In today’s newsletter:
Context Matters: Real world, meet product
Bright Branding: Why is everything neon?
The Problem with Plant-Based: Your Expectations
Things I’m Watching: Vitamin-fortification on the rise? ‘Surrounding’ your product occasion
Tidbits: Quick links to fun food news
Did you miss last newsletter? Find it here
Context Matters
Kraft-Heinz announced last week the regional US launch of Homebake 425°/:30, a new line of frozen mix-and-match meals, sides, and veggies. The company has used proprietary technology to allow users to cook all the separately packaged components at the same oven temperature (425°F) in the same length of time (30 minutes). This means that consumers can heat the Pulled Pork with BBQ Sauce and it will be done at the same time as the Homestyle Mac & Cheese and the Green Bean Casserole. No user strategizing is necessary as to when to start different components to assure everything is hot for serving. The company plans to roll out the product across the US throughout 2023.
So What? In 2002, Gillette (a P&G brand) wanted to produce a new disposable razor for the Indian market. Research had shown that Indian men had thicker and denser facial hair than European men, so the company developed an innovative mechanism to cleanly clear the hair from the razor with each rinse. They named the new product Gillette Vector. Gillette, based in Boston, did not want to undertake a costly in-home trial in India, so they recruited local MIT Indian grad students for the product test. The test consumers raved about the new razor, saying they were better than anything they’d ever tried. So, Gillette launched Vector in India and the product flopped.
When the company conducted a postmortem, they quickly realized their mistake. Many homes in India did not have indoor plumbing. This meant that when men shaved, they would only have a cup of water at hand to swish the cut hairs off the razor. By contrast, the MIT students had running water. Without running water, the razors became clogged after one swipe, basically making them instantly useless.
The moral of that story is simple: context matters. No matter how great your product is, if you don’t understand the real-world environment it’s entering, you’re at a disadvantage.
Which takes me back to the new Kraft-Heinz product, Homebake 425°/:30. Honestly, it’s a good idea that hits a real consumer pain point and solves it in a novel way. However, I question the company’s launch plan. Just like Gillette, I can see Kraft-Heinz testing this product near their US headquarters (Chicago and Pittsburgh), probably last winter, and getting amazing feedback.
However, they are now launching the product in the summer in parts of the Midwest and the South. As I write this, the three biggest markets in their regional launch (Ohio, Virginia and Tennessee), will have highs this coming week of 78°F, 84°F, and 89°F with up to 80% humidity! No sweaty home cook will look at a product named 425°/:30 and think, yes, I’d like to heat my oven right now that high and that long. Not to mention, the instructions clearly say that the product cannot be made in a toaster oven or microwave (i.e., along with an air fryer or outdoor grill, American consumers’ go-to ways to make meals in the summer without turning on the oven). If I were Kraft-Heinz, I’d be considering putting air fryer directions somewhere on the website or in-store as a summer workaround (although I can only imagine the confusion when your product’s NAME is an oven temp and time; very little flexibility there).
When you are developing and marketing a product, you can’t design in a bubble. The real world and real consumers are much more unpredictable, irrational, and confounding. The only way to see if something will work is to ‘go live’ as early as possible, in a situation that is as real as possible, and adjust accordingly.
Why is Branding So Bright Right Now?
Zero sugar beverage company Swoon is launching a limited-edition Barbie-themed lemonade in time for the upcoming Barbie movie. The beverage (and the associated can) is Barbie-pink and made with monk fruit. Available on the company’s website and Amazon.
General Mills’ Fruit-by-the-Foot and Gushers has partnered with TikTok personality Emily Zugay to redesign their packaging. The new designs (announced on Zugay’s TikTok) are much more brightly colored and dynamic than the previous boxes. The new designs will be on shelves by August.
Michelle Obama is starting a new venture called PLEZi Nutrition with the mission of creating healthy food and beverage options for parents to give "healthier, great-tasting products" to their kids. The first product to launch under the brand is a new kids' drink, simply called PLEZi, that will come in four flavors and contains 75% less sugar than the average leading fruit juices, with no added sugar, plus fiber and other nutrients. The drinks are currently available nationwide at Target and Sprouts, as well as online at Walmart.
Dirtbag is a new purpose-driven chocolate bar made with whole food, organic ingredients (a percentage of the company’s proceeds go to 1% for Mental Health). The nutrient dense bars consist of dates, 100% dark chocolate, rolled oats, and sunflower seeds and no added sugars, powders, oils or syrups. Currently available in select retailers and online starting this month.
Trader Joe’s has debuted a new of Thai rice noodle snack call Mee Krob Snackers. Based on the popular Thai restaurant dish, these crackers consist of deep fry rice noodles layered with a sauce made from tamarind paste, vinegar, chili sauce, lime juice, and sugar. Available in store.
So What? You may not remember it, but back in 2016 the relatively new company Instagram changed its logo:
In 2021, Velveeta changed their logo:
The reason for the changes was the same: digital/social media. Logos needed to be reengineeredin an era of small screens, digital ads, and social media messaging (you’d think Instagram would have realized this right away but…). Intricate design and flourishes are frowned on when consumers are looking at mere pixels on a phone.
We live in a hybrid world today, most of us have our noses buried in a phone or other screen the majority of our waking hours. It’s no surprise then that product design must change to reflect that hybrid aesthetic.
Fashion experts tell us that generations have a color palette, and the reason we are seeing so many bright colors is that Gen Z is attracted to neon (yellow, purple, or maybe green depending on who you ask). These same experts will say that this reflects Gen Z’s optimism, their radicalness, or their anti-establishment candor. I won’t debate the semiotics of color, which I’m sure I’d lose, but I’m thinking the reason we are seeing so much bold color now is much simpler than generational angst.
I think it’s a bleed over from our digital lives. Ten years ago, those companies that chose a bolder color for their brand likely saw more clicks on early online sites and got picked up more in crowded grocery store aisles. Other companies, seeing this success, copied their design vibe, leading to an evolutionary proliferation of the aesthetic we see today (see Hippeas, to Banza, to Magic Spoon).
The reason this is important is that if today’s bright color palette is due to digital and real-life attention getting, it could just as quickly swing the other way. Right now, early adopters are standing out on shelf/screen. However, what happens when every brand is neon pink or yellow? At that point, it might be better to look more like Liquid Death than Prime or Bang.
What Ruined Plant-Based? Your Expectations
US fast-food chain Shake Shack has launched three new plant-based items to their menu. Veggie Shack is a veggie burger made with mushrooms, carrots sweet potatoes, farro, and quinoa topped with American cheese and Shake Shack sauce and served on a potato bun. The Non-Dairy Frozen Custard and Non-Dairy Chocolate Shake are both made from NotMilk. The new offerings are available across the country starting May 2.
Paul’s Table is a new company founded by one of the first R&D engineers at Beyond Meat, Saba Fazel. This new venture is founded on two insights: (1) plant-based just doesn’t taste as good as meat yet; (2) most people looking for plant-based foods are still eating meat. This led the company to produce hybrid-protein, seasoned meal products that are mostly plant-based but contain “the best parts of meat.” This has allowed the company to be at price parity and, they contend, taste parity with similar all-meat products. Paul’s Table currently comes in two varieties of Pulled Pork: Sweet & Smokey and Hot & Tangy.
Tally Kids is a new, allergen-free chickpea-based beverage for children with 8g protein, 0 sugar, 21 vitamins and minerals, and omega-3 and choline for brain development. The plant-based milk comes in Original and Chocolate and is available via the company’s website for a one-time purchase or through a subscription.
Nestle is adding plant-based chocolate morsels to their product line. The iconic Tollhouse brand now offers semi-sweet and dark chocolate chips made without animal products (though not 100% vegan). Available in retailers across the US.
So What? Back in the 2010’s big CPGs were in a slump. Coming out of the Great Recession, food companies were saddled with under-performing brands, antiqued innovation systems, and rapidly evolving foodie consumer culture. At the same time, these were the boom years of Big Tech. Facebook, Amazon, Netflix and Google (aka FANG) were tearing up the stock market.
Not surprisingly, many newly wealthy tech entrepreneurs were anxious to ‘fix’ big CPG with Silicon Valley magic. This often included glamorizing the wonders of the tech stack and lots of showmanship and ‘world-changing’ promises.
This was the environment that modern plant-based products were launched into. Companies like Beyond, Impossible, and even Oatly were talked about more as tech companies than food companies (e.g., Impossible was being bankrolled partially by Bill Gates and called “the Tesla of food.”). Their original missions to “change the way people eat” and “transform the global food system” were paired with equally big estimates of growth.
Therefore, in 2023, when we hear that plant-based meat sales were down 1.2% in 2022, it’s a major disappointment. Analysts are now predicting the end of plant-based foods and meat alternatives. However, when you really look at the numbers, plant-based is still doing quite well.
Recent data from the Plant Based Foods Association and the Good Food Institute show that sales of plant-based products reached $8 billion in 2022, up 6.6% from the previous year. Dairy-free milk was the real winner, growing 8.5% to $2.8 billion in sales. While plant-based meat was down, the category saw a repeat purchase rate of 62.5%. Plus, the sales of newer protein forms that mimic chicken and fish grew 14-15%.
Overall, plant-based unit sales increased 23% between 2019-2022. For perspective, the rest of food and beverage grew only 1%.
Is plant-based growth a disappointment? If you measure it against the tech industry, sure. However, the food and beverage sector isn’t tech, no matter how much people want it to be. I think there is something to learn here on setting the proper expectations for your brand/company early. While it might be tempting to over-promise, you must remember that you will eventually be judged by the yardstick you create.
Things I’m Watching
Kellogg’s is launching Rainbow Krispies cereal in US markets. This is the first fruity cereal from the company that provides 20% of the daily value of Vitamin D, plus it's made with eight grams of whole grains and fortified with nine vitamins and minerals per serving. Kellogg’s says the cereal is in response to "six in 10 Americans want to add more Vitamin D to their diets." Available in store.
Probiotic yogurt shot company Yukult is debuting Yukult Plus in the UK. The new product contains fiber, Vitamin C, and 20 billion “gut-friendly” bacteria (L. casei Shirota). Available in select UK retailers.
So What? According to the recent National Poll on Children’s Health from the University of Michigan, 78% of parents have given their child multivitamins, while 45% have given probiotics. In fact, 52% say they regularly are giving their kid supplements for two main reasons: pickiness and cost. Parents worry that their children aren’t willingly eating enough healthy food, so they supplement to make up for the perceived loss. However, parents also see healthy, fresh food (that the child refuses to eat) as expensive, so it’s more cost effective to just give supplements. Could kid cereal and snack fortification make a rebound because of this tension?
Seasoning company Kosmo’s Q is launching a line of Wing Dust that is meant to be used as a “post-cooking seasoning.” The Dust comes come in nearly a dozen flavors such as Lemon Pepper, Garlic Parm, and Salt & Vinegar.
So What? I always seem to get to the salon early before my haircut. I think its fascinating to look around at the expensive shampoos and gels (especially when I’m using cheap Pantene). Recently, I noticed products labeled as ‘pre-shampoo treatments.’ For the uninitiated, these are oils that you put in your hair, then shampoo out. So, the hair process is: add oil (pre-shampoo), subtract oil (shampoo), add oil (conditioner). The food/bev world could learn a lot from health & beauty! Kosmo’s Q is already there, selling pre-cooking (brines and rubs), during cooking (mops and glazes) and now post-cooking (Wing Dust) products. Have you adequately ‘surrounded’ your occasion with products?
TIDBITS:
Take a Disgust Test developed by psychologists to understand where you fit when it comes to food and disgust.
An American was caught trying to smuggle 450 pounds of Fruit Roll-Ups into Israel (could smuggling stats be a good marker for which markets to launch in?)
Famed weight-loss company Jenny Craig is shutting down (we are definitely seeing a shift in diet culture in the US)
A compendium of 40,000 international snacks, reviewed and rated (a great resource)
ALL (not a majority or some) of the UK honey tested in an EU food fraud investigation is found to be fake (the US can’t be smug, we have a $10-$15B food fraud problem of our own)
The Unexpected Story of How Philly Cheesesteaks Became Huge in Lahore, Pakistan
There is a ‘secret’ candy desk (with a candy drawer) in the US Senate and it now has a new owner
Why the TSA says that peanut butter is a liquid
California growers have a ‘torture orchard’ that’s finding the hardiest trees for climate change
Finally, last week, in the shadow of the Coronation, social media users in the US became aware of British-Chinese takeaway food and there was great consternation.
TikTok and Twitter were lit up with Americans confused as to why Chinese food across the pond comes with salt & pepper chips (aka fries), bowls of curry sauce, and something called ‘chicken balls.’