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.

Fanta

 

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

Next Ad Banned

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.

Lidl Minimum Wage

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?

Trump Tariff

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?

Netflix