Role of NZ’s Food Branding and Packaging Post Covid-19

The kiwis did not laze around when the pandemic hit. On 21st March 2020, NZ went into a complete lockdown with a response time of just two days. The entire country took the hit, but it turned out to be beneficial for them because today, they are covid-free.

But when the country shut itself down to avoid crisis, many of its industries got shut down. Steve Kent, an industry leader in the food sector in New Zealand, says, “While we were able to continue our operations as an essential business, our demand stopped due to the closure of the foodservice sector”.

But recently, with New Zealand being free of Covid cases, the food sector is slowly recovering. The shellfish industry, containing 35% of trade in Kiwiland, had gone down by 82% in exports at the pandemic’s peak.

Similarly, dairy, fruit and meat exports that had pushed the economy into the function expect to see steady increases in growth.

Studies show that the packaging industry took the lowest hit during the pandemic and expect to recover soon.

Opportunities are, therefore, opening up to brands when it comes to packaging and branding. With industry leaders like Anchor, Meadow Fish and Wattie’s falling behind other brands, the time is nigh for a post-covid economic breakthrough for food brands.

Impact of Covid-19 in the New Zealand food industry 

The kiwi food industry has shown resilience, but it is also subject to some limitations that companies needed to keep in mind. They source the food, determine their product ranges, and evaluate the robustness of their supply chains.

Similarly, long term goals have to be set for E-Commerce and distribution companies- They must take responsibility for optimizing and streamlining their networks.

Responsibilities and leadership are essential in these times where economic recession towers over the economy. As a result, companies must ask themselves a few questions:

• How to safeguard their employees?
• How to use working capital so that they can access it even in periods of prolonged disruption?
• How best to assess and intervene in supply chain risks?
• How to quickly adapt to changing product-to-market channels to guarantee steady revenue?
• How to support customer needs in and fulfil demands during peak infection times and maintain relations with partners?

Players in the food industry are made and unmade by what they do in response to the three ways to manage a crisis: Respond, Recover and Thrive.

In the response phase, some of the steps needed to be followed are:

• Optimize work environments for employees, like providing Internet recharges and subscriptions to ensure a steady workflow.
• Set up emergency funds and contingency plans for disruptions to the supply chain.
• Engaging with customers, retailers and suppliers to continue services.

The recovery phase is different- the pandemic resulted in a shrunken economy- recent statistics show that it had gone down by 2.9% in 2020. Tourism was the main factor behind the economic downturn, but slowly, industries have started to recover by focusing on domestic goods. In this case, the food industry has emerged as a saviour for the economy.

The recovery phase takes all the steps mentioned in the response phase. It combines it with investor seeking, partnerships, and newer models of supply to return to previous revenue levels.

Finally, companies start to thrive by considering the market circumstances and lessons they learnt during the restrictions. The previous phases were all about defending the company position; now, it is time for the business to expand and set goals.

Changing times call for changing approaches to business, and the companies must adjust themselves accordingly.

Also Read: Food Packaging Design Benefits & Ideas 2021

Food Saviours- Dairy and Meat

Despite the setbacks of food consumption in the earlier stages of the pandemic when cooking food at home was still the new normal, the NZ food export industry remained resilient.

Sources mention that exports to all countries in the pandemic had fallen by 43.7mn USD to 10.2bn USD- a figure that could have been a lot more if not for food exports.

With the closure of tourism, more and more pressure has been applied to exports the making up for the limitations imposed on the economy. Fruit, dairy and meat all showed steady growth in exports to major trade partners like Japan, the US and the EU.

It is essential considering that other major kiwi exports fell drastically in 2020, like forestry products (down by 35%) and crude oil (down by 40%). The economic challenges created by these factors put more stress on other industries to perform. Even at the peak of the pandemic, the dairy and meat industries had shown signs of steadiness or growth during 2020.

Food exports and in-country food consumption patterns have pushed food brands to use packaging innovatively. But first, it is required to know the importance of packaging design and branding in food marketing.

High percentages of consumers make buying decisions after seeing package design. A packaging design having relevant graphical images and information will, of course, appeal more than one which does not. Studies have shown that 60-70% of users buy products directly influenced by packaging design. Packaging design has become inseparable from marketing now.

With the current advent of the pandemic, the packaged food product today needs to reach the consumer in a safe condition. It is not enough for the contents to be in an air-tight container; it needs to be sanitized at the maximum possible extent keeping in mind the current times. The customer can be expected to be paranoid about packaging, so putting in informational and attractive design images and details can be crucial in selling your product.

Increasing shelf-life and making transportation easier are the main objectives of the in-country and export industries, respectively. A robust design reassures the customer when it comes to the edible nature of the food, its health benefits and most importantly, the safety it ensures.

The time is prime for food brands in Kiwiland to reimagine their identities- in the times of the pandemic, it is essential to make sure that the customer gets what they want- because the customer is king. There remains a high chance of rejection if the customer is unconvinced by what the brand offers.

Customer bonds are made and broken through promises of delivery- packaging that includes information like WHO certified ratings of safe packaging reassure the customer. It is even more important to keep this in mind because, during the pandemic, safety becomes superior to quality. A food product that is safer and more sanitized would be preferred over foods that focus more on factors like taste, for example. The NZ government has set up agencies like Foodsafe to give certification over brands by giving safety labels, and brands like Coca Cola have established themselves as market leaders in the food safety segment.

Companies need to keep safety in one hand of their packaging design expenditure and other factors in the other. They can offset this balance but at greater risk to the company. With the Covid crisis, there has been a concerted effort in the online appliances of product packaging. As mentioned earlier, customers become aware of the product through the Internet- trends of online shopping have been rising steadily. Food branding increases recognition of the brand and delivers services as per customer requirement.

Food brands need to make sure that they have their brand identity intact- they need to communicate their values and ethics in these times more than ever, and there is no way to do it without a clear idea of the market situation. They need to preserve both the Kiwi identity and make sure that what they offer runs parallel to what the people expect of them in light of the recent government expectations.

Conclusion

In light of the recent developments, it has become evident that food brands will become crucial to economic prosperity and remain in the same position as they are today for the years to come.

Today, Kiwiland has the privilege of calling itself free of the virus, but it has come at the cost of economic development. Exports in food industries have to be increased to offset the losses of tourism- raw material export, focus on natural resources and food industry development has become the leading indicators of economic growth in these troubled times.

Food brands need to step up today because it is their time to shine in the limelight. With gaps in the economy, opportunities arise, and slowly and surely, demands are increasing. Trade with regional partners that had been on the decline in 2020 has picked up steam in 2021, like the increase in seafood exports to China.

Prospects are looking challenging but achievable for the Kiwi food industry today. Still, it is essential not to get lost in the competition and carve out a niche.

By reading this blog, you might get a clearer picture of what it takes to thrive under these circumstances. If you’re still confused, worry not, because we at Brand Design Agency NZ have made sure that you have all the expert tools at your disposal to overcome the challenges today. Connect with us at www.logodesignnewzealand.co.nz to get started today!