Diamond Foods acquires Pop Secret, makes plans for marketing
SAN FRANCISCO Diamond Foods, marketer of Emerald brand snack nuts, is popping into the microwavable popcorn segment with its recent $190 million acquisition of Pop Secret, currently the No.2 microwavable popcorn brand.
Emerald brand snack nuts transformed the snack nut category in 2004 with resealable lids, different packaging, new flavors and heavy ad spending. Diamond Foods has the opportunity to do the same with Pop Secret. Diamond Foods chief executive Michael Mendes plans on catering the new advertising campaign to younger consumers through different flavors and packaging, and, according to Investor’s Business Daily, a series of national TV ads will be aired soon. The company intends to spend between $26 million and $29 million on advertising this year and expects to gain $85 million to $90 million in annual sales with the addition of Pop Secret.
“The microwave popcorn market has been pretty stagnant over the past few years, with little money spent on marketing,” analyst Mark Argento of Craig-Hallum Capital Group said. “There’s a big opportunity to re-grow the category with some marketing dollars and product improvement.”
Diamond Foods’ microwavable popcorn possesses high selling potential because of its location in the snack aisle, often adjacent to the snack nuts, and because retail buyers often have control over the purchasing of both snack nuts and popcorn. Both products also have a long shelf life and do not require refrigeration.
Kellogg’s adds information to packaging to help diabetics make healthy food choices
BATTLE CREEK, Mich. Kellogg Company announced last month a merchandising initiative to make it easier for diabetic consumers to choose foods that fit within their diets—a Diabetes-Friendly Seal that will be featured across several of Kellogg’s breakfast cereals.
Beginning in November, the new seal will be featured on the side panel of Kellogg’s ready-to-eat cereals that meet specified criteria and will help people with diabetes manage their diets. The nutrition criteria, based on those of third-party, science-based organizations, require that each serving of a ready-to-eat cereal include:
• Less than or equal to 30 grams carbohydrates;
• Less than or equal to 9 grams sugar;
• Less than or equal to 3 grams fat; and
• Less than or equal to 1 grams saturated fat and 0 grams trans fat per serving based on a 2,000 calorie per day diet.
“A recent Kellogg study found that about half of people with diabetes believed they should consume no more than 14 grams of carbohydrates and zero grams of sugar per serving,” stated Jennifer Garrett, director, Kellogg U.S. Nutrition Marketing. “But according to leading diabetes organizations’ guidelines for a healthy diet, meals with 45-60 grams of carbs can be a healthy part of their diets, so people with diabetes can enjoy foods like Kellogg cereals that meet our diabetes-friendly criteria.”
Dr. Fresh Inc. acquires Ascendia Group’s Binaca, Tek and Dentax brands
BUENA PARK, Calif. Dr. Fresh Inc., major manufacturer and distributor of oral and personal care products announced its Oct. 14 acquisition of Binaca, Tek and Dentax brands from Ascenda Group. The company will begin marketing and distributing all Binaca and Tek products immediately, as well as begin creating new plans for the Dentax brand.
Binaca, Tek and Dentax brands are all known for their mouthwash, breath sprays and oral care products. Their lines will add to an already strong group of Dr. Fresh products, including their No.1-selling kids? toothbrush.
“Binaca has long been the standard in the breath care category, enjoying a high degree of recognition and a loyal consumer following. We are thrilled to be able to count it among our brands,” said Daniel Enreiquez, vice president of sales and marketing for Dr. Fresh Inc. “Binaca will accelerate our expansion into the breath care segment on the heels of our recent launch of Dentyne breath sprays, while also providing exceptional value both to consumers and to retailers. The Tek brand will diversify our offerings and increase our market share in the institutional arena.”