Kellogg’s to buy P&G’s Pringles business
BATTLE CREEK, Mich. — Kellogg’s is fortifying its snacks business by purchasing Procter & Gamble’s Pringles business for nearly $2.7 billion.
The companies expect to complete the transaction in the summer of 2012, pending necessary regulatory approvals.
The announcement follows last year’s agreement between P&G and Diamond Foods through which Diamond Foods would acquire Pringles for $2.35 billion. The deal was delayed "to allow Diamond Foods to complete an accounting investigation."
"We are excited to announce this strategic acquisition," Kellogg’s president and CEO John Bryant said. "Pringles has an extensive global footprint that catapults Kellogg to the number two position in the worldwide savory snacks category, helping us achieve our objective of becoming a truly global cereal and snacks company. We are delighted to welcome the employees of the Pringles organization to Kellogg. Their collective passion and commitment has resulted in Pringles’ well-deserved acclaim as one of the most recognized brands in the world.
Pringles is an exciting brand in a large and growing category," Bryant said. "The addition of Pringles to our global cereal and snacks portfolio will provide an excellent return for stakeholders and better position us for future, profitable growth."
P&G, Alliance to Save Energy to encourage consumers to practice better laundry habits
CINCINNATI — Procter & Gamble has teamed up with a nonprofit to promote the environmental and energy savings benefits of washing laundry in cold water.
Through its partnership with the Alliance to Save Energy, P&G said the Alliance will work with P&G’s Future Friendly natural resource education initiative, as part of an Earth Day-focused campaign that encourages consumers to change their laundry habits. The campaign will feature a Facebook sweepstakes, pop-up events and media activities. All of the campaign elements will utilize Alliance-provided data and consumer-friendly language to illustrate the environmental benefits of cold water washing and drive consumer action, P&G said.
“We look forward to working with the Alliance to Save Energy to showcase how little acts like switching to cold water washing can create enormous benefits for the environment," P&G VP global sustainability Len Sauers said. "Convincing consumers of the benefits of these habit changes is key because there is a tremendous power in the collective actions of these households.”
Supervalu to roll out new private-label brand to independent grocer base
LAS VEGAS — Supervalu on Monday announced that its new Essential Everyday private-label brand — to include more than 2,400 products by early 2013 — now is available in select independent retail locations.
“Early results have shown that Essential Everyday is performing very well at our 1,100 Supervalu-owned stores, and we believe that our independent retailers will see a positive customer response as well," stated Leon Bergmann, president of Supervalu’s independent business.
As part of the rollout, Supervalu will replace its current brands Flavorite, RichFoods and Homelife, with products in the Essential Everyday line.
Since June 2011, Superval’s traditional retail stores have been transitioning from their banner labels to Essential Everyday in the cereal, wholesome snacks, pasta and pasta sauce categories. Supervalu has run extensive consumer testing on the Essential Everyday name and packaging which returned very positive results. In package design research, Essential Everyday outperformed other store brands on measures of purchase interest, perceived value, premium perception and overall appeal. In addition, the change provides Supervalu with a single, recognizable brand name that will help create efficiencies in advertising and marketing the products on a national and local scale.
“The addition of our independent grocers truly helps establish Essential Everyday as its own national brand, with a reach to more than 3,000 grocery stores and millions of customers every week,” Bergmann said. “Timing and execution of this transition will occur as new product rollouts are completed and in conjunction with our independent retailer’s specific store needs.”