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Subject:
FOOD COMPANIES
Period: November 15, 2015 to December 1, 2015
Geographies:
Worldwide
Categories:
Comment & Opinion or Companies, Organizations or Consumers or Controversies & Disputes or Deals, M&A, JVs, Licensing or Earnings Release or Finance, Economics, Tax or Innovation & New Ideas or Legal, Legislation, Regulation, Policy or Market News or Marketing & Advertising or Other or People & Personalities or Press Release or Products & Brands or Research, Studies, Advice or Supply Chain or Trends
Contents
 
Companies, Organizations  

KFC Test-Markets Smartphone-Based Home Delivery

KFC has begun testing fried chicken delivery at 60 restaurants in San Francisco and Los Angeles. The company has partnered with food delivery app Door Dash. Customers may order food using their smartphones or the Door Dash Web site. It is expected that the test will expand to Houston, Texas, by the end of the year, bringing the total of stores involved to 100. A KFC delivery initiative failed several years ago, but this is the first time the company is working with a high-tech delivery service.

"KFC now delivers fried chicken to your doorstep", Mashable, November 12, 2015

Unilever Sees Failure As Tool For Promoting Innovation

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

CMOment: Marketing technologists

The Economist Group, November 16, 2015

Kold Winter for Keurig

Bloomberg Gadfly, November 19, 2015

Unilever to search future business leaders

Pakistan Observer, November 24, 2015

Market News  

Consumer Acceptance Of Plant-Based Dairy Products Boosts WhiteWave

Plant-based dairy company WhiteWave Foods, a spinoff of Dean Foods, is riding a trend of health-conscious shopping and nontraditional diets to increased profits. WhiteWave, maker of almond- and soy-based milk products like Silk, expects adjusted 4th quarter EPS of $0.34 to $0.35. The company also increased the full-year EPS guidance to $1.17 to $1.18 from $1.14-$1.17, beating consensus estimates of $1.15. WhiteWave cited cost leverage, higher productivity, improved commodity and other cost overlaps, and increased contributions from acquisitions as key drivers of better financial performance. Dean Foods, meanwhile, posted a 3rd quarter EPS of $0.30, up from a $0.03 loss year ago, thanks in part to a 30 percent decline in milk costs.

"WhiteWave, Dean Foods Rise On Cheaper Milk, New Diets", Investor's Business Daily, November 09, 2015

Upstart Indian FMCG Pins Growth Plans On Consumer Insights

A small but ambitious Indian FMCG company with roots in retail believes it may have a marketing edge on the entrenched big brands that dominate the retail universe in the country. Future Group believes that its understanding of Indian needs and preferences will make a big difference. The company has learned that cheaper prices and fancy store displays don’t work as well as consumer insights. Consider body wash, for example, a product that does not sell well. Imported brands tend to be expensive and thick, made for consumers used to taking showers.  Future Group came up with a cheaper product, Think Skin, that is thinner and better suited for use with mugs and buckets. It is now a market leader.

"Can FMCG newbie Future Group take on biggies Britannia & Unilever?", Economic Times, November 18, 2015

Pinnacle Buys Foothold In Healthy Foods Market

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

Procter & Gamble Retains Crown As China's Most Popular Brand For Urban Households, Survey Shows

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 impressive gains of 5.4 percent and 3.7 percent, respectively, during the period.

"Who Are Winning More Chinese Consumers in 2015?", Kantar Worldpanel, November 25, 2015

PepsiCo India set to uncork the ‘good for you’ range

The Hindu Business Line, November 24, 2015

Marketing & Advertising  

Walmart Slotting Fees Will Hurt Smaller Brands With Little Room To Maneuver

Last June Walmart announced it would change payment terms and charge fees, including slotting (shelf space) fees and distribution center fees. It was a setback for smaller marketers and suppliers who, it is felt, may have to compensate for the increased costs by cutting back on innovation and marketing, a bad move because brands need to advertise to survive. Larger suppliers, like P&G and Clorox, have more flexibility. They can pressure their own suppliers and find other ways to trim costs. A former retail executive says the big question for younger, smaller brands is whether to “jump into the Walmart game at all” or figure out some way to build the business through other channels, like Amazon.com.

"Hitting a Wall(mart)", Happi.com, November 09, 2015

Waitrose Unveils Two Customer-Focused Marketing Initiatives

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

Coca-Cola plans to test market with Sprite Zero now

The Economic Times, November 17, 2015

Luxury Kit Kats to go on sale in Japan

Channel NewsAsia, November 19, 2015

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