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Meijer acquires Michigan dairy

BY Alaric DeArment

GRAND RAPIDS, Mich. — Mass merchandise chain Meijer has acquired a Michigan-based dairy, the company said.

Meijer announced the purchase of Bareman’s Dairy, a family-owned company based in Holland, Mich., and the intention of investing more than $8 million into expansion of the plant.

"This is an exciting day for our company," Meijer co-chairman and CEO Hank Meijer said. "As Meijer continues to grow, it’s crucial we invest in the operations that will help us keep our promise of higher standards and lower prices to our customers. Expanding into dairy operations will do just that."

The company also announced the creation of the Purple Cow Creamery, which will supply white and chocolate milk to Meijer’s stores in Michigan. Meijer said that while it would be several months before it started shipping milk products to Meijer stores, the chain would assume ownership of dairy plant operations starting on Monday, and Carlinville, Ill.-based Prairie Farms Dairy would acquire the Bareman’s Dairy brand and the dairy’s distribution centers.

"The creation of the Purple Cow Creamery is an important step forward as we continue to expand our manufacturing operations," Meijer EVP supply chain and manufacturing Rick Keyes said. "Producing our own Meijer brand milk allows us to continue to focus on keeping our prices low for our customers while also reducing the number of food miles for a very important product."

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Doritos Dinamita makes debut

BY Allison Cerra

PLANO, Texas — A spicier version of Doritos is making its debut.

Doritos Dinamita, a tortilla chip rolled into a taquito-like shape, is aimed at consumers looking to add a touch of spice to their snacking, the company said. Initially introduced in February in select markets in the Midwest, Texas and the western United States, the new product offering will be available at Walmart locations nationwide in Chile Limon and Nacho Picoso flavors.

"We wanted to transform the bold taste of Doritos tortilla chips into a snack that captures the exciting essence of Hispanic snack foods through the shape and flavors you would find in Latin American cuisine," Frito-Lay North America VP marketing Ram Krishnan said. "The Doritos Dinamita product line truly accomplishes that, offering consumers everything they love about traditional Doritos tortilla chips, but with a spicy new twist."

The new product line will be available in a 4-oz. bag for a suggested retail price of $1.49 and a 9.25-oz. bag for a suggested retail price of $2.99.

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Low-calorie bubbles up

BY Barbara White-Sax

Carbonated beverage sales may be flat, but new low- and no-calorie introductions, and a bigger marketing spend, could mean the category may have some sparkle left.

PepsiCo is poised to roll out Pepsi Next, a soft drink with 60% less sugar than original Pepsi, designed to appeal to consumers who want the taste of a full-calorie cola but with reduced sugar. The company also is putting hundreds of millions of dollars in advertising behind its carbonated beverage brands in an effort to grab share from archrival Coca-Cola.

Dr Pepper Snapple Group vigorously has been promoting Dr Pepper Ten, a low-calorie soft drink targeted to men who are dissatisfied with the taste and image of diet drinks. The company also is testing 7 Up Ten, Sunkist Ten, A&W Ten, Canada Dry Ten and RC Ten in some markets.

In the no-calorie segment, Coke Zero, which also has been targeted to men, has had double-digit growth, and sales of Pepsi Max also have been strong.

John Sicher, editor and publisher of Beverage Digest, said the no- and low-calorie beverages could represent a new generation of soft drinks that may fuel the category after years of sluggish growth. Sicher believed that apart from low-calorie soft drinks that will adapt to consumers’ needs, there still are pockets of strength in the current market, such as the Mountain Dew brand.

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