Friday, July 8, 2011

Optimism Café. Kraft Opens Maxwell House Coffee Shop in Toronto. Free Cookies and Kool-Aid.

Kraft Canada (NYSE: KFT) has embarked on a clever piece of marketing recently. On Queen Street in Toronto, the company has opened up a Maxwell House coffee shop. Titled the "Optimism Café," the food juggernaut hopes to increase brand awareness for its number one home-made coffee franchise.

The location only has limited weekday hours, and for now, is only planned to be open for the month of July. Early signs, however, are revealing that the concept is a success. Already receiving free press (including this article), and positive reactions from a number of customers.

Part of the reason for the shops early success is its touting of free Wi-Fi Internet, dog biscuits, cookies for kids, and Kool-Aid Jammers. Other immediate plans include book signings and live music. The new Maxwell House coffee shops are part of an overall "optimism" marketing strategy that includes "feel-good" messages and commercials that give the impression to the public that the glass is "always half-full" with the company.

So far, Kraft says that they have "got a lot more out of the café than we put into it — worth every penny and more.”

For the Intelligent Investor, this is a sign of an innovate company that is in touch with the public and able to utilize fresh marketing to increase sales. Maxwell House sales, for instance, have been up 10 percent since the start of the campaign. 

Happy Investing, and be sure to give Kraft a look as a conservative part of your portfolio. 

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