At AVE, we know it can be difficult for businesses to look beyond reducing the quality of ingredients as a solution to dealing with rising food inflation and constricted budgets. However, with a unique and vast network and strong buying power, we’ve been able to introduce our clients to another way: something we call The Bisto Strategy.
Why is swapping ingredients not the best response to food inflation?
In the world of procurement, there are a wealth of cautionary tales which show exactly what the consequences of ingredient swapping can be – the latest being the Hershey’s ‘hiccup’ we focused on in this blog.
But the American food giant isn’t the only brand to have found themselves met with fierce resistance (and even negative headlines) when they have tweaked a recipe in the face of rising food costs. McDonald’s and Coca-Cola are probably two of the most globally-recognised brands and yet, they too, found consumer loyalty truly tested when they attempted to meddle with much-loved recipes.
Naturally, there are a whole host of reasons why brands might seek to substitute ingredients, but when the aim is a monetary saving, the replacement often comes at the cost of quality. As soon as consumers, who may have shown loyalty to a product for years or even decades, notice the difference, they feel their trust in that brand has been broken; and winning back a disappointed customer is an uphill battle that often costs more than the savings made as a result of the swap.
So, how can companies respond to increasing ingredient cost pressures?
Inflation, supply chain volatility and the ever-changing economic landscape have piled an inordinate amount of pressure on businesses, meaning using cheaper or less premium ingredients may seem like the only viable option. However, choosing between your margins and the ‘magic’ that makes your offering so popular shouldn’t be the only way forward.
That’s where The Bisto Strategy comes in: an approach which enables clients to avoid the reformulation trap, steering them away from an unhappy compromise towards a win for them and a win for their customers.
The first part of the strategy involves accessing specialised global partners and niche suppliers – showcasing agility and innovation in sourcing, without any downgrading in quality. And the second? That’s about having influential buying power on a massive scale, allowing the negotiation of rates that individual operators can’t achieve alone. These significant cost savings are passed directly to the client – meaning ingredient swapping can be taken off the table, enabling them to retain the quality their customers have come to expect.
And why do we call it The Bisto Strategy?
Bisto represents comfort, consistency and a premium product that consumers can rely on – which is one of the reasons why they’ve remained one of the most popular gravy brands for almost 120 years, in a country that consumes more of it than anywhere else in the world (apparently, the average Brit consumes 5.6 litres a year!).
The ultimate focus is on protecting the quality that consumers expect, while also securing a client’s bottom line. In other words, rather than finding a cheaper way to do things, finding a smarter way to maintain excellence.
So, before you turn ‘aah!’ into ‘argh!’ and fall into the trap of reformulating a winning recipe, let’s talk about how AVE’s two-pronged network and buying power Bisto Strategy can provide a much more comforting result for you and your clients. Call or email the team today so we can help you create those ‘aah!’ moments for your own brand!
Published by Edward Wright – Innovation & Growth Director at AVE
