fraleigh, COO of the company’s North American business, said tortillas were one thing it is working on.

The summit continues through Thursday at the Reuters Chicago offices.

General Mills says it doesn’t always think of itself as a big company — but one look at its fancy company brochure and you remember just how many products they manufacture.

General Mills, of course, makes cereals like Cheerios, Wheaties and Trix (yes, yes — Silly Rabbit!). But the company also makes such yummy treats as Pillsbury baked products, Chex, Bisquik pancake mixes, Hamburger Helper (I loved this in college … OK, I still love it) and Haagen-Dazs ice creams (Ohhhhh yeah….).

Company Chief Executive Kendall Powell said at the Reuters Food Summit on Wednesday that he has his sights set abroad.

Powell, who very kindly came to the summit after his company reported their results earlier in the morning, said the struggles of the U.S. consumer make overseas expansion that much more critical.

He mentioned a number of new and growing markets where the company is heading and he gave us a look at where the growth wil be greater.

Powell was one of the featured guests at ths year’s summit, which runs through Thursday at our spanking new Chicago offices.

Different companies are using different methods to deal with the withering U.S. economy and still draw in customers.

Richard Federico, chief executive of P.F. Chang’s China Bistro, said his restaurant company is trying to implement a mix of all available lures to keep crowds coming to its Bistros and Pei Wei Asian Diner concepts.

Federico was one of the featured guests on the third day of the Reuters Food Summit, which runs through Thursday at our Chicago offices.

Federico said that customers are clearly being more selective with their food orders and are definitely trading down to less expensive options.

People are tending to try and generate a smaller tab by going with an appetizer or a bowl item instead of a more expensive entree. Some guests seem to be turning away from that second glass of wine.

Of course, Federico warned that passing on the vino might be an extremely good idea if you live in Arizona (or if you happen to be a fan of famous non-drinking advocate Carrie Nation, seen on the right). Arizona has put in place some pretty strict drunk-driving statutes - which Federico called “draconian”.

Carrie would have been happy enough with them … for our part, we might just call a cab next time we find ourselves in Scottsdale!

In the United States, we tend to think that the whole world shares our lifelong love of all things dealing with pizza.

It’s just not the case, though. There are actually parts of this globe where a “large, extra-cheese, half-pepperoni” order would be greeted by the emptiest of stares.

But for Papa John’s Chief Executive Nigel Travis, spreading the gospel of pizza is one of his clearest everyday expectations.

Travis, speaking at the second day of the Reuters Food Summit, said that Papa John’s has invested heavily in its international expansion and has its eye on many key markets as it fights for market share with other, larger players, Domino’s and Pizza Hut.

Still, Travis is an optimist, and has an aggressive and organized plan for the company to make its mark in many new markets. He recognizes, however, that one size doesn’t fit all and many of his plans for growth revolves around making a concept that works for that region.

Click below and listen to his thoughts on growth — the right kind, and the kind where you can get yourself in trouble.

Travis was one of the featured speakers at this year’s Food Summit, which continues through Thursday at our Chicago offices.

No, it’s not a new recipe (although fried chicken is always a welcome addition to almost any event we’ve ever attended).

As prices for commodities and other ingredients have been much on the minds of most of the guests this week at the Reuters Food Summit, chicken and prepared foods producer Sanderson Farms said pricing of chicken was something that was very clear for investors and suppliers alike.

Joe Sanderson, chairman and chief executive of the company founded by his family in 1947, said prices were high, but it wasn’t something that he could spend a lot of time worrying about.

He also said he believed that demand for chicken both inside and outside the United States remained firm. Mr. Sanderson seemed a pretty unflappable executive — and what’s more, he and his family have been in the chicken business for a long time and the rising costs of corn or other commodities or other blips in pricing didn’t appear to do too much to throw him off his stride.

Mr. Sanderson was one of the featured guests at this year’s Food Summit, held in Chicago at our offices overlooking a slightly less green river than we saw on Monday.

Well, he seemed pretty calm, actually!

Michael Mendes, chief executive of Diamond Foods, maker of Emerald Nuts, said at the Reuters Food Summit on Monday that demand for the company’s many different nut products remain strong and gave an optimistic outlook on the future.

But Mendes also warned that commodity costs remain high and companies are looking to keep costs in check across their offering.

Mendes also said that many of the cost pressures in the past few years came from so many people avoiding carbs in their diets and replacing them with different kinds of nuts — as a healthier part of their diets.

Mendes was one of the featured guests at the first day of the Reuters Food Summit, which runs through Thursday in our Chicago offices.