Food Fights Coming to Your Grocery Store Shelves

HOT lead: Kraft, P&G and General Mills are upping their marketing budgets! Word on the street is that they’re comin’ out — guns blazin’ — to fight off those private-label competitors. And they need you now more than ever. They’re going BIG with investments in advertising, in-store promotion, shelf signage, coupons and packaging.

“Heinz increased marketing spending by 40% for the most recent quarter. Overall, Heinz’s marketing has increased by 60% over the past 4 years. Heinz has significantly increased its coupon program in the U.S. and U.K. as consumers are redeeming them more. These investments aren’t included in the marketing budget.” Could this have something to do with the new cute little ketchup blister packets? Yup, in case you haven’t heard, you’ll soon be able to dip your fries, fingers, Funyuns and whatever favorite foods into the tasty tubs of tomato bliss!

According to Advertising Age, “Hershey boosted spending by 50% in 2009, and expects to increase spending by another 25-30% in 2010. That’s on top of a 26% increase in 2008. They’re planning new marketing, advertising and a myriad of promotions.” And Clorox too. For fiscal year 2010, ending June 30, Clorox expects advertising spending to rise around 6% to $530 million. 40% of Clorox’s marketing spending will be on non-traditional media, such as public relations, social media, branded content and trade marketing, though.

Kellogg is putting its money where its mouth is, with social-media spending beginning to show some returns, particularly with Pop Tarts and Special K. Kellogg has tripled its online spending in the past 3 years, and they “see that continuing in the future.”

Here’s your bull’s-eye: To drive growth in the next 5 years, General Mills will focus on Hispanics, baby boomers and millennials. Now go get ‘em!

[Sources: York & Neff. "Package-Goods Marketers Vow to Boost Spending." AdAge.com. Feb. 18, 2010;  Van Tan, Robin. "Heinz Redesigns Ketchup Blister Pack." QSR Magazine.com. February 2010.]

Print, Email or Share:
  • Twitter
  • Facebook
  • Yahoo! Buzz
  • LinkedIn
  • MySpace
  • Digg
  • del.icio.us
  • Technorati
  • StumbleUpon
  • FriendFeed
  • Google Bookmarks
  • Print
  • email
  • PDF

Post a Response