Posts tagged "growth"

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.

Transparency Is a Brand Trust Generator

November 10th, 2019 Posted by brand marketing, Brand preference, brand strategy, CMO, consumer behavior, Consumer insight, Emotional relevance, Higher Purpose, Pet food, Pet food marketing, storytelling, Transparency, Validation 0 comments on “Transparency Is a Brand Trust Generator”

Case study: How to become a truly transparent brand

The impact of the ‘always on’ digitally-enabled world we live in is an emerging consumer desire to know the backstory and details of how products are created. Not surprising when you factor in the number one lifestyle concern for people across all age segments is health and wellness. This seek-to-understand behavior is transforming the human and pet food industries.

In parallel, consumers now care deeply about the businesses’ respective mission, purpose, and authenticity – seeking to connect with brands which share their values. As a result, consumers want to understand what’s in the food they’re buying and how the company’s standards and mission are brought to life inside the products they make.

Why is this happening?

Relevance:

First, consumers have connected the dots between the quality of what they ingest and the quality of their lives. People care about the foods they’re eating – and want to know more about them. Equally true for pet food.

Belief:

Second, because of eroding, declining trust in the claims and assertions made by brands about their products – consumers are seeking objective, credible sources of information to help them make their own informed judgments.

Personally symbolic:

Third, purchases have become emblematic of what people want the outside world to believe is important to them – so they seek reassurance of high-quality ingredients, ethical standards, healthier and made sustainably.

The concept of Transparency has floated to the top as shorthand for this intense, growing desire to experience and verify what brands claim about their products.

Why this should matter to you:

Consumer trust precedes any kind of relationship and willingness to engage with a brand or product. Trust is earned, not inherently owned – and is based on intentional investments (that don’t look, smell or feel like advertising) to secure it.

If you want your marketing to be welcomed (rather than click to avoid) and believed, then trust is a fundamental requirement. Transparency provides an operable platform for how this is achieved.

What is transparency?

Being truly transparent is about openness, disclosure, access and operating in a trustworthy and forthright manner. Call it actively encouraging observation, scrutiny and reporting from outside sources.

Verifying and validating what you want others to believe about your quality and integrity commitments creates the opportunity for a meaningful conversation with consumers and stakeholders. Respect and reputation are not commodities that come along with simply existing. They are difficult to create and hard to hold onto over time.

Best practices case study: Champion Petfoods

Disclaimer: this is a platform Emergent created and brought to life for Champion after a comprehensive audit of their operations, strengths and unique company commitments.

It goes without saying the pet food industry universally demands trust from its core customers. Given the nature of the product form (ubiquitous brown kibble) pet parents are required to buy into the statements and claims made by brands concerning ingredient quality and how the food is prepared.

Driving this interest is the intense desire pet parent have to express their love for their pets through the quality of the diet provided. Engaged pet owners try as best they can to discern product labels to understand the meaning of words, phrases and insider language used in the pet food world (like meat meal).

Still, a trust gap exists between what’s claimed by brands versus what can be credibly verified.

  • According to a recent study reported in Pet Food Industry magazine, 75% of consumers are willing to switch from their current brand to one that provides more in-depth product information than what appears on the physical label. That’s up from 39% in 2016.

Champion Petfoods is at the forefront of the protein forward, meat-focused, biologically appropriate approach to what has been popularly described as ancestral diet. The company’s early success was attributed to pioneering the focus on percentages of high-quality proteins in the recipe. Champion uses comparatively high levels of fresh and raw animal meat respectful of the physiology and eating anatomy of dogs and cats.

Additionally, to deliver on their mission the company started early to invest in an extensive network of regional farms, ranches and fish supplier partnerships to provide real food ingredients, many within driving distance of their kitchens. This helps enable Champion to be fully transparent about their ingredient sources, sustainability commitments and aligned production standards for its Orijen and Acana brands.

The Champion Transparency Council

The Transparency Council platform was created by Emergent, to address consumers’ evolving need to know more, and in so doing, begin a new conversation with them that addresses their questions about ingredients and safety, nutrition and quality.

This more earnest and authentic approach – galvanized by the Council’s independence and third-party voice – manifested as a sophisticated content engine designed to cement trust and generate a more informative and engaging brand communication.

Highlights:

Emergent conducted a comprehensive recruiting effort for expert Veterinary physician members and a social media based public search for two pet parents to join the four-member Council.

Their mission:  to observe, verify and report on everything Champion does related to making pet food.

Given the significance of trust and transparency to the Council’s mission, it was critical to leverage Champion’s unique supply chain relationships, state-of-the-art kitchens and knowledgeable personnel to underscore the integrity of its stated Biologically Appropriate pet food mandate.

Outcomes:

  • The Council delivered an ongoing content creation platform that carries with it the authentic voice of outside third-party experts and pet parents, offering valuable communication that people want rather than seek to avoid.
  • Champion secured the mantle of Transparency industry leadership at a time when this is an important consideration on the path to purchase.
  • Champion went from zero to 60 quickly as an industry leading editorial voice, in part because the Council and its activity was precedent-setting and newsworthy for the industry.

Emergent Guidance:

  1. Transparency is best served with embedded credibility, using the voices of independent, third parties to report and verify what the company claims about its products.
  2. Openness is a prerequisite and underscores a perception of inclusiveness and honesty.
  3. Seeing is believing, so the deployment of third parties helps fuel an ongoing source of reporting that, over time, can evolve into a channel of helpful, useful guidance on issues and topics important to core customers.
  4. Transparency-based information is ready-made for social channel distribution and helps close the loop on what brand fans believe and say is the reason for their advocacy and brand evangelism.
  5. We have left the era of brand-voiced assertions of performance, and entered a time when trust is paramount and earning it is a requirement for success. Invoking the transparency word in a sentence isn’t nearly as powerful as backing it up with authentic behaviors and actions.

If you’re exploring the power of transparency and would like to know more details about this case study and the tactics, activation and media we deployed, let’s find a time to 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.

FIVE BIGGEST PITFALLS TO NAVIGATE IN TRANSFORMATIONAL CHANGE

May 22nd, 2014 Posted by brand marketing, Brand preference, change, Growth, Healthy Living, Insight, Navigation, Uncategorized 0 comments on “FIVE BIGGEST PITFALLS TO NAVIGATE IN TRANSFORMATIONAL CHANGE”
Fork In The Road

Change requires a decision. Which path will you take?

Understanding Implications of the Culture Shift to Healthy Lifestyle

By Bob Wheatley

Legacy categories like soft drinks have taken a hit. The supermarket footprint is in the midst of evolutionary change to push more space in fresh and prepared foods at the expense of center-store packaged products. Research shows a pervasive preference for foods and beverages with a healthier halo.  Organic produce is appearing in Walmart. Industry leading growth in foodservice is coming from upstart newcomers – from hamburgers to food trucks. Protein is the new black. Higher quality is now table stakes for any food, beverage and household products business. And incidentally if you’re not truly mattering to your core consumer, you’re a commodity.

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IT’S THE GARAGE EXPERIENCE IN YOUR HEAD

May 8th, 2014 Posted by Growth, Insight, Navigation, Transformation, Uncategorized 0 comments on “IT’S THE GARAGE EXPERIENCE IN YOUR HEAD”
Vintage Garage Door Covered With Rust And Chipped Paint

Big ideas spring from living the “garage” experience…

Secrets to innovation lie in aspiration combined with consumer empathy!

By Bob Wheatley

You’ve heard the stories: Google, Apple, H-P and other silicon icons and business category disruptors all started in a garage. So will the NEXT great leap — perhaps the ability to teleport yourself anywhere instantly, solve America’s obesity crisis or build engines that run on oxygen — be birthed and incubated in a garage? That’s apparently where innovation and the next generation’s leading transformational brainstorm and company will be invented, right?

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IT’S IN JAMBA

July 29th, 2013 Posted by Brand preference, Healthy Living, Human behavior 0 comments on “IT’S IN JAMBA”

Jambasmoothieshot

What’s outside allures; what’s inside matters

By Bob Wheatley

Beverages made with whole fruit and vegetables provide a great tasting, portable source of nutrition. Sounds pretty good, right? Well it’s in Jamba, literally. Even so people don’t always make decisions purely on the logic driven plane of “good-for-you” – we are also emotional creatures who crave indulgence, happiness and surprise. How do you blend these two behaviors? Read on…

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