There were almost 3,000 new food product launches last year in Western Europe and the US with “free-from” packaging claims.  That represents  10% of all new product launches in the US and Western Europe combined.  Dairy-free and lactose-free represent $3.6 bln of market value while gluten-free represents $3.5 bln…certainly not “free-from” profitable.

“Free-from” packaging claims play into consumer perceptions of the health benefits of not consuming certain foods or ingredients.  This is an interesting juxtaposition of another current trend:   “good for you” package claims of what is in food products. Food marketers need to closely read consumer attitudes in light of their products and ingredients to develop packaging that successfully positions  their products.  With major brands, for example Barilla, Italy gluten-free pasta, jumping into what was simply a market niche a couple of years ago, “free-from” claims are clearly now mainstream in marketing and advertising.

Seventy percent of consumers say they avoid buying brands and products from companies they dislike, according to a recent consumer survey from Weber Shandwick and KRC Research.  Equally important, two-thirds of surveyed consumers said they routinely check product labels and packaging to determine the name of the corporate entity owning the product brand, and over 50% would hesitate to buy a product if the corporate identity is not readily visible on the packaging.

Clearly, branding in the classic sense has evolved to include corporate reputation as well as product brand reputation. This is particularly important for food and beverage marketers.  Perceived wrong-doing, in any number of areas, is more significant in consumer attitudes than the perception of corporate efforts  “to do the right thing”.

While companies can’t control everything that is said about them, a long term commitment to branding and building consumer confidence can provide a “leg up” when reputation issues do arise. Since over 80% of survey respondents indicated that online reviews and search results were primary sources of corporate and product brand information, keeping in touch with consumers through websites, social media, and advertising will help build and maintain a solid reputation. Bottom line, consumers have many choices and they don’t have to buy products they like from companies they don’t like.

Actually, things.  According to CBD Marketing, a strategic branding and integrated marketing firm,  products are defined as things if they create a new sustained category that results in pervasive consumer use and acceptance.  For example, trans fat free, bottled water, or light beer.  These product categories have attracted multiple brands and products, and consumers regularly buy them.  Fads aren’t bad, but they are short-lived, so better to be first on the bus than last.  Trends last longer than fads, but they do have a life-cycle.  Trends are fads that were better advertised and marketed.    Niches have sustained value and market potential, but the market segment is narrow.  Gluten free, organic, soy all have demonstrated a staying power within their market segments.  Many food and beverage products can begin as fads and move through the spectrum to things with a commitment to branding and marketing.

The FDA has been very reluctant to address “natural” as a food claim with a definitive regulation for the claim. Consumers have become increasingly aware that natural claims on food and beverage packaging are unregulated, and lawsuits regarding misleading natural claims have been flying fast and furious.

In response, some food marketers have turned to evasive synonyms to avoid issues with natural claims on food and beverage packaging. Then there are the made-up words.  “Naturality”?

Consumer trust and loyalty to brands and products are predicated on credible product descriptors. In food and beverage packaging design, it’s best to keep it real.

Remember good carbs, bad carbs?  It was not so long ago that all carbohydrates were to be shunned in pursuit of a healthy diet.  Then, thanks to food industry and dietary professionals, the word spread that some types of carbs are actually an important part of a healthy diet and everyone moved on.

Well, fats and oils are now at that turning point.  A new trend report from the Center for Culinary Development and Packaged Facts, a market research firm, confirms that consumer perceptions are evolving.  There is a lot more public discussion of good fats, bad fats, and consumers are more accepting of the notion that a balanced diet should include the good fats.  The take away for food producers and marketers of products that include healthy, good-for-you fats?  Investing in advertising, promotional campaigns, and informative packaging design can accelerate the learning curve for consumers.

Coca-Cola found out just how iconic its packaging really is when consumers complained about being confused by regular variety Coke holiday packaging. In an effort to support the World Wildlife Fund to celebrate polar bears, the company introduced new white cans for its regular Coke variety for the holidays. The problem? To consumers this holiday promotional packaging design looks very much like Diet Coke’s silver packaging and many consumers bought the wrong product. Other consumers were perplexed because they couldn’t find the Regular Coke red cans.

Consumers really do use packaging design as an in-store reference in grabbing the products they want to buy. Comments from Coke loyalists flew fast and furious all last week, which should give food and beverage marketers pause. Packaging really is one of the most potent tools for branding and marketing food and beverage products.

In terms of eating, a normal day is breakfast, lunch and dinner…right?  Not so much, any more.  The new norm is anytime, anywhere, and anyhow when it comes to feeding ourselves.  Food manufacturers and marketers are responding in large numbers by ignoring the traditional food “day parts”, and positioning their products as great choices whenever consumers decide to partake.  The only rules appear to be product availability and portability.  Jack-in-the Box sells breakfast items 24/7 and McDonald’s has claimed that it sells more than 20% of its oatmeal menu item outside traditional breakfast hours.  Grab and go when you’re hungry seems to work best for current lifestyles and demands.  While this trend has been around for awhile, it appears to be on the road to becoming a permanent fixture in eating culture.  The task for food producers is to find innovative packaging and branding/positioning strategies to cash in on consumers free form feeding frenzy.

Hats off to those food brands and products that are so iconic they become Halloween costumes.  Party goers in bottles, cans, packages, and actual product likenesses,  displaying brand identities.  I personally saw a hot sauce, a candy bar, a couple of insurance spokespersons, and a dizzying array of beers, including “the most interesting man in the world”.   And, more importantly, everyone else who saw those costumes got it.  That’s the power of great creative, and what a windfall ROI in brand development!

Artisan…the word that elevates any food or beverage product.  According to researcher Datamonitor, there are over 800 food products that proudly display this moniker,  200 of which were introduced or re-branded in 2010 alone.  Why?  Producers and marketers adopting this descriptor have claimed impressive sales lifts, and in some cases, with increased price points that are commensurate with the elevated status that the word artisan connotes.    Never underestimate the power of a well chosen word in branding and positioning.

There seems to be a food fight going on over how food facts should be provided to consumers on packaged food products. Everyone agrees that “front of package” information should be provided for a quick read so that consumers can make an educated product choice and move on the next item on their shopping list. The Grocery Manufacturers Association has launched its voluntary “Facts Up Front” approach that provides quantified information on the amounts of sodium, fat, sugar, and calories in the product. This approach allows consumers to interpret this information in the context of their individual dietary concerns and needs. The Institute of Medicine recently released its proposal for an interpretive system that rates products based on the amounts of saturated and trans fats, sodium, and added sugar in the product. The result would be a front of package rating system, 0-3 stars, checks, or some other graphic symbol, to assist consumers in making healthier choices. The FDA will probably ultimately decide the real issue of whether consumers can make their own decisions using facts or whether they need an interpretive system that implies good versus bad choices. One thing is clear…front of package information, in one form or another, will become the norm in food packaging design.