Toys “R” Us and McDonald’s Corp. unite this month on a holiday program worthy of the term “cross-promotion.” Through December 27, Happy Meals feature one of eight miniature premiums based on Paramus, NJ-based TRU’s Animal Alley private-label plush line. The toys are poly-bagged with a miniature 20-page version of the Big Toy Book, the chain’s annual holiday mega-circular. The mini-books contain $100 in Toys “R” Us coupons “Just for McDonald’s customers!” The campaign marks the first time McDonald’s has let a retailer tie into Happy Meals on such a grand scale.

In addition, customers who purchase $10 worth of McDonald’s gift certificates receive an Animal Alley picture frame/ Christmas tree ornament. “We haven’t done a gift certificate program this aggressive in more than 10 years,” says Karlin Linhardt, McD’s senior director-youth marketing. “We’re really focusing on the gift-giving spirit this holiday season.”

Oak Brook, IL-based McD will publicize with in-store P-O-P via Frankel, Chicago, and TV spots from Leo Burnett, also Chicago. Toys “R” Us will provide Happy Meal P-O-P in stores and circulars. “We’ll each support with elements to help drive traffic to both our stores,” says Warren Kornblum, TRU’s executive vp-worldwide marketing and brand management. Los Angeles-based Simon Marketing put the effort together for both partners. The campaign marks Simon’s swan song for McDonald’s, which dismissed the agency in August (See “Law,” pg. 17.)

Universal Pictures and production house Amblin Entertainment, both Universal City, CA, announced the first three promotional partners for the 20th anniversary re-release of E.T. The Extra Terrestrial in March. Kraft Foods, Northfield, IL, will run an extensive campaign across 30 brands featuring special packaging, P-O-P displays, and premium offers. Minneapolis-based Dairy Queen will run a special offer for its signature Blizzard dessert and support with national TV ads, P-O-P materials, and online advertising. Hershey, PA-based Hershey Foods Corp.’s Reese’s Pieces — whose successful product placement in the 1982 film is still legendary — returns with national TV, a free ticket offer, P-O-P, and premiums. Other partners are expected to sign on before the film’s March 22 release. (Toys “R” Us signed on as exclusive worldwide merchandising partner last year.)

Riverwoods, IL-based Discover Financial Services is on the road this fall with the Discover Card College GameDay Tailgate, a 16-city trek that follows Bristol, CT-based ESPN’s football coverage to campuses around the country. The tour boasts a replica of the ESPN studio and includes such activities as passing, kicking, and catching competitions and faux commentator auditions. Visitors can also register for sweeps, check college game scores, sign up for a Discover Card, play Sega videogames, and score Foot Locker coupons. An online overlay at discovercard.com lets visitors make predictions on upcoming games; each prediction doubles as entry into a sweeps offering the grand-prize winner an appearance on College GameDay at the Rose Bowl next month. Marketing Werks, Chicago, handles.

Minneapolis-based Totino’s teamed with Baltimore Ravens coach Brian Billick for an in-pack instant-win game awarding a weekend with the coach and his team during the 2002-2003 NFL season. The Score a Day game is tagged on 66 million Totino’s products through March. Two grand-prize winners and guests will attend a Saturday practice and get private club seats, post-game locker room passes, and $500 spending money at a Sunday game. P-O-P displays, an FSI, and TV spots support. DVC Group, Morristown, NJ, handles.

White Plains, NY-based MasterCard’s annual Priceless promotion this year will award five “prizes of a lifetime” to one grand-prize winner. Consumers are entered to win whenever they charge a purchase. Prizes include an African safari, a behind-the-scenes tour of Space Center Houston, and a trip to England to meet the Jordan Formula One racing team and attend racing school. The effort is being supported with TV and print ads, along with a Web site hosting a separate instant-win game. Eight of MasterCard’s 10 largest retail accounts will position a collective 275,000 pieces of P-O-P. More than 140 member banks are participating. Ryan Partnership, Westport, CT, handles promotions; McCann-Erickson, New York City, does the ads.

Golden, CO-based Coors Brewing Co. is celebrating the holidays in a partnership with Modesto, CA-based Ernest & Julio Gallo Wine. The partners are distributing $5 rebates to consumers who purchase Coors 12-packs and bottles of Gallo Twin Valley Wine. The program will be supported with counter cards and shelf tearpads.

Plano, TX-based Dr Pepper/Seven Up’s Hawaiian Punch brand is asking teens to help design new packaging. An online Message on a Bottle contest hosted by Bolt.com lets teens submit ideas for the redesign of the brand’s 20-ounce bottle for a chance to win a $1,000 grand prize or three $250 runner-up prizes. The winning design will later be used on other packages including 12-packs, two-liters, and 12-ounce cans. The beverage brand in February will narrow the field to four finalists and post the entries on bolt.com, allowing the New York City-based teen portal’s five million members to select the winner. Hawaiian Punch handles in-house.

Panama City Beach Convention & Visitors Bureau, Panama City, FL, is in the midst of an on-campus push to court students to Spring Break while shopping for sponsors to participate in a month-long promotion. Bureau reps are visiting campuses to offer information on the city’s resorts, shopping, and events as well as its Spring Break sponsors, who get several months of visibility via the campus visits and on-site activities in March. In March, the city will host a Caribbean-style festival and treasure hunt on a 50,000-square-foot section of beach. Attractions include a pirate-ship stage with live music and DJs, a man-made lagoon, hot tubs, JumboTron video screens, and hourly prize giveaways. YouthStream, New York City, handles.

As part of its ongoing effort to divest “non-core” brands, Cincinnati– based Procter & Gamble is handing Jif peanut butter and Crisco cooking oil to jam and jelly kingpin J.M. Smucker Co. in a $1 billion stock transaction.

However, the arrangement calls for the two brands to be spun off from P&G, then merged with the Orrville, OH-based Smucker operation in a transaction that will give P&G shareholders 53 percent of the new company (although Smucker shareholders will retain voting power on major matters).

The acquisition ends Smucker’s 25-year quest to pair peanut butter with its jelly: former chairman executive Paul Smucker discussed such a deal back in the 1970s with then-P&G chairman John Smale. The addition of Jif and Crisco is expected to double Smucker’s annual revenues to about $1.3 billion, triple its earnings, and give the nation’s No. 1 fruit spread maker expanded clout in retail circles.

For P&G, the deal lightens the load a bit. The 250-brand CPG maker is out to shed all non-core products and “focus on building our big brands in core categories,” said ceo A.G. Lafley in a statement announcing the deal. o

Kraft Foods, Northfield, IL, announced extensive media alliances valued at “several hundred million dollars” with New York City entertainment conglomerates AOL Time Warner and Viacom. The one-year deals enable Kraft to use various properties for integrated brand marketing initiatives. Kraft’s media agencies, led by AOR MediaVest, Chicago, will work with the company’s marketing teams to set national plans for 70-plus brands.

Sprint Corp., Kansas City, KS, and the Virgin Group, London, are teaming on Virgin Mobile USA, a joint venture offering pay-as-you-go wireless communications services and handsets in the U.S. Targeted to 15-to-30-year-olds, the services will roll out in the first half of 2002.

Yahoo, Inc., Sunnyvale, CA, and Sony Pictures Digital, Culver City, CA, inked an agreement to promote Sony films online. The first effort, for October release Riding in Cars with Boys, included show time listings, online ticketing, cast interviews, and behind-the-scenes-footage at Yahoo Movies, wardrobe auctions at Yahoo Auctions, and personalized e-mails from star Drew Barrymore (via Yahoo Delivers).