Latest news with #Nestle-owned
CNBC
19-07-2025
- Business
- CNBC
Coffee giant Nescafe targets Gen Z as consumption habits shift
ORBE, Switzerland — For almost a century, a nondescript factory in an unsuspecting town beneath the Swiss mountains has played host to some of the most widely consumed coffee trends brewed up by caffeine giant Nescafe. From the 1938 launch of its flagship soluble powdered coffee to freeze-dried granules and later coffee capsules, the Nestle-owned household brand is now targeting its latest iteration for the next generation of coffee drinkers. "We have to develop solutions specifically to bring young people into the Nescafe brand," Don Howat, global category lead for Nescafe at Nestle, told CNBC. For Nescafe, that means targeting the ballooning cold coffee market. Today, one-third (32%) of coffee consumed out-of-home is iced, according to company compiled estimates. For many younger consumers, namely Gen Z, it's often their first introduction to the ubiquitous drink. "Nescafe's heartland is really in the morning, drunk hot," Howat continued. "We're trying to move into a space which is throughout the day — more in the afternoon, consumed cold, retargeting that younger generation." "That provides a super exciting growth opportunity for Nescafe." Coffee is a big bet for Nestle, with Nescafe and sister brand Nespresso accounting for two of the company's six key priorities for 2025. It represents a return to the core for the world's largest food and beverage company, whose main lines include coffee, pet care and food under popular brands such as Nespresso, Purina and KitKat. Nestle's stock has lagged major rivals such as Unilever and Danone over recent years amid weaker sales growth and revised guidance, even as the sector at large has come under pressure from higher commodity prices and increased private label competition. CEO Laurent Freixe, who took the helm in September, has vowed to refocus the business, saying a slew of acquisitions under his predecessor had "weakened the fabric" of the company. "We want fewer, bigger, better innovations. We want breakthrough and impact," Freixe told a media event earlier this month, citing coffee as one of the categories with the highest rate of "clear-cut" wins. The firm's latest gambit, Nescafe Espresso Concentrate, nevertheless marks a new approach to product development — one it plans to extend to other categories. The cold liquid concentrate, which can be used as a base for chilled caffeine drinks, was developed in a research and development (R&D) accelerator and trialed in U.S. Kroger stores before its ultimate sign off. It is one in a stream of cold coffee products to flood the market lately, however the majority have been in the pre-mixed, ready to drink (RTD) space. Nestle says its goal is customization, with the concentrate designed to let consumers "hack" their coffee at home according to their preferences, for instance by adding milk, water, lemonade or other beverages. "Most young people have grown up with coffee cold … their expectation is for cold coffee, lots of flavors, textures, additions," Howat said. Launched in Australia in late 2024, the product has since expanded to the U.S., U.K., Canada, Japan, China and Singapore with plans for further markets underway. Meanwhile a collaboration with influencer Zach King is seen marketing the product at social media users. "It's achieving what we set out to achieve," Howat said. "It just takes the brand into a different space." The coffee giant is now hoping that by targeting new consumers and consumption habits, it could pave the way for further expansion into adjacent categories. That includes penetrating traditional tea markets like India, China and Japan, building out customization and premiumization, and targeting new consumption occasions. "What's interesting about younger consumers is they're drinking a lot less alcohol," Howat said. Successive studies have pointed to lower alcohol consumption habits among Gen Z compared to previous generations, sparking a surge in non-alcoholic and health and wellness-oriented alternatives. July research from an ISWR survey sought to debunk that narrative, however, citing the cost-of-living crisis as a source of the perceived abstinence trend. Nescafe nevertheless said it sees new scope to position coffee as an all-day product and sophisticated alcohol alternative. "When they socialize in the evening with their friends, they'd like to drink something which is adult but perhaps doesn't have alcohol," he continued. "That provides an opportunity for Nescafe to get into that space, perhaps with decaffeinated products, with cold products, indulgent products," he said.
Miami Herald
05-06-2025
- Business
- Miami Herald
Domino's and Pizza Hut rival makes ‘first-in-decade' menu change
There was a time when people would say that any pizza was pretty good, even some of the worst takeout and frozen options. Consumers ate bad pizza (or decent pizza depending upon how you look at it) because it was the best option. Calling Domino's (DPZ) for delivery, or pulling out a frozen pizza from the back of the freezer (or maybe even stooping pizza rolls) was the best late-night option. In some markets, it was the only delivery choice. Related: Popular dessert, fast-food chain survives Chapter 11 bankruptcy Bad pizza was better than cooking, especially if you had limited ingredients to work with. Food delivery services changes all of that. Now, Uber Eats and DoorDash will bring you sushi, Italian food, Chinese, and who knows what else until fairly late hours. You can also order pizza from local places , and the competition for your food dollar has increased. Don't miss the move: Subscribe to TheStreet's free daily newsletter Delivery from Uber Eats and other services, however, is expensive and many consumers have been tightening their budgets when it comes to food. People who used to order higher-end pizza, might opt for Domino's or Pizza Hut, while those chains may lose customer to frozen pizza. Now, a leading player in the space wants to give people a mix of value and gourmet that may fit the current market really well. DiGiorno has long-used the catchphrase, "it's not delivery, it Digiorno." They saw that as a positive, some customers saw it as an apology. Sure, I could have gotten delivery, but instead I opted for this frozen pizza. It's either lazy or insulting, but not person actually needs to be told they're eating a frozen pizza. DiGiorno has marketed itself as premium frozen, which it is, but it's all relative. The company offered a superior product to much of what you see on grocery shelves. It's better (to most) than Elio's, Red Baron, and many of the other offered brands. More Food: Applebee's brings back all-you-can-eat deal to take down Chili'sPopular Mexican chain reveals surprising growth plansStarbucks CEO shares plan for a whole new menu In most cases, it was equal to say California Pizza Kitchen and other premium frozen brands. DiGiorno may also be better than some freshly-made frozen in-house pizza brands, but many Publix and Fresh Market fans might argue that. DiGiorno was upscale in that it was higher-quality than most of its rivals. Now, the Nestle-owned company wants to put a flag in the sand. It does not want to just say it's better. It actually want to be better. Premium frozen pizza is a bit like saying, "that's the best gas station sushi I have ever had. Still, DoGiorno has made a real bid to offer something better. The company has added a new line, Wood Fired Style Crust Pizza. "This all-new pizza from DiGiorno features premium toppings and a perfectly crisp crust that serves up restaurant-quality taste fresh from your oven. Previously baking the crust at high temperatures to achieve a perfectly chewy and lightly charred texture, the DiGiorno Wood Fired Style Crust Pizza elevates the at-home pizza experience offering a dough with rich flavor, airy structure and the perfect bite," the company shared in a press release. Related: Popular local Dairy Queen rival suddenly closing, no bankruptcy The U.S. pizza market is nearly $55 billion, but less than 20% is frozen pizza. In a time where budgets are getting tighter, DiGiorno may be hitting a space in offering a mix of quality and value. The company will offer four flavors: DiGiorno Wood Fired Style Crust Four Cheese Pizza features a rich blend of cheeses-Romano, Asiago, Mozzarella, and Wood Fired Style Crust Italian Meat Trio Pizza includes a curated blend of pepperoni, salami, and Italian Wood Fired Style Crust Supreme Speciale Pizza is a vibrant celebration of flavors featuring generous layers of savory pepperoni and sausage and topped with a medley of colorful vegetables-green, yellow, & red peppers and Wood Fired Style Crust Premium Pepperoni Pizza is stacked with rich, zesty pepperoni on a crispy, lightly charred crust. All four DiGiorno Wood Fired Style Crust Pizza varieties will be available at retailers nationwide for an MSRP of $6.49 (prices may vary by store) starting in May. Some have hailed this as a "first-in-a-decade" change. "Frozen pizza hasn't seen a major innovation in a decade when stuffed crust hit the market, Graves said. Before that, it was rising crust, which was developed by DiGiorno in 1995," FoodDive reported. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
28-02-2025
- Business
- Yahoo
Feb. 28 is Economic Blackout Day: What does that mean?
The Brief On Feb. 28, there's been a call for a 24-hour "economic blackout" when U.S. residents are encouraged to avoid spending any money. The grassroots organization that is encouraging the blackout is called the People's Union USA. The blackout is a protest against the influence of billionaires, big corporations and both political parties on American lives. On Feb. 28, there's been a call for a 24-hour "economic blackout" to protest the alleged malign influence of billionaires, big corporations and both major political parties on the lives of working Americans. Dig deeper An "economic blackout" is a time when U.S. residents do not spend any money as an act of "economic resistance." The movement was encouraged by the People's Union USA, a grassroots organization "dedicated to economic resistance, government accountability, and corporate reform,"according to the union's website. The organization's website says it's not tied to a political party but stands for all people. Requests for comment sent to the group's email address this week did not receive a reply. Feb. 28 is just the first date of the "economic blackout," according to the organization. What they're saying "February 28 is a symbolic start to economic resistance, a day where we show corporations and politicians that we control the economy." The date itself is not tied to any historical event and has no underlying meaning. The planned blackout is scheduled to run from 12 a.m. ET through 11:59 p.m. ET on Friday. The activist group advised customers to abstain from making any purchases, whether in store or online, but particularly not from big retailers or chains. It wants participants to avoid fast food and filling their car gas tanks, and says shoppers with emergencies or in need of essentials should support a local small business and try not to use a credit or debit card. The People's Union USA is encouraging future "economic blackout" events beginning Friday through April. These future blackouts include more specific targets, such as an Amazon Blackout and a Walmart Blackout, as well as several more 24-hour economic blackout days. Timeline March 7-14: Amazon Blackout (No Amazon purchases, no Whole Foods, no Prime orders) March 21-28: Nestle Blackout (Boycotting Nestle-owned brands "due to water exploitation, child labor and corporate greed.") March 28: 24-hour economic blackout No. 2 April 7-13: Walmart Blackout April 18: 24-hour economic blackout No. 3 April 21-27: General Mills Blackout (" Exposing food industry corruption and the poisoning of our families.") Some retailers may feel a slight pinch from Friday's broad "blackout," which is taking place in a tough economic environment, experts said. Renewed inflation worries and President Donald Trump's threat of tariffs on imported goods have already had an effect onconsumer sentiment. What they're saying "The (market share) pie is just so big," Marshal Cohen, chief retail advisor at market research firm Circana, said. "You can't afford to have your slices get smaller. Consumers are spending more money on food. And that means there's more pressure on general merchandise or discretionary products." Still, Cohen thinks the overall impact may be limited, with any meaningful sales declines more likely to surface in liberal-leaning coastal regions and big cities. The backstory Other boycotts have produced different results. Target saw a drop in sales in the spring and summer quarter of 2023 that the discounter attributed in part to customer backlash over a collection honoring LGBTQ+ communities for Pride Month. As a result, Target didn't carry Pride merchandise in all of its stores the following year. It was a different story for Bud Light, which spent decades as America's bestselling beer. Sales plummeted in 2023 after the brand sent a commemorative can to a transgender influencer. Bud Light's sales still haven't fully recovered, according to alcohol consulting company Bump Williams. The Source Information for this article was gathered from The Associated Press and the People's Union USA website. This story was reported from Los Angeles.
