Under mounting pressure to accelerate reduction of sodium levels in their products, 16 major food and beverage and restaurant companies are officially committing to participate in the voluntary National Salt Reduction Initiative (NSRI) initiated by New York City. The companies are Kraft Foods, Mars Food US, Heinz, Starbucks, Subway, Unilever, McCain Foods, Hain Celestial, Boar's Head, FreshDirect, Goya, Au Bon Pain, LiDestri, Red Gold, Uno Chicago Grill and White Rose. New York City Mayor Michael Bloomberg announced the corporate sign-ons April 26. The initiative seeks to reduce salt in packaged and restaurant food by 25% over five years, which would reduce Americans' salt consumption by 20%, to reduce high blood pressure and associated health risks and healthcare costs. The city began coordinating the effort two years ago. These first-to-commit companies are joining a partnership that includes 18 national health organizations, as well as 29 cities, states and related entities. In total, the participating companies have committed to reducing sodium in 49 of NSRI's packaged food categories and 15 restaurant categories. The NSRI set targets for 2012 and 2014. Companies were given the option of committing to working toward either 2012 and 2014 targets, or both, for a given category. As recently reported in Marketing Daily, many major food and beverage brands have been quietly reducing sodium levels in various brands in recent years, in addition to introducing growing numbers of reduced-sodium products. However, in light of consumers' long acclimation to the taste of existing formulations and concerns about potential sales impacts, relatively few, until recently, had publicly announced sodium-reduction strategies for key brands or on a portfolio-wide basis. Last week's release of an Institute of Medicine report supporting creation of Food and Drug Administration sodium regulations for packaged and restaurant foods, phased in over an unspecified timetable, added urgency to companies' efforts to avoid such regulation by accelerating voluntary efforts and the public profile of such efforts. Kraft, which had announced in March that it will reduce sodium by an average of 10% across its North American portfolio over the next two years, on Monday stressed that it had been working to lower sodium in its products for several years. Mars Food US, in announcing its participation in the NSRI, said it will voluntarily lower sodium in flavored varieties of its #1 rice brand, Uncle Ben's, by 25% over five years (noting that other Uncle Ben's varieties already meet the NSRI targets). Mike Wilson, VP of research and development at Mars Food, said that Mars appreciates "being given the opportunity to participate in helping craft sodium-reduction targets" and believes that "the success of the NSRI can serve as an example of how public and private partnerships can positively affect health and nutrition." Last year, Mars implemented front-of-pack nutrition labeling on its confections products, including sodium content disclosure. Other companies that were not among these first signers have also raised their sodium-reduction profiles in recent months. In April, General Mills announced acceleration of its goals to reduce sodium by 20% across multiple categories by 2015, noting that an internal research team had been working since 2005 "to silently trim sodium levels without compromising taste." PepsiCo told The Wall Street Journal in March that its goal is to cut sodium in its salty snacks by 25% by 2015. On the restaurant front, NSRI signer Starbucks confirmed its continuing commitment to offering more options with reduced fat and calories, as well as sodium, and Subway said it had committed to reducing sodium in food in its restaurants worldwide. Au Bon Pain said it started using NSRI's guidelines over a year ago to reduce salt in some soups. Non-signer chains that have made sodium reduction moves include Burger King U.S., which reduced salt in kids' meals, and Moe's Southwest Grill, which implemented lowered-sodium marinades and sauces. Michael F. Jacobson, executive director of the Center for Science in the Public Interest, a strong advocate of federal regulation of sodium in food content, released a statement praising New York City for encouraging major companies to cut sodium through the NSRI, as well as its leadership in chain restaurant menu nutrition labeling and addressing other health issues. However, Jacobson added: "While I'm glad that 16 companies have chosen to participate in the initiative, too many companies -- including giants such as Pepsico, ConAgra, McDonald's and Burger King -- have chosen to skip it. The limited participation indicates the need for federal health agencies to set mandatory national limits on the amount of sodium allowed in packaged and restaurant food." Dietary guidelines for Americans call for a daily adult sodium consumption maximum of 2,300 mg, and NSRI stated that 1,500 mg is recommended for most adults. Current average adult consumption is more than 3,400 mg per day.
Right about the time monthly sales results for the nation's biggest retailers started sliding off a cliff, the word "pop-up" kept ... popping up. Target uses the pop-up stores to generate plenty of A-list buzz during New York Fashion Weeks. For the Gap, Los Angeles-based pop-ups seem like a trendy (and low-risk) way to introduce new lines to demanding denim connoisseurs. Even elite brands like Gucci have been popping up around the world, introducing new designers, limited-edition collections or brand-new price points. These temporary retail locations offer consumers the insider-y thrill of a sample sale and whiff of an unexpected bargain -- like a flea market or yard sale, from a single retail brand. We asked Christina Norsig, a pop-up pioneer and CEO of PopUpInsider, a portal that connects brands to the right real estate, to explain the attraction: Q: What got you started? A: I had been running an online tabletop business for six years, and I decided to open my first freestanding pop-up shop as a way to connect manufacturers with my customers, and it was so successful I started doing them regularly. I would call every company I worked with and say, "What can we offer good deals on? What kind of holiday items?" One was in a vacant deli -- it was definitely fun and different. Another was in a vacant Payless Shoe store. So far, I've done eight -- four of them stand-alone, with rents ranging from $50,000 for a spot with a great view of Macy's Thanksgiving Day Parade to a wonderful location on Spring Street in SoHo that was actually rent free, provided we did some repair work. We turned it into a winter wonderland, and it was so pretty -- and right across the street from Chanel! Q: What makes pop-ups such a good idea right now? A: About 12% of retail space in this country is lights out -- it's a very depressed market. I just see a tremendous opportunity for companies to use this vacant space to their advantage. Q: Are they good for landlords? A: Well, you wouldn't want a city full of pop-ups -- we define them as anything with a lease of a year or less, and stores that are more substantial than, let's say, a kiosk -- and commercial landlords need longer commitments. But if the space is vacant anyway? And it is good for communities. This last holiday, I opened a shop on 57th Street and Third Avenue, a block that is very depressed. I really felt like our shop was kind of a ray-of-light story. Yes, we drew tremendous traffic, but mostly I found the community was excited to see lights on in a space that had been dark for two-and-a-half years. All of a sudden, there is a tree with lights on in the window and commerce happening. It's good for surrounding businesses, and the neighborhood. Q: What kinds of brands benefit most from a temporary splash? A: I thought the way Target used the format to introduce the Liberty of London collection was a great example. For that particular collection, when you pour all of it into one small space, with such bright colors and prints, you can really see the beauty of a brand in a way you wouldn't in a larger store. Anyone who walked through that pop-up left with a real understanding of what the Liberty brand was all about. It animates the product, and sets it apart from anything else in a store. Q: But it's also just a good way to boost sales. Toys R Us used it as a way to gain market share and generate revenue, taking over vacant mall space during the holidays. A: Yes. And it's a marketing technique that is a little different -- something that might be too risky on a national scale. Plus, the fact that it is a temporary space creates a sense of urgency -- people want to buy now and not wait. I'm thinking of a high-end vegan brand of clothing from Europe that used pop-ups as a slightly more offbeat format to introduce itself here, doing event marketing, too -- positioning the shops near yoga classes and film festivals. Q: What are the risks? A: Negotiating anything on a temporary basis can be tricky, and the landlord really has to be on board. Malls tend to get the concept better than other types of landlords and understand that vacant space creates the kind of an eyesore that hurts all the shopping in the area. But there is a learning curve. Q: Why do you think consumers like them? A: There is a little bit of mystique. For my own shops, I have a big following and, last time, I didn't even do a mailer. I just put it on Facebook -- it was quiet and discreet. People can't wait to be the first one there.
Taking its name almost literally, Henkel brand Tone is launching a music-oriented online marketing campaign that promotes the brand's new Daily Detox body wash, while also giving consumers access to music videos from Epic artists, such as Shakira and Jennifer Lopez. The Tone VideoBox operates like a "modern-day online version of the juke box," says Richard Shore, chief operating officer of RedLever, the branded content company that developed the technology and partnership. Through the tool, which operates like an expandable banner ad, consumers can see videos from top artists, as well as other content such as behind-the-scenes footage and artist interviews. "Music as a content genre is very successful with online audiences," Shore tells Marketing Daily. "It aligns very well with the artists in the video box and the customers the brand is trying to reach." The VideoBox will feature artists such as Shakira, Jennifer Lopez, The Fray, Vedera and The Script. On the application, users can click just to see the artist of their choosing, as well as behind-the-scenes footage of shooting the featured video. The branded application also gives users opportunities to click links to learn more about Daily Detox, download a coupon for trial and enter a sweepstakes to win a spa trip for two. "The Tone VideoBox is an excellent way to deliver the message about our new product while entertaining our audience with some of the best musicians in the world," said Celeste Calderon, brand manager, in a statement. The VideoBox is part of a larger integrated marketing campaign that includes a partnership with MTV and brand integration with the network's reality show, "The Hills." Although the Tone promotion is the first to use the VideoBox technology for a national campaign, Henkel (Tone's parent company) bought the concept based on a test that RedLever had done for McDonald's a few months ago, Shore says. The Tone VideoBox will run on sites targeting young women on the Joost Video Network of syndicated Web sites (of which RedLever is also a part), Shore says.
Bill Stewart, who left the CMO position at Kmart in 2008 to volunteer for an organization dedicated to protecting gay marriage, will become the first "CMO-in-Residence" for NBC Universal in May. The quarterly program will tap the expertise of former chief marketing officers from major corporations. According to a news release, the ex-CMOs will work with the Integrated Sales Marketing team to "leverage NBCU's portfolio of assets to create customized, innovative, insights-driven programs tailored to meet clients' business objectives." Stewart is currently overseeing marketing and other efforts for two startup companies: dot429, a new social networking community, and NeuroFocus, a neuro-marketing company. At K-Mart, Stewart helped reposition the $20 billion retailer, bringing back the blue light as an animated spokesperson and overseeing the launch and revitalization of various K-Mart brands. His career includes marketing roles at Levi-Strauss & Co, the Coca-Cola Company and General Mills, as well as start-up companies like Ashford.com and askRed. In regard to NBCU, Stewart said: "No one understands the power of partnership like NBC Universal, and the creation of this new role is the perfect example. The company has a great track record of innovation in finding new ways to bring value to their advertisers."
Breyers Yogurt Company, LLC has named James W. Nolan as CEO. Nolan succeeds Chuck Marcy, CEO since 2005, who has decided to leave "to pursue outside interests," according to the company. In the announcement release, Marcy expressed pride in the "significant progress the company has made" and confidence in its future success under Nolan's leadership. Nolan is joining Breyers Yogurt from Sara Lee, where he has served since 2007 as EVP of Sara Lee Corp. and CEO of its $2-billion Sara Lee Fresh Bakery division. Sara Lee had announced Nolan's resignation, effective April 9, to pursue another professional opportunity. Nolan joined Sara Lee in 2005 as a corporate SVP and CEO for its now $2.1-billion food service division, where he helped drive revenue and margin growth by introducing sales, marketing, supply chain and consolidating strategies. Nolan's three decades of food industry experience also include executive positions at PepsiAmericas, Inc., including EVP, U.S. operations, and chief sales and market development positions at PepsiCo, Inc. The Breyers yogurt brand was owned by Kraft Foods until it sold the Breyers cultured-products unit in 2005 to Canada's CoolBrands Dairy Inc., having already sold Breyers ice cream to Unilever N.V. (Breyers continues to be a registered trademark owned and licensed by the Unilever group of companies.) Marcy left a CEO post at Horizon Organic Holding Corp. after its sale to Dean Foods in 2004, and formed Healthy Food Holdings with Greenwich, Conn.-based private equity firm Catterton Partners, which acquired YoCrunch in 2005 and CoolBrands in 2007. The YoCrunch and Breyers/CoolBrands businesses were combined to form Boulder, Colo.-headquartered Breyers Yogurt. Breyers is the largest independent branded yogurt company in the U.S., with traditional strength in fruit-on-the-bottom and light varieties. But with sales of approximately $200 million last year, it holds a distant third place to Groupe Danone's Dannon and General Mills' Yoplait. Dannon and Yoplait together account for about 70% of total U.S. yogurt sales. The $4.5-billion yogurt category continues to show healthy growth, although it may have slowed a bit last year. Mintel International reported 2.8% growth across FDMx retail channels in 2009, compared to compound annual growth of 6.5% between 2004 and 2008. Nielsen data show refrigerated yogurt sales in supermarkets having gained 4.8% in dollar sales, and 4.7% in volume, during the 52 weeks ending Dec. 26, 2009, according to Supermarketnews.com. General Mills reported a 14% sales jump for its Yoplait division in fiscal 2009, including an 18% jump for Yoplait Light, and a 2% gain in fiscal 2010's third quarter. 2010 launch rollouts include YoPlus probiotic yogurt, Yoplait Delights and Yoplait Greek-style lines. Danone's $1 billion-plus U.S. Dannon unit saw flat sales in first-half '09 but a 15% sales gain in the second half, after cutting its prices by 3% to 5%, Dannon CEO Gustavo Valle reported at a recent Reuters Food and Agriculture Summit. Dannon sales have continued to grow at about 15% this year, and the company expects double-digit growth on a long-term basis, driven by doubling its per-capita yogurt consumption in the underdeveloped U.S. market, Valle said, per Reuters. Dannon's marketing strategy has shifted from a recent-years' focus on Activia to supporting the full portfolio, including Light & Fit (with current TV spots featuring Heidi Klum), Dannon and Danimals, Valle confirmed. The Breyers Yogurt portfolio includes Breyers Fruit-on-the-Bottom, Breyers Light, Breyers Disney, and Breyers Inspirations yogurts, in addition to its YoCrunch sub-brand lines. YoCrunch is the leading brand in the "indulgent" niche (low-fat yogurt with mix-in toppings), according to the company. Last summer, Breyers expanded its Breyers Light line with dessert-themed flavors such as Strawberry Banana Split and Cinnamon Bun. In February, the company accelerated its push for share with a national retail rollout of YoCrunch 100 -- a single-serve, 100-calorie pack line featuring crunchy toppings such as M&M's and chocolate cookie pieces that was the first to use Cargill's Truvia, a natural rebiana sweetener derived from the stevia plant. "Offering consumers a calorie-controlled yogurt without artificial sweeteners is an important addition to Breyers Yogurt's unique positioning in the growing snack category," Marcy said in announcing the YoCrunch 100 rollout. That product's limited, East Coast introduction in January 2009 had resulted in $20 million in sales in a single year, Marcy told Bizjournals.com in an interview in February. Breyers Yogurt's game plan, led by YoCrunch 100, is to make its yogurt an afternoon/early evening snack option, distinct from YoPlait's and Dannon's dominance of morning daypart consumption. "We think we have a market niche," summed up Marcy. Prior to Horizon and Breyers Yogurt, Marcy served as president of Quaker Oats' Golden Grain Division and marketing director at Kraft General Foods, among other positions.
Sponsorships -- they're not just for athletes anymore. Great Wolf Resorts, Inc. has selected Northwest Natural Products' L'il Critters Gummy Vitamins as its "exclusive official children's vitamin of all Great Wolf Lodge brand resorts." Other well-known brand products that Great Wolf Resorts has partnered with include Starbucks, Pizza Hut, Pepsi, Aquafina, National Geographic Kids, Nestle USA, Pampers Splashers Swim Pants and Enterprise Rent-A-Car. The resort chain has a dedicated page on its Web site detailing each of the partnerships. In some cases, the product is available at the resort, while other partnerships offer discounts at the resort if a product is purchased. For example, consumers can save $25 off best available rates at Great Wolf Lodge when they purchase any Splashers product. The year-long partnership with the vitamin company will include promotional and retail activities that will focus on the importance of childhood nutrition, says Julie Stokes, vice president of sales and marketing for Madison, Wis.-based Great Wolf Resorts. Children's nutrition will be at the forefront of the partnership through several initiatives, including a "My Healthy Habits" video contest that will award a family with a three-night vacation package to Great Wolf Lodge. In addition, L'il Critters will be promoted through Wolf Tracks, Lodge Life Guides, sampling, social media and electronic communications. The family-oriented lodging chain offers indoor water parks. The hotel chain is soliciting new brand partnerships on its Web site. "All year round, Great Wolf Lodge delivers an audience whose average length of stay is two days," according to the site. "In the clutter-free environment of Great Wolf Lodge, your brand has access to a wide array of marketing programs, ranging from those of a National Partner or simply a Supplier. As a National Partner, your brand can come to life before the eyes, ears, fingertips and imaginations of the millions of Great Wolf Lodge guests and visitors, focused on adults ages 25-49 with children in the household."
Credit card giant Visa has become the latest company to change its procedures in response to a Senate investigation into whether consumers were being duped into signing up for paid membership programs. The financial company said Tuesday that it will now require consumers to re-enter their credit card numbers online before processing payment. That new policy will prevent e-commerce sites from directly forwarding consumers' credit card data to post-transaction companies that, in turn, register consumers in discount clubs. "Consumers who shop online using their Visa cards should be confident that they will only be charged for the products and services they legitimately intend to purchase -- not those that are foisted on them through deceptive data pass schemes," company executive Martin Elliott said in a statement. A Visa spokesperson says the company always officially prohibited merchants from passing along data to post-transaction companies, but didn't specifically require consumers to re-enter their credit card information before being charged. Visa's move comes almost one year after Sen. Jay Rockefeller (D-W.Va.) launched a probe into data pass marketing. Since the investigation began, the three major post-transaction companies -- Webloyalty, Affinion and Vertrue -- have changed their practices to require consumers to re-enter all 16 digits of their credit cards to enroll in discount clubs after making purchases. Webloyalty, Affinion and Vertrue target consumers immediately after they have made purchases on online retail sites like Fandango by sending pop-up ads that offer discounts. In the past, people who clicked on the pop-ups landed on a site where they could enroll in coupon programs simply by providing their email address and clicking a 'yes' button. The ecommerce sites then shared credit/debit card information with the post-transaction companies, which then began charging consumers monthly fees of up to $12. Many Web users said they did not realize the companies were going to charge their credit cards. The Senate Commerce Committee reported recently that Web companies garnered more than $1.4 billion in the last decade through these types of programs.
Imagine never leaving home without your friends ... ever again. Representatives from each stage in your life are there on every street corner, the seat next to you on the plane, in front of you on the checkout line and attending birthday parties from now until your last one. Now, imagine that same friendly mob, hanging on your every move around the World Wide Web. Whether renting a movie, buying shoes, or getting directions, your friends are there, dropping knowledge at every turn. This is the new Web in which everything you ever "liked;" your interests, favorite music, and restaurants compose a dynamic mosaic of you, making the Web "more social, personalized and semantically aware." This is the new promise of the social Web as laid out by Mark Zuckerberg at the annual F8 confab. Ready or not, the Web and the wide world have just become a whole lot less solitary. Last week, these innovations were announced and launched:
Like button and Like Box-Users can now "like" any piece of content or page from a publisher's site. Activity Stream- aggregating the all-important "likes" and comments from your friends across the Web. Recommendations- gives users personalized suggestions for pages and content they might like from a particular site Log-in with Faces- give users a peek at profile pictures of the their friends who are already using a site, in addition to a login button. Comments- lets users comment on any piece of content.
During a recent discussion with a partner, we talked about early-stage start-ups and whether PR was the right tool to promote their business and help find new business. The issue, we finally agreed, was not how early in the process they were, but rather how mature they were. Did they have a true business plan? Had they researched their target market? How mature was their product, or was it still a concept? These are all very important definers of whether or not PR can help an early-stage start up. Or, in fact, any company. Having been part of two start-ups in my early days, I'm only too familiar with the teething pains, sleepless nights worried about development loans and bridge funding, product deliveries not showing up, promised orders not coming in from buyers, not knowing where to find new customers, not having enough cash to advertise, market and PR the business -- instead, being able to only choose one. In two words -- living nightmare. Of course, every business has business "concerns," but within the context of a start-up, these concerns can be so acute, so all-consuming that it becomes hard to see the forest for the trees. And especially foggy for those start-ups that haven't mapped out a proper vision, strategy, what if scenarios and an exit plan if the proverbial crap were ever to hit the fan. It's not that I don't like working with start-ups. To the contrary, it is thrilling to be part of new innovation, to see your hard work and ideas propel a company's success and that smug sense of satisfaction in knowing that you helped a start-up realize its goals. The reality check But more often than not, it doesn't go like that. With little cash, sometimes not more than two or three months of "emergency funds" in the kitty, many start-ups look to PR as THE sales/business development/lead generation do-it-all lifeline, and expect far more than PR can deliver within an extremely short lifespan and budget. This is where it falls apart. With no marketing plan, no sales vision or direct contact with potential customers to support a PR campaign, the thought of PR being successful and effective at delivering sales and new customer acquisition is wholly unrealistic. I've said it before and I'll say it again: PR does not replace a sales team or a robust marketing strategy. The problem with unrealistic expectations is that when PR cannot deliver the sales needed to sustain the dreamed-of business' growth -- which it cannot without the right support -- the pain is that much greater. I'm not saying that all start-ups are like this -- I know self-funded visionaries who are creating great companies at this very moment. But my message to start-ups is this: it is all about how mature you are. In fact, a well designed PR strategy, along with viral/social components, can actually make a start-up. But if you are not mature enough, PR might not be right for you right now. Like any successful marketing or sales strategy, PR takes commitment, resources, integration and importantly, time. Time to grow, to mature and succeed. Just like your start-up business does. So I ask start-ups everywhere to think before they turn to PR as a complete solution for all their immediate sales and marketing needs -- will those expectations lead you to PR success or PR disappointment?