Client Newswrap: Coca-Cola launches ‘Facebook-flavour’ drink and Portman ponders product placement

BRANDS
Cadbury is expected to announce strong results tomorrow in a final defence against food giant Kraft‘s hostile takeover bid. The chocolate maker said profit margins had been boosted by strong Christmas sales. Meanwhile, Italian confectioner Ferrero is reported to be in negotiations with an Italian bank over a $4.5bn loan that could help fund a bid for Cadbury. Ferrero has until February 2 to make an offer for the firm.

Coca-Cola has added a ‘Facebook’ flavour to its Vitaminwater range in the US. The drink, called Connect, was conceived after a competition on the brand’s page on the ubiquitous social-networking site that invited consumers to design their own flavours.

A health select committee report on alcohol abuse has called for restrictions on drinks marketing to be tightened but advised against a complete ban. The report recommended the introduction of a minimum pricing system, claiming a minimum unit price of 50p would save 3,000 lives a year, and that for every five alcohol advertisements an advertiser should fund one pubic health ad. A 9pm watershed for alcohol advertising on TV was also recommended.

The Portman Group has expressed concerns that the relaxation of TV product placement rules could undermine existing controls on alcohol marketing in the UK. The group said that brands’ placement in TV shows could lead to alcohol being linked to excessive drinking or sexual success. Betting chain Paddy Power last week started taking bets on the brands that will be the first to appear in TV soap operas.

Heineken is set to buy the beer operations of Mexican group Femsa, which owns brands including Sol and Dos Equis, in a EUR 3.8bn deal. Under the deal, Femsa would become the second largest shareholder in the Dutch brewer, with a 20% stake.

Bread brand Hovis has signed a deal for Britain’s Olympic cycling champion Victoria Pendleton to front its adverts. The baker, famous for its campaigns featuring a boy riding a bicycle, has brought the athlete on board to help align its products with healthy-eating initiatives, Marketing magazine reported.

RETAILERS
Tesco has dropped a place in the league table of the world’s biggest retailers, falling from third to fourth, according to a report made public in The Times. Britain’s biggest grocer has been overtaken by German firm Metro, which owns cash-and-carry chain Makro in the UK, according to a study by accountancy firm Delioitte Touche Tohmatsu. Wal-Mart and French group Carrefour retained their positions, placed at first and second respectively.

Sainsbury’s has hailed a “record performance” over the festive period, posting a 6.2% rise in sales for the 13 weeks to 2 January 2010. The supermarket said in the seven days leading up to 25 December, it attracted 24m customers, making it the busiest Christmas on record for the retailer. Co-op also reported a strong festive period, with like-for-like sales up 5% in the three weeks to January 2.

The high street, too, is celebrating a successful Christmas. Poundland has said it will keep on 360 seasonal staff after like-for-like sales rose 4% for the five weeks to January 3. it has also unveiled plans to open eight new stores, creating 250 jobs, before the end of March. House of Fraser was also toasting a fruitful festive season, as like-for-like sales for the eight weeks to January 2 rose 7.1%.

Web retailer Ocado is launching a service that will enable shoppers to review products online. Under its Ratings & Reviews initiative, customers will be able to score products and write reviews on a product’s value, packaging and quality, and share their opinions through social networking sites such as Facebook and Twitter. The firm has also fitted winter tyres to its delivery fleet to tackle adverse weather conditions.

Morrisons has built a temporary store in the car park of its fire-ravaged store in Penrith, after the site went up in flames in December. The 743sqm temporary site will stock 7,000 lines and will be equipped with eight checkouts. The cause of the fire is still under investigation.

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