Convenience Retailer

May-June 2013

The May/June issue is now at the printer and available here for online viewing.

May-June 2013

The May/June issue is now at the printer and available here for online viewing.

CandyRific to Launch Line of Trash Pack Novelties

Novelty confectionery company CandyRific recently announces a new licensing agreement with Moose Enterprise for the Trash Pack™. Now, CandyRific is set to launch a line of interactive novelty items featuring this line of garbage-inspired collectibles.

The Trash Pack, fondly known as the “Gross Gang in Your Garbage,” includes soft collectable characters, trading cards, storage and playsets. The Trash Pack toy line is available in most major U.S. toy retailers, with 130 million “Trashies” sold worldwide. However, the Trash Pack brand is poised to gain momentum in the United States, with a $3 million U.S. marketing budget for the coming year year. Marketing of the brand will focus in particular on a major television advertising campaign expected to air on Nickelodeon, Nicktoons, Cartoon Network, Disney XD, HUB, CW, Teletoon, VRAK and YTV.

As part of the agreement, CandyRific will introduce two Trash Pack novelties that will be available for shipping beginning in June 2013. The Trash Pack Light Up Slime Wand will provide kids with hours of fun grossing out their friends. The colorful Trash Pack Light Up Slime Wand  turns fluorescent green at the push of a button and comes complete with .53 oz. of microbytes candy.

The Trash Pack Pop Up Glow Light features a hideous, repugnant Trashie popping out of his trash can to light your path through the garbage. The Trash Pack Pop Up Glow Light also includes .53 oz. of microbytes candy. The MSRP of the both products in CandyRific’s Trash Pack line is $3.99, and both ship in cases of six 12-count displays.

CandyRific sells candy and novelty product combinations utilizing popular licensed brands, including M&M’S®, SKITTLES®, STARBURST®, Disney, Scooby-Doo and Dreamworks.  All products have a high perceived value, are merchandised in colorful displays and are especially popular with collectors. The company has distribution deals with many major retailers in the United States and in almost every major market in the world. Retailers interested in CandyRific novelties can call 502.893.3626 or visit www.candyrific.com

Product of the day—JambaGO Express Smoothies

Jamba Juice Company recently announced the launch of two exciting new smoothie flavors, providing consumers with additional choices in its JambaGO® express smoothie concept. JambaGO was designed to facilitate the rapid expansion of Jamba’s brand presence into venues where healthier, quick serve options have become an essential component of the menu offering. These venues include convenience stores, primary schools, college campuses, grocery delis and entertainment venues.

The two new flavor offerings include Mango Magnifico™, a tropical mix of mango, pineapple and orange, and Apple Cherry Chill™, the perfect pairing of apples and cherries, bursting with flavor.

Jamba Juice successfully met its 2012 JambaGO® goal of having its products offered in over 400 locations. The company expects continued, exponential growth in 2013. “The introduction of two new JambaGO® flavors signifies our acknowledgement that we have developed an innovative and differentiated solution for foodservice providers seeking healthier beverage options for their constituents. We are very pleased with our progress and expect to open an additional 1,000 served locations in 2013,” said James D. White, Chairman, President and CEO of Jamba Juice. “The popularity of our brand and quality of our products have facilitated rapid expansion of the JambaGO® concept and broadened brand awareness among new fans in new locations across the U.S.”

Founded in 1990, Jamba Juice Company is a leading restaurant retailer of better-for-you, specialty beverage and food offerings, which include great tasting, whole fruit smoothies, fresh squeezed juices and juice blends, hot coffee and teas, hot oatmeal, breakfast wraps, bistro sandwiches and mini-wraps, California Flatbreads™, frozen yogurt, and a variety of baked goods and snacks. Jamba-branded products for at-home enjoyment are also available through select retailers across the nation and in Jamba outlets. As of October 2, 2012, there were 788 store locations throughout the world. Fans of Jamba Juice can learn more about specific offerings and promotions, and find a location near them by visiting the Jamba Juice website at www.jambajuice.com.

Product of the day—Loeb’s Onion Crunch

Loeb’s Onion Crunch, founded by entrepreneur Nick Loeb in 2011, is the only kosher pareve, vegan, crispy, crunchy onion topping that delivers a delicious roasted onion flavor designed to enhance any meal occasion throughout the day. Onion Crunch is made from fresh, specially-selected sweet onions, lightly fried in high-quality vegetable oil and seasoned. Made from real onions, Onion Crunch is prepared with just four ingredients, and it has no added sugars. Onion Crunch is available in four flavors: Original Onion Crunch is a tasty, crispy onion topping that adds the crunch you crave to your favorite foods. Bacon Onion Crunch adds a subtle but distinct mouthwatering flavor of bacon. BBQ Onion Crunch packs a ton of smoky flavor in one bite and is a great addition to any family mealtime or backyard grilling spread. And Chipotle Onion Crunch delivers an unexpected kick of peppery heat to spice up a snack or dip. Onion Crunch is currently available at 600 QuickTrip locations, over 600 Holiday Station stores, Pacific Northwest-area 7-Eleven Stores and many other retail locations nationwide.

Loeb’s Onion Crunch
www.onioncrunch.com

Study Reveals Payroll Tax Increase Causing Shifts in CPG Shopping Behavior

For a consumer with household income of $40,000, the 2 percent increase in the payroll tax represents $800 in reduced spending power per year. This can be the difference between shopping at a lower-cost dollar store versus a mass merchandiser, increasing purchases of a store brand versus a national brand and suppressing the impulse to pick up a snack on the spur of the moment while shopping in a store. According to a recent study by market firm Symphony Consulting, the recent payroll tax increase has already had a measurable impact on the types of stores customers are shopping in, the types of brands purchased and the actual quantity of sales retailers are making.

“To date, shifts in shopper behavior are subtle, but patterns are emerging that deserve close and ongoing scrutiny,” said Managing Director of Symphony Consulting, Dr. Krishnakumar S. Davey. “Our initial analysis offers highly-current data on shopper behavior that will form the basis for ongoing research into the impact of the payroll tax increase.”
Comparing dollar sales growth in food and beverages in the first four weeks of 2013 to the last four weeks of 2012 reveals little change in shopper behavior. Sales growth remained constant at 2.1 percent in this timeframe, and food inflation growth decreased to 1 percent from 1.4 percent. However, it is telling that in the last week of the month, discretionary categories across all outlets experienced some softness.

Importantly Symphony Consulting’s analysis reveals evidence of softness in shopper purchases along several key dimensions. Dollar sales growth for all channels remained constant at 2.1 percent in the first four weeks of 2013 and the last four weeks of 2012. However, sales growth at mass merchandisers decreased to 3.3 percent from 5.3 percent in this timeframe. It appears that dollar stores have picked up some business from mass merchandisers. Club store dollar sales growth also registered a decline.

“We expect payroll tax increases will impact non-CPG spending, such as gas, clothes and entertainment, potentially more than CPG spending. However, out-of-home consumption will likely drop, and specifically out-of-home breakfast categories will be negatively impacted,” said Davey. “Consumers usually eliminate the out-of-home breakfast meal first when they cut spending. Economic growth is expected to be stagnant due to tax increases and continued high unemployment. Moreover, the recent significant spike in gas prices is going to further squeeze the consumer’s wallet. Some stores, convenience stores in particular, are very sensitive to gas price increases.

“Our data focuses on the $35 billion food and beverage segment of CPG,” said Davey. “It is clear it will take time for shopper behavior to more comprehensively reflect the impact of the payroll tax increase. After all, most consumers have received only one paycheck during the time of this analysis. It is possible that the dollar sales declines we observed toward the end of January will continue, and Symphony Consulting will update its analysis continuously to provide quantitative, statistically-significant information on shoppers’ reaction to this tax increase.”

SymphonyIRI Group is a global leader in innovative solutions and services for the CPG, retail and healthcare industries. SymphonyIRI uniquely combines powerful market and shopper information, predictive analytics, flexible technology solutions and consulting services to help its clients drive and grow their businesses. For more information, visit www.SymphonyIRI.com.

Product of the day—M&M’S Brand Snack Mix

Recently named the 2013 Product of the Year in the candy and snacks category by Product of the Year USA, M&M’S® Brand Snack Mix comes in three varieties: M&M’S Brand Milk Chocolate Candies Snack Mix includes Milk Chocolate M&M’S, mini chocolate chip cookies, peanuts and mini pretzel twists. M&M’S Brand Dark Chocolate Candies Snack Mix features Dark Chocolate M&M’S, raisins, almonds and mini pretzel twists. M&M’S Brand Peanut Chocolate Candies Snack Mix includes Peanut M&M’S, mini shortbread cookies, almonds and mini pretzel twists. “We think [this is] a great addition to our product line-up as it satisfies those looking for a creamy, crunchy, sweet and salty snack, all in one bag,” said Roy Benin, Chief Consumer Officer for Mars Chocolate North America. M&M’S Brand Snack Mix is just one of many iconic M&Ms snack foods, which include Milk, Peanut, Peanut Butter, Dark Chocolate, Dark Chocolate Peanut, Coconut, Almond and Pretzel M&M’S Candies. Consumers can find M&M'S® Brand Snack Mix nationwide in the candy aisle in convenience, drug, grocery, mass, specialty and value stores now.

Mars Chocolate North America
908.852.1000
www.mms.com

Hispanic Men Presenting Unique Opportunities for Marketers

Although the Hispanic population continues to grow at a fast pace, as does the population’s purchasing power, over the last several years, much of the marketing to this demographic has been specifically directed at Latinas, thus neglecting Hispanic men, an equally important market segment.

According to recent research from Mintel, 42 percent of Hispanic men and more than half (55 percent) of Hispanic dads are the top decision makers on the purchases made in their households. Around half (54 percent) of Hispanic men aged 45 to 64 have the most influence on their household purchasing decisions, as do 50 percent of Hispanic men aged 35 to 44. These statistics reveal how valuable Hispanic men can be to potential marketers.

“Everywhere we look, marketers are directing their focus on Latinas, but brands are forgetting to talk to Hispanic men. Ignoring Hispanic men is an unwise mistake, as this growing group, like most men in the U.S., has taken on a greater role with household chores, caring for children and shopping for the household,” said Leylha Ahuile, Senior Multicultural Analyst at Mintel.

“Marketing efforts that discuss how Hispanic men, and Hispanic dads in particular, can obtain top value in their household purchases could set a…retailer apart from its competitors, leading to greater loyalty among Hispanic men who are shopping for the household. By failing to reach out to Hispanic men, brands and retailers will miss out on the chance to establish themselves as the first choice among a segment of shoppers poised to gain great influence in the coming years.”

Despite their active role in their households, when it comes to their portrayal in the media, two-thirds of Hispanic men believe they are stereotyped by advertisers. “Hispanic men feel like they are misrepresented in the media. This means that marketers may be missing the mark with their advertising initiatives in both Spanish- and English-language media,” said Ahuile. “By having greater sensitivity to Hispanic culture, stereotypes could be omitted from ads, and a higher level of engagement could be reached.”

When it comes to where to shop, three in four Hispanic men shop for food items at a traditional grocery store, making it the leading destination among Hispanic men for food shopping for their households. However, Hispanic fathers are more likely to purchase groceries at mass merchandisers, with 71 percent of them doing so, compared to 63 percent of Hispanic men without children.

As for key purchasing factors, Latinos like to play it safe. Some 44 percent of Hispanic men bought a new product after first sampling it in a store, while 42 percent made a purchase after a friend or family member recommended the product. Moreover, around a third of Hispanic men are more likely to be influenced by ads on Spanish-language TV than ads on English-language TV.

What’s more, in certain categories, Hispanic men are more brand loyal than the larger Latino population, often willing to pay a bit more for their preferred brand. Some 35 percent of Hispanic men think more expensive brands of laundry detergents are more effective than bargain brands, and some 58 percent of them only shop at their favorite stores, as they are confident they will find the brands of merchandise they like there.

For more information on the study, visit www.mintel.com.

Product of the day—SK Energy Shots from @SKEnergyShots

SK Energy Shots, was recognized as the Number One Energy Product for 2013 by Product of the Year USA. Product of the Year is the world’s largest consumer-voted program that recognizes innovation in consumer packaged goods.

In a category where customers seemed long resigned to the belief that “energy that works” equates to “energy that hurts,” SK Energy Shots has seen success by offering consumers a “better for you,” tastier source of energy than the products to which they are accustomed. SK Energy is made with premium ingredients, including antioxidants, caffeine from coffee beans, 100 percent natural flavors and vitamins A, B6, B8, B12, C and E. In addition, the product shuns more controversial ingredients, like taurine, guarana and artificial caffeine. Striking a delicate balance between potency and purity was a key reason SK Energy was awarded this year’s Energy Product of the Year prize.

SK Energy has successfully brought new, health-conscious consumers into the energy category, while at the same time converting existing energy product users who are looking for that better source of energy. SK Energy already has a number of celebrity devotees, including five-time Pro Bowl and NFL superstar Wes Welker and wide receiver Miles Austin, as well as Genevieve Boulanger, fitness trainer to the stars. Boulanger gives SK to her clients so that they can power through two-a-day workouts.

“We all need energy, and we all love the way energy makes us feel, but the reality is there were no options for people like us, people who care about what they put into their bodies,” said SK Energy CEO Chris Clarke. “We were driven to create a product that gives consumers the energy boost they are looking for without the compromise…Winning 2013 energy product of the year is confirmation of everything we’ve been doing and everything we believe in.”

SK Energy Shots was originally co-founded by Curtis “50 Cent” Jackson and social entrepreneur, Chris Clarke. Demonstrating the company’s commitment to social causes, every energy shot sold provides a meal to a hungry child through the United Nations World Food Programme (WFP). SK Energy shots are available in 100 percent natural berry, orange and grape flavors, and they are sold at over 40,000 locations nationwide, including 7-11, Rite Aid, GNC, Walgreens, and CVS.

Product of the day—Doritos Locos Tacos Chips

Building off last year’s wildly successful launch of Doritos Locos Tacos at Taco Bell and the more recent launch of Cool Ranch Doritos Locos Tacos, Frito-Lay has now introduced a line of Doritos Locos Tacos-inspired chips. Each bag contains two different flavors of Doritos chips, designed to mirror the experience of eating a Doritos Loco Taco. The new chips are being offered in two flavor combinations: Nacho Cheese with Crunchy Taco and Cool Ranch with Crunchy Taco. Taco Bell’s original decision to team up with Frito-Lay to create Doritos Locos Tacos has been credited with enabling the fast food chain to add 15,000 new jobs in the past year. Executives with the company have called the new menu offering the most successful product launch in the company’s history. Now Doritos is hoping that Doritos Locos Tacos’ legion of loyal fans will flock to stores to try out these new chips, inspired by the popular tacos. Doritos Locos Tacos chips will be available for a limited time.

Frito-Lay
800.352.4477
www.fritolay.com