business news in context, analysis with attitude


  • The Associated Press reports that Albertsons, Kroger and Safeway have settled a class action lawsuit brought against them by more than two thousand janitors, who charged that they underpaid because they were illegally classified as subcontractors in the chains’ Southern California stores.

    The janitors will receive $22.4 million from the chains, which will be divided among them based on terms of service.


  • Colgate-Palmolive announced yesterday that it plans to close a third of its factories and eliminate roughly 12 percent of its work force as part of a restructuring program that could cost between $550 million and $650 million, but that it hopes will allow it to invest more money in sales and marketing programs. The company is making the move because of increased competition, especially from Procter & Gamble.


  • Wendy's International announced that it will allow customers to substitute chili, a baked potato or a salad for French fries in its combo meals, trying to compensate for a recent decline in market share.

    At the same time, the New York Post reports that Wendy’s has decided only to put a slice of tomato on its chicken sandwiches and burgers if customers actually ask for it – blaming the move on the nationwide tomato shortage caused by this year’s hurricanes in Florida.


  • Coca-Cola announced that it has no plans to market its C2 mid-calorie cola, which has been less successful than expected, in the UK. It currently is sold only in the US and Japan.

    Pepsi, which sells its Pepsi Edge mid-calorie cola only in the US and Canada, also has no plans to bring it to the UK.

    Analysts say these decisions suggest the continuing problems being experienced by both brands.

KC's View: