Who doesn’t love a sweet treat at the end of the day? But with American obesity rates rising and continuous pressure from a new health-conscious generation breathing down the necks of the food industry, companies have been forced to evolve their traditional sweet offerings. Whereas in the past you could easily find Kinder Surprise Eggs and Dunkaroos in the checkout aisles to tempt weary shoppers, today you’re more likely to find healthier alternatives such as Kind bars or Unreal chocolate alternatives. And someday soon, you may even see the all-new Milkybar Wowsomes if you live in the UK.

Why this shift to healthier sweet alternatives, what is a Milkybar Wowsomes, and why should you care? We’re glad you asked. At INSITE, we always have our eyes peeled for industry-relevant news. Being a major player in the secondary packaging automation field with our case erectors and sealers, we know the impact that introducing a new product can have on a company. These new Milkybar Wowsomes are poised to make quite the impact on the larger food industry and are a signal to all that the tide is turning when it comes to the creation of snack foods and treats.

What is a Milkybar Wowsome?

Some have been referring to Nestlé’s latest invention as “designer sugar” or “cotton candy tech,”  but what exactly is all the hype about? While Nestlé has, in fact, released a new candy bar called the Milkybar Wowsome, the true star of the show is the bar’s unique sugar structure.

Nestlé first came up with their new sugar structure approach back in 2016, but the Milkybar Wowsome will be the first time that the 30%-sugar reducing method of production will be implemented in the company’s widely popular sweets. The team at Nestlé discovered that by creating an aerated, porous sugar that dissolves more rapidly in the mouth the product which contains that new variation of sugar would be able to have 30% less sugar than the standard candy bar.

While traditional sugar is made of crystals, Nestlé’s new aerated sugar is amorphous, meaning it has no defined shape, which allows it to dissolve in the mouth faster. It’s the same approach that is used to make cotton candy, thus the loving nickname of “cotton candy tech.”

Nestlé’s goal was to create a sweet that contained only natural ingredients and that would in turn appeal to health-conscious consumers. This new amorphous sugar has the potential to reduce sugar by up to 40% in Nestlé products. The new Milkybar Wowsome contains no artificial sweeteners, preservatives, colors, or flavorings, can be a good source of fiber, and is gluten-free.

How Nestlé Has Continued to Evolve

This latest advancement by Nestlé further demonstrates how the food industry is shifting to adapt to a new, more health-conscious market. To date, Nestlé has removed “more than 60 billion calories and 2.6 billion teaspoons of sugar from across our food and drink portfolio in the last three years.” stated Jas Scott de Martinville, Global Lead for Nestlé Confectionery Research and Development in a recent news release on the subject. And when it comes to what does Nestlé own, the list includes many popular names such as Wonka, Nerds, Dreyer’s, Laffy Taffy, and more.

The new Milkybar Wowsome will only be available in the UK, but we can expect to see the ripple effect of this breakthrough disturb the waters of the food industry all around the globe.

How Consumer Demand Has Changed the Confectionery and Greater Food Industries

Over the past 20 months, 17 CEOs from some of the largest food companies have stepped down, or been forced aside, and have made room for new thought leadership in one of the most impactful industries in our world; food. As retailers shift to make their brick and mortar locations revolve around the consumer, not the product as traditional thinking would suggest, big food companies have been forced to reevaluate how they grab the ever-wandering eye of their target demographics.

In 2017 we saw a significant rise in demand for plant-based food, with relatively new companies like Impossible Foods and Beyond Meat experiencing enormous growth. But a demand for healthier alternatives for classic favorites isn’t limited solely to entré items like burgers. Today’s consumers, especially the younger Millennial demographic, seek products that offer transparency when it comes to their ingredients and impact on the world at large.  

This desire for more health-conscious products has prompted a wave of change within the larger food industry. Decades-old companies rooted in creating delicious, but not necessarily healthy foods, have become forced to adapt to the whims of today’s consumer. Which means that giants within each sector of the food industry, even companies as large as Nestlé, now need to dedicate time and resources to either modifying their current offerings to meet this new healthy demand or create entirely new offerings.

While Nestlé is the first to debut this extraordinary sugar-reducing breakthrough, we can expect to see many of its competitors rolling out their own versions of healthy alternatives in the coming months and years. This is one trend that appears to be here to stay.

Stay in the Know with INSITE

Nestlé is always on our radar; as well as P&G, Unilever, Johnson & Johnson, and every other titan within the consumer packaged goods industry. From new secondary packaging automation news to consumer packaged goods breakthroughs, you can count on INSITE to provide you with the industry news you need to stay sharp.

In years past, it would be nearly unheard of to see a company move its corporate headquarters. Towns big and small rose up around these vital buildings of commerce and companies invested heavily in their surrounding area to maintain their welcome in the destinations they chose to inhabit.

But within the last five years, we have seen a large number of huge enterprises not only contemplate moving their headquarters but actually follow through and relocate to new cities or even new countries. Apple has moved to Cupertino, California in their new iconic “spaceship building,” Amazon is vetting it’s 10 headquarters finalists, and Unilever has announced their move to Rotterdam.

Unilever is a prime example of a brand who shocked the world by announcing their plans to consolidate their corporate headquarters. All is not lost for London though; Unilever intends to base its beauty, personal-case, and home-care divisions in London even after the rest of the divisions move to Rotterdam.

As a leader in the secondary packaging automation and greater consumer packaged goods industries, INSITE has been following the unfolding story of Unilever’s move closely. Having provided many such corporations with the case erectors and case sealers they need to streamline their production, the potential of a new plant opening for one of the largest consumer goods manufacturer is of vast interest to us.

What Prompted Unilever’s Consolidation

Until 2018, Unilever was a dual-listed company as Unilever PLC and Unilever N.V., based in London, UK, and Rotterdam, Netherlands respectively. Unilever PLC maintains a primary listing on the London Stock Exchange as is a part of the FTSE 100 Index. Unilever N.V is likewise listed on the Euronext Amsterdam and is a part of the AEX index. And of course, Unilever is recognized as a lux on the Euro Stoxx 50 stock market index and as such identified as a supersector leader in the Eurozone.

Back in 2017, Unilever was able to fend off the single largest corporate bid ever made, but in doing so was forced to present investors with a comprehensive plan that would boost profits and reinvigorate the decades-old brand. As Britain’s third largest company, Unilever was understandably somewhat off-put by their perceived lack of support from the British government during this time. Unilever Chief Executive Paul Polman was quoted as saying in the weeks following off the failed takeover that Britain should “Do more to protect national champions.”

British unions have noted that Dutch companies appear to have stronger pull when it comes to fighting off unwanted takeovers, such as when Akzo Nobel was able to fend off a 26.3 billion euro bid from PGG Industries.

Being a company that relies heavily on sales through brick and mortar stores, a practice which is struggling to say the least in our modern digital-driven age, there’s no doubt that the prospect of consolidating in a location that would better support their long-term goals would be attractive.

And while Unilever Chairman Marijn Dekkers maintains that Brexit was not a motivating factor in their decision, citing that “The board takes a 30 to 50-year decision. We think both countries are highly attractive investment climates and we will continue to invest in both countries as a result of this,” one can’t help but speculate as to the correlation between the uncertainties posed by Brexit and Unilever’s sudden move out of London.

It should be noted that Unilever plans to maintain their location in London, but it will no longer be recognized as a headquarters and will now house only three of the company’s divisions. In theory, there should be no job loss due to this move from London, but residents of Rotterdam can expect to see potential employment opportunities in the coming months.

Why so Many Corporate Headquarters are Moving

Apple, Amazon, General Electric, McDonald’s, ADM; it seems like everyone is relocating their corporate headquarters of late. The question is why? According to some experts; one of the potential motivators behind this trend could be human resource needs.

In a world that is becoming more digitally-driven with every passing day, companies are needing to relocate to more attractive destinations to attract the talent they need to modernize their business. Take Young America for example. The direct-marketing firm called the town of Norwood Young America (previously just Young America) home and adopted its name as it’s own. For 42 years, the agency called Young America home and contributed mightily to the town’s development and prosperity. But in 2015, they shocked the world by announcing plans to not only move to downtown Minneapolis but also become known simply as YA.

The reason behind this move? Talent. The traditional marketing agency came to a point where they needed to attract high-level developers and designers in order to stay relevant in their industry, and they weren’t going to find that talent 40 miles outside of the city.

Many other corporations are facing the same challenges. They’re either running out of space in their current location, or they need to relocate to a destination that will draw the next generation of talent that they need to keep their business alive.

Keep Your Workforce Engaged with INSITE

At INSITE, we know all about appealing to a young, or transient workforce. We’ve created our case erectors and sealers to be easy to understand and use, saving you hours of training time.

Whether you’re staying in place or moving across the company, we have the machinery you need to keep your company moving forward. Make sure to stay tuned in to our blog to stay up to date with all of the latest CPG industry news.

2018 is shaping up to be a big year for multinational powerhouse, Unilever. Responsible for such brands as Axe, Clear, Dove, Hellmann’s, Lipton, and a multitude of others, the home and personal goods manufacturer has long held a place of prestige within the broader marketplace.

Being a seasoned player in the secondary packaging automation industry, we at INSITE pay close attention to the happenings of such large conglomerates that rely so heavily on secondary packaging automation. With over 2.5 billion consumers utilizing a Unilever product on any given day, the company understandably utilizes a secondary packaging system that includes state-of-the-art case erectors and sealers to distribute their wares to the global market. And with the addition of a 75% stake in Italian personal care and wellbeing business, Equilibra, Unilever will be dispensing more products than ever in the 2018-2019 fiscal year.

Unilever’s Shift Towards Beauty and Personal Care Products

In years past, Unilever’s Foods division had made up 30% of the company’s revenue. But, starting in 2011, we saw these numbers fall from 30% down to 23% in 2017, while surprisingly, their personal share segment grew from 33% to 38.5% within the same period. This shift in consumer demand is not one that is unique to Unilever.

The broader market is seeing increased performance in the personal care sector as younger demographics begin to invest in at-home personal care as opposed to more costly service-based offerings and as consumers seek more natural, and eco-friendly replacements to add to their existing daily routines.

On the whole, the personal care segment is projected to grow as much as 9.2% in the coming years, leading to a potential market volume of $67,982m by 2023. Already, the industry has seen a 4% compound annual growth rate, with all data pointing towards a continued upwards projection.

Within Unilever’s personal care sector, you’ll find skin, hair care, deodorant, and oral care divisions. In fact, 70% of the personal care division’s profits stem from the skin and hair care segments alone. As new products emerge through submarket growth, such as anti-aging, eco-friendly, men’s grooming, and multifunctional products, Unilever is actively adjusting its focus to narrow in on its ever-growing personal care sector. Their latest move? Acquiring Italian personal care and well-being company, Equilibra.

A Brief Equilibra Profile

Equilibra was founded in 1987 by Franco Bianco, who rooted the company in a natural personal care philosophy, leading to the creation of plant-based skin and hair care lines that revolve around aloe, argan, almond, and karité (more commonly referred to as shea butter) formulas. The company also holds a growing position within Italy’s nutritional supplement market.

In a press release published by Unilever, Fulvio Guarneri, General Manager Unilever Italy, had this to say of the new partnership: “Unilever has a successful track record of scaling partnerships with quintessential Italian brands on a national and European level. Unilever and Equilibra will leverage their complementary expertise to grow the Equilibra business, bringing sustainability, wellness and the Italian spirit to people in Italy and abroad.”

While many of the terms of the agreement were not made public, it was announced that Equilibra will continue to be run as a standalone business led by CEO Marco Bianco along with the Bianco Family and management team. Franco Bianco will additionally be staying involved through the new acquisition as Honorary Chairman. The Equilibra headquarters will be remaining in Turin for the foreseeable future.

Potential Ramifications of Unilever’s 75% Acquisition of Equilibra

While Equilibra stated that the company looks forward to helping Unilever grow within the “wellbeing space” both in Europe and beyond, what does this mean for Unilever? While Unilever brands already include many natural-inspired beauty and wellness products, the acquisition of a 75% stake in Equilibra will allow Unilever to further expand into the organic and natural personal care market, a sector that is expected to grow to $25 billion by 2025.

Many other companies have made a jump to providing their clientele with highly desirable beauty and wellness goods. Wal-Mart Stores, Inc, for example, has worked to expand its proprietary program to reduce the number of potentially harmful substances used in its beauty products, as well as broaden their list of chemicals to be avoided. Target Corporation, likewise, has taken pains to reimagine their stores and promote all-natural beauty and wellness wares.

Through this 75% acquisition, Unilever stands to become a powerhouse in the beauty and wellness sector, more so then they are even now. With the addition of Equilibra to the Unilever name, the company is poised to further penetrate the skin and hair care segments by providing its customers with specially targeted products aimed at addressing the individual needs of its users. While the change will not be revolutionizing, it will cement Unilever’s growth in the natural, holistic beauty and wellness market.

Thanks to this acquisition, Unilever’s personal care EBITDA margin is projected to reach 24.4% by 2022. In 2018, initial numbers show us that personal care products will potentially account for up to 40% of Unilever’s revenue. Skin and hair care revenues alone have already grown by over a billion dollars in revenue, leading to the conclusion that by combining forces with Equilibra, Unilever will be able to see increased revenue across their personal care sectors as the new partnership yields the high-value products that consumers are hungry for. We predict that 2018 will be the year of exploration as the two brands find their way through this new partnership and 2019 will be the year that the combined efforts of these two brands will fully saturate the market, leading to increased revenue across Unilever’s personal care sector. Enough to finally edge out L’Oréal? Only time will tell.

Keep up with Consumer Packaged Goods Industry Trends with INSITE

When it comes to consumer packaged goods and secondary packaging automation, you can trust INSITE to keep you abridged of all the latest breaking news and advancements within the two industries. Backed by a half-century of success, we know a thing or two about the greater consumer packaged goods industry. And with our cutting-edge case erectors and sealers, we’re always on the front lines when it comes to industry innovation. From multinational conglomerate mergers to scientific breakthroughs, you’ll always be able to find unique packaging insights at INSITE.