In case you missed my last newsletter with the 23 Things I Learned 2023, see it here.
In this week’s newsletter:
Sinners & Saints: Why healthy foods need to be naughty
Malachite X Spate: Trend Collaboration
Innovation is a ‘weasel word’: What kind of innovation are you doing?
Be Extreme: Niche consumers are worthy of love
TIDBITS: Fun and interesting news from the world of food and the food industry
Saints, Sinners, and Cottage Cheese
Dairy cooperative Darigold has launched a new brand of coffee creamer called Belle. Each creamer contains “only 5 simple ingredients.” Unlike other creamers, the brand does not use vegetable oils or artificial ingredients, but natural flavors and real cream. Flavors include: Vanilla, Caramel, Sweet Cream and Hazelnut Latte. Available in national US retailers.
For its 10th anniversary, Poppy Hand-Crafted Popcorn is out with a new design and a new line-up of flavors. The new flavors include a Mexican Street Corn, Mediterranean Herb, and Caribbean Jerk. The new flavors are now available on the company’s website.
Yoplait US, a General Mills brand, has launched Yoplait Protein. The new line uses ultra-filtered milk to produce a product with 15g of protein, 3g of sugar, and 100 calories per serving. Available in 30oz tubs or single servings. Varieties include vanilla, peach, cherry, mixed berry, strawberry, strawberry banana, strawberry cheesecake, and Key lime pie.
Healthy dessert brand SweetKiwi has partnered with Snoop Dogg-backed Broadus Brands to launch frozen yogurt cereal bars in US retail based on flavors of Snoop Cereal. The three varieties include Graham Honeyz, Cinnamon Toasteez Crunch, and Fruity Hoops. Available nationwide.
Snack maker 34 Degree Crisps is out with a new line called Mates. The product has Gouda cheese as the first ingredient, a light, crispy texture, and 5g protein per serving. The crisps have 130 calories per serving and are gluten and nut-free. Flavors include Original, Caramelized Onion and Rosemary Garlic. The snacks are available at Thrive Market, Amazon and via the brand's website.
Kombucha brand Brew Dr. has launched a new brand called SipJoy. The beverage is a low sugar (5g organic cane sugar) probiotic seltzer aimed at meeting consumer demand for more low sugar functional beverages. Made with live kombucha cultures, varieties include Grapefruit, Lime, Orange, and Lemonade & Tea. Initially launched in the Pacific NW at Safeway, New Seasons and PCC Markets, the brand will now be available nationwide via Sprouts Farmers Markets.
So What?
I’ve always been fascinated with saints.
After 8 years of Catholic grade school, there are certain memories that stick with you. For me, it is sitting in the school library flipping through a big book of stories about the lives of saints. Very quickly I learned there are two types: Pure Saints and Sinner-Saints. Pure Saints are those who were pretty much born saintly and never faltered (or died young, yes there were 10-12 year old saints). Sinner-Saints are those that participated in all manner of sin (cheating, robbery, even murder) but eventually redeemed themselves.
I don’t have to tell you that, as a 12-year-old, the lives of Sinner-Saints were MUCH more interesting to read. There was often intrigue, adventure, and a humanness to their lives that was missing from the always innocent Pure Saints.
Overall, I think people relate more to redemption arcs, whether in people, Marvel superheros or in brands. In fact, I’ve always thought about the sinner-saint dichotomy when contemplating the health and wellness category. Take yogurt, for example. It started off in the West as a pure product from the bucolic Bulgarian countryside only to be commoditized and ‘corrupted’ with sugar, candy and mix-ins over the years. Today, it has redeemed itself as virtuous food, high in protein and nutrients. Yogurt is a Sinner-Saint, and we love it.
On the other hand, we have cottage cheese. For the past couple of years, there has been talk of making cottage cheese ‘the next yogurt.’ To that end, great brands (like Good Culture) have emerged and been quite successful. However, while unit sales are up 7.7% (likely due to TikTok trends and the skyrocketing price of other dairy protein ) cottage cheese hasn’t been a breakout star like yogurt. Why is that?
It could be that people just don’t like the texture of the curds (although Hood launched a smooth version last year). However, it could also be that cottage cheese is a Pure Saint. From the start it was a clean food, a diet plate regular and restaurant French fry substitute. It was never corrupted with chocolate mix-ins, candy mascots, and dessert flavors. While this may be admirable, it also makes it perpetually boring. The sinful phase of yogurt persuaded a lot of non-health food consumers that the hippie ‘dairy pudding’ could be truly tasty, and these same people then ‘rediscovered’ yogurt when Greek yogurt happened. Cottage cheese, in comparison, never had this redemption arc. That means it is often discounted as too pure to be tasty. Recent TikTok trends of mixing cottage cheese into desserts (e.g., cottage cheese cookie dough) or using it to make queso dip might be enough to roughen up its reputation, but most of these recipes are built on people ‘watching their macros,’ not real indulgence. If cottage cheese really wants to soar, it needs to be naughty first.
When I look at the field of BFY products on the market, I see those that had a sinful past as having a better chance for mass appeal. Popcorn, creamer and snack crackers have definitely explored their darker side. Kombucha could go either way. While originally associated with 60s counterculture, lately kombucha has been blended with alcohol to produce so-called ‘hard kombucha,’ showing it isn’t that innocent after all (and some brands were pulled from shelves a decade ago for their undisclosed alcohol). Now could be a good time to try to move it more mainstream.
If you are a hardcore wellness brand, don’t turn up your nose at less ‘pure’ brands that are bastardizing your core product with sugar and artificial flavors. They might be doing you a favor in the long run, building mass appeal and allowing you a chance to provide future redemption.
Special Announcement: Malachite + Spate
I’m please to announced that my company, Malachite, has collaborated with AI-powered trend platform Spate as they expand into food and beverage. As a Culture Matters reader, you have free access to their just released Food Foresight Consumer Trends 2024 report. In this report, you’ll find predictions (with the numbers) of what’s growing in beverages, snacks and more. Plus, some commentary from me.
Spate was founded in 2018 as a health & beauty trend agency by ex-Googlers Yarden Horwitz and Olivier Zimmer (who started Google's Trendspotting division and uncovered trends such as turmeric, cold brew, and face masks). Now, Spate has added a comprehensive food and beverage suite to their predictive data dashboard. Personally, I find their trend tracking (with confidence scores) + TikTok function to be a killer feature for spotting what’s hot in CPG and foodservice.
Defining innovation is the first step in DOING innovation
Kraft Singles has launched a new line of flavored cheese slices. The company has added Jalapeño, Garlic & Herb, and Caramelized Onion to the iconic sandwich filler. The new flavors are available at retailers across the US.
Taco Bell has announced a partnership with Uber Eats in the launch of a new Cinnamon Twists cereal. Available exclusively via Uber Eats, the cereal is a mini version of the Cinnamon Twists available in store. Customers must order the cereal ahead or register to win a box, and no word has been made of making this permanently available.
New Jersey-based start-up Like Air is debuting on Shark Tank this week. The brand promises a popcorn- like experience without the annoyance of the kernel hull, and a baked, low-calorie puffcorn experience. Gluten-free, nut-free, and made without artificial ingredients, Like Air has four varieties: Classic, White Cheddar, Pancake, and Cinnamon Bun. Available via the brand’s website and retailers across the US.
Fondue restaurant chain Melting Pot has announced an at-home version of their cheesy pots. Melting Pot at Home includes options like Melting Pot Classic Fondue (a blend of Gruyère, Raclette and Fontina cheese) and Melting Pot Aged Cheddar & Gouda Fondue. Available on the company’s website.
Mobile app service Dinnerfy is looking to simplify the chore of meal prep and grocery delivery. The app gamifies the meal selection process by having each family member swipe through and choose the meals that look interesting to them. Once the system ‘learns’ the family’s preferences, it offers recipes and orders the groceries for delivery or in-store pickup. Available in popular app stores.
So What? Last week, Food Dive had a good article that outlined how increased private label pressure and margin requirements are making innovation a necessity for CPG company growth in 2024. While the article points out that innovation speed is a critical skill for companies to stay competitive, I’d say there is another issue holding food/bev brands back: defining what they mean by innovation.
Innovation is a common rallying cry for corporate leaders because the appeal of the new isn’t divisive. Saying ‘we need to innovate’ rarely draws criticism. However, similar to words like ‘convenience,’ ‘health’ and ‘value,’ ‘innovation’ is too often a buzzword that gets away with a lot while actually saying very little.
Ask 10 corporate leaders what they mean by innovation, and you’ll get 10 answers. A few may say new flavors or new forms of existing SKUs. Others may talk about selling existing products in new channels, and a handful of brave souls may stress the need to invest in new technologies to get ahead of the competition. The problem is that these are all technically “innovation,” but the planning, processes, and resources needed to stand up each is radically different. Therefore, just calling for ‘innovation’ can lead to confusion, misalignment and a profit shortfall.
The first step toward a strong innovation culture is drilling down into the meaning and expectations behind the word “innovation.” Teams must put metrics and language around the TYPE of innovation they are expecting and resourcing. True innovation cultures talk specifics! One way to think about innovation strategy is to break it into technology and business model. If you are launching a new product in your current channel and using your current technology, that could be called Optimization. However, the more you move from those vectors (see below) the more you need to adjust your thinking.
Talk to your team—which quadrant do they want to put innovation emphasis on in next year? In the next 3 years? What percentage of your resources should fit in one area versus another? I promise, this type of conversation leads to a more fruitful discussion than just saying “we need more innovation.”
Power of Extremes
Nutrition-focus DTC brand Daily Harvest has launched a GLP-1 Companion Food Collection. The “dietitian-curated collection includes pre-portioned, calorie-conscious meals” that are “high in fiber, low in saturated fat, free of cholesterol, and no added sugars.” Designed for consumers using GLP-1 agonists (like Wegovy or Ozempic), the line contains soups, smoothies, pastas and soups. This comes a month after Daily Harvest announced a partnership with TrueMed, a company that helps consumers use their HSA and FSA funds for food and exercise purchases. The GLP-1 Companion Food Collection is available on Daily Harvest’s website.
UK-based Holland & Barrett with Life Kitchen has introduced a range of condiments designed for people who have had their senses altered due to illness. Common in diseases such cancer or COVID, these condiments are meant to provide much needed taste to meals. The range highlights each of the 5 tastes: Sensation Salt (Salty), Soy & Honey Umami Paste (Umami), Citrus Sensation Spritz (Sour), Miso Honey (Sweet), Miso White Chocolate & Raspberry (Sweet) and the Seed, Kale & Wasabi Blend (Bitter).
So What? In the late 1980s, entrepreneur Sam Farber noticed that his wife’s arthritis was making it difficult for her to hold cooking utensils. She was shying away from making specific dishes she loved because peeling potatoes or cutting carrots was challenging. So, over several years, Farber created special utensils with more ergonomic handles that allowed her to continue to cook despite her dexterity issues.
Today, we know Farber’s specially designed utensils as the brand name OXO (reportedly code for ‘hugs and kisses’ to his wife). What is interesting is we rarely think of these kitchen tools as arthritis utensils, but rather as comfortable tools for everyone.
When trying to understand a category, sometimes the best thing you can do is look at fringe consumers. While they may not, on paper, resemble your core target, their extreme needs serve to amplify the benefits and shortcomings of the category. This means that much of the messaging, technology and design created in serving these extreme users can be directly applied to your base consumer.
While some companies may see certain segments (like Ozempic users or long-COVID suffers) as too niche, I think Daily Harvest and H&B are smart to make early moves. If done with a mind toward utilizing the learnings for a larger audience, these focused offerings can pay huge dividends in the future.
TIDBITS
US states where GLP-1 drugs (e.g., Ozempic) are most prescribed
Mark Zuckerberg is raising high-end cattle on his Hawaiian ranch, feeding them beer and macadamia nuts
Miller Lite creates beer-flavored mints to help people through Dry January
Burger King launches a hangover Whopper
Chipotle has teamed with fitness app Strava to help consumers with their fitness goals
Fruit Stripe gum is discontinued after 50 years in a blow to nostalgic chewers everywhere.
High Noon’s Hard Seltzer Is Now the Best Selling Spirit in the U.S.
Silent travel is trending
Is double-dipping a health hazard?
Kroger says their Albertsons deal will take longer than expected to close
Starbucks is aiming to open 1,000 new shops in India via their partnership with Tata Consumer Products
70% of people are able to accurately guess the mood of a chicken based on its clucks, even if they’ve never been around chickens (how researchers themselves know the emotions of chickens is not revealed)
Uber shuts down alcohol delivery service Drizly just three years after it purchased it for $1.1B
Washington DC popup Fiola’s is serving $75 pizzas!
The most expensive states for groceries (I’m guessing everyone thinks it’s their state)
I found this quadrant way of looking at innovation really helpful, thank you!