Thursday, April 17, 2014

Hershey holds largest share of seasonal candy ads

Goya invests for future growth | Chobani expands to Asia, Latin America, boosts Australian sales | Egg prices hit 6-year high as Easter approaches
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April 17, 2014
GMA SmartBrief
News for the food, beverage and consumer packaged goods industry
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Company WatchSponsored By
Goya invests for future growth
Goya Foods has grown from an ingredients company with about 1,100 SKUs in 2004 to a company with more than 2,000 SKUs that offers everything from olive oil to prepared meals. The company recently invested $250 million in its U.S. production and distribution plants to help facilitate future growth. Goya is working with the White House to help educate consumers about MyPlate and is developing gluten-free and low-sodium products, President Bob Unanue says in this interview. FoodNavigator (4/17)
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Chobani expands to Asia, Latin America, boosts Australian sales
Chobani's products are now available in Singapore, Panama and Malaysia, and the yogurt-maker will look to other markets in areas including the Caribbean for future expansion, the company said Wednesday. "Asia and Latin America have untold possibility for Chobani, and our expansion in these regions furthers our business opportunities and builds on our founding mission to provide better food for more people," Chobani President and Chief Operating Officer David Denholm said. The company also has increased its Australian sales from 25,000 cases per week to 25,000 cases per day since opening a $30 million factory in South Victoria more than a year ago. FoodNavigator (4/16), FoodBusinessNews.net (free registration) (4/16), Rochester Democrat and Chronicle (N.Y.) (tiered subscription model) (4/16)
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TrendsSponsored By
Egg prices hit 6-year high as Easter approaches
Egg prices at U.S. supermarkets have hit a six-year high, with the cost of a dozen eggs reaching $2.06 in March, an increase of 7.1% from last year, according to the Bureau of Labor Statistics, and egg sales are ticking upward as Easter approaches. Last year, consumers purchased 2.6 billion eggs in the four weeks leading up to the holiday, according to Nielsen data. "With the prices, it's hard to know exactly what retailers will do," said Kevin Burkum, senior vice president for the American Egg Board. "We're optimistic that we'll be able to top last year. Eggs are still a very good value." Bloomberg (4/15)
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What percentage of consumers say they "avoid or are consuming less soda" vs. the percentage that actually buy? Find out the answer to these and other questions that reveal the difference between what consumers say vs. what they do in this fascinating online infographic. It's all part of the Sweetener360 research results you'll find on CornNaturally.com.
 
SmartBrief Originals
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Supply Chain ManagementSponsored By
"Connected" departments help CPG firms assure supplies
Most consumer packaged goods companies struggle to achieve assurance of supplies as they use fragmented and departmental approaches to supplier management, writes Diane Palmquist, vice president of manufacturing industry solutions at GT Nexus. "The key is breaking down barriers between departments and getting the finance, procurement and supply chain teams to see the big picture as it evolves every day," she writes. Connecting teams in one network, while "direct visibility is provided to each node in the network," provides easier management of transactions, allowing companies to be more confident in the security of their supplies, Palmquist adds. Consumer Goods Technology News (4/15)
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SAS® Gives Nestle A Flavor for What's to Come
Nestlé Direct Store Delivery improved forecasting accuracy four percentage points and increased service levels with help from SAS Demand-Driven Forecasting. The company is now able to hold inventory costs flat, and its sales force can better plan profitable sales promotions. Read the success story.

Advertising & Marketing
Hershey holds largest share of seasonal candy ads
Hershey garners the largest retail ad support share for seasonal candy ads with 32.4% and the Hershey bar has the most retail ad support of any brand with 18.6%, according to ECRM Analytics. On the company side with respect to retail ad support, Mars Chocolate North America came in second with 19.1% followed by Nestle at 8.7%, while for brands, M&Ms came in second with 8.5% and Russell Stover ranked third with 4.8%. When broken down by type, seasonal ads were dominated by chocolate at 29.4%, followed by packaged non-chocolate candy at 20.4%. CandyIndustry.com (4/15)
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How marketers are reaching millennials at music events
The summer music festival season began with Coachella this past weekend, marking the beginning of a $1.34 billion marketing spend as brands sponsor music venues, festivals and tours with an eye toward reaching millennials. "If you're a brand, you want to be associated with someone having a transformational moment in their life," said Chad Issaq, executive vice president of business development and partnerships at Superfly Productions. Advertising Age (free access for SmartBrief readers) (4/16)
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Budweiser is taking "Made in America" to the West Coast
Budweiser's Philadelphia-based "Made in America" music festival, an event with music acts curated by Jay-Z, is adding a second venue this year: Los Angeles. Bud has seen its market share erode in California amid competition from Mexican imports and craft beer. Brian Perkins, Budweiser U.S. brand vice president, says a big focus will be making the event "relevant to Hispanic culture." Advertising Age (free access for SmartBrief readers) (4/16)
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Retail Spotlight
Kroger ramps up expansion of large-format stores
Kroger is opening its newest Marketplace store today in Kentucky -- the latest opening in a string of 90 stores that are now open in 14 states and 17 that are under development. The large-format store, which features a full-service grocery and fresh foods department, competes with retail giant Wal-Mart Stores by offering nonfood items such as apparel, jewelry, a Little Clinic and a Baby World section. "Yes -- Wal-Mart has huge stores, but only 40,000 to 50,000 square feet of that is food, so Kroger has a much bigger, fresher selection and the price is close," retail consultant Howard Davidowitz said. The Cincinnati Enquirer (tiered subscription model) (4/17)
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Health & Wellness
Cereal flake size affects how much consumers pour
Consumers eat about 72 more calories, an increase of about 34%, when cereal is made with smaller flakes, according to a new study. "I think cereal manufacturers need to be aware that cereal flake size is an influence on how much people take and then how much they eat," said Barbara Rolls, lead scientist on the study. Consumers will pour two to three times more of a compact granola than a large volume cereal, and manufacturers wanting to offer healthier varieties should think about enlarging the flake size of their products as well as reconsidering serving size, especially of pre-portioned cereals like oatmeal, Rolls said. FoodNavigator (4/16)
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GMA News
Food Industry Alliance releases toolkit for reducing food waste
The Food Waste Reduction Alliance Best Practices and Emerging Solutions Toolkit is now available to help food manufacturers, retailers and foodservice operators leverage proven strategies to keep food waste out of landfills and to reduce waste at the source. Download the toolkit to learn more about the environmental, social and economic benefits an effective food waste strategy can deliver.
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SmartQuote
An expert is someone called in at the last minute to share the blame."
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American writer and humorist
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