Podcast
Episode 57: The Art of Marketing Kraut
Featuring
Mac Anderson, Cleveland KitchenAshtyn Morris, VividFront
On this episode of Marketing Moves, we sat down with Mac Anderson, co-founder and chief commercial officer of Cleveland Kitchen, the top kraut and kimchi brand in the U.S. Mac shares the journey from farmers' markets to CPG success, revealing key marketing strategies, the power of influencer partnerships, and the role of consumer education in promoting fermented foods. Discover how Cleveland Kitchen blends quality, sustainability, and community to thrive in a competitive market.
Prefer to read instead of listen? Here's what we discussed:
In the ever-evolving world of Consumer Packaged Goods (CPG), few stories capture the essence of entrepreneurial spirit and effective marketing strategies better than Cleveland Kitchen's journey. From humble beginnings at local Cleveland farmers markets, Cleveland Kitchen has ascended to become America's leading kraut and kimchi brand, with its products now available in over 14,000 stores nationwide. This remarkable journey was recently explored in an episode of Marketing Moves, featuring Mac Anderson, the co-founder and Chief Commercial Officer of Cleveland Kitchen.
What Happened: Cleveland Kitchen's Rise in the CPG Industry
Cleveland Kitchen's story is a testament to the power of passion and innovation in the CPG sector. Mac Anderson and his brothers began fermenting sauerkraut as a hobby, which soon evolved into a full-fledged business. Initially selling at farmers' markets, they leveraged their understanding of consumer behavior and market trends to expand into retail marketing. This move was supported by strategic partnerships and an unwavering commitment to product innovation and sustainability
Strategic CPG Marketing Approaches
Cleveland Kitchen's marketing strategy is a masterclass in CPG brand management. They have effectively used social media marketing and influencer partnerships to boost brand awareness and educate consumers about the health benefits of fermented foods. Their approach to digital marketing for CPG involves leveraging platforms where consumers discover new products, ensuring their brand remains top of mind.
Influencer Partnerships: Cleveland Kitchen collaborates with lifestyle influencers and dietitians to reach diverse consumer demographics. This strategy not only enhances brand positioning but also taps into the consumer insight that many people discover new food products through trusted recommendations.
Sustainable Packaging: The company has embraced sustainable packaging, which has helped in supply chain optimization and improved their margins. This commitment to eco-friendly practices is a significant selling point in today's market, where consumers are increasingly conscious of sustainability.
Retail Marketing and Shopper Engagement: By maintaining strong relationships with retailers and focusing on shelf space optimization, Cleveland Kitchen ensures that their products stand out. They use data-driven marketing and market research to tailor their strategies to different retail environments.
Balancing Brand Loyalty and Price Sensitivity
One of Cleveland Kitchen's notable decisions was to avoid passing inflation costs onto consumers, a move that has helped maintain customer loyalty. This pricing strategy highlights their commitment to offering value while navigating the complexities of the CPG industry.
Challenges and Opportunities in the CPG Space
The CPG industry is known for its challenges, including competitive analysis, product lifecycle management, and private label competition. Cleveland Kitchen, however, views these challenges as opportunities for growth. They continue to innovate and expand their product lines, such as their recent introduction of fermented sauces, which align with evolving consumer preferences.
Conclusion
Cleveland Kitchen's journey offers valuable lessons for other CPG brands. Their success underscores the importance of understanding consumer behavior, leveraging digital transformation, and maintaining a strong brand story. By focusing on sustainable practices and innovative marketing strategies, Cleveland Kitchen not only meets consumer demand but also sets itself apart in a crowded market.
For CPG brands looking to emulate Cleveland Kitchen's success, understanding the nuances of shopper marketing, engaging in effective trade promotions, and utilizing consumer insights are essential. As the CPG industry continues to evolve, brands that are agile and consumer-focused will thrive.