see you in court
Posted by Dale Buss on November 13, 2013 01:29 PM
It may be difficult to argue with both Starbucks and Kraft packaged coffee businesses at the moment: Starbucks' brand is busting out beyond the brand's own coffee houses, while Kraft is on the cusp of a potentially exciting new CPG opportunity with McDonald's McCafe brand.
The only thing is, it just cost Starbucks $2.7 billion to get to this point. That's how much an arbitrator has ordered Starbucks to pay Kraft's corporate sibling, Mondelez International, as a result of their failed CPG-coffee partnership that ended in a dispute. It'll take all of Starbucks' cash on hand plus more to make the payment to Mondelez.
Kraft first did the deal to distribute Starbucks-brand packs of coffee in 1998, and by 2010 it had grown to a $500 million-a-year business, the Wall Street Journal reported. But Starbucks accused Kraft of not doing a very good job of displaying Starbucks coffee inside stores and of otherwise doing a poor job of marketing the Starbucks brand. That critique came in spite of the sales growth and after giving Kraft credit for its "world-class" capabilities. Continue reading...
chew on this
Posted by Dale Buss on November 12, 2013 04:37 PM
Annie's Homegrown caught lightning in a box with its line of organic macaroni-and-cheese products several years ago just as American moms were warming up to better-for-you foods for their kids. And while Annie's remains in an expansionary mode, there are new questions about whether it can continue its explosive growth.
For its part, Annie's is bullish, having just announced it expects to expand snack production and distribution as a result of buying a plant in Missouri that already has been the out-contracted source of most of its cookies and crackers for more than a decade. Annie's wants to add product lines and distribution under its Cheddar Bunnies and Bunny Graham snack offerings.
The purchase "is an attractive business opportunity that will help us go after the significant untapped growth and profit potential in our snack business," CEO John Foraker said during a recent conference call with analysts.Continue reading...
Posted by Dale Buss on November 12, 2013 09:24 AM
Samsung launches major soccer-based campaign for Galaxy 11 as new phase of its trial against Apple begins.
MillerCoors cans lime-flavored Miller Chill after poor sales.
Motorola plans lower-cost phone.
Anheuser-Busch endorses consumer reach of Facebook.
Coca-Cola vows to engage suppliers on "land grabbing."
Google relents on YouTube ad measurement and expands Glass features into music.
Kellogg runs into trouble with "distasteful tweet" in UK.
McDonald's plans broad attack on CPG coffee aisle.
Merck launches pet-diabetes campaign.Continue reading...
Posted by Sheila Shayon on November 11, 2013 11:01 AM
It’s a busy day for Starcom, Yahoo and Google as they shake up the status quo in ‘terms of service’ (TOS) and personalization.
A change in Google’s TOS, which went into effect on Monday, enables the online giant to post users’ images and recommendations in some advertisements, while Starcom and Yahoo are partnering to improve the digital video experience in general with greater ‘personalization and relevance.’
As the digital landscape wobbles under an escalating tonnage of content, the Publicis-owned Starcom media agency and Yahoo are joining forces to better leverage audience data to create and target video content across the web.Continue reading...
Posted by Dale Buss on November 6, 2013 05:42 PM
Kraft's Macaroni & Cheese long ago was identified by critics as a paragon of junk food wrapped in the guise of a comfort food. Sure, it was the favorite, filling and inexpensive lunch of many Americans—but it was rife with fat, sodium and artificial dyes.
Well, now Kraft can feel a bit better about its iconic mac-and-cheese offerings for at least a couple of reasons, one of its own doing and the other an outside endorsement. And considering both of them, Kraft now is sitting closer to the edge of a new dynamic in the CPG business in which brands let "natural" products speak for themselves.
Turns out that Kraft Mac & Cheese, apple slices and Nestle bottled water, a combination offered by Arby's, was deemed the healthiest lunch for kids by researchers in an update of a Yale study of childhood obesity. There's some confusion, MarketingDaily said, about whether such a combination actually is offered at any Arby's. But in any event, Mac & Cheese came out looking pretty good. (The worst combination meal, meanwhile, was a McDouble with french fries and Hi-C Orange Lavaburst from McDonald's.)Continue reading...
Posted by Dale Buss on November 1, 2013 06:11 PM
Well, it works for Starbucks. So why can't McDonald's also sell packaged versions of its McCafe coffee line in US supermarkets?
The struggling fast-food giant will begin testing just that idea next year in a deal with Kraft. The tests will include packages of whole bean and ground coffee as well as "single-cup" options, which typically include K-cups for Green Mountain Coffee Roasters' popular Keurig brewer. Test markets and pricing were not disclosed, Crain's Chicago Business noted.
"We want to work with McDonald's to help consumers enjoy McCafe premium coffee in the comfort and convenience of their own homes," Kraft Foods CEO Tony Vernon told analysts on a conference call, disclosing the test for the first time. Kraft will handle the marketing and distribution of the McDonald's brand coffee. McDonald's said in a statement it was "building on the momentum of our McCafe beverages in our restaurants by expanding these options," according to the publication.Continue reading...
Posted by Dale Buss on November 1, 2013 09:29 AM
Kraft and McDonald's team to sell McCafe packaged coffee.
FAA lifts most rules against use of electronic devices on flights.
AT&T explores acquiring Vodafone, reports say, but European outcry over NSA involvement hurts brand.
Air France seeks deep overhaul of Alitalia.
Amazon produces two original drama pilots.
Apple launches iPad Air.
Bonobos expands with new women's brand.
Buffalo Wild Wings' new pricing and service model builds confidence.
Century 21 handles "haunted houses" in campaign.Continue reading...
Posted by Barry Silverstein on October 16, 2013 03:02 PM
In little more than a year, some retail shelves may actually be able to identify consumers who are most likely to purchase certain snacks, thanks to Mondelez International. The $35 billion global foods giant, which spun off from Kraft Foods just over a year ago with a name intended to evoke "delicious world," markets such snack brands as Cadbury, Certs, Oreo, and Trident.
In 2015, the company plans to introduce "smart shelves" with sensors designed to detect the age and sex of consumers. Then, advanced analytics will associate the right type of snack product with each consumer, and a video display will target consumers with appropriate ads and promotions.
Mondelez wants to place its smart shelves as close as possible to the point of sale—right near the checkout aisles to track and possibly encourage last-minute impulse buys. Mark Dajani, the CIO of Mondelez, told the Wall Street Journal, "When people walk by, it's a missed opportunity. We must know how the consumer behaves in the store. ...Knowing that a consumer is showing interest in the product gives us the opportunity to engage with them in real-time."Continue reading...