CAGNY: Health, wellness take center stage for ‘Big Food’
Some of the world’s largest food and beverage makers met to present their 2017 strategies to investors and Wall Street analysts at the Consumer Analyst Group of New York conference (CAGNY) February 20–24.
Some of the world’s largest food and beverage makers met to present their 2017 strategies to investors and Wall Street analysts at the Consumer Analyst Group of New York conference (CAGNY) February 20–24. There’s no doubt that Big Food is facing its share of challenges; consumers are demanding healthier food with fewer artificial ingredients while savvy start-ups are winning market share and shelf space. It was evident from their CAGNY presentations that food and beverage companies such as Coca-Cola, Mondelēz, and Snyder’s-Lance recognize these consumer shifts and are scurrying to vie for a slice of the pie. Here’s a recap of how the companies at CAGNY said they are doing just that:
Coca-Cola: The beverage giant, which will see new leadership in the form of incoming CEO James Quincey as of May, said it has “outgrown” its namesake cola and will now focus on becoming a “total beverage company.” In fact, Coca-Cola said it supports the World Health Organization’s guidelines for limiting added sugar, and is working to repair its image in public health circles. This will involve concentrating on bottled waters and teas. Quincey said the company is planning to introduce more than 500 new products in 2017 and reformulate another 500+ existing items to be more in line with shifting consumer tastes and dietary preferences.
Mondelēz International: The company plans for an unprecedented year of well-being innovation in 2017, including the launch of a new premium well-being brand, Véa. Featuring bold regional flavors, such as Thai Coconut or Peruvian Sweet Potato, Véa crunch bars, world crisps, and seed crackers have no artificial ingredients, colors, or flavors, no trans fats, and are Non-GMO Project Verified. “Véa truly underscores the best of our growth capabilities, including breakthrough product and packaging innovation, real-time data analytics, comprehensive distribution across multiple growth channels, and fearless digital marketing,” said Tim Cofer, chief growth officer, Mondelēz.
Synder’s-Lance: One of the main topics of the snack company’s CAGNY presentation centered on addressing consumers “Better For You” (BFY) needs. This includes revamping its existing portfolio of brands, including Synder’s of Hanover pretzels and Cape Cod kettle chips, and offering Non-GMO Verified, gluten-free, preservative-free, and USDA organic varieties. It also means taking the BFY needs into under-served food categories such as cheese crackers, variety packs, potato chips, and perimeter foods (example: Snack Factory’s Veggie Sticks). The company has even coined a new slogan—“Snack Better with Better Ingredients, Great Taste.”
PepsiCo: Like Coca-Cola’s strategy, PepsiCo is seeking to continue developing better-for-you products and single-serve packaging formats in 2017. Al Carey, CEO of PepsiCo North America, said that transforming its portfolio with “innovative products and packages” and “making R&D investments in new products into the marketplace” was a priority for the company. Successful examples include LIFE WTR, Tropicana Essentials Probiotics, and the KeVita acquisition.
Campbell Soup: CEO Denise Morrison emphasized the power of “strategic foresight” in her talk at the CAGNY conference. The company, which has already made great strides to enter the health and wellness space, announced it will be creating better-for-you snack options that deliver specific health benefits to consumers. Additionally, one of its growth platforms includes Habit, a start-up company funded by Campbell’s and led by Neil Grimmer, the founder of Plum Organics. Habit’s focus is “personalizing diets for each consumer’s physiology, lifestyle, and health goals.”
Danone: CEO Emmanuel Faber stressed the importance of the impending completion of its $10 billion acquisition of WhiteWave Foods. The purchase, Faber noted, will help Danone “combine world-class research on Dairy and Plant-based fermentation” and “improve nutritional density” of its global portfolio.
General Mills: “We now expect to reach $1 billion dollars in net sales from natural and organic products by 2019 without additional acquisitions,” noted Jeff Harmening, president and chief operating officer, during his presentation. One of the company’s priorities is to return U.S. yogurt to growth through “core renovation, snack innovation, and natural and organic penetration.” Additionally, natural and organic is a “significant growth opportunity” for the company and focus will be placed on the Annie’s, Liberté, and Larabar brands.
Tyson Foods: The company will continue investing in innovation that will bring to market a wide variety of new products that meet consumers’ desire for fresh food, more protein, and in flexible forms that can be eaten seamlessly throughout the day. The company highlighted a dozen new products and announced that all Tyson consumer branded products would feature chicken with No Antibiotics Ever (NAE). One innovation to be launched under the refreshed Tyson brand will be Tyson Tastemakers—a curated line of dinner experiences that may be made fresh at home.
Kellogg: The company will continue to invest in its Kashi brand and plans to launch a line of Kashi Savory Bars in three varieties, Kashi Teff Thins, a range of savory, gluten-free crackers. There is also a line of organic powder blends featuring 15 grams of protein and organic super greens and fruits that will be unveiled this year.
J.M. Smucker: The company is “responding to changing consumer preferences to ensure our brands remain the preferred choice across multiple generations.” This entails focusing on new platforms that extend the strength of its iconic brands. For example, it will launch Folgers Simply Gourmet—a premium coffee containing all natural flavors. Additionally, in the spring, the company will debut Numi Ready-to-Drink Tea, which is fair trade and organic.
Ingredion: Ilene Gordon, chairman, president, and CEO, told the audience of investors and analysts that, “our success is anchored in a core value proposition of texture, sweetness, and nutrition combined with an innovation focus aligned with key market trends.” The ingredient company will center its efforts on global consumer trends, including natural and simple ingredients, reduced sugar, and convenience.