DAWN FARMS TOP 9 | ISSUE 35| 2018

GLOBAL UPDATE ON CONSUMER, MARKET AND MENU INSIGHTS. 

1. COCA COLA BUYS COSTA

Hot off the press: Coca-Cola has bought Costa Coffee for £3.9bn. The UK’s biggest coffee chain (4,000 locations) was originally bought by Whitbread in 1995 from its founders Sergio and Bruno Costa for £19mn when it only had 39 shops. This move projects Coke onto a global platform for hot drinks, taking on Starbucks, Nestlé and JAB Holdings. Accelerating its existing global ambitions, Costa could triple its presence in China for example where it is second to Starbucks. Meanwhile Whitbread exits the £6.3bn out-of-home coffee market (Kantar), leaving it to focus on its Premier Inn portfolio. Click here for an infographic on coffee chains in the US and UK>>

2. KFC HAS FUN WITH DUNK & DIP

KFC Malaysia introduces a new limited edition take on its ‘Finger Lickin’ chicken menu. ‘Dunk & Dip’ is an innovative twist incorporating Crispy Tenders and a new taste and texture experience. KFC’s succulent Hot & Spicy Crispy Tenders come with barbecue Smokey Zesty Dip and peppery Crackling Rice Pops. KFC invites you to Dunk, Dip, Crunch Repeat - click here to watch>>.

3. CARNIVORES LIVE LONGER

New research suggests that red meat and cheese are beneficial for heart health. The study of 220,000 adults in 50 countries found that eating 3 portions of dairy and 1.5 portions of meat a day could cut the risk of early death by one quarter. Consumption can reduce the risk of suffering a stroke, heart attack or premature death when eaten alongside fruits, vegetables, and fish by around 25%. The Canadian study found that refined carbohydrates should be the bigger concern whereas “saturated fat contained in meat and dairy appears to protect the heart” (European Society of Cardiology).

4. STARBUCK’S MENU INNOVATION

Interesting breakfast snacking innovation from Starbucks US who has spiced up its successful sous-vide Egg Bites with a third flavour - new Chicken Chorizo Egg Bites (joining Bacon & Gruyere and Egg White & Red Pepper). Described as “smart choices to fuel your day”, cooked chicken chorizo sausage is combined with cage-free egg, chipotle salsa and cotija cheese with corn tortilla pieces on top. Earlier this year Starbucks launched new salad bowls and sandwiches featuring Sriracha Chicken and Oriental Smoked Duck. In Germany it has also introduced new Lunch Bowls - Chicken Bulgur, Beef Noodle and Vegan.  

5. WHAT’S TICKLING FRENCH TASTEBUDS?

French tastebuds are waking up to new and exciting flavours every day. Research consultancy Gira  is keen to stress that there is no lack of diversity in French fast food - today, there are at least 51 different concepts under the fast food umbrella such as bagel, burger, pizza, tacos or crepes. Three major trends include Asian (specifically Thai, Vietnamese and Chinese), bagels (300mn sold per year) and tacos (50mn).  Mexican-inspired chain O’Tacos (+200 outlets) has captured MIllennials’ attention with its very own ‘man vs 2.5kg taco’ competition, winning it 2.5mn fans on social media. Meanwhile, street food operator Took Took has helped fuel the popularity of Pad Thai.

6. NYP AMBITIONS

CEO of fast-growing Dutch pizza chain, New York Pizza, Phillipe Vorst revealed it’s opening 1 new store every week, that’s 200 franchises by the end of 2018. The pizza chain also supplies dough balls to customers in 16 countries via its wholesale Euro Pizza business - with major capacity expansion expected in 2019. Since more than 90% of its €95mn turnover comes from delivery, the latest technology matters - delivery software upgrades are currently being rolled out nationwide. As well as taste, health and sustainability are key drivers for the brand, from all-natural ingredients, minimizing C02 emissions to being a frontrunner in vegan pizza delivery.

7. FOOD APPS + MORE

‘Food apps’ is an increasingly competitive arena with many players now offering more than simply a delivery service. Verdict Foodservice ranks its top 10 apps for the restaurant industry – Yelp, OpenTable, Just Eat, Tasteful, Deliveroo, Foursquare, Domino’s, LevelUp, UberEats, and Starbucks. What makes them stand out? The Domino’s app contains a live delivery tracker to alert when the order is being prepared, cooked and checked for quality. This app increased Domino’s orders by 41% and over 11.5 million people have downloaded the app. OpenTable, for example, just launched a seating option in the app where the consumer can reserve seating at a restaurant or bar.

8. OPRAH’S CAULIFLOWER PIZZA

Kraft Heinz is employing some celebrity pulling power with its latest range of Oprah Winfrey-endorsed frozen products. The O, That’s Good! range of premium frozen pizzas are based on popular recipes (Pepperoni, Five Cheese, Fire Roasted Veggie for example) but the added nutritional benefit comes from ’low moisture part-skim’ mozzarella and one third of each crust is cauliflower. Adding to the feelgood factor is the fact 10% of the profits will be donated to charity. US consumers are embracing frozen food; growth in the category is accelerating (3%+) according to RBC Capital.

9. GENERATION Z TAKEOVER

Gen-Zers will outnumber Millennials by 2019, accounting for a third (32%) of the global population, according to Bloomberg. The generational divide between these two demographics brings new challenges for companies to try and engage with. Today’s teenagers have a higher awareness of where and how to spend their money. They expect goods to be delivered to them and show low brand loyalty. However, research shows Millennials will remain the dominant group in the 4 largest economies for now: China, US, Japan and Germany.