Tuesday, July 29, 2014

General Mills steps up environmental efforts

Tyson selling Mexican, Brazilian poultry units for $575M | Danone looks to expand yogurt beyond Greek offerings | Tight focus is key to CPG brand expansion
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July 29, 2014
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Tyson selling Mexican, Brazilian poultry units for $575M
Tyson is selling its Mexican and Brazilian poultry units to JBS SA's Pilgrim's Pride for $575 million in an attempt to lower the debt it is acquiring with its Hillshire Brands purchase. The sale to JBS is expected to close by the end of the year, and the acquisition of Hillshire should be concluded before Sept. 27. Reuters (7/28), Bloomberg Businessweek (7/28), The Arizona Republic (Phoenix) (tiered subscription model) (7/28)
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Tight focus is key to CPG brand expansion
Legacy brands often consider expanding into new categories to maintain positioning in the marketplace, but a recent report from The Hartman Group details the right and wrong ways to go about brand extensions. This is most effective with brands "that are extremely strong, contemporary and linked tightly to emerging distinctions in food culture that are gaining momentum," the report said. "Above all, focused category extensions work the best." CSP (7/28)
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Corporate Social ResponsibilitySponsored By
General Mills steps up environmental efforts
General Mills announced its suppliers and contractors will now be included in its emission reduction targets, and the company has joined Business for Innovative Climate and Energy Policy, a coalition that advocates for climate and clean energy policies. Previously, General Mills had committed to sustainably sourcing its top 10 ingredients by 2020, which represents 50% of its ingredient purchases. Los Angeles Times (tiered subscription model) (7/28), Star Tribune (Minneapolis-St. Paul, Minn.)/The Associated Press (7/28)
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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
"Share A Coke" campaign generates positive social buzz
Coca-Cola's digital "Share A Coke" campaign has seen 125,000 shares since its debut in June, with 96% of sentiments positive or neutral, according to Networked Insights. The #shareacoke hashtag and social media campaigns piggyback on the real-world marketing that includes Coke bottles with popular names and nicknames like "bestie." MediaPost Communications/Marketing Daily (7/28)
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Will virtual reality become a powerful tool for brands?
Given the growing affordability of virtual reality headsets, advertisers including Coca-Cola, HBO and Nissan are amping up their efforts to use VR to build branded experiences. But some advertisers say that similar technologies, such as augmented reality, haven't taken off as expected, and they warn against adopting technology for technology's sake. Advertising Age (free access for SmartBrief readers) (7/28)
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Welcome Aboard: A Guide to Small Business Hiring
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Retail Spotlight
Aldi eyes up to 650 U.S. stores in next 5 years
Aldi hopes to double its footprint in West Virginia to 14 stores over the next five years, as part of a growth strategy that includes 600 to 650 new stores nationwide. "We've got the product line, we feel like we've got a good niche and loyal customers and we feel like we're primed to grow," said Regional Director of Real Estate Russ White. Charleston Daily Mail (W.Va.) (7/28)
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Dollar Tree to acquire Family Dollar Stores for $9B
A merger between Dollar Tree and Family Dollar has been supported by both retailers' boards in a deal valued at up to $9 billion. Both discount stores, but Family Dollar in particular, have struggled as they confront competition from Wal-Mart. Combined, the stores' sales will top $18 billion and more closely rival that of the country's top discounter, Dollar General. The Wall Street Journal (tiered subscription model) (7/28), The New York Times (tiered subscription model)/DealBook blog (7/28), Fort Worth Star-Telegram (Texas)/The Associated Press (7/28), CandyAndSnackToday.com (7/28)
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GMA News
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-- Lyndon B. Johnson,
36th U.S. president
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