“Both manufacturers and consumers are now making safer choices”

Fanta is growing fast, while Topo Chico hard seltzers are leaving the shelves in Belgium. A new balance is emerging between the long and the short term. In times of crisis, brands have to learn how to deal with contradictions, says country director An Vermeulen of Coca-Cola European Partners.

Dealing with paradoxes

FMCG brands face unprecedented challenges in these times of crisis, of which rising costs are just one. The biggest challenge? Dealing with paradoxes. In terms of innovation, for example.

“We work around very innovative concepts, such as the metaverse, where you can scan a can of Coca-Cola to experience a concert in virtual reality. We notice that in times of crisis, consumers mainly opt for well-known brands, and are less inclined to test a new category or brand. Innovations on the big brands do work well.”

Innovation must be familiar

She refers to the action around the mysterious new flavour (actually three flavours) of the blue Fanta last year, and the new pink seasonal variant that has just come onto the market. “Consumers do want something new, but it also has to be familiar.”

An illustration: hard seltzers do not really catch on in Belgium. “In the US, that hype started years ago, at a time when people were open to novelties, but today the context is different. Both manufacturers and consumers are making safer choices. The period 2020-2025 will be enormously interesting and I wonder how it will change consumer behaviour. You have the impact of Covid, in addition to the fear around the war and high inflation…”

Two speeds

Another paradox: as a brand, you want to digitise today, to invest in omnichannel, to make your services future-proof. But at the same time you still have to find your raw materials and packaging.

“During paradoxes you’re at two speeds, you have to learn to switch gears,” Vermeulen analyses. “It is like driving in England, as a Belgian: because you have to drive on the other side of the road, you start driving ‘consciously’ again. It used to be enough to improve last year’s plans in order to achieve a few per cent growth. Today, to achieve 5% growth, you have to think completely differently. That is enormously fascinating.”

Sustainability: an important obviousness?

Consumers say they consider sustainability important, but often do not want to pay for it. “Sustainability is becoming a basic requirement. As a company, we have to take our responsibility within a complex trade-off between climate, water, refillable packaging… Big decisions: for example, you invest in a packaging line that will be there for ten years and where the trade-off between water and climate is not always easy.”

Job security?

There are also contradictions when it comes to people. There is a ‘war for talent’ going on, but An Vermeulen also sees a demand for job security. “You have an accelerated departure after two years of relative stability during COVID. That is a logical catch-up move. There are also more people leaving the job market than entering it. But I also see a large group that does want to change, but without risk. They go from big company to big company, for example. The entrepreneurs, the startups, I see less now than five years ago.”

Long versus short term

These paradoxes lead to an increasing discrepancy between the long and short term. “From annual plans we are now moving towards multi-year plans that look even further ahead, on the one hand, and very short, agile plans, on the other. This balance is a tough challenge. If you miss the ball, you have to adjust faster. If you don’t make choices or take risks, you can’t make mistakes. You learn the most from failures and I have no problem sharing them.”

At the RetailDetail Food Congress on 9 June in Antwerp, An Vermeulen will testify how she, as country director at Coca-Cola, deals with the paradoxes of our time. Also on stage that day: speakers from Deloitte, Delhaize, Nestlé, Pieter Pot, Kriket, VLAM, Gorillas and Mosa Meat. An event not to be missed by every food professional. Early bird tickets can be ordered via this link.