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  Tuesday, 11 Jun 2013 | 6:21 AM ET

Banks Are Faulted for Taking Role in Web Fraud

Posted By: Jessica Silver-Greenberg
Image Source | Getty Images

The pitch arrived, as so many do, with a friendly cold call.

Bruno Koch, 83, told the telemarketer on the line that, yes, of course he would like to update his health insurance card. Then Mr. Koch, of Newport News, Va., slipped up: he divulged his bank account information.

What happened next is all too familiar. Money was withdrawn from Mr. Koch's account for something that he now says he never authorized. The new health insurance card never arrived.

What is less familiar—and what federal authorities say occurs with alarming frequency—is that a reputable bank played a crucial role in parting Mr. Koch from his money. The bank was the 140-year-old Zions Bank of Salt Lake City. Despite spotting suspicious activity, Zions served as a gateway between dubious Internet merchants and their marks—and made money for itself in the process, according to newly unsealed court documents reviewed by The New York Times.

The Times reviewed hundreds of filings in connection with civil lawsuits brought by federal authorities and a consumer law firm against Zions and another regional bank that has drawn even more scrutiny, First Bank of Delaware. Last November, First Delaware reached a $15 million settlement with the Justice Department after the bank was accused of allowing merchants to illegally debit accounts more than two million times and siphon more than $100 million.

The documents, as well as interviews with state and federal officials, paint a troubling picture. They outline how banks profit handsomely by collecting fees while ignoring warnings of potential fraud and, in some instances, enabling dubious merchants to prey on consumers.

»Read more
  Saturday, 8 Jun 2013 | 12:56 PM ET

Something Borrowed, Something Brew: Wedding Beer

Posted By:
Source: Boston Beer Company
Samuel Adams Brewlywed Ale

The wedding season has arrived, and for many craft beer-crazed lovebirds, love isn't just in the air, it's in their beer.

That's because in preparing to say "I Do," more couples are also choosing to say "I Brew," carefully choosing the beer offered at their wedding reception and in many cases brewing it themselves.

Now one Los Angeles-area hotel is going so far as to make brewing a wedding beer an option in its reception package, offering couples the opportunity to create and brew the beer served at their wedding reception. The Four Points by Sheraton Los Angeles International Airport offers a "Hoppily Ever After Package," which allows couples holding their reception at the hotel to brew their own custom beer.

The hotel has partnered with Enegren Brewing Company to consult and work with couples interested in brewing up their own wedding beer. The idea was the brain child of Phil Baxter, the hotel's general manager, whose love for beer has helped the hotel cultivate a reputation as the "Original LA beer hotel."

"I deal with a lot of brewers, and one of the things I noticed, brewers always brew a special beer for their weddings," Baxter said. "This was a way to offer a customized wedding experience where people could have a beer of any style they wanted and put their own sort of signature on it."

In the months leading up to their wedding day, couples consult with Enegren to determine the style and create the recipe for the beer they would like to brew. The couple and/or their wedding party then heads to the brewery in Moorepark, Calif., to brew their beer.

(Read More: Beer-Loving Simpson's Fans Say Woo-Hoo!)

For brewery co-founder Matt Enegren, the experience allows a couple to put a unique stamp on their wedding day.

"We design a recipe with them. It's really tailored to what they want," he said. "It's a beer made specifically for them, that they've not only designed but they've actually made. It's a nice experience to have."

The total output is around 30 gallons, and the beer is offered on tap at the wedding reception. Any beer not used at the wedding is sold on tap at the Four Points hotel bar.

The trend of couples choosing their wedding beer more carefully has not gone unnoticed by the watchers of all things weddings, TheKnot.com.

»Read more
  Friday, 7 Jun 2013 | 6:00 PM ET

Beer-Loving Simpson's Fans: Woo-Hoo!

Posted By:
Getty Images
Anheuser-Busch Budweiser

Six things that have consumers buzzing in the world of beer, wine and spirits this week:

1. Done Deal: Anheuser-Busch InBev has officially completed its $20 billion acquisition of the portion of Mexican brewer Grupo Modelo it did not already own. The deal gives Anheuser-Busch InBev, already the world's largest brewer, control over four of the top five global beer brands. It now has a total of 17 billion dollar brands in its portfolio.

Here's a look at the brand values of the top 10 global beer brands and who controls them according to BrandZ's 2012 report:

1) Bud Light ($10.8M) - Anheuser-Busch InBev
2) Budweiser ($9.5M) - Anheuser-Busch InBev
3) Heineken ($8.2M) - Heineken
4) Corona ($6.6M) - Anheuser-Busch InBev
5) Skol ($6.5M) - Anheuser-Busch InBev
6) Stella Artois ($6.3M) – Anheuser-Busch InBev
7) Guinness ($4.4M) - Diageo
8) Aguila ($3.9M) - SABMiller
9) Brahma ($3.8M) - Anheuser-Busch InBev
10) Miller Lite ($3.1M) - SABMiller

»Read more
  Friday, 7 Jun 2013 | 3:13 PM ET

Cronut Mania Spawns Imitators and a Trademark Rush

Posted By:
Source: Niko Triantafillou
The Cronut.

The Cronut has gained a cult following since Dominique Ansel Bakery in New York began selling the trademarked croissant-doughnut hybrid last month. Several bakeries with trademark hopes of their own have moved to capitalize on the hype, launching their own versions.

Robert Cabeca, owner of Chocolate Crust in Washington, began offering his "doissant" last weekend.

"In the industry, it really is a form of flattery to the original creator when someone else tries to make something someone else has made," he said.

Other copycats have sprung up in Australia and Los Angeles, but Cabeca said he doesn't think of his creation as a copycat. The item is so popular that he made a double batch—about 200—Thursday and planned a triple batch for National Doughnut Day on Friday.

»Read more
  Friday, 7 Jun 2013 | 6:39 AM ET

JC Penney Hopes for a Home Run With New Launch

Posted By:
Daniel Acker | Bloomberg | Getty Images

J.C. Penney is hoping its new home product range will boost flagging sales and help return the retailer to its glory days, the company's CEO told CNBC.

"We are very excited to be back where the home building business is picking-up; our dot com business is likely to grow to over 50 percent home in the near future," Mike Ullman said on Thursday.

Home goods has been the retailer's worst-performing category for seven years, accounting for only 12 percent of its sales over the last fiscal year, compared to 21 percent in 2006.

But when asked if its new home department could get the retailer get back to where it was seven years ago, Ullman said: "(Home) gives us a chance to grow our business back to historical levels."

»Read more
  Thursday, 6 Jun 2013 | 1:22 PM ET

The Beer Revolution Will Not Be Bottled

Posted By:
Source: Anheuser-Busch InBev
BudLite introducing a new vented can.

The newest weapon in the battle for the beer drinkers' dollar is actually an old one. The once-maligned can is now taking the spotlight—and shelf space—from the bottle.

The can is becoming an increasing popular option for brewers looking to give consumers another reason to choose their product over another. Canned beer made up 53 percent of the market last year, versus 48 percent in 2006, according to industry trade group The Beer Institute.

The latest salvo in the can wars comes from Anheuser-Busch InBev's Bud Light brand, the best-selling beer in the U.S., which recently named Louisville, Ky., as the pilot market for a new 12-ounce Bud Light Vented Can.

The Bud Light Vented Can allows consumers to push down the tab in reverse motion after the can is opened, creating a vent to improve airflow when pouring or drinking the beer.

It's not the first time a brewer has hailed a vented can as a better beer drinking experience.

»Read more
  Thursday, 6 Jun 2013 | 10:59 AM ET

What Gives? Retailers Go Gaga for Groceries

Posted By:
Getty Images

Americans spend more than $565 billion dollars a year on groceries. After all, everybody eats, everyday...and more than once.

Despite the high revenue, the profit margins traditionally have been low in this business, but that hasn't stopped retail giants Amazon.com and Wal-Mart Stores from escalating the national food fight. Both companies were in the news with big initiatives this week that reinforce the idea that their future plans include a focus on your weekly grocery list.

Over this week, Los Angeles was stealthily added as the second delivery area for Amazon's online grocery delivery service, Amazon Fresh. The online behemoth has been testing the program in and around its home city of Seattle for about six years. Reportedly, Amazon is looking to expand its online grocery business to San Francisco later this year, and then to 40 more areas in 2014. Amazon did not return CNBC's requests for comment and hasn't confirmed the reports of expansion.

(Read More: Amazon Plans Major Move Into Grocery Business)

"Historically, online grocery hasn't had a lot of success disrupting the traditional grocery market. But this is Amazon. It has the logistics and expertise in place, and if it can back it up with quality product, it's likely to make big waves," said Bob Summers, an analyst at Susquehanna.

»Read more
  Wednesday, 5 Jun 2013 | 5:18 PM ET

Reclaim Your Angus: CKE Chief Knocks McDonald's

Posted By:

It's the advertising equivalent of rubbing a burger in a competitor's face.

Following McDonald's decision to do away with its Angus Third Pounders, the CEO of CKE Restaurants, the parent company of Hardee's and Carl's Jr., has taken to YouTube to sympathize with disgruntled customers and invite them to visit his restaurants instead.

"I've heard that McDonald's abruptly stopped selling their Angus beef burgers, leaving many of you angry, frustrated and confused," said Andy Puzder, CKE's chief. "In fact, it seems you've taken to Twitter to express your frustrations."

Then in a moment made possible only through social media, Puzder shares a couple McDonald's customer laments.

»Read more
  Tuesday, 4 Jun 2013 | 2:31 PM ET

Red Robin Offering Beer Cocktails This Summer

Posted By:
Source: Red Robin Gourmet Burgers

As summer heats up, national restaurant chain Red Robin Gourmet Burgers is looking to help customers cool off by combining two of the hottest trends in the alcohol space: cocktails and canned beer.

Red Robin has added what it calls "Can-Crafted Cocktails" to its seasonal menu. The beverages, offered in two varieties, are made with MillerCoors' Coors Light and Blue Moon beer.

While restaurants have increasingly turned to beer in recent years to help boost their bottom lines, beer cocktails reflect a general trend.

According to the Distilled Spirits Council of the United States, spirits have steadily expanded their market share in recent years, at the expense of beer. Spirits have gained 5.6 points of share since 2000, while beer's share has dropped to 48.8 percent from 55.5 percent.

One cocktail mixes Coors Light beer, ginger liqueur and lemonade topped with fresh squeezed lemon. The other is a blend of Blue Moon Belgian White beer, Svedka Clementine vodka, orange juice and fresh lime juice.

Presenting a beer cocktail would seem a natural extension for the restaurant group that made the beer milkshake famous.

(Read More: Beer Milkshakes—the Latest Weapon in the Burger Wars)

»Read more
  Monday, 3 Jun 2013 | 1:09 PM ET

Here Comes Egg and Bacon in a Glazed Doughnut

Posted By: Candice Choi, NBC News
Photo: Dunkin Donuts

Even as fast-food chains tout their healthy offerings, they're also coming up with fatty new treats to keep customers interested. Case in point: Dunkin' Donuts is adding a doughnut breakfast sandwich to its national menu this week.

The sandwich, which comes with fried eggs and bacon between a split glazed doughnut, will become a part of the permanent menu starting June 7, which the chain says is "National Donut Day." Dunkin' Donuts had tested the sandwich in select stores in eastern Massachusetts in April, creating considerable buzz online.

»Read more

About Consumer Nation

From the products to the pitches to the people who buy them, we are a Consumer Nation. This blog focuses on all things consumer, taking the pulse of the attitudes that shape purchasing decisions, and providing insights that will help keep marketers, entrepreneurs and investors up-to-date on where trends are heading.

 

Retail

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