Food Brands That Have Given Back in Big Ways

It’s a great feeling to help a person in need. Charity donors are often told that even a small donation goes a long way, and that’s undoubtedly true. Many small contributions can amount to a massive collective effort to benefit a cause. However, it’s even better when you’re capable of making a big difference in society, which is something many brands have begun striving towards.

Skeptics might call it a PR trend to improve brand reputation in the increasingly demanding spotlight of the public eye. Still, whatever the reason behind this practice may be, there’s no denying that many food brands are turning towards supporting organizations that strive to help those in need. Here’s our list of food brands that have given back in big ways:

Newman’s Own

I was fortunate to work with the folks at Newman’s Own early in my career. The late actor Paul Newman famously stated: “What could be better than to hold your hand out to people who are less fortunate than you are?” Today, Newman’s Own still holds that statement in high regard — and the company acts on it as well. Newman’s Own is a food brand founded by Paul Newman and A.E. Hotchner in 1982. It all started with a simple salad dressing that they prepared themselves and gave it away to friends. With time, the newly founded company began producing other food items, such as pasta sauces, popcorn, salsa, juices, frozen pizza and plenty more.

They give 100% of their after-tax product sales profits to Newman’s Own Foundation, which donates it to nonprofits worldwide. Since 1982, the company has given away over $500 million to charity, still following the vision of its philanthropist founder.

KIND

Another big player amongst the philanthropist food brands, KIND is a snack-food company that takes an actionable approach to improve the world. Every month, the KIND Foundation provides a $10,000 grant to humanitarian, socially impactful charities and organizations. Founded in 2004, its mission is to do the kind thing by driving change in society to create more empathetic and kinder communities.

Over the years, they’ve maintained many different programs all with the same goal of promoting kindness: KIND People, KIND Causes, KIND Schools Challenge and others. They awarded over $1 million through their KIND People program to deserving individuals who have shown their humanitarian side in a big way, and over $450,000 through their KIND Causes program that went to funding ideas that can change society in a good way.

LARABAR

LARABAR makes non-GMO nutrition bars with minimally processed ingredients, and they take this sustainable approach in everything they do. Their commitment to using Fair Trade ingredients and partnering with different organizations that all help make a difference in the community shows a real dedication to being an environmentally aware, sustainable company.

Even though they recently terminated their partnership with TerraCycle, they still work with Feeding America and Denver Urban Gardens to help those in need have access to real food and seeds they might need to grow their sustainable gardens. Their focus is on empowering the individuals to raise awareness of the issue of hunger in America, and giving back to the community is part of their mission.

Justin’s

This nut butter company has made it their mission to give back to the community and pay it forward to organizations and companies who helped it reach the success it now enjoys. Justin Gold, the founder of Justin’s, is a co-creator of the Whole Planet’s Microloan-a-Month program. It focuses on entrepreneurs in developing countries and provides them the microloans they need to start and maintain their business.

Justin’s is a food brand that’s committed to making an impact, whether that’s by supporting environment-focused initiatives, nurturing their company sustainability or educating individuals that can drive change.

The Soulfull Project

The founders of The Soulfull Project started their hot cereal breakfast brand with the idea to give back, after having witnessed the problems caused by poverty and hunger on their trip to Texas. Unlike many other food brands, they focus on donating a physical product rather than money. They believe that food shelters should have quality food available, and it’s their mission to make it happen with their giving model.

For every purchased cup of their hot cereal, The Soulfull Project donates one cup to food shelters in Philadelphia and Camden. They make this possible by spending the funds that would usually go into a marketing budget on the donation aspect of their brand. Of course, that means they mostly rely on word of mouth marketing rather than traditional marketing avenues, but the consumers recognize their philanthropist mission and respond to it positively.

Trader Joe’s

Trader Joe’s is another food brand on a mission to fight hunger with food instead of donations, and they’ve been at it for decades. Their initiative also combats the problem of food waste, which is a massive issue as up to one-third of all the food produced in the world goes to waste before it can be consumed.

Trader Joe’s company takes their not-for-sale food that’s still safe to eat and donates it to food shelters and pantries. In 2017 alone, they gave over $340 million worth of food products to various organizations that provide food to those in need. Their food donation program has grown into an impressive operation over the years, with donation coordinators in charge of the process in every store. Employees share the responsibility for safely storing the food donations until it’s time to get them to the local food banks and shelters.

Key Takeaways

As more and more companies are moving towards maintaining a sustainable, environmentally beneficial and socially responsible business model, it’s likely that we’ll see more positive change in our community. It ultimately benefits all, which is why it’s so encouraging to see food brands giving back in big ways and making sure that the issues affecting the industry are addressed and taken care of.

By fighting hunger and food waste and supporting the brands who are on the frontline of this fight, we’re all doing something good for our world. If you wish to make your food business better for the community, stay on the lookout for more fresh industry insights that can help show the way.

November 26, 2018November 26, 2018

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.

November 5, 2018

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 –

Seize the opportunity! Grow to scale! Realize the potential of your business! Become a leading influence on the market!

For more information about Cascadia Managing Brands, please go to www.cascadiamanagingbrands.com

November 5, 2018November 5, 2018

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.

For more information about Cascadia Managing Brands go to www.cascadiamanagingbrands.com

November 5, 2018November 5, 2018

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

August 15, 2018August 11, 2018

Why User-Generated Content is What Consumers Crave

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.

August 13, 2018August 11, 2018

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

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.

August 11, 2018

5 Ways Your Beverage Business Can Maximize Influencer Marketing

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.

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.

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.

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.

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.

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.

June 28, 2018June 28, 2018

Help Make A Difference In Medellin

City of Change

Medellin Colombia used to be known as the murder capital of the world. Also was considered the drug cartel capital as well. Nowadays, that has all changed. I was lucky enough, or at the time didn’t think I was lucky, to travel to this city years ago when all I heard about were those stories.

When I arrived in Medellin, all of those stories meant nothing to me. The city blew me away with the beauty and the people. It is a city full of color. From the buildings to the topography to the people.

The people of Medellin made that trip so special that even years later this city still holds a special place in my heart. It’s residents are some of the nicest people I have ever met.

The Ghettos

The government have worked diligently to change the entire place to a innovative safer environment for its residents. The so called ghettos of Medellin didn’t compare to the ghettos of the United States. Today, the crime rate is considered much lower than most major cities in the US.

The innovative ways that has been implemented in the city have brought a great deal of prosperity to their people. The city put in outdoor escalators and aerial tram systems to carry people around. In some places, it would take 10 hours to get to and from work that was located just a few miles away.

Medellin is named one of the world’s most innovative cities next to New York and Tel Aviv. Although this new title is a huge step in the right direction, there are still things that need to be helped.

Lending A Hand in Medellin

There are many areas that don’t look like innovation has or will ever come to that area. The housing still look like shanty towns as some might call it. The homes in these areas often do not have a decent roof. Their roofs are just sheet metal just laid across so barely any protection from the heat, rain and sun.

This is where I am asking for your help. One thing that will hugely improve the lives of these wonderful people is their living situations. The roofs will provide them with better living conditions. The children should not have to lay-down on water soaked beds at night. Nor should the temperatures inside their homes rise because of a metal roof.

Go Fund Me

I decided to start a Go Fund Me page to help build roofs for the people of this city. All of the funds generated by this page will go directly to the purchase of the necessary materials and for the installation of new roofs, hopefully throughout the city.

The roofs are not going to be fancy in any manner, just a good solid roof to protects its occupants from the outside elements.

The initial goal is to raise $100,000.00. This should be able to install about 75 to 100 roofs. This is a great starting goal. I am asking for you to donate whatever you can, from $5, $10 to $20 or whatever you wish to provide.

Help make this world a better place one roof at a time. Click on this link below for the page…

https://www.gofundme.com/help-colombia039s-poor

Medellin Columbia post by William Sipper photocredit unknown

June 20, 2018

Starting a Marketing Plan for your Beverage Business? Here Are 7 Questions that You Need to Cover

Marketing can be a difficult thing to plan for if you don’t have the necessary experience. Still, there are things that only you as the business owner can determine before a marketing plan can even be made.

The beverage industry, in particular, has a couple of specifics you’ll need to plan for. A marketing plan is not a “one size fits all” solution to all possible business problems, but it’s still an important factor of successful marketing. If you want to grow your business, marketing will be your most powerful tool.

However, many businesses tend to overlook this fact, regarding comprehensive marketing plans as something they’d like to have one day when they have more funds to invest in it. What they’re unaware of is that a marketing plan doesn’t have to be expensive, and it can help immensely with boosting your profits and directing your future efforts.

So, if you’re starting a marketing plan for your beverage business, or considering whether you should do it, here are seven questions that you need to cover:

1. Where Do You Start?

So many beverage businesses begin with an idea for a product, and that’s great — but to come up with a marketing plan, you need to start with the basics. In most cases, that’s in-depth background research of the market itself. Who is buying your products now, and why? Or, if you haven’t offered a product yet, in which market do you want to provide your product?

The critical thing at the beginning is to take the time to understand the market where you are going to operate. Get to know it inside and out. Use market reports and statistics to figure out where it would be best to position your business.

2. Who Are the Stakeholders that Influence the Market?

In the beverage industry, there’s more to consider than just your target consumers and competitors (although they are a factor, too). Your market research will naturally lead you here. First, create your target consumer profile and research your main competitors. Studying their strategies will help you realize which essential things you need to focus on for your marketing strategy.

Then, there are the distributors and potential partners. Getting to know the distributors is vital, as you’ll need to be aware of all the pros and cons of different options before you can choose which one you’ll be going with. It is assuming that you won’t be using your own distribution channels. Be on the lookout for potential partnerships as well. Joining efforts with a suitable partner can give you the necessary boost, especially when it comes to marketing.

3. What Product Are You Offering?

It is where the product comes into play. Make sure that you develop your idea in the direction that leaves your target consumers with tangible benefits. Use all the research you’ve gathered before this point to create the product that has the most potential. If there is anything that you’ve determined you can do better than your competitors, include that in a product creation process. Keep in mind that the product should also be attractive for the distributors, so come up with ways to communicate its best attributes. These will be the building blocks of your beverage brand.

4. What’s In It for the Consumers and Distributors?

Not only should your product be attractive, but it needs to solve a pain point in the target consumer. It is crucial because that’s where your competitive advantage will come from. Write down everything that makes your product different from all the others in the market, and see how it holds up to this standard. Don’t settle for a product that your consumers will consider a nice-to-have instead of essential. If you’re having trouble coming up with a product that could do that, focus on the pain points of your target customers and ways they can be solved.

The same goes for negotiating with distributors. If you know what the value of your product is, you’ll see what you can offer to the distributor to ensure they sell your product over those of your competition.

5. What Is Your Intent?

Using all the information that you’ve gathered by answering the previous four questions, come up with your mission statement. Reference the consumers you’ll be selling to, define the product you’ll be offering, and state how it’s going to be different from every other product on the market.

6. What Are Your Strategic Goals and How Will You Achieve Them?

Plan your strategic goals both for the short-term and the long-term. Better yet, take your long-term strategic goals and break them down into smaller ones that will be easier to both track and achieve.

Determine your marketing activities direction and a couple of focus areas to start with. For example, email marketing, social media marketing, trade shows, public relations or partnerships could all be okay, inexpensive places to start. Your marketing plan needs to focus on supporting one specific business strategy. Rather than trying to be all things for all people, focus your marketing strategy on maintaining a more narrow position that’s easier to sustain.

7. What Is Your Marketing Budget?

The plan and strategy you go for will ultimately depend on your available budget. Make sure you research the cost of different marketing strategies so that you do not overshoot and plan for something you can’t pull off. Study the benefits and flaws of each one, so you’d be able to understand why you’re choosing one over the other. Perhaps something you thought would fit well with your marketing goals will turn out not to be the best possible solution. Your ultimate goal is to come up with a plan and strategy that will strengthen your brand’s positioning within the available budget limitations.

Many businesses that fail within the first couple of years of operation suffer that fate because of a lack of planning and market research. However, with the right plan, you won’t fall into the trap of wasting your resources while trying to wing it. To avoid that, make sure you do your research on the industry and ask the right questions. The more questions you ask and answer, the better your chances of creating a marketing plan that can carry your beverage business for many years to come.