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.

Men and women eating habits

A study confirmed conventional wisdom that most men eat more meat than women, and women eat more fruits and vegetables. Some of the surprises include:

Men were much more likely to eat asparagus, brussels sprouts, peas and peanuts.
Women are more likely than men to eat eggs, yogurt.
NYTimes 19/01/08

Social media and CRM

“Businesses are moving beyond conventional discussion forums to host complete online communities focused on what customers really care about”. CustomerThink 28/01/08

The ethical battle

CPG (Consumer Packaged Goods) companies are fighting a war over who is the most ethical. Current battle fields include corporate social responsibility (CSR), the Internet and public retaliations. Consumers are increasingly attracted to companies that “fit their values”.  Advertising Adge 03/03/08

US 2008 Hot List for Food and Drink

Find a selection of quotes from MSNBC’s 2008 hotlist:

Beer- Craft beer
“The volume of craft beer sold in the first half of 2007 rose 11 percent compared to the same period in 2006. People like the taste of hand-crafted beers that deliver unexpected flavors.”

Spirits
“Over the past 15 years, there has been a trend toward people drinking less but drinking better. The superpremium segment has enjoyed double-digit growth over the past four or five years.”

New Enhanced Beverages
“Individuals under age 30–are looking to beverages to cure everything from fatigue to hangovers.”

Special needs food
Organic food and products will continue to grow. “There’s a growing category of special needs food that means adding terms like gluten-free, low-glycemic and allergen-free to your vocabulary.”

Upscale Frozen Desserts
“Ice cream, gelato, frozen yogurt and even shaved ice concoctions are keeping customers cool as the industry heats up.”

Superfruits
“Pomegranates, blueberries and now açaí mean superfruits are on the rise.”

Convenience/packaging
“Food packaging will become more sophisticated and environmentally friendly.”

Local food
“Interest in local US and regional food has been exploding.”

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