Developments in the food and drink sector have caught our eye today. McDonald's has unveiled an impressive new offering in New York, Coca Cola gets done for disingenuous advertising in New Zealand and the alcohol industry is adjusting to change consumer tastes. Enjoy the read and have a great week.




Monday, 03 June 2019





Hello ,

Developments in the food and drink sector have caught our eye today. McDonald's has unveiled an impressive new offering in New York, Coca Cola gets done for disingenuous advertising in New Zealand and the alcohol industry is adjusting to change consumer tastes. Enjoy the read and have a great week.




United States


Expansion and scrutiny ▪ Amazon has acquired bankrupt advertisement server and digital content optimisation business Sizmek for an undisclosed sum. Meanwhile, there are whispers that the online giant is eyeing a Massachusetts site for a distribution centre. And US regulators have split the monitoring of Amazon and Google across two departments as both tech majors face increased antitrust scrutiny.



Trade war fallout ▪ Wholesaler Costco is dealing with the ever-increasing tariffs on Chinese goods by exploring alternative sources from other countries, with price hikes expected. There is also speculation that President Trump will lay a further 5% tariff on Mexican goods with jeans-makers and denim retailers likely to be hurt the most.




Europe


Promising big ▪ Lidl has launched a new inclusive and diverse ad campaign emphasising that although the discounter is ‘Lidl on price’ it is ‘big on quality’, check out the video here. The German giant is also trialling a meat labelling system that makes farming production methods transparent for consumers.



Decisions at the top ▪ Confectionary empire Ferrero is set to take a majority share in one of Spain’s leading ice cream producers, Ice Cream Factory Comaker, in a deal reportedly worth over EUR 100 million. Meanwhile, footwear retailer Schuh is concentrating on its exit strategy from Germany. In the UK, the chairman of JD Sports is set to take home a GBP 6 million bonus.



Progressive moves ▪ Hamburg-headquartered coffee and homeware chain Tchibo is upping its environmental game with the launch of a sport range made from plastic and textile waste. In Austria, Spar has announced it will only offer milk obtained domestically.



Exciting opportunities ▪ Grocery chain Albert Heijn has partnered with the Dutch Football Association, and particularly the women’s team, with special events planned in store and around significant games. In Britain, Amazon is giving 100 small online businesses a taste of the high street with its plans to open pop-up shops, the first of which has been branded ‘click and mortar’.




Asia & Australasia


Ambiguous ads ▪ Coca Cola’s Oceania arm has been made to pull two 15 second advertisements for the energy drink Powerade. The New Zealand Advertising Standards Authority found that the ads, which featured local sports stars seemingly recovering from injury after drinking the beverage, to be ‘misleading’.



Reporting results ▪ H&M is making fast progress in India, just three years after entering the market. With 42 stores trading in the subcontinent, the fast fashion chain has reportedly made in excess of USD 157 million in sales over the last year.



Fast track ▪ Logistics provider DHL China is moving into the future with drone deliveries of goods, impressively reducing delivery times in the region of Guangzhou to just eight minutes and cutting transport costs by up to 80%.




Food and drink


Golden unveiling ▪ American icon McDonald’s has revealed its freshly renovated flagship store, in what is thought to be one of its busiest locations – New York’s Times Square. The restaurant boasts self-order kiosks, mobile pay and wireless charging stations. Check out the video here.



Thirsty work ▪ With alcohol consumption decreasing around the world, bars and breweries are racing to keep up with the ‘sober curious’ consumer trend. Beyond the usual no-alcohol beers and mocktails, are some interesting alternatives.