BRANDING MASTERS THESIS

Repositioning Big Food

CONTEXT

Big Food companies have been facing critical decline in their business. After decades of making food more accessible and more affordable for people, they continue to see a loss of relevance with culture.

As a team of Masters in Branding students, our thesis had to propose solutions to help Big Food become relevant with culture again

This thesis explores the American food industry through the lens of history, culture, science and technology to propose a strategic Big Idea to save Big Food.

INDEX

PART 1

Big Food Overview

What is Big Food?
Big Food's Big Strengths
- Market Share
- Distribution
- Operation
Who Eats Big Food?
Financial Overview
- Stock Value
- Share Price
- S&P 500
- 5 Year Revenue
- Industry Growth Rate

How Did We Get Here?

The Rise of Big Food
- History of Kellogg's, Campbell's and Kraft Heinz
- Innovation for Improvement
- Food for All
- American Icons in Making
The Fall of Big Food
- The Rise of Farm-to-Table Movement
- The Growth of Farmers Market
- The Birth of the Non-GMO Project
The Current State
- The New Healthy
- Timeline of Food Villains
- The Labelling Protests
- The Shelf War
The Future of Food
- Population Growth
- Climate Change
Should We Save Big Food?
- Imagining a World Without Big Food

PART 2

Follows Below.

GETTING STARTED

Big Food Overview

In the United States, the ten largest Big Food companies control over half of all food sales.

They generate revenue of tens of billions of dollars and have more than 1.5 million employees.

These companies have global reach in more than 200 countries that reach emerging markets.

The 10 largest Big Food companies have global operation that accounts for over 3,000 manufacturing plants.

For the purpose of our thesis, we have studied 8 Big Food companies.

And what we found were big strengths; scale and reach, distribution, and manufacturing.

For example, Nestle owns over 2,000 global brands and reaches over 190 countries in the world.

Heinz sells more ketchup packets annually than there are people on earth.

And Danone operates in the largest yogurt manufacturing plant in the world, producing over 230,000 cups of yogurt per hour.

But what about their consumer? Who eats Big Food?

We discovered 3 groups of people: Those who eat Big Food 'All-the-Time', 'Sometimes' and 'Rarely'.

'All-The-Time' consumers spend 60% of money on food that is highly-processed.
62% of Americans are 'Sometimes' Consumers, they snack to satisfy their craving.
And, a rarely consumer, thinks that I don't eat Big Food, but I do. 30% of my calories are from processed food.

Americans continue to be the leaders in the consumption of processed food. If Americans are still eating Big Food, we would assume they'd be doing great...

But let's see what the reality tells us.

Over the last five years, the stock value of the top Big Food companies continues to be in decline

And, as there is a shift towards fresh and healthy food, share prices stagnate

Over the past three years, $19 billion in revenue has evaporated

And looking at the last five years, combined revenue of the top Big Food companies have shown decline

In addition, the growth rate of the U.S packaged food companies has been slowing

In 2017, 17 CEOs from the largest Big Food companies had either departed, or announced their intention to

Big Food is in big trouble. The Big Food companies have fallen off the supermarket shelves and continue to lose market share.

Big Food is literally starving.

So, How Did We Get Here?

To understand how we got here we needed to investigate three brands that have stood the test of time – Campbell’s, Kellogg’s, and Kraft Heinz.

Enter the rise of Big Food.

Over the last century these Big Food brands have continued to find a place our heart – but lately, they haven’t been settling so well in our stomachs.

Let’s take a look back into the glory days of Big Food.

It’s the late 19th century and breakfast is served.

In America at this time and into the early 20th century, consumption was heavy in animal fats and often cured meats. Meals were high in salt and contained a lot of sugar. And back then, carbohydrates were not frowned upon. Even with porridge and mush these whole grains took hours to melt down into a soft form.

Making breakfast was a big ordeal.

Around the same time, the American government was on the hunt for food options to serve the soldiers in World War I.

There came a desire for non-perishable food and accessibility for all. And with this, Americans were in demand for something different – new, innovative solutions that would come to shape the way we eat.

The early 20th century would prove to be a time of innovation at its best for Big Food. The packaged food brands were visionary – leaders that ultimately would redefine standards, invent processes, and revolutionize the industry.

Motivated by a passion for people, quality, and innovation, the Kellogg's brothers shaped an entire industry and secured the trust of the American consumer with their creation of the first-ever breakfast cereal.

They engineered a convenient, tasty breakfast.

And with the growing desire for more healthy food solutions, Campbell's was born. Due to the immense demand from the World War I soldiers for a nutritious soup, Campbell’s introduced what would become an American staple, their Vegetable Beef soup.

Campbell's invented a scientific process for reducing water from the can that revolutionized the soup industry.

And it was through continued innovation in the early 20th century that we saw the ingenuity of James L. Kraft, who took a milk-based product and turned it into a long-lasting, easy to slice delight – “processed cheese”. A sterilized invention that turned Kraft’s company into a cheese empire.

The Big Food brands brought forward this method of “processing", one that gained traction in an effort to make sure the food we ate did not make us sick.

As the processes of Big Food proved promising, the brands were able to produce more and reach more people. Welcome to food for all – where Big Food became the food of the American people.

The invention of Kellogg's Corn Flakes became an event that took the world by storm. "You could simply pour breakfast out of a box." The brand enriched communities by putting people first in everything they did.

And it all started with a single flake, a cornflake, and Kellogg’s belief in better food for all.

The Big Food brands became nationally recognized and trusted brands. Campbell's sold 16 million cans in a single year, with their condensed soups manufactured at a rate of nearly 40,000 every week. And in 1942, sales topped $100 million for the first time.

Campbell’s was not bound to any one income class: a great majority of the people ate Campbell’s soup. And with this, America became not only a nation on the crave for breakfast cereal, but a nation of canned soup eaters.

And as the years progressed, Heinz Ketchup would prove to be a great equalizer, a Big Food brand with a special ability to provide something for everyone.

A burger and fries topped with ketchup was a democratic and delicious meal that satisfied the American palette. The Heinz brand understood the American people and their families.

After World War II, food for all escalated to new heights with the advent of the baby boom. Food producers increased output where affordable consumption became accessible to all.

Given their revolutionary means of production and trust from the American people, the Big Food brands became national icons.

In the 1950s, a time of rock and roll, music, and television, Kellogg’s invented Frosted Flakes and its pitchman, Tony the Tiger was born. A symbol of energy and wit that became an instant hit, Tony's packages flew off the shelves and into the homes of the American consumers.

In 1962, Andy Warhol took on the Campbell's soup can – an effort that transformed the way we see art and became one of the most iconic, signature pieces of his career.

And as trust and pride in Big Food prevailed, our brands even landed on the moon.

In 1969, when Apollo 11 blasted off, to help ensure the astronauts had a delicious breakfast in space, Kellogg’s was there as the breakfast of choice.

As the 1970s and 1980s rounded the corner, the reign of Big Food began to slow. The processed foods and packaged goods we had come to see thrive in the first half of the century were in for an uproar.

The counterculture took on the food industry. The hippie movement including those passionate in local and organic food swept the country.

Enter the decline of Big Food and the rise of the farm-to-table movement.

Hippie preferences began extending into formal food structures and pioneers like Alice Waters came to rise.

In 1971, Alice, a champion of local, sustainable agriculture, opened the legendary Chez Panisse in San Francisco, California – a restaurant with a focus on ingredients and sustainability. Alice shifted the conversation where a rise in local relationships came in direct opposition of the Big Food brands.

And in the 1980s we saw a turning point.

Not only had figures such as Martha Stewart joined the cultural conversation with her shift from housekeeping to home keeping in a time where industrialization and urban living were on the rise, but food, nutrients, and numbers became fused in the American consciousness when the first Dietary Guidelines for Americans were published.

America's food consumption became dramatically altered.

The steady growth of the farmers markets in the US, is a proof that the farm-to-table movement was not a passing trend. This led to a rise of consumers that were increasingly conscious of their food choices.

This hyper-aware consumer group became advocate of a new project in 2007

The Non-GMO Project.

It exists to provide verification and labeling for non-genetically modified food products. Their aggressive practices and vehement narrative has played a big part in the way Americans perceive food today.

And with that the Butterfly logo became the most trusted, pledged and sought after label for GMO-avoidance.

Fast forward to today. Consumer preferences have moved even further towards healthy and sustainable food.

Today healthy is defined as 'products that are good for you and for the planet.' And Science and technology is transforming our food to make this possible.

And while we see the small players innovating and leading the way we eat....

Kellogg's has simply dropped the word sugar and updated Tony the Tiger, but actual cereal remains the same even after last 60 years

As with Sugar every year there's a new villain. The ingredients that continue to scare us most are those we have little understanding of. In 2010, it was gluten, and alongside gluten, GMOs are the current villain

GMOs have put the American people in a state of outrage, leading to strong protests around mandatory GMO-labelling. And in response the Big Food companies have done little to add clarity and transparency to these issues. Labelling in America continues to be a cause of consumer distress

To a point where it has become meaningless. Does gluten-infused water even exist?

Industry leaders such as Indra Nooyi, CEO of Pepsi admits that this uncertainty in the ingredients sector has caused total confusion amongst food shoppers today.

Now, let’s take a look at Big Food's retail dilemma.

In 2017 private label sales grew three times faster than national brands.

Also, Organic food is the fastest growing sector of the U.S. food industry

Consumers continue to use retail channels as a stamp of credibility.

In the words of chief marketing officer of Kraft Foods Group, “consumers assume that if products are carried at chains such as Whole Foods and Trader Joe's, then they are O.K…”

And in response, Big Food companies have been acquiring Organic food players in the market place

And this too isn't working. Popular brands acquired by Kellogg's have declined in market share, in just a few years of their acquisitions. So what does this all say? The food industry is at a tipping point…

The experts believe "The industry’s big players won’t start taking more risks until the cost of not changing exceeds the cost of changing”

And if these problems weren't enough Big Food has another big challenge. The inevitable changes of the future are going to affect the world.

And, all food is going to be impacted.

Climate change will affect food production drastically. For every one degree Celsius rise in temperature wheat production will fall by 6% globally.

Climate change would cause an 18% drop in world food production, while the global community needs to produce at least 50% more by 2050 to meet the population needs.

Our population is expected to reach 9.7 billion by 2050 with a significant rise in Asia and Africa. This surge in population will put tremendous pressure on our current food system.

Millions will lose their jobs

If the Big Food companies disappear millions of people will lose their jobs – a total of 900,000 employees at the top eight big food companies.

Jobs involved in supplying, manufacturing, distribution and retail would face critical impact.

Even advertising agencies that bring the Big Food companies to life will lose their business.

Food prices will spike

There will be a shortage in affordable food, and food prices will spike.

During the global economic Crisis of 2008, average prices for rice, wheat, and corn rose dramatically.

Food choices will be drastically reduced

The 52 million Americans on food stamps will lose choices in what they can eat.

Again, during the 2008 economic decline those on food stamps had trouble feeding their families. And, researchers conclude that food insecurity leaves us vulnerable to illness.

And, food insecurity will ultimately increase.

So it's clear, that we must save Big Food. But, can we save Big Food?

INDEX

PART 2

We Can Save Big Food

Big Potential
- Innovation
- Accessibility
- Trust

Big Food Needs a Big Idea

GMOs
- Definition
- We Are All GMOs
- Genetic Engineering
- The History of Genetic Modification in Crops
- No Agriculture is Natural
- Food We Eat Today
- A World Without GMOs
- Campaign Against GMOs
- Organic vs GMOs
- Are GMOs safe to eat?
- Popular Belief vs Reality
- GMOs: A Radioactive Term
- Genetics and Culture

Know Your Food

Big Food’s Big Power
Campaign
Big Food Alliance

Summary

PART 2

We Can Save Big Food

We believe, Big Food has big potential to affect positive change in the world.

It can help build a world, where innovation, accessibility and trust can once again revolutionise the industry.

Innovation

Big Food can leverage technology to create crops that are resistant to temperature variation.

Accessibility

Big Food's expansion in the emerging markets is a big chance to create food accessibility.

Trust

In the hyper-connected world, there lies an opportunity to gain trust by championing food literacy.

To do all this and more…

Big Food Needs a Big Idea

BIG IDEA

Imagine a technology that can save our food from climate change, and feed the growing population while sustaining our planet.

Imagine the very same technology paves the way for more clear, transparent and an open dialogue of our current food system.

This technology already exists.

And we're talking about Genetically Modified Organisms.

Yes, It's that scary thing you avoid every time you shop for food. It has become one of the most toxic terms in culture today. Even within our faculty there was a looming fear of using those letters in our thesis.

The media is full of misleading information about GMOs. And we've come to learn, that consumers worldwide have limited understanding of Genetically modified food products.

And part of the reason why that is, is because the definition of GMOs that is hammered by the media is this:

But the reality is, that the term “GMOs” is a cultural construct. It’s a metaphor we use to talk about a set of ideas

Being genetically modified means that a gene from one organism is extracted and is inserted into the genes of the target organism. For example, when the Hawaiian papaya faced a virus that threatened its existence, researchers engineered a way to give a papaya resistance to the virus. And that’s how GMO saved the Papaya industry in Hawaii. Researchers inserted the gene from the virus itself and added it in to the papaya’s DNA to give it resistance to the virus.

Did you know it wasn’t a mega-corporation, who created the first genetically modified crop? 8,000 years ago nature was the engineer, allowing a new root to form from a particular formula of soil and bacteria. And the result is sweet potatoes all around the world.

Since domestic agriculture began, 10,000 years ago, farmers have been intentionally changing the genetic makeup of all crops they grow. Every fruit, vegetable and grain that we know today has been genetically altered in some form or another.

Evolutionary biologist Richard Dawkins said that "No agriculture is natural. Without genetic modifications we wouldn’t be able to recognize our favorite fruits and vegetables.

Can you identify what this is?

Farmers domesticated these thin roots into....carrots

Lettuce.

This is corn. It was cultivated from a small, wild cob to the giant size we know today.

Even bananas have been Genetically Modified from wild, inedible fruits with large seeds, to the yellow, seedless bananas we see in our grocery stores today.

In 2016, 134 Nobel Laureates called upon Greenpeace to abandon their campaign against GMOs and urged the United Nations and the governments of the World to reject it. They believe that banning GMOs is a “crime against humanity”.

In the eyes of the public the primary myth we continue to hear is that Organics are safer than GMOs.

However organic growers are allowed to use certain types of pesticides, while Genetically Modified crops can be engineered to be pest resistant, and therefore could claim to be safer than organics.

Hundreds of safety studies have established that GM crops present no significant safety hazard.

Mike Robach from Cargill, said, we have a very interesting dilemma - we are using science and technology to increase food production, lower costs, actually aid sustainability…. but the problem is it has never really been articulated in a right way to consumers.

Companies have experimented with different terminology such as “ethical crop breeding”, “refactored materials”, “applied biology” and “designing” organisms to make “cultured ingredients.”

People are rejecting genetics in their food.

But at the same time people are using genetics as a way of understanding their past as well as creating products specific to their lifestyle.

For example, 23andme gives a comprehensive understanding of our genetic ancestry. Similar products and services exist using genetics to predict likelihood of breast cancer, to create customized skincare or even the perfect diet. Our study and use of genetics gives understanding of our past and a way to anticipate whats ahead.

This is all happening because people want to know and now genetic research makes that possible.

Our understanding of what the future will bring, is critical not only for the survival of Big Food but also for humanity.

POSITIONING STATEMENT

Know Your Food

We believe Big Food has the power to impact the future of food by creating a responsible, sustainable and a more accessible food system for all.

We recommend their first step will be to champion food literacy by creating a public awareness campaign. This campaign will be called “It’s not what you think”.

CAMPAIGN IDEA

#ItsNotWhatYouThink

Our second recommendation for Big Food is to create a non-profit organisation to tackle the confusion and distrust that surrounds the industry.

STRATEGIC RECOMMENDATION

Big Food Alliance

Presenting to you ‘Know Your Food’, where we envision day by day a new pledge to be taken.

With the promise to serve the mission of Food Literacy through science, education and radical transparency. A place where Big Food Credos exist, thrive, and are held in the highest regard. Each company will abide by their credo with a signature of pledge by its respective CEO.

It is here that science will be championed, real food will be created for real lives, and breakfast will once again be food for all.

MANIFESTO

Food is an indispensable part of our lives. It is our health, our pleasure, and our choice.

While today may present us with complexity, moments of confusion, or even a yearn for transparency, with education, tomorrow can bring forward clarity.

When we immerse in science we can innovate, redefine standards, and champion a push beyond the expected, to gain truth.

Through questioning the familiar we allow ourselves to think deep, see the potential of science and technology to make brave decisions, and advocate for a larger responsibility.

It is time.

It is time to move from a lack of understanding and fear, to masters in the food we eat. It is time to ask for more, a more responsible, sustainable future that provides a return to what all of us need and share.

Together, we can solve beyond what is small to accomplish the big.

We can reach what is radical.

We can ultimately know our food.

SUMMARY

Genetic modification is essential to all life on earth. It runs through our system, our body, and our veins.

For it is when humans and technology cross paths, that we foster a progression of life – where we can grow and advance for the better.

GMOs are evolution.

CORE TEAM

Jae Young Kim, Kristina Ermolenko, Surabhi Rathi and Jess Spataro.

THESIS ADVISORS

Debbie Millman, Richard Shear, Kenna Kay, Shelli Decker, Sarah Schmitz, Chris O’Rourke and Mike Rigby.

SEE THE NEXT PROJECT →

BRANDING MASTERS THESIS

Repositioning Big Food

CONTEXT

INDEX

PART 1

PART 2

GETTING STARTED

Big Food Overview

And what we found were big strengths; scale and reach, distribution, and manufacturing.

But what about their consumer? Who eats Big Food?

Big Food is literally starving.

So, How Did We Get Here?

Enter the rise of Big Food.

Enter the decline of Big Food and the rise of the farm-to-table movement.

America's food consumption became dramatically altered.

This hyper-aware consumer group became advocate of a new project in 2007

And, all food is going to be impacted.

With all this challenges, should we save Big Food?

Let’s imagine a world without Big Food.

So it's clear, that we must save Big Food. But, can we save Big Food?

INDEX

PART 2

PART 2

We Can Save Big Food

We believe, Big Food has big potential to affect positive change in the world.

It can help build a world, where innovation, accessibility and trust can once again revolutionise the industry.

Big Food Needs a Big Idea

BIG IDEA

POSITIONING STATEMENT

Know Your Food

CAMPAIGN IDEA

#ItsNotWhatYouThink

Our second recommendation for Big Food is to create a non-profit organisation to tackle the confusion and distrust that surrounds the industry.

STRATEGIC RECOMMENDATION

Big Food Alliance

MANIFESTO

SUMMARY

Genetic modification is essential to all life on earth. It runs through our system, our body, and our veins.

For it is when humans and technology cross paths, that we foster a progression of life – where we can grow and advance for the better.

GMOs are evolution.

CORE TEAM

THESIS ADVISORS