DAWN FARMS TOP 9 | ISSUE 33| 2019

GLOBAL UPDATE ON CONSUMER, MARKET AND MENU INSIGHTS. 

1. GRAB-AND-GO AT SUBWAY

Subway Australia has launched its first grab-and-go menu in the University of Queensland in Brisbane, one of its busiest stores. The new initiative will be trialled for six months, and will allow impulse consumers in a hurry to grab a premium ready-made wrap or salad, instead of ordering from scratch. Pre-made options include Mediterranean Chicken with Pesto Mayo wrap, Roast Beef with Smoky Tomato Chutney wrap, Smashed Falafel with Tzatziki salad and Carved Turkey with Cranberry Relish salad. In the US, Subway has just launched its Naturally Pit-Smoked Brisket (slow smoked for at least 13 hours) sandwich on a limited edition basis – watch the reaction as Subway puts it to the test with consumers in BBQ’s Texan heartland >> 

2. COSTA CORNERS COMMUTERS 

Another food-to-go player focussed on speeding up transactions is Costa, who has just launched the first of several new mini-sites targeting commuters. This Lewisham station store in London and others will be takeaway only, with a limited coffee and bakery menu on offer via contactless payment options. Costa has also released its new autumn menu with lunchtime deals now available from 11am to close, featuring returning warming treats like Bonfire Spiced Hot Chocolate and Bonfire Spiced Cold Brew. 

3. GREENCORE’S FRESHTIME ACQUISITION 

Food-to-go manufacturer Greencore has acquired Freshtime for £56mn, a well-established supplier of food-to-go salads, chilled snacks and prepared produce based in Lincolnshire, UK. Freshtime is a good strategic fit for Greencore, in terms of product and channels to market (convenience and grocery retail) and will ultimately expand Greencore’s share of the fast-growing food-to-go salads and chilled snacking market.  

4. ICELAND RANGE REVITALISATION

Discount retailer Iceland is rolling out a major launch of more than 550 new and improved products to its own brand range from September, along with a pipeline of new Limited Editions. Recently it advertised a new role for a ‘Burger-tasting Expert’ signalling that it’s taking its food credentials seriously. Frozen perceptions globally are changing – as consumers take note of new product and ‘clean label’ innovation in the category.  Frozen ready meal launches grew by 25% globally between 2017-18 (Innova Market Insights). Iceland’s range will focus on key categories like pizza, ready meals and fish and will factor in seasonal events like Halloween as well broader food trends such as restaurant-style, street food and takeaway-inspired. 

5. GOLDEN NUGGETS OF OPPORTUNITY

The unassuming chicken nugget has been getting a Millennial makeover. Last year Leon launched 100% gluten free chicken thigh nuggets; this year it took a plant-based approach and launched jackfruit nuggets. This summer McDonald’s has been tapping into consumers’ love of spicy chicken with its spicy chicken nuggets. McDonald’s also launched a vegan nugget trial in Norway back in March. KFC recently launched plant-based Beyond Chicken Nuggets in the US with a large media splash. And finally, Burger & Lobster has reached a new level with limited edition Spicy Posh Lobster nuggets – available from 8pm you can pick up a box of 6 Spicy Atlantic Lobster Nuggets for just £15.95.  

6. SANDWICH SUITS UP FOR DINNER

With more than 3.5 billion sandwiches bought annually in Britain, the £8bn sandwich market is a mainstay of eating out habits. A conference speaker this week said the FTG market was changing so rapidly that the sandwich would soon become nothing more than a ‘distress purchase’. London’s new generation of premium sandwich artists beg to differ and are positioning the sandwich as an evening meal to appeal to a wider and younger demographic.  Take the new upmarket version of Japanese Katsu sandwich (giant hunk of Iberico Pork on crustless brioche bread, shredded cabbage, raspberry sauce). Other sandwich-focused restaurants to watch out for are Max’s Sandwich Shop, Sons & Daughters and Morty and Bobs.  

7. FRENCH CONSUMERS TRADING UP

French consumers are putting their money where their mouth is – buying less, but spending more.  This trend is one we picked up on earlier in the year – in France, food inflation is starting to take effect but also consumers are choosing higher value products benefiting sectors such as limited edition, exclusive lines and organic produce. While grocery footfall is stable, according to IRI, this ‘reduced consumption’ pattern is a concern for supermarkets - watch this clip to find out more >>, not least because competition from discounters, online retailers and delivery is rising. Meal deliveries by Deliveroo or Uber Eats from restaurants have increased by 75% since the beginning of the year, impacting on grocery spend. 

8. TACO BELL MENU REVAMP

Taco Bell USA is scaling back its menu to make a greater impact with consumers, highlighting best sellers and its best combo meals. The new ‘decluttered’ menu refresh goes into effect 12th September, which comes on the heels of other QSR brands (McDonald’s, El Pollo Loco and Jack in the Box) skinnying down their menu boards. Taco Bell’s speed of service has reportedly improved 3 seconds at lunch and 2 seconds at dinner, which has helped drive more than 4 million additional transactions in Q4. In Q1 2019 the chain handled some 6mn more drive-thru transactions compared to Q2 2018. The key driver: customers received an experience that was, on average, 7 seconds faster. 

9. HEMP BURGERS COLLABORATION

New Zealand chain BurgerFuel (88 stores) has partnered with 2 New Zealand startups to develop two nutritious and under-appreciated local ingredients, hemp and pūhā, for the Kiwi burger lover. Hemp seeds are high in protein, with a myriad of nutritional benefits, ideal for meat-free burgers. Once a controlled substance, the plant is now considered a farm commodity, meaning fewer barriers to market entry and a surge of activity in the sector. According to CBD market research firm Brightfield Group, hemp is could reach $22 billion by 2022. Another unusual ingredient in the ‘Electric Pūhā burger is the native leafy green pūhā, a fermented kraut.

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