Extended-Release Benefits
Los Angeles startup Buzz Lite is now offering lightly caffeinated coffee. Based on the trend of psychedelic micro-dosing, Buzz Lite originated with users who felt that they needed a way to deliver a constant low-level caffeine without going to extremes (aka “a low dose roast”). The whole bean coffee contains only 10% of the traditional caffeine found in regular coffee.
Pepsico has announced the launch of a new functional beverage called Soulboost. A line of sparkling waters with added ingredients like panax ginseng (Lift) and L-theanine (Ease). Each beverage contains up to 20 calories per 12-ounce can and is sweetened partially with real juice. Flavors include Blueberry Pomegranate and Black Cherry Citrus (Lift) and Blackberry Passionfruit and Strawberry Rose (Ease).
Phenolaeis, the wellness centered ingredient company known for their palm fruit extract, has developed a chewy granola product (First Date Date & Oat Bites) that they are marketing for private label branding. Developed use consumer-first methodology, the company claims that they created the product after identifying an unmet need for mood altering on-the-go snacks. The clean label recipe is made with dates, palm fruit extract, suntheanine, bioenergy ribose and raw coffee powder.
So What? As today’s wellness messaging advances, it’s fascinating to watch its story arc evolve. What started as a simple listing of ingredients with vague benefits, has slowly changed into specific communication regarding particular issues. Recently, I’ve noticed a significant shift in language that has similarities to another category.
In the 1960’s, over-the-counter medication introduced an innovation that changed the way consumers thought about health treatment—extended release. Previously, if you had a cold or the flu, it was assumed that OTC pills would help ease the immediate symptoms, they’d wear off and you’d feel awful, and then you’d repeat. However, medication like Contac (with its tiny “time pills”), introduced the concept of “relief that lasts all day;” consumption was enough to “last and last” without a time where you felt a deficit in the benefit.
Somewhere, lodged in the back of our collective unconscious, is this powerful idea of extended release. While it continually proves useful for brands trying to help with your congestion, it might be even more helpful for emotional benefits like mood. Just as the protein snack industry has shifted their messaging from “energy” to “sustained energy,” I believe we are seeing a similar shift when it comes to the topic of mood management. Giving consumers proactive control via low dose all day consumption (e.g., beverages or snacks) could be the future of the category.
I believe the children are our (plant) future
Miyoko’s, one of the main players in the mainstreaming of vegan cheese, is launching a vegan alternative to cheese sticks for kids via an online-only exclusive. The sticks contain the company’s plant-based milks along with surprising ingredients like green tea extract, hemp seed butter and organic pineapple.
GoGo Squeez is launching an almond milk-based pudding in their signature pouches. According to the company, the puddings offer more protein (5g total) and 30% less sugar than comparable puddings. Available in chocolate, banana, cocoa-hazelnut and vanilla flavors.
Frozen food brand KidFresh has expanded their line with new Homestyle and Ranch-seasoned breaded chicken strips with added cauliflower puree. The strips contain 12g of protein and 14g of whole grain per serving. The new products are currently available via the company’s website and will soon be available at major retailers.
Target has expanded their Good & Gather private label line to include over 30 new products that are plant-based. The new option includes everything from Meatless Chick'n Tenders and Meatless Meatballsto Non-Dairy Chocolate Mousse Dip & Spread and Non-Dairy Almondmilk Creamer. Available at Target stores throughout the US.
So What? Growing up in the US, my childhood was full of processed food. No matter how much I might try to fight it, there is no getting away from the fact that my palate was honed at an early age on a steady diet of Kraft Slices, canned Spaghetti-Os, and artificially flavored/colored Kool-Aid. While today I might say that I prefer artisan cheeses, trattoria prepared cacio e pepe, and hipster-crafted kombucha, I know that part of my preference in sweetness, color, and texture are still subconsciously rooted in my processed childhood. Yes, Hershey’s chocolate might taste like baby vomit to the rest of the world, but I can’t rid my brain of the original happy synaptic connection I formed with it when I was a kid.
With that thought in mind, let’s consider what permanent impression plant-based food may be having on children’s taste buds. While many adults today may never truly embrace plant-based foods, mainstream launches of plant milks, cauliflower pastas and vegan cheeses for kids will likely alter their appreciation of what grown-ups consider ‘off flavors.’
Net-net: what Millennials and even Gen Z experiment with now will be Gen Alpha’s foundation of acceptability. If I had to predict this, I’d say plant-based growth will hockey stick in the next decade as tastes learned at kindergarten snack time become normal and expected.
Water, water everywhere
Nestle Health Science announced that they are acquiring the functional hydration brand Nuun for an undisclosed amount. Nestle has recently been buying or investing heavily in wellness-based vitamin and protein companies (Bountiful Co. brands, Persona and a majority stake in Vital Proteins). Nuun offers tablets that augments water with vitamins, caffeine and minerals.
Austrian-based Waterdrop has debuted their product in the US. Marketed as a sustainable way to add functional benefits to water, the product consists of small, dissolvable tablets for reusable bottles.
Pepsico’s Gaterade is launching ‘rapid hydration’ Gatorlyte, a functional beverage that the company says enhances hydration with a mix of electrolytes (magnesium, calcium and chloride, in addition to Gatorade’s traditional sodium and potassium). Designed “for the elite athlete and weekend warrior” the brand says is their first product that addresses hydration directly.
Two new brands of frozen electrolyte pops have hit the market. Jüve Pops, the first brand to launch from the incubator at frozen yogurt maker Yasso, are low calorie pops filled with vitamins and minerals. The brand offers two varieties: tubes and stick bars. Coca-Cola is partnering with Jel Sert Company to produce PowerAde Sports Freezer Bars. The bars come in two flavor options including Fruit Punch and Mountain Berry, which are both formulated with B vitamins as well as the brand's electrolyte solution ION4.
So What? If you are maker of snacks, you might look at this rise in hydration products as outside of your category and therefore outside of your concern—but you’d be wrong. In the grand scheme of things, if you make protein bars, beef jerky or fruit leather, you are in battle with companies like Nuun and Gatorlyte. To understand why, look where much of the language of hydration comes from: sports. In sports, hydration has been historically linked to energy. If you are adequately hydrated with water and electrolytes, Gatorade has messaged for years, you’ll have greater energy and stamina.
While protein has a strong energy message, it also comes with the baggage of excess calories. Q: What if you need energy in the middle of the day but don’t want to feel weighed down or consume more calories? A: hydrate. This is the insight I believe everyone from Nestle to Pepsi has realized—they might be able to own energy (mental and physical) better than snacks.
Investing in Pets
General Mills announced last week that they would be acquiring Tyson Foods pet food business for $1.2B. The deal will give General Mills, which acquired natural pet food company Blue Buffalo in 2018, additional leverage within the natural pet snack arena with brands such as Nudges, Top Chews, and True Chews and a manufacturing plant in Iowa.
So What? As part of the press release regarding the acquisition, General Mills mentioned that they were doubling down on pet food, in part, due to the societal trend of the “humanization of pets.” Not only is this true, but it speaks to underlying reasons to why pet food will continue to be popular in the future.
In a century, pets have gone from being animals that helped us on the farm, but slept outside, to our beloved “fur babies” that sleep in our beds. This shift wasn’t caused by a sudden change in thinking, but a change in our demographics.
Today’s post-industrial societies are marked by a few consistencies: an increase in older households, more single-person households, people delaying marriage and/or having kids, the increased cost of having children and the lack of a social safety net to have children. I would argue that its these demographic/societal changes that have made the “humanization of pets” so relevant, widespread and likely permanent—and justifies a company spending ~$4B in 5 years. Our societal structure now needs pets, not just as farm animals but as emotional companions.
However, this also means that competition will be intensifying in the pet food industry, another reason why a General Mills’ investment makes sense now. What might be the next move for the company?
Leverage existing infrastructure and expertise: If pets are becoming more human, offer their owners more human-like products. General Mills should utilize their Progresso and Yoplait knowledge to produce high margin pet broths and probiotic yogurts. There is even an interesting opportunity to leverage cereal knowledge for dogs or bake-your-own Pillsbury dog biscuits. The synergies across technology could be expansive.
Set up pet verticals: While mainstream food will need to remain the bulk of the General Mills pet business initially, there is a real need to explore niche pet domains to grow the business using low-cost, e-commerce-based verticals. For example, geriatric/prescription pet food seems logical. However, there is also room to play in highly personalized pet food, plant-based food, pet indulgences and potential breed-specific diets. What is interesting about pet food is that learnings from it will show up in a few years in human food—a win-win for the company.
Omnichannel presence: From doggie daycare cams to cute pet videos, people love to engage with media that contains animals. This could be a big ‘in’ when it comes to building stronger relationships with consumers. As Starbucks officially starts to sell puppuccinos in stores (and in retail?) and potentially pet apparel, the channels to communicate about pets are opening up.