Food and Beverage corporations find themselves facing several challenges as the global economy slowly comes back. Not only must they outpace fierce competition, but they must entice weary consumers who remain cost-conscious and focus on value purchases.
These challenges can be seen in quantitative measures as the Aberdeen Group has determined that process manufacturers have seen a dip in revenue and operating profits by 4.5% and 4.8% respectively.1
Yet, they expect to see growth of 8.7% and 7.9% for 2010. With costs expected to remain stable, the difference is attributed to Formulation Best Practices.
These best practices not only include a cohesive solution, but a better way to capitalize on trends and legislation.
What are the newer trends?
Government agencies and watchdog groups have been calling out for a complete overhaul of how Food and Beverage corporations create and market their products—making them healthier with lower fat, sugar, and calories/energy.
“And we need you not just to tweak around the edges but to entirely rethink the products that you’re offering, the information that you provide about these products and how you market those products to our children,”
—U.S. first lady, Michelle Obama. 2
Mintel’s findings3 also show consumer report as their trends lean towards healthier products with easier-to-understand packaging claims
- Symbol Overload
- Sodium Reduction
- Local Gets Stretched
- Simple Made Special
- Color Coding for Convenience
- Iconic Budget Brands
- Gen Y Cleans Up
What is the connection with the trends and legislation?
As consumers seek to become healthier, they look to the packaging to guide them. The nutritional analysis has so far been relegated to the side or back, but now companies have sought out new icons to signify healthier options. Government agencies seek to standardize and regulate the nutritional claims for greater accuracy, and best practice corporations will be recognized as the ones who proactively prepare.