Functional Yoghurt: Not only Tasty, but more Inspiration "Chinese consumers are paying more and more attention to the intake of dairy products, be their quality or quantity. Reports from Mintel indicate that health claims with “added” and “reduced” are the decision-making factors that make consumers most willing to pay for a premium. However, our domestic market of health functional food is still flawed and imperfect, while functional yoghurt products in other countries (such as Japan) have a relatively complete system and the craze for these products continues.
·What do these functional food development strategies bring to us？
·How do we achieve accurate positioning by segmenting and in-depth research on consumer groups?
·What exactly is product innovation?
Being functional is a trend of the F&B industry, and at its frontline, dairy products have greatly pushed the development of functional foods. For example, SimpleLove upgraded its LGG yoghurt, suggesting drinking each bottle in the morning and at night. Bright Dairy also launched fermented milk with functions resistant to smog and heavy metals in 2018. The functions of yoghurt are no longer limited in areas concerning intestinal health. There would be much more possibilities. We'll call together mothers, nutritionists and researchers to explore more possibilities of functional dairy products.
It is universally recognized that China's yoghurt market has a great development potential. According to data from Euromonitor, China's milk sales in 2017 have increased 4% compared with the same period of last year and the yogurt sales are estimated to increase 18%, reaching 122 billion yuan. Meanwhile, the problems such as insufficient innovation, homogenization and diverse category lacking have become obvious. Under this circumstance, drinkable yogurt gradually attracts consumers' attention. Data from Innova Market Insights indicate that drinkable yogurt in China, with refreshing taste and convenient package as its bonus, has rapidly developed and increased its market value by 25% from 2016 to 2017. The drinkable yogurt, as the third force of yogurt, is rising right now. What's its market environment? How about its consumer acceptance? Where is the breakout for new product development?
“Protein” plus “fitness and bodybuilding” is a good combination, and “fitness and bodybuilding” plus “water” is a good combination. As exercise and fitness market is prosperous nowadays, will the new combination of protein and water become popular?
People have been drinking plant-based milk for a long time and this year witnesses its compelling outburst. Innova Market Insights reports that in the past 11-15 years, the newly-launched beverages among dairy substitutes have increased six times, with its 2018 market value expected to reach 16.3 billion dollars, and that China’s soybean milk has increased sales by 42%. As consumers express stronger preference for natural, simple and healthy lifestyle and more interests in vegan substitutes for animal products, consumers have more favorable impression on plant-based milk. Perceptive enterprisers have earlier sensed this new trend and entered or invested more into this segment market.
When it comes to flowers, what would you think of? Whether it's adding a single flower or flower petals into a dish, or adding a floral flavor to a drink or a snack, the appearance would be improved immediately, so would be the taste and scent. With such great effects, who could ever resist the charm? Mintel reports that floral flavor applications in the food and beverage industry have increased 88% in the past year, with roses and violets being the most popular and elderflowers the new "MVP" for cocktail and sparkling drinks. Limited seasonal products associating flowers to a time of the year have appeared even more frequent in people’s social life. At this right timing and place, we’ll reveal the mystery of floral flavors.
Craft beer, a symbol of petty bourgeoisie. Compared to industrial beer, these artisanal beers go through a rigorous selection of raw materials with earnest attitudes and brilliant ideas. Craft Beer advocates free creation and unlimited taste experience, just similar to the spirit of craftsmanship. It is perfect for savoring slowly. In recent years, Chinese consumption of craft beer has maintained an increase rate of over 40%. Craft Beer, with an innate minority characteristic, has quickly become a symbol of middle-class consumer culture. The logic of its minority base makes consumers have a more tenacious attachment to it.
·How does craft beer appeal to consumers?
·How does the market go through the taste transition period smoothly?
·How do microbreweries upgrade consumption?
-How HPP ‘locks away’ and protects the authenticity of the raw ingredients and why this is a key differentiating factor & competitive advantage for our strategic partners
-Food safety advantages of HPP
-Consumer satisfaction with taste and quality of HPP Juices and repeat purchase
-Chic Group’s 10 years+ of investment into HPP technology
-How China’s leading juice brands can benefit from strategically partnering with 源自INVO
-How on-premise and QSR chains benefit from strategically partnering with 源自INVO
-Extending freshness and optimizing supply-chain efficiencies using HPP technology in the Juice sector
-Introducing the process differences between HPP and NFC Juice production
-Comparison of Vitamin C retention in HPP and NFC Orange Juice
-The advantages of extended shelf life of 90-120 days for planning, warehousing, production and logistics function
-Ability of HPP process to use globally sourced ingredients & raw materials harvested at their peak for premium quality consistency
-Ability of HPP process to give ‘global reach’ – able to export fresh beverages globally due to extended shelf life
-Ability of HPP process to open up e-commerce channel due to extended shelf-life
-The cost advantages of HPP as relates to minimizing shelf life write-offs
-The advantages of HPP processing versus on-premise fresh squeezing
-Simplify preparation and presentation
Topic Value: It has been urgently needed for the traditional mineral water brands, like Wahaha, Yake, Nongfu Spring and Coca-Cola, to make transformation and produce middle to high end products. But, do they clearly understand consumers’ expectation for these products? The large and medium-sized mineral water brands usually spend huge monry on marketing but the effects are hard to be evaluated. In contrast, new media can be a very efficient tool. But the key is how the brands use this tool to save money and increase efficiency. Would the power of community-centric marketing and a fan economy also apply to the mineral water industry? The answer is yes. However, as different types of mineral water has different properties and consumption scenarios, they respectively have different marketing tricks.
Cathy Gu, Founder, Koala Marketing
Concerning Chinese water brands, Kunlun Mountains features viral marketing and sports marketing; Master Kong focuses on cultural marketing, partnering with Tmall to build a China Day and create a trans-boundary cooperation pattern based on brand communication and channel expansion; ALKAQUA, a Uni-President brand, positioned “fashionable”, lays emphasis on contents; and Nongfu Spring strides ahead from internal training to external trans-boundary cooperation, step by step practicing digital marketing.
China’s local governments have invested heavily in green industries, but their lack of awareness of the water industry causes policies and marketing directions to be vague. Things happened in the areas such as Changbai Mountain, Wudalianchi and Tongren, Guizhou are very typical. Apart from that, domestic bottled water companies are confronted with the challenge to build consumer awareness when developing the above-mentioned three types of water. In conclusion, local governments need policy-making guidance, and companies need successful cases to refer to , which Europe offer the best model.
What should the Generation Z's preferred snacks look like? To be good tasting? Yes of course. Good taste is the source of happiness. But remember to be healthy as well, so that they do not need to worry about their health conditions. Snacks shall not only be a feast to the eye and mouth, but also a bonus to health and vigor. Chocolate with yogurt, nuts coated with probiotic chocolate, biscuits with prebiotics... Do you want some more?
Finally, the world welcomes its fourth type in chocolate—“Ruby”, a new variety introduced since the advent of white chocolate in the 1930s. Totally worthy of 80 waiting years, Ruby chocolate has no added color, yet with an innate charming pink; no added seasoning, yet with a natural berry aroma. The unique flavor and color create a romantic fantasy world and the combination of sweet fruity taste and mellow smooth mouth feel presents consumers with unprecedented experience. What trend can we expect from this Ruby chocolate wave?
New York-based RIND Snacks has launched unexpectedly a line of “Skin-on Superfruit Snacks” to encourage everyone to “Keep it Real. Eat the Peel”. Fruit rinds, though always being blamed for its poor taste, can make a difference with all its merits. They are healthy, environmentally-friendly and yet neglected foods, with three to four times the fiber content compared to a serving of the flesh alone and even more vitamins, antioxidants and nutrients. Besides, the use of peel can also effectively reduce the waste of food residues, as discarded and edible fruit peels account for over 21% of total municipal waste in the US. So, here is the question: how do they settle the taste problem? It seems that it’s time to re-examine the abandoned food with new technologies and new insights.
Under the scene of “office + snack”, the most popular gameplay in China is deploying unmanned shelves. Throughout the year 2017, the unmanned shelves in offices, seen as a promising market, have received a lot of attention and investment from e-commerce, take-away and express giants. However, under the similar circumstances, American startup SnackNation has chosen custom snack boxes to fight the battle. It has financed a total amount of over 22.5 million US dollars, and achieved sales of 80 million US dollars inferred through the company’s donation activities. With competition heated up among unmanned shelves, will the snack boxes become a dark horse?
Coffee is really busy these days. If you summarize the phenomenal brands that emerge in 2018, luckin coffee should come out on top. As an intruder into coffee industry, luckin coffee did not invite the popular traffic star, pay billion-dollar for advertising, make big production enough to enter Cannes, or even a super brushing-screen H5. However, without going the traditional way, luckin coffee has been expanding rapidly within a year, with 2,000 stores planned to open at the end of 2018. Luckin coffee, which has upended the original marketing mode, has to say that it has achieved great commercial success. What is the truth in the luckin brand manifesto? What are the moves for its growth? How does luckin operate the traffic with pinch pennies? How does traffic lead to sales growth? By the way, there are also some friends concerning about whether the coffee and beans are good or not, please enjoy Q&A session!
Wouldn’t it sound normal for a woman making zongzi? No, it wouldn’t for women in Wu Fang Zhai, as they can catch the wig, pick up durians, avoid birds’ droppings as well as make seven zongzis within a minute! With such speedy moves, are you convinced?
Wouldn’t it sound dull for a brand of a long history? No, it wouldn’t for the brand Wu Fang Zhai, as it shows its craftsmanship through small tricks, joins in the wave of new retail and even arranges smart unmanned restaurants. Such trendy moves make this nearly century-old brand shine with vigor again.
Since 2012, the sales of the whole zongzi market have dropped by about 5% to 10% every year, while Wu Fang Zhai has achieved an upward amazing results. The world seems to be always prepared for young people, so the proposition “brand rejuvenation” shall be an eternal pursuit for brands. For a brand, developing too fast may derail from its original track while too slow may clip the wings of consumption. Maybe it’s a good idea for old brands to “restore its youth” from the view of brand strategy.
With super high audience ratings of entertainment programs and super high box office of entertainment movies, Chinese entertainment industry is in full swing. For companies in China, the unpredictably massive traffic and the hidden marketing opportunities behind this phenomenon indicate the coming of a golden age for entertainment marketing. For example, Luzhou Laojiao launched a new alcohol "Taohua Zui" and perfectly embedded it in the TV series "To the Sky Kingdom"(《三生三世十里桃花》). Nongfu Spring invited the two actors starring in drama "Guardian"（《镇魂》） to promote its product Lemon C100, resulting in stock-out of the product due to fans crazy buying behavior. And also in the hot net drama "Story of Yanxi Palace"(《延禧攻略》)， there are very interesting embedded ads. Let's explore how traffic is converted into brand sales without being annoying.
Costco has been ranked 16th on the list of 2017 Fortune top 500 American companies, and 68th on the list of The 2017 BrandZ Top 100 Most Valuable Global Brands. When all bosses are pursuing the continuous growth of gross margin, only Costco is thinking about how to earn less. If the gross margin is 10% this year, could it be 9.5% the next year and 9% the year after next? For all its global chain supermarkets, the gross profit of all goods must not exceed 14%. They shall allow product return or exchange without any reason or limitation on time, prepare enough free food for taste and make every effort to give consumers maximum discounts. Their goods are extremely good, prices extremely low, services better than expected, and even the employee satisfaction is as good as Google. When the rising of e-commerce causes great impact on traditional retail industry, how can Costco achieve so amazing performance?
Consumers pursue a consistent brand experience whenever they shop online or offline. Abundant information display and frequent package changeover can easily confuse people, causing barriers to build brand trust and make purchase decisions.
a. How different your packages should go in various channels or occasions?
b. High brand visibility lies in a holistic brand design, not only packages.
With emerging small communities of various interests, selling a lifestyle is no longer exclusive to MUJI. In addition to specialty stores like Starbucks’ coffee workshops, HEATEA "DAY DREAMER PROJECT" and SUNGTEA stores, many items of distinctive character, such as Bulletproof coffee, non-alcoholic cocktail, fruity sparkling water, and protein bars also gradually come into the lives of different groups to shape their new lifestyles. Compared with the traditional single product strategy, most of these emerging products have a complete and consistent design concept. They convey their brand concepts through different application scenes from product packaging, online interaction to pop-up stores. It is said that snacks and drinks are not rigid demand. But when they are designed to be very desirable or indispensable, wouldn't they be eagerly wanted anymore?
During the short time among 2016-2018, the Chinese local design new star L3 Branding has become the only one at APAC being recognized as Coca-Cola’s Global Tier 1 Creative Supplier. The agency has helped many leading foreign and domestic F&B brands such as Coke, Sprite, Fanta, Mead Johnson, COFCO, Mengniu etc to upgrade the image. And it also won two Gold Pentawards consecutively, which offer a good example of balancing business performance and art pursuit. By sharing these cases, L3 will lead us to:
1. How shall world-known brands walk in local markets by visual upgrade?
2. When big local players recognize the importance of design, how to catch up?
3. How does design help brands most?
Grant Li, Founder & Creative Director, L3 Branding
1. How can big data be applied in the packaging industry?
2. From data mining in different packaging design systems, what conclusions can we get that challenge our general recognition?
3. By rationally reflecting on food packaging, are you optimistic about the development of artificial intelligence in this field?
However innovative the global sparkling water is, Perrier holds an incomparable brand image and status, which is largely due to its bold attempts and persistence on packaging design and their distinctive gameplay. Have you ever heard of picking out the brand designer of the year by votes? When implementing globalization strategy, do you know how a brand discusses with its design agency the brand positioning and packaging strategies on different markets? Can you imagine how a brand cooperates with community leaders on design and limited release in order to deeply root in contemporary artists groups? Here with colorful Perrier sparkling, let’s meet this 'street artist of advance'.
For a brand, the carefully selected and heavily used colour of its overall design can increase brand recognition by 87%. For customers, over 65% believe that they are influenced by color when making final buying decisions. Think about it carefully, have you ever suspected that a product with the wrong color is a fake or cheap copy? In order to strengthen brand memory and ensure the iconic red colour could be reproduced within all its stores, from exterior signage to packaging, the coffee shop chain Costa Coffee has turned to its long-term partner Our Design Agency to work out a brand colour toolkit for its international markets. The colour toolkit has displayed comprehensively the coloring techniques on different substrates and been designed with printers and suppliers in mind. With this book, the iconic red colour can be ensured with the most accurate reproduction on all Costa Coffee publicity materials. Think about Coco-Cola Red, Pepsi Blue and Tiffany Blue. All brands that are expert in colour usage have become big winners. Do you want to match your brand’s personality with your exclusive colour?
Jonathan Ford, CEO & Creative Partner, Pearlfisher
With consumption upgrade, the consumer market has received unprecedented attention from the capital market. Even funds that once invested in the Internet industry have set up consumer funds, such as Gaorong Capital and Joy Capital. Food and beverage market is massive and large-scaled, and many listed companies valued 100 billion yuan are born on the segmented markets, such as Moutai, Wuliangye, Yanghe, Haitian Flavoring & Food, Yili Group, Mengniu Group and China Resources Beer. Meanwhile, with increasingly mature consumer market and retail environment in China, some changes occur, be it market landscape or consumption habits. And some excellent consumer brands, especially the food ones will emerge from the chaos. How do capital funds find companies that might become great in F&B industry? What categories these companies may appear in? How do capital funds find them at their early stage? What are the characteristics of these companies?
Accel Foods and VMG Partners are two well-known American capital funds investing in consumer products, especially those early-stage consumer brands. Although AccelFoods mainly focuses on investment of food and consumer products, they both have invested in some famous American food brands. For example, AccelFoods invested in Harmless Harvest, AloeGloe, and Koia, while VMG Partners invested in Bare, KIND, and Spindrift. Among these brands, Harmless Harvest has been invested by Danone, AleoGleo by Coca-Cola, KIND by Mars and Bare acquired by PepsiCo. How do these early-stage consumer brands funds find the best brands? How do they support these brands after investment?
Kara Cissell-Roell, Founding Partner, VMG Partners
PepsiCo has recently launched an internal incubator and accelerator unit, called The Hive. The unit will foster niche products that already exist within the company, as well as create emerging brands that PepsiCo might incorporate. The success of the company's two new brands, high-end drinking water LIFEWTR and sparkling water ""bubly"", has brought out the advent of the unit. Recently, the unit has also fostered some small brands, such as Maker Oats and Stubborn Soda. In addition to The Hive, PepsiCo has also partnered with The Hatchery, a Chicago-based beverage incubator, to nurture and support new brands. Moreover, PepsiCo has established PepsiCO Nutrition Greenhouse Incubator Program for two phases. In addition to PepsiCo, Chobani, Kraft Heinz and other companies are also supporting early food startups or product innovations through the establishment of incubators or accelerators.
In 2015, cross-border M&As of Chinese companies accounted for 0.9% of GDP, compared with 1.3% in the US and 2.0% in the EU. In addition, the investment amount (in US dollars) of US companies and EU companies is 2.4 times and 3.2 times that of Chinese companies, respectively. Although cross-border investment by Chinese companies is still in its infancy, the amount of overseas investment will increase several-fold in the next decade. Behind the growth, there are also some less eye-catching data, for example, the completion rate of overseas M&As by Chinese companies is only 67%. Even if a transaction is completed successfully, companies often fail to achieve the desired goals. The reason is that Chinese enterprises lack integration ability after mergers and acquisitions. Most Chinese buyers have limited post-investment management ability after the transaction is concluded. Therefore, such kinds of M&As are unlikely to bring synergy gains or real operational integration.
Oreo cookies, Budweiser beer, Burger King, Maxwell House coffee, DQ ice cream, Wrigley, Cadbury, Pacific biscuits, Prince biscuits, Chips Ahoy, and Heinz baby rice cereal, all above foods and beverages and brands you encounter or love much belong to Warren Buffett and his good friend Jorge Paulo Lemann, the richest man in Brazil.
According to market research and consultancy company CB Insight, investors entering the food and beverage industry have tripled since 2013. Since 2014, more and more investors of startups seemed to be food and beverage giants rather than venture capital and private equity firm. In China, although the business for food and beverage is on the rise, there are still very few successful food companies that have deployed strategic investment in or M&A against startups. What are the concerns behind the phenomenon?Will Coca-Cola’s strategic investment in Lepur bring hope for investors and startups?