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CPG Marketers Say They'll Beat Back Private Label With $$$

  • Ad Age, Friday, February 19, 2010 10:25 AM
Consumer package-goods companies attending the Consumer Analyst Group of New York conference agreed on the need for investments in advertising, in-store promotion, shelf signage, coupons and packaging to battle the encroaching share of market of private-label brands, Emily Bryson York and Jack Neff report.

"Nothing like the thought of hanging to concentrate the mind," Heinz CEO William R. Johnson wryly observed. More specifically, he pointed out that his company has "significantly" increased couponing in the U.S and U.K. and boosted marketing spending 40% in its most recent quarter.

Hershey expects to increase spending by 25% to 30% after a 50% jolt in 2009 and 28% zap in 2008. P&G says it will increase media impressions by 20% for the fiscal year ended June 30 (which does necessarily mean a 20% increase in spending, Bryson York and Neff point out). Clorox expects advertising spending to rise around 6% for fiscal 2010. Kraft CEO Irene Rosenfeld described the company's commitment to marketing spending as "incremental," and General Mills and Kellogg are planning more modest increases following splurges two years ago.

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