‘Tis the season for Limited Time Offer (LTO) products. Consumers love the anticipation and social media drives a fear of missing out mindset for just-released, once-a-year products.
And with rising consumer demand for better-for-you and plant-based offerings, the LTO product lines for most companies continue to advance. According to the Good Food Institute, six in ten U.S. households purchased plant-based foods last year, and a recent survey conducted by Whole Foods and Wakefield Research found that over half of Americans (56%) said that offering vegan options at holiday gatherings was important.
LTOs perform well for Lindzi Shanks, co-founder of XO Marshmallow who offers plant-based holiday products such as Banana Puddin’.
“Offering limited-time products drives sales by increasing the scarcity mindset of a product. Customers know that if they don’t act and get a product now, it won’t be available in the future — either due to time restraints, products selling out, or both.” She said this has been true of their holiday advent calendar which sells out each year, creating an urge to order earlier next year. “Now on year 5 of our Advent calendar, we sell ten times what we did that first year – and we still sell out before Dec 1.”
“Our social media posts announcing our Marshmallow of the Month receive on average a 7-10% higher engagement rate than other videos,” she said. “Our website reorder rate is 42% — higher than the food and beverage industry average.”
Key Challenges
With limited-edition products, there can be challenges with inventory management and meeting demand, according to Andy Van Ark, chief marketing officer for Catalina Crunch in New York. His company is in a unique position, he said, as are some other plant-based companies, offering indulgence in a line of foods otherwise known as healthy or nutritious.
“Holidays are traditionally associated with indulgence so it is crucial for brands in the low sugar and health food industries to provide health-conscious alternatives that allow consumers to enjoy the festivities while still making mindful choices,” he said. “These alternatives reinforce the idea that consumers can celebrate during the holidays without having to compromise on their health goals, creating a balance between festive indulgence and mindful choices.”
Innovation is key
Brands like MALK Organics lean into consumers’ need to feel a bit more festive even despite dietary restrictions, with clean label approach. Their Holiday Nog contains no additives, gums, oils, or fillers, and is produced only with filtered water, organic almonds, organic maple syrup, organic nutmeg extract, and Himalayan pink salt, according to MALK. Low-carb plant-based Catalina Crunch optimized an LTO of an Apple Cider Donut version of their typical cereal, checking the Thanksgiving and Christmas boxes all at once. Nestle and Sweet Earth are “reimagining” holiday meals for plant-based consumers.
According to brand growth and product innovation strategist Erin Ransom, personal networks — the proverbial holiday table — can also help convince consumers to try new, plant-based options at other times of the year. Had a tofurkey at Thanksgiving? Why not try tofu tacos this summer?
Ransom serves as head of marketing for Tofurky, a brand leader offering plant-based roasts that celebrated the sale of its 5 millionth plant-based Thanksgiving roast back in 2018. Meat isn’t the only holiday option that diners are looking to swap out, either. A 2020 report notes that 74% of U.K. consumers considered buying vegan cheese the prior Christmas.
Launching too many holiday-based plant protein products too fast, without the infrastructure to support them, can be a cause for LTO doom.
“While our customers love the holiday product offerings, we want to balance the need for customer news with simplicity and efficiency for our baristas, so we are careful to avoid launching too many complicated recipes at once,” said Laura Stevenson, head of retail product marketing at Peet’s Coffee in Emeryville, Calif. They offer products like the Everything Plant-Based Sandwich, and a vegan LTO Holiday Spice Cold Brew Latte. “Baristas are the heart and soul of the company and ultimately responsible for delivering the best customer experience, and we want to set them up for success.”
In addition to the specific holidays, look to the weather to determine your LTOs, especially in the coffee business, Stevenson said. “Coffee consumption increases in colder months, so consumers are already looking to drink more coffee in the holiday time period. Many people are drinking coffee both at home and on-the-go, so it’s possible a coffee LTO out at a coffee shop is an additional cup of coffee consumed during holiday.”
Additionally, Stevenson recommends breaking down data by generation and using those indicators to optimize LTOs.
“With younger consumers (Gen Z & Millennial) driving cold coffee category growth, it was important to feature a new iced coffee beverage for holiday, and peppermint flavor stands out well with cold coffee,” she added.
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