A Hannah Montana Banana?
Welcome to the magic kingdom of Disney-branded food.
When the cartoon Popeye the Sailor Man emerged in the United States in the 1920s, sales of his signature food, spinach, rose by one-third. Today, Disney (DIS) is hoping that Zac Efron can do the same for avocados. And Mickey Mouse for eggs. And Tinker Bell for corn on the cob.
Disney's practice of licensing its characters for placement on children's food products is not new, but its strategy is. Whereas cereal boxes and fast food bags used to be prime real estate for company-to-kid marketing, alarming rates of childhood obesity caused Disney to think twice about aligning its name with sugary or fatty foods. So over the past few years, Disney has gradually distanced itself from junk food. It ended its McDonald's Happy Meal contract in 2006 and has been expanding its association with healthier foods since then. The result: an abundance of Disney-branded healthy stuff, including fruits, vegetables, and dairy products.
This explains the advent of Disney-branded eggs, which landed on store shelves in Florida and New York last month. The outside packaging of the egg carton brandishes Mickey's smiling mug and the message: "Good source of Protein." Each individual eggshell has been stamped with the face of a different Disney character—from Tigger to Buzz Lightyear. You can even purchase a tool to create Mickey-shaped omelets. (See video for a looks-too-good-to-be-true demonstration.) Skeptics may doubt that any parent would pay more for branded eggs or that kids would eat them just because of a cartoon endorsement. But, however silly it may seem, if the past is any indicator, these eggs will be golden for Disney.
Disney health-food promotions began in 2006 with an experimental idea. Licensed characters would appear on basic fruits like apples on the only spot available: the thumbnail-sized stickers. It worked out, magically, in fact. Growers were happy to partner with the well-known brand if it meant selling more produce, and Disney rebranded the act of marketing its movies to hungry children as "corporate social responsibility." Quite clever.
The backlash Disney had felt from tempting kids with french fries was replaced by a pat on the back for advertising on oranges. Now, there are over 250 offerings in the Disney Garden line, at least one of which is available in 18 of the top 20 mass and grocery retailers in the country. Sales of the Disney Garden product line grew 70 percent in 2008 over the previous year, thanks to expanding offerings.
One such product is the High School Musical avocado. When Disney puts a popular character, like tween-sensation Zac Efron on a product, it "can't help but benefit from the nag factor," says Lance Gatewood, the vice president, of Disney Consumer Products' Food, Health & Beauty, North American division. And, when kids are begging their parents for something nutritious, like an avocado, he explains, it's hard to say no. Parents are happy, growers are happy, grocers are happy, kids are happy and healthy, and, oh yeah, Disney is pleased, too. It turns out that seasonal fruits can be the perfect promotional platform for a film. Last summer's avocado season coincided conveniently with the fall release of High School Musical 3. Besides the promotional boost, Disney earns back royalties on each unit sold. And, because of the Disney appeal, more units tend to sell. Sometimes it's a lot more: Bagged-apple sales went up 47 percent during a High School Musical promotion at Winn Dixie (WINN).
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