Monday, January 4, 2016

Federal Government Sues Volkswagen Over Emissions Evasion

Carsten Koall / Getty Images

The Department of Justice today sued Volkswagen in federal court in Detroit over the car maker's installation of software to evade U.S. emissions standards.

The DOJ said in a statement the suit "alleges that nearly 600,000 diesel engine vehicles had illegal defeat devices installed that impair their emission control systems and cause emissions to exceed EPA’s standards, resulting in harmful air pollution." The department is asking the car maker to stop using the devices, to mitigate excess emissions, and to pay civil penalties.

The allegations largely match up with what environmental regulators have accused Volkswagen of starting in September of last year, when the Environmental Protection Agency alleged that Volkswagen had installed devices that circumvent emissions standards for nitrogen oxides in its cars with two-liter engines from 2009 to 2015. Subsequently, the EPA alleged that Volkswagen had installed devices to evade U.S. emission standards in cars with larger engines and Porsches. In November, Volkswagen admitted to installing the devices "in all of its U.S. 3.0 liter diesel models since 2009."

The EPA said that the vehicles emit 40 times the amount of nitrogen oxide as prevailing clean air standards allow.

U.S. Department of Justice / Via justice.gov


“With today’s filing, we take an important step to protect public health by seeking to hold Volkswagen accountable for any unlawful air pollution, setting us on a path to resolution,” Cynthia Giles, an EPA official, said in a statement.

The complaint covers almost 500,000 two-liter engine cars sold from the 2009 model year onward, and 85,000 three-liter engine cars.

In December, Volkswagen hired Kenneth Feinberg, the lawyer famous for overseeing the 9/11 victim compensation process, come up with a program for Volkswagen buyers.

Volkswagen said in a statement that the claims in the lawsuit cover the same vehicles that were covered by the EPA's violation notices against Volkswagen in September and November.

"Volkswagen will continue to work cooperatively with the EPA on developing remedies to bring the TDI vehicles into full compliance with regulations as soon as possible," the company's statement said. "We will continue to cooperate with all government agencies investigating these matters."

The complaint specifically accuses Volkswagen of violating the Clean Air Act by selling cars whose performance and design didn't match up with what it had told the EPA and the California Air Resources Board when getting them certified. It also says investigation into VW’s emissions "were impeded and obstructed by material omissions and misleading information provided by VW entities."

“Today’s complaint is the first stage in bringing Volkswagen to justice for failing to disclose the defeat device while seeking certification for its diesel vehicles from EPA’s Office of Transportation and Air Quality in Ann Arbor, Michigan,” U.S. Attorney Barbara McQaude said in a statement.

Volkswagen is already the defendant is several class action suits. The company did not immediately respond to a request for comment.

Volkwagen's Nightmare Is About To Get Worse: Here Come The Class Action Lawyers

Volkswagen Diesels Will Not Be Fixed Until 2016, U.S. Chief Says

The Price Of Second-Hand Volkswagen Diesels Has Fallen 13% In Two Weeks


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Global Stocks Slide After Chinese Stocks Fall

Str / AFP / Getty Images


A new year for global stock markets has seen the reemergence of an old pattern, with huge declines in the Chinese stock markets echoing all over the world.

After the CSI 300 — a composite of the stock exchanges in Shenzen and Shanghai — fell by more than 300 points by the early afternoon, the Chinese stock markets closed thanks to rules to prevent fast, dramatic changes in stock prices.

But that didn't stop stocks from sliding all over the rest of the world. The Nikkei 225, a Japanese stock index, fell more than 3%, while the Stoxx 600, a European index, is down over 2%. And just like in past stock seizures that started in the East, it has lapped up in the United States.

The Dow Jones Industrial Average opened down just over 350 points, about 2%, while the S&P 500 and the NASDAQ composite both opened down around 2% as well.

According to data from Bloomberg, today was was the 14th worst day for the CSI 300. The last time the Chinese index fell more than 7%, on August, 25, the S&P 500 closed down 1.4%.

Markets were battered by both weak data on the Chinese manufacturing sector — which Nomura described as "pointing to economic contraction." Oil prices also ticked up following diplomatic tension between Saudi Arabia and Iran.


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Starbucks Adds Latte Macchiato To Growing Menu Of Espresso Drinks

Venessa Wong / BuzzFeed News

Starbucks — the Seattle cafe chain that has introduced Americans to array of espresso and coffee concoctions over the years — is brewing a new combination of espresso and milk. Tomorrow, the company launches the "Latte Macchiato" as part of its espresso lineup, which already includes lattes, mochas, caramel macchiatos, cappuccinos, americanos, and plain old espresso.

"The Latte Macchiato is just two ingredients – espresso and milk – combining perfectly aerated whole milk free-poured, creating a meringue like foam, and then topped with two full, roasty espresso shots which are slowly poured through the foam 'marking' the milk with a signature espresso dot," reads a description from a Starbucks spokesperson.

It is also being added to Starbucks menus in Canada, and most markets in Latin America (Mexico, El Salvador, Guatemala, Costa Rica, Panama, Puerto Rico, Aruba, Curacao, Bahamas and Colombia).

The Latte Macchiato is more espresso-y than a Flat White, but less so than an Espresso Macchiato. Here's what they look like IRL at Starbucks.

The Latte Macchiato is more espresso-y than a Flat White, but less so than an Espresso Macchiato. Here's what they look like IRL at Starbucks.

Venessa Wong / BuzzFeed News

Starbucks can be fanciful about what really is just another variation of espresso with milk. Yet, perhaps as pasta eaters long ago accepted that spaghetti (which technically has a diameter between 0.06 and 0.11 inches, according to the U.S. FDA) and vermicelli (thinner than 0.06 inches) are distinct enough to warrant different names, coffee drinkers will also embrace espresso macchiatos, latte macchiatos, and flat whites as distinct beverages as well.

For instance, while Flat White and Latte Macchiato both contain two shots of espresso, the Flat White uses smaller ristretto shots (about 1.15 fl oz in total) while the Latte Macchiato uses larger, standard shots (1.5 fl oz) you'd get in, say a latte, creating a stronger espresso flavor, explained Starbucks Coffee Master Angus Maxwell.

Yes, it's all varying shades of coffee, but it's worth...a shot. The Flat White, after all, did very well in the U.S. after it launched in early 2015. "I didn’t think it was a big idea. I was wrong," said Starbucks CEO Howard Schultz at a conference last spring. "Flat White has been a runaway of success for the company."

Blended drinks and espresso drinks contributed significantly to the chain's growth last year, with new drinks (like Flat White, Frappuccino minis and cold) adding 1 point of comparable sales growth during the fiscal third quarter.

As competing chains focus on their espresso offerings — Dunkin' Donuts launched its own take on the macchiato in the fall, and high-end cafes like Blue Bottle are gaining traction — Starbucks has little choice but to enhance its own caffeinated offerings if it is to dominate the growing, but crowded, world of premium coffee.

Starbucks




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Sunday, January 3, 2016

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Patti LaBelle Launches Two New Cakes At Walmart, "Patti Cakes"

Walmart

Grammy-winning singer Patti LaBelle turned the dessert world as upside down as a pineapple bundt cake when she debuted her Sweet Potato Pies at Walmart this past holiday season.

The pies, originally intended to be a fleeting, limited-time offering, sold out swiftly and unexpectedly before Thanksgiving, sending the ravenous masses into mourning. So in December, Walmart quickly relaunched the popular dessert for year-round consumption. For Walmart's bakery, it was a renaissance of sorts.

"We haven't had so much excitement since we relaunched Twinkies," said Kerry Robinson, vice president for bakery and deli at Walmart.

Building off that momentum, LaBelle and Walmart are together again to launch two new products in January: a vanilla pound cake and a caramel cake, both part of Walmart's ongoing efforts to revamp its largely unremarkable bakery department. Like LaBelle's preceding pie, they will be sold under the "Patti's Good Life" brand, beckoning Walmart customers to "voulez-vous manger avec moi."

"I have a hit pie," LaBelle told BuzzFeed News, her voice as smooth and rich as buttercream, even streaming out of a conference room speakerphone. "I have other products that will do better now — the cakes, and more food coming out — because of the success of the pies." Or so she and Walmart hope.

CBS / Via youtube.com

The success of such products is meaningful to Walmart, the world's largest company in terms of revenue. The retailer gets roughly 56% of its U.S. sales from groceries (a department that includes both food and consumable products like household goods). Food will be critical to its in-store business as online competitors like Amazon eat into sales of products like electronics and media.

Can lightning strike twice?

LaBelle, who has several cookbooks, a bedding line, and other grocery products like marinades and sauces, is no stranger to retail. But "the pies have taken off more so than any of my other products so far," she said.

The otherworldly success of her Sweet Potato Pies was all the more surprising considering sweet potato has long stood in the shadow of pumpkin pie, dismissed by many as a second-class orange-hued treat. The $3.98 dessert also was launched with the understated bells and whistles you'd expect of Walmart, the pie's exclusive retailer.

Yet the celebrity endorsement, exceptionally good taste, one viral YouTube review that "blew it over the freakin' rainbow" (as LaBelle put it to talk show host Steve Harvey), and some amount of intangible magic sent them flying off Walmart's shelves.

Walmart declined to say how many it's sold so far, but during a particularly delirious three-day window, the discount retailer was selling one of LaBelle's sweet potato pies every second. State-wise, Louisiana bought the most sweet potato pies and city-wise, Chicago was the top market — in both places, they outsold all other pie flavors during the holidays.

Patti LaBelle performs during Angel Ball 2015 hosted by Gabrielle's Angel Foundation at Cipriani Wall Street on Oct. 19, 2015 in New York City.

Dimitrios Kambouris / Getty Images

The lively star of the now famous YouTube pie video is James Wright Chanel, a self-identified "entertainer, singer, chef, actor, comedian." One taste of LaBelle's Sweet Potato Pie sent him skyrocketing to the heavens, it seemed.

He sang.

He sang.

James Wright Chanel / Via youtube.com

He gyrated.

He gyrated.

James Wright Chanel / Via youtube.com

He savored.

He savored.

James Wright Chanel / Via youtube.com

Chanel's review so far has been seen more than 4.5 million times on YouTube. It earned him TV appearances, and an invitation to spend Thanksgiving with LaBelle herself. He has made many videos over the years, but none had gained this much attention — this review took the cake.

Walmart knows that what happened to the Sweet Potato Pies might turn out to be "a once in a lifetime opportunity," as Kinna Thomas, senior buyer for cakes and pies, described it. But perhaps not just once.

Which brings us to the next phase of the LaBelle-Walmart dessert coalition: Patti's Good Life cakes.

Venessa Wong / BuzzFeed News

Both cakes have been in the works since the two started working together last March, said Thomas. LaBelle's vanilla pound cake is dense and buttery and coated generously with vanilla icing. It weighs 1 pound 14 ounces. One serving, which is 1/15 of the cake has 210 calories, and 19 grams of sugar (about as much sugar as a serving of Ben & Jerry's vanilla ice cream). It hits stores Jan. 4 and will retail for $6.44, an odd price, but "I saved the customer an additional penny!" Thomas said.

The caramel cake goes even further in decadence. It's "three layers of yellow cake filled with caramel buttercream and topped with caramel icing," according to the package. This 2 pound-14 ounce-cake launches on Jan. 18 for $13.94. A strong caramel aroma escapes from the box when opened and a single serving, 1/16 of the cake, contains 390 calories and 32 grams of sugar. Yes, that means it is very sweet indeed.

For the first run, Walmart said it is going through 50,000 pounds of vanilla icing for the pound cake and 54,000 pounds of cake batter for the caramel cake.

Will the cakes draw the same sort of mystical fanfare as the pies? "We hope so!" Thomas said. Certainly, the pressure is on to rekindle the excitement, but as she chips away at improving Walmart's bakery section, her goals are broader. "At the end of the day, our focus is on quality...If it does go viral, we'll know that we've also connected with them in a different sort of way."

It does seem however, that expectations are high: more Patti LaBelle desserts are in the works at Walmart.

CBS / Via youtube.com



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