In today’s newsletter:
Alt-Meat: Could bringing plant-based down to earth save it?
Artificial Everything: When fake becomes cool, what does real mean?
Too Efficient: Is productivity hurting corporate innovation?
Remote Working: Should CPG be WFH’s biggest advocate?
Tidbits: Quick links to cool food news
Alt-Meat is a Lot Like Cereal
Chick-fil-A has announced that they are testing a Chick-fil-A Cauliflower Sandwich at restaurants in three markets (Denver, Charleston, S.C. and North Carolina's Greensboro-Triad region). The plant-forward (not vegetarian, the chain acknowledges that the product contains milk and egg) sandwich consists of a marinated whole slice of cauliflower, breaded with seasoning, pressure-cooked (pressure-fried?), and served on a toasted buttery bun with two dill pickle chips. The company claims it took them 4 years to perfect the recipe.
MorningStar Farms (a Kellogg’s brand) has partnered with Pringles potato crisps (also a Kellogg’s brand) to announce the debut of a new product called Chik'n Fries. The 100% plant-based product consists of the MorningStar’s proprietary protein blend breaded and seasoned with the signature flavors of Pringles. Available in two Pringles flavors: Original and Scorchin' Cheddar Cheeze.
UK frozen pizza brand One Planet Pizza has expanded distribution to more than 2000 Asda stores. In 2022, the brand became the first frozen pizza maker to incorporated carbon ratings on all their products. One Planet Pizza is available in five varieties, Three Cheese Margarita, Hawaiian, Mediterranean Vegetable, Spicy Pepperoni and Gluten Free Three Cheese Margarita.
So What? It may seem strange to modern ears, but when breakfast cereal was first invented, it was considered a purer, healthier way of eating. Created at health spas and sanitariums being run by religious fundamentalists, breakfast cereals were marketed as natural, wholesome, and “God’s intended diet” (in fact, Post originally called their corn flakes Elijah's Manna after the biblical prophet). While it may be hard to imagine today, cereal started off as a product for the rich, the Goop food of its day. However, it didn’t come into its own until it softened its extreme health message (and its ingredient deck) by appealing to kids, flavor and fun.
So, perhaps you’ll understand me when I say that plant-based products and alt-meat are the breakfast cereals of our time. Many started out with founders wanting to change the world (e.g., see Impossible’s original mission statements), in a tenor not that dissimilar from John Harvey Kellogg. However, now that they’ve gained awareness, and a following among firm believers, I think their growth will rely much more on down-to-earth benefits than high-minded promises.
Most alt-protein started out positioned on a three-legged stool of sustainability, ethical concerns, and health. While those three components are core to the buying criteria for vegans, I see mass market growth with flexitarians coming from prioritizing taste and convenience. That’s not to say that the original benefits should be removed or forgotten, for many flexitarians eaters these are still ante to the plant-based table. However, the all-or-nothing vibe given off by the initial round of plant-based offerings should be toned down to make eating these products less about ‘changing the world,’ and more about delicious convenient food that happens to be greener.
I think, of the products listed above, MorningStar has the right idea. While it might seem blasphemous for a plant-based product to partner with processed snack food like Pringles (much as Dr. Kellogg disowned his brother after he put dared to put sugar in cornflakes, I think it’s this line of thinking that will lead to further mainstream adoption. Perhaps that’s why Kellogg (the company) has decided to not spin-off their plant-based division while other companies are abandoning ship. Maybe Kellogg’s has a corporate memory of how these things work out?
(Want to hear me talk more about this? Take a listen to last week’s Alt-Meat podcast where I sat down with the wonderful Lisa Keefe)
Is ‘Real’ Still Better?
The Dole Corporation has launched into a new category with the premier of The Secret Nature of Fruit. This new launch marks Dole’s push into health and wellness with fruit chews and probiotic sodas. While the probiotic sodas have yet to be launched, the company’s press release says they will be “powered by 15% fruit juice and 2 Billion live probiotics” and available in stores at the end of April 2023. The fruit chew product “harnesses the distilled power of real fruits and plants to deliver a delicious and natural daily boost of essential nutrients. With real fruit as the first ingredient.” The Secret Nature of Fruit brand is currently being used to sell beverage powders on Amazon, but there is no word on whether these products will be part of the line in the future.
Mars Wrigley is launching Starburst Fruit Squares in the UK. The new product is made with “80% real fruit” and calls out that it is high in fiber, making it HFSS-compliant. The line is currently available in two flavors, Fruit Mix and Tropical Mix, will be available in Morrisons, Sainsbury’s and Spar shops.
Texas-based Cheddies Crackers has launched a line of snack crackers. The crackers, founded by two brothers looking for a better alternative to the cheese crackers they grew up with, are made using fresh (not powdered) cheese. That cheese is sourced from Alexandre family farms, one of the only regenerative dairy farms in the U.S. The crackers claim to have fewer ingredients and carbs, and more protein, than leading cheese crackers (even the organic ones). Available as Spicy Cheddar, White Cheddar and Classic Sea Salt.
Nut and seed spread company NutZo has expanded into a new category with the launch of a refrigerated nut and seed butter protein bar. The brand claims that their new bars are the only refrigerated protein bars made with 65% six nut and seed butter. Available in two varieties, Peanut Butter Chocolate and Almond Butter Chocolate, the bars are just one of three new products Nosh is reporting that NutZo will be launching at Expo West. The brand will also launch MuttZo (a nut and seed butter for dogs) as well as Grain Free Peanut Butter Pretzel Nuggets in collaboration with FitJoy.
German cash-and-carry chain METRO has launched a new vegan egg roll across all their German stores. Branded NoPokPok and produced by Feldhues Fun Foods GmbH, the tube-shaped egg alternative is meant to be sliced and used for sandwiches or hot dishes.
Cultivated meat company Aleph Farms has announced that they have become the first to achieve kosher status for their cultivated steak. The ruling is not a kosher certificate (that needs to be issued by local rabbinical authorities),but Aleph Steak’s process and resulting product has been deemed kosher by Israel’s Chief Rabbi, David Baruch Lau.
So What? In an interview with Variety last week, Keanu Reeves said that he has a clause in his contract that his image can’t be digitally manipulated without his permission. Commenting on the rise of CGI in Hollywood, Reeves mentioned that a recent conversation with a 15-year-old put things into “terrifying perspective.” When he explained to the fan that Neo was fighting for things that were real, the teenager sneered and said, “Who cares if it’s real?”
That’s a really good question. Who does care? Now, before you say ‘consumers care,’ consider the following:
The shame over fake luxury goods is disappearing. TikTok influencers that used to flaunt Louis Vuitton bags are now proud of showing off counterfeits. Rich people are starting subReddits talking about how to score the best ‘reps’ (aka replicas) of high-end goods.
No- and low-alcohol beverages are outperforming the rest of the U.S. drinks market in terms of percentage increase (albeit with a smaller base volume); IWSR Drinks Market Analysis forecasts 25.4% growth in non-alcoholic offerings in the U.S. through 2026.
Some of the most popular influencers today are synthetic celebrities. Lil Miquela has 2.8 million followers on Instagram, even though she isn’t real. The digital characters of Superplastic (Janky & Guggimon) are now ‘attending’ Hollywood parties and sponsoring luxury brands, like Mercedes-Benz, and Amazon just invested $20 million in them. A recent survey found 58% of people on social media follow at least 1 virtual influencer/synthetic celebrity.
Of course, the world of food and beverage is not excluded from this authenticity uncertainty. While ‘real’ and ‘artificial’ used to be synonyms for ‘good’ and ‘bad’ for many consumers, that seems to be shifting. The consumer health-focused groups that previously pushed against all things artificial are the same that are embracing alt-meat, alt-dairy and many forms of alt-sweetener; blurring the line of acceptability for consumers.
As the goodness of ‘real’ and ‘fake’ get renegotiated in consumers’ minds, it confuses the edges of the scale (e.g., ‘real’ sugar is ‘bad’ but artificial meat is ‘good’?). Consequently, ‘real’ now must be ‘more real’ in order to break through, ushering in a new era of technologies, packaging and categories.
Take, for example, the Dole, Starburst and Cheddies examples above. Even though none would be considered a ‘fresh’ product, they message their ‘realness’ by calling out their processing proximity to fresh ingredients (e.g., made from freshly shredded, not powdered, cheese). Similarly, NutZo’s new bars push their realness by not only being sold chilled (like Mondelez’s Perfect Bar) but through the number of seeds and nuts present.
As culture and consumers become more accepting of the benefits of artificial (from AI to alt-meat), brands will need to work harder to show why ‘real’ is worth it.
The Trade-Off Between Productivity and Creativity
Is your obsession with productivity holding you back from success?
The other day I was on a Teams meeting with a client and she shared her screen. In the sharing process she accidently showed me a view of her calendar and I audibly gasped. Every minute of her day was blocked; 30-minute catchups were immediately followed by 60-minute team meetings from 7AM to 7PM.
According to most business books, this is how we get stuff done. We ‘eat the frog,’ bullet journal, and plow through our day. ‘Busy’ equates to productive, and a full calendar is a sign of a good employee. As corporate pressure to do more with less and ‘quiet promoting’ becomes endemic, it makes sense, being seen as productive is important.
However, there is a dark side to productivity. It can give the illusion of progress, even when you are just standing still. Checking off tasks is fulfilling, so most people prioritize doing the things that they can accomplish quickly (e.g., send that quick email). The problem is that these types of tasks are never-ending, they are perpetually repopulated in our checklist as soon as we complete them. Meaning that the big, gnarly, nebulous issues that can’t be solved in a 60-minute block remain constantly out of reach.
Of course, you see where I’m going with this. In our pursuit of everyday efficiency, we sacrifice the potential of solving bigger problems. A day full of back-to-back meetings never allows time for us to reflect, connect disparate ideas, or even be curious about an issue.
We need to stop the stigma that equates ‘free time’ at work with unproductivity. If you manage people, or just yourself, set the example that setting aside large blocks of time on calendar to tackle bigger topics (or just think) is normal and encouraged.
Productivity and creativity don’t have to be at odds, they just need to be balanced.
Should Remote/Hybrid Work be a CPG Rallying Cry?
Earlier this week, Bloomberg had a great piece where they calculated how much Manhattan is losing per year because workers are in the office 30% fewer days. They arrived at a staggering number, $12.4 billion! That works out to each worker spending $4,661 less on restaurants, shopping and transportation downtown. Other cities, they estimate, have seen a similar (albeit lower) impact on their treasuries.
Of course, that’s one way of looking at this, from the city’s POV. However, these workers are still spending money, they’ve just lifted and shifted it elsewhere. Now instead of commuting all week, they are staying at home, making breakfast, shopping online/local shops, and ordering take out.
I understand the frustration of corporate CEOs that pay for giant offices that stand empty as employees demand remote work. However, maybe their push for a return to the office is short-term thinking? Henry Ford was considered a radical when he paid his workers $5 a day. He did this, not because he was generous, but because he knew good pay would make for loyal workers and, more importantly, more consumers for his automobile! Should food and retail companies take a similar long-term view of remote work?
Is it possible that remote work is more profitable for food/bev manufacturers and retailers? Yes, many food companies supply food to the restaurants and cafeterias in city centers, but how do those profits measure up against the increase in grocery purchases, home delivery, and local restaurant visits for remote workers?
I honestly don’t know the answer to this and I’m curious if anyone has run the numbers. Because it’s possible that food manufacturers and retailers like Amazon and Walmart should be the biggest advocates of remote (or at least hybrid) work for the country, not because it’s what most employees want, but because of its impact to their bottom line.
Things I’m Watching
Post Holdings announced last week that they were acquiring 9Lives, Rachael Ray Nutrish, Gravy Train, Kibbles ’n Bits and other pet foods brands for $1.2 billion from J.M. Smucker Co. This purchase will jumpstart Post’s entry into the pet food category, an area that has seen major growth in the last few years as more CPG companies have entered the space.
So What? With a pet food commercial judged as the best of the Super Bowl, there is no doubt that our love for our cats and dogs is still strong. However, as recent data from the Jefferies Group shows, inflation is testing just how much that love translates to product purchases. Sales of expensive raw pet food and pet toys are down as consumers are having to make tough grocery decisions. Post is entering the category at a tough time, with competition high and margins declining. What Post has on their side is the potential for distribution synergies as well as horizonal innovation (i.e., taking tech and IP they have in other categories and transferring it to pet food). What I’m surprised we haven’t seen yet from these CPG companies turned pet food companies are at-home pet food kits (e.g., cake or cookie mixes for dogs). They are cheaper for the owner to purchase in inflationary times and reinforce the pet-owner bond.
Digital commerce site Consumerhaus has launched, targeted squarely at Gen Z consumers. Founded by 25-year-old Harvard University graduate, Claire Spackman, the site is a curated collection of CPG products that highlights the founders behind the brands through storytelling and purpose. Unlike other similar sites, Consumerhaus does not charge a shipping fee and adopts a drop shipping strategy for the 120 brands (~700 products) onsite.
So What? For the moment, Consumerhaus doesn’t have a subscription fee for users, nor does it require you to jump through a lot of popups to get to the products. That brings it in stark contrast to the big shopping aggregators like Amazon. Just last week, NY Mag wrote a great piece that identified how the rise and prioritization of 3rd party sellers was causing the “Junkification of Amazon,” and a degradation of their online shopping experience. As retailers push for more profit, and downplay the consumer connection and experience, I think we’ll see more sites like Consumerhaus pop up in response.
SuperMush, makers of mushroom enhanced mints, has launched a line of three SuperMush Daily Mouth Sprays focused on Immunity, Energy and Chill. Fortified with the company’s proprietary blend of mushroom and superfood extracts, the sprays are recommended for use throughout the day. SuperMush is available via the company’s website, Urban Outfitters (online only) and independent retailers through the US.
SpiceWell, a seasoning start-up, has launched New Salt and New Pepper. New Salt combines pink Himalayan salt with 21 vitamins and minerals from organic vegetables as well as ashwagandha. New Pepper contains a similar mix of vitamins and minerals from organic veggies as well as turmeric and black pepper. The brand promotes Ayurvedic health, with lower sodium and more flavor.
So What? The pandemic really pushed vitamin and supplement sales upward. However, anyone that’s ever studied health and wellness knows that, other than a few rare consumers, most people have a low tolerance for taking multiple pills a day. In fact, as consumers get older, pills become a reminder of the health issues that they’d rather not come to define them. For that reason, when consumers hit their 40s and 50s, you often see people viscerally pushing back against adding more pills into their daily rotation. Perhaps that makes the above products smart. By adding benefits in non-pill form, brands bypass consumers’ set-maximum for pill taking. However, one thing I’d question is consumers’ perception of dosing. If you are randomly spraying and sprinkling, do people worry about getting too much or too little?
TIDBITS:
How do you measure inflation? By the cost of Stouffer’s frozen lasagna (so says Neel Kashkari, president of the Federal Reserve Bank of Minneapolis)
New research indicates a potential link between Alzheimer’s disease and a diet high in sugar, carbs and salt
Roku has partnered with DoorDash to allow consumers to order food directly from their TV. Grocery stores and restaurants can now create ‘shoppable commercials’ where consumers can use their remote to order.
Out of the thousands of recipes the NYT has ever published, the most popular is…Old-Fashioned Beef Stew?!
Why soda cans are shaped differently in Hawaii
Something to think about: