The global recession has taken a toll on brand loyalty in the grocery sector, according to new research from the United States. A study by Catalina Marketing’s Pointer Media Network and the Chief Marketing Officer (CMO) Council identified the purchasing patterns of over 34 million US shoppers purchasing patterns for two-years across 685 leading CPG brands and 24,000 retail stores and discovered a rise in brand defection. The milestone study, entitled Losing Loyalty, The Consumer Defection Dilemma,... ...Read more »

The latest TNS Worldpanel grocery market share figures in the UK show the defensive sector continuing to ride out the recession and growing strongly at 6.5%. There are several signs that shoppers have adopted a more measured approach to the recession and have started to revert to pre-recession behaviour – to an extent. In particular, the stellar growth of discount supermarket chains Aldi and Lidl – which has been seen in Australia with Aldi – has tailed off and both outlets saw... ...Read more »

Japan’s Fair Trade Commission has contended that Seven-Eleven Japan, the convenience business of Seven & I, illegally pressured franchisees to avoid discounting the price of food products. In a statement, the competition watchdog claimed that 7-Eleven franchisees were advised not to reduce food prices with a reported implication that they would terminate the contracts of those who did. The FTC ordered the company to cease such practices but the company is reportedly considering appealing... ...Read more »

The Australian Competition and Consumer Commission has recently released the Food Labelling Guide, which has been designed to ensure food and beverage marketers are aware of their obligations to ensure all advertising and food labels are accurate. Any misleading information on packaging or in advertising is pursued by the ACCC under the Trade Practices Act. The Guide is a supplement to the competition regulator’s 2006 publication – Food and beverage industry: food descriptors guideline... ...Read more »

The Freddo Frog, one of the most iconic Australian confectionery products, is celebrating its 80th birthday with an online campaign that has ignited the debate over self-regulation of advertising less than a week after a Bill to ban junk food advertising to children was defeated in the Senate. Cadbury, a signatory to the Responsible Children’s Marketing Initiative and owner of the Freddo brand since 1965, maintains that the campaign is not targeted at children and is a benchmark for responsible... ...Read more »

A leading international expert on the global food industry has told a conference in Brisbane this week that the future for Australian food exports is strong as long as we can build on our ‘beer and vegemite’ image. Speaking at the National Farmers’ Federation congress, Professor David Hughes said Australia’s position as a low-cost producer had evaporated but the high quality of our food presented an alternative marketing proposition. “What you need is customers with... ...Read more »

The success of marketing probiotic yoghurt products such as Yoplait and Yakult means that Australian consumers are more aware of the importance of digestive health issues than ever before, offering a golden opportunity to food and beverage firms. Terms such as ‘digestivus culturus’ and ‘l. casei shirota’, which at one time would mystify consumers, are now becoming more widely understood. However, this is only the beginning of the digestive health movement, according to Mark... ...Read more »

Despite the buzz about healthy dining and restaurant nutrition labelling, healthy menu items still face a tough battle for acceptance, according to Mintel Menu Insights. In a survey in America, the market research firm discovered that only one in five rank food health as an important factor when ordering dinner. Far more essential are taste and hunger satisfaction, selected by 77% and 44% of respondents, respectively, when describing what they look for on a dinner menu. And, although over three-quarters... ...Read more »

Pizza Hut, one of the world’s largest pizza chains, has rejected suggestions that they were contemplating a name change to “The Hut”. The company did introduce a brief name change in the US recently to promote their new pasta range but beyond the “Pasta Hut” campaign there appears no desire to alter the name. “Pizza Hut is not changing its name,” Brian Niccol, CMO of Pizza Hut, advised. “We are proud of our name and heritage and will continue to be... ...Read more »

A decision last week to vote down a Senate bill to protect children from food advertising has been welcomed by Australia’s leading organisation representing food and grocery manufacturers, the Australian Food and Grocery Council (AFGC). The Greens Protecting Children from Junk Food Advertising (Broadcasting Amendment) Bill 2008 was introduced by Greens leader Bob Brown in an attempt to impose restrictions on food and beverage advertising but failed to gain the support of the major parties. AFGC... ...Read more »