Top promoted brands show value

March 14, 2012

Double-digit gains in retail ad circular support marked 2011 for many leading brands, shows ECRM study.

Retailers and CPG brands need to show value despite rising food prices today. Shoppers decide where to shop each week largely by the trade promotion events they review when planning their trips. In store, even upscale operators such as Fairway Market aim to build baskets by displaying large triangular “Shock Price” floor signs near fresh sushi and limited other items to draw interest from 100 or more feet away.

Because of the stingy sales environment, many of the nation’s top food and beverage brand marketers raised their retail ad circular support by double-digit percentages in 2011, revealed an ECRM analysis of the 119 largest U.S. and Canadian retailers.

Among food and beverage brands, the ten biggest supporters of retail ad circulars were:  Coca-Cola, up 11% in 2011 over 2010; Kraft, up 4%; Pepsi, up 13%; Oscar Mayer, down 5%; Tyson, up 16%; Betty Crocker, up 6%; Pillsbury, up 17%; Dole, down 5%; Gatorade, up 8%; and Del Monte, up 12%, the data showed.

??Among manufacturers, the ten biggest supporters included:  Procter & Gamble, up 18% in 2011 over 2010; Kraft Foods, up 4%; PepsiCo, up 6%; General Mills, up 16%; Unilever, up 16%; Nestle S.A., up 8%; Kellogg Co., up 11%; ConAgra Foods, up 3%; Coca-Cola USA, up 6%; and Hormel Foods, up 7%.

Examining the ECRM figures more closely by section of the store, dry grocery brands that led in retail circular support showed mostly single-digit growth, while fresh/frozen/perishable brands showed some spending pullbacks as tight times persisted in 2011.

Specifically, within dry grocery, Coca-Cola achieved the #1 presence in retail circulars; its circular ad spend was up 11% over 2010. Pepsi earned the #2 slot, up 13%, and the brand was followed by:  Betty Crocker, #3 up 5%; Kraft, #4 up 9%; Gatorade, #5 up 8%; Nabisco, #6 up 3%; 7up, #7 up 19%; Lipton, #8 up 4%; Del Monte, #9 up 12%; and Lay’s, #10 up 2%.

By contrast, the ad circular leaders among fresh/frozen/perishables brands showed a mixed bag of retailer ad support this past year. Although #1, Oscar Mayer was down 5%; Tyson, #2 was up 16%; Yoplait, #3 was up 22%; Perdue, #4 was down 7%; Johnsonville, #5 was up 30%; Pillsbury, #6 was up 5%; Kraft, #7 was down 4%; Foster Farms, #8 was flat; Stouffer’s, #9 was up 7%; and Dole, #10 was up 1%, according to ECRM.

Most ad circular leaders within the health and beauty care and non-food grocery categories grew their support at a double-digit pace in 2011.

??Among HBC brands, Crest was #1, up 12% over the prior year; Dove was #2, up 34%; Neutrogena was #3, up 44%; Huggies was #4, up 15%; Prilosec was #5, up 16%; Pampers was #7, up 23%; Nice ‘N Easy was #7, up 50%; Olay was #8, up 58%; Allegra was #9, a new item with no prior-year comparison; and Always was #10, up 50%.

Among non-food grocery brands, Bounty was #1, up 22%; Tide was #2, up 32%; Kleenex was #3, up 21%; Charmin was #4, up 3%; Clorox was #5, up 14%; Lysol was #6, up 17%; Downy was #7, up 56%; Hefty was #8, up 37%; Gain was #9, up 34%; and Scott was #10, up 10%.