CAGNY Day 1: Food Makers Talk New Products, Private Label, Digital | Adweek CAGNY Day 1: Food Makers Talk New Products, Private Label, Digital | Adweek
Advertisement

CAGNY Day 1: Food Makers Talk New Products, Private Label, Digital

Advertisement

With the economy on a path to recovery, food marketers are ramping up product pipelines, investing more money into digital, and increasingly using marketing to gain consumer insights. These were some of the topics discussed at the Consumer Analyst Group of New York (CAGNY) conference, a weeklong gathering of top food companies and industry analysts in Florida. What follows is a recap of Tuesday's highlights from Kraft, Unilever, ConAgra Foods, and others.

New products—are food makers willing to take a risk?
Line extensions, or playing it safe, was the name of the game last year. But food companies presenting at CAGNY expect an increase in new product introductions, including innovation that goes beyond the basic extensions and actually “sticks, and grows [past] year one,” as ConAgra Foods CEO Gary Rodkin put it. The food maker is once again focusing on its motto—"Fewer, bigger and better"—when it comes to new products.

Much of that innovation will come from ConAgra's frozen foods business: The Banquet dinners line and more health-oriented Healthy Choice Café Steamers. In an interview, Joan Chow, chief marketing officer for the Omaha, Neb.-based company, said the company has “not eased up on innovation at all.” As an example, she pointed to recent new product introductions like Healthy Choice Mediterranean Steamers. There will be more new product news on both its shelf stable and frozen business this summer. “Some of these line extensions are under existing brand names, but [nonetheless], it’s innovation that’s incremental to the business,” Chow said.

Food companies are at the forefront because they're benefiting from the eat-at-home trend. “We went back and looked at recessionary periods in the past, and a lot of great brands and innovation were launched during those periods,” Ian Friendly, General Mills’ evp and COO of U.S. retail, said in a meeting with reporters. “We see this as a very good time to innovate, whether it’s breakthrough innovation or line extensions,” he said. Last year, there was a bit of a “lull” in the industry as far as new food introductions. But this year, General Mills is expanding its product pipeline, with new and recent introductions including Yoplait smoothies and Chocolate Cheerios, which, so far, has been “a tremendous success,” Friendly said.

Is private label’s heyday over?
Consumers last year bought private label goods—and plenty of them—when the economy was at its worst. Now, branded food companies see private label’s gains easing back, according to the presenters at CAGNY. Sara Lee, for instance, said private label plays a small—and relatively minor—role in such categories as hot dogs, smoked sausages and breakfast sausages. (Private label share gains in its U.S. fresh bakery business are virtually “flat,” CEO Brenda Barnes said.) Citing Nielsen data, General Mills’ Friendly said that private label growth was moderating, or “up half a share point,” versus “almost a full share point” a year ago.

Continue to next page →