The Pulse -- May 2004

For the first time in more than 80 years, the Kellogg Company embarks on the largest new product launch in Cheez-It history by adding a new twist to its popular cracker. Kellogg has twisted two flavors together and added a bold new crunch to create the recently introduced Cheeze-It Twisterz crackers. An eye-catching, cube-shaped box accompanies the launch of Cheez-It Twisterz new shape and flavors: Cheddar & More Cheddar and Hot Wings & Cheesy Blue. Kellogg is also unveiling advertising that speaks to the identity of the brand and bold personality of the new product. Other support for the product launch includes point-of-sale materials such as at-shelf and grocery cart advertisements, as well as branded Cheez-It Twisterz crackers displays.

Study Says Manufacturers Save with RFID
According to the Yankee Group, North American manufacturers can save $200 to $400 billion using data synchronization and RFID to improve supply chain management. However, while UCCnet has more than 2,000 subscribers, suppliers continue to struggle with data synchronization issues and have a long road ahead of them before they start reaping the benefits of adoption. "Top suppliers to Wal-Mart, the Department of Defense and customers will need to spend $3 million to $35 million on EPC RFID in 2004," says Michael Dominy, Yankee Group Business Applications & Commerce senior analyst. "Offsetting the cost of RFID requires smart technology decisions and implementation strategies that enable improved decision-making and inventory flow across the extended supply chain." Business Applications & Commerce senior analyst, Kosin Hung predicts that companies will spend more than $4 billion during the next four years as they incorporate data synchronization and RFID into the supply chain.

Tyson's New Foundation
With the recent adoption of SAP as the company's technology backbone, Tyson Foods is aiming to optimize efficiency across 85 percent of its operations. Based on SAP NetWeaver, mySAP Business Suite also provides Tyson Foods with a foundation to realize the benefits of its recent acquisition of IBP Inc. "By integrating two organizations on a single, integrated technology platform, we can more rapidly achieve the benefits of the combined organization and provide Tyson with a strategic and competitive advantage going forward," says Jeri Dunn, CIO Tyson Foods. Tyson and SAP will also work together to enhance a catch weight management application for processes unique to the meat industry such as tracking variations and assessing value between product orders and shipments. Tyson will also utilize SAP Trade Promotion Management to more effectively plan promotions with retailers.

P&G Backs Brand Web Sites
As the manufacturer of some of the most recognized consumer product brands, the Procter & Gamble Company (P&G) considers its product Web sites as an influential part of its global marketing strategy to reach consumers around the world. "Using the Web enables P&G to increase brand awareness, improve consumer service and reach consumers in innovative ways," says Willie Alvarado, director of IT at Procter & Gamble. To support its marketing strategy, P&G renewed a multi-year hosting services agreement with SAVVIS Communications Corporation to provide the managed infrastructure behind almost 200 of its corporate and consumer Web sites, including Pampers, Tide, Pantene and Bounty. The SAVVIS solution comprises datacenter facilities, a content delivery network, integrated security services, backup and restore management and application support.

Pinnacle Merger Names Sales Agent
Pinnacle Foods and Aurora Foods officially merged on March 22, 2004, following Aurora's Chapter 11 reorganization. Combined, the newly formed Pinnacle Foods Group will bring together key consumer brands such as Duncan Hines Baking Mixes, Mrs. Butterworth's and Log Cabin Syrups, Vlasic Pickles, Lender's Bagels and Aunt Jemima Frozen Breakfast. Acosta Sales and Marketing Company, which represented each company prior to the merger, will represent Pinnacle Foods Group in the grocery class of trade and at certain mass, club, convenience and drug retailers throughout the United States. Pinnacle will focus on driving profitable volume for the retailer community in both the frozen and grocery categories. The company intends to invest heavily in consumer advertising and product improvements that will drive category sales and profits.