Less than a decade ago, back when the Internet was new, viruses were few and worms were found only in the garden, the prospects for e-mail-delivered coupons seemed bright. Many analysts, in fact, predicted the demise of the free-standing insert in the Sunday paper.

They failed to check with the consumer first, however. The usage of Internet coupons accounts for far less than 1% of coupons issued by consumer products companies in the U.S. NCH Marketing Services Inc. (Deerfield, Ill.) puts the number at 0.2%, while the Promotion Marketing Association (New York) offers a kinder 0.5% usage rate.

NCH has examined the number of Internet coupon introductions and has found growth is subsiding. Growing concerns about fraud and counterfeiting are leading many companies to rethink the concept. As a result, the number of Internet coupons rose only 10% in 2004, after three consecutive years of 50% growth.

Nonetheless, experts believe Internet coupons have potential, especially considering the fact that many companies regard them as an efficient means of targeting consumers. Furthermore, consumers are not exactly embracing traditional paper coupons; manufacturers and retailers spent $275 billion on coupons in 2004 (a 6.6% rise from 2003, according to NCH), but consumers redeemed only 1% ($3.3 billion) of total coupon value that year.

THE IN BOX

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  • Sargento Foods Inc. (Plymouth, Wis.) announced the hiring of Phil Delpierre as director of research and development. Additionally, the company named Dr. Soma Gandikota senior research scientist. Dorene Munoz has been named senior research scientist. Her job responsibilities will include developing value-added cheese products and researching new formulas and technologies.

  • The Coca-Cola Company (Atlanta) announced Henry Chin joined the company as director of food chemistry, toxicology and food science, reporting to Rhona Applebaum, chief regulatory officer.

  • Frutarom USA Inc. (North Bergen, N.J.) has purchased the flavoring extracts business of A.M. Todd Botanical Therapeutics. Frutarom USA Inc. (North Bergen, N.J.) and Intarome Fragrance & Flavor Corporation announced a distribution agreement effective July 1, 2005. Among Frutarom's specialty ingredients now available from Intarome is Origanox.

  • IZZE Beverage Company (Boulder, Colo.) named Peter Burns vice president of sales, overseeing the sales department and the distribution network.

  • Alto Dairy Cooperative (Waupun, Wis.) announced an alliance with Main Street Ingredients (LaCrosse, Wis.), as its marketing partner of dried whey and permeate beginning July 1, 2005. This arrangement will not affect Alto's feed divisions.

  • PURAC (Lincolnshire, Ill.) announced the hiring of Robin Peterson and Lee Galligan as senior market development specialists for the meat and poultry market.

  • Cargill (Minneapolis) acquired Integrated Bakery Resources (IBR), a provider of pre-mix systems, finished foods and related marketing services to North American-based bakers and retailers.

  • The Third International Congress on Vanilla and Vanillin will be held on November 15-16 in the Fiesta America Hotel in Veracruz, Mexico. In addition, pre-meeting workshops will be held on November 14, as well as a post-meeting trip to the vanilla-growing plantations. Contact: Daphna Havkin-Frenkel, daphnahf@aesop. rutgers.edu, 732-932-9711, ext. 349 or Juan Hernandez, hernandezh.juan@inifap.gob.mx or 232-32-45707.

  • Pilgrim's Pride Corporation (Pittsburg, Texas) was honored by Darden Restaurants Inc. (Orlando) with its top supplier award.

  • Loders Croklaan's (Wormerveer, The Netherlands) North American plant has earned a “superior” rating (915 points out of 1000) in a recent food safety audit by the American Institute of Baking (AIB), the highest rating the company has earned to-date from AIB.

  • Thanasi Foods (Boulder, Colo.) named Ron Mills vice president of sales.

  • International Specialty Products Inc. (Wayne, N.J.) has opened a new food applications center in Shanghai, which together with the company's existing food application center in Singapore, will provide technical support to customers throughout the region.

  • International experts in nutrition, genomics, bioinformatics and milk will gather in Napa, Calif., November 10-11, 2005, to address the status of milk-specific genomic research at the second International Symposium on Milk Genomics and Human Health. The event, to be held at the COPIA Center for Wine, Food & the Arts in Napa, is sponsored by the California Dairy Research Foundation (Davis,

    Calif.). Information about the Milk Genomics Consortium can be obtained by e-mailing info@cdrf.org.

  • Balchem Corporation (New Hampton, N.Y.) acquired the encapsulation and agglomeration business of IOI Group, Loders Croklaan USA LLC. Balchem will continue to operate the acquired business primarily out of Channahon, Ill., with certain product manufacturing moving to other Balchem operations.

  • The International Food Additives Council (Atlanta) celebrated its 25th Anniversary during its May meeting in Washington.

  • David Michael & Co. (Philadelphia) announced the third biennial Penn State Ice Cream Short Course Reunion. Sponsored by David Michael, the reunion is held every other year in conjunction with the Worldwide Food Expo. Registration will soon be available on the David Michael & Co. website at www.dmflavors.com.

  • NSF International (Ann Arbor, Mich.) promoted Patrick Pimentel to general manager of NSF's Retail Food Safety Programs.