In this next chapter three brands which excelled in the last year
In 2021, three global brands all gained 1% penetration: Maggi, Pepsi and Vim. But in terms of actual shoppers gained, Maggi has won out due to the fact it had a higher starting penetration than both Pepsi and Vim. This meant Maggi needed to find 6.75 million shoppers (due to population growth) just to maintain the same level of penetration.
But the brand did more than this. It gained 18.8 million more shoppers in 2021, moving from 33.6% penetration to 34.6%.
Maggi gained penetration in nine of its ten biggest markets. In its two biggest markets, India and Philippines, the brand gained +3.3% and +3.2% penetration points respectively.
In India, Maggi grew on the back of high growth in snacking that started during the pandemic. For perspective, other snacking categories like Biscuits and Savoury snacks have gone up by 10% and 14% respectively (in volume). Noodles, where Maggi plays a large part, grew by 15%.
Last year Maggi manufacturer Nestlé also launched the ONE Nestlé project. It is an entrepreneurship program, where youth will be given the chance to open franchises of Nestlé's products. One of the popular franchises as a part of that program was Maggi Hotspot. These initiatives have helped drive further interest for the brand, encouraging shoppers to go and try these recipes at home.
Whilst in the Philippines, despite the FMCG industry being hard-hit by the pandemic, some categories (particularly cooking staples in which Maggi operates) thrived.
Maggi Magic Sarap is their biggest variant, and the market leader in meal flavourings being both affordable and versatile (as it can be used across many different dishes). The 8g single sachet was a key driver of their success. It is present in key retail channels and sits at an accessible price point to help cash-strapped shoppers manage their spend.
The brand has also adopted their offer by increasing their bundle packs from 12 to 14 and bigger individual sachets of 50g and 120g. This has helped them capture shoppers in Modern Trade retailers.
Maggi is no one-hit wonder either. It has seen growth in seven of the last ten years globally. Since 2012, it has increased its number of shoppers by 33%.
Red Bull saw the biggest CRP gain outside of the Top 50 take-home FMCG brands. It saw a +16% CRP increase, which equates to 77M more CRPs in 2021. This is the joint 10th biggest increase seen globally, moving it up 13 places in the rankings to 65th.
This strong performance is a continuation of growth it has seen for the last four years, increasing CRPs by 170M since 2017. If the brand continues a similar trajectory it could break into the Top 50 within the next 5 years.
Behind its 2021 performance was a global +0.7% penetration-point increase. As a result, it now sits on level pegging with some of the biggest gains we saw last year; in terms of shoppers, equating to an extra 9.6M shoppers. The brand gained CRPs and shoppers in most of its key markets including the US, Germany, Mainland China, the UK and its home market, Austria.
In the US, the brand has captured the attention of consumers in need of extra energy and looking for Ready-to-Drink alternatives to the more traditional coffee, with Red Bull becoming the favoured caffeine staple for young adults. Carving space between meals in the afternoon, the brand delivers on its main functional benefit: providing energy without compromising on taste.
As the long-standing category leader, Red Bull has benefited from – and outpaced – the continued growth seen in the Energy category. Red Bull has evolved in terms of ingredients and flavours, consistently adding to the core
offering. Zero-sugar versions in 2020 promise to taste like the original, and the brand is keeping things fresh with its seasonal flavour launches (e.g. pomegranate and dragon fruit).
All of this points to a broader macro trend within beverages towards ‘Better For You Functionality’. Fuelled by so much information, consumers are seeking out the next way to maximise function (in this case, energy) but with a story.
Similarly in the UK, where the brand gained +2% penetration points, the brand relaunched their “Zero” range, with a new formulation, winning 1 million new shoppers in its first year of launch.
Red Bull stands out from competitors by portraying a sociable and fun beverage: in fact, 1 in 4* Red Bull drinking occasions are because it is “fun to drink”.
Continuing its efforts to keep the category younger and stay relevant, collaborations in industries aligned with GenZ – such as gaming – continue to grow in popularity, with Red Bull’s longstanding involvement with the e-sports /streaming scene. Fundamentally, Energy Drinks and gaming go hand and hand: 1 in 10* occasions occur when consumers are gaming, and recent innovations aim to provide gamers with the energy and nutrition needed for those long gaming sessions.
*Source: Worldpanel US Beverage Consumption panel
From the Top 20 most chosen brands Online, the average amount of CRPs coming from the channel is 7%. However, there are four brands which get over 10% of their CRPs from the Online channel, and leading the way is L’Oréal Paris. The brand is sixth in the ranking, with 18% of CRPs occurring Online.
Since 2015, the brand has seen its Online CRPs increase three-fold, growing from nine million to 32 million in 2021. At the same time the proportion of brand choices made Online has increased from 6.7% to 18.4%.
The fact L’Oréal Paris is leading the way is no surprise. Parent manufacturer, L’Oréal has been targeting the channel for the past few years, and the beauty manufacturer expects 50% of its sales to come from ecommerce by 2023.
A big part of this success is due to the brand’s performance in Mainland China, which represents 82% of all its Online CRPs.
In this market, L’Oréal Paris has seen success with digital try-ons: they have the dual benefit of helping customers from an education perspective (i.e. helping customers find the
right product) and also in terms of personalisation, creating informed customer journeys and personalised product recommendations.
The brand has also built up a solid ecosystem of advocates and social sellers, jumping onto trending topics such as clean beauty and simplified skincare. Their perceived relevance increases further when we consider their use of influencers: they frequently create co-branded campaigns, relying on the popularity of celebrities to drive brand recognition and popularity.
These marketing efforts are also supported by their product offering. Their products take consumer segmentation into account, meaning they offer multiple products targeted to different age groups. This means they can appeal to the whole market, which is bolstered by their commitment to innovation and R&D from an investment perspective, leaving them in a strong position to appeal to all customers.
