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Cut Back On Plastic Packaging, Leading Manufacturers Hear From As You Sow

As You Sow, a nonprofit group representing 25 investment companies managing more than $1 trillion in assets, has called on Nestle SA, PepsiCo Inc., Procter & Gamble Co., and Unilever NV, to reduce their use of plastic in packaging of their products. Signed by investment managers, including Hermes Investment Management and Impax Asset Management, the initiative calls plastic packaging damaging to the environment. Companies should reveal their annual use of plastic packaging, establish goals for reducing plastic packaging, and exert efforts to recycle plastic packaging, the group said. [Image Credit: © Emilian Robert Vicol @]

"Investors Demand Nestle, Pepsi and Others Cut Plastic Use", Bloomberg, June 22, 2018

Innovation & New Ideas  

Coca-Cola Introduces Functional Probiotic Soft Drink To Japanese Market

Coca-Cola Japan has introduced its third product in the “Fanta Double Plus” line of functional soft drinks that contain "vitamins and seasonal ingredients". Limited edition Fanta Yogurtropical, containing vitamin B and “lactic acid bacteria” debuted in July at $1.26 per 16-ounce bottle, and 49 calories per 3.4-ounce serving. The range also includes Fanta Pineapple GABA, containing gamma-aminobutyric acid and vitamin B.

"Coca-Cola Japan's Fanta Yogurtropical - Product Launch",, July 10, 2018

Legal, Legislation, Regulation, Policy  

Europe’s Food Safety Agency Agrees With Unilever: Black Tea Improves Attention

Unilever announced that it is the first company to earn a positive scientific opinion from the European Food Safety Authority (EFSA) that validates the claim that black tea improves attention – “the ability to concentrate on, filter, and utilize incoming sensory information,” according to Unilever scientist Amelia Jarman. The company conducted three studies with volunteers who drank either black tea, tea-flavored water or colored water. After drinking black tea, attention scores were higher. One of the company’s studies showed that the stronger the tea, the higher the attention scores. The European Commission will review the EFSA opinion to determine whether Unilever will be granted exclusive rights to use the health claim for five years.

"Unilever receives positive opinion on health claim for tea from the EFSA", Unilever, June 26, 2018

Market News  

Coca-Cola Profit Soars 64 Percent In Quarter; Plans Tariff-Induced Price Hikes

Coca-Cola reported a second quarter profit of $2.3 billion – a 64 percent increase from a year ago – on an organic revenue increase of five percent (excluding currency swings, acquisitions and divestitures), helped by growth in sales of concentrates and higher prices for products. Overall sales slid eight percent from last year to $8.9 billion, thanks to divestiture of bottling operations. The company said it is raising prices on carbonated drinks in North America in response to rising freight rates and metal prices – “some broad-based push on input costs,” said CEO James Quincey – spurred by tariffs on Chinese imports. Drink volumes rose two percent, driven by double-digit growth in Coca-Cola-branded products. Volumes were up two percent in carbonated soft drinks and four percent for water, enhanced water and sports drinks.

"Coke Raising U.S. Soda Prices, Citing Tariffs", Wall Street Journal , July 25, 2018

Marketing & Advertising  

New Marketing Chief Takes Over At Nestlé Waters NA

Nestlé Waters NA marketing head Antonio Sciuto, credited with transforming the company’s digital strategy, has resigned and will be replaced by Yumi Clevenger-Lee. The change in leadership comes in the midst of a mushrooming sparkling water marketing war among Nestlé, Coca-Cola, PepsiCo, and smaller marketers such as La Croix. Nestlé is the market leader, after private label brands, commanding a 13.3 percent share in the U.S. Private labels have 31.2 percent of the market. PepsiCo and Coca-Cola have 3.3 percent and 4.5 percent, respectively, but have been spending heavily on marketing and have been gaining. Nestlé's share fell by 1.3 points in the year-to-date period through mid-June. Clevenger-Lee had been marketing director for the Latin American division of Cereal Partners Worldwide, a joint venture between Nestlé and General Mills.

"Nestle Waters taps new CMO amid sparkling water ad war", Advertising Age, July 31, 2018

Products & Brands  

Danone Introduces Fermented Milks, Yogurts Inspired By International Recipes

Danone has launched a range of fermented milks and yogurts in the U.K. that it says are “inspired by authentic recipes” from around the world. The two fermented milks (250 g, $1.95) in the Danone of the World lineup include an Indian-style Lassi drink and a Turkish-inspired Ayran drink. Among the yogurts are a Greek-style Straggisto yogurt (140 g, $1.30), a fat-free, high protein Icelandic-inspired Skyr yogurt (140g, RRP $1.30), and a Lebanese-style Laban yogurt, (250g, $1.95). A Danone spokesperson said the new products represent “a real market growth opportunity for retailers.”

"The Danone of the World yogurts launched", Retail Times, July 16, 2018

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