Weekly Roundup – Week of 10.2.23
October 6, 2023
Explore this week’s top-trending food and beverage-related news stories – curated by our team of strategists and food enthusiasts:
Securing The Coffee Supply Chain
By 2050, the Inter-American Development Bank, a financial institution serving Latin America and the Caribbean, warns that “rising temperatures will reduce the area suitable for growing coffee by up to 50%” which could result in other regions harvesting beans to maintain supply. Yet, to combat this issue, agronomists from Starbucks have been developing new arabica varietals that withstand coffee leaf rust – the disease that infects coffee trees. These varietals are showing promise with a two-year harvest cycle versus a three- or four-year cycle with current arabica varieties. Learn More.
How Technology Helps Food & Beverage Companies Adapt To Market Conditions
Automation is not a ‘nice-to-have’, it’s a necessity. A recent survey from Aptean cited that, “obstacles such as inflation, high energy costs, and material price increases can’t be eliminated, food and beverage companies can offset their impact by streamlining production methods and improving operational efficiency [with automation tools].” Productivity levels can also improve when manufacturers adopt and combine business intelligence (BI) tools with AI technologies. Read More.
Will The Rise In Weight Loss Drugs Hurt the Snacking Industry?
It’s a serious question being raised among major food companies such as Mondelez, Kellogg, and PepsiCo. At the same time HSBC reports that the U.S. market for savory snacks is expected to grow 6% and sweet snacks’ sales are expected to rise 4.6% annually from 2022 through 2027, Morgan Stanley estimates that the number of patients taking Big Pharma’s weight loss drugs, Wegovy and Ozempic, could reach 24 million, or nearly 7% of the U.S. population, by 2035. It could result in a battle between Millennials and Gen Z consumers gravitating towards snacks and small meals throughout the day against a growing population of weight loss-seeking consumers. Read Article.
The Line Between RTD Products For Adults and Children Is Thinning
Beverage brands that were once primarily popular with children and teens – think SunnyD and Simply Orange – are saturating the RTD category with spiked versions that include alcohol or energy-infused ingredients such as caffeine – and manufacturers are reaping the monetary rewards. PepsiCo’s Hard Mountain Dew sales totaled $54 million as of August 2022, and Coca-Cola’s Simply Spiked almost doubled that with $111 million in sales. In addition, energy drinks and caffeinated beverages that used to be marketed to adults are targeting younger consumers, and the FDA and The American Academy of Pediatrics are raising major concerns. Just how much caffeine is in one can of PRIME Energy? Read On to find out.
Packaging Power
Fresh, bold, and beautiful designs are giving packaged foods a long, and possibly endless, moment of success. The Hustle complied stats around the importance of packaging in consumers’ purchasing decisions including:
- 81% of consumers have tried something new because of its packaging
- 72% say packaging influences their purchasing decisions
- 63% have purchased a product again based on its package
Bright colors, distinctive fonts, and big graphics stand out on shelves and in coolers, helping to boost impulse purchases.
With the recent Swift-Kelce pairing, Heinz is leveraging its own pairing. In less than 24 hours, the Heinz team created a campaign and new bottle labels inspired by the 32 million views of Taylor Swift eating chicken with ketchup and what appeared to be ranch dressing. Only 100 bottles of Heinz Ketchup and Seemingly Ranch will be available to fans…for now!
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