Consumer Packaged Goods Broker News: Kellogg partners with Dannon for cereal-yogurt combos

Coca-Cola to increase stake in Keurig Green Mountain | Kellogg partners with Dannon for cereal-yogurt combos | Sysco acquires 50% of Costa Rican food distributor

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May 14, 2014

News for the food, beverage and consumer packaged goods industry

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Coca-Cola to increase stake in Keurig Green Mountain
Coca-Cola will become the largest Keurig Green Mountain shareholder when it purchases additional shares in the coffee company, increasing its ownership from 10% to 16%. Coke and Keurig are developing a cold-brew machine and Coca-Cola-branded pods in an effort to take market share from competitor SodaStream. Bloomberg (5/13), Reuters (5/13), The Wall Street Journal (tiered subscription model) (5/13)

Kellogg partners with Dannon for cereal-yogurt combos
Kellogg has signed a deal with Dannon that will place its Frosted Flakes and Froot Loops as the mix-ins in cups of Dannon's YoCrunch yogurt. The brands said this move is a first for a breakfast cereal on store shelves, but claim 40% of yogurt consumers already mix in cereal on their own. "Once you see it, it hits you that it makes sense," said YoCrunch Chief Marketing Officer Steve Platt. The Wall Street Journal (tiered subscription model)/Corporate Intelligence blog (5/13)

Other News

Sysco acquires 50% of Costa Rican food distributor
American City Business Journals/Houston (5/13)
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Trends

Report predicts food preferences of post-millennial consumers
The post-millennial generation, dubbed Gen Z, accounts for 32% of the population in the U.S., and marketers predict that these consumers will demand fresher foods and forgo ready-to-eat and microwaveable foods in favor of meals that can be prepared using the stove. An NPD market research report says Gen Z consumers will eat more salad and quick-assembly meals, and they are expected to prefer more involved breakfast foods and savory snacks. Bloomberg Businessweek (5/12)

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Advertising & Marketing

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Bertolli offers mobile video, recipe ideas in grocery aisles
Shoppers looking for olive oil can access short-form video and ingredient lists for inspiration in their grocery aisles through a mobile application by Bertolli. The company has teamed with Thinaire for the interactive marketing effort that uses near-field communication to offer consumers access to the "Let's Cook" app. Mobile Marketer (5/14)

Oreo signs international "Transformers" tie-in deal
Mondelez International's Oreo brand has signed its first-ever global movie marketing deal, aligning its products with Paramount Pictures' upcoming "Transformers: Age of Extinction." Oreo will have a product placement in the film, plus themed packaging, point-of-sale marketing and Transformers-specific shapes and colors in Asia and Latin America. TV ads from The Martin Agency will show "how an Oreo cookie provides a moment of support" to Transformers during a fight, according to Mondelez. Advertising Age (free access for SmartBrief readers) (5/13), American City Business Journals/Chicago (5/13)

Report: Packaged goods brands are behind on mobile
Consumer packaged goods brands are missing an opportunity to reach the 90% of consumers who use their smartphones while grocery shopping, according to an L2 Think Tank report. It found that 43% of the brands lack websites optimized for mobile and just 24% use geolocation to reach consumers at opportune times. The report hails Kellogg's and Betty Crocker as exceptions with strong digital presence. MobileCommerceDaily.com (5/14)

Why General Mills' CMO leads monthly marketing workshops
General Mills Chief Marketing Officer Mark Addicks brings in some 300 General Mills marketers once a month to look at trends in the industry and talk about current efforts. The class aims to help marketers maintain an outside perspective through a rapid-fire look at what works, what doesn't and lessons to learn from others. "A marketer today has to be incredibly curious and externally focused," Addicks said. Advertising Age (free access for SmartBrief readers) (5/13)

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Retail Spotlight

Discount retailers stock more consumables to encourage regular visits
Discount retailers including Family Dollar Stores and Dollar General are expanding their stock of consumables in an effort to encourage shoppers to return regularly. Both chains began offering liquor and cigarettes in 2012 to establish a base of repeat shoppers, and the discount category has seen sales rise at a rate of 5.9% in the past year, with beverage sales rising 8%, according to Information Resources. Discount retailers are also stocking name-brand food items, often in smaller packaging, as a way to improve the category's image and meet consumer demand, a Euromonitor analyst said. BevIndustry.com (5/12)

Whole Foods named among world's largest public companies
Whole Foods Market is the only Austin, Texas-based company to make the Forbes Global 2000 list this year, which ranks the world's largest publicly traded companies based on assets, profits, sales and market value. Whole Foods, which was ranked 868th, has a market value of $19.41 billion. American City Business Journals/Austin, Texas/Austin Blogs (5/13)

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GMA News

GMA's 11th annual CPG Award for Innovation and Creativity
Make sure your company is recognized for its industry-leading creative and innovative accomplishments. Join the ranks of past winners such as Kraft Foods, the Clorox Company, PepsiCo, General Mills, the E. & J. Gallo Winery and many more by submitting your application for the 2014 GMA CPG Award for Innovation and Creativity. Visit the website for more details.