Saturday, October 5, 2013

Branded Food Success Beyond the Line Extension

Growing top line sales and bottom line profits in the retail food space is top of mind every day of the year. The first thing you learn in business 101 and marketing 101 is that line extensions are the least expensive way to increase sales and drive bottom line profits.  Line extensions are consumer acceptable, consumer relevant, and reliable to a point. 

So when do you know your restaurant brand, grocery brand or CPG brand is to that point?  Depending on your avenues of distribution the signals are a bit different. However Foodservice Solutions® Grocerant Guru® Steven Johnson has identified three universal commonalities they are:

1.       If either customer counts, transactions, and sales are flat or declining for six consecutive quarters.

2.       If none of the line extensions or LTO’s exceed 6.5% of sales in six consecutive quarters.

3.       In the C-suite justification and rationalization trump results.  

There are many companies that never get to that point. The picture above is from international recognized Brown & Haley Candy Company known for its Almond Roca buttercrunch toffee with almonds candy in the pink packaging. It must be noted that this candy company that has been in business 100+ and years edifies authentic to this day by using no artificial flavoring, colors or preservatives in Almond Roca. 

With a plethora of line extensions over the years last year Brown & Haley launched a new product in the alcohol space, Wine. Almond Roca Cream is an  indulgent flavored wine that combines almond, chocolate and toffee flavors all into a branded wine. Success does leave clues looking outside the box, while focusing on the brand can drive growth in new channels, while edifying traditional product sales with top of mind awareness.  

Outside eyes can deliver inside sales. What are you bundling with you core products? Who are your customers and where and how can you sell them more? For more Visit  or or  

Steven Johnson is Grocerant Guru at Tacoma, WA based Foodservice Solutions, with extensive experience as a multi-unit operator, consultant and brand/product positioning. Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche.

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