ARCHWAY TEAMS WITH KELLOGG

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Archway is counting on the Kellogg name to give its new low-fat cookies a boost against competitors with bigger marketing budgets.

Battle Creek, Mich.-based Archway Cookies is teaming up with its neighbor Kellogg USA in a co-marketing effort that features Kellogg's All-Bran as a key ingredient for its new low-fat Apple Bran and Banana Bran cookies.

Based on its success with fat-free cookies, Archway has decided to become a player in the low-fat segment, rolling out its own line this month.

The cookie marketer recorded a 140% increase in fat-free sales to $15 million for the 52 weeks ended March 26, according to Information Resources Inc., Chicago. The fat-free, low-fat and reduced-fat cookie category had sales of $600 million, up 30%.

"The entire cookie category is being driven by fat-free and low-fat products, and it's driving our business right now," said Donald Keaton, VP-marketing and advertising.

With smaller marketing budgets than competitors like Keebler Co. and Nabisco Foods Group, Archway relies on Kellogg and co-branding partners to help add quality and value in the consumer's eye. Archway's measured media spending was only about $600,000 in 1994, according to Competitive Media Reporting.

Archway has had success using other brand name ingredients in its cookies like Chocolate Chip & Toffee cookies made with Leaf's Heath Bar candy bars and Fat Free Cranberry Bars made with Ocean Spray Cranberries.

For Kellogg, the low-fat cookies were its first national entry into the ingredient business. Kellogg is marketing its cereal brands, such as Corn Flakes, Crispix, Rice Krispies and Wheat Flakes, as ingredients for products like baked goods.

The Archway low-fat cookies will retail for $2.29. A print campaign for the new cookies will begin in women's magazines in the fall. Archway's agency is TraverRohrback, Kalamazoo.

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