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| Companies, Organizations |  | | | German discount grocery chain Lidl – already a huge success in the U.K. – plans aggressive expansion in the country in 2016, adding 40 to 50 stores. The $2.3 billion growth strategy is another blow to Big Grocery in the country, where national chains like Sainsbury are losing revenue and market share in what has turned into a damaging price war. Lidl has 629 stores in the U.K., and plans to more than double that number over the next couple of years. In addition, Lidl’s new stores will start to look a little more like the higher-priced competition, with wider aisles, self-check-out technology, and baby changing stations. Sainsbury’s profits dropped 18 percent in the six months ending in September. Lidl’s profit rose 21 percent in... More "Lidl set to open 50 shops next year in £1.5billion challenge to the high street supermarkets", Mirror, November 12, 2015 Modern technologies that allow ad-weary consumers to avoid advertising on TV and online have got marketers very worried. One of the biggest, Unilever, is no exception, as one of its media mavens said in a recent podcast. “We’re having genuine issues over how to reach our consumers,” said Babs Rangaiah. Among the technologies impeding efforts to get the message to potential customers are DVRs and ad blocking. Rangaiah, however, says ad blockers may be a cloud with silver lining. They may get advertisers to improve online ads that create a poor user experience, hog bandwidth and sometimes infect devices with malware. To improve the online ad experience, Unilever works directly with platforms (i.e., Google, Facebook) “to create... More "Unilever’s Babs Rangaiah: 'There’s a crisis in the ad business.'", Digiday, November 06, 2015
The Living Wage Foundation has formally acknowledged that Unilever pays its entire U.K. workforce a living wage. The company is also committed to encouraging its suppliers to pay a living wage. The Foundation says the accreditation of Unilever as a living wage company means that more than a quarter of the Financial Ttimes Stock Index (FTSE) 100 are now part of the living wage movement. More than 2,000 other British businesses voluntarily pay the living wage rate based on the real cost of living in the U.K.
"Unilever signs up to Living Wage Foundation", Press release, Unilever, November 02, 2015 | Citifmonline, November 11, 2015 Evening Standard, November 10, 2015 How We Made It In Africa, November 08, 2015 Bloomberg Business, November 07, 2015 Digiday, November 05, 2015 | |
| Consumers | | | |
Nielsen research finds that shoppers aren’t particularly loyal to CPG brands, especially if there’s money to be saved. A June 2015 survey shows that 60 percent of shoppers check out sales, coupons and other promotions online or on their smartphones before heading to a store to buy CPG goods. Another 28 percent are enticed by e-mails to visit online shopping sites. And 26 percent said they always compare prices online before heading to the store. More than any other type of influence, coupons influenced brand decisions for 15 percent of grocery shoppers.
"Coupons and Deals Are Major CPG Influencers", eMarketer, November 19, 2015 The main consumers of energy drinks are men, suggesting a connection between “masculinity ideology” and energy drink use, according to a U.S. study. Drinking energy beverages may be a way of “performing masculinity... a way to raise masculine capital." The researchers analyzed data from 467 adult males who were asked if they agreed with statements that suggested traditional masculine attitudes. They also asked what participants expected from energy drinks and whether they felt that the drinks affected sleep patterns. Young white men especially associated the drinks with participation in extreme sports or leading an active and competitive lifestyle. But the researchers warned that the high caffeine content of the drinks can have... More "Moderated mediation of the relationships between masculinity ideology, outcome expectations, and energy drink use.", Health Psychology, November 04, 2015 As the fascination with home-cooked meals grows, consumers are showing renewed interest in soups, broths, and stews, hot or cold, and soup companies are responding. Consumers don’t mind paying more for convenience and quality ingredients, according to industry watchers. (Slow cooker sales have risen as well.) Campbell’s response to the trend provides an example. It has created a K-cup soup for Keurig coffee machines and a variety of soups for slow cookers. The company released 28 new soups that feature bolder flavors, healthful ingredients, unusual recipes and a variety of packages. New versions of Chunky Soups can be prepared quickly and poured over mashed potatoes or rice. Also unveiled; new Swanson concentrated broths, some salt... More "Flavor Trends: Soups Ladle Up the Flavor", Food Processing, November 02, 2015 | Forbes, November 22, 2015 The Guardian, November 03, 2015 NC State University, November 02, 2015 Trendwatching.com, November 01, 2015 Voice of America, October 30, 2015 | |
| Innovation & New Ideas | | | |
A Houston bakery has created a piecake that some have dubbed the “turducken” of desserts.Or, like Frankenstein’s Monster, the Pumpecapple Piecake is a blend of body parts: three different pie layers and three different cake layers stacked to make a 12-inch, 23-pound supercake frosted with cream cheese, chopped pecans and topped with caramel. The bottom layer is apple pie and spice cake, then pecan pie and chocolate cake, then pumpkin pie baked into a pumpkin-spiced cake At first the shop could only turn out 300 of the pastries, requiring the baking of 900 cakes and 900 pies prior to final assembly. But increased demand has warranted increased baking capacity.
"Pumpecapple Piecake: The turducken of cakes lives up to the hype", Fox News, November 10, 2015
Italy’s Barilla Group has launched a pasta for people in a hurry. Barilla Pronto goes from cold to “al dente” in 10 minutes because it requires no boiling and no draining. It is simply placed in a 12-inch skillet, covered with three cups of cold water, then cooked over high heat until the water is absorbed. Barilla Pronto comes in five varieties including elbows, half-cut linguine, penne, half-cut spaghetti, and rotini, and is available now in leading grocery stores across the U.S.
"Barilla Changes The Way You Think About Pasta. Pronto.", News release, Barilla Group, October 20, 2015 | Industry Week, November 03, 2015 BeverageDaily.com, November 03, 2015 Mintel, November 02, 2015 Advertising Age, October 28, 2015 | |
| Legal, Legislation, Regulation, Policy | | | | Health food marketers may think of China as a sort of “promised land” of sales opportunities, if a Chinese food industry five-year plan is to be believed. By 2019, health food sales in the country are expected to reach $48 billion, for several reasons: a growing overall obesity rate (up 67 percent between 2002 and 2012), a doubling of the obesity rate for children and adolescents, severe vitamin and mineral deficiencies, and mounting high blood pressure and cancer rates. Though Chinese consumers want high-quality foreign health foods, it’s still a daunting procedure for multinationals to get their products to market. It can take two to three years, and up to $15,800, to get one health food product registered under China’s blue hat... More "Chinese New Regulation for Health Food Products", Natural Products Insider, October 20, 2015
An executive agency of Britain’s Department of Health devoted to improving the country’s health and wellbeing has decided that the U.K.’s “sugar habit” cannot be solved by individual efforts and needs government intervention. In a new report, Public Health England associated high sugar consumption with obesity, which costs the National Health Service $7.7 billion a year. Among other suggestions, PHE recommended a 10 to 20 percent sugar tax and mandatory reductions in sugar content in foods. A quarter of adults, 10 percent of 4- to 5-year-olds and 19 percent of 10- to 11-year-olds in England are obese.
"Sugar Reduction: The evidence for action", Report, Public Health England, October 01, 2015 | Food Safety News, November 04, 2015 Nutraceuticals World, November 02, 2015 | |
| Market News | | | | A new report from the National Restaurant Association says Americans are growing more familiar with, and enamored of, unconventional international foods. At least 25 percent like to experiment with ethnic dishes. Ninety percent have tried Italian, Mexican and Chinese food, two-thirds know Mediterranean dishes, and half have tried Middle Eastern, Thai and sushi at least once. The cuisines of some nations, however, may be a little too exotic, or perhaps simply unavailable. Seventy percent are not at familiar with Ethiopian cuisine, and half don’t know anything about Korean or Brazilian/Argentinian food. But American testing of foreign foods is definitely on the rise: two-thirds surveyed say they eat a wider variety of ethnic cuisines... More "American diners have an appetite for ethnic cuisine", NRA report, SmartBlogs, November 21, 2015
Organic and natural products company Hain Celestial posted robust first quarter financial results, including $31 million in profit (up 67 percent over a year ago) on net sales of $687 million (up nine percent) increase. The company said both sales and profit were hurt by currency headwinds. CEO Irwin D. Simon said U.S. performance in snacks, yogurt, tea, and personal care brands was strong but “overshadowed by temporary disruptions from some of our distributor and retail customers as well as a decline in grocery brands.” For 2016, the company expects total net sales to reach $3 billion (up 15 percent), and profit per share to increase as much as 20 percent over 2015.
"Hain Celestial Announces Record First Quarter Fiscal Year 2016 Results", News release, Hain Celestial, November 05, 2015
Whole Foods Market, which once had a lock on the fresh and organic grocery segment, posted fourth quarter financials that failed to meet Wall Street expectations, sending its stock price downward and prompting a $1 billion stock buyback. The company’s sales were $3.44 billion, up six percent from a year ago, but less than the $3.47 billion analysts expected. Earnings per share were $0.16, less than half of the expected $0.34 per share. The key reason for the sour financial report, the company said, is “increasing competition” in the fresh and organic foods sector from conventional grocery retailers.
"Whole Foods Market Reports Fourth Quarter Results", News release, Whole Foods, November 04, 2015 | Euromonitor International, November 28, 2015 PR Newswire, November 12, 2015 Los Angeles Times, November 07, 2015 NewHope360.com, November 04, 2015 Japan Today, November 02, 2015 The New York Times, November 02, 2015 | |
| Marketing & Advertising | | | |
PepsiCo and smartphone food delivery app Caviar tried a Halloween marketing trick designed to boost awareness of Frito-Lay Cheetos and the app itself. The idea was to videotape the arrival of the Caviar food delivery – along with trickster Cheetos mascot Chester Cheetah – at unsuspecting customer residences, along with free samples of Cheetos. The customers’ startled reactions were then posted to social media sites. It’s not known whether there was any customer backlash, but the idea was to build Caviar name recognition while promoting the snack. An industry observer called it a “perfectly timed scare promotion” and “a great way to create that viral component that has shareable components."
"Cheetos scares Caviar users in trick-or-treat video series", Mobile Marketer, November 19, 2015
Supermarket company Morrisons said it plans to launch its own line of freshly made sandwiches. Part of the company’s efforts to grab a share of the expanding food-to-go market, the planned launch will involve training around 1,000 staff to make and sell 3 million sandwiches each year. Morrisons said this move would make it the first of the big 4 supermarkets to compete with high street “designer” sandwich chains.
"Morrisons takes on fresh sandwich chains with own offer", BakeryInfo.co.uk, November 03, 2015
Unilever combined the marketing departments for the company’s personal care and food and home units in Australia. As part of the reorganization, the company’s joint top marketing executives, Andrea Martens and Hugo Verkuil, are leaving Unilever. One of the biggest advertisers in the country, Unilever has a media spending budget of about $57 million, according to Nielsen.
"Unilever restructures, combines marketing VP roles into a CMO", AdNews, November 02, 2015 | The New York Times, November 06, 2015 Kantar Retail, November 04, 2015 The Korea Herald, October 28, 2015 Food Business News, October 26, 2015 Euromonitor International, October 23, 2015 Consumer Goods Technology, October 16, 2015 | |
| Press Release | | | |
Mitsui & Co., a large Japanese producer of non-GMO grains, especially corn and soybeans, has purchased a 50 percent stake in an American non-GMO grain producer. The company purchased half of the stock of Bluegrass Farms of Ohio, Inc., from CEO David Martin, who owns all of the stock. Established in 1988, Bluegrass has consistently specialized in non-GMO grains, supplying contracted growers with seed that it develops itself. The grains are selected and packaged for domestic and overseas sale as high-added-value products. According to Mitsui, demand for non-GMO grains in Japan and Asia is steady. The company has done business with Bluegrass for ten years and handles over 40 percent of Bluegrass products.
"Mitsui to Participate in Non-GMO Grain Origination Business in U.S.", News release, Mitsui & Co., October 19, 2015 | | |
| Products & Brands | | | |
More than two-thirds of American adults say they take dietary supplements, and a large majority (84 percent) believe supplements are safe, according to a survey sponsored by the Council for Responsible Nutrition, a trade organization representing dietary supplement makers. Americans have the most confidence in the vitamins and minerals category. The survey found that between 2014 and 2015, overall usage of vitamins and minerals and “specialty supplements” remained flat. Usage of “herbals & botanicals” and “sports nutrition & weight management” supplements grew five percent.
"Most U.S. Adults Take Dietary Supplements, According to New Survey", News release, Council for Responsible Nutrition, November 23, 2015
It may not be the “dessert to end all desserts,” but another new hybrid pastry, from North Dakota of all places, might spark some Internet interest as earlier hybrids fade into the mists of pastry history. The cookie doughnut isn’t a complicated idea, nor is it a demanding recipe: a standard cake doughnut forms the base, and eggless cookie dough – raw dough – replaces the glaze or frosting. For an added twist, the cookie doughnuts, or cookie dough-doughnuts, can be returned to the oven to “crisp up the cookie dough a bit.”
"PINS: The doughnuts dreams are made of", Grand Forks Herald, November 08, 2015
Lidl began selling wild-caught whole lobsters certified by the MSC. Launched in Lidl stores across the UK, the lobsters are sourced from a fisher in New Brunswick, Canada. Lidl has cooperated with the MSC for the past year to expand its range of certified sustainable seafood products. Forty-one percent of its wild seafood products are certified by the MSC, a 24 percent increase from 2014 level, with 100 percent of its fresh wild-caught fish MSC-certified.
"Lidl is first UK supermarket to offers MSC-certified lobster with Canadian catch", The Grocer, October 26, 2015 | BakeryAndSnacks.com, November 06, 2015 Yahoo! News, November 06, 2015 BrandChannel, November 02, 2015 Fresh Plaza, October 28, 2015 Business Insider, October 27, 2015 | |
| Research, Studies, Advice | | | |
A U.S. study reports that drinking beverages sweetened with high fructose corn syrup (HFCS) is associated with an increased prevalence and risk of chronic bronchitis in American adults. Adults who drink non-diet soda five or more times per week are 1.8 times as likely to develop chronic bronchitis as people who drink them only once or twice a month. And it doesn’t matter if smoking is involved. The researchers suggested that poorly absorbed excess fructose in the gut interacts with proteins to form antigens (“enFruAGEs”) that work their way to the lungs, triggering an immune response and causing bronchitis. More research is needed to prove the connection.
"Intake of high fructose corn syrup sweetened soft drinks is associated with prevalent chronic bronchitis in U.S. Adults, ages 20–55 y", Nutrition Journal, October 16, 2015
The Environmental Working Group reports that 86 breads and baked goods it analyzed contained a possible carcinogenic ingredient known as potassium bromate. The compound, linked in animal studies to cancer and development of tumors, is added to flour to firm up the dough, help it rise and give the finished bread an appealing white color. California is the only U.S. state that regulates potassium bromate. It requires a warning label on food containing it. Among the 86 products containing the potentially harmful compound are Hormel Foods breakfast sandwiches, Weis Kaiser rolls and French toast, and Goya turnover pastry dough.
"Scores of Baked Goods Contain Possible Cancer-Causing Additive", Report, Environmental Working Group, October 14, 2015 | The New York Times Magazine, October 29, 2015 Open Access Text, October 22, 2015 | |
| Trends | | | | Spending in China’s fast moving consumer goods (FMCG) market slowed in the year that ended in September, growing by only 4.7 percent, according to Kantar Worldpanel. For the third quarter, growth dropped to 2.7 percent, the lowest rate in three years, from 6.6 percent in the second quarter. Growth in hypermarkets, supermarkets and convenience stores grew only 2.4 percent in the third quarter. International retailers continued to struggle: market share slid from 14.5 percent to 13.5 percent. China’s local retailers fared much better. Sun-Art Group boosted market share to 7.5 percent, up from 6.9 percent in the third quarter of 2014. 2014Q3. Online shopping in China rose 37 percent during 2015, spurred by gains in penetration and... More "China FMCG market hits a new low growth", Report, Kantar WorldPanel, November 02, 2015 Online sales at CPG companies are growing three times faster than at other companies, mainly because they are finally taking advantage of the marketing opportunities presented by mobile devices. Researcher McKinsey says online sales will account for up to 30 percent ($50 billion) of total CPG growth in the next five years. The online research rate for some CPG products is astonishing: 45 percent for cereal, 55 percent for soap and 65 percent for cosmetics. For the future, successful CPG companies need to follow three winning practices: build strong account-management teams to serve strategic retail partners, develop next-generation e-category management, and build “digital quotient,” which McKinsey defines as an assessment of a... More "The digital future of consumer-packaged-goods companies", Report, McKinsey & Company, October 30, 2015 | Markets and Markets, November 01, 2015 The NPD Group, October 28, 2015 BakingBusiness.com, October 21, 2015 Nielsen, October 16, 2015 | |