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Brannigan Foods

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Brannigan Foods
Bert Clark is faced with a very serious problem and has enlisted the help of several counterparts of Brannigan Foods’s Soup Division. The soup industry has been declining for several years, and directly affecting the Brannigan division for the last three. Bert has to determine, of the four plans he received, which is the best in order to move growth back to 3-4%.

The Environment: Major consumer trends affecting the industry are the concern for health and obesity. The inclining age of the most brand-loyal segment of soup consumers, the baby boomers, are seeking diets with low sodium. It’s crucial to maintain this large market segment, luckily the Heart Healthy line is positioned well with the baby boomers. Conversely, younger consumers (millennials) are needed to ensure vitality in the long run. One of the most critical aspiring trends among consumers are that of professionals and working mothers seeking fast, simple meals. The acquisition of Annabelle’s Foods helps this segment with growing sales of 12% per year. Another trend is the tastes of consumers. New flavors such as Mexican and Asian soups are gaining way in the division. An opportunity to procure these flavors is to acquire a new product line; Roarin’ Cajun Foods would secure the Mexican style soup and Red Dragon would lock down Asian tastes. If not acquired, these brands pose a threat to us in addition to Brothers Gourmet and others in the soup market.

The Industry: Brannigan is in the soup industry and has major competitors in Panera Bread and Harry’s Fresh Foods. These two competitors have soups that are refrigerated and/or frozen and are associated with being healthy. Essentially meaning they are a fast, quick, unprocessed, healthy meal. Refrigerated and frozen soups are becoming very popular, with growth of 15.5% and 70.4% respectively. Even though they are growing, they only account for 3.2% of the soup industry’s total sales. General Mills proves to be a major contender as well, owning 24% of

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