Weekly Roundup – Week of 12.25.23 – Reflecting on 2023

December 28, 2023

2023 marked a transformative journey for the Food and Beverage Industry as foodservice, Consumer Packaged Goods (CPGs), and retailers adapted to economic challenges through technological advancements, pricing strategies, and a focus on consumer preferences for convenience and health. Influencer marketing played a pivotal role in brand promotion and consumer engagement, and retailers innovated their foodservice offerings to stay competitive in a dynamic market.

The year wasn’t merely a backdrop of adaptation; it was also characterized by a multibillion-dollar acquisition, a strategic rebranding endeavor, and a blockbuster movie takeover that rippled through new product launches and menu makeovers.

Embarking on a new year with cautious optimism, we reflect on the defining moments that shaped the F&B Industry as we revisit highlights pulled from our 2023 weekly roundup archives.

Artificial Intelligence, Automation, & Technology

The industry witnessed significant advancements in AI and technology, extending to various areas including supply chain optimization, personalized customer experiences, and enhanced production processes. Robotics, automated campus delivery carts, interactive drive-thru service, and Just-Walk-Out and Walf-Off technology were a handful of tools F&B companies, retailers, and foodservice venues used to streamline operations, increase efficiencies, and reduce costs.

Inflation

The global issue of inflation contributed to escalating food prices both at grocery stores and on restaurant menus. This forced businesses to reevaluate their pricing strategies and find ways to maintain quality while managing costs. Consequently, private label sales experienced an increase as consumers sought cost-effective alternatives amidst rising prices. Retailers focused on expanding their private label offerings, leveraging quality, and branding to compete with established brands.

Influencer Marketing

Almost a $22 billion industry, influencer marketing became a powerful tool for (CPG) brands in 2023 with micro-influencers having almost seven times more of an engagement rate than mega-influencers. Social media was the catalyst for influencers to promote products and create brand awareness, and their ability to connect with audiences on a personal level influenced purchasing decisions, particularly in the food and beverage sector.

Snacking

The snacking industry reached new heights as consumer preferences shifted towards convenient, portable food options. Healthy and functional snacks gained popularity, driven by a growing awareness of wellness and nutrition. Yet, consumers were also seeking bold flavors (83%), fun and indulgent snacks (61%), and half of consumers chose snacking instead of eating a traditional meal due to their on-the-go lifestyles.

Foodservice in Retail

2023 also prompted retailers to innovate their foodservice programs placing a strong emphasis on personalization. Convenience stores and supermarkets expanded their ready-to-eat and prepared food sections to cater to consumers looking for convenient meal options. In most cases, technology was integrated into these programs, offering online ordering, delivery services, and personalized loyalty programs to enhance the overall customer experience.

Captivating News Stories

While the narratives of technology, inflation, and influencer marketing continued to shape the discourse throughout 2023, several prominent news stories held the spotlight long after their initial coverage.

• J.M. Smucker Acquiring Hostess – The acquisition of Hostess by J.M. Smucker, a $5.6 billion deal, resonated across major news platforms, from CNN and Bloomberg to Reuters and the Food Dive. This strategic move allowed the J.M. Smucker Company to deepen its presence in the sweet-snacking domain, incorporating beloved brands that consumers recognize and cherish. The transaction aimed not only to expand the company’s portfolio but also to cater to the growing demand for grab-and-go convenience.
• Kellogg’s Split Into Two Companies – Kellogg made news by officially announcing its split into two independent entities – Kellanova and WK Kellogg Co. This division allowed a dedicated focus on specific strategic priorities with Kellanova being the new moniker for all snacking brands, including the popular MorningStar Farms plant-based foods. The company emphasized this move signaled a bold ambition to emerge as a global snacking powerhouse.
• Barbie’s Culinary Influence – As the Barbie Movie drove audiences dressed in shades of pink to theaters all over the world, notable establishments like Pinkberry and Cold Stone Creamery embraced the phenomenon by introducing themed menu items such as Barbie Land Berry Pink Frozen Yogurt and Pink Cotton Candy Ice Cream. Krispy Kreme joined the celebration with three Barbie-themed doughnuts – The Original, The Dreamer, and The Girl Boss. Even grocery store shelves witnessed the impact, featuring Barbie-shaped pasta and Barbie + Swoon pink lemonade, seizing the moment of this monumental event.

With 2023 leaving an indelible mark as a transformative year for the Food and Beverage Industry, our anticipation is high as we eagerly embrace the prospects that the upcoming year holds.

Make sure to stop back each week for more top trending F&B news stories and to read our monthly blogs which highlight industry insights, business-building strategies, and more.