Page 21 - Retail World March 2021

PRODUCTS REFLECT NEW FMCG LANDSCAPE A quarter of the Product of the Year winners for 2021 sit among the ‘vegetarian/vegan’ and ‘health food’ categories. L By Product of the Year Australia Director Sarah Connelly. ast November, Australia’s favourite supermarket products were honoured via the votes of thousands of shoppers in the annual Product of the Year Awards. The endorsement of the world’s largest consumer-based awards program, Product of the Year, serves as a shortcut for shoppers in saving them time and money on the path to purchase. Eight out of 31 award winners for 2021 are from the ‘vegetarian/vegan’ and ‘health food’ categories, indicating that shoppers are favouring healthier, plant-based products. A range of meat-free, vegan and health food alternatives were selected as winners, demonstrating that companies are listening and responding to the demand. Winning products in this category include 7-Eleven’s No Sausage Roll, v2 Food’s plant-based meat, and Coles’ Vegan Choc Hazelnut slice. After the tough start to 2020, we decided to announce our newest awards category, ‘Ones to Watch’, which recognises innovative products from smaller companies that may be unable to enter into the main awards program due to the early stage of their brand, growth and distribution journey. The research is undertaken with 1000 consumers and looks to previous years’ winners as a benchmark for the winning products. This year, awards were given to growing plant- based sweetener brand Lakanto, and The Human Bean Co’s Faba Bean Snacks range. While it was a challenging year for all, we were delighted by media interest in supporting the 2021 program. The winners list was accompanied by extensive research undertaken by Nielsen, which revealed interesting insights around shopper behaviour over the past year. The data revealed that during the height of the Covid-19 pandemic, consumers were seeking products and services that delivered value, quality and peace of mind. Reflecting this, the number of surveyed consumers trying new products and brands that fulfilled such needs surged, with 64 per cent buying a product they were previously unfamiliar with. Looking ahead to 2021, here are the shopper trends to be aware of: Shoppers are exploring new products and brands, with brand loyalty on the decline. Many shoppers went out of their comfort zone and trialled new brands and products, with 39 per cent of respondents trying one, two or three new brands, 20 per cent trying four to six new brands and five per cent trying seven new brands. Of these shoppers, 71 per cent agreed it was likely they would buy a similar product again. Taking this into account, businesses must continue to adapt to new basket needs to take advantage of such a window of opportunity to translate pandemic-minded consumption into continued, essential routine. Shoppers are shifting towards online shopping. As a result of Covid-19, we’re seeing key consumer behavioral shifts in how people buy their products, with nearly half of online shoppers being new to the channel. Key drivers for this increase in online shopping include pure necessity, product availability, health and safety concerns, and convenience. In the post-Covid landscape, price, province and convenience are key drivers for consumers when they shop. The research found that 86 per cent of surveyed shoppers would choose a grocery product based on price, 75 per cent would buy groceries that are Australian made, and another 74 per cent would consider convenience when grocery shopping. With these trends in mind, and the fact that many brands are recovering from the challenges of 2020 and looking to cut costs where possible, the Product of the Year team is excited to continue supporting them on their journey and ensuring that entering a product into our awards is accessible as possible. Despite the hardship faced, we still want to celebrate and champion the brands constantly innovating and creating products that Australians love. This is why, locally, fees for our 2022 program will be reduced for all entrants, while our ‘Ones to Watch’ category will be back, ready to welcome as many newcomers as possible. On an international level, the awards continue to thrive. The UK program, now in its 17th year, announced 34 winning products. Globally, consumer focus is on improved health and wellbeing, with winners worldwide including meat- free alternatives, no- and low-alcohol drinks, nutritional supplements and ‘free from’ products for allergy sufferers. The Australian awards program is now in its 13th year. The 2022 program will be open for entries between 8 March and 31 May 2021. INDUSTRY INSIGHT MAR, 2021 RETAIL WORLD 19