Cross-brand collaborations open up store shelf space for CPG brands
Crossovers aren’t just for comic book characters anymore as consumer packaged goods (CPG) companies are more frequently reaching across the aisle to other manufacturers to create product mashups that let both companies capitalize on their name brand recognition.
Coca-Cola-flavored Tic Tacs, Starburst-flavored Yoplait yogurt and Twinkies-flavored cereal by Post are a few of the cross-CPG collaborations mentioned by SmartBrief’s Audrey Altmann in her coverage of the 2019 National Association of Convenience Stores show, which describes an increasing number of this kind of cross-branded combos.
View this post on Instagram
Brands are also trying to emulate the success of earlier CPG/restaurant brand mashups like the Doritos Loco Taco at Taco Bell. Kellogg’s-owned Cheez-it snack crackers will be making an appearance in Pizza Hut’s Stuffed Cheez-it Pizza, a calzone-like product. Taco Bell and Pizza Hut are both Yum! Brands companies.
Cereal brands have picked up on the trend more recently; in 2017 and 2018 Post began releasing cereal/snack brand mashups with Oreo’s, Nutter Butter and Chips Ahoy! in partnership with Mondelez, according to Adweek. Last year, the two teamed up again for a Sour Patch Kids-flavored cereal. Competitor General Mills got in on the act recently as well with Hershey’s Kisses- and Jolly Ranchers-flavored cereals, according to Adweek. In fact, sales of sugary cereals along these lines are up.
That sugary cereals are thriving on the grocery shelf may come as a shock given the extent to which both CPG in general and breakfast foods, in particular, have been disrupted by healthy eating trends.
The demand for healthier “better for you” snacks has compelled major CPGs to gain a foothold in the space, not so much through partnerships as through the acquisition of smaller companies. In 2017, both Hershey and Campbell Soup undertook such moves to diversify their product lines.
- CPG companies capitalize on brand recognition with collaborations – SmartBrief
- General Mills Makes It Official: Sugar And Cereal Are Back Together – Adweek
- Hershey and Campbell splurge big on better for you acquisitions – RetailWire
DISCUSSION QUESTIONS: What do you see as the pros and cons of brand mashups? Do you expect retailers to follow the example of foodservice chains such as Taco Bell and Pizza Hut and pursue mashups of their own with select CPG brands?