European Stars And Stripes (Newspaper) - August 6, 1986, Darmstadt, Hesse                                Magazine new York Terr i photo Rupert Walters president of Popsicle industries taste teats the firm s new one stick Popsicle. New design new flavor the Popsicle s rejuvenation by Richard w. Stevenson new York times n an age of froze rails pudding pops and $2 Dove bars is Here still a place for the simple Popsicle an icy summertime Delight since depression Days the Popsicle now has to adapt to a world of More sophisticated and expensive tastes. On the Way out is the Frozen treat s familiar twin stick design introduced in the Early 1930s, presumably to allow two Cash shy kids to buy a single pop and split it. With sharing apparently less of a priority now people find the twin stick inconvenient said Rupert Walters president of Popsicle industries. It Falls apart. It s  the replacement is a smaller single stick version. And the company custodian of a product that is a part of the childhood memories of millions of americans did not Stop there. It has also added new flavors and Snaz Zier packaging to the pop and its other hot weather snacks fudge Isles and creams cles As Well As revamped its manufacturing and marketing strategies. At stake is Popsicle s leadership in what the Industry Calls the Frozen Novelty business which has been flooded in recent years with a new generation of tastier healthier and pricier products. About 90 percent of the items in that Section of our Freezer Are new since 1980," said a spokesman for the Kroger company one of the nation s largest supermarket chains. Popsicle is attempting to change to accommodate that new  gone is the antiquated system whereby Popsicle were made and distributed to retailers by 100 different dairies around the country a procedure that left the company with Little say Over product Quality. New fruitier flavors have been added to the Popsicle line As has Vitamin c. At the same time Popsicle is attempting in a new advertising Campaign to awaken the memories that most adults have of bygone summer Days spent eating Popsicle and to Transfer those memories to today s children who might otherwise clamor for a jello pudding pop. All in All the last six months have seen a major overhaul of the company based in Englewood n.j., which is a division of the Sara Lee corporation. We needed More muscle said Walters who was brought in by Sara Lee to head Popsicle at the end of 1983. Only five years ago two thirds of the Industry s sales came from scores of Small local and regional companies with Little marketing expertise or Money to promote their brands. Wednesday augusts 1986 but the business has changed dramatically since. Huge packaged goods makers such As general foods Dole coca cola foods and Pillsbury came in Wilh their technological marketing expertise and their deep pockets besides introducing n Host of innovative products they spent lavishly to establish themselves. Advertising expenditures in the category have grown to a projected $65 million this year trom $16 million in 1982 we changed the rules of the game said Ricardo Desantis a marketing executive at general foods whose pudding pop. Introduced in 1981, is one of he most successful of the new products. Today National brands account for almost two thirds of Frozen Novelty sales and the Competition for space in the crowded supermarket Freezer Section and for consumer loyalty has increased tremendously. So has the Market s size. Last year americans bought $1.7 billion Worth of Frozen novelties ice and ice Cream bars ice Cream sandwiches and the like compared with $720 million in 1982, according to find sep a Market research concern. Of last year s total about $1.3 billion came in food stores the segment in which Popsicle mainly competes. As Popsicle sees it the development of Frozen novelties into one of the fastest growing and competitive areas of the food business is sure to Lead to continued Industry consolidation. The company says it has held on to its 17 percent Market share even in the face of the growing Competition general foods has gone from Zero five years ago to about 15 percent but without some changes it would almost certainly have ended up As a second tier Brand. Ultimately there will be two to four competitors with the lion s share of the business Walters said. We d like to have our place in the  the Core of Popsicle s strategy is the change in the Way it makes and distributes its products. The company has never made its own Popsicle fudge Isles or creams cles but instead licensed the network of dairies to do it. The dairies in turn sold he products to retailers in their area but that arrangement left Popsicle Wilh Lilloo control Over local sales efforts and product Quality. The system was so decentralized that every Dairy used different packaging. Under hat system said Paul adm who became Popsicle s marketing vice president last year we were very vulnerable to the onslaught of National  Popsicle therefore ended the licensing system after almost 63 years and replaced it with a system under which about 25 manufacturers would make the Popsicle products under tight supervision. Popsicle itself is now handling distribution to retailers and keeps a much closer Eye on product Quality which particularly in fudge Isles and creams cles had dropped precipitously. Popsicle fudge Isles and creams cles which together account for the bulk of the company s sales compete at the Low end of the Price spectrum typically $1.59 for a dozen Popsicle. Popsicle s marketing efforts Are directed largely at mothers who the company believes buy most of its products for children. Kids like them Kadin said. Mothers Don t need to spend the Money on More expensive  but much of the action and growth in the business has come in products aimed at older slackers who Are willing to pay More for a tastier product and Popsicle is paying More attention to that segment As Well. Its main entry in the pricier category is oreo cookies n Cream an oversized ice Cream Sandwich version of the venerable cookie. Popsicle makes the Brand under License from fur Nabisco the owner of oreo cookies. In keeping with the latest trend snacks that come in smaller almost bite sized portions Popsicle is rolling out a new version called oreo snack Wiches which Are roughly the size of a regular oreo cookie. Meanwhile Popsicle is still playing catch up in the Frozen fruit and juice bar segment. Several years after Dole and smaller companies turned Frozen fruits into one of the fastest growing parts of the business Popsicle this summer will test Market its own version called fruit Sicle and is expected to offer the Brand nationally next year. The stars and stripes Page 13