Here is a link to my last newsletter, in case you missed it.
In this week’s newsletter:
New Product Gut Reaction: The WOW! and the WHAT?
Follow the Condiment: What goes on, eventually goes in
Brand Collabs: Do they help or hurt your brand?
‘Authentic’ Tension: Why is CPG shy about ‘authentic’ brands
Plant-based inflection: A turn toward new benefits
TIDBITS: Fun and interesting news from the world of food and the food industry
New Product Gut Reaction
Follow the Condiment
Los Angeles-based startup pasta sauce company Sauz is out with a new Hot Honey Marinara sauce. The sauce, billed as “Little bit of sweet. Whole lotta heat” is gluten-free, all-natural and made in small batches. Available in specialty retailers in the US as well as online.
As part of their new line of Mixed Minis, snack maker Utz is partnering with Mike’s Hot Honey to make a pretzel combo with the sweet and spicy condiment. The new line also contains Sea Salt and Garlic Butter varieties.
Trendy olive oil brand Graza is out with a limited-edition potato chip. The ‘extra crispy and perfectly salty” chips are “slow-fried” in the brands Sizzle variety of extra virgin olive oil (which the brand claims makes them extra crispy and able to absorb more EVOO flavor). Made from Galician potatoes and seasoned with Añana flaky salt. Available via the brand’s website.
Taco Bell has announced that they are partnering with Mexican seasoning brand Tajin to launch a limited-time menu in Orange County, CA. The menu, assumed to be a test launch for a potential nationwide release, includes Tajín Crunchy Taco, Tajín Twists and the Tajín Strawberry Freeze. Available until March 6th.
So What? Consumers love sauces and condiments. However, if you notice, modern sauces and condiments don’t stay ‘on the side,’ instead they quickly end up getting incorporated into finished products. The sauces of today are the flavors of tomorrow, ready to season snacks, top pizzas, and be added into meals.
Therefore, you should be paying attention now to the sauces and condiments that are rising in popularity, even if it’s not directly related to your portfolio, because they will be your next line extension.
So, what’s the next condiment to make the transition to ubiquitous flavor? My bet would be on Japanese BBQ sauce (see Bachan). According to SPATE, Japanese BBQ Sauce has skyrocketed in popularity and looks to continue to grow. Followed by Salsa Macha (a Mexican salsa of red chilis, vinegar and peanuts), and Yellow Sriracha.
Are Brand Collabs Hurting or Helping Your Brand?
Krispy Kreme has announced that they are partnering with Hershey’s on a new Chocomania line of donuts. The collection includes four donuts “all-in” on Hershey’s chocolate: Galaxy Brownie, Black & White Chocolate Chip Dream, Chocolate Cake Overload, and Chocolate Iced.
Angie’s Boomchickapop has partnered with Cinnabon to introduce a new Cinnabon Bakery-Inspired Drizzled Kettle Corn. The RTE popcorn is flavored with Cinnabon’s Makara® cinnamon and a cream cheese drizzle.
Wendy’s has also announced a partnership with Cinnabon with the launch of their new Cinnabon Pull-Aparts. Made of a dough bites baked with Cinnabon cinnamon and cream cheese frosting, served warm in a cup. Available at participating Wendy’s.
Apparently Hidden Valley Ranch has partnered with Cheez-Its to create a new dressing. The collab was spotted at a Schnuck’s store in late February. Word is, more new HVR flavors are coming this month and this is just the beginning.
Lay’s is introducing a limited-time only IHOP co-brand with Rooty Tooty Fresh ‘N Fruity potato chips. The chips are meant to taste like strawberry-topped pancakes with syrup and bacon. Available at Walmart.
Speaking of IHOP, the chain has announced their pancake of the Month is Girl Scout Thin Mints Pancakes. The item consists of green buttermilk pancakes topped with cheesecake mousse and a sprinkle of Girl Scout Thin Mint pieces. Available through March.
So What? In the last few years, we’ve seen a spike in brand collaborations across CPG and foodservice, and why not. Collabs are a great way to bring excitement to a new launch and synergistically introduce one brand’s consumer to another. Plus, if you are licensing your brand out, you can safely learn about potential growth opportunities in new categories while making extra profit.
However, as with anything, there is limit, and I’m starting to feel like a few brands are reaching this limit (*cough* Hershey’s*cough*).
What’s wrong with too much collaboration:
· Innovation Stagnation: Co-branding once or twice with another brand is fun and interesting. However, it can quickly become an easy way to fill your pipeline instead of doing the harder work of creating something new with your own brands. Yes, it creates buzz and volume but at the cost of significant licensing fees. Don’t get hooked on this drug for long.
· Brand Dilution: Partnerships can water down a brand’s unique identity. If you are constantly partnering, the consumer stops understanding your brand story.
· Quality Perception: On the licensing side, allowing your brand to be used across multiple categories and channels is a great way to be reinvigorated. However, overextension might lead to questions about the brand’s commitment to quality. Remember, when you partner with a brand, you are assuming some of their brand essence, good and bad.
· Partnership Fatigue: Consumers become tired of seeing the same brand collabs. What was once exciting is now just normal and even boring. “Leave them wanting more” as the saying goes.
How to keep collaborations strong:
· Consumer Led Partnerships: Use a consumer-first mindset to choose partnerships. Look to social media to see what brands your consumer is already using/pairing with your products.
· Keep it Limited: Make partnerships short to maintain the excitement and minimize the fatigued.
· Focus on Storytelling: Use co-branding as an opportunity to tell new and interesting stories about the brand to deepen consumer engagement and emotional connection. If the collab doesn’t advance your consumer connection and is just about volume, it’s just not doing enough.
Why are CPG companies afraid of ‘authentic?’
Momofuku, the restaurant and CPG food brand owned by David Chang, has launched two new versions of their air-dried noodles. Sweet & Spicy Noodles and Spicy Chili Noodles have 25% fewer calories than other instant noodles and double the protein. Available on the Momofuku website and retail stores.
Austin-based beverage startup Bawi has launched a sparkling version of the classic agua fresca. Made with “real fruit and organic juices” the beverages have 40-60 calories per serving. Varieties include La Maracuyá (passionfruit), El Limón (lime), and La Piña (pineapple). Available on the Bawi website and at select stores.
Siete Foods has launched new additions to its grain free cookie line up. Chocolate Chip Cookies with a hint of Mexican Vanilla and dairy-free Fresas con Crema are both gluten-free, grain free and made with coconut sugar and avocado and coconut oils. Available online or in retailers.
San Fran-based Sukhi's Indian has launched three new entrees to their core. Tamarind Pulled Chicken, Butter Chicken and Chicken Chili are each heat-and-eat varieties free of hormones, antibiotics or preservatives. Available in select retailers.
So What? If there is one thing that consumer trend analysts, restaurant watchers and anyone with TikTok can agree on, its that younger generations are VERY interested in the foods of diverse cultures. Part of this may be that Gen Z is the most racially diverse generation ever (with Gen Alpha sure to surpass) and that this group is exposed to a wide variety of cultural foods on social media. Whatever the reason, it speaks to the fact that today and tomorrow’s consumers crave the flavors of different cultures.
So why are heritage CPG and foodservice companies still selling faux Hispanic and Asian foods? Why aren’t the smaller, more ‘authentic’ brands being snatched up by bigger players?
I have a few guesses:
1. Milking Cash Cows and Internal Flavors: Many heritage companies are not looking to give up businesses that still make money. Let’s be clear, people still like brands like Old El Paso (General Mills), Taco Bell, and La Choy (ConAgra). Maybe they aren’t seen as ‘authentic’ anymore, but they are endearing in their nostalgic, hybrid flavors. Plus, many companies feel they can get by with their current brands just by modernizing their products with more ‘authentic’ flavors.
2. Health Priorities: Many CPG companies have focused their M&A attention on realigning their portfolios toward health and wellness, both to appeal to consumers and counter regulatory critics.
3. Size of Price: As with all things, it comes down to profit and volume. I’m sure there is a concern that very authentic brands offering non-Americanized options will be too niche and too polarizing, and the ‘juice isn’t worth the squeeze.’ However, that argument is going to hold less water over time as demographics shift.
4. Invest and Wait: Some big CPG companies have made major investments without fully committing. Mars acquired a majority stake in Tasty Bite and Hormel formed a joint venture to create MegaMex Foods to manufacture, market and distribute brands like Herdez and Wholly Guacamole.
5. Authenticity Fears: However, the biggest barrier might be the concern over authenticity itself. Unlike in the past, big companies can’t just create a brand from scratch that trades on the food of a culture without being called out as exploitative or appropriating. Instead, they’d need to keep the founders’ story and the people in place.
All that being said, I feel like this ‘authentic’ tension is bound to burst soon. Many of the startup brands that are nipping at the heels of big CPG are driven by multi-cultural founders and companies offering the tastes and experiences modern consumers want. Companies can’t just continue to add gochujang or chipotle to their current products and hope to appease consumers. One of these big companies needs to take their best practices from acquiring and running H&W startups and apply it to the purchase of one of these companies. All it will take is one big acquisition by a CPG company and I think we will see a land rush in the ‘authentic’ space.
A Return to Benefits
Breyers (a Unilever brand) has partnered with Perfect Day to launch a new Lactose-Free Chocolate dairy dessert (FYI, Breyer’s doesn’t really make much ‘ice cream’ anymore). The new product uses Perfect Day’s precision fermentation process to make whey protein identical to that produced from cow’s milk but without the lactose. Available in retailers nationwide.
Beyond announced that they are launching a healthier version of their burger starting this Spring. After consumer backlash that their plant-based burgers were too processed and less healthy than an all-beef burger, the company reformulated the burger (with aid from the Stanford University School of Medicine and registered dietitians) to have 60% less saturated fat and 20% less sodium than its original. After the company announced price hikes and cost cuts last week, the stock hit a 6-month high.
So What? I added a pic of the original Beyond Burger packaging above (right) because I want you to compare them. The previous pack focused on Beyond, the brand. Yes, there is a protein and sat fat claim at the bottom, but your eyes are drawn to the brand name because there is little else there. Whereas in the new packaging, the brand name fights for attention next to a photo of a burger, an avocado, two ‘NOs’, an updated protein claim and a ‘meatier & juicier’ burst.
Now I want you to look at the Breyers package. Notice anything? Where is the Perfect Day logo? Whereas with previous partnerships the Perfect Day logo was always present (see Betterland Milk, CO2COA chocolate, etc.) here the lactose-free claim takes center stage.
This shift in packaging and marketing strategy signifies a broader trend within the plant-based and alternative protein industry. It's a transition from a tech-centric narrative—where the innovation and the companies behind it were the main attractions—to a more consumer-centric approach, where the focus is squarely on the benefits and appeal of the products themselves. This evolution reflects a maturation of the market; early adopters were drawn to the novelty and ethos of brands like Beyond Meat and Perfect Day. However, as these products aim for wider acceptance, their approach must evolve to meet the expectations and desires of a broader audience.
This change is indicative of an industry-wide recognition that, while the technology behind these products is revolutionary, the average consumer is more motivated by factors like taste and health benefits. In essence, the narrative is being recalibrated. The story is no longer just about "who" made the product or "how" it was made, but about "what" the product can do for the consumer.
This shift is likely to continue as plant-based and alternative protein companies seek to normalize their products as not just alternatives but as preferable, valid choices for a growing segment of the population.
SPONSERED BY MALACHITE
TIDBITS
Red Lobster lost money on endless shrimp, so logically they are now trying endless lobster
What it looks like when adults use TikTok
How Americans really feel about weight loss drugs in the age of Ozempic
Watch how the US military’s largest cafeteria serves 4,500 people in 90-minutes
Mondelez CEO says shareholders don’t ‘morally care’ if the company stays in Russia
McDonald’s is launching a new anime-inspired Savory Chili "WcDonald's" Sauce
Pitbull (“Mr. Worldwide”) is opening up the latest location for his Miami Grill restaurant in Vegas…in a Walmart
KFC launches Chizza in US: a pizza+chicken hybrid
An asthma drug has been found to significantly lessen food allergies
Wendy’s to introduce dynamic pricing—maybe? (I predicted this last year)
University students are upset that vending machine was scanning faces
Dollar General now has 20,000 stores in US
Woodrow Wilson’s breakfast smoothie
30 Chefs Talk about the state of the restaurant industry (TLDR, it’s brutal)
How shoppers are creatively staying ahead of food inflation
The 200-year old sourdough starter that took over the internet
FDA developing new logo for healthy food and front of pack nutrition label
WW stock tumbles after Oprah leaves board
Why vanilla chocolate chip ice cream went from our favorite to almost non-existent