Big Giants in the food industry, such as Kraft Heinz Co., Campbell Soup Co., J.M. Smucker Co., and Nestle, are under pressure in the US to react to a consumer shift towards buying healthier meals and snacks, as reported in the Wall Street Journal article “Big Food Faces Pressure as Consumers Seek Fresh Meals, Snacks.” More than ever, Americans are becoming health-conscious and are concerned about what goes into their food. All demographics, from Baby Boomers to Generation Z, are keen on picking healthier alternatives, even if they have to pay more for their meals. Since consumer demand for healthy food is increasing tremendously, FMCG companies are pushing for the urgency to supply them with healthy “fads” and in some cases are shying away from junk and sugar foods. Nestle, the world’s biggest packaged FMCG company, agreed to sell its U.S. confectionery business for $2.8 Billion in January 2018 as an initiative to focus on “nutrition, health and wellness” reported Martinne Geller and Francesca Landini in their Reuters article.
Other strategies that we see are a shift in the advertising and marketing messages coming from many of these big companies. Cited in the above-mentioned Wall Street Journal article, Kraft Heinz is planning on investing up to $300 million this year to market its products more effectively. Other companies, like Smucker, are shifting their marketing spend to “where we really think we can get the biggest bang for our buck,” according to Chief Executive Mark Smucker. In all cases, these big FMCG companies have to react quickly in order to gain consumer trust while dealing with shrinking sales of some of their existing food products. This will lead to new marketing and advertising campaigns that have a health-focus and need to get to market quickly.
So, what role does Rights Management play in a new healthy-food campaign? Rights Cloud™ by FADEL® is a simple solution that enables creatives, brand managers, digital editors and advertisers to significantly improve speed to market, maximize existing ad production investments, and protect the brand. How?
- Speed ad production and distribution: With full visibility and instant access to rights information, advertisers are no longer dependent on business affairs to interpret the rights to use digital assets. It’s seconds rather than weeks to know if your campaign launch of a new healthy protein bar is good to go.
- Make marketing investment in healthy food count. FMCG companies can cut advertising costs by maximizing reuse of digital assets and minimizing the need for a totally new production campaign. Put a new social promotion together for an organic product by leveraging the company’s photo inventory and repurposing an existing licensed soundtrack.
- Protect brand equity. Save your brand from non-compliant content use and avoid large litigation fees, campaign rework, and negative press. Don’t let the need for speed result in a seven-figure copyright infringement lawsuit for using an unlicensed photo of a talent on a billboard.