Hasbro Reduces China Sourcing

Hasbro Reduces China Sourcing

September 17, 2019
Lisa M. Spencer

Hasbro continues to reduce ties with China, aiming to source less than 50% of its toys for the U.S. market from there by the end of 2020.  By 2023, that should drop to 33%.

Heading Trump’s call to American businesses to leave China, Hasbro continues to seek new opportunities for sourcing toys from Vietnam, India, Mexico, and back home in the U.S.  Hasbro’s exit actually began back in 2012, when 90% of its toys for the global market came from China.  Today that figure stands at two-thirds.

Video Spotlight: Hasbro CEO on reducing toy production in China below 50% by the end of 2020

This post is based on the CNBC article, Hasbro CEO says moving out of China has “gone very well for us”, by Jasmine Kim, August 27, 2019, and the YouTube video, Hasbro CEO on reducing toy production in China below 50% by the end of 2020, by CNBC Television, July 23, 2019. Image source: Design Pics / Don Hammond

Discussion Questions:

1. Why is Hasbro leaving China, a move which predated the Trump tariffs?

Guidance: In addition to the issue of higher costs because of recent tariff increases, other Continue reading →

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KFC’s Newest Secret Spice: Beyond Meat

KFC’s Newest Secret Spice: Beyond Meat

September 16, 2019
Lisa M. Spencer

KFC’s Atlanta test of Beyond Meat’s plant-based chicken sold out in just five hours, demonstrating a market hungry for more alternatives to traditional fast food meats.

KFC is the first fast food restaurant to offer the product.  Soon it plans to serve up both chicken nuggets and bonefree wings in 6- and 12-piece combo meals, in addition to having an a la carte nugget option.

Video Spotlight: Beyond Meat Testing Fake Chicken at KFC

This post is based on the CNN article, KFC will start testing Beyond Meat fried chicken, by David Goldman, August 26, 2019; the Barrons article, Beyond Meat’s Test at KFC Shows There’s a Market for Alternative Chicken  and the YouTube video, Beyond Meat Testing Fake Chicken at KFC, by Bloomberg Markets and Finance, August 26, 2019. Image source: (c) Ingram Publishing / Alamy

Discussion Questions:

1. What challenges will KFC face when adding plant-based chicken products to its menu?

Guidance: Correctly forecasting demand for a product that is truly new can be challenging.  As demonstrated recently at Popeye’s with a much less “innovative” product, product shortages can cause mayhem for restaurants which do not correctly forecast and obtain Continue reading →

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