Posts in Emerging brands

Dr. Lisa Dyson transforms meat industry

Dyson’s Moonshot to Transform Meat Industry

June 30th, 2020 Posted by brand marketing, change, Emerging brands, Emotional relevance, food experiences, Food Trend, Growth, Healthy lifestyle, Higher Purpose, Insight, Marketing Strategy, Transformation 0 comments on “Dyson’s Moonshot to Transform Meat Industry”

Air Protein creates first ultra-sustainable proteins

If the pandemic created one positive outcome for Americans, it has been the most potent force in history to elevate the importance of health and wellness to consumers. Already a rising cultural priority, COVID-19 serves as a compelling motivator for people to further invest in their physical health by elevating the quality of what they eat and drink.

Witness the skyrocketing popularity of meatless meat, advanced by first making a product that accurately replicates the taste and eating experience of animal meat but sourced from plants. Survey after survey in the food industry has verified the general growing interest in consuming more plant-based foods because people believe it’s a healthier option. As a result, the alternative meat business is forecasted to reach 40 to 50 percent of the $1.4 trillion global meat industry by 2029.

Now on the horizon comes a new company and food-making technology that promises to create the most sustainable meat alternative on earth. Meat that requires no agriculture, no animals and yet delivers a nutritionally superior, complete higher protein product than anything created from a chicken, pig, cow or plant.

A funny thing happened on the way to the moon

During the massive run-up in the 1960s in its bid to put a man on the moon, NASA continuously launched better, bigger spacecraft while another experiment was going on behind the scenes – one that was eventually shelved and forgotten. The premise was based on nourishing astronauts with food that could be created in space, and the tool for this genius idea was carbon transformation. Said more simply, converting carbon dioxide exhaled by the crew into food. Experiments were conducted but eventually pushed aside in favor of other lunar landing priorities.

Pleasanton, CA-based Air Protein, helmed by MIT physicist Dr. Lisa Dyson, is on a new mission to take the carbon transformation ball all the way down the field and put it in the culinary end-zone. “More and more people are starting to consider the harsh reality of our food system as a global contributor to greenhouse gases (GHG) and climate change,” explains Dr. Dyson. “Our agricultural system produces more GHG than all of the fuel-burning sources of transportation combined. When you mix that with the finite limitations of available land and water resources for farms, ranches and fisheries, you know it’s going to be nearly impossible at some point to feed a rapidly growing global population.”

Dyson’s moonshot is a fascinating recipe of uniquely combining carbon dioxide, oxygen and nitrogen with renewable energy, water and nutrients, then adding common microbes in a fermentation process similar to making wine or cheese. The high protein flour outcome of this brewery-like approach is turned into authentic meat analogs by using pressure, temperature and natural flavors. Her sustainable “Air Protein Farm” operates more like a yogurt making facility than meat processor.

While a steak requires two years of dutiful cattle raising that consumes a significant amount of natural resources, Dyson’s ultra-sustainable meat comes to fruition in just four days.

Air Protein’s process helps avoid two current concerns of conventional meat infrastructure revealed during the coronavirus outbreak:

  1. Dangers of meat packing plants becoming hyper-spreader environments for the virus.
  2. The resulting scarcity and higher prices of various meats available to consumers at the grocery.

Alternatively, the Air Protein carbon footprint is negative. All of this becomes more plausible when you consider that carbon chains are the essential building blocks of all fats, carbohydrates and proteins. Scientists refer to carbon as “the backbone of life” because, along with water, it is the primary element that makes up all living things.

Sustainability emerges as part of the path to purchase

People everywhere are experiencing a transformation of their own in adding higher purpose, mission, beliefs and values to the shopping list of what they want from food brands they prefer and purchase. The International Food Information Council in a recent national pandemic-inspired survey of consumer behaviors found the impact of environmental sustainability is on the rise as a priority, with 39% of consumers saying it is now a factor in their buying decisions. More than 40% of respondents said it is important for food makers to have a commitment to sustainability, recognition that people are more aware now of limited natural resources and the effect of society and industry on climate change.

Sustainability practices and behaviors clearly matter to people. Dyson believes Air Protein’s emerging story will be a game-changer at the supermarket meat case where retailers are increasingly on the hunt for brands that fulfill the shoppers’ wishes for sustainable choice.

Climate change became the call to arms

The horrible devastation wrought by Hurricane Katrina that claimed more than 1,800 lives and left $125 billion in property damage, much of it in New Orleans when the levees were overcome, served as a Road to Damascus experience for Dr. Dyson. While there she labored to help restore a city overcome by a natural disaster that many assigned to the accelerating menace of hostile weather patterns borne of climate change. Dyson vowed to make solving the rampant build-up of greenhouse gases (GHG) an avocation, leading to a partnership with MIT colleague Dr. John Reed and the eventual genesis of a new company named Kiverdi.

“My experience in New Orleans was life-changing. I decided to develop solutions that would combat climate change. During the years following, it became clear to me that our food system is a major culprit in this unfolding crisis. The world’s population is expected to reach 10 billion by 2050, how to feed everyone sustainably and affordably is the big question we intend to answer,” she said.

The supreme irony of Air Protein is its intention to make food from carbon dioxide. As if meat were to become a new kind of photosynthesis that turns protein creation on its head – not as a contributor to greenhouse gases but also an effective eraser of this global temperature-raising threat. Ultra-sustainable meat may become a center of plate, culinary chess piece to satisfy the appetite while refusing to exact an enormous toll on the environment. That no plants or animals are involved means there is an embedded promise of a high-quality protein source that is generously renewable, kinder to the environment, scaleable and thus plentiful.

The premiumization of palates

Food culture in America has undergone a makeover as the quality of cuisines, ingredients, cooking techniques, kitchen tools and culinary expectations have risen. From the days of Hamburger Helper and Cheese Whiz, people now find themselves eating Michelin star quality cooking at the corner gastro-pub.

The successful strategic gamesmanship of plant-based meat like Beyond Meat and Impossible Foods, was their insightful move not to make an improved Vegan burger for Vegans. Rather, to deliver an alternative that could satisfy the sensory, gustatory preferences of the most ardent meat lovers. In doing so, these companies reimagined veggie burgers as plant-based protein, opening a new chapter in food where taste trade-off to achieve better-for-you was not required.

This feat is not lost on Air Protein founder Dr. Dyson. With consumers moving rapidly to embrace alternative meat, she sees Air Protein’s probiotic production tech as the next generation category. She has chefs working alongside food science experts to ensure that deliciousness is right there with the heaping tablespoon of ‘feel good’ about not harming the environment with every forkful of her chicken made without the chicken. “We are tuned in to the requirement that our products must deliver on the taste, flavor and eating experience of animal meat, the plant-based hamburgers have shown that when you hit the eating experience squarely, the purchases will follow and repeat,” she said.

The next generation of meatless meat is coming

Who knew that exhaling combined with microbes could build a protein? It took NASA to start the ball rolling and Dr. Dyson and her team to hit the three-point basket at the buzzer. “Because our protein production process requires no farm, no agricultural input or animal, our ability to scale is not governed by supply chain conditions. The COVID-19 influenced meat shortages we’ve seen remind everyone that the food system as we know it can be compromised. We’re excited because our game-changing technology can create a reliable, sustainable supply of meat products that are better for you and infinitely better for the planet at the same time,” she said. Context provides dramatic proof: Dyson says it would take a farm the size of Texas to produce the same amount of meat Air Protein can deliver from a production facility as small as the footprint of Disneyland.

Air Protein is a category-defining company now in the midst of an equity capital raise and expects this round to provide the required assets to take the last lap to commercialization and retail launch. “What’s exciting here is our cost base to produce meat. We will be able to market our products at an affordable price, which in this economy will be important. Our goal one day will be to help economically feed the world from the platform we’re building now,” reports James D. White, Executive Chairman of Air Protein, and former CEO and President of Jamba (formerly Jamba Juice Company).

This dynamic duo believes Air Protein will eventually become the reference standard for ultra-sustainable meat.

Can’t wait to try her chicken at the corner grocery with a salad. One day you’ll probably find it on the moon.

Editorial note: Emergent extends our thanks and appreciation to Dr. Lisa Dyson and James White for participating in this important story.

Looking for more food for thought? Subscribe to the Emerging Trends Report.

Bob Wheatley is the CEO of Chicago-based Emergent, The Healthy Living Agency. Traditional brand marketing often sidesteps more human qualities that can help consumers form an emotional bond. Yet brands yearn for authentic engagement, trust and a lasting relationship with their customers. Emergent helps brands erase ineffective self-promotion and replace it with clarity, honesty and deeper meaning in their customer relationships and communication. For more information, contact Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

Appetite appeal

Everipe Stands on a Moment of Extraordinary Relevance

June 12th, 2020 Posted by brand marketing, brand messaging, brand strategy, change, CMO, Consumer insight, Emerging brands, Emotional relevance, Growth, Insight 0 comments on “Everipe Stands on a Moment of Extraordinary Relevance”

Right for the times we are in and when it truly matters

Perhaps the single most important emotional revelation coming out of the pandemic and surrounding events is the complete loss of control experienced by people, now buffeted by an unseen disease and historic events. The conditions have taken charge of our everyday lives, challenged our cultural norms, and affected our behaviors and personal priorities. 

We now have overwhelming evidence that people want to reassert control in their lives in meaningful ways. In our recent article, Health is the New Wealth, we started a discussion around the one thing consumers can actively participate in controlling that helps correct the imbalance and uncertainty they’re experiencing: health and wellbeing matters. 

The pandemic amplifies the health and wellness issue exponentially as people work to protect themselves by investing in their immunity thresholds through better eating and healthy living. This has influenced the purchase patterns and brand preferences for millions and ushered in an era of incredible innovation brought by entrepreneurs who, right and left, are reinventing legacy categories and creating new ones with better ingredients while serving a higher purpose to boot. Every so often we come across a new brand that has relevance written all over it because it so squarely hits the touchpoints of what matters to people now.

Everipe lands at precisely the right moment with precisely the right solution

The pandemic has locked families into homebound consumption occasions and a need for healthy beverages that are pantry ready and convenient. Imagine this: a shelf-stable, super-food smoothie developed using freeze-drying tech to perfectly preserve real fruit ingredients. Freeze-drying removes moisture while also concentrating the flavor profile. 

Then add super-food ingredients to enhance nutritional density. Make it easy to do – just add water, juice or dairy and some ice to a blender. Make it at an affordable price point. And oh by the way, eliminate the hassle of building a homemade smoothie from scratch while fresh fruit ingredients go from ripe to fuzzy in a matter of days. 

Everipe is right for the moment we’re in. We interviewed founding partner Kerry Roberts to learn how the company is handling the pandemic and what they see in the future ahead. Here’s our Q&A with Kerry and some related observations from Emergent.

1.   In the last 60 days much has changed for emerging food and beverage brands. How has the pandemic impacted your business and what changes have you made in how you go-to-market?

Kerry Roberts: “These last couple of months have managed to pull the rug of ‘business normal’ out from under us as company leaders, parents, and partners.

Everipe, is a direct-to-consumer, shelf-stable superfood line of good-for-you smoothies. We suddenly found ourselves relevant for these functional benefits overnight, and for reasons we never could have crafted in a strategy deck. We were incredibly lucky to have planned a launch with Amazon in March that was expedited with Amazon’s emerging business team given the need for nutritious (easy to ship) pantry foods – and so we have seen that channel immediately exceed our expectations. At the same time, we’re seeking out additional E-commerce channels with launches in past weeks on Zulily, Walmart.com and we’re temporarily pausing any plans to pursue brick and mortar.”

Emergent: Ready-to-drink smoothies have been around for a while, but many of them are higher in sugar and the taste isn’t quite on a par with fresh-blended versions. Making smoothies from scratch is time consuming, like baking a daily cake. Frozen fruit ingredients can be expensive and there’s only so much room in the freezer to start anyway. 

Everipe hits so many appropriate buttons from great taste to convenience to nutrition delivery to satisfying at a friendly price – you just know this is going to catch fire. My oldest daughter, who is a smoothie fanatic, loves them. The innovation here is timed, positioned and packaged correctly. 

2.   What specific changes have you implemented in your sales and marketing strategies?

Kerry Roberts: “Consumers in the early stages of quarantine were shopping under duress and it was important to recognize that they were not wired for aisle-browsing discovery of new brands and their messaging. 

As we thought about consumer motivations and how they had shifted on-a-dime in our category from things like energy and weight management to home delivery and shelf-stability, we immediately adjusted our messaging.

Instead we focused on pantry storage, clean ingredients and free delivery – which sound functional at face value, however they all ladder up at present, to safety.

Tactically, in addition to seeking out expanded e-commerce distribution, we’re also leaning aggressively in on our own direct-to-consumer channel, offering a deep trial discount and tripling our digital Ad spend to introduce a captive audience to Everipe.” 

Emergent: Right here you are witnessing the one great lesson that feeds trial and development of a new brand: put the consumer first at all times. Listen carefully to what they are saying, how they are behaving. Be cognizant of the environmental conditions they find themselves in. Work to understand the nuances of what they care about and plan backwards from there.

Relevance and resonance are the twin engines of growth in food and beverage businesses. You can’t have either without an acute understanding of what drives consumer behavior. 

The “if you build it they will come” approach just won’t work. Everipe understands the consumer comes first. Period.

3.   How do you think investors are reacting to the COVID-19 situation and how does that impact their interest in brands like yours?  

Kerry Roberts: “Everipe has not taken on funding as yet and as we think about the coming months, we’re conscious that dollars may tighten as Venture Capitalists and funds work to support their own portfolios through a recession. 

That said, I feel this year presents an incredible opportunity for founders to create a story around how they navigated these challenging times – how quickly they pivoted, how strategic they reacted, and how they set their brand up to weather what may become a lengthy recovery. 

With no shortage of incredible product ideas, I think investors look to invest in founders as potential teammates. While this may not be an easy time to champion an emerging brand, the chance for founders to showcase your character and intellect is probably as poignant as it’s ever going to be (at least I hope this is as tough as it gets!)”

Emergent: We are reminded once again that it is the strength and skill sets of founding partners and creators that imbues brands with “difference.” It is rare that you find a CPG experienced marketer like Kerry Roberts at the controls of building a new brand like Everipe. More often than not founders don’t hail from the marketing discipline. Yet, how a new brand is packaged and presented can have enormous impact on scale and staying power. 

Knowing your skill sets and capabilities can help owners identify the blind spots – and brand building can be one of them. This is why Emergent is a resource for emerging brands. Consumers are emotional creatures. They do not make analytical, fact-based decisions concerning the brands they care about. 

We know that both the stories and the words used to convey the value proposition are of great importance in creating a strong brand right out of the gate. It’s a highly specialized area of expertise not always “owned” by the owners.

Kerry’s presence at Everipe gives them a significant advantage, because she understands the emotional fabric and character of what a brand consists of and how vital it is these days to design it with higher purpose and deeper meaning.

4.   How will the economic uncertainty and lifestyle impacts of the pandemic influence consumer priorities and behaviors?

Kerry Roberts: “I reflect on the spotlight placed right now on wellness, particularly immunity – and health as the only currency that really matters and I am hopeful that the connection between how we fuel our bodies, and how we feel, (and heal), becomes more appreciated. 

At the same time, I worry that in a recession, consumers may not have the resources to invest in healthier options. As a startup with lean margins we understand this friction. I hope that the leadership for making truly clean foods more accessible continues to extend to, and include, big CPG businesses who have the resources to make those changes.”

Emergent: As we’ve said, “Health is indeed the New Wealth.” The pandemic and related events have made the home a more important safe zone; making and consuming food at home more desired; and investing in our health and wellbeing a top priority. There is no greater calling now for the food and beverage industry to acknowledge this will not be achieved through incrementalism in formulation adjustments, but in reinvention of legacy brands to answer the desire for higher quality, shorter ingredient decks and improved nutritionals. 

Six years ago we reported on the seismic move in food and beverage preferences to fresh, locally sourced, higher quality food and beverage choices as people fully connected the dots between what they ingest and the quality of their lives. This single event has created a shift in consumption patterns, food and foodservice retail strategies, and changed the very definition of what better-for-you eating is about. The pandemic has only heightened the shift.

Better-for-You is what the consumer cares about. It is what they want. A panicked blip in sales of boxed mac and cheese should not be interpreted as a lasting return to highly processed food consumption. 

If we indeed care about the health and wellbeing of our users, we owe it to them to advance the creation of healthier products and new food and beverage experiences like Everipe.

5.   What advice can you offer to the founders and investors of new emerging brands that will help assure their continued growth? 

Kerry Roberts: “I wish there was a pandemic playbook! If I might offer any advice it would be: 

  • To think carefully about any aggressive plans for rapid expansion and instead to first ensure that existing partners and channels are well cared for, and cash is managed. 
  • To double down on listening to and serving your consumer, employees and partners. Your most efficient marketing efforts right now may just lie in how you listen to and treat people.
  • To get comfortable with the discomfort of not having a crystal-clear road map. Exercising mental muscles for making the best decisions with available information, while the ground shifts underneath you, will position us all well as an uncertain future unfolds.”

Emergent: Following the true north and optimal strategic game plan in these uncertain times requires that new and emerging businesses pay close attention to consumers – and continuously dial how the brand and business behaves to serve their needs. What people want now is greater control over their lives and to invest in their own health and wellness. This is the path.

To the extent the brand lives in service of improving customer wellbeing, the opportunity for continued growth is achievable. The brand’s role here is as expert guide and coach on the consumer’s life journey. That principle should sit at the foundation of business decisions, marketing messaging and how the offer is presented to all stakeholders. 

Too often we see a form of brand narcissism unfold when the business celebrates itself and is in love with its formulation first, over its relevance to fulfilling consumer needs. Business is now built on reciprocity and that requires a less self-centered operating philosophy. 

Everipe is on a journey itself

As much as we speak about the consumer journey to fulfillment, meaning and purpose, so too Everipe is on a path to revolutionizing the smoothie and healthy beverage category. It will not be easy. Nothing of any real value ever is. Kerry’s comments are evidence of a remarkable sense of self and values that operates as guardrails for their decisions and provide a litmus test for their judgments.

We see great opportunity ahead. When food retail distribution re-emerges as a channel for their growth, we believe the evolving center store will become more of a curated location for higher quality, healthier choices. Everipe will likely be a star in that environment.

If your brand and business is on the hunt for fresh ideas, and improved brand storytelling, we’d love to talk with you.

Editorial note: Emergent would like to express our deepest appreciation to Kerry Roberts for participating in this story and helping to inspire and educate other brands now trailblazing a new healthier frontier in food and beverage.

Bob Wheatley is the CEO of Chicago-based Emergent, The Healthy Living Agency. Traditional brand marketing often sidesteps more human qualities that can help consumers form an emotional bond. Yet brands yearn for authentic engagement, trust and a lasting relationship with their customers. Emergent helps brands erase ineffective self-promotion and replace it with clarity, honesty and deeper meaning in their customer relationships and communication. For more information, contact Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

How to PREVAIL in the Midst of Uncertainty

June 2nd, 2020 Posted by brand marketing, brand messaging, Brand preference, CMO, Consumer insight, Emerging brands, food experiences, Healthy Living, Marketing Strategy, Navigation 1 comment on “How to PREVAIL in the Midst of Uncertainty”

Emerging brand navigates change at the speed of a SpaceX rocket launch

Over the last five years there has been an unprecedented shift in food culture to favor new and emerging food brands. These new brands have found traction by reinventing existing food and beverage categories or creating new ones with elevated recipes, higher quality ingredients and an ethos to go with it.

When the pandemic suddenly descended like a quick-forming Hurricane headed on-shore, we watched in earnest to see how these bright upstarts would weather the storm. On the one hand, these new businesses often fulfill the desire for healthier options right out of the gate. On the other, as young organizations without the deep cash reserves of legacy counterparts they can be vulnerable.

Among the new brands Emergent has been following is PREVAIL jerky. PREVAIL was founded and is guided by Glen Kohn in Chicago, a financial services investment expert (understands the balance sheet) who had a personal penchant for jerky making that turned into his life passion.

Answering a prevailing trend of higher quality, better for you

PREVAIL has reinvented the jerky category with a truly clean formulation that rids the meat-centric snack option of unwanted preservatives, horrific sodium levels, added sugars and ingredients that food allergy sensitive consumers can’t stomach. What’s extraordinary is the taste and eating experience, an uncanny ‘secret sauce’ ability of Glen’s products to deliver a jerky sensory bite but without the toughness often associated with dried meats.

We wanted to find out how Glen and PREVAIL were faring as COVID-sponsored upheaval sent shockwaves through many businesses that are in early stages of their development and growth curve. Glen graciously answered five questions intended to gauge the impact of the pandemic. We include our observations and insights following Glen’s answers.

Five Questions for Glen Kohn and PREVAIL Jerky

  1. In the last 60 days much has changed for emerging food and beverage brands. How has the pandemic impacted your business and what changes have you made in how you go-to-market?

Glen Kohn: “Many of our retail locations such as hotels, health clubs and coffee shops closed down at the start and some remain closed. Given what was happening around us in retail channels, we knew to retain our momentum we needed to pivot to online. On the ingredient supply side, we believed that beef prices would likely go up, so we got out ahead of the possible challenge in April and purchased 100% grass-fed beef to control our costs.” 

Emergent: What’s evident here was the quickness and resolve Glen and his team showed to get ahead of the shifts and do their best to keep the velocity moving. Especially important was the supply chain decision given the significant escalation in beef prices.

PREVAIL sells at a premium to other traditional category jerky brands. While the value proposition justifies the extra cost, in an uncertain economy, it is possible for price premium acceleration to hit a ceiling and generate resistance from users. Wisely Glen avoided the pricing meltdown. He also sidestepped taking a hit on slender margins by banking his supply.

  1. What specific shifts, changes have you created to your sales and marketing strategies?

Glen Kohn: “We quickly shifted to go after more e-commerce retailers, corporate snack boxes, and B to B online platforms. We also saw a spike and increased interest in Affiliate programs. Dollars that were allocated to retail channel tastings and events were shifted to bolster PR and social media spend.”

Emergent: Food retail industry watcher and guide Brick Meets Click recently published a report showing online grocery transactions were up 18% from 62.5 million in April to an astounding 73.5 million in May. Also in May, household penetration reached 33% as 43 million consumers shopped e-commerce channels for food and beverage. This is way ahead of earlier food industry studies that forecasted household penetration on a much slower ramp, and offers proof that the pandemic has caused an inflexion point with online ordering. Out of necessity consumers have become more comfortable with this shopping behavior. Glen’s pivot to emphasizing e-commerce was a smart move.

Trust is at a premium these days and now more than ever, people rely on the recommendations of other consumers to inform their brand selection decisions. Social proof is the most important mechanism to validate what Glen wants the world to believe about his product efficacy and to encourage trial.

  1. How have investors reacted to the COVID-19 situation and what do you think they’re looking for now from brands like yours?

Glen Kohn: “Food is definitely king now. As evidence, shelf stable, healthy snacks are booming. If anything, now is the time to invest in food and beverage brands while other industries such as travel and hospitality wrestle with systemic challenges to their business model post-pandemic. Investors will spend their money on businesses with strong ongoing sales traction.”

Emergent: Equity investors often point to company leadership and their business skills as a primary driver underneath their investment decisions. Glen approaches the business not just as a guy with passion and a great recipe, but also a business brain who isn’t hesitant to make decisions in the midst of uncertain conditions. Combined with better jerky category relevance and salience, you can see why Glen should continue to attract operating capital as he works to scale the enterprise. Stay-at-home conditions and protein snacking make great bedfellows. 

  1. How do you see consumer priorities and behaviors changing as a result of the economic uncertainty and lifestyle impacts of the pandemic?

Glen Kohn: “Consumers are increasingly turning to healthy foods during the pandemic. The food industry is one of the only industries to surge during this time. People are snacking more throughout the day and they are looking for healthy alternatives that the whole family can enjoy.” 

Emergent: The pandemic has ushered in significant transformational changes in consumer attitude and behaviors. In our recent article, “Health is the New Wealth” we outlined the sea-change in the reshuffling of priorities and needs for people. The COVID-19 event has dramatically demonstrated how ‘out of control’ the world can be, upending every single aspect of life, lifestyle and career. What is the one thing people can control in a seemingly uncontrollable world? Their investments to enhance their own health and wellbeing through what they put in their bodies and active efforts to take better care of themselves.

A healthy immune system is at a big premium these days. Brands that actively partner and help guide consumers on their journey to healthier living have an extraordinary opportunity to build a lasting and sustainable relationship. Glen sees this and his company is positioned to take advantage of it.

  1. What guidance would you offer to the founders and investors of new emerging brands that will help assure their continued development? What are the top three things you believe they should do to help ensure continued growth?

Glen: “From what we have heard and seen it’s best to diversify channel strategy and watch behavioral changes. We have seen brands that were primarily in one retail channel and were crushed when the country shut down.

  • Be nimble.
  • Cash is king.
  • Don’t be afraid to take a chance.
  • When the timing feels right be a first mover.” 

Emergent: During uncertain times when the future appears to be unpredictable and changes are occurring around you at unprecedented speed, occasionally fear can set in that causes businesses to turn inward and go dark as they “ride out the storm.” We have ample historical evidence that this is a recipe for disaster. Brands that continue to invest in their growth, in communication with consumers, that remain present and work quickly to adjust to the changes going on around them are likely to emerge in much better condition than those which retreat.

You can’t cut your way out of a recession. No question cash management and burn are fundamental business issues to address. That said, it is more important than ever to be a builder and as Glen says, a first mover.

A brand name that inspires consumers during uncertainty

PREVAIL is an interesting and compelling brand name. On a very visceral level it is aspirational to the consumer experience. People want to prevail over what looks at times to be insurmountable odds. This brand as guide, coach and expert authority can take the journey with consumers as a trusted source and resource.

The characteristics and drivers of successful brand building have changed as consumers seek deeper meaning and shared values with the brands they prefer. Equally, brands need to position themselves as partners in helping improve their consumers’ lives.

To help them prevail.

Emergent is expert in helping build new and emerging brands and businesses. If you’re looking for fresh ideas and perspective, let us know.

Editorial note: Emergent would like to express our heartfelt thanks to Glen Kohn for participating in this story. We appreciate his time and efforts to help inform the industry.

Looking for more food for thought? Subscribe to the Emerging Trends Report.

Bob Wheatley is the CEO of Chicago-based Emergent, The Healthy Living Agency. Traditional brand marketing often sidesteps more human qualities that can help consumers form an emotional bond. Yet brands yearn for authentic engagement, trust and a lasting relationship with their customers. Emergent helps brands erase ineffective self-promotion and replace it with clarity, honesty and deeper meaning in their customer relationships and communication. For more information, contact Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

How to Manage Your Future Success at Retail

February 14th, 2020 Posted by brand marketing, Brand preference, brand strategy, CMO, consumer behavior, Consumer insight, Emerging brands, shopper behavior 0 comments on “How to Manage Your Future Success at Retail”

The Vital Role of Velocity in the Growth of Emerging Brands

Every new, emerging food and beverage brand is a leap of faith for the founders. It’s also a leap of faith for the retailers who put those new products on the shelf. For this reason, a near universal yardstick is used to determine if the product is a winner and thus a longer-term player, or if it’s a bust and headed towards delisting. That unalterable path to traction and success, or lack thereof, is velocity.

Velocity in simple terms is the repeat purchase data that shows what happens following the initial run-up on trial after a product is launched at retail. The question retailers are attempting to answer: are purchases escalating as users come back again and again while new users continue to enter the top of the sales funnel?

For most new successful brands, a heavy category user audience has resonated to the product and fuels the outcome. Getting to this sweet spot isn’t luck of the draw or guaranteed once the product is on shelf.

There are two primary drivers of velocity:

  1. Memorability – the consumer remembers your brand name and seeks it out
  2. Effectively answering the “why” – every successful food or beverage has a primary ”why” that draws fans in time after time. The “why” can be defined as the primary dietary objective or problem that the product solves.

Both of these drivers are marketing challenges. Yet far too often, we find founders and investors preoccupied with the finer points of securing distribution gains (meeting with distributors and retail buyers), ingredient sourcing and manufacture (getting the product out the door) and financial management of both.

It may appear that the ability to scale the business is best served by adding more retail accounts or driving more traffic to the web site. While in fact, if velocity is not successfully managed, and the memorability and the “why” go unattended, greater risk is injected into the business.

Number one error going in

In the very early going before any brand equity exists, product experience is the primary reason why early adopters come back. Simply said, the promise is fulfilled in the eating and drinking experience. The product taste is a home-run and the expectations on healthier, higher-quality choice are delivered.

This means that in the early periods before any retail scale is achieved, it is vital to seek input and review from the product’s best users to determine if any tweaks need to be made to the recipe, texture or flavor profile. If the product is optimal then added distribution makes sense.

However far too often there’s a false sense of security embedded in the initial product experience win. This may prompt the brand’s owners to mistakenly believe once on shelf the product will sell itself. “If you build it, they will come” is a precarious trail to navigate because other key ingredients in managing velocity goals go unaddressed.

Bandwidth can be a challenge here because there’s already so much on the plate for founders in the day-to-day struggle to get the product made and off to distributors or retail outlets. More often than not, we find that business owners are not expert marketers and can at times assume that marketing consists only of social channel posts or sending out press releases. There’s much more to it than that.

How to manage velocity

Memorability is required to get consumers coming back again and again. This puts greater pressure on the web site, packaging and consumer-facing communication to bring the brand front and center in the context of the consumer’s needs and wants.

However, it is right here where the most frequent fundamental errors are made. Most emerging brands cast the story upside down. They believe the story should be about themselves and their product attributes and benefits. When that happens, the story is embedded with a disconnect right out of the gate, because it casts the brand as the hero.

Every consumer, every day wakes up believing they are the hero of their life story. When the brand presents itself as a hero, it competes with the consumer for that role and people walk on by in search of a guide to help them solve their needs. The construction of the story is paramount, with the consumer as hero and the brand operating as the expert guide and coach on their journey.

The story is about them, the consumer, and their wants, needs, concerns, aspirations, desires and challenges. The consumer needs to find themselves in the story you are telling. Then and only then will they engage and listen.

This is the path to relevance, an essential ingredient in effective marketing strategy.

For the most part new, emerging businesses are b-to-b players, devoting most of their time, energy and communication to investor, trade and distributor audiences. So, it’s no surprise the skill sets in consumer-facing outreach may not be fully developed. The story creation is a top priority and is best done by experienced, creative marketing brains who have the skill sets to build it, and then move the story in earned, owned and (later) paid media channels.

This leads us to the second key element of velocity – the “why”

There’s a key message that needs to be addressed in all forms of outreach from package to outbound communication. What is the primary dietary need or want your product solves that keeps people coming back? Insight research is vital here to determine what the “why” is. Is it weight management? Is it energy? Is it an indulgent reward? Nearly every food and beverage category has a heavy user audience whose purchase frequency is a vital component to achieving velocity objectives. Interviewing these heavy users to get your arms around the “why” is vital to managing velocity because the answer should become a focus of your messaging and hammered everywhere.

People are interesting creatures – we all are – and we never tax our brains if the message is too complicated or dense. Far too often new brands turn their packages into a Heinz 57 variety of claims and benefits in the hopes that one of the many bullets will register. However, consumers will not invest the time and energy to wade through all of that to find something – anything – meaningful to them.

Instead they move on.

Simple, clear, concise messaging is incredibly important especially in a retail setting where the consumer may allocate only a second or two of brain time before they walk past. This explains the importance of the “why” and how it becomes a core area of messaging focus in an effort to simplify what’s being conveyed.

The role of emotion

Another key insight – people are not analytical, fact-based decision-making machines. We are led by the heart over the head. It is the feeling people have in the presence of your brand that impacts whether they are drawn closer or repelled.

Emotional storytelling is important because it respects what we know about people and how they operate. The emotional stories of improvement or change experienced by users can be a vital component of bringing this insight to life. Authentic, real stories are more powerful than the old “that’s why we” tropes of traditional, self-promotional advertising.

“Trusted” is the desired result – and that is best earned through honesty, transparency and a brand voice that is human and real, not ad-like.

Video is an excellent medium for emotional storytelling because words, pictures and music can be combined to achieve that effect. Unscripted testimonials can be valuable here because they’re authentic, relate-able, and honest.

Intentional message design

Words matter. Dialing in emotion, the “why” and a more human, conversational voice are important when creating consumer-facing outreach. It’s harder than it looks and must be done with intention.

When memorability and the “why” are correctly brought to life, velocity outcomes can be managed in earnest. When you know that your heavy users have found themselves and their needs in this incredibly exciting brand and its mission – and are responding as hoped – real velocity management has begun. The scale will come.

We can help you build the right story.

Looking for more food for thought? Subscribe to our blog.

Bob Wheatley is the CEO of Chicago-based Emergent, The Healthy Living Agency. Traditional brand marketing often sidesteps more human qualities that can help consumers form an emotional bond. Yet brands yearn for authentic engagement, trust and a lasting relationship with their customers. Emergent helps brands erase ineffective self-promotion and replace it with clarity, honesty and deeper meaning in their customer relationships and communication. For more information, contact Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

Enjoy Life prospers

Can emerging food brands prosper inside the big mother ship?

November 25th, 2019 Posted by brand marketing, change, CMO, Emerging brands, Food Trend, Growth, Healthy Living, Insight 0 comments on “Can emerging food brands prosper inside the big mother ship?”

Enjoy Life proves the case for unicorn in the herd

Enjoy Life Foods enjoys the enviable position of being intentionally unique and differentiated by virtue of the market it serves. Have you noticed the skyrocketing increases in the number of people with various forms of food allergy? My oldest daughter is one and many families these days have someone in their circle with a digestive rejection problem.

Of note, some experts believe the rapid ascent of allergen free foods is due to compromised immune systems, in part to blame from the cultural and technological shifts that help assure children will be exposed less and less to bacterial and viral hazards. It is contact with these microscopic threats that puts the immune system activity into higher gear. Use it or lose it?

Enjoy Life offers 86 SKUs of products created and designed to give allergy sufferers a shot at snack and sweets bliss with unconventional (entirely) clean recipe solutions. They are crafted with a staggeringly high intolerance for anything in the product creation process that could introduce an allergen somewhere along the path. Such is their franchise and commitment to becoming a trusted solution for people with food allergies.

Enjoy Life is an acquired brand of Mondelez, the spinoff of the Kraft Foods break-up that resulted in today’s Kraft Heinz packaged foods behemoth alongside the snack and sweets oriented and equally hefty Mondelez International operation. In either case we’re talking about big food.

Joel Warady, who leads the Enjoy Life team and has been on board there since its early days, is a bit of an iconoclast in the belly of the Mondolez whale, but it works and works well. Perhaps Enjoy Life offers a model for success to the innovation-challenged legacy packaged foods industry looking to stem the tide of fractional annual growth or share losses. Of late, many legacy CPGs are seeking the cachet of high quality, mission-oriented food brands by investing in or acquiring the fledgling company’s rapidly scaling share and market presence. The food world has turned upside down ever since the barriers to entry evaporated for independent food start-ups.

“Acquiring companies like Mondolez have learned, and sometimes the hard way, that it’s best to let these emerging businesses continue under their current management teams and without a lot of interference,” said Warady. “The challenge is figuring out how and where to help, usually with R&D and distribution support or providing ingredient sourcing efficiencies and pipeline scale.”

Warady believes Enjoy Life has been a success story because key strategic decisions are largely left in their own hands. “We’ve had some embedded executives from Mondolez along the way, but for the most part we operate as we did before the acquisition only with more resources at our disposal,” he said.

Legacy food companies like Kraft and Mondolez have greater challenges on the product innovation front due to their size, and cultural habits that work to wring out risk. It’s a point of view that has caused them to routinely favor line extensions over disruptive, unproven and yet demonstrably higher quality food ideas that are popping up everywhere.

Now, the magic and heat index in food innovation is coming mainly from entrepreneurs with a vision for solving a neglected corner of the market like Enjoy Life. Other successful ideas offer a preparation or ingredient twist that inspires a new category such as Beyond Meat that imitate the texture, flavor and mouthfeel of genuine animal-based meat. These plant-based proteins are more widely targeted to those whose values supports the overall mission (whether clean eating, regional sourcing, minimized carbon footprint, etc.) – not just aimed narrowly at serving Vegan interests.

Enjoy Life was designed from day one to be a difference maker in the lives of people suffering from allergies. It helps when you solve a real problem that has existed for some time but neglected as a niche business and ignored by companies that at one time believed if the volume isn’t a billion dollars within 15 months of launch, it isn’t worth pursuing.

Ingredients for Success

Warady offers some guidance for founders and acquirers alike:

  1. For founders, it’s important to know that food safety and sourcing standards – a pillar of strength for large CPG companies – is often lacking with start-ups and can be deal killers once a strategic investor starts to poke around. Thus for founders, it’s important to have consultants scour every corner of the supply chain ahead of a strategic conversation to help clarify areas of opportunity and deal points.

 

  1. For acquirers, it’s vital to recognize the secret sauce for emerging brands is often held in their story that combines mission and values often with a more artisanal product solution that completely redefines what quality means. Best to let them operate independently to help support and retain the trust they’ve earned.

 

  1. Because the path to market is completely different, emerging businesses can be extraordinary places to test new ideas and limited-edition products, while learning best practices. The old recipe of big TV advertising budgets mixed with quarterly price promotions isn’t resonating like it used to, and is antithetical to the more conversational, user experience-oriented world of emerging food and beverage.

Importantly, emerging food brands like Enjoy Life come to market embedded with deeper meaning and a higher purpose that transcends the more transactional genre of volume, velocity and profit.

Not that growth and profit aren’t equally important to the success of new food businesses, but these soul-driven companies recognize the path to riches is paved in reciprocity and relevance to the consumer’s interest in shared values.

Bottom line: the recipe for success inside big food is to allow the acquired businesses to retain the very lifeblood that makes them successful. Their sheer disruptiveness and uniqueness must be honored and fueled while maintaining the often higher quality sourcing commitments on which their recipes are based.

It is the user experience that sits at the foundation of early success for emerging brands – before there’s much of anything to talk about in brand equity. That said, smaller resource- constrained businesses will benefit greatly from a benevolent investor or owner that fills strategic gaps and helps nurture the business, providing expertise or capital where it can make a difference between a base hit and a grand slam home run.

Joel Warady and the Enjoy Life team sit as a worthy example of how remarkable innovation can prosper inside a much larger organization, continuing to dance to the beat of its own drum while offering a roadmap to the future of the food business.

Looking for more food for thought? Subscribe to our blog.

Bob Wheatley is the CEO of Chicago-based Emergent, the healthy living agency. Emergent provides integrated brand strategy, communications and insight solutions to national food, beverage, home and lifestyle companies. Emergent’s unique and proprietary transformation and growth focus helps organizations navigate, engage and leverage consumers’ desire for higher quality, healthier product or service experiences that mirror their desire for higher quality lifestyles. For more information, contact Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

Think Beyond: Lessons in Disruption from Beyond Meat

November 18th, 2019 Posted by Brand preference, brand strategy, change, CMO, Consumer insight, Emerging brands, Emotional relevance, Growth, Healthy lifestyle, Integrated Communications 0 comments on “Think Beyond: Lessons in Disruption from Beyond Meat”

Guidance on how to hit the food brand home run

Poised to create and capture the next wave in center-of-plate meal preferences, Beyond Meat is scaling at break-neck speed in both grocery and foodservice channels, throwing off sparks of insight to all emerging food brands who will listen about the new path to relevance and glory.

At Chicago’s recent Good Food Financing conference produced by the venerable Jim Slama of Family Farmed and Good Food Accelerator, keynote speaker Seth Goldman held the audience of embryonic food brand founders and equity investment executives in rapt attention while delivering a data driven highlights reel of business home run after home run. The score sheet demonstrated in dramatic fashion how Beyond Meat’s team is leading the nascent meatless meat invasion, while disrupting conventions and traditions of the legacy animal-based proteins industry.

Within Goldman’s engaging recap of refrigerated beef patty without the beef, was a significant revelation to all of the strategic leaps Beyond Meat achieved. “Animals are really four-legged bio-processors of plant materials, converting the ingredients to meat,” he said. Thus, meat in truth actually comes from plants, and Beyond has amazingly reverse engineered the components of meat structure to imitate and recreate the same bite and flavor characteristics of the animal variety.

Said Goldman: “Our goal is to enable consumers to eat what they love.” Right there was respect for what consumers want, and a vault from making vegetarian meat for vegetarians to making plant-based meat for meat lovers. The foundations of this strategic narrative are critical and inform how the entire Beyond story unfolded. Within his story is a living example of what separates ‘just another one’ from a meaningful innovation that influences consumer behavior and informs the future of food.

It worked because this plant-based juggernaut fully delivered on its promise to replicate the animal meat taste and texture eating experience. “Traditional veggie burgers look to us like a plot by the meat industry to make sure plant-based versions aren’t a threat because, let’s face it, they don’t taste very good – and I’m a vegetarian,” Goldman reports.

Meanwhile the plant-based category table is set for dinner:

Trend lines seem clear that plant-based anything is on the way up, as consumers “flex” their preferences and look for what they believe are healthier alternatives that are friendlier to the environment but which also deliver fully on taste experiences consumers crave.

According to IPSOS, 54 percent of consumers say they’re trying to consume fewer animal-based foods and eat more plant-based options. What’s going on here? Shifting values mixed with health and wellness is what’s going on. SPIN Scan data reveals that refrigerated plant-based meat is up 37 percent year on year to $212 million in sales.

No surprise, it is outpacing animal meat sales. Within the $270 billion US meat category, plant-based share is under 1 percent. The upside is significant and bodes well for Beyond as first mover and brand perception leader in the space.

Mintel’s 2018 “Better for you Eating Trends” study provides evidence of why it’s best to strike when the macro trends are working in your favor. In their national survey, Mintel found across all four primary age segments, consumers said they agree with the following statements:

  • Plant-based protein is healthy – yes for 74 to 80%
  • Plant-based foods are better for the environment – yes for 47 to 63%
  • Plant-based functional claims are trustworthy – yes for 35 to 56%
  • Plant based foods are better for you than animal options – yes for 42 to 50%

Dollar sales for plant-based meat in the aggregate, frozen or fresh, is $801 million and rising rapidly.

By the way, this form of market-opportunity-assessment matters for the business plan!

Emergent Guidance on the Path to Victory

Surveying the adjacent exhibit hall of new, emerging food and beverage brands, Beyond stood as the “A” lister in a field of hopefuls who bare their heart and soul daily in product concepts that authentically align with higher quality, more artisanal and healthier food solutions now fueling the renaissance in Good Food. The acid test, however, is can they redefine the categories they’re playing in or will they plateau among a collection of similar offerings with similar stories and similar preparations.

The secrets to outsized success continue to follow six repeating themes:

  1. Think Differently Going In

It would have been logical and expected for Beyond – founded by Ethan Brown, a vegetarian – to exist in service of that ethos and segment, working to create a better product for this devoted marketplace. But the mental leap to create a product for meat lovers caused the entire R&D development process to rally around a specific standard of performance and outcome with a moonshot at a VERY big market. Vegetarians are roughly 5% of the population and have remained anchored at that level for some time.

The goal to build an analog to meat inspired the revolution unfolding before us.

  1. Disrupt the Space You’re Entering

Beyond Meat defied the conventions and expectations of its veg foundation, opting to swing for the meat department case fence. Beyond could have easily been a frozen product in the vegetarian section freezer case. Instead they pushed and cajoled retailers to merchandize their products alongside animal meat, and in doing so, not only accentuate the perception that this was a legit option to a beef product, but also meet the meat shoppers where they shop.

Entrepreneurs would be well advised to look for extreme disruption, major departures, unconventional solutions, big moves on the perception chess board that constitute uniqueness.

Legacy food brands often suffer from a recurring illness we refer to as line extension-itis. Read as, adjustments, incremental improvements to an existing idea that don’t ultimately reframe the category.

Relatively minor improvements to ingredient strategies, recipes, preparation techniques or story may not be enough to inspire the kind of attention and magic that leads to new category creation, the zenith of best-in-class marketing opportunity.

  1. Focus on Taste Satisfaction

Formulation can be a fickle friend. While hitting benchmarks on nutritional label improvements and better-for-you metrics, taste sometimes gets marginalized. I will never forget my first bite of a Beyond Burger at the Chicago Restaurant Show, in a backwater booth buried in the better for you zone, where curiosity got me up to the table. And then – Holy Cow – I swore it was a ‘burger burger,’ not a veggie burger. Relentless search of optimal marriage between culinary and taste considerations with healthier is paramount. Taste wins every time.

  1. Place the Right Bets

Most people believe that plant-based anything is healthier, but Beyond wisely did not elect to make nutritionals a predominant part of their go-to-market game plan. For the simple reason, that pound for pound a Beyond Burger isn’t necessarily a traditional nutrition label winner. Yes there’s no cholesterol, but…

Instead Beyond wisely pursued a values-based messaging platform weighed against the environmental tax exacted by raising animals who compete for natural resources. Beyond Meat tells us their product creation process (compared to animals) consumes or produces:

79% less water

93% less land

90% fewer greenhouse gases

46% less energy

  1. Tell Your Story, everywhere your customer or stakeholder can be found

If Seth isn’t a walking, talking personification of this point, I don’t know what is. Goldman the Ambassador of Beyond is everywhere, bringing the remarkable news of the company’s outsized performance to any and all who will listen.

These business and media audiences are chocked full of content creators and reporting types like me who turn around and do what I’m doing here.

We extol emerging brand companies — be careful not to  short sheet the brand building process early on. Yes, cash is at a premium and yes, resources are limited, but the “if we build it they will come” mentality is a recipe for small ball. All marketing is strategic storytelling. You have to invest here and sooner rather than later.

It takes experienced hands to shape and inform the consumer-ready brand story efficiently and with great impact – thus, why Emergent exists. We’re good at this, but then again, we’ve been doing it to great effect across multiple categories and honed our communications techniques and strategies.

  1. Relentlessly Innovate

Goldman will tell you the Beyond Burger today is different, and better, than the Beyond product was when they first got traction. He claims the company has 70 scientists at their Manhattan Project campus in California, working around the clock to improve their taste, recipe and nutritionals – and to innovate new products like the recent Dunkin ‘Beyond Sausage Sandwich’ for the hand-held breakfast crowd. Don’t rest on your laurels, don’t stop working to make it better and to search for the next meaningful adjacency where the product concept can go to solve yet another problem or capture another market opportunity.

Be careful, however, to avoid extending your brand in areas too far afield of your core equity where the proposition dilutes rather than builds on what consumers believe is your expertise.

While the barriers to entry have fallen away for emerging food and beverage ideas, and yes everyone knows it won’t be easy, there are key ingredients in here that spell the difference from modest growth to something that looks like Beyond Meat.

Our Offer…

So we make this offer: let us come in and conduct an audit, no cost, of your current platform, product concept, supply chain, and business opportunities. We’ll provide an assessment and make some recommendations and if you agree, perhaps we can partner on a future path to business transformation.

You have nothing to lose and everything to gain. Let me know.

Looking for more food for thought? Subscribe to our blog.

Bob Wheatley is the CEO of Chicago-based Emergent, the healthy living agency. Emergent provides integrated brand strategy, communications and insight solutions to national food, beverage, home and lifestyle companies. Emergent’s unique and proprietary transformation and growth focus helps organizations navigate, engage and leverage consumers’ desire for higher quality, healthier product or service experiences that mirror their desire for higher quality lifestyles. For more information, contact Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

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