NEWS IN REVIEW AUTUMN 2018
July ’ s heatwave boosts sales
Coca-Cola buying Costa for £ 3.9billion
Sofology launches new £ 22m CGI ad campaign
Mulberry set to lose £ 3m from HoF downfall
NEWS IN REVIEW AUTUMN 2018
July ’ s heatwave boosts sales
New figures for the 12 weeks to 12 August have revealed that sales growth of branded products is higher than own-brand products .
The figures , which came from Kantar Worldpanel , show that more branded categories such as savoury snacks , ice cream and soft drinks performed well during the heatwave which meant branded growth of 3.9 % was ahead of that for total own label .
Fraser McKevitt , head of retail and consumer insight at Kantar Worldpanel , said : “ Consumers ’ willingness to spend that little bit extra to fully enjoy the summer sunshine has helped push brands ahead of their own-label counterparts . At Tesco and Sainsbury ’ s branded growth has outstripped own-label for a while and – as the two biggest retailers in the grocery market – this has contributed to the market shift . More expensive premium own-label lines across the market are still growing strongly though – up 6.3 %.”
Coca-Cola buying Costa for £ 3.9billion
Whitbread has agreed to sell the Costa coffee chain to Coca-Cola Company for a deal worth £ 3.9billion . The transaction is expected to complete in the first half of 2019 .
The sale is expected to be worth £ 3.8billion after separation costs . In addition , a significant majority of the money raised through the sale is expected to be returned to Whitbread shareholders .
Alison Brittain , Whitbread chief executive , said : “ I am delighted that we have agreed the sale of Costa to Coca-Cola for £ 3.9 billion . This transaction is great news for shareholders as it recognises the strategic value we have developed in the Costa brand and its international growth potential and accelerates the realisation of value for shareholders in cash .”
James Quincey , Coca-Cola president and chief executive , said : “ Costa gives Coca- Cola new capabilities and expertise in coffee , and our system can create opportunities to grow the Costa brand worldwide . Hot beverages are one of the few remaining segments of the total beverage landscape where Coca-Cola does not have a global brand . Costa gives us access to this market through a strong coffee platform .”
Sofology launches new £ 22m CGI ad campaign
Sofology has launched a new £ 22 million CGI advertising campaign across TV and digital channels . It has been named ‘ The ‘ Little Things ’ and features a voiceover by actor and writer David Duchovny .
deadline . 43 % of people regret that choice . Considering you sit on your sofa for a good seven to ten years , it ’ s imperative that our messaging supports the comfort of our customers ."
Explaining the thinking behind the advert , Andy Leadbetter , chief marketing officer at Sofology , said : “ Many people choose their sofa based on an offer , price or
Created by independent creative agency Brave , the campaign will also run across digital and social channels and will be available to view in store ( and on YouTube ).
Mulberry set to lose £ 3m from HoF downfall
Mulberry will take a profit hit of around £ 3m as they currently operate 21 concession stands in House of Fraser .
It currently employs 88 people across the UK as part of its global store and digital network . However , due to the collapse they are now expected to provide £ 3m for exceptional costs in the results for the six months to 30 September 2018 .
“ The group is in a strong cash position and continues to follow its strategy to develop Mulberry into a global luxury brand . Over the past two years the group has enhanced the international network , particularly in Asia , and will continue to invest in the omni-channel experience and marketing across its international markets .”
A spokesperson from Mulberry has said “ If these sales trends in the UK continue into the key trading period of the second half of the financial year , the group ' s profit for the whole year will be materially reduced .
10 September 2018