Monday, 14 July 2025

No Longer White Chocolate

 
If you look closely at certain packets of McVities Digestives and NestlĂ© KitKats in the UK, you might notice something rather surprising. They are no longer being described as ‘white chocolate’ biscuits.  Instead, you’ll find that it just says the word ‘white’ rather than ‘white chocolate’ on the front of the packs. The product descriptions have also been tweaked to say the biscuits have a ‘white coating’ or a ‘white chocolate flavour’. It can’t be helped though, as the sweet treats no longer contain the required level of cocoa butter needed to legally be described as chocolate. In order to be classified as white chocolate a product needs to contain a minimum of 20% cocoa butter. However, the amount in White KitKats (including the Chunky version) no longer meets this requirement. Interestingly, McVities has removed cocoa butter from its White Digestive recipe altogether. Instead, both brands now use a mixture of palm and shea fats to make their white coatings.  As such, NestlĂ© quietly removed the word ‘chocolate’ from the front of its White KitKat packets earlier in 2025, while McVities made a similar change to the White Digestive packaging recently. ‘Recently, due to a business continuity issue with our coating supplier, we have carefully crafted a new recipe for White Digestives. Sensory testing with consumers showed the new recipe delivers the same great taste and texture as the original they know and love.’

BBQ - Would this impact your decision to purchase these products?

Thursday, 10 July 2025

Ferrero in Talks to Takeover Kelloggs

 Boxes of Kellogg's Frosted Flakes cereal are stacked at a Costco Wholesale store on 4 April, 2025 in San Diego, California.
Shares in the US maker of Kellogg's Corn Flakes have soared after reports that chocolate giant Ferrero is close to buying the firm for about $3bn (£2.2bn). A takeover deal for WK Kellogg, which makes the Froot Loops and Rice Krispies breakfast cereals for the North American market, could come as soon as this week, the Wall Street Journal and Financial Times reported. The Italian owner of the Ferrero Rocher, Kinder and TicTac brands has been expanding in recent years, buying Nestle's confectionery business and several other food firms. WK Kellogg's shares surged by more than 56% in extended trading in New York on Wednesday after the reports. The deal could be worth double the firm's $1.5bn stock market value when ordinary trading ended. It would see Ferrero taking a dominant position in the US breakfast cereal market. Founded in 1946, the Italian firm is one of the biggest players in the chocolate market, with more than 30 brands sold globally. WK Kellogg has been struggling financially in recent years and has more than $500m of debt. In 2023, the US breakfast cereals operation was split off from its former parent company's international and snacks business, which was renamed Kellanova.

BBQ - What issues might occur following the takeover?

£13 Super Salad

But reaction to the new menu has been mixed - with much attention given to the £12.95 price point of the miso salmon salad (pictured) 
Pret a Manger has unveiled a new range of 'premium' lunch offerings targeted at hybrid workers looking to treat themselves on office days - including a salmon salad that starts from £12.95.  The coffee shop chain, which has almost 500 stores across the UK, says its new range of salmon, chicken and butternut squash dishes have been concocted with its in-house nutritionist to meet growing demand for bigger, healthy lunches. Some of the dishes contain nearly 50 grams of protein and are, according to Pret, nearly 60 per cent bigger than its existing range of salads. Reaction to the new dishes has been mixed - with much opinion directed at the near-£13 price point and the ingredients, which include chargrilled chickpeas, quinoa and 'hand-massaged kale'. Existing salads retail for around £8. The premium dishes will be available at 250 of Pret's stores across the UK, including major train stations and airports. But the chain may have its work cut out convincing some diners that the 'super salads' are for them, judging by reaction on social media. A spokesperson added that the price point matched the time it took for workers to put them together, claiming they take longer to prepare than other salads and baguettes.Pret is not the only chain to look into the trend of people seeking bigger lunches. A poll of 2,000 adults conducted for McDonalds by OnePoll last month found that one in four Brits skip breakfast on a regular basis. Of those, 13 per cent wait to break their fast do so because they want a bigger lunch.

BBQ - Have Pret got their marketing mix right?

Monday, 7 July 2025

Ribena's New Look

Suntory Beverage has backed Ribena with a relaunch that includes a £7m TV advert. The blackcurrant-based drink has revealed a new look in a bid to “drive more shoppers to rediscover their favourite childhood drink”. The new design aims to drive shelf stand out with more vibrant colouring, said Ribena. In consumer testing, the refreshed pack “improved purchasing, unaided recall, taste and overall appeal”, added the brand. Central to the new TV advert ‘No Taste Like Home’ is two films that follow a pair of siblings sharing a glass of Ribena. As they sit back, the unique taste of the drink triggers a powerful memory. Their living room transforms into a rainy British summer, where they relive a happy childhood moment splashing in puddles as their mum calls them in. Ribena has invested £7m across TV, VoD, YouTube and 60,000 points of disruption in store to bring the films to life. The activity will run nationwide until September.

BBQ - How will they judge if this money well spent for Ribena?

Record Growth of Chinese Cars

One in 10 cars sold in the UK in June were made in China, according to the latest industry figures. New Chinese brands such as BYD, Jaecoo and Omoda are growing rapidly in the UK. There has been a particular surge over the past few months, at a time when most other G7 countries have levied significant extra tariffs against their imports. Around 18,944 cars made by Chinese-owned brands, including MG and Polestar, were sold in June, which is 10% of overall UK sales, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). That is up from 6% in the same month a year ago. Across the first half of this year, more than 8% - or 1 in 12 - cars sold were Chinese, up from 5% in 2023 and 2024. This was mainly but not exclusively electric vehicles. Chinese firms and their franchises have been buying up car showrooms. "Chinese manufacturers are producing cars which are better, cheaper and more innovative in every sector of the market," said John Neill, former SMMT President and ex-chief executive of Unipart.

BBQ - Will this soon lead to these brands looking to make their cars in the UK? Why?

Bank Note Redesign

Banknotes issued by the Bank of England are about to get their first major redesign in more than 50 years. Notable historical figures, such as Sir Winston Churchill on the current fiver, have featured on these banknotes since 1970 but could be on the way out. The public are being asked for their views on new themes, such as nature, innovation, or key events in history. It raises the possibility of British birds, bridges, or bangers and mash featuring on the next series of £5, £10, £20 and £50 notes. Banknotes issued in Scotland and Northern Ireland already carry images of landmarks and animals such as otters. Euro banknotes feature architectural styles. This public consultation relates to the Bank's next series, which will also continue to include an image of the monarch. People can submit their view via an online form on the Bank's website, or by post, by the end of July. The final decision on what exactly features on a banknote lies with the Bank's governor. More than 4.7 billion Bank of England notes are in circulation, collectively worth around £86bn. Cash use has fallen to 12% of transactions as payments technology evolves, but the Bank has said it is committed to providing cash for those who wish to use it.

BBQ - What would you like to see on the new bank notes?

Monday, 30 June 2025

River Island Retrenchment

River Island has named the 33 shops it plans to close in the UK as part of a plan that puts hundreds of jobs at risk. The clothing retailer said last week that more people shopping online and higher costs to run stores were behind its proposals to creditors. It also wants its landlords to cut rents at a further 71 stores which are at risk. The family-owned retailer currently has 230 shops and employs about 5,500 people, but has suffered heavy financial losses. Ben Lewis, chief executive of River Island, said last week that although River Island is "a much-loved" British retailer, more online shopping means it has "a large portfolio of stores that is no longer aligned to our customers' needs". He added that a "sharp rise in the cost of doing business over the last few years has only added to the financial burden". He said a turnaround plan was in place, but restructuring was also necessary. "We regret any job losses as a result of store closures, and we will try to keep these to a minimum," he added. River Island made a £33.2m loss in 2023 after sales fell 19%, according to its most recent set of accounts. The chain said it will consult employees over possible job losses and will redeploy staff where possible. No head office workers will be directly affected by the proposed closures, a source said. Creditors will start to vote on the plan on 4 August, and a court will decide whether to approve the plan on 7 August. River Island was founded in 1948 under the Lewis and Chelsea Girl brand before being renamed in the 1980s. There is intense competition in fashion retail, not only from the likes of Boohoo, but also from Chinese giants such as Shein and Temu. Retail sales and consumer confidence in general have been down as households cut back to try to deal with inflation, she said, which all adds up to a difficult situation for River Island and its employees.

BBQ - Can the high street continue to compete against e-commerce?