While Australia’s woes have attracted most media attention, all the wine-producing countries of the Southern Hemisphere face challenges in the year ahead. According to a recent report, wine production in Australia, New Zealand, South Africa, Argentina and Chile in a marked state of flux.

Epitomising the “feast or famine” nature which sometimes besets agricultural commodities, 2008 sees Australia move from its much-publicised grape glut to a state of balance. However, that balance will not last long, the report warns. Having seen the last harvest hit by the country’s severe drought, further small harvests in 2008, 2009 and possibly beyond will leave the industry facing a serious shortage of grapes and struggling to meet global demand for its wines.

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Consumers seem to be very easily fooled. As soon as “reduced-fat” appears on a product they seem to fly off the supermarket shelves. In fact: it doesn’t mean you’re being healthy- instead it means increased carbohydrates, and in worse cases- fat-free means increased sugar and chemicals.

But this doesn’t stop consumers. A new report shows that, in 2007, sales of healthier-eating biscuits, including reduced-fat and reduced-calorie options and cereal bars, overtook sales of chocolate biscuit bars to represent the largest subsector of the biscuits sector.

Continue reading “Consumers Choose Healthier Snacks in Favour of Biscuits and Cakes” »

Cadbury has announced the date for the de-merger of its US soft drinks arm. After nearly a year of deliberation, Cadbury has finally announced a date for the de-merger of its US soft drinks arm, American Beverages. Although it appears to make sense to separate this group from the company’s confectionery operations, the separation could leave Cadbury vulnerable to a takeover, which its turnaround plan may be unable to prevent.

The de-merger, which was first announced as a possibility back in March 2007, will now take place in May and will see the creation of Dr Pepper Snapple Group as a separate entity with a listing on the New York Stock Exchange and its own management team. The confectionery arm is to be renamed Cadbury plc and will be listed in London.
Continue reading “Cadbury: hoping a new structure will keep it sweet” »

Do you feel guilty when snacking in between meals? Do you think being healthy is sticking to your regular meals? Well, if scientists get the final call, you’re doing the wrong thing, instead of sticking to your diet, you’re actually putting on weight.

A new report shows that a new generation of snack products are emerging that contain functional ingredients. These use fat and sugar replacers and are developed with new cooking processes to make them healthier. Recent innovations include drinks to replace snacking occasions, satiety promoting products and vitality boosting snacks.

Continue reading “Get Back in Shape with a Snack- or More!” »

A UK government survey shows that many food and drink firms are unaware of new environmental laws. The fast pace of change in UK environmental laws are leaving many small food and drink manufacturers unaware of legislation, according to a government commissioned survey. With green initiatives a hot topic among consumers, companies risk alienating customers by failing to comply with environmental legislation, and this could offer more of an incentive to obey the rules than any fine could.

Continue reading “Failure to Comply with Environmental Legislation could cost UK Food and Drink Manufacturers Dearly” »

The Advertising Standards Authority dismisses claims a KFC advert is misleading.

The ASA has ruled out claims that a television ad for KFC’s Wrapstar product is deceptive. The watchdog stated that the ad, featuring a time-pressed doctor consuming the sandwich, doesn’t suggest the food is a healthy snack or that it is endorsed by medical experts. Despite this, KFC needs to be conscious that any future adverts aren’t seen by an increasingly skeptical public as misleading.

KFC has been informed that an advert for its Wrapstar product does not indicate the sandwich is a nutritious snack, despite allegations from six consumers which suggested otherwise. Instead, the ASA has stated that the advert portrays the product as a convenient snack.

Continue reading “KFC: Focusing on Convenience Instead of Overstating Health” »

Diageo is set to launch a GBP2 million marketing campaign for its Smirnoff Vodka brand. The campaign will focus on the brand’s history and heritage to create a feeling of authenticity, while also offering consumers the chance to win unique prizes. Although this widens the sensory appeal of the beverage, it may be more effective to experiment with the intrinsic attributes of the brand.

Following a packaging re-design of its Smirnoff black vodka, Diageo has announced the launch of a new advertising campaign for its Smirnoff vodka brand. The alcoholic beverage producer is anticipating that the campaign will directly increase sales of the drink by 18%. Marketing activity will focus on the brand’s heritage, and includes an off-trade ’signature’ promotion that offers consumers the opportunity to win a “Journey of a Lifetime“. Continue reading “Smirnoff Vodka to Focus on it’s Brand Heritage” »

Despite consumers making active attempts to eat healthier, the threat of obesity shows no sign of slowing down. Once confined to high income countries and households, obesity is now just as much of a problem as malnutrition in developing countries. A new report explores the contradiction between attempts to eat healthier and rising obesity levels. Ultimately, food choice is determined by sensory attributes such as taste and pleasure, and consumers will not sacrifice these attributes in favour of nutritional goodness. Furthermore, changes in people’s lifestyles mean that they find it difficult to exercise on a daily basis. As a result, shoppers are consuming more ‘bad’ nutrients and are exercising less.

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According to a new report, Americans and Europeans are increasingly choosing to drink alcohol in their homes because they are becoming inclined to compromise their quality and sensory needs when making the choice to stay at home rather than go out for a drink.

Also, consumers concerned with signs of wider economic uncertainty in the housing and credit markets are increasingly likely to adjust their spending, cutting back further on going out drinking. Now, manufacturers and marketers can respond by targeting the associated rise in at-home meal occasions and the complementary relationship between alcohol and food.

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Brewing giant SABMiller has completed the €816 million takeover of Dutch Brewer Grolsch. Upon confirmation of the takeover, SABMiller announced plans to move into the emerging markets of South America and Africa with its portfolio of higher margin premium beers, including the newly acquired Grolsch brand, evidencing how the trend towards premiumisation is driving the global beer market.

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