Strategic #marketing and #innovation #trends, as shown on top #food&beverage companies on the recent #CAGNY conference (Feb., 2014). #SchieberResearch has examined selected companies in order to gather major marketer trends expected to impact the industry going forward. **Please note that the 2015 version is also available**

1. F&B Company Strategies
* Consumer Analyst Group New York
CAGNY* 2014 Summary
Schieber Research | February, 2014

2.  This presentation demonstrates the strategic trends regarding innovation and
marketing, as shown on top food & beverage companies on the recent
Consumer Analyst Group New York conference (Feb., 2014).
 We have researched selected companies in order to gather major marketer
trends expected to impact the industry going forward.
Schieber Research is a premium market research boutique, providing tailor-made
reports and competitive intelligence reports. We assist Israeli and Global firms, as well as
strategic consultants, to make decisions which take into consideration the relevant
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3. Offering Solutions
Fitting new lifestyles and markets
Internal & external joint ventures,
open innovations and M&A’s
Leveraging key brand through
new product platforms
Shopper Marketing
Shopper Engagement along the
Path to Purchase
Leveraging Retailer / Marketer
insights
Retailer / Marketer Co-Operation
Leveraging Consumer Insights
Digital Lifestyle
Health & Wellness – Combined with Indulgence
and Convenience
Identifying Niches and
Demographics
As demonstrated by the CAGNY presentations:

4.  F&B manufacturers are researching the
shopping and consumption motivations of
various consumer / shopper groups
and are responding accordingly
 Main consumer trends mentioned on
CAGNY:
◦ Communications – shift towards
digital and mobile
◦ Health & Wellness – search for better
for you food and beverage, meaning
fresh and “real”, without sacrificing
indulgence and flavor
◦ New consumption opportunities –
snacking and smaller meals; the rise of
breakfast
◦ Macro changes – demographic
changes, urbanization affecting
shopping habits
◦ Sustainability is a must
Kraft Foods
Coca-Cola
Hershey

5. Coca-Cola
Pepsico

6.  Main demographic and target changes
discussed:
◦ A rising 55+ consumer group
◦ Millennials / Generation Y
◦ The Modern Family – new family
structures
 The companies concluded that
focusing on these new markets
requires customized product,
marketing, selling and communication
solutions: say good-bye to
“One Size Fits All”!
Pepsico
Campbell Soup

7.  Boomers / 55+ Consumers
◦ Have specific health needs
◦ “empty nesters” – require smaller
packaging, smaller portions; one / two
serving ready meals
◦ Shopper needs – larger, clearer labels
and nutritional info
Conagra
 Millennials: Gen Y
◦ Digital natives, use mobile for everything
◦ Friends are top influencers. Love to share
◦ Believe in values such as: sustainability,
community, giving back. Value “Good” brands
Campbell Soup targeting Gen. Y
Pepsico Gen. Y
Communication
* Are marketers missing
opportunities regarding
Energy solutions to the
55+ consumers?

8.  Marketers are adapting to the changes in media consumption, and are
allocating more resources to digital and social media, with multi-channel and
omni-channel marketing.
KRAFT FOODS: utilizing the company’s
digital assets in order to connect to
consumers and shoppers through
content and value offering

9. General Mills
Hershey
Budget re-allocation

10.  F&B Manufacturers continue to
develop products which cater to the
“new” health and wellness needs:
“real” ingredients, fresh food, more
protein and fiber, and claims such
as energy and anti-oxidants (more
on the health and functional trends on
the Schieber Research Health Trends
presentation).
 The companies also invest in
market education regarding health
and physical activity, for reasons of
responsibility/ sustainability and
regulation, as well as brand
positioning.
Coca-Cola
Campbell Soup

11.  Companies are aware that consumers will not give up indulgence and taste for
the sake of healthier food; as a result, successful innovations combine health and
indulgence.
Kellogg’s
Kraft Foods
General Mills

12. Mondelez: Consumption motivations
General Mills:
addressing new
consumption
opportunities
while offering
flavor and
wellness
Kellogg’s: Responding to the
changes in breakfast needs
In addition, the companies address the changes in eating lifestyles: snacking and
consuming smaller meals around the clock; more consumption away from home / on the
go; and the rise in breakfast opportunities.

13.  Shopper Marketing has become highly meaningful for companies. It is based on
leveraging manufacturer data regarding the shopper – as well as sharing of data
between retailers and manufacturers, aimed at increasing synergies and total buying.
 Trade management in co-operation with retailers was one of the main issues
discussed on CAGNY this year, mainly the shifts in buying channels, and the rise of
online commerce and neighborhood stores.
Campbell Soup
Coca-Cola General Mills

14. Conagra: Offering different price points to
answer different motivations of different
shoppers (or same shopper in different
opportunities)
Mondelez: designing the POS
according to shopping insights (e.g.,
crackers with cheese, oreo next to milk)
Hershey: positioning the new
chocolate spreads next to bread as
well as next to bananas – to suggest
new usage opportunities

15.  Conagra: Joint PL +
Brand offering
 Hershey: solving the under-the-counter
untapped space problem

16. Conagra: Product packaging used to
communicate brand messages –
premium / healthy / natural Pepsico: Point of purchase communicated
the brand messages tailored to a specific
crowd
Hershey: brand
messages
match year-
round shopping
events

17.  A strategic shift from brand focus, to solution focus, in order to answer a specific
market’s needs, often combining brands and categories
 Solutions include using open innovation and JVs with competitors who provide
completing capabilities, to shorten TTM
 Other solutions require bolt-on / transformative acquisitions.
Green Mountain Coffee
Roasters / Keurig : catering to
various user needs in the coffee
category, providing a platform
for external popular brands, JVs
with Starbucks and Coca-Cola
Coca-Cola

18. Kraft Foods + Mondelez: leveraging brands across categories for product and point
of sale implementation of consumer insights
Pepsico:
enhancing ore
brands through
JV’s, including
with Foodservice
companies

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