Milling & Baking News - September 22, 2020 - 32

Consumer Trends

Executives break down changing consumer
behaviors during Barclays conference

F

"(Our strategy) was working beforehand," he said. "But when you think
about what you just talked about households and new households, and if you
ever had any doubt at all that occasionbased marketing and focus on occasions
was not the right approach, the pandemic
clearly proves it wrong. So you look at
just one occasion like morning breakfast
at home with family, well, that occasion
exploded virtually overnight because
of the pandemic. And our strategy is all
about winning through occasions, and so
we're purpose-built for this."
Jonathon J. Nudi, president of North
America Retail at General Mills, Inc., said
the company expects the changing consumer behaviors to stick, even after the
pandemic subsides - no small feat considering "changing consumer behavior is
the hardest thing to do."
"One of the things we noticed, there's a
generation of consumers that didn't know

brands. The company is trying to reach
out to consumers who have turned to
RTE cereal during the pandemic as a staple breakfast item. These consumers may
be individuals returning to the category
or individuals incorporating cereal into
their eating habits for the first time. Regardless, Kellogg wants to capture them,
Mr. Cahillane said.
"With the right messaging at the right
time and place, we can convert more consumers to our iconic brands," he said.
Mr. Cahillane said he believes Kellogg's strategy was built for a moment
such as the one taking place.

how to cook or cook very well, that are
cooking a lot more, and we have direct evidence," he said. "We have two of the top
five food websites in bettycrocker.com and
pillsbury.com, and we've seen our traffic
up four times since the pandemic started.
And the searches are around recipes and
how to do simple culinary techniques.
And as we dig in and really understand
who these consumers are, in many cases,
they're younger consumers learning to
cook for the first time. So we think that,
that's going to stick as we move forward."
Mr. Nudi also said he thinks the way
consumers shop "will be forever changed."

©LIGHTWAVEMEDIA - STOCK.ADOBE.COM

inding a way to attract consumers
during the coronavirus (COVID-19)
pandemic remains an ongoing focus, according to chief executive officers
at the nation's top food and beverage
companies participating in the Barclays
Global Consumer Staples Conference.
The annual event, held virtually for the
first time because of the pandemic, took
place over a three-day period Sept. 8-10.
Steven A. Cahillane, chairman, president and CEO of Kellogg Co., described
how the Battle Creek, Mich.-based company is "improving our share position
while increasing household penetration
and how we're reinvesting more in the
second half in order to make sure we
are communicating more than ever with
consumers who are rediscovering our
foods."
Specifically, Mr. Cahillane said Kellogg
has "modified and amplified" its messaging across its key ready-to-eat cereal

32 / September 22, 2020

Milling & Baking News

"We saw dramatic increases in e-commerce and omni-channel, and we think
that big brands are positioned well in
those channels and in e-commerce, and
that will work for us as well," he said.
Mr. Nudi mentioned RTE cereal as a
category getting a boost from the consumer trends associated with the pandemic. With more children taking school
classes at home as part of virtual learning, the velocity in cereal consumption
has ticked up over the past several weeks.
"Our hypothesis is that we'll see the
category continue to perform well and
actually accelerate as we move through
the fall," he said.
At B&G Foods, Inc., Parsippany, NJ,
new consumer households have been like
"a fountain of youth for our brands," said
Kenneth G. Romanzi, president and CEO.
"We worked for years to try to get a
point increase on household penetration," he said. "From a brand standpoint,
the brands that have high increases in
household penetration and new users, we
now have the data to be able to go market
to those new users, and that's what we're
doing to try to create that stickiness. But a
lot of it's going to be driven by consumer behavior, regardless of what we do in
terms of whether people are going to be
cooking and eating home more, and we
firmly believe they will be, even if there's
a vaccine tomorrow as well as the shift to
online."
An interesting perspective shared by
Mr. Romanzi and one that may have
wide-ranging implications on the consumer packaged goods industry is how
consumers will shop for food in a postCOVID environment.
"I know personally, while I would have
shopped for paper goods and peanut butter online, I thought I'd never shop for
fresh fruit and vegetables and meat online,
and the companies have made it so easy
to do," Mr. Romanzi explained. "I mean I
may not do it 100% like I'm doing it now.
But I'm not going to go back to 100% visiting the stores, just too darn convenient,
let's just to do it on my phone. First thing
in the morning or last thing at night, and
it's delivered within hours.
"So it's that type of behavior that I think
is long term. Online shopping behavior as
well as working from home, cooking from
home, those are the things that will create
the most stickiness. And our category is
really nicely positioned for that."
Steve Presley, CEO of Nestle USA, Arlington, Va., told participants in the Barclays
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Milling & Baking News - September 22, 2020

Table of Contents for the Digital Edition of Milling & Baking News - September 22, 2020

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