Thursday, May 8, 2014

Keurig Green Mountain grows partnership with Smuckers

Mondelez, D.E. Master Blenders to form 2nd-largest coffee company | Snyder's-Lance to drop private-label business, add bakery | Keurig Green Mountain grows partnership with Smuckers
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May 8, 2014
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Company Watch
Mondelez, D.E. Master Blenders to form 2nd-largest coffee company
Mondelez International has partnered with JAB Holdings to combine its coffee unit with D.E. Master Blenders, the former coffee unit of Sara Lee. Mondelez will receive about $5 billion in the deal and will own 49% of the new company, which will be the second-largest coffee company behind Nestle. The new company will market Mondelez's Gevalia, Tassimo, Jacobs and other coffee brands and D.E. Master's Senseo, Douwe Egberts and other brands. Chicago Tribune (tiered subscription model) (5/7), Bloomberg (5/7), Star Tribune (Minneapolis-St. Paul, Minn.)/The Associated Press (5/7)
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Snyder's-Lance to drop private-label business, add bakery
Snyder's-Lance will purchase Baptista's Bakery, makers of Snack Factory Pretzel Crisps, to help strengthen its healthy-snacks segment, and will sell its private-label business to Shearer's Foods in a $430 million deal that also includes two manufacturing facilities. Private label made up less than 20% of Snyder's revenues last year, which were $1.76 billion, an 8.8% increase from the previous year. American City Business Journals/Charlotte (5/7), Crain's Cleveland Business (5/8), FoodBusinessNews.net (free registration) (5/7)
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Keurig Green Mountain grows partnership with Smuckers
Keurig Green Mountain has expanded its partnership with Smuckers, which began in 2010, to include making and selling K-cups for Smuckers' coffee brands, including Folgers and Millstone. Keurig is expanding its licensing agreements ahead of the launch of two new brewing systems, the Keurig 2.0 and Keurig Bolt. Reuters (5/7), The Wall Street Journal (tiered subscription model) (5/7)
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Companies live and die by their employees
Businesses with fewer than 500 employees drive the economy, and represent about 55% of all jobs in the country. However, finding suitable employees can be tough. Small Business Owners with limited time and resources need to make every new hire count because the actions of each employee can go straight to the bottom line. Download your free white paper, Welcome Aboard: A Guide to Small Business Hiring and learn how to hire smarter.

Trends
Report: Shoppers are confused about buying organic
About 84% of U.S. consumers occasionally buy organic foods, and 45% buy them at least monthly, but many consumers are confused about what the organic label means, a Consumer Reports survey has found. Although the USDA organic-label requirements for meat and eggs stipulate that poultry have a certain amount of living space and access to outside areas, fewer than half of the consumers surveyed knew that. For fruits and vegetables, 81% of shoppers thought the organic label meant no toxic pesticides were used, when in fact, organic producers can use approved fertilizers and pesticides. FoodNavigator (5/7)
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SmartBrief Originals
Read the latest food and beverage coverage by SmartBrief in SmartBrief Originals:
Supply Chain Management
Tips for companies to shore up data, IT security in the supply chain
Complex, long supply chains require strengthened IT and data security, according to this article. Cybercrime risks extend to every partner in the chain, and if companies are too busy or unable to secure their partners' systems they should collaborate with a trusted IT provider, said Ramses Galego, international vice president at IT trade body ISACA. Chris England, director at access management firm Okta, recommends multifactor authentication and "a single-access point to all applications" to prevent weak spots in the chain. The Guardian (London) (4/28)
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Advertising & Marketing
Campbell Soup Co. expands targeted mobile ad campaign
Campbell Soup Co. is expanding the pilot mobile ad campaign it tested last year with Pace salsa, which targeted consumers who had previously purchased the product, to include more brands this year. The mobile ads were meant to regain lapsed purchasers as well as target consumers living in a region that had seen declining sales. The new brands in the program are using different calls-to-action. MobileCommerceDaily.com (5/8)
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P&G revives Special Olympics spot for Mother's Day
Procter & Gamble for Mother's Day has brought back into focus an ad that follows Special Olympics athlete Molly Hincka and her mom Kerry. The "What I See" spot from Wieden+Kennedy was developed in 2011, and the latest version is being promoted via P&G's YouTube page and a paid YouTube campaign. Adweek (5/7)
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Retail Spotlight
How Kroger uses data to earn customers' trust
Kroger earns customer loyalty and trust through fair prices, customer service, food safety and responding to customer feedback, Group Vice President of Corporate Affairs Lynn Marmer said Wednesday. Data analysis plays a major role in the company's ability to gauge trust and respond to customer feedback, but Kroger also uses data to improve all aspects of its business, Marmer said. "We want customers to see us as their advocate, as a company 'on their side,' keeping their family healthy and safe," she said. American City Business Journals/Cincinnati (5/7)
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GMA News
Gain recognition for your company's innovative and creative accomplishments
Organizations that have taken an innovative approach to creatively tackle some of the CPG industry's most pressing issues such as sustainability, supply chain improvement, product reformulation amongst others, deserve recognition. Don't let your company's accomplishments go unnoticed. Submit your application for the Grocery Manufacturers Association's 11th annual CPG Award for Innovation and Creativity today.
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Government & Food Safety
Lawmakers urge adding potatoes to WIC program
Twenty U.S. senators sent a letter to Tom Vilsack, U.S. Agriculture Secretary, urging him to add white potatoes to the approved list of foods in the Women, Infants and Childrens (WIC) program. White potatoes were banned from the program in 2009 at the advice of the Institute of Medicine, but they are the only fresh produce that WIC recipients aren't allowed to buy. The senators argued for the health benefits of potatoes, which contain essential vitamins and are cholesterol-, fat- and sodium-free. Bangor Daily News (Maine) (free registration) (5/7)
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SmartQuote
The world hates change, yet it is the only thing that has brought progress."
-- Charles Kettering,
American inventor
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