Bolder beer bottle; Spreading the sweetness; More 500-calorie menu items
NEW PRODUCTS
Bolder Beer Bottle
With the help of Ball Packaging Europe and its Impact bottle, SKOL International is introducing SKOL PLATINUM beer in Rwanda. The aluminum extruded bottle is the first launch of its kind in the growing African market, which is set to double in size over the next 10 years. The 33-cl bottle’s longneck design plus 8-color printing reinforce the premium brand and garner attention at point of sale. The product is targeted to young, urban consumers age 22 to 28.
The aluminum bottle offers several advantages. It’s light weight, 100% recyclable,unbreakable, chills quickly, feels cool to the touch, and protects the product from light and air. An air cushion absorbs the pressure of carbonation, reducing the risk of fizzing. “We always strive to be unique and differentiate ourselves from our competitors,” said Mark Mugarura, SKOL Marketing Director. “An innovative packaging like the Impact bottle provides us with a great opportunity to add to our portfolio.”
Spreading the Sweetness
To extend its reach in snacking, The Hershey Co. has rolled out Hershey’s Spreads, a new line of chocolate spreads in three varieties: Chocolate, Chocolate with Almond, and Chocolate with Hazelnut. “The average American snacks more than two times a day and what better way to transform everyday snacks into delicious treats than with the genuine chocolate flavor that only Hershey can deliver,” said Anna Lingeris, a spokesperson for Hershey. The new spreads can be used to enhance traditional products, such as graham crackers, strawberries, or bananas, and more adventurous pairings like celery, pineapple, or pickles. Hershey’s Spreads are available throughout the United States at food, mass, drug, and convenience stores and will be offered in 13-oz jars that retail for $3.79.
General Mills’ Open Innovation Fosters New Products for Convenience Channels
Most consumers know General Mills for its many brands of cereals and other packaged products in various aisles of the supermarket. It’s a lesser known fact that one of its key businesses is the Convenience & Foodservice division, which delivers the company’s famous brands to on-the-go consumers in convenience stores, schools, hotels, hospitals, restaurants, and bakeries throughout the United States.
Over the past five years, General Mills has transformed its $2 billion Convenience & Foodservice business to significantly improve its profitability and grow market share. One way the division has done so is by focusing on bringing innovative new products to key growth channels, such as convenience stores.
“Seven of the 10 fastest growing categories in convenience stores are food and beverage categories,” said David Wilson, Marketing Manager for General Mills Convenience. “Food products, and snack foods in particular, are becoming an increasingly important contributor to channel sales and profit, and we want to grow and innovate quickly to deliver remarkable products to the increasing number of consumers who purchase snacks at a convenience store.”
One of the key strategies to bringing innovation to the convenience-store channel is leveraging external partnerships through open innovation. “Leveraging external partnerships to help us innovate effectively and efficiently is an inherent part of what makes us successful in the c-store channel,” explained Lynn Choi Perrin, Senior Scientist for General Mills. “Due to the unique business model and product distribution for the c-store channel, new product launches start relatively small in comparison to a traditional U.S. retail launch, and then grow year over year. This exponential approach to new product launches is why our division relies heavily on our external partners who are willing to scale with us over time.”
In fact, Perrin explained, nearly 100% of all General Mills’ new product innovation specific for the convenience-store channel is facilitated with the help of outside partners. For example, two brand new products, Chex Chips and Nature Valley Nut Clusters (both launched in January 2014), were fueled by open innovation. The General Mills Convenience team tapped the expertise of an outside partner company to help source the ingredients for Chex Chips, and the product is produced by a co-manufacturer who has more flexibility of scale than General Mills’ own production facilities. Nature Valley Nut Clusters are also a testament to the value of external collaborations, as the format and recipe were developed in partnership with a co-manufacturer that possessed the specific expertise to bring the product more quickly to market.
“It’s critically important that we form win-win, creative partnerships to help us grow in this channel, and allow our partner companies to grow, too,” Perrin said. “Our collaborations go far beyond, ‘Can we run our product on your line?’ Instead, we look for true innovators who are willing to partner with us beyond production to build our brands and mutually benefit our businesses.”
General Mills Convenience connects with external partners through a number of touch-points, such as trade shows, supplier referrals and the G-WIN online portal (www.generalmills.com/win). In many instances, the team looks to existing partnerships to help with additional new projects.
More 500-Calorie Menu ItemsSeveral restaurant chains in the United States have launched new entrees in the 500-something-calorie range to meet the needs of guests looking to manage their weight and/or eat healthier. For example, Applebee’s has added to its Unbelievably Great Tasting & Under 550 Calories Menu with the addition of Savory Cedar Salmon—a smoky, fire-grilled salmon filet topped with artichoke sauce and paired with a medley of seasonal vegetables and herbed potatoes (image shown). The filet is rubbed with cedar seasoning for a unique smoky flavor.
Competitor TGI Fridays has debuted two new entree additions, Sizzling Chicken & Spinach and Sizzling Sirloin & Spinach, each under 450 calories. “We recognize that many of our guests are coming into the New Year with resolutions regarding their weight and wallet,” said Brian Gies, Senior Vice President, Chief Marketing Officer. “The new lower calorie entrees are being launched as the primary offers in Fridays ‘Pick 2 for $10’ value platform, giving all guests the opportunity to try these items.”
Meanwhile, El Pollo Loco is now serving five new meals, each under 500 calories. Priced at $5.99, the new offerings include Mango Grilled Tostada, Black Bean Bowl, Avocado Salad, Avocado Burrito, and Mango Taco Plate.