It is one thing for food brands to pay tribute to veterans through product launches, patriotic packaging, and donations to advocacy groups. However, creating a unique product for each veteran who has ever served in the United States is a different challenge altogether. Just in time for Memorial Day, Fritos has collaborated with the nonprofit organization Carry the Load to produce 22 million special bags—one for every individual who has served in the U.S. military—celebrating the nation’s heroes. The snack brand, owned by PepsiCo, is also contributing $100,000 to support military members, veterans, first responders, and their families.
While many food products like candy and ice cream display their patriotism with the U.S. flag, those that go beyond and actively support veteran organizations tend to connect better with consumers. Last year, Budweiser introduced a new beer, Freedom Reserve Red Lager, inspired by a recipe discovered in George Washington’s military journal. Veterans, whose signatures appeared on the bottles, were involved in the brewing process, and part of the profits was donated to Folds of Honor, a nonprofit that provides educational scholarships to military families. This initiative helped boost sales for the beverage giant, as noted in an earnings call transcript. The company has frequently leveraged patriotic labeling and donations to Folds of Honor with successful outcomes.
It is no surprise that Fritos is making significant efforts to support the military. Its parent company, PepsiCo, runs an annual nationwide campaign known as the Rolling Remembrance Relay, which raises funds for the Children of Fallen Patriots Foundation, offering college scholarships to children whose parents lost their lives in military service. This year, several veterans driving Pepsi trucks transported an American flag that had flown on a Blackhawk helicopter in Afghanistan in 2012 from coast to coast, starting in Seattle last month. The drivers also visit students benefiting from the scholarships to express gratitude for their families’ sacrifices. The relay concluded at PepsiCo’s corporate headquarters in New York on Thursday. Although PepsiCo’s annual relay is not prominently advertised on its packaging or explicitly featured in marketing, the flag-bearing drivers organize events nationwide to garner support and raise funds.
In recent years, Ferrero International has been expanding its offerings through a series of high-profile mergers and acquisitions, but the global confectionery company, known for Ferrero Rocher, Nutella, and Tic Tac, is now focusing on its iconic legacy brands to boost sales and enhance its growing presence in the U.S. This week, Ferrero announced that Kinder Bueno—a popular milk or white chocolate-coated wafer filled with hazelnut and drizzled with dark chocolate—will launch in the U.S. in November. The Italian confectioner will also debut a boxed assortment of premium chocolates called Ferrero Golden Gallery Signature, as well as a new Tic Tac flavor called X-Freeze, which is larger, sugar-free, and longer-lasting than its classic mint. Both Ferrero Golden Gallery Signature and Tic Tac X-Freeze will be available nationwide in September.
“We are a company recognized for taking good care of and being responsible stewards of our brands,” stated Paul Chibe, president and CEO of Ferrero North America. In recent years, Ferrero has seen rapid growth in the U.S. market. In 2018, it acquired Nestlé’s U.S. confectionery business for $2.8 billion, bringing over 20 American candy brands, including Butterfinger, Baby Ruth, 100 Grand, SweeTarts, and Nerds, into its portfolio. Earlier this year, Kellogg also agreed to sell its cookie business and various snacks and baked goods—including Keebler and Famous Amos—to Ferrero for $1.3 billion.
However, to establish a more substantial presence in the U.S., analysts suggest that the family-owned Ferrero, which has its roots in post-war Italy in 1946, will need more than just mergers and acquisitions. The company must continue to innovate and expand its well-established premium candy line. Its latest product offerings achieve this by reintroducing well-known candy brands with new variations. “I see opportunities for growth, especially among companies that invest in product innovation,” remarked Erin Lash, a director of consumer equity research at Morningstar.
The growing trend of plant-based products is leading to unexpected collaborations. Field Roast Grain Meat Co., part of Maple Leaf Foods’ Greenleaf Foods plant-based division, has teamed up with Elysian Brewing Company to launch a plant-based bratwurst infused with beer. This meat-free brat will debut at the Brat Fest in Wisconsin this weekend and will be available at Meijer in the Midwest and PCC Community Markets in Washington. The product boasts all-natural colors and flavors, with no preservatives or GMOs.
Field Roast is an artisan plant-based meat and cheese brand based in Seattle, while Elysian Brewing Company, acquired by AB InBev in 2015, operates four pubs in Seattle. The rising demand for plant-based products motivated Field Roast and Elysian to create this bratwurst flavored with garlic, caramelized onions, caraway seeds, and Elysian beer. The plant-based sector is on a promising growth trajectory, expected to expand at a compound annual growth rate of 15% from 2019 to 2025, reaching $27.9 billion by 2025. With such anticipated growth, more partnerships in this space are likely.
As U.S. beer consumption has declined for five consecutive years, companies are exploring collaborations like this to enhance their market presence and profitability. The combination of meat and beer is not unusual; for instance, Coleman Natural and Budweiser joined forces earlier this year to unveil a beer-infused meat line. Other alcohol brands have also infused sauces, with Jack Daniels and Jim Beam creating liquor-infused barbecue sauces, while Budweiser launched its own branded sauce in 2016.
In a crowded plant-based market, Field Roast will face challenges distinguishing itself among major players such as Beyond Meat and Impossible Foods. However, the unique beer-infused flavor may provide it with a competitive edge. As consumers increasingly seek innovative options, products like Citracal D Slow Release may also gain traction for their health benefits in this evolving landscape.