Natureview Farm has been very successful in the natural foods channel. The company uses a recipe using all natural ingredients and uses a special processes that gives their yogurt a smooth and creamy texture. They do not use artificial thickeners that are used by other companies such as Dannon, Yoplait and Breyers. The cows they use are not treated with the hormone rGBH. Their yogurt has a shelf life of 50 days, which is 20 days longer than their competitors.
Scientists, doctors, and self-proclaimed nutrition experts have opinions that spread across the entire spectrum. The US trend towards whole, unprocessed, organic foods is another challenge that must be addressed (Katz, 2012). Dairy companies must be agile in such an environment in order to be successful. company profile Dean Foods is one of the largest producers and direct-to-store distributors of fluid milk in the US (Dean, 2015). Sales in 2014 were more than $9.5 billion (Tanner, 2015, p. F-2), and sales of Dean Foods branded products represented 35% of national milk sales (Tanner, 2015).
In addition, the government-enforced quota system has restricted Monforte to five types of cow milk cheese, reducing Monforte’s overall production capacity. This can result Monforte not meeting last year’s production quota and demand. Therefore, Monforte must maximize its current production facility, year round, to meet the anticipated increased demand for artisanal cheese.
Example General Mills dominates Cereal while Frito-lay dominates Snacks/chips, Kraft dominates cheese based, ConAgro dominates Corn based products like popcorn, and finally Campbell dominates Soup and vegetable drinks. Nestle is the rightful market leader in terms of Size and number of brands its revenue is 141 billion nearly 6 times of General mills. They compete in various segments like Ice Cream, Packages food, Frozen Food. But in the last two years General Mills has changed the industry with its Acquisition of Yoplait and making it one of the biggest Yogurt brands in U.S. they increased the market share considerably to worry Dannon the Yogurt market leader. General Mills made 4 basic changes to position themselves better and increase their market cap.
Kraft Case Kraft mission, Corporation, Achieve leadership Fostering innovation Achieving high product quality Keeping a close eye on profit margins Corporate objective Build superior brand value Enhance product demand Expand global scale Build a learner cost structure Follow consumer trends Pod objectives 30% expected to be purchased out of home customers Goal for 80% of SSP machine owners to try the product 7-14 pods per week by users 60% of repeat purchase Break even by 2006 Households in Canada 6% to adopt SSP in 2004 and then 8% by 2006 2.5 million Households in Canada Kraft History Kraft performance Founded as cheese manufacture in 1903 Largest food and Beverage Company in the North. Second largest in the world Operates in at least 155 countries (2004) Business in 5 categories Beverage, snacks, convience meals, cheese groceries, Currently owns over fifty $100 million brands Strong distribution network 32% market share in Canada Known for innovative new products Europe coffee pod market First conceived in 1978 by Italy’s “lly caffe” This targeted office users Redesign by Kraft foods in 1982 2003, Kraft marketed pods in 10 European countries Senseo launched in 2001 first 3 years sold 3 billion In 2003 single sense pods accounted for 15% of all coffee pods sold in Europe Canadian coffee market Coffee market intense- growing selection Increase in specialty store; Tim Horton’s or Starbucks Retail sales- 600 million on 2003 Consumers willing to pay premium for convenice 2% increase in coffee sales 432 million in grocery stores Large size partners- price wars 15-20% sales- double digit growth Competition- regular coffee Kraft owns Maxwell and Nabob- #1, 32% share Nestle- 17% P&G- 9% Private Labels- 23% Smaller companies- 19% Maxwell- Canada’s top retail brand of roast + ground coffee Nabob-
Frito-Lay, Inc. Sun Chips™ Multigrain Snacks Market Analysis The snack chip category is very competitive. As many as 650 snack chip products are introduced each year by national and regional brand companies. Most of these products are new flavor for existing lines of snack chips. The new-product failure rate for snack chips is high. It has been reported that less than 1 percent of new products generate more than $25 million in first year of sales.
In recent years, the company increased its number of outstanding share to finance its acquisitions, which raised the payout ratio to more than 50% in 2006. Blaine Kitchenware fears that such a dividend policy isn’t sustainable in the future. Indeed, if the company keeps a high dividend payout without the cash flow to back it up, it will have to reduce its investment plans or turn to investors for additional debt or equity financing. As pointed by a banker, because the company is over-liquid and under-levered, using Blaine kitchenware’s excess cash and new borrowing, a private equity firm could buy all the outstanding share of the company. In light of that discovery and fearing this hostile takeover, Victor Dubinski is thinking of revising the company’s financial policy (i.e.
Ben & Jerry's Homemade, Inc. produces super premium ice cream, frozen yogurt, and ice cream novelties in rich and original flavors. The company sells its unique offerings in grocery stores, restaurants, and franchised ice cream shops, and it holds about one-third of the market for its products. This global company began with only a $12,000 investment to open Ben & Jerry’s Homemade ice cream scoop shop in a renovated gas station in downtown Burlington, Vermont, on May 5th, 1978. From one small shop in downtown Burlington, the company had grown to include a chain of nearly 100 franchised shops, and a line of products sold in stores across the country. As one of the leading superpremium ice cream (greater richness and density than other kinds of ice-cream and is therefore sold at a relatively high price) manufactures, Ben & Jerry’s has to continually expand and develop to compete with other leading brands.
The ice cream flavors of Ben & Jerry’s are very original with flavors like Phish food and Chunky Monkey. Their economic objective is to create profitable growth, increase shareholder wealth, and create career opportunities for their employees. The economic objective has not always been the closest in line with their other objectives. Originally, Ben & Jerry’s had a policy of not paying any employee more than five times the salary of the lowest paid employee. This policy was abandoned in 1995 when a new CEO was sought to take over operations.
WALMART NEGOTIATION The case talks about the negotiation process between Walmart, Kentucky Derby Hosiery (KDH) and Little Ones Products (LOP). KDH has supplied Little Ones –branded infant sox under an exclusive agreement to Walmart for six years. These sales were of major importance to KDH as it accounted for 20% of its total annual revenues and their margins were also double compared to other sox and hosiery. After six years of supplying the product, the top level of Walmart decided that they don’t want the brand anymore and the initial reason they gave for the same was the overall brand policy, competitive factors and other considerations even after taking care of all the conditions laid down by Walmart. This issue was of major concern for Bill Nichol (CEO of KDH) as they had a large amount of capital invested in LOP brand to satisfy Walmart’s high volume and quality.