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| Comment & Opinion |  | | |
Unilever created an experimentation fund for business and innovation ideas that do not go through the usual research processes, according to Unilever senior marketing director Aseem Puri. Speaking at the Campaign Asia-Pacific’s 2015 Marketing Innovation Summit in Singapore, Puri said companies should see failure as opportunities for promoting innovation and entrepreneurship among employees. According to the executive, the company’s Unilever Foundry initiative seeks to promote partnerships with startups in creating and promoting innovations that can disrupt the FMCG market.
"Unilever at MIS: Brands must accept failure if they seek to innovate", Campaign Asia Pacific, November 23, 2015 | The New York Times, November 20, 2015 Bloomberg Gadfly, November 19, 2015 | |
| Companies, Organizations | | | | In France, a group of 39 companies, including retail giant Carrefour, is calling on the French COP21 presidency and all governments attending the United Nations Framework Agreement on Climate Change meeting in Paris to sign a global agreement that would help reduce greenhouse gas emissions. Seeking a deal that would help keep global warming at a maximum of 2 degrees Celsius, the companies believe that putting an economic value on carbon in major economic regions will help business leaders to see the impact of GHG emissions linked to their companies’ operating, investment, and R&D decisions. Some of the concrete steps being taken by these companies to improve sustainability include the use of active and passive energy-efficient... More "French companies act on climate ", Carrefour, November 26, 2015
A Connecticut ready-to-eat frozen pasta company has inked a distribution deal with 64-store grocery chain Big Y. Carla’s Pasta products to be sold at the Big Y stores include cheese ravioli, cheese tortellini, gluten-free penne and six cheese sacchettini, sold in a microwave bag that took ten years to develop. In addition, the stores will sell microwavable steam bag meals, which include mac and cheese, six-cheese ravioli with marinara, tortellini Alfredo and buttered noodles. The company also makes a line of frozen specialty raviolis in clam shell packaging. Carla’s was founded in 1978 by Carla Squatrito, who emigrated to the U.S. in 1968.
"Local Renowned Pasta Manufacturer Launches New Frozen Pasta Line at Big Y", PR Newswire, November 18, 2015
It’s a little early to tell, but it might be a sign of the times: the “hybrid” food trend morphing into a hybrid restaurant trend. A Fort Wayne, Ind., doughnut shop used to share space with a hot dog diner, but will now share with a Vietnamese restaurant. Mike’s Donuts and Pho Viet couldn’t be more opposite in cuisine. Doughnuts, after all, are loaded with sugar and fat. Vietnamese food – especially namesake pho soup with various vegetables – is fairly healthful eating. Also on the menu are noodle bowls, small salads, Vietnamese sandwiches, rice plates, appetizers, Vietnamese iced coffee, boba tea and more. Coming soon: beer and wine, if Pho Viet can get the appropriate licenses.
"Restaurant Notes: Vietnamese eatery opens in doughnut shop", News-Sentinel.com, November 17, 2015 | PR Newswire, December 03, 2015 Philippine Daily Inquirer, December 02, 2015 Economic Times, December 02, 2015 Nielsen, November 30, 2015 | |
| Consumers | | | | In China, there were 21 fast moving consumer goods companies reaching more than 100 million urban households during the year ending October 9, 2015, according to Kantar Worldpanel. Data from the market research firm revealed Procter & Gamble was able to keep its lead among all FMCG companies, reaching 153 million urban families, or 95.5 percent, during the past 12 months. China-based dairy companies Yili and Mengniu took the next two spots with 88.5 percent and 88.2 percent of urban households, respectively. In contrast, only 15 companies reached more than 100 million urban households in the country in 2012. Although P&G and Unilever kept their lead in the personal care and household care segments, Liby and Nice Group posted... More "Who Are Winning More Chinese Consumers in 2015?", Kantar Worldpanel, November 25, 2015
Following the lead of an innovative Tesco store manager in Lincolnshire, the British grocery retailer has decided to test market the idea of giving away free fruit to children at 15 of its stores. The stores will take part in a four-week trial during which boxes of apples, bananas and oranges will be placed at entrances for parents to give to children. Though Tesco says the test is based on altruistic intentions, a more practical agenda may be in play. The company is locked in a battle for customers with grocery discounters and online food shopping sites. It is also dealing with some bad press due to an accounting scandal and shopper perceptions of high prices and poor customer service.
"Tesco to trial free fruit for children", The Guardian, November 25, 2015 Two U.S. universities were each awarded $1 million by the USDA to create regional nutrition education “Centers of Excellence.” The money will be used by the University of Tennessee (Knoxville) and Utah State University to fund research into nutrition education and obesity prevention for disadvantaged children and families. The Knoxville Center will focus on reducing obesity by analyzing programs to identify facilitators, barriers, best practices, training and evaluation needs. Utah State will use its $1 million grant to compare the effectiveness of the Expanded Food and Nutrition Education Program (EFNEP) and Supplemental Nutrition Assistance Program (SNAP) programs on participants and non-participants of different ethnic and... More "USDA Awards $2 Million for Nutrition Education and Obesity Prevention Research", News release, U.S. Department of Agriculture, November 23, 2015 | The Grocer, November 27, 2015 The Grocer, November 27, 2015 The Grocer, November 27, 2015 Monell Center, November 25, 2015 The Harris Poll, November 19, 2015 Andrew Freeman & Co., November 06, 2015 | |
| Deals, M&A;, JVs, Licensing | | | |
In a move to diversify its product line to attract younger shoppers with healthier, less-processed foods, Pinnacle Foods will acquire Boulder Brands for $682 million. The deal, which includes $262 million debt and represents a 9.2 percent premium on Boulder’s November 23 stock price, will give Pinnacle, maker of old traditional brands like Duncan Hines and Vlasic Pickles, an entry into the trendy gluten-free, organic foods market. Boulder makes Udi’s gluten-free pizzas and Evol natural frozen dinners The Pinnacle-Boulder deal is the latest in a trend. General Mills Inc. last year paid $820 million – a 37 percent premium – for natural and organic snack maker Annie’s Inc.
"Pinnacle Foods to Buy Boulder Brands", The Wall Street Journal, November 24, 2015
U.S. Bankruptcy Judge Kevin Gross approved Albertsons Cos.’s plan to reacquire 33 stores it had to sell as part of the government’s requirements for approving its acquisition of rival Safeway Inc. In January 2015, the U.S. Federal Trade Commission approved the merger deal on the condition that the companies would sell 168 stores to preserve competition in the retail market in several Western states. Haggen Holdings LLC bought most of the stores; however, it struggled to make the stores work and had to close some of them.
"Albertsons to Buy Back 33 Stores It Sold as Part of Merger With Safeway", The Wall Street Journal, November 24, 2015 | SereLT.com, November 29, 2015 DDW The Color House, November 24, 2015 | |
| Earnings Release | | | |
Kroger Co., the No. 2 retail grocer in the U.S. after Walmart, reported higher-than-expected gains in third-quarter profit, thanks to tighter controls on costs coupled with strong sales. Wall Street expected 39 cents a share in profit and $25.2 billion in sales The company posted 43 cents in EPS, or a total profit of $428 million, up from $362 million, or 36 cents a share, in 2014. Revenue rose to $25.1 billion from $25 billion last year. The company’s forays into the natural and organic foods sector once dominated by specialty grocers have proven successful. CEO Rodney McMullen said the 3rd quarter results “demonstrate once again that our relentless focus on customers is the key to sustainable shareholder returns.”
"Kroger Reports Record Third Quarter Results", News release, Kroger, December 03, 2015 | | |
| Innovation & New Ideas | | | |
Retail consumer goods shops in Europe are testing the idea of zero packaging: selling products loose. Customers brings their own glass or plastic jars, recyclable cotton pouches, etc., and end up saving as much as 15 percent, London has Unpackaged, Berlin has Original Unverpackt, and now Paris has one hundred percent organic Biocoop 21. The shop is testing ways to sell 250 products without packaging, including yogurt, honey, olive oil, wine, body wash and health products. The idea not only saves shoppers money, it is good for the environment, helping to eliminate waste.
"Paris’s First 100% Organic, Zero Packaging Shop Opens Its Doors", Konbini, November 05, 2015 | Asia Food Journal, November 23, 2015 Wharton University of Pennsylvania, November 11, 2015 Food Product Design, November 05, 2015 | |
| Market News | | | |
Arkansas-based Tyson Foods has decided to close two old meat processing plants in Chicago and Wisconsin and move their operations to more modern prepared foods facilities. About 880 employees will be affected by the shutdowns over the next year. The company says the employees are being encouraged to apply for available jobs at other plants. Factors that led to the decision to close the plants included changing product needs, the costs of renovating the aging factories, as well as the distance of the Chicago plant from its raw material suppliers.
"Tyson Foods Inc to discontinue operations at two plants, 880 jobs impacted", Industry Leaders Magazine, November 20, 2015 Foods perceived by consumers as “naturally healthy” – so-called “clean label” items like oatmeal and spring water, free from adulteration or refinement – dominate the health and wellness category, Euromonitor says, though all categories are performing well. Naturally healthy is largest in world sales ($276 billion) and the fastest growing. New superfoods and beverages will contribute to a forecast growth of $69.2 billion by 2020. But that doesn’t mean other categories of health and wellness foods are fading. Fortified/functional offerings, for example, are showing healthy growth, especially those containing protein and energy. Gluten-free is becoming a food industry behemoth, and gluten-free versions or bread and pasta are making... More "Health and Wellness Market Performance 2015: What’s New?", Blog, Euromonitor International, November 17, 2015 | Boston Consulting Group, December 04, 2015 PR Newswire, December 03, 2015 J. Walter Thompson Intelligence, December 01, 2015 The Grocer, November 27, 2015 The Grocer, November 27, 2015 The Grocer, November 27, 2015 | |
| Marketing & Advertising | | | |
UK retailer Waitrose plans to launch two promotion campaigns. In partnership with sushi bars and counters company Sushi Daily, the retailer will open fresh sushi counters in as many as 50 of its stores across the country. Aimed at consumers looking for delicious and convenient food, Waitrose will offer delivery of on-the-go and food-for-later products. Also, to promote customer loyalty, the company is adding two batches of seasonal lines to its Pick Your Own Offers program for the holiday season.
"Waitrose Announces Two New Customer-Focused Developments", Retail Analysis, November 12, 2015 | J. Walter Thompson Intelligence, December 01, 2015 The Grocer, November 27, 2015 The New York Times, November 24, 2015 | |
| Products & Brands | | | |
In 2014, the United States was the largest market for private-label products, according to Euromonitor. Data from the market research firm revealed private label accounted for 67 percent, or $9.7 billion, of the $14.5 billion total sales. With private label accounting for only 16 percent of the bread market’s $22.8 billion total sales, the market offers more opportunity for growth.
"Top 50 Largest Private Label Markets", Euromonitor International, November 27, 2015
An Australian vitamin supplement company has launched a line of products that contain vitamin K2 for bone and heart health. The products, developed with K2Vital producer Kappa Bioscience, were launched by Swisse Wellness Pty Ltd. in the U.K. in October and will be introduced in Europe with the help of venture partner PGT Consumer Healthcare. K2MK-7 is highly stable and pure. Vitamin K2 is found naturally in foods containing animal fats, such as cheeses, eggs and butter. Multivitamin formulations containing fat-soluble compounds usually contain minerals, which cause stability problems. The Swisse Wellness version, however, is double-coated and microencapsulated to preserve stability.
"Swisse Wellness Launches Vitamin K2 Mk-7 in Multivitamin", Nutrition Insight, November 27, 2015
Barry Callebaut reports that it continues to make progress in the area of sustainable cocoa production. The company sourced 159,000 tons of sustainable cocoa in 2015, an increase of 21 percent over 2014, and trained 70,000 farmers in better farming practices. The company created the independent, non-profit Cocoa Horizons Foundation to “drive change in cocoa sustainability.” It developed a new range of sustainable cocoa and chocolate products, Horizons, to support farm productivity and community development programs. Products are traceable from farm to warehouse. The company also distributed sustainability premiums of $20 million to farmers and farmer groups.
"The Barry Callebaut Group – Chocolate Sustainability Report 2014/15", News release, Barry Callebaut, November 26, 2015 | FOODnavigator-asia.com, December 02, 2015 The Economic Times, November 30, 2015 The Grocer, November 27, 2015 Huffington Post, November 17, 2015 Fortune, November 16, 2015 Snack Food & Wholesale Bakery, November 13, 2015 | |
| Research, Studies, Advice | | | |
A large, 30-year study conducted among healthcare professionals found that coffee drinking was linked to a lower risk of death from heart disease, stroke, diabetes, neurological diseases and suicide. No association with reduced cancer risk was found, however. The risk of death was reduced by six percent among nonsmokers who drank at least one cup of coffee – either caffeinated or decaffeinated – a day. The greatest reduction in risk – 15 percent – was found among nonsmokers who drank between three and five cups a day. Controlling for age, alcohol consumption, BMI and other health and diet factors did not change the results.
"Association of Coffee Consumption with Total and Cause-Specific Mortality in Three Large Prospective Cohorts", Circulation, November 18, 2015 | Tech Times, December 24, 2015 The American Journal of Clinical Nutrition, November 25, 2015 EurekAlert!, November 12, 2015 European Food Safety Authority, November 12, 2015 | |
| Trends | | | |
Crowdsourcing software vendor Spigit says it is working with Unilever Foundry to help the company attract and connect innovators in sustainability. California-based Spigit is the Software-as-a-Solution (SaaS) platform that provides a single entry-point and connection mechanism for individuals, start-up companies and corporations who want to partner with Unilever Foundry and tackle its “challenges.” Applicants submit ideas to: improve global nutrition, imagine the “shower of the future,” boost access to toilet and sanitation solutions, and reinvent the laundry process to use less water. Since its founding in June 2015, Unilever Foundry IDEAS has received 300 proposals from entrepreneurs around the world.
"Spigit Powers Unilever Foundry IDEAS Innovation Platform", News release, Spigit, December 03, 2015
A U.K. restaurant booking service’s analysis of its three million-diner database finds that burgers are booming in 2015. Bookings to burger eateries increased from just 21 in 2014 to over 30,000 in 2015. Part of the reason is an increase in the number of burger restaurants in the country: Bookatable added 71 restaurants to its database this year. Other hot cuisines include Scandinavian, barbecue, South East, Welsh, afternoon tea, Greek, Japanese and Thai. Cuisines that fell out of favor: Nepalese, Pakistani and contemporary Italian. In terms of meal times, breakfast bookings increased 24 percent from 2014 to 2015, while brunch bookings rose 72 percent.
"Top British dining trends of 2015 revealed", The Food & Drink Innovation Network, November 30, 2015 It would seem to be a trend among affluent Americans – the Millennials demographic, actually – because it’s unlikely that anyone else could afford it. The trend is called “Friendsgiving,” and the idea is basically to stage a Thanksgiving dinner for family, then another one for single friends. If one Thanksgiving is expensive and time-consuming to provision and prepare, imagine two or even three. An example is the Riley family of Harrisburg, Pa., who prepare a big turkey and ham for 20 friends each year, each of whom brings a dish they cooked up. The idea, which exploded on social media over the past few years, has also caught on among grocery retailers. Some chains, including Peapod, created marketing campaigns and social media... More "'Friendsgiving' -- America's new Thanksgiving trend", CNN Money, November 25, 2015 | Mintel, November 30, 2015 The Grocer, November 27, 2015 Mintel, November 27, 2015 Mintel, November 25, 2015 Consumer Goods Technology, November 10, 2015 Financial Times, November 10, 2015 | |