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  Lunch Lessons in Branding   Lunch Lessons in Branding  Dale Buss  
         
 
Lunch Lessons in Branding Yet, supplanting their traditional brand image of the school-lunch lady is just the challenge that a growing number of food and beverage companies are tackling as they seek—with the often enthusiastic assistance of school administrators—to create new markets on campus while addressing the national epidemic of poor nutrition and obesity in American teenagers.

Among the players gamely attempting this difficult brand-building exercise in the US are the Big Three of the school-foodservice business—Aramark, Chartwells, and Sodexho—as well as small companies plying everything from breakfast kits to smoothies. Uniformly, they cite the challenges of building a brand in a setting where teenagers' expectations and attitudes make success a difficult proposition.

"With elementary kids, you've got a captive audience, but middle- and high-school students are much more mature, and their tastes are different than they were a few years ago," says Kerri Dixon, marketing director for kindergarten through 12th grade at Aramark Education, a division of the foodservice giant that is trying to entice kids with in-school brands called 12 Spot and U.B.U. Lounge. "We have to design the dining experience that they're so used to getting outside of school, to keep them in school."

Breaking Into the Lunchroom
Actually, several factors have combined to create new room for brands to make a push in the classically anti-branding environment of the school lunchroom:

  • Fewer and fewer meals are prepared for junior-high and high-school students at home any longer, so kids are far more accustomed than earlier generations to making lunchtime decisions based on the brand cues they get from quick-serve restaurants.

  • The US government, nutritionists, and others are making a huge effort to overhaul school meals in a healthier mode. Legislation that passed in 2004 kicked in last fall, requiring each school district to begin implementing a plan that dramatically improves the nutritional content of the meals and vending lineups that they offer.

  • Everyone involved in the school-foodservice business acknowledges that it's not enough simply to eliminate sugar and fats and other bad stuff to make foods healthier—and then expect hungry teenagers to line up to scarf them down. Bringing some brand-name pizzazz to the new offerings may be the table stakes just for getting kids to taste the new stuff.

  • Ironically, teenagers remain responsive to brands even as more and more school districts are making it increasingly difficult for two of the best known—sugary and fattening Pepsi and Coke soft drinks—to remain on campus. The beverage giants still shell out millions of dollars to many school districts for placement exclusivity for their vending machines, but now they're more likely to carry Aquafina bottled water, a PepsiCo brand, and Odwalla juices, owned by Coke.
 
A Menu Full of Brands
Here's how several companies are attacking the opportunity to raise their brand quotient at American schools:


Chartwells: The most ambitious branding effort might be Balanced Choices, launched three years ago by Chartwells, a Ryebrook, New York-based division of UK-based Compass. One of the Big Three of the US industry—each of which has about 7 percent of the overall market—Chartwells has rolled out Balanced Choices in the cafeteria and now is testing it in school vending courts.

Under the Balanced Choices banner, Chartwells has developed hundreds of new entrees and combinations that make for nutritious meals, relying more on fresh vegetables, whole grains, ethnic variety, make-it-yourself salads, and other innovations that encourage healthful eating. Cafeteria management recommends a Balanced Choices meal to kids on a menu board that changes every day.

"They have the Balanced Choices logo and colors to brand the concept, so that over time, as kids see those colors and words, they understand," says Margie Saidel, director of nutrition for K-12 for Chartwells School Dining Services.

Her company researched the notion that Balanced Choices is exactly the kind of "adult-planned" brand of meal that teenagers, or even middle-schoolers, might rebel against, Saidel says.

"There's some research showing that they'll actually make better choices if they have more information at the point of service," she says, such as choosing a plain hamburger over one with cheese, or a pizza without pepperoni. "But then there's another school of thought that says kids really rebel—that they don't want healthy food and that if you tell them it's healthy, they're going to run the other way. We're piloting tests to figure that out."

Chartwells also is extending the Balanced Choices brand into the vending arena in test markets, where it pairs a snack machine and a beverage machine together in what Saidel calls "a healthy-vending destination."

To attract kids' attention and to encourage brand recognition, the machines are decked out with the Balanced Choices logo on top and bright colors and graphics all around. Inside are what Saidel calls "100 percent better-for-you choices," each of which must comply with the specific local standards of each school district as outlined in the federally mandated "wellness policies" that they all are developing.

Typical beverages are water, flavored water without calories, and various 100 percent juice drinks. The Balanced Choices snack machines typically contain pretzels, baked snack chips, animal crackers, granola bars, cereal bars, and small boxes of ready-to-eat cold cereals. Food manufacturers' recent initiatives to launch smaller portions in their snack pages, such as "100-calorie packs," have helped give Chartwells an ample choice of items to include in the machines.

One of the best early indications from sales results for the Balanced Choices vending machines, Saidel says, is that they "haven't negatively impacted à la carte programs" in school-lunch lines, nor "meal-participation sales." Meaning, she concludes, that where they're being tested, the Balanced Choices machines are resulting in a net increase in kids' consumption of better-for-you foods.

Fizzy Fruit: Carbonated fruit has the makings of a hit new brand with American kids as Fizzy Fruit lands on retail shelves in markets across the country. And in March, Fizzy Fruit received a huge promotional kick through a marketing connection to the Walt Disney movie Meet the Robinsons, an animated feature about time travel.

But the brand's success began—and is still growing—in school cafeterias. Sodexho School Services tested Fizzy Fruit in some of its school-lunch accounts during the last school year and found the products so popular with kids that the company invested more than US$ 100,000 in the equipment required to make Fizzy Fruit at as many as 120 schools across the country.

Fizzy Fruit is the brainchild of Texas neurobiologist Galen Kaufman, who tossed a pear in a cooler with dry ice on a fishing trip. The water in the fruit absorbed the carbon dioxide from the dry ice, giving the pear the bubbly taste found in soda without diluting its nutritional content. British entrepreneur Adam Lindeman is the primary investor in the Portland, Oregon-based startup.

"We know that Fizzy Fruit is a product that kids love," says Alex Espalin, chief marketing officer of Fizzy Fruit. "We know that the world is ready for an alternative to soda, candy, and other foods of low nutritional value. People want healthy food and they want it to taste good, too."

Indeed, every time Fizzy Fruit arrived in a Sodexho-managed school cafeteria, it became an "event" that got the school community buzzing and often brought out local news media. Local coverage expanded to regional and national press, culminating with the decision by Popular Science magazine in 2006 to name Fizzy Fruit one of its best new products of the year.

That's why Sodexho sought to extend its limited-term exclusive agreement to provide Fizzy Fruit in the US school-foodservice market—but was turned down. "This is a maturing marketplace, and you see more and more crossover," says Tom Callahan, senior vice president of Columbia, Maryland-based Sodexho, another of the industry's Big Three. "At the end of the day, all organizations are looking to introduce foods that are both popular as well as heighten our nutrition profile."

Yet, underscoring the difficulty of carving out room for brands on campus, after testing Fizzy Fruit in a handful of its cafeterias, Chartwells decided not to roll it out company-wide. Saidel wasn't available for comment on the move, but during the test she said: "We're seeing if kids like it and are choosing more fruit as a result. Does it make a difference in kids choosing to eat lunch, or which meals they eat? And we're testing to see if they actually take the fruit and eat it—we're actually measuring for impact."

 
Aramark: Three years ago the third of the industry's Big Three began a comprehensive project to research what kinds of things would encourage older students to stay in their schools and eat lunch instead of exercising the "open-campus" option that allows them to leave the grounds for awhile and eat fast food somewhere.

In answer, Aramark developed two entire new dining brands with which to lure and keep kids eating at school, including a big component of more healthful menus. The 12 Spot is Aramark's brand for middle-school kids, and the U.B.U. Lounge is the brand for high-schoolers.

For each, Aramark provides a variety of menu items that retain tastes kids enjoy but which also include some new component that boosts their nutritional value as well. For example, yogurt parfait is a new entry, as is chicken Caesar salad and spinach salad. There's also a special emphasis on grab-and-go merchandising so students can get through the line quickly.

"We wanted to create a refuge for them during the very short period that they get for lunch, usually under 30 minutes," Dixon says. "Kids at this age are trying to figure out who they are and are getting ready to go to college. This is a place where they can come and be themselves—but that will give them nutritious items too, and quickly."

The U.B.U. Lounge in each high school is actually that: a space decked out with environmental touches such as couches, special paint, and lighting, even overhead music—à la Starbucks outlets that so many teenagers gravitate to after school.

Students have responded very positively. Dixon says that meal participation has increased from 10 percent to 45 percent in the 150 school districts so far where the 12 Spot and U.B.U. Lounge have been broadly implemented. In its third year of rolling out the concepts, this school year Aramark is reaching about the last of the 400 total school districts that it serves across the United States.

East Side Entrees: Breakfast consumption in schools is way below that of lunch, yet the federal government is encouraging more with subsidies. So Woodbury, New York-based entrepreneur Gary Davis created a grab-and-go kit called Breakfast Breaks that packages various combinations of brand entities already well known to kids and their parents. Each Breakfast Break contains a single-serving package of a favorite kids' breakfast brand, such as Cheerios cereal or Pepperidge Farm Goldfish crackers, as well as Minute Maid juice and another bread- or grain-based treat, and either a serving of shelf-stable milk or milk served on the side. They come in seven different menu varieties and four different packages.

Davis's East Side Entrees company expects this year to reach $100 million in annualized sales of Breakfast Breaks, which are purchased by the US government and school districts for distribution to school kids.

"We make sure we work with the best brands in each category, because they drive the sales," says Amy Josephson, vice president of marketing. "Usually kids make their decisions about which Breakfast Breaks kit they want based on the cereal that is included."

So successful has the company been in creating a brand around the Breakfast Breaks phenomenon, in fact, that it also has introduced Meal Breaks, meant to penetrate the lunchtime school business. The popularity of Breakfast Breaks has helped lure other big brands into the school-breakfast marketplace, such as Kellogg's, which has introduced a breakfast box called Morning Jump-Starts.

Juice Stop: Made-to-order fruit smoothies are increasingly popular with high-school kids. As their off-campus availability increases through the growth of major chains including Jamba Juice, Planet Smoothie, and Smoothie King, some brands and their franchisees are spying opportunities to provide smoothies in schools as well. School officials are only too happy to consider the idea because of the sterling nutritional value most of the beverages offer.

A franchisee of Juice Stop, for example, a Denver-based chain with 43 units so far, is talking with administrators in Nebraska about setting up a branded outlet on the campus of one of the state's largest public high schools. Already, some Juice Stop franchisees accept faxed orders from school cafeterias and then bring the drinks to campus.

"This is a big push lately for some of our store owners," says Will Glennie, president of Juice Stop. "They recognize the opportunity to expand our sales demographic, and the kids love having a smoothie brand that they know from the local store available during the school day."

Sodexho: Sodexho may be the most aggressive of the Big Three at adapting and deploying outside brands to increase its share of kids' stomachs. Besides Fizzy Fruit, it also is purchasing Breakfast Breaks for distribution in many of its accounts.

"They're fast, easy, and convenient," Callahan says. "And they're in a cute package that's attractive to [elementary-school] kids. We can distribute these anywhere from the traditional cafeteria settings, to hallways, or even in classrooms."

At the same time, Sodexho is home-growing some brands. Its new cafeteria brand is Crossroads Cafe. New signage at each school has been erected, giving local managers flexibility to use school colors—or at least avoid using a key rival's. Menu boards and other signs bear the Crossroads Cafe logos.

Under the new brand banner, Sodexho is trying to pull off the very difficult dual trick of fielding much more healthful fare—but doing as much as possible at the cost level of the federal subsidies that are supposed to make nutritious school lunches available to students at all income levels. It's in attempting this feat that company executives realize the tremendous hold that fast food and consumer packaged goods (CPG) brands have on young consumers.

"Some say you've got a captive audience in the schools, so you ought to be able to do well," says Steve Cooney, Sodexho's national executive chef for school services. "But my captive audience will expect to get in our cafeteria, for $2, what they get down the street for $6."

So, in trying various approaches, food, beverage, and foodservice brands are making significant inroads in the previously foreboding environment of the school cafeteria. And they're doing so by not only working around but also, in some cases, leveraging the simultaneous trend toward healthier fare on campus.

It is emerging as a case where strong branding helps achieve goals that are as socially desirable as they are commercially beneficial.

    

[9-Apr-2007]

 
  
  

Dale Buss is a journalist and editorial consultant in Rochester Hills, Michigan. He's a former reporter for The Wall Street Journal and writes about marketing and branding for a variety of publications.

     
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