2016 has been a bad year for sugary foods—packaged food sales in the US have registered slow growth as healthier alternatives usurp share.
The fastest growing Index brands are snacks positioned around a healthy lifestyle.
As these health-oriented upstarts gain share, legacy brands look to mergers and acquisitions to grow earnings in a static market.
Meanwhile, digital efforts can differentiate brands looking for growth, online or in-store.
While only two percent of the $675 billion in U.S. grocery sales occurred online in 2015, e-commerce is enjoying rapid growth across grocery categories—thanks in part to visibility on retailer sites.
99 percent of brands are present on at least one of the sixteen major grocers profiled in this year’s study, and 12 percent of brands have signed up for the Amazon Dash button since introduction last spring.
Brands have increasingly invested in digital ecosystems with rich recipe content shared across social platforms, increasing brand awareness and easing the path to purchase.
Lastly, adoption of mobile tools and emerging platforms are reaching scale—94% of brands have mobile optimized sites, up from 82% in 2015, and 82% of brands are now present on Instagram, up from 61% in 2015.
Kraft (domains: kraft.com / kraftheinzcompany.com / kraftrecipes.com) rises to the number one spot in this year's Digital IQ Index: Food, boasting a recipe site with shopping list functionality and local offers on subsidiary brands' products, strong visibility across brand and category searches, and aggressive advertising on mobile, desktop and video platforms.
The study attempts to quantify the digital competence of 126 Food brands operating in US market. Members can download the full report at L2inc.com. Video above published September 19, 2016.
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