With Condiments
H.J. Heinz Co. in June announced plans to revamp its portfolio and commit an additional $100 million to marketing this year in an effort to boost sales three to four percent beginning in fiscal 2004.
The plan includes the purchase of a 75-percent stake in Del Monte Foods Co. and the move of a handful of Heinz pet food, tuna, and infant food brands to the “new” Del Monte. Brands moving to San Francisco-based Del Monte are StarKist, 9-Lives, Kibbles ‘n Bits, Pup-Peroni, Snausages, Nawsomes, Heinz Nature’s Goodness, and College Inn. The deal should close by early 2003.
The shift leaves Heinz with its meal enhancements brands — including flagship Heinz ketchup — and the Meals and Snacks division, which will get a $100 million boost in marketing, especially for new products. The focus on core brands will make Heinz “a faster-growing, more focused international food company,” says ceo William Johnson in a statement.
Del Monte takes over one of Heinz’s Pittsburgh campuses and will run the new businesses from there; Del Monte headquarters remain in San Francisco. About 5,000 Heinz staffers (11 percent of total staff) transfer to Del Monte, with fewer than 100 jobs being eliminated in the U.S. and Canada.
Nickelodeon, New York City, and online travel site Trip.com, Parsippany, NJ, inked a multi-million dollar marketing partnership to jointly offer family travel packages. A co-branded site featuring Trip.com technology and NickJr.com content will launch this fall targeting parents of small children. Users will have access to customized travel packages and discount airfares, hotels, condo and car rentals, cruises, and personalized services. Nickelodeon will also offer travel recommendations.
Procter & Gamble, Cincinnati, and Viacom Plus, New York City, extended their year-old cross-marketing partnership for a second year. The agreement covers marketing initiatives for various P&G brands across Viacom’s 14 national TV properties including CBS, MTV, and VH1. P&G also struck a similar one-year agreement with Bethesda, MD-based Discovery Communications to develop promotional initiatives across such networks as Discovery Channel, TLC, Animal Planet, and BBC America. The deal includes customized programming opportunities, as well as tie-ins with discovery.com and Discovery Channel Stores.
After giving up its position as corporate sponsor of the National Football League to arch-rival Pepsi-Cola (June promo), Atlanta-based Coca-Cola Co. continued reinforcing its sports portfolio by signing an 11-year, $500 million agreement with TV network CBS, New York City, and the National Collegiate Athletic Association, Indianapolis. The pact gives Coke rights to NCAA Championships in 22 sports, the centerpiece of which is the “March Madness” men’s basketball tournament.
