Walmart Accelerating Expansion of Small Stores

NEW YORK -- Wal-Mart Stores Inc. plans to accelerate the expansion of its smaller U.S. stores at a faster pace than that of its supercenters, according to an Associated Press report. The company will tether the small stores to supercenters, which will serve as mini warehouse hubs.

The plan is part of Walmart's efforts to cut costs and was announced at its annual analysts' meeting this week. Walmart will roll out this distribution strategy in the first of three markets in March, although it did not say where. It is currently testing certain aspects of the strategy in regions such as Gentry, Ark., where it operates a Walmart Express store that is less than one-tenth the size of a standard supercenter.

Walmart also plans to add approximately 300 smaller format stores, especially its Neighborhood Marketstores, during the current fiscal year and the next fiscal year combined. During the same time period, it plans to add only 240 supercenters. Neighborhood Markets carry fresh produce, meat, household supplies, beauty products and more and occupy about 38,000 square feet, while supercenters carry food and general merchandise, including clothes and home furnishings, and occupy about 182,000 square feet.

Most of the company's approximately 4,000 U.S. stores are supercenters. Walmart operates around 300 Neighborhood Markets and 20 Walmart Express locations.

During the meeting, Walmart CEO Mike Duke called the current economy "tough and unpredictable" and stated that the government shutdown has weighed on Walmart shoppers. "The government shutdown is on the minds of our customers," he said.

During the upcoming holiday season, Walmart plans to be aggressive about discounting across the store, make sure the right inventory is in stock and push its layaway program, according to the report.

Red Baron, Freschetta, Tony’s Kick Off College Football Season

This fall, Red Baron, Freschetta and Tony’s, three Schwan’s Consumer Brands, Inc.’s pizza brands, will sponsor college football for 15 universities. The sponsorship will feature tie-ins to the schools’ football programs through radio, digital activation and signage in select stadiums.

“Schwan’s Consumer Brands is delighted to celebrate such a wide range of college football programs this season,” said Bob Waldron, president, Schwan’s Consumer Brands. “Through the sponsorship, we aim to generate excitement for the programs, and engage fans through the tradition of great football paired with great pizza.”

Red Baron will be hosting a sweepstakes to award one fan per week $1,000 in cash to celebrate during the football season; as well as the “Get a Taste of the Tradition” photo contest, where each week one fan who uploads an image showing their favorite college football tradition will win Red Baron pizza for a year.

Participating schools include the University of Alabama, the University of Arkansas, Auburn University, the University of Florida, the University of Georgia, the University of Kentucky, the University of Mississippi, the University of Michigan, the University of South Carolina, the University of Tennessee, Vanderbilt University, the University of Minnesota, the University of Missouri, the Ohio State University and the University of Illinois.

Red Baron will use social media channels to promote the program sponsorship, with weekly posts on its Facebook wall and Twitter feed, digital ads on the universities’ websites, and email blasts. 

Hershey Launches First New Brand in 30 Years

HERSHEY, Pa. – The Hershey Co. is launching its first new confectionery brand in decades with the introduction of Lancaster caramel soft crèmes. This marks the first time the company has launched a new brand that is not a brand extension or acquisition in the past 30 years.

The brand will roll out nationwide in January. Lancaster is rooted in Hershey's heritage and inspired by Milton Hershey's original confection company, The Lancaster Caramel Co., Hershey said.

Lancaster Soft Crèmes are designed to provide a modern caramel taste experience to meet a growing consumer demand and are inspired by similar candies made more than 120 years ago by Hershey founderMilton Hershey, according to the announcement. The Lancaster Candy Co. was his first successful candy company and both established his reputation in the confectionery industry and provided the foundation for the launch of The Hershey Co., which first produced sweet chocolate as a coating for the caramels.

"The launch of Lancaster Soft Crèmes takes Hershey back to the early days of our founder Milton Hershey and his truly innovative spirit and desire to make great-tasting, high-quality products for consumers," said Steven Schiller, senior vice president, sweets and refreshment, The Hershey Co. "The Lancaster brand will delight all consumers looking for a rich and indulgent experience as they savor our new soft crèmes that are rooted in our company's deep history."

Hershey successfully introduced Lancaster Soft Crèmes in China earlier this year in its first brand launch outside the United States. The candies became available in May in three cities -- Wuhan, Hangzhou and Chengdu -- and will see a wider distribution in China in 2014.

Lancaster Soft Crèmes will be available in the United States in three flavors: Caramel, Vanilla and Caramel, and Vanilla and Raspberry. Eight-ounce bags will retail for $3.99 and 4-ounce bags will retail for $2.49.

A robust integrated marketing campaign is scheduled to support the launch starting in the first quarter of 2014.

Seafood Consumption Study Reveals Opportunities

Virginia Tech’s Department of Food Science and Technology has released research that examines consumer attitudes towards seafood culinary preparation. The work, sponsored by the Seafood Industry Research Fund (SIRF), was used in the development of educational videos that address gaps in consumer knowledge and barriers to purchasing seafood. 

“There are many seafood lovers out there who don’t even know it yet,” said Russ Mentzer, SIRF chairman. “For some, seafood can seem challenging. This research helps identify exact consumer concerns, letting us know where the industry needs to focus our educational efforts and how to reach new customers.” 

The research finds many consumers simply don’t know how to buy and prepare seafood at home. Further complicating things many are also confused about the health benefits. 

“This project epitomizes SIRF’s goals of research and action,” said Mentzer. “The research portion highlighted consumer stumbling blocks and the videos actively cover these reservations, providing the consumer with information and practical knowledge.”

The online videos give viewers a synopsis of seafood’s health benefits and the various types of seafood available, in addition to demonstrations on various seafood preparation methods with advice on techniques and food safety. 

Dunkin’ digs into deep product pipeline

BOSTON — The launch this week of Angus steak and cheese wraps are just the latest example of the deep limited-time offering product pipeline at Canton, Mass.-based Dunkin’ Donuts, Inc., said Paul Carbone, chief financial officer.

“Two years ago, we launched the Angus steak breakfast sandwich and it was a success,” Mr. Carbone said during an Oct. 2 presentation at the Wells Fargo Retail and Restaurant Summit. “We also launched the Big N’ Toasted, which was bacon and fried egg; that was a success.

“Three months ago, we launched the Angus Big N’ Toasted. So we took a protein that worked and a carrier that worked, and we put them together. It was a very big success. We launched tuna and chicken salad a couple years ago. About six months ago, we launched tuna and chicken salad wraps. And now we have the Angus steak and cheese wrap.

“So we’re constantly taking winners — the protein itself, carriers — and interchanging them. This is the idea of winning begets winning.”

The latest limited-time offering features a full portion of Angus steak wrapped in a warm, 8-inch tortilla. The wraps are served with white cheddar cheese and the choice of either barbecue or ranch sauce.

Mr. Carbone said most limited-time offerings are just that — limited time. The items may appear for a couple months before disappearing and then reappearing 9 or 10 months later. There are exceptions, though, such as the Big N’ Toasted, which Mr. Carbone said has “earned their right to be on the menu.” Another item that now is offered as a staple is the turkey sausage breakfast sandwich. Introduced in January, the sandwich was a “huge success” as part of the DDSMART menu.

“But we’re pretty rigorous about on and off, and then they come back 10, 12 months later,” he said.

Not all new products are a success, but the misses at Dunkin’ at least have been few and far between, Mr. Carbone said.

“We have a robust testing,” he said. “I am happy to say that over the last three years we had one swing and a miss. It went through testing. It tested well. We came out, it was like a stuffed breadstick. Think of it as a Hot Pocket-type of product, and it tested well. It came out and it did just okay, below what our testing said. And that was our one big item that didn’t kind of live up to our expectations.”

Going forward, Dunkin’ plans to continue to focus on new products as opposed to value, with new products the key to driving traffic to the stores. For example, the company recently introduced a roast beef pretzel roll sandwich that has been an “absolute success,” Mr. Carbone said.

“It’s not like we ignore value, but it’s all about differentiated product,” he added.

General Mills, Hershey’s sweeten partnership

MINNEAPOLIS — General Mills, Inc. has partnered with The Hershey Co. to introduce a dozen new baking products, including a new line of cookie mixes, cupcake mixes and frostings made with such candy flavors as Hershey’s, Reese’s and Almond Joy.

“We are very excited about our continued partnership and the launch of all these new flavors,” said Jared Pippen, associate marketing manager for Betty Crocker. “Our consumers love the new combinations and that we have created a sweet to match the style, including favorites such as s’mores, Cookies ‘n’ Crème, and Reese’s.”

The three new cupcake mixes — Betty Crocker Hershey’s Chocolate, Betty Crocker Hershey’s s’mores, and Betty Crocker Reese’s Peanut Butter and Chocolate — are available in 15.4-oz packages and have a suggested retail price of $2.79.

The three new cookie mixes — Betty Crocker Hershey’s Chocolate Chunk, Betty Crocker Hershey’s Cookies ‘n’ Creme and Betty Crocker Reese’s Peanut Butter and Chocolate Chunk — are available in 12.5-oz packages with a suggested retail price of $2.59.

The six new frosting flavors are available in 16-oz tubs at a suggested retail price of $2.59. The flavors are: Betty Crocker Hershey’s Milk Chocolate, Special Dark, Chocolate Caramel; and s’mores and Cookies ‘n’ Creme with sprinkles; and Betty Crocker Peter Paul Almond Joy.

9/13/2013 - by Eric Schroeder 

Most consumers prefer new products under familiar brands over new brands

When it comes to product innovation, U.S. shoppers aren’t really looking for companies to reinvent the wheel. In fact, companies are more likely to succeed in a competitive marketplace if they build on established brands consumers already know and trust, according to Nielsen. Reporting results from a recent global study, the New York-based market research firm said 62 percent of U.S. consumers prefer to buy new products from a familiar brand than switch to a new brand.

Although brand familiarity is a key consideration among U.S. shoppers, it’s not deal breaker, Nielsen noted. The company noted that U.S. consumers are open to new products — but value and proof of concept are strong purchase motivators. More than two-thirds (64 percent) of U.S. survey respondents said they would consider value or store brand options, and two thirds will wait until a new innovation has proven itself before making a purchase.

Nielsen added that although U.S. consumers like what they know, 61 percent of them said they like when companies offer a new product, and 57 percent said they’re generally willing to consider purchasing a new product. Successful products also are likely to benefit from strong word-of-mouth advertising, as 54 percent of respondents said they like to tell others about the new items they purchase.

“Consumers are enthusiastic about adopting new product innovations, but they’re somewhat apprehensive about embracing new brands,” said Rob Wengel, senior vice president at Nielsen Innovation Analytics. “In order for consumers to adopt new brands, marketers need to launch strong awareness and trial-building campaigns, supported by a positive product experience. Generating positive word-of-mouth endorsements are important, because negative experiences can significantly diminish the likelihood of new product success.”

For more information, visit www.nielsen.com.

Five steps to capturing the Hispanic market

Some say the Hispanic market may be the last true growth opportunity in food. Most U.S. firms have a major corporate goal to attract Hispanic consumers, given their tremendous demographic and economic importance. Some companies, such as McDonald’s, Budweiser and AT&T, spend significant resources to gain market share with Hispanics and are making inroads. But it’s not easy, says a Nielsen report issued last year.

A Nielsen report from 2012 indicates that “Hispanics are the fastest growing ethnic segment, and are expected to grow 167% from 2010 to 2050, compared to 42% for the total population.” The report also found that Hispanics “will be the dominant and in many cases the only driver of domestic CPG sales growth.” Given their tremendous demographic and economic importance, most U.S.–based firms have a significant corporate imperative to attract Hispanic consumers.

With this new business reality, the Hispanic market may well be one of the last significant growth opportunities left in the U.S., particularly in the consumer goods and service industries.

So, how do you capture this often elusive market? A well-crafted, data-driven strategy is the first step in reaching the Hispanic marketplace. The process must include a marketing, strategy and financial assessments to comprehensively assess the Hispanic opportunity, which results in outputs that frame the size, scope, and process required to win with Hispanics, as well as clear financial contributions and investments.

So remember to : Define clear goals and objectives to win with Hispanics; hyper local strategies are critical; deploy your best people, use world-class analytics and partners; and keep in mind that the Hispanic strategy is a change management imperative.

As Monica Gill, senior vice president, public affairs and government relations at Nielsen, sees it: “Latinos are emerging as a powerhouse of economic influence, presenting marketers an increasingly influential consumer group that can translate into business impact. The key is recognizing that today’s modern Latino is ‘ambicultural,’ with the ability to seamlessly pivot between English and Spanish languages and to embrace two distinct cultures. Understanding how to connect with this unique consumer profile will be key to successful engagement.”

The report puts into perspective that Latinos are no longer just a sub-segment of the economy, “but a prominent player in all aspects of American life.” To that end, what’s needed is a comprehensive approach to creating a Hispanic strategy that highlights a deep understanding of brand building for Hispanics and their critical voice across social media platforms, as well as a “traditional” understanding of the need to approach this group in a highly-targeted and micro-localized fashion, using a test-as-you-go approach to determining best practices.

Source: www.forbes.com

American consumer likes to indulge in Sweets

The American consumer likes to indulge in sweets. While portions might be getting smaller and people may be more health conscious, there is no doubt that a majority of Americans still have a sweet tooth.

According to Nielsen Perishable’s Group’s FreshFacts, for the 52 weeks ending June 29, 2013, Breakfast Bakery volume sales increases are driven by Muffins (+5.7%) and Sweet Goods (+4.7%) while the Dessert category increases are driven by cupcakes (+9.6%), Pies, (+9.1%) and Specialty Desserts (+5.6%).

Global influences, along with an ever expanding taste pallet for American consumers are trends that are evident in the bakery as well.  Specifically, Hispanic Sweet Goods volume sales are up +3.2%, Specialty Dessert Cakes are up +7.8% and Specialty Dessert sales are up +5.6% proving that sweet goods still sell and will continue to do so in the future.

Retailers can take advantage of the US consumer’s desire for sweets by understanding shoppers, innovating to create value beyond price and communicating that value to shoppers.

Pillsbury gives dough a gluten-free makeover

MINNEAPOLIS — News that the Food and Drug Administration has defined “gluten-free” could not have come at a better time for General Mills, Inc., which on Aug. 6 introduced its first-ever line of refrigerated gluten-free dough through its Pillsbury brand. The new offerings include a gluten-free chocolate chip cookie dough, a gluten-free thin crust pizza dough, and gluten-free pie and pastry dough.

“We’re excited to welcome the gluten-free community back to the fresh dough aisle,” said Rebecca Thompson, marketing manager for Pillsbury fresh dough innovation. “Pillsbury gluten-free dough provides so many possibilities and makes enjoying meals together easier. As a company, we are committed to the gluten-free community and to providing great-tasting, easy-to-prepare products from brands they trust.”

The gluten-free products are:

•Pie and pastry dough: 15.8-oz tub, makes two 9-inch pie crusts, 250 calories per serving, suggested retail price of $4.99. 
•Chocolate chip cookie dough: 14.3-oz tub, makes approximately 16 2-inch cookies, 110 calories per serving, s.r.p. of $4.49. 
•Thin crust pizza dough: 13-oz tub, makes one 10-inch pizza crust, 170 calories per serving, s.r.p. of $4.99.

To help kick off the product launch and inspire baking, Pillsbury has partnered with the Iron Chef, cookbook author, television personality and mom Chef Cat Cora. Ms. Cora has created 10 recipes using all three dough varieties. Her gluten-free recipes include snacks and meals for a variety of occasions. The recipes are available atwww.Pillsbury.com/CatCoraGlutenFree.

Pillsbury also has partnered with “Gluten Free Guru” Danna Korn, a bestselling author, and the founder of Raising Our Celiac Kids (R.O.C.K.). She has been an advocate for the celiac community and living a gluten-free lifestyle for more than two decades.

“My passion is to help people learn to live and love the gluten-free lifestyle,” Ms. Korn said. “Going gluten-free is a life-changing experience for most people, and it’s common to feel a loss of convenience and accessibility to great-tasting foods. For Pillsbury to come out with easy-to-make, delicious products that are widely available is a game changer, and I couldn’t be more thrilled.”