Food Marketing Network» Product Development

200 years of ‘Wellness’, time for a change – or is it?

robward — Wed, 07 Jul 2010 22:26:04 +0000

Some things don’t change…

Hartmans Info-Graphic has just been launched and it show (as a picture, which makes it easy to read), showing how fascinating the evolution has been over the last 200 years in product development for ‘Wellness’.

http://www.hartman-group.com/hartbeat/infographic-the-road-to-wellness/full-size

Prince Charles’s Brand, Duchy Originals, launch in USA this September backed by premium UK retailer WAITROSE

robward — Tue, 22 Jun 2010 23:40:36 +0000

British grocer Waitrose JLP.UL is planning its first foray into the United States through the relaunch of a premium food range founded by Prince Charles, heir to the British throne.

Managing Director Mark Price told the Reuters Consumer and Retail Summit that the new ‘Duchy Originals from Waitrose’ range, due to go on sale in September, would act as a catalyst to accelerate Waitrose’s expansion in international markets.

The grocery arm of employee-owned British retailer John Lewis, Waitrose bought the license to the Duchy Originals brand in September last year and hopes to take it into markets like India and Asia, as well as the United States.

“It will become, I hope, a serious part of our export business,” Price said.

“We think a range that’s supported by His Royal Highness the Prince of Wales, is organic, sustainable and top-of-the-range premium will have great resonance outside the UK,” he said.

“What we’re working through now is the entry strategy. Do we go to one or two supermarkets? Do we go through a distributor in America who’s going to put the product out more widely?”

Foreign growth would complement expansion plans in Britain, where Waitrose’s sales growth is outstripping larger rivals, backed by a big investment in lower prices and a marketing campaign fronted by celebrity chefs, Price said.

Waitrose currently sells its products in 25 foreign markets, generating about 50-60 million pounds ($74-89 million) of annual sales. Price expects this figure to at least double over the next two to three years.

At home, Waitrose is outpacing growth at larger rivals like Tesco (TSCO.L) and J Sainsbury (SBRY.L) as recession-hit shoppers treat themselves at home, rather than eating out, and it wins new customers with its lower-priced Essentials range.

Price said there were also signs that ethical shopping was returning, with sales of organic foods starting to grow again.

DOUBLING IN A DECADE

Sales at shops open at least a year, excluding auto fuel and VAT tax adjustments, were currently up around 3.5 percent, compared with rivals showing little or no growth at all, Price said.

That should improve to about 4 percent for the year as a whole, helped by a pick-up in food price inflation, he added.

Price said Waitrose would invest about 40 million pounds in lower prices this year, similar to 2009, and back this up with a 40-50 percent increase in marketing spending, with TV adverts featuring celebrity chefs Delia Smith and Heston Blumenthal.

In the longer term Waitrose aims to double its UK market share over a decade to 8-10 percent by opening more stores, including smaller convenience outlets, and selling through third parties like pharmacy chain Boots ABN.UL and online grocer Ocado.

Price said results from trials with Boots were very positive, and a decision on a full roll-out to the 700 Boots stores that sell food would be taken around the end of the year.

He said Waitrose would always consider other potential deals to extend its brand, but declined to comment on media reports it had looked at, and decided against, buying sandwich chain Eat.

“People are choosing more prepared food to eat now,” he said, adding the market for such purchases was worth an estimated 18 billion pounds a year.

“We understand the consumer need. We’re not yet sure on the best way to address that customer need,” he said, noting that grocers like Waitrose did not necessarily have to open a separate chain but could adapt their smaller convenience shops.

Price also saw growth for Waitrose in non-food ranges. Just 5 percent of its stores have a significant general merchandise offering and this could rise to about 20 percent, he said.

Waitrose’s online business will start competing with Ocado in London next summer, Price said.

But he did not see this as a problem for either business, saying that with online grocery sales growing at over 20 percent there was room for both players and that together they could capture a larger share of the market.

($1=.6743 pounds)

(Additional reporting by James Davey; Editing by Greg Mahlich)

Snacks, the New ‘Meal’ Restaurants Are Serving Up

robward — Tue, 18 May 2010 07:43:09 +0000

“Snacks are providing a huge opportunity right now for restaurants ranging from quick service to fine dining,” notes Eric Giandelone, director of foodservice research at Mintel. “By innovating menus with various snacking options, restaurants can boost sales throughout the day and drive guest traffic during non-peak hours.”

Consumers are more likely to visit restaurants in the early and late afternoon for snacks, the 3 p.m. to 6 p.m. time slot being most popular with 37% of Mintel’s respondents. Spending, however, peaks in the early evening. Only 19% of respondents purchased snacks from a restaurant between 6 p.m. and 8 p.m., but the average amount spent is $4.26 per person versus only $3.79 across all other time periods.

“Snack options need to be appropriate for the time frame,” adds Eric Giandelone. “Heartier and pricier fare may have more appeal later in the day, while light options may work best in the morning or early afternoon.”

The majority of snackers (64%) look for a beverage when snacking, whereas 61% opt for something portable. Meanwhile, just over half (52%) crave an indulgent snack and 50% want something salty to nibble on. Only 32% of snackers choose a healthy option, which counteracts the health conscious trend that is being seen in the restaurant industry.

Join Eric Giandelone and Joan Holleran on May 19 at 2 p.m. CDT for a FREE webinar on Captivating the Consumer: Menu Snacking Innovations. Register here: http://www.mintel.com/us-email/menu_snackinginnovations.htm

About Mintel

Mintel is a leading global supplier of consumer, product and media intelligence. For more than 38 years, Mintel has provided insight into key worldwide trends, offering exclusive data and analysis that directly impacts client success. With offices in Chicago, New York, London, Sydney, Shanghai and Tokyo, Mintel has forged a unique reputation as a world-renowned business brand. For more information on Mintel, please visit www.mintel.com. Follow Mintel on Twitter: http://twitter.com/mintelnews

Election 2010: Will a hung parliament be good for farming?

robward — Fri, 30 Apr 2010 15:16:30 +0000

Johann Tasker

Friday 30 April 2010 10:39

Farmers could be among the few beneficiaries of a hung parliament after next week’s General Election.

Opinion polls suggest no party will secure an overall majority for the first time in a UK general election since 1974, leaving the government unable to pass laws without support from members of other parties.

Pundits believe the lack of a clear winner on 6 May would be bad for Britain. After all, money markets prefer certainty. So a situation where no party can command power on its own could see the value of sterling tumble.

But any fall in sterling would boost subsidy payments calculated in euros – a prospect which will be music to the ears of farmers struggling to finalise Single Payment applications ahead of the 17 May deadline.

“A hung parliament wouldn’t be good for the economy as a whole,” says Pat Tomlinson, former head of agriculture at HSBC bank. “But farmers could be beneficiaries – at least in the short term.”

Weak sterling

Sterling’s weakness would be a net gain for UK farmers, believes Mr Tomlinson, who is now head of agriculture at the Moore Scarrott Partnership, an accountancy firm in south-west England.

True, the cost of imported farm inputs, such as fertiliser, would rise. But any increase could be more than offset by an exchange rate that would make food exports easier while boosting the value of subsidies.

Of course, farming would have to take its share of any painful government measures, including higher taxes and cuts in public spending to fix the economy. But agriculture would suffer less than other industries.

With days to go, polls indicate the most likely outcome is a Tory victory. But the lack of an overall majority would leave the Conservatives to form a minority government or enter a formal coalition with the Liberal Democrats.

“It is very difficult to predict,” says Nick von Westenholz, NFU government affairs adviser. “I wouldn’t nail my colours to the mast on anything. But you can look at the most likely scenarios and extrapolate what they would mean for farming.”

Minority government

A minority Tory government would seek alliances with other parties on an issue-by-issue basis. Failing to win votes on individual pieces of legislation would only matter if it became a regular occurrence.

“Losing standard votes on legislation wouldn’t bring down the government unless it kept happening. When you’re a minority government, the key thing to avoid is losing a no-confidence vote or a vote on the Queen’s Speech.”

Such a defeat could trigger a second general election. But two elections in quick succession are likely to result in a similar outcome – a situation that politicians from all parties will want to avoid.

“One of the parties will have to come to a deal with the Lib Dems,” says Mr von Westenholz. “Both Labour and the Conservatives realise that a deal with the Lib Dems is a better option than another election straight away.”

Lib-Lab coalition

But a formal Lib-Lab coalition would result in a much different outcome than a Lib-Con coalition, especially when it comes to farming. And it is possible neither will result in a Labour DEFRA secretary.

In a Lib-Lab deal, there would be a strong argument for the Lib Dems to be given the rural affairs portfolio. This is because Labour is likely to return few MPs from constituencies with significant farming interests.

But a Lib-Con deal is likely to see the Conservatives want to keep hold of rural affairs on the basis that the Tories will represent more countryside constituencies than the Lib Dems.

The prospect of a Lib Dem DEFRA secretary therefore remains quite some way off. Even so, it could happen, and Westminster watchers enjoy nothing better than pondering political possibilities.

As the secondary party in a coalition government, the Lib Dems would probably only be offered one or two cabinet seats. If DEFRA was one of them, it would therefore go to party leader Nick Clegg or his deputy Vince Cable.

Such a scenario is difficult to imagine. Which gives credence to the theory that the Lib Dems are more likely to work informally with a minority government than enter a proper coalition in return for a couple of cabinet posts.

All of which is bad news for Lib Dem rural affairs spokesman Tim Farron who is unlikely to get a look in whatever the outcome – despite helping to devise what is arguably the most farmer-friendly manifesto seen during this election.

It also means political horse-trading will continue for some time past the election. With everything up for grabs, and no single party in control, agricultural policies will be decided on an ad hoc basis.

Negotiation will be the name of the game. There might not be a run on the pound, but there will be uncertainty. And from an economic point of view, the country might suffer, but farming could benefit.

• See more of our General Election coverage here.

Did You Know? 3.0 (Official Video) -2009 Edition

admin — Tue, 26 Jan 2010 10:06:32 +0000

Did You Know? 3.0 (Official Video) -2009 Edition