by Marion Nestle

Search results: food strategy

Sep 8 2021

Marketing strategy of the week: impulse buys

As I discussed in my book, What to Eat, the entire purpose of a grocery store or supermarket is to encourage sales, particularly impulse buys of profitable items.  Food and beverage companies pay stores to place their most profitable products where customers can most easily see them.

This makes checkout counters prime grocery real estate.

Mars Wrigley tells you how this works.

Mars Wrigley showcases new impulse shopping solutions and products

Mars Wrigley said its multifaceted merchandising solutions will shape impulse throughout the shopper journey and provide an effective retail experience, be it at curbside pick-up, online or in-store.

The company is set to work alongside retail partners to implement solutions that reimagine impulse at checkout and identify new spaces in aisle and digitally to optimise category presence and drive conversion [i.e., sales].

Spearheading this growth is its new Accelerating Impulse Moments (AIM) insights platform. This four-pillar platform consists of conversion strategies for retailers across all channels in stores and online, with Snacks Aisle Optimization, Secondary Display Growth, Transaction Zone Reinvention and Digital Solutions Execution.

These strategies will help retailers shape impulse throughout the shopper journey to create an effective and engaging omni-channel experience.

Comment: You are the subject of this “effective and engaging omni-channel experience.”  This may look as if it is about helping grocers market products, but it is really about getting you to buy candy and chewing gum.

Jul 21 2021

UK Government to restrict TV and online junk food ads to kids (by the end of 2022)

The UK government is actively trying to promote healthier diets.

On June 24, the British government announced:  Introducing further advertising restrictions on TV and online for products high in fat, salt and sugar [HFSS]: government response

Rationale: “Current advertising restrictions for HFSS products during children’s TV and other programming of particular appeal to children are insufficient to protect children from seeing a significant amount of unhealthy food adverts on TV, and do not account for the increasing amount of time children spend online. Analysis from September 2019 demonstrated that almost half (47.6%) of all food adverts shown over the month on ITV1, Channel 4, Channel 5 and Sky1 were for HFSS products and this rises to nearly 60% during the 6pm to 9pm slot.”

Research basis: The Advertising Standards Authority’s  position paper on Advertising to Children.

The final policy

  • By the end of 2022, establish a 9:00 pm TV watershed for HFSS products [meaning this applies until 9:00 p.m.] as well as restrict paid-for HFSS advertising online.
  • The HPSS ad watershed applies to all on-demand programme services (ODPS) under the jurisdiction of the UK.
  • The restriction of paid-for HGSS ads onlinealso  applies to non-UK regulated ODPS.
  • The policy will be evaluated 5 years post implementation, in 2027.

Critique

From the food industry: Will the UK’s junk food marketing clampdown combat childhood obesity?  The UK Government announced plans to limit the advertising of unhealthy foods last week. The food and advertising industries expressed ‘disappointment’ at ‘draconian’ measures, while health campaigners welcomed the news but voiced concern over possible future loopholes. With so many complex and interlinked issues driving childhood obesity rates, the most important question remains: Will it work?… Read more 

From The Guardian: “UK government’s plans for pre-9 pm ban on junk food TV adverts criticised,”

Government plans to restrict junk food advertising on television and online have been criticised by campaigners who say they contain too many exemptions to affect rising levels of obesity in the UK.

The new rules, which were announced on Thursday and come into force from the end of next year, will ban adverts for products deemed to be high in fat, salt and sugar (HFSS) before the 9pm watershed. Paid-for ads on sites including Facebook and Google by big brands will also be banned.

However, the government has allowed numerous exceptions and carve-outs. Companies will be able to show marketing on their own websites and social media accounts. The restrictions will not apply to marketing by smaller companies of fewer than 250 employees.

So: Are these policies a force for good?  For this, we will have to wait and see.

But all measures aimed at restricting food marketing to children are worth considering, and the UK government is at least taking the issue somewhat seriously.

Tomorrow: The UK’s new Food Strategy Report.

Jun 9 2021

Nestlé admits 70% of its products are junk foods

I always like writing about Nestlé, the huge multi-national food company based in Switzerland, because it gives me the opportunity to explain that no, I am not related to it (although colleagues have suggested that I claim to be the black sheep of the family).

Judith Evans, writing in the Financial Times, had a big story about the company (behind a paywall but can also be read at the Irish Times site).

Its headline: “Nestlé says majority of its food portfolio is unhealthy.”  She based her story on a leaked internal document.

Nestlé, has acknowledged in an internal document that more than 60 per cent of its mainstream food and drinks products do not meet a “recognised definition of health” and that “some of our categories and products will never be ‘healthy’ no matter how much we renovate”….Within its overall food and drink portfolio, some 70 per cent of Nestlé’s food products failed to meet that threshold [a rating above 3.5 under Australia’s health star rating system], the presentation said, along with 96 per cent of beverages – excluding pure coffee – and 99 per cent of Nestlé’s confectionery and ice cream portfolio.

Because infant formula, pet food, coffee, and the health sciences products were not counted in this analysis, the data apply to about half of Nestlé’s €84.35 billion ($102.6 billion) total annual revenues—Nestlé is indeed Big Food.

I was interviewed for this story, and quoted:

Marion Nestle (no relation), visiting professor of nutritional sciences at Cornell University, [*] said Nestlé and its rivals would struggle to make their portfolios healthy overall.

“Food companies’ job is to generate money for stockholders, and to generate it as quickly and in as large an amount as possible. They are going to sell products that reach a mass audience and are bought by as many people as possible, that people want to buy, and that’s junk food,” she said.

“Nestlé is a very smart company, at least from my meetings with people who are in their science [departments] . . . but they have a real problem . . . Scientists have been working for years to try to figure out how to reduce the salt and sugar content without changing the flavour profile and, guess what, it’s hard to do.”

[*]  Oops.  That should have been Professor Emerita at NYU.  I asked for a correction and thought I had gotten one, but maybe only in the Financial Times.

I was also interviewed by Margarita Raycheva at IHS Market Connect(formerly Food Chemical News, and also behind a paywall):

Marion Nestle says labeling systems fail to account for ultraprocessed foods

While Nestlé’s plans to improve nutritional profiles have sparked some hope in nutrition experts like Hercberg, at least one other leading expert remains skeptical. According to Marion Nestle, a leading nutrition expert and professor at New York University, successful efforts to improve nutrition would have to go beyond meeting thresholds set through label ratings.

“What is at issue in this discussion is whether a somewhat healthier option is a better choice or even a good choice,” Nestle told IHS Markit on Monday (June 1).

While label-rating systems may flag some nutrients of concern, they do little to reduce consumption of ultraprocessed foods, which have been linked to both obesity and chronic disease, Nestle noted.

“NutriScore gives points for less sugar and salt, even to foods that are still ultraprocessed, and so do other nutrient-based front-of-package labeling systems, making all of them gameable by taking off a gram or two,” she said.

“Calling for reduction of consumption of ultraprocessed foods is much simpler, but it would exclude most of Nestlé’s products, even with tweaks,” she added.

The Swiss food giant has confirmed it will update its nutrition and health strategy after British newspaper the Financial Times published leaked internal documents acknowledging that nearly 70% of its main food and drinks products, making up about half of Nestlé’s CHF92.6bn total annual sales, do not meet a “recognised definition of health” and that “some of our categories will never be healthy”…. Read more

No matter how much Big Food companies say that want to promote health and wellness, they can only do so if their products continue to make the same kids of profits as do ultra-processed junk foods.  The company knows this and got caught saying so in public.

As for the uncounted other half of this company’s revenues? I’m keeping an eye on pet food.  Pet Food Industry reports that Nestlé is investing 1 billion yuan in pet food manufacturing in China.

Mar 25 2021

Food company marketing for the elderly

I’m always interested in how the food industry tries to sell products to specific groups.  Here’s one of FoodNavigator’s Special Editions (collections of articles) on products the food industry is designing and trying to sell for older adults.

Special Edition: Healthy ageing: Food for an older population

Europe is ageing. By 2050 the population of over 65s is expected to reach almost 150m in the region. Gains are expected for products that cater to this older demographic by boosting immunity, as well as bone, joint, muscle, cognitive, heart, skin, eye and digestive health. FoodNavigator looks at some of the innovation strategies food makers are developing to meet the needs of older people.

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Jul 13 2020

Food marketing trick of the week: Burger King and Swedish passports

A reader, Max Hultberg, sends this amazing item, which I thought was a joke but apparently is not:

Hey Marion!

I’d like to pitch this news tip from Burger King Sweden.

Repurpose your Swedish passport as a stamp card at Burger King

Sweden’s been criticized for their relaxed COVID-19 strategy, which has made it difficult for citizens to travel abroad. Even when some countries start open up, Swedes in particular are not welcome.

So Burger King Sweden now offers another use for dust collecting passports – by letting you repurpose them and use them as stamp cards. Instead of a regular passport stamp, you’ll get a BK stamp. Each new stamp equals one free burger from their new ”World Gourmet”-series.

As I keep saying, when it comes to food marketing, you can’t make this stuff up.

You can even watch a film of how this works.

Apr 21 2020

USDA announces COVID-19 food assistance

The USDA has established a new Coronavirus Food Assistance Program (CFAP).

This has $19 billion to distribute to farmers, ranchers, and consumers.

Cutting through the rhetoric, the new program has two parts:

  1. Direct Support to Farmers and Ranchers—$16 billion: for direct support and marketing costs.  [Note: producers say this is not enough].
  2. USDA Purchase and Distribution—$3 billion: for buying fresh fruits and vegetables, dairy products, and meat products at the rate of $100 million per month, each.  “The distributors and wholesalers will then provide a pre-approved box of fresh produce, dairy, and meat products to food banks, community and faith based organizations, and other non-profits serving Americans in need.”  [Note: Fruit and vegetable producers say this is not enough].

In addition, the USDA says it will:

  • Allocate $873.3 million to purchase a variety of agricultural products for distribution to food banks, as determined by industry requests, USDA agricultural market analysis, and food bank needs.
  • Under previous acts, allocate $850 million for food bank administrative costs and USDA food purchases, of which a minimum of $600 million will be designated for food purchases, as determined by food bank need and product availability.

Comment 

  • The bulk of this program goes to Big Ag—on top of the $22 billion or so Big Ag got in compensation for trade losses last year.
  • The much smaller Purchase and Distribution program is to deal with the shocking problem of producers destroying foods while hungry people line up for food distribution from food banks overwhelmed by the demand.
  • USDA is using this to reinstate its “harvest box” proposals as a means to replace SNAP benefits.
  • USDA is not backing off from its other long-term strategy to do all it can to reduce SNAP enrollments and benefits, or from Trump Administration public charge policies that put anyone who is not a citizen at risk of never getting citizenship or of deportation if they apply for public benefits.
  • These measures are expensive band-aids.  They do not address fundamental flaws in agricultural support programs.
  • Maybe this crisis will at last cause Congress to start supporting sustainable, resiliant agriculture?  Hey, I can dream.

Here is everything else the USDA says it is doing

the USDA announcement also says what it is already doing  “to make sure children and families are fed during a time of school closures and job losses, as well as increase flexibilities and extensions in USDA’s farm programs to ensure the U.S. food supply chain remains safe and secure.”  What follows is a direct quote.

Feeding Kids and Families

  • USDA expanded flexibilities and waivers in all 50 states and territories to ensure kids and families who need food can get it during this national emergency.
  • USDA is partnering with the Baylor Collaborative on Hunger and Poverty, McLane Global, PepsiCo, and others to deliver more than 1,000,000 meals a week to students in a limited number of rural schools closed due to COVID-19.
  • USDA authorized Pandemic EBT in Michigan and Rhode Island, a supplemental food purchasing benefit to current SNAP participants and as a new EBT benefit to other eligible households to offset the cost of meals that would have otherwise been consumed at school.
  • USDA expanded an innovative SNAP online grocery purchase pilot program in Arizona and CaliforniaFlorida and Idaho, and DC and North Carolina, in addition to Alabama, Iowa, Nebraska, New York, Oregon and Washington.

Actions to Ensure a Strong Food Supply Chain

Whole of Government Response in Rural America

  • USDA released The COVID-19 Federal Rural Resource Guide (PDF, 349 KB), a first-of-its-kind resource for rural leaders looking for federal funding and partnership opportunities to help address this pandemic.
  • USDA opened a second application window (April 14, 2020 to July 13, 2020) for $72 million of funding under the Distance Learning and Telemedicine (DLT) grant program.
  • USDA Rural Development lenders may offer 180-day loan payment deferrals without prior agency approval for Business and Industry Loan Guarantees, Rural Energy for America Program Loan Guarantees, Community Facilities Loan Guarantees, and Water and Waste Disposal Loan Guarantees.
  • USDA will use the $100 million provided for the ReConnect Program in the CARES Act to invest in qualified 100 percent grant projects.

For all the information on USDA’s work during the COVID-19 pandemic and resources available, please visit www.usda.gov/coronavirus.

 

 

Sep 12 2019

FoodNavigator-USA’s articles on food litigation

Food law used to be so boring that hardly any law schools taught anything about it.  Now it’s a hot topic.  To understand why, take a look at FoodNavigator-USA’s collection of articles, titled Food in the dock: Food & beverage litigation 

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Jan 3 2019

FoodNavigator.com on what’s happening in the dairy industry

I think this collection of articles from FoodNavigator on the dairy industry is especially clear in revealing three notable trends: (1) the ongoing decline in milk consumption, (2) a more recent decline in yogurt consumption, and (3) an increase in production, availability, and marketing of dairy products high in fat.  Take a look:

 Special Edition: Dairy innovation

It’s been a challenging year for many dairy brands, with continued weakness in fluid milk and yogurt categories and growing competition from dairy-free alternatives. But there has been no shortage of innovation, spanning everything from ‘intentionally less sweet’ high protein yogurt launches to  whole milk and even ‘triple cream’ offerings as fat roars back in some parts of the category.

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