Month / May 2017

by Frank Maduri

Follow Up: Honeybee Population Decreases In U.S.

In a follow up to a previous article, the news on Friday is not good regarding the honeybee population. In a report by USA Today about one third of the honeybee population in the United States died in the past year. This decline in the population levels can have far-reaching consequences for our domestic food supply.

The honeybee is responsible for an estimated one out of every three bites of food that the average American consumes each day. The combination of pesticides, environmental changes, and parasites have triggered a dramatic decrease in the population of this crucially important insect.

This survey does report that the winter seasonal losses were the lowest for American bees in a decade. The winter is a characteristically a period where honeybees will die in larger numbers due to the climate conditions. The experts analyzing this report stopped short of saying that the winter loss number was good news because the overall population numbers have declined so precipitously in recent years.

Some crops are almost completely dependent on the honeybee, and those shortages in supply levels are going to result in higher demand. This higher demand with smaller supply levels will result in higher prices that will passed along to the consumer. This includes items such as almonds, raspberries, and other fresh fruits or produce.

The rise in the growth of the organic and farm-to-table movements put a premium on beekeeping and balancing the protection of the bees from parasites against the utilization of harsh chemicals or pesticides. There are certain pesticides and herbicides that are widely used in agriculture that attack the central nervous system of bees causing them to die.

The greater emphasis should be placed on decreasing the chemicals and pesticides used in the production of certain crops. Some states have already initiated areas for honeybee preservation as well, so those areas have many restrictions as far as the use of pesticides and other airborne agents.

The honeybee is vitally important to our food supply and while the winter losses in 2016 were better than recent annual findings, the population is still depleted by one third. It is clear that steps need to be taken to preserve the honeybee colonies in the United States. It is unclear at this point what those steps will be moving forward.

by Frank Maduri

Red Nose Day: Team Up To End Child Poverty

The third annual Red Nose Day takes place today, May 25th, focusing on raising both money and awareness to the devastating effects of child poverty. The event is sponsored by several companies, notably the ubiquitous American drug store chain, Walgreens.

The fundraising telethon and special program about Red Nose Day airs again this year on NBC. However, the network will take a different approach this year with a special celebrity edition of American Ninja Warrior (8 PM, EST) then a special Running Wild With Bear Grylls where Julia Roberts will join Grylls on a trek across Kenya to deliver vaccines to sick children (9 PM, EST) , and then will air the Red Nose Day Special hosted by Chris Hardwick which features appearances by several A-list comedians and musicians (10 PM, EST).

The first two editions of this event NBC have run a special 3-hour telethon type program with performances, comedians, and clips from the field in Developing World nations as well as economically depressed areas in the United States. This will be the first year that regular series programs have been dedicated as special features to raise money for this crucially important cause.

Red Nose Day began originally in the United Kingdom, and has spread to include events throughout the world which have raised $1 billion so far for children’s poverty. The funds are funneled to trusted partner organizations, some of the most recognizable and trusted non-profit charities in the world.

The money raised in the American version of this fundraising event has benefitted children in every state in our country as well as children in about 25 other countries throughout the globe. The American event has raised $60 million since it began in 2015.
Walgreens is a prominent sponsor of the event along with their subsidiary Duane Reade pharmacies, which have a huge presence in major East Coast cities especially New York City. Those retail pharmacy locations in both chains sell red noses for $1 and offer at point of sale the ability for the customer to donate to the effort.

The difference can be made without a huge donation, any amount will help children who are living in poverty both in America and throughout the world. I have covered Red Nose Day for the past three years, it is an amazing event that makes a huge impact. I have worked in the non-profit sector and I have worked as an independent writer with non-profit organizations, and this type of event will instantly help them to have the funding capability to help so many children in need.

A donation as small as $10 can help fund after school programs. A donation of $30 could help bring water to a village in the Developing World. It is in the small steps that a journey is completed.

Some of you may recall the excursion that actor Jack Black took for Red Nose Day to Africa, where the young boy there asks him to bring him back to America with him. That was a poignant scene, the boy was in poor health and malnourished. Then last year, the viewers got the update that the boy had been adopted and sponsored by an American family and was in school and well cared for, it is an incredible testimonial to the power of this event to change lives.

In a world marked lately by some terrible and terrifying events, this is one way where we can join together and change the narrative. This is one way where we can make a difference and do something positive to lift the spirits of the most vulnerable in our society, children living in poverty. I hope you will consider a donation to Red Nose Day.

Please visit https://rednoseday.org/donate-splash to learn more about this remarkable event that helps so many children. Please tune in to NBC tonight for all the special programs they have starting at 8 PM (Eastern). Please consider helping this cause to change and save the lives of those children in need. Thank you for your support and attention. May God bless you.

by Frank Maduri

Recapping The Upfronts: TV Networks – Fall Lineups

The major television networks met with all of the major advertising companies this week in an annual event in the industry known as the “upfronts”. The tradition holds that NBC has the first meeting, followed usually by ABC, CBS had their turn on Wednesday, the end of the week featured FOX and The CW getting their respective meetings.

The upfront meeting is where each network will officially unveil their fall lineups and try to generate interest and energy around their programming. These presentations have always been intriguing to me because each network has a strategy for capturing viewers and each one is different in that approach.

Some networks try to reinvent themselves more often than others do, and right now the changes to the television landscape have pushed the major networks and their subsidiaries into recalibrating their offerings. The scramble for ad dollars is characteristically a highly competitive situation, and this week was no different.

First, NBC entered the upfront meetings with the top-rated show on TV (“This Is Us”) and the top ranking for the coveted advertising demographic of 18-25 year old viewers. The network had to just make some small lineup tweaks and they should be set up to have another strong year. They moved their top show to Thursday nights, which is what NBC does, when a program goes well, they change the time slot instead of leaving it alone. It remains to be seen whether this will have a positive or negative ratings effect.

The “Peacock” is bringing back a former hit show from the ‘90s, “Will & Grace” for a limited run, and it will be very interesting to see how they tie this show to a new fan base as well as appeal to the fans who remember the show from the first run. The network is trying to inject excitement back into Thursday nights, which used to be called Must See TV by their marketing team. However, the reality is that “appointment TV” where people looked forward to a program with anticipation and were there every week to watch it, is long gone. I am interested to see how the viewers react to the new Thursday lineup, and whether NBC put their eggs in the right basket.

The last bastion for viewing trends similar to the old glory days of television remains live events such as award shows as well as live sports programming. NBC will have the return of NFL football games on Thursday nights (split package with CBS) and on Sunday nights (the entire NFL season). The Sunday night primetime game is consistently a ratings winner for NBC as well as a robust advertising revenue driver for the network.

The NFL ratings dropped for the first time in several years in 2016, but it still garners tremendous viewership and appeals to key advertising demographics, so the live game broadcasts will still command large committed ad spending.

NBC has very few new show concepts that I read in the reviews from media/TV critics that are worth mentioning. They will focus their marketing and promotional efforts on a special series they produced on the Menendez brothers case. That limited run special will air in the 10 PM slot (Eastern) for set number of weeks.

The executives at ABC will attempt to address sagging ratings overall from the 2016 television programming year by cancelling underperforming shows. They will look to reinvigorate their lineup with new series concepts of all kinds, from comedies to procedural dramas. The trick up the sleeve for this network was a surprise announcement at their upfront that they had given the approval for a straight to series new concept from Shonda Rhymes (Grey’s Anatomy founder) which focuses on a group of Seattle firefighters.

Then, ABC announced that they will also ride the trend of bringing back old shows for limited run type reboots. The network will bring in Roseanne which at one point in the original run was the top-rated show in America. I am fascinated to see how this concept will connect with new fans and younger age groups.

The network also will bring back another former ratings institution, American Idol which has been given mixed reactions from both media analysts and fans of the program alike. It remains to be seen whether the singing contest style can recapture its former glory. The details on the show remain limited with the only piece of news considered significant is that pop singing star, Katy Perry, has signed on to be a judge on the rebooted version of the once stalwart hit program.

It remains to be seen whether Ryan Seacrest will return to host Idol which films primarily in Los Angeles. Seacrest has recently joined the ABC morning talk hit show Live as Kelly Ripa’s new co-host, and that show films in New York. The logistics could be worked out, but it merits watching which path those negotiations could take.

CBS opened their upfront meeting with a performance from Stephen Colbert, who now has the top rated late night slot in the industry. The decision making by CBS and the other networks as well, as far as cancelled and returning shows are concerned was all studio/content rights driven.

The revenues in television have changed with production costs still rising and other revenue falling due to changes in the way the viewer engages with content (i.e. streaming, video on demand). In that regard, CBS proposed changes to the advertising packages which were originally structured around a 3-day window (Live+3) to a (Live +7) cycle or a 7-day window for the ads to run in association with a specific advertising “buy”.

I have covered in the past the decisions on cancelled and renewed programs, and it mainly comes down to rights fees, licensing, and ownership of the content. In short, each respective network tends to renew content that is made in their own studio compared to an outside studio. This is due to the fact that the network owns the backend rights to that content, which has become more valuable than the frontend rights to the program at this point.

CBS used this rationale to explain the cancellation of 2 Broke Girls (produced by Warner Brothers) and the renewal of Elementary (produced by CBS Studios) even though the former had slightly better ratings than Johnny Lee Miller’s turn at the iconic role of Sherlock Holmes. This same rationale was used to explain the cancellation of Person of Interest (Warner Brothers studios) and keeping Elementary because CBS could make more money on the backend rights.

ABC took some heat for cancelling Last Man Standing but it was produced by an outside studio, and they would rather renew and promote a comedy series produced in their own studio because of the enhanced revenue streams it would provide to offset the production costs and licensing fees.

The major networks are also pursuing a trend where they will change the terms of a licensing agreement on a show from an outside studio production company. The networks have been seeking larger pieces of the revenue pie before agreeing to renew a program. That trend will continue as the viewership habits continue to evolve away from live viewing and into watching the content after it originally airs.

CBS has very few new shows and will juggle a lineup of hit shows as well as NFL football and the top-rated shows in several categories will return to a largely unchanged lineup from last year. They will also introduce a rebooted version of S.W.A.T. (originally aired in the 1970s) and the highly anticipated spinoff from The Big Bang Theory entitled: Young Sheldon.

Fox ordered just six new shows for the Fall, and have moved around most of the returning shows in their lineup, keeping just Sunday night’s lineup intact from last year. They will also feature rebooted series from the past with The X Files returning for a limited series run, Prison Break returning for an undetermined amount of new shows, and a revival of Showtime at The Apollo hosted by Steve Harvey.

The CW announced both new concepts for series programming and a new focus on being a multi-channel partner rather than just a television network. They are taking a more forward thinking approach with partnerships with Apple TV, Roku, Amazon, and other streaming video content providers. This is to capitalize on the revenue for the back-end rights to the programming. This traditionally fifth place network also announced a rebooted series concept of their own, Dynasty, which has earned some industry buzz already.

The upfronts represented a continuation of declining advertising revenue in the form of ad buys as the cost/benefit analysis of that form of advertising is being weighed against the changing trends in the way that viewers obtain content. It is always interesting to see which strategies the networks employ to promote their programming, and which of those programs will make the cut when the first sweeps period is considered.

The ways of viewing television have changed and the ways that networks are approaching the production and promotion of their programming has followed suit. These trends will continue as we enter the 2017-18 television calendar, stay tuned.

by Frank Maduri

Fired Up: Pepsi To Launch Cinnamon Pepsi Fire Concept

PepsiCo, the parent company of Pepsi, announced on Thursday the newest line extension concept for the cola giant. The summer launch will feature a cinnamon flavored Pepsi product called “Pepsi Fire”. It will be available in both cans and bottles starting on May 22nd and running for an eight week period through mid-July.

The limited edition soft drink will be a part of a summer promotional campaign across the entire Pepsi lineup that will give away prizes called “Snap-Unlock-Win” which will integrate the promotional giveaways through the popular social media platform, SnapChat.

The summer cinnamon flavored “Pepsi Fire” will also be integrated into the 7-Eleven convenience store chain’s Slurpee lineup which the executives at Pepsi are touting as a drink experience that will be both hot and cold. The Slurpee and summer time are ubiquitous, and Pepsi is banking on the popularity of that frozen drink delivery system to create further buzz around the Fire product.

The product reviews I read have described the beverage as Pepsi meets Hot Tamales, those artificial cinnamon candies, and that the Slurpee was very spicy. I am sure it will appeal to some consumers, especially those who have an affinity for all things cinnamon.

In recent years, Pepsi has had varying levels of success with limited edition products. They have relaunched several product variations recently with real sugar added to the formula to offset the public perception regarding high fructose corn syrup and artificial sweeteners. The brand has also focused their efforts on a few different tweaks around the Cherry Vanilla Pepsi concept, most recently with a limited run around Valentine’s Day in 2016.
The summer line extensions have had success at times on a regional basis, the Pepsi Summer Mix concept with all the mixed fruit flavors included with the mainstream cola flavor was very successful in the northeast United States back in 2007. I remember purchasing that beverage when I travelled for my job at that time throughout the region.

PepsiCo also agreed to join an initiative with the Partnership for a Healthy America, where across all their brand lines they have agreed to limit the amount of calories, sodium, and sugars contained within many different products. PepsiCo has 22 brands that produce more than $1 billion or more in sales per year, so this represents a major contribution toward healthier snack options for the American consumer.

The company will also be reviewing their formulations to determine methods to incorporate more protein into their brand portfolio. They will also look at moving toward more non-GMO containing ingredients for their huge stable of product offerings, according to trade industry reports. This is not surprising news given the trend lines of both of those areas within the current consumer environment.

The inclusion of protein is a hot button trend within the current consumer climate with people leading more active as well as very busy “eat and run” lifestyles. The non-GMO trend has been steadily more relevant with the average American consumer and is a topic I have written about extensively in the past. The consumer interest in GMO containing ingredients is significant, and the major players in the industry are taking notice.

The seasonal launch concept is nothing new in the beverage industry, and it is a way that brands can rejuvenate interest as well as maximize sales. The limited nature of the product concept usually creates a sense of urgency for the consumer. The summer season is one of obvious increased sales of carbonated soft drinks. This new concept should be interesting for sure. The inclusion of social media into the promotional contest portion is also an interesting aspect of this launch.

The utilization of social media could well represent the future of the promotional campaigns that brands will roll out to engage consumers on a more personalized level. That could either represent a great innovation or be a complete disaster which will remain to be seen. The beverage industry is poised now to enter the summer season which should give us all hope that the long sunny days are waiting just around the corner.