recentpopularlog in

jerryking : coca-cola   26

Tyson Made Its Fortune Packing Meat. Now It Wants to Sell You Frittatas.
Feb. 13, 2019 | WSJ | By Jacob Bunge

Tyson’s strategy is to transform the 84-year-old meatpacking giant into a modern food company selling branded consumer goods on par with Kraft Heinz Co. or Coca-Cola Co.
.....Tyson wants to be big in more-profitable prepared and packaged foods to distance itself from the traditional meat business’s boom-and-bust cycles. America’s biggest supplier of meat wants to also be known for selling packaged foods........How’s the transformation going? Amid an historic meat glut, the company’s shares are worth $4.9 billion less than they were a year ago—and are still valued like those of a meatpacker pumping out shrink-wrapped packs of pork chops and chicken breasts....Investors say the initiatives aren’t yet enough to counteract the steep challenges facing the poultry and livestock slaughtering and processing operations that have been the company’s core since....1935.....Record red meat and poultry production nationwide is pushing down prices and eroding Tyson’s meat-processing profit margins. Tariffs and trade barriers to U.S. meat have further dented prices and built up backlogs, while transport and labor costs have climbed. .......The packaged-foods business is itself struggling with consumers gravitating toward nimbler upstart brands and demanding natural ingredients and healthier recipes........Tyson's acquisition of Hillside triggered changes, including the onboarding of executives attuned to consumer trends. Tyson added managers from Fortune 100 companies, including Boeing Co. and HP Inc., who replaced some meat-processing officials who led Tyson for decades. The newcomers brought experience managing brands, understanding consumers, developing new products and building new technology tools, areas Tyson deemed central to its future......A chief sustainability officer, a newly created position, began working to shift Tyson’s image among environmental groups, .....Shifting consumer tastes have created hurdles for other packaged-food giants, such as Campbell Soup Co. and Kellogg Co. .... the meat business remains Tyson’s biggest challenge. In 2018 a flood of cheap beef, fueled by enlarged cattle herds, spurred a summer of “burger wars,” meat industry officials said. .......investment in brands and packaged foods hasn’t insulated Tyson’s business from these commodity-market swings. ........The company is also trying to improve its ability for forecast meat demand..........developing artificial intelligence to help Tyson better predict the future.........Scott Spradley, who left HP in 2017 to become Tyson’s CTO, said company data scientists are crunching numbers on major U.S. metropolitan areas. By analyzing historic meat consumption alongside demographic shifts, the number of residents moving in and out, and the frequency of birthdays and baseball games, Mr. Spradley said Tyson is building computer models that will help plan production and sales for its meat business. The effort aims to find patterns in data that Tyson’s human economists and current projections might not see. ......Deep data dives helped steer Tyson toward what executives say will be one of its biggest new product launches: plant-based replacements for traditional meat,
Big_Food  brands  Coca-Cola  CPG  cured_and_smoked  data_scientists  Kraft_Heinz  meat  new_products  plant-based  prepared_meals  reinvention  shifting_tastes  stockpiles  strategy  sustainability  tariffs  Tyson  predictive_modeling 
february 2019 by jerryking
Muhtar Kent: bottling Coca-Cola’s secrets for success
January 6, 2019 | Financial Times Andrew Edgecliffe-Johnson.
beverages  brands  CEOs  Coca-Cola  exits 
january 2019 by jerryking
James Quincey, Coca-Cola CEO, on why brands have to take a stand
MAY 21, 2017 | FT | Lindsay Whipp in Atlanta.

Coca-Cola will be going back to its roots, developing and marketing drinks, not distributing them. But even without the bottling operations, the 51-year-old has a complex assignment on his hands.....While its fizzy drinks still account for nearly three-quarters of its sales by volume, according to Beverage Digest, its shares have underperformed those of rivals PepsiCo, which has a snacks division, and Dr Pepper Snapple over the past five years.

Mr Quincey is only too aware of the need for diversification and plans to accelerate investments in start-ups with promise. “The company must be capable of being bigger than the brand,” he says.

That distinction is important. The significant shift in consumer preferences is evident in the brand value of Coca-Cola (as opposed to Coca-Cola the company), which has tumbled from the top position globally, as ranked by BrandFinance, to 27th over the past decade. That represents a decline of more than $10bn to $31.8bn this year.

But what does this difference between company and product mean for the brand? “It’s very difficult to have the name on the door of the company and brand, and not have some overlap in what they stand for,” Mr Quincey says. “You’d have to change the name of the company. It’s not what we’re doing, just to be clear.”....Mr Quincey believes brands have to take a stand in this volatile environment — even at the risk of alienating some consumers. Coca-Cola did this earlier this year, by denouncing publicly Mr Trump’s controversial executive order banning citizens of certain majority Muslim countries from travelling to the US.

“A brand has to stand for something and you have to make the choices of what you want it to stand for, and then stand behind those choices,”
beverages  brands  brand_identity  brand_purpose  CEOs  Coca-Cola  Pepsi  shifting_tastes 
january 2018 by jerryking
From Diaper to Soda Makers, Big Brands Feel the Pinch of a Consumer Pullback - WSJ
By Sharon Terlep, Jennifer Maloney and Annie Gasparro
April 26, 2017

Some blamed the weak start of the year on higher gas prices, bad weather and other external factors, while other executives pointed to shifting consumer tastes. Analysts say some big brands, such as Gillette and Yoplait, are losing ground to upstarts. Overall purchases of consumer packaged goods in the U.S. declined 2.5% in unit terms in the first quarter, according to Nielsen.....consumers are cutting back purchases, aggressively seeking deals and drawing down supplies at home. At the same time, he said, a growing affinity for beards has played a big part in driving down razor sales, which contributed to a 6% organic sales decline for P&G’s grooming unit....PepsiCo, like big food rivals Kraft Heinz Co. and Nestlé, is struggling as consumers shift away from diet sodas and processed foods to fresher and healthier options. It has launched new products, such as a premium bottled water brand, to adjust to the shift.....For food and nonfood staples, big brands are struggling more than the overall industry. The 20 largest consumer packaged goods companies last year had flat sales while smaller ones posted sales growth of 2.4%, according to Nielsen.

Wal-Mart Stores Inc., meantime, has been reducing inventories and slashing prices as it fights to compete with Amazon.com Inc. and European discounters moving into the U.S. Those cuts are eating into its own profit and, in turn, leading the world’s biggest retailer to put pressure on its vendors.........The dynamics are driving tough choices for companies as they are forced to decide between reducing prices and ceding market share. PepsiCo and Coca-Cola Co. have been shrinking packages and raising prices.
brands  hard_choices  large_companies  volatility  P&G  Gillette  Yoplait  CPG  PepsiCo  healthy_lifestyles  Kraft_Heinz  Nestlé  Wal-Mart  Coca-Cola  price-cutting  price_hikes  Fortune_500  upstarts  supply_chain_squeeze  shifting_tastes  Amazon  Big_Food 
april 2017 by jerryking
The Decline of ‘Big Soda’ - The New York Times
OCT. 2, 2015 | NYT | Margot Sanger-Katz.

The obvious lesson from Philadelphia is that the soda industry is winning the policy battles over the future of its product. But the bigger picture is that soda companies are losing the war.

By the end of this decade, if not sooner, sales of bottled water are expected to surpass those of carbonated soft drinks.
Even as anti-obesity campaigners like Mr. Nutter have failed to pass taxes, they have accomplished something larger. In the course of the fight, they have reminded people that soda is not a very healthy product. They have echoed similar messages coming from public health researchers and others — and fundamentally changed the way Americans think about soda.

Over the last 20 years, sales of full-calorie soda in the United States have plummeted by more than 25 percent. Soda consumption, which rocketed from the 1960s through 1990s, is now experiencing a serious and sustained decline.
calories  beverages  sugar  diets  water  eating_habits  Coca-Cola  Pepsi  obesity  decline 
october 2015 by jerryking
How Can Big Food Compete Against Fresher Rivals? - WSJ
By ANNIE GASPARRO
Updated July 12, 2015 1

it is a two-part problem. No. 1, the consumer and competitive marketplace is definitely shifting. For example, quality has evolved beyond just good ingredients, preparation and packaging. Basic quality is a given now; many consumers are looking for something extra: less mass-produced, natural, local.

No. 2, iconic food companies and their mature brands are not responding effectively. Large, established food companies and their brands are being managed as portfolios of revenue and profit streams with a short-term financial orientation, and not as companies that produce food products. Small companies, on the other hand, are being created and managed by people with a food orientation and passion.
CPG  Kraft  emotional_connections  Nestlé  Coca-Cola  food  Pepsi  Big_Food  trends  Kellogg  passions  gourmet  foodies  decreasing_returns_to_scale  shifting_tastes  small_business  SMB 
july 2015 by jerryking
TV Networks Borrow Page From Digital Rivals to Attract Advertisers - NYTimes.com
MAY 11, 2015 | NYT | By SYDNEY EMBER.

Coca-Cola is just one of many brands now shifting advertising budgets to digital and social media, which offer the promise of better consumer data and the ability to reach targeted audiences....“Everyone is coming out with a data play, a data product, right now,” said Jeff Lucas, head of sales for Viacom Media Networks, whose channels include MTV and Nickelodeon.

Television networks, which rely on the upfront season for tens of billions of ad dollars, are facing declining ratings and heightened competition from digital outlets. And while television still dominates the ad market, with some $70 billion in ad spending last year in the United States, online ad spending is swelling. In particular, digital video, which attracted $5.8 billion in ad spending in the United States last year, is expected to grow to $7.8 billion this year and to $12.8 billion by 2018, according to the research firm eMarketer.....the line between TV and digital is blurring, and that advertisers care more about the effectiveness of their ads than where they run.
Coca-Cola  television  advertising  digital_media  online_advertising  web_video  Hulu  tools  brands  effectiveness  data_driven 
may 2015 by jerryking
The Risks of Mission-Driven Companies–Part 1 - Risk & Compliance - WSJ
October 9, 2014 | WSJ | Gregory J. Millman is a senior columnist with Risk & Compliance Journal He is the author of The Vandals’ Crown: How Rebel Currency Traders Overthrew the World’s Central Banks, and several other books.
AMERICAN HALAL, BEN & JERRY'S, COCA COLA CO., GREENMONT CAPITAL PARTNERS, MARY'S GONE CRACKERS, MISSION-DRIVEN, ODWALLA, UNILEVER PLC

The fact that the founder and the investors in Mary’s Gone Crackers disagree about such fundamental issues as how to grow, the role of capital, and the motivations of investors exemplifies the risk and governance challenges that mission-driven companies can pose.

Acquirers also face risk when buying such businesses. “It’s extraordinarily difficult for a large company to take over a company with a specific brand consciousness that has to be operated on an arms- length basis from a marketing standpoint. Very few companies can manage to do that,” said Lewis Paine, senior vice president for consulting at marketing research firm GfK.

At ice cream maker Ben & Jerry’s, acquired by Unilever PLC in 2000, “there have been a lot of bumps on the road,” said the unit’s chief executive, Jostein Solomon. An unusual sales contract, which we will discuss in more detail in the next article in this series, has helped keep the mission identity of the ice cream maker on track despite those bumps. Even so, said Brad Edmondson, author of the book Ice Cream Social: The Struggle for the Soul of Ben & Jerry’s, “It took Unilever a long time to really understand what it had agreed to, and there was a period of eight or nine years when Ben & Jerry’s and Unilever did not have a good working relationship.”

Adnan Durrani, founder of American Halal, said in a recent interview with Risk & Compliance Journal: “In a socially responsible business, the connection to the consumer is tied in with the brand value; one reason consumer packaged goods companies pay higher multiples for such businesses is that they want to grab those consumers. But once they do, they lose sight of the fact that there is authentic trust and transparency when the management team is close to that community.”

Business as usual may kill the goose that laid the golden egg.
books  Unilever  brands  privately_held_companies  Odwalla  mission_statements  Coca-Cola  motivations  values  large_companies  mission-driven  cultural_clash 
october 2014 by jerryking
Bubbling Up
January 2005 | Worth | Sergio Zyman.

We changed the formula we had been using for 100 years to give our customers what we thought they wanted: New Coke. We orchestrated a huge launch, received abundant media coverage and were delighted with ourselves until the sales figures rolled in. Within weeks. we realized that we had blundered. Sales tanked and the media turned against us. Seventy-seven days New Coke was born. We made the second-hardest decision in company history: We pulled the plug. What went wrong? The answer was embarrassingly simple: We did not know enough about our customers. We did not even know what motivated them to buy Coke in the first place. Based on that, we fell into the trap of imagining that innovation—abandoning our existing product for a new one would cure our ills. After the debacle, we reached out to consumers, and found that they wanted more than taste when they made purchase. Drinking Coke enabled them to tap into the Coca-Cola experience, to be part of Coke's history and to feel the continuity and stability of the brand. Instead of innovating. we should have renovated. Instead of making a product and hoping people would buy it, we should have asked customers what they wanted and given it to them. As soon as we started listening to them, consumers respondcd, increasing our sales 9 billion to 15 billion cases a year.
contra-innovation  Coca-Cola  Pepsi  market_research  marketing  renovations  growth  CMOs  product_launches  kill_rates  brands  customer_expectations  customer_insights  culling  mistakes  beverages  innovations 
may 2012 by jerryking
Move Over, Coke - WSJ.com
January 30, 2006 | WSJ | By GWENDOLYN BOUNDS | Staff Reporter of THE WALL STREET JOURNAL

How a small beverage maker managed to win shelf space in one of the most brutally competitive industries
Gwendolyn_Bounds  beverages  shelf_space  Coca-Cola  grocery  Pepsi  fees_&_commissions  branding  distribution_channels  water 
may 2012 by jerryking
Decisions Without Blinders
January 2006 |HBR | By Max H. Bazerman and Dolly Chugh
HBR  decision_making  Octothorpe_Software  Coca-Cola  Pepsi 
november 2011 by jerryking
Big Food giants want to save us from junk food. Really. - The Globe and Mail
Feb. 25, 2011 Globe and Mail Eric Reguly

The potential problem with the food processors’ elevated interest in
farming is that, through sheer bulk, they can shape local economies and
environments in their favour. Strong demand for a single crop could lead
to the loss of crop diversity. Local regulations designed to protect
the public interest, such as non-privatized water supplies, could be
compromised, particularly in developing countries with weak governments.
And Big Food could use its clout with farmers and retailers to displace
locally grown foods with its own processed foods.

Big Food is going to get bigger as it exploits every inch of the value
chain, from farm to pharmacy.
Nestlé  Kraft  Coca-Cola  food  Eric_Reguly  Pepsi  farming  agriculture  Big_Food  developing_countries 
february 2011 by jerryking
Too many pots
Sept. 2003 | Profit. | by Rick Spence. Abel and Cain fell
into a common trap: targeting the broadest market possible. By trying to
please too many people at once, they were unable to make deep
connections with customers and event sponsors. Sure, their potential
market was huge, but as Abel admits, "We weren't providing enough
value." Niche markets pay better than mass markets; it's a classic
entrepreneurial lesson, but one that many people learn the hard way. If
one were starting a beverage company today, find the niches Pepsi and
Coke don't own - as Cott Corp. did with bargain-priced house brands.
Unlike the markets Cain and Abel had previously wooed, the people who
attended these events had pressing information and self-development
needs, and were willing to pay for events that fulfilled those needs.
"Specializing opened up markets that we could never reach before," says
Abel. "There turns out to be no shortage of niche markets. The closer
you look, the more you see."
ProQuest  Rick_Spence  entrepreneur  market_segmentation  specialization  targeting  lessons_learned  partnerships  value_propositions  niches  Pepsi  Cott  Coca-Cola  customer_segmentation  mass_markets  emotional_connections  market_intelligence  private_information 
february 2010 by jerryking
It's the Purpose Brand, Stupid - WSJ.com
NOVEMBER 29, 2005 | Wall Street Journal | by CLAYTON M.
CHRISTENSEN, SCOTT COOK and TADDY HALL. Carving up markets by product,
price point or customer type often causes marketers to deliver products
overloaded with unwanted features or designed to improve on a product or
appeal to a demographic profile -- but not necessarily real customers.
the marketer's fundamental task is not so much to understand the
customer as it is to understand what jobs customers need to do -- and
build products that serve those specific purposes.
Clayton_Christensen  disruption  product_innovation  product_launches  innovation  market_segmentation  Marriott  failure  Coca-Cola  customer_insights  feature_overload  purpose  contextual  hiring-a-product-to-do-a-specific-job  brand_purpose 
january 2010 by jerryking
Coke Teams Up With Socially Focused Smoothie - WSJ.com
APRIL 8, 2009 | Wall Street Journal | by AARON O. PATRICK and VALERIE BAUERLEIN

Investment in Britain's Innocent, Known for Environmental and Charity Efforts, Marks New Expansion Approach
Coca-Cola  Innocent  beverages  social_entrepreneurship 
april 2009 by jerryking

Copy this bookmark:





to read