AGP Executive Report

Grocery Inflation Watch: A new inflation wave is headed for U.S. grocery stores as higher fuel, tariffs, weather disruptions, and a shrinking cattle herd push food prices up faster than normal, with economists warning the hit could intensify into 2027. Retail Value Moves: Costco quietly cut prices on several Kirkland Signature items, including food and home goods, signaling a rare bit of relief for members. Consumer Spending Shift: Retailers say shoppers are rethinking spending—less discretionary, more online planning—while gas-price pressure continues to ripple into budgets. Food Safety—FDA Actions: FDA issued multiple citations after inspections, including allergen cross-contact and sanitation issues at FSW Properties (West Palm Beach), and foodborne biological hazard violations at FoodRGB (Anaheim) and Glasswing Produce (Scottsdale). Recall Alert: A Wisconsin seasoning maker expanded a recall tied to a milk powder source, with FDA classifying it as Class I over potential Salmonella risk. Menu Innovation: White Castle rolled out a $2.49 Southwest Veggie Slider, adding a nonmeat option to its lineup. Food Supply Risk at the Border: CBP seized 337 live hatching eggs entering via Ohio, citing missing paperwork and disease-risk concerns.

Retail Watch: U.S. shoppers are still spending, but retailers say the Iran-war fuel shock is nudging people to rethink purchases—filling up less, shifting to warehouse gas stops like Costco, and cutting back on clothing and big-ticket items, with economists warning a broader pullback may hit once tax refunds fade. Food Safety Recall: Target is recalling select Up&Up baby wipes after FDA-linked testing found harmful bacteria (Burkholderia cepacia complex and Burkholderia gladioli), with officials warning of infection risk for infants and immunosuppressed shoppers. Livestock Health: USDA confirmed a second New World screwworm case in Texas, prompting expanded state disaster response and increased surveillance to protect cattle. Policy & Food Aid: A federal judge paused the Trump administration’s plan to tie federal nutrition funding to policy compliance, blocking enforcement while states challenge the move. World Cup Economy: LA-area hotel and restaurant spending forecasts are wobbling as FIFA cancels rooms and travel demand cools amid geopolitical and fuel-cost pressures. Industry/Health: Eli Lilly reported menopause-stage weight-loss results for Foundayo (orforglipron) in women across trials, adding to the obesity-drug conversation.

Global Food Prices: The FAO says the Food Price Index averaged 130.8 points in May, down 0.2% from April but up 2.9% year over year, with cereals, sugar and beef rising while vegetable oils fell. Energy-to-Food Pressure: The FAO warns weather and energy/input disruptions—linked to trade-route uncertainty like the Strait of Hormuz—could keep squeezing food markets. Pet Food Niche Growth: The Catered Canine marks 20 years of vet-reviewed cooked meals and treats for dogs with sensitive stomachs, reflecting continued demand for fresher, minimally processed pet diets. Drive-Thru Automation: McDonald’s is testing a Google-backed ArchIQ AI robot at five locations, a move that’s already drawing pushback from customers who prefer human ordering. World Cup Hydration Rules: FIFA reversed its water-bottle ban, allowing fans in U.S./Canada to bring one sealed 20-ounce soft plastic bottle into matches. Livestock Biosecurity: Canada temporarily halted Texas livestock imports after New World screwworm was detected in South Texas; USDA confirmed a second nearby case. Retail Tea Expansion: Brook37 Tea Atelier launched across all 54 Costco warehouses in Texas with two iced-tea blends.

Labor & Foodservice Disruption: SoFi Stadium workers in Los Angeles—cashiers, dishwashers, cooks, bartenders and concessions staff—voted to authorize a strike ahead of the U.S. men’s World Cup opener vs. Paraguay, raising the risk of service disruptions during peak fan demand. Alcohol Retail & Trends: Aldi rolled out its first-ever soju, with Jinju Peach Soju positioned as a fast-moving, coffee-price alternative as U.S. soju sales are forecast to grow sharply. Coffee Culture: Starbucks is bringing back its Unicorn Frappuccino for a limited summer run, reviving the pastel, social-media-fueled drink. Public Health & Consumer Safety: Colorado investigators seized PolkaDot-branded mushroom chocolate and gummies after tests found illegal psychoactive ingredients, highlighting how supplement loopholes can bypass oversight. Sustainability in Food & Events: World Cup venues are earning LEED green building status, with reported solar, water-savings and waste-reduction upgrades tied to the fan experience. Livestock & Food Supply Risk Messaging: USDA confirmed a New World screwworm case in Texas and a second case nearby, while officials stress it’s not a food safety issue—just a serious animal health threat requiring quarantine and sterile fly releases. Community Food Access: Puerto Rico’s FY2027 agriculture/FDA funding package includes support for nutritional assistance and local community projects.

Food Safety & Recalls: Target is voluntarily recalling two types of Up & Up baby wipes after FDA says they may be contaminated with bacteria that could cause serious infections in infants. Labor & Stadium Food Service: Nearly 2,000 SoFi Stadium workers voted 96% to authorize a strike over contract demands tied to pay, job security, and concerns about sensitive worker data ahead of the June 12 World Cup opener. PFAS Cleanup: Wisconsin reached a $10M settlement with Tyco over PFAS contamination in Marinette, with money going to a cleanup trust and commitments for replacement wells and monitoring. USDA Funding Fight: A Massachusetts judge blocked USDA from conditioning major food-assistance and school-lunch funding on compliance with Trump administration policy priorities. Global Hunger Watch: The UN World Food Program warns Iran-war spillovers could push millions more into acute hunger, citing higher food and fuel prices. Celiac Labeling Push: A bipartisan Celiac Safety Act would expand gluten labeling so barley and rye are treated like major allergens, aiming to reduce accidental exposure. World Cup Food Buzz: McDonald’s and Coca-Cola are rolling out World Cup-themed menu items and collectible cups/bottles for watch parties.

Nutrition Label Scrutiny: A new IFIC survey finds 79% of Americans check nutrition or ingredient info on at least some grocery trips, with 47% doing it always/often—calories, sugars, protein and sodium top the list. Energy Drink Under Fire: Texas AG Ken Paxton is investigating Celsius/Alani Nu over whether high-caffeine marketing targets minors. Livestock Biosecurity: USDA and Texas confirmed a New World screwworm case in a South Texas calf, triggering quarantine and pet-movement rules; officials stress no food-safety risk. Food Safety Toll: WHO estimates unsafe food causes 866M illnesses and 1.5M deaths yearly, with kids under 5 hit hardest. Retail Pricing Watch: Reports say dynamic pricing can make online “deal hunting” harder as prices shift based on demand and shopper behavior. Summer Meal Access: Iowa announced 530+ sites serving free SUN Meals for kids. National Donut Day: Krispy Kreme is offering a free doughnut (no purchase) nationwide on June 5. Local Food & Community: Lockport’s Old Canal Days adds a first-ever drone show; Buc-ee’s got Mansfield, Ohio council approval for a new site.

Cuba Sanctions: The U.S. imposed new sanctions on Cuban President Miguel Díaz-Canel, his wife and other Castro-linked figures, escalating pressure amid fuel cutoffs that have fueled blackouts and food shortages. Livestock Health Alert: Texas confirmed the return of the New World screwworm in a calf near La Pryor, triggering quarantines, movement limits and sterile-fly releases; USDA says the food supply remains safe. Food Assistance Fight: The U.S. House passed a bill that would cut WIC fruit-and-vegetable benefits, drawing alarm from public-health advocates as grocery prices stay high. Beer Demand Softens: Memorial Day beer sales reportedly sag as consumers pull back with gas above $4 and colder-than-usual weather. Ultra-Processed Food Scrutiny: A UCSF study links tobacco know-how to the rise of ultra-processed foods like Lunchables, renewing calls for tighter oversight. Food Access Gap: A new study finds fast food and restaurants increasingly dominate neighborhoods while grocery access stays out of reach, especially in rural areas. World Cup Costs & Marketing: FIFA ticket prices and U.S. restaurant promotions are driving sticker shock and reshaping how fans spend.

Food Security & Summer Meals: Regional food banks are ramping up summer feeding. In Enid, Oklahoma, the Regional Food Bank of Oklahoma is running free meals for kids 18 and under through Aug. 7 at multiple sites. In West Virginia, the WVDE is again listing USDA Summer Food Service Program locations as inflation squeezes families. Public Health & Regulation: Consumer Reports is applauding New York’s new infant formula and baby food heavy-metal testing and website disclosure bill, pushing for monthly checks for lead, arsenic, cadmium and mercury. Livestock Health Threat: USDA confirmed the first New World screwworm case in the U.S. in a South Texas calf, triggering a quarantine zone, movement controls, and sterile fly releases; officials stress it’s not a food safety issue. Industry Moves: Nestlé bought the remaining 51% of ready-to-drink meals brand yfood Labs, valuing the company at about $523 million. Labor & Food Supply Chains: Farm workers at Windmill Farms are continuing a fight for union recognition and bargaining rights, with a boycott expanding through grocery pullbacks.

Food Policy & Access: Iowa signed onto federal SNAP restrictions that bar undocumented immigrants and some other groups from benefits, while also tightening state rules on eligibility timing and error-rate reporting. Livestock & Supply Chain Risk: USDA confirmed the first New World screwworm case in the U.S. since 1966 in a 3-week-old calf in South Texas, triggering quarantines and a rapid containment plan. Public Health Nutrition: The American Cancer Society says nearly 5 million Americans still live in food deserts while “food swamps” (mostly fast-food/limited grocery options) have grown, with little progress on improving access to fresh food. Retail & Competition: Dutch Bros CEO says the chain is built for competition as beverage rivals expand. Fast Food & Consumer Buzz: McDonald’s rolls out FIFA World Cup 26 meals with collectible cups and toys. Food Safety: FDA issued a warning letter to Boston’s Stavis Seafoods over “insanitary conditions.” Business Moves: Sysco disclosed an antitrust probe tied to its plan to acquire Jetro Restaurant Depot. Local Community: Cherokee Nation will use its Public Health and Wellness Fund Act to extend meat distribution and add pilot meat vouchers for low-income farmers markets.

Food & Culture Marketing: WSS is rolling out “All Your Magic,” a neighborhood-first campaign built around match-day rituals like family meals and lucky gear as the 48-team World Cup kicks off across Canada, Mexico and the U.S. Ag Trade Watch: USDA’s Stephen Vaden says China is buying new-crop U.S. soybeans, though one analyst notes confirmation may lag until export reports. Health & Food Safety: Florida Agriculture Commissioner Wilton Simpson issued emergency rules tightening dairy cattle import testing after H5N1 detections in other states. Retail & Pricing Buzz: Crumbl launched customizable “dirty sodas,” including a 32-ounce drink with 186 grams of sugar, sparking online backlash. Industry Deals: Reports say Yum Brands is in exclusive talks to sell Pizza Hut to LongRange Capital. Community Food Access: Regional Food Bank of Oklahoma’s Summer Feeding Program returns to Kay County with free meals and snacks for kids through Aug. 7. Dining Trends: Michelin expanded its U.S. guide coverage to more regions, underscoring that serious eaters are driving travel choices.

Food Policy & Climate: A new analysis of the 2025–30 Dietary Guidelines warns that pushing Americans toward higher protein could raise the climate cost of protein if it steers people toward more meat, while plant-based protein may be the lower-impact path. Food Safety: Champion Foods recalled frozen Motor City Pizza Co. 5 Cheese Bread sold at Walmart, Costco and Target after a supplier flagged possible salmonella in milk powder used in a seasoning blend. Local Food Economy: Santa Cruz apple farmers face a seismic shift after S. Martinelli & Co. stops renewing contracts, forcing growers to uproot orchards and pivot to other crops. Retail & Promotions: 7-Eleven’s FanLand rolls out World Cup-themed food deals and limited-edition items across participating stores. Community Nutrition: Nebraska is expanding free summer meals for kids through USDA’s Summer Food Service Program, with multiple meal sites across Grand Island. Industry Watch: Hawai‘i’s DBEDT will host its Hawai‘i Made Conference focused on food innovation and getting local products market-ready.

Food Safety Alerts: Champion Foods is recalling Motor City Pizza Co. 5 Cheese Bread sold nationwide at Costco, Walmart, Jewel, Kroger, Target and Meijer due to potential salmonella contamination tied to a dry milk powder supplier. Retail & Convenience: A new “Grab n’ Go” food station opened at Naval Air Station Sigonella in Sicily to serve hot and cold meals for junior sailors who miss regular galley hours. Big Food in Court: San Francisco sued Coca-Cola, Kraft Heinz and eight other major food and beverage makers, alleging they engineered a public health crisis through ultra-processed products. World Cup Food Buzz: King of Pops launched eight World Cup-inspired popsicle flavors for Atlanta-area distribution, while McDonald’s rolled out 2026 World Cup Meals and Happy Meals with collectible cups and Squishmallows. Nutrition Policy: FDA proposed guidance to let cell and gene therapy makers for rare diseases use existing scientific knowledge to speed development and review. Community Food Access: Floyd County Library in New Albany, Indiana suspended its food pantry phase-out after community backlash.

Fast-Food Strategy: McDonald’s rolled out “McDonald’s > NEXT,” a franchise-focused plan built around more automation, higher hospitality standards, and better-tasting menu items as it tries to win back price-sensitive customers. Food Safety: FDA and CDC reopened a Salmonella probe tied to imported moringa leaf powder; the outbreak now totals 119 confirmed cases in 36 states, with multiple brands recalled. Retail & Convenience: General Mills agreed to sell its Häagen-Dazs shops in Mainland China to an investor group, while keeping ownership of China retail/foodservice operations. Consumer Costs & Travel: States near World Cup venues are extending bar and restaurant hours to capture fan spending, while a separate report flags soaring travel and short-term rental demand in host cities. Public Health Tech: SKIA said it received FDA 510(k) clearance for its tablet-based AR surgical guidance system, targeting a U.S. commercial launch. Food & Beverage Deals: Domino’s is marking National Dairy Month with 50% off pizzas June 1–7.

SNAP Boost: USDA says SNAP benefits will rise 25% in October, adding about $36 a month on average (to $157), after a temporary pandemic-era bump ends—an effort aimed at helping families afford healthier food. Food Prices & Affordability Pressure: Multiple reports highlight how higher costs are squeezing households, with consumers cutting back on groceries and voters feeling the pinch as food and gas prices stay elevated. Summer Meals Return: USDA’s Summer Food Service Program is back, with free breakfast and lunch available in Yuma and La Paz for kids 18 and younger. Fast-Food Nostalgia: A look at KFC founder Colonel Sanders’ complaints reveals he disliked the chain’s gravy—yet it’s now a fan favorite. Drink Culture: The “drink of summer” conversation keeps circling back to familiar favorites like the Aperol spritz, as bars chase nostalgia, reinvention, and social buzz. Food Safety Watch: FDA actions and recalls continue to pop up, including a New Jersey recall tied to an undeclared peanut allergen. Hurricane Season Prep: With Atlantic hurricane season starting June 1, agencies urge residents to stock non-perishable food and water—food security becomes part of disaster planning.

Food Recall Alert: USDA is urging shoppers to check freezers after recalling two types of frozen, not-ready-to-eat Synear Foods pork and crab soup dumplings due to an undeclared peanut ingredient, with products sold in multiple states. FDA Enforcement: FDA cited Fusion Distribution, LLC in El Paso for three food safety violations tied to foreign supplier verification and import procedures, and separately posted inspection outcomes for other facilities including Jojos Chocolate’s Draper head office and Fusion’s May 6 review. Supplement Safety: FDA warned of possible salmonella contamination in TNVitamins and Doctor’s Pride “Complete Green Superfood” capsules sold via major retailers including Amazon, Walmart, Target and TikTok Shop. Summer Nutrition: Indiana is rolling out free summer meals and snacks at about 1,000 sites statewide for kids 18 and under, with locations searchable via USDA and state tools. Food Prices & Supply Pressure: Japan expects a June wave of price hikes across 1,000+ food and beverage items, citing Iran-war-driven supply strain. Food Safety Habits: A food safety expert advises buying certain produce (like leafy greens, cantaloupes, tomatoes and cucumbers) whole rather than pre-cut, then washing and refrigerating promptly.

Cancer Breakthrough: An experimental daraxonrasib pill nearly doubled overall survival for previously treated metastatic pancreatic cancer patients, cutting the risk of death by 60% versus standard chemotherapy in a Phase 3 study. Clinical Pipeline: Eli Lilly reported Phase 3 LIBRETTO-432 results for Retevmo (selpercatinib) as adjuvant therapy in early-stage RET fusion-positive lung cancer, while GRAIL shared PATHFINDER 2 data showing its Galleri multi-cancer test boosts detection when paired with standard screenings. Food Safety Watch: The FDA inspected Tea Life, LLC (Manhasset) and Amorino Trading, LLC (New York); Tea Life required no management changes, while Amorino was advised to voluntarily correct operations. Recall Alert: Costco shoppers were warned about a frozen cheese bread recall tied to potential salmonella contamination from recalled milk powder. Beverage Trend: All Día launched a low-calorie, 2.5% ABV real tequila canned cocktail aimed at the mindful drinking wave. Policy & Prices: U.S. lawmakers pushed back on a Trump administration rollback of PFAS drinking-water protections, warning communities could face contaminated water longer.