One brand’s story of transformational growth.

Awhile back we represented Sargento Foods, today the leading brand in dairy case cheese. When we started, Sargento was looking for a new chapter in its legacy as a packaged cheese-specialist, family-owned company. However, the Sargento business was challenged with rampant category commoditization – cheese is cheese is cheese. The segment share leader was store brand, providing ample evidence that consumers primarily bought on price.

• Our goal was to transform the business by reinventing the dairy case cheese category. In doing so, devise a competitive advantage for Sargento that would change the landscape against historic branded segment leader, Kraft Foods.

Working in collaboration with Brad Flatoff, Sargento Chief Marketing Officer, insight research was commissioned to dig into consumer segmentation and behaviors in cheese use. The effort unearthed an evolving consumer relationship with food. A new and important audience was emerging, roughly 26% of the category overall, who were heavy cheese users and had a budding love affair with food.

• This food-savvy audience formed the foundation of the Food TV Network’s expanding fan base.
• They love being in the kitchen, or on the culinary receiving end, appreciated higher quality cooking and ingredients.
• They could tell you about the functional differences of knives and pans they used in the kitchen.
• They bought cookbooks for inspiration and subscribed to culinary magazines.
• They were, as characterized in the study, Food Adventurers.

As is often the case in high volume, high velocity businesses, Sargento had cast themselves for years as the choice for everyone and anyone. This thinking ironically contributed to a form of water-treading stasis that held the brand locked in a third-place share position.

Then, a remarkable thing happened. Executive leadership agreed to let the marketing team redefine the target user, narrowing in on Food Adventurers and working backwards from that profile. We built a plan that redefined the category, the product composition, the packaging, pricing strategy and communications.

In short, Sargento elected to become the premium brand in the dairy aisle and play to food quality cues the Food Adventurer would recognize and embrace. Instead of trying to be all things to all people, Sargento wisely decided to pursue an audience that was invested in food experience and paid attention to the ingredients they used.

A new product line was created called Artisan Blends that combined artisan style cheeses with Sargento classic flavors. The step-up line was priced at a premium to other products and the packaging got a make-over to accentuate the tone and visuals of a European more premium esthetic. But most importantly, the messaging was changed, and the communications tactics moved to align with Food Adventurer ambitions in the kitchen.

• Our strategy put the brand in league with a specific set of consumers as they participated in culinary discovery and pursued elevated taste experiences. Sargento became a sponsor and participant at the South Beach Wine and Food Festival, among other events. Celebrity Chef Michael Chiarello was retained as a spokesperson and cooking videos were created with him.

Bottom line: the gears were put in motion to carve a new future based on relevance and resonance specific to a food fan consumer.  Becoming important to a segment of the marketplace rather than defaulting to the all-things-to-all-people approach. Since then the retail channel business has transformed and the future, with help from the company’s enormously successful Balanced Breaks snack product line, is on a different trajectory.

Bold moves make for big results

To a large degree the success of this shift was in the hands of Lou Gentine and his son Louie, now CEO. Their willingness to swing for the fence and re-position the business led to the outcomes that have paid lasting dividends.

The lessons here come directly from the consumer and insight into their food needs and interests. Asking, how can we be of greater value to them and make a difference in their lives? When we brought the insight research to life, all aspects of the marketing mix were refocused on how we could build relevance and value with this audience and help them on their culinary journey.

Brand strategy guru Bernadette Jiwa summarized the approach in a recent post:

“Like most of us with something to say, serve or sell, they [marketers] have to do a better job of speaking to only their right customers. They don’t depend on the footfall of mass awareness—they thrive on the loyalty of minority affinity, built one customer at a time, over time. They understand what their customers want, they make promises, then show up consistently, week in week out, without fail to keep them.

There is no one-size-fits-all marketing strategy. The tactics we use must align with our goals and the goals of the people we want to serve. How are you creating affinity with the minority of people who enable you to do your best work?”

The Sargento case study is a great example of the benefits of narrowcasting and marketing bravery.

• When you decide to go all in with an audience that cares, and then cater to their wants, needs and aspirations, the results can be very satisfying – even transformative to the business.

This would not have happened without the insight research investment up front that, with trained eyes, unearthed the Food Adventurer target and their culinary aspirations. Armed with this understanding, the marketing plan became a lesson in ‘mattering’ to an audience of food fans. The impact on message and media was a powerful testament to why smaller engaged audience segments can have a significant impact on the balance sheet.

Can we bring this kind of fresh perspective to your business? Let’s talk.

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Once you’ve tasted an heirloom tomato you can’t go back…

For most of my adult life I have experienced a love/not love relationship with fresh tomato. The routine, ubiquitous beefsteak variety a frequent guest star that decorates the roof of a hamburger with some color. The pink flesh offers a hard, mealy somewhat bland flavor. In a salad the standard tomato as hero can be even more pronounced in its meh-ness. We hear it travels well through distribution channels and offers some shelf life. Yay.

Along comes the heirloom tomato with its erratic colors, crags, lumps and fissures to completely upend everything you think you understand about a tomato, punching your taste buds with luxurious flavor, acidity and tenderness that elevates anything it swims with. More expensive to be sure and worth every penny. Once you know this you can’t retreat to the beefsteak.

• So it is with the continued culinary-ization of America: as higher quality food experiences forever elevate the palate and expectation of nearly everyone who eats, the baseline standard of what people want is changing with it.

Thus why strategic planning needs to address this development because as the old but very real saying goes, “times are changing and if you don’t change with them, you’re in trouble.”

What happens when the consumer is at the center of strategic planning?

If it is vital for the collective futures of food retail and food CPG companies to put the consumer at the epicenter of planning and work backwards from there, then we’re going to pay attention to cultural and behavioral shifts. The goal to sync strategies and capitalize on those insights. It is definitely not business as usual these days because the pace of change has accelerated so significantly in the last five years.

Seven observations on the changes now upon us.

The quality bar keeps rising. The impact of chefs-as-media-heroes, cooking shows, elevated corner bar food, transformation of legacy food categories with reimagined higher quality versions, and the advancement of culinary experiences at restaurants – all blend together in a perfect recipe for moving taste and quality expectations upward.

1. Once you’ve experienced the added value of a pan reduction sauce to transform a flavor- challenged piece of chicken, you want the sauce every time.
2. Home delivered meal kits operate as boxed culinary academies, teaching consumers about roasting techniques for vegetables, layering flavors and saucing.
3. Higher quality ingredients and preparations now reflect the new intersection of indulgent taste and healthier. Healthy now redefined not as calorie math but the use of better quality fresh, real food ingredients, less processed and with a clean label as evidence of same.
4. Weekends are now calendared opportunities for scratch home-cooking exploration, experiments and food adventure. Which grocery stores observe this phenomenon and move to inspire ideas, ingredient solutions, menus and culinary guidance? …More meatloaf?
5. Maybe we’re still selling boxes, cans and bags off shelves at velocity and so there’s no time to match merchandising to the elevation of food experiences in America? Can you afford not to when disintermediating options are emerging all over the food business landscape?
6. Restaurants are trial generators for new global flavors, cuisine exploration and realization of unique cooking techniques. Outsourced meals aren’t just about convenience on a busy night, it’s also part of the food culture milieu that’s stoking the fire of culinary excitement.
7. Where’s the Chef de Cuisine now? He or she is a home chef operating in the kitchen looking to create, innovate and experiment with standard menus and dishes now getting an elevated makeover with layered flavors, sauces and artisanal quality ingredients.

The headline: could it be that the American home kitchen is not that far behind the restaurant kitchen, save a few thousand BTUs from the stove burner, as a place to produce distinctive flavor experiences? The answer to this query is yes. How are retailers and CPG innovators working to recognize and service this consumer? Small niche you say!? Not so fast…

In a recent report from the Hartman Group we find evidence in Compass data:

• 39% of restaurant sourced eating occasions are efforts to lean in on the culinary skill and experience going on in the professional kitchen. Remember the quality of restaurant food keeps going up, and while doing so challenges some chain foodservice operators who are trapped in cost structures and business models that make it difficult to profitably move up.
• 29% of at home eating occasions use cooking sauces, flavor aids, Deli prepared items, alongside higher quality produce, meat and seafood intended to replicate the restaurant experience at home.

Food culture changes are an undeniable juggernaut impacting where the ball is moving and challenging everyone to determine if they’re keeping pace with it or languishing behind.

Emergent’s guidance:

1. Consumers want the unique, higher quality flavor experiences they find at restaurants, repurposed for them in food retail available products. Hence the emerging brand phenomena now roiling legacy CPG market shares. Consumers yearn for the surprise and delight of more innovative packaged and prepared foods.
2. On the other side, food retail is ideally situated to sponsor artisanal exploration in cheese, baked goods, alternate proteins and cooking ingredients. Yet many find it difficult to get beyond the traditional infrastructure to position themselves in the culinary chair alongside shoppers who want more relevance and food experience in their shopping trip…and their shopping cart.

While so much preoccupation now exists with installing e-commerce platforms and digitizing the management and flow of inventory, we should not lose sight of what the consumer longs for and how we can enhance food relevance and adventure for them.

Your products and store could be a culinary Field of Dreams!

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This is our fifth and final installment of Emergent’s “2015 Emerging Food Trend Forecast” series covering the top four food and beverage industry mega-trends for this year and implications for brand marketing and communications.

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This is the fourth installment in our “2015 Emerging Food Trend Forecast” series exploring food and beverage mega-trends.

4. The grand ingredient play – exotic spices, salts, sauces and other flavor enhancers to entice adventurous palates in the cupboard and fridge

For years we’ve watched the craft beer industry grow by leaps and bounds while factory beer sales erode. We’re now at the edge of the craft food movement as specialized, smaller scale food and beverage ideas gain notoriety. The U.S. food industry in many cases is built to serve scale. Bigger is better. However…

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This is the third installment in our “2015 Emerging Food Trend Forecast” series exploring food and beverage mega-trends.

3. Meet the growing league of culinary commandos

Most pundits predict the continued shrink of cooking skills alongside the rise of prepared meal solutions. We agree. But with a big, heavy asterisk. There is a smaller and nonetheless vitally important and we believe growing segment of home “uber-cooks.” They represent an important, influential audience that can impact the fortunes of all segments and players in food and beverage.

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This is the second installment in our “2015 Emerging Food Trend Forecast” series exploring food and beverage mega-trends.

2. Revolution in supermarkets and the rise of Groceraunt

The supermarket industry is going through dramatic change as a result of this consumer design for higher quality foods and food experiences. The center of the traditional grocery store is shrinking while the fresh perimeter is expanding. Some legacy brands and categories like cereal are flat to declining while the kitchens inside supermarkets are going through what best can be described as a culinary renaissance.

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