Tag Archives: beverages

Plant Milks Keep Growing

What is your favorite milk drink? And, no, we don’t mean do you prefer skim, 1%, 2%, or whole milk. Because today there are more “milks” available to consumers than just dairy milks.

There are numerous plant-based milks available made from various nuts, seeds, grains, and even vegetables. But the latest is one you might not be familiar with on your morning cereal – it’s a plant milk made from – wait for it – potatoes! The new potato milk is made by Swedish company Dug Drinks and is already being sold in Great Britain with distribution in the U.S. planned later this year.

Dug is far from alone as a non-dairy milk on the shelves and in coffee shops. With a growth in health-conscious diets such as vegan and non-animal food fare, the market has seen a proliferation in food and drink plant-based substitutes made from oats, almonds, cashews, flax seeds, and more. Plant-based foods are trending up as consumers gain interest in sustainability, health, and ethical practices. And of course the pandemic’s impact on supply chain also pushed people to try different products when their old reliable products were not easily available.

“Milk” drinks alone are a large category of products. Sales of plant-based milks in the U.S. were an estimated $2.5 billion at the end of the year, accounting for 15% of all retail milk sales and 35% of all plant-based foods. Repeat sales of the beverages averages 75% for a high level of retention. And, plant-based milk is one of the most developed plant-based food categories and is consistently shelved next to dairy milk.

Most plant-based milks are made the same way; the main ingredient is soaked in water, then pressed or blended into a puree. This is then filtered to remove particles, and additional ingredients may  be added to gain better texture and flavor.

However, the drinks also carry a political weight; the dairy industry had been petitioning the U.S. Food and Drink Administration to prohibit the  term “milk” label for all non-dairy products. And many drinks made from nuts can have adverse environmental impacts, particularly when water is scarce in communities. But, the category is quite innovative and keeps growing to offer additional plant-based drinks and foods.

Now that you know some of the options, what is your favorite milk?

Group Activities and Discussion Questions:

  1. Review key aspects of developing a product positioning map, including determining the axis labels for positioning.
  2. Poll students: What are reasons for people to consume plant-based foods?
  3. Show a brief video about the rise of plant milk: https://youtu.be/yoAeuJlt7qo
  4. Have students use laptops to review various plant-based milk drinks.
  5. Oatly oat milk: https://www.oatly.com/en-us
  6. Dug potato milk: https://dugdrinks.com/
  7. Silk almond milk: https://silk.com/
  8. Ripple plant milk: https://www.ripplefoods.com/
  9. Divide students into teams and have each team develop a positioning map for a plant-based drink. What are the two axis labels they will use?
  10. What happens if the axis labels change?

Source:  Petersen, V. (28 February 2022). Have we reached peak plant milk? Not even close. New York Times.

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Pepsi Buys Rockstar

Energy drinks are still a growth market, particularly as consumers shift away from sugary sodas and towards lower-calorie drinks. To gain market share, beverage companies are increasingly looking for new categories of drinks. And towards that end, PepsiCo recently acquired Rockstar Energy Beverages for roughly $3.85 billion dollars.

Acquisitions are a common way of entering new markets with new products. But acquisitions can also be problematic. Rockstar and Pepsi have decidedly different looks and branding, as well as different target markets and products. In addition to energy drinks, Rockstar makes sugar-free and low-calorie drinks, plus organic and fruit juice beverages.

The energy drink category is one that continues to grow, including new entrants such as Bang and A-Shock. And of course, Coca-Cola is in the mix with Monster. According to Mintel, energy drink and energy shot sales are approximately $13.5 billion; the market grew nearly 30% between 2013 and 2018.

Now that’s energy!

Group Activities and Discussion Questions:

  1. Discuss acquisitions as a marketing strategy. When is this effective? When is it not effective?
  2. Show Rockstar Energy drink Web site: https://rockstarenergy.com/
  3. Show Pepsi Web site: https://www.pepsi.com/
  4. Rockstar YouTube channel: https://www.youtube.com/user/RockstarEvents
  5. Pepsi YouTube channel: https://www.youtube.com/user/Pepsi
  6. Have students compare the two sites. What are similarities and differences?
  7. Discuss the risks and challenges that Pepsi might have with the acquisition.

Source: Associated Press; Wall Street Journal; other news sources

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Snack Robots are Invading Campuses

Robots are invading! Ok, maybe they aren’t exactly invading the entire nation, but they do seem to be infiltrating some college campuses. Rest easy though – these robots seek not to dominate, but instead to satisfy students’ craving for delivered snacks.

The self-driving robots are being tested for “last mile delivery” courtesy of PepsiCo, and have been deployed to serve students at the University of the Pacific’s campus in Stockton, Calif. The robots, developed by robotic company Robby Technologies, carry a variety of healthy snacks and drinks from Pepsi’s ‘Hello Goodness’ product line. Ordering and delivery on campus is easy using an app that is available to all students with a University of the Pacific email address. With a single charge, the robot can travel 20 miles to find a multitude of consumers eager for a quick snack.

The robots do have a normal work hour shift of 9-5 (sorry, no late night munchies) and deliver products to 50 areas around the campus. The robots are equipped with cameras and headlights so that they can navigate in rain and darkness. And, with six-wheels and all-wheel drive, curbs, rough paths, and steep hills can be handled with ease.

Students – are you hungry now?

Group Activities and Discussion Questions:

  1. Discuss the impact of robots and drones on marketing.
  2. Show a video of the Pepsi SnackBots: https://youtu.be/skUbYVmRogI
  3. More information can be found at Pepsi’s Website: https://www.pepsico.com/news/press-release/pepsicos-hello-goodness-snackbot-is-off-to-college01032019
  4. Information on the robots from Robby: https://robby.io
  5. Discuss how to build and use a SWOT analysis grid: strengths, weaknesses, opportunities, and threats (internal and external factors).
  6. Break students into teams and have each team build a SWOT analysis grid.
  7. Based on the analysis, what are the issues and risks that might occur?
  8. Debrief by building SWOT analysis grid on the white board.

Source: Ad Week, other news sources

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