Here is last week’s newsletter, in case you missed it.
In this week’s newsletter:
Antithetical Innovation: How breaking the norm pays off
Maslow’s Marketing Matrix: Aim lower!
Cozy Cardio: Intensity is out
All About That Base: Changing fundamentals
New Product Gut Reaction: The WOW! and the WHAT?
TIDBITS: Fun and interesting news from the world of food and the food industry
Antithetical Innovation
Not one, but three companies have recently launched new hydrating coffee products. First up is ElectroBrew, a company that infuses electrolytes into ground coffee. Next is VitaCup Hydration, an instant coffee with coconut water and electrolytes (magnesium and Himalayan salt) in sachets for on the go use. Lastly is Loco Coffee’s canned cold brew with coconut water (promising as much potassium as a banana).
Hero Bread is out with zero net carb Hawaiian rolls. The rolls have 0g sugar, 11g of fiber and 4g protein per serving. Currently the product is a limited edition. Available via the company’s website.
Prebiotic soda brand poppi aired their first commercial during Super Bowl LVIII and became the #1 watched commercial of the broadcast. Called “The Future of Soda is Now,” the ad proclaimed that “this will be the last moment you think of soda as a dirty word.” (Word on the street is that Coca Cola is looking to acquire poppi).
Speaking of prebiotic soda, Health-Ade is launching their own. The kombucha maker has announced a new brand of “soda with benefits” called SunSip. Containing 5g of prebiotic fiber, vitamins C, B6 and B12, minerals and no stevia (likely a shot at poppi), the new beverage is available in four flavors: Raspberry Lemonade, Cherry Cola, Strawberry Vanilla, and Root Beer.
BFY candy maker JoyRide has launched a LTO ‘launch pack’ of their Sour Strips product. The plant-based candies have 4g sugar, 9g net carbs and 8g of fiber per serving. The pack includes Green Apple, Blue Raspberry, Strawberry, and Pink Lemonade. In addition, the brand has a new chief creative officer/investor/part-owner in YouTube influencer Ryan Trahan.
It’s Skinny, makers of extremely low calorie konjac noodles, is out with It’s Skinny Mac, a gluten free, keto macaroni and cheese with 5 net carbs and 2 grams of fiber. Available on the company’s site.
So What? Much of the innovation we think of in CPG is what could be called ‘Incremental Innovation.’ A series of small tweaks is made to the product and/or packaging to make it better tasting, cheaper, or more convenient.
However, there is another approach that is both riskier but potentially more breakthrough. I call this approach ‘Antithetical Innovation.’ Here, instead of playing by the expectations of the category, you invert the norms and offer a benefit that that targets an accepted category negative.
For example, ice cream is categorically seen as high calorie. Most brands focus their innovation on developing different flavors/textures, making it more affordable or premium, or creating handheld or family pack versions. However, what really disrupted the ice cream category was none of these innovations, it was Halo Top. It came in and subverted the nature of the category itself, turning the reversal of an accepted category negative into their main benefit . By offering the same delight but with radically lower calories, Halo Top made a substantial impact.
The result of this type of innovation is oxymoronic products, which are shocking and attention-getting. Coffee is seen as dehydrating, let’s make one that does the opposite. Soda is categorically bad for you and has no redeeming benefits, let’s launch one that is good for your gut.
While there is nothing wrong with incremental innovation, if the category is mature and bloated with competition, ‘antithetical innovation’ can be powerful. However, before your brand decides to go this direction, there are a few watchouts:
Consumer skepticism: Defying category norms will likely be met with disbelief. Brands need to be ready to back up claims with simple, verifiable info.
Brand Fit: It’s hard to be antithetical to the category if the rest of your brand is part of the norm. Therefore, this approach often doesn’t work for incumbents (although it is possible)
Market Readiness: If the category is new or consumers are still enthralled with incremental innovation, antithetical innovation efforts might not hit right. That’s why it is often best in sleepy categories (a great example is the brand immi which is a healthy instant ramen—you can’t get much more antithetical than that).
Gimmick Perception: Being truly counter to the category can come off as gimmicky. Brands really need to seem trustworthy and stable to be believable.
Maslow’s Marketing Matrix
Plate of Plenty, a General Mills brand, has launched for DTC. The dry mix of oats, beans, veggies and spices, when added to any ground meat, “boosts servings by 50%.” The product is offered in multiple flavors such as taco, chili, zesty Italian, and herb & onion to match common uses for ground meats. The brand is currently available for order at their website.
Target has launched a new brand of value-based products called dealworthy (yes, it’s purposefully uncapitalized). The new brand will include over 400 items from paper goods to phone chargers. The budget brand will replace the company’s Smartly line, while it’s other value brand Up&Up will be repositioned to be slightly higher priced. The dealworthy brand is likely meant to go head-to-head with dollar store offerings and Amazon’s Basics.
Pepsico, in their annual readout of fiscal 2023, elaborated on how impactful the continuing Quaker recall was to the company. Late last year, and continuing into this one, Quaker recalled granola bars, granola cereals and related cereal (e.g., Cap’n Crunch bars) due to potential salmonella contamination. For Quaker Foods North America, operating profit declined 79%, primarily reflecting a 73-percentage-point impact of product returns and charges associated with the Quaker Recall.
Frozen beverage QSR chain Smoothie King is out with a new Sleepy Girlzzz Smoothie. Inspired by the TikTok sleepy girl mocktail trend, the new smoothie contains cherry juice (a natural source of melatonin) to help people get some rest. The drink is available at stores nationwide.
Canadian meal kit company GoodFood launched a 3rd Date Kit in partnership with online dating site Bumble just in time for Valentine’s Day. The kit was meant to help couples take the next step from simply eating at a restaurant to making a homemade meal together. The kit is only available for a limited time.
So What? Maslow’s Hierarchy of Needs is an overused trope within marketing circles. However, it is very useful construct, and my frustration with it comes more from people’s misunderstanding of its intention rather than its message.
Even though it’s presented as a hierarchy, Maslow never intended for it do be seen as a ladder. People don’t progress to the next level and no longer need the previous. Instead, people are constantly circulating between levels, occasionally progressing upward, while still needing the foundation.
There is a lesson for brands in that. Brands forget that their consumer (and their portfolio) requires a variety of needs be met. Too often, brands get to a point where they message only higher-level needs and assume the rest have been satisfied. This is a mistake.
A healthy portfolio satisfies a variety of needs.
When assessing the strength and health of a company’s portfolio, I’ve led corporate teams through an exercise I call Maslow’s Marketing Matrix (MMM). Here we map brand messages and product benefits to the hierarchy and look for over-saturation (especially at higher levels).
Most brands, beyond luxury, can’t survive if all they talk about are improving the self or status. It’s important to consider messages that speak to more basic human drives like affordability, physiology (e.g., sleep), and human connection.
Societies and economies go through peaks and troughs. Sometimes consumers must be reassured that their basic needs are met, whereas othertimes they are comfortable enough to aim higher. Those brands that diversify and speak to a consumer’s whole self are more likely to survive.
That being said, these foundational needs aren’t always ‘sexy’ or easy to message.
For example, products that speak to stretching meat might have a stigma attached to them because they indicate meager financial means. Therefore, brands must work hard to achieve the right message of savviness and frugality versus desperation. (Plus, good merchandising. Which is difficult with DTC).
Similarly, messages on food safety are often seen as gauche in the food world, a topic you do rather than speak about. However, as more food products are sourcing from diverse locations and more channels are serviced, recalls and outbreaks are increasing. Just look at the ongoing Listeria outbreak that has killed 2 and hospitalized dozens. In certain categories, food safety could be a message to brand around.
In the end, companies that focus on only one facet of their consumers’ needs are missing the bigger opportunity.
The Rise of Cozy Cardio
Frozen dough brand Base Culture is making their first foray into the shelf-stable bread aisle with their new Simply line of sandwich bread. The new breads contain “wholesome, clean ingredients” like honey, flax, coconut, and hemp. Available in Classic, Hint of Honey and Super Seed varieties.
Superfood burger brand Actual Veggies is out with a new take on French fries. Super Fries combine veggies and legumes to create a high protein fry experience. The new fries come in three varieties Classic Potato, Sweet Potato and Purple Sweet Potato. Each has 5-6g protein, 3-4g fiber, and are cooked in avocado oil.
Quest, a Simple Good Foods brand, is out with a new soft-baked iced cookie. The new Frosted Strawberry Cake Cookies have 1g of sugar, 10g protein, and 2g net carbs per serving. Available in retail locations and the company’s website.
Canadian sparkling water company HealTea has launched a line of botanically infused waters (sparkling and non-sparkling). The caffeine-free waters are “invigorating yet calming” and made with a mix of reverse osmosis water, maple syrup, lemon juice and wild herbs. Varieties include Ginger + Chamomile, Peppermint + Dandelion, Hibiscus + Mango, and Nettle + Rosemary.
Kraft-Heinz introduced the first innovation for Crystal Light in more than a decade. The new product line supplies new benefits to the low calorie drink mix ranging from Immunity Support (with zinc and vitamin C), Energy Boost (with caffeine) and Mixology (inspired by cocktails).
UK-based Lucid is launching a line of functional mushroom and adaptogen-infused snack bars. The all-natural, vegan, high protein and high fiber bars contain Lion’s Mane and Reishi mushrooms as well as ashwagandha and maca. The bars are meant to “help revitalize and de-stress” and are available in four comforting flavors including Cookie Dough, Peanut Butter Jelly, Chocolate Hazelnut, and Banana Bread. Available at select retailers in the UK and via the company’s website.
So What? In late 2022, Hope Zuckerbrow began posting her cardio routine to Instagram. However, this wasn’t a HIIT workout with fancy attire, high-tech gear and maximum burn. In fact, it was the exact opposite. Hope’s video showed her in a pair of sweatpants and fuzzy slippers, along with a cup of tea, walking at a leisurely pace on a tiny treadmill in her living room watching TV.
Cozy Cardio was born and it went viral.
Today, Hope has a million followers and has spawned a sensation. She seems to have tapped into a group of people who feel left behind by today’s fitness/health movement, with its AMRAP (As Many Reps As Possible) max-effort mindset. For this group, being fit appears unobtainable because the difference between current activity and needed activity are so stark it is depressing. However, leisurely walking in your pajamas while watching Netflix seems doable.
Societally, of course, this is all attached to even bigger trends of people feeling exhausted with the constant need to excel and achieve. So, we see people in China ‘lying flat’ (tang ping) to express their exhaustion at the constant push for ‘more.’ Or people on TikTok recently saying they are ‘hurkle-durkling’ (Old Scottish meaning “to stay in bed even when you should be up doing things”).
The lesson of Cozy Cardio extends beyond fitness routines and into the entire universe of food/bev. I think this could play out in numerous ways:
Comfort Health Foods: Introduce food and beverage options that marry the comfort and ease of familiar, "cozy" foods with nutritional benefits. Think about products like "relaxing" teas that promote hydration and calm, or nutritious, easy-to-make comfort meals/snacks.
Simplified Superfoods: While superfoods are often marketed for their dense nutritional profiles, they can sometimes be perceived as exotic, expensive, or complicated to incorporate into daily diets. Simplifying superfoods by incorporating them into familiar and comforting products can demystify and broaden their appeal.
Gentle Nutrition: Embrace the principle of "gentle nutrition," which focuses on adding nutritional value and making peace with food, rather than cutting out or restricting. This approach aligns with the Cozy Cardio ethos by encouraging a kinder, more forgiving attitude towards diet.
Inclusivity in Health Messaging: Shift the narrative around health foods from one that emphasizes peak physical fitness and dietary perfection to one that celebrates all steps towards a healthier lifestyle, no matter how small. This could involve marketing campaigns that feature a diverse range of body types and lifestyles, but also seeing health as both a mental well-being goal as well as a physical one.
All About That Base
PEP bars (plant-energized peptides), from Step Change Innovations (a company that commercializes ingredients), is a snack bar made with PeptiStrong™ a novel peptide identified in fava beans using AI technology. The company claims this newly identified peptide is clinically proven to build and maintain muscle mass and support faster recovery. Available via the company’s website in three flavors, Honey Nut, Chocolate Fudge and Berry Bliss.
Up Protein has launched a new line of protein bars containing a mix of superfoods. Part of the protein is derived from the company’s Orthoptera Blend (a sustainable protein from crickets and grasshoppers). Bars also contain omega-3 fatty acids and omega-6 fatty acids in addition to minerals and vitamins.
The Algae Cooking Club has launched a line of cooking oils created via algae fermentation. The company claims that production of their oil generates drastically less CO2 than conventional olive or avocado oils. Addtionally, their algae oil has a healthier omega-9/omega-6 fatty acid ratio than other oils and it is “chef-grade,” with a high smoke-point and versatility, suitable for use in cooking and baking. An initial limited supply is available soon.
Grapeseed oil producer Salute Saute is out with an upcycled grapeseed flour. The new flour, made from the spent grape seeds after oil pressing, is claimed to give a nutty and crisp texture to sweet and savory baked goods (as well as being high in antioxidants, calcium, potassium, and fiber). Chardonnay and Merlot grapeseed flours are available.
So What? We are getting to a point in food and beverage development where differentiation of the base macronutrients is likely needed. Every brand has protein now, so what makes yours different and better? The same with oil or flour, the consumer has seen them all, where are the new ones?
I think the next several years will seen a lot more of these novel fats, proteins, and carbs arise, especially with the aid of AI.
Gut Reaction
TIDBITS
Can Oreo cookies lower your cholesterol more than drugs? Researchers say maybe
What’s the most trusted type of institution in the US?
Snoop Dogg sues Walmart in cereal spat
Speaking of Snoop Dogg, he and Dr. Dre (finally) launch a Gin & Juice RTD canned cocktail
Target considering a move to fight Amazon Prime?!
Social media users share Chex Mix prices to figure out airport inflation
How is this possible? We’re not eating enough bacon
How introverts (people working from home) have changed the economy
Genetic engineering beyond food: the first glow-the-dark houseplant hits the US market
Are blueberries really blue? Science now has an answer
The cost of cocoa (and chocolate) is at an all-time high and candy companies are feeling the pressure
A potential cheese extinction? Microbes responsible for famous cheeses are dying
The sriracha shortage had nothing to do with peppers, and everything to do with a friendship gone bad
‘AI Washing” in business is getting the government’s attention
OpenAI’s new text to video offering Sora looks amazing (who will make the first all AI generated ad or commercial?)
Scientist develop a hybrid beef-rice that no one asked for