Market Insights: A Selection From The Report
Trend 3: Supply side issues
Global food production has become a high profile issue in the past due to a series of inter-related factors that have combined to put strain on agriculture and the food industry. Analysts across the world have referred to the shift as a major ‘global food crisis’.
Trend 6: Convenience
Convenience is one of the most significant mega trends impacting CPGs this century. The need for more convenient food and drinks products has paved the way for a plethora of new product development and innovation. Today, it remains one of the main issues facing CPG manufacturers. Convenience products play to the demands of consumers’ needs for food and drink products that bring simplicity and ease in shopping for, preparing, cooking and consuming. Enhancing value via convenience has been one of the most traditional ways in which CPGs have encouraged consumers toward...
In an industry such as food and beverage where a large number of companies compete aggressively, it is often difficult to achieve differentiation on product traits alone. Building a brand based on intangible elements, such as heritage, origin, emotion, trust and quality, is therefore a key means of differentiation. Creating a brand with strong tangible and intangible qualities not only can command a premium price, but can build brand loyalty.
All the companies profiled in this report focus heavily on product quality and go to extreme lengths to ensure that quality is upheld. Heritage also plays an important role. Many of their brands are household names, with histories going back more than a century, that have been trusted over generations to provide quality food. For example, Heinz, Budweiser and Coca-Cola all play on their strong heritage in their branding.
Food and Beverage Industry’s Elite Eight Sustain Prominence through Innovation
New York, January 7, 2009 - Global branding in the food and beverage industry has never been more challenging. Yet for select leading global companies, the often volatile international marketplace is populated with more opportunities than pitfalls. According to market research publisher Packaged Facts’ all-new report, Top Global Food and Beverage Companies: Strategies for Success, there are eight companies who exemplify the ideal model for success: Nestlé, Kellogg, Anheuser-Busch, Wrigley, Kraft, Heinz, Danone and Coca-Cola.
It’s no coincidence that these elite eight are among the most recognizable company names in the world. Each manages a portfolio of brands that are consumed across multiple international markets, and most have heritages going back over a century.
Their reputations for achieving longevity through innovation and ingenuity have proven advantageous in their bids to flourish amidst the major trends that are challenging and changing the food and beverage industry in the 21st Century.
“The foremost similarity among all eight companies is their commitment to innovation, to create products that meet the changing needs of consumers,” says Tatjana Meerman, publisher of Packaged Facts. “Innovation is a critical part of their strategies to win over new consumers, protect and bolster their competitive advantage and hence drive long-term financial gains.”
For example, many companies employ strategies to allay the mounting pressure they face to be accountable for and help promote healthier lifestyles. These include moving nutritional guidelines to the front of packs to enable consumers to make better informed decisions, producing smaller packs to supply consumers with snack solutions that can be used as part of calorie-controlled diets, and providing products that are nutritionally balanced or have added nutritional benefits.