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Healthy Food Marketing: What do the Price Cuts Mean for Whole Foods Market?

Amazon and Whole Foods Market aren’t wasting any time. It’s been awhile since the e-commerce giant purchased the grocery chain for $13.7 billion, and no time has been wasted in this merger. Let’s review all the changes that are occurring and what this price war means for competitors.

Can we say goodbye to ‘whole paycheck’? We’ll see.

The day the deal closed on the Amazon-Whole Foods merger, headlines reported that prices at Whole Foods were slashed by 43%. While that sounds impressive, the reduction was only on a few things like avocados, bananas and some other select products. The real question is, was it a tactic to create the illusion of lower prices, or will it continue?

Seems like we are going to have to wait and see. And the real burning question is, will the price drops convert new customers? Will cost-conscious consumers that have avoided Whole Foods actually start shopping there? After all, Whole Foods Market prices are still higher than Walmart’s, Aldi and Trader Joe’s. A basket of Walmart goods still comes out 37% cheaper than at Whole Foods.

The critics are mixed. According to Neil Saunders, managing director of GlobalData Retail, “the reductions have, quite honestly, been haphazard and they’ve done very little to change people’s’ perception of the company.” But other sources say that these “price cuts on select items” aren’t a one time thing, they could be a long term approach, that loyal and new customers will ultimately love.

But Whole Foods continues to stand behind its commitment. “We’re determined to make healthy and organic food affordable for everyone,” Jeff Wilke, Chief Executive of Amazon Worldwide Consumer, said this week. “We will lower prices without compromising Whole Foods Market’s long-held commitment to the highest standards.”

What’s the Plan for Whole Foods?

Amazon has revealed some pretty exciting details in their plan for total grocery domination.

Here are a couple of the fun ones.

  • Amazon will reward Amazon Prime members with even more price savings and other in-store benefits at Whole Foods.
  • Amazon lockers will now be available at select Whole Foods. This means easy pick up and returns. And an even better in-store experience for Amazon Prime Members.
  • Amazon is now carrying Whole Foods line ‘365 Everyday Value’ on Amazon.com, a concept that lowers the cost for popular in-store items
  • Amazon is now selling their Amazon Echo at a lower price in store at Whole Foods Market, selling tech is definitely a new idea for the grocery chain.

The Competitor’s Reaction

The digitalization that has started with the marriage of Amazon and Whole Foods is definitely lighting a fire under the competition.

Krogers, Target, and Walmart are already working hard on ”multi-channel offers” and in-store experiences. Walmart is already making it easier for customers to order groceries and pick them up. Target has been spending billions of dollars to revamp the grocery section in their stores. And Kroger’s stock took a big hit as soon as Amazon lowered Whole Food’s prices. One source has even gone so far as to declare “Armageddon for traditional food retailers.” He believes the integration of on and offline food is going to change everything we know about the grocery industry.

The grocery landscape is changing quickly. Whether you believe in the Armageddon or just want some help in making your brand as Irresistible as possible, let’s talk. I can definitely help.

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What can Healthy Food Marketers Learn from these Millennial-loving Legacy Brands

Legacy Brands, it’s no secret you’re running to catch up with the newer, sexier brands. I’ve been discussing your hip and beautifully packaged competitors’ brands for a while. But the good news is, not all Legacy Brands are losing the battle to the new guys. There’s a lot to learn from Brands that are succeeding. As a more experienced brand, you have inherent strengths you can use to win over today’s consumers. See how these three powerful brands are beating the odds and opening themselves up to Millennials.

Haagen-Dazs is Getting a Makeover

Haagen-Dazs is over 50 years old. Everyone knows it but with brands like low calorie Halo Top and the flavor-innovators over at Jenni’s, the competition is fierce. To make themselves relevant, Haagen-Dazs is making moves with its packaging. This allows consumers to see the brand as vibrant, modern and most of all shareable. In this visual world of “doing it for the Gram,” Haagen-Dazs is looking to move away from “classy and stuffy.” Change in any capacity is definitely a good thing for Haagen-Dazs, and in this case, it’s actually beautiful, thanks to the illustrations by Andrew Wagner. But Marketers, we all know a makeover alone isn’t enough. Cleaning up ingredients is a definitely a trend to consider. In the meantime, this spot featuring Pharrell Williams and some very well dressed Millennials, shows off mini pints and stick bars, that are designed to relieve some of the guilt that a digging into a full pint creates.

Coca-Cola Gets Progressive & Sustainable & Nostalgic

This Coca-Cola spot was listed as one of the best of 2017 from Adweek. It has a little bit of everything that Millennials love; a forward thinking, progressive message, a hint of nostalgia, and the“hashtagable” tagline #TasteTheFeeling, wraps this spot up with a bow. That’s not all this legendary brand has been up to this year. In July, they created this campaign that boasts a sustainable packaging strategy to push more people to recycle. All brands (healthy and unhealthy) can learn from these forward thinking approaches.

Cheetos Lured Millennials to Their Pop Up Restaurant

Are Millennials into being healthy? Yes. Do they also love to indulge in ridiculous, “Instagrammable” food? Absolutely. Cheetos was formed in 1948 and it’s a Legacy Brand that happens to be killing it with Millennials. A few years back they created the Cheetos Museum, which won five Lions at Cannes. Just wait until you see what they’re up to now. Cheetos made a connection with millennials by opening up a pop up restaurant with Cheeto encrusted dishes in NYC. Cheetos is old enough to be the Grandma of a Millennial, but if a brand is irresistible enough (And works hard to excite and delight their consumers), age is just a number.

These are just 3 Legacy Brands that are listening to Millennials, watching their competitors closely and making innovation a priority. Marketers, these examples are stellar and they are not beyond your capabilities. If you missed our webinar this week When Love Isn’t Enough. How To Make Your Legacy Brand Irresistible to Millennials, take a look. It’s a deep dive into Millennials and the trends, brands and campaigns that they are currently connecting with.

If you’re a Legacy Brand that needs to connect with Millennials ASAP, let’s talk. I can help.

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4 Things About Millennial Marketing Your Brand Can’t Live Without

Millennials. They’re on my mind, your mind, on every single marketer’s mind. And they should be. After all Millennials are spending $600 Billion dollars a year. So if you haven’t registered for our webinar next week, now’s your chance. You’ll find out what really matters to Millennials and what they need most from you. We’ll also tell you exactly how to connect with Millennials and stay connected for the long haul.

Until then, here is some of my favorite, must-have Millennial info to whet your appetite. I pulled highlights of my most popular posts on marketing to Millennials into one place. Here are 4 things you need to know about marketing to this coveted demographic.

1. Millennial parents are a shopping breed of their own.

Just today I saw a Millennial friend’s Facebook post saying she only shops two places for her family: her local co-op and Costco. This is so on-trend and on-budget for Millennial parents. Marketers, you need to know exactly why Millennials love club shopping. Find out here.

2. Millennials want brands to embody what matters to them.

In order to get Millennials to run towards your brand, you need to be the right combination of all the things that matter to them: their aesthetic (hello Instagram), their values and their desire for experiences. And the great news is, if you’re willing to do all those things, they are willing to pay more. How do I know? I just spent a summer learning from a bunch of Millennial interns – this is stuff you can’t get in the trades. This is straight from an actual Millennial.

3. Millennials have the power to redefine categories.

Just look what they did in the supplement space. They’re obsessed with nutrition and passionate about alternative health. Not in the immediate health and wellness category? Doesn’t matter. Because the way Millennials shop for and use supplements has reinvented the entire category. There are insights here you could apply to any category. The way Millennials demand transparency informs the way they shop for and experience every category. Learn more here now.

4. Millennials have the power to transform a product into a phenomena.

Can you say Rosé? It used to be just another wine. Now it’s a way of life, influencing everything from color to a whole season of the year. It’s just one example of how Millennials lead a highly-curated way of life, speaks to their willingness to spend, adventure and enjoy life. And of course splurge, both with their dollars and their calories. It’s a powerful peek into the Millennial mind. Go ahead, take a look.

All of this points to one staggering fact: in 2018, Millennials will have the most spending power of any generation. If this isn’t incentive to learn even more about them, I don’t know what is. There’s still time to register for our webinar, where you’ll learn how to catch Millennials and keep them.

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Whole Foods And Amazon: The Lovers, The Haters And What It All Means

There are apparently two kinds of people: Whole Foods lovers and Whole Foods haters. The lovers (me), are about as devoted as consumers get. The haters, not so much. Can the Amazon acquisition narrow the divide? And does that mean opportunity for all of the brands that are sold at WF and on Amazon? And what can we as marketers learn from this incredibly polarizing brand?

Whole Foods is already just plain Irresistible

In our latest I-Factor® study, benchmarking 7 leading retailers and 1400 consumers, we uncovered fascinating insights about Whole Foods.  It was no surprise that Whole Foods is THE MOST Irresistible brand in the study. Those that prefer Whole Foods are hands-down devoted. It’s cult-like loyalty. Consumers are quick to declare their love and willingness to pay for it. So what’s the secret sauce?

According to our I-Factor scale™, brands need pretty high scores in all 3 Cs (Comprehend, Crave and Crave) to boast true Irresistibility: We created this approach to look at the entirety of the relationship consumers have with brands TODAY. The study gives brands real data to fill in the relationship gaps and create the change brands need to reach true Irresistibility. Think of the 3 C’s this way. Comprehend measures what consumers know. Crave, how they feel, and Craze, what they do.

So how does Whole Foods measure up?

For loyalists, Whole Foods is an extension of how consumers see themselves

Out of all the retail brands we benchmarked, Whole Foods had the highest “Badge” score. Why? Because “Whole Foods truly resonates with their consumers.” Much of their strong consumer connection comes down to shared values and extreme relevance. And no brand can match the experience Whole Foods has created. It proves there is real power in taking a stance and standing for something.

But Whole foods is polarizing. They also had the lowest score among the non-preferrers we surveyed.

The lovers and haters are at opposite ends of the bell curve. In fact, there’s a 29 point difference in the overall I-Factor® score between the two groups-the biggest gap for any brand in the category. Those who choose not to shop at Whole Foods have equally strong opinions of the brand.

Can Amazon make Whole Foods even more Irresistible

There’s a widespread belief that the Amazon acquisition will allow Whole Foods to sell to more consumers for less money, giving new populations access to healthier foods. Will that be the tipping point for Whole Foods? Whole Foods has never been all things to all people, but this could allow them to reach consumers who have previously rejected the brand. The art will be getting new lovers without diluting their positioning and alienating the loyalists.

Can Whole Foods turn haters into lovers?

Some of our data could point Whole Foods in a specific direction. While they have exceptionally high scores in Comprehend and Crave, they are definitely lacking in Craze. Meaning as much as consumers love Whole Foods, they are not wearing or sharing that with others. Their “buzz” score, even among lovers, is surprisingly low.

Today the strongest, most Irresistible brands not only connect with their consumers, they move them to work on their behalf. They become part of consumers’ personal brands. Amazon will open the door to the haters, but I believe that if Whole Foods could inspire their best consumers to go from lovers to advocates, they could seal the deal.

Want to find out what your brand can learn from your lovers AND your haters? Let’s talk.

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How is the Amazon – Whole Foods Market Acquisition Affecting these Two Brands? And Everyone Else?

Amazon’s Whole Foods Market takeover is the buzz that keeps on buzzing. This deal is affecting Amazon and Whole Foods, as well as all the grocery competitors who are already in the midst of a pricing war. The acquisition is changing the way consumers shop in store and online. Here’s a top line of how Amazon is impacting Amazon, Whole Foods, and everyone else:

1) Will AmazonFresh change for the better?

Amazon has been working hard to grow its online grocery service, AmazonFresh. It’s been a slow growth as the concept of online grocery remains a “logistical puzzle.” This hasn’t stopped Amazon from trying to convert Prime consumers to Fresh. The Whole Foods deal should wipe away any trust issues that consumers may have had when it comes to ordering groceries online. And it will give shoppers access to high quality fresh food at a price they actually can afford.

2) Will Whole Foods change for the better?

Retail consultant Neil Stern says, “Amazon is a data-driven company while Whole Foods is an instinctive, merchant-driven company.” Sources say that the differences between these two powerhouse companies, will create synergies they both need. Whole Foods has lost customers because the prices are too high. Their partnership with Amazon will allow the company to not only lower prices, but will also allow them to price smarter, thanks to Amazon’s rich data. Stern also says  “Amazon is a data company first and foremost.” The intel and analytics will enable Whole Foods to collect all kinds of data on their customers that they haven’t had access to. And we know how powerful that can be.

3) Will  this escalate The Pricing War?

This deal has competitors feeling the pressure. While they have high quality goods in the aisles, they may have to lower the prices below their actual value. Stores already feel the pressure to lower prices to stay competitive with Walmart. This Amazon deal could create a whole other set of challenges.

4) Will this heat up the “Supermarket War”?

The announcement of this acquisition was swiftly followed by falling shares of Walmart, Target, Kroger, and Costco. Business Day says that “Amazon is poised to reshape an $800 billion grocery market that is already undergoing many changes.” Leading grocery stores are faced with the threat of Amazon’s technology, data capabilities and the convenience of online shopping.

As if this wasn’t enough “Grocery Giants” are also fearful of what’s to come from Lidl and Aldi, European grocers that have made quick inroads in the US. Both companies have major expansions in full swing. Experts also fear that Mom & Pop shops will be pushed out, as big and small chains compete in this extremely cluttered market.

This deal has set off a catalyst for change and competition in the industry, unlike anything we’ve seen in the past. Consumers will benefit from pricing, variety, and the democratization of fresh. Competitors will be pushed to make major changes.

Is your brand feeling pressure from the acquisition of the century? If the answer is yes, then let’s talk. I know I can help.

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The Amazon Acquisition will Make Room for The Democratization of Fresh and Healthy

The Democratization of Fresh

The dust may never settle around Amazon’s Whole Foods Market Acquisition, but some exciting implications are starting to become clear.

Until now, the way that consumers eat, and their access to quality, healthy food has largely been determined by economic status. Those with higher incomes eat higher quality, fresher food. Lower income means lower quality and more processed foods  but things have been changing, slowly but surely.

One of my favorite brand founders, Annie’s Homegrown President, John Foraker, believes that this acquisition has the power to defeat food deserts, locations throughout the country where nutritious and fresh food is very difficult to obtain. According to Foraker “The thought of Whole Food’s mission combined with technology and the ability of a company like Amazon to help conquer some of the last-mile issues that have prevented access and distribution into really difficult places seems like a golden opportunity, I couldn’t agree more.

I believe the  “Fresh Food Takeover” will be accelerated by this acquisition and that many legacy brands and newcomers will be affected by Amazon’s deal, some positively, and some negatively.  Bloomberg reported that Amazon would like to change the overpriced image that Whole Foods Market represents, which means That “Whole Paycheck” won’t be whole for much longer. It also means the competitive pricing between brands will definitely be fierce. Analysts estimate that more than 50 million Americans, use Amazon Prime. Their merge with Whole Foods Market is a huge opportunity to bring fresh food to the consumers who’ve couldn’t afford it before.

This deal is going to mean wonderful things for consumers but what will it mean for legacy brands?

Legacy Brands Will Lose Share to Smaller Brands

Our recent webinar went into great detail on this hot topic.  As a result of this merger it will be easier for consumers to make the jump to smaller, healthier brands. Leaving legacy brands like Unilever, Kraft Heinz, Campbell Soup, and General Mills in an even more precarious position than they already are. Many “little guys” have already reached the health-conscious consumer radar in a big way, and this partnership could lead them to mass distribution that goes beyond their wildest dreams.  And the demand is definitely there. Look at success stories like Noosa, a brand that quickly went from being sold in zero to 25,000 stores. Justin’s Peanut Butter started out small but they were soon purchased by Hormel for $286 Million. Amazon’s intent to make the Whole Foods’ products more affordable will make it possible for many more consumers to make fresher, cleaner choices.

Smaller CPGS – Be Wary of the Fresh Food Takeover

Amazon CEO, Jeff Bezos has fully embraced organics and natural foods, and us marketers are learning it’s not a passing trend. Analysts predict that this merger will have also have Conagra and the mid tier companies scrambling as they get squeezed even more by competition from the more natural brands from above and private label from below.

The good news in all of this-food will get fresher and better for all consumers, but the competitors are going to need revise their strategy or risk becoming irrelevant.

Is your brand feeling pressure from the acquisition of the century ? If the answer is yes, then let’s talk. I know I can help.

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Amazon has Rocked the Healthy Food Marketing World by Acquiring Whole Foods Market

As a Whole Foods Lover, I am actually a little surprised that Amazon only paid $13.7 billion dollars, I feel like I’ve spent that much there! But I couldn’t be happier. I feel like this is exactly the right thing for Whole Foods. And it is clearly a big deal.

This acquisition has made the news every day since it was announced. Rocking both the retail and grocery world. Stocks prices at stores like Target, Walmart and Costco fell sharply, as did Kroegers.

Mark Hamrick, a Senior Economic Analyst at Bankrate.com, is calling this “an earthquake rattling through the grocery sector as well as the retail world.” – so dramatic!

Amazon’s massive success created a path for Amazonfresh to move into Brick & Mortar, so this merger seemed like a natural next step. It’s also brilliant when it comes to taking the risk out of home delivery of produce. Random produce at my doorstep? No thanks. Whole Foods at my doorstep? Yes, please.

Why this Will Have a Happy Ending

I see a long happy marriage ahead, especially as a I learn more about the strategy for this merger. Diana Sheehan, the director of retail insights at Kantar, said that the profile of a Whole Foods Shopper is similar to an Amazon Shopper.

Matt Sargent, the senior vice president at Frank Magid and Associates, reported to Food Dive that 28% of Whole Foods shoppers are already shopping Amazon for groceries.

Whole Foods stands to gain a tremendous amount from Amazon’s prowess online and in the technology world, while Amazon gets the organic and retail expertise that makes Whole Foods so Irresistible.

CEO John Mackey’s take on the merger: “This partnership presents an opportunity to maximize value for Whole Foods Market’s shareholders, while at the same time extending our mission and bringing the highest quality, experience, convenience and innovation to our customers.” This really sounds like a match made in Heaven.

Diane Sheehan believes that  “Amazon is saying, ‘We’re in it to win it, and we’re going to do whatever we need to do here, and you need to start taking us seriously.’”

Competitor’s Beware!

Scott Galloway, professor of marketing at NYU Stern School of Business, said “this is a frightening day for every retailer that is not Amazon.”

This deal has the potential to heighten the already competitive war between Amazon and Walmart. Right now, Walmart is “the top seller of groceries in the U.S. and the world’s largest retailer.”  — expect Amazon to try to change that.

And with Groceries making up 56% of Walmart’s revenue, they could be in some serious trouble.

And Target stands to lose a lot  as well. Lots of opinions are swirling around, one points out that Target has between 12 and 18 months to refocus its grocery strategy,

How can Marketers Compete with Amazon & Whole Foods?

With stocks already dropping and retailers in an absolute frenzy, marketers are going to have to get pretty innovative.

Stay tuned because next week, we’ll release the results of our proprietary I-Factor® study on the the top 7 retail and grocery brands. And guess who’s included? Get ready for scores and consumer insights on Whole Foods, Walmart, Amazon and Target.

And if you want to protect your brand and make sure you are truly Irresistible, Contact me to set up a free consultation.

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Why is coffee so Irresistible? What Healthy Food Marketers need to know.

Most people who know me know I love my coffee.  I think about it the moment I wake up and soon as I put my cup in the sink, the countdown begins to my 3 o’clock cup. As more and more research pops up about its health benefits, I feel even better about my love affair with coffee.

Seeing where the coffee market is headed is pretty remarkable. And I’m telling you, marketers, you need to tune in here. Because the percent of Americans drinking coffee, especially gourmet coffee, is on the rise. There is so much that other categories can learn from the triumph of these coffee based brands. Get yourself a cup and settle in for insights every marketer needs to know:

Earn consumers’ trust then offer them the more

Right now Starbucks leads the mainstream coffee conversation. They earned America’s love and trust with coffee and now we’ll buy just about anything they offer us. They seem to be right on top of every trend. Walking into Starbucks is like attending a marketing master class. And many of their product offerings have nothing to do with coffee. So what did Starbuck do get us to trust them with things like energy bars and chickpeas? We trust them so much that we’ll try almost anything they endorse-look at what they did for KIND and Hippeas. Starbucks  has mastered the art of brand partnerships. Not only have they established trust but they know their consumers so well, they can predict what other products they’ll buy when they’re in the store.

Put the planet first

The experience of single-serve coffee has become a part of our culture. Keurig started the trend, but Americans soon started talking about  the environmental impact. Today’s coffee connoisseurs and consumers demand the ultimate in flavor,  freshness AND environmental responsibility. Nespresso is all over this. They’ve made it it easy and free for consumers to return their pods for recycling. And that made Nespresso our winter coffee solution.  And that saved a lot of cold walks to our other go-to for truly delicious coffee, Rook. Don’t worry Rook, spring is here (sort of)vand you can expect demand for Iced New Orleans to rise quickly.

Design an experience around your product

Millennials are  looking for brand experiences. The pourover revolution is providing  exactly that, meeting the desire for flavor and the ritual-like experience. The Chemex is a great reminder of the importance of design. As  a fixture on your countertop, shouldn’t your coffee be beautiful? And the about-to explode (a prediction) chain Blue Bottle is taking the coffee experience up — or maybe even back — a notch. Their extensive employee training brings new art to coffee. And get this, they don’t have wifi or outlets!! They’re reinventing the coffee shop as a place to engage with other humans. How’s that for a refreshing spin on the experience? These coffee innovations have me wondering what other brands could do to help consumers get closer to the human experience, and get further from the digital one. If coffee can do that, can your brand?

 

Well, now I’m craving a cup of Joe. Why not join me and talk about how we can apply these insights to your brand?

 

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What Made Whitewave so Irresistible to Danone?

You probably already know that Danone just acquired Whitewave, the plant-based, non-dairy enterprise. Our office was abuzz over this news, because we had just literally finished our benchmark studies of Whitewave’s Silk and So Delicious.

Danone strikes consumer gold

Why would a dairy giant be interested in acquiring a non-dairy giant? Because they’re in tune with what consumers want. The non-dairy category was created for people with intolerances. But now these products have become SO mainstream that most of its consumers are choosing plant-based and dairy-free because they believe it’s a healthier option. Sales of “free-from” products like non-dairy grew an incredible 36% in just one year. And this trend isn’t going away anytime soon. Danone couldn’t have picked a better time to acquire Whitewave.

So what does Danone need to know about Whitewave’s consumers?

Silk needs a deeper connection with its consumers

When we studied the relationship between Silk and So Delicious, we noticed they both had pretty average scores (which to us means huge opportunity!). Let’s start with Silk. They had the lowest scores in all three  I-Factor® categories, Comprehend, Crave and Craze,. They were particularly low in buzz around the brand. Consumers just aren’t talking about this brand.  This sort of surprised us considering they were the true pioneers in the non-dairy category. Silk’s  experience and knowledge scores (the dimensions under comprehend)  were respectable. So what does this tell us? The consumer connection is possible, but barely there at the moment. For Silk not to be a commodity, they need to dig up compelling insights and build a deeper, more lasting connection to its consumers.

Millennials love So Delicious… but Love isn’t enough

If our agency fridge is a litmus test, we would have predicted that So Delicious would win the dairy-free category. And no surprise, I-Factor® scores proved just that. They earned the highest scores in every dimension, including frequency of purchase, making lives better and consumer knowledge. And they’re an especially big hit with Millennials with 15% higher scores than the gen pop. All good news for So Delicious, but the scores showed us that the connection could be stronger. Right now consumers aren’t seeing themselves in the brand as much as they could.. If you’re listening, So Delicious? Here’s an opportunity for you.

Danone learns a lesson in letting go: Goodbye Stonyfield

In order for the Danone acquisition of Whitewave to be official, Danone needed to sell Stonyfield. Stonyfield was completely acquired by Danone 2004 and last year, Stonyfield had sales of about $370 million. But because Danone owned Stonyfield, the Department of Justice’s antitrust division almost blocked the $10 billion Danone-Whitewave acquisition citing the potential for “reduced competition in the organic milk market.” Danone agreed to sell Stonyfield for an estimated $927 million in order to get the approval from the DOJ. They obviously get the need to diversify into the Dairy Alternative category in a big way.

With all the changes Danone is going through, it is critical that they stay super in tune with ALL of their consumers, existing and new. THAT is exactly what I-Factor® can do for brands, really help them understand all of the dimensions of their relationship with today’s consumers. Ready to see what it will take to make your brand truly Irresistible? Let’s talk.

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Health Food Marketing: Tea is HOT Right Now

It’s no secret that coffee is my first love. But  right now I have a big crush on tea. And seeing the tea market explode is pretty exciting. Tea is on the rise with 15% growth in the last ten years. Marketers, here’s what you need to know about this hot, hot trend.

Why is tea so irresistible right now?

Everything about tea aligns with the priorities of today’s consumers, especially millennials. And millennials love of tea is not new. The statistic is amazing: 87% of millennials choose tea. Why? Gone are the days of sugary drinks being number one. And tea lends itself so nicely to the thing’s today’s consumers want most: health benefits, transparency and a ritual-like experience.

Even the LA Times is reporting on the growing trend of high tea around the globe at some of the hottest hotels. They report that the high tea at the Four Seasons in Santa Barbara books up three weeks in advance. Bottom line: high tea is highly trendy.

Thanks to Starbucks, Right now Teavana owns mainstream tea

Starbucks had their eye on the future when they bought Teavana for over $600 million in cash in 2012. They had high hopes for the growth of Teavana retail stores, which so far seem to be falling a little short of their Venti-sized vision. They still have over 400 stores, but have closed some key locations like Beverly Hills.

However, a little thing like a store closing will not stop beverage guru Starbucks. They’re continuing to look ahead by expanding Teavana locations to India – betting big on India’s tea-drinking population. With their massive global presence, continuous innovation and connection to its consumers, Teavana is redefining the tea experience.

Tea fulfills America’s desire to slow down

If you haven’t heard of the Matcha Green Tea Trend, where have you been? The crafted high quality green tea, can give off more energy than coffee and the number of matcha infused treats such as matcha soft serve is growing by the second. The matcha experience feeds consumers desire to slow down. It is an almost meditative experience amidst the speed of this Digital age. The preparation is a ritual in itself. And it’s becoming so hot there’s even Matcha Mania on menus at some of the hottest restaurants.

Iced tea gets a makeover too

The $7.3 Billion tea market can be partly attributed to the burst of Ready-To-Drink tea. And tea leader Teavana is right on trend, just announcing their official launch of RTD to stores. Their new Teavana Craft Iced Tea is launching in grocery and convenience stores and Starbucks (of course) will carry them too. The Craft Iced Tea is so smart because it’s hitting all the coveted millennial requirements. It’s 100 calories per bottle, blended with Teavana tea and botanicals and comes in on trend flavors. And Legacy brands are taking notice. Nestea is even reinventing itself in an attempt to stay relevant.

 

Looking for ways to light a fire under your brand right now? I’d love to work together and turn up the heat. Let’s talk.

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Nutella vs. Peanut Butter: Will Nutella’s lead last?

Today’s consumers are getting more and more health conscious. So it makes perfect sense that their favorite spread is… Nutella?! Yes it’s true. And peanut butter brands are waging war. Read on marketers. Because this is a juicy tale of a brand that has withstood the test of federal legal scrutiny and even a public health scare (PSA: no, Nutella does not give you cancer). An I-Factor® study revealed data that will surprise and inform. Will the love affair last? Regardless, we’ve uncovered some deep consumer insights into Nutella’s rise to Irresistibility.

What’s trending? Consumers love a good contradiction.

Trends can be so contradictory. One day #vegan, #organic and #paleo are trending on Instagram and the next it’s #foodgasm, #gourmet and #dessertporn. Nutella has hit the super sweet spot: appealing to health conscious consumers, with the help of the brand pushing away from the ‘dessert’ label.

When Nutella first made its U.S. debut in the early 80’s, it was positioned as an alternative dessert topping. But consumers here didn’t get it. It wasn’t until 2009, when Nutella started branding itself as a breakfast staple that it reached the level of Irresistibility it has today. They earned a cult following on social media as Millennials made the trendy European spread their own.

Even healthy consumers want to indulge.

Nutella’s success is significant because they broke into the peanut butter consumer base. Lovers of Smucker’s and Skippy turned to Nutella. An analysis of Nutella’s label shows nutritional inferiority to peanut butter, but consumers seem happy to use Nutella as another nut butter for their morning toast.

This I-Factor® study on the Peanut Butter & Spreads categories dug deep. We looked at Nutella, Smucker’s, Skippy and Peter Pan. And we uncovered some data Peanut Butter may want to take a look at.

  • In the I-Factor questionnaire, Nutella outranked its competitors’ scores 95% of the time.
  • Nutella’s scores won big in “irreplaceability” and “social buzz.” These areas are KEY for a brand’s survival in today’s digital landscape.
  • These scores show that Nutella has the tightest, deepest consumer connection in the whole nut spreads category.   

Can Nutella withstand the test of time?

Can Nutella hang on even with the FDA? Nutella is classified as a dessert topping but they WANT to be classified as a jam. No biggie, right? Wrong! Health groups and peanut butter people are freaking out and rightly so. They feel this could mislead consumers into thinking Nutella is lower in calories than peanut butter.

Also, did you know one jar of Nutella is 56% sugar!? Even just 2 tablespoons comes out to around 21g of sugar. Skippy peanut butter on the other hand, only 3g for 2 tablespoons.  

Is your brand trailing behind some unlikely competition? I’d love to help you get ahead again. I can help your brand become so Irresistible that it’s a lasting lead. Let’s talk.

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Healthy Food Marketing: Walmart’s Quest to Stay Relevant

I like many others, am watching Walmart closely right now. It’s not surprising to see how relentless this legacy giant is about staying relevant.

Until Amazon came along, Walmart seemed untouchable. So much so, that brands approached them with reverence and even fear. While there is still a lot of that, Walmart has no choice but to look at Amazon with the same reverence. So Walmart’s watching every move as they try to play catch up to the number one U.S. retailer. Now Amazon is paying attention.

As an Amazon devotee, it’s hard for me to imagine Walmart catching up in online retail, but they sure are trying. And marketers could learn a thing or two. Here’s what Walmart is up to. And what any Legacy Brand could learn from their journey.

Win big by gaining new consumers

You’ve probably seen Walmart in the news for buying up niche retail websites like ModCloth, Moosejaw, and Shoebuy. This comes on the heels of its multi-billion dollar acquisition of Jet.com, and the subsequent installation of Jet founder Marc Lore as head of U.S. online operations.

For the first time Walmart will let these sites run independently. That’s important because it allows the brands to maintain their integrity. That is proven way for a legacy brand gain new consumers without alienating their existing base. Walmart has the cash and logistics to support growth of these businesses, while these niche websites allow Walmart to expand its offerings to consumers they probably wouldn’t have reached with the Walmart brand.

Watch who is winning and learn, learn, learn

Is Walmart taking a play out of Kroger’s book? By acquiring regional chains as a strategy, Kroger has been successful at winning more of the market and have expanded their offerings. Kroger knew there wasn’t much need for new competition in grocery stores, so they grew by acquiring brands in the space they wanted to be in. For Walmart, buying hot ecommerce brands is setting the foundation to pull in front of Amazon with a diverse network of product offerings. Who will they acquire next?

Stay relevant to existing consumers

On the brick and mortar front, Walmart has focused on investment in tech research, installing pick-up kiosks to accommodate online orders, and lowering prices , thus improving the consumer experience. Translation: consumers who already loved Walmart are being offered more and more reasons to stay loyal. The idea is to keep these customers coming back for what they are already buying and much more.

Think like Amazon: Innovate for tomorrow’s consumer

While Walmart is innovating for today’s consumer, Amazon is already innovating for tomorrow’s. We know like other struggling online grocers, Amazon Fresh has performed well below expectations, and now we wait to see what happens when Amazon Go to open its doors. I see major potential for Amazon Go as a boon for customers and marketers. What makes Amazon Go really cool and promising is that it offers convenience that competitors can’t. Amazon Go will allow consumers the experience of picking out their food in person, without the hassle of lines and traditional checkout. Amazon thinks they have found a sweet spot. We’ll all have to wait and see.

Marketers, what’s your plan to get ahead in this digital world where things seem to change every single second? Do you have what it takes to constantly innovate and grow? What will it take to make sure your brand isn’t just profitable, it’s Irresistible. Are you ready? Let’s talk.

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Healthy Food Marketing: Reviving Legacy Brands

Can you feel it? Consumers are pulling away from legacy brands. They’re following the lure of newer, sexier brands. The ones that seem to really “get” them,  and make them feel seen and heard. In this crazy, fast-changing environment, the love consumers have for legacy brands just isn’t not enough. Because in I-Factor® study after study, one thing keeps coming through: This relationship may just be a result of longstanding habit, not a conscious purchasing decision.

Although it’s a very common mistake,we marketers can’t assume consumers will love our brand just because they always have.  It’s time to create some excitement, feed the knowledge funnel. If this is sounding like relationship advice, it is. A brand’s relationship with a  consumer needs as much attention as our personal ones. Here’s how to reignite the spark.

Start with a solid brand foundation

Among our I-Factor® studies, the brands consumers “love” the most are all legacy brands: Nutella, Snapple, Baskin Robbins, Goldfish, Gerber, and Smucker’s. And while we now know that love isn’t enough, it is a solid foundation to build on.

While some of the newer, more health-conscious brands like Happy Baby, Plum Organics, CHOPT, and Sweetgreen win when it comes to bringing consumers more joy, legacy brands have withstood the test of time and don’t need to panic, but they do need to pay more attention.

Build energy by giving consumers something to feel good about

This should be easy for marketers of healthy food. Today health conscious, shoppers want to feel good about what they are purchasing.  And really understanding this can help consumers feel that way about brands . Most of the  brands that score the highest around connection to  the essence of today’s consumers are better-for-you, non-legacy brands. Brands like Happy Baby, Amy’s, and Alexia.

Consumers demand transparency and these brands are delivering. If you’re marketing a Legacy brands, consider what part of the brand story hasn’t been revealed? Consumers are dying to know everything. Delivering this could win big in both consumer love and in dollars. But these brands have to be prepared to come clean. Consumers want it all: the story, the sourcing, the people, and the causes you stand behind.

Become so irresistible that consumers start sharing

Consumers know a ton about newer brands. But they still  want  more. They actively seek out even more information online. But, this knowledge doesn’t always = love. They still have a much deeper love for legacy brands.  So if a legacy brand really can connect with them through a compelling story, they could really get to True Irresistibility. And that means your consumers will start wearing the brand like a badge, and sharing your brand with everyone they know.

And in turn, those relationships becomes your  relationships, too. And as the brand following grows and grows so does the consumer base. Exciting stuff, right?

Bottom line: legacy brands, you’ll always have the advantage of your relationship history.

But like any relationship, it’s fragile and it needs attention.

Legacy brands don’t  let consumers be wooed away. I-Factor can uncover tons of actionable insights and data-driven opportunities for brand reinvention and platforms  to reignite relationships with

Consumers. I’d LOVE to get to work on this with you. Let’s talk.

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Healthy Food Marketing: The Battle of The Yogurt Brands

Yogurt is creamy, irresistible, and totally ruthless. That’s right, the yogurt aisle has become a battlefield. Who would have thought little cup of dairy, could be so powerful? Marketers pay attention. There is a smack down going on between Chobani…and well everyone else.

First doesn’t mean best

This now commoditized category started before Greek was even a thing. Dannon, a 75 year old brand built the category. It was the first branded perishable dairy item to be sold coast to coast in the United States. Dannon introduced the Greek yogurt brand Oikos in 2010 but before that, there was Fage.  Fage was the number one yogurt in Greece. And for a while they were the number one Greek Yogurt in America. Now they only have 14% market share compared to Chobani’s 47%.  And look how much this legacy brand is suffering:  Yoplait, a General Mills brand, has seen their market share go from  25% to 19% over the course of five years. Yet more bad news for General mills.

The Chobani Craze

So how did Chobani in just 12 years, Americanize  Greek yogurt? How did they manage to rake in  $1 billion in sales in a five year span. Part of their success was incredible marketing. But another important part has been great innovation, and we can all learn from that.  Their list of innovations is constantly growing and includes their ingenious flip cups,  Simply 100, and their popular Café” in NYC, where you can enjoy Chobani yogurt with artisanal ingredients, creating the kind of experience today’s consumers really want. And they recently launched  drinkable yogurts and Meze Dips.

Chobani Speaks Consumer

So why does Chobani do so much better than some of their legacy competitors with similar innovations?

While food giants have the power when it comes to distribution, it doesn’t mean that their brand speaks to consumers. John Grubb, managing partner at Sterling-Rice Group says companies who try to copy trendy new products, “suffer from a lack of culinary distinction.” Not so with Chobani.  On their website they have something called “Chobani Way”. Here the  brand is completely transparent. That’s  something most legacy brands just aren’t yet comfortable with, and they are paying the price.

Marketers, Watch Out for the Newcomers

Just because we’re talking about yogurt, doesn’t mean we’re not talking about your brand. We all know new brands have the potential to get hot fast!  Have you heard of Noosa yogurt? If not I’m sure you will soon. Noosa began by selling at farmers markets and then made its way to the shelves at Walmart and Publix. Noosa is one to watch because while it is rapidly growing it has “stayed true to its grassroots appeal”.  Check out Co-founder Koel Thomae’s wise words, “We’re also so dedicated to what makes us different and unique. And part of that is being able to control the quality of the product.”

Getting on Chobani’s Level

You can’t be slow in the yogurt (or any) business. It’s critical to find out what makes your brand Irresistible to today’s consumers. Do you want to take your brand to the next level? Let’s talk.