Sometimes It’s the Label That’s Artificial

Christian Science Monitor: “According to Consumer Reports, 60 percent of people believe a ‘natural’ label means packaged and processed foods have no genetically modified organisms, no artificial ingredients or colors, no chemicals and no pesticides. Forty-five percent think that ‘natural’ is a verified claim, but there’s no outside regulations as to when food companies can put the term on their products.”

“To add to the confusion, ‘organic’ is a regulated label, while ‘natural’ is not … this invites plenty of loopholes for food manufacturers to claim that what they are selling is ‘natural’ even when some of it may not be.”

“Companies do this because they know consumers are more inclined to reach for products that have natural ingredients over artificially-produced ones. The Consumer Reports survey corroborates this assumption: 73 percent of the study’s respondents currently believe the natural label means a product has no artificial ingredients or colors, and 72 percent believe that ‘natural’ means ingredients were grown without pesticides.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Kola House: Pepsi Generates a New Experience

“Known for its beverages, Pepsi is now moving into the restaurant business,” The New York Times reports. “The 5,000-square-foot space — on the same block as Milk Studios in Chelsea … will become Kola House, a restaurant-bar-event space that the company hopes will be both social hub and testing ground for new products.”

Kola House “will not be plastered with the Pepsi logo or filled with Pepsi products. Everything at Kola House will be centered on the kola nut, a bitter fruit that contains caffeine and gives cola beverages their name. Essentially, Pepsi is trying to market its product without marketing its product.”

Pepsi design chief Mauro Porcini: “Consumers will love your brand because your brand enables you to have the experience, but they don’t want to have the brand in their face. It needs to be very subtle, elegant, sophisticated.”

Pepsi marketing chief Seth Kaufman: “We are in a time where we have to transform how we connect with and engage consumers. If brands don’t do that today, they will be irrelevant tomorrow, whatever tomorrow is.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Less is More: Soda Pops as a “Cheap Treat”

The Wall Street Journal: “In some ways, the soda industry is returning to its early 20th century roots, when bottles were typically about 6 ounces and pop was a treat saved for a special occasion. It wasn’t until 1976 that 7-Eleven Inc. launched the 32-ounce Big Gulp at its convenience stores.”

“Now, once again, American soda drinkers ‘want to consume less but they still enjoy their favorite brands,’ said Marty Ellen, Dr Pepper’s chief financial officer. Dr Pepper is rolling out 7.5-ounce cans nationally this year, replacing 8-ounce cans it launched as an alternative to 12-ounce cans. Each 7.5-ounce can holds about 95 calories, compared with 150 calories for a 12-ounce can.”

This works out well for soda companies, which have stemmed losses by charging more for less: “At a Publix supermarket in Atlanta recently, a 12-pack of 12-ounce Coke cans was priced at $5.29, or 3.67 cents per ounce. An 8-pack of 7.5-ounce cans was priced at $3.99, or 6.65 cents per ounce.”

Mr. Ellen says the higher cost per-ounce aligns with consumer behavior because soda is still a “cheap treat.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail