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The New Japanese Consumer

Fri, 12 Mar 2010 16:19:38 +0100

After decades of behaving differently, Japanese consumers suddenly look a lot like their counterparts in Europe and the United States. Celebrated for their willingness to pay for quality and convenience and usually uninterested in cheaper products, Japanese consumers are now flocking to discount and online retailers. Sales of relatively affordable private-label foods have increased dramatically, and many consumers, despite small living spaces, are buying in bulk. Instead of eating out, people are entertaining at home. Workers are even packing their own lunches, sparking the nickname bento-danshi, or “box-lunch man.” This fundamental shift in the attitudes and behavior of Japanese consumers seems likely to persist, irrespective of any economic recovery. That’s because the change stems not just from the recent downturn but also from deep-seated factors ranging from the digital revolution to the emergence of a less materialistic younger generation.

To learn more about why and how the consumer behavior in Japan is changing you may read the recent article in McKinsey Quartely . To do this you may need to be a member which is free.

Turkey's Yildiz Holding Says May Hold IPO for Some Units

Fri, 12 Mar 2010 15:20:03 +0100

Turkish group Yildiz Holding, owner of food company Ulker and chocolatier Godiva, may hold IPOs for some of its units, the head of the company's investment and business development department said on Thursday. Each unit of Yildiz Holding has an IPO strategy and it would not be a surprise if some of them start an IPO process in coming days, Zeki Ziya Sozen told a news conference.

A statement released before the company's annual performance assessment meeting said food activities created 8.8 billion lira ($5.7 billion) in gross revenue in 2009, 1.4 billion from overseas sales.Operating profit from food activities was 428 million lira, it said.Food investments in 2009 fell to 274 million lira from the previous year's 417 million. Apart from food business, Yildiz has personal care, real estate, information and communication technologies divisions. Consolidated turnover including them was announced over 11 billion USD for 2008, 2009 consolidated turnover not released yet.

Closely held Yildiz is still studying a new global partnership this year having set up a new production facility with Germany's Laurens Spethmann Holding for the tea market.Yildiz last year created a 50-50 joint venture with Denmark-based Gumlink, a chewing-gum producer. The holding will embark on a cosmetics investment, spending $100 million in 2010.

Source: Turkish newspapers, flex-news-food.com

Product Localization: Kitkat strategy in Japan

Wed, 10 Mar 2010 14:12:37 +0100

Western companies have succesful trials for product localizations for entering to markets like Japan. Pepsi with cucumber flavored soft drink or McDonalds with Filet-O-Shrimp burgers are good examples.

Another good example for product localization is being executed for KitKat by Nestle again in Japan. Being a well known brand as a chocolate, Kitkat now has 19 local flavors originating from different parts of Japan, from miso to soybean these tastes serve to the regional palate.

Read the detailed story in Advertising Age.

Mars sponsors Scotland Football Association

Wed, 10 Mar 2010 13:17:54 +0100

Mars Inc has signed a four-year sponsorship deal with the Scottish Football Association in a bid to encourage more adults to play football in Scotland.

The move follows a deal with Mars and the English FA last year and will include media partnerships with The Sun in Scotland and its existing relationship with Talksport. As part of the deal, Mars will become an ‘official partner’ to Scotland until July 2014. The focus of the relationship will be to work with the Scottish FA to encourage footballers over 18 to play “more football more often”, Mars said.

The English FA and Mars had signed a five-year partnership in October last year, which saw Mars become one of The FA’s Official Suppliers.

A spokesperson for Mars said the deal in Scotland was different to its tie-up south of the border. "It’s a slight shift on the relationship with The English FA, with the focus being on encouraging more adults to play football, whether they be lapsed players or new people in the game altogether," the spokesperson said.

"Of course, there will be an element of activity around the national team itself but this is secondary to encouraging people to play football in Scotland.”

Amid concern over childhood obesity, health campaigners have questioned tie-ups between food companies and sport, particularly those manufacturers selling products like confectionery.

However, the Scottish FA said Mars, which makes brands including Twix, Snickers and Galaxy, was encouraging people to take exercise."The Scottish FA is impressed with Mars’ commitment to encouraging people to be active as part of a healthy lifestyle and to enjoy their products as part of a balanced diet," a Scottish FA spokesperson told just-food. "Mars, like Scotland, can be seen as an iconic brand and it has a strong tradition within the sporting environment. There are great synergies between the two brands in terms of advertising, audience and objectives, particularly regarding the active lifestyle agenda."

source: just-food.com

Easter brings new products: Hershey introduced new bunnies!

Wed, 10 Mar 2010 13:10:27 +0100

US chocolatier Hershey has launched new chocolate gifts for the Easter period.

The Hershey range includes three varieties of chocolate bunnies; a 5oz Hershey’s Solid Milk Chocolate Princess Bunny, Hershey’s Cookies ‘n’ Crème Bunnies and Hershey’s Bliss Milk Chocolate Bunnies with a Meltaway Centre.

A Cadbury range, for which Hershey holds the US licence, includes; Cadbury Clucking Bunny Plush Toy with a Cadbury Crème Egg, Cadbury Mini Eggs Candy and Cadbury Caramel Eggs.

In addition, Hershey is launching an Egg Hunt Favourites Non-Chocolate Filled Egg Assortment with Jolly Rancher Hard Candy, Twizzlers Pull ‘N Peel Candy, Jolly Rancher Jelly Beans and Jolly Rancher Fruit Chews.

Easter Favourites Chocolate Filled Egg Assortment with Reese’s Miniatures, Hershey’s Kisses Milk Chocolates and Cadbury Mini Eggs will also add to the gift range.

source: just-food.com

Belgian Icecream Group (BIG) is for sale

Wed, 10 Mar 2010 13:13:04 +0100

Belgian holding company NPM/CNP Compagnie Nationale à Portefeuille is reportedly planning to sell its wholly-owned company Belgian Icecream Group (BIG). BIG is Belgium's biggest ice cream producer and reported a turnover of 88 million euro in 2008. BIG employs about 500 people. Banca Leonardo, has been appointed to handle the transaction, according to the Belgian press. The company has 3 production sites in Belgium (Tielen, Chênée and Kuurne) and 7 depots all over the country

Belgian daily De Tijd reported the potential sale on Saturday (6 March) and cited Unilever and Nestle as potential buyers.
Unilever and Nestle refrained from commenting.

Source: just-food.com, flez-food-news.com, De Tijd

Wîll Danone acquire Dean Foods?

Mon, 08 Mar 2010 17:31:31 +0100

If rumors are correct yes!

Shares of Dean Foods Co, the largest U.S. milk producer, jumped as much as 8.3 percent, fueled by talk that France's Danone could acquire the company. "There is a rumor circulating that Groupe Danone is interested in acquiring Dean Foods. That possibility has spurred call option buying today in the stock," said Jud Pyle, chief investment strategist at Options News Network, a division of option market making firm PEAK6 Investments.

A spokesman for Danone declined to comment on the chatter. A spokeswoman for Dean did not immediately return a call seeking comment.

Analysts questioned whether Dean would be a target for Danone, which has been focusing on growing health oriented businesses like Activia yogurt in the U.S. While Dean does sell Silk soymilk, its dairy milk business is seen as a commodity operation with little pricing power.

"They (Danone) have growth opportunities in health and wellness. I would much rather they focus on that," Morningstar analyst Phil Gorham said.

source: flex-food-news.com

Kraft handed over Europe to Cadbury's UK Managing Director

Fri, 05 Mar 2010 23:04:39 +0100

Mr.Trevor Bond, Cadbury’s UK managing director, has been handed a new role overseeing Kraft Foods’ European businesses.

Mr.Bond is promoted to president (markets) of Kraft Europe, giving him responsibility for the group’s individual national business units.Kraft’s UK and Ireland MD, Mr.Nick Bunker, takes over the combined UK business of Kraft and Cadbury. They will both report to Kraft European president Mr.Mike Clarke.

Mr.Clarke said retaining Bond reflected the “‘best of both’ approach” Kraft would adopt following its controversial takeover.

“Trevor Bond has done a terrific job in building the Cadbury business in Britain and Ireland and we are fortunate to be able to take advantage of his experience to help accelerate growth across all of our European markets,” Clarke said.

He added: “Nick Bunker will be inheriting a very special asset in Cadbury and I know he has the experience to build an even stronger company that will be a major force in the food industry.”

Bond is the highest-profile figure at Cadbury to survive the takeover. Chief executive Todd Stitzer and finance head Andrew Bonfield both resigned in the wake of the deal, along with chairman Roger Carr.

Source: thegrocer.co.uk

"Investment funds push cocoa prices up" complains BDSI of Germany

Fri, 05 Mar 2010 10:30:05 +0100

Investment funds buying of cocoa futures are forcing cocoa prices up and damaging chocolate makers, the association of German confectionery producers BDSI said on Thursday. "The BDSI condemns the speculative investment by banks and funds in agricultural commodities which the food industry needs for its production," the association said in a statement. "While this commodity is currently at its most expensive level in 30 years, the price competition in German retailing makes it difficult to pass on this cost rise in an industry characterised by mid-sized companies," the BDSI said.

London cocoa futures hit 32-year-highs hit in January but have since fallen by about 20 percent.

The BDSI said it believed cocoa prices were likely to continue their fall as the global cocoa crop remains constant while chocolate consumption is falling. All fundamental data indicate that the cocoa commodity bubble will soon burst.

Selgros Cash&Carry grows in Russia

Fri, 05 Mar 2010 10:24:26 +0100

With the opening of the third SELGROS cash-and-carry store, transGourmet - a joint venture of REWE Group and Coop Switzerland - continues its expansion in Russia.

The first SELGROS outlet was opened in Kotelniki near Moscow in 2008; the second one opened in the city of Rjasan in March 2009.

SELGROS cash-and-carry outlets are one of the leading international operators working with a "customer card system" and has around 4 million customers throughout Europe The FEGROS/SELGROS Group currently operates a total of 76 outlets, with 44 in Germany, 18 in Romania, 12 in Poland and 2 in Russia. More than 14,500 employees generate an annual turnover of approximately three billion euros. The company belongs to the transGourmet S.E., a joint venture of the German REWE Group and the Swiss Coop. With a turnover of about 6 billion euros transGourmet S.E. is the second-largest European company in wholesale and the wholesale customer service business.