De-gendering for Innovation
Trader Joes has launched Spicy Porkless Plant-Based Pork Rinds. The new offering mimics the taste and texture of pork chicharrones while staying vegan, using rice meal and pea protein.
Ireland-based Kerry Foods has launched meat-free bacon under their Richmond brand. The new rashers join Richmond’s previous launch of meat-free sausages to their otherwise animal protein range. The new launch is being accompanied by a £3.5m integrated campaign to help familiarize British consumers with this new offering.
Next Meats, a Tokyo-based alternative protein company, has announced the launch of their NEXT Yakiniku Short Rib in their new US e-commerce portal. In addition, the company announced a collaboration with fast food chain Wayback Burgers at the Sacramento Vegan Food Festival. At the festival, the companies will hand out samples of their new East Meats Next slider and The Pioneer slider, both featuring the Next Grilled Short Rib.
Freak Flag Organics, a Minneapolis company, has launched Mac & Freak, a playful line of mac & cheese with added vegetables. Available in four flavors, exclusively at Whole Foods, Four Cheese, Southwestern Cheddar, Broccoli & Cheese and Kickin’ Kale Cheddar.
ConAgra’s Healthy Choice brand has released a new line of frozen, keto meals called Zero. The new meals contain no added sugar and only 10 grams of net carbs. Flavors include Tomato Basil Chicken, Carne Asada, Sesame Chicken with Zoodles and Verde Chicken.
So What? Did you know that we went to the moon (1969) before we put wheels on suitcases (1973)? This fact is often thrown out by innovation gurus as a talking point to show us how it’s easy to miss obvious innovations. However, as Swedish author Katrine Marçal discusses in her recent book (Mother of Invention) and a recent Guardian article, the delay in this invention has more to do with societal blindness due to gender and class stereotypes than innovation shortcomings.
Throughout most of history, the rich who traveled had porters to lug their belongings, and no one was rushing to invent wheeled suitcases to help ‘the help.’ For the rest of society, travel was reserved for either single men or couples. Women were typically seen as too innocent and frail to travel alone, meaning it was unladylike to carry luggage. Of course, men saw hauling heavy bags as their manly duty. Wheels on a suitcase would have been seen as emasculating. It wasn’t until women started traveling independently that wheeled luggage became the norm, so much so that eventually the taboo for men wore off.
For a long time, a similar gendered hurdle has limited the growth of vegetarian foods. I’ve been on numerous consumer interviews where men will boast that that they don’t eat vegetables, that eating salad is ‘feminine’ or that being vegetarian would make them feel less a man. However, recent marketing of plant-based foods has started to erase this sentiment (e.g., Impossible at Burger King). By using stereotypical ‘masculine’ foods as a starting place (e.g., bacon, pork rinds, BBQ, etc.) the stigma surround vegetables and vegetarianism is being removed, opening new growth. Just like wheels on suitcases, making plant-based products successful reflects less on breakthroughs in technology and more about shifting cultural perceptions.
Beyond vegetarianism, overall health and wellness also has a gender block. Overwhelmingly, women are more concerned about their health than men (if I can be cis-gendered reductive). In fact, 60% of men admit that they don’t regularly visit a doctor, and studies have shown that men are ~50% less interested in eating health food. Breaking through this taboo has proven to be highly lucrative. Keto and paleo diets have drawn millions of men into a dieting culture that had previously been mostly female. Today, health and wellness brands are realizing that there is significant growth potential in consciously and purposefully breaking gendered stereotypes and appealing to men (for example see the new trend in men’s cosmetics—partially spurred by COVID and Zoom culture: Alex Rodriguez’s recent partnership with Hims on a male targeted concealer, War Paint for Men, or Rapper Lil Yachty’s new men’s nail polish line Crete).
CPG and Celebrities—the Case for Instant Authenticity
Tyra Banks is launching her own ice cream brand called Smize Cream. The custard-style ice cream will be available for nationwide direct-to-consumer delivery and through its first shop in Los Angeles. The super-premium custard ice cream brand has a few defining characteristics. First, each serving of ice cream has a Smize Surprise (“a chunkalicious Cookie Dough truffle covered in naturally-colored sprinkles”) hidden inside. The Smize Surprise represents a “tasty reward that symbolizes what the brand stands for: GOAL GETTING & DREAM CATCHING”). Second, the ice cream is served in limited edition packaging with AR activation technology. Lastly, each purchase of Smize Cream helps support the The SMiZE Goalz & Dreamz Factory, which helps children and young adults with successful mentoring opportunities. (FYI—in case you are interested in the brand name, smizing is modeling speak for ‘smiling with your eyes.’ It’s a trick for taking better pictures).
This Bar Saves Lives announced this week the expansion of their brand to 1,200 Kroger outlets throughout the US. Sales of the snack bars, co-founded by actress Kristen Bell, support the brand’s mission of ending acute malnutrition in children throughout the world. In addition to Kroger, the bars are available at Starbucks, Whole Foods, Target and Amazon.
Baby food brand Once Upon a Farm, co-founded by actress Jennifer Garner, has acquired DTC frozen baby food and toddler brand Raised Real. The purchase will help the new brand enter brick and mortar retail, a move started earlier this year with a limited run of frozen breakfast and meals at Target. These Raised Real retail meals will now transition their branding to Once Upon a Farm. Back in April, Once Upon a Farm transformed from a Limited Liability Company (LLC) to a Public Benefit Corporation (PBC). PBCs are different from other for-profit companies in that they must include in their charter one or more specific public benefits as their statement of purpose.
Scottie Pippen and business partner R.C. Mills are starting up a new snack brand called Husk. The new brand’s first offering is a range of popcorns that contain vegan, organic ingredients that provide color and enhance the overall nutrition. The sweet and salty flavors include Spirulina and Dragon Fruit, Moringa, Matcha and Coconut Water, and Cayenne and Ginger.
So What? If you haven’t been paying close attention to the celebrity invasion of the alcohol industry, let’s recap. In 2017, George Clooney sold his tequila company Casamigos to Diageo for $700 million (with the potential to make up to $300 million more in the coming years). This set off a chain reaction of celebrities partnering and forming their own alcohol businesses and raking in the cash. Ryan Reynolds co-founded Aviation Gin in 2018, and in 2020 sold it to Diageo for $610 million (while maintaining ongoing ownership interest). While these two stories often get the most press, it’s only the tip of the celebrity-alcohol iceberg. Jay-Z, Sean Combs, Marilyn Manson, Dwayne Johnson, Bryan Cranston and Aaron Paul, Bob Dylan, Drew Barrymore, David Beckham, and many, many more have invested heavily in alcohol brands, with great returns.
Why are we seeing this spike in alcohol owned by celebrities and what does it mean for the food industry? Of course, the biggest reason is likely pure profit. Jay-Z, George Clooney and Ryan Reynolds have shown Hollywood that there is quick cash in founding/co-founding an alcohol brand. However, there would be no money in it if consumers weren’t buying, and that’s where it gets interesting. Celebrities offer brands two things that are necessary, but difficult to obtain, in today’s market: an established and active fanbase and instant authenticity.
Today’s celebrities sit atop a powerful social media communications engine, one that can be utilized to sell not only movies, albums and tickets but also brands. However, perhaps more importantly, celebrities who intertwine their own stories with a brand—especially when they own the company vs. just endorse it-- provide instant authenticity. Consumers feel that they already know and identify with celebrities, making tales of brand creation and inspiration automatically more real and believable.
I believe that what we are seeing in alcohol is a model for future celebrity expansion into CPG. While the hard spirit category is far from saturated, the number of savvy, sophisticated celebrities whose brands are aligned with premium alcohol may be dwindling. In addition, as Millennial and Gen Z alcohol consumption plummets, in-touch celebrities will likely look elsewhere for business startups. In fact, when you look at the brand auras that surround many up-and-coming celebrities, there is strong alignment with premium, indulgent, wellness, or social good CPG initiatives.
All we are missing is a Casamigos incident, where a celebrity gets a big buyout for their CPG brand, and the gold-rush will begin (I put my money on Dwayne Johnson’s energy drink Zoa). If you are a major CPG, I’d suggest lining up your first round draft picks now before the rush begins.
Trend Nexus
The latest viral hit in the underground Japanese pastry world (yes, that’s a thing) are beautiful Cake Cans being sold at Gaku, a chain of specialty parfait and risotto stores (also a thing) in Hokkaido and Tokyo. Cake in cans is not new to Japan, but these new items are gaining popularity because their packaging appears to be transparent (although it’s really a beautiful high-res printed image). The chain sells shortcake with real fruit, whipped cream and cake as well as Fuwa Cans (“fluffy cans”) that contain jam instead of fruit pieces. The canned cake has a relatively long, chilled shelf-life. Prices start at 900 Yen (~$8USD).
Food gift purveyor Hickory Farms has acquired cake company Wicked Good Cupcakes. Hickory Farms, once known as a shopping mall kiosk standard, has pivoted over the last 4 years to be an online curator of individual and corporate food gifts. Wicked Good Cupcakes, featured on Shark Tank in 2013 and landing an investment by Kevin O’Leary, produces cake, frosting and filling cakes packaged in Mason jars. The shelf-stable jars have a 10-day shelf life (longer if refrigerated).
So What? What makes a fad into a trend? What causes a trend to actually stick? If I gathered a handful of industry watchers in a room, I’m sure I’d get hundreds of theories. However, my experience tells me that a trend sticks around when there are multiple pushes coming from multiple angles that prop it up—i.e., a trend nexus.
If a product appeals to one niche group for one niche reason, it’s support wains quickly as newer products quickly gain attention. However, when multiple facets of a product appeal to multiple groups, a fad can stay afloat for a long enough time to graduate into a trend.
While it might seem whimsical and silly, cake in a jar just might sit in a trend nexus. The more you investigate its appeal (both for consumers and manufacturers/retailers), you realize that its appeal is surprisingly diverse:
1. Portability: Cake, and even cupcakes, are difficult to consume on the go. Packaging it into a jar makes it as easy to eat as a yogurt or pudding, perfect for our post-COVID rush.
2. Kid Appeal: Along with portability comes easy eating, a win for kids (i.e., have you ever seen a kid enjoy a cupcake in the back of minivan? Armageddon!)
3. Sensory Splendor: Instagrammable-look plus multi-textured delight; the layered look is eye-catching and tailor-made for a permissible premium moment
4. Upcycle/Rework Potential: The non-perfect nature of the cake scrap and fruit prep allows for messaging around upcycling and cost-savings in terms of rework use
5. Freshness Trigger: For retailers, the parfait/trifle appearance is a spectacular draw in a refrigerated case that needs differentiation.
Companies looking to expand in the dairy or chilled dessert category take note—there is a lot to like about layered jarred/canned cake.
The Blurring of Snacks and Cereal
Clif has launched their first whole grain line of flake-based cereals. The products are made with whole grain flakes, granola clusters made with organic rolled oats, real almond/peanut butter, whole almonds/peanuts, and dried whole blueberries, dried apples, honey or cocoa. The package announces, ‘Lasting Energy to Power Your Day,’ along with claims of 28–30g whole grains, 7–8g protein, and 7–8g fiber. Flavors include Blueberry & Almond Butter, Apple Cinnamon & Almond Butter, Honey & peanut Butter and Chocolate and Peanut Butter. Available soon at Walmart and other retailers.
Kellogg’s owned RX Bar is launching its own cereal. Following in the brand’s existing pattern of minimal ingredients and ‘no B.S,’ RX new flake cereal contains 11g protein and is made from a simple mix of brown rice and almonds. Flavors include Chocolate Almond, Vanilla Almond and Strawberry.
Costco favorite Premier Protein has launched a new cereal in partnership with Post Holdings. The new flake cereal contains 20 grams of protein per serving and 5g total sugars. The cereal is available in one flavor, Mixed Berry Almond, only at Costco.
So What? Clif, RX, and Premier now join Kind in the migration of snack brands into the cereal category. While part of this is likely due to simple brand expansion and the need to lay down roots in adjacent categories to source incremental volume, its also due to the changing nature of the cereal category itself. As consumers alter their cereal consumption to be more snack-orientated (versus in a bowl with milk), it opens the door for snack companies to make a run the other way.
In fact, I believe we’ll look back at this moment as an inflection point for snack brands. For decades many have been stuck in the rigid formats of bars and bottles. Moving into the cereal category provides new freedom of form and function. Manufacturers can use this moment as an innovation jump start, reinventing the category into a new snack-cereal hybrid, and breaking away from of the traditional flake and puff. Will snack manufacturers be bold enough to push the envelope and create these offerings? Will cereal makers follow?