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ANTENNAE TREND REPORT
MORNING ROUTINE
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MORNING ROUTINE This issue delves into our morning routines, exploring how these are changing with new innovations that meet us the second we wake up and help us get ready for our day.
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CONTENTS
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FOCUS 10 Changing Tastes Changing cultures and lifestyles are altering our diets
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FEATURES 16 Wake Up and Smell the Coffee Shifting consumer tastes are slowly changing the morning coffee 22 Transition Time How are consumer brands reacting to the changing habits of commuters?
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28 The Changing Commute The morning commute of the future could look very different from now 36 Morning Snacking Is breakfast becoming a thing of the past? SPOTLIGHTS
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08 Marmite Cereal Bar 14 Nairn’s Cereals 26 Magimix See-Through-Toaster 34 The Cappuccino Coffee Stick 40 Graze 42 Kellogg’s 44 Lillipops Iced Soothies
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Consumers’ shifting tastes and needs are offering brands new opportunities. We are witnessing an increased variety of offerings on the market that suit increasingly specific needs and wants
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Marmite Cereal Bar www.marmite.com The world’s first savoury cereal bar was introduced late last year by the spread brand, Unilever’s Marmite, offering a rival to sugar filled alternatives. The bars are rich in B-vitamins, high in fibre, and low in calories. As part of the launch of these new products that offer an interesting brand extension, Marmite developed a number of advertisements to grab the attention of consumers, which poked fun at their own creativity by presenting controversial product ideas that would have represented even further brand stretches. These ads contained Marmite branded products such as a shower gel, a perfume or a fabric softener. As part of the campaign Marmite gave away spoof toothpaste, which inside actually included a sample of the cereal bar, along with two discount coupons – one for a Marmite cereal bar and the other for a tube of toothpaste. Consumers could choose which coupon to use depending on whether they love or hate the product. Not only did Marmite’s advertising stand out but so does its packaging on the counter – clad in its chic black wrapping it is very different from anything else. The packs engage consumers in dialogue, with the area usually reserved for the brand or product titles, dressed in statements such as “Hate mornings?” and “Hate to be late?” Such product development and marketing is very disruptive, but is required to make an impact in a highly developed market place, where Kellogg’s are the dominant brand – they currently occupy 75% of the UK cereal bar market.
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Changing tastes Changing cultures and lifestyles are altering our diets
During the economic difficulties of the past few years consumers have moved away from buying breakfast from coffee shops or sandwich outlets on the way to work, opting instead for eating cereals at home or at the office. 87% of adults in the UK eat cold breakfast cereal on a daily basis. In addition, for 6% of adults in the UK, cereal is more than purely a breakfast staple – it is a easy, quick, cheap, and nutritious meal substitute that is a regular and core food choice. Less than 1% of the British population now starts their day with the traditional ‘English breakfast’, compared to fifty years ago when it was more than half of us (The Times). Due to a lack of time, cooking breakfast is an inconvenience, and as such is seen as a treat that consumers enjoy at weekends or more likely whilst on holiday. New research from Mintel reveals British consumers are spending £28 each on breakfast per year – a total of £1.8 billion, and this is estimated to rise to £2.2 billion by 2014. The traditional breakfast is changing, not only in England but also around the world, as migration of cultures is affecting the conventional foods that have been eaten in each region. As cultures merge our tastes are shifting – children are six
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Left: Cafe Lahore’s menu www.lahorecafebar.co.uk
The traditional breakfast is changing, not only in England but also around the world, as migration of cultures is affecting the conventional foods that have been eaten in each region
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As cultures continue to merge, different regions become increasingly influenced by different customs and traditions, and as our lives become increasingly fast paced we can expect the popularity of quick, convenient and healthy foods to grow
times more likely than their parents to be mixed race, according to the Equality and Human Rights Commission, and this shift is creating a new culture – a new audience for food brands. The mix of tastes that consumers are brought up on in their own homes, and have access to in supermarkets, cafes, and restaurants is resulting in a desire for new flavors and varieties that have not been seen before. As an example of this is Café Lahore in Bradford, which offers a choice for breakfast including a milkshake to start, a chicken karaki with keema nan, and a bowl of jam roly poly and custard to finish, taking influences from the owner’s background as an Asian, an Englishman, and a Yorkshireman. Here they celebrate the “new Englishness”. Whilst in Asia increased urbanisation, rising levels of disposable incomes, exposure to western culture and cuisines, including dieting habits, are combining to shift the foods that are typically eaten. Consumers are increasingly demanding options that are not only healthy but also quick and easier to consumer when pressed for time, and as a result of these factors they have witnessed growth in the cereals market.
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In addition, retail channels in Asia are becoming increasingly sophisticated, presenting more opportunities for brands to have product availability and visibility, expanding into large and lucrative untapped markets. Furthermore, Asians living in urban areas are leading fastpaced lifestyles, leaving little or no time for proper meals. Consumers’ snacking habits are changing as they eat less during a meal, and more small meals a day. Consequently sales of cakes and pastries are booming, offering a quick snack alternative to a full meal. As cultures continue to merge, different regions become increasingly influenced by different customs and traditions, and as our lives become increasingly fast paced we can expect the popularity of quick, convenient and healthy foods to grow. In addition, brands will have to develop new flavor options that meet changing tastes of the new generation.
87% of adults in the UK eat cold breakfast cereal on a daily basis Less than 1% of the British population now starts their day with the traditional ‘English breakfast’ (The Times)
British consumers are spending £28
each on breakfast per year – a total of £1.8 billion, and this is estimated to rise to £2.2 billion by 2014 (Mintel)
The bakery and cereals market in AsiaPacific is growing by 6.4% annually, and is predicted to reach $68.6bn by 2013 (Datamonitor)
However, breakfast cereals make up only
4.9% of that with sales excepted to achieve $2.8bn this year. But the appeal of convenience as well as the demand for healthy alternatives is expected to drive sales in the category to a predicted value of $3.3bn by 2013 (Datamonitor)
The cakes and pastries category was valued at $24.4bn in 2008, and is predicted to grow to $35.sbn in 2013 (Datamonitor)
In addition, growth in cookies and crackers segments is also expected to grow – at a rate of 4.9%, reaching a value of $9.53bn in 2013 (Datamonitor)
Whilst Britain spends much on breakfast Top: Cultures are increasingly merging, as more families have mixed heritage Bottom: The East is increasingly influenced by Western tastes
cereals, France spends just £7
per
head on cereal and Spain, Italy and Germany spend only £5 each (FDIN)
10% of under-16s in Britian live in a family with mixed black or Asian heritage (EHRC)
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Nairn’s Cereals www.nairns-oatcakes.com Scottish oakcake and biscuit maker Nairn’s have made their first foray into breakfast cereals with a new gluten-free range. All of the oats in the cereal are harvested and milled at a glutenfree mill in Sweden, offering an alternative to traditional cereals. Previously coeliacs have been restricted in what they can eat, with the quality of gluten-free products on offer quite low. Nairn’s research highlighted the frustration among coeliacs and allergy aware consumers who felt they were often having to compromise on taste and enjoyment. In addition to being gluten-free the cereals are also wheatfree, dairy-free and the recipe contains no nuts. The design of the packs are true to the brand look and feel, and incorporate imagery that conveys the natural goodness in a simple and elegant way. In addition the packs reflect the wholesome taste and enjoyment that’s central to the product, separating it from it’s competitors in the ‘free-from’ aisle. Around twenty percent of the population believe that they are allergic to certain foods. As more of the population get diagnosed with allergies we can expect to see more food brands developing specific products aimed at this growing market.
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Wake up and smell the coffee Shifting consumer tastes are slowly changing the morning coffee
Around the world, people wake up and drink coffee as part of their morning routine. From the small, local coffee shops of Milan, to the Starbucks of LA, coffee is part of our culture, and synonymous with the morning start. However, the traditional formats of the beverage are shifting as consumers change their daily habit due to greater awareness of authenticity and a need to save money. In a market worth over $70 billion globally, any change in consumer habits can provide brands with large and profitable opportunities. One of the most successful developments in the coffee market in the last few years has been the coffee capsule machine – such as the Nespresso machine from Nestle. The brand reported that the business grew 22% globally in the last year, showing a massive uptake by consumers for a more premium coffee offering at home. The success of the device is partly down to its ease of use – the ‘plug and play’ format finding traction in a number of consumer markets, such as home cleaning. The ability for the product and the brand to make consumers feel special is also a major factor for the strong uptake – the company calls its consumers “club members” and only retails its products at high-end stores and online. In the UK, the Nespresso business has grown by over 35% during the previous year with its products only being retailed in Harrods and Selfridges, enhancing its upmarket image. The growth in uptake of Nespresso is symptomatic of a growing trend for consumers to make their coffee at home, instead of going down to a café. The in-home coffee market in the UK has grown by 17% in value during the last five 16 | 17
years, as consumers trade up from jars of instant coffee to more expensive and luxurious options, such as Nespresso. The trend is set to continue, with a further growth of 25% by 2014 expected – driving the value of the market in the UK to over £976 million (The Guardian). The major factor in this shift from getting café coffee to in-home coffee has been the changing economic conditions over the last few years, which have pushed consumers towards an in-home solution and a trade up. This trade up has drawn consumers to want a luxurious experience at home, with the feeling that they’re still getting the authentic café experience. However, there are variations on this across the world. Despite the global instant coffee market being worth almost $18 billion, the value of the US market is only $700 million, with Americans preferring to drink filter or brewed coffee. Trading-up for them will be a different route and with the UK, with many wanting a more authentic or refined taste to their morning coffee. This is also true in Australia, where consumers are becoming more educated and aware of the types and variations of coffee beans, treating them in the same way as wine is. Consumers now have an increasing appreciation for the specific farm and plantation where the coffee bean comes from, giving rise to the ‘single origin’ brew. This is an unsurprising development, with the trend for authenticity and provenance in the food market continuing to grow due to consumer demand. The increase in consumer awareness and appreciation of coffee has also changed some perceptions as to how
Left: Consumers are demanding more authenticity from cafés, such as ‘single origin’ brew Below: Costa has seen strong sales due to its policy of giving consumers variation and choice
The in-home coffee market in the UK has grown by 17% in value during the last five years, as consumers trade up from jars of instant coffee to more expensive and luxurious options, such as Nespresso No.41 ANTENNAE
The coffee market is a constantly evolving market, with consumer tastes shifting to more specialized tastes and brewing techniques, as well as a move to trade up their coffee at home and cut back on going to big brand cafés for the morning commute
coffee should be made, with more obscure methods replacing the traditional Italian coffee machines in Melbourne, Australia. With the increasing prevalence of single brew coffee, brewing methods that are better at extracting the subtle flavors of these beans have gained popularity in coffee shops. The siphon technique has become particularly popular, and despite the expertise needed for such a complicated process, it has found considerable traction among consumers who not only appreciate its excellent results but also the theatrical nature of the act. The growing market for connoisseur coffee has led many coffee houses to move away from mass brands or flavors, and shift to providing a unique experience for the consumer – from how the beans are ground, to what cup is used. This is generally sold at a premium to consumers, justified by the specialty of the equipment, the coffee and the experience provided. Coffee brands, such as Starbucks and Costa, can’t compete with these small, innovative coffee shops for quality or experience and are therefore looking at other ways to get footfall. By providing a broad variety of products and flavors many of the brands are hoping to catch the commuter market, tempting them away from coffee made at home
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or in the office. The Costa brand has increased UK sales by over 35% through providing a diverse range of new flavors, generating £203 million this year. An example of the variety includes the Flat White, made with a small amount of heated, but not frothed, milk blended into three small shots of espresso – giving the drink a “velvety, smooth texture”. The drink was released in the UK after a strong uptake in New Zealand and Australia, showing that a willingness to keep an eye on global trends is key to bringing new and disruptive products to market. Starbucks has reacted to this increased competition from smaller, more contemporary coffee shops with a two fold strategy. The coffee brand has started to move the interior design of its shops to something more stylized, organic and cultured. Last year Starbucks redesigned twelve stores across the globe to reflect this change in ethos, using recycled and reclaimed material and creating a more ‘local’ feel to the interior, moving the brand away from its mass-produced look. It is thought that if this proves to be a successful strategy then the process could be rolled out across a majority of the stores across the globe. The other innovation launched by Starbucks has been the Discoveries chilled coffee range, which has been released
Far left: Siphon brewed coffee is finding traction among consumers who have developed a more refined and educated taste Left: Nespresso has seen an increase in sales due to consumers wanting to ‘trade-up’ their coffee experience at home
in international markets. Housed in packaging aligned with traditional, disposable coffee cups, the range is found in the chilled cabinets of most major supermarkets in an attempt to capture the consumers who will go in to grab their breakfast for work, appealing to the desire for accessible on-the-go indulgence. The coffee market is a constantly evolving market, with consumer tastes shifting to more specialized tastes and brewing techniques, as well as a move to trade up their coffee at home and cut back on going to big brand cafĂŠs for the morning commute. Coffee will always be synonymous with the morning routine, but its format will change. We could soon see big coffee retail brands moving into the readymade market, aiming to recapture the consumers that no longer go into their shops for their morning caffeine buzz. We should also expect consumers to increasingly want to diversify their tastes with single brew coffees and become more aware of its flavors and provenance. Brands that react to these shifts in taste and preference will be quick to capture an emerging market, and those that keep an eye on global consumer trends will be able to introduce disruptive products to new markets more easily.
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New technologies are allowing brands to connect with consumers in more ways - developing new solutions that can solve basic problems as well as creating new markets and needs
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Transition time How are consumer brands reacting to the changing habits of commuters?
The daily commute to work is increasingly becoming an important part of the morning routine – the growing prevalence of smartphones and wireless technology is allowing us to become more productive while on the move. The average UK commuter spends 139 hours a year commuting to and from work and brands that make it more possible for us to make good use of this time will find traction among a large consumer group. Recent studies have shown that many people see the morning commute as a “transition time” from the home to work – a period of time in which the mindset and attitude is changed to suit the office. A large proportion of commuters across Europe use the train as the main means of getting to work and this gives them an opportunity to do a number of tasks that would otherwise be done at the office, or at home, thus making the “transition period” a productive one too.
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This desire to be more productive on our train and tube journeys has increased as the means in which to do those tasks have become more available to us. The growth in smartphones and wireless technology has allowed consumers to stay in contact with the office without being there. Sending emails no longer has to wait until laptops are plugged in – consumers can send and receive data on a variety of devices, digest it and respond, while still on the move. Consumer brands have reacted to the increased need for portability with products and services that allow people to be more productive while on the move. The latest example is the Apple iPad, which is set to not only change the way we connect to people on the move, but also in how we digest information. Part of the daily commute is the purchase of a newspaper to read on the way to work – with smartphones, and now the iPad, consumers are able to gather all the latest news and sport from online sites, reducing the need for a paper copy. The loss in visual quality from using a smartphone compared to newspapers will be vastly reduced with the introduction of the iPad and its 9.9inch screen. With commuters being a vital consumer sector for advertising and media companies, a change
Right: The traditional morning paper is facing competition from online formats
Recent studies have shown that many people see the morning commute as a “transition time” from the home to work – a period of time in which the mindset and attitude is changed to suit the office
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Right and far right The increase in tablets and smartphones has made accessing information while mobile far easier than before.
With commuters being a vital consumer sector for advertising and media companies, a change in the way they gather information will be of huge significance to them
in the way they gather information will be of huge significance to them. It is important that media and advertising firms look to new product release like the iPad, and develop suitable strategies to reach future consumers. With the increase in the capabilities of mobile technology, commuters have not only changed how they perform traditional activities like reading the paper, but what tasks they complete while on the train or tube. Consumers are increasingly using their journey time to the office to read electronic documents and edit them, to use social networking or to watch videos. This in turn will influence not only the hardware that is designed for mobile usage, but also the media platforms.
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The average British commuter spends an hour travelling a day, to and from the office. This provides a unique opportunity for consumer brands to develop services and products that make this time more productive and enjoyable – commuters have nowhere else to look or things to do while on a train. It provides the perfect opportunity for brands to capture their attention and draw them into their values. We should expect consumers to continue to demand the ability to make any spare time a productive time, particularly as part of their morning routine.
Media companies will have to plan for a future where information is no longer picked up in the paper by commuters, but through online portals. Forward thinking media companies, such as the Guardian, have created apps that generate income and have moved the brand into the new-media area. We should expect other media companies to follow suit, and move their product into formats that are more in tune with the new generation of connected commuters.
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Magimix See-Through-Toaster www.magimix.com The technology of toast making has hardly changed in the last hundred years – the Magimix toaster could soon change that. The transparent windows and hidden quartz rods allow you to see how brown your morning breakfast toast has got, rather than relying on the standard timing system. However, the premium price of £160 could deter many consumers from giving up on the traditional toaster. As consumers continue to see the kitchen as the hub of the home, we should expect appliance brands to invest heavily in design and technology innovations within this area, hoping to catch a share of an ever growing and lucrative market.
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The changing commute The morning commute of the future could look very different from now
The morning commute has changed considerably for the populations of many countries across the world in the last 50 years, in terms of the distance and the means of travel. For example, Britons spend as much time commuting a day as they did 30 years ago but the distance has increased by over 50%. With major cities across the world expanding in size as their populations increase, getting to work in the morning will require some new and innovative forms of transportation. The way in which cities expand outwards means that although the major employment areas never really move out of the centre of town, residential areas continue to be built further away. This results in the need for faster, more efficient transport links and an infrastructure that can provide an increased capacity. Trains are a commonly used form of transport for a majority of the world’s major cities – and the bullet train has become the most efficient, and fast, form of this. The bullet train, or high-speed rail, has become the poster child for quick and efficient travel. This year’s World Cup in South Africa had them built for the tournament, with the hope that they will provide the foundations for a stronger infrastructure and economy in the country. Bullet trains are already used throughout Japan, providing millions of morning commuters a way
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of getting from the suburbs and into the centre of major cities like Tokyo. The importance of a high-speed rail network, and the economic benefits it can give a city, has prompted California to explore the possibility of deploying a network across the state, linking the major cities. A recent report on the plans to construct a high-speed network in California claims that over 55,000 new jobs would be created, generating over $7.6 billion in new business for LA. The planned finish for 2035 would provide the drive for high-density, mixed use development projects, which is actively encouraged in California under the states global warming laws. The introduction a high-speed rail network would also mean commuters from out in the suburbs would be able to get to the centre of LA quicker and without the use of a car – an important thing in a state that is committed to reducing its carbon emissions. Similar plans are being drawn up in the UK for a high-speed connection between Birmingham and London, which is hoped will not only aid commuters, but also relieve the pressure on the housing market around the capital. Commuters in London will soon have a more efficient and sustainable mode of transport around the city in the form of the new Routemaster bus.
The way in which cities expand outwards means that although the major employment areas never really move out of the centre of town, residential areas continue to be built further away
Above and right High speed rail networks provide ways of getting commuters from the suburbs and into the city, quickly and efficiently.
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Right The new London Routemaster bus is more fuel efficient and comfortable than its predecessor
After the original model was retired a few years ago, plans for an updated, modern version were made. Although still using a number of design cues from the original Routemaster, the new design is sleek and contemporary, as well as being highly energy efficient. Featuring the latest emission reduction technology, the new Routemaster will be 40% more efficient than a conventional diesel double-decker bus. The updated model is expected to enter service in 2012, in time for the Olympic games, at a cost of £7.8 million for the first five buses. Buses made after this will cost in the region of £300,000 – it is hoped that these high costs will be recouped by an increased use by commuters, who will prefer the comfort and cost of using these new buses compared to getting to work by car. However, the fastest growing commuter system in London is cycling, with the number of commuters cycling into the capital growing by 14% in two years. To encourage this further, the city government has introduced two new initiatives for the capital – a bike hire system and the Cycling Superhighway project. The bike hire initiative is based on the bixi scheme in Montreal,
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which is said to of revolutionized commuting in the Canadian city. The bixi scheme had over a one million users last year, and has considerably reduced the congestion in the city. For the London initiative, over 40 modifications have been made to the standard bike in order to make it more vandal proof and durable, such as making the bikes heavier and encasing all the cables in the alloy frame. Users of the system, will pay £3 for an electronic tag that releases the bike, which has an “access charge” of £1 for a day. The bike can then be used for free for 30 minutes – after that, the charges rise to £1 for an hour, £6 for two hours and £50 for a 24-hour period. It is hoped that the £140 million bike hire scheme will encourage a cycling revolution in London, with over 6000 bikes used and 400 stations constructed for it. It’s expected to encourage an extra 40,000 bike journeys in the capital per day. The superhighway project is another initiative in London that has been created to encourage commuters to cycle into work. The project involves the creation of 12 cycle ‘superhighways’
Featuring the latest emission reduction technology, the new Routemaster will be 40% more efficient than a conventional diesel double-decker bus
that begin in the outer boroughs of the capital and go through to the centre. It is hoped that by providing commuters with a safer, dedicated cycle route into London, they’ll be more likely to want to journey in every morning on their bikes. The morning commuting is going through a radical change the world over, as major cities continue to grow in size, forcing the population to live further from where they work. The pressure of providing a strong and efficient infrastructure that is also environmentally sustainable will be one that is felt by many of the worlds major cities in the next few decades. Looking at the successful initiatives of other large cities, such as Tokyo, will give us an insight into what the morning commute of the future could look like.
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More of us live on-the-go lifestyles, resulting in the need for brands to develop solutions that are simple, convenient, and easy - fitting in with our complex lives
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The Cappuccino Coffee Stick Designed by Heo Jeong Im, the ‘Cappuccino Coffee Stick’ gives consumers the ability to make their morning beverage in a highly portable format. All you need to make your coffee is hot water to stir the stick in – instantly providing you with your favorite flavor. Designed to be produced in a variety of flavors, this concept could soon be picked up by a major consumer brand that wants to challenge consumer perceptions of instant coffee, making it more of a premium offering. With the US instant coffee market only valued at $700 million compared to $17.7 billion globally, a premium offering could stir up interest in American consumers and move the format away from its current perception as being value.
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Morning snacking Is breakfast becoming a thing of the past?
The age-old maxim ‘eat breakfast like a king, lunch like a prince and dinner like a pauper’ is going unheeded in modern society. These days people don’t always have the opportunity to sit down to a bowl of cereal – recent research shows that one in five people are too busy to eat breakfast before they leave home in the morning (FDIN). More significantly, cultures are changing as dieting and healthy eating has become central to more lifestyles, with those who diet from a young age setting themselves up to be burdened by the dieting culture. This trend is set to continue in the future, as the teens of today, and especially girls, are worried even more about their weight than the previous generation. According to Andrew Hill, professor of medical psychology at the University of Leeds, it is inevitable that teenagers today have a more acute sense of weight and body shape than previous generations had at the same age. “They are growing up in an environment where it is considered normal to exclude food”, said Professor Hill. According to a recent survey in the UK by the Schools Health Education Unit teenage girls routinely skip up to two meals a day. Breakfast is the most common meal forfeited – 26% of
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14 and 15 year-olds start the day on an empty stomach. In addition 22% miss lunch, and 10% eat just one meal each day. Whilst the children’s market represents a huge opportunity to develop healthy offerings with a number of schools now banning unhealthy snacks, like chocolate and crisps, the largest market is adults who are increasingly watching what they eat, as they have become more aware of the content of food and the effect that it can have on their overall health. In our increasingly busy lifestyles, consumers want a product they can just grab and go. Many products are now on the market that try to bridge the divide between a meal and a snack – offering more functional benefits than a snack like a chocolate bar, and more convenience than a meal. The entire cereals bar market is now considered as a day-to-day snack option, and they are now at home alongside traditional confectionary in store. Whilst times are economically tough consumers are looking to treat themselves
Left: Moma’s choice of breakfast foods www.momafoods.co.uk
without feeling guilty about it. Consumers are increasingly seeking healthier snacks without having to compromise on taste, fulfilling both their rational and emotional snacking needs. As a result consumers are demanding smaller products as they pick up food on the way to work, or small enough items they can carry with them. London based brand Moma! are on a “mission to revolutionize breakfast on-the-go”. Their desire is to banish bad breakfast habits, and give an alternative to consumers who grab an unhealthy alternative because of the convenience. Their products include Oatie Breakfasts which are a great source of slow releasing energy that “fills you up and keeps you going”, as well as Oatie Shakes that are “ultimately a meal in a bottle”.
Consumers increasingly seek foods that meet their desires to be healthy without complexity, fitting into their increasingly complex lives and without compromising on taste
Moma! are available at stalls across London’s transport system, in key locations such as Euston, Charing Cross, and Waterloo Stations, allowing London’s daily commuters to pick up the healthy snack on route to work. In addition Moma! foods are also sold on Virgin flights. With breakfast occasions declining, brands No.41 ANTENNAE
One in five people are too busy to eat breakfast before they leave home in the morning (FDIN).
26% of 14 and 15 year-olds start the day on an empty stomach. In addition 22% miss lunch, and 10% eat just one meal each day
Cereal bars are worth £310 in the UK alone (FDIN)
million
The cereal bar market showed a 4% year-on-year growth (IRI)
Special K cereals have seen a 12%
growth in the last year, thanks to finding the right balance between an indulgent treat and a healthy one (Sanjay Panchal, Kellogg’s Head of Marketing)
There are 836 ‘fans’ of the Facebook page ‘Eating cereal in the afternoon
Many kids are purchasing unhealthy snacks for breakfast en route to school. Some 16% of the kids questioned said their parents handed over £2.22 on average each day so they could buy their breakfast on the way to school. (Opinion Matters)
are diversifying into the buoyant morning goods category. Bread manufacturers are struggling, and they have especially ventured into the wider bakery category. Earlier this year we wrote about Warburrton’s snack range ‘Snackadoodle’, and last year also saw Hovis launch branded muffins, crumpets, teacakes, and pancakes into a market that has been dominated by own-branded products. Warburrtons, too, have seen growth in sales of their crumpet range – moving from a seasonal product to an all year round option, and have now also launched their own range of muffins. Earlier this year the premium tea brand Yogi expanded their portfolio beyond drinks which offer to cleanse and into cereals that offer to revitalize, rejuvenate, or energize. In the US they have now launched Granola Crisps, allowing consumers to add goodness to their day. This unique product allows the consumer to eat cereal-like flakes straight out of the bag, whilst on-the-go, or pour into a bowl and have with milk. As well as traditional morning food brands, we are witnessing established snacking brands varying their offerings into products that are perceived by consumers to have greater health benefits. Fazer Confectionary have launched an innovative new variant of its wine gums. Tutti Frutti Yoghurt Splash has a liquid centre that gives the taste of fresh fruit, offering a more healthful alternative to sugary sweets. Just this month we have also witnessed Nestle develop a new treat for families, expanding its Kit Kat brand
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In our increasingly busy lifestyles, consumers want a product they can just grab and go. Many products are now on the market that try to bridge the divide between a meal and a snack – offering more functional benefits than a snack like a chocolate bar, and more convenience than a meal
range by launching a new Vanilla Yogurt that contains bite size pieces of Kit Kat. Whilst Fazer’s confectionary may only be taking a small step to creating healthier snacks, McVitie’s have launched a range of biscuit and cereal bars that combine the taste of their digestive biscuits with the goodness of cereals. Biscuits are seriously under-represented in ‘eat now’ fixtures, especially within convenience fixtures in grocery outlets, and so are missing out on impulse purchases. Sarah Heynen, Marketing Director, McVitie’s, commented that consumers love the “fact that it is healthier than a chocolate bar, but more substantial and tasty than a cereal bar”. If the biscuit’s share of ‘eat now’ fixtures rose from 6% to 25%, the category could create an extra £286 million in sales, which is a huge opportunity for retailers and brands alike (United Biscuits). All of these product releases are resulting in a highly competitive marketplace, in which healthful brands are also diversifying their offerings. The original natural snacking brand, Nature Valley, has developed a new line of on-the-go nutritional snacks made from granola called Granola Nut Clusters. They’re bite size and come in a resealable bag making, them more manageable to snack on, and less messy than the bar alternatives. As well as being perfect for snacking on-the-go many consumers are mixing them with yoghurt.
trend towards healthy eating. Kellogg’s are marketing their Special K Chocolatey Delight beyond the morning as a post-dinner treat – something to satisfy consumers’ sweet teeth without compromising their diets. However, this product is still found in the cereal aisle and called cereal, which in most consumers minds is still synonymous with breakfast.
Above left: Nature Valley Nut Clusters www.naturevalley.co.uk
As consumers increasingly seek foods that meet their desires to be healthy without complexity, fitting into their increasingly complex lives and without compromising on taste, we are witnessing a large number of new product introductions into stores. These products are disrupting existing categories and developing new ones. The brands that will be successful are those that will be able to convince consumers that their products are suitable for eating occasions other than breakfast. In addition, brands that are diversifying into this developing category will have to align consumer perceptions with their new offerings. We are going to witness brands trying to convince consumers that cereals are not only for breakfast, and other brands attempt to convince consumers that their products are more beneficial than the alternatives.
Some brands have stretched their products even further to try and capture the large consumer
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Graze www.graze.com For the last eighteen months Graze has been delivering boxes of healthy snacks through the post to consumers’ doors. Each delivery is made up of a combination of flavor varieties that are different each time surprising their customers every time they open a box. With a selection of over 150 different types of nutritional foods the consumer simply goes onto the website and tells them whether they like, love, would try them, or want to ‘bin’ them, ensuring that they always receive a combination that they would like. Graze’s unique business is proving a big hit with businessmen and women too busy to go to the shops, and after just six months they had over 15,000 subscribers, delivering over 80,000 boxes per month. The brand is continuing to grow through word of mouth and the utilization of social networking, as they link into consumers’ willingness to pay a premium for the convenience of having food sent to them with little effort or thought, whilst being ensured of the superior quality and the health benefits that they receive from ‘grazing’ rather then ‘snacking’.
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Kellogg’s www.kelloggs.com Last year, Kellogg’s tested a new cereal box that was shorter and deeper resulting in saving 8% packaging material, whilst still containing the same amount of cereal. It was tested for six months in Kroger and Wal-Mart stores in Detroit. This design not only helps save the environment but it is easier to store in cupboards, saves space in-store on shelves, and the 5% reduction in cubic space reduces transportation costs. In addition saving shelf-space allows them to present a wider variety of products, with Kellogg’s declaring the move to be “the most significant innovation” in cereal boxes in half a century. This year we can expect to see Kellogg’s roll out the new boxes globally, and with the change we are likely to see even more brands change their packaging to not only help save the environment, but also offer added value to the consumer whilst saving costs.
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Lillipops Iced Soothies www.lillipops.com Nausea, heartburn and exhaustion are common symptoms of morning sickness and they can make it difficult to enjoy being pregnant. This illness sees expectant mothers vomiting many times a day, unable to eat and drink without being sick and can lead to nutrition issues for the mother and growing baby, severe weight loss and dehydration. Around eight out of ten British expectant mothers suffer from morning sickness and it effects women differently from case to case. Some may only feel mildly queasy when they wake up, where others have the severe reactions, which may even leave them hospitalized. To aid women suffering from these symptoms a new naturally flavored Ice Soothie has been released from Lillipops. Ice is the perfect substitute for treating pregnant women that struggle to keep their fluids down, and product testing shows they ease nausea and heartburn, alleviate dry mouth and help provide energy for expectant mums. They are now available from pharmacies throughout the UK, and the makers hope that women will keep them in their prenatal kit. There are five different subtle flavors as pregnant women have heightened taste buds. Each flavor has also been chosen for their benefits as remedies. Ginger, for example has traditionally been used to ease symptoms of nausea; camomile for its calming and relaxing properties; citrus fruits are refreshing; and mint is revitalizing and calming for the digestion. In addition, the creator has built a great story and brand around the products, helping other expectant mothers with advice online and sharing her story. The brand is even named after her daughter, Lilly, whom she was pregnant with when she first had the idea whilst suffering a bad case of morning sickness herself. The strategy of personalizing a brand is a growing trend, giving the brand authenticity and believability.
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NewEdge is a dynamic innovation consultancy with a world-class team of strategists, trend forecasters, researchers and designers. We bring a fresh approach to growing business and brands through upstream and downstream innovation. Our Antennae Trends team are continually researching emerging design trends, ideas and creative thinking – from global product innovation through to changing consumer lifestyles. These trends indicate how markets are being shaped in the future, giving us the ability to anticipate how consumers are likely to respond to future solutions. If you would like to know more about our innovation consultancy, our trends research, or if you would like to comment on anything you have read in this issue, please email The Antennae team: antennae@new-edge.com
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NEWS
This month we opened our new Chicago office. NewEdge Chicago is being led by Tim Hand who recently joined us from Kraft. With more than 17 years CPG experience in strategic planning, brand marketing and category management we believe that Tim is a great addition to our already experienced team, and hope that the Chicago office will be a huge asset to the company as we look to build closer relationships with our clients globally. “I am very excited to be joining NewEdge, and to be heading up the new Chicago office. It is clear to me that innovation and meaningful differentiation is the key to success. I look forward to helping our clients achieve this and more�, Tim Hand
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ANTENNAE TREND REPORT
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Copyright Š 2010 NewEdge Consulting Limited The entire content of this document, both physically and intellectually, remains the property of NewEdge Consulting Limited. Please apply to us for written permission required to copy, or amend, in full or part. Opinions, conclusions, and other information contained within are not necessarily expressed by NewEdge Consulting Limited. 48 | 48