Strategic advice for the food and beverage industry

Danone embraces provenance and e-commerce

Provenance, naturalness and newness are three of the elements that are well-proven to be a strong way to get consumers’ attention, freshen up their interest in your category and connect to some of the strongest growth trends.

These three are the key components of the now well-established Dairy 2.0 strategy, which is about taking a traditional, everyday dairy product from one country and introducing it in another country where the product looks new, exciting and different.

Greek yoghurt is one of the most successful and high-profile examples. Back in 2007, an entrepreneur took Greek yoghurt and took it to American consumers as something new and exciting. Greek’s thick, satisfying texture was a revelation to Americans, who had previously been accustomed to thin, overly-sweet yoghurts. This pleasurable eating experience coupled with the novelty factor – people are food explorers now, restlessly hunting for new and interesting eating experiences – helped make Chobani’s Greek yoghurt into a $1.7 billion, market-transforming success.

Another example is Icelandic Skyr, which has become a success in Sweden, Denmark and the US, where the Siggi’s brand has built a $200 million annual sales business – at premium prices – on the back of its Icelandic identity.

Danone has now embraced the strategy, with its launch in the UK in June of The Danone of the World, a new brand and a new range of five yogurts and fermented milks inspired by ‘authentic’ recipes from around the world.

The range includes:

  • Greek-inspired Straggisto yogurt
  • High-protein Icelandic Skyr
  • Lebanese-inspired Laban
  • Indian-inspired Lassi drink
  • A savoury Turkish-inspired Ayran drink

Cleverly, the range isn’t going into mass distribution right away in the big retailers but is being launched exclusively in Ocado, an online retailer with a strong base of higher-income, food explorer customers.

It’s a great way for Danone to experiment with new product ideas, find out what sells and what doesn’t and what refinements brand and products need before going to mainstream grocery.

Whatever category you are in, making your products different, giving them a connection to some provenance and trying them out in alternative channels – and particularly e-commerce – is a strong way to reduce your NPD risk and maximise your chances of success.

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Posted in Editorial, Mainsite

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