Posted by Sheila Shayon on May 14, 2013 01:46 PM
Continuing its full-on assault to gain share in the US retail market, Kraft Foods’ Gevalia coffee is counting on spokesman “Johan” to open the java-gates as the brand tries its best to convince consumers to pick up its coffee over Starbucks.
The brand has launched a new web series, "Cup of Knowledge," as another outlet to help the brand market the results of an independent taste test commissioned by the brand, which reportedly showed that 59.7 percent of coffee drinkers preferred the taste of Gevalia's House Blend over Starbucks Breakfast Blend. This isn't the first time the brands have battled on the taste test front.
Back in February, the U.S. National Advertising Division ordered Kraft Foods to discontinue its marketing claims that Gevalia tastes like Starbucks, with marketing copy like, "New! If you like Starbucks Breakfast Blend, try this!"Continue reading...
Posted by Kristen Van Nest on April 17, 2013 12:20 PM
Last year, Starbucks declared its support of same-sex marriage, which resulted in a boycott by the National Organization for Marriage. The coffee chain hasn't backed down one bit, however, as CEO Howard Schultz continues to blur the line between business and the personal lives of his millions of customers.
At a recent annual shareholders meeting, Tom Strobhar, a shareholder and founder of the Corporate Morality Action Center, an anti-abortion, anti-gay marriage organization, suggested the boycott had a negative impact on first quarter sales and earnings. The ever-outspoken CEO swiftly responded, “Not every decision is an economic decision... The lens in which we are making that decision is through the lens of our people. We employ over 200,000 people in this company, and we want to embrace diversity."
Schultz then told Strobhar he was more than welcome to sell his shares and take his money elsewhere. While the remarks seem brazen, Starbuck’s stance on hot-button political issues and support of equal rights for its employees have been a part of the brand’s long-term strategy to increase internal brand engagement and decrease turnover. What's more, taking a position on causes that affect its workforce has had a positive impact on its bottom line.Continue reading...
sip on this
Posted by Sheila Shayon on April 2, 2013 05:02 PM
Nescafé is turning 75 and promising even more gusto going forward. The grandfather of instant coffee, made by Nestlé, (the name is a portmanteau of the words Nestlé and café) it was introduced in Switzerland, April 1, 1938.
Now (as you can find out in Nestle's anniversary slideshow and Facebook celebration, among other festive touchpoints) more than 5,500 cups of Nescafé are consumed every second in variations catering to taste preferences around the world.
The brand is getting a big boost from the Chinese and Japanese markets and the imminent market availability of new Dolce Gusto systems for coffee pods and premium Nespresso machines. "Nescafe is a big brand with different faces," said CEO Paul Bulcke to Reuters. "Nescafe is growing very well in China, but also in Japan, which is an important market. For example in Asia, Nescafe 3-in-1 sticks with milk and sugar that are ready to be used, are very strong."Continue reading...
truth in advertising
Posted by Sheila Shayon on March 29, 2013 04:08 PM
Trouble is brewing between Kraft Foods and Starbucks. The one-time partners have turned courtroom rivals over the $6.6 billion ground coffee category and the former’s advertising claims for its Gevalia Kaffe brand, which Kraft touts as "an exclusively smooth yet rich coffee experience that has been perfected by Swedes since 1853."
In its latest Gevalia campaign, Kraft says a blind third-party taste test “found nearly 60 percent of coffee drinkers preferred Gevalia's House Blend over Starbucks House Blend, versus 34 percent favoring the latter.”
Kraft’s premium coffee brand is leveraging its commissioned survey of U.S. adults to the hilt with its new TV campaign featuring a Swede named Johan, who is seen in the coffee aisle at a grocery store telling shoppers about the taste test while standing next to displays of ready to take home packages of Gevalia and Starbucks coffee.Continue reading...
sip on this
Posted by Mark J. Miller on March 8, 2013 03:35 PM
New York politicians are making life difficult for anybody who sells sugared beverages, but it doesn't stop there. Recently, Dunkin’ Donuts came under fire from state comptroller Thomas P. DiNapoli, who doesn't usually deal with what restaurants serve to their customers.
The state’s pension fund owns 51,400 shares of Dunkin’ Brands Group (worth around $2 million) and DiNapoli has been working toward getting any companies the fund invests in to be more involved in sustainable practices, the New York Times reports. As a result of DiNapoli's work, Dunkin’ said Thursday that it would announce in the second quarter a timetable for obtaining the palm oil it uses in its products from sustainable sources.
“Consumers may not realize that many of the foods and cosmetics they eat and use contain palm oil that has been harvested in ways that are severely detrimental to the environment,” DiNapoli said in a statement. “Shareholder value is enhanced when companies take steps to address the risks associated with environmental practices that promote climate change.”
Meanwhile, Dunkin’ and other coffee vendors in New York City are preparing for the difficult task ahead of informing its customers about which of its drinks have more sugar than the new Mayor Bloomberg-pushed, American Beverage Association-opposed, NYC sugary drinks ban allows. According to the Times, Dunkin’ Donuts is handing out fliers to inform its customers while Starbucks is waiting until the rule goes into effect Tuesday before taking any action.Continue reading...
Posted by Sheila Shayon on March 8, 2013 02:43 PM
Occasional coffee drinkers and Starbucks junkies alike all visit the Seattle-based brewer's shops for the same reason, and it's not a caffeine kick. The java giant is just as recognized for its lifestyle brand as it is its beverages, and that may be just the thing missing from competitors' offerings.
Despite the fact that Starbucks recently took a second-place post against McDonald's in a social hospitality survey, the company continues to be the most relevant coffee shop brand around—and they don't even try that hard. Continue reading...
Posted by Mark J. Miller on January 30, 2013 05:03 PM
Nguyen Quoc Cuong, Vietnam's ambassador to the United States, met in Washington this week with executives from Boeing, IBM, Microsoft, Google, DHL, KPMG, and Lockheed Martin, along with members of the U.S. Chamber of Commerce, to discuss how to “boost the two countries’ trade ties in a more effective manner.”
But apparently, Dunkin’ Donuts got the message long ago. The donut/coffee chain has signed a deal with Vietnam Food and Beverage Co. to launch restaurants across Vietnam over the next few years, with the first planned forHo Chi Minh City, The Wall Street Journal reports.
The new eateries won’t just carry traditional Dunkin' fare, but also some regional items.Continue reading...
Posted by Dale Buss on January 25, 2013 02:15 PM
Starbucks is steering its brand to new heights and growing sales despite a number of global challenges, making its defensive pullback of a few years ago ever more of a distant memory.
Starbucks CEO Howard Schultz described for investors on Thursday advances ranging from an increased U.S. store count to solid customer response in Mumbai, and from a better-than-expected test of La Boulange bakery goods to rapid growth of its digital initiative.
He was bullish on about every count, even though slowing growth in China has hurt many other QSR chains and there were "unusual headwinds" in other markets such as the United States, he said, which was hurt by Super Storm Sandy.
Overall, Starbucks' fourth-quarter sales at same stores improved by 11 percent in China and the Asia-Pacific region, by 7 percent in the Americas and by 6 percent globally as a result of the company's aggressive international expansion and equally determined domestic growth initiatives, Shultz said.Continue reading...