Archive for category: Beverages & Drinks

How Brands Can Compete with Amazon’s CPG Subscriptions

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With technology at our fingertips, consumers all over the globe have experienced many conveniences–one in the form of online shopping. In a study conducted a few years ago, it noted that the e-commerce of consumer packaged goods rose by 42%. In fact, Amazon accounted for more than 20% of all the CPG growth.

Scott Galloway from New York University said that Amazon is dominating the retail industry and is undoubtedly evolving. But what makes Amazon the epitome of the retail industry? Simply put, the company delivers its products fast and simple. The brown packaging contains exactly what the clients ordered – no frills and flair involved.

The preference of people to get consumer packaged goods from Amazon has caused fierce competition for the smaller retailers. Although this may spell impending doom to Amazon’s competitors, there are still ways to compete with Amazon, and the secret lies heavily on owning the contact information of their customers so they can build their database and analyze purchase behavior analysis. Creating a competitive subscription service is the key, but, how can this be done?

Create A Dedicated Subscriptions Channel

Dedicate a subscription channel that can handle and connect with consumers. Customer service is critical. For bigger companies, look for a younger yet promising employee who exhibits management skills and IT skills to man the subscription channel. By doing so, they will be in-charge of making real-time reactions to different market conditions and make decisions based on what the customer wants and needs.

 

Do A Trial Run

Before introducing a subscription, it is important to perform a trial run. The test size for the trial run should be sizable enough that it is statistically significant. It should be marketed on different digital channels and must be done in different variations so that management can determine the best product offering. This means that the trial should involve many (even hundreds) of subscription orders to be able to pinpoint which one justifies the cost per order and the scalability of the campaign. Once the specific subscription has been identified, it is important to do continuous testing as digital channels are always evolving, what works today might not work tomorrow.

Partner with A Subscription-Focused Vendor

Launching a subscriptions campaign requires constant research. Smaller companies can take advantage of hiring technology vendors to create programs for e-commerce, analytics, as well as customer service. While creating a program in-house is easy, the systems necessarily do not communicate with one another and they are not scalable. Partnering with a vendor can provide experienced people who can work on a fully integrated solution, resulting in a faster transaction, better customer experience, and accurate data. Smaller companies can benefit from subscription channels but having their own in-house team to manage can be difficult, so partnering with experienced vendors provides the best solution.

Inspired by www.fooddive.com

Growing Demand for Organic Ingredients Leads to Supply Challenges

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The need for fresh ingredients by consumers has led many farmers to go into organic farming. According to data provided by the USDA, the number of organic farmers in the US has increased by almost 300% since 2002. This growth is to meet the demands of consumers who prefer organic foods more than those grown in conventional methods.

Why Is It Difficult to Completely Go Organic?

Although there is a rapid increase of organic operators in the country, it is crucial to take note that only about 0.7% of the total operable farms within the country are classified as organic.  Many farmers pointed out that the main reason why converting their conventional farmland to organic is difficult because it is expensive as well as time-consuming. In general, farmers have to wait for at least three years to be able to convert their farms. Unfortunately, during the first year of turning their land using organic practices, the produce that they grow is not sold at organic prices. Meaning, they are still paid cheap even when they are spending more on organic practices. This is leading to the supply challenges in the market.

Solutions to The Supply Challenge

To solve the supply challenges, farmers are given several incentives to make the necessary switch. These include the Environmental Quality Incentives Program (EQIP) that offers first-timer organic operators the right technical assistance to grow food the organic way. But, it is not only the government that provides support. Even food manufacturers, as well as retailers, have supported and implemented programs just to encourage farmers to boost their harvest. In fact, companies like Nature’s Path Foods, Whole Foods, Organic Valley, and Stonyfield Farms have provided grants to organic farmers to boost their production.

While organic farmers can supply the needs of food retailers and manufacturers, another problem is where to source specialty ingredients that are not grown in the United States. The solution proposed by the government was to get into digital platforms like Mercaris Auction Platform or GreenTrade.net to trade tons of organic products into the market.

All stakeholders are doing their best to provide the resources needed by the consumers. For instance, the Organic Trade Association was set up to provide suppliers and manufacturers the necessary information about their produce such as where to source their supplies, market data, and real-time pricing.

On the other hand, retailers like restaurants and grocery stores have also worked closely with organic farm operators to give them the idea of how much they will need to sustain their businesses. For instance, retail giant Walmart has worked with local organic farmers by giving them the outline of how much they need for the entire year so that the farmers can strategize on how they will be able to deliver the demands and needs of the end users.

The truth of the matter is that, while organic farming is prevalent, the number of organic operators is still not enough to be able to create a sustainable supply of products to the retailers and consumer product companies.

Inspired by www.fooddive.com/news

Top 10 Food Trends to Watch at IFT 2017

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In April, Food Technology magazine editor, Elizabeth Sloan, published an extensive article on the top 10 trends in the food industry. IFT 2017 in Las Vegas will be a great opportunity to see how ingredient companies are trying to meet the new priorities on healthy, natural, and nutritional focused offerings.

Here is a look at the top 10 trends to watch at IFT 2017 Las Vegas.

1. Prep It

Partially prepared foods are winning in-home supper preparation. According to FMI, 53% of shoppers used some semi-prepared foods versus on 35% that cooked from scratch. In 2016, sales of clean/preservative-free frozen meals reached $2.3 billion. Convenience continues to drive brands to develop quickly prepared foods and meals to meet the consumer’s lifestyle.

2. Lifestyle Foods

46% of the time Americans are eating alone with single adults making up 28% of all U.S. households. It’s no wonder that single-serve packaging and individual multi-packs are seeing increased demand. According to Accosta, 74% of people agree that frozen snacks are convenient at work which highlights that single-serve, on-the-go packaging could increase frozen snack sales substantially. People are now eating more early morning meals, and they are focused on nutrients and protein. Brands have to take a look at how lifestyles are changing to make effective decisions with new product development going forward.

3. Kid-Specific

Baby, toddler, and kid-focused products will grow rapidly as Millennials start to settle down over the next few years. According to Euromonitor, sales of infant formula are expected to grow to over $50 billion worldwide in 2017. Vitamin and mineral fortified, digestive health, eye health, organic, non-GMO, and all natural are top claims on leading formulas. In a report from IRI, they concluded that 40% of all snack sales are from households with kids. Packaged Facts found that 49% of all moms say that nutrition is the top food selection factor with 23% wanting to see more foods with hidden veggies. Bottom line, kid-focused products that appeal to the health conscious parents are winning.

4. Nationalism

A new pride in products made in America will drive increased sales for American cuisine, ingredients, and comfort food. Southerners and households with kids are most likely to buy and eat American made products. Another trend driving this new nationalism is local sourcing for grocery stores and restaurants. According to FMI, 66% of all U.S. shoppers are interested in meats raised in the United States with 60% believing that foods from China pose health risks. American pride is at a high again, and it’s a significant trend for natural products companies to look at carefully.

5. Nutrition

Consumer demand for a healthy lifestyle with simple application continues to gain steam. According to Nielsen, nutritional/supplement bars, drinks, and meal replacements with among the top 10 fastest growing food and beverage categories in the U.S. IFIC reported that 64% of adults tried to get more protein in their diet with 56% looking for more vitamins and minerals. CRN found that 75% of adults take a multi-vitamin daily. The protein gold mine has been most successful in the healthy snacks and frozen entrees categories according to Nielsen. The biggest missed opportunity according to IRI is in snack nutritionals with 60% of consumers looking for energy boosting snacks and 57% seeking snacks with more vitamins and minerals. Nutrition is easily the hottest trend to look out for at IFT 2017.

6. Dinner Redesigned

80% of all households prepare meals based on alternative proteins to meat/poultry at least once a week with the main reason being health according to FMI. Vegetable based “carb substitutes” are a fast growing trend at the dinner table with vegetable noodles and fries at the top of the list. New dinner trends will be important to look at as companies develop new entrees for this meal.

7. Ag Alternatives

 

Americans are currently experimenting with more plant-based meals. According to NRA, 40% of chefs still cite vegetarian and vegan cuisines as hot culinary trends in 2017. SPINS data showed sales of plant-based food and beverages increased to over $4.9 billion in 2016. Over past 4 years, claims around chia, quinoa, and kamut have been among fastest growing grain-based wellness claims. According to Nielsen, 62% of shoppers bought a food product because it contained fruits and/or vegetables. The new superfood on the block is the mushroom, especially for immune-boosting benefits. New plant alternatives are leading innovation in one of the fastest growing segments of the industry.

8. Upgrading

For the first time in 2016, men were more likely to buy specialty products than women. According to Anon, Sushi is outpacing bakery snacks and breakfast wraps. However, cheese remains the largest specialty category as usual. NPD found that more people are eating meals at another person’s home which is leading to explosive growth in home entertaining specialty foods. Gourmet foods are growing and will be a category to keep your eye on going forward.

9. Claim It

The best marketers and package designers are using claims and copy to convey benefits more quickly to consumers. According to Mintel, the number of “on-the-go” claims increased by 54% over the past six years. The fixation on a clean label has led to more free from, natural, and nutrient content claims. Nielsen found that 70% of all shelf-stable products will most likely be impacted by the new US FDA added sugar labeling requirements. Many sustainable claims around grass fed, free range, etc. are being perceived as healthy. Claims are crucial to attracting consumer attention and closing the deal at the shelf.

10. Natural Living

Consumers are intrigued by living a more natural, chemical-free, sustainable lifestyle. According to Nielsen, products with an organic claim saw a compound annual growth rate of 14.8% over the past 4 years. Natural claims drove growth in natural snacks like candy and cookies. Consumers want minimally processed foods with fewer ingredients, which is somewhat a headache for manufacturers.

Artificially Sweetened Soda Can Increase Risk Of Stroke And Dementia

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Drinking artificially sweetened soda and drinks have many health risks including stroke and dementia. In a study published in the journal Stroke and Alzheimer’s & Dementia, researchers linked the consumption of sodas to the increased risk of dementia and stroke.

The Validity Of The Study On Artificially Sweetened Soda

The long-term observation study involved 2,888 people who provided data since the survey started in 1971.  The researchers found out that those who drank at least one can of diet soda daily are three times more likely to develop Alzheimer’s disease or suffer from an ischemic stroke.

Although the statistics suggest the possible link, many experts still caution people who interpret the results of the study. They noted that while there is an association between soda drinking and such diseases, it does not mean that drinking can cause these conditions to develop.

Other Factors That Can Increase The Risk For Stroke And Alzheimer’s

Some critics have highlighted several flaws in the study citing that if factors such as weight, genes, and diabetes were taken into account, the association with stroke and dementia would disappear. The thing is that defects in the genes, obesity, and diabetes are more likely causes of stroke and dementia than drinking a can of diet soda.  So why arrive at such a correlation? Critics point out that it is probable that the people involved in the study are already suffering from ill health such as diabetes. These patients are more likely to opt for zero-calorie drinks thus influencing the result of the survey.

Experts still suggest that drinking fizzy drinks should be in moderation as drinking too much is attributed to weight gain–a more plausible cause for stroke and Alzheimer’s.

Is It Safe?

Studies involving the harmful effects of soda on health hurt the beverage industry all over the world. In response to the bad publicity, the American Beverage Association issued a statement regarding the safety status of artificial sweeteners as highlighted by international organizations like the World Health Organization, US Food and Drug Administration, and the European Food Safety Authority. Beverage companies claim that the amount of artificial sweetener or any sweeteners for that matter that they use on their products do not go beyond the established limit set by these agencies.

But whether artificially sweetened drinks has some health risks or not, the sales have still declined as consumers are looking for healthier alternatives such as low-calorie and naturally sweetened drinks as well as bottled water.  Surprisingly, the sales of bottled water overtook the sales of fizzy drinks in the United States last year making bottled water the largest beverage category regarding volume consumed per capita.

Another reason why the sales of the sugary drinks industry have declined is the taxes imposed on them discouraged people from buying them. Last year, sales decreased by 21% due to higher tax rates. So regardless of the result of the study linking soda with stroke and Alzheimer’s disease, the industry is struggling with selling a product does have some adverse effects on your health.

Inspired by www.fooddive.com

Video: Best Sources Of Plant Proteins And Why You Need To Eat Them

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People have a good relationship with meat. This is the reason why animal protein consumption has risen immensely compared to 50 years ago. But because animal protein has been linked to various diseases, there is an increase in the number of consumers who opt to consume plant-based proteins.

The Benefits Of Consuming  Plant Proteins

In research conducted at Harvard University, people who consume plant proteins have a better metabolism than those who consume just animal proteins. This led people to have a lowered risk of developing obesity. In fact, increasing your consumption of plant proteins is associated with as low as 10% risk of premature death.

Unlike animal proteins, plant proteins do not come with added nitrites and nitrates. This is particularly the case for processed meat. Opting for organic plant proteins that are chemical-free, helps reduce inflammation in the body.

Another reason why it is crucial to consume more plant protein is that they contain a lot of fiber.  Plant sources of protein are namely chickpeas, legume, lentils, grains, and beans. These contain a lot of fiber that can help keep the digestive system functioning optimally. Shifting towards plant protein is good because studies have noted that an average Western diet is deficient in natural fiber. Fiber is also necessary because it serves as fuel for the good bacteria living in your gut.

But aside from fiber, plant proteins also contain high amounts of vitamins and minerals like folate, iron, zinc, magnesium, phosphorous, and potassium. They are also cholesterol-free making them good for the heart.

Perhaps the biggest advantage of eating plant protein is that it is very affordable. If you buy animal protein, it typically costs two to three times as much as plant sources of proteins. Lastly, it is also good for the environment as the carbon footprint in maki a plant-based protein is less compared to growing animal meat.

 

How To Eat Plant-Based Proteins And The Best Sources

Eating plant proteins can be fun. Unfortunately, some people do not eat them because they do not know how to prepare them. One of the most effective way to prepare plant protein is to sprout them especially if you have beans. Sprouted legumes have benefits as they increase the absorption of nutrients in the intestines. Another way of preparing plant protein is to take them in powder form. However, make sure that you avoid powdered plant proteins that contain additives and artificial sweeteners.

If you are planning on introducing more plant-based proteins to your diet, then there are good sources of plant proteins that you can choose from. You can get your daily protein needs by eating at least a cup of black beans, chickpeas, chia seeds, sunflower seeds, almonds, edamame, lentils, pumpkin seeds, lima beans, green peas, spinach, brown rice, kale, quinoa, and Brussels sprouts. Other sources of plant proteins can come from all types of leafy green vegetables, nuts, and seeds.

Consuming plant-based protein has a lot of benefits not only to your health but also to the environment. Make sure that you incorporate them in your diet as often as you can.

Inspired by www.huffingtonpost.com

Evolving Views of Healthy Eating Strain CPG Sales

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The consumer packaged goods industry sky-rocketed after World War II when people suddenly realized that it takes a fraction of a time to prepare meals with processed foods than with whole foods. Consumer packaged goods (CPG) are sold quickly because they are convenient and useful for a variety of household jobs. Fast-forward today, the popularity of consumer packaged goods is starting to dwindle as more consumers are becoming conscious about their health and the environment.

Corporations Are Suffering In Sales Decline

In fact, the sales of consumer packaged goods have started to decline as observed during the first quarter of 2017. But this isn’t news and brands knew that consumers shifted to using healthy and environmentally-friendly products. Giant CPG manufacturers have reported a decline in their sales. Companies like PepsiCo, Procter & Gamble, and Nestle have all reported lower CPG sales but are still expecting things to pick up soon.

In a survey conducted by Nielsen, the purchase of consumer packaged goods in the United States has dropped by 2.5% in unit sales in the first quarter. Most of the companies blame the dip in sales to the changing mindset of their customers.

Reason For The Sales Decline

Customers these days demand fresh and healthy foods, which most CPG companies are not experts in manufacturing. The changing mindset of consumers forced major food manufacturers to reformulate their products to contain less salt, preservatives, and sugar. Aside from reformulating their products, they also rebranded their image by offering more health-focused products.

While such initiatives will help big manufacturers pick up their sales, analysts notice that more major brands still find it difficult to gain back traction as smaller startups are emerging and filling the needs of consumers. Startups are in better position to adapt to the changing requirements of the customers. According to Nielsen, startups are growing at a steady rate of 2.4% annually. This is probably the reason why many big brands are also looking into investing in smaller companies.

Startups Taking The Lead

So why is it difficult for major manufacturers to rebrand their image? These big companies have always been known for their products, and that is their legacy. Changing the reformulation of their products may lead to the alienation of their core customers who might not like the new taste and appearance of the new product.

For instance, Coca-Cola experienced a rebranding disaster during the 1980s when it revamped its formula and offered Diet Coke, but they were still able to pick up their sales and move forward soon after. Still, consumers have a mindset that if the product from a smaller startup has similar nutrition profile than its counterpart produced by giant companies, then they will opt for new things. Most consumers believe that startup companies can offer new things better than well-known CPG brands.

Inspired by www.fooddive.com

Eating More Plant Proteins Can Reduce The Risk Of Diabetes

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Plant protein benefits are currently widely studied and acknowledged by doctors, scientists, and nutritionists. Plant-based food manufacturers are developing different products to provide many options not only for vegans and vegetarians but also for new flexitarians.

Researchers have noted that many people eat too much meat and not enough vegetables and fruits. The National Institute of Health issued a guideline for physicians to recommend to their patients to eat plant-based proteins as an alternative to animal protein and as an effective way to reduce the risk for high cholesterol levels, high blood pressure, high BMI, cancer, and type 2 diabetes.

The Study On Type 2 Diabetes And Eating Plant Proteins

Latest studies reveal that consuming less animal meat, particularly processed meat and replacing it with nuts, whole grains, and other plant-based sources can significantly reduce the risk of type 2 diabetes.  In fact, a study published in the British Journal of Nutrition noted that eating even a hundred grams of unprocessed meat every day can increase the likelihood of getting type 2 diabetes by as much as 19% while consumption of processed meats was linked to a 51% risk.

The long-term study involved 2,332 Finnish men between the age 42 and 60 years old. The respondents were examined according to their protein intake and their risk for type 2 diabetes. The study found out that replacing 15 of calories from animal protein with the same amount of plant protein can decrease the possibility of type 2 diabetes by as much as 18%.

 

The Shift From Animal To Plant-Based Proteins

New research concerning the harmful effects of red meat on health has pushed many consumers to eat healthily. In fact, the consumption of red meat in the United States fell by 33% since 1970 to about 101 lbs. per individual per year while the number of vegetarians has remained stable at 3%. Meanwhile, the number of vegetarian products has doubled over the past decade.

Studies about the health benefits of plant-based diets have encouraged some meat eaters to incorporate more plant proteins in their meals. This has also led to many food companies like Tyson to invest in companies like Beyond Meat.

While it pays to be a vegetarian, the Academy of Nutrition and Dietetics noted that not all vegetarians are equal. For instance, vegetarians who consume eggs and dairy can get their daily dose of healthy protein while vegans need to eat a broad range of grains, nuts, and beans to supplement their protein needs.

More and more people are encouraged to eat plant proteins, and food manufacturers can play a paramount role as they fill this particular niche.

Inspired by www.fooddive.com

Effective Packaging Design Is Key To A Successful Start-Up Brand

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In today’s social media-driven world, the competition of food and beverage brands can be tough. No longer should companies settle on traditional commercials on TV, print ads, and radio. Brands are now placing importance on effective communication through design.

Packaging design is an important element in getting a particular brand into people’s minds and hearts. An effective packaging design can catch the attention of the consumers encouraging them to engage and buy new products.

Why Is Effective Packaging Design Beneficial?

Packaging design is beneficial for start-up companies, and they don’t need to enlist the help of a million-dollar advertising firm to get their message across their clients. Never underestimate the power of an effective packaging design because coupled with social media advertising, it can catch the attention of people from around the globe.

Startup companies who wish to make their brand well-known should seek the help of an active brand designer. Startups need to communicate with the brand designer to incorporate the potential of the product in the branding and also make it appealing to its intended target market. Knowing the target market is crucial in designing the packaging that will conform to the preferences of the targeted consumers.

For instance, the company Bear produces kid’s snacks, and it went to great lengths to create an effective packaging design while incorporating collectible cards and codes to make it look fun for children. By the end of 2015, the company became the largest children’s fruit snack company in the United Kingdom.

 

Adding Personality Is Important In Packaging

Every brand needs to show people the company’s unique personality. It is important to take note that packaging is the unspoken way of making introductions. A package design that is unpretentious is considered more appealing for everyone. In most cases, using humor and wit is very useful in branding, which can be evident in the logo, type of fonts used and other elements used in the brand. It is important to take note that none of this wit and humor will be useful if the product isn’t also good. Simply put, effective branding should conform to the quality of the product being represented by the packaging.

Effective branding due to package design always works best if the product is made out of passion. If a product is conceived out of passion, everyone–the creator, brand designer, and consumers–will all believe in the product that is being promoted. Without passion, startup companies find it hard to sell their products even if the packaging designs are appealing.

The success of a startup relies so much on the brand designer and how he or she can turn words and visions into reality–a real brand. A brand designer does not only understand the market, but they also know the product and the company. With an effective packaging design, everything is balanced.

Inspired by www.foodbev.com