FEBRUARY 2016MARKET INSIGHTS

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SUPPLY CHAIN

ADVANCES IN Smart Shipping

CONNECTED CONTAINERSBougainville is the world’s first container ship with integrated TRAXENS technology. The technology turns standard containers into smart connected objects that communicate among themselves and with the ship. French container shipping company the CMA CGM GROUP owns the newly built 18,000-TEU ship. TRAXENS enables real-time data collection via built-in relay antennas, even from the most deeply hidden containers, which is then sent securely via data centers to CMA CGM headquarters in Marseille. Data collected includes “location, temperature, humidity level, vibrations, impacts, attempted burglary, customs clearance status and more,” whether the ship is on land or at sea.

The system allows real-time monitoring of containers worldwide, which is especially useful with refrigerated transports of perishable goods because temperatures can be controlled remotely. Information collected is then analyzed to improve customer service, which should ultimately help reduce congestion by ensuring smooth port passage. An additional future benefit: the system should help fight against false declarations and counterfeiting by facilitating control of the containers.2

SMART SHIPThe building of the world’s first smart ship, Green Dolphin, was announced on December 1, 2015. The vessel is being designed with a whole-ship information perception system that enables data sharing among all systems and equipment. The smart ship will be designed to transport up to 38,000 metric tons of deadweight while using big data to allow real-time data transmission and collection for better navigational safety and improved operational efficiency. Smart functions will include overall performance and status; safety status; energy efficiency monitoring, analysis, assessment, and optimization; engine room operations; sea route monitoring; navigational operations; and environmental impact monitoring, among others. The ship is the first civilian project of CSSC Innovation, led by the Shanghai Ship Design and Research Institute. Construction is expected to begin in September 2016 and be completed in 2017.3

According to International Monetary Fund (IMF) global economy growth

forecasts, port congestion is expected to worsen in 2016 in response to

projected cargo volume increases of approximately 3.6 percent. With only a

small percentage of container terminals intentionally built to handle close up

(ultralarge) container ships (ULCS) greater than 10,000 twenty-foot equivalent

units (TEU), congestion management solutions include smart container tracking

and a smart port environment.1

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PACKAGING

EMERGING Art

GEOMETRY’S GENIUSAs craft beers become more upscale, brands tend to “emphasize the individuality of the drinker and the experience” and use their labels to facilitate that message. Denmark’s Evil Twin Brewing label designs, each consisting of triangular shapes, were designed as eclectic, almost outlandish, statements. The geometric patterns on the labels grab attention, but also provide an opportunity for smaller details to be noticed later.4

Polish graphic designer Kamil Piatkowski recently created a bottle design approach called Regular Beer that screen-prints geometric patterns in order to reduce the costs of traditional bottle labels. From a manufacturing perspective, the screen-printing approach offers reduced cost and complexity benefits that could make the variety and scalability of the elegant geometric design appealing to mass-produced brands.5

AUTHENTIC AESTHETICSThe rise in popularity of Etsy and other sites offering handmade goods attests to consumer interest in products and packaging that don’t look mass produced, even if they are. Cacao Barry, a leading

manufacturer of refined cocoa and chocolate products, recently adopted this trend to further cue authenticity and credibility as part of its brand identity. The brand created a “periodic table of flavor profiles,” including botanical paintings and illustrations of plants unique to a particular region, and applied it across its Plantation and Origine chocolates product lines.6

The new packaging also reinforces the company’s commitment to an elevated experience for its consumers with easy access to all key information (e.g., cocoa percentage, fluidity, chocolate format, net weight, etc.), flavor illustrations and descriptions that communicate the chocolate’s taste, and additional information on cacao genetics and the origin of the product.7

The age-old question of whether art imitates life (or vice versa) may spark new

conversations in the realm of packaging. Brands seeking standout at shelf are

exploring geometric patterns, authentic (even vintage) design aesthetics, and

imagery inspired by history.

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FOODSERVICE

JUST Desserts

SWEET LITTLE SNACKSTechnomic’s Dessert Consumer Trend Report indicates that 58 percent of dessert purchases are impulse buys and are often eaten as snacks. These include traditional desserts such as cookies, brownies, and hand pies, but now also include restaurant items such as housemade pretzels drizzled with salted caramel sauce, Nutella-filled quesadillas, and a bacon-churro combination paired with chocolate-chili dip.”9

HYBRID DESSERTSChicago-based research firm Datassential recently reported that 28 percent of consumers are interested in hybrid desserts, something that’s currently appearing on the menus of independent restaurants, fine dining, and ethnic establishments. CREAM, a California- and Nevada-based dessert store, provides ten varieties of cookies and dozens of flavors of ice cream so that customers can tailor their desserts. Unusual combinations (like red velvet and regular taco shells) are also an option, piled high with three scoops of ice cream.10

One can expect to see a wide range of dessert

trends in 2016, many of which began gaining

momentum in 2015. Consumers are more interested

in food quality than ever before, and are more willing to sample flavors

from global cuisines. For restaurateurs, stocking a dessert kitchen is no longer

a simple task given the trend toward stone-ground flours, varieties of sugars,

single-origin chocolates, and vanillas from around the world. Desserts often

contain more sweet and savory combinations, and a growing number of chefs

are creating their own staples when packaged products don’t meet their needs.8

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SPICING IT UPMintel International analysts note that spices are now the fifth most popular dessert flavoring, with global choices influencing consumers. Bittersweet chocolate cake is served at the Asian-inspired Blue Ginger in Wellesley, Massachusetts, along with cardamom ice cream and a spiced sugar wafer.

When Niche restaurant in St. Louis decided to limit 90 percent of its pantry to locally sourced ingredients available within a 150-mile radius, it meant the chef could no longer use chocolate, vanilla or baking spices. She then replaced those spices with naturally spicy sassafras, dandelion root, and shiso. The chef

also relies on beets, sweet potatoes, and miso to create the

richness formerly available from chocolate and vanilla.

CLASSIC NOSTALGIAMenu research firm Food Genius is noting classic candies and confections

on menus, with Nutella and butterscotch becoming

the popular flavors in independent restaurants. Euclid Hall, an upscale beer hall in Denver, Colorado, offers an Almond Joy dessert that consists of chocolate and coconut pastry creams with “coconut-almond crumble, vanilla whipped cream and butterscotch caramel.” Houlihan’s Caramel NutCrunch Pie contains crushed Snickers bars, with vanilla ice cream. The crust is made of Oreos and peanuts, topped with warm caramel and fudge sauces.

Coi in San Francisco combined two trends—spiciness and nostalgia—when creating a Mounds-inspired dessert that

FOODSERVICE

blends the spiciness of pandan kaya (a coconut custard jam using the Asian herb pandan) with a coconut cookie, coconut cake, pandan chocolate custard, and chocolate-coconut mousse in a chocolate dome. In New York City, the Eataly food hall offers a Nutella Bar, allowing guests to add the familiar hazelnut-chocolate spread to brownies, buttercream frosting, cheesecake, ravioli and grilled sandwiches.11

COLD COMFORTAn increasing number of chefs are experimenting with frozen desserts using white chocolate. These include Minneapolis’s Marin Restaurant and its white chocolate popcorn sorbet, and Chicago-based Embeya’s Thai coffee ice cream with “caramelized white chocolate mousse, coconut chile crumble and mint.”12 Marin’s dessert also reflects the sweet snack trend with the incorporation of salty popcorn, while Embeya’s coffee ice cream stays on trend with the spiciness of chile and mint.

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MARKETING

TAKING TECH To a Personal Level

SMART SPOONSTo persuade consumers to upgrade to Maille Mustard, its specialty brand of premium mustard, Unilever created boutique shops in London and Paris. The brand developed a curated experience that offers a selection of 45 tastes for consumers to experience with a Discovery spoon enabled with near field communication technology. The spoon empowered consumers by enabling them to save product preferences of sampled mustards by tapping it against the base of the jar containing a preferred flavor. Maille wanted to establish a relationship with curious foodies that helped them experience the magic of the product, even if they didn’t purchase right away. Approximately 400,000 consumers signed up for Maille emails with recipes and complementary product recommendations.13

SMARTER SHELVESGrocery giant Kroger is experimenting with smart shelf technology in a Cincinnati-area store. Currently, the digital shelves are programmed to show video images of oversized price tags that can be altered via computer. The hope is that by minimizing the effort to re-price items (it takes a typical Kroger store more than two weeks to completely re-price its shelves), store clerks have more time to focus on customers. Each smart shelf has a plastic screen that houses a small digital device, which displays pricing, promotions, and product information. Kroger is also exploring the potential for applications that allow shoppers to touch a smart shelf with their smartphones to receive on-demand nutritional info. Even further down the development pipeline, smart shelving could theoretically direct shoppers to the items they need and send an alert if a shopper accidentally passes the correct shelf.14

Fast-moving consumer goods brands must continuously add

value to their consumer experience, while remaining mindful not

to use technology for technology’s sake. When no consumer-brand

engagement exists in a consumer’s interaction, brands put themselves at risk

for commoditizing what was likely a significant investment in technology.

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SUSTAINABILITY

SUSTAINABLY Sourced Meat

ECO-CONSCIOUS COMMITMENTSMcDonald’s has agreed to buy an as-of-yet-unannounced percentage of beef from verified sustainable sources in 2016 as part of its aspirational goal to eventually source all food and packaging sustainably. As a pilot project, nearly 100 Canadian ranchers are conducting a self-assessment of their practices, which will be verified by the third-party auditors from Where Food Comes From and ultimately shared with the Canadian Roundtable for Sustainable Beef. The pilot phase is set to conclude in April 2016.16

In the United States, McDonald’s is also collaborating with the National Cattlemen’s Beef Association,

along with other associations, and has cofounded the United States Roundtable for Sustainable Beef to help determine a mutually acceptable definition of sustainable meat.17 In Europe, the quick service giant is chairing the Sustainable Agriculture Initiative’s Beef Working Group to create and publish best practices.18

PIONEERING PRACTICESSustainable Food News refers to White Oaks Pastures as a pioneer in sustainable meat production for its humane, eco-friendly practices. No chemical fertilizers or pesticides are used on the farm, and animals do not receive grain hormone implants or antibiotics. Sheep, cattle, goats, hogs, poultry, and rabbits are raised on the fourth- and fifth-generation farm, along with organic vegetables. Animals roam freely, without pens or cages.

The farm “supports nature’s food chain, using only sun, soil and rain to grow organic sweet grass for the animals to eat.” Animals are put to death in USDA-certified abattoirs in zero-waste facilities. Blood is then digested to make liquid organic fertilizer, bones are ground down to meal, and organs are used as compost. White Oaks Pastures also salts and ships animal hides to leather tanneries. The farm also uses its own water treatment plant to use wash-down water as irrigation water for pastures.19

Mintel’s 2016 food and drink trend report found that meat producers

should focus significantly on obtaining livestock from sustainable

sources. Consumers are placing an increased emphasis on the importance

of the environmental sustainability of produce, and, unsurprisingly, eco-

friendly meat with clear welfare standards is also becoming vital.15

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www.havigs.com

Credits1MacAdden, V. (2015, November 17). The Connected Future of the Intermodal Industry at Intermodal Europe, ORBCOMM. Retrieved from http://blog.orbcomm.com 2Hanna, S. (2015, December). Smart Container Tracking, Supply Chain Digital. Retrieved from http://issuu.com/supplychaindigital 3PRNewswire.com. (2015, December 2). CSSC Developing a Smart Ship for the Future (Press release), China State Shipbuilding Corporation. Retrieved from http://www.prnewswire.com 4Gibb, A. (2015, February 5). 4 Packaging Design Trends for 2015, Creative Bloq. Retrieved from http://www.creativebloq.com 5Pincus, R. (2015, April 21). Screen-Printed Geometric Designs Mean No More Bottle Labels, PSFK. Retrieved from http://www.psfk.com 6Gibb, A. (2015, February 5). 4 Packaging Design Trends for 2015, Creative Bloq. Retrieved from http://www.creativebloq.com 7Cacao-barry.com. (n.d.) Cacao Barry® Presents the Next Generation Packaging and Design for Optimum Flavor Protection, Cacao Barry. Retrieved from http://www.cacao-barry.com 8Leahy, K. (2016, Winter). The Proof Is in the Pantry Tags, Food Fanatics. Retrieved from http://www.foodfanatics.com 9Cobe, P. (2015, December 1). 3 Restaurant Trends Worth Watching, Food Service Director. Retrieved from http://www.foodservicedirector.com 10Restaurant Business. (2015, November 9). 3 Sweet Dessert Trends for 2016, Restaurant Business (Sponsored content). Retrieved from http://www.restaurantbusinessonline.com

11Restaurant Business. (2015, November 9). 3 Sweet Dessert Trends for 2016, Restaurant Business (Sponsored content). Retrieved from http://www.restaurantbusinessonline.com 12Glazer, F. (2015, December 1). The Year in Desserts: Crunchy, Salty, Mini and More, Nation’s Restaurant News. Retrieved from http://nrn.com 13Vizard, S. (2015, December 4). Unilever on Why Brands Must Put Humanity and Personality into Technology, Marketing Week. Retrieved from http://www.marketingweek.com 14Coolidge, A. (2015, October 4). Krogers Tests “Smart Shelf” Technology, USA Today. Retrieved from http://www.usatoday.com 15Rousseau, O. (2015, October 27). Sustainable Meat and e-Commerce Key Trends for 2016, Global Meat News. Retrieved from http://www.globalmeatnews.com 16Ryan, C. (2015, June 29). Sustainable Beef Scheme at McDonald’s Canada Sees Positive Start, Global Meat News. Retrieved from http://www.globalmeatnews.com 17McDonalds.com. (n.d.). Collaborating for Sustainable Beef in the U.S., McDonald’s. Retrieved from http://aboutmcdonalds.com 18McDonalds.com. (n.d.). Principles for Sustainable Beef Farming in Europe, McDonald’s. Retrieved from http://aboutmcdonalds.com19Gierer, L. (2015, September 14). Georgia Farmer Promotes Sustainable Agriculture, Ledger-Enquirer. Retrieved from http://www.ledger-enquirer.com

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