Bringing together well-known food and beverage brands

www.facebook.com/pretamanger/

Thirty-two years ago, Pret a Manger opened its doors in London. Ten years ago, the fast-growing chain of coffee/food shoppes was sold to a private equity firm. And now, Pret a Manger has another new owner.

The new owner, JAB Holdings has acquired a number of well-known coffee and food brands. These include Krispy Kreme, Douwe Egberts, Tassimo, Panera Bread, Dr Pepper Snapple and Keurig Green Mountain.

With 530 shoppes in the UK, US, China, Hong Kong and France, Pret a Manger has a loyal customer following, in person and on social media. Will JAB, the new owner, co-brand shoppes or products, given the high profile of its pantry of products? Will the new owner use the shoppes (Panera Bread and Pret a Manger, for instance) as a distribution channel for other brands in the company's portfolio? Lots of possibilities for strategic synergy!

Reckitt Benckiser adjusts its product portfolio

Reckitt Benckiser's product portfolio includes brands for the home (Vanish, Calgon, Woolite), for personal health (Scholl, Nurofen, Strepsils) and for hygiene (Dettol, Harpic, Lysol). Until recently, RB also had some food brands in its product pantry.

Now it has sold those food brands to McCormick, a major spice company based in the US. This is a strategic move, not just to raise money for debt reduction following the acquisition of Mead Johnson Nutrition. Strategically, food brands like French's condiments and Frank's RedHot sauce are not core to RB's product portfolio, given the move toward health and hygiene. Also, these food brands contribute less than 5% of RB's revenues.

Interestingly, RB had several bidders trying to buy its food brands, partly because brands like French's are strong in specific areas (US and Canada) but also to keep these brands out of the hands of competitors. French's has a devoted customer following in Canada because it makes its ketchup there, giving the brand a strong local connection.

This post updates coverage of product-mix and product-line decisions in Chapter 6 of Essential Guide to Marketing Planning.