DAWN FARMS TOP 9 | ISSUE 23| 2019

GLOBAL UPDATE ON CONSUMER, MARKET AND MENU INSIGHTS. 

1. MCDONALD’S MEXICAN SUMMER

McDonald’s Germany has put a Mexican twist on its menu with the introduction of the El Gigante burger with a creamy jalapeno lime sauce, corn and nachos, a Mexican Chilli burger and Hot Chilli Nachos. Under its Signature range there are a few newcomers including the Salsa Avocado with fiery jalapenos, bacon and spicy Irish cheddar cheese. Meanwhile in Spain, McDonald’s has launched its new Signature Collection with recipes created by chef Dani Garcia – watch the video intro here >> As well as Iberian and goats cheese toppings there is a Smokehouse burger which includes bacon, 150g beef patty and mature cheddar cheese.

2. COMPASS POINTS NORTH

Compass Group, the world’s largest catering company, recently announced the acquisition of its Nordic rival, Fazer Food Services, for around €475mn. The company has been focusing more on its core food business this past year and this acquisition will strengthen its presence in Scandinavia. Frazer Food Services has more than 1,000 sites throughout Finland, Sweden, Norway, Denmark, and Estonia and employs over 7,000 people generating a turnover of €593mn (2018). The remaining Frazer Food Services will now focus on its bakery and confectionery business while the Compass Group expands its meal services for the armed forces, offices and schools.  

3. FEED THE WORLD (SAFELY)

Conflict and insecurity, climate shocks and economic turbulence are the main drivers of global food insecurity according to FAO. Closer to home, supply chain costs continue to rise, driven by sterling, shortages, and changing consumer demand. The 12-month-rolling average for UK foodservice price inflation is 5.75% (CGA Prestige, April 2019), well above consumer price inflation. This has been largely driven in recent months by drinks, dairy and fish, with the impact of African Swine Flu not yet evident in recorded figures. Another rising concern is supply chain security and traceability, with a collapse in the number of hygiene and food safety checks, only 37% of standard checks were carried out in 2017-18 according the National Audit Office. 

4. SLOW BURNER: THE FIBRE GAP

Fibre’s positive impact on gut health is bringing it back into the healthy eating spotlight. There has been 14% annual growth in global products with a fibre claim in the last 4 years (Innova Market Insights) – for example superfoods like beans, chickpeas, beetroot. Most people know yogurt and fermented ingredients are good for the gut but there has been a surge in ‘high fibre’ NPD. Alongside protein claims, fibre is playing a larger role in sports nutrition (13% of new sports nutrition launches vs 6% in 2014). Consumers of all ages are beginning to understand the importance of a healthy digestive system and the impact fibre can have on overall wellbeing.  

5.  GOLDBELLY, DELIVERED.

Goldbelly is an online food hub in the USA which began in 2013 and now ships famous dishes from over 400 of America’s best restaurants, butchers and bakeries to consumers nationwide. Connecting favourite brands with food lovers around the country, this innovative service also offers monthly subscription boxes of sandwiches, desserts and anything in between. Sound like a gimmick? New York restauranteur Danny Meyer doesn’t think so – he’s just invested $20mn, recognising how brands can aspire to be on the Goldbelly hub.

6. CONDI-MENTAL MASHUPS

Heinz is creating a buzz in the USA with its recent condiment hybrid – Kranch (ranch and ketchup). This follows a series of Mayochup (mayo, ketchup), Mayomust (mayo, mustard), Mayocue (mayo, bbq) hitting supermarket shelves. This creative condiment approach is not so new on restaurant menus, particularly in Asian fusion cooking. Atlanta’s Ba Bellies tops Mexican street corn with a kimchi remoulade while the Pickled Monk in California tops brussels sprouts with bacon-gochujang jam. Other ‘hot’ newcomers include hot honey (eg honey spiced with malagueta chilli), check out Mike’s Hot Honey or Honey Blaze Dipping sauce. Also consider hotter harissa, with varieties including red pepper harissa with mayo and lemon pepper harissa. 

7. STEAL A BASE, STEAL A TACO

US Mexican QSR chain Taco Bell is a long term partner with Major League Baseball which is running its first ever European season in London. To celebrate, Taco Bell is bringing its long-running “Steal a Base, Steal a Taco” promotion to the UK this summer. During the upcoming two-game Red Sox-Yankees series on June 29th-30th, a stolen base in either game will win UK fans a free taco on July 4th from 2-6pm at any of Taco Bell restaurants. Essentially it’s all about giving away free tacos – but watch Taco Bell’s social media campaign here to understand how you get your hands on one >> 

8. AMAZON SOARS

Online retailer Amazon has been crowned the world’s most valuable brand by Kantar, seeing its brand value grow by 52% during 2018-19 to reach $315.5bn. McDonald’s is the only food and drink specialist in the top 10 (+3%), while Chipotle increased its value by 40%. Amazon’s soaring expansion is due to its entrance into new categories such as grocery, healthcare, food delivery and voice recognition. In the UK alone, Amazon is expected to account for a fifth of online spend by 2024, with food/grocery anticipated to be its largest growth sector (+180% growth forecast by 2024).  

9. LIDL’S TARGETS CENTRAL LONDON

German discounter Lidl launched in London 25 years ago and now has around 88 stores across the capital, which is a fairly small presence given its 760 stores nationwide. It has however just announced a £500mn expansion plan, with 40 stores due to open in London over the next 5 years, a new London-based HQ and warehouse expansion in the region. Its first central London store is a refurbished Sainsbury’s in Tottenham Court Road. Due to open in Summer 2020, the central London store will sell its full range of products, including bread and cakes baked in-store and its popular middle-aisle items. Can Lidl transform the way Londoners shop?

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