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Kraft reduces prices of select Maxwell House and Yuban coffee

BY Melissa Valliant

NORTHFIELD, Ill. Kraft Foods Inc. announced Tuesday it would be lowering prices, effective immediately, for certain Maxwell House and Yuban coffees. The Maxwell House and Yuban select ground coffee prices will be decreased by 10 cents per pound equivalent, and the Maxwell House, Yuban and Sanka will be decreased by 2.5 cents per ounce.

This move seems to mark a trend this year with coffee manufacturers; J.M. Smucker Co. reduced the prices of four Folgers coffee products due to a decrease in the cost of green beans, and four other major U.S. roasters have done the same in the past year.

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Nestle banks on consumer return to bottled water

BY Melissa Valliant

VEVEY, Switzerland For the past couple months, Nestle Pure Life, manufacturer of Perrier, Poland Spring, Vittel and Awuarel, has been aggressively pushing its new health-and-wellness advertising campaign. The company has been informing consumers of the healthy benefits of drinking water and the harmful effects of drinking soda through new labels on their packaging, as well as TV commercials on Hispanic channels. Some Poland Spring bottles stated, “A typical 12-ounce soda contains the equivalent of 10 teaspoons of sugar,” and popular talk-show host Cristina Saralegui did voice-overs saying, “Kids don’t jump in pools of high-fructose corn syrup,” in commercials portraying children jumping in clear pools.

The new campaign is meant to combat plummeting water bottle sales, which were down to $17 billion in the U.S. last year, a number significantly impacted by people viewing bottled water as environmentally unfriendly. In an interview with Ad Age, Nestle Waters North America president and chief executive officer Kim Jeffery stated that he disagreed with critics. “I would argue that we’re good for the environment, and we’re good for human health, as opposed to being an environmental villain.”

By targeting sodas, Nestle is fighting its main competitors—Coca-Cola, which owns Dasani, and PepsiCo, which owns Aquafina. In 2006, 70 percent of the increase in sales of bottled water in the United States came from people switching drinks, according to Bob Davino, a vice president of marketing for Nestle Waters. Jeffery said Nestle’s Eco-Shape bottle is proof of their efforts to reduce their carbon footprint. The Eco-Shape bottle is the lightest half-liter bottle being made for beverages today, Jeffery said, and the company is planning to eliminate another 20 percent of its weight.

Jeffery claimed cited a small media budget as the reason for not being quite as transparent as critics. “We’re half the size of the soft-drink industry, and our media budget is about 10 percent of theirs.” The new campaign includes nine messages rotating through Nestle bottled water labels, and according to Ad Age, the commercials featured on Hispanic channels are gaining traction. “One of the things we know is that when people migrate to this country from Latin American countries, they are very familiar with the Nestle trademark,” Jeffery said. “There’s a high level of trust, and they index very high in bottled-water consumption because of the quality of tap water in their native countries.”

Jeffery also explained to Ad Age that it is impossible to trust tap water, since it often flows through an “infrastructure that’s as much as 100 years old.” He believes people should drink Nestle Pure Life bottled water because the company can guarantee that the product is “high quality,” healthy and is contained in packaging that has gone through a significant reduction in plastic.

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Digital game on Meijer Web site sparks surge of visits

BY Alaric DeArment

GRAND RAPIDS, Mich. An online game that Meijer launched last month to showcase the mass merchandiser’s offerings on its Web site has attracted more than 300,000 users from every state, Meijer announced Monday.

The game, “Wish Carefully,” at www.wishcarefully.com, allows users to wish for gifts, which in turn enters them into a sweepstakes to win gifts ranging from electronics to jewelry and gift cards.

“We are thrilled with the response to “Wish Carefully,” Meijer director of e-commerce Dawn Bronkema said. “Although Meijer is only located in five states, the Meijer brand is nationwide thanks to a huge number of participants across the country who have chosen to play the game and try to win a holiday gift.”

Meijer has spread the game virally, allowing users to place it in their personal Web pages, including on social networking sites such as MySpace and Facebook.

The chain operates 185 stores in Michigan, Ohio, Indiana, Illinois and Kentucky.

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