Kraft Plans to Split Into Two Separate Publicly Traded Companies

• Kraft Foods said today it plans to split into two publicly traded companies, an international snacks business including Cadbury, Oreo and Trident, and a North American grocery business with Kraft Macaroni and Cheese, Oscar Mayer, Philadelphia, Maxwell House, Jell-O and other non-snack brands.
• The company is aiming to finalize the split by the end of next year through a tax-free spin-off of the North American grocery business to shareholders.
• “We have built two strong, but distinct, portfolios,” Chairman-CEO Irene Rosenfeld said in a statement. “Our strategic actions have put us in a position to create two great companies, each with the leadership, resources and strong market positions to realize their full potential. The next phase of our development recognizes the distinct priorities within our portfolio. The global snacks business has tremendous opportunities for growth as consumer demand for snacks increases around the world. The North American grocery business has a remarkable set of iconic brands, industry-leading margins, and the clear ability to generate significant cash flow.”
• The snacks business would have revenue of $32 billion, including 75% from snacks sold globally and 42% in developing markets, the company said. The North American grocery business would be valued at $16 billion in estimated revenue, making it “one of the largest food and beverage companies in North America,” the company said. (www.adage.com)

Reese Towpower Backs Labonte At Pocono Raceway And Recently Signs On To Sponsor His Car At Homestead-Miami Speedway

• Cequent Consumer Products brand Reese Towpower®, the leading manufacturer for towing products, announced today the company added another race as primary sponsor of JTG Daugherty Racing’s No. 47 Toyota Camry with driver Bobby Labonte in the season finale at Homestead-Miami Speedway on November 20th.
• “Reese Towpower sponsored us in the NASCAR Sprint Cup Series Budweiser Shootout at Daytona International Speedway, which was the first race of the year and now they are sponsoring us in the last race of the season at Homestead-Miami Speedway,” said Bobby Labonte, driver of the No. 47 Reese Towpower/Highland entry fielded by JTG Daugherty Racing. “We are all charged up about what they were doing as a company and excited about the new products they have coming out. We have a good relationship with Reese Towpower that we hope will last for a very long time.”
• In addition to Reese Towpower kicking off the 2011 season, they also sponsored Labonte’s car during the NASCAR Sprint Cup Series All-Star event weekend in May at Charlotte Motor Speedway and they are primary for the Good Sam RV Insurance 500 at Pocono Raceway this weekend. Adding another race was an easy decision for Cequent Consumer Products as NASCAR fans are also their customers. (www.sponsorship.com)

PUMA Selected as Official Sportswear Partner of the America’s Cup

• Just days away from the first event of the new look America’s Cup, the America’s Cup Event Authority today introduced its official sportswear partner, PUMA. In addition to their role as sportswear partner, PUMA will operate both the official online and pop-up fan shop in ports hosting the 34th America’s Cup races. The first America’s Cup-branded merchandise offerings will be made exclusively available to fans attending the inaugural America’s Cup World Series event August 6 – 14 in Cascais, Portugal.
• As the official sportswear partner, PUMA will serve as the exclusive licensee of event-related sportswear for the America’s Cup Event Authority and America’s Cup Race Management teams, including their sailing performance gear.
• The partnership between the 34th America’s Cup and PUMA represents the continued reinvention of the Cup. From the groundbreaking AC45 wing-sailed catamaran and breakthrough television graphics to athlete’s view cameras and premium sportswear, every change of the 34th edition is focused on transforming the sport of sailing into fan-driven experience. (www.sponsorship.com)

Idaho Potato Commission Becomes Title Sponsor Of Famous Idaho Potato Bowl

• The Famous Idaho Potato Bowl was unveiled today as the new name for the Humanitarian Bowl which features a top selection from the Western Athletic Conference (WAC) and the Mid-American Conference (MAC). The nation’s longest-running outdoor cold-weather Bowl, played since 1997, will take place on Saturday, Dec. 17, 2011 at 3:30 p.m. MST at Bronco Stadium in Boise, Idaho and televised on ESPN.
• The Idaho Potato Commission signed a six-year naming rights deal to sponsor the Bowl, beginning immediately and running through the 2016 game. As part of the package, the Bowl will be featured prominently in national and regional marketing campaigns conducted by the Commission. Four of the top five potato-consuming states are represented by the WAC and MAC conferences: New York, Ohio, Pennsylvania and Texas.
• “We’re proud to support a bowl that has become a national showcase for the State of Idaho,” said Frank Muir, President and CEO of the Idaho Potato Commission. “It’s the perfect opportunity to reinforce the health and quality benefits of Idaho potatoes to a national audience while supporting a game that has generated significant funds for the local economy and associated charities.” (www.sponsorship.com)

Delta to Sponsor Whitney Museum of American Art

• Delta Air Lines and the Whitney Museum of American Art today announced a new sponsorship designating Delta as the official and exclusive airline of the Whitney Museum, the iconic art and cultural hub in New York City.
• The Whitney is the newest addition – and first in the arts category – to Delta’s extensive sponsorship portfolio in New York, which includes Madison Square Garden, The James Beard Foundation, 9/11 Memorial Fund, Food Bank for New York City, the New York Yankees and the New York Mets. The partnership aligns Delta with the world’s foremost collection of contemporary American art.
• As part of the agreement, Delta customers will receive benefits and discounts including complimentary access to the Whitney for members of the airline’s SkyMiles Medallion program. Starting Aug. 5, 2011, Diamond Medallion members will receive complimentary admission to the Whitney for themselves and one guest any day of the week. Platinum, Gold and Silver Medallion members and their guest receive admission the first Friday of every month. (www.sponsorship.com)

Dowdy Department Stores Start Looking Cool Again

• It seems department stores aren’t dying after all.
• The sector, long derided for dowdy merchandise, maze-like stores and crumbling facades, is making a comeback. Macy’s Inc., Nordstrom Inc. and Kohl’s Corp. are posting solid sales gains even as consumers remain cautious and manufacturing costs rise—and they are poised to continue the streak this fall.
• Attributes previously viewed as problematic are now working in department stores’ favor: scale, and a complex business model that involves a web of third-party vendors and in-house lines. While those once left department stores vulnerable to more focused competitors, they now afford more flexibility in picking and sourcing merchandise. The complexity also gives chains the ability to lure customers in with targeted markdowns without resorting to the storewide discounts that kill pricing power and profit.
• Department stores have expanded market share after almost a decade of contraction, according to data from Customer Growth Partners, a retail consultancy. “The mid-tier department stores are unabashedly doing better,” said Craig Johnson, president of Customer Growth Partners. (www.wsj.com)

Even Marked Up, Luxury Goods Fly Off Shelves

• Nordstrom has a waiting list for a Chanel sequined tweed coat with a $9,010 price. Neiman Marcus has sold out in almost every size of Christian Louboutin “Bianca” platform pumps, at $775 a pair. Mercedes-Benz said it sold more cars last month in the United States than it had in any July in five years.
• Even with the economy in a funk and many Americans pulling back on spending, the rich are again buying designer clothing, luxury cars and about anything that catches their fancy. Luxury goods stores, which fared much worse than other retailers in the recession, are more than recovering — they are zooming. Many high-end businesses are even able to mark up, rather than discount, items to attract customers who equate quality with price.
• “If a designer shoe goes up from $800 to $860, who notices?” said Arnold Aronson, managing director of retail strategies at the consulting firm Kurt Salmon, and the former chairman and chief executive of Saks.
• Tiffany’s first-quarter sales were up 20 percent to $761 million. Last week LVMH, which owns expensive brands like Louis Vuitton and Givenchy, reported sales growth in the first half of 2011 of 13 percent to 10.3 billion euros, or $14.9 billion. Also last week, PPR, home to Gucci, Yves Saint Laurent and other brands, said its luxury segment’s sales gained 23 percent in the first half. Profits are also up by double digits for many of these companies. (www.nytimes.com)

World Curling Championships secure presenting sponsor

• Richardson International has become the presenting sponsor of the 2012 Ford Women’s World Curling Championships, which will take place in Alberta, Canada.
• Canada’s largest privately owned agribusiness has sponsored curling events since 2008 and was a sponsor for both the 2010 Women’s World Championships and the 2011 Men’s World Championships.
• Jean-Marc Ruest, vice-president, corporate affairs and general counsel said: “Curling is a Canadian passion and we are proud to be the presenting sponsor of the 2012 Ford World Women’s Curling Championship. At Richardson, we have a legacy of supporting and investing in the community and we are happy to help bring a world-class event to Lethbridge.” (www.mediapost.com)

Audi Continues Hollywood Career With Emmys Deal

• Audi has gotten more mileage out of Hollywood in recent years than the cast of “Entourage,” getting fleet vehicles at big-time events like the Golden Globe awards, the Oscars, and the American Film Institute festival. It has had its cars in movies, held a-lister parties, and generally tried to get as much bang for its relatively small marketing buck as possible among left-coast influencers.
• The latest: Audi has signed on to be the official automotive partner of the Academy of Television Arts & Sciences, taking the mantle from Nissan Motors’ Infiniti luxury marque, which was official sponsor last year. Audi will activate across a number of events leading up to the awards, and on the Sept. 18 broadcast itself at the Nokia Theater at L.A. Live. The show, on Fox, is to be produced by Mark Burnett and hosted by Jane Lynch.
• Audi says the deal represents a multi-year partnership executed across several platforms starting with sponsorship of events leading up to the Emmys and spotlighting nominees. Among those events are the “Primetime Creative Arts Emmy Awards” on Sept. 10, the Red Carpet rollout for the telecast, the Governor’s Ball preview on Sept. 14, and the Performers’ Nominee Reception on Sept. 16.
• The company will ferry attendees of the Emmy events in a fleet of its vehicles. As it did for last year’s Emmys (despite Infiniti’s official status) and again early this year for the Golden Globes, the brand will host a pre-Emmy Awards fête at West Hollywood’s Cecconi’s. (www.mediapost.com)

Dunkin’ Launches K-Cups; Starbucks Soon to Follow

• This week, U.S. Dunkin’ Donuts restaurants are beginning to sell the brand’s coffees in single-serve Keurig K-Cups.
• That gives Dunkin’ a slight jump on Starbucks, at least on the restaurant distribution front, since Starbucks will not start offering K-Cups in its restaurants (and in mass retail) until the fall.
• Dunkin’ announced its K-Cup agreement with Green Mountain Coffee Roasters Inc., parent of Keurig — which owns about 80% of the single-serve market — in February. The agreement does not extend to selling the Dunkin’ brand coffee cups at retail, outside of its own restaurants.
• The suggested retail is $11.99 for a pack of 14 Dunkin’ K-Cups. Five of the brand’s coffee flavors are available. (www.mediapost.com)

Schick Does Promotional Deal With Thrillist.com

• Schick Hydro Blast razor is running a promotion on Thrillist’s JackThreads.com fashion site. The former is a N.Y.-based emailed newsletter for men. It entered the e-commerce business when last year it acquired Columbus, Ohio-based jackThreads.com, a members-only flash-sale site for men.
• The program for Schick Hydro revolves around “Choose-Your-Own Adventure,” tied to an “Ultimate Hydro Vacation Sweepstakes.” The point is to choose a destination, lodging, after-hours outings, and daytime activities, with a chance to win a vacation.
• The male grooming brand is also teaming up with JackThreads to present the “Have a Blast” Summer Travel boutique, which involves discounted men’s lifestyle brand travel gear. The “Ultimate Hydro Vacation” and “Have a Blast” summer travel boutique offer content and prizes curated by Thrillist, Jack Threads, and the sites’ fan bases on Facebook.
• The companies say every order placed through JackThreads the week of Aug. 8 will be shipped with a free Schick Hydro 5-blade razor. Thrillist has digital editions in 20 major metro markets and focuses on under-the-radar events and hot spots. (www.mediapost.com)

DressBarn, Amazon, Hhgregg Top Growth List

• While Internet-based retailers are still among the fastest-growing, a new ranking from The National Retail Federation shows that some specialty chains are also flying high.
• In fact, grabbing the No. 1 spot is Ascena Retail Group, which owns women’s budget apparel chains DressBarn and Maurices, as well as Justice, which targets teens and tweens. (The company acquired Tween Brands in 2009, which helped propel sales up 59% last year to $2.4 billion.)
• Amazon came in No. 2 on this year’s Hot 100 Retailers list, published by the trade association’s Stores magazine, while Tesco’s Fresh & Easy came in third.
• Consumer electronics and appliance retailer Hhgregg shot from No. 25 last year to No. 4, as it scooped up market share from the now-kaput Circuit City, with sales jumping 36% in 2010 to $2.1 billion. (www.mediapost.com)