Jeff Hilton, Chief Marketing Officer and Co-Founder, BrandHive06.02.14
More than 200 years ago a cowboy’s drink choices were a little simpler. Primary contenders were moonshine, black coffee in a tin can and muddy water.
However, as we enter today’s nutritional New Frontier, there are hundreds of product variations in the cognitive, beauty, energy and nutritional drink space alone.
Sifting through that many drink choices is difficult even for the most educated consumers. Most functional beverages feature various levels of health and nutrition claims, and they’ve covered the basics in marketing their product.
So what makes an elixir different? In a word: branding.
More than ever, products can be very specifically targeted to meet the precise needs, lifestyles and purchasing behaviors of their consumers. So much so that some drink companies label their product boldly to address their target market directly, eliminating much of the guesswork for buyers—like the “Yoga” line by Ditalia Foods, or Yoga Earth’s “Balance” and “Vitality” pre- and post-yoga supplement drinks.
In addition, branding has evolved into a very focused and targetable art. Gone are the days of obscure hit-and-miss creativity. Branding today appeals directly to both the rational and emotional needs of potential consumers.
Five common consumer emotions showcased in the functional beverage industry include:
For the hardcore athlete, pre-workout supplements and protein drinks, performance-enhancement beverages and all things creatine, lead the pack. A supplement company called Beast nailed it with its brand by adopting a name that encourages the consumer to become a sexy beast, a wild beast, a strong beast. In one word, the company embodies the brand promise.
Beast, which touts itself as the “fastest growing company in the sport nutrition industry,” has twice been awarded “Breakout Brand of the Year,” by Bodybuilding.com.
Toe-to-toe, Beast ready-to-drink beverages and drink powders offer many of the same ingredients as its competitors. However, they know something that others forget: no one reads a label on a product that does not engage and make a connection at the brand level. After an athlete is drawn to pay attention to a product, he or she will then, and only then, look further for the key ingredients desired.
Social Consciousness
According to Yoga Journal, the number of Americans who practice yoga has increased 29% in just two years. This growing lifestyle segment is responsible for around $10.3 billion per year spent on yoga classes and related products.
These dedicated, evangelistic consumers are the ones who completely internalize—reflected in buying power—the words of Hindu spiritual teacher and Yoga advocate Sri Swami Sivananda who said, “Serve, Love, Give, Purify, Meditate, Realize. Be Good, Do Good, Be Kind, Be Compassionate.”
That’s why the Neuro line of functional beverages, introduced by philanthropist, entrepreneur and Bosnia native Diana Jenkins, speaks powerfully to this demographic. Neuro lines, which include Bliss, Sonic Passion, Trim, Daily and Sleep have a personal and emotional appeal. The packaging and names speak to the desired outcome, and the company internalizes the philosophy of social consciousness not only through its mindfulness in drink formulation, but also through its activism in causes that include the conflict in Darfur, AIDS research and various types of international justice.
The primary demographic in the New Age space are female, aged 40-55, well educated and above-average income consumers. They are looking for beverage ingredients such as: kombucha, spirulina, vitamin C, soy, antioxidants, acai and other super foods.
Vitality & Wellness
Ensure was a breakthrough product that rapidly emerged in the 1990s. It was often recommended by doctors and nutritionists—primarily for an aging population. That expanded to include Ensure as a nutritional supplement to children with specific health problems. Ensure has long been a dietitian’s go-to beverage for dietary supplementation.
In the last decade, Ensure and similar convenience-driven products continued to appeal to a maturing, health-conscious crowd. It creates a simple, peace-of-mind wellness solution without speaking to any specific health conditions or needs. These health-concerned consumers are seeking functionality in the form of fiber, calcium, protein, vitamins B12, C and D, potassium, omega-3s, folic acid, magnesium and antioxidants.
Contentment & Youthful Energy
There’s a fine balance that has to be achieved in approaching the research and development of functional beverages targeted at families, youth and those related to this demographic. Historically-popular electrolyte-enhanced drinks have garnished a lot of criticism in recent years due to high sugar and sodium content, and carbonated soft drinks are on a death spiral, which doesn’t look to be ending any time soon.
This trend is backed by a clinical report by the American Academy of Pediatrics that strongly warned against giving children drinks high in sugar, sodium and caffeine. The criticism has definitely made a negative dent in sales for drinks like Gatorade or Powerade, and clearly opens the market to new products and beverage opportunities.
That said, there is an 80% failure rate for new functional beverage products entering the marketplace. These failures are largely due to inadequate promotion, inadequate consumer/trade education, sub-par product performance and a lack of differentiation.
Two cases in point: Wat-Ahh! bottled filtered/fortified waters and Green Mustache fruit and veggie smoothies. Remember those brands? I didn’t think so.
The evolution of the market has paved the way for new nutritional delivery vehicles including tubes, gels, gummies, chews and shots. These highly convenient delivery formats are particularly interesting to groups with an on-the-go lifestyle, including pre-teens, 20-somethings and “soccer moms” to name just a few. These audiences are looking for energy and daily performance enhancement as well as functionality in the form of single-serving drink powder mixes; energy-enhancing formulations and lightweight, temperature friendly packaging conducive to active lifestyles.
Ingredients of interest to them include caffeine, potassium, probiotics, antioxidants, low-sugar and added protein.
Social Connectivity
Social connectivity as an emotional buying motivator matters more to the millennial generation than most others. Millennials are connected and wired. Although widely touted as a group of independent thinkers, they are also highly influenced by user-generated content reflective of the opinions and recommendations of their peers, which are predominately delivered through online venues and social media.
More than 75% of millenials are on social media. They share information, foods, pictures, advice and opinions 24 hours a day, seven days a week. They provide unsolicited endorsements and criticism regarding products and brands they encounter in their lives.
These buyers are enticed by brand storytelling that engages them and makes them part of a user community. That engagement happens through feeds, tweets, apps, photos and videos that engage the senses and influence buying choices.
Much of the growth and success in the coffee/tea beverage marketplace is due to the power of social connectivity. It’s not just the Starbucks experience that is connecting millenials; it’s the cultural buzz in social media. Millenials are providing unsolicited YouTube evaluations and endorsements, and even downloading beverage apps—any apps. Seventy-seven percent of millenials own a smartphone. To engage its loyal customer, Teavana recently created a smartphone app that allows customers to learn about new blends, monitor steeping time and search for retail stores.
What’s Next?
What about the recently introduced food additive Palcohol?
Approved by FDA just a few months ago, powdered alcohol has the potential to lead functional beverages into a whole new rodeo. This new ingredient came as a surprise to nearly everyone, and there is little question that new points of controversy will emerge. However, it’s definitely a trend to watch, as Palcohol has the potential to present interesting regulatory and marketing challenges.
Kombucha, the slightly fermented tea ingredient, pushed the alcohol envelope ever so slightly (although it is only 0.5% alcohol) when it was introduced. This product that claims to be a “wonder drink” may pave the way for researchers to accept socially unacceptable, regulated and once-illegal substances as additives in functional beverage and food formulations. Only research, development and a whole lot of consumption will tell. When it comes to functionality in foods and beverages, the “Wild, Wild West” is still a very real place.
Jeff Hilton is chief marketing officer and co-founder of BrandHive. He has 36 years of broad-based business experience, including more than 20 within the natural products industry; contactus@brandhive.com.
However, as we enter today’s nutritional New Frontier, there are hundreds of product variations in the cognitive, beauty, energy and nutritional drink space alone.
Sifting through that many drink choices is difficult even for the most educated consumers. Most functional beverages feature various levels of health and nutrition claims, and they’ve covered the basics in marketing their product.
So what makes an elixir different? In a word: branding.
More than ever, products can be very specifically targeted to meet the precise needs, lifestyles and purchasing behaviors of their consumers. So much so that some drink companies label their product boldly to address their target market directly, eliminating much of the guesswork for buyers—like the “Yoga” line by Ditalia Foods, or Yoga Earth’s “Balance” and “Vitality” pre- and post-yoga supplement drinks.
In addition, branding has evolved into a very focused and targetable art. Gone are the days of obscure hit-and-miss creativity. Branding today appeals directly to both the rational and emotional needs of potential consumers.
Five common consumer emotions showcased in the functional beverage industry include:
- Strength & Endurance—athletes and body builders;
- Social & “Zen” Consciousness—yoginis, environmentalists;
- Vitality & Wellness—aging population, nutrition-conscious consumers;
- Contentment, Youthfulness & Energy—families, soccer moms, hobby nutritionists, millennials;
- Socialization, Connectivity to One’s Self-Defined Faction—any microcosm (e.g., Red Bull or Rockstar recovery at the fraternity, Naked juice in one’s running group, HealthTea at the book club).
For the hardcore athlete, pre-workout supplements and protein drinks, performance-enhancement beverages and all things creatine, lead the pack. A supplement company called Beast nailed it with its brand by adopting a name that encourages the consumer to become a sexy beast, a wild beast, a strong beast. In one word, the company embodies the brand promise.
Beast, which touts itself as the “fastest growing company in the sport nutrition industry,” has twice been awarded “Breakout Brand of the Year,” by Bodybuilding.com.
Toe-to-toe, Beast ready-to-drink beverages and drink powders offer many of the same ingredients as its competitors. However, they know something that others forget: no one reads a label on a product that does not engage and make a connection at the brand level. After an athlete is drawn to pay attention to a product, he or she will then, and only then, look further for the key ingredients desired.
Social Consciousness
According to Yoga Journal, the number of Americans who practice yoga has increased 29% in just two years. This growing lifestyle segment is responsible for around $10.3 billion per year spent on yoga classes and related products.
These dedicated, evangelistic consumers are the ones who completely internalize—reflected in buying power—the words of Hindu spiritual teacher and Yoga advocate Sri Swami Sivananda who said, “Serve, Love, Give, Purify, Meditate, Realize. Be Good, Do Good, Be Kind, Be Compassionate.”
That’s why the Neuro line of functional beverages, introduced by philanthropist, entrepreneur and Bosnia native Diana Jenkins, speaks powerfully to this demographic. Neuro lines, which include Bliss, Sonic Passion, Trim, Daily and Sleep have a personal and emotional appeal. The packaging and names speak to the desired outcome, and the company internalizes the philosophy of social consciousness not only through its mindfulness in drink formulation, but also through its activism in causes that include the conflict in Darfur, AIDS research and various types of international justice.
The primary demographic in the New Age space are female, aged 40-55, well educated and above-average income consumers. They are looking for beverage ingredients such as: kombucha, spirulina, vitamin C, soy, antioxidants, acai and other super foods.
Vitality & Wellness
Ensure was a breakthrough product that rapidly emerged in the 1990s. It was often recommended by doctors and nutritionists—primarily for an aging population. That expanded to include Ensure as a nutritional supplement to children with specific health problems. Ensure has long been a dietitian’s go-to beverage for dietary supplementation.
In the last decade, Ensure and similar convenience-driven products continued to appeal to a maturing, health-conscious crowd. It creates a simple, peace-of-mind wellness solution without speaking to any specific health conditions or needs. These health-concerned consumers are seeking functionality in the form of fiber, calcium, protein, vitamins B12, C and D, potassium, omega-3s, folic acid, magnesium and antioxidants.
Contentment & Youthful Energy
There’s a fine balance that has to be achieved in approaching the research and development of functional beverages targeted at families, youth and those related to this demographic. Historically-popular electrolyte-enhanced drinks have garnished a lot of criticism in recent years due to high sugar and sodium content, and carbonated soft drinks are on a death spiral, which doesn’t look to be ending any time soon.
This trend is backed by a clinical report by the American Academy of Pediatrics that strongly warned against giving children drinks high in sugar, sodium and caffeine. The criticism has definitely made a negative dent in sales for drinks like Gatorade or Powerade, and clearly opens the market to new products and beverage opportunities.
That said, there is an 80% failure rate for new functional beverage products entering the marketplace. These failures are largely due to inadequate promotion, inadequate consumer/trade education, sub-par product performance and a lack of differentiation.
Two cases in point: Wat-Ahh! bottled filtered/fortified waters and Green Mustache fruit and veggie smoothies. Remember those brands? I didn’t think so.
The evolution of the market has paved the way for new nutritional delivery vehicles including tubes, gels, gummies, chews and shots. These highly convenient delivery formats are particularly interesting to groups with an on-the-go lifestyle, including pre-teens, 20-somethings and “soccer moms” to name just a few. These audiences are looking for energy and daily performance enhancement as well as functionality in the form of single-serving drink powder mixes; energy-enhancing formulations and lightweight, temperature friendly packaging conducive to active lifestyles.
Ingredients of interest to them include caffeine, potassium, probiotics, antioxidants, low-sugar and added protein.
Social Connectivity
Social connectivity as an emotional buying motivator matters more to the millennial generation than most others. Millennials are connected and wired. Although widely touted as a group of independent thinkers, they are also highly influenced by user-generated content reflective of the opinions and recommendations of their peers, which are predominately delivered through online venues and social media.
More than 75% of millenials are on social media. They share information, foods, pictures, advice and opinions 24 hours a day, seven days a week. They provide unsolicited endorsements and criticism regarding products and brands they encounter in their lives.
These buyers are enticed by brand storytelling that engages them and makes them part of a user community. That engagement happens through feeds, tweets, apps, photos and videos that engage the senses and influence buying choices.
Much of the growth and success in the coffee/tea beverage marketplace is due to the power of social connectivity. It’s not just the Starbucks experience that is connecting millenials; it’s the cultural buzz in social media. Millenials are providing unsolicited YouTube evaluations and endorsements, and even downloading beverage apps—any apps. Seventy-seven percent of millenials own a smartphone. To engage its loyal customer, Teavana recently created a smartphone app that allows customers to learn about new blends, monitor steeping time and search for retail stores.
What’s Next?
What about the recently introduced food additive Palcohol?
Approved by FDA just a few months ago, powdered alcohol has the potential to lead functional beverages into a whole new rodeo. This new ingredient came as a surprise to nearly everyone, and there is little question that new points of controversy will emerge. However, it’s definitely a trend to watch, as Palcohol has the potential to present interesting regulatory and marketing challenges.
Kombucha, the slightly fermented tea ingredient, pushed the alcohol envelope ever so slightly (although it is only 0.5% alcohol) when it was introduced. This product that claims to be a “wonder drink” may pave the way for researchers to accept socially unacceptable, regulated and once-illegal substances as additives in functional beverage and food formulations. Only research, development and a whole lot of consumption will tell. When it comes to functionality in foods and beverages, the “Wild, Wild West” is still a very real place.
Jeff Hilton is chief marketing officer and co-founder of BrandHive. He has 36 years of broad-based business experience, including more than 20 within the natural products industry; contactus@brandhive.com.
