Wednesday, April 23, 2014

Hershey, Nestle adapt to challenges of emerging markets

Frito-Lay to expand markets for deep-ridged chips | Hershey, Nestle adapt to challenges of emerging markets | Mintel: Tropical flavors could boost juice sales
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April 23, 2014
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Frito-Lay to expand markets for deep-ridged chips
Frito-Lay, which debuted deep-ridged potato chips in the U.S. and Canada in 2012 with its Ruffles brand, will have the chips that are also now under the Lay's and Walkers brands available in more than 20 markets by the end of the year. The chips will be introduced in Argentina, Colombia, Ecuador, Egypt, Russia and Saudi Arabia in 2014; they are already available in the U.S., Canada, U.K., Mexico, Australia, Netherlands, Spain, Thailand and India. BakeryAndSnacks.com (France) (4/22)
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Hershey, Nestle adapt to challenges of emerging markets
Emerging markets such as India and China are seeing incomes rise, but CPG companies still face challenges as they compete for sales to the growing middle class. Chocolate-makers such as Hershey, Nestle and Mondelez face challenges in new markets that have hot climates and poor refrigeration; all have worked to develop heat-resistant chocolate bars. General Mills also had to ship its Haagen-Dazs "mooncakes" to retail stores when it learned that China's state-owned firms wouldn't hand out cakes during the Mid-Autumn Festival, a tradition that accounted for 30% of mooncake sales. Reuters (4/21)
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Trends
Mintel: Tropical flavors could boost juice sales
Pom Hula made with pomegranate, pineapple and apple juices; Welch's Passion Fruit Fruit Juice Cocktail Blend made from passion fruit, grape and apple juices; and Welch's Dragon Fruit Mango juice blend featuring pear, mango, dragon fruit and guava juices are just a few examples of the tropical flavors that Mintel says might help boost juice sales. The juice industry increased product launches 25% from 2009 to 2013 and hit $15.5 billion in sales, according to Mintel. BeverageDaily.com (France) (4/22)
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Coffee pods account for more than 40% of ground coffee sales
Green Mountain Coffee single-serve K-Cups
(Brendan Mcdermid/Reuters)
Single-serve coffee pods accounted for 41.2% of the ground coffee sales in the four weeks ended April 12, up from 32.5% for the same period last year, according to Nielsen. The category dollar sales increased 29.5% from the previous year for the time period, and unit growth increased 38.2%. Green Mountain Coffee Roasters is the category leader, garnering 34.8% of the market, followed by Starbucks with 14% and J.M. Smucker with 11.5%. FoodNavigator (4/23)
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Butter sales spike as result of increased demand for natural food
Butter consumption per capita in the U.S. is at a 40-year high driven in large part by a return to natural foods as consumers eschew products with unpronounceable ingredients. In 2012, per capita consumption was up 12% to 5.6 pounds, according to the USDA, and a Mintel survey found that butter sales by volume increased 5% last year. "There has been a complete resurgence of butter since at least 2008, and it really has everything to do with 'real food,'" said Melissa Abbott, culinary insights director at the Hartman Group. Chicago Tribune (tiered subscription model) (4/22)
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GMA teams on industry effort to cut food waste
GMA, along with dozens of other industry groups, including the National Restaurant Association and the Food Marketing Institute, is part of the Food Waste Reduction Alliance, which last week released a toolkit to help cut food waste throughout the industry. "We realized early on that we needed to communicate beyond this group to the broader membership of our respective trade associations if we were going to be able to get traction on this issue and make meaningful progress. This is only the beginning, but it's a way to lay the groundwork to enable the entire food industry to address this environmental, social and economic issue," ConAgra Foods Vice President of Sustainable Development and toolkit co-author Gail Tavill said. SmartBrief/SmartBlog on Food & Beverage (4/23)
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Post Foods invites young fans to share selfies via Instagram
The chance to win headphones is one lure as Post Foods' Honeycomb cereal engages young fans on Instagram by inviting them to post selfies and video clips. "We found Instagram to be the best platform to encourage our creative tween and teen fan base to interact with our brand and submit their entries for our weekly challenges," Senior Brand Manager Susan Fruzzetti-Reich said. Mobile Marketer (4/23)
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Retail Spotlight
Kroger emphasizes seafood sustainability through video series
Kroger has released a series of videos on its sustainability efforts related to fresh, frozen and canned seafood. Those efforts include working with the World Wildlife Fund to source 100% of Kroger's top seafood species from Marine Stewardship Council-certified fisheries and not selling certain species of fish because they cannot be sourced sustainably. "We continue to work with fisheries and our supplier partners to ensure that Kroger's seafood is fresh, delicious and available for future generations," said Suzanne Lindsay-Walker, Kroger's director of sustainability. Supermarket News (free registration) (4/22)
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There are no passengers on Spaceship Earth. We are all crew."
-- Marshall McLuhan,
Canadian philosopher
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