Advantages you can plan and design for

Food culture in America has dramatically shifted during the last 10 years. People favor premium quality, higher priced products that address modern dietary needs serving health, wellness and sustainability goals. Better food experiences, fresh ingredients, more sophisticated tastes and the brand sustainability symbolism that goes along with it help complete the mission and taste adventure. This is the preference paradigm where all innovations whether from legacy brand or new player must pay homage on the road to success.

• Here are four key strategies that hold sway over your ability to succeed, to grow and gain share for food and beverage innovations.

We highlight these four distinctive growth strategies in part because they are passed over all too frequently. Eclipsed by the allure of instant scale, every-new-retail-door-is-a-good-door and ill-advised distribution moves that undercut the very brand value proposition that premium CPG solutions embody. This helps explain the high innovation failure rate or seemingly insurmountable plateaus where new emerging brands stall out, never getting a shot at the high volume homeruns of wider adoption downstream.

Want to assure your brand innovations are successful and not a casualty on the path to pantry and fridge domination? Then read on.

1. Your product concept is the marketing lynchpin (watch out for the Special Occasion Trap)

Food retailers care about velocity and monitor it relentlessly. Marketers care about scale because velocity and scale together are the flags of a winning concept; thus, why growth nirvana for premium CPG success always begins with strategic product and category design. Your innovation goal is a product that naturally, intuitively fits with frequent if not daily consumption occasions and feeds high repeat purchase behavior. Retailers understand this and look for it.

Products that are intended for niche, episodic occasions are much harder to score scaling victory for the very reason they don’t lend themselves to velocity, high repeat purchase business imperatives. If fancy jams are your jam, be prepared for the embedded difficulties that come with slow turn categories or segments with a narrow, special interest fan base.

2. Public ‘display’ categories add symbolism romance to marketing

Food and beverage purchases these days are largely symbolic. People ‘wear’ their brands as a statement, a flag, a visible demonstration of what they value and what they wish to signal to the world around them about who they are.

You know this so can you plan for it, use it. How can you enable consumers to fly your symbolic brand flag? Does your premium brand innovation lend itself to public display occasions such as barbecues, parties, taken to the office or gym and consumed in a social setting? Brand iconography, symbolism and telegraphing of same can be deployed here to help your users display and vote their beliefs and values. Too often this opportunity gets overlooked.

3. Pack strategies can ignite new occasions

No doubt you’ve heard of price-pack architecture. There is a bit of CPG magic in this strategic growth solution. It helps you lean into new and different occasions while creating higher average retail price points (more cash and flow) with a perceived embedded consumer discount, and more facings (brand billboard) at shelf. Pack architecture projects open the door to migrating your users to new consumption occasions.

Amplify Brands’ Skinny Pop brand rode the pack architecture idea to fame and fortune by creating both smaller bags and larger pack sizes of their pound-able guilt-free popcorn. The move lifted average price points while leveraging new use occasions from school lunches to birthday parties. When you offer new packs the input costs are manageable while adding exponential growth on the income side and serving the usage occasion/velocity rule at the same time.

4. The slightly uncomfortable but immutable rule of upscale zip code distribution

There’s an old but wise saying: fish where the fish are. For premium priced food and beverage innovations the distribution strategy decisions you make will have an enormous impact on your ability to gain traction and scale the business. Where you do business matters especially in the early going.

Premium innovations are home to higher quality ingredients, real food-based formulations.  These brands reflect the lifestyle symbolism embraced by consumer cohorts who in reality control the fortunes and failures of new product fame or flame out.

What do we know: educated, high earning households congregate in upmarket neighborhoods. Trial for premium priced CPG innovations will always be better served in retail doors that exist to serve an upscale shopper base. These folks not only won’t flinch at your higher price point, they are also hunters of new premium innovations. Early trial fuels their social currency of being a word-of mouth warrior.

There was a time when Whole Foods owned the early trial zone for premium CPG innovations, but other banners have caught up in their premium offerings. Now it’s a zip code exercise where your decisions are more about the education levels of the communities you distribute in ahead of other considerations.

The guidance: not every new door is the right retail door. Controlled expansion plus patience are better for building your business rather than taking distribution wherever you can get it. EDLP retailers have a different model and a different shopper base driven more by price point than your quality ingredient, healthy lifestyle bona fides. Walmart is better for mass legacy brands for this reason.

• Broader distribution and wider geographic expansion make sense when innovations become mainstream and lower income households begin to take them up. Going that route too early can create problems leading to profit-eroding price drops and even delisting if you’re not careful.

There are 40 metro areas in the U.S. where greater than 30% of the adult population has a Bachelor degree or higher. That’s a cohort of more than 65 million adults. Higher income zip codes within those metros are primed for premium CPG introductions. These higher income, higher educated households are tuned-in to the evolutionary changes going on in modern dietary preferences. They are listening to your narrative.

• In sum, you will grow in geographic areas where large numbers of people attach their lifestyle symbolism to your brand and spread it in their social circles. You should be on shelf in the banners where the shopper population is experientially primed to look for you.

Don’t forget to consider University towns for the same reason. These can be enthusiastic communities for bold, dietary alterations and innovations. Young adults especially are early adopters and influential in making new dietary shifts.

Here is the premium CPG innovation recipe for success assuming the product design fits squarely in the frequent consumption arena.

• Build visibility, awareness and discoverability in the right stores in the right zip codes.

• Increase local household penetration.

• Increase consumption rates among early-in users by adding consumption occasions.

If you have these challenges and strategic questions as you plan your innovations and launch strategies, use this link to start a conversation with us. We can help you create a roadmap to success and the brand narrative well told to go with it. We are new product launch specialists.

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Our online questionnaire can help you avoid gaps and misfires

In a recent study conducted by our insight research partner Brand Experience Group (BXG), an analysis of sustainability strategies among UK-based grocery retailers revealed the top three banners were leaving more than $9.5 billion in sales on the table. This is revenue they could have earned if the right strategies had been fully implemented to meet shopper expectations on clearly communicated sustainability policies and performance.

The incredible irony: every single one of the food retailers has some form of sustainability program or messaging in place. All of them are underperforming because the programs are either not fully built out, ineffectively communicated to stakeholder audiences or both.

• The same business case with similar outcome metrics has been calculated in CPG food and beverage categories. What’s going on here?

A significant percentage (55%) of your customer base right now, today as you read this, cares deeply about the sustainability bona fides of the brands and businesses they prefer. The banners that step ahead of the competition to correctly leverage sustainability commitments will win in sales and share gains.

There is a clear, proven business case for an optimal strategic game plan on sustainability.

• The operative words here are “correctly and fully.”

Half measures, absence of key baseline assessments and mitigation targets plus anemic communications are often the root cause of subpar outcomes. Collectively these diluted tools operate to marginalize performance on what will be an important 2022 strategy to elevate your business results.

Think of it this way: if you don’t get this right, other enlightened brands will ultimately gain competitive marketplace advantage at your expense.

What should you do now?

We recommend investing 6 minutes of your time to take our online Sustainability Readiness questionnaire. There’s no cost. The questionnaire covers four key areas of potential readiness practices. It has a readiness scoring mechanism underneath to help quantify current conditions. When you click submit, our team analyses the answers and produces an outcomes scoring report. The meeting we have with you to review the scores and discuss implications is also complimentary – and often described as “enlightening.”

We will make topline recommendations for improvements; an integrated approach that can create and deliver the right sustainability strategies. That said, it is entirely up to you whether we move ahead to dive more deeply into customized solutions or leave you with new readiness intelligence on your business.

What will happen when you take the questionnaire?

Discovery

• Organizations that have already completed the questionnaire report it’s elevated their awareness and understanding of the key best-practice components in a sustainability program.

Clarity

• We have found brands thought they were doing the right things – but learned of deficits and gaps in their current efforts and communications programs.

Readiness

• In every case we’ve found that readiness can be improved in key areas that are critical to success, to generating business from the investments and avoiding greenwashing – which is a vulnerability.

It doesn’t matter how big or small your business is. Sustainability is a key component of brand value no matter if your company is Fortune 50 or just starting out.

You will find the questionnaire outcomes meeting to be informative, educational and eye opening. It requires no investment on your end except completing the questionnaire with honest reflection on what you’re currently doing. The questions involve simple yes or no answers. We provide comment boxes if you’d like to add any texture.

Top performing sustainability strategy isn’t just a nice-to-have. The BXG study has confirmed the business case. Without optimal programming you may be leaving significant sales on the table while also ceding marketplace advantage to brands that are ahead of the readiness curve.

You have nothing to lose and everything to gain. Use the link below to take the questionnaire. You’ll find it interesting and the outcomes discussion helpful to planning.

Our Sustainability Solution team

Here’s the team that created the questionnaire and the Brand Sustainability Solution program – the first integrated answer to improved sustainability business performance:

Emergent – Chicago-based marketing communications company with strategic brand guidance and creative skills to build a multi-faceted outreach program that persuasively conveys your sustainability story to key stakeholders.

Brand Experience Group – London-based consumer insight research company to help determine what your core customers believe about sustainability practices, what initiatives matter most to them and establish the KPIs that measure business performance from your sustainability investments.

Informed Sustainability Consulting – Seattle-based consultants build the baseline with science-based carbon footprint assessment and Lifecycle Analysis to determine exactly where your production and supply chain are on sustainability performance. ISC also helps you set climate mitigation targets and identify sustainability improvement opportunities.

Click here for the Sustainability Readiness questionnaire.

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Vulnerability for climate chasers is escalating…

What sustainability stands for is expanding and the process to earn credit for acting sustainably has taken on a new look.  Here, we examine how to prevent the risk of unintentional greenwashing. This article sheds light on what may well be the key driver of marketplace competitive advantage for progressive brands in the year ahead.

What is the most popular word in modern CPG and retail marketing right now? Sustainability. It is invoked, announced, trumpeted, billboarded, spotlighted and worn like a new suit of climate- positivity relevance. If you’re not sustainable, what are you? Most assuredly not enough.

Sustainability may also be one of the most misappropriated terms in modern CPG and retail marketing. What’s on the horizon is significant vulnerability for brands and businesses that fail to dial in the infrastructure and bona fides that make sustainability claims real and trustworthy. As the marketplace moves to embrace this issue more fully, scrutiny levels will intensify as stakeholders, investors and consumers become increasingly knowledgeable about what is authentically working to reduce the impact of climate damage from what isn’t.

The sustainability goal posts are moving

At one time sustainability was focused primarily on fossil fuel consumption and other forms of non-renewable energy and water use. Now we’ve learned that agriculture and meat production are the second largest contributor to global greenhouse gas emissions and thus food choices actually have a climate impact. The rigor required to address climate impact assessments and policies has gone way past using “earth-friendly” straws in a beverage or putting solar panels on the roof of the office building.

The pathway to verified and validated sustainability behavior is connected directly to overall carbon footprint and is paved with science, data and comprehensive analysis of:

• Brand higher purpose
• Processes and production
• Supply chain and ingredient standards
• Distribution systems, transportation and in-market behaviors
• Over-consumption of land, water and non-renewable energy
• Physical facility operations
• Employment policies and practices

The goal of this thorough examination is assessing a product’s carbon impact to the planet. In the near future carbon footprint scoring will come to product labels. Consumers want to purchase products that are mitigating greenhouse gas emissions and will need help at the shelf to make accurate comparisons.

Eco-product design

Similarly, these analytical tools can be deployed to conduct an environmental evaluation of product design. This helps brands determine where they can swap out high carbon ingredients, source from deforestation-free suppliers, and cut down on unnecessary waste all while evaluating cutting-edge packaging solutions.

Why all of this matters to your immediate future

Emergent’s consumer insight research partner Brand Experience Group (BXG) recently conducted a ground-breaking study on consumer attitudes about sustainability. The report found a significant rise in the number of consumers who will hold brands accountable for sustainability practices and behaviors.

• 34% are committed or passionate about sustainability claims and policies
• 32% are concerned about the issue and paying attention to it

Segments showing the highest degree of sustainability concerns skew younger in the Millennial and Gen Z cohorts and reside mostly in higher income households.

Bottom line: these concerns are becoming widely held in a significant swath of the population and continue to grow.

Greenwashing risks

Brands that invoke climate faithfulness while taking a half-baked stance on managing emissions are risking marketplace disruption. We are all living in a challenging media environment where posers are likely to be outed.

That’s why Emergent has come together with BXG and Informed Sustainability Consulting to create the first fully integrated brand sustainability services program that:

• Marries scientific carbon footprint analysis with consumer insight research guidance on user attitudes and opinions

• To inform a comprehensive suite of brand communications tools that help businesses convey their sustainability story to consumers and stakeholders

Use this link to ask any questions, share your thoughts or request a preview of an upcoming special report on climate risk assessment and communications.

Looking for more food for thought? Subscribe to the Emerging Trends Report.