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Smaller Kpak Format For Kellogg’s Corn Flakes In India to Expand Reach

April 12, 2010: 04:09 AM EST

Following a test-market launch in Tamil Nadu, Kellogg’s in India is launching nationally the smaller Kpak package format for its Corn Flakes product, following Kpak launches for its Chocos and Honey Loops. The smaller package enables the brand to hit the Rs 10 price point, making it more affordable for the Tier II and III towns, helping it to secure greater market share. Rural areas aren’t yet on Kellogg’s radar as urban centers still provide large potential. Kellogg’s already has a 70 percent share of the relatively small ready-to-eat cereal category in India, and Corn Flakes are also being positioned as an evening snack to help boost out-of-home demand for the product as competition intensifies, with PepsiCo looking to leverage the Quaker platform in India and introduce other breakfast items from its global portfolio, and private label competitors emerging. At the moment, Kellogg’s sees that competition as beneficial by helping to grow the category in the market. It currently offers only breakfast cereal in India and has as yet no plans to introduce some of its other categories.

Seema Sindhu , "Kellogg's goes snacking", Business Standard, April 12, 2010, © Business Standard

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UK Policymakers Take Note: Organic Business Is On The Mend

April 1, 2010: 04:21 AM EST

According to a report by the UK’s Soil Association, organic business, like all other business, has felt the recession’s negative impact. But there is cause for optimism. Overall, organic sales may have dropped 13 percent, but organic milk and baby food sales defied the trend, posting increases of one percent and 20.8 percent respectively. Organic health and beauty product sales soared by 33 percent to $55 million. Organic farmland increased by nine percent over 2008. Organic sales show a possibility of “modest growth” (two to five percent) this year. But more work needs to be done. In particular, lawmakers need to be reminded of the environmental benefits of organic farming: converting all UK farmland to organic production would have the same environmental impact as taking a million cars off the road.

"Organic Market Report 2010", Soil Association, April 01, 2010, © Soil Association

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Italian Chocolate Maker ICAM Expands Private Label Manufacturing Business In N. America

March 23, 2010: 10:30 PM EST

With U.S. consumers now “very sensitive to chocolate product quality,” ICAM (Lecco, Italy) hopes to boost its North American private label chocolate making business with a Los Angeles sales office operating under the Agostini Chocolate brand. The U.S. sales team will offer North American retailers and consumer brand companies an array of different stock and custom choices for developing premium chocolate products. Noting that American retailers are selling a lot of premium organically-produced chocolates from ”unique cocoa origins,” ICAM believes its high quality, organic, chocolate products produced from single origin and Fair Trade cocoa beans will flourish. The Agostini factory, which produced almost 7,000 tons of private label products in 2009, has strong Equal Partner relationships with key cocoa producing countries Ecuador, Peru and the Dominican Republic.

"Agostoni Private Label Chocolate Now in U.S.", Natural Products Marketplace, March 23, 2010, © Virgo Publishing, LLC

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7-Eleven U.S. To Develop Low-Priced Foods For Hispanic Market

March 22, 2010: 03:54 AM EST

The U.S.-based unit of 7-Eleven is once again attempting to take advantage of economies of scale by linking up with its Mexican counterpart to create lower-priced private label foods targeting Hispanic customers. The company hopes the partnership will create enough purchasing clout to reduce costs and, in turn, prices. "It is important to get the best cost possible and offer the customer the best price," a 7-Eleven spokeswoman said. Partnerships that exploit economies of scale to create cost-saving opportunities are not new to the U.S. unit of 7-Eleven. Last year it pooled resources with its Tokyo-based parent company to market two new low-price wines.

"7-Eleven Develops Private Label Products for Hispanics ", Convenience Store News, March 22, 2010, © Nielsen Business Media, Inc.

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Generic Products Attracting More US Consumers, National Brands Take a Hit

January 29, 2010: 05:29 AM EST

According to a recent Boston Globe article, more consumers are now turning to private label products to to realize savings, ignoring more familiar brands in the process. Nielsen estimates that since 2007, sales of generic products are up 8 percent, while popular brands have declined 4 percent. A survey of 50,000 grocery shoppers by BrandSpark and Better Homes and Gardens suggests that 40 percent of American shoppers now purchase store brands, but 63 percent intend to return to familiar brands as the economy improves. Retail analysts fear the switch from brands could be more enduring, foretelling trouble for high-end national brands. Meanwhile, retailers sense an opportunity and are targeting cost-sensitive shoppers. Over the past two years, Stop & Shop, for instance, which has added over 1,000 items to its stable of 4,000 private label products, claims shoppers can save 25% using its own-store products.

Jenn Abelson, "Seeking savings, some ditch brand loyalty", Boston, January 29, 2010, © NY Times Co.

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Food Makers Should Pay Special Attention To Four Key Consumer-Driven Trends

January 26, 2010: 08:05 AM EST

Food and industrial ingredients company Tate & Lyle says food manufacturer should take note of four key consumer-driven purchasing trends in 2010. For example, private label “premium options” with healthy and high quality ingredients appear to be seducing shoppers away from national brands – 47 percent of consumers have switched to store brands – as consumers continue to watch spending. Other trends that will affect food maker product lines: Americans are more sensitive to environmental impact; they want convenience foods that are affordable and nutritious; and they are eating more gluten-free products, even without suffering from celiac disease.

EmailWire.Com, "2010 Food & Beverage Trends", Earth Times, January 26, 2010, © www.earthtimes.org, The Earth Times

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Survey Sheds Light On Canadian Attitudes Toward Food Purchasing

January 19, 2010: 08:51 PM EST

A survey of 25,000 Canadian consumers has unearthed four key trends in attitudes toward food shopping. The recession, for example, is keeping Canadians indoors, with 73 percent cooking more at home and 47 percent saying they have purchased more private label/in-store brands versus premium and name brands. Eighty-eight percent of Canadians feel that food and nutrition can help prevent illness, and 83 percent want foods that are healthier. Environmental accountability is important, as well, with 82 percent believing that companies are exploiting eco-friendly claims. The BrandSpark survey determines winners of the 2010 Best New Product Awards among 144 products.

"7th Annual Best New Product Awards Reveals Key Insights into the Minds of Canadian Consumers", Brandspark International, January 19, 2010, via Brandspark International, © CNW Group Ltd

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In False Advertising Case, Court Finds Store Brand Infant Formula As Nutritious As National Brand

December 2, 2009: 04:58 AM EST

A federal jury agreed with store brand infant formula supplier PBM Products, LLC, that Mead Johnson & Co. engaged in false advertising when it suggested that PBM’s products, which cost about half of national brand Enfamil formula, do not provide the same nutrition. The jury award of $13.5 million in damages is “one of the largest damages awards ever for a false advertising case,” PBM said in a statement. Mead Johnson’s ads had stated that "there are plenty of other ways to save on baby expenses without cutting back on nutrition" buy purchasing PBM’s infant formula.

"Mead Johnson, Maker of Enfamil, Loses Multi-Million Dollar False Advertising Case Against Store-Brand Infant Formulas ", Businesswire, December 02, 2009, © Business Wire

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As Recession Grinds On, Food Marketers Should Emphasize Value, Innovation

October 19, 2009: 12:47 AM EST

The recession has spawned some interesting behavioral changes among U.S. food buyers, according to this Adweek overview of consumer research findings. Leading the list, of course, is the concern over the price of groceries: a Synovate survey found nearly two-thirds of respondents saying groceries were overpriced. Concerns about price pushed consumers toward private labels, cheaper frozen foods, and less healthy foods generally. Microwaving rather than cooking at home surged. Industry experts, seeing products like “better for you” foods rebounding after the recession, nevertheless urge marketers to forge an emotional bond with consumers, stress value and innovation.

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Consumer Product Makers And Retailers Adapt To More Prudent Grocery Shoppers

September 5, 2009: 04:44 AM EST

Though the word out of Washington is that the recession is easing, cautious consumers – battered daily by news of layoffs, pay cuts, and continuing financial industry woes – continue to search for ways to trim their grocery bill. The attitude shift toward smarter shopping is a trend experts believe will endure, even after the crisis has passed. In the meantime, consumer products makers like Procter & Gamble and retailers like Krogers are adapting to the new reality. P&G is cutting prices in various ways, like couponing, while Krogers is enhancing and emphasizing the value of its private-label brands.

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“Positive Is Back” Is Theme Of Carrefour’s Campaign To Become The Favorite In France

September 4, 2009: 05:04 AM EST

French Carrefour is pitching a new image to consumers, one that conveys a commitment to improving the lives of customers who, according to the company, want simple, accessible solutions. The solutions Carrefour promises to provide include high quality discount products, easier shopping, accessible organic goods, new technologies, and eco-friendly products. “We are more determined than ever to provide our customers with concrete and innovative solutions to improve their quality of life," says an executive at Carrefour, whose overriding goal is to become “France’s favorite retailer.”

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P&G’s New CEO Is Aggressive, But Is He Too Optimistic?

September 1, 2009: 04:03 AM EST

The new captain at the helm of Procter & Gamble has an ambitious 10-year strategic plan for the huge personal-care company, despite a weakened global economy and poor corporate financial performance. Newly installed CEO Bob McDonald, a 30-year P&G veteran, promises to double annual sales by attracting a billion new customers in emerging markets and by adjusting pricing schemes to meet pressure from private-label products. Will the approach work? Some observers are skeptical. "They are underestimating the difficulties of getting into the emerging markets at that scale," says one analyst.

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