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We’re keeping it simple this week, looking at three P’s of marketing as they line up neatly with three key functions of food production: foodservice, retail, and manufacturing.

  • Promotions and new products seek to rebuild traffic for foodservice.
  • Pricing and sustainability policies put pressure on retail.
  • Products new and reinvented aim to add relevance to manufacturers.

Until our next edition, we wish you good fortune. As always, feel free to drop us a line if we can help you with anything food-marketing-related. We hope to be back before too long.

Foodservice’s ‘Sense of Urgency’

The battle to keep prices low in foodservice is real, and the limited-time offer (LTO) seems to be the tool of choice to keep traffic coming through the doors.

  • Nation’s Restaurant News summarized a Chatmeter foodservice report that found high prices are not the only grievance slowing traffic. “Reviews mentioning mistakes were up nearly 7%, while references to staff attitudes were up nearly 22%, and mentions of managers increased nearly 15%, both leaning negative.”
  • Outsized attention has been directed toward a struggling Starbucks, especially since CEO Brian Niccol took the helm in September. Eater bulleted some hurdles Niccol is facing, including the coffee chain’s lack of any new hit drinks and the faded appeal of working there.
  • Subway will celebrate the holidays with a footlong cookie — available now through the end of the year. “Diet conscious types need not apply, however — the warm treat, giving one gooey bite after another, will cost you a whopping 1,330 calories.” (New York Post)
  • If 40 years is a “limited time,” then Pizza Hut’s reading promotion is not that limited. The New York Times celebrated the chain’s Book It! literacy program, which started in 1984.
  • Entrepreneur nailed it in an article on McDonald’s spicy McNuggets LTO, pointing out McD’s now familiar playbook of bringing back favorites, only to shelve them again. “It drives customer enthusiasm and keeps fans eagerly awaiting the next re-release.” Must everything be a McRib or Shamrock Shake?

Our Takeaway: LTOs are a tool, but when all you have is a nail, everything looks like a hammer.

New Shoppers and Price Choppers

Are distributors’ “mystery fees” responsible for higher prices at the grocery store? Will the Kroger-Albertsons acquisition ever go through? And is Albertsons itself playing fair? There seems to be a lot of unsettling stories in the grocery world, but, on the bright side, Aldi’s is the first chain to bag the plastic: plastic bags, that is.

  • Wall Street Journal’s Jesse Newman dug into one link in the grocery supply chain that often evades criticism: distribution. “Launching a new flavor for an existing product? There’s a fee for that. Running a promotion at retail? Distributors charge for that, too. If distributors buy too much and products expire before hitting store shelves, they can deduct spoilage fees. But if food makers short an order, aiming to avoid spoilage charges, distributors can ding them for that.”
  • Grocery Dive offered six takeaways from the ongoing trio of court cases involving the Kroger-Albertsons acquisition. The chains are anxiously awaiting the judges’ rulings on all three cases, but, “competition, pricing and the fate of Albertsons were key points of contention in the three court battles.”
  • The on-again-off-again merger with Kroger isn’t Albertons’ only concern. The chain recently agreed to settle with California consumers over predatory practices, specifically overcharging for groceries (Boise Dev). Then, on November 4, a group of democratic lawmakers led by Sen. Elizabeth Warren (D-MA) penned a letter to the USDA claiming that this settlement raised new concerns about nationwide issues.
  • On the environmental stewardship front, Aldi released its sustainability report on October 29. The chain is the first to achieve its goal of eliminating plastic bags from its 2,400 U.S. stores in what Supermarket News called Aldi’s “war on plastic.”

Manufactured Disruption

New product introductions and mergers have been two central themes of manufacturers’ battle to stay relevant, especially for established companies.

  • Food and beverage companies sharpening M&A efforts | Feedstuffs
  • Kellanova shareholders approve $35.9bn Mars merger amid shifting snack industry trends | Bakery and Snack
  • How Daring to Be Different Made Nerds Gummy Clusters a Top-Selling Candy | Inc.
  • After 127 years, Smucker’s has Moved Beyond Jam. But its CEO Still Finds Time to Jam on Weekends | AP
  • Nestlé taps diverse food trends with ready-to-prepare Asian and Mexican culinary products | Food Ingredients First
  • Lifeway Foods rejects Danone takeover bid | Dairy Foods
  • Beyond Meat returns to growth, plans to boost the balance sheet before year end | AgFunder News

Worth Reading.

From Röugh to Rëfined

Has Malört mellowed out? Amid consumer speculation regarding the bitter wormwood liqueur’s relative flavor shift, Punch uncapped potential reasons why newer batches may seem (slightly) more palatable. Whether the apparent change is a result of Chicago’s CH Distillery now using locally sourced organic rye and wheat or wormwood from different parts of the world, one thing is certain: Malört remains one of the most polarizing spirits on the market.

They’re Eating the Raccoons!

With millions of raccoons reportedly wreaking environmental havoc throughout Germany, Industrial Equipment News detailed how one butcher has introduced a sustainable solution to the national problem: turn them into food. From meatballs and salami to bratwurst and liver sausage, Michael Reiss now makes a variety of official-approved raccoon-based meat products. However, they are only available in Germany … for now. No, we’re good, we’ll wait.

Undammit!

After a contentious and controversial couple of decades, salmon have returned to the Klamath River along the Oregon-California border following the removal of a series of hydroelectric dams. In a recent podcast, Gastropod delved into how a coalition of tribes, fishermen and environmental groups worked to bring about the dam removal project and what it means for the salmon and the region.

Foods of Faith

World Resources Institute detailed how religious beliefs and faith groups can have a significant impact on food choices and food systems. From production and farming to distribution, consumption and waste, faith-based organizations can make a sizable impact on the world’s food systems and the planet. To realize their full potential, more research and partnerships will be needed at the global level to shed light on how faith can inspire environmental behaviors, elevate success stories and inspire action within communities.

Making Food Fast

An article from the Tufts Health & Nutrition Letter broadstroked how to eat more nutritionally when you don’t have time to shop. Basically, it suggests stocking pantry and freezer staples for quick, healthy meals. Frozen vegetables and fruits are both convenient and perfect for soups and smoothies, while canned beans, tomatoes and fish provide easy protein and flavor. They also recommend whole grains such as couscous and quinoa because they cook fast. Simple, yes, but if you struggle to boil water, probably not overly helpful.

A Parting Gift?

What’s one rather large loose end of the TGI Friday’s bankruptcy process that’s unsettling over 60 franchise owners? Nearly 50 million dollars in unclaimed gift cards. USA Today detailed the issues with this “use it or lose it” situation; if there’s a rush of redemption, the independent franchises won’t be guaranteed reimbursement from corporate. More troubling? The amount owed to card holders far exceeds the $5.9 million cost of the corporation’s bankruptcy restructure. “I did a double take on that,” said Judge Stacey Jernigan.

Artificially Illustrated
AN AI-GENERATED IMAGINING OF THIS WEEK’S TRENDING TOPICS
Plated logo frozen in carbonite with stormtroopers standing over it
In Star Wars canon, Han Solo was frozen in carbonite for six months. We’re hoping our freeze passes more quickly.
Midjourney illustration by Ryan Smith