Discover why slow growth £billion categories are providing massive innovation opportunities
Written by Dr. Adrian Massey, C’go Drinks: The opportunities to satisfy consumers with innovative food-to-go propositions are endless, particularly as our lifestyles, attitudes and market conditions continue to evolve.
In my previous lunch! article, on 31 August, I uncovered ‘The secret behind why ‘new & different’ products are taking over ‘tried & true’.
The article described why busy lifestyles are forcing consumers to actively seek out new and innovative products in an attempt to adapt to our ever-increasing daily demands. It also referenced a Forbes article which cited how the historical social value of loyalty is no longer valid [1]. When combined, both factors compound to perfectly explain why ‘new & different’ products are increasingly being favoured over the ‘tried and true’ established brands.
This creates a massive opportunity for retailers, distributors, wholesalers and of course food manufacturers to innovate and provide new products that satisfy today’s busy consumer.
Within this there will of course be some huge winners. A good example, of course, is the food to go market, which is estimated to hit £23.5bn by 2022, up from £17.4bn by the end of 2017, as shoppers’ preference for eating on the move continues to grow [2]. Within the whole on-the-go arena Breakfast drinks, in particular, have seen a growth from £0 to 20 million, in under 4 years, and touted to grow to £100 million by 2020 [3].
In contrast, however, there have been some big losers. Established brands are really now feeling the pinch with 90% losing market share in low growth categories [4]. One particular category is the mundane breakfast cereal category, now worth £2.2 billion. It grew steadily, with its origins starting over 100 years ago, as it provided wholesomeness, ease and convenience. However, it is now in decline, with sales down a massive £78 million in the past year [5]. Simply put, breakfast cereal has failed to keep up and evolve with demands of today’s consumer.
Breakfast cereal, and other categories like it, therefore provide a massive opportunity for innovation.
It is no surprise that consumers now expect products to fit their busy lifestyles and to be formulated responsibly, without any gimmicks. The ‘holy grail’ is, of course, for the consumers to feel they have saved time but without having to compromise in any way. To take the burden off their busy lifestyles whilst still enjoying the products that they love in a wholesome way.
Certainly, the days of sitting down at the table and eating cereal fast are disappearing. This has resulted in the on-the-go breakfast market expanding with breakfast biscuits, cereal bars or breakfast drinks. However, that holy grail of convenience and enjoying the foods they love still hasn’t been reached for the breakfast category. The consumers are still forced to compromise.
But why?
In the UK, we consume more breakfast cereal, per person, than any other country in the world [6]. Yet, little or no wholegrain cereal is actually used in many on-the-go breakfast products, despite its popularity in the UK market. Eating wholegrain cereal is important because it includes all three parts of the grain, so that all of their natural goodness can be enjoyed. In addition to the absence of wholegrains, the consumers’ demand for simple formulations and less processed foods is growing. “Artificial’: Public enemy number 1” was one of Mintel’s top food trends last year [7]. However, on-the-go breakfast products frequently contain soluble fibres, ‘stabilising’ agents and other additional ingredients in an attempt to mimic a bowl of cereal. All of which are taking breakfast away from being a natural and wholesome experience to being more artificial as the ingredient lists get longer and more complex.
It is for this reason that C’go was developed, to effectively meet the demands of the consumers busy lifestyles whilst also keeping a simple ‘less is more’ approach; with real wholegrain cereal and less than 10 ingredients, as opposed to the frequent 20-30 that are often declared in other alternatives.
C’go was formulated to deliver an entire bowl of British multi-wholegrain cereal along with Yorkshire milk and 7 essential B-vitamins, in just one 250ml bottle. The essential vitamins contribute to reduced tiredness, fatigue and normal energy yielding metabolism, as well giving 1/3 recommended daily intake.
C’go, and other products like it, firmly complement the changing lifestyles, attitudes and evolving market conditions to inject innovation back into low growth £billion categories.
Written by Dr. Adrian Massey, C’go Drinks. Exhibiting at lunch! 2017 on stand SU-9.
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Notes
[1] Kathleen Kusek. “The Death Of Brand Loyalty: Cultural Shifts Mean It’s Gone Forever”. www.forbes.com. N.p., 25 July 2016. 12 August 2017.
[2] IGD Retail analysis. “UK food-to-go set for continued outperformance”. www.retailanalysis.igd.com. N.p., 9 August 2017. 14 August 2017.
[3] Amy North. “Can breakfast drinks really hit £100m in the next five years?” www.thegrocer.co.uk. N.p., 27 August. 5 July 2017.
[4] Catalina. “Catalina-mid-year-performance-report-finds-challenging-market-for-many-of-top-100-cpg-brands. www.catalina.com. N.p., 30 September. 14 August 2017.
[5] Telegraph. “Death of the breakfast cereal as figures reveal more of us are eating snacks from coffee shops”. www.telegraph.co.uk. N.p., 28 December. 14 August 2017.
[6] Euromonitor International (via General Mills Annual Report).
[7] Carol Wiley. ‘Less is more’: Trend toward fewer ingredients to continue in 2016”. www.fooddive.com. N.p., 3 December 2015. 14 August 2017.
