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<i> Items were compiled and edited by Grassroots Research, a unit of the San Francisco money management firm of RCM Capital Management. </i>

Taste A roundup of business developments spotted by other publications. Items were compiled and edited by Grassroots Research, a unit of the San Francisco money management firm of RCM Capital Management. Taste Test: Monsanto’s new fat substitute, Simplesse, will debut in Simple Pleasures frozen dessert late this spring, going up against Breyer’s Light and Sealtest Free Nonfat Ice Cream in a sector that saw sales in 1988 grow 43%, from $140 million to $200 million. Monsanto is also marketing Simplesse to other companies as an ingredient for nonfat or low-fat products; Kraft already has agreed to use it in a mayonnaise. How does Simplesse taste? Comments from a panel of tasters at the Boston Globe: “Good but not the real thing,” “chalky, slightly furry aftertaste,” “tastes like what a synthetic fabric would taste like if it melted” and “terrific for someone who can’t eat ice cream.” St. Paul Pioneer Press Dispatch, Boston Globe

Healthy Chain: The largest-volume, deep-discount drug chain in the United States, Phar-Mor Inc. of Ohio, is also the fastest growing, with more than 70 outlets scheduled to open in 1990. It has outpaced competitor Drug Emporium and plans to continue expanding. Flush with a stock offering rumored to have netted $80.5 million, the company can expand while reducing its bank debt and spending on general business needs. Chain Drug Review

Irate Shoppers: J. C. Penney’s decision to polish its image and go after a more upscale consumer is beginning to pay off, but now it must placate its traditional customer, who is older and more conservative. The company received an avalanche of mail from shoppers irate over flashy new ads and catalogues and confused by changes at the stores. To keep both sides happy, Penney’s advertising and store ambience must attract a younger crowd willing to pay more for brand-name goods and still retain products and prices that appeal to its customer base. Thus far, compromises have been successful, but the real test will come as Penney attempts to further update its look. Adweek’s Marketing Week

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Green Choice: One retail company not afraid of the green market is Loblaw Cos. of Toronto. Last year, it introduced about 100 “environment- and body-friendly” house brands under the President’s Choice label. The products, some of which outsell national brands, range from peanut sauce to pet foods, diapers to soda crackers. While no other major grocery chain has come up with a similar line, some, including Great Scott! in Chicago and D’Agostino’s in New York, are beginning to pick up some of the President’s Choice products. Boston Globe

On Board Again: After airlines raised fares in late 1988, air travel took a noticeable dive, as would-be fliers waited for prices to drop. Late last year, however, they became resigned to the higher fares and resumed air travel. Boardings increased 5% in November and 6% in December. Domestic travel in December and January showed the greatest jumps since November, 1988. The increases are also a tonic for the soft hotel and rental car markets. Pittsburgh Press

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