Wake Up and Smell the Branding: Green Mountain to Change Name to Keurig Finally

Green Mountain Coffee Roasters Inc. will ask its shareholders to approve a name change to Keurig Green Mountain Inc. at its annual meeting on March 6 in Burlington. CEO Brian Kelley said Friday he expects shareholders to approve the name change.

“We have been thinking about the name change for a while,” Kelley said. “So much of our business is driven by the Keurig single-cup system. It really is a reflection of who we are as a company.”

Kelley said consumers won’t notice any difference as a result of the name change. Green Mountain Coffee will remain the brand name for the company’s roasted coffee. The Waterbury company has grown to annual sales in excess of $4 billion largely on the success of its K-Cup brewing system, invented by Keurig, which brews coffee quickly in single-serving portions.

Green Mountain Coffee Roasters initially took a small stake in Keurig, based in Boston, but seven years ago bought the remaining shares of the company.

“As we have effectively and successfully brought the two companies together, we decided it was time to reflect that in the name of the company,” Kelley said. “The new name emphasizes the fact that the Keurig beverage system has taken America by storm and the Green Mountain brand of coffee is the most powerful brand in that system.”

Green Mountain Coffee stock closed at $80.76 Friday, up 7 cents.

Original article can be found at: http://www.burlingtonfreepress.com/article/20140110/BUSINESS/301100044/Green-Mountain-Coffee-plans-name-change?nclick_check=1

Panera Bread Puts Branded K-cups on Retail Shelves in US

Panera Bread Co. is getting in on the K-Cup action.

The fast casual chain said it would debut single-serve coffee pods nationwide, featuring the same coffee served at its 1,736 bakery-cafes.

Panera already offers ground coffee, but the pods are meant to be more convenient for customers who want to drink Panera coffee at home. The coffee is from Distant Lands Coffee, based in Texas.

The pods are currently available at Supervalue, Save Mart, Hy-Vee, Dierbergs and select Winn-Dixie locations.

“With Panera Single-Serve Cups we are offering them the same fresh coffee experience in their own kitchen,” Stephanie Crimmins, vice president, said in a statement.

St. Louis-based Panera reported a profit of $43 million on revenue of $572.5 million for the quarter ended Sept. 24. But with just a 1.7 percent rise in comparable same-store sales, company executives are taking “deliberate steps” to drive transactions and add operational capabilities.

Overall, single-cup brewing has taken off in recent years, and now accounts for 13 percent of the market, according to research firm IBISWorld.

“Consumers are increasingly demanding specialized, high-quality coffee products, particularly in single use servings,” analyst IBISWorld Sarah Turk wrote in September.

In October, local coffee roaster Ronnoco Coffee Co. disclosed its own plans to launch a “K-cup” next year. “They’re very much on trend,” said Scott Meader, who is CEO of the $60 million company, at the time.
But Panera may have a harder sell, according to Jack Russo, an analyst with Edward Jones who covers Starbucks.

“Panera is not known really for their coffee but for their sandwiches and breads,” he said in an email message. “But it is worth a try and this can be (a) profitable, high margin business for them if it works out.

Original article can be located here: http://www.bizjournals.com/stlouis/blog/2013/11/panera-launches-single-serve-coffee-pods.html

Kraft Restructures as It Eyes More Brand-Building

Kraft Restructures as It Eyes More Brand-Building: Food Giant Will Separate Meals and Desserts From Snacks and Sauces

Nine months after Kraft Foods split in two, one of the new companies is restructuring as it looks to boost brand-building.

Kraft Foods Group, which was formed in October as a North American food and beverage business, today said it will divide its grocery division into two units: one focused on meals and desserts and the other housing snacks, sauces and dressings.

The change means Kraft, as of July 1, will have six divisions: beverages, cheese, refrigerated meals, international and foodservice and the two new ones: meals and desserts and “enhancers” and snack nuts. The move is meant to put more focus on brand-building and simplifying the portfolio, which has many brands and categories, the company said in a statement, referring to the former grocery division, which will be eliminated.

Under the new setup, each of the units will have an exec VP reporting directly to Kraft Foods Group CEO Tony Vernon.

Michael Osanloo, exec VP of the soon-to-be defunct grocery business unit, will be promoted to exec VP-president of meals and desserts, which will include Cool Whip whipped topping, Jet-Puffed marshmallows, Jello, Kraft Mac & Cheese, Shake 'N Bake, Stove Top stuffing mix and Velveeta dinners and meal kits. Together, those brands spent $69.3 million on measured media in 2012, according to Kantar Media, or about 11% of Kraft’s total $614.8 million in spending.

Jane Hilk, senior VP of marketing for Oscar Mayer, will take over as exec VP-president of enhancers and snack nuts, which will include A.1 steak sauce, Grey Poupon , Kraft and Bulls-Eye barbecue sauces, Kraft and Good Seasons dressings, Kraft and Miracle Whip spoonable dressings and Planters nuts, trail mixes and peanut butters. Those brands spent a combined $47 million on measured media last year, according to Kantar, or nearly 8% of Kraft’s total.

Oscar Mayer, one of Kraft’s largest spending brands at $105.8 million in measured media, is housed in the refrigerated-meals division, which will continue to be overseen by Nick Meriggioli

Marketing for all of the divisions will still be led by Kraft Chief Marketing Officer Deanie Elsner, who was promoted to the role in January. She has already overseen some agency changes, including recently moving the Philadelphia brand to Roberts & Langer DDB to Roberts & Langer DDB from McgarryBowen. “We appreciate [McgarryBowen’s] work on the brand the past four years and wish them continued success as they continue to support other Kraft brands now and in the future,” said a Kraft spokeswoman.

McgarryBowen still has Miracle Whip, Oscar Mayer and Lunchables, the company confirmed.

Kraft Foods Group was formed in October, when Kraft Foods Inc. split into two companies. The other company is Mondelez International, which houses global snacking and candy brands such as Trident, Cadbury and Oreo.

Original article written by E.J. Schultz for AdvertisingAge.com and can be found here.

Published: June 14, 2013