GERBER INTRODUCES NEW ITEMS, PLASTIC JARS 2000-11-13

BARBARA MURRAY

SUMMIT, N.J. -- Gerber Products wants to lead the baby aisle and keep parents shopping there longer, so the company, a division of Novartis Consumer Health here, has introduced several new food and nonfood items. The company has also made a dramatic change to its 4-ounce juice, using plastic instead of the glass Gerber has been using for 40 years.

On Feb. 5, 2001, Gerber will introduce eight new flavors in its Second Foods line, and more. Its organic, premium Tender Harvest line, which is currently a Second Foods line, will add First Foods and Third Foods to make it a complete line for every feeding stage, according to Julie Cary, director of marketing.

Steve Colton, director of Gerber baby food, told SN a regional rollout of the new juice was done recently in all food retailers in Minneapolis, which started as a test market and has now expanded. "We've had terrific success with it," added Mitch Pisik, vice president of business operations. "The numbers were double-digit growth. We were surprised at how strong it was, so we expanded the test and the numbers continued to be strong."

"Moms have been asking us for plastic packaging; they have this perception of the glass clinking, and fear of breakage," Colton told SN, even though he and Pisik said breakage is rare.

In Minneapolis, Gerber has seen a 15% growth in the 4-ounce juice, Colton said. All SuperValu, Fleming and Nash Finch affiliate stores carry the juice in plastic. "It is a huge move for us; juice has been in glass for 40 years. It cost us a lot of capital, but it's what consumers want," he added.

It will be out on a national basis Feb. 5, in all 16 flavors.

Also new in juice is what Colton described as "a little sippy top," purchased separately, that screws onto the container, to help a child drink. Gerber nipples will also fit on the plastic bottle, Colton said, as they currently do on the glass bottles. Graphics on the juice label will be new, showing fruit to provide improved taste appeal, and so consumers can quickly identify it on the shelf.

Base baby food, single, strained fruit, will also come out in plastic in the four top-selling items: banana, applesauce, pear and peaches, in four-packs, with re-sealable tops. Pisik said the company eventually will convert almost the entire line to plastic because it is viewed as a substantial benefit to the consumer, and to the retailer as well.

"We have a policy right now, when we sell a case of baby food, if one jar breaks, we take back the entire case. With plastic, we expect even less breakage, and less waste and unsaleables. So the primary reason is for the consumer, but it also helps us and helps the retailer. The product is lighter, it costs less to ship, and is easier from a rotation and shelf-stocking standpoint. It's not a huge issue, but it still counts," said Pisik.

Another key element the company is working on is Second Food items, which are stages based on the developmental needs of the child. Colton said that line has the greatest variety, to give the child exposure to various tastes.

Once the products all launch, Gerber will support them with in-store signage, FSI's, television advertising and direct mail. "We send out millions and millions of direct mail pieces. We are the biggest mailer in the state of Michigan," Colton said, where Gerber's research and development and its plant are located, in Fremont.

According to Cary, the organic Tender Harvest line is up 10% in dollar sales, year-to-date, "and we want to continue, to give a complete premium line." The First Foods will have six flavors: apples, bananas and peaches, and three vegetables: sweet potatoes, carrots and peas, all in the current 2.5-ounce size.

In Third Foods, Gerber will offer seven dinner items, such as Country Vegetable and Brown Rice; Savory Carrots, Potato and Beef; Herb Chicken with Pasta; and Vegetable Medley with Pasta, all 5.5-ounces. Two new fruits will also join them: Apple Pear Raspberry and Banana Apple Strawberry, and there will be a new wet jarred cereal item, Plum Granola. Direct mail, Catalina couponing, radio advertising and print advertising will support this launch, Cary said.

"From a retailer's standpoint, it will grow the category, give a higher dollar ring and good margin," Cary said. "Compared to any other first or third food item, the penny profit for the retailer will be higher." All the Third Foods will have a wide-mouth jar with a premium shrink label on the jar, heat sealed around the jar instead of glued on. These products will continue to be in glass.

In addition, Gerber Graduates is up 14% in dollars year-to-date, Cary said, because of a re-staging of the line, which added development cues on the label. For example, these foods are for children who are learning to pick up food or use a spoon, Cary said.

Healthy snacking has been very successful, she said, so Gerber is introducing two "Crisp" products: Apple Graham Crisp and Sweet Potato Crisp. The best analogy, she said, is to a healthy potato chip, although these foods are not fried.

Gerber is also introducing two stockkeeping units in its microwaveable meals, which is the largest segment in the toddler category, Cary said. Currently they all require the use of a spoon, but the new ones, called Pasta Pickups, will be mini-raviolis with sauce on the inside, packed in broth that can be drained off or drunk.

Price points for the Crisps are $1.99 suggested retail; Pasta Pickups will have the same price as the current tub meals, which average about $1.09 but vary depending upon the retail market. Again, support will come from TV, print, direct mail and Catalina couponing.

And, a completely new segment, called Finger Food, will form a transition between baby food and toddler stage, when children are learning to feed themselves. "They do pincer-grasp, and they have no teeth or few teeth, so they need something that dissolves easily," Cary said, "so this is aimed at babies 8 to 12 months." There are two wagon-wheel products, in apple and in carrot, which she described as more like a cereal product, the size of a quarter.

MONTCLAIR, N.J. -- The Nabisco Biscuit Co. sponsored the Kmart Chips Ahoy! All Star Game during which four winning children were invited to participate in a baseball game at the Yogi Berra Stadium, N.J., and meet Yankee Derek Jeter, pictured at left with some of the winners. Winners were selected randomly from a pool of entry applications submitted through a special Chips Ahoy!/Derek Jeter on-pack entry form available only at Kmart stores, in-store entry forms and through Kmart's Web site. The winners included Douglas Brewer, 8, from Hillsboro, Ohio; Matthew Ahnemann, 10, from St. James, N.Y.; Thomas Kranendonk, 8, of Land O' Lakes, Fla.; and Kyle Elliott, 9, from Saginaw, Mich.