Kevin Ryan's: Culture Matters
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View and Chew
Last week, at the Consumer Electronics Show, the press got their first look at a new video platform that has been generating a lot of buzz around Hollywood: Quibi. Started by Jeffrey Katzenberg, founder and CEO of Dreamworks, and Meg Whitman, former HP chief executive, Quibi is a mobile phone only, subscription streaming service. What makes it different from Netflix and Disney+ is that it only has shows that are 10 minutes long (or regular length shows cut into 10-minute chapters). Over 175 new shows are set to debut on the service this year (over $1 Billion in content!) with directors like Steven Spielberg and Guillermo del Toro featuring actors like Jennifer Lopez, Kevin Hart, Bill Murray and Chrissy Tiegen. The service will cost $4.99 a month with ads, or $7.99 ad-free.
So What? Quibi is to video what snacking is to eating. That isn’t an insight, its build into the name: Quibi= quick+ bite. What is an insight is the realization by the company that there are a growing number of these 10-minute ‘holes’ in our day where traditional video doesn’t work well. Right now, we are filling that void with cat videos, Facebook scrolls and Tik-Tok snippets, but Quibi bets that this attention could be captured and monetized?
Will this catch on? I have no idea; do people have the financial stomach for one more subscription? However, it brings to light the fact that these 10-minute moments exist in consumers’ day and are worthy of our attention. Waiting for the bus, taking a quick break at work, or just during the random transitions that happen during our day, our phones have become trusted companions. However, food and beverage are often close at hand during these moments, our physical refreshment to accompany our mental timeout.
According to research from 2018, 35% of young Millennials can’t be without their phone any time they eat. While that number drops to 24% when you look at everyone under the age of 55, it’s likely due to the fact that they are just watching bigger screens, with 72% admitting that they eat at least once a day in front of the TV.
TV changed meals (exhibit A: TV dinners), so it stands to reason that mobile is changing snacking. Are CPG companies thinking enough about the ramifications of cell phones + snacks? Should a snack last as long as a Quibi video? Should snacks be purposely created to fit into these 10-minute windows? Are there opportunities to market a snack to go with particular snack-size videos? There is a lot of potential here if a company wants to dig deeper.
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Milk Chocolate, Re-imagined
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Blue Horizon Ventures, some of the original financial muscle beyond such brands as Beyond Meat and Impossible, has announced a “significant” investment in UK-based confectionery company LoveRaw. The reported ‘7-figure investment’ will be used to increase distribution and expansion of the company. Founded in 2013, LoveRaw makes 100% natural, vegan chocolate buttercups (e.g. peanut brownie butter cups).
Momma Meagz, the popular UK vegan chocolatier, has announced the launch of their new non-dairy alterative to the Cadbury Crème Egg. The “Chuckie Egg” will be available in Holland & Barrett shops starting in late January through Easter.
Indianapolis-based Endangered Species Chocolate has announced the launch of a line of vegan Oat Milk Chocolate bars. The 55% cocoa bars are launching exclusively at Whole Foods and will be available in three flavors: Oat Milk + Dark Chocolate; Oat Milk, Sea Salt & Almonds + Dark Chocolate; and Oat Milk, Rice Crisp + Dark Chocolate.
So What? Why would a company like Blue Horizon Ventures invest in a vegan chocolate maker? Yes, veganism, especially in the UK, is on an upward trajectory, but in the pantheon of plant-based products, why start with chocolate?
If we go back ~25 years ago, the chocolate industry was in a bad place. As the foundation for our current health and wellness obsession was being formed, chocolate was being pushed further out of the consideration set. Then came the mainstream ‘discovery’ of antioxidants. Suddenly foods like red wine and chocolate became ‘healthy’ and consumers ramped up their consumption. The problem was, not all chocolate was ‘good.’ Dark chocolate, with its high cocoa solids and bitter taste, was deemed 'healthy' and milk chocolate, creamy and sweet, was put on the bad list, relegated to the bottom of kids’ Easter baskets and Halloween stashes.
Since that time, in pursuit of the flavanol (i.e. antioxidant) title, we’ve seen an extreme escalation of dark chocolate percentages. In fact, there are brands out there now pushing 95%! However, it is my belief that not all healthy chocolate lovers have bought into this trend. I’ve interviewed consumers that have been crying bitter tears while eating their bitter chocolate for the last two decades! I suspect there is a large contingency of consumers that (without shame) still want to eat the creamy, sweet, non-bitter chocolate of their youth.
That’s the opportunity that I think Blue Horizon sees, and it’s the same one that Endangered Species Chocolate (and other oat milk chocolate) is trying to capitalize on. Cadbury has been on to this for some time. Back in 2018, they launched a line of Darkmilk chocolate bars, with the aim of “democratizing dark chocolate" and making milk chocolate “more grown up." However, without the full health credibility of all of those cocoa solids (Darkmilk is only 40%), it still fell more on the indulgent side of the spectrum.
I believe vegan, plant-based and oat milk is the next attempt at giving milk chocolate (our secret love) the health halo of dark chocolate. This trend is important not just for those of you in the chocolate industry, but anywhere chocolate is used. For example, how many snack bars are either drizzled or enrobed in chocolate or have a chocolate foot? Would calling out the use of plant-based/oat milk chocolate in these applications elevate the health perception? I predict one of the big bar makers (Kind, Nature Valley, Clif, etc.) will launch a bar containing either vegan, plant-based or oat milk chocolate before the end of the year.
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The Whole Truth
Chicago-based ZENB, derived from the Japanese word “zenbu” meaning “whole,” has launched a new line of ZENB Bites. The USDA-certified organic snacks are made by combining whole vegetables (as in, edamame with the pod, beets with the peel, and red pepper with the stem and seeds) nuts, olive oil, date syrup, grains, almond butter and spices. Each 1.6-ounce resealable pouch contains one full cup of vegetables. Flavors include: Sweet Potato, Mango and Cinnamon, Summer Beets, Orange and Cacao Nibs, and Red Bell Pepper, Tomato and Ancho Chili.
Norseland Dairy has launched an on-the-go cheese snack called Amazin’ Grazin’ at Sainsbury’s in the UK. Available now in 290 stores, the new refrigerated bars are made from 100% natural British cheddar and whole dried fruits, nuts and seeds. Flavors include: Sticky Date and Honey, Berries & Cherries, and Smoky Chipotle.
Miami-based Whole Coffee Company has released their Nudge Coffee Bar. Using proprietary technology, the company combines ultra-finely ground whole coffee beans, cocoa butter, skim milk and a erythritol/monk fruit sweetener blend to produce a smooth and creamy bar that looks and eats “surprisingly like chocolate.” Each bar contains approximately 72 coffee beans and has the caffeine equivalence of 2 cups of brewed coffee. Flavors are named after the bean’s origin: Brazilian, Ethiopian, Italian Roast, and Columbian.
Life’s Grape, a CA-based, family farmer-owned company, has launched a peanut butter-dipped version of their raisin snacks. The snack consists of whole, vine-ripened, Selma Pete grapes coated in creamy peanut butter. The new product is available from the company’s website.
So What? Around the holidays, I occasionally make a dessert called Clementine Cake. Based on a classic Italian recipe, the prep and instructions are so strange and unintuitive they seem like something out of My Drunk Kitchen. Basically, it’s just clementine oranges, eggs, almonds, sugar, and (maybe) baking powder. Nothing unusual yet, until you realize that you grind up all of the oranges whole for the batter. What results is surprisingly good, but even more surprising are the reactions of people when they find out how it is made. Some people are perplexed, others skeptical, but the most overwhelming comment I hear is that the cake seems somehow ‘healthier’ because “I’m eating a whole orange.”
‘Whole’ is an interesting concept, and one that seems relatively untapped from a marketing perspective. While ‘whole milk’ and ‘whole grain’ are now common in food parlance, I think ‘whole fruit,’ whole bean’ and ‘whole vegetable’ might just be next. Recent studies have shown that the core of an apple (yes, the stem and seeds) is where a lot of real nutrition is found (i.e. probiotics). In bananas, the peel contains much of the fruit’s valuable antioxidants and fiber.
As anti-waste campaigns grow stronger, and smoothie culture acculturates us to grinding up practically everything, the push to find more ‘wholesomeness’ from ‘whole’ things will likely increase.
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Back in September, Panera removed French Onion soup from their menu, and customers were not happy. To announce that it has returned, Panera produced a new spot featuring Phyllis Smith (Phyllis from The Office) to read the mean tweets and posts of angry customers.
Seneca Women Podcast Network, a new woman-led podcast network and app, has announced their launch with the founding partnership of P&G. The new platform will sponsor and produce programs focusing on women in leadership, as well as highlighting organizations that champion the female voice in business, education and the lives of girls.
So What? With the reliable foil of corporate fast-food ‘bad guys’ like McDonald’s or KFC, Panera has ridden a long wave of customer goodwill. Their “food as it should be” mission, healthier offerings and digital innovations have pushed them to solid success. However, it seems like the TikTok incident back in October (which I covered here) where an employee ‘exposed’ how food was prepped at the chain, caught them flat-footed. Add to that the vitriol that showed up on social media after they pulled a favorite soup, and I’m guessing they went into full panic mode.
The decision to cast Phyllis (a native to the company’s St. Louis HQ) was a smart move. The brand humanized themselves, reminding customers that the angry tweets that they shoot off into the ether don’t get read by unfeeling robots, but by sweet people like Phyllis. As other fast food franchises choose wise-cracking, trolling and raunchy personalities as their social media voices (which likely encourage higher flames), Panera went demure. I think the brand is starting to realize that they can’t wait for a crisis to establish a voice that will temper consumer reactions. They need to cultivate a brand identity that changes the tenor of future issues.
I’m becoming especially intrigued with how big brands and corporations are establishing, building and maintaining their personalities and identities across the growing media landscape. Branded podcasts, like the new one from P&G, are just the latest in a growing sea of branded content and commerce working hard to establish a lasting consumer impression. Podcasts like LipStories (from Sephora), Innovation (by Johnston & Johnston) or Thank God Its Monday (by Shopify) are doing something difficult to achieve in today’s ‘blink and you’ll miss it’ advertising. I think these types of investments will pay off in the long-run, solidifying brand voices and helping mitigate consumer reactions to unexpected events (like taking away their favorite onion soup).
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Earth Balance, a Boulder Brand company, has launched three new whipped spreads made from pressed oils. A simpler addition to the spreads category, the products contain only 3-4 ingredients, a pressed oil, palm kernel oil, flaxseed oil and sea salt. Flavors include: Pressed Sunflower Oil, Pressed Avocado Oil, and Pressed Olive Oil.
Debuting at the Consumer Electronic Show last week, Fresco’s Eva Mini is an olive oil ‘mill’ that allows consumers to press their own fresh oil in their home. Like a Keurig coffee machine, users load the Fresco ‘mill’ with a ‘gem’ of frozen oil/pulp and with the push of a button, the machine produces oil for use. Shipped frozen, ‘gems’ are available from different types/different strengths of olive: Adagio, Allegro, Vivace. Machines and ‘gems’ are available via the company’s website.
So What? We are in the time of fat, but the market hasn’t caught up yet. Just as when everyone discovered ancient grains and most supermarkets barely had rye flour, we are in the calm before the future storm. In the next several years, companies are going to be falling all over themselves trying to romanticize and differentiate the type of fat they are using as the ripple effect of Keto finds its way into mainstream homes. To get just a hint of what could be coming, take a look at the cosmetics industry. New products contain cold-pressed onion seed, cabbage seed and spinach seed oils. In the near future, if you are a CPG health and wellness product using plain vegetable oil or coconut oil (so 2015), you’ll be left behind.
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Berlin-based personalized supplement startup Baze, has announced their intention to expand into food. Currently, Baze works by collecting and analyzing a small sample of blood at home (gathered through an MIT-created device you strap to your arm). This test determines the nutrients you are deficient in and the correct supplements to get your body ‘back on track’ as well as reach your fitness and nutrition goals. Baze then ships you monthly packages of personalized supplements. Using the same technology, the company says it is partnering with several food companies to co-manufacturer ‘subscription foods’ and co-marketing with different food companies to recommend particular foods based on users’ biometrics.
So What? Personalized supplementation is a hotbed of M&A. Amazon bought Pill Pack back in 2018, Viome bought the DNA/microbiome personalized nutrition company Habit from Campbells last February, and Nestle just bought Persona in August. What’s fascinating about each of these is that they have all come around to realizing that incorporating food into the mix is the real game changer. From my experience in talking to people about health, most consumers don’t like the idea of starting on a new pill. “You never seem to come off a pill,” one consumer told ,“you just keep adding new ones.” Instead, many people say they’d rather try to incorporate new foods. In medicine, you are already seeing this catching on, with doctors at some of the biggest hospitals now writing prescriptions for food. As this goes mainstream, I can see doctors, apps and systems like Baze heavily influencing what goes into our supermarket carts.
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From Innovation to Ideation
Malachite can serve as guide, coach and inspiration in your company's journey toward a profitable pipeline. From consumer interaction, to whitepapers, ideations and prototyping, Malachite can help. Visit malachite-strategy.com for more info or email kevin@malachite-strategy.com. |
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