AGP Executive Report

Restaurant Deals: KFC is switching its U.S. beverage supplier from PepsiCo to Coca-Cola by spring 2027, ending a roughly 40-year partnership across 3,718 locations. New Products: Beyond Meat has launched a sparkling protein-and-caffeine drink as competition heats up in functional beverages. Regulation: Germany’s cabinet approved a tax on sugary drinks, while India’s expanded food-safety scrutiny is expected to raise compliance costs for food companies and restaurants. Nigeria’s NAFDAC also seized counterfeit alcohol packaging worth more than ₦200 million. Food Costs & Competition: Restaurant food costs face uneven pressure in 2027, and Senator Elizabeth Warren urged regulators to scrutinize Kroger’s proposed $1.65 billion acquisition of Giant Eagle over concerns about local competition and grocery prices. Industry Support: Sysco and partners are again backing CORE’s holiday grocery-card program for food and beverage workers’ families facing hardship.

Restaurant Innovation: McDonald’s is testing hand-breaded chicken at select Dublin restaurants for four months, gauging whether it can scale without adding kitchen complexity. Beverage Manufacturing: Coca-Cola Europacific Partners completed a $39.7 million upgrade at its Kewdale, Australia, plant, lifting can output by more than 40% to 1,500 per minute. Food Safety: Czech inspectors found 53.5% of tested ice-cream samples exceeded microbiological limits, citing hygiene and equipment-cleaning problems. Research & Exports: Nigerian food scientists called for closer collaboration among researchers, regulators and manufacturers to turn research into products and boost exports. Kazakhstan has also adopted a new pasteurized camel-milk standard to help producers reach markets including China and the Middle East. Food Prices: In South Korea, only one in five restaurants offered meals below 10,000 won last year as dining costs climbed, pushing consumers toward convenience-store meals and fast food.

Food Safety: The FDA is proposing to expand a regulatory exemption that could allow some chemicals to be added directly to food without safety review. Public-health advocates warn it could weaken oversight of ingredients such as flavorings and preservatives. Grocery Prices: U.S. food-at-home prices dipped 0.1% in September, though they remained 1.8% higher than a year earlier; nonalcoholic drinks rose 0.9% for the month. 2027 Food Trends: Whole Foods predicts growing interest in food origin, Japanese comfort dishes, bitter flavors, food-as-skincare products and beans as main dishes. Beverage Retail: Walmart has introduced a Mood & Mind section in about 1,000 stores, grouping drinks marketed for occasions such as focusing, recharging and unwinding. Dairy Drinks: Reliance launched its Rs 20 Joyland flavoured milk in Tamil Nadu, its first move into ready-to-drink dairy, with plans to expand the range. Limited-Time Flavor: Wingstop’s Sour Patch Kids Wicked Punch wings—a sweet-and-sour redberry glaze finished with candy pieces—arrive nationwide Oct. 27 through Nov. 5.

Food Safety: Nigeria’s NAFDAC says it uncovered a Lagos factory producing counterfeit alcoholic and energy drinks, arrested two suspects and seized products valued at more than N2 billion. Japan Policy: Prime Minister Sanae Takaichi reportedly plans to replace agriculture minister Kazuo Yana amid a parliamentary fight over a temporary sales-tax cut on food and beverages. China Expansion: U.S. fast-food brands including Church’s Texas Chicken and Five Guys are drawing crowds as they target younger Chinese consumers. Meat Industry: JBS is planning a $5 billion expansion into Southeast Asia; Greenpeace warns it could worsen deforestation and is pursuing legal action to try to block the move. Food Regulation: A proposed FDA change could allow certain chemicals to be used directly in food without safety review, prompting public-health advocates to warn of risks from cumulative exposure. Consumer Goods: Indian food and consumer companies face narrower profit margins as higher raw-material costs outpace selective price increases.

Food Safety: Nigeria’s NAFDAC seized counterfeit alcohol and other drinks worth more than ₦2 billion in a Lagos raid, uncovering over 20 illegal stores and arresting two suspects. Regulation: A proposed FDA rule could extend an exemption to some chemicals used directly in food without safety review; public-health advocates warn it could weaken oversight. Global Food Trade: Spain’s agriculture minister used the 2026 Alimentos de España awards to promote the country’s food sector, which exported more than €78 billion in 2025. Product Trends: PepsiCo India is expanding its zero-sugar drinks and millet-based snacks as consumer preferences shift. Grocery Brands: Store brands reached a record 23.8% unit share in the U.S. by midyear, with quality and innovation helping drive loyalty, according to PLMA. Nutrition Claims: A study of nearly 150,000 U.S. food and beverage launches suggests package claims may be a poor guide to overall nutritional quality.

Beverage Expansion: KFC is bringing its Kwench drinks counters to Scotland with a £38 million investment, adding boba, shakes, iced coffee and matcha to its menus. Food Safety: A proposed FDA rule could let some chemicals enter food directly without safety review, drawing public-health warnings; India’s FSSAI is also weighing tighter checks on online food listings, dark kitchens and storage. Industry Watch: Domino’s Australasian business faces another leadership change, its third CEO in under three years. Global Trade: Türkiye’s August food, beverage and tobacco export prices rose 7.4% year over year, while Russia’s import restrictions on some Georgian drinks remain unexplained by officials. Nutrition: Ireland’s new teen dietary guidance cautions that plant-based drinks may not match dairy’s nutrients and says protein shakes are unnecessary for most adolescents.

Food Safety: Tennessee health officials are investigating a possible outbreak after 19 workers at a Walmart distribution center were hospitalized; the source has not been identified. The inquiry follows a summer Cyclospora outbreak linked to processed lettuce, which the CDC says has ended. Wine Industry: Thieves stole about 30,000 bottles worth an estimated $5.8 million from a Tuscan winery in what its producer calls Italy’s largest wine heist. Consumer Prices: Bulgaria’s consumer watchdog reported markups above 140% on some dairy products at major retail chains and says it will seek explanations from retailers. Global Trade: Philippine food makers are targeting Qatar and Gulf markets with halal-certified, shelf-stable ready meals. Retail: 7-Eleven has launched Selección 7, a Hispanic-inspired private-label range featuring bakery items, snacks and candy. Restaurant Deals: Starbucks says it will not buy Chipotle, ending speculation about a potential takeover.

Supply Costs: India’s monsoon risks could raise procurement and working-capital costs for food processors, poultry producers and other businesses, with reduced rice and maize acreage adding to concerns. Restaurant Reopenings: New owners plan to bring 110 former Whitbread pubs and restaurants back, with more than 700 jobs expected at Common Table Group’s sites and further roles anticipated across the wider deal. Competition Watch: Sugar, flour and starch producers face up to $820 million in fines over alleged price coordination, while Japanese beer brands are also under investigation over suspected price-fixing. Clean Labels: Food and drink makers face growing pressure to replace ingredients consumers distrust and substantiate natural claims with transparent sourcing. Major Deal Watch: Starbucks has reportedly explored a potential purchase of Chipotle, though no offer has been confirmed. Research: A two-year study found no statistically significant weight-loss advantage for low-calorie sweetened drinks over water.

Food Price-Fixing: South Korea’s antitrust authority found four food companies colluded over sugar, flour and starch prices, with cumulative penalties totaling 1.19 trillion won. Beverage Probe: Japan’s competition watchdog raided the country’s four biggest breweries over suspected coordination of beer price increases; the companies say they will cooperate. Trade Tensions: A U.S. ban on nearly $1 billion in Canadian imports, including alcohol and dairy, adds pressure to an escalating trade dispute. Sugar Levies: Zimbabwean MPs are demanding an account of how sugar-tax revenue is spent, as donor funding for health services declines. Industry Watch: Starbucks faces lawsuits over sugar claims in its drinks, while Chick-fil-A says it will keep human staff handling drive-through orders rather than adopt AI voice ordering.

Market Expansion: Matcha lattes made with Boseong-grown tea are targeting a December trial at 40 U.S. Costco stores, a new export channel for South Korean producers. Dairy Investment: Uttar Pradesh says it received dairy-sector investment proposals worth ₹695.18 crore, including plans for new processing plants. Food Production: A bakery expo in Kerala showcased an egg-breaking machine that separates yolks and whites at 2,500 eggs an hour, alongside products from more than 700 companies. Industry Pressures: McDonald’s franchisees may seek to reduce the estimated $800,000 cost of the chain’s restaurant upgrades, while farmers in India’s Sikkim region struggle with declining black-cardamom production. Regulation and Health: Starbucks faces a lawsuit challenging sugar claims on some drinks; separately, an Indian court has allowed PepsiCo and Monster to sell existing high-caffeine drinks labeled “energy drinks,” while barring new stock with that label. Trade and Output: Finland’s food-industry turnover rose 2.8% year over year in August, with exports up 3.8%; an Andhra Pradesh tea factory is reported to produce 3 million tea bags daily for major retailers.

Beverage Trade: Russia has banned imports of alcohol and other drinks from several Georgian producers, including Georgian-made Coca-Cola and mineral water, citing safety and quality violations. Sugar Claims: Starbucks faces a proposed class action alleging some “sugar-free” protein drinks contain 13–21 grams of sugar in a large serving; the company says the claims have no merit. Food Safety: Indian officials seized about 3.75 tonnes of spices and other ingredients from a Greater Noida factory amid suspected adulteration. Industry Moves: Carlsberg plans to acquire PepsiCo bottlers in Armenia and Georgia, while PepsiCo cut its 2026 earnings outlook as North American sales remain weak. Restaurant Pressure: McDonald’s franchisees are pushing back on costly proposed remodels as the chain also faces lawsuits over alleged AI-driven pricing. Supply Risks: Food industry groups warn that a Super El Niño could disrupt supplies. Restaurant Finance: Oprah-backed True Food Kitchen filed for bankruptcy and plans to close 12 locations.

Restaurant & Retail: Pizza Hut plans to expand to 31 locations in Hungary, while Cinnamon Hotels has launched a dining rewards program across Colombo properties. Food Trends: India’s MTR is spotlighting the role of sweets in festive traditions; Japan’s Yoho Brewing hopes a tilting beer glass will encourage drinkers to alternate beer with water. Prices & Supply: Thai households are spending more on transport as fuel costs rise, with higher freight and production costs also feeding into food bills. Industry warnings of supply-chain disruption and a strong El Niño raise concerns about Christmas food prices. PepsiCo is raising prices on some snacks and drinks as U.S. sales weaken. Lawsuits & Closures: Starbucks faces a class action alleging its “sugar-free” protein drinks contain up to 21 grams of sugar per serving. McDonald’s is also facing lawsuits over alleged AI-assisted menu pricing; the company says it does not set franchise menu prices. True Food Kitchen has filed for bankruptcy and plans to close 12 restaurants. Policy: Japan has approved a bill to cut the food consumption tax to 1% for two years.

Restaurant Expansion: St. Louis Bar and Grill has opened a new location in Sault Ste. Marie, adding to the Canadian wing-and-rib chain’s more than 80 restaurants. Potential Mega-Deal: Starbucks is reportedly exploring a takeover of Chipotle, a move that could reshape competition across coffee and fast-casual dining. Pricing Scrutiny: McDonald’s faces a lawsuit alleging its AI pricing tool could coordinate menu prices across franchises; the company says it does not dictate prices. PepsiCo Pressures: The snack and beverage giant cut its 2026 earnings forecast as North American sales lag, and plans further cost reductions. Health Research: A community-based program encouraging children to drink fewer sugary beverages was linked to a greater reduction in BMI over 12 months. Food Access: Washington, D.C.’s Marion Barry Avenue Market & Café marked its first year connecting residents with fresh produce, prepared foods and local food businesses. Export Opportunity: The EU’s temporary trade preferences will ease access for Armenian exporters, including producers of beverages and spirits.

Food Costs: Food prices were the biggest driver of Albania’s 2.9% inflation in September. In Japan, household spending fell 3.1% in August as food costs squeezed budgets; the Cabinet has approved a bill to cut the tax on food and non-alcoholic drinks from 8% to 1% for two years starting in 2027. Pricing Pressure: PepsiCo plans single-digit price increases on some Doritos, Ruffles, SunChips and sodas, reversing course after recent cuts as input costs rise. Restaurant Shake-up: True Food Kitchen filed for Chapter 11 and closed 12 locations, while continuing to operate 34 restaurants. McDonald’s faces a lawsuit alleging its AI pricing tools helped coordinate higher franchise prices. Product Moves: Mars is adding three festive hot chocolate sachets with toppings, while India’s zero-added-sugar startup Sorry Sugar named Palash Arneja CEO after raising $1 million. Safety Alert: A baby gripe-water supplement sold online was recalled after tests found undeclared ethanol, methanol and isopropanol.

Restaurant Deals: Starbucks has reportedly explored a takeover of Chipotle, sending Chipotle shares higher. No offer has been made, and analysts warn the costly deal could distract Starbucks from its turnaround. Beverage Industry: Japan’s competition watchdog raided the country’s four biggest brewers over suspected price-fixing. The probe comes as beer demand faces pressure from changing drinking habits and tax reforms. Market Strains: PepsiCo reported North American soft-drink volumes down 2% and lowered its full-year outlook, citing strained consumers; energy and functional drinks are among the brighter spots. Legal Challenges: Starbucks faces a lawsuit alleging its “sugar-free” protein drinks contain significant sugar, while McDonald’s is contesting claims that an AI pricing tool helps coordinate menu prices. Coffee Costs: With bean prices near 50-year highs, some supermarket brands have changed labels or blends, including dropping “100% Arabica” descriptions. Industry experts say shoppers should be told when products change.

Alcohol Rules: Panglao, a tourism hub in the Philippines, ordered bars, pubs and other nightlife venues to stop serving customers at midnight, citing noise, public safety and disorder concerns. Beverage Industry: Japan’s watchdog raided the country’s four major brewers over suspected price-fixing. In Armenia, beverage production rose 14.4% in January–August year over year. Restaurant Challenges: Starbucks faces a US lawsuit alleging eight “sugar-free” protein drinks contain sugar, while McDonald’s is accused in a separate suit of using AI-assisted pricing to coordinate menu price increases. Closures: Oprah-backed True Food Kitchen filed for bankruptcy and is closing 12 locations. Food Innovation: Mars says future product development will focus on taste, convenience and health, with more fibre and AI playing a growing role in understanding consumer trends.