Masterfoods axes small brands and increases ad spending

Reeling from sales declines, Masterfoods USA is yanking underperforming “hobby” brands,slashing its estimated $300 m in promotion spending to retailers, and putting the savings into advertising. According to TNS Media Intelligence figures,Masterfoods spent $408 m last year compared to $332 m in 2004.Now that sales fell 4.7% to $1 b in food, drug and mass outlets excluding Wal-Mart for 52 weeks, according to Information Resources Inc., Masterfoods can no longer afford to support declining brands, US press reports said. Masterfoods is pulling the plug on Aquadrops mints,the range Cookies& and bite-size Pop’ables candy. Among the launches are a dark chocolate version of M&M’s and a variety of new Dove offerings.
World Cup name change in UK
Hoping to capitalise on the euphoria surrounding the forthcoming 2006 FIFA World Cup, for the first time ever the company will launch a new face of Mars through the introduction of limited edition “Believe”bars in the UK. “It’s a temporary name change designed to harness the positive atmosphere and energy of the World Cup as the nation rallies behind the England football team,”a spokesperson said.The name change will include single Mars bars,multipack Mars bars,Mars ice cream and Mars drinks products.