2024 Challenger Brand Paper: Breaking Through Via Cultural Connectivity

2024 Challenger Brand Paper: Breaking Through Via Cultural Connectivity

2024 Challenger Brand Paper: Breaking Through Via Cultural Connectivity

Introduction

This year’s challenger brand paper highlights the role of cultural connectivity in building breakthrough brands. The U.S.
is becoming increasingly diverse (diversity index +11% over last decade, source), and we consequently see a rise in the importance of cultural sharing & connectivity. Brands able to harness cultural connectivity differentiate themselves and increase their mental availability. Creating cultural connectivity can come to life through democratizing traditional ingredients or recipes, headlining culturally relevant brand origin stories or missions, and engaging with consumers through broader messaging and specific social strategies. Excitingly, this connectivity is reciprocal in nature. As founders and brand builders look to share pieces of their backgrounds, consumers look to widen their world view, incorporate new experiences, and/or find a piece of home by engaging with and learning from brands with strong cultural heritages.

We’ve all seen the challenger brand landscape shift over the past several years: it’s become harder to break through and scale, capital is harder to come by, and exits / acquisition activity is less frequent. Those that have been able to break through often do so via the ability to authentically connect with consumers (and frequently, through cultural connectivity), hence our focus on the phenomenon in this year’s paper.

Cultural connectivity is a relevant driver of value creation across the consumer products landscape. Consumers are swarmed with an abundance of choice, searching for the best products that will permeate their everyday lives. Our paper highlights “breakthrough challenger brands” that have successfully mainstreamed on this thread of cultural connection – creating meaningful consumer share of mind and achieving over $100MM in sales. We also showcase our top emerging challenger brands that are poised for success via growing resonance, stemming from their ability to authentically leverage cultural ties and welcome consumers of all backgrounds.

Food & Beverage
Breakthrough Challengers

Siete

Highlighted by the Seurat challenger paper in 2019, Siete has quickly risen to breakthrough status in just a few short years. Inspired by the founders’ mission to adapt traditional recipes to allow family members on an autoimmune-friendly diet to partake in family meals, Siete strives to reinvent authentic Mexican cuisine with cleaner, healthier ingredients. Their overarching mission has enabled them to successfully expand into a wide swath of categories from tortillas, salsas, and seasoning to cookies. Every aspect of the Siete brand is inspired by the founders’ heritage — from ensuring that every item is approved by their grandmother, to the brand name, which represents the seven members of the Garza family. Since its founding in 2014, Siete has reached $400MM in revenue (2023) (Source).

Momofuku Goods

Momofuku Goods, an offshoot of the famed restaurant group, is bringing its restaurant’s culinary staples– from noodles to sauces– to home chefs. Momofuku’s 20-year heritage in the restaurant industry brings credibility to the line, which has grown a dedicated following worthy of breakthrough status. After research found that 80% of their social media followers didn’t live in cities containing Momofuku restaurants, the team was inspired to create products that gave more fans access to the brand’s recipes. Beyond the restaurant’s reputation for tasty, authentic dishes, the professional kitchen inspired labels on pack bring an elevated level of authenticity to the products, and further bring the restaurant experience home. Clearly, fans from all over are connecting with the brand — Momofuku passed $100MM in annual revenue in 2023, with over 50% derived from its CPG business (Source).

Topo Chico

Topo Chico is a standout example of how to break through in beverage via cultural connectivity. Inspired by the legend of the daughter of Aztec Emperor Moctezuma, the brand has successfully expanded its portfolio beyond the core mineral water to include Sabores, Margaritas, Agua frescas, and hard seltzer with Mexican inspired flavors like guava. Topo Chico leverages the message of ‘follow your thirst for discovery’ to celebrate its ability to draw consumers to new drink types and flavors. Topo Chico as a brand has tremendous badge value, transforming sparkling water from something to be enjoyed to a signifier of exploration and the appreciation for products with a rich history. The brand was acquired by Coca-Cola and surpassed $200MM in sales earlier this decade. (Source)

Emerging Challengers

Bachan’s

You may have noticed Bachan’s unique red squeeze bottle amongst a sea of American-style barbecue sauces. The Japanese barbecue’s unique & delicious flavor is a product of the founders’ painstaking commitment to authenticity. The sauce starts with a recipe that has been passed down for generations and is packaged using a cold-fill technique, which allows the sauce to taste just like the version made fresh in the family kitchen, bringing authentic, tangy flavors from their kitchen to yours. Bachan’s eclipsed $30MM in annual revenue, and recently became the top selling shelf stable barbecue sauce in the natural category (Source).

Yolélé Foods

Yolélé Foods is on a mission to introduce a revolutionary West African ancient grain, Fonio, to the North American market. While Fonio boasts a superior nutritionalprofile to rice or quinoa, it is relatively unknown in America – until now. Yolélé’s convenient preparation and variety of flavors are a delightful invitation for consumers to try the new grain and bring it into their rotation. Ultimately, the brand also hopes to improve economic prosperity for West Africa by increasing demand for Fonio and reinvesting profits back into local communities.

Omsom

With home cooks and food critics alike praising Omsom’s products for their “game changing” sauces, this brand is democratizing access to authentic Asian flavor. Omsom was created by two sisters who were born to Vietnamese immigrants. Their vision was to create products that bring loud & proud Asian flavors to meals any day of the week. Consumers are delighted to be able enjoy the sauces & noodles with ease, and without cultural compromise. The brand leverages social media as a key storytelling mechanism, engaging with their consumers, and speaking on current events. Omsom made its grocery debut in Whole Foods last year. (Source 1, Source 2)

Sanzo

Filipino-American founded Sanzo celebrates its sparkling waters as a way to explore Asian flavors, touting themselves the first Asian-inspired sparkling water made with real fruit and no added sugar. In unique flavors like lychee and calamansi, the brand offers a fresh take on the category. A mission to “bridge cultures by connecting people to authentic flavors” whether these flavors are a “taste of home or a source of discovery” is core to the brand, promoting the idea of wanting to connect over and share culture. (Source)

Bawi

Inspired by the cofounders’ upbringings in Monterrey, Mexico and Austin, TX, Bawi is modernizing the traditional Mexican aqua fresca through a sparkling take that’s nostalgic and new at the same time. Cited as a best new product of 2022 from BevNet, the brand has earned distribution in over 600 stores nationally from Sprouts & Safeway to a myriad of specialty stores. (Source 1, Source 2)

Personal Care / Beauty
Breakthrough Challengers

Briogeo

Built for all hair types and textures, Briogeo is a black-owned haircare brand that has disrupted the industry. As part of the haircare renaissance that hair products aren’t one size fits all, Briogeo helps consumers find the right products for their specific hair needs and goals. Founded on values of love, invention, and inclusivity, Briogeo was created as a means to spread joy and happiness – an ode to CEO + Founder Nancy Twine’s core memories of time spent creating beauty treatments in the kitchen with her mother. The company has succeeded in inviting in a diverse cohort of consumers and generated over $100 million in revenue in 2022. (Source)

Dr. Jart+

Korean skincare brand Dr. Jart+ has broken through the industry by bringing renowned Korean ingredients and skincare practices into the mainstream. Consumers look to K-beauty for skincare done right, and Dr. Jart+ specifically for the proprietary ingredient complexes they’ve developed in the skin-science labs. Consumers have bought into their high-performance derma care earning the brand $500 million in sales in 2019. (Source)

Emerging Challengers

Ceremonia

Ceremonia is a bright spot in hair care, celebrating LatinX heritage through clean hair care solutions made from ingredients popular in Latin American culture. Born from the desire to make hair care more tailored to and accessible to Hispanic consumers – the largest minority in the US – Ceremonia empowers consumers who are rarely centered in this category. In 2022, the company produced $20 million in revenue and became the first Latinx-owned brand fully available in-stores & online at Sephora. (Source 1, Source 2)

Korres

Greek skincare brand Korres harnesses the powerful bounty of Greek biodiversity into personal care products. Driven by the desire to spread the power of rich endemic resources, Korres features ingredients like Greek olive, black pine, and Santorini Grape in their skin & body care products. While larger in Greece with $97 million in sales in 2021, the brand is growing in the US (~$30 million in sales in 2022) as consumers latch onto the magic of ingredients packaged into Korres’ products. (Source)

Eadem

Vegan skincare company Eadem has identified a gap in skincare products designed for darker skin tones. Messaged as skincare “finally made for us,” Eadem puts women of color at the forefront with the goal of bringing skincare solutions to those who have been excluded for far too long, making the industry a more inclusive space. While the company’s revenue is undisclosed, the brand (and especially it’s Milk Marvel Dark Spot Serum) is blowing up online because of its use of science backed and heritage aligned ingredients designed for melanin-rich skin. (Source)

Nopalera

Nopalera is a Chicana-owned clean personal care brand rooted in the cactus – a symbol of Mexican heritage that also has many health benefits. The brand’s star ingredient is the nopal plant, better known as the prickly pear cactus, which is incredibly resilient and thus a representation of Mexican resilience. By bringing this native Mexican powerhouse to the limelight, Nopalera works to spotlight Mexican culture and share it with the world. (Source)

Conclusion
CPG brands leveraging cultural connectivity become part of everyday life, teaching consumers a bit about the world, or making them feel at home.

Our top emerging challenger brands authentically share their cultures as key to their mission and communications, all while encouraging mainstream trial and adoption through accessible entry and education, making their products tailored to their culture, but enjoyable to all. This strategy of cultural sharing creates genuine connections with consumers, allowing those of the same cultures to see more true representation at shelf, and allowing consumers of all backgrounds to learn about, and celebrate new cultures in their everyday lives.

As always, we want to hear from you! If you’d like more information on any of our challenger brand studies, or want to share a brand of your own, please reach out at info@seuratgroup.com.

Winning the Omni-Shelf

Winning the Omni-Shelf

Winning the Omni-Shelf


A significant transition has occurred in omnichannel retail

The “omni-shelf” is now upon us and serves as the lens through which customer planning and commerce marketing occur. While the in-store shelf and digital shelf are quite different, these mediums have become increasingly connected. Winning share of visibility in-store and online with retail partners will separate brands that gain share from those that lose. Manufacturers must master the capabilities that drive visibility in each ‘omni-shelf’ medium and integrate planning across retailers to maximize the return on their investment.

The omni-shelf has broadened the playing field and requires brands to be available and stand out. Though in-store and online dynamics vary, the goal is the same: maximize visibility in an increasingly crowded ecosystem.

Brands need to have a clear understanding of what it takes to stand out amongst these differing environments

The Omni-Shelf Ecosystem

To evolve and integrate customer planning often requires viewing these omni-shelf mediums as one integrated commerce ecosystem and orchestrating each lever together.

As brands navigate this ecosystem, they must evaluate how they are partnering with retailers to best communicate with the shopper, maximize visibility and drive sales velocity.

Shopper:

Shift to online shopping for convenience will only continue, but in-store shopping still represents the lion’s share of spending. Physical shelf assortment and inventory enables online shopping, home delivery and curb-side pickup.

Omni-Shelf Ecosystem

Retailer:

Embraced their digital shelf and .com model to meet their shoppers where and how they want to engage. In parallel, they have created their own retail media networks are highly correlated with advertising investment geared towards lower funnel marketing tactics.

Visibility:

Share of in-store shelf and digital visibility are highly correlated with a brand’s share of sales and growth at that retailer.

Retail Velocity:

The goal of winning the omni-shelf is to drive your brand’s retail velocity. Brands with the strongest retail velocity merit more space, which leads to more brand holding power, item range and presence, creating a flywheel effect.

Omnichannel Planning Best Practices

Each omni-shelf medium is unique and requires brands to master best practices to maximize share of visibility.

Omnichannel Planning Best Practices

In-Store Shelf:

Influencing retail execution and at-shelf visibility is tied to winning the category manager’s share of mind and engagement through the retailer planning cycle. Influence occurs by aligning with the category manager’s goals and using persuasive insight as the ‘currency’ to create a category vision and position the brand in its most compelling frame of reference, fueling category growth and market share gains. This type of category vision and plan arms the category manager to drive the change at shelf within their organizations.

Digital Shelf:

Visibility on retailer websites can be generated organically via retailer algorithms or paid for through sponsored retail media investments. The digital shelf is smaller and more competitive, so understanding and optimizing your share of organic and paid is key to winning in this space. Gaining organic share is a dynamic process that rewards an optimized digital shelf presence and positive consumer experiences. Bolstering organic visibility with paid search or display activations requires continuous intelligence on competitor and category activity along with test and learn measurement.

‘Phygital’ Planning Integration

Countless research has proven the interconnected “phygital” in which touchpoints in-store drive digital sales and vice versa. The impact of each strategy is more effective when integrated. Key to success is aligning strategies and budgets that often exist in different functions into a coordinated planning approach with each retailer. Winning brands have evolved organizational structure, integrating Sales and Marketing functions and aligning retail media budgets across trade, shopper, and national media teams. These changes remove silos and create efficiency through unified customer plans. This establishes planning leverage with retail customers, as investments in retail media can impact in-store execution and facilitate the strategic planning to obtain the customer’s first-party data.

Digital Shelf & Retail Media Master

While traditional brand marketing builds awareness, resonance and consideration (upper funnel), retail media is an effective medium to drive conversion (lower funnel) and sales growth. Brands and agencies can optimize their digital shelf presence, retail media investment and online performance across three interconnected areas:

1. Digital Shelf:

Establish targets for core Product Detail Page metrics on each retailer: availability/assortment, promos, content (images, description, titles), ratings, and reviews. Work to achieve 100% scores against these targets. For new clients to the space, targets can be established by considering scores of their competitive set and using that as a baseline or benchmark.

2. Product Visibility:

Optimize organic and paid visibility of product assortment, generated through search and/or menu navigation. Understand competitive activity in-flight to better optimize retail media activations including sponsored search and display.

3. Sales Performance:

As a rule of thumb, share of visibility within your category should be in line with or greater than market share online. Continuously optimize metric performance and track impacts on visibility and sales performance. Fundamentally, leveraging data intelligence tools for competitive and market insights will help you optimize visibility strategies and effectively allocate retail media investments for improved sales.

Summary
How to maximize visibility in the Omni-Shelf environment
  • Broaden your retailer planning lens to include both the in-store and digital shelves with the goal of maximizing share of visibility.
  • Build omnichannel planning best practices for both in-store influence and online digital shelf visibility.
  • Integrate these capabilities into an interconnected “phygital” planning approach at each retailer to win each omni-shelf touchpoint.
  • Create an Omni-shelf flywheel to enhance brand visibility across mediums and maximize return on overall investment.
  • Measure three interconnected areas: digital shelf, product visibility and sales performance across key retailers to continually optimize investment, and growth.
About the Growth Paper Authors
Winning the Omni-Shelf has been a collaboration between the Seurat Group and Shalion.

Please reach out to us with any questions or comments. We are delighted to be of assistance.

Seurat is a leading insight-based consulting firm that specializes in using layered insights to unlock new ways to delight consumers and drive growth. Seurat’s work gives clients the clarity and conviction to act and invest in a better future for their brands.

Email: info@seuratgroup.com

Shalion is a global retail data analytics firm that empowers clients to boost online sales like never before. Shalion makes growth possible for brands and agencies looking to win the lion’s share of eCommerce through actionable insights.

Email: info@shalion.com

Driving Portfolio Value via Demand Maps

Driving Portfolio Value via Demand Maps

Driving Portfolio Value via Demand Maps

A strong brand portfolio is the engine of value creation

The value of a consumer goods or services company is intrinsically linked to the value of its brand or portfolio. Brand equity is rooted in how meaningful, different, trusted, and salient the brand is perceived to be by consumers. Companies with a strong brand portfolio significantly and consistently outperform the market.

A recent McKinsey study confirms this phenomenon: the world’s 40 strongest brands returned 96% more to shareholders than investment in a global market index.

Powerful brands significantly outperform the market.

Total return to shareholders, Index

While it’s clear brand value drives economic value, building a valuable brand is easier said than done, and the market is cluttered with failed or under-performing brands. In our collective experience working with hundreds of brands, we’ve found the number one determinant of success is firmly placing the consumer at the center of all brand strategy decisions. To build a strong portfolio companies must follow a structured approach that details consumer demand drivers, the role of their brands in consumers’ lives and potential for change moving forward.

Demand Maps
A critical tool for manufacturers to position individual brands and their portfolio is a demand map that captures consumer insight on key drivers of choice.

Definition:
Demand maps provide a quantified, holistic understanding of how consumers make choices. They capture who, why and how consumers engage with brands, and predict how consumption will evolve over time.

How your brands could benefit:
Demand maps drive portfolio strategy on where to play, how to action and how to win in addition to informing forward-looking innovation and acquisition decisions.

How they’re developed:
Demand maps blend primary consumer research with category-wide market data to create a multi-dimensional understanding of the space and surfaces which benefits, attributes and brand levers create the greatest sales impact (and the highest growth potential).

How to use a Demand Map
It’s important to keep in mind that demand maps vary by category given consumer drivers are often very different.

At a high-level, demand maps can be defined by occasions (the when, where, and with whom), the needs / motivations that those occasions necessitate (the why), along with the consumer cohort most likely to make a choice (the who).

Demand maps enable a brand portfolio to maximize value creation opportunities. This in turn facilitates strategic alignment across your organization.

Below are our Portfolio Management Principles to leverage your Demand Map effectively:

Prioritize brand lanes based on attractiveness (e.g. profit potential), brand right to win (e.g. brand’s ability to deliver on key needs), marketplace coverage (e.g. available consumption), and execution potential (e.g. brands ability to commercialize).

Evaluate the ability for brands within the portfolio to extend across the demand map. Considerations include:

  • Covering more spaces drives penetration but risks lower salience / relevance (Brand A)
  • Anchoring in one space drives loyalty & distinctiveness at the risk of reduced scale (Brand B)
  • Creating clear demand lanes for each brand

Cover demand spaces where company brands can’t stretch and competitors lack a right to play / win through innovation, acquisition or licensing strategies

How Demand Maps come to life
A legacy brand in the portable protein space came to Seurat after a new player entered the category that was able to tap into an entirely new consumer segment (Gen Z and Millennial women).

Seurat created a demand map to understand the category and unlock pockets of growth for our client to regain share. Our research unearthed that consumer needs for protein are largely driven by a combination of occasion and need. The category exists along two key occasion-based dimensions: snack vs. meal part and solo vs. social consumption. We then pulled apart dimensions further to uncover four distinct drivers (flavor, health, convenience and value) that mapped across 8 unique demand spaces.
After identifying key demand spaces within the category, brands can strategically position to capture new spaces.

Our work quickly revealed a sizable, underserved demand space: mom-approved snacks. By maintaining adherence to a handful of core portfolio management principles, our client was able to regain share by utilizing the demand map’s forward-looking insight to optimize their portfolio.

Ultimately, the demand space insights informed activation platforms, providing the client with a roadmap for how to win with both existing brands as well as identify high-returning innovation opportunities.

What Next
Are you looking to optimize your portfolio strategy?

Are you looking to solidify positioning for key brands? Could your organization benefit from demand map insights? We welcome conversation at info@seuratgroup.com

Unlocking the Challenger Within

Unlocking the Challenger Within

Unlocking the Challenger Within

Challenger brands disrupt categories by better delighting target consumers in ways category incumbents can’t. That’s why challengers frequently account for the lion’s share of innovation and growth in their respective categories. But while the challenger moniker is usually reserved for the “little guys,” at Seurat, we believe ANY company can behave like a challenger.

Tillamook County Creamery Association (TCCA), a 114-year-old dairy co-op in Tillamook County, Oregon, has fostered its own challenger mentality and unlocked a way to make its premium, accessible cultured dairy products a must choice among their food-engaged consumer community. As a result, the company has become one of the fastest growing, billion-dollar brands in the consumer products industry — and best kept secrets. We spoke with Patrick Criteser, president & CEO of TCCA, about what it means to be a challenger in the highly competitive dairy industry and how he has infused a challenger mindset into the co-op he affectionately refers to as a “100-year-old startup.”

Over the course of our interview, it became clear that Patrick had a firm grip on four key principles to Unlock The Challenger Within

Principle #1: Instill the Challenger Mindset
Acting like a challenger means refusing to accept existing constraints.

We have done a great job at adopting a ‘can if’ approach. So often we run into challenges with many barriers in our way—whether that be cost barriers, supply chain barriers or resource barriers. And I don’t want the teams to say it’s not possible, because we know almost nothing is truly impossible. I challenge teams to move beyond ‘yes’ or ‘no’ and instead have the mindset of: We can accomplish this if we take this approach or if this is able to happen. This forces us to examine the risks and at least have the conversations about what’s possible. Embedding this “can if” mindset into our culture has been immensely helpful. It also connects to our general mentality as a ‘100-year-old startup’ and encourages teams to be nimble and scrappy even as we experience tremendous growth.

Principle #2: Commit to being Consumer-First
Everything Tillamook does starts with the core consumer.

What has been so powerful for us has been our ability to be very clear on where we fit in the category and understanding our core consumer. First, we defined our consumer, the ‘Food-thusiast,’ who is someone interested in the quality of the food, the quality of the ingredients and is just generally more engaged as they purchase and use groceries. We knew this consumer definition wouldn’t fit everyone but were confident enough to build from that point. Then, we consistently positioned all our offerings as everyday premium, meaning we provide top-quality dairy products that are accessible and affordable enough for daily enjoyment. The commitment to this consumer and positioning showed us the way to create an accessible dairy brand that our fans shop for every time they visit the grocery store.

Principle #3: Challenge Category Convention
Going against the grain can be risky. Patrick details how TCCA deliberately challenged conventional dairy marketing to break through.

Challenging convention was an important strategy for us as we looked to reset our brand and the products we marketed. In dairy categories, it would be very common for consumers to see brands market dairy products with images of cows on fields and daisies and all this traditional stuff. We wanted to reset expectations and challenge the conventions of dairy. So, we launched our “Dairy Done Right” campaign in 2014 which had black backgrounds, chainsaws cutting ice cream cartons, and pitchforks coming through cheese. We wanted to be loud enough to grab attention and act in a way that was unexpected for the dairy industry. We aimed to make dairy more culturally relevant, exciting, and interesting. Building off that experience, we continue to ask the question today: Within our brand building, our marketing, our consumer communications, how do we signal there is something different here that is challenging the category?

Principle #4: Infuse Challengers in Corporate Culture
The most successful organizations strengthen their culture with a constant willingness to continue to grow and learn. Patrick embraces this mentality, from the execution of the company today, to the people they look to hire tomorrow.

One thing we do is host a ‘Challenger Series’ where I interview folks that I believe are currently challenging convention in their respective fields. We tend to feature generally smaller companies, because that’s where you find that challenger mindset and that entrepreneurial orientation. I interview these people in front of the company and we draw out inspiration that we can leverage internally. So, in that way I try to constantly perpetuate the idea that the inspiration for challenging convention in our space can come from unexpected areas. We have interviewed deputy police chiefs on the concept of community service or different leaders in education on how their space is continuing to transform and you would be shocked just how helpful some of those conversations have been.

This theme of expanding our horizons also applies to our hiring practices. Our values are the ultimate cue for hiring. We also think of ‘culture add’ rather than just ‘culture fit.’ We’re not just looking for someone to show up and fit right in and be like everyone else. We want to bring people in who possess a unique set of experiences, background and diversity of thinking that injects life into our organization. It’s all about creating an environment where everyone feels a sense of belonging and is encouraged to contribute authentically and to their fullest potential. I actually gravitate towards hiring individuals with less conventional track records but a proven record of success in their organization that I think we could leverage as they uniquely contribute with their own voice rather than just conform.

Summary

Unlocking your own challenger within involves four deliberate strategic choices:

  • Instill the Challenger Mindset
  • Commit to being Consumer-First
  • Challenge Category Convention
  • Infuse Challengers in Corporate Culture

Patrick’s application of these principles has enabled the co-op’s tremendous success and ensures it is positioned to continue challenging for many years to come.

Are you looking to adopt a Challenger Mentality within your organization? We welcome conversation at info@seuratgroup.com
2023 Challenger  Brand Paper: Evolving the Consumer Value Equation

2023 Challenger Brand Paper: Evolving the Consumer Value Equation

2023 Challenger Brand Paper: Evolving the Consumer Value Equation

This year’s study celebrates the challenger brands that have successfully navigated the recent disruptive economic, political, and environmental changes by redefining the consumer value equation. With rising inflation rates, fierce national political battles, and (continued) climate turmoil, our Top 10 challenger brands are delivering on the priority needs that a growing segment of consumers no longer choose to live without in categories – climate commitment, conscientiousness and cost. We call these the ‘3 Cs’ of the evolved consumer value equation, enabling our challengers to differentiate themselves, increase their relevancy and quickly build trust.

More than ever, the consumer value equation needs to be at the forefront of brand and strategy planning, particularly for those less entrenched movers looking to make inroads. This year’s Top 10 challenger brands highlight new ways to deliver against the ‘3 Cs’.

Climate Commitment:
Consumers are increasingly emphatic about incorporating sustainability & environmental consciousness into their lives. Eco-consciousness is cementing itself as a key part of the value equation, and challengers are making huge strides to appeal to a more scalable, mainstream audience. Challengers who deliver against priority category dimensions, while also providing a more climate friendly solution and anchoring sustainability as key to their reason for being, can win in this environment.

1. Viv

Look to Viv for earth-friendly and toxin-free period care. Their packaging is 100% recyclable, pads & liners are fully biodegradable in 150 days, and their organic cotton tampons are made with plant-based applicators, cutting out harmful chemicals and uncomfortable plastic. Not only is Viv dedicated to helping menstruators everywhere have a zero-waste period, but they are also committed to smashing period stigma, as promoted through the Voices by Viv podcast. While subscribe & save makes it easy to have period care delivered when you need it, you can now also find this brand in-store at CVS!

2. AWSM

New entrant to the sauce market, AWSM, is helping consumers to Avoid Waste + Season Meaningfully. The powder form of their sauces allows for extended shelf life, eradicating the #1 reason for condiment waste (they’re not used in time!) By cutting out water weight, the company also reduces their environmental shipping impact (i.e., less fuel), furthering the brand’s mission to help the world #sauceresponsibly.

3. Akua

Akua is making ‘kelp-based’ the new ‘plant-based’ with their range of kelp-based meat alternatives. As animal agriculture is the 2nd largest contributor to greenhouse gas emissions in the world, Akua is focused on creating a tasty way to replace factory farming with regenerative ocean farming. Their farming practices significantly reduce CO2 emissions and help us be kinder to the planet – one kelp burger at a time! Impressively, they’ve raised $5.4M to date and show no sign of stopping.

4. Atomo

Founded in 2019, newcomer to the caffeine scene Atomo is paving the way for a more sustainable coffee kick – without the beans! The star ingredient is upcycled date seeds and their brewing method uses 94% less water and expends 93% less carbon emissions than conventional cold brew. As climate change continues to threaten traditional coffee production, Atomo points to the future of coffee, supporting the ever-increasing demand for your daily brew. Recently named to TIME’s list of the best inventions of 2022, this brand is certainly one to watch.

Conscientiousness:
Younger consumers increasingly prioritize supporting mission-driven brands – with around 3 in 4 of Gen Z and Millennials actively seeking out brands that support the causes they believe in. Given next gen’s increasing share of wallet, it’s more important than ever for challengers to authentically tie themselves to a clear sense of purpose, rooted in social good. Mission-driven challenger brands who can creatively, authentically, and substantially deliver on their promises and create unique pathways for consumers to give back see outsized returns.

5. Conscious Step

With each pair of socks devoted to a different cause, Conscious Step partners with a variety of non-profits (e.g., environmental, animal rights, human needs, etc), delighting consumers with the ability to choose which cause they want to support with their purchase. Consious Step provides transparency into the tangible impact they’ve had; this includes a continually updated monetary tracker that stands at over $800k today, a list of their partner organizations and communities they serve, and a breakdown of the cash flow.

6. Ajiri

Women-owned and operated tea & coffee brand Ajiri takes a multidimensional approach to living out its name which means “to employ” in Swahili. Tea and coffee are sourced / grown in Kenya, and local women create the unique banana bark labels. All profits go to the Ajiri Foundation funding childhood education for orphans in Western Kenya, allowing Ajiri to use education to empower and uplift the communities it serves. This brand earned its spot on shelf at Whole Foods, allowing consumers to support this important mission while drinking flavorful warm beverages.

7. Chum Fruit Bites

Chum Fruit Bites offers a snack you can feel good about giving kids for two reasons: their nutrition panel and commitment to the protection of different endangered species. These natural fruit snacks instill the importance of environmental protection in children through their visually engaging animal graphics and their donation of 15% of profits to WILDAID.org – an NGO that works to end the multi-billion-dollar illegal global wildlife trade industry. Founded in Ireland in 2017, the brand has recently expanded to the US through Amazon and their DTC site.

Cost:
It goes without saying that in this inflationary environment consumers are increasingly cost conscious. Budget is top of mind, and it’s critical for brands to get creative with how to deliver (& communicate) value most effectively. Challengers most able to help consumers manage their budget while maintaining creative, elevated offerings are rewarded.

8. The Inkey List

The Inkey List is on a mission to empower consumers with the knowledge they need to navigate their skincare journey. They know skincare can be confusing, so they prioritize accessible price points that allow consumers to test and learn, ultimately building their perfect skincare routine! Inkey reduces costs through less expensive, sustainable packaging and by sourcing ingredients themselves, limiting manufacturing costs, to deliver high quality products all under $15. Since their launch in 2018 they’ve gleaned high praise from leaders in beauty (e.g., Allure) and earned prominent positioning everywhere from TikTok to the shelves of Sephora, reshaping skincare one award-winning serum at a time!

9. Dialogue

Dialogue is an Israeli-based, revolutionary ecommerce platform that uses AI-powered messaging to create individualized shopping experiences – all while helping brands manage site maintenance costs. Personalization is on-trend across the consumer goods landscape, and Dialogue helps ecommerce interactions match the level of personalization of an in-store shopping experience for companies of all sizes – from Sabon to L’Occitane. Dialogue has helped businesses lift conversion rates, session time, and ARPU more easily, all while reducing the brands’ bottom lines and enhancing the shopping experience for consumers.

10. EveryPlate

“America’s best value meal kit,” EveryPlate, helps consumers save time and money on their weekly grocery haul. With EveryPlate, you get a delicious meal for only $4.99 per serving – around 44% less than key competitors– and about 30 minutes of your time. This challenger sits within Hello Fresh, exemplifying how bigger companies can target a wider consumer base by offering accessible versions of their popular services. Reduced packaging and a more streamlined menu keep prices down, allowing consumers of all income levels to be an EveryPlate’r and home chef.

Conclusion
Climate commitment, conscientiousness, and cost are becoming integral to the consumer value equation. Consumers are more keyed into costs and want to put their dollars to work with brands that deliver against causes they care about, including protecting the planet. Think critically about how to reflect the importance of the 3Cs within your consumer value equation, whether through innovation, brand strategy and/or portfolio strategy.
As always, we want to hear from you! If you’d like more information on any of our challenger brand studies, or want to share a brand of your own, please reach out at info@seuratgroup.com.