New Money

Bringing Snack Brands Back From the Dead

By Katy Marquardt

Posted: August 25, 2008

Not only are snack makers scrimping on ingredients these days, they're also reviving left-for-dead brands in their product lines. Why? When the going gets tough, it's apparently more cost-efficient to resurrect an old brand than to develop a new product, reports the New York Times.

Last week, Kellogg reintroduced Hydrox cookies, Oreo-like knockoffs that were discontinued in 2003. (During the second quarter, the maker of Pop-Tarts and Keebler cookies managed to grow its North American snack sales by 6 percent.)

Eagle Snacks, the brand sold off by Anheuser-Busch and subsequently acquired by River West Brands, are also back. Another strategy companies use in a slumping economy includes launching new products associated with well-known brands. (The Times cites Alka-Seltzer Wake-Up Call, a hangover-relief tablet, as an example.)

So, how did these products become "ghost brands" in the first place? A number of factors could be responsible, says the Times: declining sales, stronger competitors, advertising budget cuts, or a company's desire to focus on newer brands.

That's right!

Hydrox cookies were the originals. They are being re-released on the 100th anniversary of their initial release.

Charles S. Williams of NC @ Aug 25, 2008 22:43:41 PM

Hydrox the original, not Oreo

Please check your facts. Oreos are Hydrox-like knockoffs, not the other was around as you stated. Hydrox were first introduced in 1908 and Oreos followed in 1912.

Walter of MA @ Aug 25, 2008 22:19:57 PM

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New Money

Katy Marquardt, a senior editor at U.S.News & World Report, takes a contemporary look at happenings in the financial world and aims to help young investors get going with their portfolios--or just sound cool at cocktail parties. Have a question? E-mail Katy at newmoney@usnews.com

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