Weekly Roundup – Week of 9.11.23
September 15, 2023
Notable food and beverage stories made the news this week. Check out our top picks curated by our team of strategists and food enthusiasts:
Consumers Interest In Authentic Experiences Drives Street Food Growth
Datassential reports show that ready-to-eat global street food prepared and/or sold by vendors in public places (streets, markets, parks) appeals to almost half of U.S. consumers on restaurant menus and supermarket shelves. Ethnic street fare brings unique flavors, textures, and experiences to palates and the hand-held format offers ease and convenience for consumers to enjoy on the go. Restaurants, food trucks, and other foodservice venues provide the perfect platforms for testing global foods before they enter retail markets. Learn More.
Taste Remains A Top Reason And Obstacle For Plant-Based Food Consumption
In a study conducted by the Food Industry Association (FMI), taste was the most mentioned reason for repeat consumption of plant-based foods by existing plant-based eaters. However, taste is also a primary reason for the decline in new trial within the category. Repeat shoppers are willing to try new and different types of plant-based alternatives and plan to increase their consumption, while nonregular shoppers feel the opposite. Foodservice is driving category growth with the study citing that “purchasers of plant-based meat make around 30 more trips to foodservice locations per year and spend approximately $400 more than the average buyer.” Read Article.
A Sweet-Snack Megamerger Comes With a Hefty Price Tag
From CNN and Bloomberg to Reuters and the Food Dive, a prominent story from this week’s news outlets was the announcement that J.M. Smucker plans to acquire Twinkies’ parent company, Hostess. This $5.6 billion dollar deal will allow Smucker to expand its portfolio deeper into the sweet-snacking platform with brands consumers know and love while delivering on the grab-and-go convenience they also seek. Read More.
In-Store Sales Predicted To Be Slow This Holiday Season
According to Bain & Co., unadjusted seasonal sales are expected to grow 3.0% year-over-year (YoY) in November and December, reaching nearly $915 billion, which is well below the 10-year average when adjusted for inflation. 90% of this nominal growth will come from non-store sales such as e-commerce and mail-order and only in specific categories like food and beverage and health and personal care, Bain’s analysis predicts. Consumers are expected to plan and shop early to balance out and extend their budgets throughout the season. Continue Reading.
Sip On This!
AI is influencing the development of new CPG products. Under its Creations platform, Coca-Cola is launching a limited-edition beverage called Coca-Cola Y3000, available in both zero-sugar and full-sugar versions. The products do not reveal a flavor, but rather an experience. Oana Vlad, senior director of global strategy at Coca-Cola, said in a statement, “With the help of AI-powered technology, Coca-Cola Y3000 Zero Sugar imagines how a Coca-Cola from the future could taste and introduces innovative experiences to explore the future.”
McDonald’s is also making news with the announcement that it will exit its self-serve beverage stations by 2032. Many locations shut down self-serve soda machines during the pandemic and transitioned to dispensing from back-of-house systems. Staff are also currently pre-filling drinks for mobile and drive-thru orders, making the changeover an easy switch moving forward. McDonalds plans to remodel its dining spaces to reduce its overall footprint and to create a more welcoming experience. Removing the beverage stations will make more room for diners and aid in McDonalds’ plan for table delivery service.
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