Analyst projects increased ad spending by consumer-goods makers
NEW YORK Consumer-goods makers are looking to increase their brand awareness with more ad spending, a new report suggested.
Major consumer-products makers are expected to spend an average 9.7% of their annual sales on advertising this year, up from 8.6% in 2009, Sanford C. Bernstein analyst Ali Dibadj said in a recent research report. Why? Dibadj explained that boosting a brand’s share of advertising beyond its market share will raise that market share. Among major household products, market share stayed the same or rose 64% of the time over the past 16 quarters when a company’s advertising reach exceeded its market share by 50% or more.
In the four weeks ended March 20, overall U.S. sales of household and personal products — excluding Walmart and club stores — increased 0.2% from a year earlier, compared with a 5.4% gain in private-label sales, according to a Sanford C. Bernstein analysis of Nielsen data.
Major contenders include Procter & Gamble, Colgate-Palomolive and Kimberly-Clark.
Drank stretches its market reach to Oregon
EUGENE, Ore. The ultimate relaxation beverage will be distributed in the Beaver State.
Innovative Beverage Group, makers of Drank, said it has inked a deal with Western Beverage Co. to distribute the relaxation beverage across the state.
“It is a thrill to have reputable Western Beverage Company think so highly of Drank that they want to place it on shelves within their distribution area as a leading non-alcohol alternative,” said Peter Bianchi, CEO of Innovative Beverage Group. “We can’t wait to help Oregon ‘slow their roll’ and continue to bring our relaxation inducing product to thirsty consumers out West.”
Meissner joins Jones Soda as CEO
SEATTLE Jones Soda is hoping to revitalize its business with the appointment of a new CEO, its third in the past two years.
William Meissner replaced Joth Ricci, who served as Jones Soda CEO for nearly a year. Meissner recently was president of Talking Rain Beverage and previously worked for Fuze Beverages.
Jones Soda recently announced that beverage maker Reed’s was interested in purchasing the company, in addition to another, unnamed potential buyer.