Current Events in December 2015

The Agriculture Department’s (USDA) Food Safety and Inspection Service (FSIS) has put the finishing touches on a measure that it says will improve the agency’s ability to determine the source of foodborne illnesses linked to ground beef.

The new rule requires that all makers of raw ground beef products keep adequate records of the source material so that the agency can quickly work with the suppliers to recall contaminated product. This, the FSIS says, will help stop foodborne illness outbreaks sooner when they occur.

When retail stores produce ground beef by mixing product from various sources but fail to keep clear records that would allow investigators to determine which supplier produced the unsafe product, outbreak investigations take longer to get off the ground.

This new requirement complements expedited traceback and traceforward procedures announced in August 2014 that the agency says enhances its ability to quickly and broadly investigate food safety breakdowns in the event of an outbreak connected to ground beef.

“This is a common-sense step that can prevent foodborne illness and increase consumer confidence when they purchase ground beef,” said Deputy Under Secretary for Food Safety Al Almanza. “In the event that unsafe product does make it into commerce, these new procedures will give us the information we need to act much more effectively to keep families across the country safe.”

New record-keeping regulations

Under the new final rule, the FSIS is amending its record-keeping regulations to require that all official establishments and retail stores that grind raw beef products maintain the following records:

• the establishment numbers of establishments supplying material used to prepare each lot of raw ground beef product;
• all supplier lot numbers and production dates;
• the names of the supplied materials, including beef components and any materials carried over from one production lot to the next;
• the date and time each lot of raw ground beef product is produced; and
• the date and time when grinding equipment and other related food-contact surfaces are cleaned and sanitized.

These requirements also apply to raw beef products that are ground at an individual customer’s request when new source materials are used.

“The traceback mechanism provided for in this final rule will facilitate recall efforts that could stop outbreaks and prevent additional foodborne illnesses,” said Deputy Under Secretary for Food Safety Brian Ronholm.

Not much Christmas cheer in the home construction industry this month.

The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), a gauge of builder confidence in the market for newly constructed single-family homes, dropped one point in December -- to 61.

“For the past seven months, builder confidence levels have averaged in the low 60s, which is in line with a gradual, consistent recovery,” said NAHB Chief Economist David Crowe. “With job creation, economic growth and growing household formations, we anticipate the housing market to continue to pick up traction as we head into 2016.”

The survey

The HMI, which is derived from a monthly survey that NAHB conducts, measures builder perceptions of current single-family home sales and sales expectations for the next six months as "good," "fair" or "poor."

The survey also asks builders to rate traffic of prospective buyers as "high to very high," "average," or "low to very low." Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

All three HMI components posted modest losses in December. The index measuring sales expectations in the next six months fell two points to 67, the component gauging current sales conditions was down one point to 66, and the index charting buyer traffic dropped two points to 46.

Looking at the three-month moving averages for regional HMI scores, the West increased three points to 76 while the Northeast rose a point to 50. The Midwest, meanwhile, dropped two points to 58 and the South fell one point to 64.

“Overall, builders are optimistic about the housing market,” noted NAHB Chairman Tom Woods, “ although they are reporting concerns with the high price of lots and labor.”

If you're looking for signs of inflation, good luck.

The Bureau of Labor Statistics (BLS) reports that the Consumer Price Index (CPI) was unchanged last month, thanks to declines in the cost of food and energy. For the last 12 months, prices are up a modest 0.5% before seasonal adjustment.

Food costs

Food prices were down 0.1%, marking the first decline since March. The food at home category dropped 0.3%, with every major grocery store food group except fruits and vegetables (+0.6%) falling. Prices for meats, poultry, fish, and eggs fell for a third straight month (-0.6%). Also posting declines were the costs for dairy and related products (-0.6%), cereal & bakery products, and nonalcoholic beverages (-0.5%). Other food at home was down 0.3%.

Over the past 12 months, food at home has increased just 0.3%, the smallest 12-month increase since the period ending June 2010. The food away from home category was up 0.2% and has jumped 2.7% over the last 12 months.

Energy

The cost of energy fell 1.3% in November following a 0.3% increase the month before. The decline was led by gasoline prices, which were down 2.4% after rising 0.4% percent in October. Also declining were natural gas (-1.9%) and fuel oil (-1.3). Electricity costs, conversely, rose 0.3% on top of an advance of 0.4% in October.

Core inflation

The “core” rate of inflation, which strips out the volatile food and energy categories, rose 0.2% in November, the same as in September and October. Fueling the increase were prices for shelter, medical care, airline fares, new vehicles, and tobacco. Cost for recreation, apparel, household furnishings and operations, and used cars and trucks all declined.

Over the past 12 months, the core rate of inflation is up 2.0%, with about two-thirds of that due to rising housing costs (+3.2%). Also on the rise during that period were medical care (+2.9%), education, motor vehicle insurance, tobacco, alcoholic beverages, personal care, recreation, and new vehicles. The prices of apparel, airline fares, communication, household furnishings & operations, and used cars & trucks posted declines.

The complete CPI report is available on the BLS website.

In the midst of the peak traveling season, the Department of Transportation (DOT) has some good news for those who choose to go by air.

The nation' airlines posted an on-time arrival rate of 87.0% in October -- a surge of 7% from the same month in 2014 and up 0.5% from the previous month. According to the DOT's Air Travel Consumer Report, that's the third highest of the 250 months with comparable records.

That's not the only thing positive about October. The carriers canceled just 0.5% of their scheduled domestic flights in October, versus the 1.1% cancellation rate posted in October 2014. That's the second lowest of the 250 months with comparable records; only September 2015’s 0.4% rate was lower.

And, if that's not enough, there was only one tarmac delay of more than three hours on a domestic flight and one tarmac delay of more than four hours on an international flight. The DOT is investigating those delays.

The consumer report also includes data on chronically delayed flights, the causes of flight delays, and statistics on mishandled baggage reports filed by consumers. Also covered are aviation service complaints regarding a range of issues such as flight problems, baggage, reservations and ticketing, refunds, consumer services, disability, and discrimination.

The consumer report also includes reports of incidents involving the loss, death, or injury of animals traveling by air, as required to be filed by U.S. carriers.

The complete report is available on the DOT website.

Reesna Inc., of Canoga Park, Calif., is recalling all lots of Fuel Up Plus and Fuel Up High Octane dietary supplement sexual enhancers for men.

The products contain containing undeclared hydroxythiohomosildenafil, an analogue of sildenafil. Sildenafil is an FDA-approved drug for the treatment of male Erectile Dysfunction (ED), making Fuel Up an unapproved drug.

Sildenafil may interact with nitrates found in some prescription drugs such as nitroglycerin and may lower blood pressure to dangerous levels. Consumers with diabetes, high blood pressure, high cholesterol, or heart disease often take nitrates.

No illnesses or injuries have been reported to the company to date in connection with this product.

The product was sold to distributors and retail stores nationwide and via Internet sales.

Customers should not consume Fuel Up and should return it immediately to the place of purchase for a full refund.

Consumers with questions may contact Romy Navarro at 818-576-0576, Monday through Friday, 9:00 am to 5:00 pm, (PST).

Stella & Chewy's is recalling four of its products sold in the U.S. and Canada.

The products may contain Listeria monocytogenes.

The recall affects a total of 990 cases (964 cases in the U.S. and 26 cases in Canada), and was prompted by a positive test confirming Listeria monocytogenes in Stella's Super Beef Dinner Morsels for Dogs 8.5 oz. frozen bags, lot #165-15, "Use by 6-25-2016,"

The following products from Lot # 165-15 are being recalled:

In addition, the following products, which have not tested positive for Listeria monocytogenes, are being recalled:

The full product recall list and additional information may be found at: http://www.stellaandchewys.com/stella-chewys-recall-notice/.

Customers who purchased the recalled products should dispose of them or return them to the place of purchase for a full refund.

What do you think of the presidential candidates and the issues they've been raising? They may have a better idea of your thoughts than you do thanks to research spanning tens of millions of Facebook users, harvested largely without their knowledge or permission.

Sen. Ted Cruz (R-Texas) has been closing in on front-runner Donald Trump in recent weeks and a big part of the reason may be the research commissioned for him by a billionaire benefactor, according to The Guardian and an earlier report by Politico.

Trump’s presidential campaign is using psychological data assembled, sliced, and diced by paid researchers at Cambridge University. These professionals have been gathering detailed psychological profiles of the U.S. electorate using a massive pool of mainly unwitting Facebook users. 

The Cambridge researchers are affiliated with Cambridge Analytica, which claims to collect "up to 5,000 data points on over 220 million Americans, and use more than 100 data variables to model target audience groups and predict the behavior of like-minded people."

The firm — owned in part by reclusive hedge fund magnate and leading Republican donor Robert Mercer — is using so-called “psychographic profiles” of U.S. citizens to help Cruz win votes, despite concerns about the ethical implications of the practice. 

Cruz is not the first candidate to benefit from this relatively new stealth weapon. The Obama presidential campaigns used similar research techniques and other candidates may be doing the same this year. Republican Ben Carson is also said to be a client of the firm, though on a much smaller scale than Cruz. 

Facebook Likes

The Cambridge researchers compile psychological data based on a treasure trove of Facebook “likes,” allowing them to match individuals’ traits with existing voter datasets -- identifying gun owners, for example.

The Guardian reported that its analysis of Federal Election Commission (FEC) filings shows Cruz’s campaign has paid Cambridge Analytica at least $750,000 this year. The company has received even more from Super Pacs to which Mercer and others have contributed. 

The Guardian reported that in an interview, Cruz said his approach is consciously modeled on Obama's -- "a data-driven, grassroots-driven campaign – and it is a reason why our campaign is steadily gathering strength.”

Is the Cambridge Analytica data the reason Cruz has lately been uniting factions within the GOP beyond his evaneglical and Tea Party base? Does it matter? It's up to voters to decide.

The post-millennial generation Z, recently dubbed the “Founders,” has never known a world without smartphones. Many parents of teens can attest to the fact that their children are constantly tethered to their phones, or more specifically, to the social media outlets within them. The word “addiction” comes to mind, but are teens actually addicted to social media?

The term “social media addiction” is tossed around frequently, but Mark Fabbri, Director of the Psychology degree program at South University, cautions against using the term “addiction.”

“Addiction is a word that should not be used lightly to describe a set of behaviors,” he said, adding that the word should only be used in relation to a compulsion to consume something or engage in a set of behaviors to the point that it significantly interferes with the person’s life.

Does it exist?

In contrast, however, are those who believe social media addiction does exist. Neil Vidyarthi, managing editor of Social Times, says he personally believes social media can be addictive, using Facebook as an example.

“There’s a voyeuristic tendency none of us realized would be so high,” says Vidyarthi. “That’s why there are 500 million users spying on one another. We’re all interested in what others are doing.”

And the ability to “spy” seems to be of particularly high value to the Founders generation. This is the first generation that has been able to assuage their teenage insecurities and gain validation through the use of social media.

Peer affirmation

Clinical psychologist Marion Underwood believes teens are addicted to the peer connection and affirmation they’re able to get through social media.

“To know what each other are doing, where they stand, to know how many people like what they posted, to know how many people followed them today and unfollowed them,” said Underwood, “That I think is highly addictive.”

In the CNN Special Report, “#Being 13,” a group of teens offers up glimpses into their social media-addled minds. Thirteen-year old Gia said, "I would rather not eat for a week than get my phone taken away. It's really bad. I literally feel like I'm going to die.”

Quotes like these certainly lend credence to the assertion that social media addiction is becoming — as the kids say — “a thing.”

Addiction vs. Overuse

Still, Fabbri cautions that there is a big difference between addiction and overuse of social media. “Any action can become addictive if it has a negative, significant impact on a person’s life, but I would caution using the term addiction outside its intended definition," says Fabbri. "A person can spend too much time in social networks but still are able to function adequately in life.”

Adam Singer, social media practice director for LEWIS PR points out that it may just be that social media channels are becoming the predominant form of communication, especially amongst younger generations.

“When the phone was the predominant form of communication, did we say that teens had phone addiction? Probably not,” he says. “This is just the normal mode of communication for them.”

At the end of October, we reported that New York Attorney General Eric Schneiderman was going to be investigating three of his state’s largest broadband providers to see if consumers were getting what they paid for when it came to Internet speeds. The investigation is ongoing, but now the state is asking consumers for help.

In order to see whether or not promised Internet speeds are up to par, the state is asking consumers to test their connections and send in their results. This will allow the state to gather vital missing data that will allow their investigation to move forward.

Filling in the gaps

Schneiderman and his office are asking volunteers for help because the available FCC test information that his team has received may not tell the whole story. In the FCC report, connections are measured only by how quickly data moves across a user’s ISP network – a distance referred to as the “last mile.”

This is problematic because it leaves out information about how the speed is measured across other interconnected networks. Some have asserted that Internet speeds suffer during this process depending on whether or not broadband providers have connected with long-haul Internet traffic carriers.

By having volunteers send in their reports, Schneiderman and his office hope that the information that they’re missing can be filled in so that they can move forward.

Submitting information safely

In order to test their connections and send in a report, consumers can visit a third-party website called InternetHealthTest.org. All a visitor of the site needs to do is press “Start Test” to begin generating a report.

After a report has been generated, consumers can visit this site to take a screen shot of their results. The site provides a step-by-step process on how to submit a report, including information on how to take a screen shot and what to do if you have a Mac versus a PC.

The advantage of collecting information this way is that it protects the privacy of those who are submitting information. The site does not require any personal information, such as browser history or an IP address – though the attached form does ask for a name and zip code.

Schneiderman is hopeful that these tests will help New Yorkers get the Internet speeds they deserve. “New Yorkers should get the Internet speeds they pay for. Too many of us may be paying for one thing, and getting another. . . By conducting these tests, consumers can uncover whether they are receiving the Internet speeds they have paid for,” he said. 

World oil prices are in free-fall once again, hitting levels not seen since the financial crisis of 2008.

Back then, it was fear that the economy was collapsing that drove oil lower. Today, it's the fact that the world has more oil than it knows what to do with.

Reuters reports Brent crude plunged 4% to below $36.40 a barrel for the first time since December 2008. For Brent, that's just 14 cents above the post-financial crisis lows.

Falling oil prices have had a similar effect on U.S. retail gasoline prices, pulling them still lower. In fact, AAA's Fuel Gauge Survey shows the national average price of gasoline is now just a penny above the benchmark $2 a gallon level.

At this rate, that threshold will be crossed before the end of the week. As of Monday, 26 of the 50 states had average gasoline prices below the $2 a gallon mark.

Really cheap gas

South Carolina has the cheapest gas in the nation, at an average price of $1.78 a gallon. Kansas and Missouri have average prices of $1.79 a gallon.

It's a different story in California, where the average price per gallon is $2.65. Only Hawaii is more expensive, at $2.74.

During the winter months, gasoline demand usually goes down, and prices at the pump tend to move lower as a result. AAA notes that the fall maintenance season at refineries was busier than normal, but now the U.S. Energy Information Administration is reporting that refinery production is outpacing both 2014 and current demand.

That suggests that, at worst, gasoline prices should stabilize, if not go down more before the end of the year.

In recent years, gasoline prices have risen in late winter and early spring as refineries once again perform maintenance and begin switching over to more expensive summer blend fuels.

The housing story of 2015 was rising rents. It could be much the same in 2016, according to a report by the Harvard Joint Center for Housing Studies.

It's been a common refrain in the aftermath of the financial crisis. With fewer people able to buy homes, there has been more competition for rental housing.

Even with apartment construction accelerating at its fastest pace in nearly three decades, the rental vacancy rate this year is at its lowest point since 1985. Rents are rising at an inflation-adjusted rate of 3.5% a year.

As a result, the Harvard researchers found the number of renters paying more than 30% of their incomes on rent is at a record level and there are no indications that number will decline in 2016.

Moderate income households also affected

It's true that lower-income households are most likely to experience this squeeze, but the report finds that rental cost burdens now affect even moderate-income renters earning as much as $45,000 per year.

“Record-setting demand for rental housing due to demographic trends, the residual consequences of the foreclosure crisis, and an increased appreciation of the benefits of being a renter has led to strong growth in the supply of rental housing over the past decade both through new construction and the conversion of formerly owner-occupied homes to rentals,” said Chris Herbert, Managing Director of the Joint Center For Housing Studies at Harvard.

Herbert says the housing market has been unable to meet the need for housing that is within the financial reach of many families and individuals with lower incomes. In large part, it is a supply and demand issue.

In the wake of the financial crisis much of the nation's homebuilding activity came to a screeching halt. Construction is still not back to pre-crisis levels, yet there has been almost no let up in household formation.

Renters finding it harder to buy

The impact is being particularly felt in the rental market, where renters often don't have the option of buying a home. Rising rents and stagnant incomes, meanwhile, make it difficult to save for a down payment.

Earlier this year a report by real estate marketplace Zillow found renting to be “less affordable than ever before.” In a comparison with home purchases, Zillow reported people who buy homes should expect to pay 15.1% of their income towards mortgage payments, which is still less than what they spent historically. From 1985 through 2000, homeowners spent about 21.3% of their monthly income on mortgage payments.

But if you are renting, Zillow said you should expect to put 30.2% of your monthly income toward rent – the highest percentage on record. Before the real estate bubble and bust, U.S. renters were spending, on average, about 24.4% of their incomes on rent.

The Harvard researchers worry about the consequences. They note that in 2014, lower-income households who paid more than half their incomes on rent spent 38% less on food, 55% less on healthcare, and 45% less on retirement savings than those living in affordable housing.  

Bravo Pet Foods of Manchester, Conn., is recalling a select lot of Bravo Chicken Blend diet for dogs & cats with a best used by date of 11/13/16.

The products may be contaminated with Salmonella

Three additional items that did not test positive for Salmonella, but were manufactured on the same day, are also being recalled.

Pets with Salmonella infections may be lethargic and have diarrhea or bloody diarrhea, fever, and vomiting. Some will have only decreased appetite, fever and abdominal pain. Infected but otherwise healthy pets can be carriers and infect other animals or humans.

The company has received no reports to date of illness in either people or animals associated with these products.

The products were sold to distributors, retail stores, Internet retailers, and directly to consumers in the U.S.

The following product is being recalled because of the possible presence of Salmonella:

The following products DID NOT test positive for Salmonella , but are being recalled as they manufactured on the same day as the above product:

The recalled product should not be sold or fed to pets, but disposed of in a safe manner.

Customers should return to the store where they purchased the product and submit the Bravo Recall Claim Form available on the Bravo website

http://www.bravopetfoods.com/consumerrecall.html for a full refund or store credit.

Consumers with questions may contact Bravo toll free at (866) 922-9222 Monday through Friday, 9:00 am – 4:00 pm (EST) on online at at http://www.bravopetfoods.com/.

Nissan North America is recalling 33,880 model year 2015 Rogues manufactured February 10, 2015, to May 13, 2015.

Due to a problem with the shift selector knob, it may be possible to shift out of the "Park" position without depressing the brake pedal. As such, these vehicles fail to conform to the requirements of Federal Motor Vehicle Safety Standard 114, "Theft Protection and Rollaway Prevention."

If the shift selector can be moved out of the "Park" position while the brake pedal is not depressed, the vehicle may unexpectedly roll, increasing the risk of a crash.

Nissan will notify owners, and dealers will inspect and replace the shift selector knob, as necessary, free of charge. The recall is expected to begin in December 2015.

Owners may contact Nissan customer service at 1-800-647-7261.

Many daily fantasy sports (DFS) players who live in New York were able to field teams over the weekend, as an appellate court granted an emergency injunction, staying a judge's order from earlier in the day that appeared to signal the end of these games.

Confused? You're hardly to blame. With so much money at stake, the DFS enterprises of Fan Duel and DraftKings will pull out all the legal stops to keep the games alive. This high-stakes game is far from over.

The DFS games, incredibly popular nationwide, were declared illegal gambling by New York Attorney General Eric Schneiderman, who filed suit to enforce a cease and desist order. Early in the day, it appeared that he had won.

New York Supreme Court Justice Manuel J. Mendez granted Schneiderman's motion to enjoin DraftKings and FanDuel “from doing business in the State of New York, accepting entry fees, wagers or bets from New York consumers in regards to any competition, game or contest run on” their websites.

Initial victory

"We are pleased with the decision, consistent with our view that DraftKings and FanDuel are operating illegal gambling operations in clear violation of New York law,” Schneiderman said in the aftermath of Mendez's decision. I have said from the beginning that my job is to enforce the law, and that is what happened today."

But the celebration might have been premature. FanDuel's legal team raced to an appeals court, which suspended Schneiderman's victory, at least for the time being.

“On behalf of our users in New York, we are pleased to report that this afternoon, an appellate court in New York granted our request for an emergency stay of the injunction issued this morning,” FanDuel said in a statement Friday. Based on the appellate court’s ruling, New Yorkers can continue to enjoy FanDuel contests while the legal process moves forward.”

New Yorkers back in the game, sort of

And be assured, this matter will be throughly hashed out in court. In the meantime, players who have money deposited in FanDuel can continue to play games. However, the company said it is not accepting new deposits of funds until a final decision on the legality of the enterprise is reached.

“The Appeals Court decision is not permanent,” FanDuel pointed out. “This decision will be reviewed by a panel of judges early next month.”

Nevada has also officially determined that both FanDuel and DraftKings are running unlicensed gambling operations, but Nevada has far fewer players than New York. The loss of revenue from the Empire State would hurt both companies, should Schneiderman's ban ultimately prevail.

Mid November action

Schneiderman went to court against both DraftKings and FanDuel in mid November, claiming the two companies constitute illegal gambling under state law.

“Under New York law, a wager constitutes gambling when it depends on either a (1) 'future contingent event not under [the bettor’s] control or influence' or (2) 'contest of chance.' So-called Daily Fantasy Sports (“DFS”) wagers fit squarely in both these definitions,” Schneiderman wrote. “DFS is nothing more than a rebranding of sports betting. It is plainly illegal.”

Schneiderman accused both companies of winking at the law, maintaining in public that they run games of skill, but privately evoking the profits of gambling to investors.

Donald Trump's brash and divisive presidential campaign may or may not win him a term in the most prized Washington real estate, but, win or lose, it could have an effect on his global brand.

Unlike Bill Gates or Warren Buffett, entrepreneurs of a more modest bent, Trump puts his name on everything from office buildings to casinos to apartment complexes. He even owns a large winery in Virginia which produces -- what else? -- Trump wine.

As Trump's comments about Muslims, Mexicans, and other groups have become harsher, his negative poll numbers have risen and the question now being asked in marketing circles is whether Trump's campaign will seriously besmirch the brand he has built over the years. The answer seems to be, it's too soon to tell.

For one thing, Trump's empire is privately held so revenue figures aren't available. For another, real estate deals tend to be long-term -- leases last for years and no company or individual is likely to break a lease just because they suddenly despise the name plastered atop their building.

But what about Trump's hotels, golf courses, and casinos? It's no big deal for consumers to switch hotel reservations or tee off at the course down the road. 

Muddied the brand

Long-term, Trump's months in the spotlight may take a toll. Marketing experts, quoted today by Advertising Age, say he has muddied his brand because it was founded on one platform and now represents another.

Brands and people who linked themselves to Trump before the current campaign thought they were signing up for luxury, not a political campaign, said Stagwell Group founder Mark Penn, who has been a senior adviser to politicians including the Clintons and U.K. Prime Minister Tony Blair.

One marketing expert said it's likely that brands and individuals who have contracts with Trump are leafing through those contracts, looking for the expiration date. The impact could be especially harsh in the retail and entertainment sectors, where companies are reluctant to be seen as taking controversial political stands.

NBC lost no time distancing itself from Trump when he made insulting comments about Mexican immigrants, calling them "killers and rapists." It refused to air Trump's Miss USA pageant, which wound up being broadcast on an obscure channel with only a fraction of the NBC audience. 

Over the summer, Macy's yanked Trump brand merchandise from its stores after his anti-Mexican comments. 

Twirled itself in knots

Major brands almost without exception avoid like the plague any suggestion that they are anti-gay, anti-immigrant, anti-Muslim, etc., and quickly distance themselves from any slips of the tongue. 

Remember just a few years ago when the chairman of Barilla pasta said he would never use a gay family in a commercial? Barilla twirled itself in knots as it backtracked, apologized, and quickly put together an advisory board that inluded gay activists and ethnic minorities. Chairman Guido Barilla was not heard from again.

In the short term, most experts agree, it is Trump's hotels and casinos and his retail products such as lamps and mirrors that are likely to suffer from a consumer backlash.

Trump's wine business could also suffer a hangover. The wine store clerk sneered and made a rude comment under his breath yesterday when I bought a bottle of Trump Meritage. When I posted a photo of it on Facebook, the response was instant.

"You are drinking that crap?" one friend asked incredulously. "I would never drink it, just on principle."

"If he (Trump) only opened his mouth to drink wine, the world would be a better place," one commenter sniped.

A new coffee alternative has hit the market, and it makes big promises. Science of Living (SOL) Natural Foods has introduced their Macaccino: a beverage made from a hand-roasted mix of maca root and other organic coffee ingredients.

It uses its dense nutritional makeup to out-perform coffee, providing the drinker with a feeling of vitality and alertness without the shaky feeling, crashes, and addiction associated with caffeine.

Macaccino boasts a clean, more genuine energy that lasts much longer than other highly-caffeinated beverages. It’s tasty, too, with a flavor reminiscent of a blend of coffee and dark chocolate.

What is maca?

So what is this magical ingredient? Maca root, the key ingredient in Macaccino, has long been used as a supplement for athletes, as a holistic health aid in South America and as a healthy part of every night’s dinner for residents of Peru. The superfood has been reported to naturally increase energy, mood, and immunity.

"Maca is probably the best­ kept secret of today's mainstream superfoods," stated Aaron Glassman, owner of SOL Natural Food. "Our goal, as always, is to help people live healthier, more sustainable lives, and this product does both in a powerful—and delicious—way."

Macacchino is a smart alternative to those who drink coffee as a daily pick-me-up, said Glassman, because it has none of the addictive qualities of caffeine (making it safe for adults and children alike).

Good for the planet

The beverage not only promises to be kinder to your body, but kinder to the earth. 

Macacchino produces very little waste in its production, and leaves a much smaller footprint on the planet than coffee. Harvested by local Peruvian farmers, the maca-root is sustainably-sourced and leaves behind no deforestation.

Water conservation is also considered in the production process. One gallon of coffee requires a staggering 1,056 gallons of water from field to cup; the same amount of Macaccino uses a mere four gallons.

The energy-boosting beverage can be served hot or over ice -- and since no brewing or grinding is required (just add hot water), Macaccino blends can be ready in an instant.

There may come a day when every child born in the U.S. is issued a smartphone as he or she leaves the hospital. Otherwise, how are they going to be able to cope?

Deloitte garnered some attention for its newly released 2015 Global Mobile Consumer Survey with this factoid: if you added up all the times all U.S. consumers look at their smartphones in a single day, you'd get a number around 8 billion.

Increasingly, we're looking at these devices when we are also engaged in other activity – like driving, working, talking to a friend, shopping, or watching television.

In its analysis of the data, Deloitte researchers conclude that consumers are more distracted than ever before. In fact, this year's survey results show unprecedented levels of multitasking while interacting with mobile devices.

Texting

The most common use of a smartphone is still sending and receiving text messages. Upon waking, 17% of smartphone owners say they check their phones before doing anything else.

Before turning in for the night, 13% of smartphone users say they look at their phone one last time.

According to Deloitte, consumers have no intention of ever switching off their smartphones.

Then again, they might if something else came along.

Replacing smartphones with AI

In its Hot Consumer Trends of 2016, Ericsson Consumerlab holds out the prospect that artificial intelligence (AI) might completely replace smartphones within the next five years.

The report notes that the screen age began in the 1950s, with television. Then computer screens were added to the mix. Now smartphones are a constant fixture.

But screens are an old technology. Consumers constantly complain about the small screens on their devices and the speed at which the batteries run down.

“The contradictory demands for power-draining larger screens and a longer battery life however, highlight a need for better solutions, such as the use of intelligent assistants to reduce the need to always touch a screen,” the authors write. “In fact, 85% of smartphone users think wearable electronic assistants will be commonplace within 5 years.”

Bring it on

In fact, smartphone users appear to be all in for a switch to AI capabilities. Half of those surveyed would like to be able to talk to their household appliances as though they were people.

They would also like to see AI take over many common activities, such as searching the net, getting travel directions, and as personal assistants.

What isn't exactly clear is what such a device or interface would look like. But you can be sure that somewhere, engineers are working on it.

As retailers race toward Christmas Day, one of the major trends of the current shopping season has been the accelerated movement of consumers toward online purchases.

Black Friday, always a huge day for retailers who roll out door-buster bargains, saw more in-store sales shift to online last month. Adobe reported online sales for Cyber Monday, thought to be diminishing in the grand scheme of holiday sales promotions, set a one-day sales record.

But a survey of consumers by iVend Retail, finds it's much too early to start writing off the stores. Consumers, it seems, like them and think they have a number of advantages.

Instant gratification

“The instant gratification of receiving a product immediately and not having to pay for shipping,” the authors note. “Being able to touch, try on or examine a product up close to be sure it is exactly what is needed or desired. Knowledgeable store associates who can help shoppers find the right item and add a personal touch. For each of these reasons, the store is – and will be for the foreseeable future – where retailers generate the most profit.”

But the report suggests there are greater challenges for brick-and-mortal retailers -- challenges beyond the higher cost of overhead. In the survey, both U.S. and Canadian consumers rated the online shopping experience easier and more problem-free than shopping in a store.

Over the years, online retailers have used technology to personalize service and make transactions smoother, and may be largely responsible for the surge in online sales.

However, there is some good news for store operators. Younger consumers appear to favor the in-store shopping experience more than their parents' generation. In fact, it is consumers over the age of 55 who now seem to prefer online shopping to trekking to the mall. Stores that can entice these younger shoppers now may have loyal customers for years to come.

Make stores more like online

Based on the survey, the authors have some suggestions for store operators. One is to greet consumers when they enter the store and offer to send personalized loyalty offers to their phones, borrowing a page from online retailers' playbook.

“When shopping online, consumers are used to receiving exclusive promotional offers as they shop more frequently with their favorite brands,” the authors write. “Why should the store be any different?”

New technologies allow brick-and-mortar retailers to send targeted offers to entice customers to spend more when they are in the store. Reinforcing the store with online capabilities satisfies the customer’s expectations, which are being driven and shaped by their online experiences.

In other words, making the in-store shopping experience a bit more like the online experience just might extend a store's relevance and longevity.

Retail sales were up a tiny 0.2%, or $448.1 billion, in November, according to Commerce Department figures that were adjusted for seasonal variation and holiday and trading-day differences, but not for price changes.

The increase lifted sales 1.4% above the same month a year ago.

Contributing to the increase -- the second in as many months -- were gains by grocery stores, clothing and accessories stores, and sporting goods, hobby, book & music stores (+ 0.8% each). Food services & drinking places also advanced by 0.7%.

The November increase was limited by declines at gas stations (-0.8%), auto & other motor vehicle dealers (-0.6%), and furniture and home furnishing stores (-0.3%).

Core retail sales, which strip out auto, gasoline station, and building material & supplies sales, jumped 0.6% following an October increase of 0.3%.

The complete report is available on the Commerce Department website.

Producer prices

The Producer Price Index (PPI) for final demand, more commonly known as wholesale prices, posted a 0.3% gain last month after falling 0.4% and 0.5% in October and September, respectively.

Figures released by the Bureau of Labor Statistics show the PPI is down 1.1% for the 12 months ended in November -- the tenth consecutive 12-month decline.

Final demand services led the advance with a gain of 0.5%, thanks largely to an increase of 6.2% in apparel, jewelry, footwear, and accessories retailing. On the other hand, prices for securities brokerage, dealing, investment advice, and related services fell 3.9%.

Prices for final demand goods were down 0.1%, with over 90% due to a 0.6% drop in the cost of energy, with gasoline prices down 1.3%. Prices for residential natural gas, electric power carbon steel scrap, and corn also moved lower. Conversely, prices for fresh fruits and melons jumped 11.6%, with the cost of eggs for fresh use, jet fuel, and pharmaceutical preparations also increasing.

The core PPI, which excludes the volatile food and energy categories, edged down 0.1% but is up 0.5% over the last 12 months.

The full report may be found on the Labor Department website.