China Food

This new snack brand is a positive brand of “junk food” | new Xu brand

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The salty snack market, which has hardly changed for decades, is the time to inject new innovation into the market to meet the more demanding needs of consumers. Peatos hopes to be the one who can change the status quo.
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Article: foodaily

Source: food daily (ID: food)

 
For decades, corn and potato snacks seem to have dominated the market for salty snacks. Nowadays, young people who pay more attention to health and like to taste new products have become the main consumers. Parents also hope to find labels for their children to be cleaner and non “junk snacks”. Can these new demands bring a black horse out of the salty snacks field with numerous giants to subvert the market pattern?
 
In this issue of foodaily’s “new Xu brand” column, we will learn about such a brand: frito lay, a pioneer of Pepsi, and peatos, which brings new vitality to salty snacks.
 
At the beginning of its establishment, it was determined to seize the market share of $20 billion of salty snacks. How did peatos, the dark horse that promoted the rapid growth of the plant-based snack market in the United States?
 
It has been established for two years and its sales volume has reached 10 million US dollars
Peatos, a fast-moving force, makes the giants feel threatened
 
Peatos was launched by snack it forward, a private snack company in the United States in 2018. Less than a year after its formal establishment, peatos caused a sensation in the US market. With its novel and bold appearance and impressive health claims, peatos has broken the decades of dominance of the salty snack industry by corn and potatoes.
Photo source: peatos official website
 
According to the statistics cited by the Wall Street Journal, peatos sales reached $5 million in the first six months of listing, and nearly $20 million in 2019, which is expected to increase by 50% by 2020. In addition, peato has quickly won several important markets such as California in the United States, constantly expanding channels, and gradually expanding its influence in the east coast cities of the United States. At present, peatos has become the fastest growing new brand among thousands of supermarket channels in the United States.
 
At the same time, within less than half a year since its establishment, peatos has won awards from suppliers, media, and Qu Daofang. It has also successfully attracted nearly 5 million consumers and more than 200 media coverage.
 
In September, peatos completed the first round of financing of $7 million, led by Jackson springs management partners and connective ventures. In addition, it has attracted celebrity investors, including Hall of fame basketball player Tracy McGrady. Previous investors include Carlos Barroso, former president of Mars food North America, former head of global R & D at frito lay, and former president and CEO of Snyder’s lance.
 
Photo source: peatos official website
 
Although inevitably affected by the epidemic, peatos has achieved large-scale growth this year in the U.S. e-commerce platforms and in retail channels such as krogers and Costco.
 
Although peatos’s sales performance is small compared with the annual sales of more than $1 billion of Pepsi’s Cheetos, peatos is still expected to overturn the market structure that has been maintained for decades in the future.
 
 
Against traditional snacks
Peatos made from beans
Delicious and healthy new snack experience
 
In the face of the “junk food” impression gradually accumulated in the minds of consumers, peatos advocates providing consumers with an amazing delicious, crunchy and crisp experience, but it is not as high in calories as “junk food”.
 
Taste and taste are the king: emphasis on junk food taste
 
Consumers have become picky about the taste. Therefore, before the launch of the new series of products, peatos team spent several years to explore, hoping that the products finally presented can achieve better flavor, taste and experience than the most popular traditional snack brands in the United States (including Cheetos, funyuns, etc.).
 
Photo source: peatos official website
 
Human taste buds are constantly changing. Therefore, peatos products also strive to achieve strong taste and rich taste, such as classic cheese, fiery hot, chili cheese, masala and other stimulating flavors. At the same time, the powerful visual experience on peatos packaging greatly meets the multi-level and stimulating sensory needs of consumers.
 
Healthy snacks: meeting the consumption demands of “junk food”
 
PeaTos used peas and lentils instead of corn or potatoes commonly used in traditional salty snacks, without adding artificial flavors and pigments, to create a real “non junk food” that conforms to the theme of healthy life nowadays.
 
Peatos is based on plant protein and is rich in fiber. Each product contains 4 grams of plant protein and 3 grams of dietary fiber. The nutritional components of peatos are healthier. At the same time, peatos meets the growing demand of consumers for protein and plant-based substitutes and gets rid of empty calories.
 
Photo source: peatos official website
 
Channels, online and offline, reach consumers everywhere
 
With the growth of family scene consumption and consumers’ dependence on e-commerce platform, peatos will not only lay out the necessary channels such as online and offline, but also pay attention to the layout of office, catering, campus and other scenes. In addition, peatos also launched the DTC website after Pepsi this year.
Photo source: peatos official website
 
In marketing, health should be highlighted, Cheetos and Pepsi should be used to strengthen consumers’ cognition
 
Peatos has been benchmarking Pepsi frito lay Cheetos in terms of product naming and public marketing.
 
With frito lay, a PepsiCo subsidiary, opened its DTC website for the first time in the first half of this year Snacks.com Peatos went online in a week BetterSnacks.com And on its display page, it is suggested that peatos’ lentils and peas snacks can better meet consumers’ health demands and highlight their brand positioning compared with frito lay Cheetos.
 
Photo source: peatos official website
 
In the future, peatos said it would continue to expand its product range through exclusive cooperation and brand partnership.
 
From the traditional snack market,
It’s a good alternative to protein
 
From the perspective of China’s market, snacks including nuts, bars, potatoes, grains, etc. are also the fastest growing categories. According to Euromonitor International data, the retail scale of flavor snacks is growing rapidly, which is expected to increase from 38.1 billion yuan in 2019 to 54.3 billion yuan in 2024, with CAGR reaching 7%. In addition, the development of e-commerce platform and express logistics level provides a strong guarantee for the large-scale development of leisure snacks.
 
At present, the admittance of the leisure snack industry is low, and the popular products are easy to be followed up and imitated by the latecomers, and the phenomenon of product homogeneity is serious. At the same time, the busy life makes consumers have multi-level needs of portability and nutrition.
 
At the same time, Mintel report shows that more and more consumers think that they should eat more protein, among which plant protein is considered to be more healthy. Therefore, vegetable protein has become a way to show that snacks provide high-quality nutrition. This trend has been generally recognized by consumers in Europe and the United States, and the cognition of Chinese consumers is also increasing year by year.
 
The growing demand for protein and plant-based substitutes has boosted the growth of meat, seafood, cereals and pasta. New brands such as beyond burger, impossible foods, good catch, ripple, love growth foods and banza have emerged respectively.
 
Image source: Google
 
In the category of salty snacks, it seems that we seldom see more innovative raw materials and processes to empower them. Health, nutrition, packaging, experience and playing methods are all important considerations for consumers to choose snacks. In front of such picky consumers, salty snacks, which are still conservative at present, need to break through the circle and need innovative vitality.
 
As for the traditional snacks which have occupied the market for decades, peatos uses beans rich in plant protein and fiber to replace common corn or potato, and adheres to the cleaning label. Although seemingly small innovation, peatos has greatly met the needs of consumers. By entering a field where growth is maintained, peatos is constantly seizing market share from traditional snack brands.
 
Whether it is the clever use of alternative protein or other innovative forms, we will see what kind of subversion will emerge in the same traditional Chinese salty snack market.
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