Food Business News - February 24, 2015 - (Page 9)

Editorial EDITORIAL STAFF Editor-in-chief Morton I. Sosland Executive editor, markets Neil N. Sosland Subscription models may offer unique marketing opportunities Editor L. Joshua Sosland Executive editor Keith Nunes Senior editor, markets Jay S. Sjerven KEITH NUNES Managing editor Eric J. Schroeder Senior editor, markets Ron Sterk Associate editor Jeff Gelski Assistant editor, markets Laura Lloyd Internet editor Monica Watrous Contributing editor Donna Berry Graphic designer, market graphics, data Christina Sullivan PUBLISHING STAFF Chairman Charles S. Sosland Vice-chairman L. Joshua Sosland President and publisher Mark Sabo Associate publisher G. Michael Gude David DePaul Bruce Webster North American sales Matt O'Shea Vice-president, chief financial officer Melanie Hepperly Audience development director Don Keating Advertising manager Nora Wages Director of design services Sadowna Conarroe Circulation manager Whitney Forrester Digital systems analyst Marj Potts Manager of advertising design Becky White Director of e-Business Jon Hall Director of on-line advertising and promotions Carrie Fluegge Promotions manager Lon Davis WE'RE EAGER TO RECEIVE YOUR FEEDBACK: E-mail or write to us at Food Business News, 4801 Main Street, Suite 650, Kansas City, Mo, 64112 February 24, 2015 ore food and beverage companies are Mills Inc. launched a snack subscription serexperimenting with on-line subscrip- vice called nibblr this past year. Each $5.99 box tion services in an effort to generate contains four portion-controlled snacks and is sales and attract and engage customers. The delivered by mail. Users may order on-line at programs shorten the supply chain and may allow marketers to achieve a level of interacPackaged in individually sealed trays, the tion with consumers that is unheard of through snack mixes feature nuts, fruits, chocolate and more traditional on-line retail programs. The such flavors as curry, chili pepper and chai. A on-line model is just one more example of how variety called Chai It, You'll Like It contains e-commerce is altering the way many compa- golden raisins, raisins and vanilla chai raisins. nies do business. The Tokyo Heat Wave mix has wasabi-coated Earlier this month, Keurig Green Mountain peas, sesame sticks and peanut crackers. Gosaid it is launching a subscription-oriented ser- rilla-A-Go-Go contains dried bananas, peanuts vice as a new way to engage its customers and sell its brewers. Subscription services have the potential to allow a Through the company's Keurig Choice program, consumers may company to connect with consumers and achieve subscribe to the service, which allows them to buy a brewer and a level of brand loyalty that is far beyond current pay for it over a set period of time. In discussing the program, efforts, whether they are of the brick and mortar or Brian Kelley, chairman and chief executive officer of Keurig on-line variety. Green Mountain, noted that how consumers are shopping for goods and services is changing, i lik d d k h l d i i S b ib and consumer packaged goods companies like and dark chocolate-covered raisins. Subscribers may choose the snacks they receive via a Keurig Green Mountain must keep pace. "To align with the changes we are seeing in rating system and the frequency of delivery. the marketplace, particularly with the young- Much like Starbucks, nibblr allows General er demographic, we are testing a number of Mills to offer premium snacks in non-traditional unique Keurig system shopping and pricing flavors that may be perceived as adventurous. It is easy to dismiss initiatives such as these models," he said. "They're designed to make it even more appealing for a broader segment of as insignificant niche efforts, particularly when measured against other initiatives their parent consumers to join the Keurig system." A few weeks after Mr. Kelley made his re- companies are currently undertaking. But there marks, the Starbucks Coffee Co. launched its is a race under way to identify the most effecfresh delivery subscription service, giving on- tive on-line business models and such experiline customers access to its selection of small- ments are paving the way for what is sure to be lot coffees roasted at the company's Seattle Re- significant future investment. Subscription services have the potential serve Roastery and Tasting Room. A subscription ensures customers receive prompt ship- to allow a company like General Mills, which ment of their coffee - within three to five days sells a diversified portfolio of products, to conof when the beans are roasted, depending on nect with consumers and achieve a level of location in the United States. The program al- brand loyalty that is far beyond current efforts, lows Starbucks to tap into several trends, most whether they are of the brick and mortar or notably a demand for fresh, authentic products on-line variety. There will not be a single, winning strategy in on-line commerce. Much like that feature a level of exclusivity. It isn't only coffee companies that are gravi- the brick and mortar retail sector is continually tating toward subscription programs. Such undergoing evolution, so will on-line efforts. small companies as Popcorn Willy, Washing- Subscription services may be one way for comton, Pa., have services designed to introduce panies to achieve a more personalized relationits products to new consumers, and General ship with its consumers. FBN M FOODBUSINESS NEWS ® 9

Table of Contents for the Digital Edition of Food Business News - February 24, 2015

Food Business News - February 24, 2015
General Mills accepts the C.P.G. challenge
Gluten-free front and center
Mexican trade rift looms over Sweetener Colloquium
Table of Contents
Web Contents
Editorial - Subscription models may offer unique marketing opportunities
Confectionery companies switching to simpler ingredients
McCormick to acquire Italian spices and seasonings company
Mondelez has big plans to grow small platforms
WhiteWave Foods ‘busting at the seams'
More c-suite change at Kraft Foods
Keurig in transition
Mondelez acquires Enjoy Life Foods
Innovation paying for PepsiCo
TreeHouse Foods trims expectations
Kraft cleans up Capri Sun
Washington - Federal bills seek to mandate G.M.O. food labeling
Company Profile - Dr Pepper Snapple Group seizing opportunities
Capitalizing on R.C.I.
Ingredient Innovations - Clean label starches get tougher
Are clean labels and G.M.O. ingredients compatible?
More clean label ingredient opportunities
Dairy Business News - Yogurt, the next generation
New Food Products
Ingredient Market Trends - Belt-tightening time for U.S. agriculture in 2015-16
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - February 24, 2015