Mature industries like consumer products are rife with conventional wisdom about innovation that goes something like this: The secret to growth in the consumer goods arena is to develop new products based on consumer needs, which are discovered through consumer research and focus groups. Even if the idea is so-so, the feeling goes, strong marketing and advertising can turn the concept into a hit. And the first to market will capture most of the profits. This kind of thinking leads to cultures that deliberately develop a long list of line extensions -- new flavors of an established soda brand, …

Gap is acquiring Athleta, which currently operates as a direct-to-consumer retailer selling its own-label products such as yoga pants and swimsuits via its web site and catalogs. Its target is women aged mostly between 25 and 55. The $150 million deal is Gap's first acquisition in more than 20 years. Gap says that initially the brand's site will be added to its unified U.S. website, which allows customers to combine online shopping at its Gap, Old Navy, Banana Republic and Piperlime brands. A spokeswoman says the company will "of course consider whether other options, including bricks and mortar stores, …

If you're looking to get mentally beat up this morning, turn to just about any Web site, newspaper or magazine for more stories about the financial woes ahead. But Age offers a different perspective -- at least for those of you who have more than a gustatory interest in the boxes, cans and aseptic packaging on the supermarket shelf. Campbell Soup's sales are up 13% in the most recent quarter, Kellogg's rose 11%; General Mills was up 14%, and Kraft -- which replaced American International Group on the Dow last week -- reported a second-quarter sales jump of 21%. …

A story in Saturday's Times about the danger of texting while doing other things -- such as crossing the street or driving a locomotive -- contained an interesting statistic from CTIA-The Wireless Association: 7.2 billion text messages were sent in the U.S. in June, 2005; 75 billion in June 2008 -- a tenfold increase in 36 months. Today's Times is crammed with glum financial stories -- "Wall Street Fastens Seatbelt"; "Foreign Banks Hope ... Bailout Will Be Global"; "Hedge Funds Face Chaos" are just a few -- leaving scant room for news about brands. The

The Times also followed up a story in Adweek Friday about Scholastic banning Bratz -- the popular doll franchise -- from its book clubs and fairs. The Campaign for a Commercial-Free Childhood says a campaign it organized against the "highly sexualized" brand is responsible for Scholastic's decision but the publisher says that's not so. It just switches what it promotes in the normal course of business, it claims. Judy Newman, president of Scholastic Book Clubs, tells the Times that it asks editors, teachers and librarians to help choose the titles included in the book …

On a recent sunny afternoon in Bentonville, Bill Rouse, director of solutions consulting with ACNielsen's Homescan & Spectra, shared some of the company's most recent data and insights with Wal-Mart suppliers. Walmart has increased its number of pet supply shoppers by 41% during the past two years, according to Nielsen -- in fact, pet food sales posted roughly the same amount Walmart shoppers spent on computers and electronics. Sales for products in that category -- led by DVDs but getting a big bump from flat-panel TVs, were $4.8 billion. Shoppers also love candy -- $2.5 billion worth -- and …

MillerCoors says it won't go ahead with its scheduled Oct. 1 launch of caffeine-infused Sparks Red until it talks with the attorneys general from 25 states who asked the company not to release the beverage. The AGs say that adding caffeine to alcoholic beverages reduces drinkers' sense of intoxication, and young people are especially vulnerable. "MillerCoors is dedicated to ensuring all of our brands are marketed responsibly to legal drinking-age adults," the company says in a statement. Sparks Red was to be an extension of MillerCoors' existing caffeine-laced alcoholic beverages line. With 8% alcohol, Sparks Red would pack more …

From The Donut Chef (Golden Books, 34 pages, $14.99) by Bob Staake, which just may inspire a young 'un or two to join the morning breakfast fray when they grow up to be marketers: They tried new shapes beyond just rings - Their donuts were such crazy things! Some were square and some were starry Some looked just like calamari!