Foodnavigator-usa Podcast

As measures designed to flatten the curve of the coronavirus pandemic continue to flatten the economy simultaneously, many companies are making tough decisions to survive, including whether to pull-back on expansion plans, lay off employees, rationalize SKU production, or push forward with strategies laid out pre-COVID-19 with hopes for a speedy economic recovery.

As the infection rate and death toll of the novel coronavirus continue to climb, more Americans are re-thinking their diet to help ward off infection, as illustrated by the dramatic increase in sales of immunity products and people buying them in the US.

Even as packaged food and beverage companies scramble to meet increased consumer demand while also compensating for setbacks during the ongoing coronavirus pandemic, many are shifting already limited resources to employees, customers in need and the broader community.

Americans are drinking more coffee than ever before – and not just because fears of coronavirus are keeping them up at night or because they suddenly need an energy boost as they navigate new demands that strain work-life balance.

Given the perils of visiting brick and mortar grocery stores amid the ongoing coronavirus pandemic, many shoppers have turned to online shopping en mass – revealing gaping holes in many retailers’ approached to e-commerce that threaten profitability and consumer loyalty.

Recognizing that the threat of climate change weighs heavily on many consumers and increasingly influences their shopping habits, the consumer packaged goods industry is exploring how it can reduce the use of limited resources, minimize waste and, in some cases, improve the environment.

Before the threat of COVID-19 prompted Washington, DC, and other US cities to ban large gatherings, nearly 900 school nutritional professionals from across the country converged on the Nation’s capital to brainstorm how vulnerable children can continue to access breakfast and lunch in the event of widespread school closures due to the coronavirus.

Confronted almost daily with images of marine debris filling the bellies of dead whales, headlines about climate change and emerging stories about America’s broken recycling system, consumers increasingly are worried about single-use plastic and packaging waste and are pressuring government and the CPG industry to find solutions.

According to the NPD Group’s Future of Snacking report, Americans ate more than 386 billion snacks last year, and IRI reports the category brought in a whopping $89 billion dollars by the end of 2017 with an addition $16 billion in sales predicted over the next five years.

The consumer packaged goods industry may be composed of diverse companies offering disparate products ranging from toothpaste to pet food to canned soup, but a recent survey conducted by the Consumer Brands Association reveals 86% of CPG leaders place the consumer at the center of their worlds, and as such they share many of the same fears and challenges.

When demand for “clean label” first burst on the scene several years ago, it was all about removing “chemical-sounding,” “unnatural” and unnecessary ingredients from products, but as shoppers learn more about food, how it is made and its impact on their health, their expectations for what they consume have become more nuanced, and so, too, has industry’s approach to “clean label.”

The long-held consumer perception of convenience stores as a last resort for a fast in-and-out trip to grab a six-pack of beer and, if they weren’t too picky, a few staple ingredients, is quickly being replaced by a new class of elevated – and digitally-integrated – c-stores, such as Chicago-based Foxtrot.

The quickly emerging vertical or indoor farming sector often is touted for its environmental sustainability, but according to ongoing research conducted by one of player in the space, produce grown indoors also offers notable health benefits to people beyond those which are farmed outdoors.

As consumer interest in health, wellness and sustainability has lifted better-for-you brands out of the dark corners of stores to become a mainstream phenomenon in every category, marketers have gravitated to founders’ stories and social missions to attract the attention purpose-driven consumers.

The consumer-packaged goods industry is undergoing a “cataclysmic transformation,” according to one branding expert, who explained that a new crop of entrepreneurs who are unfettered by outdated taboos and not intimidated by industry giants are challenging iconic brands that once were considered untouchable – and winning.

As we enter the next decade, consumers will continue to wield the power they took from food and beverage brands during the last ten years to drive increased transparency, sustainability and social responsibility, predicts one leading market analyst and communications expert.

The consumer awakening and subsequent loss of faith in big business over the past 10 years caught many established food and beverage companies on their backfoot, but a leading market analyst and communications expert predicts the tide will shift again in the coming decade as more brands positively respond to changing customer demands.

The buzz around fresh, healthy and sustainable eating is so intense it is easy to think that everyone now eats this way – but the reality is the premium prices and extra time often needed to prepare these on-trend items place them out of reach of millions of US consumers who struggle to consistently put food on the table.

The National School Lunch Program serves approximately 4.9 billion meals a year to children nationwide, and for many recipients it is their only source of nutrition, and yet, according to a new book by Jennifer Gaddis, the program is chronically underfunded – causing a litany of problems that threaten the health and mental well-being of students and the people who serve them.

Despite consumer demand for new eating experiences, we currently rely on only 1% of edible plants and a whopping 60% of our calories come from just four crops – a disjoint that experts say represents a missed marketing opportunity and a threat to the safety of the food supply and the health of the planet and people.