Posts tagged "emerging trend"

Building Trust in the Midst of Fear

March 15th, 2020 Posted by Brand preference, brand strategy, change, Consumer insight, Emotional relevance, food experiences, food retail strategy, Food Trend, Higher Purpose, Human behavior, Navigation, Pet food, Restaurant trends, Social community, Social media, Transformation 1 comment on “Building Trust in the Midst of Fear”

Efforts to create, innovate and communicate will inform your brand’s future

You’ve undoubtedly run across the ‘dystopian future’ movie storyline, usually brought on by some cataclysmic disaster with intrepid or hysterical survivors running into a grocery store, only to be greeted by empty shelves while wading through torn packaging detritus everywhere. I had this movie-like experience only last night at the Mariano’s supermarket nearby. I witnessed the fear-driven cart Olympics mad dash as aisle after aisle of products were emptied save a lone, bruised apple and a dented, torn box of cereal left dangling precariously on an otherwise barren shelf.

Uncertainty and media drama are partners in the perceptual stew that pushes people into behaviors normally reserved for cinematic storytelling. Fear of the unknown grips as the house now achieves safe haven sanctuary status and toilet paper becomes one of the most elusive, rare and sought-after commodities in the nation.

Keep Calm and Carry On

In 1940 at the height of the Blitzkrieg (The Blitz) that showered Great Britain with bombs in the night, dropped indiscriminately on London neighborhoods, the government released its now famous poster Keep Calm and Carry On. This statement became a dominant theme embraced by incredibly brave British citizens in the face of unrelenting catastrophe and sharpened their resolve to weather the life-threatening storm.

Right now, today, you have an opportunity to help your customers Keep Calm and discover the opportunities presented by a large dose of enforced family time and homebound adventures and experiences. Creative, innovative thinking and generous outreach is the required skillset.

Lemonade from lemons

The foodservice industry is taking it on the chin. In Seattle, the hardest hit city in the nation from COVID-19, business has virtually disappeared from restaurants as people remain home. Arguably Seattle’s finest dining establishment, Canlis, an iconic example of culinary quality that has led the dining scene there for decades, elected to close.

Chef-owner Tom Douglas told Restaurant Business magazine revenue was off by 90%, which might as well be 100%. Nonetheless, Douglas’ response was instructive to us all. He announced the opening of three concepts based out of Canlis kitchens that will serve the takeout, drive through and home delivery market segments. The Bagel Shed will offer breakfast options; Drive on Thru will provide lunchtime burgers, veggie melts and salad; Family Meal will offer a rotating menu of dinner entrees and a bottle of wine delivered to your door. A creative deployment of solutions and assets that helps keep the team employed while answering the opportunity for off-premise consumption business.

Salve for Uncertainty

Communication, and lots of it, is required in these unprecedented times. Your motivation is not only to inform users of what your business is doing to keep the flow of goods and services they need safely in motion, but also to express care and concern for their health, wellbeing and happiness.

The schools my daughters attend are now closed. My youngest is a dancer, and her classes and performances have been cancelled. My oldest is an ice skater and the rink is shut and practices stopped. What we have going is each other, our wonderful dogs, more time together and adventurous spirits.

How can your brand operate as coach and guide for family activities, more hands-on experiences with the pets, and a renewed focus on home-prepared meals? With no sports, no concerts, no large group events of any kind, the marketplace may well be listening and consumers more open to engagement than ever before. There are certainly wayyy fewer distractions competing for precious attention.

Your brand’s ability to operate as an enabler and resource is important in this environment. Social communities can become outlets of shared experience. In Chicago, the Nextdoor online community bulletin board is on fire as people share thoughts, ideas and concerns on the changes occurring before us. One of the most active conversations is around the status of fresh food supplies in local supermarkets and guidance on who has what.

People want to share and engage with each other

We have arrived at a new era where businesses increasingly understand they are about more than manufacturing, retailing and commerce. Companies have discovered their growing role in authoring the greater good. This self-discovery opens the door to building a more human and approachable brand that understands relationships with users are increasingly like real, human friendships and the natural reciprocity that exists in that personal dynamic.

When brands talk, walk and behave in a more human and relate-able manner, they become more resonant and trustworthy. You have been handed an extraordinary opportunity to help people in the midst of a trying storm. Empathy is a great characteristic and will serve you well as people embrace your voice of reason and support.

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.

Coronavirus Call to Action for CPG and Retail

March 13th, 2020 Posted by Agency Services, CMO, consumer behavior, e-commerce, Emotional relevance, food retail strategy, Human behavior, Insight, Retail brand building, Social media, Supermarket strategy, Validation 1 comment on “Coronavirus Call to Action for CPG and Retail”

Your next moves to retain trust and reputation

Right now, your consumers are worried, bewildered, concerned and uncertain about what shoes might drop next. They are being sent home from the office, schools are shutting, sports and entertainment events are gone, Spring break vacations are upended, and the future impacts of the pandemic are hard to predict.

We know you equally have concerns and are working hard to address any uncertainties. We’re with you and know your heart is in the right place.

This is a significant moment on the continuum where brand trust and reputation can be secured or injured. What you do next will matter, and it’s important to note that communication may be one of the most important assets at your disposal.

  • Honest, transparent messaging breeds trust and feeds patience, while silence will fuel uncertainty and dilute confidence.

Number one: communicate early and often

This is not the time to be quiet. If you make or sell a consumable product, especially food, beverages or pet food, people are worried about what comes next. Here’s what they want to know, right now.

For CPG

  1. Is there anything going on in your supply chain that will negatively impact the availability of your products? You may not have all the answers but it’s better to communicate current status than to stay silent. What you don’t know you state as such.
  2. What’s happening in your manufacturing, whether that be your own facilities or co-packers, with respect to employee activity, plant hygiene, and mitigation plans should people be sent home?
  3. What are your standards, methods, procedures on maintaining vigilance over ingredient integrity and safety, and testing for same through the product creation process?
  4. How can they get your products and services online? We know that feels like a ‘water is wet’ type question but it’s important and should be addressed in these conditions.

For retailers

  1. Are you able you keep customers apprised of out-of-stocks and shelf replenishment schedules?
  2. Can your pharmacy experts set aside scheduled time for by-phone consultations or online Q&A’s?
  3. Are you signaling home delivery wait times when capacity is stretched?
  4. What are your food handling an on-premise hygiene policies and procedures to help avoid any contamination?

The message matters

Your voice in this moment will impact the outcome. It’s important to avoid corporate speak, industry jargon and complex, “inside baseball” forms of messaging that only an employee can unravel.

A human, approachable voice including information that is presented with clarity and transparency will resonate with those you wish to reach. People routinely ignore dense, complex, analytical-style messages. Simple is better.

This is not the time for grand standing, self-promotional and brand-anthem style outreach that attempts to pass over the reality of what’s happening. Instead, empathy and care for the health and wellbeing of your users should ring through everything you release or post.

Next steps

  • Publish updates and trust-enhancing content at your web site and in your social channels on a weekly basis. More often if you have new news to share.
  • Keep it simple and straightforward.
  • Encourage dialogue and conversation at your social sites to invite questions from fans and followers.
  • As the situation changes, keep your stakeholders informed.
  • Be generous of spirit and look for “surprise and delight” opportunities and stories for users and channel customers. Celebrate helpfulness, acts of kindness, and ‘we’re all in this together’ kinds of inspirational unity.

Navigation leads to reputation

Your efforts to be accessible, approachable and honest here will lead to respect and confidence among the stakeholders that matter to the future of your business. Both internal and external audiences will benefit greatly from your efforts to keep them apprised of what’s going on.

As always should you need help navigating these uncharted waters, we’re here to support you with guidance, messaging, copy, media and anything else you might need.

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.

Emerging Trend: The Personalization of Food

February 27th, 2020 Posted by brand marketing, brand strategy, CMO, consumer behavior, Culinary lifestyle, food retail strategy, Food Trend, Healthy lifestyle, Healthy Living, Higher Purpose, Insight, Transformation 0 comments on “Emerging Trend: The Personalization of Food”

Creating hyper-relevant products for the marketplace of one

Have you noticed over the last 20 years palates have become more sophisticated? Quality expectations around menus, ingredients and preparations have grown alongside the rising popularity of celebrity chefs. Elevated cooking is everywhere. A genuinely satisfying culinary experience can now be had at the neighborhood gastro-pub. Great food experience is just an arm’s reach away. This is evidence of a food culture shift.

Equally so, food literacy has jumped with the treasure trove of content available online that satisfies the consumer’s thirst to know more about the food they put in their bodies. This concern got traction when people generally connected the dots between the quality of the food they consume and the quality of their lives. People now understand that diet influences the foundation of health and wellness, and sub-optimal nutrition may contribute to the onset of disease. More culture driven transformation.

An outcome of being in constant control is the marketplace of one

While the importance of food-to-lifestyle goals climb, the consumer’s ability to control every aspect of brand engagement, curation of the information and media they ingest has changed their expectations and their worldview. Culturally, people no longer buy the idea of one size fits all, and this applies equally to dietary sensibilities and food regimens.

The North American CPG food business is evolving towards a market of one. It hasn’t fully arrived yet, but the signs are emerging around a desire for more personalized and customized food and beverage solutions. A recent report on this topic by The Hartman Group cites the growing interest in individualized and hyper-relevant products and food experiences.

This step into personalized nutrition is already being reflected in dietary preferences, shopping behaviors, food preparation skills and techniques and most of all, consumption. What’s coming soon is the marriage of personalization and customization with health and wellness to redefine the future of the food and beverage business.

Factors influencing the personalization trend can be seen in the consumer’s growing interest in biomarkers. When people start to pay attention to DNA kits and reports, blood glucose levels and microbiomes, it is an outgrowth of the desire to truly understand how to optimally fuel oneself. We are all unique and our lives impacted by how we are assembled from the moment we arrive on earth.

  • By the way, this emerging trend in human food will crossover to pet food at some point because the same rules apply.

Be-spoke menus and meals

People want to tailor the food they eat to their needs and preferences. I like the ordering line at Chipotle for that very reason. I can get the burrito exactly how I want it. What’s going on there is a sense of control that sits at the foundation of its appeal. We ask the question: how can food and beverage businesses answer the desire for greater dietary control?

One way to look at this is to follow the thread of dietary concerns that are gaining momentum.

Here are some leading-edge areas ripe for innovation and fresh perspective:

  • Stress, anxiety and sleeplessness
  • Neuro health
  • Aging and beauty
  • Microbiome (gut health and inflammation)
  • Independence and mobility
  • Food as medicine

These emerging concerns sit alongside the long-standing stalwarts of weight management, energy boost and clean eating, and are now demanding more attention in the aisles at your local supermarket.

Note that all of these emerging nutrition considerations bear witness to the intersection of food as a primary driver of health and wellness. Nutrient density sits at the front door of defining, for the consumer, what is indeed healthy food or drink. From a marketing viewpoint, it’s important to mention here that relevant health & wellness markers such as fresher, less processed, locally and sustainably sourced, simple recipes/labels, real food ingredients and higher quality, matter because of what they represent to a novice or less trusting base of potential purchasers.

Not far away is the growing list of avoidances that accompany the consumer’s food literacy advances. Essential especially for legacy CPG brands to be aware of these concerns and to optimize their formulations to steer clear of problem areas like GMOs, hormones, antibiotics and preservatives.

What can be emphasized here is a prevailing consumer desire to accumulate positive nutrients, in an effort to improve and better manage health and wellbeing. When beef jerky becomes a positive contributor to wellbeing with cleaner labels and vastly improved recipes, you know goodness can be created just about anywhere. Check out Prevail Jerky.

Emergence of new food and beverage is symptomatic of cultural shift

With the barriers to entry for new food and beverage concepts near zero, the marketplace is awash in improved ideas touting higher quality ingredients and simple labels to legacy categories . It is a reflection of consumer interest in better-for-you.

So, too, will the desire for more customized solutions gain momentum as it mirrors the consumer’s view that who they are, what they want and their perceived unique needs and preferences.

  • Answering this call will be the next great revolution in food as businesses work to create more options that answer the desire for hyper relevance.

Functional shopping at the store

Increasingly people are shopping for attributes – looking for solutions to the dietary challenges they face. Food retail today doesn’t offer much help in this context. Online searches for energy solutions doesn’t necessarily serve up a relevant menu of alternatives.

Personalization and customization reflect a growing interest in finding answers. Label Insight has landed on this and is working to provide digital platform solutions that enable food retail shoppers to search by attribute, especially important when faced with a store environment of thousands of SKUs. What’s in the health and wellness aisle when options in this area become more pervasive across the entire store?

The consumer’s move towards hyper relevant food is a huge consideration for brands related to what’s in the wings for product improvements and formulations. You can’t make these assessments from a distance. Consumer insight research, more than ever, is required to best determine the pace of this evolution and how the consumer considers this from a product attribute and shopping perspective.

Consumer-centricity is the path to your success

  • The consumer has to be at the center of strategic planning
  • Assessments of how consumers see personalization requires getting close-in on their needs
  • Retailers should then support how consumers want to shop for foods with various health & wellness attributes
  • Retail shopping experience matters more than ever, and these insights can help create that roadmap

Insight and Emergent

Your goal is to build relevancy in an era of constant and rapid change, where cultural shifts are redefining the business based on the consumer’s desire for personalized food solutions.

We help clients with this form of discovery research, and then help build strategic plans to translate insight into an innovation and marketing communications game plan.

Want to know more? Let’s talk.

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.

Simple, clear, concise communication needed in pet care business

The re-graining of the pet food business

February 12th, 2020 Posted by brand marketing, Pet care, Pet food, Pet food marketing, storytelling 0 comments on “The re-graining of the pet food business”

Will shift feed further confusion?

If anyone has any questions about the power of editorial (earned) media to impact consumer behavior and swing marketplaces, look no further than the DCM crisis of 2019 and the FDA’s announcement stumble.

The FDA publicly announced an investigation into an asserted link between certain grain-free diets and the onset of a heart condition known as dilated cardiomyopathy (DCM) in dogs. They included brand names of pet foods fed to some dogs included in the study. Irrespective of the merits of the investigation, whether or not a tangible connection exists to dietary formulas, the assertion of DCM (allegedly instigated by grain free foods) sent shockwaves through the industry.

Consumer uncertainty quickly followed. Most brands made a concerted effort to investigate, analyze and educate users. At the same time, a number of industry players who had previously embraced the grain-free juggernaut that has defined category growth outcomes for nearly a decade, quickly formulated alternative diets that use ancient grains, wholesome grains or a version of this. The objective was to answer any pet parent who is worried and wanting to make a switch – and keep them in the brand family.

Like anything, when a business launches new products, efforts are made to distribute it, gain shelf placement and promote to buyers. This momentum generates a self-fulfilling prophecy by helping bifurcate the premium market and throw a cooling trend on the sales heat that has followed grain-free pet food for a long time.

On-set of grain-free march to fame

The real momentum driver of the grain-free phenomenon can be traced back to the Menu Foods crisis of 2007 as hundreds of pets perished when tainted melamine ingredients from China showed up in US pet food. The fracturing of the industry, however, really resulted from a revelation that one company, Menu Foods, was manufacturing more than 100 brands of pet food. This stunning surprise to the consumer marketplace reversed decades of brand building that implied pet brands themselves were carefully preparing unique food solutions in their own kitchen, while also refocusing pet parents on examining what’s really inside that bag of kibble.

Smaller boutique brands that had quietly made higher quality, more protein forward foods jumped into the spotlight and web sites sprang up right and left to weigh in on recipes, ingredients and a redefined view of what constitutes a healthy, quality pet food. The emergence of ancestral diet that connected wolves to dogs and what animals would eat in their natural habitat, fed the grain-free segment headline as use of corn and related low-cost ingredients was vilified.

Marketplace confusion

Universally, human beings have an unassailable quirk – they refuse to tax their brains when confronted with complicated or confusing messaging. People quickly opt out and refuse to engage if the story is too dense or requires a PhD in nutrition science to understand what’s going on.

The merits of grain-free food have been a foundational aspect of pet food communication for years. As is always the case, the story generally attempts to elevate grain-free solutions at the expense of grain-based diets that had been a hallmark of the pet food industry historically.

The march to protein specsmanship was on after 2007 and the pet food business category posted year to year volume and share gains for brands that removed grains while adding protein. The story of meat-based diets made intuitive sense to people if you buy the wolf connection and that dogs and cats are essentially carnivores.

Now grain-based solutions begin to come back as a response to the FDA moves on DCM, opening another industry chapter, while at the same time creating a potential stew for communication disconnects. The finer points to grain or not to grain aside, while this appears on the surface to simply be offering choice, another gambit opens when these two formulations compete for attention and potentially contribute to confusion on the merits of both.

The antidote to pet food marketing confusion

Simple. Clear. Short. Concise messaging will be necessary to navigate the re-graining of pet food. No taxing of brains allowed. If the pet diet is primarily protein based, and the source of those proteins are from animal, poultry and fish, then the role of grains or legumes isn’t a mission critical part of the nutritional delivery story.

That aside, this emerging condition offers pet brands an exciting opportunity to enhance engagement and relevance. The love pet parents have for their pet is an important area to mine for communication that resonates — without adding to confusion on the grain and re-grain debate. The human/animal bond steps outside the protein percentage messaging wars to provide a rich arena for relevant brand-to-consumer conversations.

Transparency in the supply chain is yet another pathway into the product quality story that doesn’t require stepping on the jargon landmines of formulation detail and nuance. Trust and belief are paramount and best served when consumers can see the openness and honesty manifest in how the brand behaves and what it communicates about product creation.

In sum, clarity and emotion are two fundamental anchors for pet food brand communication that can help steer wide of the potential confusion of grains vs. no grains.

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.

Serving a Narrower Audience of Devoted Fans is a Recipe for Success

February 6th, 2020 Posted by brand marketing, Brand preference, brand strategy, change, consumer behavior, Consumer insight, Culinary lifestyle, Emotional relevance, Insight, Navigation, storytelling 0 comments on “Serving a Narrower Audience of Devoted Fans is a Recipe for Success”

One brand’s story of transformational growth.

Awhile back we represented Sargento Foods, today the leading brand in dairy case cheese. When we started, Sargento was looking for a new chapter in its legacy as a packaged cheese-specialist, family-owned company. However, the Sargento business was challenged with rampant category commoditization – cheese is cheese is cheese. The segment share leader was store brand, providing ample evidence that consumers primarily bought on price.

  • Our goal was to transform the business by reinventing the dairy case cheese category. In doing so, devise a competitive advantage for Sargento that would change the landscape against historic branded segment leader, Kraft Foods.

Working in collaboration with Brad Flatoff, Sargento Chief Marketing Officer, insight research was commissioned to dig into consumer segmentation and behaviors in cheese use. The effort unearthed an evolving consumer relationship with food. A new and important audience was emerging, roughly 26% of the category overall, who were heavy cheese users and had a budding love affair with food.

  • This food-savvy audience formed the foundation of the Food TV Network’s expanding fan base.
  • They love being in the kitchen, or on the culinary receiving end, appreciated higher quality cooking and ingredients.
  • They could tell you about the functional differences of knives and pans they used in the kitchen.
  • They bought cookbooks for inspiration and subscribed to culinary magazines.
  • They were, as characterized in the study, Food Adventurers.

As is often the case in high volume, high velocity businesses, Sargento had cast themselves for years as the choice for everyone and anyone. This thinking ironically contributed to a form of water-treading stasis that held the brand locked in a third-place share position.

Then, a remarkable thing happened. Executive leadership agreed to let the marketing team redefine the target user, narrowing in on Food Adventurers and working backwards from that profile. We built a plan that redefined the category, the product composition, the packaging, pricing strategy and communications.

In short, Sargento elected to become the premium brand in the dairy aisle and play to food quality cues the Food Adventurer would recognize and embrace. Instead of trying to be all things to all people, Sargento wisely decided to pursue an audience that was invested in food experience and paid attention to the ingredients they used.

A new product line was created called Artisan Blends that combined artisan style cheeses with Sargento classic flavors. The step-up line was priced at a premium to other products and the packaging got a make-over to accentuate the tone and visuals of a European more premium esthetic. But most importantly, the messaging was changed, and the communications tactics moved to align with Food Adventurer ambitions in the kitchen.

  • Our strategy put the brand in league with a specific set of consumers as they participated in culinary discovery and pursued elevated taste experiences. Sargento became a sponsor and participant at the South Beach Wine and Food Festival, among other events. Celebrity Chef Michael Chiarello was retained as a spokesperson and cooking videos were created with him.

Bottom line: the gears were put in motion to carve a new future based on relevance and resonance specific to a food fan consumer.  Becoming important to a segment of the marketplace rather than defaulting to the all-things-to-all-people approach. Since then the retail channel business has transformed and the future, with help from the company’s enormously successful Balanced Breaks snack product line, is on a different trajectory.

Bold moves make for big results

To a large degree the success of this shift was in the hands of Lou Gentine and his son Louie, now CEO. Their willingness to swing for the fence and re-position the business led to the outcomes that have paid lasting dividends.

The lessons here come directly from the consumer and insight into their food needs and interests. Asking, how can we be of greater value to them and make a difference in their lives? When we brought the insight research to life, all aspects of the marketing mix were refocused on how we could build relevance and value with this audience and help them on their culinary journey.

Brand strategy guru Bernadette Jiwa summarized the approach in a recent post:

“Like most of us with something to say, serve or sell, they [marketers] have to do a better job of speaking to only their right customers. They don’t depend on the footfall of mass awareness—they thrive on the loyalty of minority affinity, built one customer at a time, over time. They understand what their customers want, they make promises, then show up consistently, week in week out, without fail to keep them.

There is no one-size-fits-all marketing strategy. The tactics we use must align with our goals and the goals of the people we want to serve. How are you creating affinity with the minority of people who enable you to do your best work?”

The Sargento case study is a great example of the benefits of narrowcasting and marketing bravery.

  • When you decide to go all in with an audience that cares, and then cater to their wants, needs and aspirations, the results can be very satisfying – even transformative to the business.

This would not have happened without the insight research investment up front that, with trained eyes, unearthed the Food Adventurer target and their culinary aspirations. Armed with this understanding, the marketing plan became a lesson in ‘mattering’ to an audience of food fans. The impact on message and media was a powerful testament to why smaller engaged audience segments can have a significant impact on the balance sheet.

Can we bring this kind of fresh perspective to your business? Let’s talk.

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.

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.

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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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