Start-Ups: Getting Local

With an $18 billion shift since 2011 from big food companies to small food entrepreneurs in the food and beverage industry, consumers continue to put their money where their mouth is when it comes to diversifying the products in their shopping cart and in their home.[1] Minneapolis – home to us and many of our clients – has a rich history in the food industry. That makes our backyard a hot spot for emerging trends, continued innovation, new brands, and an ecosystem that continues gaining strength.

WHY IT’S HAPPENING

Minnesota is home to 74,500 farms and the food and beverage industry employs more than 49,000 people, while contributing $4.9 billion to the state’s economy each year. We have more than 700 food companies, and many of them are Fortune 500 companies supported with incredible talent and experience.[2]

Grow North is “a central hub for resources, a mobilizing connector and ecosystem navigator” and an example of a ground-up network that has been established to drive intentional connection between entrepreneurs and organizations, in an effort to support growth in our food and beverage community. Just around the corner, the first ever Food Ag Ideas Week will take place in St. Paul and Minneapolis, a week-long platform centered around topics like sustainable agriculture, food innovation and tech, and food and society.

Minnesota isn’t the first to bring together a broad industry representation to discuss progressive topics in this space. Other innovative food hubs – Colorado, Austin, and more – also see the importance of coming together (big and small, across the industry) as a reflection of the greater social and economic role that food and beverage play in the community.

WHAT WE THINK

It’s energizing and more important than ever to keep our finger on the pulse in our local community. There is so much happening in our own backyard that it can be challenging to determine what events and activities to prioritize. So our team has committed to spending more time out in the community where the action is happening, with both big and small companies. What we’ve found so far is that there is no shortage of passion on all fronts and a united desire to support success.

WHAT’S NEXT

If the trend continues, there will be more fragmentation and even bigger demand, creating a structure that leverages knowledge-sharing and drives innovation among food and agricultural leaders. Tactically, what’s next for us is to head out to some of the many upcoming roundtables, panels and discussions.

We hope to see you at FAI! There are still spots available: Register Here

 

[1] “Millenials are driving an $18 billion food revolution.” Marinova, Polina. Fortune. October 2015.
[2] “Food & Beverage Products Made in Minnesota.” Boehm, Jessica Walker. Livability. October 2016.

Personalized Nutrition

A rapidly growing trend, personalized nutrition – unique nutrition plans for an individual – is projected to grow $17 billion over the next 4 years.[1] This is the staggering prediction shared at Datassential’s recent Foodscape event, and it drove much of the content that was shared with the 400+ attendees in Chicago. Hyper-personalization is seen as the next evolution in healthy eating and it has the potential to impact the industry from every angle.

WHY IT’S HAPPENING

Customization is ingrained and expected on many fronts – today’s consumers are used to having products tailored to their needs and desires. Consider fashion, with companies like Stitch Fix providing personal styling and wardrobe items delivered directly to your door. Or grocery, with Amazon Prime reminding you which items are likely on your list based on prior orders. Or even any of the apps that serve us personalized content every day– Spotify, Netflix, Bitmoji, YouTube and more. It’s no longer “creepy” that brands know us so well. On the contrary, it’s expected. And it’s frustrating when they get it wrong.

WHAT WE THINK

It’s no surprise that this trend is making its way to food and beverage. Beyond the obvious extensions like fast casual restaurants that serve customized frozen yogurt / burrito / personal pizza / coffee / salad / you name it, consumers are constantly hunting better choices for their individual life experience. At the same time, over the past year we have seen the growing influence that Gen Z has on all food trends – their spend and influence is growing and, as we explored earlier this year, has the most substantial impact on “what’s next”.

Taking the cross section of “customization” and “Gen Z” a step further, 60% of younger consumers are beginning to use tech for food-related personal purposes. Think fitness trackers, recipe apps, food diaries and more. While the jump might seem steep, early studies show that progressive eaters indicate their interest in personalized apps and recipes. And this is where things start to get really interesting.[2]

As consumers integrate inputs from all parts of their life to provide a full view of wellness, personalized nutrition that incorporates basic biometrics, physical activity, known health issues/tendencies and more will inevitably influence the way people shop at retail and while dining out. What that looks like will evolve over time – but it’s certainly on the horizon.

WHAT’S NEXT

Food plans tailored to an individual’s unique “data” already exist. But only a small portion of the population is engaged with nutrition at that level. We’ll need to keep an eye on how more information shapes consumers’ decision-making criteria – and what role “taste” has in the process.

 

[1] “Personalized Nutrition and Food.” Datassential. Datassential: Food with a Story. Foodscape 2. September 2018.
[2] “52 Things We Learned & Experienced at Foodscape 2.” Datassential. Datassential: Issue 57. September 2018.

Future Farms of America: Listen Up

The future of farming likely looks very different than what you might think. I recently visited a number of farms in western Minnesota where the Redwood County Farm Bureau hosted a tour that exposed us to modern agriculture production – the practices, challenges and opportunities on the horizon for the industry. This outing came on the heels of many other discussions over the past year at events, including Esca Bona and Expo West, focused on “good food movements” and further confirms the systemic changes underway.

WHY IT’S HAPPENING

People will always have to eat. It’s one of the things we love about being in this industry – it’s always changing, but it’s always in demand. However, the population is growing at a rate that requires farmers globally to increase production by 70%1 in coming years to feed the 9.1 billion people expected to be alive in 2050. Simultaneously, income levels are increasing within developing countries which gives consumers a larger voice to demand quality food products that align with their nutrition needs and preferences.

This is forcing a number of farming components to change dramatically and rapidly. The two that stand out from the discussions highlighted on our farm tours? The growers and the technology.

WHAT WE THINK

According to the 2012 agriculture census, growers who are older than 65 outnumber farmers who are younger than 45 for the first time in history.1 The prediction is that farming will continue to consolidate to more mid- and large-scale farms and that the younger farmers will approach the business from a “farm-management” position. Research indicates that Millennial growers are educated (57% have a bachelor degree), tech-focused, and business-savvy.2 They also view farming as a business and a lifestyle – and that as a demographic they are highly purpose-driven.2 This was backed by every farmer who spoke on the tour, who shared that the passion is rooted in much more than the business itself. For younger growers, it is truly a way of life.

Technology showed up in some surprising ways along the tour, but most interesting was the impact it is making on effective farming practices. The dairy farm we visited was managed by people but operated by robots. The implementation of robots allowed this farmer to remain in business – without it, the labor costs would have been too much to compete with larger producers. Apart from robots, many farms rely on imaging from drones to inform soil and field analysis. This data can be critical in maximizing production through planting, spraying, monitoring and harvesting.

WHAT’S NEXT

Spending a day in the life of a farmer sheds light on the incredibly complex and dynamic business we know as agriculture. The next generation has steep challenges ahead that will depend on innovative thinking and a purpose-driven approach.

[1] “Trending 2050: Future of Farming.” McMahon, Karen. Syngenta. Thrive. Spring 2017.
[2] “Millennial are Increasingly Making Key Farming Decisions.” Maulsby, Darcy. Syngenta. Thrive. Winter 2017.

Crickets: They’re What’s for Dinner

“One hundred thousand crickets…in your basement?” With this excerpt from a recent conversation, Eric Palen, a local entrepeneur who is in the business of farming insects as food, raised a lot of questions and even more eyebrows about this growing trend. After the “gross factor” fades, the facts emerge. It turns out we’ve found a new source of protein that’s compelling for… well, a number of surprisingly good reasons.

Nearly 2,000 insect species are already a part of diets across the globe and they’re making their way to North America in a variety of forms. In fact, the global edible insect market is forecasted to grow to $153.9M in North America by 2023 and over $1 billion worldwide.1

GOOD GOD, WHY?

As the world population grows along with a demand on global resources, alternative protein sources are a heightened concern. Insects take less of a toll on these resources while still delivering a compelling nutrition profile.

Insect farming, on average, requires significantly less land, water and feed than other species – especially with the recent adoption of modern agricultural practices like vertical farming in place. To produce 1 kg of beef, 38x more land, 23x more water and 12x more feed are required compared to insects. This results in approximately 1800x the greenhouse gas emissions.

In conversation with Palen, post-growth production of cricket protein is pretty straightforward. To harvest the crickets, he freezes them before washing, boiling and roasting them. From there, they can be consumed in “whole cricket” form or alternatively, ground down into a powder for use in smoothies, chocolate, protein bars or breads.

On the nutrition front, crickets (whether in “whole” or “powder” form) contain comparable levels of protein to beef and higher levels of iron. They are considered a complete protein source – containing all of the essential amino acids, omega 3 and 6 fatty acids, and are high in both calcium and vitamin B12.2 It is easy to see why this food source would be explored further as we begin to think creatively about how to effectively feed a growing world population.

WHAT WE THINK

Environmental and nutritional considerations alone don’t make me want to top a Cobb salad with roasted crickets. That being said, we can’t overlook the logic in why and how insects might be a part of the North American food pyramid moving forward. Already commonplace in many large markets around the world, it may just take some time – and experience – to find out how they fit.

As cricket powder and flour makes its way into mainstream through more familiar formats, like bars and breads, there will be a more approachable delivery to educate consumers on the social, environmental and nutritional benefits of insects as protein. It will be an important link in the food chain to keep an eye on as it brings up real issues of “food and footprint” – and how we responsibly balance impact with real consumer demand.

WHAT’S NEXT

Not unlike most new product launches, crickets and other insects will likely gain adoption through innovators and early adopters. Eating an insect is, admittedly, a highly Instagrammable moment, and we see that venues and restaurants have an opportunity to lead from two primary places: experience and culture. Outside of the “wow-factor”, many insect dishes are traditional to various regions and offer chefs a new product to experiment with in menu development. When it comes to edible insects, powder may increase in quantity more rapidly, but whole form will drive awareness with visual impact. 

Just some Thought for Food™

[1] “Insects as Food.” Warren, Haley. de Sousa, Agnieska. Rekoaa, Roni. Bloomberg. July 2018.
[2] “Little Herds: Feeding the Future with Insects”. Articles and Iconographic(s) provided by Little Herds.

Talkin’ ‘bout our (next) generation.

I’ve been to a number of conferences over the past year and inevitably, the agenda includes at least one breakout about “Millennials”. There’s always an audible groan as attendees agree that they have “heard enough about this generation of experience-seeking, non-committal, entitled kids!”. (I should mention here that I am considered a Millennial myself…) Anyway, it’s time for Gen-Z.

A Gen-Z panel at this year’s IFMA COEX opened up about their preferences and their opinions on what steers their decisions when it comes to food. And they have a lot of them. From what I observed, this panel was articulate about the macro social issues that influence the way they think about what—and how—they eat. Simultaneously, they were practical about how their current stage of development impacts how that plays out in “real life”.

WHY IT’S HAPPENING

Now the single largest single population segment1, Gen-Z makes up 26% of the total media audience and with key differences in values and preferences, they pose an interesting challenge for brands. Encompassing those born between 1997 and 2015, this generation has serious spending power: Some through personal wealth and others through “pester power”.

As this generation approaches adulthood, early studies are homing in on what shapes their values and how that is being played out with purchases – whether of products or experiences. A few key things to consider when it comes to the food industry in particular:

Digital from DOB. This is the first generation that has truly grown up with cell phones—their parents are connected, and they access them at a much younger age. The panelists all voiced their use of their smartphone as a way to discover (Instagram), vet (Yelp), obtain (online ordering) and ultimately capture their unique experience. It’s worth noting that their time is spent on mobile devices rather than a PC—in fact, this generation spends an average of 8 minutes a day online via PC as compared to the 1+ hour of older generations1.

Socializing. What may seem in contrast to the above point, Gen-Z values “hanging out and socializing” as a top priority along with ordering shareable items when it comes to their preferred dining experience2. You may have heard rumblings of this generation noting higher levels of loneliness, with less human-to-human, authentic interactions. So it’s not surprising that Gen-Z seeks interaction with family and friends when it comes to dining. Keep this in mind as your brand thinks about how to facilitate relationship-building experiences and environments for Gen-Z.

WHAT WE THINK

This generation is different—brands and experiences in the food space are going to have to understand their expectations in a more holistic way.

We know that Gen-Z is outpacing Millennials in their occasions per week at top chains in the US3, and it’s up to us to keep a two-way conversation going with this group to truly understand them. As a more independent and entrepreneurial generation, it’s going to be more critical than ever to understand both what the data says about what matters to them and what resonates with them as individuals. Face-value of where, when and how they are dining are likely to line up with values that occasionally surprise us based on past generations.

WHAT’S NEXT

The largest qualitative and quantitative study to date was completed by KANTAR in 2017 and explored this generation’s attitudes and behaviors4. When it comes to media recommendations, “innovative formats” are cited as a way to win with this generation. In terms of creative recommendations, “expect a challenge”, “be interactive” and “push the aesthetic” are the headliners—which captures the pace and outside-the-box thinking that is going to be required to really understand and resonate with Gen-Z.

Full of nuances like the simple examples above, Gen-Z is discerning and likely going to be a challenge as marketers attempt to understand this ever-changing consumer.

[1] “Move over millennials, Gen-Z now the largest single population segment.” Sterling, Greg. Marketing Land. 17 June 2017.
[2] “The Gen-Z Selfie.” Technomic, courtesy of SmartSupport. June 2016.
[3] “Shifting Market Dynamics.” 2018 COEX, courtesy of Foodable Labs.
[4] “How to market effectively to Centennials.” Inskip, Mark. WARC Best Practices. July 2016.

What’s your function?

Have you had pH balanced water recently? Or added a teaspoon of collagen to your coffee? Maybe enjoyed a beverage with probiotics like kombucha? While not everyone has jumped on this trend, the functional food market is growing rapidly, with revenue projected to reach over 440 billion dollars by 20221.

Referring to food and drinks that serve a greater health benefit, functional products are making their way to a broader range of formats. Brands look to sync added value with convenience and impact to win consumers over, as many of these products aim to be part of a daily routine.

WHY IT’S HAPPENING

The growing awareness of the direct links between diet and type 2 diabetes, coronary heart disease and cancer are clear drivers of the growing interest in functional foods. With the increasing presence of lifestyle diets that align with the same qualities, the focus on consumers’ health and well-being is creating a demand for food that does more than just satisfy hunger—essentially, consumers want more bang for their calorie.

Functional beverages were the first in this arena, from sports and energy drinks to a wide range of probiotic mixes. In fact, as many as 24% of juice and juice drink products now feature a functional claim1.

This has paved the way for functional ingredients that show up in a variety of formats to take center stage at shows like Expo West and retailers like Whole Foods. Primal Kitchen is a brand that offers a wide range of products that are Paleo, Primal, Keto-friendly, Whole-30 approved and “uncompromisingly delicious and nutrient dense”. They feature a wide range of formats of collagen—with benefit claims for bone health, joints, and skin.

WHAT WE THINK

Consumers are looking for ways to “strive” rather than “survive”—and while it might be difficult to anticipate which functional products stick, the mindset will continue to grow.

We understand that consumers are becoming savvier and that some of these products have much stronger benefit claims than others. It is likely that many of the products we see today may be short-lived as consumers decipher which have the greatest impact (and which fit within their lifestyle). But the mindset is indicative of where the food industry is heading. Value matters.

WHAT’S NEXT

Functional food and beverages are making a more direct and intentional connection between what consumers put in their body and the benefits they expect when it comes to their health and well-being. As studies begin to shed light on the mind-body connection, the proliferation of functional foods will gain momentum. While the range of available products broadens, consumers are going to have to decipher what to prioritize—if they don’t reach decision fatigue first.

Brands are going to be faced with the challenge of making their functional products easy to understand—with real, reliable links to health benefits. Perhaps the biggest battle they will face is breaking through the benefit clutter.

Just some Thought for Food™

[1] “U.S. Functional Foods Market – Statistics & Facts.” The Statistics Portal. https://www.statista.com/topics/1321/functional-foods-market/

Your brand is your foundation

It was a curious scenario: the company had incorporated digital advertising into its marketing program, sales were up and the return on ad spend had increased. But brand affinity was in serious decline (brand affinity being a metric that lets market researchers make predictions about how a consumer will behave).1 In fact, a relevancy study showed their flagship brand was in the bottom third of 400 measured brands.

Speaking at the Association of National Advertisers’ (ANA) 2017 Masters of Marketing Conference, Clorox CMO Eric Reynolds recalls finding himself in a situation many corporate marketing teams are currently facing. By focusing almost entirely on short-term objectives, Reynolds says their marketing and advertising became very rational and very functional.

“In a time when we have all this data and technology…why is our brand effectiveness failing? We would argue it’s because we forgot about brands. Customers didn’t fall in love with [our] brands.”

It’s an all-too-common story. In today’s ROI-centric business environment, the value of brand building has been forgotten.

Chart: Brand Building and Sales Activation Work Over Different Timescales

BUT WHY?

In the last few years, there has been a fairly significant change in effect from long-term to short-term brand activation.

Not long ago, long-term brand building accounted for 69% of brand relevancy. But according to recent studies from Les Binet and Peter Field, that impact has been reduced to 47%, as short-term activations have risen from a 31% to a 53% majority share.

And that’s problematic. Because brand building does more than shore up brand awareness, brand preference and even, in some cases, increase sales. Brand building is critical because strong brands command a higher price and ultimately lead to long-term sales growth.

WHAT WE THINK

Brand building is the most important strategic marketing priority to ensure long-term profitability.

We understand that in today’s business environment, demonstrating ROI on marketing and advertising investments is more important than ever. While brand building efforts may not necessarily increase revenue in the short-term, doing it effectively allows companies to charge higher prices over the long-term. And increasing profits, not just sales, is the ultimate return-on-investment.

WHAT’S NEXT

Standard ROI calculations are great for short-term marketing and advertising initiatives. But measuring and assessing the impact of long-term brand building means using an alternative guide to performance.

John Kearon, CEO of System1Group, recommends measuring a brand’s ‘share of voice’ relative to its ‘share of market.’ He explains

“An established marketing principle dictates that a brand that spends above its size (and achieves excess share of voice – ESOV) can expect its market share to increase in that period. A brand that spends below its size (does not have share of voice sufficient for its size) will decline. Binet and Field indicate that, on average, across all campaigns, 0.5 percentage points of growth are achieved for ten percentage points of ESOV.” 2

For example:

  • BRAND A has a share of market at 10% and share of voice is 20%
  • Excess Share of Voice is 10% ( 20 – 10) = 10
  • The 10% ESOV means it stands to grow by 0.5 percentage points over the period

This also means brands must prioritize resources to measure, test and evaluate effectiveness of brand building campaigns over the long term.

Save yourself from the trap of “saving” labor

Like many working professionals these days, I take my lunch breaks at my workstation and use those precious 30 minutes to read through the never-ending stack of industry publications on my desk. I was flipping through a recent edition of FoodService Director today when a small line of copy on a page ad catches my eye:

“Fully cooked chicken wings are easy to prepare, saving time and labor back-of-house.”

But looking at industry headlines from the past six months will tell you that “saving” labor isn’t the issue. It’s finding and retaining labor.

So how can we better align brand and product narratives that speak to the very real labor challenges today’s operators face? It starts with a better understanding of the labor crisis facing foodservice decision makers.

WHAT’S HAPPENING

On May 4, the U.S. Labor Department reported that unemployment had reached a record low of 3.9%; the lowest rate since 2000 and a sign the job market has become even more competitive.1 And it’s putting immense pressure on foodservice operators.

In a recent conversation with Casey Saeger, Human Resources Director at Blue Plate Restaurant Company, she shares: “As a collection of community restaurants, we see the challenge of labor BOH pervasive in the Minneapolis market. We have begun to focus on investing in employee development and incorporating lifestyle perks like dining discounts to retain our employees.”

The biggest challenge operators face, across commercial and non-commercial, is the recruitment and retention of employees. And the latest turnover stats are sobering:

  • For BOH positions, virtually all restaurant companies said they are constantly understaffed in critical kitchen positions
  • For limited-service restaurants, hourly turnover was at 146.2% in August 2017
  • For full-service restaurants, hourly turnover was at 102.8% in August 20172

And for many foodservice operators, this means adopting aggressive retention strategies to prevent back-of-house staff from being poached by other restaurants or other industries.

“What we’ve seen recently is a spiraling up of cooks’ wages,” says JJ Haywood, owner of Pizza Luce in Minneapolis. “We have to meet twice a year [with managers] about who they want to protect in the kitchen.”  As the market tightens, operators are being forced to offer more competitive wages to keep kitchens staffed, which puts additional pressure on already tight margins.

WHAT WE THINK

We need to change how we talk about our products and labor benefits in marketing and advertising.

It starts with acknowledging the limitations of our products. No matter how good, products cannot “save” an operator labor when their kitchen is understaffed. Food marketers must go beyond “labor-saving” generalizations and get specific as to which challenges products can actually impact/solve.

WHAT’S NEXT

The best way to adjust your brand/product labor-solution narrative is to talk to operators in the context of their own kitchens. This dialogue will help you and your marketing team understand HOW to talk about your product’s labor benefits. For example, here are two ways we believe brands can go beyond “labor savings” to communicate specific real back-of-house solutions:

Labor Savings —> Maximizes the labor you do have

Most restaurants and non-commercial kitchens are understaffed at a time when operators are expected to do more. Operators need their people using their time in ways that increase profitability so products that simplify complicated or time-intensive preparations help maximize personnel resources.

Labor Savings —> Skill-proof quality and consistency

Culinary education programs have seen sharp declines in enrollment the last several years, which means operators are facing a serious skills gap in the kitchen. Brands should talk about their Ingredients/products that can be prepared by employees possessing any level of kitchen skills without sacrificing quality.

Just some Thought for Food™

[1] “Unemployment Rate Hits 3.9%, a Rare Low as Job Market Becomes More Competitive.” The New York Times. 4 May 2018.
[2] “Restaurant Turnover Rates on the Rise, Again.” Restaurant Business. 13 October 2017.

The “New” Convenience

It’s Wednesday around lunchtime and, like many working professionals, I’ve hopped over to the local grocery store in search of a quick meal before my next meeting. Expectedly, the line for the salad bar is four or five people deep, as well as the Asian wok station, the sushi bar and the deli counter.

Yet one spot remains eerily empty, despite a plethora of convenient meal options: the frozen entree aisle. The situation seems almost counter-intuitive; an endless assortment of cuisine types ready to go in under 5 minutes and not a soul around. So why the lack of customer traffic?

A sample of several frozen meals, which are no longer considered “convenient” by the modern consumer.

As the Hartman Group explained at their 2018 Food Culture Forecast a few weeks ago, one of the main factors is that frozen meals are no longer considered “convenient” by the modern consumer.

The “New” Convenience, as CEO Laurie Demeritt states, is much more than the intersection of speed and efficiency.

WHY IT’S HAPPENING

Convenience food is nothing new for the industry. In fact, the ’50s and ’60s began a golden age of convenience-eating with food innovations focused on giving housewives easier ways to put a meal on the table. Frozen, single-serve meals. Canned soups and stews. Jars of pre-made sauces and gravies. Boxed meal solutions.

These product solutions became even more widely used in the late sixties as more women began heading to work and had less time and energy to prepare a home-cooked dinner.

But as the Hartman Group explains, the very qualities that made these products so enticing decades ago are now at odds with today’s consumers’ food values. Reliability has given way to health and wellness concerns. Experience is now prized over efficiency. Uniformity has been replaced with authenticity and predictability is now second-fiddle to distinction.

A graphic comparing cultural values between generations.

Source: “The New Convenience.” A.C.T. Food Culture Forecast 2018. The Hartman Group. April 2018.

WHAT WE THINK

It’s not that convenience is no longer relevant, it’s that many brands haven’t changed how they think about–or talk about–convenience as a product attribute.

Consumers today no longer believe that opting for convenience foods (easy, quick, and accessible) means sacrificing freshness, quality, and health and global influences. Our marketing and innovation however, haven’t fully caught up to modern expectations. To be considered a convenience brand/product we must expand our messaging to include these new consumer expectations.

WHAT’S NEXT

The Hartman Group identifies three distinct attributes consumers are looking for when it comes to modern convenience products.

Easy –> Empowering

Despite the news that consumers don’t want to cook, they actually do see the value of a home-cooked meal for themselves or their families.

  • Old Convenience: making it easy to assemble a meal in as few steps as possible
  • New Convenience: empowering users with a new skill or knowledge to successfully prepare a meal

Despite the news that consumers don’t want to cook, they actually do see the value of a home cooked meal for themselves or their families.

Quick –> Engaging

Time is even more of the essence. But consumers no longer want to sacrifice interesting, customizable fare for speed. Brands should think about, and package, products as components that can be “arranged” in different ways to create personalized meal solutions.

  • Old Convenience: the ability to prep and serve a meal in the least amount of time possible
  • New Convenience: the ability to customize and personalize my meals, no matter how small

Consumers no longer want to sacrifice interesting, customizable fare for speed.

Accessible –> Flexible

Functionality remains critical when it comes to convenience foods, but ensuring products can be sized, scaled, and streamlined to meet unique consumer needs are equally as important.

  • Old Convenience: pre-cut vegetables that can be combined to make a salad
  • New Convenience: a complete salad kit that can be eaten as a side OR added to grilled chicken to make a meal

Ensuring products can be sized, scaled, and streamlined to meet unique consumer needs are as important as functionality.

Trend Alert: Adaptogens

While some take their coffee with extra cream or even a dash of cinnamon, Four Sigmatic is proposing a unique alternative: mushrooms. The blend promises increased productivity, focus and mental creativity due to naturally occurring compounds found in mushroom varietals like Lion’s Mane and Chaga.

Blending coffee with mushrooms promises increased productivity, focus and mental creativity.

So in late April, those of us attending the Hartman Group’s 2018 Food Culture Forecast sat inside a hotel ballroom and sipped the fungi-infused beverage as we listened to presenter Davey McHenry talk about a growing consumer awareness of, and demand for, products that address brain health and functioning.

In fact, mental health is the second most-mentioned health priority by American consumers (#1: weight control). Which makes it a unique and highly attractive area of innovation exploration.

WHY IT’S HAPPENING

Despite advancements in technology and the ability to multi-task from anywhere, adults today are busier and more stressed out than ever before. Consider the following:

A graphic showing the increase in time spent working, commuting, and caring for children for the average American family.

Source: “The New Convenience.” A.C.T. Food Culture Forecast 2018. The Hartman Group. April 2018.

And that’s led to a sizable increase in the number of consumers who say it’s taking a toll on their mental health:

  • 55% of all households are treating or preventing anxiety and stress
  • 61% of Millennials say they’re treating or preventing anxiety and stress
  • 31% of teens say they feel overwhelmed1

So it shouldn’t be a surprise that we’re seeing an increase in products like foods, beverages and supplements that utilize adaptogens (substances that help manage stress) and nootropics (substances that increase cognitive functioning).

WHAT WE THINK

New innovations that provide mental health benefits are ripe for growth, but require approachable and educational messaging to entice consumer trial.

Many of the adaptogens and nootropics used today are completely unfamiliar–and even unpronounceable– to the vast majority of consumers. Food marketers will need to utilize branding, naming and messaging to clearly communicate sought-after mental health benefits. Manufacturers will also need to provide basic education on ingredients and their origins in marketing communications to make products approachable to the mass market.

WHAT’S NEXT

Take a cue from the following brands on how to successfully market food and beverage products that promise enhanced cognitive functioning:

Brain Alchemy Latte by Project Juice

A new offering by the San Francisco-based restaurant and juice company, Project Juice, this company also uses a clever yet descriptive name for its new adaptogen coffee drinks like “Matcha Energy” and “Golden Immunity”

  • The website describes it as a “therapeutic and deeply nourishing formula for the brain.” It also utilizes the packaging to educate the consumer on the definition of adaptogens. Key ingredients of their Brain Alchemy latte include:
    • Lion’s mane (mushroom) and guta kola (Chinese herb); both credited with increasing cognitive functioning

Project Juice utilizes the packaging of their beverages to educate the consumer on the definition of adaptogens.

Brain Dust by Moon Juice

A super-food powder blend created by the company Moon Juice. The name ‘Brain Dust” is described on its website as Edible Intelligence™, which efficiently and succinctly communicates its key benefit to the audience.

  • The product description, “an adaptogenic blend of super-herbs and super-mushrooms that help combat the effects of stress” gives the consumer a high-level understanding of the key cognitive benefit. Key ingredients include:
    • Rhodiola root extract, which is credited with increasing resistance to stress, and ashwagandha leaf extract, which is said to treat anxiety and stress

‘Brain Dust” is described as Edible Intelligence™, which efficiently and succinctly communicates its key benefit to the audience.

Tulsi Clarity Herbal Tonic by Goldthread

One of a variety of herbal tonics from Santa Monica-based Goldthread Herbs, I like how the company has named its concoctions by what mental state consumers can achieve upon consumption.

  • The description–Sweet and fragrant, with just a touch of spice, tulsi…has rejuvenating effects upon the body, mind and spirit”–also provides both education and approachability to the consumer. Key ingredients of Tulsi Clarity include:
    • Tulsi, an herb credited with reducing stress and increasing energy, and lavender extract which promotes calmness

Goldthread Herbs has named its concoctions by what mental state consumers can achieve upon consumption.

Just some Thought for Food™

 

1 “The New Convenience.” A.C.T. Food Culture Forecast 2018. The Hartman Group. April 2018.

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