Kraft outlines benefits of splitting business
NORTHFIELD, Ill. — Kraft Foods chairman and CEO Irene Rosenfeld said that taking the company’s performance to the next level required "a bold approach," referring to last month’s announcement to split the business into two independent, publicly traded entities.
Speaking at the Barclays Capital Back-to-School Consumer Conference on Wednesday, Rosenfeld said that each of the soon-to-be-created companies — including a high-growth global snacks business and high-margin North American grocery business, which will be put in effect in late 2012 — was "the best way to stage our businesses for long-term success, the best way for shareholders to value each business and the best way to ensure a bright future for our people."
As previously reported, Kraft Foods announced that the global snacks business will consist of the current Kraft Foods Europe and Developing Markets units, as well as the North American snacks and confectionery businesses. The North American grocery business would consist of the current U.S. beverages, cheese, convenient meals and grocery segments and the nonsnack categories in Canada and food service.
Rosenfeld noted that the global snacks business would include such billion-dollar brands as Cadbury, Jacobs, LU, Milka, Nabisco, Oreo, Tang and Trident, while the North American grocery business would include such billion-dollar brands as Kraft, Maxwell House, Oscar Mayer and Philadelphia in its portfolio.
Poco Loko touts lower alcohol by volume than counterpart
CHICAGO — Phusion Projects, the maker of Four Loko flavored malt beverages, has introduced a new product that comes in a smaller can size with lower alcohol by volume.
Unlike Four Loko, which comes in 23.5-oz. cans and contains up to 12.5% alcohol by volume, Poco Loko is available in 16-oz. cans at 8% ABV, Phusion Projects said. Poco Loko, which comes in green apple, black cherry, mango and lemonade varieties, does not contain caffeine, guarana or taurine.
Phusion Projects said the Poco Loko line was introduced in order to meet consumer demand for additional products and flavors, and to continue diversifying the company’s portfolio.
Last November, the Food and Drug Administration issued a warning to Phusion Projects and other manufacturers of caffeinated alcoholic beverages. Since then, the company said it would remove caffeine from its flavored malt beverages.
Packaged Facts: Latinos spend more on household products than other consumers
NEW YORK — Latinos spend more than any other population segment on laundry and household cleaning supplies, according to the latest market research from Packaged Facts.
Citing Experian Simmons data, it is estimated that more than two-thirds (68%) of Latino households spend an average of $80 or more per week on groceries, while 42% of Latino households spend an average of $125 or more. Packaged Facts noted in its "The Latino Household Products Shopper" report that grocery shoppers who spent at least $80 on their last grocery shopping trip are 41% more likely than shoppers on average to buy household products, such as laundry and household cleaners, paper products and plastic products. Additionally, Packaged Facts projects that spending by this population segment on laundry and cleaning supplies and other household products will grow from $7 billion in 2011 to $10 billion in 2016, representing cumulative growth of 40% during the forecast period.
"Latinos, as part of the big spender segment in grocery stores, represent prime targets for marketers of household products, both in the store and before the store," Packaged Facts publisher David Sprinkle said.
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