Last week’s PKN + Food & Drink Business LIVE Disruptive Innovation Industry Forum in Sydney made one thing clear: if you want to move forward, you need to start thinking creatively.
So what trends are disrupting the food, beverage and packaging space? How can brands harness creativity and innovation to move forward? And which brands are getting it right?
In case you missed it or simply want a quick recap, here are 5 lessons we took away:
- DRIVE THE CHANGE, DON’T LET IT DRIVE YOU
This wasn’t the first time we’ve been fortunate enough to see Richard Sauerman, aka “The Brand Guy”, in action. You might remember he spoke at the inaugural LIVE forum last year. The message might be the same, but it’s just as powerful as ever:
You need to drive change.
As Sauerman said: “What’s your area of impact? Within that area, you have the choice to drive change. Set your sights on the moon and you’ll reach the moon. If you want to be disruptive, then be bold, audacious and outrageous.”
And with that, he set the tone for what was to come.
- HARNESS THE POWER OF LEAN
Lean isn’t new – it’s been around for decades. But Tim McLean, managing director of TXM Lean Solutions, wants everyone in the food and beverage industry to understand its power when it comes to increasing value and reducing waste.
The goal here is not just to put Lean processes in place to “speed things up”, but to spend time considering what the customer wants and how you can use Lean to match their needs. (Learn more about Lean, and its impact on quality.)
- GET READY FOR DIGITAL DISRUPTION
“The food industry will change. You need to either disrupt your own business or face the serious risk of being disrupted.”
That was the message from David Baveystock from Comet Line Consulting.
David explored how digital business models are transforming the traditional food and beverage channels. According to Baveystock, the 6 key areas of disruption are:
- Online retail
- Meal kit providers
- Online meal delivery portals
- Diet-based businesses
- Direct delivery of prepared meals
- Online marketplaces
And there were plenty of examples of companies who are already out there exploring new ways of thinking.
Creatovate managing director Dermott Dowling shined the spotlight on the likes of Kogan Pantry, Dish’d and Marley Spoon. While Bulla’s sales, marketing and innovation specialist Nick Hickford shared how the dairy brand is partnering with creative startups to explore new territory.
- RETHINK PACKAGING DESIGN
There was no shortage of talk about packaging design. For HP’s Jason Beckley, the focus was on digital and how brands are looking to digital printing to stand out from the crowd. Case in point is the ever-popular “Share a Coke” campaign and Heinz’s recent foray into augmented reality.
But packaging doesn’t have to be digital to be disruptive, as Gourmet Garden’s head of marketing and innovation, Jacqui Wilson-Smith, proved. She talked through the company’s journey to the award-winning “lightly dried herbs”. The message here was about how brands can delve deep into consumers’ lives to find out their challenges and how to solve them. For Gourmet Garden, it was about finding a way to give home cooks access to fresh herbs.
Not sure where to start? Learn more about the 3 labelling trends food and beverage manufacturers need to know.
- PRIVATE LABEL IS GROWING
Private label is not only here to stay — it’s growing. Fast. Currently, private label enjoys over 21% of the grocery market (excluding fresh produce), up from 18% in 2012.
According to Coles’ Brand senior packaging technologist, Adam Robinson, consumers now trust that the quality of private label products is as good as name brands.
Mostly this comes down to Gen Y consumers, who are reported to be a key driver of private label acceptance. They simply weren’t around in the early days of private label goods and their questionable quality.
According to research by Nielsen, private label products are going to represent at least a quarter of all grocery sales by 2020.
And the rise of ALDI and German discount supermarket Lidl (which is about to arrive in Australia) are sure to make this a reality.
Here are three statistics that stopped us in our tracks:
- In the USA in 2013, the total consumer packaged goods (CPG) revenue was $660 billion, with $8b coming from online sales. For 2018, it is estimated that $36b of $718b will come from online sales. — Adam Ransom, SGK Asia-Pacific managing director
- Private label now enjoys over 21% of the grocery market (excluding fresh produce). — Adam Robinson, Coles Brand senior packaging technologist
- 900 million people worldwide don’t have access to safe drinking water, while Australians spend $600 million annually on bottled water. — Daniel Flynn, Thankyou Group
You may also find this article on disruptive innovations ready to rock your supply chain interesting.
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And here was our take on the inaugural LIVE forum in 2014. This is where we first heard The Brand Guy talk about doing epic … things! You can catch up on the 2016 event, Breaking Boundaries LIVE, here and the 2017 Future Unpacked event here.