Big Food’s Brand Strategy Problem 2.0

Back in the fall of 2018, we published what remains one of our most popular articles to date – Big Food’s Brand Strategy Problem. The article came out in a time before the COVID-19 pandemic, before tariffs between the United States and Canada, before weight-loss drugs were reducing consumer cravings, and before front-of-pack nutrition label laws were being widely discussed (and implemented).

Now, with more options for shoppers than ever before and an always-increasing desire for quality and affordability, our 2018 article’s main thesis rings true: “big food brands must embrace change to remain relevant.” However, as the Wall Street Journal recently pointed out, “startups are eating big food’s lunch” by capturing much of the growth in the packaged foods category.

So, what can legacy brands do to stay relevant and drive growth? Let’s take a look at Big Food’s 2026 brand strategy problem and some steps to ensure your brand doesn’t get left behind.

Playing Catch-Up

Though start-ups and disruptor brands may not have the resources that the Big Food brands benefit from, they do have the nimbleness to ensure their products and messaging are relevant to today’s consumer.

Image Source: FoodNavigator USA

Take the better-for-you soft drink category as an example. Brands like Olipop have positioned themselves as “a new kind of soda” focused on digestive health instead of sugary fizziness. Olipop is now valued at $1.85 billion, and it was only a matter of time before traditional soda manufacturers hopped on the prebiotic, better-for-you craze.

PepsiCo has taken two approaches to competing with challenger brands that are eating away at market share. First, they made the strategic acquisition of Poppi (a method that many Big Food brands are using to diversify their portfolios), and then they launched their own BFY soda – Pepsi Prebiotic Cola. In the press release announcing the new product, Ram Krishnan, CEO, PepsiCo Beverages U.S, acknowledged the need to evolve, stating that the innovation is “designed to meet changing consumer preferences for more functional ingredients in their cola experience.”

While PepsiCo hopes that they can translate the affinity that consumers have with their brand to a successful launch of their new BFY products, others have stated that the innovation feels “more like a defensive ‘me-too’-type product,” which will struggle to attract discerning shoppers. Time will tell whether Pepsi Prebiotic Cola is successful or not, but there is no denying that Pepsi is playing catch-up and will have to win over consumers looking for BFY soda options.

Lacking Emotional and Functional Resonance

Image Source: Perfumer & Flavorist

The perceived absence of authenticity that could plague Pepsi Prebiotic Cola is a real one that many Big Food brands have to wrestle with. Winning the emotional battle against startups with compelling stories and online buzz has always been a challenge, but now Big Food is struggling with the functional elements of a consumer’s purchase decision as well.

Online shopping and direct-to-consumer options mean that smaller brands are conveniently available to more consumers without needing major retailer buy-in. Adding to that, the lack of overhead costs means that many start-ups are able to sell their products at lower prices than Big Food brands, thus attracting price-conscious shoppers. This is something that Hellmann’s is experiencing firsthand.

It may seem like Big Food Brands are being attacked from all angles, but with every challenge comes an opportunity, and for the brand leaders looking to re-establish their position in the marketplace, there is hope.

Steps to Staying Relevant

Assess Your Brand Foundation – Having a strong, relevant brand foundation is key to any successful brand refresh or marketing initiative. While your brand’s mission and values may not have changed over time, your audience’s wants, needs and pain points most likely have. In assessing the foundational elements of your brand and rearticulating your reason for being, you will be able to find what has remained relevant and where some tweaks need to be made.

Lean into Brand Equity – There is a sense of familiarity and nostalgia that legacy brands can tap into, especially when it comes to packaging design. Our consumer insights partner, IMI International, points out that over 50% of North Americans are influenced by packaging, and it has been shown time and again that consumers have higher purchase intention with familiar brands. Amplifying the elements of your brand that are distinct and recognizable on pack will not only catch consumers’ eyes but also convey a sense of trust.

Innovate or Get Left Behind – As Brand Stewards for our clients, we believe that a brand’s visual identity and packaging design should be recognizable, relevant and designed for a current and future state. Following the latest trend can be tempting, but it must also feel true to what has made you successful in the past. Lays’ recently announced rebrand is a good example of this, as they have stayed iconic and identifiable while amplifying their product origins and quality ingredients to speak to today’s consumer.

Are you ready to modernize your brand and become a category leader once again? Get in touch today!