Welcome to The Week in Consumer Packaged Goods, a weekly round-up for marketers from Quad Insights that covers the latest must-know news surrounding the CPG space.
The Kellogg Company gets board approval to split into two companies
The Kellogg Company’s split into two independently traded companies — WK Kellogg Co. and Kellanova — advanced on Monday, as its board of directors formally approved the separation, according to a company statement. The move, which spins off Kellogg’s snacking business from its North American cereal brand, is expected to take effect Oct. 2.
With a focus on snacks and emerging markets, the Kellogg Company’s non-cereal operations will be renamed Kellanova — a nod to the company’s new direction, future chairman and CEO of Kellanova Steve Cahillane told USA Today’s Amritpal Kaur Sandhu-Longoria, as “nova” means new in Latin — while WK Kellogg Co., headed by CEO Gary Pilnick, references company founder W.K. Kellogg.
• “Will Kellogg’s (K) Strategic Separation Unlock Higher Potential?” (Nasdaq)
• “Kellogg board approves snacks spinoff based in Chicago” (Chicago Tribune)
SheaMoisture celebrates black men with launch of ‘Black Men Love’ campaign
Personal grooming brand SheaMoisture kicked off a new campaign this week focused on overcoming stereotypes to shape a new narrative about Black men — one that uplifts and celebrates them — according to a company statement. The three-part “Black Men Love” campaign from the Unilever brand, which highlights the many ways in which Black men show love and are changing perceptions of Black masculinity, includes a digital content series, wellness activities and partnerships with Black Men Heal, Black Men Smile and The Black Man Can.
“While SheaMoisture has offered products for men for several years, the brand historically was mainly bought by women,” Ad Age’s Jack Neff reports. “But the Unilever brand has been building a bigger men’s business in recent years and is taking a new tack on what corporate siblings Dove, Dove Men+Care and Axe have tried in recent years in combating stereotypes about its consumers.”
• “SheaMoisture men launches ‘Black Men Love’ campaign to redefine black masculinity” (The Source)
Coca-Cola releases first beverage co-created by AI
On Tuesday, Coca-Cola released its limited edition Y3000, the company’s first beverage co-created with AI, designed to present “an optimistic vision of what’s to come, where humanity and technology are more connected than ever,” according to the brand’s website. With regular and sugar-free options, Y3000 is built around the core Coca-Cola flavor, with supplemental flavoring informed by consumer insights and developed by AI, Danielle Wiener-Bronner of CNN Business reports.
Released under the company’s creative and collaborative online platform Coca-Cola Creations, the beverage is the latest of seven flavors designed to appeal to younger generations. As Wiener-Bronner notes, “It’s important for Coca-Cola to keep customers — particularly younger ones — excited about Coke, its more-than-a-century-old signature product.”
Coca-Cola is celebrating the launch of Y3000 with a combination of in-person and online experiences, including QR codes that link to the Creations site, where people can create their own vision of the year 3000, and the launch of a limited-edition capsule collection with luxury streetwear brand Ambush.
• “Coke introduces a new mystery flavor, made by AI” (Fortune)
The J.M. Smucker Co. leans into convenience category with acquisition of Hostess Brands
Adding to its portfolio of iconic sweet brands, The J.M. Smucker Co. announced on Monday an agreement to acquire Hostess Brands at $34.25 per share for a transaction value of approximately $5.6 billion. The move expands Smucker’s presence in the convenience category and, as Yahoo Finance’s Brooke DiPalma reports, comes as people are snacking more often, with half of Americans doing so up to three times a day, according to a survey from Circana— up from two years ago.
“According to Smucker, the snack megamerger, which is expected to close in Smucker’s fiscal third quarter, made sense as the company looks to expand its offerings for a different ‘snacking occasion,’” DiPalma notes.
• “J.M. Smucker to buy Twinkies maker Hostess for $5.6 billion” (Ad Age)
• “Vitamin Water sets up shop on Fortnite to promote zero-sugar products” (Marketing Dive)
• “Bacardi buys Ilegal Mezcal” (The Spirits Business)
• “Hain Celestial to overhaul business with aim of boosting growth through fiscal 2027” (MarketWatch)
• “Molson Coors expands investment in ZOA Energy” (Food Business News)
• “Signal: Tyson Foods deploys autonomous trucks in collaboration with Gatik AI” (Just Food)
• “How CeraVe’s influencer event doubled as an enormous content studio” (Ad Age)
• “Lunchables introduces two new flavors as kids get a warm take on a cheesy classic” (The U.S. Sun)