The Checkout: Brands Fuel Voters at the Polls; Kellogg’s, Kraft Heinz Report Q3 Earnings

Welcome to The Checkout: an express lane for weekly news you need to know, always 10 items or less.

Brands Participate in Initiatives to Fuel Voters

Food and beverage brands are fueling voters stuck in long lines at polling places through participation in initiatives such as Pizza to the Polls and Feed the Polls, which each offer voters free meals and snacks as they wait to cast their ballots.

Pizza to the Polls, a nonprofit initiative launched in 2016, hands out pizza, snacks and beverages to voters through a partnership with Uber Eats. Brands including Pipsnacks, KIND and Just Water have all also donated products to the cause. Over 30,000 bags of Pipsnacks Cheese Balls will be distributed by 185 Uber Eats food trucks across 25 cities from Philadelphia to Miami, starting this week and through Election Day.

“If this crazy year left you feeling like there’s so little you can do to control the future, you’re not alone,” the heirloom snack brand said in a statement on its website. “But the one really big thing you can do is vote for the people who will fight for the things you value and help build the future you hope to see. We hope to bring a little joy to hungry people waiting to cast their ballots, poll workers, and anyone else who might need a snack.”

While Pizza to the Polls has already started feeding crowds of early voters, Feed the Polls is focused on donating meals to voters in food-insecure communities on Election Day. The initiative, launched last month, is collaborating with restaurant discovery platforms Zagat and The Infatuation, nonprofit food relief organization The Migrant Kitchen and brands including plant-based meat maker Lightlife and beverage brands Runa and ever & ever. Since its start, the organization has raised nearly $300,000 and aims to provide over 30,000 free meals on Election Day across Philadelphia, Los Angeles, New York City, Phoenix, Miami and Denver.

“The pandemic has certainly created unique circumstances around this election, but food insecurity and hours-long lines to vote are problems in the United States that predate COVID-19,” said Chris Stang, co-founder and CEO of The Infatuation, in a press release. “The outpouring of support we’ve seen from every corner of this country – whether in the form of donations, volunteers or partnership – serves as proof that united, we can accomplish a lot.”

Kellogg’s and Kraft Heinz Report Q3 Earnings

Kellogg’s and Kraft Heinz both reported positive net sales growth in the third quarter, though both companies are still feeling the effects of changing consumer behavior amid the pandemic.

Kraft Heinz reported 6.3% organic net sales growth on its Q3 earnings call yesterday, with 7.4% net sales growth in the U.S. The company attributed this growth to consumers rediscovering cooking at home, with increased household penetration for many of its core brands including Kraft Mac and Cheese, Philadelphia and Planters.

Despite this growth, U.S. zone president Carlos Abrams-Rivera stated that the company would reduce its SKUs by 20% going into 2021 in order to “make sure that we respond with the type of service [consumers] need in the core SKUs that they’re also looking for.” However, Abrams-Rivera noted this reduction would not take away from the company’s innovation pipeline, which he said will be focused on “fewer, bigger, better innovations” going forward.

In its third quarter earnings call yesterday, Kellogg’s reported its organic net sales grew 4.5% in the third quarter, with growth across cereal, snacks and frozen food. The company said that despite deceleration of demand for packaged foods, it gained share in five of its six primary categories, while also continuing to grow on e-commerce.

The company will increase its investment in brand building in the fourth quarter, reinvesting funds that were delayed from the first half of the year due to the pandemic. This includes supporting the launch of new brands such as plant-based meat brand MorningStar Farms’ sub-brand Incogmeato, which launched this quarter. Kellogg’s reported net sales of its frozen food products rose 7.4% this quarter, with MorningStar Farms growing retail sales by nearly 18%. Incogmeato, which launched with burgers, sausage, bratwurst and ground beef in the refrigerated aisle and Disney-shaped chicken nuggets in the frozen aisle, will have “gradual distribution build” as it enters 2021, CEO Steven Cahillane said.

While salty snacks and crackers experienced sustained growth, the reduction in on-the-go use occasions amid the pandemic impacted sales of brands such as RXBar and Kashi. Net sales for cereal grew this quarter, driven by advertising support for brands such as Special K and Mini-Wheats, though reflected deceleration of cereal sales in retail channels.

Overall, Chiallanee said, the company is “taking actions now to emerge from this crisis a stronger company and with increased confidence in our trajectory for consistent balanced growth.”

KIND Calls Out Clif to Promote Energy Bar Launch

To promote the launch of its new energy bar line this week, KIND reignited its rivalry with fellow snack brand Clif in a new ad campaign. The company released a TV spot comparing its new offering to Clif bars, highlighting that while the main ingredient in Clif bars is brown rice syrup, the new KIND products have 35% less sugar and count oats as its leading ingredient.

As part of the launch campaign, the company released an infographic comparing its new energy bar product to those of other leading brands, specifically calling out Pure Protein, ONE Bar, ThinkThin and Power Crunch for using protein blends as their main ingredient.

KIND is also seeking to educate consumers about the “proper time” to consume energy bars in response to a study conducted by the company that found that 75% of respondents eat energy bars before stationary activities such as relaxing at home or working at their desks. The problem with this behavior, KIND noted, is that energy bars are typically higher in calories, carbohydrates and sugar. To encourage consumers to only eat the product before physical activity and change this behavior, the company rolled out The KIND Energy Pledge, which promises to give $100 for a fitness-related expense to the first 1,000 individuals who sign a pledge committing to only eat energy bars before physical activity and submit a photo or receipt of an energy bar purchase from KIND or an energy bar competitor.

Chobani Increases Employees’ Starting Hourly Wage

With the aim of putting “people over profits,” Chobani announced this week its plan to raise its starting hourly wage to at least $15 an hour — over twice the federal minimum hourly wage of $7.25 — starting in the first quarter of 2021. The hourly rate for workers at its manufacturing plants in New York and Idaho will increase to $19 and hourly employees at its New York City-based Chobani Cafe will receive a starting hourly wage of $18. The company, whose workforce is comprised of 70% hourly workers, said it won’t reduce employee hours or benefits to balance the expense of the raised wages.

Chobani founder and CEO Hamdi Ulukaya said in a press release that the move is intended to “support those working tirelessly to make the food on the tables of families across America” during this “moment of uncertainty.”

“Businesses should serve the people and communities in which they operate,” he said. “Raising our base starting salary is the right thing to do and we hope other businesses, particularly food manufacturers, feel the same as we all work toward rebuilding our country.”

Stacy’s Releases Limited Edition Bags to Support Women-Owned Businesses

As part of its #ShareForHer initiative, pita chip maker Stacy’s has launched a new packaging innovation this week to increase visibility for women-owned businesses. The new “Female Founder Finder” bags, now available at retailers nationwide, feature a QR code that directs consumers to nearby female-founded businesses when scanned with a mobile phone.

Consumers can also access the full directory online at femalefounderfinder.com, which lists over 13,000 female-founded businesses. The directory includes the 30 brands participating in this year’s class of the grant and mentorship program Stacy’s Rise Project, which includes food brands such as Dress It Up Dressing, syrup maker Just Date and non-dairy ice cream brand Frönen Foods.

“The Stacy’s Rise Project is a testament to harnessing resources and collaborating with like-minded allies for the benefit of female founders,” Ciara Dilley, VP of marketing for Frito-Lay, said in a press release. “#ShareForHer is a reminder that we all have something to share that can help a female founder rise, whether it’s simply writing a positive review online or facilitating a business connection.”