Dannon group readies for some shelf-assessment
WHITE PLAINS, N.Y. Dannon yogurt maker has implemented a five-member “shelf-obsession” group whose main purpose is to use shelf space in retailers to better market Dannon products. Laura Santella-Saccone, Dannon senior marketing executive, will name the team that will utilize sales backgrounds and market research to beef up Dannon’s shelf presence.
A company representative, Michael Neuwirth, told the media, “Our ambition is to impact about 3,000 stores in 2008. We need to be able to market this initiative to retailers” and use “heavy leverage market research data about the yogurt category and the opportunity.”
The shelf-obsession team will go beyond sales plans to apply their unique expertise and support to the currently operating sales teams, who, the company said, are more focused on day-to-day customer relationship issues.
Neuwith also said that dairy takes up about 3 percent of grocery store space. Dairy comprises about 9 percent of sales, he said. He said that he believed yogurt and dairy should close that gap, citing for example, that dry grocery takes up 43 percent of grocery store space, but makes 30 percent of sales.
Sources have said that yogurt is seeing a current growth rate of 6.3 percent per year, despite its meager annual shelf space growth rate of 3.9 percent. Neuwirth said that he has seen such growth as the demand for functional items like Activia and DanActive continues to grow.
CDC reports no change in percentage of teen smokers
WASHINGTON As states lose money for fighting teenage smoking and tobacco companies find ways to get new smokers to light up, anti-smoking efforts have stalled over the last five years.
The Centers for Disease Control and Prevention has reported that smoking among teenagers aged 14 to 18 remained at 22 percent between 2003 and 2007. At the same time, however, the percentage of teenagers trying smoking for the first time declined by 20 percent from 1999’s 70 percent.
In 1999, 16.8 percent of teenage smokers said they smoked 20 cigarettes or more over the course of a month; in the 2003-2007 period, that number had declined to 8 percent.
SAN FRANCISCO Del Monte Foods is selling its seafood business to a Korean holding company that specializes in canned tuna, Del Monte announced Sunday.
In a deal worth $363 million, Del Monte will sell its seafood division to Dongwon Enterprise, based in Seoul.
“The divestiture of our seafood business, including StarKist, is a significant step in the realignment of our portfolio toward higher margin, higher growth businesses,” said Rick Wolford, Del Monte’s chairman and chief executive officer.
The deal also includes Del Monte’s factories in American Samoa and Manta, Ecuador, as well as assets related to the StarKist brand in Guayaquil, Ecuador, and Terminal Island, Calif.
“We believe that the acquisition of StarKist seafood will help Dongwon establish a strong foothold and penetration in the U.S. market as we look to drive Dongwon’s initiatives for globalization,” said Park In-gu, Dongwon Enterprise’s vice chairman.