Tuesday, June 24, 2014

Co-branding product innovations on the rise

KonaRed to introduce beverage pods | Energy drinks may grab more shelf space | Food safety, superfoods top IFT food trends
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June 24, 2014
GMA SmartBrief
News for the food, beverage and consumer packaged goods industry
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KonaRed to introduce beverage pods
KonaRed has partnered with Sparkling Drink Systems International to launch a line of beverage pods for use in the Viberation carbonation system. Varieties including Hawaiian CoffeeBerry, organic green tea and coconut water are expected to be available by the end of the year. FoodNavigator (6/20)
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Trends
Energy drinks may grab more shelf space
Carbonated soft drinks remain the largest beverage category in retail stores, but sales are declining and net volume decreased 3.2% in 2013. Energy drinks make up 30% of carbonated soft drink sales, motivating operators to give them more shelf space as consumers, especially millennials and Hispanics, increasingly look for functional beverages. BevNet.com (6/20)
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Corporate Social Responsibility
Nestle Waters promotes "zero waste" plan at Our Ocean conference
Nestle Waters North America has implemented a "zero waste" plan with six of its 28 U.S. facilities currently sending nothing to landfills, and Vice President of Public Policy Brian Flaherty outlined the company's recycling methods at the Our Ocean conference last week in Washington. Part of Nestle's long-term plan is to incorporate the cost of recycling into the retail price of bottled water, an effort that has seen success in the Manitoba province of Canada. The Advocate (Stamford, Conn.) (6/17)
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Advertising & Marketing
Co-branding product innovations on the rise
Co-branded product introductions are increasing, accounting for 6% of new products so far this year, up from 3.5% in 2013 and 2012, according to Datamonitor. Many companies invest in such partnerships to combine forces on ad and marketing efforts, says Datamonitor's Tom Vierhile. Some recent co-branded products include A&W/Betty Crocker Root Beer Float Frosting, Dial/Froyo Frozen Yogurt Cooling Body Wash and Kellogg's Jif Peanut Butter cereal. Advertising Age (free access for SmartBrief readers) (6/23)
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Whole Foods, General Mills abuzz with bee-awareness campaigns
General Mills is donating $1 from every box of its Cascadian Farm brand's Buzz Crunch Honey Almond cereal, sold exclusively at Whole Foods Market, to the Xerces Society, which is dedicated to pollinator conservation. Whole Foods has also partnered with Xerces on in-store events and a social media campaign to help raise awareness of bees' role in the food supply. MediaPost Communications/Marketing Daily (6/23)
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Retail Spotlight
Mariano's considers expansion outside Chicago
Mariano's might expand beyond the Chicago market in the future, according to CEO Bob Mariano, but for now the Roundy's Supermarkets-owned chain is focused on the metro area, with 10 more stores opening by the end of 2015. The company has partnered with organizations throughout Chicago, including City Colleges of Chicago, Chicago Public Schools, the Instituto Del Progreso Latino and the Illinois Department of Veterans' Affairs, to recruit employees. Chicago Tribune (tiered subscription model) (6/23)
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Health & Wellness
Formula changes for food brands are about "stealth health"
When General Mills reduced the sodium in its Hamburger Helper products, they introduced the new formula slowly, with no fanfare. "For health improvements to be successful, we have to make them in a way that consumers accept the change, which means no compromise on taste," said Maha Tahiri, General Mills' health and wellness officer. The Wall Street Journal (tiered subscription model) (6/23)
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GMA News
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SmartQuote
Recognizing the need is the primary condition for design."
-- Charles Eames,
American designer
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