Tim Hortons Expands to China

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“Tim Hortons has arrived in China, joining the high-stakes battle to sell coffee in a massive country that mostly drinks tea.

The Canadian coffee-and-doughnut chain, run by Burger King-owner Restaurant Brands International Inc., plans to focus on “everyday value” as it muscles up against the ambitious plans of local and foreign players such as Starbucks Corp. Its also debuting at a tricky time as a diplomatic row brews between China and Canada (…).

GEOPOLITICAL ISSUES

Besides joining a crowded field that includes Dunkin’ Brands Group Inc., Coca-Cola Co.’s newly acquired Costa Coffee and local startup Luckin Coffee, Tim Hortons faces a slowing Chinese economy and complicated geopolitical situation.

Its origins as a beloved Canadian brand may run into some nationalistic consumers, given the political tensions underway currently.

Chinese firm Huawei Technologies Co.’s chief financial officer Meng Wanzhou has been held in Canada at U.S.’ request since last December. The Canadian government said in January that 13 citizens have been detained in China since Wanzhou’s arrest.

Many Chinese consumers, however, seem unfazed. Canada Goose Holdings Inc., which opened its flagship store in Beijing in December amid calls for boycott of Canadian goods, downplayed the backlash fears earlier this month after it saw shoppers line up outside its store.

Tim Hortons has struggled to build a following outside its home country. The chain, named for a Canadian hockey star, is opening its first Chinese shop on Tuesday in People’s Square, in Huangpu, Shanghai and is banking on a growing middle class keen to try Western inventions like its honey cruller donuts.

“Tim Hortons will need to offer not just something unique that Chinese consumers can’t find at other chains, but also spend heavily on marketing to build awareness of the brand,” said Jason Yu, Shanghai-based general manager of Kantar Worldpanel in Greater China.”

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Hy-Vee App Aims to Reduce Food Waste and Save Money

“Hy-Vee Inc. has begun piloting a mobile shopping app that helps grocery retailers cut back on food waste. Called Flashfood, and developed by a Toronto company of the same name, the app enables consumers to browse and buy food items nearing their “best before” date at “significantly reduced” prices, Hy-Vee said Friday.

To use Flashfood, customers download the free app (available in iOS and Android versions) and then start shopping deals on items such as meat, dairy, bread and snacks. Purchases are then made directly from their smartphone and picked up at any time from the Flashfood Zone shelves or refrigerators in the store.

The program gives consumers a way to lower their grocery bill and help the environment by reducing unnecessary food waste, according to Flashfood.”

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How CPG companies should adapt to “the new consumer experience”

"The traditional five Ps of marketing are obsolete in the era of the new consumer experience"

“It’s a brave new world for CPG brands – and the critical organising principle for food companies should be what I call the new consumer experience, which involves how we shop, what we consume and how we form personal relationships with brands.

And central to the new consumer experience is the millennial-minded consumer.

In this age of the new consumer experience and millennial-minded consumer, the traditional five Ps of brand marketing no longer apply as conventionally interpreted and understood. The emergence and centrality of the new consumer experience is changing everything we were taught in business school or on the job.

Why? Because consumers today want brands that create experiences that resonate with them personally and with those in their tribe or community who share the same values and lifestyles.

For example, telling stories and creating experiences around a CPG brand using social media and other creative online and offline platforms matters as much or more today than the free-standing coupon insert and 60-second television spot has over the last 50 years.”

Read more here.