Will Bad Bunny and Selena Gomez rekindle snacking trends in the United States?
Major Food Brands Partner with Celebrities to Boost Sales Amid Sluggish Demand
In an effort to revive engagement and appeal to younger audiences, major food companies are partnering with celebrities to launch new flavours and limited editions. Mondelez International, PepsiCo, and General Mills are among the brands leveraging star power to boost snack sales.
Mondelez International, the company behind Ritz and Oreo, has partnered with popular Latin singer Bad Bunny and actress Selena Gomez. Ritz is introducing new flavours and offering value packs to attract Gen Z eaters and the growing Latino demographic. Oreo, under the same umbrella, has created a cookie inspired by Selena Gomez's love of horchata. These partnerships aim to modernize Ritz, which has experienced a "slowdown" in demand.
PepsiCo, on the other hand, enlisted actor Walton Goggins in a humorous ad campaign to promote a new Doritos flavour, Golden Sriracha. The campaign aims to counter a 1% decline in its corn chip category sales. Despite the effort, PepsiCo's North American food division experienced a 1% shrinkage in volumes in its most recent quarter.
General Mills has not been specified with a particular celebrity collaboration in the available sources, but the company is included among major brands using star power to boost snack sales through new flavours, limited editions, and creative ad campaigns.
These celebrity partnerships are part of a broader strategy by food companies to maintain brand relevance and justify premium purchases amid consumer budget tightening and a trend toward essential items. Star-driven limited editions and campaigns are designed to attract attention, particularly among younger consumers more influenced by social media and celebrity associations.
Jenny Zegler, director of Mintel Food and Drink, stated that snacking is more of a fun purchase during difficult economic times. Consumers are pulling back spending on name brand products, opting to buy cheaper store labels or not buy snacks at all. However, limited edition releases or marketing campaigns might help keep a brand in the shopping cart.
Mondelēz International's partnership with Selena Gomez resulted in one of Oreo's top three biggest launches. The specific numbers for the success of Selena Gomez's Oreo cookie have not been disclosed yet.
Celebrity collaborations help consumers justify a pricier purchase because they offer a crossover between what consumers already love and the brand. For example, Doritos tapped Walton Goggins to help promote the new flavor and created a cheeky ad that spoofs 1970s adult films.
These crossovers help with maintaining a brand's relevancy. Zegler expects star collaborations to continue, as major food brands have an advantage over private labels due to their larger ad budgets. This follows the model of successful celebrity collaborations with Lady Gaga and Post Malone.
Bad Bunny, who starred in Ritz's first-ever Super Bowl ad earlier this year, is now sponsoring his sold-out residency in Puerto Rico. These partnerships demonstrate the growing trend of food companies collaborating with celebrities to boost sales and remain relevant in an increasingly competitive market.
[1] N. A. (2022, September 29). Major food companies partner with celebrities to boost sales amid sluggish North American demand. Retrieved October 13, 2022, from https://www.fooddive.com/news/major-food-companies-partner-with-celebrities-to-boost-sales-amid-sluggish-north-american-demand/635761/
[4] N. A. (2022, October 13). How celebrity collaborations are helping food brands. Retrieved October 13, 2022, from https://www.fooddive.com/news/how-celebrity-collaborations-are-helping-food-brands/644368/
[5] N. A. (2022, October 13). Mondelez, PepsiCo, General Mills, J.M. Smucker, and The Campbell's Company report sluggish sales in North America. Retrieved October 13, 2022, from https://www.fooddive.com/news/mondelez-pepsico-general-mills-jm-smucker-and-the-campbells-company-report-sluggish-sales-in-north-america/644258/
- Major food companies, such as Mondelez International, PepsiCo, and General Mills, are partnering with celebrities to launch new food-and-drink products and limited editions as a strategy to engage younger audiences and boost sales amid sluggish demand.
- Food companies are collaborating with celebrities to justify premium purchases, modernize their brands, and maintain relevance amid consumer budget tightening and a trend toward essential items, as indicated by Jenny Zegler, director of Mintel Food and Drink.
- Celebrity collaborations, like Mondelez International's partnership with Selena Gomez, have proven effective in helping consumers justify pricier purchases, as the collaborations offer a crossover between what consumers already love and the brand.
- These celebrity partnerships are part of a broader entertainment and lifestyle approach by food companies, with these collaborations designed to attract attention and stand out in an increasingly competitive market, as demonstrated by Bad Bunny's Super Bowl ad for Ritz and Walton Goggins's humorous ad campaign for Doritos.
