The natural guys looking at the big guys

Organic food and drinks companies are increasingly looking at teaming up with MNCs (multinational corporations). MNCs with large distribution networks provide easy access for niche product companies that are struggling to penetrate larger chains.

The natural product segment is currently one of the fastest growing segments, making it very attractive for MNCs. As large companies try to diversify away from slower growth segments, natural product companies are being snapped up.

However, staying independent within a large conglomerate can be challenging. Brands can get diluted, and some consumers might view it as “the nice organic guys selling out to the evil empire”. Cost cutting efforts such as substituting for cheaper ingredients, will also have severe negative implications in the long run. As one executive put it, maintaining “we are the world let’s hold hands” culture, is sometimes very difficult for larger organizations.

The changing cola wars

“The changes have been driven by consumers searching for healthier options and also showing a strong interest in a wider variety of beverages”. AJC 28/03/08

Fair Trade Cola

Friends Fair Trade Norge (FFTN) has launched Ubuntu Cola in Norway. The  product is the first certified Fair Trade CSD brand to be launched in the country. Just Drink 15/ 02 / 08 (subscription required)

The move to metal

Beverage makers are embracing metal packaging. Aluminum bottles offer enhanced graphic capabilities and the ability to keep beverages colder, albeit at a cost. Brandweek 17/12/2007

Moving up the food and beverage chain

Food, beverage and personal care companies are adjusting to changing consumer demands and needs. Companies are promoting higher margin food and water products. Business Week 18/01/2008

Non-alcoholic beverage outlook 2008

 

According to industry experts new drinks and acquisitions would be among the growth drivers in 2008. In general developed markets traditional soft drinks sales volume have been in decline, as health-conscious consumers opt for alternative beverages such as bottled waters and teas. In emerging markets however, strong grow will continue for traditional soft drinks sales volume. Reuters 10/12/07

Soda drinkers health journey

Consumers are becoming more particular about the type of beverages they consume. Beverage companies like Coke and Pepsi have expanded brand portfolios by adding non-carbonated and functional drinks, and by introducing a health-conscious carbonated segment for consumers. CNN Money 11/16