Superbrands 2004 - Brand Autopsy

Superbrands FOOD
BRAND
a term often used to signify only those carbs that hike up bloodsugar
levels. The FDA is also releasing a new food pyramid in
2005, with changes expected to include a recommendation that
50% of daily carb intake be from whole grains.
Prior to his death last April, Dr. Robert Atkins built his legacy
in the privately-held company he founded, New York-based
Atkins Nutritionals, which continues to expand with a spate of
new products, increased marketing budgets, new licensing agreements
(Subway, TGI Friday’s) and widening retail distribution.
Sales of Atkins-branded products totaled $148 million in 2003,
up 225% from 2002, per Information Resources.
Last October, Boston investment group Parthenon Capital
and Goldman Sachs together purchased an 80% stake
in Atkins Nutritionals for $666 million. Parthenon
co-founder Ernest Jacquet said that the investors
are exploring the possibility of taking Atkins Nutritionals
public late this year or in 2005.
At the same time, food companies have begun
seeking alternative alliances. Kraft earlier this
month agreed to promote some of its products
using the trademark of the South Beach Diet.
A noteworthy introduction in 2003 was Sara
Lee Delightful Breads, with nine carb grams per
slice. After five months on-shelf, Delightful is the best-selling
S48 JUNE 21, 2004
COMPANY NAME,
LOCATION
LEAD AGENCY,
LOCATION
brand in the Bakery Group and the ninth best-selling bread in
the country, per IRI sales data provided by Sara Lee. Even Heinz
resorted to a low-carb intro with One Carb Ketchup. Over in
the cereal aisle, marketers were slower to join the fray. For a while,
they focused on the hottest new addition: freeze-dried fruits.
Specifically, it was the year of the berry. Noting Kellogg’s runaway
success with Special K with Red Berries in 2002—which rang
up $100 million in sales in its first year—General Mills rolled out
Berry Burst Cheerios in Strawberry and Triple Berry. Kraft studded
Post Honey Bunches of Oats with strawberries, and Kellogg followed
with its Fruit Harvest cereals in Apple and Berry SKUs.
By year’s end, cereal marketers figured they had the right
answer to low-carb products. General Mills was first out of the
gate in March with the launch of Total Protein. “Nearly 70% of
consumers are limiting their carb intake, but finding foods that
taste good and offer variety in their diets is challenging,” noted
Peggy Stang, marketing manager for Total Protein.
Kellogg fired back with low-carb Special K, with nine net
carbs per serving trumpeted on-pack, as well as a campaign via
Leo Burnett, Chicago. No. 2 cereal player Kraft is bowing several
products behind its CarbWell brand, including cereals, cereal
bars and salad dressings. Kraft Post will launch two low-carb
cereals this month, just as Quaker Oats bows its Q-Smart brand
of low-carb and zero trans-fat bars and other items.
TOTAL
SALES
(millions)
MEDIA
EXPENDITURES
(millions)
QUALITY
FAMILIARITY
PURCHASE
INTENT
SALTED SNACKS
1. Lay’s PepsiCo, Purchase, NY BBDO, Minneapolis $849.6 $4.3 7.08 94% 8.19 67.8
2. Doritos PepsiCo, Purchase, NY BBDO, Minneapolis 743.1 3.4 7.00 95% 8.06 66.6
3. Tostitos PepsiCo, Purchase, NY GSD&M, Austin, Texas 460.1 0.8 6.90 90% 7.91 63.8
4. Cheetos PepsiCo, Purchase, NY BBDO, Minneapolis 390.2 0.2 6.79 88% 7.58 62.0
5. Ruffles PepsiCo, Purchase, NY BBDO, Minneapolis 337.8 11.8 6.89 92% 7.89 64.6
FROZEN DINNERS AND ENTREES
1. Lean Cuisine Cafe Classics Nestlé, Glendale, CA Euro RSCG MVBMS, NY $407.8 $14.8 6.49 52% 6.69 52.6
2. Stouffer’s Nestlé, Glendale, CA Euro RSCG MVBMS, NY 381.1 2.2 6.58 75% 7.35 57.8
3. Hot Pockets Nestlé, Glendale, CA Euro RSCG MVBMS, NY 287.2 9.7 6.43 81% 7.19 57.3
4. Lean Cuisine Nestlé, Glendale, CA Euro RSCG MVBMS, NY 261.7 0.02 6.47 77% 6.82 53.9
` 5. Stouffer’s Family Style Nestlé, Glendale, CA Euro RSCG MVBMS, NY 233.3 16.1 6.66 64% 7.18 56.5
6. Smart Ones
FROZEN PIZZA
Heinz, Pittsburgh DDB, San Francisco 229.0 2.4 6.36 48% 6.95 53.6
1. DiGiorno Kraft Foods, Glenview, IL FCB, Chicago $491.1 $29.6 N/A N/A N/A N/A
2. Tombstone Kraft Foods, Glenview, IL FCB, Chicago 333.5 0.8 N/A N/A N/A N/A
3. Red Baron Schwan Food, Marshall, MN Campbell Mithun, Minneapolis 269.4 3.5 N/A N/A N/A N/A
4. Freschetta Schwan Food, Marshall, MN Campbell Mithun, Minneapolis 208.5 5.4 N/A N/A N/A N/A
5. Totino’s
COFFEE
General Mills, Minneapolis Saatchi & Saatchi, NY 181.8 0.0 N/A N/A N/A N/A
1. Folgers Procter & Gamble, Cincinnati Saatchi & Saatchi, NY $402.3 $23.6 6.95 84% 7.31 60.3
2. Maxwell House Kraft Foods, Tarrytown, NY Ogilvy & Mather, NY 286.6 12.2 6.80 83% 6.83 56.9
3. Starbucks Ground Kraft Foods, Tarrytown, NY Ogilvy & Mather, NY 134.0 8.5 6.78 70% 6.55 53.3
4. Maxwell House Mstr Blend Kraft Foods, Tarrytown, NY N/A 105.4 N/A 6.75 73% 6.71 55.4
EQUITY
Sources: Information Resources (sales per year ending Dec. 28, 2003); TNS/CMR (media); Harris Interactive/EquiTrend: QxFxPI=E (see key, page S18)
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