You hear a lot these days about how consumers are no longer loyal when it comes to CPG food and beverage brands; that they quickly trade-off for private label or newer, emerging brands. And this is quite true. But I’d like to suggest that “brand loyalty” is largely a myth fabricated by overzealous marketers. One of the many snake oil sales tactics in this business.
Functional foods. We’ve all heard the term. We know that in the past functional foods were considered to be foods that had a potentially positive effect on health beyond their basic nutritional value. For instance, oatmeal contains soluble fiber that can help lower cholesterol. Or salmon is an excellent functional food because the omega-3 fatty acids can reportedly decrease the risk of heart disease.
But today, functional foods mean so much more to both consumers and brands.
When I was a teenager, my dad would say, son “clean up your act.” Basically, he was telling me to get the crap out of my life that was dragging me down. And, today, for food brands, I would say the same thing…you need to “clean up your act.”
The bottom line is that we live in a new era of food. Consumers simply expect more from the food brands they buy. The bar is higher than it was 10-15 years ago. Even “clean label” has been taken to an entirely new level; real ingredients, nutrition, functional benefits, claims, certifications, sustainability, and on and on.
Many CPG food brands are continuing to see record sales growth. However, there are many questions that accompany this growth…How long will this growth continue? When will this spike start trending down? Should we increase capacity? How can we reach and retain the new households that have purchased our brand—some for the first time? Will we see sustained growth? If so, what will it be…2%, 5%, 10% or more?
“Consumers are currently purchasing my brand 5 times. If I could increase their buy rate to 6, I could grow sales by…” I’ve heard this theory/thought-process a thousand times. And the fact of the matter is—it doesn’t work. If your goal is to grow your brand, this strategy will never get you there.
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Due to the current COVID-19 crisis, food and beverage companies are having to navigate unchartered waters when it comes to sourcing raw materials, workforce sustainability, retailer demand, consumer consumption, and overall brand management. Read more…
We are living in very unique times for food and beverage brands. In years past, brands could simply keep producing and selling the same old “go-to’s” year after year. Sometimes decade after decade. And maybe come up with a new twist, flavor, or product extension every few years.
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There’s lots of great things happening in the world of food. Innovation is at an all-time high. Brands are working hard to clean-up their labels and ingredients. Sustainability is top-of-mind. And, better-for-you, healthier foods continue to grow.
