Monday, 28 April 2025

Toney Chocoloney Recall

 
Tony’s Chocolonely ,the Dutch company which is famous for its USP of having irregular chunks (5 of the chunks are made to have represented west African countries), is asking customers for a recall on certain batches of 3 specific products as they have been found to contain foreign objects (small stones) in the product. The chocolate market is worth over US$162 million (the chocolate market is worth over US$130 billion) a year and is a classic example of an oligopoly. Even though the bar is above the average selling price, it is ethical because it aims to prevent child slavery and to do this it encourages competitors to source cocoa from its established, child labour-free farms in Ghana and Cote d’Ivoire. The company has recently expanded by introducing advent calendars and had teamed up with Ben and Jerry’s ice cream brand to create “Chocolate Love A-Fair". In the past Tony’s has been found to be controversial. This is due to its pledge to pay all the workers involved with farming the raw materials a higher ‘living’ wage but in 2021 was removed from the list of ethical chocolate companies because Barry Callebaut, one of the companies it worked with, was found to employ and make use of child workers. Customers have been advised to check their lot code and to return the product to the store where you bought it from in exchange for a refund or replacement. Other chocolate bars without the mentioned lot code are safe to consume. The company asked for the recall on the 1st of April 2025 after getting reports from the US and Canada from 12 customers complaining about small stones in the products. Tony’s Chocolonely believes that the stones were a byproduct of the almond harvesting process and in a statement posted how the product was not filtered during third party almond harvesting and processing.
BBQ - What issues will Tony’s Chocolonely face after this recall?

Party Rings New Biscuit Shape

 
Fox’s Burton’s Companies (FBC) has unveiled a new addition to the Party Rings range, introducing a new shape for the first time in the brand’s 42-year history. The new Under The Sea Minis will offer the same iced shortcake taste of a Party Ring in fish shapes. They will be available in packs of six for £1.50 and are launching exclusively in supermarket giant Asda on 24 April for 12 weeks. The new format looks to attract the family shopper and boost basket spend, and follows strong performance of the manufacturer’s Mini Party Rings range which is now worth £13.5m, according to NIQ and Kantar data. The launch also marks the first in a pipeline of shaped biscuit innovation for the brand. FBC head of category insight Robin Norton said: “Under the Sea Minis is an exciting milestone for the Party Rings brand. It may be the first time we’re changing the format of the biscuits, but they come with the famous flavour and fun of traditional Party Rings. “In initial testing, the products performed incredibly well with consumers, outperforming industry standards by 24%, so we’re confident they will be a hit when they land on shelves later this month.” The innovation comes as the manufacturer recently launched a brand-new look and feel for the range, alongside a new limited-edition Strawberry flavour.

BBQ: What segment of the market is this product positioning itself for?

M&S Online Disruption

 
Marks & Spencer has suffered a "bruise" to its reputation after it was forced to stop taking online orders following a cyber attack, an analyst has said. The retail giant has paused orders on its website and apps since Friday as it attempts to restore operations. But analysts say M&S stands to lose out if the problem is not resolved quickly, with shoppers likely to turn to rival brands when buying summer clothes. Kate Hardcastle, consumer specialist at Insight with Passion, said the incident was "a bruise to M&S's trusted brand image".However, she added that because M&S had responded quickly and been open with its communication the long-term damage should limited. About a third of the retailer's clothing and household goods' sales in the UK come from its online operations. Natalie Berg, retail analyst at NBK Retail, said such incidents "erodes consumer trust in the brand". Customers began reporting problems last weekend - with people struggling to use contactless payments, click & collect, and gift cards - and on Tuesday the retailer confirmed it was facing a "cyber incident". Then on Friday M&S said it was pausing taking orders through its UK & Ireland websites and apps and some international websites. With warmer weather due this week, and shoppers turning their thoughts to summer, analysts said M&S could be missing out on sales at a critical time, as people were likely to turn to rival retailers to get what they want. M&S's sales and profits have improved in recent years and it has been seeking to expand its online operations. Last year, out of £3.9bn of sales in its clothing and home business, nearly £1.3bn came online.

BBQ: Would an issue like this cause you to loose trust in a brand? Why is this particularly important to M&S?

Friday, 4 April 2025

NI Tax Rises To Hit Prices

Cosmetics company Lush and car repair chain Kwik Fit are among firms which have warned they will raise prices due to an increase in employers' National Insurance (NI). Other firms have told the BBC they will reduce how much profit they make, freeze hiring or in some cases cut jobs to cover the higher costs. From Sunday, employers will have to pay NI at 15% on salaries above £5,000, instead of 13.8% on salaries above £9,100 currently. The Treasury said the billions raised will be spent on public services, including the NHS. Lush told the BBC that with 3,600 employees in the UK and Ireland, it would have to find an extra £2.7m per year. Kasey Swithenbank, Lush's retail head for the UK and Ireland, said: "We are going to be taking small incremental price changes. Kwik Fit, which employs about 5,000 people, estimates the NICs rises will cost it £5m. This will have a knock-on effect on prices, and recruitment, said Mark Slade, its managing director.  The rate that employers pay in contributions will rise from 13.8% to 15% on a worker's earnings above £175 per week. The government expects about 940,000 firms to pay more, 250,000 companies to pay less, and 820,000 to see no change.


BBQ - How would you deal with the NI increase if you ran your own business?

 

Percy Pig USA Adventure Cut Short?

Percy Pig, the beloved British gummy candy, recently embarked on its biggest journey yet—crossing the Atlantic to make its debut in the United States. Available at Target stores nationwide, Percy Pig quickly captured the hearts of American candy lovers. However, this sweet adventure may be short-lived as Marks & Spencer (M&S) faces challenges from the latest Trump tariffs. Percy Pig has been a staple in British households for nearly three decades, known for its delightful berry and grape flavors and perfect balance of foam and jelly. The candy's arrival in the US was met with enthusiasm, with fans eagerly grabbing bags off the shelves at Target for $3.99 each. Despite the initial success, Percy Pig's US adventure faces uncertainty due to the sweeping tariffs imposed by former President Donald Trump. These tariffs, aimed at boosting US manufacturing, have placed significant pressure on companies importing goods from abroad. In response to the tariffs, M&S is exploring various strategies to mitigate the impact on Percy Pig's US presence. This includes negotiating with suppliers, adjusting pricing, and potentially scaling back the distribution of Percy Pig in the US market. Percy Pig's US adventure has brought a taste of British sweetness to American shores, but its future is uncertain as M&S navigates the complexities of Trump tariffs

BBQ - Why would a tariff impact the sale of Percy Pigs in America?

Thursday, 3 April 2025

Lynx Africa April Fools

 
The announcement that Lynx Africa was being discontinued sent shockwaves through its fanbase, with many taking to social media to express their dismay. The iconic scent, which has been a staple in British bathrooms since 1995, was initially declared discontinued by Lynx's official Twitter account This sparked a frenzy, with fans mourning the loss and even stockpiling cans in fear of its disappearance. However, Lynx soon revealed that this was all part of a clever marketing stunt designed to promote a product upgradeThe brand clarified that Lynx Africa isn't going anywhere; instead, it's getting a fresh new look and improved formula. The new design and enhanced fragrance are set to hit stores across all formats, including body spray, shower gel, antiperspirant, roll-on, and stick deodorants. Additionally, Lynx has reformulated its body sprays to last even longer and upgraded its antiperspirant range to include new "no white marks" technology. This playful approach not only created buzz but also highlighted Lynx's ability to engage with its audience in a fun and memorable way. So, rest easy, Lynx Africa fans—your favorite scent is here to stay, just with a new twist!


BBQ - Discuss the impact of Lynx's marketing stunt on consumer behavior and brand loyalty. How might this approach influence the company's sales and market positioning?

Friday, 28 March 2025

Trump Car Tariffs

 
President Donald Trump has announced new import taxes of 25% on cars and car parts coming into the US. Trump said the latest tariffs would come into effect on 2 April, with charges on businesses importing vehicles starting the next day. Taxes on parts are set to start in May or later. The president said the measure would lead to "tremendous growth" for the industry, promising it would spur jobs and investment in the US. But analysts have said the move is likely to lead to the temporary shutdown of significant car production in the US, increase prices, and strain relations with allies. Trump's latest move threatens to upend global car trade and supply chains. The US imported about eight million cars last year - accounting for about $240bn (£186bn) in trade and roughly half of overall sales. Mexico is the top supplier of cars to the US, followed by South Korea, Japan, Canada and Germany. Tariffs are taxes charged on goods imported from other countries. The companies that bring the foreign goods into the country pay the tax to the government. Firms may choose to pass on some or all of the cost of tariffs to customers. Trump's plan for car tariffs is his latest in his wider drive to protect American businesses and boost manufacturing within the US. But while the measures can protect domestic businesses, they also raise costs for businesses reliant on parts from abroad. Analysts have estimated that tariffs on parts just from Canada and Mexico could lead to costs rising by $4,000-$10,000 depending on the vehicle, according to the Anderson Economic Group. Vehicles are the UK's biggest export to the US, totalling 101,000 last year worth £9bn.

What are your opinions on the trump tariff? What would you do as the UK government or as a UK car manufacturer?

WH Smith to Disappear from High Street

After more than two centuries as a staple of British high streets, WH Smith is set to disappear from town centres following a £76 million sale to Modella Capital. The iconic retailer, founded in 1792, has decided to sell its 480 high street stores to focus exclusively on its more profitable travel outlets located in airports, train stations, and hospitals. This strategic shift comes as WH Smith's travel business now accounts for 75% of its revenue and 85% of its trading profitThe high street stores will be rebranded as TG Jones, a name chosen to echo the heritage of WH Smith while marking a new chapter under Modella Capital's ownership. The new owners plan to maintain the current range of products and services, including Post Office and Toys “R” Us outlets, while exploring new offerings to revitalize the brand. This move reflects the broader challenges facing high street retailers, as changing consumer habits and economic pressures continue to reshape the retail landscape. Despite the end of an era for WH Smith on the high street, the brand's legacy will endure through its travel stores and online presence

What are your thoughts on this significant change in the retail sector? Do you think the rebranding will help TG Jones succeed where WH Smith struggled?

Egg-spensive Easter Eggs

Easter egg prices have surged by up to 56% compared to last year, according to a recent report by Which? This dramatic increase is attributed to a significant drop in global cocoa production, driven by higher temperatures affecting the quality and quantity of cocoa beans. As a result, many popular chocolate treats have not only become more expensive but have also shrunk in size, a phenomenon known as "shrinkflation". For example, an 80g pouch of Terry's chocolate orange mini eggs at Lidl has increased from 99p to £1.35 while shrinking to 70g. Despite these rising costs, consumers can still find good deals by looking for special offers, comparing prices per gram, or waiting until Easter Sunday when many eggs are likely to be discountedThe price of chocolate in the UK has risen by 16.5% in a year, compared to a 4.4% increase for supermarket food and drink overall. At Morrisons, a 200g Cadbury Creme Egg 5 Pack Mixed Chocolate Box increased from £2.62 last year to £4 this year. Similarly, a Twix white chocolate Easter egg at Tesco rose from £5 to £6 while shrinking from 316g to 258g, making it 47% more expensive per 100g. This trend is not limited to Easter eggs; other chocolate products have also seen significant price hikes. For instance, Asda's Fruit & Nut Milk Chocolate 200g bar increased by 73%, from £1.33 to £2.30.

Given these rising costs and shrinking sizes do you think this will impact sales of easter eggs?

Friday, 21 March 2025

Cybertruck Recall

 
Thousands of Tesla Cybertrucks have been recalled in the US due to concerns about part of the electric car's trim falling off in the model's eighth and largest ever recall. The issue affects more than 46,000 trucks made starting in November 2023, which analysts say amounts to nearly all Cybertrucks. It comes as Tesla, which did not respond to a request for comment, grapples with falling sales amid a backlash against the firm and its boss Elon Musk Prior Cybertruck recalls involved failing windshield wipers, trapped accelerator pedals, possible loss of drive power to the wheels, and other issues.Tesla told NHTSA it had received about 150 claims from drivers about the issue but was not aware of any accidents caused by the problem. It estimated that the issue affected about 1% of vehicles involved in the recall. The issue is covered under a warranty for new owners, and the company will replace the piece free-of-charge. Tesla's shares have dropped nearly 40% since January, erasing the jump in value that it enjoyed after the 2024 US election. The fall has been significantly more than the overall drop in the US stock market over that period. The political backlash adds to the challenges the company had already been facing from increased competition and an ageing line-up of offerings. The Cybertruck was supposed to help reignite buzz around the brand and help it break into the lucrative market for pickup trucks in the US. It hit the roads in late 2023 and carries a starting cost of more than $72,000 (£55,500).

Wednesday, 19 March 2025

Santander To Close 95 Stores

Santander has announced it is set to close 95 branches across the UK, putting 750 jobs at risk. The High Street bank said its customers were increasingly shifting to banking online and it aimed to start closing almost a quarter of its branches from June. As part of the changes, Santander will also reduce hours at 36 branches and remove the front counters from 18 others. It is the latest bank to announce branch closures, with Lloyds announcing 136 closures in JanuaryThe closures will leave Santander with 349 branches, down from 444. It said the areas to lose branches would be covered by 95 "community bankers" who will visit local communities on a weekly basis in facilities such as libraries. Santander said the changes were due to a "a rapid movement of customers choosing to do their banking digitally". It added digital transactions had increased by just under two thirds since 2019, with a similar drop for transactions in branches. About 750 staff will be at risk of redundancy if the proposals go ahead after consultation with the unions, the Spanish-owned bank said.

Tesco Wage Rise

Tesco will lift pay for its store staff by 5.2% but will scrap the extra pay for working on Sunday. The UK's biggest supermarket chain said the hourly rate will go up by 43p to £12.45 from 30 March after reaching a deal with unions. It will raise pay again to £12.64 from the end of August - a little above the UK national minimum wage which is set to rise to £12.21 per hour from April. However, Tesco will also drop the current 10% pay bonus for Sunday shifts for all staff, which it had already stopped providing for new starters. Tesco's UK chief executive says the £180m spent on funding the pay increases is a "significant investment". The move comes as many big supermarkets raise pay to attract more staff in a tight labour market. In January, Sainsbury's said it will raise hourly pay by 5%, also in two phases, but said it was cautious about recruiting new staff in 2025 due to rising costs "to help manage a particularly tough cost inflation environment". The German-owned discount chain Lidl will also raise pay, it announced in February, from £12.40 per hour to £12.75. Chancellor Rachel Reeves announced in the October Budget that in April, along with the national minimum wage, employer National Insurance contributions will also rise. Businesses have said the extra costs from these changes will mean higher prices, job cuts, and shop closures, though unions have criticised firms for saying this.

Sunday, 16 March 2025

Cadburys x Biscoff

Cadbury has teamed up with Lotus Biscoff to launch a co-branded Dairy Milk bar. The milk chocolate tablet, available in 95g (rsp: £1.75), 95g PMPs (£1.69) and 105g (rsp: £2) formats, is studded with pieces of Lotus Biscoff’s famous speculoos biscuits. It would “tap into consumer interest in new flavours and textures, and drive cross-brand excitement”, said Cadbury. “Combining two delicious favourites is a great way to give consumers the best of both,” said Cadbury Dairy Milk brand manager Connor Gould. “As a result, the new Cadbury Dairy Milk Biscoff is sure to utilise consumer demand for unique flavours to help drive category growth,” Gould added. The launch is being supported by “eye-catching” co-branded PoS materials, along with social, influencer and seasonal content. The manufacturer said it would launch a co-branded Cadbury and Biscoff product in the UK, and a co-branded Milka and Biscoff product in Europe. The partnership also aimed to grow the Lotus Biscoff brand in India, by leveraging Mondelez’s extensive distribution network and local market presence in the country. It comes as a swathe of other fmcg brands have been innovating to cash in on the growing popularity of Biscoff.

BBQ - What other brand collaborations would you like to see?


No Bonus For John Lewis Staff

Retailer John Lewis has said its staff will not receive a bonus for the third year in a row, despite reporting a jump in annual profits. The employee-owned retail partnership, which also includes the Waitrose supermarket chain, said profits rose by 73% to £97m last year. However, it has not restored the staff bonus, saying it would invest in its business and workers' pay instead. Chairman Jason Tarry said he was "determined to pay a bonus as soon as we possibly can" but that "will depend on where we are at the time". A company source added that John Lewis had no specific thresholds or criteria for reinstating the bonus. The John Lewis Partnership employs about 69,000 people, and earlier this month it said shop workers would receive a 7.4% pay rise this year. But this is the fourth time in five years that John Lewis has not paid a bonus. The string of freezes started in 2020 - the first time it had scrapped them since 1953 - after it was hit by Covid lockdown store closures. John Lewis said that while it expected the economic environment to be "challenging for our customers and our business" in the year ahead, it was still confident it could push up profits. John Lewis has been trying to win back customers with a recovery plan after a tough few years that saw it cut jobs and close several stores.

BBQ - Would workers prefer a bonus or a pay rise? What is the best form of motivation?

Friday, 14 March 2025

Tesco Trial Free Food Giveaway

 
Tesco is to begin a trial giving expiring food to customers for free at the end of the day as it tries to cut food waste. The supermarket will give away some already discounted "yellow sticker" items after 21:30 in some of its smaller Express stores in coming months. Tesco already donates expiring food to charities and foodbanks. It says it is taking this step to try to meet its goal to halve food waste. The company said the expiring food would be offered to charities and shop workers first, before customers could take it. Tesco is Britain's largest supermarket chain, with a 27.8% market share. It has 3,700 UK stores and about 750 more abroad. All major UK supermarket chains have partnerships to send surplus food to charities. The next big four after Tesco - Sainsbury's, Asda, Aldi and Morrisons - have also pledged to halve food waste by 2030. Aldi says it has achieved this already. Many supermarkets also offer steep discounts on expiring food. Tesco's trial, however, appears to be the first direct-to-customer policy in the UK. The firm has a target to cut its food waste by 50% this year, as part of its net-zero emissions push.

BBQ - Could there be any issues with Tesco giving away expiring food?

Friday, 7 March 2025

Pizza Boosts Greggs Sales

Greggs, the UK's bakery powerhouse, is experiencing a notable sales boost, and while the legendary sausage roll still holds its crown, pizza is proving to be a significant driver of growth. The company's strategic expansion into hot food offerings, particularly pizza slices and boxes, has successfully captured a new segment of the market, especially during evening hours. This diversification strategy reflects Greggs' agility in responding to evolving consumer preferences. Notably, Greggs has surpassed £2 billion in annual sales, with a significant contribution from its expanded hot food offerings. Further more Greggs has seen a 13.8% increase in sales for the first half of 2024. Evening trade remained the brand's fastest growing daypart, accounting for 9% of company-managed shop sales in 2024. Beyond the enduring popularity of its classic pastries, the pizza range has demonstrated the company's ability to innovate and expand its appeal. The positive impact on sales underscores Greggs' effective approach to broadening its menu, solidifying its position as a go-to destination for affordable and convenient food, though the sausage roll's iconic status remains unchallenged

Boots Takeover

Boots, a cornerstone of the UK's retail landscape, is poised for a significant transformation as Walgreens Boots Alliance (WBA) is being acquired by US private equity firm Sycamore Partners in a deal valued at roughly $10 billion. This privatisation move comes as WBA grapples with evolving consumer behaviors, notably the surge in online retail, and increasing competitive pressures. The acquisition, with Sycamore Partners paying $11.45 per share, raises questions about the future of Boots' nearly 2,000 UK stores. Notably, WBA has faced a significant decline in market value, and this deal comes after previous restructuring efforts, including store closures. While Sycamore Partners has expressed commitment to WBA's brands, the potential for Boots to be spun off or sold separately remains a possibility, adding a layer of uncertainty to its future. The deal reflects the ongoing challenges in the retail pharmacy sector and the strategic shifts companies are making to adapt.

Mixue Bubble Floats on Stock Market

 
The global beverage landscape is witnessing a significant shift, as the bubble tea chain Mixue has made a remarkable debut on the Hong Kong Stock Exchange. This company, boasting a staggering number of outlets, over 45,000 globally, surpassing even Starbucks, saw its shares surge.  Mixue raised $444 million in its IPO, by offering 17 million shares, and the shares then jumped significantly on the first trading day. This highlights the immense popularity of its affordable ice cream and bubble tea offerings. Mixue's success is attributed to its strategic franchising model and focus on providing budget-friendly treats, resonating particularly well in markets facing economic challenges. With its vast network of stores across China and other Asian countries, Mixue's expansion reflects the growing global appetite for accessible and trendy beverages. This successful IPO signals strong investor confidence in Mixue's business model and its potential for further international growth, potentially disrupting the established order of the global fast-food and beverage industry.

Sunday, 2 March 2025

Aston Martin Cuts Workforce

Aston Martin has cut 170 jobs after losses widened by a fifth last year and fewer cars were sold in 2023 following a string of supply chain issues and production delays. The luxury auto manufacturer, which has its headquarters in Gaydon, Warwickshire, said it planned to axe 5% of the workforce as part of cost-cutting measures to return to profit. All of the company's departments have been hit, including manufacturing, office jobs and management. In a statement on Wednesday, the company said the aim was to make sure the company was "appropriately resourced for its future plans", and called the cuts a "difficult but necessary action". Aston Martin - famous for making fictional spy James Bond's cars - said it was targeting yearly savings of £25m and expected to hit about half of that total this year. Adrian Hallmark was appointed the company's new chief executive in September amid a ramping up of sales of its new Vantage and DBX707 models, which it said helped boost production volumes. The company also launched its flagship Vanquish model in September. Aston Martin said the launches helped boost sales later in the year as it started delivering more of the new models to customers, with wholesale volumes picking up 10% year on year in the second half compared with 2023. But the company's wholesale volumes for the whole year were still down 9% at 6,030 cars, pushing its pre-tax losses to gape by a further 21% to £289 million. It also saw its debt pile rise by 43% to £1.16bn during the year, while shares were down about 33% over the last year.

Maple Water

While drinking tree sap does not immediately sound appealing, Canadian producers are hoping that it will be the next must-try soft drink around the world. We have all heard of maple syrup, which is made by boiling down the sap of maple trees to produce a thick, sweet, golden-to-brown coloured syrup that is typically poured over pancakes. What is far less well known is that you can drink the sap itself, which is called maple water. Clear in colour, it contains just 2% natural sugars, so it is only slightly sweet. A small but growing number of producers in Canada are now selling this maple water in bottles or cartons, after first giving it a filter and pasteurisation to kill off any microbes. Advocates point to the fact it is a natural drink, and makers hope that it can steal some sales from the existing similar product – coconut water. The latter is made from water that naturally forms inside coconuts. As Canada is far and away the world's largest producer of maple syrup – accounting for more than 80% of production – it is understandable that the nascent maple water sector is also Canadian. For the maple water industry as a whole, one recent report predicts big growth. It estimated that global sales in 2024 totalled $506m (£409m).

, externalwith that expected to jump to $2.6bn by 2033. By comparison, worldwide sales of coconut water reached $7.7bn in 2023,

, externawith that expected to grow to $22.9bn by 2029. So maple water has a long way to catc

Birkenstock Sandals Not Art

Birkenstocks may be cool enough for Barbie but the sandals do not qualify as works of art, a German court has ruled. The company had claimed its footwear could be classified as art and so was protected by copyright laws in a case it put forward to stop rivals selling copycat versions of the cork-soled sandals. But a judge dismissed the claim, saying the shoes were practical design items - a decision Birkenstock called a "missed opportunity for the protection of intellectual property". Birkenstocks' popularity means rivals often sell knock-off versions, prompting the firm to make the claim to protect what it called its "iconic design". In this case, Birkenstock took three manufacturers and retailers to court, seeking to protect four of its sandal designs. German law distinguishes between design and art when it comes to a product. Design serves a practical purpose, whereas works of art need to show a certain amount of individual creativity. Art is covered by copyright protection, which lasts for 70 years after the creator's death, whereas design protection lasts for 25 years from when the filing was made. Shoemaker Karl Birkenstock, born in the 1930s, is still alive. Since some of his sandals no longer enjoy design protection, the firm attempted to gain copyright protection by seeking to classify its footwear as art.

Thursday, 13 February 2025

Fanta Launches New Flavours

Fanta is boosting its zero-sugar offerings with the addition of three exciting new fruity flavours: Apple, Raspberry, and a limited-edition Tutti Frutti. This new product development (NPD) aims to help retailers broaden their customer base and capitalize on the 2.5 million shoppers who regularly purchase Fanta flavours, according to Coca-Cola Europacific Partners (CCEP). Apple and Raspberry will be available from February 24th in various formats, including 330ml cans, multipacks, and 500ml and 2L rPET bottles. The limited-edition Tutti Frutti, a vibrant mix of peach, pineapple, and banana, will launch mid-March in a sleek 250ml can. All three flavours will be supported by a multi-million pound marketing campaign encompassing influencer partnerships, out-of-home advertising, social media activity, and experiential events. CCEP's VP of Commercial Development, Rob Yeomans, highlighted the new Apple and Raspberry options as catering to consumer demand for those specific flavours, while describing the Tutti Frutti as a "carnival in a can" with a nostalgic flavour profile. These new additions come as Fanta seeks to revitalize sales after a £1.9m decline last year, according to The Grocer's Top Products survey.

BBQ - Analyze how the launch of these new Fanta Zero flavours, supported by a multi-million pound marketing campaign, could impact Fanta's market share and brand image, considering the reported sales decline of £1.9m last year.


 

Next Ad Banned

 
In a recent ruling, the Advertising Standards Agency (ASA) has banned an online advertisement for Next clothing after receiving a complaint that the model appeared "unhealthily thin." The ad, which featured a model wearing denim leggings, was deemed to be irresponsible due to the pose, camera angle, and styling used, which emphasized the slimness of the model's legs. While Next defended the ad, stating that the model had a healthy physique, the ASA concluded that the ad gave the impression that the model was unhealthily thin. This ruling highlights the ongoing debate surrounding body image in advertising and the responsibility of companies to promote healthy and realistic representations of people.

BBQ - Discuss the ethical considerations that businesses should take into account when creating advertising campaigns


Tuesday, 11 February 2025

Lidl Raises Pay Ahead of Minimum Wage

 
Lidl's recent announcement of a pay raise for its UK staff, pre-empting the national minimum wage increase, signals a significant move in the retail sector. As reported by the BBC, this £39 million investment translates to a 4% to 10% pay rise for 26,000 employees, exceeding the upcoming minimum wage. This proactive approach likely stems from a need to attract and retain talent in a competitive market, boost morale and productivity, and enhance the company's reputation. While the move is positive, it also raises questions about the ability of smaller businesses to follow suit, the potential for wider wage inflation, and the long-term sustainability of such practices. Ultimately, Lidl's decision sets a new benchmark for employee compensation and highlights the increasing pressure on businesses to address the cost of living crisis and value their workforce.

BBQ - Discuss the potential benefits and drawbacks for Lidl of implementing this pay rise, considering factors such as employee motivation, recruitment, and profitability.

Friday, 7 February 2025

Trump Tariffs Hit Barbie

Toy making giant Mattel says it may increase its prices in the US to make up for the impact of Donald Trump's tariffs. It comes after the US president imposed 10% tariffs on all imports from China, where just under 40% of the firm's production is based. On top of potential price increases, the maker of Barbie and Hot Wheels says it could have to implement changes to its supply chain. Consumer and business groups in the US have warned that the tariffs may disrupt supply chains and lead to higher prices. The toy industry has been facing slower sales in 2024, as a higher cost of living meant shoppers had less cash to spend on toys. Despite this, Mattel's shares jumped by 10% in extended trading in New York, after the company forecast better profits for next year than had been expected by Wall Street analysts.

BBQ - Why is Trump applying tariffs to other countries imported goods? Who will benefit?

Job Cuts at Estee Lauder

 
Estée Lauder, the cosmetics giant, has announced plans to cut between 6,000 and 7,000 jobs globally due to declining sales. The company, facing headwinds from softening demand in key markets and struggling to recover fully from pandemic-related disruptions, is implementing a restructuring plan aimed at streamlining operations and focusing on profitable areas. This move reflects the challenges facing the beauty industry as consumer spending habits shift and competition intensifies. The job cuts represent a significant portion of Estée Lauder's workforce and signal a strategic shift as the company seeks to navigate a changing market landscape and regain growth momentum. The restructuring is expected to generate significant cost savings, which Estée Lauder plans to reinvest in brand building and innovation to drive future performance.

BBQ - What alternative strategies could the company have explored to boost sales and potentially avoid such significant job losses?

Estee Lauder

Netflix Raises UK Subscription Prices

 
Netflix has increased its subscription prices for all UK plans. The most affordable plan with ads now costs £5.99 per month, a £1 increase. The popular Standard plan, offering ad-free viewing on two devices, has risen by £2 to £12.99.The Premium plan, which includes 4K resolution and four simultaneous streams, is now £18.99, a £1 increase. The streaming giant says the price hike is necessary to fund investment in new content and improvements to its platform. This change comes alongside new fees for account sharing outside of a single household. The move has prompted discussion among subscribers, with some expressing frustration while others remain loyal. The price increase and the crackdown on password sharing raise questions about Netflix's long-term strategy and its ability to retain subscribers in an increasingly competitive streaming landscape.

BBQ - How does price elasticity of demand affect Netflix's decision to raise prices?

Thursday, 30 January 2025

Amazon Drone Lift Off

 
Amazon has announced Darlington as the location for its first UK drone delivery hub, marking a significant step in the company's innovative Prime Air service. This initiative aims to deliver packages to customers within 60 minutes using a fleet of electric drones, designed to enhance delivery efficiency and reduce carbon emissions. The decision follows successful trials in the U.S., where Amazon has safely completed thousands of drone deliveries since 2022. The company is working closely with local authorities and the Civil Aviation Authority (CAA) to ensure regulatory compliance and community engagement. By choosing Darlington, Amazon is not only advancing its technological capabilities but also potentially boosting the local economy through job creation and infrastructure development.

BBQ - How might Amazon's introduction of drone deliveries in the UK impact its logistics and supply chain management, and what challenges could the company face in implementing this technology?