Nadine Baarstad

During a recent industry conference, I met with a group of Produce marketers. Our discussion centered on, among other things, how dramatically the business of selling and marketing Produce has changed. The increase in consumer desire for fresh and “clean” eating has put Produce at the forefront of what’s hot: Restaurants are incorporating more low-calorie fruits and vegetables into their menus. Convenience stores are increasing their offerings of healthier fresh food snacks. The perimeter of the grocery store—namely fresh Produce—keeps growing. And this new “plant-based” trend? Produce is at the center of it. Produce marketers recognize the opportunity in front of them. So, what’s the best direction forward?

A Hybrid Brand Marketing Model

Historically, fresh Produce, like most farmed products, has been treated as a commodity, with marketing playing the role of sales support. Things are changing. Gone are the days of generic nondescript fruit and vegetable offerings in the grocery store. Today’s consumers want to know where their food comes from and what sets one Produce provider apart from another. Today, more than ever, when it comes to Produce—BRANDS MATTER! And creating a brand that resonates is worth investing both your time and money. That is why each Produce marketer’s role must increasingly shift from “trade marketing” to the type of smart brand marketing that builds recognition, loyalty and, ultimately, advocacy. This requires making your brand known and embraced at both the trade and consumer level.

Recently when discussing the importance of branding and creating brand advocacy, a fellow Produce marketer asked, “How can we build a strong brand when we simply don’t have the budgets and outlets of large CPG brands?”

Frankly, some of today’s most effective and breakthrough marketing efforts aren’t coming from the big CPG brands. They’re coming from smaller emerging brands with limited funds that simply find better, smarter ways to tell their stories. They are tapping into the most effective marketing model (especially for Produce): a Hybrid Model of marketing that builds off of historically strong roots as good “trade marketers” and then brings the consumer into the equation. When your brand owns a story that resonates, this is when you create perhaps one of your most powerful marketing tools—the brand advocate. Creating brand advocates, especially for Produce brands that have strong stories, is a true game changer.

The Path To Creating Brand Advocacy

Produce companies have great stories to tell. By actively communicating within both consumer and customer paths to purchase, it is possible for Produce marketers to leverage great brands. The more we are “woven into the fabric” of our customers’ business, their industry, trade influencers and consumer mindsets, the more likely it is that we will impact their buying decisions. Be where the conversation about food is occurring. Make your brand prevalent online through a frequently updated website and strong digital marketing. Get active in chef groups, industry associations, local/regional food events, retail sampling, wherever people are talking. Ultimately the goal is to create an unconditional Brand Love that is at the core of all brand advocacy. Just imagine: an army of people selling your products who are not on the payroll.

Building Brand Love Builds Brand Advocates

So what are the most important rules for creating Brand Love? It’s important to invest your efforts in accomplishing the following:

1. Create a point of differentiation.

Own a distinct value proposition that you can deliver upon and that your competitors can’t claim. This is especially imperative in marketing Produce, where parity can easily be broken with an ownable, resonant story.

2. Present your brand as transparent and authentic.

Consumers/customers want and deserve the truth. Brands that provide authenticity and are relevant will be rewarded with brand advocacy.

3. Understand your consumers/customers to make lasting connections.

Study trends, sales feedback and online forums to understand your customers’ relationships with your brand. And what messaging resonates most strongly with them. Then develop messaging that gives answers and solutions and keeps the conversation going!

4. Leverage the power of digital marketing.

Digital marketing is your new (and affordable) front door into consumer buying habits. Generate social success by driving people to your brand with strong SEO and SEM. Create ways to interact, capture data and tell your story effectively.

5. Develop more integrated marketing action plans.

With limited dollars, it’s more important than ever to speak with one voice, regardless of where you are being seen.

6. Reach shoppers where and when they’re making decisions.

From sampling, to experiential marketing, to digital, to social media, leave no stone unturned in your consideration set. It’s all interconnected.

Marketing Produce continues to evolve. Those who keep up with changes in technologies and customer/consumer mindsets and demands put themselves in a better position to succeed. And thrive. What an exciting time to truly impact the growth of these emerging brands and build Brand Love.

THE FUTURE OF FOOD. WHAT OUR EXPERTS SEE AS 2020’S BIGGEST TRENDS.

The culture of food is evolving so quickly, it’s all we can do to try and keep up. But try we will. After all, getting out in front of impending trends is part of our mojo. We’ve seen a lot of change in the last few years and 2020 will be no different – jampacked with new ideas, new thinking and new ways that consumers and chefs are engaging with food and challenging food companies to keep pace. Here are Foodmix’s predictions for what to pay attention to in the food industry for the coming year.

Plant-Based Food’s Clean Label Problem.
Food companies have been cleaning up their labels for years. And right on the heels of that reformulating comes plant-based everything. Just because something is plant-based, will consumers be mollified into accepting a bunch of weird-sounding ingredients they’ve never heard of? We don’t think so. Educated consumers are beginning to question the large number of ingredients required to give plants that non-plant taste. If it takes 27 ingredients to make your plant-based whatever, shipped by 27 trucking firms from the same number of food companies, well, that label won’t be clean and that product won’t necessarily be more sustainable than the non-plant version it’s replacing. We predict plant-based food’s environmental sheen and health halo will wear thin in 2020.

The Politics of Food Will be Front and Center.
Trade wars, government oversight, farm subsidies and Americans’ diets will be front and center in this election year. Former NYC mayor Big Gulp is in the race. The current administration is counting on the world’s growing demand for protein as leverage in trade wars. The word “natural” is still not government-defined, genetic engineering is either needed or sinister, depending on whom you listen to, and our bountiful harvests are increasingly being used to extract concessions from our trading partners. Regardless of how this all turns out, one thing is for certain: politicians will have wildly different views and programs when it comes to food.

OMG, that dessert is so TikTokable.
TikTok, the fastest growing social media platform of 2019 and newest favorite among Gen Z, has already made huge inroads for wannabe celebrities and amateur “dancers” and will now take off  as a visual romancer of all things food. A mobile app designed to create and share short videos, TikTok’s format will increasingly attract marketers’ paid media budgets and inspire quick food clips by aspiring culinary gurus. It will be used by restaurants to showcase the back-of-house theater of making creative dishes and, of course, by consumers to show off the OMG-yumminess of each bite of that coconut pandan crème brulee.

Food as Medicine? Not Without a Spoon Full of Sugar to Make It Go Down.
Walking into Whole Foods, you see it: a whole shelf dedicated to kombucha. But the popular fermented tea drink’s purported health benefits come with a kicker: a decidedly sour, vinegary aftertaste. Yes, some Americans are embracing food as medicine and – for now – taste be damned. But our consumer research has shown that when people decide what to eat or drink, taste and flavor are at the top of their lists every time. Can you sell bad-tasting food? For a while perhaps, but once consumers find something that offers the same benefits and actually appeals to their palate, they’ll switch loyalties in a heartbeat. We predict that 2020 will see introductions of new and reformulated functional foods that taste good while promising the same dose of well-being as today’s yucky products.

Shaken, Not Stirred…and Hold the Alcohol.
Younger generations of drinkers are discovering that drinking to get drunk is not particularly healthy and makes them unproductive the next day (thanks, hangovers). Yet, Millennials, designated drivers, pregnant women, and others who abstain from alcohol still want to have fun and not be the party buzzkill. Luckily, bars and brands have been paying attention to this new trend. Instead of offering traditional alcohol-free drinks, there is a call for more sophisticated and tasty drinks sans alcohol. In 2020 more beverage companies will cash in on this opportunity (like Heineken has already done with zero-alcohol beer). And mixologists are embracing the art of creating mixed drinks that creatively utilize produce, simple syrups and unexpected ingredients to give mocktails a cocktail flair. So cheers, to staying sober!

Hyper-Personalized Products For Today’s “Look at Me” Society.
Today’s marketers will tap the growing number of today’s media touchpoints and combine behavioral and real-time data to tailor services, and even products, to each consumer. Along with traditional hyper-personalization tools like algorithmic “you may like” options, hyper-personalization will be used more and more as a compelling marketing technique. Matching flavors to personalities, creating hyper-personalized recipes that can be shared on social media, individualized latte art and personalized packaging will meet today’s demands for both a sense of individuality, along with a totally epic opportunity to “go viral.”

CBD Gets Contained.
The new frontier will either be closed or dramatically reigned in. The federal government will provide clarity to how and if CBD can be used as a food ingredient on a national level – or at least lay out a specific timeline to contain what is now a regional business with little oversight. If all this uncertainty makes you anxious, try sucking on a few CBD gummy bears to ease your nerves.

A LOOK BACK Foodmix Marketing Communications 2019 BRAND LOVE FOOD PREDICTIONS

FINALLY SOMEONE REPORTS ON HOW THEY DID!

Everyone has an opinion when the calendar changes from year to year, but rarely are they reporting back as to how they did. Well, the food branding experts at Foodmix Marketing Communications believe in accountability, transparency and all those new era marketing buzz terms. So, let’s peel back the onion layers and see if we stunk or shone in 2019 and put our beverage marketing and food marketing expertise to the test!

2019 PREDICTION: CLEAR LABELS

Clean labels will continue to be a focus in food and drink branding, but that is just the beginning; consumers want to learn about the journey of ingredients, health benefits and brand story – all from the label.

How’d we do: Oh, those discriminating millennials and their priority on making “informed purchasing decisions.” According to a recent Whole Foods study, most millennials want to know where their food comes from and how it’s sourced. As millennials’ spending power grew in 2019, so too did the importance of labels that are not just clean, but informative. Earlier this year, in response to younger consumers’ desire for transparent, informative labels, KIND’s food marketing agency launched a pop-up store that allowed visitors to take an augmented-reality “X-ray” of popular snacks to see how much – and what kinds – of sugar were inside, in contrast to what the labels disclosed. Grade: A-

2019 PREDICTION: PLANT-BASED FOODS WITHOUT THE YUCK

Plant-based will continue to be all the rage; we expect to see a slew of new products, particularly in the snacking and breakfast categories. But players will struggle with delivering on the flavor/taste component of the brand offering. A lot of new items will sound better than they taste.

How’d we do: Up to 2019 the plant-based protein market had been dominated by two young companies: Impossible Foods and Beyond Meat. That’s still largely true, but 2019 saw a slew of established food companies launching or announcing their own products. Kroger introduced plant-based products from burger patties to Bolognese sauce to sour cream. Tyson, Smithfield, Perdue and Hormel rolled out meat alternatives, filling supermarket shelves with plant-based burgers, meatballs and chicken nuggets. Kellogg announced plans to launch a line of breakfast meat substitutes called Incogmeato. And Nestlé said it will start selling plant-based versions of bacon and cheddar cheese to foodservice clients next year. I’d like a bacon cheeseburger, please; but hold the bacon, cheese and burger?

With a glut of new products swelling “meat” cases, it’s too soon to tell who the winners and losers will be – but there are sure to be both. Repeat purchase data and consumer feedback are still needed to determine if brands are delivering on taste and if consumers will stick with a favorite. The brand whose food marketing agency launches a plant-based version of the “Pepsi Taste Challenge,” or wins it, could get a lot of attention! Grade: B

2019 PREDICTION: “I DON’T TRUST FACEBOOK”

“Fake news” and privacy attacks have contributed to the public’s—and food and beverage brand marketers’— wariness of Facebook. Sure, grandma needs to see those pics, so we predict that Facebook will shift to serve older generations, while other more visual and flexible social media platforms that enable storytelling, will be more fully utilized for building relationships between food and foodies.

How’d we do: The latest research confirmed that Grandma and her friends are in fact the fastest-growing group of Facebook users. And we’re looking at you, baby boomers. Forty-three percent of US boomers were on Facebook in 2012; by 2019, 60% had accounts. While the numbers of millennials and Gen Xers on the platform kept relatively steady, surveys showed Gen Zers shunning Facebook in favor of more visual platforms.

And speaking of trust, Mark Zuckerberg may be becoming the second-least-trusted guy in America, next to that pitchman for Sprint who used to tout Verizon’s superiority. In July 2019, the Federal Trade Commission fined Facebook $5 billion for violating consumers’ privacy. Zuckerberg adamantly refuses to prohibit untruthful political advertising, while rival Twitter CEO Jack Dorsey has pulled all political ads. Grade: A+

2019 PREDICTION: “I CAN’T AFFORD TO BE HEALTHY”

The paradigm of the “better for you, the more it will cost you” will begin to shift. With all the investment money flooding the food business and food marketing communications, challenger brands, loved for their healthy attributes, will scale up and be more approachable for the masses.

How’d we do: We missed the boat here. Challenger brands continued to scale up in 2019, but cost efficiencies and a desire to expand their markets did not appear to lead to lower prices at the shelf. While some brand owners were quoted in the press talking about the need to make healthy eating more accessible to those buying food on a budget, foods that deliver on key attributes identified by challenger brands – nutrition, clean label and taste – for the most part remained priced at a premium in the market.

What we did see this year were private label brands stepping up their effort to offer products with healthy attributes at competitive price points. Trader Joe’s, Kroger’s Simple Truth and Whole Foods Market 365 are getting consumers’ credit for having a wide range of affordable, high-quality health and wellness products that are giving challenger brands a run for their money. Grade: D

PREDICTION: “IT’S A FOOD WORLD, AND I JUST HAPPEN TO LIVE IN IT”

The hidden middle aisle of your grocery store is no longer the domain of global foods. Foodies see globally inspired flavors and foods as a way to explore the world when life keeps them off the road.

How’d we do: First of all, it’s not just foodies anymore. We continued to see the overarching globalization of flavor upend the traditional food industry. A 2019 survey revealed that most US consumers are demanding more variety in flavors from their snacks and other center-store food items. Two-thirds indulge on globally inspired foods and flavors at least once a month, while three-fourths want to try flavors from places and cultures that are not their own. And food companies continued investing resources in identifying and delivering global flavors. The food branding experts at Frito-Lay announced use of AI technology to identify micro-markets for exotic flavors and products they might otherwise have missed. Grade: A

PREDICTION: MEDICINE MAN BECOMES MEDICINE MOM

So this trend has been around for a while (let’s say thousands of years), but on the Mom (and Grandma) scene, all types of natural foods are becoming commonplace answers to everyday ailments. Elderberry syrup for colds and flus, essential oils to cure everything from a cold to cancer, and even daily apple cider vinegar shots to aid in digestion. Food as medicine is sure to be amplified in 2019!

How’d we do: While we think we were right on target, this trend didn’t get quite the consumer attention we thought it would generate this year. Evidence of the trend was on display at The Natural Products Expo in March, where countless companies bridging the gap between food and nutrition showed their new elixirs. Supplements, functional foods, extracts and ancient cures were all the buzz.

As this trend grew in 2019, so too did the scientific community’s attempt to get ahead of consumer perceptions. Results of one study suggested that a Mediterranean-style diet may benefit depression sufferers. Scientists weighed in on the purported benefits of apple cider vinegar as a remedy for schizophrenia. And a study from Tufts University suggested that eating an apple a day really does keep the doctor away. The findings supported the concept that food is medicine, and identified the top three healthiest fruits as grapefruit, pineapple and avocado. Yes, apparently avocado is a fruit. Our food marketing experts were also surprised. And a little dismayed, quite honestly, given the years of expensive (thanks, Mom and Dad) therapy it took us to finally accept tomatoes as a fruit. Grade: B

2019 PREDICTION: “MY MEAL KIT SERVICE FEELS LIKE SHACKLES”

It comes every week, and I must prepare it and store it and re-warm it and throw a bunch away. Meal kits, shipped to consumers’ doors directly every week, are proving to be more of a burden than a convenience. But the idea of “elevated convenience” is here to stay. Look for technology to help move this trend along in 2019. Meal Kits (a few will survive via retail partnerships), meal components, delivery service, and yes, even robotics will make it easier to put dinner on the table – or in a cup holder, etc.

How’d we do: Blue Apron, the pioneer of meal kit delivery, continued to see jarring declines in total customers and total orders from 2018, while its market value virtually evaporated from when it was still privately held. Customer churn has remained a major issue with Blue Apron (and with its many me-too competitors like Hello Fresh, Plated and Freshly), despite the company’s best effort to invest in new products and retain customers. Consumers continued trying meal kits… and then stopped using them. Research has showed price as the major barrier to continued usage, as well as having to make a long-term commitment.

This year saw the rise of another concern about meal kits: the environmental impact of excessive packaging. The scientific verdict is still out on whether meal kits have larger carbon footprints vs. conventional food delivery and preparation methods, but popular sentiment that meal kits are wasteful seems to be growing.

Meanwhile, robotic food delivery continued to creep – err, to roll – closer to being mainstream. Starship Technologies announced that it had raised $40 million to expand its food-delivery robots from two college campuses to more than 100 by 2021. Danger, Will Robinson, I’m outside your dorm room with crappy pizza! Grade: A+

2019 PREDICTION: BIG BRANDS BITE BACK

The reports of the death of big brands have been highly exaggerated. Market share declines have gotten the attention of legacy brands that still have considerable equity and leverage in the marketplace. Reformulations of existing items will continue, as will the engagement in start-up incubators looking for that next big thing.

How’d we do: Cleaner labels, new line extensions and product launches were among the methods that legacy food manufacturers and their food branding agencies used in 2019 to stay relevant. Kraft Heinz launched Lunchables Brunchables. PepsiCo introduced a slew of new line extensions from a Wild Cherry version of Pepsi Zero Sugar to Pure Leaf Cold Brew iced tea to a dairy-based shake line under the Gatorade brand. General Mills struck back against newer snack bars like KIND with new offerings, such as a wafer-style Nature Valley bar and a higher-protein Fiber One bar. Even boomers’ retro-favorite Pop-Tarts got a re-do; Kellogg rolled out Pop-Tarts Pretzel, and began pushing the long-time breakfast staple into new dayparts and occasions. Although we question the world’s need for the new Baby Shark cereal from Kellogg’s, seems old habits die hard. Start-up incubation by legacy brands showed few signs of slowing down. The Garage, an incubator run by Hershey, began rolling out a line of chocolate truffles with fewer calories, less fat and less sugar. Yum! Grade: B+

2019 PREDICTION: “MY WIFE SAYS GROWN MEN DON’T GET TUMMY ACHES”

Nomenclature aside, gut health is being better understood and will be a big focus in 2019. Prebiotics will gain some attention, but probiotics will continue to be featured as well. As Americans understand the role gut happiness plays in overall health, wellness and quality of life, look for fewer tummy aches in 2019!

How’d we do: Research on prebiotic supplements is still in its early stages, and by the end of 2019 many of the benefits remained largely theoretical. For those reasons, growth in supplements was slow, and some online nutritionists noted that because potentially helpful prebiotics can be found in fruits and vegetables, it’s best to consume prebiotics naturally whenever possible.

Meanwhile, consumers’ use of probiotics continued to grow, with a study showing one in four US consumers taking the supplement to support cognitive health. And 2019 saw another promising – and surprising – food that makes tummies feel better. UK researchers found that dark chocolate with 70% cocoa can promote friendly bacteria and reduce gut inflammation. Grade: C

2019 PREDICTION: DAVE’S NOT HERE (BUT HE’S ON HIS WAY)

Okay references to Cheech & Chong Movies of the ‘70s aside – cannabis is a cultural wave that shows no signs of slowing down. Aside from munchies, what are the implications for food? Well, as strains/components of weed emerge – like CBD Oil – which is not psychoactive but is known for its pain-relieving properties, expect more of cannabis-related ingredients popping up in food and beverages. Federal regulations will need to change to maximize the potential, but many regional food brands are already utilizing components – and the big beverage companies are well into their research and development processes.

How’d we do: Dave got a lot closer to being here in 2019. The year was awash in news of food companies and their food marketing agencies announcing their entry into cannabis. Arizona Iced Tea entered marijuana edibles through a licensing deal with Denver-based (where else?) weed producer Dixie Brands. Molson Coors announced plans to launch CBD-infused water in Canada. This year saw the opening of the first-ever US-based cannabis consumption-friendly restaurant, Lowell Farms Café in West Hollywood, CA (where else?). And as CBD got added to coffee, RTD beverages, gum, chocolate and just about everything else, functional ingredient sales growth of CBD through US retailers more than tripled YOY. Hey, you can even get CBD at your gas station convenience store.

Though now legal under federal law, CBD is still subject to regulation when sold with a claim of therapeutic benefit. And federal policy still maintains that adding CBD oil to food products is the same as adding a prescription drug — in other words, forbidden without a doctor’s prescription. Grade: A+

That’s what we thought and what we learned this year. As our beverage and food marketing experts prepare for our 2020 predictions – and yes, subsequent scorecard – we would love to hear from you! What do you see as a big trend in 2020? If we pick yours, we will credit you – and maybe make you a bit more famous!

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