AGP Executive Report

Inflation & Energy: U.S. producer inflation jumped to 6.5% in May (PPI), with wholesale costs rising faster than expected—another sign that energy-driven price pressure is still working its way through the food system. Geopolitics & Groceries: As the U.S. and Iran trade strikes and the Strait of Hormuz stays a flashpoint, analysts warn the ripple effects are pushing up fuel and food costs worldwide. Food Safety & Livestock: The FDA granted emergency approval for an OTC screwworm treatment for pets as cases rise in Texas and New Mexico; experts say beef consumers are unlikely to be affected, but ranchers face added costs. Regulation Watch: The FDA’s first fruit-flavored e-cigarette authorization is under new scrutiny after a memo found fruit vapes weren’t significantly better than tobacco flavors for quitting. Consumer Trends: DoorDash rolled out an in-app AI chatbot to help with restaurant and grocery ordering. Public Health & Ingredients: A new report says synthetic dyes remain in about 1 in 5 packaged foods, with a voluntary phase-out facing hurdles. Retail Culture: Coca-Cola’s World Cup “soccer ball” bottles are selling out at Walmart and flipping on eBay for big markups.

Inflation & Energy: U.S. consumer prices jumped 4.2% in May, the fastest pace in three years, as Iran-related energy shocks keep pressure on household budgets and complicate the Fed’s path. Beef Supply Shock: Record beef prices are getting worse after New World screwworm was detected in Texas, raising fears of tighter livestock supplies and more strain for restaurants. Coffee Retail Watch: Starbucks says its turnaround is ahead of schedule, but transactions still lag 2018–19 levels, even as average-unit volumes and food add-ons help drive sales. Food Policy & Access: Louisiana expanded its Carrot Initiative to all Walmart stores statewide, boosting SNAP incentives for fresh fruits and vegetables. Health & Food Safety: New research links ultra-processed foods to higher dementia and cognitive decline risk, adding to the growing debate over UPFs in the American diet. Regulation Spotlight: A judge said FDA’s nicotine pouch rule may be flawed, while Georgia tightened animal entry requirements after screwworm detections. USDA Seafood Push: USDA announced an Office of Seafood to strengthen federal support for U.S. fisheries and seafood supply.

Food Safety & Recalls: Target is recalling select Up & Up baby wipes after FDA testing found potentially harmful bacteria (Burkholderia cepacia complex and Burkholderia gladioli), with reports of irritation and possible infections. Regulation Watch: The EPA is weighing rollbacks and delays to PFAS drinking-water rules, raising concerns for “forever chemical” cleanup timelines. Livestock Biosecurity: USDA confirmed new New World screwworm cases (including a calf in La Salle County, Texas), expanding surveillance and sterile-insect releases to protect animals and wildlife. Inflation & Groceries: May CPI rose 4.2% year over year, driven by higher energy costs and gasoline, squeezing budgets that already feel grocery pressure. Industry Support: USDA announced $60M to back small meat and poultry processors and launched a Small Processors Action Plan aimed at reducing red tape while keeping food safety protections. Retail Tech: Walmart is rolling out digital shelf labels to replace paper tags, aiming for faster price updates—while some shoppers worry about more frequent price changes. Beverage Business: Revel Spirits launched ready-to-pour Avila cocktails (Cuernavaca and Spicy Cuernavaca) for wider U.S. distribution. World Cup Food Culture: Uber Eats kicked off a global World Cup campaign featuring Gordon Ramsay, leaning into game-day delivery demand.

Food Supply Shock: USDA confirmed H5N1 avian influenza in commercial poultry flocks across 12 states, triggering depopulation and likely adding to summer egg and poultry price pressure for major Texas metro supply chains. FDA Watch: FDA approved bemotrizinol (Parsol Shield) as a new sunscreen ingredient, aiming to protect against UVA/UVB without the white streaks of mineral sunscreens. Pet Food Safety: Go Raw LLC expanded a freeze-dried chicken pet food recall due to potentially low thiamine (vitamin B1) in a specific lot. Health & Regulation: Texas AG Ken Paxton opened an investigation into glyphosate residue in food products, issuing demands to Bayer and PepsiCo. Nutrition Debate: A study linked several common food preservatives to higher hypertension risk, renewing calls for additive re-evaluations. Industry & Farming: University of Hawaiʻi joined a $13.5M aquaculture research consortium to strengthen U.S. seafood supply and expand sustainable marine farming. Labor at Venues: SoFi Stadium food workers in Los Angeles reached a tentative deal, averting a strike ahead of World Cup matches.

Food Safety Alerts: FDA issued a listeria warning for soft ricotta and requeson cheese sold in Philadelphia and the Northeast, urging consumers not to eat recalled products while traceback and inspections continue. Recalls & Retail: Massachusetts shoppers should check for Target-sold baby wipes recalled over potential Burkholderia contamination that can be dangerous for infants and immunocompromised people. Livestock & Trade: Canada restricted Texas livestock imports after New World screwworm detection, adding pressure to U.S. beef exports and prompting USDA and state response efforts. Nutrition & Health Claims: A new study links several common food preservatives to higher hypertension risk, while separate reporting highlights glyphosate residue scrutiny in food products via Texas AG demands to Bayer and PepsiCo. Industry Tech: Maison Solutions announced an AI collaboration to modernize the North American food supply chain, and GoTab acquired Fishbowl to boost hospitality guest loyalty and repeat visits. Protein Innovation: Ambrosia Collective launched Planta Powered by Solein, a U.S. protein powder built on Solar Foods’ air-based protein. Workplace Safety: OSHA proposed nearly $200,000 in penalties against a Georgia Piggly Wiggly after a meat grinder accident amputated four fingers.

World Cup Food Frenzy: Crumbl, McDonald’s and TGI Fridays are rolling out soccer-themed menus, while Lay’s debuts 40 limited chip flavors and Coca-Cola and Panini launch collectible stickers—restaurants are betting matchday traffic will help after a slow stretch. New World Screwworm Watch: USDA confirmed additional New World screwworm detections in Texas, triggering expanded quarantines and prompting Canada to temporarily restrict Texas livestock imports; officials say there’s no food-supply risk, but ranchers face new costs. Food Safety & Regulation: Texas AG Ken Paxton opened a glyphosate residue probe into Bayer and PepsiCo-linked products, while a new study links certain food preservatives to higher hypertension risk—both are likely to keep pressure on how additives are assessed. Retail Operations: Rhode Island passed a bill requiring staffed checkout ratios for grocery self-checkouts, aiming to protect jobs and shoppers. Fast-Food Moves: Wendy’s is launching a Minions & Monsters meal with a new Banana Frosty Swirl, and KFC is leaning into value and nostalgia as it tries to regain momentum.

Livestock Health Shock: USDA confirmed two more New World screwworm cases in Texas (a calf in La Salle County and a dog in Andrews County), bringing detections to four and raising fresh alarm for ranchers and beef supply. Food Safety & Supply Chain: The outbreak’s cross-border spread is prompting intensified sampling and quarantine efforts, with officials urging owners to report suspicious wounds—at a time when cattle numbers are already tight. Grocery Cost Pressure: A new study says USMCA tariff reductions helped lower U.S. food prices, estimating about $700 per year in household savings. Consumer Watchdog: Walmart shoppers have until June 30 to claim cash from an $87.5m beef price-fixing settlement tied to major meatpackers. Public Health Nutrition: A European Heart Journal study links several common food preservatives to higher hypertension risk, calling for regulators to re-check safety assessments. Restaurant & Travel Culture: “Snackpacking” keeps growing as travelers plan trips around local snacks, markets, and viral bites.

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.