Consumer Packaged Goods Broker News: Winning label designs should stand out, tell a story

General Mills opens large facility in China | Hershey to raise prices by 8% | TreeHouse Foods looks to shares to fund Flagstone Foods acquisition

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July 16, 2014

News for the food, beverage and consumer packaged goods industry

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General Mills opens large facility in China
General Mills' $15 million innovation center in China, which opened Tuesday, is the company's first large technical center outside its headquarters in Golden Valley, Minn. The center will enable General Mills to increase its presence in China in products such as snacks, yogurt, ice cream and convenient meals. The company's sales in the country now top $700 million annually. Star Tribune (Minneapolis-St. Paul, Minn.)/Food Market blog (7/15), BakingBusiness.com (7/15)

Hershey to raise prices by 8%
Hershey will raise prices of its multipack, packaged and grocery products by about 8%, due in part to an increase in costs of commodities, utilities, packaging and transportation, the company said. The prices of cocoa, nuts and dairy have risen significantly since January, according to Hershey. Reuters (7/15), The Wall Street Journal (tiered subscription model) (7/15)

Other News

TreeHouse Foods looks to shares to fund Flagstone Foods acquisition
The Wall Street Journal (tiered subscription model) (7/15)
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"No Health Worries" to "All Natural." Know Your Customer

The recent Sweetener360 study from Mintel Consulting identifies six key consumer segments that account for $54.8 billion in total sales in 15 high-volume food and beverage categories. This informative infographic from CornNaturally.com gives you a quick overview of the six segments and answers key questions about consumer concerns and behaviors.

Trends

Winning label designs should stand out, tell a story
A good product label needs to be attention-getting and communicate the brand's story, according to food label designer Ashley Flanagan, who created labels for Quaker Oats and Evolution Fresh. A good design also needs to take into account how the product will be positioned on the shelf, especially if it is "brand blocked" and placed with other products in the line. Epicurious.com (7/15)

Nearly half of ice cream buyers seek indulgence, report says
When it comes to buying ice cream, 47% of consumers are motivated by the desire to indulge, and many are willing to pay more for quality taste, according to a report from Canadean. Manufacturers should offer premium products "combining sweet and savory flavors such as the heat of chili or a soft hint of elderflower, and sorbet textures for those consumers looking for more novel experiences at home," Canadean analyst Joanne Hardman said. FoodBusinessNews.net (free registration) (7/15)

4 issues impacting lower gum sales in U.S.
Americans may be cooling on their fondness for chewing gum, with volume declining 20% over the last five years and sales down 11%, says Nick Fereday, senior analyst for Rabobank. He cites four reasons for the decline: teens no longer deem it hip; too many new products have confused consumers; consumers are turning to mints, which have seen 20% growth in the last five years and consumers are concerned about gums' ingredients. FoodNavigator (7/15)

SmartBrief Originals

Fresh Take: SmartBrief's original coverage of the fresh foods category

The changing face of the produce section
The vast majority of consumers surveyed recently cited fresh produce as the key factor when choosing a grocer. Supermarkets are taking note, and many are moving chilled cases, dairy products and other items into the produce section to boost sales, Aunt Fannie's founder Mat Franken writes. SmartBrief/SmartBlog on Food & Beverage (7/16)

Advertising & Marketing

"Share a Coke" campaign is getting consumers talking
Coca-Cola's "Share a Coke" campaign, in which its logo is replaced by names popular among young people, is leading to positive online buzz, including more than 125,000 posts across social media platforms. Advertising backing the campaign includes TV and cinema ads, billboards, and social and digital work. The Wall Street Journal (tiered subscription model)/CMO Today blog (7/15)

Digital add-ons are extending festival sponsorships
Several music-festival sponsors are introducing on-site and digital activations to extend their campaigns beyond the event. Microsoft used Bonnaroo's bracelets with radio-frequency identification to provide related photos of artists and events via its OneDrive cloud service, and Jim Beam partnered with Pitchfork to produce "after-show" concerts that will be shown online. Adweek (7/15)

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Retail Spotlight

National brands adapt to reach dollar-store food shoppers
Food sales are increasing at dollar-store chains including Dollar General and Family Dollar, and manufacturers such as General Mills and Hampton Creek are tweaking their products for dollar-store shoppers in a bid for shelf space. "Here, we market our products in smaller package sizes -- perfect for one- and two-person households -- which include many of the 55-year-old-plus consumers," General Mills Vice President Shawn O'Grady said. Bloomberg Businessweek (7/15)

GMA News

Sustainability requires an ongoing commitment to education
To manage the fast-moving challenges within the sustainability spectrum, practitioners must remain current in the latest best practices. GMA and FMI will host the 2014 Global Sustainability Summit, Aug. 13-15 in Boston, where natural capital, sustainable agriculture, water stewardship, food waste and a whole lot more will be explored. Make sure you’re a part of this conversation.