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On 24th May 2023, Kelloggs' 12 brands applied for trademarks with US patent office and indicated a strong vision for entry in to the metaverse. This development serves as the harbinger of the wide acceptance of new revenue streams within the food industry. One of the most significant aspects of this development is how Kellogg's is leveraging its established brands in their move into the NFT and metaverse space.
MarketsandMarkets welcomes this development and our editors share their views.>
It's vital to stay ahead of the curve and position one's company/group to stay ready for adoption of new revenue streams.
What is the Potential of NFTs and Metaverse in food industry?
NFTs allow for ownership of unique digital assets, and metaverses provide virtual spaces where these assets can be used and showcased. This could create an entire new realm for food and restaurant branding. Imagine, for instance, exclusive virtual dining experiences with celebrity chefs, or rare, collectible menu items as NFTs. The trademark filings by Kellogg's and Mars are more than protective measures. Kelloggs' has ensured their rights in the digital world and has signaled its willingness to open up to potential sources of revenues.
What are the potential revenue streams from NFTs for food giants?
The potential revenue streams in the emerging fields of NFTs and metaverse for a food industry giant like Kellogg's would lean on a blend of technology-forward initiatives and brand-centered strategies.
Firstly, the sale of NFTs representing their popular brands can create a direct and immediate revenue stream. Limited-edition NFTs can add a tier of exclusivity, commanding a premium price in the market due to their scarcity. While exploring this vertical, priority should be given to their most popular and iconic brands, as these are likely to generate the highest interest and value. To properly leverage this opportunity, Kellogg's might need to onboard experts in blockchain technology, NFT market dynamics, and digital copyright law.
The metaverse introduces a highly scalable and an entirely new dimension for monetization
Offering branded virtual merchandise and premium experiences tied to Kellogg's brands creates a dynamic and engaging avenue for generating revenue. Given the interactive and immersive nature of the metaverse, it presents opportunities for partnerships and sponsorships with influencers and other brands that have a strong virtual presence. Tapping into this area will require hiring talent with a deep understanding of virtual world development, user experience design, and digital marketing.
However, the rollout of such initiatives should be strategically staggered based on internet infrastructure and the prevalence of necessary hardware across different geographies. Advanced economies with high-speed internet and widespread adoption of relevant hardware, such as VR headsets, would likely be the initial target markets. In contrast, in countries where internet infrastructure may not support these complex, data-heavy virtual experiences, such initiatives could be delayed or need alternative approaches.
Finally, potential continuous revenue streams could be tapped into through royalties from the resale of NFTs and through the sale or lease of virtual real estate in the metaverse. Kellogg's could also explore revenue generation through digital advertising within the metaverse, although this should be approached judiciously to avoid compromising user experience. Given the complexity of these areas, experts in digital economics, contract law, and metaverse architecture would be valuable additions to the team.
As with any new technology, a calculated, phased approach that assesses both market readiness and internal capabilities will be essential in successfully unlocking these revenue streams.
Which food brands have filed for NFT trademarks?
- Kraft Foods Group: As a household name in food products, Kraft can leverage the metaverse to bring unique digital experiences to its customers. Offering NFTs tied to their iconic brands like Kraft Mac & Cheese could create a new revenue stream while enhancing their brand's digital presence.
- Del Monte Foods: Entering the metaverse allows Del Monte to bring its canned fruit, vegetables, and tomato products to life in a new digital context. By launching NFTs of their products, they could enhance brand awareness, generate direct revenue, and create unique digital marketing campaigns.
- In-N-Out Burgers: The popular west coast burger chain could use the metaverse to share its unique California vibe with a global audience. Limited edition NFTs could recreate the In-N-Out experience, potentially boosting brand loyalty and enabling fans worldwide to own a piece of the iconic chain.
- McDonald's: The fast-food giant can use the metaverse to provide virtual dining experiences, creating a new kind of engagement with customers. NFTs based on their well-loved menu items could add an exclusive element to their marketing strategy, driving revenue and brand recognition.
- Wendy's: With a strong social media presence, Wendy's could extend its distinctive brand voice into the metaverse. Offering NFTs could further solidify their connection with a younger, digitally engaged demographic, leading to increased brand affinity and sales.
- Taco Bell: Known for their innovative marketing strategies, Taco Bell can use the metaverse to provide unique virtual experiences to their customers. This could include NFTs representing their menu items or even virtual taco parties, adding a fresh dimension to their customer engagement strategy.
- Pizza Hut: Pizza Hut could leverage the metaverse to deliver virtual pizza parties or exclusive digital dining experiences. NFTs tied to their brand could drive customer engagement, enhancing brand loyalty and opening up new revenue possibilities.
- Panera Bread: With a focus on wholesome food, Panera Bread could use the metaverse to create a virtual café experience for its customers. NFTs representing their popular items could be used to offer discounts or special promotions, creating a unique marketing and revenue opportunity.
- Panda Express: The metaverse could enable Panda Express to share its American Chinese cuisine with a broader audience. Offering NFTs could serve as a fun way to interact with fans, potentially driving brand recognition and creating a new source of income.
Which are the 12 Kelloggs' brands that have filed for NFT trademarks?
- Froot Loops: Froot Loops is a vibrant and fun breakfast cereal beloved for its colorful loops and fruity flavor. The brand is recognized for its vibrant mascot, Toucan Sam, and its tagline, "Follow your nose".
- Special K: Special K is a low-fat cereal known for its health-conscious image and focus on weight management. The brand often targets adult consumers looking for nutritious breakfast options.
- Kellogg’s: The parent brand itself, Kellogg's represents a variety of cereals and snack foods known globally. It's recognized for its iconic rooster logo and commitment to providing quality products.
- Pop-Tarts: Pop-Tarts are toaster pastries with a sweet filling, known for their convenience and variety of flavors. They are often associated with quick breakfasts and snack times.
- Cheez-It: Cheez-It is a brand of cheesy, square-shaped crackers. The brand is recognized for its real cheese flavor and satisfying crunch, popular as a snack option.
- Rice Krispies: Rice Krispies are puffed rice cereal best known for their distinct 'snap, crackle, and pop' sounds when milk is added. The brand is also famous for its Rice Krispies Treats, a marshmallow snack bar.
- Krave: Krave is a brand of meat-based snacks, recognized for its range of jerky and other protein-rich products. Its tagline "Taste the Unexpected" reflects its adventurous flavor profiles.
- Eggo: Eggo is most famous for its ready-to-heat waffles, which are popular for quick breakfasts. Its memorable tagline, "L'eggo my Eggo," has been a staple of its advertising for years.
- Mini Wheats: Mini Wheats is a brand of shredded wheat cereal, known for its fiber-rich content. The cereal has a distinct design, with one side frosted for sweetness and the other plain.
- Bear Naked: Bear Naked is a brand of granola and snack bars, known for its use of all-natural ingredients. It appeals to consumers seeking wholesome, on-the-go snacks.
- Frosted Flakes: Frosted Flakes: Frosted Flakes are sweet, crispy corn flakes, recognized globally thanks to its mascot, Tony the Tiger. It's famous for its catchy slogan, "They're Grrreat!"
- Pringles: Pringles is a brand of stackable potato-based crisps, unique for its tubular packaging. Pringles is known for its wide variety of flavors and the tagline "Once you pop, you can't stop".
How NFTs can be used in real world gamification for customers?
NFTs can bring a new level of gamification to real-world customer interactions in the food industry. Here are some innovative ways restaurants and food giants can utilize NFTs to enhance customer engagement:
- Loyalty Programs: NFTs can serve as a unique, traceable proof of loyalty rewards. Customers can collect them and trade them in for discounts, free items, or special experiences.
- Treasure Hunts: Food giants can launch NFT-based treasure hunts, where customers try to locate, buy, or win NFTs that can be redeemed for real-world prizes. This not only boosts customer engagement but also drives traffic both online and offline.
- Collectible Series: Companies can release limited edition NFT series themed around their products or mascots. As customers collect more of the series, they can earn discounts or exclusive rewards.
- Menu Items as NFTs: Some restaurants could turn menu items into NFTs that can be purchased and traded. Owners of these NFTs could be entitled to discounts or free servings of the associated food item.
- Exclusive Access: NFTs can serve as tokens for VIP access to special events, early product releases, or secret menu items. This could create a sense of exclusivity and build more intimate relationships with customers.
- Celebrity Partnerships: Food brands could partner with celebrities to create co-branded NFTs. These could be auctioned or given away, with holders receiving special real-world benefits, like a private dinner with the celebrity.
- Charitable Campaigns: NFTs can be tied to charitable efforts. For instance, for each NFT sold, the company can pledge to donate a certain amount of food to communities in need. This encourages participation and highlights the company's social responsibility.
What are the key takeaways for Food Industry Veterans from Metaverse perspective?
The foray of Kellogg's into the metaverse by securing the digital rights of its 12 iconic brands marks a watershed moment in the history of the food industry. As we usher into a new era, these developments highlight the power of adopting pioneering technologies like NFTs to catalyze growth and open up myriad revenue streams. It is indeed commendable how Kellogg's has seized this opportunity to amplify its branding in the digital realm and stay ahead of the curve.
This heralds a future where food brands coalesce the virtual and physical worlds to create unprecedented customer experiences. Embracing this digital evolution, the food industry at large needs to strategically align its resources, including human talent well-versed in blockchain technology and digital marketing, to harness these new frontiers.
However, a one-size-fits-all approach may not be viable, given the disparity in internet infrastructure and hardware adoption across different geographies. Companies must therefore exhibit acumen in tailoring their rollout strategies to specific markets, seizing opportunities while mitigating risks. Ultimately, the journey of food giants into the metaverse promises a thrilling era, adding a delectable flavor to the unfolding saga of NFTs and virtual reality. The implications are vast, and we look forward to observing this space as it evolves and matures.