How food and beverage brands can tackle the cost-of-living crunch

Food and beverage brands are at the frontline of the cost-of-living crunch, but there are options to demonstrate value and care for consumers facing difficult times. As the cost-of-living crisis deepens and marketers become accustomed to the pressures of operating in a constant state of crisis, it is crucial that food and beverage brands strive to remain empathetic in their approach.

Why it matters

Recently, UK inflation hit a three-decade high that experts say could reach a four-decade high of 10% by the end of the year. And the longer-term effect when combined with global conflicts and multiple national lockdowns will be squeezed wallets worldwide.

According to Rebecca Pinn, senior planner at global marketing communications agency Wunderman Thompson, consumers are becoming savvier about where their disposable income goes. As she writes for WARC, it’s never been more important to communicate the good a brand is doing.

Takeaways

To show empathy while also positioning themselves for success during the cost-of-living crisis, food and beverage brands should consider three things.

1. From virtue signalling to value signalling
   With price rises across the economy, words alone aren’t going to cut it. Brands will need to make the switch from articulating a moral stand to showing how they are on the side of the consumer. 
2. Transparency is the new currency
   With rising costs and potential changes to products and pricing, brands will need to acknowledge these changes openly and upfront rather than reactively when confronted by their customers.
3. Making a difference will make all the difference
   With consumers becoming savvier about where their disposable income goes, it’s never been more important to communicate the good your brand is doing in the world to give you the edge.

Key quote

“Increasingly, we will see more brand owners share more about their inner workings and justifications for changes to their brand’s end-product or pricing. With 94% of consumers saying they’re more likely to remain loyal to a brand that offers transparency, instead of painting an ‘always positive’ picture, brands will let customers in and lift the lid on business decisions they’ve been forced to make and the reasons why” – Rebecca Pinn, senior planner at Wunderman Thompson.

^{[Image: Andre Taissin from Unsplash]}