Food Firms Cook Up Ways to Combat Rare Sales Slump

Fast moving consumer goods? Now not moving so fast:

In the last quarter of 2008, consumer spending on food fell by an inflation-adjusted 3.7% from the previous quarter -- its steepest drop in 62 years, the Commerce Department said. So, food giants are racing to adapt to what they believe is a lasting shift in eating and shopping habits.

Kraft Foods Inc. recently launched an application for Apple's iPhone. Called the iFood Assistant, it allows people to search for recipes and manage their shopping lists. Nestle SA is pushing hard its popular Lean Cuisine frozen entrees, offering five for $10 in some stores. Campbell Soup Co. is creating more sophisticated recipes that mimic restaurant offerings, such as Braised Beef with Shallots made with the company's Swanson beef stock.

Wall Street Journal