Consumer Packaged Goods Broker News: Prepared meals win fans in Europe

Dole profits exceed expectations | Higher demand, lower costs boost Hershey profits | How 14 new products managed to last beyond the launch

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July 26, 2013

News for the food, beverage and consumer packaged goods industry

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How 14 new products managed to last beyond the launch
New products that find their way into homes and make it over the two-year hurdle are often those that address consumers' "unarticulated desires" by meeting daily needs or getting rid of headaches, Nielsen says in its latest Breakthrough Innovation Report. The report features 14 products launched in 2011, such as Reese's Minis and Dannon Oikos Greek Yogurt, that maintained at least 90% of their first-year sales in their second year. Advertising Age (tiered subscription model) (7/25)

Prepared meals win fans in Europe
Trends in the ready-meal market in Europe include increased interest in ethnic flavors, a desire for convenience and improved perceptions of prepared foods, said Canadean analyst Ronan Stafford. "Ready meals look a lot better and taste a lot better than they did before," he said. FoodNavigator (7/25)

[Your Business] as a Service: Developing Your Subscription Business Strategy
Accelerate is a collection of articles that provide practical guidance and best practices for success in the Subscription Economy, with contributions from a variety of thought leaders and industry experts. In this eBook chapter, you will learn how to develop your subscription business strategy. Download the free eBook chapter now.

Advertising & Marketing

Report: CPG companies should optimize digital media use to boost sales

Companies should focus and spend more on digital marketing campaigns because the results are measurable and can increase sales and promote brand awareness, says a new CPG report from PointRoll. The report suggests that CPG marketers can optimize use of digital media by utilizing purchasing data to target consumers, enhancing print circulars with digital versions, engaging customers with online video advertising, and extending the reach of their message by finding a digital ad partner. SmartBrief/SmartBlog on Food & Beverage (7/24)

Kleenex boxes have fewer sheets, more profit potential
New Kleenex boxes from Kimberly-Clark contain 13% fewer tissues. This "desheeting" is expected to boost profits, since costs will be lower while retail prices won't change. The Wall Street Journal (tiered subscription model) (7/24)

Retail Spotlight

A&P reportedly weighs strategic options, including sale
A&P has sent an internal memo to store managers stating that the grocery chain might sell, after emerging from bankruptcy last year. Potential buyers for the 150-year-old company include Kroger, Ahold and Cerberus Capital Management, in another indication that the supermarket industry will continue a trend of consolidation. "This is about options to grow the business, not about being in distress," a spokesman said. "It's a desire for capital, not a need for capital." The Wall Street Journal (tiered subscription model) (7/25)

Publix's mantra: Service, quality and price
Employee-owned Publix Super Markets, thought to be the nation's most profitable grocery chain, makes service its top priority, followed by quality and price, President Todd Jones says. While discounters Wal-Mart Stores and ALDI are creating competition in Florida, Publix's home state, CEO Ed Crenshaw says the company's compensation system gives employees incentive to do "everything they can to serve that customer." Forbes (7/24)

Health & Wellness

Study: Rituals increase food pleasure
Rituals such as unwrapping food or stirring it in a certain way can increase the pleasure taken in consuming that food, researchers say. In the study, some participants were told to break a chocolate bar and unwrap half at a time, while others were given no instructions. FoodNavigator (7/25)

GMA News

Insights. Innovation. Execution.

Today’s most successful food retailers and CPG manufacturers are seeking bold strategies and new tactics to drive sustainable growth -- together. That's why this fall, the Food Marketing Institute (FMI) and the Grocery Manufacturers Association (GMA) have come together to launch Collaborating for Growth, Oct. 7 to 9, 2013, in Fort Worth, Texas.

Government & Food Safety

House ties Farm Bill to food stamp cuts
House Majority Leader Eric Cantor, R-Va., said Farm Bill negotiations are contingent on plans to cut billions of dollars from the food stamp program. The current bill is set to expire Sept. 30, setting the stage for higher farm subsidies and soaring milk prices. Reuters (7/25)