China Food

High nutrition and light burden! PepsiCo Quaker launches high protein and high fiber cereal

Start a full day, PepsiCo Quaker assists you with nutritious cereal. Recently, Quaker released two high nutritional value cold washed fruit cereals for the breakfast scene in one breath, namely, high protein crisp and high fiber crisp.

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It is understood that the above new products are the first batch of disruptive innovation achievements of Quaker this year. According to the previous definition of Quaker, its disruptive innovative products have the characteristics of leading market development, breakthrough innovation and global marketing expansion.

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The biggest “subversion” of these two new products is reflected in their “high nutrition and light burden”. On the one hand, the new products have significantly improved in meeting the nutritional and health needs of consumers for high protein and high fiber. On the other hand, the new products have achieved a breakthrough of “reducing sugar by more than 60%” and “natural ingredients” have also made the delicious experience more “light burden”.

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Now, let’s have a look.

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Nutrition is the focus of development

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In recent years, nutrition and health have become one of the most important keywords in China’s food market. As the “leader” of nutritious and healthy food, the cereal market has also ushered in a golden period of vigorous development.

Tang yinglei, senior director of nutrition in Greater China of PepsiCo, previously shared a set of data: the penetration rate of cereal in Chinese households has exceeded 50%, with a large and stable consumer group. Nevertheless, if the per capita consumption of cereal in Chinese Mainland is 1/6 of that in Hong Kong and 1/30 of that in the United States, it can be seen that the growth potential of China’s cereal market is still huge.

Tangyinglei, senior director of nutrition in Greater China of PepsiCo

(information picture)

At the same time, the snack generation noticed that the importance of whole grains was emphasized again in the recently released Dietary Guidelines for Chinese residents (2022). The suggestions of “sticking to a balanced diet based on cereals”, “eating 200g-300g of cereals every day, including 50g-100g of whole grains and beans” and “eating more whole grains” have been mentioned by the government for many times.

However, adult residents (>18 years old) in China calculate the intake of whole grains based on coarse grains and miscellaneous beans except rice and flour. The average intake of whole grains is 14.2 g / day, less than one third of the minimum recommended amount of 50g (whole grains and miscellaneous beans) [1]. Therefore, improving whole grain intake plays an important role in promoting dietary health.

As a common ingredient in whole grains, oats are loved by more and more Chinese consumers. As a leading brand in the oats industry, Quaker has continued to increase the number of nutritional products, and has made remarkable achievements. According to the market analysis data of Euromonitor cereal category, Pepsi (Quaker) has become the first breakfast cereal market share in the Chinese market for six consecutive years since 2016. According to the star chart data, Quaker’s online market share is far ahead. On the basis of a 3.2% increase in the market share in 2021, Quaker’s market share has increased by 6.4% since 2022. The

Market share is a barometer of brand strength. Quaker’s market share continued to rise, “thanks to Quaker’s unique advantages and core competitiveness in professional nutrition research and development, product innovation and brand strength.” Tang yinglei shared with the snack generation.

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According to the data, Quaker has more than 140 years of professional nutrition experience. At present, there are 10 R & D centers, 1500 scientists and more than 80 nutritionists in the world. Quaker can use global resources to meet the nutritional needs of Chinese consumers. Taking the field of intestinal health concerned by Chinese consumers as an example, Quaker has established a unique advantageous position with the strength of the global R & D Center – Quaker contains fiber Q ™️ Prebiotics, 93% increase intestinal vitality [2].

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In terms of innovation, Quaker’s products won the Isee award Global Food Innovation Award for two consecutive years in 2021 and 2022. In view of consumers’ insight into hair care and beauty, food, tonic and health preservation, Quaker initiated the “five black” and “five red” cereals in the industry, leading the upsurge of new Chinese health preservation; Quaker coffee Macadamia crisps can meet consumers’ all-round needs for nutrition, health and delicious food, and create a new experience of “chewing” coffee at any time.

Quaker coffee Macadamia crispy

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In terms of brand strength, according to the third-party research conducted by Kaidu for many years, Quaker’s popularity in the eyes of consumers, “brand trust”, “brand preference”, “leading brand”, “healthy grain expert” and other core indicators are ranked in the forefront of the Chinese market.

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Product innovation: “high nutrition and light burden”

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In the cereal category, consumers’ dual requirements for “health” and “nutrition” have reached a new height. In the survey on “cereal demand space” in 2021, Kaidu pointed out that health and nutrition are the main demand for cereal consumption. 73% of consumers value the satisfaction of health needs, and 77% demand nutrition.

Tang yinglei also said: “compared with before the epidemic, 80% of consumers chose a healthier diet, and more than 87% of consumers took the initiative to choose more nutritious and healthy food.”

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Not only that, in the demand for nutrition and health, consumers now pay more attention to the “targeted” nutrition satisfaction. In the “2022 food annual trend hot spots” released by Alibaba, it is mentioned that at present, the functions of healthy food are more clearly divided, and the nutritional supplements should be targeted.

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As the flagship brand in the nutrition field under PepsiCo, Quaker takes “everything is consumer centric” as its purpose, and uses the combination of big data and small data to combine the big data analysis of Chinese consumers’ health trends and nutrition needs with consumers’ in-depth insight, leading the innovation of Chinese cereal market.

Breakfast is the main consumption scenario of cereal in China. “The plan of the day is in the morning”. As the most important meal of the day, the nutrition supplement is the key. According to the consumer survey data provided by Quaker, consumers’ focus on breakfast nutrition is on the intake of high protein and high dietary fiber, which has no burden on the body.

Quaker’s high protein and high fiber cereal crisps were born based on the pain point of “insufficient intake of whole grain and dietary fiber by Chinese residents” [3], and were respectively designed to meet the segmentation needs of consumers to increase the intake of “protein” and “dietary fiber”.

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In order to meet consumers’ demand for high protein in breakfast, Quaker high protein wheat fruit crisp has a high protein formula 8 times higher than soybean milk (sweet). Through the addition of plant protein and whey protein, it innovatively launched an exclusive protein ratio of “1:6:11”.

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In terms of dietary fiber supplement, Quaker high fiber wheat fruit crisp contains a high fiber formula 8 times that of banana. Each (80g) can provide dietary fiber for breakfast, and the dietary fiber content per 100g can reach 15.6g. Dietary fiber helps maintain normal intestinal function. This product helps consumers quickly supplement an appropriate amount of dietary fiber during breakfast.

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It is worth mentioning that the two new products not only have innovative breakthroughs in providing high nutritional value, but also in reducing sugar intake and product formulation.

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It is reported that the two new products not only reduce sugar by 60%[4], but also have a more concise and targeted formula as a whole. Protein cheese flavored cereal balls, high protein Cereals, whole pea pods, Manuka honey orange peel, freeze-dried purple potato chips, sweet potato chips and other food materials can fully meet the nutritional needs of consumers for high protein and high fiber and the delicious needs of guilt free and light burden.

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This coincides with the nutrition principle of “high energy and low consumption” mentioned in Alibaba’s 2022 food annual trend hot spot. According to the law, while high protein and high fiber are sought after and grains have become the new favorite of raw materials, low calorie, low carbon, Zero sugar and zero fat have become the norm, gluten free has become a new hot spot, and the product formula has become more and more pure.

Global marketing innovation

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The snack generation learned that in the past 517 tmall food festival, Quaker cereals increased by more than 200% year-on-year. The two new products on the market contribute a lot. In addition to the product quality being loved and recognized by consumers, it also highlights the strength of Quaker brand’s global marketing.

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This time, in order to further expand its brand influence in the cereal market and compete for more market share, Quaker further refined its LTV (life time value) population, aiming at breakfast consumers with high life cycle value. Through the acquisition and analysis of big data in its own database, Quaker drew a portrait of the target population of the new product based on four core indicators, including the purchase frequency of the population, the magnitude of the target customer group, the change trend of the population number, and the long-term ROI.

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In terms of marketing promotion, Quaker has continued to give full play to its advantages in accurate touch, data-oriented creative marketing and private domain marketing, and expanded its influence in LTV’s high life cycle value group. Quaker has enabled accurate labels based on PepsiCo’s integrated consumer data analysis platform, and has confirmed the optimal combination of people’s labels, ideas and core communication content through AI technology enabled content creative creation, combined with big data analysis and testing, so as to reach the target population more efficiently, provide accurate consumer creative content communication, and create and improve a closed loop of consumer cognition, interest, purchase and loyalty.

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The two new products were also successfully selected as tmall small black box. Thanks to the data advantage and resource empowerment of tmall platform, the new products will also be more quickly targeted to a wider range of target consumers, achieving high-frequency and efficient exposure. It is worth mentioning that as a product series co created with tmall, the cooperation between Quaker and tmall has successfully achieved a win-win situation. In the early stage of product development, tmall new product innovation center (TMIC) provided data support for Quaker, and the launch of two new Quaker products also fully supported e-commerce festivals such as tmall 517 food festival.

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Meanwhile, Quaker is committed to transforming “public domain traffic” into “private domain traffic”, so as to achieve more effective user management and secondary access. Through private domain marketing, Quaker encourages consumers to share the real use experience, so that fans can become brand ambassadors in the real sense.

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Offline, Quaker carries out creative marketing around key channels. It is understood that the brand has accelerated o2o and offline expansion, launched a “breakfast Festival” themed activity with offline supermarkets and other channels, and launched cross category marketing with milk drinks and other related categories, so as to promote new product exposure and purchase rate.

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Implement the positive plan

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It is worth noting that the above two new products are not only Quaker’s recent “blockbuster new products” to improve consumers’ repurchase rate, but also one of the representatives of PepsiCo’s ongoing products under the ongoing plan.

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Last year, PepsiCo officially launched the ongoing plan to support the strategic transformation of the company’s overall business and create long-term and sustainable value. The plan includes three pillars, namely, agriculture, value chain and products. The development of the three pillars jointly drives PepsiCo to achieve the industry-leading 2030 goal.

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In the planning of holding products, PepsiCo hopes to continue to develop its food and beverage product portfolio to make it more beneficial to the earth and mankind. While Quaker high protein and Quaker high fiber wheat fruit crisps add more diversified ingredients, and are committed to meeting consumers’ needs for nutrition and health in an all-round way, which is also a reflection of the company’s practice of the guideline of “holding products”.

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At present, Quaker, with an annual global retail sales of more than US $1 billion, has become a very important “trump card” in PepsiCo’s hands, and its development in the Chinese market is becoming more and more important. PepsiCo previously released the 2021 financial report data, which showed that in 2021, the net revenue of the Asia Pacific market where the Chinese business was located increased by 34%. In the snack food business where Quaker and Leshi are located, the sales volume of PepsiCo Asia Pacific increased by 19% last year.

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Looking into the future, we will continue to pursue steady growth. The huge market space of the breakfast scene brings growth certainty to Quaker. According to yingminte data, the market scale of China’s breakfast industry is expected to reach 840billion yuan in 2021. During 2015-2021, the industry’s compound annual growth rate (CAGR) is 7.4%. After years of deep cultivation in China, Quaker’s profound brand assets and constantly improving product innovation will also help it improve its “sense of presence” on the Chinese table.

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[1] Data source: white paper on healthy grains
[2] Nielsen conducted a survey on 55 non heavy users of Quaker Oats (70g per day) who ate Quaker Oats for 14 consecutive days. According to the survey, 93% of the respondents agreed with the role of Quaker products in improving intestinal vitality
[3] According to the scientific research report on dietary guidelines for Chinese residents (2021), the dietary structure of Chinese residents is dominated by grains, but grains are dominated by refined rice noodles. The intake of whole grains and miscellaneous grains is insufficient. Only about 20% of adults can reach an average daily weight of more than 50g. Not only is the whole grain intake inadequate; According to the recommended intake of dietary nutrients for Chinese residents (2013), the intake of dietary fiber for Chinese adults (aged 19-50) is recommended to be 25-30g/ day. However, according to the comprehensive report on the monitoring of nutrition and health status of Chinese residents 2010-2013, the average dietary fiber intake of Chinese residents per standard person day is 10.8g, less than half of the recommended intake (25g).
[4] Compared with Quaker daily macaroni toffee caramel flavor products

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