AGP Executive Report

Coffee Cost Pressure: UK coffee prices are climbing fast, with one ground bag up about 48% since 2021, driven by bean shortages and higher supply costs—meaning shoppers can easily double or triple their weekly spend. Deposit-Return Push: Ontario municipalities, including Hamilton, are urging a deposit-return system for non-alcoholic drink containers as recycling rates lag, aiming to boost consumer and industrial returns. Fast-Food Innovation: KFC is testing a new “Open House” concept in Texas with breakfast, late hours, and new drink ideas like boba-filled refreshers, as it tries to regain momentum. Inflation Watch: South Korea’s central bank is warning about “domino” price hikes spreading through coffee and dining out after dozens of firms signaled increases. Industry Calendar: SaudiFood Show and Saudifood Manufacturing 2026 open in Jeddah with 1,000+ exhibitors across the full food value chain. Health Labeling: India moves closer to stronger sugar, salt and fat warnings for packaged foods, forcing global brands to rethink formulas and marketing. Recycling Funding: Hawaii’s HI-5 deposit program is set to change redemption rates as lawmakers look for ways to lift recovery. Beverage Branding: In Peru, Inca Kola is rebranding as the “other cola war” heats up against Coca-Cola and Pepsi.

Regional Food Expansion: Tradewinds Malaysia says it wants a stronger local food footprint and to grow into a regional food conglomerate, highlighting stakes in flour and food firms and a new Malaysia hub push with Saudi poultry partner Tanmiah. Public Health & Safety: The American Red Cross declared a national blood supply crisis, with Type O shortages forcing hospitals to limit distribution and postpone some elective surgeries. Alcohol Enforcement: Redding police, with state ABC agents, arrested two adults for furnishing alcohol to minors after a “shoulder tap” sting. New Openings: Liquified Juicery is opening in Petaluma with unpasteurized cold-pressed drinks and sea moss elixirs, while Richmond, B.C. gets Mr. Noodle Chen’s first North American hand-pulled beef noodle spot. Beverage Industry Moves: Swire Coca-Cola USA is building a new Idaho Falls distribution facility to consolidate operations. Events & Culture: Oakland’s Oaktoberfest returns with hundreds of beer options, and Virginia Beach’s Farm Aid 2026 spotlighted pressure on family farmers. Consumer Trends: A study links social media “clean eating” content to rising orthorexia risk. Food & Drink Business: Qatar and Malaysia used MIHAS to deepen trade and investment cooperation, including halal-focused deals.

Trade & Exports: Valencia’s agri-food exports hit €6,219.7m in Jan–Jul 2026, about 26.3% of total overseas sales, with a positive trade balance as the sector keeps competing abroad. Partnerships & Distribution: Varun Beverages Zimbabwe secured an exclusive Mondelez distribution deal for chocolate, biscuits, candy and gum starting Oct. 1, using its existing network to expand confectionery. Beverage Investment: Coca-Cola’s Nigeria system says it will invest an extra $1bn over five years, tied to a supportive policy environment, citing major jobs and local sourcing impacts. Packaging Policy: US senators reintroduced a bill to ban toxic substances in plastic beverage containers and push cleanup funds toward underserved communities. Recycling Program Pressure: Hawaii’s HI-5 deposit fund climbed to $105m as redemption rates fall, with lawmakers hearing about limited redemption-center space and convenience gaps. New Drinks & Brands: Campari is betting big on Sarti Rosa, a pink spritz aperitivo aimed at younger US drinkers. Health & Teens: Schools and regulators are tightening scrutiny as energy-drink use among US high school seniors reaches about 1 in 4 daily. Market Expansion: Kinza says it’s expanding across Southeast Asia via local partners, focusing on consumer insight and supply-chain capability.

AI in Fast Food: McDonald’s says it will roll out ArchIQ across drive-thru voice AI, inventory tracking, connected equipment and order-accuracy tools, aiming to cut complexity and free labor hours. Snack Price Pressure: PepsiCo plans low- to mid-single-digit price hikes on some chips and select sodas/dips by late 2026 or early 2027, after earlier cuts. Coffee Culture & Deals: National Coffee Day on Sept. 29 is driving a wave of freebies and promos, from chain rewards to local “coffee passport” events in Franklin County and Starbucks Refreshers sampling stops across NYC. New Concepts on the Menu: KFC opens “Open House” in McKinney, Texas, blending a more sit-down feel with kiosks and a dual-lane drive-thru; Sheraton Maui debuts Isolana, an Italian-inspired beachfront restaurant using Maui ingredients. Food Safety & Compliance: Arkansas posts fresh retail inspection findings, while Hawaiʻi updates its deposit beverage container redemption rates effective Oct. 1. Industry Leadership: Nestlé names Manuela Bernasconi to lead legal and compliance as group general counsel and executive board member. Beverage Business Moves: Sysco closes a C$1.5B senior notes offering tied to its pending Jetro Restaurant Depot acquisition.

Airport Dining & Retail: SSP America opened new Shake Shack and Dunkin’ at New York JFK Terminal 5 as JetBlue’s $100m terminal revamp adds 40+ concessions and NYC-inspired passenger experiences. Manufacturing Skills for Decarbonization: Encirc is investing £700,000 in low-carbon glass skills at its Derrylin plant, training workers in alternative fuels, engineering, digital tools and AI as it targets carbon-free glass by 2030. Beverage & Food Safety Policy: Vietnam plans to amend its food safety law to bring delivery apps like Shopee and Grab under new requirements amid ongoing public concerns about vendors cutting corners. Alcohol Enforcement: Lagos State Police sealed a suspected fake alcoholic drink factory in Badagry, seizing adulterated drinks, bottles, labels and production tools. QSR Media Push: McDonald’s is piloting a “Media Network” using digital menu boards and app touchpoints at 450 company-owned US restaurants, aiming for up to $1bn annual ad revenue. Hospitality & Cocktails: Hyatt Hyderabad Gachibowli launched 4Note Gardens, an alfresco dining spot with small plates, meal bowls and handcrafted cocktails. Industry Events: Cibus Tec 2026 returns to Parma Oct. 27-30, spotlighting “Bakery? Yes, we tec!” and “Beverage? Yes, we tec!” plus World Pasta Day.

Functional Drinks Watch: A new webinar spotlights how brands can formulate functional beverages while dodging “zero sugar/sugar-free” legal risk tied to sweeteners like allulose and managing bitter notes from caffeine and adaptogens. Craft Spirits Spotlight: In Kerry, Ireland, Muckross Wild Irish Spirits expands with a locally inspired gin and a newly launched vodka, leaning hard into “sense of place” botanicals. Policy & Public Trust: Dade County’s executive says a new policy will bar elected officials from buying alcohol with county cards after a commissioner spending controversy. Foodservice & Events: Universal Orlando set 2027 Mardi Gras dates (Feb. 6–Mar. 27) with global food and New Orleans favorites; Chicago’s Presidents Cup leans into local eats and signature cocktails for fans at Medinah No. 3. Industry Business Moves: McCormick declared a $0.48 quarterly dividend; packaged-food giants warn that rising scrutiny of ultra-processed foods could hit demand and costs. Beverage Rollout: Louisiana’s SONIC expands the Blue Pelican Slush statewide to all 138 drive-ins, with proceeds tied to litter prevention.

Functional Beverages Under Fire: A new 2026 webinar spotlights how brands can formulate functional drinks while managing “zero sugar/sugar-free” claim risk, bitter actives, and mouthfeel—plus the legal and regulatory traps ahead. Halal & SME Support: Malaysia’s KUSKOP says it has helped 3,000+ MSMEs secure halal certification, with new partnerships aimed at speeding approvals and boosting digital marketing. Diabetes & Soda Reality Check: A consumer health explainer warns that sugary soda can spike blood glucose quickly, urging people with diabetes to limit or avoid it as an everyday drink. Fast-Food Drink Buzz: Taco Bell rolls out Olivia Rodrigo’s limited-edition “You Seem Pretty Pink” Baja Blast nationwide, tied to a rewards sweepstakes. Snacking Trends: Industry coverage argues “better-for-you” isn’t replacing indulgence—health is being layered into familiar flavors, formats, and textures. Food Safety Watch: Pennsylvania restaurant inspection updates flag temperature control and sanitation lapses at multiple sites. Packaging Policy Shift (Italy): Italy moves to allow compostable single-use plastics for certain fresh produce and HORECA food/drink packaging, certified to EN 13432. Distribution Court Fight (Wine): Kenya’s Wow Beverages loses a bid to block termination of a South African wine distributorship, with the court citing an unwritten deal. New Openings: A Syrian chef’s second Imad’s Syrian Kitchen is set to open in London’s Norton Folgate, while an American diner concept launches at Leeds Bradford Airport.

Regulatory Heat on Drinks: Arizona AG Kris Mayes sued Botanic Tonics over its “feel free” kratom-and-kava tonic, alleging it’s marketed like an energy drink while allegedly hiding addiction/withdrawal risks. Functional Beverage Formulation: A webinar spotlights how brands can navigate sugar-free/zero-sugar legal exposure and formulation hurdles for functional drinks, from bitter actives to compliant claims. Halal Trade Push: Brazil is eyeing Malaysia as a logistics gateway to expand into Asia’s halal market, highlighting MIHAS 2026. Coffee Retail Upgrade: Arko rolled out a revamped in-store coffee program with personalization, seasonal recipes, and limited-time drinks. Franchise & Bar Culture: PJ’s Coffee landed #89 on Entrepreneur’s multi-unit franchise list, while The 50 Best Bars expanded its 2026 rankings to include venues ranked 51-100. Industry Economics: New Zealand wine exports rose to $2.108B in 12 months to June 2026, even as harvest shrank. Distribution Tech: Hy-Tek launched beverage distribution automation solutions for fast-growing SKU-heavy portfolios. Local F&B Events: Oktoberfest celebrations and other beer-and-food festivals are set across multiple cities, signaling strong fall demand.

Functional Beverage Scrutiny: A new webinar spotlights how brands can formulate functional drinks that hit taste and mouthfeel targets while managing legal risk around “zero sugar” and “sugar-free” claims tied to sweeteners like allulose. Market Growth: BCC Research projects functional foods and beverages will climb from $365.1B (2024) to $591.7B by 2030, led by digestive, cardiovascular and cognitive benefits. Packaging Deal: Butterfly Equity agreed to acquire Sabert, a 13-site food packaging maker spanning plastics, paper and moulded fibre, with closing expected in Q4 2026. K-Food Goes Global: Gochujang and kimchi paste are spreading through mainstream menus and retail, with gochujang exports rising faster than overall sauce growth. Food Safety Watch: A Leicester takeaway was hit with a zero-star rating after inspectors found cooked rice stored on a dirty bed sheet and other hygiene failures. Community & Hospitality: Wine Growers Canada’s “Come Over October” urges Canadians to reconnect over meals, with winery and restaurant partners driving events through October.

Beer & Alcohol Enforcement: Franklin’s Beer Board suspended Tin Roof II’s liquor license for three weeks and fined it $2,500 after alleged overserving of visibly intoxicated patrons; Kimbro’s Pickin’ Parlor was also ordered to tighten protocols after similar accusations. Retail & Delivery: Instacart and Gopuff are expanding their partnership, bringing Gopuff’s grocery, snacks, beverages and everyday essentials to the Instacart marketplace with fulfillment via Gopuff’s network and faster delivery claims; the deal also boosts Instacart retail media via Carrot Ads. Convenience Store Strategy: CSP reports c-stores are building limited-time offers from sales data, staff ideas, and in-store taste tests, with chains leaning into hot items and protein-forward concepts. Airport Food Growth: Canadian Rockies International Airport is repaving and adding expanded food options, including a new Peppergrass Market and Café featuring locally sourced products. Hospitality & Dining Expansion: Stonebridge added a dual-branded Courtyard/Element Marriott in Atlanta Midtown, with plans to elevate dining via its Ponce Room Bar & Kitchen. Food Business Support: Norfolk’s Bon Appetit program returns with an eight-week course and a $7,500 grant for local food entrepreneurs, aiming to grow the city’s catering vendor pool. Beverage Innovation & Claims Risk: A functional beverage webinar highlights rising scrutiny and litigation around “zero sugar” and “sugar-free” claims, stressing formulation science and regulatory compliance. New Menu Buzz: Dairy Queen is rolling out an Enchanted Oreo Blizzard featuring ube, plus a Sparkler drink and other spooky-season items.

Meal Kits Meet Shelf-Stable Convenience: Chef Daniel Humm and CPG veteran Mark Ramadan launched Riff, chef-crafted meal kits that cook in one pot in about 20 minutes—no delivery, no perishables, and “riffable” add-ins—now at Target at $6.99 per box. Functional Drinks Go Flavor-Forward: New data shows coffee and tea are shifting from pure function to flavor-led growth, with coffee searches up sharply across social platforms and brands leaning into discovery and comfort. Budget Pressure Spurs Flavor Spending: As consumers tighten food budgets, McCormick is leaning into spices and condiments that help stretch meals, while the wider category faces volume headwinds. Seasonal Snacking Watch: Apple pie is emerging as a fall breakout, even as pumpkin spice shows signs of search fatigue—especially in coffee and snack categories. Food Safety Scrutiny: A Delhi creator posted a Starbucks drink incident involving a dead fly on strawberry pieces; Starbucks India apologized amid renewed hygiene questions. Packaging & Supply Chain: Amcor highlighted food-and-beverage packaging solutions at FoodTech 2026, focusing on lightweight dairy and chilled/dry formats. Sugar Tensions in South Africa: SA Canegrowers says retailers aren’t meeting a local sugar sourcing masterplan, driving a 20% sales slump and raising pressure over imports. Russia Business Uncertainty: Nestlé Russia says it will keep operating after Kremlin moves place assets under temporary management, underscoring ongoing risk for foreign food firms.

Food Safety & Consumer Impact: Taco Bell says traffic is still down 12.2% since the July cyclospora outbreak, even after pulling ingredients tied to the iceberg lettuce source. Supply Chain & Costs: Rising gas prices are pushing up restaurant costs in Philadelphia, with operators citing higher beef and produce prices tied to fuel and longer sourcing routes. Packaging Responsibility: A new “Working Lunch” segment spotlights extended producer responsibility (EPR), including an Oregon case shifting recycling and waste costs to packaged-goods producers. Manufacturing & Color Standards: With FD&C Red No. 3 gone and synthetic dye removals underway, food makers are reformulating with natural colorants that can vary batch to batch—forcing new quality systems. Beverage Marketing: Hard Mountain Dew launches a $1M “Bigfoot Bounty” campaign seeking “verified evidence” of the legend. Hospitality & Events: Eataly extends Negroni Week in NYC with bartender takeovers and ticketed socials, while SHFM names its 2026-27 Rising Stars in foodservice leadership. Sustainability on the Ground: Philippines partners collected 6,027.92 kg of non-biodegradable waste across Caraga’s coastal cleanup.

National Coffee Day Collab: Tim Hortons and adidas are teaming up for a Tims Run Club footwear and apparel drop, with early access for Tims Rewards members on Sept. 24 and the public launch Sept. 26, plus retro coffee cups returning in restaurants. Trade & Policy: Pampanga’s One Pampanga Food and Beverage Expo (OPFBEX) gathered 80+ exhibitors and a Food Forward forum on food security, investment, sustainability and culinary tourism. Food Safety & Public Health: A York County restaurant inspection roundup flagged issues including dirty equipment and temperature-control gaps at multiple sites. Dairy Retail Demand: Dairy milk remains a major U.S. staple, with retailers treating it as a destination category as shoppers’ basket behavior shifts. Sustainability in Action: Singapore’s Beverage Container Return Scheme hit 33M returned containers and opened a Tuas counting-and-sorting facility ahead of full rollout on Oct. 1. Regulatory Pressure on Food Pricing: South Korean courts temporarily suspended major antitrust fines tied to alleged sugar and wheat flour price-fixing. Industry Moves: Sazerac launched a voluntary takeover offer for Germany’s Berentzen, valuing it at €5.55 per share.

Food Prices & Retail Politics: New Zealand supermarket owner-operators have signed open letters opposing a proposed break-up of Foodstuffs co-operatives, warning it could raise costs and disrupt supply and regional services. Coastal Cleanup Push: Volunteers in the Philippines’ Mimaropa region collected 107,607 pieces of marine litter across 19 sites, with beverage bottles and food wrappers among the most common finds. Beverage & Hospitality Events: Fairhope restaurants Hope Farm and Little Bird are running Negroni Week cocktail specials to benefit Slow Food, while Russell’s Bricks, Broncs & BBQ returns Oct. 2-3 with a beer garden and craft beverage “Brew Me.” Industry & Innovation: Virginia Tech research aims to narrow the quality gap between plastics and bioplastics for food packaging. Food Safety & Water: Bloomington issued a boil advisory for Monroe County due to elevated turbidity after storm-related power outages at a water treatment plant. Global Trade Spotlight: Guyana’s rum and food products drew interest at Miami’s Food and Beverage Show as World Trade Centre Guyana sought U.S. export partners. New Openings: Kamloops’ first meadery, Lion’s Head Meadery, officially opened in Monte Creek, adding to the Kamloops Wine Trail.

Bottle Recycling Push: New York Gov. signs Sen. Blakespear’s bottle-recycling legislation, aiming to boost recovery rates and cut waste. Private Label Surge: Greece’s “Made in Greece” trend is lifting private label—nearly 4 in 10 products are now store brands, with households leaning on lower prices. Coffee Under Scrutiny: An FDA-allowed coffee contaminant story is going viral, reigniting debate over what’s technically permitted in everyday drinks. Men’s Wellness Supplements: SodaPeak launches 2026 “SodaPeak Gummies,” pitching a multi-ingredient formula (including caffeine, green tea, maca, ashwagandha) for men’s daily wellness. Food Safety Checks: Pennsylvania restaurant inspections highlight issues like improper date marking and temperature control in ready-to-eat foods. Sustainability in Action: Mimaropa’s International Coastal Cleanup pulled 107,607 litter items—beverage bottles and food wrappers topped the list. Coffee Culture & Growth: Thailand’s THB65B coffee market is shifting toward specialty, quality, and sustainability, with waste reduction becoming a bigger focus. Industry Tech Award: ANGEL’s water purification work for KFC Indonesia wins a Sustainable Tech—Food & Beverage award at the Asian Technology Excellence Awards. On-the-Ground Hospitality Training: Bird Academy and partners complete a hospitality skills program for youth in Jewar, including Food & Beverage training tied to local airport and hotel jobs.

Bottle Recycling Push: California Gov. Gavin Newsom signed Sen. Catherine Blakespear’s SB 955 to expand beverage-container return access and eliminate “recycling dead zones,” aiming for 100% of sold bottles to be returnable for CRV refunds. Retail Energy Drink Shake-Up: Kroger stopped selling Red Bull at Fry’s stores nationwide, pulling displays and coolers as the brand runs out of stock while the retailer works with suppliers. Food Safety/Regulation: India’s FSSAI took action against Nestlé baby formula, saying a sample was “substandard” on biotin levels and filing cases over alleged misleading infant-nutrition claims. Beverage Brand Spotlight: Hurtigruten unveiled “Arctic Barolo,” matured for a year beneath the Arctic Ocean and now served exclusively on its ships. Local Food Culture: Pease Pickle Fest returns Sept. 26 with 120+ vendors, pickle-themed drinks and foods, and family activities. Restaurant Moves: Petros closed its Manhattan Beach flagship and filed for a new “Petros Speakeasy” concept next to its Playa del Rey café. Quick Kitchen Tip: A guide recommends reheating leftover pizza in an air fryer for crispier results without overcooking.