CPG Trends, Sustainability 29 October 2021
Our October Roundup: The latest in CPG industry news
If you're curious about the latest in CPG-related news, we have you covered. Discover what you might have missed in the month of October.
Sevendots, London
5 minute read
In a new series, we offer you the latest updates from sources we enjoy across the CPG sphere. Curated monthly, we deliver you a concise summary, just in case you don’t have time to read the entire piece.
In this month’s roundup, discover our top picks from the month of October. Learn from us and our partners who are based across the globe, and catch up with what you might have missed this month in CPG news.
CPG brands ditch domestic tropes for culture-led marketing. Will it pay off?
Marketing Dive
Read the full article here.
Changes in demographics mean there are fewer traditional, heteronormative families to market consumer products to. Generational differences mean that families look and feel different anyway. This piece highlights the importance of understanding cultural trends and shifts that are happening today in order to ensure brands do not appear out of touch. We’re sure you’ve heard all about this already, but this piece highlights the move into new marketing platforms (e.g. TikTok) and the importance of authenticity for the younger generations. In particular, it traces changes made with the Jif product that represents an interesting and unique case study.
In short: Authenticity is more important than ever – and young consumers can tell when brands don’t pass the authenticity sniff test.
What CPG has done — and it’s an important step — is walk away from thinking all of their ads need to be holding a mirror up to their audience: ‘This is you cleaning the counter, this you making a cup of coffee.’ That doesn’t make you feel anything for the brand.
3 surprising ways people prioritise sustainability in the wake of the pandemic
Think with Google
Read the full article here.
In this piece, Think breaks down their advice to marketers and brand owners on how to translate consumer concern over sustainability into strategic action. They’ve found that 82% of consumers say that sustainability is more top of mind now than it was before COVID-19.
In short:
By creating experiences that feel positive, effortless, and rewarding, brands can help empower people to keep acting sustainably and start to drive longer term change.
SBTi launches world-first Net-Zero Corporate Standard
Sustainable Brands
Read the full article here.
The Science Based Targets initiative has launched the Net-Zero Corporate Standard in an effort to offer companies a robust certification to demonstrate to consumers, investors and regulators that their net-zero targets aligns with scientific advice. This offers a clear blueprint for companies to follow, countering disparate efforts towards sustainability that are defined company-by-company, as well as answering the demands of investors looking for companies to take substantive action.
In short: Companies are offered a new blueprint for reaching robust emission reduction goals.
The first seven firms to have their net-zero targets certified as part of the SBTi’s pilot scheme are AstraZeneca (UK), CVS Health (US), Dentsu International (UK), Holcim (Switzerland), JLL (US), Ørsted (Denmark), and Wipro (India). More companies are now invited to commit to set net-zero targets, which the SBTi will begin validating from January 2022.
Tracking the plant-based protein movement
Food Dive
Read the full article here.
Food Dive offered up a handy summary of everything going on in plant-based news – product launches and company maneuvers, presented in an easy-to-filter timeline. With increasing demand on the plant-based category, this can help you stay up to date on everything that’s going on.
In short: A straightforward timeline of platn-based news from Food Dive. Simple as that!
Food companies could see $3 billion in monthly sales vanish, as low-income households get squeezed
CNBC
Read the full article here.
In retail news from CNBC, US-based shoppers who received assistance during the pandemic are facing increasing difficulties in the wake of rising costs caused by the supply chain crisis. According to IRI research, consumer packaged goods companies will lose out on about $3 billion of sales from these shoppers each month.
In short: As pandemic-driven assistance comes to an end, retailers face sales losses. CPG companies must provide budget-friendly options to prevent losing sales both now and in the future.
[The assistance program SNAP] is a sales driver for major grocers like Kroger, big-box players like Walmart and discount chains like Dollar General and Aldi. About 16% of households across the U.S. — 42 million people in total — participate in the SNAP program. SNAP shoppers drive 12% of food and beverage sales online and in stores, according to IRI’s research.
Bacardi pairs purpose with NFTs to empower fan investment in music diversity
Marketing Dive
Read the full article here.
This piece examines an interesting case study on the use of NFTs (Non-Fungible Tokens) in the CPG space. Bacardi managed to promote and support a diversity-driven cause via a brand, aligning this with the use of new technology.
In short:
While marketing around causes is nothing new to Bacardi, Music Liberates Music sees the rum brand evolving its digital strategy through purpose-driven NFTs. In effect, the collectibles serve as commodified vehicles for the brand’s message, which Bacardi can promote and auction.
See also: Crockpot fires up NFT to target next generation of at-home cooks.
Plant-based food companies face critics: Environmental advocates
The New York Times
Read the full article here.
Just one example of increasing criticism that has been levelled at plant-based innovators regarding their sustainability credentials and a lack of transparency around their supply chain. In this editorial, the New York Times explores the criticism coming from environmental advocates, and talks through the way in which companies can better respond to consumer concern oer sustainability credentials.
In short: Environmental advocates push for transparency, while many companies insist they cannot dedicate the resources to answering this question more transparently. It’s a tricky situation, but one that is increasingly concerning for consumers.
See also: The future of food: More science, more sustainability, more transparency
Walmart, Netflix open shopping hub to jump on hype for shows like ‘Squid Game’
Marketing Dive
Read the full article here.
Walmart and Netflix have joined forces, debuting an online hub that sells gear tied to new and popular programming on the streaming service. It comes in the wake of the overwhelming success of the show Squid Game, and is Netflix’s first digital storefront with a retailer.
In short: Netflix makes its first big merchandising link to help it compete against other streaming services. This is a big win for Netflix, who have made their name by nailing the personalization of its content delivery – an interesting example for us in CPG to learn from.
Mondelz International declares its CaPao Foods Upcycled Certified
EX Bulletin
Read the full article here.
Consumers are on the hunt for clear information about the sustainability credentials of their products. We’ve talked about this in depth in our Growth Series reporting. In this piece, it is announced that CaPao, a brand created by Mondelz Internationals SnackFutures innovation and entrepreneurship center in the United States, becomes one of the first brands to communicate with the Upcycled Certified mark on its packaging. The product is made with Cabosse Naturals cocoa fruit – around 14 million tons of cocoa fruit are harvested each year worldwide, but previously 70% of this (up to 10 million tons) was thrown away. Now much of the fruit can be used. With more efforts like this, the savings on emissions and positive impacts to the environment could be vast.
In short: The Upcycled Certified mark on product packaging signifies to consumers which products are making a positive contribution to the planet. CaPao becomes one of the first to make their credentials clear on their packaging.
See also: SnackFutures brand receives new upcycled food certification
There you have it, the roundup from October. We hope this has helped you feel more up to date with what has been happening this month.
Want to share a piece that is inspiring you in next month’s roundup? Drop me an email here.
