Nestlé Taps into the Future of Food: A Grocerant Guru Perspective

 

In an era where the lines between grocery stores and restaurants continue to blur, Nestlé, a major player in the consumer packaged goods (CPG) industry, has made a bold move that could redefine the future of food. The company has announced the launch of Vital Pursuit, a new frozen food line developed specifically for consumers on GLP-1 weight loss medications.

A New Approach to Weight Management

While many food and beverage brands have been wary of the impact of weight-loss drugs on the marketplace, Nestlé has chosen to embrace this trend. The company has developed a portfolio aimed squarely at users of GLP-1 weight loss medications. This innovative approach supports weight management efforts achieved via injectable and oral drugs, as well as traditional weight loss methods.

Meeting Consumer Needs with Innovative Products

The Vital Pursuit line, set to be available in the fourth quarter of 2024 at select retailers around the United States, features a variety of frozen items that are high in protein and contain essential nutrients and fiber. The product range includes bowls with whole grains or protein pasta, sandwich melts, and pizza, all retailing at $4.99 or below. Consumers can also find gluten-free options and air-fryer ready items for added convenience. bowls with whole grains or protein pasta, sandwich melts, and pizza, all retailing at $4.99 or below. Consumers can also find gluten-free options and air-fryer ready items for added convenience.

"At Nestlé we want to be there for every moment in our consumers’ lives — today and in the future," said Steve Presley, CEO of Nestlé North America. "As the use of medications to support weight loss continues to rise, we see an opportunity to serve those consumers. Vital Pursuit provides accessible, great-tasting food options that support the needs of consumers in this emerging category."

The Future of Food in the Grocerant Niche

Given the projection that GLP-1 users may top 30 million by 2030 and data showing that nearly half of U.S. consumers have tried to lose weight at some point during a given year, the potential for these kinds of products is significant.

Tom Moe, president of Nestlé USA Meals Division, highlighted that they have been expanding choices across their meals portfolio to address consumer eating habits. As the market evolves, they plan to continue to expand Vital Pursuit with more product formats.

This move by Nestlé is a clear indication of how the company is tapping into the future of food. By developing products that cater to the specific needs of consumers, Nestlé is not only staying ahead of the trends but also shaping consumer behaviors. This strategy could serve as a blueprint for other companies looking to succeed in the grocerant niche.
developing products that cater to the specific needs of consumers, Nestlé is not only staying ahead of the trends but also shaping consumer behaviors. This strategy could serve as a blueprint for other companies looking to succeed in the grocerant niche.

I want you to think about this, Nestlé's Vital Pursuit line represents a significant step forward in the evolution of the food industry. It's a testament to the company's commitment to innovation and its ability to adapt to changing consumer needs. As the Grocerant Guru®, I am excited to see how this development will influence the its ability to adapt to changing consumer needs. As the Grocerant Guru®, I am excited to see how this development will influence the grocerant niche and the food food sales food sector to food sector.

Success does leave clues. One clue that time and time again continues to resurface is “the consumer is dynamic not static”.  Regular readers of this blog know that is the common refrain of Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Our Grocerant Guru® can help your company edify your brand with relevance.  Call 253-759-7869 for more information.

 

 

Nestle’ Has a History selling Fresh Food Fast

Nestle, back in the day owned Culinary Brands a sous vide meal manufacture, in Sausalito, CA and Foodservice Solutions® own Grocerant Guru®, Steven Johnson based in Tacoma, WA work with them to develop menu items for clients around the world. Nestle’ knows the fresh food meal space.

So, when Nestlé announced that it has acquired Freshly, a leading fresh-prepared meal delivery service, for $950 million, with potential earnouts up to $550 million contingent to the successful growth of the business no one was surprise at Foodservice Solutions®.  The team at Foodservice Solutions® did ask Johnson an important lesson; Is the consumer ready this time for fresh food fast, will the meal from Freshly be the same quality of those from Culinary Brands?

Will the Freshly meals now be priced to sell, or priced for a premium once again? What lessons has Nestle’ learned after all Nestle owns Hot Pockets, Gerber, DiGiorno, Buitoni, Lean Cuisine, Stouffer’s, Nescafe’ Ready to Drink, and many more.

In case you did not know, Freshly delivers a menu of fresh, chef-cooked meals to subscribing members across the United States, that, according to the company, breaks down the barriers to healthy eating by delivering nutrition and convenience at scale and they were founded in 2015.

Nestlé USA Chairman and CEO Steve Presley , "We are excited to welcome Freshly to the Nestlé family," ... "Consumers are embracing e-commerce and eating at home like never before. It's an evolution brought on by the pandemic but taking hold for the long term. Freshly is an innovative, fast-growing, food-tech startup, and adding them to the portfolio accelerates our ability to capitalize on the new realities in the U.S. food market and further positions Nestlé to win in the future."

Battle for Share of Stomach

According press release, the move brings together Nestlé's deep understanding of what and how people eat at home, and world-class research and development capabilities with Freshly's highly specialized consumer analytics platform and distribution network to fuel growth opportunities within the Freshly business and across Nestlé's portfolio.

Nestlé, is the largest food and beverage company in the United States, purchased an approximately 16% stake in Freshly in 2017 as a strategic move to evaluate and test the burgeoning market of home-delivered meals.

Freshly pioneered the direct-to-consumer prepared meal delivery channel and is known for its use of standard-setting technology and analytics, which will build upon Nestlé's strong base of innovation. Growing year-over-year since launching in 2015, Freshly is now shipping more than 1 million meals per week to customers in 48 states. Its 2020 forecasted sales are $430 million.

Get this, Freshly’s weekly subscription service delivers fresh, chef-cooked meals to customers’ doors that can be heated and served in three minutes. The company’s food philosophy is centered on less sugar, less processed and more nutrients. All meals are gluten-free and single-serve for effortless portion control. Developed by chefs and nutritionists, the menu features better-for-you versions of classic comfort foods with smart ingredient swaps.

Freshly CEO Michael Wystrach stated, “We are extremely excited to expand our relationship with Nestlé,”. “Our mission is to make eating healthy easy by bringing nutritious, high quality meals directly to customers' homes. Convenience and nutrition are driving forces in the future of food, and our becoming a part of the world's largest food company confirms that. With Nestlé, we will have access to resources, research and development, and years of experience that we can tap into to catapult our growth plans and move closer to our goal of being in every household in America.”

Laurent Freixe, Nestlé CEO Zone Americas  continues by saying "At Nestlé we know the at-home food market and we know how to win there,”  “With the acquisition of Freshly we are strengthening our position in the U.S. and expanding our ability to deliver a wide variety of delicious food to our consumers when and where they want. Whether purchasing our products from the comfort of their homes, in retail stores or through social commerce, we will continue to provide them with unbeatable convenience, choice and ease of purchase.  Is, this how fresh meals will be sold, consumed in 2022? Or will Freshly go the way of Culinary Brands? How well do you know the Grocerant Niche?

Don’t over reach. Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how Foodservice Solutions® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit us on our social media sites by clicking the following links: Facebook,  LinkedIn, or Twitter