About BrandSolutions Blogs

Every month I read many newspapers and magazines, focusing on those publications reporting trends in Branding. My goal is to identify branding trends in America through a study and analysis of the reporting of the best publications I have found that cover branding news. I also input my personal commentary and branding observations.

The publications I read and recommend are:

AdWeek Magazine - http://www.adweek.com/aw/index.jsp

Advertising Age Magazine - http://www.adage.com

American Demographics - http://www.demographics.com

BrandWeek Magazine - http://www.brandweek.com/brandweek/index.jsp

Business Week - http://www.businessweek.com

Newsweek Magazine - http://www.msnbc.msn.com/id/3032542/site/newsweek

The New York Times - http://www.nytimes.com

The Seattle Times - http://seattletimes.nwsource.com/html/home/index.html

The Wall Street Journal - http://online.wsj.com/public/us

I hope you'll enjoy reading about food branding. I certainly enjoyed putting this "blog" together for you.

A quick note regarding the format of this blog. Read the following sections and commentaries as stand-alone stories.some short, some longer. At some point in the future, I may integrate all the stories into a "best practices" paper on Food Branding.

The food branding trends and opportunities as I see them:

• Now is the time to start an on-line chocolate store.
• Low-carbs are here to stay – food marketers are working hard to adapt.
• Organic and natural food is here to stay and are growing.

I give many thanks to the editors, writers, researchers, and reporters that wrote all of the great stories and articles below .

I welcome your own comments, insights and wisdom. Email me at cpettis@brand.com
   - Chuck Pettis

For the Love of Chocolate
Newsweek magazine, March 7, 2005

Sales of premium chocolates is increasing 20% per year. Like wine, fine chocolate stands for gourmet aspiration. Like Starbucks, quality chocolate fulfills our desire for low-cost indulgence and reward. Dark chocolate is quite different than M&Ms; it is fragrant, complex in taste and usually lists its cocoa content on the wrapper. And the taste! High-cocoa chocolate is distinctly different than a grocery store candy bar. The taste is rich, the aroma can be arousing, and pleasure begins the minute the chocolate begins melting on your tongue .

I confess. Both my wife and I love fine, high-cocoa chocolates. My favorite is Dolfin Noir 88% de Cacao Chocolat. My wife’s favorite is the Domori Grand Blend Line. Both are available on-line at Chocosphere.

Chocolate Story is Semisweet
The Seattle Times, April 15, 2004

While demand for Nestle and Hershey chocolate is down, profits of premium chocolate (contains at lease 70% cocoa) brands such as Lindt & Spruengli are surging.

Nor Merely Pursuing Happiness, Americans Are Good at Catching It
AdWeek Magazine, January 19, 2004

According to Gallup, 95% of adults are either very or fairly happy. Greater income doesn’t provide greater happiness (once a comfortable subsistence level is reached), but the Journal of Happiness Studies has found a correlation between happiness and hedonistic (i.e., frequent sex and use of stimulants) behaviors. “The relation between happiness and consumption of stimulants follows an inverted U-curve, spoilsports and guzzlers are less happy than modest consumers.”.

Inside McDonald's
The New York Times, November 9, 2004

McDonald’s new “global chief marketing officer” Larry Light is turning things around at McDonald’s. I knew Larry Light back when he was chairman of his consulting firm, Coalition for Brand Equity and included quotes from him in my book TechnoBrands. Larry is a really good brand strategist. He has led McDonald’s from a “We” attitude (“We do it all for you.”), to a “Forever young” attitude (“I’m lovin’ it.”) Positioning has changed from “convenient and cheap” to “the visit to McDonald’s is the simplest pleasure.” Functional to emotional – excellent move. Every ad in every market uses the “Ba da ba ba ba” five-note signature, the same font and logo, and a focus on “one person’s life and why they love McDonald’s.”.

Check out the new “I’m lovin’ it” advertising at: http://www.mcdonalds.com/usa/fun/tv.html and elsewhere on the McDonald’s web site .

Big Mac's Back
Advertising Age magazine, December 13, 2004

Called one of the "most spectacular corporate turnarounds ever," McDonald's wins Ad Age's Marketer of the Year Award. Sales are up 7.9% worldwide due to a turnaround based on "better marketing, better products and better operations." Larry Light's strategy was to turn McDonald's 46 million current customers from "likers' into lovers.'" Light's job description for franchisees and store managers was to "make us proud again" and "provide clear leadership." This strategy was called "Leadership Marketing;" Larry always did have a way with naming!

Stocking a Global Pantry
The Wall Street Journal, May 24, 2004

Unilever’s brand strategies according to Co-Chairman Niall FitzGerald:

• Consistently seek where the waves are going, and be there.
• A brand will remain relevant as long as you keep innovating.
• There are no tired brands, only tired brand managers.
• Make sure the language used inside the company is relevant to the consumer.
• Pay attention to language.
• Vis it consumer homes.

Does It Pay to Buy Organic?
Business Week, September 6, 2004

Organic food sales were $10 billion in 2003 up from $178 million in 1980. Organic food is hitting mainstream grocery stores. Organic food, as regulated by the USDA, must be produced without synthetic pesticides and fertilizers. Antibiotics, growth hormones and feed made from animal parts are banned. The dangers of pesticide-contaminated food are highest for children and fetuses. Links have been found between pesticides and impaired fetal growth, neurological and reproductive damage, etc. The most contaminated foods include: peaches, strawberries, apples, spinach, nectarines, celery, pears, cherries, potatoes, sweet bell peppers, raspberries and imported grapes. Those of us who have been to other countries around the world can take some solace in the fact that “ America’s food supply is among the safest in the world.”

The Green Machine
Newsweek magazine, March 21, 2005

Just before Whole Foods – the world’s leading natural and organic foods supermarket – opened its new Bellevue, Washington store, competitor QFC completely renovated its store. Opening week, QFC’s parking lot was practically empty .

Whole Foods is an outgrowth of the natural food movement that started back in the 70s. Now, with 32,000 employees and 168 locations in North America and the United Kingdom, Whole Foods is mainstream. This is a company with a mission: Whole Foods, Whole People, Whole Planet. It’s a successful mission at that: comparable store sales were up 14.9% last year; most grocers can’t top 5%. They hope to double the number of stores by 2010.

Kraft Limits on Kids' Ads May Cheese Off Rivals
The Wall Street Journal, January 13, 2005

Taking one first step towards more responsible marketing of food to children, Kraft plans to stop advertising junk food to kids under 12, but only on programs specifically targeted to that age group. Oreo ads, for example, still star young children. Kraft is keeping its cartoon characters – Shrek and SpongeBob SquarePants – on product packaging and promotions. Cartoon characters are one of the most effective techniques of branding to children.

With Food Sales Flat, Nestlé Stakes Future on Healthier Fare
The Wall Street Journal, March 18, 2004

Nestle is doing experiments to find out how to manipulate odor and taste to make people feel full. Known as “phood,” these nutritionally enhanced, premium-priced products are designed to provide health benefits in addition to food value. Examples: the Nestival breakfast bar is designed to make people feel full more quickly; a milk protein that fights cavities; LCI yogurt that boosts the immune system.

Hail to the Low-Carb King
BRANDWEEK Magazine, October 20, 2004

The late Dr. Robert Atkins was awarded BrandWeek’s Marketer of the Year honor. More than 60% of Americans suffer from obesity (a 5’ 9” tall person weighing 203 pounds or more). Atkins mission was to “change the way the world eats” and “eradicate obesity and diabetes.” The Atkins diet works quite quickly and has created not only a growing line of 120 packaged foods and nutritional supplements for Atkins Nutritionals and has also literally changed the way many people eat: an estimated 1/3 of Americans are now on some form of the Atkins diet, eating meat, eggs and dairy and giving up bread, potatoes, rice, pasta, fruits, sweets, and starchy vegetables. I tried it myself and like it, but I do miss pasta!

Diet Inc.
American Demographics Magazine, December 2003/ January 2004

Dr. Atkins goal was to alter the food pyramid (recently updated), primarily replacing bread, cereal, rice and pasta with meats, poultry and fish. Today, the market for low-carb, Dr. Atkins products is exploding. Market researcher Mintel International reports that there are 970 low-carb products currently on sale worldwide versus only 98 just two years ago.

Low-carb Craze Blitzes Food Biz
Advertising Age Magazine, January 5, 2004

The low-carb food trend is referred to as “the most dramatic shift in consumer behavior since the low-fat craze of the mid-1980s.” 40% of consumers are watching their carb intake.

Addicted to Mother's Love: It's Biology, Stupid
The New York Times, June 29, 2004

A mother's love is like a pain-relieving opiate drug. Crying brings help, increasing attachment between the child and the mother. In a research study with monkeys, attention and comfort from nurturing parents actually altered the young monkey's genes for the better, making them more likely to be nurturing parents themselves, thereby reducing the risk that the young monkeys take on disruptive behaviors.

Beer
AdWeek magazine, April 26, 2004

Light-beer (i.e., low-carb) sales make up half of the $60 billion domestic beer market.

Related Web sites:
http://www.anheuserbusch.com/overview/abi.html
http://www.coors.com/brews/coorsLight.asp
http://www.millerbrewing.com/brandsBreweries/millerLite.asp

Low-carb Craze Expands Profits for Restaurants
The Seattle Times, July 29, 2004

Low-carb foods, usually foods without a bun or crust, are helping restaurants make more profits. Guests will pay the same for less. Low-carb offerings also bring in new customers. I, and others like me, routinely eat only the toppings off the pizza, leaving the crust. So Roundtable Pizza introduced Skinny Crust. When I stop at Subway, I go for a “7 Under 6.”

Paws Off The Carbs
Newsweek magazine, April 26, 2004
www.herowithin.com Carol Pearson

30 percent of dogs are overweight. The solution: low-carb dog food. Is your dog overweight?

Atkins World
Fortune Magazine, January 12, 2004

Splenda “sugar blend,” while 600 times sweeter than sugar, does not raise blood sugar levels and the low-carb sweetener. The sweetening ingredient in 3,000 products has redefined how people think about sweetness. My wife loves it.

Coke: Wooing the TiVo Generation
The Seattle Times, March 29, 2004

Coke is testing alternative media to reach teens: The Coca-Cola Red Lounge for teens and www.myCokeMusic.com.

Downsize This! After Years of Supersizing, Food Makers Shrink Portions (And Fatten Profit Margins)
The Wall Street Journal, January 27, 2004

Americans have been programmed to eat everything put in front of them. The bigger the portion, the more they eat. They have been conditioned that quantity equals value. From soft-drink bottlers to restaurants, bigger – supersizing – with only a small incremental cost has been better. That’s part of the reason that so many Americans are obese. Now food marketers are finding that many consumers would like smaller portions in the form of smaller cans of Coke and downsized restaurant portions.

Big Food Lobbies FDA On "Low-Carb" Ruling
BrandWeek magazine, October 18, 2004

When you see “low carb” on a food label, what does that mean? Not much it turns out. No one, including the FDA, can agree on the standard for low-carb food. So, anyone can call their product “low-carb” regardless of how many carbs they really contain. Solution: read the side of the label and decide for yourself.