Thursday, April 24, 2014

Chobani wins $750M in funding to fuel growth

Chobani wins $750M in funding to fuel growth | Caliwater cactus water looks to grow beyond natural products sector | Trade agreement could be hurdle for Canada's artisanal cheese market
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April 24, 2014
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Chobani wins $750M in funding to fuel growth
Private equity firm TPG Capital has agreed to invest $750 million in Chobani as the Greek-yogurt company looks to expand its product offerings and potentially launch an initial public offering. Chobani said it was looking for an infusion of funds to help introduce products such as desserts, organic yogurt and yogurt with steel-cut oats, which are expected to become available sometime this year. The New York Times (tiered subscription model)/DealBook blog (4/23), Reuters (4/23), The Wall Street Journal (tiered subscription model) (4/23)
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Caliwater cactus water looks to grow beyond natural products sector
Caliwater, which produces ready-to-drink prickly pear cactus water, launched Jan. 1 this year and is eyeing plans to grow beyond the natural products segment and take on coconut water. Currently, Caliwater is sold online and in a few stores in Southern California. The beverage blends prickly pear cactus juice and extract with filtered water, stevia and organic lemon juice for a beverage with 32 calories and 7 grams of sugar in each 11-ounce bottle. "We're having to pave a road here with the first RTD natural cactus water of its kind," said co-founder Matt McKee. BeverageDaily.com (France) (4/22)
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Trends
Trade agreement could be hurdle for Canada's artisanal cheese market
Canadians eat an average of more than 26 pounds of cheese per person annually, and the artisanal cheese market there is on the rise as Canadian consumers want to know more about where the ingredients in their food come from, according to Debbie Levy of Dairy Farmers of Canada. A recent trade agreement between Canada and the European Union threatens Canada's nascent artisanal cheese market, as the agreement would double the amount of European cheese allowed into Canada each year to 66 million pounds. "I'm worried about the future," Monforte Dairy founder and cheese maker Ruth Klahsen said. "They can sell it in Loblaws for less than my cost of production." Canadian Grocer/The Canadian Press (4/21)
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SmartBrief Originals
Read the latest food and beverage coverage in SmartBrief Originals:
Supply Chain ManagementSponsored By
Industry needs to reduce waste through entire supply chain, expert says
The food industry, which has worked to reduce waste at the retail and customer end of the supply chain, needs to start working to better use waste product further up the line, according to Steve Osborn of Leatherhead Food Research. "It's really about leaving no stone unturned when it comes to your manufacturing processes and the waste streams that you get out of that," Osborn said. He noted several products that were created from waste products or byproducts such as Flake chocolate bar and Marmite. Osborn also encouraged companies to look at the manufacturing process to see if any steps could be altered to reduce costs and waste. FoodNavigator (4/23)
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Advertising & Marketing
P&G will slash marketing to shore up its bottom line
Procter & Gamble will reduce its overall marketing spending this year as it looks to improve its bottom line, which is taking a hit from currency devaluation in foreign markets, said Jon Moeller, P&G's chief financial officer. The company will reduce its spending on agency fees and shift more marketing to digital. "We're at a point where simply looking at dollars is not representative of the strength of a marketing program," said Moeller. Advertising Age (free access for SmartBrief readers) (4/23)
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Receipt-based mobile campaign is tied to World Cup
Mobile is part of a wider campaign by Home Depot, Coca-Cola and Makita that invites consumers to snap a photo of a store receipt for a chance to attend the FIFA World Cup in Brazil. The receipt tactic is seen as a way to combat showrooming and keep brands on consumers' minds after they leave stores. Mobile Marketer (4/24)
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Survey: Millennials say TV, digital ads are most influential
About one-third of millennials find digital ads to be more effective than traditional ads, though 28% view them as equally effective, according to an Adroit Digital poll. The millennial respondents said that TV was the most influential type of advertising for "perceiving/valuing a brand," followed by digital ads including social, display and mobile, which beat other traditional media such as magazines and radio. eMarketer (4/15)
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Retail Spotlight
Harris Teeter cuts thousands of prices in N.C. campaign
Harris Teeter has launched a "New Lower Price" campaign in some of its North Carolina stores that involves price cuts on thousands of grocery, organic and perishable items, including national and private-label brands. "Over the years, our customers have asked us to lower our prices, and we've listened by introducing various pricing and promotional strategies which drive value to them," Harris Teeter Communication Manager Catherine Becker said. American City Business Journals/Charlotte, N.C. (4/23)
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