A Healthy Choice cereal sounded like a can’t miss idea four years ago, when Kellogg acquired licensing rights to that brand from ConAgra.
After all, the Healthy Choice name, almost synonymous with a horde of low-fat items, has been a standout, with overall sales now pushing $1.5 billion.
As a ready-to-eat cereal, Healthy Choice was doing OK. Sales were at the $65 million annual level two years ago, but the brand now is on a slide, and grocers caught in a shelf-space crunch are discontinuing one of the varieties.
There has been minimal advertising and promotion behind Healthy Choice cereal. And, in the recent industry discount wars, Healthy Choice held its price, a competitive disadvantage.
Leo Burnett Co. still is ad agency of record for Healthy Choice, as well as a number of other Kellogg cereals, but in a surprise move, ConAgra and Kellogg have tapped Cramer-Krasselt Chicago for a creative project on Healthy Choice.
While declining specifics, Scott Eckert, corporate director of marketing for ConAgra Inc. in Omaha, says the firms hope the project will reverse the decline for Healthy Choice. In a recent 52-week period, Healthy Choice cereal’s overall sales have dropped more than 25 percent, to $40 million in supermarkets, according to Information Resources Inc.
Healthy Choice’s three varieties are all down in sales; Almond Crunch with Raisins and Toasted Brown Sugar Squares are doing better than Golden Multi Grain Flakes. The latter was off 34 percent, and you may have difficulty finding it.
“After all, how many flakes does a grocer want to stock?” confides Eckert.
But Battle Creek, Mich.-based Kellogg and ConAgra aren’t giving up on the flaked Healthy Choice cereal.
There is other good news for Cramer-Krasselt, whose Chicago and Milwaukee offices already have relationships with other ConAgra units. The Chicago office is picking up advertising for Healthy Choice microwaveable popcorn.
The latter brand has taken a back seat in ConAgra’s imposing arsenal of microwaveable popcorns, which include the Orville Redenbacher and Act II labels.
ConAgra has a whopping 52 percent share of the $635 million-a-year microwaveable popcorn category, but only $20 million of that is from Healthy Choice.
American Limo on a roll: American Limousine finally wrapped up an acquisition of Hinsdale Limousine– both companies had been discussing a combination for two years–and George Jacobs says he has two other deals in the works. Jacobs, boss of privately held American Limousine, headquartered in Burr Ridge, says the limo services being courted are in the northwest and southwest suburbs. The addition of Hinsdale Limousine, which will retain its name as a unit of the new parent, should push overall American Limousine sales to $25 million in 1998, says Jacobs. Anna Kolakowski, owner of Hinsdale Limousine, will continue to head up the Hinsdale operation. American Limousine, including limo services under other names, now has 280 vehicles.
Moore heads for Ammirati: Jon Moore, a senior VP and an executive creative director at Leo Burnett, on Jan. 19 joins Ammirati Puris Lintas Chicago as co-creative director. He’ll share creative responsibility for Ammirati’s recently opened office with Tim Kane, a former Chicagoan, who is returning here in that same post effective Monday. Moore has been with Burnett for 10 years. Kane has been a senior VP and a managing director-creative with Ammirati New York. Ammirati has been strengthening its Chicago creative staff that initially will be working on client Ameritech. Other personnel: Jayne Whalen to editor of Chicago Bride magazine, reporting to Steven N. Polydoris, publisher of the parent Real Estate News Corp. . . . Phillip Kane to director of marketing, Bell & Howell’s imaging solutions and components business. Elizabeth A. Kretchmer to program manager at Gavel International, Bannockburn.
– D’Arcy Masius Benton & Bowles-New York has the ad responsibility on Procter & Gamble’s new ThermaCare HeatWraps being tested in Eau Claire, Wis., and Midland, Texas. D’Arcy’s other P&G assignments include Crest, Scope, Pampers and Charmin.
Strictly Personal: Birthday greetings to Caryn Harris, 48; Rock Pausig, 37; Biff Ruttenberg, 54 (Atlas Partners); Susan F. Wagner, 54 (Women’s Western Golf Association); Jocelyn B. Hamlar, 44 (LaSalle Bank); Patrick M. Connelly, 29; Donald N. Schaefer Jr., 48; Dr. Zibute G. Zaparackas, 51, and Bob Welke, 51 (Tatham).
