Tag: consumer behavior

Before the Show: What We’re Watching Heading into IDDBA 2026

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Walking the show floor with intent matters more than ever. The perimeter is no longer a supporting cast to center-store CPG; it is where most of the category innovation, premiumization, and brand storytelling is happening. Retail prepared foods now replace restaurant occasions for 28% of shoppers, more than double the rate of 2017, and U.S. grocery foodservice has crossed $52 billion in annual sales. So, before we get to Orlando (June 7–9), here is how we’re framing what we expect to see, and what brands in these categories should be doing about it right now. 

Three forces are reshaping all three categories

  1. “Value” no longer means cheap. It means earned. Consumers have spent two-plus years tightening grocery budgets, yet they continue to trade-up into premium dairy, prepared deli, and artisanal bakery. The reconciliation is simple: shoppers are spending more intentionally, not less. They want products that deliver functional benefits, sensory rewards, and a story that aligns with their values. The implication for branding is clear: generic premium cues no longer earn the trade-up; specificity does.
  2. Protein is the floor. Fiber is the ceiling. McKinsey reports that 70% of U.S. consumers plan to increase their protein intake in 2026, and dairy is the most preferred source. But the next wave is already cresting: fiber, gut health, and GLP-1-friendly nutrient density. Cottage cheese has grown at a 6.2% CAGR over the last five years. Sourdough product launches are up 31% globally, with another 33% growth forecast for 2026. The on-pack hierarchy is being rewritten, with protein grams, fiber grams, and ingredient transparency increasingly becoming the first things eyes find on the front panel. 
  3. Indulgence has been redefined as permission. The cultural rebellion against austerity is real. Consumers want comfort, ritual, and a little luxury, but they want it justified. Mini formats, “everyday charcuterie,” portion-controlled mochi, single-serve specialty cheese, and one-bite cakes. The winning brands are not asking shoppers to choose between health and happiness; they are giving them both, in a smaller, smarter package. 

What we’re watching

In the deli case:

  • Clean-label proteins move up-market. Shoppers no longer accept “deli meat” as automatically processed. Short ingredient panels, no fillers, and transparent sourcing are commanding premium pricing but only when the packaging signals that promise instantly. 
  • “Everyday charcuterie” graduates from trend to staple. Pre-built boards, snacking kits, and grab-and-go entertaining are pulling occasions out of restaurants and into living rooms. The brand opportunity: packaging that performs both as a grocery shelf unit and a tabletop centerpiece. 
  • Bold flavors, value pricing. Limited-time flavor drops, global-but-approachable profiles (Mediterranean, Korean, smoky-zesty mashups), and a permissive attitude toward novelty, without restaurant-level price tags. 

In the dairy aisle:

  • GLP-1-friendly positioning, done quietly. Smart brands are not calling it out on-pack. They are reformulating for higher protein, lower sugar, and added fiber, and letting the nutritional panel do the talking. Heavy-handed “Ozempic-friendly” claims should be skipped in favor of positive food claims.  
  • Affordable luxury cues in the dairy case. Gold accents, glass and glass-look containers, restrained typography, matte finishes, tactile sleeves. The yogurt set is starting to read like the beauty aisle. 
  • Functional and regenerative as overlapping plays. Probiotic kefirs, A2 milk, grass-fed butter, regenerative-ag stories. Certifications and provenance are increasingly front-of-pack equity. 

In the bakery:

  • The moody palette shift. After years of pastels, the bakery is moving toward charcoal, deep purples, espresso browns, and burnt orange: colors that signal depth of flavor and grown-up indulgence. 
  • Paper is king. Sustainable bakery packaging is consolidating around FSC-certified kraft, glassine windows, water-based barrier coatings, and minimalist single-color printing. The “less ink, more story” school of design is winning the shelf. 

What we’ll be looking for in Orlando

  • Structural innovation in single-serve and snacking formats particularly in dairy and prepared deli. Who is solving for portability without sacrificing premium feel? 
  • Cross-category convergence. Sourdough crackers in deli charcuterie programs. Cottage cheese in bakery. High-protein desserts. The lines between the three categories are blurring fast.
  • Sustainability stories that show their work. We’re watching for brands that quantify, certify, and visualize their commitments on-pack. 

We will be back after the show with a debrief on what surprised us, who broke through, and the trends worth bringing back to the studio. Until then, if you want a sounding board on how trends translate to your brand’s strategy and packaging, our team would love to connect with you. 

What We Saw at Naturally New York’s Spring Fling: Better-For-You Brands Are Entering Their Dopamine Era

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There’s a certain energy that happens when emerging CPG founders, marketers, creatives, and operators all gather in the same room. At the Naturally New York Spring Fling, that energy felt especially clear: the better-for-you space is growing up, and its branding is getting bolder. 

The event itself was refreshingly informal. A bright, upbeat room full of founders sharing products, stories, and ideas. And while every brand had a different point of view, one visual trend kept popping up: Dopamine Packaging. 

This mood-first branding is bringing joy to shelves (and directly to consumers). “Dopamine Packaging” seems to be one of the defining visual languages of emerging food and beverage brands. 

Bright colors. Optimistic typography. High-energy palettes. Packaging designed not just to inform, but to spark emotion instantly. In a crowded category where consumers make split-second decisions, these brands understand something important: people don’t just buy products anymore. They buy brands that they connect with. 

In the better-for-you space specifically, we’re seeing a move away from the sterile, overly clinical wellness aesthetic to brands embracing indulgence, personality, humor, nostalgia, and visual stimulation. A few brands that were showcased really embodied that shift. 

CALTEIN

The protein category has historically leaned heavily into performance-first branding: dark colors, aggressive typography, hyper-masculine visual systems. CALTEIN flips that entirely. 

Their butter cookie pouches feel nostalgic, playful, and genuinely appetizing, while still communicating functional benefits like high protein and simple ingredients. The warm color palette and retro-inspired typography create a softer, more emotionally driven entry point into the category. This aligns with a broader shift we’re seeing across wellness brands: consumers increasingly want products that feel joyful, not restrictive. 

Date Smarter

Date Smarter’s packaging leans into vibrant color, kinda-retro inspired illustration, playful callouts, and personality-driven messaging, all while introducing consumers to a healthier snack built around dates. Packaging like this instantly reframes the experience as fun, craveable, and accessible.

GUINEP

GUINEP took a slightly different approach but still tapped into the same emotional territory through color blocking and bold visual contrast. Their cans feel modern, energetic, and culturally expressive without becoming visually overwhelming. 

The best emerging brands today understand that packaging no longer lives only in-store, it lives in TikToks, Instagram Stories, unboxings, and founder content. 

Other Brands We’re Watching

The Bigger Takeaway

All these emerging brands recognize that branding is the product experience. 

Packaging has become: a growth tool, a trial driver, a social asset, a positioning strategy, and a way to communicate emotion instantly. And especially in the better-for-you space, brands are finally realizing that wellness doesn’t have to look clinical to feel credible. 

Wrapped in Possibility: Our Experience at LUXE PACK New York

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At Smith Design, staying at the forefront of packaging innovation is central to the work we do. Attending LUXE PACK New York provided us with the opportunity to stay at the forefront of luxury packaging.

The Show That Sets the Standard

LUXE PACK New York is the East Coast’s premier B2B trade show dedicated entirely to luxury packaging. Held at the Jacob K. Javits Convention Center over two days, it’s the only event of its kind in the U.S. with over a 20-year legacy. The 2026 edition brought together more than 230 exhibitors from 22 countries, with over 5,200 attendees. 

The show connects luxury brands with the suppliers, material specialists, and manufacturers behind high-performing packaging across beauty, fragrance, spirits, wellness, fashion, and fine food. Beyond the exhibit floor, a robust conference program featured panelists from L’Oréal, Shiseido, Estée Lauder, and Unilever, tackling topics from AI-driven design to circular materials and consumer engagement. 

LUXE PACK also hosts the Dieline Awards: one of the most prestigious honors in global packaging design. Attending the ceremony and seeing the winning work showcased on the event floor was a highlight. It reinforced something we believe deeply: great packaging design isn’t decoration; it’s a discipline and a genuine competitive advantage for brands. 

Design, Detail, and Differentiation

Walking into LUXE PACK, we were immediately met by the level of craft and intentionality on display. Booth setups were immersive and design-forward; exhibitors put as much thought into how they presented themselves as the products they manufacture. From embellishment innovations like double hot-stamping to mono-material paper boxes with structural pop-up details, the show floor was an incredible view of where premium packaging manufacturing is headed. 

Sustainability and Other Hot Topics

LUXE PACK New York 2026 featured a wide range of expert-led panel discussions. Sustainability and circular materials emerged as recurring themes across nearly every session. Three sustainable topics stood out: 

  1. Mono-material packaging uses a single material across an entire component (think an all-aluminum mascara tube), allowing it to be recycled without disassembly. Driven in part by increasing global regulatory pressure, mono-material design is becoming a core strategy for circular packaging. 
  2. Grastic is a high-gloss, plastic-free material developed by NABLE as a sustainable alternative for prestige packaging. Designed to replicate the tactile feel and visual appeal of traditional plastic, it is fully biodegradable and compostable. 
  3. Refillable packaging systems continue to gain momentum across beauty, fragrance, and spirits categories. Designed for repeated use, these systems pair durable outer packaging with replaceable inner cartridges or refills, helping brands reduce material consumption and packaging waste while reinforcing long-term customer loyalty and premium positioning. 

Top Left: Nable Grastic Packaging Solutions, Bottom Left: Quadpack Woodacity Collection, Right: Fasten Packaging “Goodloop” 

Fragrance Takes Center Stage

The immersive “Per(fume)-form” installation was a show highlight, driving home the idea that fragrance packaging isn’t just a vessel; it’s part of the experience itself. Materials that protect the formula while offering a tactile, premium unboxing moment are central to how fragrance brands differentiate at the point of sale and beyond. 

Personalized fragrance and packaging experiences emerged as a growing area of innovation, with several discussions exploring how AI and consumer data are shaping the future of luxury product design. A standout keynote from Alex Wiltschko, CEO of Osmo, focused on “olfactory intelligence,” using AI to translate human behavior, emotion, and preference data into customized fragrance and packaging insights. The conversation highlighted how brands are beginning to explore more individualized, data-driven consumer experiences across both scent creation and packaging design. 

The Bigger Picture

The conversations at LUXE PACK reinforced a broader shift: the luxury packaging industry is rethinking what packaging is fundamentally  for. Sustainability is no longer a nice-to-have; it’s the baseline expectation, driven by both consumer values and tightening regulations. And as materials become more sophisticated, the relationship between design and manufacturing is getting closer. The best packaging work happens when creative vision and production reality are aligned from day one, and that’s something we’re deeply attuned to at Smith Design.  As an Ecovadis-certified agency, we bring that same commitment to sustainability, actively guiding our clients toward materials, processes, and structures that reduce environmental impact without compromising on the packaging experience they expect. 

Turning Memory into Meaning: The Story of “Purple” as a Brand Moment

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Some of the most powerful brand moments don’t start with something new; they start with a memory. SunnyD identified an innovation opportunity by tapping into a reference that had already been part of culture for decades and launched its long-anticipated “Purple” flavor. 

The reference dates back to a well-known 1990s commercial where a refrigerator full of drink options included the now-famous line, “purple stuff.” While the moment was brief, it stuck in viewers’ minds and quickly became part of the brand’s cultural footprint. 

By bringing “purple stuff” to life through SunnyD’s latest launch of their Vodka Seltzer RTD beverage named Purple, the result wasn’t just a new product launch, but a moment of recognition for audiences who grew up with the reference.

Commercial circa. 1991 | Key Visual, SunnyD Vodka Seltzer Purple

Reframing Nostalgia for Cultural Impact

Nostalgia remains one of the most effective tools in marketing because it resonates with people, creates immediate familiarity, and piques their interest. When people recognize something from their past, there’s no need to introduce it or explain it – the connection is already there.

This approach has become increasingly common as brands revisit recognizable elements from the 1990s, from the return of Dunkaroos, which came back after years of fan demand, to the revival of Floyd D. Duck across Bubble Yum’s social channels. By reintroducing familiar products and characters, these brands tap into shared cultural memory while also introducing those references to younger audiences encountering them for the first time.

The difference often comes down to how that nostalgia is applied. Forced nostalgia often tries to recreate moments too literally, relying on imitation rather than meaning. Authentic callbacks work differently; they take something that already exists in culture and give it new context, allowing audiences to complete the story themselves.

That’s what made this moment for SunnyD Vodka Seltzer work. The reference to “purple stuff” was already recognizable and understood, rooted in a 1990s cultural moment. It carried a kind of multi-generational awareness, resonating with those who grew up with it, while sparking interest through new eyes experiencing it for the first time. It also created a built-in curiosity. “What does purple taste like?” became part of the appeal, turning a long-standing joke into a real question people finally had the chance to answer.

Building Cross-Channel Campaigns from Cultural Relevance

Because the idea was rooted in a cultural reference that already carried meaning, the real challenge became ensuring the campaign could live consistently across every place consumers might encounter it. In today’s digital landscape, the strength of a campaign concept depends on how seamlessly it can translate without losing its recognizability. That is where we came in.

The Smith Design team helped the campaign come to life across a full ecosystem of touchpoints. We developed digital assets that carried the core “purple” idea into e-commerce, the brand website, Instacart, paid digital advertising, Spotify audio, trade advertising, and on in-store POS materials. In just three days, the campaign generated 117 million impressions, including 4.2 million from Walmart and Instacart display and 135.6K from Spotify ads, two key areas where we created digital assets for the campaign.

The goal wasn’t to reinvent the idea at every step, but to maintain consistency, so whether someone encountered it on their phone, in a store, or while streaming music, it felt like part of the same story.

Where Memory Becomes Experience

At its core, the SunnyD Vodka Seltzer Purple campaign launch shows how powerful it can be when brands don’t try to invent meaning but instead build from something that already exists in culture. Purple wasn’t created in the moment; it was something people already knew.

By turning that shared reference into a real product and a full campaign, the idea moved from memory to experience. And for audiences, that shift is what made it stick, not just seeing it again, but finally getting to experience it.

Expanding Palates: The Continued Rise of Globally Inspired Flavor Exploration

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As Millennials and Gen Z continue expanding their palates, global flavors have become integral to their culinary experiences. Both generations grew up surrounded by diverse global cuisine, and for Gen Z, global food is more than just about taste; it’s an immersive experience that combines authenticity, culture, and emotional connection. This shift towards adventurous eating reflects a desire for more sophisticated palates as a way to enhance their culinary explorations. As retailers and brands respond to this growing interest, the availability of unique and complex flavors is expanding across various food and beverage categories. From snacks to drinks, options are becoming increasingly diverse, catering to audiences eager for new taste sensations.

Traditional brands that have historically relied on American flavor profiles are now expanding their horizons by embracing globally-inspired varieties. This shift allows them to connect with the adventurous tastes of Millennials and Gen Z while staying aligned with ever-evolving culinary trends.

Where Flavor Innovation Meets Authentic Design

But flavor innovation alone isn’t enough. As shelves become more crowded with globally inspired offerings, package design plays a critical role in signaling authenticity, communicating flavor cues, and inviting consumers to explore something new. Color palettes, typography, patterns, and imagery all work together to evoke cultural inspiration while maintaining a brand’s own visual equity. When done thoughtfully, packaging becomes a gateway, helping consumers quickly understand unfamiliar flavors and feel confident trying them.

SPAM has long held a meaningful place in Asian American food culture, where it’s been embraced across generations in dishes like musubi, fried rice, and other comfort-driven fusion meals. Recent limited-time offerings continue to build on that cultural connection, blending familiar pantry staples with globally inspired flavors to celebrate community and culinary creativity. A recent collaboration between the SPAM brand and Bachan’s Japanese Barbecue Sauce brings this idea to life, combining two pantry staples rooted in Asian American food culture into a single, umami-rich experience inspired by a pairing fans have been creating at home for years.

The SPAM Japanese Barbecue Sauce flavored variety, made with Bachan’s Original Japanese Barbecue Sauce, delivers a savory balance of sweet, garlicky, and soy-forward notes while celebrating Japanese American culinary traditions. Smith Design partnered with the SPAM team to help shape the packaging for this collaboration, translating the bold flavor fusion into a package design system that feels culturally informed, modern, and shelf-ready.

The launch of SPAM Gochujang, inspired by the popular Korean condiment, is another example of this trend. This limited-edition variety combines spicy, sweet, smoky, and umami elements, making it a great addition to any occasion. Smith Design also had the pleasure of collaborating with SPAM to shape the visual aesthetic of this product, ensuring it resonates with Korean heritage and aligns with the essence of gochujang sauces found in adjacent categories. This focus on design not only elevates the product’s appeal but also creates a deeper connection with consumers seeking immersive culinary experiences.

Beyond globally inspired heat and fusion, brands are also finding growth in traditional Hispanic flavors rooted in nostalgia, cultural pride, and the comfort of home. Consumers are gravitating toward offerings that feel authentic and emotionally resonant, creating a compelling opportunity for brands to expand into heritage-driven spaces with credibility and warmth. This insight guided our recent partnership with Pillsbury Baking and Hometown Foods to launch a new line of Hispanic Recipe baking mixes.

Following an in-depth cultural and visual audit and market analysis, we helped translate deeply familiar flavors into a modern retail experience that feels both genuine and accessible. The resulting packaging for Mexican Wedding Cookies, Chocoflan, and Cortadillo Cake blends vibrant, culturally inspired color palettes and patterning with photography that evokes homemade indulgence. The design honors time-tested recipes while staying true to Pillsbury’s playful, trusted brand voice, creating a bridge between tradition and contemporary shelf appeal.

Flavor Communication to Cultural Storytelling

As interest in global flavors continues to grow, packaging is evolving from simple flavor communication to storytelling. Whether highlighting regional ingredients, showcasing flavor mashups, or using design to convey heat, sweetness, or spice, brands have an opportunity to turn global inspiration into a compelling shelf presence. The result is packaging that doesn’t just describe the product, it sparks curiosity and encourages discovery.

Brain + Beauty: Rethinking Drinkable Function

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Functional beverages continue to evolve, and a new dual-focus trend has emerged, with drinks that support both cognitive wellness and visible beauty. Consumers are no longer satisfied with single-purpose beverages; they want products that enhance how they feel and how they show up in daily life. Expo West 2026 highlighted this shift, revealing brands that combine wellness benefits, flavor, and lifestyle-focused experiences to redefine what drinkable function can be.

From Single Benefit to Integrated Wellness

Five years ago, functional beverages were largely defined by a single promise: energy, hydration, immunity, or digestion. Bold ingredients like adaptogens, probiotics, and nootropics dominated.

Today, the category is moving toward integrated wellness. Hydration incorporates broader mineral profiles. Energy is expected to feel balanced and sustainable. Magnesium has emerged as a key ingredient, supporting stress response, recovery, and overall equilibrium.

Consumers also evaluate flavor, design, and experience alongside efficacy. The most successful brands integrate benefits seamlessly, providing a daily ritual that fits naturally into modern lifestyles.

Trends in Action at Expo West

Expo West 2026 made these shifts tangible. Leading brands no longer focus on single ingredients. They combine multiple benefits into cohesive, everyday experiences.

Everyday wellness is evolving. Drinks now blend adaptogens, nootropics, and hydration with lifestyle benefits. Classic formats are being reimagined. Soda-inspired beverages feature functional ingredients and bold, nostalgic flavors. Protein is increasingly incorporated to support satiety and sustained energy. Bright, fruit-forward flavor combinations make functional benefits approachable and enjoyable.

Together, these trends reinforce a key insight: success is no longer defined by one ingredient. It comes from how well benefits, flavor, and experience are integrated.

Brain + Beauty: A Defining Shift

A major emerging trend is the convergence of cognitive wellness and beauty. Consumers no longer see these areas separately. Stress affects skin. Hydration impacts both mental clarity and appearance. Recovery, sleep, and overall balance influence how people feel and present themselves.

Magnesium plays a central role in this shift. Traditionally associated with relaxation and muscle function, it now supports calm, recovery, and overall balance. These benefits influence both cognitive clarity and visible well-being. In this way, magnesium bridges brain and beauty, connecting internal wellness with external expression.

ELOS: Launching at Expo West

At Smith Design, we recently partnered with Accelerated Manufacturing Solutions (AMS) to launch ELOS, a functional sparkling water brand that officially debuted at Expo West 2026. From the beginning, we worked end to end: naming guidance, brand positioning, visual identity, packaging, and comprehensive brand guidelines.

Our process began with a deep dive into the beverage category and broader wellness landscape. We analyzed competitors, consumer motivations, and emerging cultural signals to identify strategic opportunities for differentiation.

Smith Design collaborated closely with AMS to shape every aspect of the brand:

  • Naming: We explored potential brand names and strategies, ultimately landing on ELOS, a modern, flexible identity designed to grow with the category
  • Brand Positioning: We defined a promise of refreshment paired with everyday wellness benefits, expressed through a bold, rebellious personality. Large hyper-liquified fruit graphics signal energy, edge, and shelf presence
  • Visual Identity and Packaging: Design systems communicate premium refreshment while reflecting the playful, bold spirit of ELOS
  • Brand Guidelines: Comprehensive guidelines ensure consistency across packaging, marketing, and future product extensions

The initial product delivers a lightly sparkling beverage with magnesium, electrolytes, essential vitamins, and fruit-forward flavor. ELOS is designed as a flexible brand platform capable of evolving with trends, flavors, and consumer expectations.

By combining functionality with flavor, design, and experience, ELOS reflects the future of integrated wellness beverages and the Brain + Beauty movement.

Looking Ahead

Expo West 2026 confirms a clear trajectory for the category: integration is key. Consumers want products that deliver benefits, enjoyment, and balance, seamlessly woven into everyday rituals.

The brands that will lead combine credible wellness claims with strong identity, thoughtful design, memorable flavors, and compelling storytelling. ELOS demonstrates this evolution, pairing wellness, flavor, and personality in a way that feels current, forward-looking, and fully integrated.

For brands and partners, the takeaway is clear. Success comes from building platforms designed to evolve alongside consumers, where integrated wellness, enjoyment, and experience define the next chapter of functional beverages.

From Core to Curious: When Brand Stretch Becomes Opportunity (and When It Becomes Polarizing)

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Brand extension is no longer a cautious step into closely related categories. Today, brands are making bolder, more visible leaps, sometimes logically, sometimes provocatively, into new spaces in pursuit of relevance, growth, and cultural momentum. In an era defined by fast-moving trends and fragmented consumer attention, expanding beyond the core can feel like a necessary survival strategy. Yet recent launches reveal a critical tension: not every stretch is embraced. Some feel like natural evolutions of what a brand already represents, while others ignite confusion, skepticism, and even backlash across social platforms. The question is no longer whether brands can stretch, but when that stretch feels authentic, and when it crosses the line into cultural dissonance.

A recent and highly visible example is Beyond Meat’s move into the functional beverage space. For some consumers, the launch signaled innovation and a broader lifestyle platform built around plant-based nutrition. For others, it felt disconnected from what Beyond Meat has historically stood for: meat alternatives grounded in food science, sustainability, and savory meal occasions. The polarized reaction underscores a growing challenge in modern brand strategy. Consumers expect brands to evolve, but only if that evolution aligns with the mental model they already hold. When the connection is unclear, even well-intentioned innovation can feel forced or opportunistic.

In contrast, several recent brand extensions demonstrate how stretching can succeed when rooted in clear brand logic and occasion relevance. Columbus Meats’ expansion into premium nuts felt intuitive because it extended the same world of craft, quality, and elevated snacking that the brand already owned. Premium nuts naturally fit into charcuterie boards, entertaining moments, and upscale grazing occasions—spaces where Columbus already had cultural permission to play. Rather than redefining the brand, the move simply broadened how and when consumers could interact with it.

Similarly, Farm Rich’s expansion from frozen appetizers into frozen breakfast built upon its existing equity in comfort, convenience, and freezer-aisle familiarity. Breakfast was not a reinvention but a natural adjacency, allowing the brand to show up at a new daypart while delivering the same promise of easy, crowd-pleasing food. Skippy’s launch of PB Bites followed a comparable logic. By translating its strongest equity, iconic peanut butter taste, and nostalgic appeal, into an on-the-go snacking format, Skippy responded to modern consumption behavior without abandoning its core identity. This was not a leap into a new category as much as a format evolution, meeting consumers where their routines had shifted.

Boar’s Head’s recent entry into indulgent dessert dips may be the boldest example, yet it still remains grounded in the brand’s long-standing reputation for premium, deli-counter craftsmanship. By reframing its role from strictly savory to “premium entertaining,” Boar’s Head expanded into a new emotional territory while staying true to its values of quality and indulgence. The move widens its relevance at social gatherings, extending the brand beyond meats and cheeses into dessert moments without eroding its upscale positioning.

Across these successes, three strategic principles consistently emerge. First, effective brand stretches expand existing occasions rather than inventing entirely unrelated ones. Columbus did not jump into soda; it deepened its presence in snacking and entertaining. Skippy did not become a wellness brand; it stayed in the snack lane and simply made peanut butter more portable. Beyond Meat, by contrast, entered a beverage category defined by different emotional and functional expectations, creating friction between what consumers knew the brand for and what it was suddenly offering.

Second, successful extensions leverage true brand equity, not just brand awareness. They draw from taste cues, trust, quality signals, and the emotional role a brand already plays in consumers’ lives. When Farm Rich entered breakfast, it carried forward its promise of easy comfort food. When Boar’s Head entered the dessert dips market, it leaned into premium indulgence and special-occasion appeal. Extensions fail when they rely solely on logo recognition without translating the brand’s deeper story into the new category in a meaningful way.

Finally, the most successful stretches feel additive rather than opportunistic. Today’s consumers are highly attuned to trend-chasing, especially in saturated spaces like functional beverages and wellness products. Without a clear narrative bridge, Beyond Meat’s move risked being interpreted as a business maneuver rather than a brand evolution. By contrast, Skippy PB Bites addressed a real, practical need: peanut butter without the spoon, making the extension feel purposeful and consumer-driven rather than reactive.

As categories fragment and consumption moments multiply, brand stretching will only accelerate. But the brands that win will not be the ones that stretch the farthest; they will be the ones that stretch with coherence. The difference between opportunity and polarization lies in narrative continuity—whether a new product feels like a natural next chapter or an unrelated side quest. When a brand extension expands an existing role, honors core equities, and solves a genuine consumer need, it builds relevance and long-term growth. When it breaks the mental contract consumers have with the brand, it risks becoming a headline instead of a strategy. In today’s culture, visibility may spark conversation, but authenticity is what sustains trust—and trust remains the most powerful currency a brand can carry into any new category.

The Future of Functional Beverages: Blending Flavor, Function, and Education

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The functional beverage market is entering its next phase of growth, one defined not only by efficacy but also by experience. As consumers increasingly look to drinks for energy, calm, focus, hydration, and gut health, these products are becoming integrated into daily rituals rather than treated as occasional supplements. Functional beverages are now staples for consumers seeking holistic wellness solutions. However, as the category becomes increasingly crowded, differentiation is no longer driven solely by ingredients. According to NielsenIQ and Euromonitor, the number of functional beverage launches has surged across various channels, resulting in a proliferation of similar claims and formats. In this environment, branding, packaging, and marketing clarity have become the primary drivers of trust, trial, and repeat purchase.

Branding: From Functional Claims to Confident Guidance

Consumers today are highly informed—but also increasingly skeptical. FMCG Gurus reports that shoppers want functional benefits, but they do not want to “decode” labels to understand them. This places new pressure on brands to act as guides, not just product providers. Mintel highlights that transparent, educational messaging is now table stakes, particularly for ingredients like adaptogens, nootropics, probiotics, mushrooms, and cannabinoids. Successful brands are simplifying complex science into clear, benefit-led language, using terms like “calm,” “focus,” “restore,” and “unwind,” while offering deeper education through secondary panels, QR codes, and digital extensions. WGSN further notes a shift toward reassuring familiarity: pairing emerging ingredients with well-known nutrients (such as magnesium, B vitamins, or electrolytes) helps lower the barrier to trial.

From a brand strategy standpoint, this means:

  • Clear brand architecture that ladders products to moments or outcomes
  • A confident, authoritative tone that educates without overwhelming. Replace ambiguity with confidence and truth.
  • Consistent language across packaging, paid media, and owned channels

Packaging: Designing for Shelf Clarity and Sensory Appeal

While functionality drives consideration, flavor ultimately drives purchase. Mintel identifies taste as the top attribute consumers associate with functional beverages, ranking above health benefits. Beverage Marketing Corporation reinforces this insight, noting that repeat purchase is overwhelmingly tied to flavor satisfaction. Packaging must strike a careful balance by clearly and quickly communicating function, while simultaneously evoking flavor, enjoyment, and sensory reward—positioning the product within the realm of “permissible wellness,” where it feels indulgent yet justified. This has led to packaging systems that borrow cues from premium food, beauty, and even spirits categories. 

Design trends include:

  • Rich, flavor-forward color palettes paired with clean benefit callouts
  • Elevated typography and restrained layouts that signal credibility
  • Ingredient photography or illustration that suggests natural origins and taste

We see a growing role for high-quality, in-house photography in enhancing flavor appeal and trust, especially in categories where taste can feel abstract. Products that look delicious feel less medicinal and more lifestyle-oriented. For brands targeting the sober-curious or alcohol-alternative consumer, WGSN highlights a shift toward cocktail-inspired aesthetics featuring glass cues, botanical illustrations, and ritual-driven design, positioning functional drinks as social, rather than solitary.

Marketing: Occasion-Based, Ritual-Driven, and Social by Design

Functional beverages are no longer confined to “me time.” Mintel & Nielsen both report that nearly 60% of consumers want to see functional drinks offered in bars and restaurants, signaling a major expansion in usage occasions. By 2027–28, the report predicts these beverages will become commonplace at concerts, fitness studios, sporting events, and sober-curious social spaces. This shift has significant implications for marketing strategy, as brands seeing the strongest growth are those that anchor products to moments, not just benefits. People are looking for products that focus on morning productivity and rituals, midday stress relief or hydration resets, and even winding down or alcohol replacement occasions. Marketing that highlights when and how to drink, rather than just why, helps consumers integrate functional beverages into their daily lives. Social content, sampling programs, and experiential activations are increasingly centered on shared moments, positioning these drinks as connectors rather than utilities.

For functional beverage brands, success begins by leading with flavor and reinforcing it with function. Taste is what captures attention at shelf, while clear, educational messaging is what builds trust and confidence over time. Consumers want products that deliver on health benefits, but they are far more likely to engage when those benefits are framed through an enjoyable, craveable experience. Clear benefit communication, evocative visuals, and credible design cues must work together to quickly convey value, differentiate from competitors, and signal quality in a crowded set. At the same time, brands must simplify the science, making complex ingredients and formulations easy to understand without undermining authority or credibility.

The functional beverage category is rich with opportunity, but it is also increasingly unforgiving. The brands that will win are those that treat brand strategy and packaging not as decoration, but as strategic tools that translate function into desire. When flavor, function, and education work in harmony, functional beverages transcend claims and become part of culture.

References

Mintel, Functional Drinks – US – 2024

NielsenIQ, Beverage Category Insights

Euromonitor International, Health & Wellness Drinks

WGSN, Food & Drink Trend Forecasts

FMCG Gurus, Consumer Attitudes to Functional Nutrition

Beverage Marketing Corporation, Functional & Better-for-You Beverages

The “Heart” of Giving

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Cupid still strikes for retailers and brands, even with fewer people celebrating Valentine’s Day. Dramatic changes in spending and the emergence of an ‘anti-Valentine’s Day’ sentiment have motivated retailers to find innovative ways to keep Valentine’s Day meaningful and relevant. While there are fewer adults celebrating the holiday, those that are celebrating are spending more money than ever before. Brands are thriving by rolling out strategies that appeal to everyone, regardless of whether they love or hate February 14th. Check out our guide for a crash course on what to expect this year – and what to watch for in the years ahead!
Source: NRF®, NRF’s Annual 2019 Valentine’s Day Spending Survey, conducted by Prosper Insights & Analytics: https://nrf.com/valentines-day-data-center