CAGNY Presentations

GAGNY - the consumer analyst group of New York held its annual meeting in Florida, and the major CPG companies came before them to update them on their progress. I have uploaded the presentations that were made available on the various investor relations websites to my slideshare account.

The KO and PEP reviews focused on their non-USA businesses (Coke made a big presentation in November, Pepsi is in the middle of restructuring its US business). DPS, HSY and KFT re-iterated much of what they have said previously.

Perhaps the most interesting presentation is from French giant Danone. In other posts I have looked at their interest in functional food. Their presentation here is a breath of fresh air, really thinking about the future of food.

Anyway - if you are in the Food and Beverage business, it is all worth a look.
If you are not... I will call you later to wake you up.

Loading Up At the Wegman's has a whole new meaning

According to the Philadelphia Inquirer you can now visit the pub while you are shopping. Surely a ciunning plan to reduce shopper inhibitions - and really make the fresh produce section a singles bar!

Either way I like the idea. Done right it would make for a more interesting retail experience.

Signature Sausages Are Coming

According to www.flavor-trends.com signature sausages will be a prominent trend in 2010.

Bad For You Sandwiches...

Meatball Marinara Sandwich from Subway 1,160 Calories

If you needed any more information about bad lunch choices, this piece on Yahoo! is interesting. If for no other reason but for the trivia value of discovering whose sandwich is 1,930 calories...

How Much Sugar in Mountain Dew Throwback?

Mountain Dew has always been a guilty pleasure of mine, so I was intrigued to taste some made with cane sugar. Then I noticed the amount of sugar in the product...


There are 73 grams of sugar in a 20oz single serve bottle.

Innovation Slowing

Unsurprisingly, Mintel is reporting that the rate of rate of innovation of food and beverages is slowing, with 30% fewer new product entries in 2009 over 2008. After a decade of massive growth from innovation retailer's category management, a reduction corporate resources and the focus on value is taking its toll.

Its That Most Wondeful Time of the Year...

Well maybe for statistical geeks like me. It is that time when annual numbers for 2009 are solidified and we start to get a better picture of the American consumer and the retail marketplace.

Today we have been provided data on consumer use of coupons. With the recession, it was likely that coupon use would be up - but the results are jaw dropping. Coupon use is +27% worth over $35B in retail sales.

A quick quote from the article...

“There has been a noticeable increase in page count over the past year,” said News America Marketing EVP of Marketing, Jesse Aversano. “Manufacturers understand that in a tough economy, coupons are an effective and efficient way to spend their advertising dollar.”

“Brands saw coupons as a key to maintaining brand strength,” adds Matthew Tilley, Director of Marketing for Inmar’s promotion services division. “If they reduced their promotional presence, they stood to lose sales to lower priced competitors and store brands – so they doubled down hoping to create brand loyalty once the economic dust settles.”

Hmm. Coupons as a source of brand building? Sorry, nice try. Coupons have become a way to keep retailer prices high (ie not give back the hard won price increases of 2007) but still give price motivated consumers a promotional reason to buy their product. Coupons have become the path of least resistance and greatest motivation in a market place full of easily duplicated products.

I could buy that these are tactics to gain share, but in 2009 these were tactics of survival - and not cunning plans for brand domination.