An American in Lima

An American in Lima » potatoes http://americaninlima.com slices of my life in Peru Sat, 12 Mar 2011 22:55:48 +0000 en hourly 1 http://wordpress.org/?v=3.1 Overstressed Americans Binge on Junk Food, Drive up Sales, Cheers Snack Food Industry! http://americaninlima.com/2008/11/27/overstressed-americans-binge-on-junk-food-drive-up-sales-cheers-snack-food-industry/ http://americaninlima.com/2008/11/27/overstressed-americans-binge-on-junk-food-drive-up-sales-cheers-snack-food-industry/#comments Thu, 27 Nov 2008 15:18:36 +0000 Barbara http://americaninlima.com/?p=952 Yet Another Related Posts Plugin.]]> The slow-motion collapse of the U.S. economy is harming consumers and businesses across the country -- well, almost every business that is. One industry is enjoying big sales gains thanks to the stress experienced by ordinary working people. North American sales of "savory snacks" (potato chips, Cheetos, etc.) by Frito-Lay are up 9% for the third qurater, reports Potato Pro, "your source for all things potato." Sales rose despite hikes in gas and ingredient prices and lowered earnings for Americans. (Some companies made up for the higher costs by switching to smaller bags.) Potato Pro jefe Paul van Eijck thinks the trend is only going to accelerate. As the U.S. economy worsens, stressed-out Americans will binge more on junk food. To quote van Eijck: Hooray! Americans are being booted out of their homes and losing their retirement savings, but as long as they continue to stuff themselves with Pringles, all is right with the U.S.A. -- right folks?

And if you believe that stress result in more excessive consumption of snacks, the market may start to look even better.

It's always illuminating to learn how the corporate world thinks. My connection with Potato Pro goes way back -- to October 2008. (Read my post here.) I never intended to feature their insiders' newsletter on my blog, but since they rushed me into their fraternity last month, I haven't had a choice but to receive bulletins on the state of the savory snack industry. I figured I would pass the news on to my readers. Here's the Nov. 24 newsletter item in full:

Dear Barbara, Since both Frito-Lay and Procter and Gamble just reported recent financial data I thought this was a good time to see how the savory snack market is holding up in the current economic downturn. If one company is a good indicator of what is happening in the global snack market it is Frito-Lay . Just have a look at the global market share of Frito-lay; It is more than 10 times the market share of Number two, Procter and Gamble, the manufacturer of Pringles. Frito-Lay reported for the 3rd quarter a 9% revenue growth in North America, resulting from double-digit growth at Tostitos, Ruffles and Cheetos and high-single-digit growth in trademark Lay's and Doritos. Profit was up 6% and volume 1.5%. Frito-lay managed to pass on (most of the) higher oil and fuel costs (by increasing prices and reducing packaging sizes) without suffering a loss of overall volume! In the Middle East/Africa/Asia (MEAA) segment Frito-Lay reported a snack volume growth of 9 percent, led by double-digit growth in the Middle East, China, and India. The snacks business in Turkey grew high- single-digits, while Australia experienced a low-single-digit decline, primarily due to increased pricing. For Europe Frito-Lay refers to unfavorable circumstances and volumes growth in the low single digits. In the UK, low-single-digit growth at Walkers reflected the success of the value-added "Walkers' Brit Trips" promotion and solid pricing execution and cost control to offset significant commodity input costs. Strong top-line growth in the rest of Europe was led by high- teens snack growth in Russia and by mid-single-digit snack growth in the Netherlands. Pepsico has initiated a "productivity program" and part of this program is a reduction of the workforce with 3300 (keep in mind Pepsico has 185.000 employees!), of which 300 in Frito-Lay. Most jobs will be lost at Frito-Lays headquarters in Plano, but Frito-Lay also announced two plant closures: Closure of the Frito-Lay plant in Mission (Texas) and Closure of the Frito-Lay plant in Pointe Claire, Canada (Qc). The second largest savoury snack manufacturer globally is Procter and Gamble. Procter and Gamble reports for its fiscal first quarter (July-September) that snacks volume increased mid-single digits due to double- digit growth in North America behind strong base business growth of Pringles and continued growth from Pringles Extreme Flavors and Stix initiatives. Although some of Frito-Lay's and Procter and Gambles gains could have been at the expense of smaller local snack manufacturers, I interpret these results as a rather positive sign about how the snack market could hold up in a challenging economic situation. Especially if you keep in mind that price increases of ingredients and fuel are easing if not reversing. And if you believe that stress result in more excessive consumption of snacks, the market may start to look even better. Enjoy reading, Paul van Eijck

Cover photo from The Potato, Treasure of the Andes

Extreme weather shifts caused by global warming are interrupting millenia-old agricultural cyles in the high Andes, reports Barclay for the Miami Herald. That turmoil is having a devastating effect on crops of native Peruvian potatoes, which grow at altitudes of 3,000+ meters above sea level. Barclay notes in "Peru's Potato Farmers Adapt to Climate Change" (Sept. 11, 2008):

For the first half of his life, Gregorio Huanuco farmed to a rhythm that dictated the survival of his grandparents and ancestors for thousands of years. He waited for the rains to fall on his small parcel of land in this village at 11,000 feet in the Cordillera Blanca, or White Range, of the Andes in central Peru, and planted native varieties of potatoes as well as cereal crops like quinoa. When the crops ripened, Huanuco, 45, harvested what he needed and sold what he didn't in the city of Huaraz several hundred feet below in the valley. Climatologists say global warming's impact was first documented in the Peruvian Andes in 1970, but 1990 is the year Huanuco says he began to notice disruptions, first in small, bizarre, anomalous forms: a battering hailstorm, two months without rain, a warm winter. Then the quirky weather became more consistent and other oddities began to appear: rats nibbling away at his cereal crops and a fungus, known as late blight, blanketing his potatoes. LAND ONCE FERTILE ''Before, we planted all year long, any month we wanted to,'' Huanuco said, dubiously eyeing his tiny plot, recently sown with potato seed. ``Now we only get water a few times a year and so we cannot plant as much, and the pests and diseases keep coming.''

: The Texas cowbow-turned-El Chalan, APEC Leaders' Summit, Nov. 23, 2008; photo c. Jorge Vera

It was 4 p.m. on the final day of the APEC Summit, and most of the leaders and the journalists had left the Minstry of Defense building where the summit had been held. El Fotógrafo and I were huddled in a cubicle in the International Media Center, trying to identify which Asian leader was which in a photo EF had taken earlier that afternoon. "Is that the president of Thailand? No, Vietnam?" We kept checking with a list of published photos of the leaders, most of which appeared to have been taken when the leaders were younger and had more hair. In the background a television broadcast a late-afternoon press meeting with the president of Singapore. "Mr. President," one journalist in the audience asked. "What do you think of the anti-pirating measure being proposed?" "Oh, yes, pirating is a big problem," said the president. "Groups of pirates are taking over ships and stealing the oil. This has got to stop." "No, excuse me, I mean -- the problem with intellectual property infringement," said the journalist. "Oh, yes," said the leader quickly, not losing a beat, "We have got to ensure that property rights are respected worldwide." And so it went that afternoon. That I was at the APEC Summit and filing a story from the Media Center was an unlikely event, from my perspective. I had been contacted by a U.S. paper two days prior to be on "standby" for the meetings in case they needed some "local color." I also was supposed to follow President Bush around and watch for something interesting to happen. Perhaps the idea the editors had in mind was Bush calling the APEC "OPEC," as he did last year in Sydney, or Bush calling Alan Garcia "gordo" or Bush getting feisty with the president of Russia. As it turned out, I never did manage to be anywhere near George W. Bush during the two days I was at the Little Pentagon. Like other summits with world leaders, the APEC was highly orchestrated and designed to frustrate both potential terrorists and journalists interested in asking serious questions of the outgoing U.S. president. I sensed this in advance, of course, but still I hoped that some strange confluence of events (these things happen in Peru) would put me & W together for an impromptu interview op -- say, in a stairwell by one of Fujimori's former torture chambers (the APEC summit was held in the very building where Fuji's men used to grill and torture suspected Shining Path members). Alas, my interview chance never materialized. EF had better luck than I did. He was admitted to a pool of photographers who shot the official APEC leaders portrait, which took place around noon on Sunday. By that time, I think W had had enough of Peru. The night before, the organizers of a gala dinner had plied him and other leaders with pisco sours and liquors made of lucuma, chirimoya and pisco. For a guy who's supposedly on the wagon, that's a triple challenge to the willpower center. So W was looking a little peaked by noon on Sunday, but kind of pleased to be twirling around in an alpaca poncho, and EF got some interesting shots of him, some of which deserve satiric captions. Where was I while this was happening? I and 40 other reporters were being held in a very hot and stuffy waiting area, prior to undergoing yet another security check (take off belt, shoes, laptop, etc.) before entering the summit auditorium. We stood there with our heavy gear in a plastic-enclosed corridor for more than an hour and then we were finally admitted. As I took my seat on the balcony of the auditorium, a guard told me, "No journalists are permitted here." I can't think of a stranger thing to say to a journalist you're escorting to a media event. I caught the last two minutes of a speech by the "Say No to Pirates" president of Singapore. Then it was all over. Bush had ditched the event after the official photo session and gone straight to the airport. It was a strenous two days of Not Trailing Bush. On Saturday afternoon I stood for an hour and a half on a plaza waiting for the US president, only to catch from the corner of my eye the sight of his motorcade leaving from a far gate. He had eluded the press again. I would have liked to have asked Mr. Bush many questions. I would have liked to have asked what he thought of unfettered free trade now that the US economy is tanking and the global economy along with it. I would have liked to have asked him about Iraq and Guatanamo and the erosion of rights in the United States. I would have liked to have asked how he thought History would judge his presidency. But none of that was possible. I did manage to speak to one very important person. though. Hector is a farmer from Tarma who grows potatoes. He stood around in the journalists' cafeteria next to an elaborate display of native Peruvian potato varieties and handed out samples of LAYS ANDINO potato chips during the weekend. Hector was dressed in a felt cap, with an Andean-fabric satchel wrapped around his shoulders for toting his potatoes to market. He was small and low key and about as close to an authentic Peruvian as most of the foreign journalists would get. It was hard for a journalist to get face time with the politicos at APEC but Hector and 100 varieties of papas were there to photograph and interview to our hearts' content.]]> http://americaninlima.com/2008/11/24/not-trailing-bush-at-the-apec/feed/ 2 We Want to Be Your Solution for All Things Potato http://americaninlima.com slices of my life in Peru Sat, 12 Mar 2011 22:55:48 +0000 en hourly 1 http://wordpress.org/?v=3.1 An American in Lima » potatoes http://americaninlima.com slices of my life in Peru Sat, 12 Mar 2011 22:55:48 +0000 en hourly 1 http://wordpress.org/?v=3.1 Overstressed Americans Binge on Junk Food, Drive up Sales, Cheers Snack Food Industry! http://americaninlima.com/2008/11/27/overstressed-americans-binge-on-junk-food-drive-up-sales-cheers-snack-food-industry/ http://americaninlima.com/2008/11/27/overstressed-americans-binge-on-junk-food-drive-up-sales-cheers-snack-food-industry/#comments Thu, 27 Nov 2008 15:18:36 +0000 Barbara http://americaninlima.com/?p=952 Yet Another Related Posts Plugin.]]> The slow-motion collapse of the U.S. economy is harming consumers and businesses across the country -- well, almost every business that is. One industry is enjoying big sales gains thanks to the stress experienced by ordinary working people. North American sales of "savory snacks" (potato chips, Cheetos, etc.) by Frito-Lay are up 9% for the third qurater, reports Potato Pro, "your source for all things potato." Sales rose despite hikes in gas and ingredient prices and lowered earnings for Americans. (Some companies made up for the higher costs by switching to smaller bags.) Potato Pro jefe Paul van Eijck thinks the trend is only going to accelerate. As the U.S. economy worsens, stressed-out Americans will binge more on junk food. To quote van Eijck: Hooray! Americans are being booted out of their homes and losing their retirement savings, but as long as they continue to stuff themselves with Pringles, all is right with the U.S.A. -- right folks?

And if you believe that stress result in more excessive consumption of snacks, the market may start to look even better.

Dear Barbara, Since both Frito-Lay and Procter and Gamble just reported recent financial data I thought this was a good time to see how the savory snack market is holding up in the current economic downturn. If one company is a good indicator of what is happening in the global snack market it is Frito-Lay . Just have a look at the global market share of Frito-lay; It is more than 10 times the market share of Number two, Procter and Gamble, the manufacturer of Pringles. Frito-Lay reported for the 3rd quarter a 9% revenue growth in North America, resulting from double-digit growth at Tostitos, Ruffles and Cheetos and high-single-digit growth in trademark Lay's and Doritos. Profit was up 6% and volume 1.5%. Frito-lay managed to pass on (most of the) higher oil and fuel costs (by increasing prices and reducing packaging sizes) without suffering a loss of overall volume! In the Middle East/Africa/Asia (MEAA) segment Frito-Lay reported a snack volume growth of 9 percent, led by double-digit growth in the Middle East, China, and India. The snacks business in Turkey grew high- single-digits, while Australia experienced a low-single-digit decline, primarily due to increased pricing. For Europe Frito-Lay refers to unfavorable circumstances and volumes growth in the low single digits. In the UK, low-single-digit growth at Walkers reflected the success of the value-added "Walkers' Brit Trips" promotion and solid pricing execution and cost control to offset significant commodity input costs. Strong top-line growth in the rest of Europe was led by high- teens snack growth in Russia and by mid-single-digit snack growth in the Netherlands. Pepsico has initiated a "productivity program" and part of this program is a reduction of the workforce with 3300 (keep in mind Pepsico has 185.000 employees!), of which 300 in Frito-Lay. Most jobs will be lost at Frito-Lays headquarters in Plano, but Frito-Lay also announced two plant closures: Closure of the Frito-Lay plant in Mission (Texas) and Closure of the Frito-Lay plant in Pointe Claire, Canada (Qc). The second largest savoury snack manufacturer globally is Procter and Gamble. Procter and Gamble reports for its fiscal first quarter (July-September) that snacks volume increased mid-single digits due to double- digit growth in North America behind strong base business growth of Pringles and continued growth from Pringles Extreme Flavors and Stix initiatives. Although some of Frito-Lay's and Procter and Gambles gains could have been at the expense of smaller local snack manufacturers, I interpret these results as a rather positive sign about how the snack market could hold up in a challenging economic situation. Especially if you keep in mind that price increases of ingredients and fuel are easing if not reversing. And if you believe that stress result in more excessive consumption of snacks, the market may start to look even better. Enjoy reading, Paul van Eijck

Cover photo from The Potato, Treasure of the Andes

For the first half of his life, Gregorio Huanuco farmed to a rhythm that dictated the survival of his grandparents and ancestors for thousands of years. He waited for the rains to fall on his small parcel of land in this village at 11,000 feet in the Cordillera Blanca, or White Range, of the Andes in central Peru, and planted native varieties of potatoes as well as cereal crops like quinoa. When the crops ripened, Huanuco, 45, harvested what he needed and sold what he didn't in the city of Huaraz several hundred feet below in the valley. Climatologists say global warming's impact was first documented in the Peruvian Andes in 1970, but 1990 is the year Huanuco says he began to notice disruptions, first in small, bizarre, anomalous forms: a battering hailstorm, two months without rain, a warm winter. Then the quirky weather became more consistent and other oddities began to appear: rats nibbling away at his cereal crops and a fungus, known as late blight, blanketing his potatoes. LAND ONCE FERTILE ''Before, we planted all year long, any month we wanted to,'' Huanuco said, dubiously eyeing his tiny plot, recently sown with potato seed. ``Now we only get water a few times a year and so we cannot plant as much, and the pests and diseases keep coming.''

: The Texas cowbow-turned-El Chalan, APEC Leaders' Summit, Nov. 23, 2008; photo c. Jorge Vera

It was 4 p.m. on the final day of the APEC Summit, and most of the leaders and the journalists had left the Minstry of Defense building where the summit had been held. El Fotógrafo and I were huddled in a cubicle in the International Media Center, trying to identify which Asian leader was which in a photo EF had taken earlier that afternoon. "Is that the president of Thailand? No, Vietnam?" We kept checking with a list of published photos of the leaders, most of which appeared to have been taken when the leaders were younger and had more hair. In the background a television broadcast a late-afternoon press meeting with the president of Singapore. "Mr. President," one journalist in the audience asked. "What do you think of the anti-pirating measure being proposed?" "Oh, yes, pirating is a big problem," said the president. "Groups of pirates are taking over ships and stealing the oil. This has got to stop." "No, excuse me, I mean -- the problem with intellectual property infringement," said the journalist. "Oh, yes," said the leader quickly, not losing a beat, "We have got to ensure that property rights are respected worldwide." And so it went that afternoon. That I was at the APEC Summit and filing a story from the Media Center was an unlikely event, from my perspective. I had been contacted by a U.S. paper two days prior to be on "standby" for the meetings in case they needed some "local color." I also was supposed to follow President Bush around and watch for something interesting to happen. Perhaps the idea the editors had in mind was Bush calling the APEC "OPEC," as he did last year in Sydney, or Bush calling Alan Garcia "gordo" or Bush getting feisty with the president of Russia. As it turned out, I never did manage to be anywhere near George W. Bush during the two days I was at the Little Pentagon. Like other summits with world leaders, the APEC was highly orchestrated and designed to frustrate both potential terrorists and journalists interested in asking serious questions of the outgoing U.S. president. I sensed this in advance, of course, but still I hoped that some strange confluence of events (these things happen in Peru) would put me & W together for an impromptu interview op -- say, in a stairwell by one of Fujimori's former torture chambers (the APEC summit was held in the very building where Fuji's men used to grill and torture suspected Shining Path members). Alas, my interview chance never materialized. EF had better luck than I did. He was admitted to a pool of photographers who shot the official APEC leaders portrait, which took place around noon on Sunday. By that time, I think W had had enough of Peru. The night before, the organizers of a gala dinner had plied him and other leaders with pisco sours and liquors made of lucuma, chirimoya and pisco. For a guy who's supposedly on the wagon, that's a triple challenge to the willpower center. So W was looking a little peaked by noon on Sunday, but kind of pleased to be twirling around in an alpaca poncho, and EF got some interesting shots of him, some of which deserve satiric captions. Where was I while this was happening? I and 40 other reporters were being held in a very hot and stuffy waiting area, prior to undergoing yet another security check (take off belt, shoes, laptop, etc.) before entering the summit auditorium. We stood there with our heavy gear in a plastic-enclosed corridor for more than an hour and then we were finally admitted. As I took my seat on the balcony of the auditorium, a guard told me, "No journalists are permitted here." I can't think of a stranger thing to say to a journalist you're escorting to a media event. I caught the last two minutes of a speech by the "Say No to Pirates" president of Singapore. Then it was all over. Bush had ditched the event after the official photo session and gone straight to the airport. It was a strenous two days of Not Trailing Bush. On Saturday afternoon I stood for an hour and a half on a plaza waiting for the US president, only to catch from the corner of my eye the sight of his motorcade leaving from a far gate. He had eluded the press again. I would have liked to have asked Mr. Bush many questions. I would have liked to have asked what he thought of unfettered free trade now that the US economy is tanking and the global economy along with it. I would have liked to have asked him about Iraq and Guatanamo and the erosion of rights in the United States. I would have liked to have asked how he thought History would judge his presidency. But none of that was possible. I did manage to speak to one very important person. though. Hector is a farmer from Tarma who grows potatoes. He stood around in the journalists' cafeteria next to an elaborate display of native Peruvian potato varieties and handed out samples of LAYS ANDINO potato chips during the weekend. Hector was dressed in a felt cap, with an Andean-fabric satchel wrapped around his shoulders for toting his potatoes to market. He was small and low key and about as close to an authentic Peruvian as most of the foreign journalists would get. It was hard for a journalist to get face time with the politicos at APEC but Hector and 100 varieties of papas were there to photograph and interview to our hearts' content.]]> http://americaninlima.com/2008/11/24/not-trailing-bush-at-the-apec/feed/ 2 We Want to Be Your Solution for All Things Potato http://americaninlima.com/2008/11/27/overstressed-americans-binge-on-junk-food-drive-up-sales-cheers-snack-food-industry/ http://americaninlima.com/2008/11/27/overstressed-americans-binge-on-junk-food-drive-up-sales-cheers-snack-food-industry/#comments Thu, 27 Nov 2008 15:18:36 +0000 Barbara http://americaninlima.com/?p=952 Yet Another Related Posts Plugin.]]> The slow-motion collapse of the U.S. economy is harming consumers and businesses across the country -- well, almost every business that is. One industry is enjoying big sales gains thanks to the stress experienced by ordinary working people. North American sales of "savory snacks" (potato chips, Cheetos, etc.) by Frito-Lay are up 9% for the third qurater, reports Potato Pro, "your source for all things potato." Sales rose despite hikes in gas and ingredient prices and lowered earnings for Americans. (Some companies made up for the higher costs by switching to smaller bags.) Potato Pro jefe Paul van Eijck thinks the trend is only going to accelerate. As the U.S. economy worsens, stressed-out Americans will binge more on junk food. To quote van Eijck: Hooray! Americans are being booted out of their homes and losing their retirement savings, but as long as they continue to stuff themselves with Pringles, all is right with the U.S.A. -- right folks?

And if you believe that stress result in more excessive consumption of snacks, the market may start to look even better.

Dear Barbara, Since both Frito-Lay and Procter and Gamble just reported recent financial data I thought this was a good time to see how the savory snack market is holding up in the current economic downturn. If one company is a good indicator of what is happening in the global snack market it is Frito-Lay . Just have a look at the global market share of Frito-lay; It is more than 10 times the market share of Number two, Procter and Gamble, the manufacturer of Pringles. Frito-Lay reported for the 3rd quarter a 9% revenue growth in North America, resulting from double-digit growth at Tostitos, Ruffles and Cheetos and high-single-digit growth in trademark Lay's and Doritos. Profit was up 6% and volume 1.5%. Frito-lay managed to pass on (most of the) higher oil and fuel costs (by increasing prices and reducing packaging sizes) without suffering a loss of overall volume! In the Middle East/Africa/Asia (MEAA) segment Frito-Lay reported a snack volume growth of 9 percent, led by double-digit growth in the Middle East, China, and India. The snacks business in Turkey grew high- single-digits, while Australia experienced a low-single-digit decline, primarily due to increased pricing. For Europe Frito-Lay refers to unfavorable circumstances and volumes growth in the low single digits. In the UK, low-single-digit growth at Walkers reflected the success of the value-added "Walkers' Brit Trips" promotion and solid pricing execution and cost control to offset significant commodity input costs. Strong top-line growth in the rest of Europe was led by high- teens snack growth in Russia and by mid-single-digit snack growth in the Netherlands. Pepsico has initiated a "productivity program" and part of this program is a reduction of the workforce with 3300 (keep in mind Pepsico has 185.000 employees!), of which 300 in Frito-Lay. Most jobs will be lost at Frito-Lays headquarters in Plano, but Frito-Lay also announced two plant closures: Closure of the Frito-Lay plant in Mission (Texas) and Closure of the Frito-Lay plant in Pointe Claire, Canada (Qc). The second largest savoury snack manufacturer globally is Procter and Gamble. Procter and Gamble reports for its fiscal first quarter (July-September) that snacks volume increased mid-single digits due to double- digit growth in North America behind strong base business growth of Pringles and continued growth from Pringles Extreme Flavors and Stix initiatives. Although some of Frito-Lay's and Procter and Gambles gains could have been at the expense of smaller local snack manufacturers, I interpret these results as a rather positive sign about how the snack market could hold up in a challenging economic situation. Especially if you keep in mind that price increases of ingredients and fuel are easing if not reversing. And if you believe that stress result in more excessive consumption of snacks, the market may start to look even better. Enjoy reading, Paul van Eijck

This information makes me want to cut down on my consumption of Lay's and Pringles immediately. Line the pockets of savory-snack CEOs? Not! Resist the binge! Spread the message! --Barbara R. Drake]]> http://americaninlima.com/2008/11/27/overstressed-americans-binge-on-junk-food-drive-up-sales-cheers-snack-food-industry/feed/ 3 An American in Lima » potatoes http://americaninlima.com slices of my life in Peru Sat, 12 Mar 2011 22:55:48 +0000 en hourly 1 http://wordpress.org/?v=3.1 Overstressed Americans Binge on Junk Food, Drive up Sales, Cheers Snack Food Industry! http://americaninlima.com/2008/11/27/overstressed-americans-binge-on-junk-food-drive-up-sales-cheers-snack-food-industry/ http://americaninlima.com/2008/11/27/overstressed-americans-binge-on-junk-food-drive-up-sales-cheers-snack-food-industry/#comments Thu, 27 Nov 2008 15:18:36 +0000 Barbara http://americaninlima.com/?p=952 Yet Another Related Posts Plugin.]]> The slow-motion collapse of the U.S. economy is harming consumers and businesses across the country -- well, almost every business that is. One industry is enjoying big sales gains thanks to the stress experienced by ordinary working people. North American sales of "savory snacks" (potato chips, Cheetos, etc.) by Frito-Lay are up 9% for the third qurater, reports Potato Pro, "your source for all things potato." Sales rose despite hikes in gas and ingredient prices and lowered earnings for Americans. (Some companies made up for the higher costs by switching to smaller bags.) Potato Pro jefe Paul van Eijck thinks the trend is only going to accelerate. As the U.S. economy worsens, stressed-out Americans will binge more on junk food. To quote van Eijck: Hooray! Americans are being booted out of their homes and losing their retirement savings, but as long as they continue to stuff themselves with Pringles, all is right with the U.S.A. -- right folks?

And if you believe that stress result in more excessive consumption of snacks, the market may start to look even better.

Dear Barbara, Since both Frito-Lay and Procter and Gamble just reported recent financial data I thought this was a good time to see how the savory snack market is holding up in the current economic downturn. If one company is a good indicator of what is happening in the global snack market it is Frito-Lay . Just have a look at the global market share of Frito-lay; It is more than 10 times the market share of Number two, Procter and Gamble, the manufacturer of Pringles. Frito-Lay reported for the 3rd quarter a 9% revenue growth in North America, resulting from double-digit growth at Tostitos, Ruffles and Cheetos and high-single-digit growth in trademark Lay's and Doritos. Profit was up 6% and volume 1.5%. Frito-lay managed to pass on (most of the) higher oil and fuel costs (by increasing prices and reducing packaging sizes) without suffering a loss of overall volume! In the Middle East/Africa/Asia (MEAA) segment Frito-Lay reported a snack volume growth of 9 percent, led by double-digit growth in the Middle East, China, and India. The snacks business in Turkey grew high- single-digits, while Australia experienced a low-single-digit decline, primarily due to increased pricing. For Europe Frito-Lay refers to unfavorable circumstances and volumes growth in the low single digits. In the UK, low-single-digit growth at Walkers reflected the success of the value-added "Walkers' Brit Trips" promotion and solid pricing execution and cost control to offset significant commodity input costs. Strong top-line growth in the rest of Europe was led by high- teens snack growth in Russia and by mid-single-digit snack growth in the Netherlands. Pepsico has initiated a "productivity program" and part of this program is a reduction of the workforce with 3300 (keep in mind Pepsico has 185.000 employees!), of which 300 in Frito-Lay. Most jobs will be lost at Frito-Lays headquarters in Plano, but Frito-Lay also announced two plant closures: Closure of the Frito-Lay plant in Mission (Texas) and Closure of the Frito-Lay plant in Pointe Claire, Canada (Qc). The second largest savoury snack manufacturer globally is Procter and Gamble. Procter and Gamble reports for its fiscal first quarter (July-September) that snacks volume increased mid-single digits due to double- digit growth in North America behind strong base business growth of Pringles and continued growth from Pringles Extreme Flavors and Stix initiatives. Although some of Frito-Lay's and Procter and Gambles gains could have been at the expense of smaller local snack manufacturers, I interpret these results as a rather positive sign about how the snack market could hold up in a challenging economic situation. Especially if you keep in mind that price increases of ingredients and fuel are easing if not reversing. And if you believe that stress result in more excessive consumption of snacks, the market may start to look even better. Enjoy reading, Paul van Eijck

Cover photo from The Potato, Treasure of the Andes

For the first half of his life, Gregorio Huanuco farmed to a rhythm that dictated the survival of his grandparents and ancestors for thousands of years. He waited for the rains to fall on his small parcel of land in this village at 11,000 feet in the Cordillera Blanca, or White Range, of the Andes in central Peru, and planted native varieties of potatoes as well as cereal crops like quinoa. When the crops ripened, Huanuco, 45, harvested what he needed and sold what he didn't in the city of Huaraz several hundred feet below in the valley. Climatologists say global warming's impact was first documented in the Peruvian Andes in 1970, but 1990 is the year Huanuco says he began to notice disruptions, first in small, bizarre, anomalous forms: a battering hailstorm, two months without rain, a warm winter. Then the quirky weather became more consistent and other oddities began to appear: rats nibbling away at his cereal crops and a fungus, known as late blight, blanketing his potatoes. LAND ONCE FERTILE ''Before, we planted all year long, any month we wanted to,'' Huanuco said, dubiously eyeing his tiny plot, recently sown with potato seed. ``Now we only get water a few times a year and so we cannot plant as much, and the pests and diseases keep coming.''

: The Texas cowbow-turned-El Chalan, APEC Leaders' Summit, Nov. 23, 2008; photo c. Jorge Vera

It was 4 p.m. on the final day of the APEC Summit, and most of the leaders and the journalists had left the Minstry of Defense building where the summit had been held. El Fotógrafo and I were huddled in a cubicle in the International Media Center, trying to identify which Asian leader was which in a photo EF had taken earlier that afternoon. "Is that the president of Thailand? No, Vietnam?" We kept checking with a list of published photos of the leaders, most of which appeared to have been taken when the leaders were younger and had more hair. In the background a television broadcast a late-afternoon press meeting with the president of Singapore. "Mr. President," one journalist in the audience asked. "What do you think of the anti-pirating measure being proposed?" "Oh, yes, pirating is a big problem," said the president. "Groups of pirates are taking over ships and stealing the oil. This has got to stop." "No, excuse me, I mean -- the problem with intellectual property infringement," said the journalist. "Oh, yes," said the leader quickly, not losing a beat, "We have got to ensure that property rights are respected worldwide." And so it went that afternoon. That I was at the APEC Summit and filing a story from the Media Center was an unlikely event, from my perspective. I had been contacted by a U.S. paper two days prior to be on "standby" for the meetings in case they needed some "local color." I also was supposed to follow President Bush around and watch for something interesting to happen. Perhaps the idea the editors had in mind was Bush calling the APEC "OPEC," as he did last year in Sydney, or Bush calling Alan Garcia "gordo" or Bush getting feisty with the president of Russia. As it turned out, I never did manage to be anywhere near George W. Bush during the two days I was at the Little Pentagon. Like other summits with world leaders, the APEC was highly orchestrated and designed to frustrate both potential terrorists and journalists interested in asking serious questions of the outgoing U.S. president. I sensed this in advance, of course, but still I hoped that some strange confluence of events (these things happen in Peru) would put me & W together for an impromptu interview op -- say, in a stairwell by one of Fujimori's former torture chambers (the APEC summit was held in the very building where Fuji's men used to grill and torture suspected Shining Path members). Alas, my interview chance never materialized. EF had better luck than I did. He was admitted to a pool of photographers who shot the official APEC leaders portrait, which took place around noon on Sunday. By that time, I think W had had enough of Peru. The night before, the organizers of a gala dinner had plied him and other leaders with pisco sours and liquors made of lucuma, chirimoya and pisco. For a guy who's supposedly on the wagon, that's a triple challenge to the willpower center. So W was looking a little peaked by noon on Sunday, but kind of pleased to be twirling around in an alpaca poncho, and EF got some interesting shots of him, some of which deserve satiric captions. Where was I while this was happening? I and 40 other reporters were being held in a very hot and stuffy waiting area, prior to undergoing yet another security check (take off belt, shoes, laptop, etc.) before entering the summit auditorium. We stood there with our heavy gear in a plastic-enclosed corridor for more than an hour and then we were finally admitted. As I took my seat on the balcony of the auditorium, a guard told me, "No journalists are permitted here." I can't think of a stranger thing to say to a journalist you're escorting to a media event. I caught the last two minutes of a speech by the "Say No to Pirates" president of Singapore. Then it was all over. Bush had ditched the event after the official photo session and gone straight to the airport. It was a strenous two days of Not Trailing Bush. On Saturday afternoon I stood for an hour and a half on a plaza waiting for the US president, only to catch from the corner of my eye the sight of his motorcade leaving from a far gate. He had eluded the press again. I would have liked to have asked Mr. Bush many questions. I would have liked to have asked what he thought of unfettered free trade now that the US economy is tanking and the global economy along with it. I would have liked to have asked him about Iraq and Guatanamo and the erosion of rights in the United States. I would have liked to have asked how he thought History would judge his presidency. But none of that was possible. I did manage to speak to one very important person. though. Hector is a farmer from Tarma who grows potatoes. He stood around in the journalists' cafeteria next to an elaborate display of native Peruvian potato varieties and handed out samples of LAYS ANDINO potato chips during the weekend. Hector was dressed in a felt cap, with an Andean-fabric satchel wrapped around his shoulders for toting his potatoes to market. He was small and low key and about as close to an authentic Peruvian as most of the foreign journalists would get. It was hard for a journalist to get face time with the politicos at APEC but Hector and 100 varieties of papas were there to photograph and interview to our hearts' content.]]> http://americaninlima.com/2008/11/24/not-trailing-bush-at-the-apec/feed/ 2 We Want to Be Your Solution for All Things Potato http://americaninlima.com/2008/11/25/climate-change-threatens-perus-native-potatoes/ http://americaninlima.com/2008/11/25/climate-change-threatens-perus-native-potatoes/#comments Wed, 26 Nov 2008 03:00:34 +0000 Barbara http://americaninlima.com/?p=936 Yet Another Related Posts Plugin.]]> timely article from Eliza Barclay on a topic close to many Peruvians' hearts: potatoes.

Cover photo from The Potato, Treasure of the Andes

For the first half of his life, Gregorio Huanuco farmed to a rhythm that dictated the survival of his grandparents and ancestors for thousands of years. He waited for the rains to fall on his small parcel of land in this village at 11,000 feet in the Cordillera Blanca, or White Range, of the Andes in central Peru, and planted native varieties of potatoes as well as cereal crops like quinoa. When the crops ripened, Huanuco, 45, harvested what he needed and sold what he didn't in the city of Huaraz several hundred feet below in the valley. Climatologists say global warming's impact was first documented in the Peruvian Andes in 1970, but 1990 is the year Huanuco says he began to notice disruptions, first in small, bizarre, anomalous forms: a battering hailstorm, two months without rain, a warm winter. Then the quirky weather became more consistent and other oddities began to appear: rats nibbling away at his cereal crops and a fungus, known as late blight, blanketing his potatoes. LAND ONCE FERTILE ''Before, we planted all year long, any month we wanted to,'' Huanuco said, dubiously eyeing his tiny plot, recently sown with potato seed. ``Now we only get water a few times a year and so we cannot plant as much, and the pests and diseases keep coming.''

Click here to read the entire article. This news is devastating for Peru because 95 percent of its potato crop is consumed nationally -- only 5 percent is exported. People who live in the high sierra especially depend on these native potatoes (which differ from the white potatoes sold in US stores) because they are among the few crops that can grow at very high altitudes. Without a good supply of potatoes, the people in the puno will starve -- and they are growing more and more hungry each year. The title of Barclay's article suggests that Peruvian farmers have figured out how to adapt to climate change, but her story reveals that they don't yet understand how to solve the problem. NGOs and government organizations are beginning to search for solutions, and some excellent pilot programs are underway. Time is critical, though -- farmers have been battling drought and pests since 1990. It will be too late for some. I think of the farmer/herders I met in Ausangate this September and how vulnerable their crops are to shifts in the weather. "Our lands are producing less and less," they told me. "We are very sad." "We are hungry," they added. They said it in the simple, matter-of-fact way that people do when they have grown accustomed to no one caring about them. This year, 2008, has been dubbed the International Year of the Potato. Well-orchestrated publicity campaigns educated people worldwide on the benefits of potatoes, in general, and on the remarkable attributes of Peru's 3,000 varieties of native potatoes. I don't think the world has ever had such potato consciousness. I hope that this awareness translates into useful, well-funded programs to save the native potato before it and the people of the high Andes become casualties of climate change. --Barbara R. Drake For more information on native Peruvian potatoes and efforts to rescue this ancient crop, visit the International Potato Center, In Lima. Peru.]]> http://americaninlima.com/2008/11/25/climate-change-threatens-perus-native-potatoes/feed/ 0 An American in Lima » potatoes http://americaninlima.com slices of my life in Peru Sat, 12 Mar 2011 22:55:48 +0000 en hourly 1 http://wordpress.org/?v=3.1 Overstressed Americans Binge on Junk Food, Drive up Sales, Cheers Snack Food Industry! http://americaninlima.com/2008/11/27/overstressed-americans-binge-on-junk-food-drive-up-sales-cheers-snack-food-industry/ http://americaninlima.com/2008/11/27/overstressed-americans-binge-on-junk-food-drive-up-sales-cheers-snack-food-industry/#comments Thu, 27 Nov 2008 15:18:36 +0000 Barbara http://americaninlima.com/?p=952 Yet Another Related Posts Plugin.]]> The slow-motion collapse of the U.S. economy is harming consumers and businesses across the country -- well, almost every business that is. One industry is enjoying big sales gains thanks to the stress experienced by ordinary working people. North American sales of "savory snacks" (potato chips, Cheetos, etc.) by Frito-Lay are up 9% for the third qurater, reports Potato Pro, "your source for all things potato." Sales rose despite hikes in gas and ingredient prices and lowered earnings for Americans. (Some companies made up for the higher costs by switching to smaller bags.) Potato Pro jefe Paul van Eijck thinks the trend is only going to accelerate. As the U.S. economy worsens, stressed-out Americans will binge more on junk food. To quote van Eijck: Hooray! Americans are being booted out of their homes and losing their retirement savings, but as long as they continue to stuff themselves with Pringles, all is right with the U.S.A. -- right folks?

And if you believe that stress result in more excessive consumption of snacks, the market may start to look even better.

Dear Barbara, Since both Frito-Lay and Procter and Gamble just reported recent financial data I thought this was a good time to see how the savory snack market is holding up in the current economic downturn. If one company is a good indicator of what is happening in the global snack market it is Frito-Lay . Just have a look at the global market share of Frito-lay; It is more than 10 times the market share of Number two, Procter and Gamble, the manufacturer of Pringles. Frito-Lay reported for the 3rd quarter a 9% revenue growth in North America, resulting from double-digit growth at Tostitos, Ruffles and Cheetos and high-single-digit growth in trademark Lay's and Doritos. Profit was up 6% and volume 1.5%. Frito-lay managed to pass on (most of the) higher oil and fuel costs (by increasing prices and reducing packaging sizes) without suffering a loss of overall volume! In the Middle East/Africa/Asia (MEAA) segment Frito-Lay reported a snack volume growth of 9 percent, led by double-digit growth in the Middle East, China, and India. The snacks business in Turkey grew high- single-digits, while Australia experienced a low-single-digit decline, primarily due to increased pricing. For Europe Frito-Lay refers to unfavorable circumstances and volumes growth in the low single digits. In the UK, low-single-digit growth at Walkers reflected the success of the value-added "Walkers' Brit Trips" promotion and solid pricing execution and cost control to offset significant commodity input costs. Strong top-line growth in the rest of Europe was led by high- teens snack growth in Russia and by mid-single-digit snack growth in the Netherlands. Pepsico has initiated a "productivity program" and part of this program is a reduction of the workforce with 3300 (keep in mind Pepsico has 185.000 employees!), of which 300 in Frito-Lay. Most jobs will be lost at Frito-Lays headquarters in Plano, but Frito-Lay also announced two plant closures: Closure of the Frito-Lay plant in Mission (Texas) and Closure of the Frito-Lay plant in Pointe Claire, Canada (Qc). The second largest savoury snack manufacturer globally is Procter and Gamble. Procter and Gamble reports for its fiscal first quarter (July-September) that snacks volume increased mid-single digits due to double- digit growth in North America behind strong base business growth of Pringles and continued growth from Pringles Extreme Flavors and Stix initiatives. Although some of Frito-Lay's and Procter and Gambles gains could have been at the expense of smaller local snack manufacturers, I interpret these results as a rather positive sign about how the snack market could hold up in a challenging economic situation. Especially if you keep in mind that price increases of ingredients and fuel are easing if not reversing. And if you believe that stress result in more excessive consumption of snacks, the market may start to look even better. Enjoy reading, Paul van Eijck

Cover photo from The Potato, Treasure of the Andes

For the first half of his life, Gregorio Huanuco farmed to a rhythm that dictated the survival of his grandparents and ancestors for thousands of years. He waited for the rains to fall on his small parcel of land in this village at 11,000 feet in the Cordillera Blanca, or White Range, of the Andes in central Peru, and planted native varieties of potatoes as well as cereal crops like quinoa. When the crops ripened, Huanuco, 45, harvested what he needed and sold what he didn't in the city of Huaraz several hundred feet below in the valley. Climatologists say global warming's impact was first documented in the Peruvian Andes in 1970, but 1990 is the year Huanuco says he began to notice disruptions, first in small, bizarre, anomalous forms: a battering hailstorm, two months without rain, a warm winter. Then the quirky weather became more consistent and other oddities began to appear: rats nibbling away at his cereal crops and a fungus, known as late blight, blanketing his potatoes. LAND ONCE FERTILE ''Before, we planted all year long, any month we wanted to,'' Huanuco said, dubiously eyeing his tiny plot, recently sown with potato seed. ``Now we only get water a few times a year and so we cannot plant as much, and the pests and diseases keep coming.''

: The Texas cowbow-turned-El Chalan, APEC Leaders' Summit, Nov. 23, 2008; photo c. Jorge Vera

It was 4 p.m. on the final day of the APEC Summit, and most of the leaders and the journalists had left the Minstry of Defense building where the summit had been held. El Fotógrafo and I were huddled in a cubicle in the International Media Center, trying to identify which Asian leader was which in a photo EF had taken earlier that afternoon. "Is that the president of Thailand? No, Vietnam?" We kept checking with a list of published photos of the leaders, most of which appeared to have been taken when the leaders were younger and had more hair. In the background a television broadcast a late-afternoon press meeting with the president of Singapore. "Mr. President," one journalist in the audience asked. "What do you think of the anti-pirating measure being proposed?" "Oh, yes, pirating is a big problem," said the president. "Groups of pirates are taking over ships and stealing the oil. This has got to stop." "No, excuse me, I mean -- the problem with intellectual property infringement," said the journalist. "Oh, yes," said the leader quickly, not losing a beat, "We have got to ensure that property rights are respected worldwide." And so it went that afternoon. That I was at the APEC Summit and filing a story from the Media Center was an unlikely event, from my perspective. I had been contacted by a U.S. paper two days prior to be on "standby" for the meetings in case they needed some "local color." I also was supposed to follow President Bush around and watch for something interesting to happen. Perhaps the idea the editors had in mind was Bush calling the APEC "OPEC," as he did last year in Sydney, or Bush calling Alan Garcia "gordo" or Bush getting feisty with the president of Russia. As it turned out, I never did manage to be anywhere near George W. Bush during the two days I was at the Little Pentagon. Like other summits with world leaders, the APEC was highly orchestrated and designed to frustrate both potential terrorists and journalists interested in asking serious questions of the outgoing U.S. president. I sensed this in advance, of course, but still I hoped that some strange confluence of events (these things happen in Peru) would put me & W together for an impromptu interview op -- say, in a stairwell by one of Fujimori's former torture chambers (the APEC summit was held in the very building where Fuji's men used to grill and torture suspected Shining Path members). Alas, my interview chance never materialized. EF had better luck than I did. He was admitted to a pool of photographers who shot the official APEC leaders portrait, which took place around noon on Sunday. By that time, I think W had had enough of Peru. The night before, the organizers of a gala dinner had plied him and other leaders with pisco sours and liquors made of lucuma, chirimoya and pisco. For a guy who's supposedly on the wagon, that's a triple challenge to the willpower center. So W was looking a little peaked by noon on Sunday, but kind of pleased to be twirling around in an alpaca poncho, and EF got some interesting shots of him, some of which deserve satiric captions. Where was I while this was happening? I and 40 other reporters were being held in a very hot and stuffy waiting area, prior to undergoing yet another security check (take off belt, shoes, laptop, etc.) before entering the summit auditorium. We stood there with our heavy gear in a plastic-enclosed corridor for more than an hour and then we were finally admitted. As I took my seat on the balcony of the auditorium, a guard told me, "No journalists are permitted here." I can't think of a stranger thing to say to a journalist you're escorting to a media event. I caught the last two minutes of a speech by the "Say No to Pirates" president of Singapore. Then it was all over. Bush had ditched the event after the official photo session and gone straight to the airport. It was a strenous two days of Not Trailing Bush. On Saturday afternoon I stood for an hour and a half on a plaza waiting for the US president, only to catch from the corner of my eye the sight of his motorcade leaving from a far gate. He had eluded the press again. I would have liked to have asked Mr. Bush many questions. I would have liked to have asked what he thought of unfettered free trade now that the US economy is tanking and the global economy along with it. I would have liked to have asked him about Iraq and Guatanamo and the erosion of rights in the United States. I would have liked to have asked how he thought History would judge his presidency. But none of that was possible. I did manage to speak to one very important person. though. Hector is a farmer from Tarma who grows potatoes. He stood around in the journalists' cafeteria next to an elaborate display of native Peruvian potato varieties and handed out samples of LAYS ANDINO potato chips during the weekend. Hector was dressed in a felt cap, with an Andean-fabric satchel wrapped around his shoulders for toting his potatoes to market. He was small and low key and about as close to an authentic Peruvian as most of the foreign journalists would get. It was hard for a journalist to get face time with the politicos at APEC but Hector and 100 varieties of papas were there to photograph and interview to our hearts' content.]]> http://americaninlima.com/2008/11/24/not-trailing-bush-at-the-apec/feed/ 2 We Want to Be Your Solution for All Things Potato http://americaninlima.com/2008/11/24/not-trailing-bush-at-the-apec/ http://americaninlima.com/2008/11/24/not-trailing-bush-at-the-apec/#comments Mon, 24 Nov 2008 18:31:50 +0000 Barbara http://americaninlima.com/?p=921 Yet Another Related Posts Plugin.]]>

: The Texas cowbow-turned-El Chalan, APEC Leaders' Summit, Nov. 23, 2008; photo c. Jorge Vera

It was 4 p.m. on the final day of the APEC Summit, and most of the leaders and the journalists had left the Minstry of Defense building where the summit had been held. El Fotógrafo and I were huddled in a cubicle in the International Media Center, trying to identify which Asian leader was which in a photo EF had taken earlier that afternoon. "Is that the president of Thailand? No, Vietnam?" We kept checking with a list of published photos of the leaders, most of which appeared to have been taken when the leaders were younger and had more hair. In the background a television broadcast a late-afternoon press meeting with the president of Singapore. "Mr. President," one journalist in the audience asked. "What do you think of the anti-pirating measure being proposed?" "Oh, yes, pirating is a big problem," said the president. "Groups of pirates are taking over ships and stealing the oil. This has got to stop." "No, excuse me, I mean -- the problem with intellectual property infringement," said the journalist. "Oh, yes," said the leader quickly, not losing a beat, "We have got to ensure that property rights are respected worldwide." And so it went that afternoon. That I was at the APEC Summit and filing a story from the Media Center was an unlikely event, from my perspective. I had been contacted by a U.S. paper two days prior to be on "standby" for the meetings in case they needed some "local color." I also was supposed to follow President Bush around and watch for something interesting to happen. Perhaps the idea the editors had in mind was Bush calling the APEC "OPEC," as he did last year in Sydney, or Bush calling Alan Garcia "gordo" or Bush getting feisty with the president of Russia. As it turned out, I never did manage to be anywhere near George W. Bush during the two days I was at the Little Pentagon. Like other summits with world leaders, the APEC was highly orchestrated and designed to frustrate both potential terrorists and journalists interested in asking serious questions of the outgoing U.S. president. I sensed this in advance, of course, but still I hoped that some strange confluence of events (these things happen in Peru) would put me & W together for an impromptu interview op -- say, in a stairwell by one of Fujimori's former torture chambers (the APEC summit was held in the very building where Fuji's men used to grill and torture suspected Shining Path members). Alas, my interview chance never materialized. EF had better luck than I did. He was admitted to a pool of photographers who shot the official APEC leaders portrait, which took place around noon on Sunday. By that time, I think W had had enough of Peru. The night before, the organizers of a gala dinner had plied him and other leaders with pisco sours and liquors made of lucuma, chirimoya and pisco. For a guy who's supposedly on the wagon, that's a triple challenge to the willpower center. So W was looking a little peaked by noon on Sunday, but kind of pleased to be twirling around in an alpaca poncho, and EF got some interesting shots of him, some of which deserve satiric captions. Where was I while this was happening? I and 40 other reporters were being held in a very hot and stuffy waiting area, prior to undergoing yet another security check (take off belt, shoes, laptop, etc.) before entering the summit auditorium. We stood there with our heavy gear in a plastic-enclosed corridor for more than an hour and then we were finally admitted. As I took my seat on the balcony of the auditorium, a guard told me, "No journalists are permitted here." I can't think of a stranger thing to say to a journalist you're escorting to a media event. I caught the last two minutes of a speech by the "Say No to Pirates" president of Singapore. Then it was all over. Bush had ditched the event after the official photo session and gone straight to the airport. It was a strenous two days of Not Trailing Bush. On Saturday afternoon I stood for an hour and a half on a plaza waiting for the US president, only to catch from the corner of my eye the sight of his motorcade leaving from a far gate. He had eluded the press again. I would have liked to have asked Mr. Bush many questions. I would have liked to have asked what he thought of unfettered free trade now that the US economy is tanking and the global economy along with it. I would have liked to have asked him about Iraq and Guatanamo and the erosion of rights in the United States. I would have liked to have asked how he thought History would judge his presidency. But none of that was possible. I did manage to speak to one very important person. though. Hector is a farmer from Tarma who grows potatoes. He stood around in the journalists' cafeteria next to an elaborate display of native Peruvian potato varieties and handed out samples of LAYS ANDINO potato chips during the weekend. Hector was dressed in a felt cap, with an Andean-fabric satchel wrapped around his shoulders for toting his potatoes to market. He was small and low key and about as close to an authentic Peruvian as most of the foreign journalists would get. It was hard for a journalist to get face time with the politicos at APEC but Hector and 100 varieties of papas were there to photograph and interview to our hearts' content.]]> http://americaninlima.com/2008/11/24/not-trailing-bush-at-the-apec/feed/ 2 An American in Lima » potatoes http://americaninlima.com slices of my life in Peru Sat, 12 Mar 2011 22:55:48 +0000 en hourly 1 http://wordpress.org/?v=3.1 Overstressed Americans Binge on Junk Food, Drive up Sales, Cheers Snack Food Industry! http://americaninlima.com/2008/11/27/overstressed-americans-binge-on-junk-food-drive-up-sales-cheers-snack-food-industry/ http://americaninlima.com/2008/11/27/overstressed-americans-binge-on-junk-food-drive-up-sales-cheers-snack-food-industry/#comments Thu, 27 Nov 2008 15:18:36 +0000 Barbara http://americaninlima.com/?p=952 Yet Another Related Posts Plugin.]]> The slow-motion collapse of the U.S. economy is harming consumers and businesses across the country -- well, almost every business that is. One industry is enjoying big sales gains thanks to the stress experienced by ordinary working people. North American sales of "savory snacks" (potato chips, Cheetos, etc.) by Frito-Lay are up 9% for the third qurater, reports Potato Pro, "your source for all things potato." Sales rose despite hikes in gas and ingredient prices and lowered earnings for Americans. (Some companies made up for the higher costs by switching to smaller bags.) Potato Pro jefe Paul van Eijck thinks the trend is only going to accelerate. As the U.S. economy worsens, stressed-out Americans will binge more on junk food. To quote van Eijck: Hooray! Americans are being booted out of their homes and losing their retirement savings, but as long as they continue to stuff themselves with Pringles, all is right with the U.S.A. -- right folks?

And if you believe that stress result in more excessive consumption of snacks, the market may start to look even better.

Dear Barbara, Since both Frito-Lay and Procter and Gamble just reported recent financial data I thought this was a good time to see how the savory snack market is holding up in the current economic downturn. If one company is a good indicator of what is happening in the global snack market it is Frito-Lay . Just have a look at the global market share of Frito-lay; It is more than 10 times the market share of Number two, Procter and Gamble, the manufacturer of Pringles. Frito-Lay reported for the 3rd quarter a 9% revenue growth in North America, resulting from double-digit growth at Tostitos, Ruffles and Cheetos and high-single-digit growth in trademark Lay's and Doritos. Profit was up 6% and volume 1.5%. Frito-lay managed to pass on (most of the) higher oil and fuel costs (by increasing prices and reducing packaging sizes) without suffering a loss of overall volume! In the Middle East/Africa/Asia (MEAA) segment Frito-Lay reported a snack volume growth of 9 percent, led by double-digit growth in the Middle East, China, and India. The snacks business in Turkey grew high- single-digits, while Australia experienced a low-single-digit decline, primarily due to increased pricing. For Europe Frito-Lay refers to unfavorable circumstances and volumes growth in the low single digits. In the UK, low-single-digit growth at Walkers reflected the success of the value-added "Walkers' Brit Trips" promotion and solid pricing execution and cost control to offset significant commodity input costs. Strong top-line growth in the rest of Europe was led by high- teens snack growth in Russia and by mid-single-digit snack growth in the Netherlands. Pepsico has initiated a "productivity program" and part of this program is a reduction of the workforce with 3300 (keep in mind Pepsico has 185.000 employees!), of which 300 in Frito-Lay. Most jobs will be lost at Frito-Lays headquarters in Plano, but Frito-Lay also announced two plant closures: Closure of the Frito-Lay plant in Mission (Texas) and Closure of the Frito-Lay plant in Pointe Claire, Canada (Qc). The second largest savoury snack manufacturer globally is Procter and Gamble. Procter and Gamble reports for its fiscal first quarter (July-September) that snacks volume increased mid-single digits due to double- digit growth in North America behind strong base business growth of Pringles and continued growth from Pringles Extreme Flavors and Stix initiatives. Although some of Frito-Lay's and Procter and Gambles gains could have been at the expense of smaller local snack manufacturers, I interpret these results as a rather positive sign about how the snack market could hold up in a challenging economic situation. Especially if you keep in mind that price increases of ingredients and fuel are easing if not reversing. And if you believe that stress result in more excessive consumption of snacks, the market may start to look even better. Enjoy reading, Paul van Eijck

Cover photo from The Potato, Treasure of the Andes

For the first half of his life, Gregorio Huanuco farmed to a rhythm that dictated the survival of his grandparents and ancestors for thousands of years. He waited for the rains to fall on his small parcel of land in this village at 11,000 feet in the Cordillera Blanca, or White Range, of the Andes in central Peru, and planted native varieties of potatoes as well as cereal crops like quinoa. When the crops ripened, Huanuco, 45, harvested what he needed and sold what he didn't in the city of Huaraz several hundred feet below in the valley. Climatologists say global warming's impact was first documented in the Peruvian Andes in 1970, but 1990 is the year Huanuco says he began to notice disruptions, first in small, bizarre, anomalous forms: a battering hailstorm, two months without rain, a warm winter. Then the quirky weather became more consistent and other oddities began to appear: rats nibbling away at his cereal crops and a fungus, known as late blight, blanketing his potatoes. LAND ONCE FERTILE ''Before, we planted all year long, any month we wanted to,'' Huanuco said, dubiously eyeing his tiny plot, recently sown with potato seed. ``Now we only get water a few times a year and so we cannot plant as much, and the pests and diseases keep coming.''

: The Texas cowbow-turned-El Chalan, APEC Leaders' Summit, Nov. 23, 2008; photo c. Jorge Vera

It was 4 p.m. on the final day of the APEC Summit, and most of the leaders and the journalists had left the Minstry of Defense building where the summit had been held. El Fotógrafo and I were huddled in a cubicle in the International Media Center, trying to identify which Asian leader was which in a photo EF had taken earlier that afternoon. "Is that the president of Thailand? No, Vietnam?" We kept checking with a list of published photos of the leaders, most of which appeared to have been taken when the leaders were younger and had more hair. In the background a television broadcast a late-afternoon press meeting with the president of Singapore. "Mr. President," one journalist in the audience asked. "What do you think of the anti-pirating measure being proposed?" "Oh, yes, pirating is a big problem," said the president. "Groups of pirates are taking over ships and stealing the oil. This has got to stop." "No, excuse me, I mean -- the problem with intellectual property infringement," said the journalist. "Oh, yes," said the leader quickly, not losing a beat, "We have got to ensure that property rights are respected worldwide." And so it went that afternoon. That I was at the APEC Summit and filing a story from the Media Center was an unlikely event, from my perspective. I had been contacted by a U.S. paper two days prior to be on "standby" for the meetings in case they needed some "local color." I also was supposed to follow President Bush around and watch for something interesting to happen. Perhaps the idea the editors had in mind was Bush calling the APEC "OPEC," as he did last year in Sydney, or Bush calling Alan Garcia "gordo" or Bush getting feisty with the president of Russia. As it turned out, I never did manage to be anywhere near George W. Bush during the two days I was at the Little Pentagon. Like other summits with world leaders, the APEC was highly orchestrated and designed to frustrate both potential terrorists and journalists interested in asking serious questions of the outgoing U.S. president. I sensed this in advance, of course, but still I hoped that some strange confluence of events (these things happen in Peru) would put me & W together for an impromptu interview op -- say, in a stairwell by one of Fujimori's former torture chambers (the APEC summit was held in the very building where Fuji's men used to grill and torture suspected Shining Path members). Alas, my interview chance never materialized. EF had better luck than I did. He was admitted to a pool of photographers who shot the official APEC leaders portrait, which took place around noon on Sunday. By that time, I think W had had enough of Peru. The night before, the organizers of a gala dinner had plied him and other leaders with pisco sours and liquors made of lucuma, chirimoya and pisco. For a guy who's supposedly on the wagon, that's a triple challenge to the willpower center. So W was looking a little peaked by noon on Sunday, but kind of pleased to be twirling around in an alpaca poncho, and EF got some interesting shots of him, some of which deserve satiric captions. Where was I while this was happening? I and 40 other reporters were being held in a very hot and stuffy waiting area, prior to undergoing yet another security check (take off belt, shoes, laptop, etc.) before entering the summit auditorium. We stood there with our heavy gear in a plastic-enclosed corridor for more than an hour and then we were finally admitted. As I took my seat on the balcony of the auditorium, a guard told me, "No journalists are permitted here." I can't think of a stranger thing to say to a journalist you're escorting to a media event. I caught the last two minutes of a speech by the "Say No to Pirates" president of Singapore. Then it was all over. Bush had ditched the event after the official photo session and gone straight to the airport. It was a strenous two days of Not Trailing Bush. On Saturday afternoon I stood for an hour and a half on a plaza waiting for the US president, only to catch from the corner of my eye the sight of his motorcade leaving from a far gate. He had eluded the press again. I would have liked to have asked Mr. Bush many questions. I would have liked to have asked what he thought of unfettered free trade now that the US economy is tanking and the global economy along with it. I would have liked to have asked him about Iraq and Guatanamo and the erosion of rights in the United States. I would have liked to have asked how he thought History would judge his presidency. But none of that was possible. I did manage to speak to one very important person. though. Hector is a farmer from Tarma who grows potatoes. He stood around in the journalists' cafeteria next to an elaborate display of native Peruvian potato varieties and handed out samples of LAYS ANDINO potato chips during the weekend. Hector was dressed in a felt cap, with an Andean-fabric satchel wrapped around his shoulders for toting his potatoes to market. He was small and low key and about as close to an authentic Peruvian as most of the foreign journalists would get. It was hard for a journalist to get face time with the politicos at APEC but Hector and 100 varieties of papas were there to photograph and interview to our hearts' content.]]> http://americaninlima.com/2008/11/24/not-trailing-bush-at-the-apec/feed/ 2 We Want to Be Your Solution for All Things Potato http://americaninlima.com/2008/10/22/we-want-to-be-your-solution-for-all-things-potato/ http://americaninlima.com/2008/10/22/we-want-to-be-your-solution-for-all-things-potato/#comments Wed, 22 Oct 2008 21:44:38 +0000 Barbara http://americaninlima.com/?p=673 Yet Another Related Posts Plugin.]]>

: Delicious purple Peruvian potatoes

Potatoes are a big deal in Peru. The Peruvan Andes were the birthplace of the potato, and today Peruvian farmers cultivate more than 3,000 native varieties of them -- potatoes with names like Ica Huila and Purple Viking and Wilja. The United Nations has declared 2008 "the International Year of the Potato," and this event is being celebrated in gastronomic festivals, restaurants and stores throughout Peru. Peruvians are passionate about potatoes and spend a lot of time preparing and eating them. This is not a country where you can get away with serving inferior spuds. Peruvians know a good potato when they eat one. Now that I've lived here for a year, I've developed papas consciousness, too. That's why I got on this rant, several weeks ago, about McDonald's restaurants in Peru serving french fries made with Canadian potatoes. It's counterintuitive -- like serving wines from New Jersey vineyards in a Sedona Valley wine bar, or opening a seafood restaurant in Maine featuring dishes made with surimi, that faux Japanese shellfish product. With superior ingredients at your doorstep, why not use them? During the process of uncovering where McDonald's Peru sources its potatoes, I contacted an international trade group called PotatoPro, which has its headquarters in Canada. I sent them an e-mail and didn't hear back, so I chased down the information elsewhere. Now, several weeks later, I receive this email:

Dear Barbara, Welcome to PotatoPro. You are now subscribed to PotatoPro. You will receive our weekly PotatoPro Newsletter and information on new Products and Services for Potato Processing Professionals. We want to be your one-stop Solution for all things Potato Processing.We offer Equipment, Market Research, Books and the Latest News. Find it on the PotatoPro site or contact us. Best Regards, Paul van Eijck Food Innovation Online

I'm touched by this e-mail. When I woke up this morning, I had no idea that I was about to be welcomed to the PotatoPro fold and enveloped in its community of Potato Processing Professionals. The e-mail does not explain where the potatoes used in Peruvian McDonald's restaurants come from, but apparently, that's not the point, from the PotatoPro perspective. The point has something to do with Capitalized Nouns and alliterations and having a powerful organization on my side in my quest for All Things Potato Processing. Obviously, some formal response is required on my part. Thinking it over, I've decided to change my name for one day. Parparpa Prake, Potato Processing Professional.]]> http://americaninlima.com/2008/10/22/we-want-to-be-your-solution-for-all-things-potato/feed/ 3