Category: Bill Sipper

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It’s Time for Glass Again — Can We End Beverage Industry’s Use of Plastic?

When was the last time you were able to purchase a soft drink in a reusable glass bottle?

When was the last time you even saw a soft drink in a glass packaging?

Today, single-use plastic packaging is still omnipresent, despite our increasing environmental awareness. According to a World Wide Fund for Nature study, an average person consumes 1,769 tiny plastic particles and fibers every week just from drinking water. That accumulates to around a half-pound of plastic every year!

And we aren’t the only ones feeling the impact of plastic. We might be the last link experiencing the results in the huge chain that makes up our environment. Unfortunately, the beverage industry plays a significant role in plastic pollution of the Earth. Let’s have a closer look at how plastic impacts our environment and whether we could turn the bleak trend around by going back to glass bottles.

Environmental Impact of Plastic

In the ‘60s, plastic waste was observed in the oceans for the first time, which ended the reputation of plastic materials as entirely positive and great to use. Even though plastic helped our industrial advancement, especially in the years after World War II, we did not have enough foresight to predict its environmental impact.

And it is dire, mostly because that plastic, made from synthetic materials not found in nature, can take forever to decompose on its own. Most plastic bottles take at least 450 years to biodegrade, and only if they weren’t made with Polyethylene Terephthalate (PET).

Today, plastic pollution is a huge problem — it has contaminated our oceans most of all. Toxins from plastic find their way into plankton, which is the base food of most marine ocean species. It travels through the entire food chain, ending up on our own tables.

But our air and land are also polluted. When plastic is burned to dispose of it, toxins are released into the air. While it waits for its turn to be disposed of in landfills, we end up needing more and more space for storing garbage.

According to Science (website), about 8 million metric tons are thrown into the ocean each and every year. This is the equivalent weight of approximately 25,000 Empire State buildings (website). Even with current recycling and conservation efforts, the amount of plastic in the oceans will increase 10 times by 2020 (website) and by 2050 there will be more plastic in the oceans by weight than fish (website). Recently, a dead whale in the Philippines contained more than 88 pounds of plastic in its stomach (website). Has anyone asked what happens to that plastic when we eat the fish that live in our oceans?

The global annual production of plastic exceeded 350 million tons in 2013. By 2015, the world had produced 7.8 billion tons of plastic. Back in the day, single-use plastic seemed like a great idea — but we are overproducing it, drowning in it, and making the entire planet sick in the process. And it is time to re-think single use plastic beverages.  Recycling has failed to fix the ultimate problem.

According to Greenpeace (website) and the Breakfree from Plastics Movement (website) the top four plastic polluters in the WORLD are, from highest to lowest, Coca Cola, PepsiCo, Nestle and Dannone.

This conversation is not simply about the birds and the bees or “fishees” in the ocean.  This conversation is about the world in which human beings live and the net effect plastic has on human beings, current and future generations. It is impossible to argue that plastic is good for mankind.  It is convenient and it is less expensive, but that does not make it acceptable. Food and Beverage companies need to take responsibility for the damage they are doing to promote their bottom line.

Use of Plastic in the Beverage Industry

The beverage industry is one of the major players in the plastic packaging market — especially the companies that produce soft drinks, like Coca-Cola and PepsiCo. According to Greenpeace, Coca-Cola Company alone produced more than 100 billion plastic bottles in 2016. And if we compare this statistic to the data stating that over 90% of plastic isn’t recycled, it becomes easier to put the beverage industry plastic pollution into context.

In the earlier years, these big names in the industry committed to plastic, believing (or simply stating) that they would increase their efforts to reclaim and recycling it. However, with a lack of deposit systems and financial incentives to recycle, the system ended up being wasteful. Around 70% of bottles are never reclaimed, which leads to a low recycling rate. According to Euromonitor data, less than 7% of recycled bottles were turned into new bottles.

Beverage giants like Pepsi are aiming to start using biodegradable plastic. However, according to some experts, this will take a long time to accomplish, because the packaging must still be able to preserve the contents. What’s more, even biodegradable plastic can release damaging gases into the air, such as methane.

Initiatives against the Use of Plastic

https://time.com/4186250/ocean-plastic-fish/

Slowly but surely, the public opinion grows harsher towards plastic, especially single-use plastic that is most responsible for pollution. More and more initiatives against it are cropping up, and we might soon ensure that the industry as a whole takes a turn to a different direction.

One of the most notable ones is the New Plastics Economy Global Commitment, which was launched in 2018 by Ellen MacArthur Foundation (EMF) and UN Environment. It has 250 corporate signatories, including Danone, PepsiCo, and Coca-Cola Co.

All of the signatories committed to a few decisive actions to complete by 2025:

  • to take action to eliminate unnecessary or problematic plastic packaging;
  • to move away from single-use models towards reuse models where that’s possible;
  • to use recyclable content in all their plastic packaging;
  • to make 100% of their plastic packaging reusable, compostable or recyclable.

While these efforts to make plastic packaging recyclable and to improve our recycling systems are a step in the right direction, perhaps we need to look away from synthetic substitutes and slightly different alternatives. There are much more sustainable packaging solutions, one of which the beverage industry has used in the past. Of course, that would be glass packaging.

Use of Returnable or Recyclable Glass Bottles

In 2012, we saw the last ever returnable glass Coca-Cola bottle pass away into beverage history. Soft drinks and glass bottles used to be great friends in the early days of the industry, as the glass bottles were able to endure the pressure of carbonation.

However, the practice of returning glass bottles had nothing to do with sustainability or environment preservation back in the day. The reasons why consumers were incentivized to return glass bottles to the manufacturer with a bottle refund fee were the price and difficulty of the manufacturing process. The bottles were therefore considered company property, and consumers would return them to be refilled and reused.

Eventually, the glass bottle was overshadowed by the plastic model, as it was much easier and less expensive to transport plastic safely. Plastic bottles were considered to be more lightweight, resistant to breakage, and therefore superior in every way when compared to glass bottles. The environmental impact wasn’t considered or analyzed.

Benefits of Reusing Glass Bottles

http://www.fashionrepublik.com/virgil-abloh-designs-evians-first-reusable-glass-bottle/

What beverage companies were unaware of was that the practice of reusable glass bottles helped keep excessive amounts of waste from the landfills. But as it turns out, plastic isn’t the superior packaging material in any aspect other than weight and resistance to breakage. Glass bottles are more hygienic, and more capable of preserving the contents without a change in flavor, strength, and aroma — not to mention their aesthetic appeal.

Overall, there are multiple benefits to returning to the practice of using glass bottles for the packaging of soft drinks. Perhaps the biggest obstacle to returning reusable glass bottles as the industry standard is the way things are done nowadays.

Since there is no standard glass packaging, every bottle looks different. That makes reusing more difficult, as we have to sort our glass bottles meticulously to determine which ones we can recycle, and which ones we can return and where. The process for the consumer isn’t straightforward — but could it become more so?

Could Beverage Industry Start Using Glass Bottles Again?

If we take a look back, we could find the time where most liquids were packaged into glass bottles to be refilled and reused, and learn from it. Before World War II, that used to be the industry standard. However, all glass bottles were identical and therefore, easily reusable.

That would make the process easier to re-implement today. Beverage companies tend to avoid reusable glass bottles because the difference in design requires extra efforts in sorting. What’s more, collecting and transporting reusable glass bottles requires more storage facilities and labor. For most beverage companies, that would mean involving the retailers into the collection and shipment, which overly complicates the process, especially when compared to single-use plastic.

However, it would still be possible to reintroduce reusable glass bottles as the industry standard. It might take some time, but the results are worth it: 93% less energy consumed by a refillable bottle that can be reused 25 times, as opposed to one-way glass bottles. Of course, when compared to plastic it becomes even more evident how much better reusable glass bottles are: the use of energy in MJ and the CO2 equivalent of its Global Warming Potential is the lowest of all container materials.

Reusable Glass Bottles and the Glass Bottle Market

Reusable glass bottles will be the clear favorite if we wish to implement more sustainable practices. However, it would require preparation, as we would have to standardize our glass containers to make the process easier.

Today, companies that make refillable glass containers have packages of different sizes and shapes, even colors. This might be a contributing factor in the low return rates of refillable glass bottles (that also contributed to the eventual decrease in their use).

But what if bottles were standardized, and returned locally for sanitization and refilling? Then we could implement the reuse of glass bottles on a bigger scale, and ensure that one bottle does get returned 25 to 30 times to maximize sustainability.

The glass bottles and containers market is also growing, and showing potential for more progress thanks to European consumers. It’s predicted to reach $76 million in value by 2024. Most of it was glass for recycling and not refilling — European average recycling rate is an estimated 54%, as opposed to the reuse rate of 7%.

Aluminum Cans are Another Possible Solution   

https://visual.ly/community/infographic/environment/interesting-facts-about-aluminum

According to Chasinggreen.com, aluminum is 100% recyclable and can be recycled almost indefinitely without loss of quality or durability. They can be recycled, repurposed, and back in the store in as little as two months and the average recycling rate of aluminum cans 68%, the highest rate of recycling of any resource. The use of recycled aluminum in manufacturing utilizes 95% less energy than creating aluminum from raw materials.

However, there is also a negative side of aluminum cans. The aluminum industry was responsible for 140 million tons of CO2 production in 2005 alone and it is a non-renewable resource. It also takes 2-4 tons of bauxite to produce just one ton of aluminum through smelting and refining. Aluminum production spends over $2.3 billion annually for energy. Most of that energy is used to create aluminum: over 1 quadrillion Btu of electricity a year and some research suggests that BPA, a chemical lining found in some aluminum cans, may pose health risks.

What Consumers Think

One of the most critical pieces of the puzzle will be the consumer, requiring a change in behavior to move from pollution to sustainability. The good news is that consumers are becoming more environmentally aware and putting more stock into sustainable products and solutions.

According to a report by Pro Carton, 75% of European consumers have stated that the environmental impact of the packaging of a product affects their purchasing decisions. What’s more, they are also influenced by the media coverage of pollution, especially when it comes to marine pollution.

The majority of consumers tend to prefer more environmentally-friendly options while shopping, especially if it doesn’t cost them much extra to help preserve the planet. However, that doesn’t mean they aren’t prepared to pay more: 77% of Pro Carton survey responders said they were prepared to do so. In addition to that, 58% of them would support increased taxes on non-sustainable packaging in order to incentivize brands to think harder about their environmental impact.

All of these statistics are very encouraging and clearly show that we’re ready to start making crucial changes. Even the major players thinking only about profit can benefit from meeting consumer demand for sustainability.

It’s Time for Glass Again

Can the beverage industry’s use of pollution-inducing plastic packaging end? It certainly can. While there are some disagreements on which materials should replace plastic, the message is still loud and clear — beverage companies and entrepreneurs have to change their ways.

Glass packaging, especially reusable glass bottles, could be the answer to the environmental crisis we now face. With a low carbon footprint and multiple other benefits regarding the quality of packaging, glass would be a great choice. And if we made an effort to make reusing glass bottles more accessible and more standardized, market research shows that consumers would rise to the occasion and help make it the new industry standard.

Reducing plastic pollution should be one of the main priorities of the beverage industry. To accomplish this task, now might be the time to start using glass again.

Key Takeaways

It’s our responsibility as beverage industry leaders, entrepreneurs, and consumers to demand and facilitate change. Today, every link of the beverage industry chain might be ready to commit to making this change a reality.

Getting rid of the beverage industry’s share of plastic pollution by implementing more sustainable options, glass bottles or even re-usable glass bottles, might be of utmost importance for the future of this blue planet. If we don’t turn away from plastic now and start repairing the damage we’ve made, it might be too late in a few decades or even a few years.

It is time to admit the conversion to plastic from glass has failed and these companies continue to fail mankind in favor of profits. Human beings are almost equally complicity by purchasing these products. It is time for the Big Four to eliminate plastic products and force competitors to convert as well.  It is time to end plastic for profit over convenience.

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Why Large Food and Beverage Companies Fail at New Product Development

Example of New Product Failure: Colgate Lasagna
Example of New Product Failure: Colgate Lasagna

In the food and beverage industry, even the giants can have a hard time developing and launching new products. However, their troubles are usually entirely different from that of a food and beverage entrepreneur. These huge companies have all the advantages of troves of data, experienced marketing departments, and plenty of resources to make the new product succeed. But they still fail.

In fact, according to multiple sources, approximately 80% of new products developed by large food and beverage companies end up failing. This is a staggering statistic that perfectly showcases the scope of the problem. But why does this happen so often, and is there a solution that can turn this trend around? Let’s have a closer look at why large food and beverage companies fail at product development:

Big Companies and Innovation Struggles

As technology began to advance, most innovation in the food and beverage sector was tied to finding ways to prolong a product’s shelf life or get it to consumers faster. But today the market’s needs and appetites have grown way beyond this, especially as the consumers’ attitude towards food and nutrients changes. 

Consumers are becoming more aware that what they eat and drink has a significant impact on their health, so they are seeking out the best possible options. That’s why large companies that don’t have a lineup of healthy, good-for-you products are finding themselves in a problem when developing new products. And unfortunately, the vast majority of big food and beverage companies falls into this group, as the trailblazers of new healthier trends are usually smaller businesses and food entrepreneurs.

To Reformulate or to Relaunch?

According to IRI, of 10,000 new products that are launched every year, as much as 90% fails to achieve sales goals. In fact, many of them aren’t even around two or three years down the road, which makes launching entirely new products a risky undertaking for most companies. In most cases, they decide to reformulate or relaunch their existing products to make them more appealing to the changing public opinion on how our food and beverages should be.

If we take a look at Consumer Good Forum statistics, we can see that 66% of their members have reported having reformulated some of their products in 2016. Some of the most common changes implemented in product reformulation are reducing the amount of sugar and sodium, adding vitamins, or using healthier alternatives to certain staples (such as switching to whole grains).

Declining Sales and New Product Launch Fails

The main reason for relaunching existing products is declining sales. Between 2012 and 2015, the U.S. retail sales of the top 25 food and beverage giants have gone down from 66% to 63%, according to the study Is Big Food In Trouble by The Hartman Group and A.T. Kearney.

However, the need for change hasn’t prevented new product development and launch fails. A few reasons stand out. There were cases of companies making the wrong conclusions on what the market needed, developing products that didn’t fit with their brand image, and choosing the wrong trends to chase.

Wrong Conclusions on Market Wants and Needs

Despite having a wealth of data at their disposal regarding products, taste tests, and market research, sometimes companies just fail to ask themselves whether someone will be willing to buy the product and at what price.

For example, let’s have a look at Coca-Cola’s C2, their attempt from 2004 to gain the favor of a target market that’s been avoiding their products. C2 was meant to be a middle ground between classic Coke and Diet Coke. The idea was to capture the interest of 20- to 40-year-old men, who were mindful of their calorie intake while avoiding Diet Coke because of its general appeal to women.

However, C2 only had half the calories and carbs of a classic Coke — it wasn’t a complete no-calorie version like Diet Coke. As such, its qualities weren’t distinctive enough to allow it to stand out in the market, even if it did (in theory) need a similar option. The target consumers simply didn’t find it appealing enough.

Just because a Company spends a lot of money on or does a lot of consumer research doesn’t mean they are correct. If that were true, Coke and Pepsi, and other conglomerates like them, would never fail. But that is not the case.

Research needs to be combined with gut instinct to be successful. If you look at the most successful, “new”, innovative and disruptive brands, none of them used expensive and extensive consumer research in the beginning:

Amazon
Bai
Boom Chicka Pop
Deep River Snacks
Dirty Lemon
Dirty Potato Chips
Fiji
GT Kombucha
Kettle Chips
Keurig
Liquid Death
Mama Chia
Monster
Naked Juice
Netflix
Perky Jerky
Pirate’s Booty
Red Bull
Smart Water
Sophie’s Kitchen
Starbucks
Vita Coco
Vitamin Water
Voss
Whole Foods
Zico

The Product Doesn’t Fit with the Brand

Big companies also face difficulties trying to expand their lines or launch new ones with products that stand out from what they were known to do. When many companies first reformulate their existing lines and launch new products that are more in line with the new brand image, there are sometimes cases where the consumers aren’t prepared for the change.

More often than not, these fails come from a brand branching out into the food and beverage industry — such as Colgate’s frozen lasagna or Cosmopolitan’s yogurt. However, that isn’t to say that food and beverage giants are immune to developing products that just don’t fit with the brand image, whether that’s in a big or a small way.

Trying to Capitalize on a Trend

Finally, one of the biggest and most frequent causes of new product development fails is chasing the wrong trends or fads. When a company is too early or too late to the current consumer preferences party, it inevitably brings low interest and even lower sales. Trends like low-carb diets have proven fleeting, which is something Coca-Cola has felt with their C2 release as well. 

However, some notable innovations are still prevalent in the food and beverage industry. Alternatives to dairy, Greek yogurt, free-from foods, plant-based protein suitable for a vegan diet, etc. have mostly been brought on by smaller companies or entrepreneurs. It’s therefore essential for food and beverage giants to correctly interpret their market data, and accurately predict the coming market trends that are here to stay.

Key TakeawaysBig food and beverage companies and smaller businesses alike need to watch for industry insights and anticipate market trends. Staying true to your brand is more important than ever, as that prevents consumer confusion or disappointment. However, it’s even more crucial to adapt to the changes in the industry and the growing market demand for healthier food and drink options.

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5 Advantages of Being a Food Entrepreneur

The life of an entrepreneur has plenty of advantages over having a regular office corporate job. Whatever the industry you’ve dedicated yourself to, being your boss can undoubtedly benefit your life. When it comes to the Food industry, it’s attractive because there are so many possible paths to take on the way to building a successful business.

With food, you can start anywhere. Provide catering services, open a small dining establishment or get a food truck going — those are only some of the examples of how food entrepreneurs start their journey. Those who love the business and are passionate about food can get you a long way. Here are five advantages of being a food entrepreneur:

 

  1. You Can Follow Your Passion

The number one reason why so many food entrepreneurs choose this line of work is that they are passionate about it. And while that may be true for any entrepreneurship, there’s something about food that makes it unique. Food is something us humans cannot live without. According to Maslow’s hierarchy of basic needs, food is on the primary level of physical survival needs, along with a drink, shelter, sleep, and oxygen.

But the satisfying, yummy food — that’s a source of pleasure, ensures there will always be people who are passionate about food preparation and consumption. Following your passion for great food is different from following dreams to become a great artist — not everyone enjoys art, but everyone enjoys and needs food. The best part about it is that you don’t need a formal degree in cooking to make a splash in the food entrepreneurship world, only passion, and talent.

 

  1. You Can Unleash Your Creativity

A beautiful dish is a work of art. It feeds your body, but also your sense of aesthetic and your soul. Food entrepreneurs often need a place to channel their creativity, and for many of them, that outlet becomes food. It’s not all about decorating a meal, although that’s extremely important in some of the food business areas such as restaurant cooking. A recipe could be artistic too, combining flavors in a way that makes the taste buds tingle and demand more. It could even resemble the most unappetizing thing in the world, but yet, still be delicious.

 

  1. You Can Listen to Your Customers

In the hospitality industry, catering to your customers is what will keep your business afloat. When it comes to food, entrepreneurs have a unique opportunity to listen to their customers’ wants and needs and incorporate those wishes into their menus. Of course, it would have to blend with the entrepreneur’s tastes and preferences.

Making use of big data analytics in the business can benefit food entrepreneurs, helping them to discern what the customers want and cater to them. For example, one of the trends that have been prevalent for a while has been all about eating healthy. That includes options such as vegan food, non-gluten food, and cutting back on processed sugar. A smart food entrepreneur will pay close attention to the trends in the food industry by analyzing market demands, and structure their business model to reflect it.

 

  1. You Can Provide Convenience to the Customers

The majority of people nowadays have a chaotic lifestyle. Their focus is divided between work and home life and often riddled by many electronic distractions. Those that are so dedicated to their work life, find it hard to cook their meals, but they still want to eat healthily. That’s an excellent opportunity for food entrepreneurs, who can take advantage of it in various ways. There’s an option of becoming a chef for hire and preparing delicious meals for those that don’t have the time to cook.

Alternatively, you can provide them with convenient pre-prepped meals that don’t take long to put together on the go. The final option which is the more classic one is to open a restaurant. But the customers will have to come to you. Whichever option you choose to provide convenience to your customers, you can make a good business of it as a food entrepreneur.

 

  1. You Can Give Back to the Community

In the food industry, entrepreneurs have many ways of giving back to the community, which usually also brings them some good PR. In recent times, people have become more concerned about the well-being of the planet and everyone inhabiting it, including both people and animals. Millennials especially love it when businesses they support contribute to a cause that aims to make a difference. Food entrepreneurs that wish to tap into this benefit can donate their surplus food to those that need it most.

Other ways of giving back to the community could include providing culinary education. Preparing food at home saves money, and the youth of America is catching on to that. Those who want to learn how to cook can do so through individual courses offered by food entrepreneurs.

 

Key Takeaways

Being a food entrepreneur has many advantages, and it provides you with a lot of options as to where your career is going to go. To summarize, you can:

  • Benefit from following your passion;
  • Satisfy your creative needs;
  • Listen to what your customers need and provide it to them;
  • Provide customers with the convenience they want in their daily lives;
  • Give back to the community by donating food and sharing your knowledge.

It’s a rewarding career where you start small with baby steps, but it can evolve into much more than that. Smart food entrepreneurs take their time, listen to their customers and follow the market trends, adjusting them to their sensibilities. When you’re an entrepreneur, the world is your oyster, and that’s especially true for entrepreneurs in the food industry.

 

To become successful in the food arena, you will need to follow fresh industry insights and come up with ways to capitalize on that knowledge. The industry is continuously growing, which make it an excellent time

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How Technology Changed Sales: Getting the Prospects to Say Yes

New technologies are changing the game of selling to prospects, even though the basics remain the same. What’s been most influenced by technology is the speed of the entire process and the availability of prospect information. However, a salesperson still needs to be smart, insightful, and most of all persistent, if they want to close deals and make sales.

 

Getting the prospects to say yes can be a tricky business in any industry, including the Food and Beverage industry. How do we use new technology to get buyers to say yes, and do persistence and following up play a role in the process? The short answer, at least to the latter question, is “yes.” Let’s have a closer look at the mechanics of the sales process and how persistence can pay off.

 

Preliminary Research of the Prospect

When it comes to technology changing sales, it’s perhaps easiest to see on the example of preliminary research and first contact with the prospect. Where before salespeople only got prospect reports a few times per month and had to dance around the gatekeepers to get in touch with the prospect, now everything is readily available. Whether they’re in B2B or B2C sales, it has never been easier to find the necessary information about the opportunities and contact them.

 

However, nowadays the gatekeeper is a little different — it’s not a person, but our way of life. Noise, inbox clutter, and an infinite number of salespeople vying for the attention of the same prospects are what creates the wall guarding the decision makers. To break through all that, a salesperson has to be persistent.

 

Persistence or Harassment?

We’ve all been on the receiving end of a salesperson’s constant attempts to get our business. The problem of sales in any industry and any nature of sales is the one of persistence — when is the time to call it quits? Are their efforts being seen as harassment? When can they officially give up on a potential prospect, even though they could help the business?

 

Nowadays, when everyone is busy and facing a barrage of content and propositions in the online arena propelled their way, it has become more necessary to keep following up. Especially when written communication is the primary medium of sales, there’s a big chance that the potential buyer liked the offer, but didn’t have the time to respond right away.

 

The Role of Following Up

Nobody wants to bother their prospects, which is why following up with them on occasion is what most salespeople do. Instead of continually badgering them through all channels, sales efforts are focused more on being helpful and there for the potential buyer at every step of the way. More often than not, that includes leading them through their buyer’s journey and reminding them of where they’re at through followup.

 

An essential part of effectively following up is choosing the right channels to do that through. A lot of people prefer email, but using it has a downside — emails are easy to ignore. On the other hand, sending a follow-up email gives the prospect time to consider the offer.

 

Despite the prevalence of new technologies and mediums of communication, sometimes the phone call is the best solution. Alternatively, a combination of phone and email can help salespeople establish themselves as trusted contacts for the prospect sooner.

 

Getting the Buyer to Say Yes

The art of following up and getting the buyer to say yes is not only about persistence. It’s also about making it easy for them to say yes. Whether that’s by giving them a great offer (often heavily discounted) or taking out all the consideration and evaluation out of the process, a salesperson can affect the prospect’s buyer’s journey in ways most buyers aren’t even aware.

 

Another aspect of getting the buyer to say yes is making the entire process about them, rather than what the salesperson is trying to sell. It won’t do them any good to start things off with a sales pitch over the phone or in the email inbox. Sales nowadays are more about what the product can do for the buyer than selling the product itself because “it’s great.” Salespeople understand that the product is only significant for a certain kind of people — and that is where they focus their efforts.

 

Target Audience Research and Importance

For a salesperson, there’s nothing more business-damaging than not knowing the people that the product they’re selling is supposed to cater to. It is a general principle, both for B2B and B2C sales. When you know the target audience, you know what their pain points are. You know which problems to address — those solved by what you’re selling — and what struggles to emphasize to get the right people interested.

 

If you wanted to sell an expensive car with 20% off, there would be two approaches to the sale. You might approach a person randomly on the street and make them an offer, perhaps only to find out that they get around by bicycle because they can’t afford anything else with their salary. Or, you could offer it to a friend of yours, who you know is well-off and also looking to buy a car since his old one broke down. In the first case, you’re never going to make the sale; in the second case, you might.

 

Knowing the target audience inside and out makes that kind of a difference in sales. Technology has affected the efficiency of sales by making it possible for a salesperson to get to know their target prospects much more quickly and with more accuracy. Once salespeople understand what their prospects want, it’s easy to give it to them.

 

Key Takeaways for the Food and Beverage Industry

Getting a prospect to say yes requires a deal of persistence, but you also need to know what they want that you can provide. For example, if you’re catering to Millennials, you’ll need healthy and sustainable dishes on your menu, and beautiful, unique drinks in your offer. And when it comes to dealing with business prospects, remember to be persistent and follow up at least a few times before you give up on them, unless you get a definite “no” early on.

 

Fresh industry insights can elevate your Food and Beverage business to new levels, but knowing the basics is what will set you on the right path. So follow the trends of the industry, but stay aware of what you need to do to be successful sales-wise.

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Retail & Grocery: Amazon.com, Inc.

In only 24 years, Amazon.com Inc. has evolved from a little online bookstore to the most extensive digital retailer in the world. Generating $177.9 billion in net sales from its over 300 million users in 2017, it is a giant in many markets, including retail and groceries.

As the company remains true to its four guiding principles – customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking – its sell-through position strengthened with inroads in new categories. Among other things, it has led Amazon to acquire Whole Foods Market as its subsidiary.

In 2018, the growth trend continues. Despite demanding more dollars for marketing from vendors, Amazon has met planned sales expectations for the second quarter for many categories (14 out of 25), exceeding plans in 9 categories in the changing natural food industry.

Orders from Whole Foods mainly surpassed its planned expectations due to deep discounts for Amazon Prime members, while higher marketing fees discouraged vendors from investing in promotion for their products. As a result, more vendors have opened Seller Central accounts, which allowed them to manage costs better and simplify product launch, and increased direct shipment from Prime Now.

Those are only two critical areas to watch. But if you want to learn more about other changes in 2018, there are other trends to look out for in retail and grocery as the year draws to an end at Amazon.

A Growing Amazon Prime Membership

In May 2018, the cost of Amazon Prime membership rose to $119. And while some vendors viewed it negatively, most don’t expect any significant impact on service use. It comes down to the advanced features included in the membership to its users, including Amazon’s marketing tools and expanded offering on Amazon.com platform. A natural food vendor even said:

“Amazon keeps offering more and more benefits [for Prime members], so I don’t think [the higher annual fee] will have any impact. Prime members value that service so much.”

And payment fees and commissions to Amazon were also raised in most vendor contracts. Because of the 10% increase in rates, all vendor contracts from 2017 are invalid, and sellers need to sign a new 2018 contract.

But it’s important to remember the terms in the new contract are negotiable. And while vendors do encounter additional fees, like fulfillment fees, inventory fees for storage, out-of-stock penalties, and accrual fees, it’s important to accept Amazon’s demands and negotiate a 2018 contract.

Amazon Competition Is Low

Amazon’s main competitors are Walmart.com and The Kroger Co., closely followed by Walmart’s Jet.com, Walmart brick-and-mortar stores, Target Corp. and Thrive Market Inc. However, most vendors agree that no e-commerce platform or store chain can compete with the retail giant when it comes to grocery retail.

However, Kroger and Target are making breakthroughs in grocery assortments and improving the shopping experience for their consumers. It seems to be generating interest among some vendors, as Kroger, for example, is placing standard category managers in charge of specific category managers and buyers. But it is yet to generate the amount of attention required to disrupt Amazon’s large-scale operation.

Amazon Prime Is Helping Whole Foods

Amazon’s Prime benefits (10% discount on all items and steep “Prime Member Deals”) helped increase sales during the second quarter in 2018 at Whole Foods Markets. The Amazon subsidiary saw an initial redemption rate between 60%-70% in June, but the figure is likely to reach 80% by year-end.

Prime Deals and promotion also aided vendors in their efforts. Many natural and organic vendors stated their Whole Food orders exceeded expectations, with almost all of them meeting their planned goals.

Despite this, vendors will bear the cost of those mandatory 10% discounts, which may result in several sellers reducing budgets allocated for promotion. However, for most of them, the price will be worth the effort if Amazon can deliver the right sales volume with Prime discounts. And according to the amount of sales Amazon made – it can.

Grocery Sales on Amazon.com and Fresh

In 2018, Amazon has made a lot of efforts to increase its foothold into groceries. It has led natural and organic food vendors to a very successful quarter with their sale of non-perishables on Amazon.com, than of perishable items sold on AmazonFresh. Also, over 65% of vendors exceeded planned order figures, which led some of them to improve their use of Amazon Marketing Services (AMS).

More and more vendors are turning to e-commerce SEO and search terms with AMS for marketing, than, for example, offering customer incentive programs such as coupons. On the other hand, vendor spending on ads has also increased but not significantly. Still, the combined efforts of both marketing tactics resulted in a higher revenue stream than in previous years.

In contrast, vendors who used AmazonFresh did not meet expectations. Their sales quotas fell below plan. They attribute this to significant reorganizations within the company, as AmazonFresh and Prime Now are hiring more staff in Seattle and distribution networks get realigned to handle perishable goods.

New Expansion Plans

Another critical factor influencing all of these changes is Amazon’s plan for rapid expansion. In short order, AmazonFresh is planned to move from the current eight-hour delivery format to a new two-hour delivery, which will make it stand out even more from the competition.

A new app is also set to be launched shortly, as Amazon wants to consolidate all of its grocery platforms in one place. But, until now, there is yet to be an integration of all purchases into one system, as Amazon.com, AmazonFresh, Prime Now, and Amazon Go remain separate from Whole Foods.

Finally, Amazon is moving towards direct shipments to reduce the reliance on United Natural Foods Inc. The plan is to allow room for rapid expansion of Prime Now with a hub-and-spoke system that will revamp warehouses and transportation logistics for perishables.

Follow Trends and News

Keep up to date with the latest innovations, trends, news, and so much more in the retail and food and beverage. Stay on top of best practices when it comes to marketing and sales, and gain insight from inside the industry.

With new developments each week, a piece of news, a new strategy or business model might catch your eye and lead you to apply it to your business to –

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Creating North America’s Premier Food Wholesaler

 

In June 2018, United Natural Foods (UNFI) and Supervalu decided to uproot North America’s wholesale distribution by combining their efforts to create a premier wholesale distributor. UNFI is the largest distributor of natural organic products in the United States and Canada, while Supervalu is the largest publicly traded wholesaler in the U.S.

Their joint enterprise indicates a rapidly changing infrastructure landscape in which consolidation among stakeholders in the supply chain is fast-becoming the new norm. And this has become a prime example of how manufacturers, suppliers, distributors, and retailers are pushing for change in Canada and the United States.

Based on this recent industry development, here are the most significant benefits of creating a premier food wholesaler in North America.

Adding Value to Customers and Stakeholders

Transforming into North America’s top wholesale food distributor is beneficial for all parties involved in the supply chain, including consumers and shareholders.

First off, it allows distributors to create a diversified consumer base. As they merge to form a common front, it automatically expands the consumer base to open up new opportunities to different stakeholders and increase distribution across all fronts. Delivering an extensive and comprehensive product offer to UNFI’s existing natural and organic products has allowed Supervalu to create a genuinely “better for you” offer.

As high-value products like organic meat and products become available to a broader audience, it enables cross-selling opportunities for different stakeholders on a much larger scale. A much more significant market across the United States and Canada gives wholesalers a much broader geographical location to work with and increase their market reach. The much more extensive scale has not only enabled growth but has improved their efficiency and effectiveness across the board.

The increase in capacity relies heavily on leveraging scalable systems. Focusing attention on streamlining larger operations has enabled different stakeholders to optimize their processes. Combined with the increased use of technology to achieve this goal has equipped all involved parties to meet customer expectations and reduce future expenses at the same time.

And in the case of UNFI and Supervalu, it also delivers significant synergy, which by the third year can create a run rate cost opportunity of more than $175 million.

Advanced Build-Out-The-Store Growth Strategy

With UNFI and Supervalu heading the enterprise, many smaller brands have joined the food super-wholesaler. Both giants contributed in equal measure in securing brands which create the supply chain. UNFI brought Blue Marble Brands, Woodstock Farms, Tumaro’s, Rising Moon, and Field Day to the fold, while Supervalu contributed with Essential Everyday, Culinary Circle, Market Centre, and Wild Harvest, among others.

Handing each brand a seat at the table has enabled them to have a united market presence, and create an advanced build-out-the-store growth model. The strategy is relatively simple and relies on increasing the product range to bring in attractive products to the store, and build a comprehensive and diversified product portfolio.

With each brand specializing in a specific food group, everyone is specializing in premier products. It expands the offer to the consumer, who is treated to a variety of quality, natural, organic, free-range, and specialty food items.

Complementary Contribution

Combining the two wholesalers into one has also merged their capabilities. It works because both UNFI and Supervalu share certain features. However, their most significant advantage is in the different and unique abilities, which essentially compliment one another.

UNFI’s revenue contribution is divided among Independent Natural Retailers (26%), Supermarkets (30%), Supernatural Retailers (33%), and other revenue (11%) such as e-commerce retailers and foodservice customers.

Supervalu’s revenue contribution is divided among Independent Regional Supermarkets (61%), Unified Groceries (29%), SVU FL (5%; regional chains, multi-stores, and single stores), and other (5%) which includes military and corporate revenue.

The combined revenue of UNFI and Supervalu is therefore divided among Independent Regional Supermarkets (48%), Unified Groceries (17%), Supernatural Retailers (14%), Independent Natural Retailers (11%), other revenue (8%), and revenue from SVU FL (3%).

It diversifies the consumer base for both wholesale retailers, as well as their revenue streams. In doing so, both UNFI and Supervalu can adapt to the fast growth of retailers and supply their demand for products.

A Compelling Opportunity

The opportunity for the premier food wholesaler will be to unlock the potential value across the business using synergy. Synergetic cooperation between the two organizations will improve the business process and inside operations, but also create a unified presence when dealing with outside services.

A combined effort has a more significant effect than individually either UNFI or Supervalu would have ever been able to achieve, and will benefit multiple aspects of the premier food wholesaler:

  • Revenue – a diversified revenue stream from cross-selling, offering high-growth products in stores and expanding the private label offering (net sales expected to reach over $21 billion);
  • Capital expenditure – increasing optimization of the supply chain and more effective capacities in distribution centers minimizes costs and expenditure (strong cash flow can reduce leverage and improve the credit profile);
  • Systems and technology – combining IT systems and cyberinfrastructure of both companies will enhance automation and use of technology to streamline the business process;
  • Operations – joint operations, increased capacity and a united strategy all increase efficiency inside the business model and stood to benefit everyone across the supply chain;
  • SG&A (selling, general & administrative expenses) – increased capacity minimizes expenses especially by optimizing lease contracts and reducing fleet-related costs;
  • Expanding Gross Margin – aligning strategies and methods of inbound logistics and adopting a professional service unit to monitor the process will help with larger capacity.

Ready to Learn More About the Food and Beverage Industry?

Stay up to date with the latest news and innovations in the food and beverage industry, and use what you learn to grow your business. It’s the best thing you can do for your brand, and all you have to do is realize the opportunity right in front of you to use its potential. Contact me or connect on twitter if you want to share with me your industry experience.

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The Current State of the Specialty Food Industry in 2018

 

Specialty foods are unique and highly valuable food items. Typically, this type of food is produced from small amounts of high-quality ingredients, which is the reason behind their above-average price tag, but also their overall quality and health benefits.

In 2018, The Specialty Food Association released a two-year study titled The State of the Specialty Food Industry. Author and researcher, Denise Purcell discovered significant changes in the food industry, with a focus on specialty foods. The study highlights the impact specialty foods have on sales and consumer decisions. Here is a brief overview of her findings and the current state of the specialty food industry.

Reasons Behind the Rise of Specialty Foods

Specialty foods might seem like a trend, but its roots span much deeper. Thanks to FDA regulations on labels and nutrition guidelines, more people are aware of the health risks involved with food and beverages. Ingredient labels help people to understand what they eat and drink, and watch out for ingredients like sugar, artificial flavoring, or chemical food dies, to improve health.

Consumer demand for higher quality food is another major contributor to the rise of specialty foods. It is affecting everyone in the supply chain. Food manufacturers are taking more care when sourcing raw food, while distributors and suppliers, like UNFI and Whole Foods, are changing the landscape of the natural food industry.

All of these changes are contributing to much higher demand and supply of specialized food, and choice remains the main reason behind The State of the Specialty Food Industry study.

The Rise of the Specialty Food Industry

As of this year, 65% of consumers purchase specialty food. Specialty food dominates sales revenue as well, with a peak income of $140.3 billion in both retail (78.4%) and foodservice (21.6%), an 11% increase from 2015.

Sales from specialty food and beverage have a share total of 15.8%, with plant-based foods dominating the first four spots. Due to the increased interest in organic produce, their input is expected to rise over the next five years.

When it comes to consumer retail purchase, mainstream channels hold an 82% share of total retail sales. However, the biggest winners are both the physical and online versions of the food service. Their sales have doubled in size over the two year period from 2015 and outgrew regular retail options.

On the other hand, retail makers are increasing their offer of specialty foods, which is raising their sales input, but it is growing at a much slower pace. Major chain supplies have only seen significant growth potential in the convenience, drug and vending channels.

When it comes to consumers and who is purchasing specialty foods, demographics reveal that the most significant number of consumers belong to the iGeneration (18-23).

Other Millenials are also significant consumers because generally, these groups have the highest awareness of what they consume. They also make the decision to buy specialty foods based on many different non-traditional factors, like benefits to health, environmental impact, and even trendiness.

Top Ten Selling Specialty Food Groups in Retail

In 2017, the top-selling retail products reached a combined total of almost $29 billion out of around $1.4 trillion of total food spending. It included fresh, refrigerated, frozen, plant-based, and health-focused food, which also had the most notable growth in retail sales.

What’s interesting, on the other hand, is the growth rate of specialty foods which peaked at a combined 12.9%. That’s 11.5% more when compared to all other food, which only achieved a 1.4% growth.

Seven groups in the top ten are chilled or frozen foods, which indicates the demand for other specialty foods will have to increase to create a genuinely diversified offer on the market. Here is a brief overview of the top ten specialty food groups and their performance on the market in 2017:

Cheese and Plant-Based Cheese – cheese achieved the highest sales total, reaching little over four billion in sales. But it’s growth was relatively insignificant with an average of just 6.6% from 2015, which indicates a stable demand for cheese.

Frozen or Refrigerated Meat, Poultry and Seafood –  frozen meat in all its forms reached $3.8 billion in sales over the period. What’s most interesting is that it had the lowest change over the two year period between 2015 and 2017, with an average growth of just 3.3%.

Chips, Pretzels, and Snacks – this group is characterized by a top three spot when it comes to sales in 2017 with $3.8 billion (little less than the previous group). However, it had a below-average growth rate for the observed period with 11.8%.

Non-RTD Coffee and Hot Cocoa – owing to the love of coffee in the United States, it is not surprising that this specialty food group earned $3.3 billion in retail sales. Still, the traditionally loyal consumer base also means it had a low growth rate of only 5.4% over a two-year period.

Bread and Baked Goods – bread is a staple food group and earned an expected $3 billion in retail. What’s surprising though is the above-average growth of 18.1% from 2015 to 2017, meaning demand and consumption has risen significantly.

Chocolate and Other Confectionery – chocolate and confectionaries brought in a combined sum of $2.3 billion in sales last year. And according to the data collected from the previous two years, they exhibited a slightly below average growth of 10.8%.

Yogurt and Kefir – healthier dairy-based products like yogurt and kefir massed a total sum of $2.2 billion in retail sales last year. However, the market growth was excellent in the previous two years, and the specialized food group saw an increase of 20.6%, which is the third best value among the top ten groups.

Frozen Deserts – the frozen deserts group has a strong eight position in retail sales, earning a total sum of 2.2 million. More importantly, frozen deserts achieved the highest growth rate out of all the groups in the top 10 with 41.6% between 2015-2017.

Refrigerated Entrees – ready-to-eat refrigerated entrees gained a combined amount of $2.1 billion from retail sales, which was enough to secure them ninth place. But the good news for suppliers and distributors is that this group of specialty foods takes second place when it comes to exponential market growth with 27.2% change from 2015.

Frozen Lunch or Dinner Entrees – frozen lunches and dinner entrees performed similarly to refrigerated dinner entrees taking $2.1 billion from sales, which is a 13.1% of growth during a two-year period. But if you combined the two similar last entrees, they would top the list with $4.2 billion in revenue and 40.3% change.

The Bottom Line

Observing the changes in the specialty food market Denise Purcell remarked on future growth: “We see the future growth of the [specialty] category being driven more by foodservice, convenience, and vending. We’ve seen a lot of growth in drug (CVS, Walgreens, etc.) as well. You’ve got all these different players now that want to carry some of these products.”

If you want to know more about the general state of the food and beverage industry, stay up to date with the latest news. Use the most recent information as an opportunity to improve your offer, and boost your bottom line.

Please visit our website at www.cascadiamanagingbrands.com

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Why User-Generated Content is What Consumers Crave

Beverage Marketing post by Bill Sipper

Beverage Marketing: Why User-Generated Content is What Consumers Crave

Fans create brands. And when it comes to brand marketing, there is nothing stronger than peer-to-peer promotion. Brand ambassadors and fans motivate other people to choose and use your products and services, like your beverages. In marketing, this is called user-generated content (UGC), and it’s what beverage companies need to offer their consumers because it’s how they want to be marketed and what they crave. Beverage Marketing is strong in peer-to-peer promotion.

UGC Increases Engagement

User-generated content relies on a successful content strategy.  In turn, follows the latest industry news and allows for such marketing efforts to be included. It also relies heavily on the technology behind promotional channels beverage business use.  There are a lot of different types of UGC content:

  • Blogs – relieves some of the pressure from the marketing team and gives consumers a highly personal perspective on the brand;
  • Comments – increase engagement on websites and social media and promote the brand through peer-to-peer communication about the brand;
  • Reviews – impact consumers psychologically by increasing trust and credibility, and have the potential to affect 46% of consumer decisions.
  • Images – establish visual contact between consumers and the brand through the direct use of the product and its promotion of personal and official online channels;
  • Videos – increase brand awareness and brand perception through different interpretations of the brand and the direct use of the product.

Content like this requires promotion, so consumers become aware of its existence. Targeting different channels, allows more users to take part in and generate content.

Additionally, beverage companies should consider including consumer incentives for consumers to create content. Campaigns can include prizes, like discounts, special offers, a free supply of drinks, or branded material like flash drives, T-shirts, and even concert tickets. Just remember to make them useful.

UGC Builds Valuable Relationships

Brand identity relies a lot on the relationship a company has with its audience. Brands have to look towards aligning their value proposition with their brand message – core beliefs, mission statements, and goals. This type of communication is customer-centric and focuses on establishing a shared system of value on which a brand can build a relationship with its audience.

User-generated content can make this happen for beverage companies. It essentially allows consumers to take part in the development of the brand. For example, if your company wants to develop a new drink, it issues a campaign that gives an opportunity for customers to come up with a name for it. It empowers consumers, and they are more likely to consume the drink regularly (interact with the brand.)

UGC Inspires Loyalty and Creates Fans

According to marketing professional Kevin Kelly, a brand only needs 1000 true fans to succeed. In that sense, beverage companies need to focus their attention on returning customers and allow them to create user-generated content as a reward. In turn, this creates a loyal following of faithful fans, who know the company values their efforts.

It also creates trust – an essential element of loyalty. And with mutual trust coming from both sides, fans will become brand ambassadors of your company promoting the company to other consumers (what you want,) while you continue rewarding their loyalty (what they want.)

Conclusion on Beverage Marketing

A brand is only active if it has a strong following. And for a beverage company, beverage marketing is following the latest trends in the industry and creating user-generated content campaigns can be a great way to create a loyal backing. After all, it gives consumers the type of promotion they want and crave – created by them and created for them.

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How the Trump Tariffs Are Set to Drive Food and Beverage Prices Higher

Trump Tariffs post by Bill Sipper

Imposed Tariffs Under Trump

Like any tariff, the Trump Tariffs are a collective series of government-issued duties on imported goods. In 2018, President Donald Trump imposed the first tariffs in January.  In turn, affected the import of solar panels and washing machines into the US. Later, in June another series increased the tariffs of imported steel (25%) and aluminum (10%). According to Morgan Stanley, this covers 4.1% of all US imports.

These government measures sparked were intended at China.  However, also managed to anger US trading partners, most notably Canada, the European Union, Mexico, and India. In July, all of the countries most affected by Trump Tariffs hit back and issued their tariffs on US imports. And a trade war began.

What Can We Expect?

According to former deputy assistant Matt Gold, of the US Trade Representative under Obama, these measures will drive higher prices of all consumer goods. The tariffs imposed on the US affect raw materials, the first prices that will rise will be in the manufacturing sector.  Where many rely either on steel parts for their machines or aluminum for packaging. Beverages in aluminum cans will need to increase in price only because of the cost of raw material. Coca-Cola has already stated that it will have to raise prices because of the cost of production.

The most significant effect to small and medium-sized is the trade tariffs imposed by Canada. In 2017, total trade with Canada was 673.9 billion dollars and included everything from goods to services. Most major chain stores and suppliers import products from Canada.  Which can have an effect on smaller and medium businesses across the board. Importers will need to charge more, to account both for their import fees and the export fees of their suppliers.

The tariffs against the US also mean there will be changes in agriculture due to import-export fees farmers have to pay for their farming equipment and resources. USDA proposed a 12 billion dollar aid to US farmers who are impacted by the tariffs. However, this will not stop the rise in prices of food since vital raw foods have been impacted including corn, wheat, dairy and pork products.

What Prices Will Go Up Under Trump Tariffs? 

Currently, there is still food, and beverage surplus all across the US.  Prices will remain the same until the goods imported after the tariffs have been issued hit the stores.

You might expect to see the first prices go up when it comes to raw foods.  Examples like meat, bread, vegetables, fruit and dairy products, especially in small stores. Big stores like Walmart will hold on to their current prices longer, but not too long.

It will also impact the food and beverage service industry since they rely on fresh produce to prepare meals. Eventually, businesses will need to find solutions, and they might be forced to resort to firings, and people will start losing jobs.

Stay informed about all the latest industry news and find out how this story develops the way it will affect your business.

 

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5 Ways Your Beverage Business Can Maximize Influencer Marketing

5 Influencer Ways Beverage Business post by William Sipper

Beverage Business Marketing

An influential voice has the power to get people to listen, change their opinion and impact their decision. Therefore, influential people can resonate with their audience to benefit brands in any industry, even the beverage business.

And as one of the latest trends in marketing, beverage companies can use influencer promotion to raise awareness, increase engagement and get more people to drink their product. Here are five ways to maximize the effects of influencer marketing on your beverage business.

  1. Find the Perfect Influencer

When it comes to connecting with a target audience, companies first need to determine a few things, like size, the sphere of influence, and personality before finding the right person for the job.

Micro-influencers have a following between 10,000 and 100,000 followers. It might seem like a small target, but their followers tend to be a tight-knit and loyal community which affect engagement. Micro-influencers are also easier to connect with and are cheaper or even free. And if they’re young, it also means the company is building for the future. In part, that’s why micro-influencers are considered the marketing force of the future.

Macro-influencers have almost celebrity status with several hundreds of thousands or even millions of followers. While their fans might not all be devout, these influencers still have an astounding reach, and their endorsement can have a tremendous impact on brand awareness. However, they are difficult to get a hold of or require substantial contract fees or incentives to promote a company.

It is also crucial that companies research potential influencers to see what kind of content they promote. For beverage companies, this means targeting influential people from the food and beverage industry or people who tend to use those products and publicly review them.

Food and drink bloggers and professional cooks might be the perfect angle to get products promoted through review. Service companies also follow these influencers, which is an excellent way of reaching potential retail partners. As for user-influencers, targeting local social media celebrities is helpful for B2C beverage companies looking to sell more products directly to the consumer.

Finally, once a company selects a shortlist of candidates, it is essential for them to initiate and establish contact with them. Influencer marketing is big business, and it is crucial to determine the price to see if it is a financially viable option.

  1. Target Multiple Channels

Customers respond best to visual advertising when choosing what beverages to buy. Research shows how television food ads have a substantial effect on individual choice, especially in situations when other tasks occupy them. Translated into the digital world, it means there is a definite potential for influencer marketing on visual social media channels, like Instagram for images, YouTube for videos, and Facebook for both.

What companies fail to realize is that these are not the only channels. To truly maximize the impact of influencer marketing, companies need to expand their search and target multiple channels during a campaign. It might open them up to new consumers, or help them find their ideal target audience.

As mentioned, food and drink blogs are a great way to receive the endorsement and promote beverages to potential retailers and service providers. Influencer sponsorship is another way to maximize promotion, whereby a company can sponsor specific segments on favorite online events. It works exceptionally well when targeting smaller audiences engaged with podcasts or webinars.

Trying out different mediums at different points in the campaign in combination with customer surveys can maximize influencer marketing as it shows where a company can have the most significant impact. Plus, companies can learn from major brands in their industry, like Coca-Cola, and use some of the ideas on own their campaign.

  1. Set Clear Goals and Track Them Through the Campaign

Before initiating an influencer campaign, a company needs to determine what it wants to achieve. It can be anything from increasing brand awareness to increasing engagement, or even conversion and sales. A company needs to complete a marketing audit to determine the current situation and decide what aspect of a business to improve.

These goals must be presented to the influencer, and a precise schedule and timeline must be determined. Also, a system of reporting must be included so the impact of the campaign can be monitored and improved if necessary. If targeting prospects through social media, companies should stay away from vanity metrics, and instead, focus on key performance indicators. Only like this can a business determine the success of the campaign and its financial viability.

  1. Building a Relationship with the Influencer

Efficient company culture always centers around people. It’s what makes businesses appear more human. Translate this into influencer marketing, and it’s the role of the company to establish a good connection with their influencers, so they accept company culture and become fans of the brand.

Building a relationship with the influencer makes their work more meaningful, and this resonates with their audience. Regularly rewarding the work, sending free drink supplies or surprising them at their events with branded gifts will create a special bond and make their work more successful.

  1. Create Content that Stands Out

One of the primary goals of influencer marketing is to direct potential leads and customers to the company social media and website, or even the page of its best selling product. As the visitors arrive at this location, they need to see the quality of content and recognize its value otherwise they will feel deceived, both by the influencer and the company.

For beverage companies, it could mean having branded content that is both educational and entertaining. Educational, since this type of material, is aimed at industry professionals looking to partner up. But there also needs to be compelling content in the spirit of the brand message or the different drinks, which can drive sales directly through engagement.

Creating regular high-quality content also helps the influencer select the best material to promote on his channels. At the same time, it also allows the company to remain independent and not rely entirely on the influencer and one marketing strategy.

Accept Innovation

Keeping up with the latest innovation trends in soft drinks also means accepting innovation when it comes to marketing. It means staying on top of the latest industry insights, to realize the potential and help the business grow. And creating a company that’s a leading influence in the industry.