Alan Walsh, Strategic Insights & Planning, Bord Bia – Irish Food Board
High Growth Forecast
Increasing evidence supporting the benefits of cannabis in treating certain diseases and ailments has spearheaded a shift in attitudes surrounding the drug.
The legal cannabis market (29 of the 50 states) in the US has surpassed $9billion, while the value of the market in Canada is expected to reach $1.3billion by year end 2018. A report by Arcview Group has estimated that worldwide spending on cannabis will reach $57billion by 2027. While North America is certainly leading the way in terms of legalisation, several other markets have introduced legislation for medicinal use e.g. including Germany, South Africa and Australia. While Spain and Portugal have fully decriminalised usage (Stylus, 2018).
Cannabis Infused Products
Rebel Coast Winery is a California based winery specialising in cannabis infused wine. However, due to California law prohibiting mixing products with both alcohol and cannabis, the alcohol in their flagship Cabernet Sauvignon Blanc is removed.
Willie’s Reserve is perhaps one of the first instances of a celebrity launching their own range of cannabis products. Launched in 2015 by Long-time advocate Willie Nelson, products include cannabis pouches, pre-rolled ‘joints’ as well as edibles including cannabis infused chocolate and sweets.
Californian Dreamin’ are a range of all natural cannabis infused sodas, designed to give a “light social high”. Aimed at female Millennials, the product indicates a departure from the traditional “stoner culture” image associated with cannabis.
The rise in cannabis as an ingredient is not just limited to the retail shelves. Sinsemil.la in New York has been described as “the first cannabis fine dining experience”. A 9 course tasting menu is served, with cannabis varietals are tested to specifically balance the flavours of each dish as well as using the psychoactive properties to enhance flavours throughout the meal. The Sinsemil.la itself references a particular variety of cannabis known for its potency. (Bord Bia – Culinary Inspiration, 2017)
Given the lucrative nature of the market as seen in the US & Canada, there is no doubt that cannabis offers food & drink brands a unique opportunity to grow their product portfolio. Given the fledging nature of the market, consumers are largely inexperienced regarding terminology, consumption formats and dosage. Therefore the key to growth for brands lies in educating consumers of the benefits cannabis through familiar product formats (Stylus, 2018)
Article Date: 01/06/2018
Source : https://www.stylus.com/btlhbt
Article Date: 08/09/2017
Siobhán Collins – Insight and Brand Specialist, Bord Bia – Irish Food Board
This week Lidl came in for criticism for removing a cross at the top of a church out of an image it uses on the packaging for its own-brand range of Greek-style food. The supermarket’s Eridanous range features a picture of the well known Anastasis Church on the island of Santorini. A small white cross can usually be seen on top of the church’s blue dome. But it has been deliberately removed from images on the packaging. The airbrushing of an iconic image of Christianity by Lidl was widely criticized on social media.
What this story demonstrates is that symbols have deep meaning for humans.
Another example is that the laughing emoji was chosen by the prestigious Oxford English Dictionary as the “word” of the year in 2015, partly chosen because it is the world’s most widely used emoji. Images are how we create meaning and make sense of world as seen from the earliest time in cave paintings and hieroglyphs. From neuropsychology we know that 95% of information processing happens at the subconscious / emotional level of our brains. The emotional aspect of consumer decisions is drive by non verbal cues. Most of consumer decision-making process when it comes to brand choice is not rational – rather it operates at the subconscious emotional level.
In marketing brands, Semiotic Analysis is a useful qualitative research approach, rooted in anthropology, which focuses on the non verbal elements of communication, usually those elements of influence we are less conscious of. Semiotics looks deeply at the signs related to a brand or category and their related meanings. It looks at all the aspects of communication that conveys meaning such as imagery, sound, texture etc. Semiotics helps you gain insights into the relationship consumers have to brands through the prism of their culture.
Some ways semiotic analysis might help you in your branding:
If you are interested in exploring how semiotic analysis might help you gain insights into your category or brand contact the Insights team at firstname.lastname@example.org
Updated / Wednesday, 29 Mar 2017 13:16
Britain’s FTSE 100 index – most of whose earnings are denominated in other currencies – hit a session low after May triggered Article 50, down 0.3%.
Linda Cullen, Food and Beverages Division, Bord Bia – Irish Food Board
According to Mintel, seeds were one of the hottest trends in 2016 due to their nutritional value, benefits and versatility. They can be used for snacking, in meals and as ingredients and toppings for breads, salads, breakfast cereals and yogurt.
Data from Nielsen (MAT to Oct 2016) report that sales of snacking products in Ireland reached €2.45bn increasing by +2.3% year on year. There are three snacking segments – Impulse, Take Home and Health. Impulse and Health are the biggest winners with value growing at +2.9% and+9.6% respectively. Take Home snacking is static. Sales of seeds were worth €11.1m (+7.6% yoy).
The global nuts and seeds market is expected to grow annually by 1.7% for nuts and 10% for seeds over the next five years and this trend is expected to continue well into 2017 and beyond in line with the growth in healthy snacking, functional foods and the Consumer Lifestyle Trend of Health and Wellbeing.
Ancient and sprouted grains provide a natural way to add inherent health benefits to a range of foods and drinks as well as offering new and exciting flavours. 2017 will see significant innovations in the way in which seeds are packaged and used in products, from individual snacking portions and pouches to traditional formats and a more integrated approach within existing products. Flahavan’s Quick Oats Multi seed porridge pots and sachets provide an example of introducing seeds and grains into the mainstream. Glenilen Farm are also using seeds and grains in their yoghurt products and seeds and grains such as rice, oats, spelt and quinoa are used in milk drinks and have become a strong growth sector. Chia Bia produce a range of whole and milled seeds with fruit and spices and these can be used as ingredients and toppings for salads, breakfasts, desserts and smoothies. The increasing variety of grains, nuts and seeds in non-dairy milk alternatives provides a natural source of flavour with almond milk experiencing double digit growth in the US market in recent years due to its appealing taste and nutritional value while rice, oat and barley are also making significant gains in the market.
Consumers are increasingly seeking out healthy food choices that optimise wellbeing and are looking to customise and personalise wellbeing plans for healthy living presenting opportunities for producers to meet these demands.
For further information – contact Linda.Cullen@bordbia.ie
Owen Keogh, Origin Green Ambassador, Bord Bia – Irish Food Board
Since the Brexit vote consumer spending has been seen to prop up the UK economy but that premise may be beginning to crack as consumers and retailers continue to feel the pressure. According to this month’s Guardian Brexit analysis, rising fuel and food costs are having a bigger impact on household budgets as the value of the pound pushes up inflation further since the Brexit vote. The results for February highlighted how fish, cooking fats, fruit and sugary foods we all more expensive now compared with this time last year.
As businesses feel the pressure from the weakening pound, rising costs of imported materials and an increase in energy costs, the one answer for retailers is to boost internal efficiency. This week John Lewis announced 700 job losses while its sister company Waitrose also recently announced plans to close six stores and remove a level of management putting 700 jobs at risk.
Closer to home at last week’s ‘All Island Civic Dialogue’ on Brexit in Dublin Castle, Tara McCarthy spoke of the ways by which Bord Bia will be addressing Brexit in the coming months. The Brexit Analysis Toolkit and the deep dive into Irish food and drink exports to the UK will prove to be useful tools for Irish businesses exporting to the UK taking into consideration the growing pressure on UK retailers. This Toolkit will develop a company-specific analysis of its resilience to Brexit.
Understanding the British consumer will be paramount in the coming months as Theresa May triggers Article 50 before the end of March. The current indicators suggest that it would not be surprising to see a further squeeze on households translating to falling sales for retailers. With retail sales have fallen for the third month in a row already, falling sales could become a reality for retailers in 2017.
John Shine received great support from consumers for Shines Tuna in Supervalu Lucan. Their New Pink Tins are being rolled out in SuperValu Stores nationwide.
Shines are generously donating 20c to the Irish Cancer Society for every time a pink tin of Shines Tuna is purchased. Your support for the society would be greatly appreciated.
Sharon Colgan, Programme Manager, Origin Green, Bord Bia – Irish Food Board
‘Big food faces annihilation unless it moves with millennials on health’ was the attention grabbing headline in a recent Guardian Sustainable Business article by Alison Moodie.
Millennials and their demand for healthier, fresher and more sustainable foods have big food manufacturers and retailers scrambling to adapt to their needs. John Stanton, professor of food marketing at St. Joseph’s University in Philadelphia (my alma mater) explains that consumers are changing so much and so fast and it’s the millennials – consumers now in their 20’s and 30’s – who are driving this ‘distributive change’ due to their unlimited access to huge amounts of information on the internet. Online, consumers are exposed to the health effects of products and issues such as sustainable sourcing which in turn, are creating a demand for hyper transparency in the quest to know more information about the products they consume.
Some companies are responding well to these changing needs. The growth of healthy, convenience food such as meal kits and freshly prepared meals from retailers and delivery services is satisfying the demand for both health and sustainability. Hans Taparia, an assistant professor at the New York University Stern School of Business explains that meals kits tend to be more nutritionally balanced and many of them use more sustainably grown produce and meat. He also argues that the carbon footprint is likely to be lower as the delivery truck is like a ‘shared ride’ versus everyone driving to the grocery store by themselves. He cites US companies like Purple Carrot who offer only plant based meals, Sun Basket who use meat free of antibiotics and artificial hormones and Munchery who donate 1% of every order to a non-profit of their choice, as examples of companies who are really satisfying these changing needs.
In contrast, some big companies are taking a short-term view instead of making fundamental shifts in their behaviour: offering gluten free and high protein products that are perceived healthier and yet have high sugar content. As a result, Taparia says that ‘millennials are turning to smaller companies that they feel are more in line with their values of sustainability and “real” food.’ So here’s my out-take: As big food companies continue to scramble and skirt around the edges trying to satisfy millennial demands for healthy sustainable food, there appears to be a clear business opportunity for smaller companies who are making real fundamental shifts in their behaviour, through the Origin Green programme.
The public appetite for high end baked goods continues with Dominque Ansel’s first London outlet witnessing large queues on its opening day in upmarket Belgravia in September. Just three years after the launch of Ansel’s iconic cronut reported at the time in this Food Alert, the first “hybrid” pastry confection styled as a cross between a doughnut and a croissant which generated near hysteria at the time, has officially arrived this side of the Atlantic. About one-third of the bakery’s menu is exclusive to the inaugural London site, with new creations including a Liquid Caramel Peanut Butter Mousse Cake and the Paris-London, a choux pastry filled with Earl Grey mousse, full details here.
Sainsbury’s has also announced that it is overhauling its bakery range to capitalise on the growing demand for patisserie products. As part of the review, Sainsbury’s is introducing 20 new lines and a further 40 improved products, including fondant fancies, madeleines, and macaroons. The range will also include loaf cakes which have featured heavily in the most recent season of the Great British Bake Off.
Meanwhile, Marks & Spencer has decided to anglicise the croissant by turning it into a loaf. M&S has created a sliceable version of the traditional French pastry for Britons who like the taste of croissants but also want the convenience of a slice of toast for breakfast. Marks & Spencer has described its new bakery hybrid — dubbed the “croloaf” — as the perfect fusion of the French and British breakfast, read more here.
New Mintel figures on the cake market show that premiumisation continues to be an ongoing trend as the growth in cake sales in the UK reached its highest rate in 2015 at 2.5%. The appeal of exciting, creative, fun cakes is enduring – a trend also identified in Bord Bia’s 2015 consumer study on the Cakes and Pastries category. Ultimately, consumers are largely unwilling to cut treats from their diets due to the perception that – in moderation – they are an acceptable part of a balanced diet.
Orla Donohoe, Food & Beverage Division, Bord Bia – Irish Food Board
For more info contact email@example.com
Maureen Gahan, Foodservice Specialist, Bord Bia – Irish Food Board
The importance of the role played by Technology in shaping the future of the out-of-home market is nothing new, we have examined developments in previous Food Alert articles – back in 2014 we looked at how Fast Food operators were using technology to respond to changing consumer lifestyles and in 2015 how technology was continuing to set the pace in foodservice. The reality is that this trend is showing no signs of abating and the key for both suppliers to the foodservice market and foodservice operators alike is keeping up with the rapid developments in this space.
Just last week we saw examples from some of the global giants reinforcing the investments that they are making in technology:
McDonald’s announced that they are adding self-service ordering (with table service); ‘smart’ menu boards and mobile payment options across the US (and elsewhere).
Subway is hiring 150 technology, marketing and operations stafe to revamp its mobile app and meet the digital ‘cravings’ of their younger consumers and JUST EAT has confirmed a new initiative designed to help entrepreneurs make an impact in the food technology industry, whereby it will invest in their businesses in exchange for a 5% ownership.
Bord Bia’s Thinking House Hot Topic for November looked at today’s Generation Z or ‘Centennial’ consumer (those born from 1997 to present) and the fact that they are coming of age in a time when every person has the same piece of technology in their hands – a super computer that provides them with access to anything they need, when they need it.
Its a topic that was reinforced by a number of speakers at Bord Bia’s annual Foodservice Seminar on 2nd November 2016. Speaker presentations from that event and copies of our 2016 Irish Foodservice Channel Insights report and our 2016 Irish Foodservice Directory are available on our website at this link.
To request a printed copy of either report, please contact Maureen Gahan, Ireland Market Foodservice Specialist, Bord Bia E: Maureen.firstname.lastname@example.org