Thursday, March 6, 2014

Kraft, Taco Bell Amp Up Grocery Store Partnership with New Products



If you can't get to one of Taco Bell's 5,500 locations during any of the four "day parts" the chain has recognized, now including breakfast, then there's another way for you to solve your craving for all things Bell: stop at your local supermarket.

Kraft has been partnering with Taco Bell since 1996 to offer Taco Bell-branded products in the grocery aisles, now totaling 28 different items ranging from sauces to "dessert kits" that require only the addition of ice cream, according to Advertising Age.

Now Kraft and the chain are turning up the heat on their collaboration this week by launching four new products: two dinner kits and two seasonings. The Taco Bell Ultimate Taco Night Kit, for example, comes in two varieties—Cheesy Taco Grande and Steak & Cheese Soft Taco Kit, both featuring Kraft's Velveeta cheese (which isn't offered in Taco Bell products in restaurants).

"Taco Bell sees the power in bringing the brand outside of the [QSR] category and into retail," said Adam Grablick, senior Taco Bell brand manager at Kraft, according to the publication. He said that Kraft gets the opportunity to grow sales because "the mainstream Mexican category is a fast-growing segment."

Other recent launches have included Taco Bell signature sauces including Salsa Verde, Fire Sauce, Mild Sauce and Hot Sauce. Kraft also is launching the first major digital campaign for the partnership, focusing on the sauces with the tagline "Bottle of Awesome." On social media, the brand is being labeled "Taco Bell Grocery."

Kraft likes this kind of thing. It also has a partnership to distribute McDonald's McCafe coffee line under a test in select markets in the US after the brands did something similar in Canada. And Taco Bell, of course, has brought Doritos successfully into its restaurants via its three (so far) wildly successful variations of Doritos Locos Tacos.

Of course, Kraft would like to repeat with McDonald's the kind of relationship that presumably has worked well with Taco Bell. Kraft's other big collaboration with a QSR brand was its distribution deal with Starbucks that went sour when Starbucks began to try to get out of the deal in 2010. In November, Starbucks was ordered to pay Kraft $2.7 billion for "improper termination" of the deal.

Starbucks, we're sure, will be just fine.

Source: brandchannel.com

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