FOOD & COSMETICS - Nutrition and cosmetics industries must clear up cosmeceutical confusion

The term cosmeceutical has always been controversial, but the blurring boundaries between the worlds of nutrition and cosmetics are highlighting divisions that neither industry can ignore.

• Ingestible products with cosmetic benefits are an emerging product category for both the nutritional and the cosmetics industries.
• Beauty yoghurts, anti-wrinkle drinks, and skin care supplements are all part of a market expected to be worth $2.5 bn by 2012, according to market research company Kline.
• However, the industries don’t seem to agree on what to call this emerging product category. For the healthy foods and supplements industry these products fall under the term cosmeceuticals, which for the cosmetics industry means something quite different.
• As these industries begin to work together to take advantage of this growing market, there is a dire need for some clear definitions.

Pharma and cosmetics boundary

• Cosmeceutical, for the cosmetics industry, describes products that sit at the boundary of cosmetics and pharmaceuticals.
• American dermatologist Albert Kligman is generally accredited with inventing the term in the late 1970s as something that does more than just colour the skin and less than a therapeutic drug.
• At present the term has no regulatory standing, and is used more in a marketing context to highlight formulations or ingredients that claim to have tangible effects on the skin’s structure and appearance.
• This definition has been adopted by market research company Euromonitor which defines cosmeceuticals as the blurring of cosmetics and pharmaceutical products which contain biologically active ingredients that have an effect on the user.
• An emerging class of active ingredients that fall into this category is neuropeptides, designed and constructed to block neurotransmission signals and therefore decrease muscle contractions, much in the same way as botox.
• These, like all cosmeceutical ingredients for the cosmetics industry, are topically applied.
• One point of controversy, from the view of the cosmetics industry, lies in how close they are to medicines; too big an effect on the physiology of the skin and they become a pharmaceutical product and have to contend with more stringent and expensive legislation.
• Other critics of the term claim it is misleading as it suggests there are inherent differences between cosmetics and cosmeceuticals that may not, in reality, exist.
• However, the growth of ingestible products that claim to have beauty benefits is highlighting even greater controversies associated with the term.

Nutraceuticals with cosmetic benefits

• For the healthy foods and supplements industry, cosmeceuticals means something very different.
• Cosmeceuticals here can be thought of as the merger of nutraceuticals (nutritional supplements) with cosmetics. In other words, a cosmeceutical is an ingestible ingredient for functional foods or nutritional supplements that has cosmetic benefits.
• Evidently this definition relies on the ingredient being ingestible, in direct contrast to the cosmetics definition which is based on the topical nature of the ingredient.
• Although for the nutritional industry ingestible products with beauty benefits all take the name cosmeceutical, for the cosmetics industry they have a number of pseudonyms.
• Nutricosmetics, beauty foods, beauty supplements and beauty from within appear to be almost interchangeable within the product literature, marketing claims and market research reports. However, outside of the nutritional industry, one label these products do not sport is cosmeceutical.

By Katie Bird, 29-Jun-2009 - Cosmetics design.com

PRIVATE LABEL - peak has passed, says analyst

10-july-2009 (remember, 10 days ago we found PRIVATE LABEL - Consumers want more private label products (survey) ... which expert is right? make your comments!) Branded food and beverage manufacturers are fighting back against private label, according to a Bernstein researcher, and after a switch caused by price ‘sticker shock’ many consumers go back to their favourite brands.

• With the world in the grip of a deep recession and high food prices on shoppers’ minds, private label has looked like an unstoppable trend.
• Indeed, in mid 2008 private label was growing well ahead of the market, according to Eric Sher, research associate for European food at investment firm Berstein. But he believes that private label peaked last summer.
• In the four weeks to 24 May, private label goods saw 1.1 per cent growth. Although this remains ahead of market-wide growth, it was the 11th consecutive period of deceleration – and the worst growth period since tracking began.

Switch back

• “Private label gains share in a recession or when prices are up,” Scher told FoodNavigator.com. “Sticker shock” – consumers’ reactions to higher food prices, compounded by the recession – means people switch to private label.
• But after that the tendency is for the growth rate and market share gains to start decelerating. Some people may decide they don’t like it the private label version so much, or the sticker shock wears off on the next shopping trip.
• “People underestimate the power of brands,” Scher said.
• Moreover, big brand manufacturers have not been sitting back idly and watching private label steal their market share.
• The likes of P&G, Unilever and Reckitts Benckiser are investing heavily in innovation, and are coming out with value offerings of their own that are competing with private label directly.
• “They will come out of this mess a lot stronger,” predicts Scher. The underlying force is value; and he pointed out that it is not only the price of branded goods that increases when commodity costs are high. Since they are hit by the same high input costs, “in reality, private label products have increased in price too.”

Euro differences

• Bernstein’s analysis looks at the five biggest European markets – the UK, Spain, France, Germany and Italy.
• Scher conceded that Europe is a vast market, and there are great differences in the state of private label market between them.
• In Germany, for instance, he expects hard discount stores to remain a major force and continue to take share. But he pointed out that Nestle has actually launched some products especially for hard retail.
• The PPP strategy – popularly positioned products – is also useful in emerging markets: selling very low-priced single serve products, such as a single stick of coffee that allows consumer to buy the brand without paying the price of a whole jar.

by By Jess Halliday, 10-Jul-2009 - Food navigator.com

HIGH IMPACT - Evian wants to reach consumers worldwide in a way that traditional media cannot

Evian Natural Spring Water is looking to break-dancing babies to energize its brand. The upscale water brand, this week, is launching its new “Live Young” global advertising campaign. The ads, which will appear online in the U.S. and on TV in some overseas markets, look to project its values of health, youth and purity in a more playful way than in the past.

http://www.youtube.com/watch?v=prel7NlqJm8

• Evian has been struggling amid the recession in the U.S. Its sales volume sank 17 percent in 2008, per Beverage Digest. Evian holds only 0.6 percent of the bottled water market. With its high price, premium brands of bottled water like Evian are showing dwindling returns, said John Sicher, editor of Beverage Digest. “Evian has been flattish to down in recent years mainly because the category has moved more towards mid to low price brands.”
• Evian is hoping for a viral hit on the Web to launch the campaign in the U.S. It is posting the ad on YouTube as well as initiating a new Web site www.evianliveyoung.com dedicated to the campaign. Visitors can view two videos, digital teasers of break-dancing babies and “making-of” clips. “Interviews” with a few of the 96 babies filmed will be available, as well as links to Facebook pages created for the infants.
• In the ad, the message “Let’s observe the effect of Evian on your body” appears, followed by lively and happy babies break-dancing on roller-skates to a remix of the classic track “Rapper’s Delight” by hip-hop producer Dan the Automater. Euro RSCG is the agency.
• “The Web today has changed the way we communicate and in launching this campaign virally it allows Evian, a global brand, to reach consumers worldwide in a way that traditional media cannot,” said Jerome Goure, vice president of marketing for Danone Waters of America, the importer and marketer of Evian in North America.
• The ad will be aired on television in select countries outside North America. It will extend to consumer events around the world, including the Evian Masters Women’s Golf tournament in July and the US Open Grand Slam tennis tournament in August.
• Evian spent only $800,000 on U.S. media last year and $40,000 for the first quarter of this year, per The Nielsen Company.

Despite slowing sales, Evian shows potential, said Sicher. “Evian is a strong brand in some markets still. With the right marketing and distribution they should be able to perform more strongly.”

PROMOTION - Facebook Users Scoop Up Free Starbucks (Unilever) Ice Cream

To introduce consumers to its new ice cream, Starbucks and Unilever are offering free pints to Facebook users.

• From July 6 to July 19, participants can visit Apps.facebook.com/starbucksicecream. At the top of every hour, they will have a chance to give a pint of Starbucks ice cream to a friend or family member.
• Each hour, 800 pints will be given away, with a total of 280,000 for the duration of the promotion. While the promotion encourages participants to send the treat to friends, less generous users also have the option of simply sending the coupon to themselves.
• Users who don’t jump on the opportunity fast enough have to check back later if the supply of 800 has already been given away
• The promotion touts the four flavors of Starbucks ice cream, which debuted in the spring. Based on Starbucks beverages, the flavors are: Caramel Macciato (coffee and vanilla ice creams with swirls of caramel), Mocha Frappuccino (coffee and chocolate ice creams), Java Chip Frappuccino (chocolate ice cream with chunks of dark chocolate) and Coffee (coffee and espresso ice creams).
• Unilever signed a licensing agreement with Starbucks in September 2008 for the exclusive manufacturing, marketing and distribution of Starbucks ice cream.

written by Alex Palmer, Brandweek

GREEN INNOVATION - that saves money for both retailers and consumers?

Cutting both costs and carbon emissions, British supermarket Waitrose shipped its new range of ‘Virtue’ wines from Chile in 24,000 liter flexitanks and bottled them in the UK. One tank equals 32,000 bottles—or 16 tons of glass—that no longer need to be shipped. In addition, the bottles used are lightweight and made of 60% recycled material.

• Besides reducing carbon emissions, this shipping and distribution method lowers end-to-end production costs by up to 40%. Waitrose claims to be sharing these cost reductions with customers, charging GBP 3.99 per bottle. Currently on offer are a Merlot/Cabernet Sauvignon and a Sauvignon/Chardonnay, both from Chile. They’ll be joined by two Californian wines later this season, and Waitrose is looking to further expand the method to other countries it imports wine from.
• A green innovation that saves money for both retailers and consumers? Producers and retailers: it’s time to get virtuous ;-)

DANONE INNOVATES - as a social business

----- A unique community-based model -----

The mission of Grameen Danone Foods speaks for itself: to reduce poverty by bringing health through food to children using a unique community-based business model.

• A joint venture launched by DANONE and Grameen (the “Bank of the poor”) in March 2006, Grameen Danone Foods is a business—and as such must turn a profit—but its priorities are reversed.
• Grameen Danone Foods has placed social and environmental concerns at the heart of its business model. Although the company has to be profitable – profits from the first plants are needed to finance the construction of new plants – the success of the project will above all be judged on non-financial criteria: the number of direct and indirect jobs created (milk producers, small wholesalers, door to door sellers), improvements to children's health, protection of the environment etc…

----- Responding to the local nutritional needs -----

Combining the expertise of Danone in health foods and the experience of Grameen in micro-credits for deprived populations, in November 2006, Grameen Danone Foods launched a yoghurt called Shoktidoi, designed to provide a response to the nutritional needs of Bangladeshi children at an affordable price.

• Produced in the first Grameen Danone Foods plant in Bogra, inaugurated by Nobel laureate and Grameen’s CEO, Muhammad Yunus, DANONE CEO Franck Riboud, and French soccer star Zinédine Zidane, Shoktidoi is sold at a price of 5 BDT for each portion of 80g (ie 6 euro cents) and can be bought regularly by even the poorest families.
• At the same time, its composition has been specially designed to make up for the nutritional deficiencies that many Bangladeshi children suffer from. Reduced from cow's milk produced locally and date molasses, Shoktidoi contains the natural calcium proteins needed for growth and bone solidity.
• Also enriched in micronutrients, an 80 gram pot is enough to cover 30% of daily needs for a child in vitamin A , iron, zinc and iodine.

At the beginning of 2007, the independent NGO, GAIN, launched a trial designed to measure the benefits obtained from regular consumption of Shoktidoi. The Global Alliance for Improved Nutrition is an NGO whose purpose is to improve the nutritional standards of deprived communities.

----- Priority job creation -----

The whole of the production and distribution system of Grameen Danone Foods has been constructed with the clear objective of creating as many jobs as possible within the local community.

• In the Bogra plant, use of machinery is kept to a minimum in order to promote the use of labour which should mean that the plant will be able to employ 50 full-time workers within four years.
• Grameen Danone foods also relies on developing micro-farms which supply the raw materials (milk, sugar, date molasses) used to produce Shoktidoi.
• Local farmers also benefit from micro-credits offered by the Grameen Bank to start up or expand their businesses, while DANONE provides its expertise to help farmers improve the quality of their production.
• Lastly, Grameen Danone Foods has created an original distribution system based on the so-called "Grameen Ladies" who, supplied by small wholesalers, make sales door-to-door.
• This activity should provide income to more than 1,600 persons within a radius of 30 km around the plant.

----- Encouraging environmental protection -----

Protection of the environment for local communities and use of renewable energy are part of the community business model developed by Grameen Danone Foods.

• The Bogra plant for example has a solar water heater which supplies hot water used in cleaning the installation and preheating water for the main boilers.
• To reduce the risk of depleting groundwater levels, the site has also been equipped with a rainwater recovery system. ...

PACKAGING INNOVATION - Coca-Cola turns to packaging to boost beverage sales

Coca-Cola hopes that packaging innovation will help to differentiate its products and drive sales in the highly competitive US carbonated drinks market.

The company is experimenting with a range of new packaging formats, including aluminum, to combat falling sales in the US market for carbonated soft drinks.

“It’s a journey we’re on, and, frankly, I think we’re early into the journey,” said Ralph Kytan, vice president of Coke’s North American bottling operations, told The Atlanta Journal-Constitution. “Package diversity is about matching up the benefits of the package with the needs of the purchaser for the occasion they’re buying for.”

UK: CONSUMERS WITH SPENDING POWER are more responsive to ads on niche sites than portals

Only 12 per cent of consumers claim to often pay attention advertising on portal sites

• The majority of UK Internet users with spending power are looking beyond web portals in search of more dedicated content from specialist niche sites, according to The 2009 Online Advertising Attitudes Report.
• 56% of ABC1 adults are more likely to go to specialist niche sites dedicated to their interests than visit larger portal sites. 57% of consumers rarely or never pay attention to the advertising on major portal sites.

Commissioned by Addvantage Media, and conducted by YouGov, The 2009 Online Advertising Trends Report polled the views of a representative sample of 2,013 UK adults exploring their attitudes towards advertising online.

Going Beyond the Most Trafficked Sites

The 2009 Online Advertising Attitudes Report points to a wider trend in which web users are spending more of their surfing time on more niche sites dedicated to their interests rather than traditional portal sites.

• 50% of people prefer to regularly visit niche/specialist web sites that are dedicated to their specific interests, compared with just 46% who regularly visit larger sites.
• The extent to which consumers are deserting mass media portals is shown by the fact that almost a quarter (22%) of British consumers claim to only visit niche sites that are specific to their interests compared to just 2% who claim to only visit larger, generalist sites.
• A further third (34%) of British consumers spend the majority of their time visiting niche sites that are specific to their interests.
• In comparison C2DE consumers are more likely to visit larger sites (47%) than smaller sites dedicated to their interests (43%).
• Additionally, niche sites are the most popular destination online for British consumers aged 25-54, reinforcing their popularity with demographic groups with the most spending power.
• The key reason for this preference for niche websites appears to lie in a desire for quality content.
• Despite all the investment major internet portals have made in improving content, especially video, 41% of British consumers believe that niche sites relevant to their specific interests have the best content compared to just 29%for big web sites.
• There is a clear difference in web habits linked to wealth and associated spending power, with 32% of C2DE respondents claiming major portal sites have better quality content while 46%of ABC1 respondents believing niche sites have better quality content. -

“These findings raise serious questions about WHERE ADVERTISERS SHOULD BE PURCHASING INVENTORY if they are to be maximising their marketing budgets in the economic downturn”, said Harvey Sarjant, Managing Partner at Addvantage Media.

“Comscore reported last year that 75% of media consumption takes place outside of the top 1,000 websites but what this research reveals is the extent to which more affluent web users are surfing these niche websites. In a recession it’s particularly vital that advertisers avoid the traditional scatter-gun approach to ad placement and ensure that their advertising is speaking in a relevant way to the consumers with the greatest purchasing power.”

Research methodology

The 2009 Online Advertising Trends Report was commissioned by Addvantage Media and conducted by YouGov, polling a nationally representative sample of 2,013 UK adults aged 18+ in December 2008.

Written by Michael Leander Nielsen

ARE FACE BOOK / MY SPACE EFFECTIVE FOR ADS? see a UK research result

The research raised the serious questions about the effectiveness of advertising on social networking sites such as Facebook and MySpace.

• Of those who use large web sites only 12%claim to often pay attention to their advertising. A shocking 57%claim to rarely or never pay attention to the advertising on those sites. ABC1s are 19% less likely than C2DEs to pay attention to advertising on these sites
• For all the hype surrounding social networks and the marketing potential they supposedly present, they have yet to show any better ROI for display advertising than the major portals, according to the 2009 online advertising attitudes report.
• Of those British consumers who use social networks such as Facebook and MySpace, more than one in four (26 %) never pay attention to their advertising, and a further 36 % claim to rarely pay attention to it.
• Of the British consumers who visit niche/specialist sites, almost three quarters (73 %) say they pay attention to the advertising of which almost a third (32 %) claim to usually pay attention to the advertising.
• Harvey Sarjant comments, “As economic conditions continue to squeeze marketing budgets, some online advertising networks are looking to cut corners where possible as they try to protect and build their margins.”
• “What this research reveals however is that now more than ever it is vital that advertising networks are working closely with their clients to ensure that advertising inventory is both creative and placed in sites that will effectively engage online audiences.”
• “In the simple pursuit of trying to maintain margins using the same tactics and approach while budgets are being squeezed, brands will only continue to see response rates to their advertising dive as consumers continue to think much more intelligently about their relationship with advertising online and how it influences their purchasing decisions.” ---

Research methodology

The 2009 Online Advertising Trends Report was commissioned by Addvantage Media and conducted by YouGov, polling a nationally representative sample of 2,013 UK adults aged 18+ in December 2008.

Written by Michael Leander Nielsen

ENERGY DRINKS - One-shot energy drinks show bullish growth

By Shane Starling, 02-Jul-2009 Beverage makers are clamoring for market share in the nascent one-shot energy drinks market that is delivering uber-healthy premiums and attracting older consumers to the category, according to a US and UK-oriented report.

• One-shot drinks are winning over consumers because they deliver a clear single benefit – an energy payload – without consumers having to drink a 250ml or 500ml beverage, writes report author, Julian Mellentin.
• “The proposition behind energy shots is simple: From a concentrated potion of caffeine, vitamins and amino acids, consumers get the functional ‘bang’ that they receive from an energy drink but without having to consume a drink that tastes relatively unappealing – or consume nearly as much liquid,” Mellentin says.
• “With many energy-shot products, they also can avoid sugar, meaning that they can sidestep the ‘sugar crash’ that follows consumption of many energy drinks.”

Indeed the leading US brand – 5-Hour Energy – in television advertising promises, “hours of energy now, no crash later.”

ME-TOO

• Most one-shot energy drinks come in an 80ml format and have been launched by smaller niche players creating a situation where the likes of Red Bull, PepsiCo and Coca-Cola are having to play the “me-too” game.
• The most advanced western market – the US – has surged to $500m in five years according to estimates made before the recent entry of the beverage giants.
• "The recent entry of Red Bull, with Red Bull Energy Shot and Red Bull Sugarfree Shot, indicates the appeal of the new category,” says Mellentin, adding that opportunities existed in “virgin territory” such as Australia, parts of South America and the Middle East.
• Mellentin says opportunities exist for new brands to become dominant in these countries and many parts of Europe before the likes of Red Bull and Coca-Cola moved into the sector with all their marketing and distribution muscle.
• “America’s energy shots boom looks poised to cross the Atlantic – starting in the UK, which appears to be spearheading development of the category in Europe. In recent months, the UK has seen the launch of two new energy shot products, and more will almost certainly follow suit.”
• Red Bull, with US sales of about $700m after eight years and a 65 percent share of the energy drinks market, launched one-shot energy drinks in June.
• Living Essentials, owner of the 5-Hour Energy brand in the US, differentiated itself by self-consciously not marketing toward the 14-25-year-old males that are the core target for Red Bull and all other ‘regular’ energy drinks. It blatantly stated it would not target, “14-year-old skate punks”. 5-Hour Energy notched sales of about $170m for the year ended February, 2009, according to Nielsen stats.

UBER-PREMIUMS

• Mellentin noted premiums that can top 400 percent over regular energy drink formats that are themselves premium-priced over other regular carbonated beverages.
• “The packaging format conceals the extent of the price premium – and the cost per unit appears to be value-for-money for many consumers,” he writes.
• “Such products could never and should never be sold in 1-litre packs, because this would then make the extent of the premium very visible and cause consumers to question the value-for-money equation.”
• --> As Living Essentials creative director, Carl Sperber, is quoted as saying in the report: “…if you spent $3 … and it made you feel great for four to six hours, you feel that you didn’t waste a dime.” <--

Energy shots are also defined by their low-calorie status

a key factor in attracting diet-conscious older consumers and women of all ages. Other pros of the format include the fact the mini-size makes the product suitable for impulse, check-out retail positioning.

INNOVATION - In UK among all the innovative food products launched in 2008, 4 products out of 10 are positioned

The dynamics of this innovation are numerous and it is important to understand them well: in which country, throughout which categories, which new benefits, with which new ingredients, what scientific validity, which significant examples… ? To answer these questions, XTC world innovation has updated the study World Health Food Innovation Panorama. The aim of this study is to facilitate health food innovation with an overview of the worldwide innovative product offering including:

• Key trends and dynamics in food categories, worldwide and by country
• The segmentation of the health food innovative product offer
• An analysis of newly observed promises
• New ingredients or ingredients associated to different promises
• Illustrated examples of the most recent and significant innovations

BRANDS & PEOPLE - it is often said, are like people, BUT people are not as malleable as products

(found on JKR agency website)

Brands, it is often said, are like people.

Considering the hype over the potential “re-brand” of Andy Murray by 19 Management, one questions the truth of this analogy.

• Firstly, people are not as malleable as products: no amount of polishing and re-booting will give Murray the looks or charm of Beckham. In advertising he looks uncomfortable, and on court he looks angry. A new logo on his shorts is unlikely to change this inherent grumpiness.
• Another difference is that branding which is spiky is effective – better to provoke strong reactions in consumers than be so bland as to be overlooked.

However, we are less forgiving of people’s foibles, hence the carping about this “I’d support anyone against the English in soccer” Scot selling the quintessentially English Fred Perry emblem. What makes Murray an interesting person makes him a dodgy brand.

Meanwhile, Michael Owen’s management have taken the whole “person as brand” to its logical conclusion. Setting out his stall for potential brand fits in an entirely corporate and dreary manner, one can’t help thinking it all looked a lot more fun in “Jerry Maguire”. ...

MARKET RESEARCH - Fieldwork: Are you still afraid to work with on line panels?

A long time ago people where doubting that Telephone interview (CATI) would give acceptable results. Today, on-line is still frightening some Marketers or researchers.

--> Hereafter some interesting papers...

Moving Off- to On-line When a research study is moved from an offline methodology to online, results will change and, because they often change in unpredictable ways, weighting the online results to match old data can be a waste of time and effort.

HERE ARE SOME INSIGHTS

based on hundreds of projects moving from offline to online:

Biases exist with every methodology and when differences are seen after moving a study online, there are three likely sources:

Sample effects:

1. Non-coverage of cell phone households with telephone methodology or of non-internet with online methodology.
2. Non-response of people who won’t take phone surveys with telephone methodology or of people who won’t join panels with online methodology.

Mode effects:

1. Interviewer: With no interviewer present online, respondents may be more honest and less likely to give socially desirable responses, but may also be more likely to quit the survey without interviewer encouragement.
2. Visual v. aural: There is more use of end points on a scale when it is read to the respondent; more use of midpoints online when the entire scale is constantly visible.
3. Access: Less affluent respondents may have slower internet connections, making their survey experience different from that of other groups.
4. Visual cues: when switching from face to face to online, the visual cues in a home, which can provide additional data (e.g. product ownership) are not available.

Questionnaire Effects:

1. Use of graphics, variation in question wording and pacing can cause differences (online the speed of the questionnaire is dictated by respondent, while offline the interviewer controls it).

POINT OF VIEW

When moving projects online:

• Facts reported by respondents are unlikely to change; reported opinions and attitudes may change.
• Spontaneous awareness measures are likely to increase since online respondents can take longer to think without feeling pressured to give an answer or move on with the survey. Prompted awareness measures are unlikely to change
• There will be more use of midpoints, and more use of “don’t know” (less tendency to “agree” with the interviewer or invent something in order to appear “good” in the interviewer’s eyes.)
• The “social desirability” differences will vary in direction and strength depending on culture. In countries where internet penetration is low, sampling effects due to coverage are more significant.

RECOMMENDATIONS

When moving projects online:

• Run projects side by side for several iterations to compare results and help understand differences • Redesign the survey instrument. Don’t put a phone script up online.
• Always run a test of the new survey before launching the new questionnaire
• Expect differences, observe, document and understand them instead of weighting to old methodologies.

KFC Grilled Chicken Launch - An AMAZING SUCCESS

Despite, or perhaps because of a well-publicized stunt that involved promoting coupons for free chicken on Oprah for which it couldn't deliver, KFC's Kentucky Grilled Chicken launch appears to be a major success, judging by the company's financials.

• Parent company Yum's second quarter earnings, announced today, showed KFC sales went from a negative 7 percent in the first quarter to a positive 3 percent in the second quarter. Yum CEO David Novak called the launch the most successful in KFC's history and added that the item now accounts for 40 percent of KFC's chicken-on-the-bone sales. "Kentucky Grilled Chicken was a must-have for the brand to turn this business, and there's no question that it gives us a great platform going forward for growth," Novak told analysts in a conference call. "Consumers absolutely love this product.
• "KFC introduced Kentucky Grilled Chicken with great fanfare in April. In addition to a large ad campaign from Draftfcb, the brand also ran a promotion via The Oprah Winfrey Show that dangled a coupon for a free Kentucky Grilled Chicken meal. The chain faced some negative buzz, however, after many locations were unable to honor those coupons because of huge demand. Darren Tristano, evp of researcher Technomic, said the promo brought KFC priceless publicity. "It wasn't necessarily a misfire as demand exceeded expectations of the company," he said. "It created a demand, a buzz and a lot of free press. It gave a lot of people a reason to try it."
• Tristano said the launch is likely KFC's most successful ever, though the chain doesn't do as many new introductions as other fast feeders.

Written by: Todd Wasserman - Brandweek.com

US consumers think "natural" is greener than "organic", says survey

American consumers believe that a ‘natural’ label claim is a better indicator of an eco-friendly product than ‘organic’, according to a new survey from advertising firm the Shelton Group.

• Consumers are increasingly seeking out ‘greener’ products, and environmental sustainability has moved up among manufacturers’ priorities in recent years, as public awareness of the impact of their food on the environment has increased. But consumers have become more skeptical of manufacturers’ green credentials, accusing them of ‘greenwashing’, and are lacking the knowledge necessary to make the most meaningful choices at the grocery store.
• The Shelton Group conducted a survey of 1,006 US consumers and found that nearly two-thirds said they were looking for greener products when shopping. But when asked ‘How do you know a product is green?’ the top response was ‘don’t know/not sure’, at 22 percent, followed by 20 percent who responded ‘says so on the package/label’.
• Suzanne Shelton, president and CEO of the Shelton Group, said: “People are uncertain what to trust, so there's almost a ‘buyer beware’ attitude in the market.”

Organic perception

• Despite well-defined certification standards, organic products are among those that consumers distrust; 31 percent of respondents said ‘100 percent natural’ is the most desirable eco-friendly product label claim, compared to 14 percent who chose ‘100 percent organic’.
• Shelton said: “Many consumers do not understand green terminology. They prefer the word ‘natural’ over the term ‘organic,’ thinking organic is more of an unregulated marketing buzzword that means the product is more expensive. In reality, the opposite is true: ‘Natural’ is the unregulated word. Organic foods must meet government standards to be certified as such.”
• Meanwhile, the popularity of natural products has boomed, and it is now the leading label claim on new products, according to market research organization Mintel, featuring on 23 percent of new products launched globally in 2008.
• One company taking advantage of the consumer perception of the natural claim is Horizon, America’s largest organic milk brand, which has announced its intention to launch its first ‘natural’ (but not organic) products – a yogurt aimed at toddlers, and single-serve milk targeted toward children. The dairy products are produced conventionally, but the company said they are “naturally produced without added growth hormones, artificial colors, flavors or preservatives and no high fructose corn syrup.”
• The decision to launch its first non-organic products was driven by demand for foods that are “easier on the pocketbook”, the company said.

By Caroline Scott-Thomas, 06-Jul-2009 - FOOD navigator-usa.com

CADBURY - relaunches Trebor Mints. “Getting seen is half the battle, but ..."

By Mike Stones, 02-Jul-2009 Confectionery giant Cadbury is to relaunch its Trebor Extra Strong Mints and Softmints brands with new packaging designed by London-based design agency Jones Knowles Ritchie (JKR).

• The new Trebor Extra Strong Mints and Softmints products will become available in convenience stores and supermarkets this month.
• The confectionery manufacturer commissioned the designers to rejuvenate the two heritage brands. Cadbury’s senior brand manager Clare Tasker told the publication Design Week that briefed the designers to produce “eye-catching packaging that retains the no-nonsense brand characters,” for the two mint brands.

• The new packaging is designed to attract 35 to 55-year-old former consumers of the mints in addition to appealing to existing customers.

----- Stand out on a shelf ----- Andy Knowles, chief executive of JKR, said: “Since rollpack mints are the epitome of impulse purchasing, they have to have really strong stand-out on shelf.” He describes the redesigned packaging for both mint products as ‘a strong evolution’. JKR’s website (www.jkr.co.uk) explains that he company believes brands should project the things that make them different, rather than reflect the comfortable conventions of their categories. “Getting seen is half the battle, but we believe great branding must also convey your unique character at a glance,” according to the company. That means it's not enough to express yourself engagingly, originally and in a way that can only come from you. To be truly charismatic, the art is in making it all look effortless.” ----- Key dates -----

• Trebor Extra Strong Mints were launched in 1935 by the Trebor Confectionery Company.
• In 1989 Cadbury Schweppes paid ₤110.3m for the Trebor Group.
• Cadbury appointed JKR in February 2008 to work on the redesign. - Today, they are available in three flavours
• Peppermint/Original, Spearmint and Menthol.

PRIVATE LABEL - Consumers want more private label products (survey)

By Caroline Scott-Thomas, 30-Jun-2009 More than 90 percent of American consumers say they are likely to continue buying store brands even after the economy improves, and nearly half would like to see more of them, according to a new survey.

• Consumers have increasingly turned away from national brands towards private label, or store brands, as they have begun to feel the effects of the economic downturn. This latest survey, carried out in June, suggests that shoppers are sufficiently impressed by their quality to keep buying them.
• The poll, which was conducted by GfK Custom Research North America for the Private Label Manufacturers Association (PLMA), showed that 35 percent of consumers are trying private label products for the first time in categories where they once only bought national brands – and 94 percent said the store brand products compared favorably.
• “This positive experience makes shoppers eager for an even greater assortment of store brand products from which to choose,” said the PLMA.

Quality for loyalty

• The survey results add to a burgeoning body of evidence from market research organizations indicating the importance of quality in developing consumer loyalty to store brands.
• A host of earlier market research from The Nielsen Company, NPD Group, Brandweek and The Hartman Group, has pointed to a consumer quest for value in times of economic downturn, but the organizations are agreed that value encompasses more than price alone.
• Although the PLMA said that “the recession continues to influence shoppers’ decisions on store brands”, with 74 percent of respondents saying it is an important factor in their decision making, the organization has said that quality is key to sustaining private label growth.

Previous recessions

• In the 2001-2003 recession, private label’s unit market share climbed from 20 percent to 21.8 percent, according to the PLMA. Likewise, in the 1990-1991 recession, unit share for retailer brands moved up from 17.6 percent to 20 percent. And consumers tended to stick with private label even after the economy recovered.
• However, the results were quite different in the 1980-1982 recession. Private label market share climbed rapidly during that period, as retailers introduced many budget-priced ‘generic’ product lines with basic black and white packaging and low-quality ingredients. But these gains were short-lived, as shoppers were disappointed with quality and soon switched back to their favorite national brands, the PLMA said.
• Private label products account for more than $81bn in the US, with health and wellness claims including no trans fats, no saturated fats, multi-grains and antioxidants among the strongest-growing categories.

MARS' confidence for confectionery in the recession

By Sarah Hills, 30-Apr-2009 Confectioners are expected to benefit as shoppers change their behaviour in tough economic times and cut back on necessities for a little indulgence, according to consumer trends research from Mars Chocolate UK.

• Mars’ research indicates that the recession is changing people’s purchasing habits and they are going to the shops more often, which is creating more opportunities for impulse buying and affordable indulgence that confectionery taps into. They are also staying in more but without sacrificing a sense of occasion, which lends itself well to sharing formats such as pouch packaging.
• Mars has just published its latest market review and it said that last year the company saw a further increase in sales of its Bitesize products, as sharing confectionery was an “ideal way to enjoy a big night in”. Also the pouch format taps into a growing sharing sector as research shows that 70 per cent of chocolate consumption happens when with others.
• Meanwhile, Richard Peake, Mars UK Impulse Category Controller, said that people are indulging to survive the credit crunch. He added: “People are actually cutting back on what we call more basic and necessary items to allow them to continue to have more indulgences. “Years ago people used to save up to allow themselves to have indulgences. “Now there is instant gratification on indulges.” He said that for a category like confectionery, which is a low cost way to indulge, there was good reason why it was buoyant and resilient at the moment.
• Figures show that the confectionery market is worth more than the crisps, savoury snacks and fizzy drinks markets combined at £4.9bn, and grew 2.2 per cent in 2008.

-------------- Market view --------------

• The leading manufacturer in the confectionery market by share is Cadbury at 29.8 per cent, followed by Mars at 21 per cent.
• Sixty eight per cent of confectionery is bought on impulse, which is twice as much as soft drinks and three times as much as crisps.

-------------- Market opportunities ---------------

• Mars’ research indicates that consumers are no longer cash-rich and time-poor but cash-poor and time-rich. They are also shopping more locally and going to the shops more often to top-up.
• Peake said this could drive confectionery sales as there are more opportunities to create impulse moments, as confectionery is considered an “impulsive category”.
• Peake added: “Seven out of ten people who walk out of a store with a confectionery item didn’t know they were going to buy it when they walked in.”
• Consumers are also buying in to more promotions, shopping around to manage their spend and moving from premium to discount and value items.
• However, Peake added: “People aren’t necessarily looking to buy cheap, they are looking to buy value for money.”
• The research also showed that consumers were not prepared to sacrifice their basic ethics and beliefs.
• Peake said: “They are really looking for ways to manage their spend and looking for ways to cut back, but they won’t do that by compromising their core values (such as sustainable sourcing).
• “When people are finding it hard, they will often draw back to their core principles and buy into brands they know and trust.”

UNILEVER (P.Polman CEO) and World Heart Federation announce new initiative

09/06/2009 Unilever and the World Heart Federation announce a joint initiative to promote awareness of Heart Age - a new, personally motivating way of expressing an individual’s risk of developing heart disease and stroke. At a global media launch, leading worldwide cardiovascular disease (CVD) experts - including Professor Pekka Puska (President, World Heart Federation) and Professor Rod Jackson (Head of Clinical Epidemiology & Biostatistics, University of Auckland) - pledged their support for the new concept, which they believe could help in the global effort to reduce CVD, the leading cause of premature death worldwide. Professor Puska stated, “If Heart Age can engage individuals and motivate them to change their diet and lifestyle for the better, no matter what their level of risk, then this could be a breakthrough in the global effort towards improved CVD prevention, which could save hundreds of thousands of lives and sparing many more the misery of heart disease and stroke.” Heart Age, based on the well-established and highly respected Framingham Risk Score, uses standard risk factors for heart disease or stroke (such as age, weight, gender, cholesterol, blood pressure and smoking) to estimate your ‘Heart Age’, which could be higher than your chronological age if your personal CVD risk factors are high. Today’s gathering supports the fact that this could be a powerful way for health professionals to help motivate people, at all levels of risk, to make the behavioural changes needed to keep their hearts healthier for longer. At the global media launch, Unilever unveiled a new report entitled ‘What If People’s Hearts Stayed Young?’, which publishes, for the first time, the theoretical effect on the numbers of heart attacks and strokes (CVD events) over the next decade that might be achieved if people estimated to have an elevated Heart Age were able to reduce it by three years. The modelling used data from the UK and USA as examples. The results are inspiring. They suggest that if people estimated to have elevated Heart Ages lowered them by three years, predicted CVD events could be reduced over ten years by an estimated 216 000 in the UK, and by an estimated 1 million in the USA. The modelling further calculates that, if everyone – not just those with elevated Heart Ages - managed to keep their Heart Age as young as their chronological age, the predicted number of CVD events over ten years could be reduced by an estimated 986 000 in the UK and by an estimated 5 million in the USA. Unilever has built on the concept of Heart Age and developed an accurate and simple online tool to enable people to find out their own Heart Age and for health professionals to better engage their patients in their own heart health. After piloting the Heart Age Tool in 18 countries, Unilever has developed it further, adding a tailored heart health plan to guide and motivate people to make lifelong changes to their diet and lifestyle that can help reduce their personal cardiovascular disease risk factors. Unilever’s Chief Executive Officer, Paul Polman, says : the company will track and share information on progress by publishing data at regular intervals for the benefit of the wider heart health community. It is intended that the Heart Age Tool will also be available for doctors to use in patient communications. Paul Polman comments: “We are excited by the potential for Heart Age, combined with our consumer-friendly Heart Age Tool, to make a real difference in motivating people to look after their heart. We are indebted to the World Heart Federation for their strong support for this Heart Age initiative, and to individuals and organisations whose expert collaboration has made it possible. ... Over 2 million people have taken the Heart Age test to date. ...

FOOD... for thought

Your brain makes up just 2% of the body's overall weight but uses up to 20% of the oxygen supply, 25% of the glucose supply (at rest) and 19% of the blood supply. It needs a continuous supply of energy and nutrients for good functioning, from childhood into adulthood.

Fatty acids are one important type of nutrient for the brain

as they help in the communication between neurons. In fact, around 35% of the dry weight of the brain is made up of fatty acids. Make sure you're getting enough fatty acids and other essential brain nutrients such as B vitamins.

UNILEVER - Cool ice cream innovations - HEALTHIER and really tasty

Unilever has found a way to make ice cream healthier as well as really tasty. It has all been possible thanks to a new ice cream ingredient discovered by Unilever's ice cream scientists.

Less fat, more fruit

The new ingredient is called ‘ice structuring protein’. This protein allows us to make ice cream and ice lollies which are lower in fat, sugar and calories and at the same time include more fruit. We can also now make ice creams and ice lollies which better hold their shape and are less messy to eat. Combining ISP with stabiliser technology gives products that additionally don’t melt so easily – great for small children and for hot countries.

Ice structuring

How was ‘ice structuring protein’ discovered? Ice structuring proteins are widely found in nature, in for example fish, carrots and grass. They allow fish to survive in freezing arctic waters. The protein works by changing the shape of the ice crystals. Unilever’s ice cream scientists took this idea from nature and have applied it to ice cream with great success. It only takes tiny amounts of ISP to have the desired effect.

Baker’s yeast

As sourcing ice structuring protein from a crop or a fish is not environmentally or economically sustainable ice structuring protein (ISP) is prepared with a genetically modified baker’s yeast using a fermentation process. ISP is prepared by a genetically modified baker’s yeast in a fermentation process which is similar to that used to make other food ingredients such as flavourings, vitamins, enzymes and chymosin which is found in vegetarian cheese. To ensure that the ISP is as pure as possible the yeast cells are removed through several stages of fine filtration at the end of the process.

Safety & approvals

ISP is a new ingredient so safety has been Unilever’s number one priority. The company’s safety specialists have conducted exhaustive tests to demonstrate the safety of ISP. The results of these tests have been reviewed by a panel of independent world experts including allergists, toxicologists and paediatricians. The safety of ISP has also been adopted by the US Foods and Drug Administration and endorsed European Food Safety Authority and Food Standards Australia New Zealand.

ISP

technology was submitted EU regulatory body for clearance for use as a novel food in 2006. After nearly 3 years of consultation, approval was given for the use of ISP in all EU member states in April 2009. Unilever now plans to sell Europe’s first ISP containing ice creams in 2010. All products containing ISP will include ISP in the ingredient list and information will be made available via customer carelines and websites. Low fat products and novelty ‘popsicle’ products have been on sale, and enjoyed, in the USA, Mexico, China, Philippines and Australia for several years now.

NESPRESSO - unveils five new Grands Crus

Striving to create the ultimate coffee experience, Nespresso coffee experts travel the world in search of the highest quality coffee. Following two years of exploration and development, five new creations have recently been unveiled: three Pure Origin coffees and two Lungo blends. While the “original” Nespresso espresso varieties are blends from several origins whose characteristics complement one another in a complex taste profile, Pure Origin coffees reveal a soul and character typical of a single origin. The intention is to source the three Pure Origin coffees through the Nespresso AAA Sustainable Quality Program which is co-managed with the Rainforest Alliance (currently, one Pure Origin coffee is 100% sourced through the AAA Program while the other two originate from plantations where the initiative has only been launched recently). The Sustainable Quality Program aims to protect the environment and improve the lives of coffee farmers and their communities while assuring supplies of top-grade green coffee and improving product quality. New Pure Origin coffees:

• Rosabaya de Colombia: a blend of hand-picked Columbian Arabicas grown on small plantations at altitudes above 2,000m in the south and south-west of the country. Has a delicate acidity interspersed with notes of wine and balanced by hints of red fruit. Separate roasting accentuates the fruity notes and acidity whilst bringing body to the coffee.
• Dulsão do Brasil: a combination of red and yellow Brazilian Bourbon coffees grown on a limited number of plantations in the hilly Pocos de Caldas region. Separately roasted and treated with the semi-dry method so that mucilage sugars infuse sweetness to the beans. Sweet notes of cereal, malt, honey and maple syrup.
• Indriya from India: a blend of Arabica (85%) and Robusta (15%) beans cultivated in the shady cedar forests of the major coffee states in the south. An intense, full-bodied espresso with a whisper of cocoa and a spicy bouquet reminiscent of cloves, pepper and nutmeg.

New Lungo blends:

• Fortissio Lungo: a blend of Central and South American Arabicas with a hint of Robusta. Intense, full-bodied and bitter with notes of dark roasted beans.
• Finezzo Lungo: a delicate marriage of lightly roasted East African and South and Central American Arabicas. Highly aromatic with mild notes of fragrant jasmine.

Specially-designed sampling and tasting packs are enabling consumers in every Nespresso market to enjoy these latest additions to the unique Nespresso range of 16 premium coffees.

ASIA - New investments reaffirm Nestlé's commitment to the ASEAN region

Singapore June 13, 2009 Speaking at a media conference at the end of his tour of South East Asia which took him to Thailand, Vietnam, Malaysia, Indonesia and Singapore, Nestlé CEO Paul Bulcke said that the Company will continue to invest in the region and expand its business and manufacturing facilities there. Over the last three years, Nestlé has spent over CHF 550 million in capital investments in its ASEAN operations. In 2008, Nestlé’s business in the region experienced 15% organic growth, with sales of around CHF 5 billion. In 2009, Nestlé's investments in the region will amount to CHF 260 million.

• In Thailand Nestlé is investing in two significant manufacturing projects, the construction of a new Nestlé Purina pet food factory located in the Amata City Industrial Estate, and the expansion of the existing Navanakorn facility, where Nestlé (Thai) Ltd produces milk and coffee products. The pet food plant, which will create 135 new jobs, will be one of the most advanced factories of its kind in the world, thanks to its state-of-the-art processing technologies. The factory will supply dry pet food to the growing local and overseas markets, including Indonesia, Malaysia, Singapore and the Philippines, as well as Korea, Taiwan and Hong Kong. Nestlé’s overall capital investments for Thailand will amount to CHF 56 million in 2009.
• In Vietnam Paul Bulcke opened the new Maggi production plant at the Nestlé factory in the Dong Nai province, where Nestlé will create over 800 jobs by 2010. The plant will meet the growing consumer demand for Maggi products in Vietnam, Cambodia and the Philippines. This year Nestlé will invest a total of CHF 13 million in its operations in Vietnam. For example, the La Vie Company, a local joint venture company in which Nestlé holds a 65% interest, will invest in its two mineral water factories to double their capacity.
• In Malaysia, Nestlé has committed a capital investment of CHF 85 million for 2009 to meet the increasing demand for Halal products of which Nestlé Malaysia is the Centre of Excellence for the Nestlé Group. The investment supports the set-up of new regional plants for Nescafé and non-dairy creamer as well as the expansion of its Maggi facilities following the stronger export demands for its products in the region, the Middle East and Europe. Over the last three years significant investments were made in Singapore for the upgrade and expansion of the production facilities at the Jurong factory, while another CHF 3 million of investments have been committed for 2009.
• In the Philippines, which Paul Bulcke visited last year, Nestlé's investments in 2009 will amount to CHF 72 million. An additional expression of Nestlé’s commitment to the region was the establishment of a Nestlé shared service centre for financial and employee services in the Philippines in 2008, which helps to maximize Nestlé’s operational efficiency throughout the ASEAN region and Oceania.
• In Indonesia, Nestlé will invest a further CHF 29 million in 2009, after a major investment of CHF 130 million in the last two years, supporting the expansion of the Kejayan milk factory in East Java in order to meet the increasing demand. After the completion of the project, the Kejayan factory will be one of the ten biggest Nestlé milk processing plants in the world.
• ...

USA - Nestlé launches state-of-the-art factory and beverage distribution centre in USA

- March 4, 2009 - Nestlé has launched its largest ready-to-drink aseptic products factory in Anderson, Indiana. The state-of-the-art factory and distribution centre gives Nestlé a unique platform to leverage its nutrition, health and wellness strategy and sets the standard for future Nestlé ready-to-drink factories worldwide. Present at today’s official launch were Indiana Governor Mitch Daniels, Anderson Mayor Kris Ockomon, Nestlé CEO Paul Bulcke, and Nestlé USA Chairman and CEO Brad Alford. The Anderson facility, at 880,000 sq. ft. (almost 82,000m2), covers an area the size of over 300 tennis courts and is dedicated to meet growing consumer demand of Nestlé Nesquik Ready-to-Drink and Nestlé Coffee-Mate Liquid products in the USA. It will become Nestlé’s centre for healthy beverages in the USA and allow the Company to create and develop new and innovative beverage products. The Anderson factory has applied for LEED certification, which means that the facility meets a suite of standards for environmentally sustainable construction as determined by the U.S. Green Building Council (USGBC). It also has improved recyclability of resin packaging, a wastewater recovery system for reuse in cooling towers, and uses low-emission natural gas boilers. Between August 2006 and June 2008, Nestlé invested USD 359 million to construct the factory and distribution centre, the Company’s largest single capital investment in its history. Last August, the company announced it will invest USD 170 million to expand the facility to more than 1 million sq. ft. (over 92,000m2) by 2011. In total, over 500 jobs will have been created in Anderson by 2011

Why communicate during a crisis? And how to do it the smart way?

Companies very often judge Marketing investments as being costly. The issue when stopping Marketing investment during a crisis is like using a break when a car drives up a hill. Your Brand will disappear faster, people will think you are in bad shape and you won’t be part of the preferred brand when the economy will grow again. Why should you communicate during a crisis?

• Because others reduce their investments, suppliers tend to reduce their prices --> you’ll get a much better return on investment.
• While the noise of crazy communication has come down, you are still here and therefore much more visible.
• Being visible also means “I’m wealthy”, which means: trust and reassurance.
• You need to sustain your sales with more qualitative arguments than just the price.

How should you communicate during a crisis? As sales reduction reaches everybody, one has to think twice on how to optimize investments!

1. Focus on the most responsive people/target groups in order to optimize investments. The ECS-Midas Target might help you define this “ideal” target: people willing to buy your brand, but also people who are motivated by values corresponding to your brand core values
2. Leverage the values that will motivate your “ideal” target to buy. It’s not the values that most people attribute to your brand, but it’s the values that help you differentiate your brand from the competition on elements that are important for your “ideal” target.(The ECS-Midas Brand Image will deliver you this hierarchy of motivations to buy among your ideal target
3. Select the most adequate media support. Don’t be attracted by discount on media that could eventually not reach your target.
4. Go for short or medium term effect on sales. But don’t stay outside the market!

Is your Brand present on a social Network yet?

The Question is not any more to know if it is useful ? The real question is to know: How to do it best ! Does somebody have an experience to share... Is your company ready/organized to handle this opportunity? FYI: people spend (only the leader per region) every month

• 223 Million of hours in the USA on MySpace
• 65 Million of hours on Bebo in Europe
• 156 Million of hours on Orkut in Latin America
• 90 Million of hours on Friendster in Asia

In 2008

• only 42% of grown-up people in the world knows what a social network is. (research realized on 13'000 people from 18 to 65 years old in 17 countries by Synovate).
• In the US, 25% of internet users are using a social network. (source Third Age and JWT Boom)
• about 500 Million people are registered and over 1 billion users are planned befor 2012 (source Strategy Analytics)

How To Develop A Facebook Page That Attracts Millions of Fans -

10 Facebook Page Strategies Every Brand Should Know Facebook Pages present a massive opportunity for brands to directly engage with their existing and future customers, even the occasional passer-by.

These tips are only the top 10 and there are many other lessons to be learned but this should serve as the ultimate starter guide for any brand/company looking to make their entrance into Facebook. http://www.linkedin.com/redirect?url=http%3A%2F%2Fwww%2Eallfacebook%2Ecom%2F2009%2F03%2Ffacebook-page-strategy&urlhash=vm0g&_t=tracking_disc