Good day. In case you missed it and need some lighthearted entertainment, McDonald’s and Dairy Queen are embroiled in a war of words via signs at locations in Marshfield, Missouri. Let us know who you think is top dog.
In today’s edition:
—Andrew Adam Newman, Erin Cabrey, Jeena Sharma
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The Simpsons/Fox via Giphy
Kellogg’s has always been ahead of the curve when it comes to food brands making health-related claims, and is even believed to be the first food company to have done so on packaging, when in 1984, it began linking high-fiber foods with a lower incidence of several cancers on boxes of All-Bran cereal.
But recently in the UK, some Kellogg’s cereals have been targeted for just the opposite, namely having high sugar content that could raise the risk of obesity for consumers who pour them into their bowls.
Embattled Creek: Kellogg’s UK, a subsidiary of the Battle Creek, Michigan-based Kellogg Company, had challenged proposed regulations that would ban products with high levels of sugar, fat, or salt from some supermarket discounts, including buy-one-get-one-free offers.
A judge ruled against the cereal maker, and the discounting restrictions are expected to take effect in October.
- Kellogg’s had argued that the proposed rule was unfair because it didn’t take into consideration that the cereals in question often are paired with milk.
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“We still believe that it is important that cereals are measured in a way which reflects how most people eat them—with milk,” Chris Silcock, the managing director of Kellogg’s UK, told the Guardian.
Marion Nestle, the author of books including Food Politics and a retired professor of nutrition, food studies, and public health at New York University, laughed about the milk-pairing argument.
“I love that!” Nestle told Retail Brew. “It’s really funny—people eat cookies with milk, too.”
Some Kellogg’s cereals actually are made up of a higher percentage of sugar per serving than some popular cookie brands:
- Honey Smacks contains 50% sugar (18 grams—more than 4 teaspoons—in a 36-gram serving size), while Smorz cereal contains 43.9% sugar.
- By comparison, Oreos, which claim they’re “Milk’s favorite cookie” on packaging, contain 41.2% sugar, while Chips Ahoy! cookies have 33.33% sugar.
Grant Thomas
Click here to keep reading.—AAN
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Erin Cabrey
Delivery trucks for online-grocery service FreshDirect have recently been blocking traffic in New York City’s Upper East Side, often double- or triple-parking to set up what appears to be a “street warehouse,” according to local news outlet Upper East Site.
Last Tuesday, FreshDirect trucks were triple-parked on Third Avenue between East 85th and 86th Streets, using cones owned by the City’s Department of Environmental Protection and a barrier from energy company Con Edison and “bottle-necking traffic,” per the outlet.
- Later in the day, one truck remained, but the barrier and cones continued to block the left-hand turn lane to store cases of water. The next day, this lane was filled with hand trucks of deliveries.
- When Retail Brew visited the site on Thursday evening, a single truck was parked along the curb with hand trucks extending into the lane.
Hazard lights: Andrew Fine, VP of the East 86th Street Association, first tweeted images of the trucks on July 12. “This is a game of Whac-A-Mole,” he told Upper East Site. “Chased from one location, they practice the same game of dominating metered parking, hydrant spots and second and third lanes of traffic, with no cares.”
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Tweeted photos from the association show the company has been using the space since at least May.
Last December, a mini-motorcycle driver died after crashing into a Ryder truck delivering for FreshDirect that was using the intersection of East 76th and First Avenue as an illegal loading zone.
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Last June, a 13-year-old-boy and 62-year-old man were hit and injured by a FreshDirect driver making a left turn at an intersection in Manhattan.
FreshDirect responded to Upper East Site’s and Fine’s tweets on Tuesday about the incident, stating the information would be forwarded to its transportation team. FreshDirect did not return a request for comment from Retail Brew.—EC
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Nike
Nike shoppers in Seoul’s Nike Style store were greeted with the retailer’s latest concept store last week. Nestled in the Hongdae neighborhood of the South Korean capital, it stocks seasonal collections alongside localized products curated for the area.
- The store features “gender-agnostic lifestyle product zones,” according to Nike, which include apparel, footwear, and accessories. Augmented-reality installations allow customers to interact with QR codes throughout the store in a more immersive experience.
Nike says it plans to open a second Nike Style store in Shanghai this fall, followed by more in other countries, the retailer announced.
Zoom out: Part of Nike’s efforts to solidify its DTC strategy is optimizing store concepts, which include Nike Style, Nike Live, and Nike Rise, to push localized collections.
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The Nike Live store in Williamsburg, Brooklyn, features a section of gender-neutral apparel and footwear as part of its plan to connect with the Gen Z consumer.
With the expansion of Nike Style and its other store concepts, the retailer is hoping to “blend physical and digital experiences,” it noted in the release. It is also something that’s been part of Nike’s long-term strategy. “We’re using digital services to create a Nike distinctive experience that blurs the line between digital and our stores,” Daniel Heaf, vice president of Nike Direct, told Retail Dive last November.—JS
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Today’s top retail reads.
By any tweens necessary: How a revamped retail strategy and the return of Y2K trends led to the comeback of tween-favorite mall store, Claire’s. (Fast Company)
Dream team: From Lucky Charms Swiss Miss to Kraft Macaroni & Cheese x Van Leeuwen, a look at the benefits of a food & bev brand collab. “Partnering with like-minded brands allows us to reach new consumers while creating conversation-generating moments for both brands,” said Truff’s director of marketing Michelle Gabe. (The Takeout)
Take the lead: Amazon CEO Andy Jassy’s leadership style has diverged from his predecessor over the past year, particularly when it comes to his hands-on approach to regulatory challenges. (the New York Times)
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Amazon, in very real news, is suing the admins of 10,000+ Facebook groups because of allegedly fake reviews.
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YouTube announced a slate of new shopping features, including a tie-up with Shopify that gives merchants another platform to make a sale.
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Instacart investor Capital Group Cos. slashed its valuation of the grocery delivery company to $14.7 billion. (Instacart’s own valuation comes in at $24 billion.)
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Toys “R” Us is making another comeback: The toy retailer will be in every Macy’s location by October, expanding on a prior partnership.
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Francis Scialabba
What happened in the world of retail this week in…1904 and beyond? Retail Brew takes you way, way, way back.
It’s only been a year since Jeff Bezos launched himself into space. We guess time really does zoom by.
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On July 17, 2000, General Mills agreed to buy Pillsbury from Diageo for up to $10.5 billion in cash and stock—a fully-baked move that would make General Mills the third-largest food company in North America at that time. (It’s now No. 8 in F&B.)
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Also on July 17, but in 2015, PayPal was spun off from parent company eBay.
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On July 19, 1921, the trademark for “Breyers Ice Cream” was registered.
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And July 23, 1904—by some reports—is the day we welcomed the ice cream cone, after Charles E. Menches scooped ice cream into a pastry cone.
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Catch up on the Retail Brew stories you may have missed.
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Written by
Andrew Adam Newman, Erin Cabrey, and Jeena Sharma
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