Once considered critical in food and beverage purchasing decisions, factors like price and convenience are now being outweighed by considerations such as health, wellness, and transparency. This swing in the purchasing pendulum is forcing marketers of the food and beverage industry to adapt accordingly.
A study from the Food and Marketing Institute and Grocery Manufacturers Association showed the preference towards these attributes was universal across all generations, income levels, and regions. Consumers are seeking trust and honesty from food manufacturers. They want clear labeling to know what they are buying and where it is from. Highlighting qualities such as organic production, natural ingredients, and fewer ingredients are all attributes facing consumer purchasing decisions. Historically, nutritional content was the biggest factor in health and wellness, now consumers are looking for more qualitative information.
Most of the food and beverage industry has struggled with stagnant growth. Growth has been hovering at a mere 2.6 percent with population growth at 2.3 percent. It is apparent that there are opportunities for marketers in the food and beverage industry to boost sales simply by adapting packaging and advertising to appeal to these new emerging purchasing intent factors.
One company putting significant investment into such updates is Coca-Cola. In April, Coca-Cola Great Britain revealed that it would change the name of its Coke Zero to Coca-Cola Zero Sugar. Chief Marketing Officer for Coca-Cola, Marcos de Quinto notes, “Packaging is our most visible and valuable asset.” The new visual identity given to the previous Coke Zero product not only delivers on creating a synonymous “One Brand” assortment strategy, but it makes it even easier for consumers to easily choose their Coca-Cola without sugar and calories. Packs of the soft drink will display color-coded nutrition labels on the front of the bottle instead of the back as traditionally executed. Currently 43% of Coca-Cola products in the UK are lower or no-sugar. This marketing strategy is designed to appeal to the consumer and increase consumption to 50%+.
If you are looking for ways to update your brand, whether through a packaging update or a new strategy, reach out to Catalyst!
