- In response to shifting consumer preferences and a slew of poor earnings reports, many companies are taking different strategies with their brands to improve their bottom line.
- According to sources reported by The Deal, Kraft may be considering a sell-off of some of its brands, which could include ones like A.1. Steak Sauce and Shake 'n Bake.
- To further appeal to health-conscious consumers, Attune Foods has committed to making its entire brand portfolio either USDA Organic Certified and/or Non-GMO Project Verified by 2016's close. Five of its seven brands are already at least one of the two, and the company is in the process of having its last two brands Non-GMO Project-certified as well.
Previously covered by Food Dive, Attune Foods, as a maker of cereal and granola, is parent company Post's part in the cereal industry's attempt to revitalize a market that is floundering at a time when consumer opinions about grains and chemical additives are changing, both of which are more often than not ingredients in many cereals. Part of the cereal industry's strategies is to make more of their products organic or GMO-free, so it makes sense that Attune Foods, already a mainly organic and natural foods company, would start to complete the certification of its portfolio.
As for Kraft, should the company shed these brands, as rumored, it would be taking a different route than some other food and beverage manufacturers who also reported mixed or disappointing earnings. Instead of selling off some brands like Kraft might (though it is, in fact, set to retool its Capri-Sun recipe), many food and beverage companies are retooling existing brands and/or adding new brands that appeal to health-conscious consumers. For example, to fight sagging soda sales, Coca-Cola introduced the stevia-sweetened Coca-Cola Life and has reconfigured its Coca-Cola Canada recipe to be less sweet and in healthier-sized packaging.
Kraft, on the other hand, may think unloading weight is the better answer for certain brands, so it would be interesting to see how this strategy pans out if it happens.