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Even if Café Bustelo’s century sales are heated up, JM Smucker executives worryed that the rapidly growing brand was in danger because of the major changes in drinking habits.
CPG giants watched more coffee consumers on their way to the office, turning errands or switching to pickups with caffeine in the afternoon.
Café Bustelo could not afford to miss frozen beer between the Millet Nina and Z consumers. The category is We predicted $ 3 billion by 2030.
Café Bustelo, which has a net sales of $ 300 million in fiscal year 2025, recorded 22 consecutive quarterly growth in 2024 and moved quickly to launch ice coffee in 2024.
As a result, the popular coffee went beyond the customary shelf stable passage to the refrigerator, opening the brand with a completely new section of the retail environment, and raising the opportunity when consumers could see the cafe Bustelo in the store.
“We back and say, ‘Okay, where is the opportunity?’ “JM’s marketing and coffee vice president Emily Lucci said. Sparker. “Then I saw a portfolio with CAFE BustelWe have seen a great opportunity with the brand, given the place where we are there today.
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Provision of Nestle
Powerful brand expansion ‘It stops you on the track’
Maximum 90%of food failed within one year after launchThe company that takes the existing brand to a new space has an immediate advantage. In addition, the company can generate higher profits with financial and authentic movements.S Investment as an expansion is generally less expensive to promote a new brand from the beginning.
“People still want to explore with food and drinks,” said Mike Van Houten, vice president of Commercial Excellence in Nestlé. “It’s an unexpected break in the standard.” Really, it’s really powerful. “
Brand recognition can help the product stand out, and I think it can be seen in other parts of the store if 80%of consumers use a reliable brand to Nestlé.
For example, Nestlé is a 40 -year -old coffee brewing platform. Finally, the last example of the coffee category to drinkR utilizes the demand for drinks on the move. The company headquartered in Switzerland also won the company. The Coffee Mate brand is in a cold foam It helps consumers can duplicate coffee house experiences at home.
One of the biggest launches of Nestlé in 2024 is the frozen meal brand, STOUFFER ‘S, has entered the shelf-stable Food Realm. Macaroni and cheese. The product was helpful nestle With almost $ 3 billion in sales, we were able to take advantage of consumers’ interest in the food of the shelf-stable and frozen versions.
“People still want to explore with food and drinks, so sometimes they stop on the track when they see their beloved brands in unexpected places.”
Mike Van Houssten
Nestlé’s Commercial Excellence Vice President
Tiffany Grube, the qualitative research director of CURION, said the company should evaluate the health and performance of core products before the company takes the brand to a new category. Brands that are struggling are likely to face the same headwind in new spaces in new spaces.
GRUBE also needs to understand why consumers like brands, what they find when they buy and bring them to a new category, whether or not they want and what they need. In addition, companies should determine those who want to attract the brand and evaluate whether the capital of one part of the groceries can be extended to other categories with other consumers, trends and purchasing habits.
“The advantage of brand expansion can be huge. For some brands, it is the only way to grow.” If you finish it properly, you will not only have a risk of losing your goals, but you can also make your core customers feel betrayed or stop loyalty. “
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Provided by Craft Heinz
Select the appropriate extension
The food space is filled with a failed brand expansion after struggling to resonate with consumers.
The life protector played in Soda in the 1980s. It is provided in a cylindrical bottle decorated with red, yellow, green and orange stripes such as signature candy wrapping paper. product It was good in the taste testBut I couldn’t catch up with a consumer who thought it was too sweet.
Female lifestyle magazine Cosmopolitan launched yogurt line in 1999.But after 18 months, it was stopped. Baby food brand Gerber started a line A pure meal was called Gerber Singles aimed for adults 1970s. Extension failed after the elderly consumers had the same flavor as the EXPERED BEEF BURGUNDY and Blueberry Delight..
Lucci, Lucci, said, “As you know, I have a growing brand. I see another category that is growing. How can we quickly pull the brand into that category?” We are far more strategic and ‘Where is the right bag?’
Lucci added that it is a space that does not meet the perception of product risks that are confused by consumers and damages the overall health of the brand. Smucker carefully evaluates whether the brand is reasonable in the new category, how consumers can respond and whether the new product is suitable for the company’s long -term vision.
“We are actually passing the filter consistently,” she said. “This is what we focus on not to take the brand to a new place that we do not understand in the consumer lens, or to prevent the opportunity to bring consumers too quickly.”
Kraft Heinz, who recorded net sales of $ 26 billion in 2024, said he is continuously looking for a new place to expand the brand. Product expansion, which may not work several years or decades ago, may have developed suddenly as a favorable opportunity as the consumer trend has evolved.
Opportunity to bring the same brand A.1. Butter on steak sauce Or crystal light drink powder You can finish the alcohol immediately It is the key to helping food and beverage manufacturers to generate net sales of $ 2 billion by 2027.
Craft Heinz last year I introduced the Philadelphia Cream Cheese Frosting After the attention, the taste was one of the three most popular in the United States. This insight has been built up by the fact that there is no similar product in a market without artificial flavor and dyes, or that it did not require various stages from the beginning. The Philadelphia is virtually synonymous with cream cheese, so the professional version of the dairy was the next step.
“We aim to bring new and unique opportunities to help fans and keep the brand best,” said Craft Heinz.
