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You are here: Home / Uncategorized / Food and Drink: Sun, Beer & Plant-Based Products

Food and Drink: Sun, Beer & Plant-Based Products

27th August 2021 by Ashley Viagas

Mini-heatwaves and the impact on TV ads, gender-neutral beer market challenger brands, and opportunities arising within a booming plant-based market. We condense the 3 latest trends the Food & Drink industry should keep their eyes on.

1. How heat impacts TV ads

This week’s mini-heatwave gave the British public something to lust over before the rain is scheduled to take the country by storm. Similar to the summer heatwave and Euro 2020 advertising, extreme weather conditions can sometimes throw a curveball for advertisers running on TV.

There are two ways that severe weather changes can impact advertising campaigns –  TV airtime delivery, and response rates.

TV Delivery: Generally, warmer months deliver reasonable airtime, but these extreme weather incidents are one to be aware of. The direct impact is that TV broadcasters then have fewer impacts available to distribute amongst buying advertisers, and campaigns may under-deliver in that period.

Response Rates: warm weather does impact RR% – but it is the extreme heat that causes the most significant drop-off. Summer months shouldn’t just be avoided as they can still yield ROI.

Key Takeaway

For Food and Drink advertisers in the performance marketing space, warm weather campaign delivery and RR% shifts can potentially be very impactful by contributing a direct impact on sales, and even cash flow. Whilst TV buyers can use their negotiation and buying power to ensure campaigns are delivered in said month, TV schedules close 1.5 days before transmission, making it challenging to optimise if the weather changes suddenly. Learn how to minimise your risks by reading the latest tips to optimise your TV campaigns for sudden weather changes here.

Source: All Response Media

 

Gender-neutral drink takes-on Beer market

Launching last June in the UK, hard seltzer brand White Claw targets consumers that live balanced, active lifestyles but also want to have fun. The challenger brand now has ambitions to take market share away from beer by positioning hard seltzer as a “gender-neutral drink”.

The UK’s hard seltzer category is currently worth more than £10.4 million but is forecast to reach around £600 million by 2025, equivalent to the current size of the ready-to-drink (RTD) category (Source: Drinks Retailing News).

Key Takeaway

The growth of the wellness industry in the UK is aligned with the rise in popularity of hard seltzers, with”all-natural ingredients” and “low calorie” buzzwords appearing to resonate well with consumer interests. The health and fitness trend has excelled, along with consumers becoming more comfortable making purchases of drinks online. Many consumers are now keen to try a low-calorie option and want to have a good time guilt-free, more than ever.

Brands who are thinking about or currently shifting to a “healthier brand image” should consider that these megatrends around wellness, reduction in sugar consumption, increased focus on sustainability, lower-abv consumption, veganism, plant-based food and drink, and natural ingredients are all key drivers in the successes of future product launches or placements and the media strategies around it.

Source: Marketing Week

 

Plant-based food & drink blossoms

In terms of consumer acceptance, plant-based dairy is ahead of meat. But brands are using retail stores to place their plant-based products in meat sections, putting them on a more level playing field with meat.

Alternative dairy could become 10% of the total dairy market by 2030, up from 4.5% in 2020. Alternative milks comprise the largest part of this market, making up 75% of sales. However, alternatives in ice cream, cheese, sour cream, and butter are growing as consumers focus on health and sustainability. This growth is also supported by the 75% of the world population who are lactose intolerant (GlobalNewswire).

Key Takeaway

Increasing competition will drive consumer interest and bring down prices, which is a key to sustained growth. This growth will come primarily from flexitarians and shoppers who want to occasionally replace meat proteins with something perceived as healthier.

It poses a unique opportunity for challenger brands to create an identity that fosters the needs of the ‘Conscious Consumer’, showcasing a desire to display the origins and journey their products have been on.

With countries out of lockdown, brands may be looking to embark on a physical journey. To successfully navigate planned evolution from online-only to brick and mortar retail, looking at brands like Pip & Nut, finding the right partners to launch with will be necessary, but equally, finding the right place to stand out in-store will also be an exciting challenge.

Source: Food Industry Executive

 

Ask our experts here with any questions around increasing your brand performance.

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