As China and Korea continue to clash over where kimchi originated, the Korean government has published a book laying their claim.
“Kimchi in the Eyes of the World” contains history, recipes, stories from writers who love to eat kimchi, and how traditional Korean kimchi is different from China’s pao cai, a pickled vegetable dish.
The 148-page book was published by the Korean Culture and Information Service and the Ministry of Agriculture, Food and Rural Affairs. They plan to distribute it in Korean- and English-language versions through overseas Korean Culture Centers and via the foreign embassies in Korea.
Read more (The Korea Herald)
The Covid-19 pandemic powered strong food and beverage sales last year. But natural and organic brands grew even faster than conventional ones, with sales growing 12.7% to $259 billion.
“Natural products throughout the last year have really been outpacing all product growth. Natural and clean products are now about $1 out of every $10 spent, which is really significant,” says Kathryn Peters, executive vice president of SPINS, a retail data provider. Peters presented sales trends at the virtual Natural Products Expo West.
Data from SPINS and Nutrition Business Journal documents that there was a “dramatic shift” in consumer behavior during the pandemic, as more people cooked at home and bought healthier foods.
“2020 was a record year for the U.S. natural and organic product industry,” says Carlotta Mast, senior vice president and market leader for New Hope Network, producers of the Natural Products Expos. “The industry has so much to celebrate, despite the very challenging time we’ve been through the past 14 months.”
Natural and organic sales are expected to pass the $300 billion mark by 2023.
Food as Medicine
Functional food and beverage sales grew 9.4% to $78 billion in 2020, a surprisingly high figure since grab-n-go offerings — the category in which many functional products are tracked — were reduced significantly during the pandemic.
“And yet that strong growth, nearly 10% experienced in that category, demonstrates that people continue to embrace the food as medicine trend,” Mast says.
Products that claim to offer immune-boosting, functional ingredients are selling well. Consumers are “shifting from reactive to preventative and from cold and flu season to year-round protection.” Ingredients and supplements like elderberry, vitamins C and D, antioxidants, collagen and cider vinegar are increasing in sales.
Sales of animal welfare-positioned products grew 17% in 2020, and sales of grass-fed and free-range products increased more than 13%. Other key wellness attributes that appeared to drive significant dollar growth included paleo (up 32%), plant-based (21%) and grain-free (18%).
“Consumers are expecting more from the products they buy,” Peters said. “Whether it’s because of a limited budget or health and wellness considerations to build a stronger body, people are seeking nutritional benefits.”
Consumers are seeking to buy from brands with a purpose. These are products that, for example, want to save the environment, create a sustainable food system, champion a social justice cause or support a minority group.
Nick McCoy, co-founder and managing director at Whipstitch Capital, a food-focused investment bank, calls these brands “better for people and the planet” and says they are “doing good while making money at the same time.” The amount of ESG (Environmental Social Governance) investment funds has increased tenfold over the past two years.
Brands that are mission- and community-minded are experiencing the strongest sales growth.
“This demonstrates that our industry is home to brands that do a lot more than just sell a product — they’re a force for better, better health and better outcomes for humans, animals and the environment,” Mast says. “Our industry shoppers expect more than a transaction from the brands they do business with.”
In a SPINS survey, consumers said they want to support brands that are LGBTQ owned (19%), BIPOC owned (28%) and/or woman owned (18%).
Vegetarian and vegan products are also increasing in sales. Plant-based and meat alternatives grew 21% last year, at a rate of two-times their mainstream counterparts.
“In many cases, plant-based is bringing more nutrient density than the original animal-based analog,” Peters says . “Plant-based support is growing beyond just health benefits to earth-based benefits like lower greenhouse gas emissions, water conservation and biodiversity.”
Not surprisingly, e-commerce sales fast-tracked during the pandemic, accounting for 58% of natural and organic sales last year. E-commerce also became the main channel where new brands were launched. Though sales in brick-and-mortar stores are not predicted to return to pre-pandemic levels, physical retail locations are still expected to account for 30% of all natural and organic products sales in 2023.
Speakers at the event advised brands to take an omnichannel approach, tackling marketing through brick-and-mortar stores as well as e-commerce channels. Sashee Chandran, founder and CEO of Tea Drops (a producer of organic tea pressed and preserved in different shapes), spoke at the conference about her experience following this marketing approach.
“Even though things are opening up, consumers still want that flexibility to be able to shop online but also in store,” she says.
The fast-growing, Tennessee-based whiskey brand Uncle Nearest, run by Fawn Weaver (pictured), has created a $50 million investment fund aimed at helping minority-owned spirits businesses.. Black-owned spirits brands are prioritized for investment dollars, followed by those with a founder who is female and/or a person of color.
“I am looking for the brands that have the ability to be the next Uncle Nearest,” Weaver said. “What that means to me is, they are not building to flip, they’re not building to sell. They’re building to create generational wealth.”
When Weaver began Uncle Nearest and wanted to consult with a Black master distiller, she found “the overwhelming whiteness of the world of American spirits.” Her whiskey brand is named after an expert distiller named Nathan “Nearest” Green, who was born into slavery and mentored a young Jack Daniel. Last summer, Uncle Nearest and Jack Daniel’s started a $5 million initiative to bring more Black entrepreneurs into distilling. The response was so great that Uncle Nearest began its own initiative. It’s called Black Business Booster, with the intent to help 16 companies.
“It’s not that people of color don’t have an interest. It’s that we find that they have no path of entry into the industry, no connections where others may,” says Margie A.S. Lehrman, the chief executive of the American Craft Spirits Association. “It’s a very, very tough industry to break into, and if you’re a woman or a person of color, it’s even harder.”
Read more (The New York Times)
Baby boomers spurred the wine industry, but millennials and Gen Z aren’t buying into it, favoring low-calorie seltzers instead. Winemakers are trying to appeal to a younger consumer, but it hasn’t been easy, notes an article in The Washington Post.
What’s selling with the younger crowd? Natural wines, “emphasizing eco-friendly viticulture and minimalist winemaking. There’s a bit of anti-modernism and anti-technology ideology to this winemaking approach, but at heart it’s a counter-reaction to boomer wine and the idea of fermented grape juice as a luxury lifestyle statement. These are not your parents’ cabernets, aged in expensive oak barrels in a state-of-the-art architectural masterpiece of a winery. They are skin-fermented whites and ‘chillable reds,’ lower alcohol and lighter in color and body than we have grown accustomed to.” Smaller wineries, generally run by younger winemakers, are making these creative wines.
Read more (The Washington Post)
When Sophie and Alexander Burov moved to Toronto, Canada, from Moscow, Russia, in 2007, farming wasn’t on their radar. Both entrepreneurs — she in fashion, he in mining — they were accustomed to life in one of the biggest cities in the world, not to rural farming. And their knowledge of fermented dairy was limited to taste — Alexander loved the tangy kefir he’d been drinking since childhood; Sophie devoured cheese and yogurt.
Sophie was a sheep’s milk aficionado, having tried it years earlier, She had fallen in love with its flavor, but soon learned how hard it was to find fresh sheep’s milk, especially in her native Russia. So when she met a producer at a farmer’s market in Canada, Sophie felt inspired to make her own sheep’s milk products.
“At that moment, I couldn’t even imagine running a farm,” Sophie says. She volunteered at a local dairy and sheep farm, quickly learning that: “Business is business and farming is business too, but it’s love as well. Farming is a lot of love.”
Today, Sophie, Alexander and their son Roman run the 150-acre Secret Lands Farms, south of Owen Sound in Ontario, Canada. Utilizing old-world European farming traditions, they produce a range of artisanal sheep’s milk dairy products at their on-site creamery: kefir, two varieties of yogurt, and 25 cheeses. Their kefir — made from centuries-old Tibetian grains — is also the base for their cheeses. Secret Lands is the only producer in Canada (and one of few in North America) using kefir grains as a culture for cheese.
“Seeing is believing — but tasting is falling in love,” Sophie says. “When you taste our product, you can feel the love.”
Sophie recently spoke with TFA; below are highlights from the interview.
The Fermentation Association: You purchased the farm seven years ago. Farming is hard work! Tell me what made you decide to purchase a farm?
Sophie Burov: Yes, we purchased it in 2013. The idea came about eight years ago. You know sometimes when you reach a point when you need to reconsider the purpose of your life and what you’re doing, why you’re doing it, what’s the purpose of your existing?
The agricultural sector is huge in Canada but not dairy sheep farming , so I started thinking about it as a hobby farm and we’d still live in the city, but it turned in a different direction because if you want just a hobby, it will only be your hobby. If you want something serious, your life and dedication is different when it’s your life. I believe it’s from guidance from God, I was praying a lot.
Looking back, this is the hardest job me and my husband have ever done. But it’s rewarding mentally. I believe in the spirit of the land and the animals and what you’re doing through the product you give to people, you become a bridge connection between the land and the people. Through the product, you can tell much more than through words
If you want to go farming for money and there’s no love between you and the animals, forget it. There has to be love between you and the animals. Everyday they are teaching us how to be better human beings because sheep are very social. They are also very appreciative animals. They give back their love. If they’re struggling, you’re struggling with them.
We were very, very lucky, because we found the first sheep dairy farmers and breeders in North America — Axel Meister and his wife, Chris Buschbeck [owner of WoolDrift Farm in Markdale, Grey County, Ontario]. They brought this flock from Germany in the middle of the ‘80s and they started developing this flock in the middle of North America. When we decided to do this farm, we met Axel and started going to his farm and volunteering and he was guiding us, telling us what books to read and what to pay attention to with the sheep. His wife Chris is a vet for sheep and she helps us with our sheep.
TFA: How long did it take you to become experts at sheep farming?
SB: We are still learning. The first three years were extremely, extremely difficult. It was a hard time because, working as a volunteer at these different farms, it was very different compared to doing it yourself because all the ups, they’re yours, and all the downs, they’re yours.
TFA: Where do you sell your products?
SB: We sell at the farmers market on Saturday and home delivery twice a week. I believe home delivery is another bridge between the customers and us. If they have questions, we’re always here to answer. It’s not the easiest way to do it, but I believe that for small farmers and small producers, it’s the best way to connect with your customers and make money. We tried to work with retail stores, but retail chains, they are squeezing you. There’s no money for small farms. You can increase your flock, your production, to make more money, but we do not wish to become huge. For now it’s an ideal model for us to sell through online sales to all of the Canadanian provinces
TFA: What is a typical day like at the farm?
SB: Everyday is different. From the beginning, we were working like slaves. It was very unhealthy, all of us were sleeping just an hour, working at the farm then driving to the farmers market. Sometimes our working time was 22 hours a day, it was killing us. But now it’s easier because we have people who can help us in production and my husband Alex has people helping him on the farm, so it’s a little easier. [Secret Lands has anywhere from 8-10 employees, depending on the season].
The most difficult period of the year is lambing season. My husband and son are not sleeping at all. They have naps, but then they’re back to the barn. We do lambing once a year for a few months in spring. We do not do artificial insemination, we do it the way nature intended. The sheep are pasture-raised, grass-fed and no hormones.
TFA: You are Russian natives, where kefir originates from. Did you have kefir before starting the farm?
SB: Yes, kefir started in Russia, it began end of the 19th Century. It came from the Caucasus Mountains. But to be honest, when I started thinking about farming and a sheep dairy farm, I didnt even think about kefir, I was thinking about just yogurt because at that moment I was a yogurt and cheese person. I have hated kefir since I was a kid. My husband has been loving it since he was born.
But when we met our sheep breeder, at that moment he gave me a glass of kefir at his farm. He was just producing kefir for himself, I tried it and thought this was interesting. He gave me a handful of kefir grains, and I made kefir and brought it to our church community for people to try and share with people our idea of what we would be doing on the farm. One lady started asking me so many questions about kefir. And I realized my knowledge about kefir is null. I went back home and started my research and I was just shocked. It was so amazing, it was my ah-ha moment. Kefir is incomparable with yogurt in nutrition. Then my amazement was doubled, tripled, because sheep’s milk kefir, the product is different, the amount of calcium is much higher than cow’s or goat’s milk. In the kefir variation, our body will assimilate twice the calcium and protein.
The real kefir — made from kefir grains — it’s very limited on the market because it’s difficult to make. Seven years ago I had a handful of kefir grains, but now I can produce nine pails of 15 liters each of kefir at the same time. It’s not a huge amount actually if we compare it to someone who does it commercially. It’s impossible to make money with that amount of product. When people ask why our product is high priced, I tell them because it’s the real stuff.
TFA: Tell me some of the benefits of sheep’s milk kefir.
SB: It’s a natural probiotic, it’s the most natural probiotic in the whole world. Some scientists are saying it has 50 different variations of probiotics.
If you are taking pills or taking kefir from commercial cultures, you are not digesting the good bacteria. But if you take the real kefir, it’s becoming you and it works. People ask “Why am I supposed to drink it all the time? What’s the reason?” I tell them even the best troops in the whole world can do a lot, but if you are not feeding them, they become weak. These troops are fighting the bacteria in your body and they’re fighting nonstop, invisibly fighting bad bacteria in your body. People need to understand there’s no miracle. You can’t drink a glass or a liter and that’s all. You need to do it constantly and it will give you the health benefits from the nutrients and vitamins. I drink half a glass for my breakfast and and half a glass at night.
In kefir, your body assimilates the nutrients and vitamins. Sheep’s milk is easier to digest because it’s closest to mother’s milk, more than goat or cow milk — it’s a superior milk. You can even freeze this milk, we freeze it for the winter time and when you defrost it, it doesnt change the structure. The globule of the fat in sheeps milk is four times smaller than cow’s milk. It’s easiest to digest for people, especially with lactose issues. Same with our cheese made from kefir, it has the same benefits.
TFA: What about your other fermented products? Tell me about the baked milk yogurt.
SB: The baked milk yogurt can be confusing to people because they say “Doesn’t it kill all the probiotics in your yogurt?” No, we are slow cooking it, and then we add cultures. It is Russian and Ukrainian, this process of making yogurt. It goes back to history when people in villages were baking bread in a wooden oven. It was always pre-heated, they would put milk in a cast iron pot or clay pot. It would stay there overnight, and the water is evaporating and the milk sugar is caramelizing. We call it the healthiest creme brulee. It has the taste of caramel, but no sugar or caramel added because of the process of the caramelization of the lactose.
TFA: You make traditional yogurt, too?
SB: Yes, we are working with cultures from Italy. I tried to work with what’s available here, but it gave me a really sour, tart taste. It was too genetically modified, and that genetically modified culture is not allowed in Europe. We’re bringing all our cultures for our yogurt from Europe.
TFA: Tell me more about your cheeses.
SB: We do different varieties of cheeses called kefir cheese, we use zero commercial cultures. We are using only kefir. It takes more time, it changes a little bit of the taste for the cheese, but it’s the same culture. We’re able to produce fresh cheese to a few-years-old Pecorino. But it’s the same culture.
David Archer, he wrote The Art of the Natural Cheesemaker, I met him just before we started making kefir cheese. At that moment, his book had just released and people introduced us at the farmers market. He came to our farm and we spent a month together in our small-size commercial kitchen and creamery and he helped convert everything to kefir cheeses.
I’m always asking people just think about the history of the cheesemaking, cheesemakers they didn’t use the cultures from the lab, it was a natural fermentation. It was the same farm with the same bacteria, they’ve been doing different varieties of cheese, but it depends on your region because the environment is different. Sometimes, you don’t know what’s involved because the weather is different, the humidity is different and even our mood is different. If you’re not in a good mood, it comes out in the cheese.
Same with kefir cheese, we’re using the same kefir as a culture for our milk, and it gives us different results. Even with our soft-ripened cheeses, Camembert and Brie, the rind we are growing, it does not have any artificial bacteria that people put on top of the cheese to grow a rind. Kefir gives this ability to grow the rind naturally. But you need to be thoughtful and it involves a lot of labor because you need to keep your eye on the cheese everyday to see what’s growing on top. And you need to develop the right bacteria for the rind of the cheese.
TFA: Is the process to make a kefir cheese different from a traditional cheese?
SB: A little bit, but now much. The process to make it takes more time than traditional cheesemaking because you need to add kefir and wait. But it’s worth it because it’s a superior food that brings you all the good protein. It’s easier to digest compared to even meat because it’s naturally fermented.
TFA: How long did it take you to perfect these recipes?
SB: It’s an ongoing process. From the beginning I didn’t plan to do 25 cheeses. But I was surprised, people started asking me at the farmers market if I would make hard cheese. Now Pecorino is our top seller and our main product, it’s a sheep’s milk cheese made of full-fat, whole sheep’s milk.
Sometimes people are suspicious — “Oh a Russian, doing Pecorino in Canada?” But when they taste it, they love it.
Even as small producers, we are like big producers, because we are doing a big range of products. We have four more cheeses planned for the future. The sheep’s milk gouda is in the aging room now.
TFA: How does the taste of a fermented sheep’s milk product taste compared to fermented goat or cow dairy?
SB: Sheep’s milk is very sweet and high in fat, but good fat. It’s very smooth and creamy. My first impression when I tried a glass of sheep’s milk, it was like I was drinking the best cow’s cream of my life. It’s rich, but not heavy because the globule of the fat is very small. It gives richness, but at the same time, lightness. It’s so full of the different nodes of the taste. It’s sweet but not overly sweet, it’s balanced. The quality of the milk affects all the range of the products that we do.
Sheep milk is a very good balance between rich and light.This taste goes through the product. It’s totally different from goat milk, it doesn’t have a strong taste. Many people don’t like the taste of goat milk, the smell and taste. Sheep doesn’t have that strong taste at all.
TFA: I love that you are very invested in the welfare of your animals.
SB: For me the most important, I care how people are treating the animals. If the animals are healthy, free-range, pasture-raised, people are taking good care of them, they’re not giving them chemical-produced silo. We’re giving our animals fermented hay because it’s easier to digest. Year-round, our animals are grass-fed. We are not just farmstead producers, we are much more. Our main concern is the health of our soil. The quality of the product, the health of the product, it starts from the health of our lamb. Only good soil can guarantee good health for your animals.
TFA: Where do you see the future of fermented products?
SB: I believe in the future of fermentation. However, it’s not easy. For example, back in Russia, back in Europe, my family we’ve been doing sauerkraut since I can remember. Even here in Canada, living in downtown Toronto, even when we were in a condo, I was making sauerkraut. And kombucha.
But people are losing that connection to their food. They need the right guidance to reconsider their eating habits. I believe it will take some time to change, but we are optimistic.
Sales are soaring. Although kimchi only makes up 7% of the pickles and fermented vegetables category, its sales are increasing at an explosive 90% rate, according to SPINS.
We asked three kimchi experts their thoughts on the uptick in sales: Minnie Luong, founder and CHI-EO of Chi Kitchen, JinJoo Lee, chef and Korean Food Blogger at KimchiMari and Kheedim Oh, founder and Chief Minister of Kimchi for Mama O’s (and member of TFA’s Advisory Board).
We asked them: Why do you think kimchi sales are increasing so rapidly?
Minnie Luong: Originating in Korea around 4,000 years ago, kimchi is an iconic food symbolic of hope, trust, and survival that is the perfect food for our current times. One of the world’s most special foods, it elicits delight, storytelling and sharing. In fact, UNESCO has designated kimjang — the traditional way of making and sharing kimchi — a designated intangible cultural heritage of humanity.
Low in calories, high in fiber and big on flavor that’s great for your digestion and gut health, kimchi is uniquely poised to cross over from being a specialty food to a must-have pantry staple for health and wellness enthusiasts, home cooks and those seeking out a satisfying flavor adventure. Its spicy, tangy, umami flavor is convenient and easy to use across a wide range of dishes along with a long shelf life when refrigerated. Just open a jar and it’s ready to go! While kimchi is often seen as a condiment, it should really be considered a vegetable, but one that packs a delicious, probiotic punch. Let’s face it, we could all use more veggies and flavor in our lives!
JinJoo Lee: I think the sales of kimchi are increasing because more and more people are aware of the health benefits of kimchi (loaded with probiotics like many fermented foods) and also are being introduced to the wonderful flavors of it now through many restaurant foods and magazine recipes.
More restaurants have started to use kimchi in their menu because I think chefs have realized kimchi works great in non-Korean dishes such as on hamburgers, pasta, cheese quesadillas and even with Brussels sprouts!
Kimchi has a very deep and complex flavor with an amazing zing that fermented foods have but it also is a perfect balance of sour, spicy, salty, umami and slightly sweet that works well with so many different foods, especially meats and seafood.
Most Americans may know only the spicy napa cabbage kimchi (Baechu Kimchi) but did you know there are over 100 different kimchis? kimchi can be made using all sorts of different vegetables such as cucumber, eggplant, radish, mustard greens, green onions, chives and more.
If made and stored properly, kimchi can last for weeks, months and years and it can be enjoyed throughout all the different stages of fermentation – from the very beginning as fresh tasting to fully ripe to overly ripe and sour then even when it’s aged for years! So kimchi is the perfect fermented food that’s tasty, healthy, versatile and even long-lasting.
Kheedim Oh: With everyone in the world simultaneously experiencing sensations of uncertainty mixed with mortal fears of peer contact, people are drawn to the near mythic powers of kimchi. One of the top 5 healthiest foods in the world (according to Health Magazine). A true superfood. People are attracted to the promises of probiotics. The comfort of supporting their immune systems with each bite. The flavor of fermentation. The addictive nature of how eating good kimchi makes you feel.
The word kimchi has reached a tipping point where it’s no longer just the stinky rotting cabbage from Korea (or wherever) to the acidic/tart vegetable dish that “I had as part of a dish at the insert [trendy fusion restaurant] that I went to and I heard it’s really good for you.” It’s losing its Korean-ness and quickly being subsumed into White American food culture the way that kombucha has already completely become. There are a lot of “kimchis” that are only kimchi through very loose interpretations or are just not real kimchi by any definition, only by name. The culprits being many of the before-mentioned fusion restaurants.
On the other hand, there is the whole DIY home fermentation movement that has been growing year over year. Educating themselves on how to achieve food sovereignty, they tend to be a more culturally sensitive crowd. Regardless of the hype surrounding the word, we hope that kimchi can maintain its popularity in America while maintaining its unique UNESCO World Heritage recognized cultural identity as a Korean food.
Behind every fermented food or beverage is intriguing science that creates a pleasantly tangy taste. Customers want to know all about that chemical process, right?
No. Stop geeking out and appeal to the foodie instead.
“This is about the joy of eating, and so when you over-science me and you over-gut me, I forget the joy of eating. Remind yourself that your most important message is how pleasant, how tasty, how engaging, that’s the pleasure of eating, and then you can tell me how you make that pleasure,” says Sasha Strauss, managing director at Innovation Protocol (a marketing consulting & design agency). Strauss shared his brand strategy tips in the TFA webinar Building a Fermented Brand. He stressed fermented brands need to avoid getting stuck in the “scientific nuance of how you make your products. I’m not saying delete the science, just don’t make it the marquee.”
Alex Corsini, founder of frozen pizza company Alex’s Awesome Sourdough (and TFA Advisory Board member) agrees. Corsini, who moderated the webinar, says he began his brand with a heavy emphasis on the science of fermenting sourdough.
“Our customer didn’t really respond to that. And that’s something I see in fermentation all too often, is people aren’t selling the actual benefit. They want to understand the benefit, so that’s what you lead with,” Corsini advises.
If you’re selling kombucha, for example, share that it’s a feel-good product that will make you feel better than a soda, Corsini says. Don’t make your selling pitch the SCOBY’s technical specifications.
Teach, Don’t Sell
“I don’t understand fermentation. I don’t understand the health benefits. I don’t understand its cultural origins. I don’t understand what section to buy it in. I don’t understand what to eat it with or who to serve it too. Your first duty as a brand is to help me make sense of this, help me understand it,” Strauss says. “It’s not your job to be the sexiest, raciest, the most innovative, it’s your job to help me understand. And where understanding sits in the consumer’s mind is where buying behaviors originate. So the first and most important duty of your brand is to simply help me not feel alone, help me not feel confused, help me not feel overwhelmed.”
By educating the consumer, by inspiring them to learn about fermentation, “they will be indelibly connected to you,” Strauss continues. “They will prefer you. They won’t wonder if your price is a penny cheaper, they’ll prefer you because you’re who they learned from. We buy who we learn from.”
There’s not enough room on a label to detail all the health benefits or the scientific details of a product. But this information can go on a brand’s website, social media page or table-top display at a trade show or farmer’s market.
“I hope that your audience doesn’t hear from you just once,” Strauss says. They should find a video of your product on Instagram, find recipes on your website and see an ad in the local paper. Brands need to create multiple opportunities to engage, “don’t try to cram all of your value in a single channel.”
A New Economy
The COVID-19 pandemic has permanently changed the economy. Consumer lifestyles have changed, too, and these new behaviors create opportunities, especially for fermented products that are healthy and flavorful.
“Historically, if you were trying to build a consumer packaged goods brand, it was really about your resume, your long list of accomplishments , your heritage in farming, your understanding of the chemistry and that was what marked the person, the business, the brand,” Strauss says. “But actually now, it’s really about how you resonate, how I connect with you, how you inspire me, and that doesn’t require a long history, that requires a contemporary participation.”
“In a world where the audience is starting and ending their search digitally, each of the things that you share, post, write about, blog about, video dialogue about, those things are little breadcrumbs that will never go away,” Sasha says. “They’re little trails that lead to your brand, lead to your resources, lead to your understanding and this is powerful.”
Consumers rejected traditional brand loyalties this past year. They’re increasingly open to new brands, curious about new cultural flavors and want healthy food. Critically, Strauss points out, they want to purchase from socially responsible brands. “In a post-covid era, we want a brant to also do good,” he says.
Producers must make conscious choices about the farmers they use — how are they improving soil health? What is the environmental impact of their distribution line?
“Understand you have to make an impact, somehow do good for the world while building business,” Strauss says.
Don’t expect people immediately to dump their sourdough starters and crowd restaurants when the Covid-19 pandemic is over. In a U.S. consumer trends survey, 42% of people said they plan to cook more at home post-pandemic. This news is great for Consumer Packaged Goods (CPG) brands.
From record sales to supply shortages to new safety regulations, the retail grocery business was changed dramatically by the pandemic in 2020. But CPG companies experienced phenomenal growth: sales rose over 10% — more growth in one year than in the four-year period from 2016 to 2019. Though pandemic stockpiling (fingers crossed) likely will not recur in 2021 , CPG sales show no signs of slowing down. A mere 7% of Americans said they’d cook less after the pandemic than before. Consumers are buying CPGs more than ever. And they’re not staying loyal to their favorite brands — over 50% of respondents said that they are willing to try different products, and 66% of them stuck with those new brands.
Fermented CPG brands are in a great spot to take advantage of these trends. Healthy foods gained significant share in the food market in 2020. The pandemic propelled fermented food and beverage into the spotlight. More Americans began experimenting with healthier eating during the pandemic, and now they’ve adopted it as a habit.
What does this mean for the future of CPG brands? Here are four ways they must adapt to the “new normal”:
- Sales via Multiple Channels
Consumers won’t be shopping for your products only in brick-and-mortar stores. More consumers than ever are buying through ecommerce. Digital grocery sales were a niche category before the pandemic — now, CPG food and beverage sales are estimated to top $100 billion in 2021.
Food and beverage sales became the largest CPG online segment in 2020.
Direct-to-consumer (DTC) sales also shifted into high gear. Consumers turned to DTC during the pandemic to get their favorite products straight from the manufacturer. Good examples are kombucha producers selling bottles directly from the brewery and a sauerkraut maker shipping to consumers from their kitchen. An analysis by Retail Dive found direct-to-consumer businesses during the pandemic fared better than did traditional brick-and-mortar retailers.
But this doesn’t mean CPG brands should abandon selling in grocery stores.
According to Deloitte’s 2021 Consumer Product Industry Outlook, four out of five companies say “resetting their go-to-market strategy is critical to meeting their objectives; however, only half rated the current maturity of their related capabilities as high.” A majority of CPG companies surveyed say a bigger online and omnichannel presence will be a means of reaching consumers in 2021.
- Conscious Consumption
Consumers want to buy from brands that care about social and environmental issues. Societal inequality and environmental impact are big concerns to many consumers, and they are spending their dollars on ethical brands willing to put their money where their mouth is.
Deloitte found nine in 10 consumers say the pandemic is “an opportunity for large companies to hit ‘reset’ and focus on doing right by their workers, consumers, communities and the environment.” The CPG companies surveyed agree — three in four say establishing such initiatives in 2021 are a “strategy to place purpose alongside profit, express corporate values, and address heightened consumer attention to sustainability, social justice, equality, and environmental consciousness.”
Authenticity is key for proper brand activism. CPG companies need to be transparent with their consumers, integrating their social and environmental purposes into all parts of their business and organization. A brand that acts inconsistently will quickly lose trust with a consumer.
- Preference for Small Producers
CPG sales during the pandemic showed an interesting dichotomy: large companies had the highest dollar growth, but small companies – taken as a whole – gained meaningful share of market. A report by business consulting firm McKinsey & Company found market share of small companies during the pandemic increased from 18.2% in 2019 to 19.2% in 2020, while midsize businesses were flat and large companies fell from 51.2% to 50.5%.
More consumers did switch to new brands during the pandemic, but their primary reason was availability. This area is one where large brands have an advantage, as their greater resources should help them keep products on grocery store shelves.
- Supply Chain Improvements
Whether implementing new safety rules, finding sources with available products or switching packaging materials, every CPG brand had to adjust their supply chain in 2020. They are acting quickly to fix weaknesses exposed by the pandemic, and nine in 10 say they’re making significant progress.
CPG companies used to be praised for holding minimal inventories, but 2020 tested their resilience. Deloitte’s report explains: “Resilience is how companies keep their supply chains from breaking and restore them quickly when they do. It is also how they can gain the nimbleness and scalability to power new go-to-market approaches and innovative business models.”
Barb Renner, Deloitte’s vice chairman and U.S. leader of consumer products, says one of the biggest problems identified in their survey was an over-reliance on a small number of vendors. Most companies didn’t have backup plans. “If they were getting their product from a handful of vendors and one of those vendors had to close down, did they try to find an alternative source?” she asked.
CPG executives indicated supply chain resilience is important or very important for the company in 2021, with nine in 10 saying they are investing in improvements. Beyond creating reliable supply chains that can support their production, CPG companies need to be able to respond to demand and shift supply to new locations.
A unique business practice has been developed in Montana by Farmented Foods — the company ferments discarded produce from local growers to fill their jars with the likes of radish kimchi, dill sauerkraut and spicy carrot chips. The co-owners (Vanessa Walsten and Vanessa Williamson) met in 2016 at a Farm to Market class at Montana State University. They are currently getting ready to renovate a former cafe into a fermentation kitchen, thanks to a grant from the Montana Agriculture Development Council.
“Every year, so much produce is wasted because we don’t deem it perfect enough,” says Williamson, adding that the company “was founded initially to help farmers eliminate unnecessary food loss on their farms in the form of ugly and excess crops.”
They estimate they’ve saved over 6,000 pounds of imperfect produce.
Read more (Daily Inter Lake)