CPG companies are testing NFTs.
Food and beverage companies are venturing into the non-fungible token (NFT) market; CPG behemoths like Campbell Soup Co. and The Coca-Cola Co. are testing the virtual waters alongside startups and up-and-coming brands.
NFTs are unique digital assets that lack a physical form but may be bought and sold just like any other kind of personal property. NFTs are generated on a blockchain, a type of digital record, just like cryptocurrencies. NFTs are created as tokens, a kind of certificate of ownership, and collectors buy them through online marketplaces such as OpenSea. Virtual goods such as artwork, music, photos, tweets, essays, memes, and more can all be created as NFTs, which are digital assets whose ownership records cannot be changed or erased.
Food and beverage firms can use NFTs to promote their brands, engage customers, and build awareness, even though they cannot profit from selling virtual replicas of their items.
Making NFTs
Some brands are using NFTs to raise capital during their pre-launch period. Others are using them to raise money for charity. Campbell Soup Co. commemorated a redesign of its iconic soup can with NFT art pieces, donating the proceeds to Feeding America. The Coca-Cola Co. recreated nostalgic advertising images, like trading cards and vintage coolers, as NFTs to raise money for Special Olympics International.
Protein cookie brand Love + Chew on March 8 launched its first NFT project to celebrate International Women’s Day. Lauren Chew, founder and chief executive officer, teamed up with artist Fatemeh Monfared to create the collection. Funds from the project will go to Oasis for Girls, a nonprofit providing resources to girls from underserved communities.
“We’re a female-focused brand and our demographic is heavily millennials,” Ms. Chew said. “Many of them have probably heard what NFTs are but don’t necessarily know what to do with them. My goal is to create interest in the space and get more women involved.”
Mid-Day Squares is taking a creative approach to its first NFT project, using digital images to mark an important moment in the brand’s journey.
After declining an offer from The Hershey Co. to purchase the brand last summer, Mid-Day Squares was served a cease-and-desist over the use of the color orange on its packaging. Co-founders Nick Saltarelli, Lezlie Karls and Jake Karls responded with a diss track and an accompanying music video.
“We felt it would be a shame to see the music video just sizzle away, so we knew we needed to put effort into its distribution,” Mr. Saltarelli stated. “NFT initiatives were already requested by our community. They were leaving demands in our comments on a regular basis. Then it dawned on us, “Why don’t we actually let our fans own this music video alongside us?”
Using 600 minutes from the video, Mid-Day Squares created original graphics that could be marketed as NFTs. To further accentuate the exclusivity, several behind-the-scenes photos were also provided.Memorabilia and the capacity for collection are two areas where NFTs have been demonstrated to have a clear use case, according to Mr. Saltarelli. Individuals gather Coca-Cola cans fromthe 1950s or souvenirs from their childhood chocolate brands of choice. Such potential to produce items for our customers are made possible by NFTs.
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Connecting a service
The founder and CEO of Dream Pops, David Greenfeld, stated that there is no predetermined strategy for CPG companies wishing to enter the NFT market. The business debuted an online candy and ice cream store last year with graphic imagery that was inspired by its plant-based ice cream bars.
Mr. Greenfeld remarked, “I’m not sure if I’ve seen what I think is the ‘correct’ application for CPGs.” “I just wanted to make sure we were getting our hands dirty and that we knew how to do it when we minted our first collection.”According to him, there are ways to give NFTs value in the form of coupons, freebies, or other benefits.
“We’re working on creating something that will better serve our loyal customers—those who desire access to new products and limited-time offers, as well as the next level of community,” Mr. Greenfeld stated. “You could use NFTs for a loyalty or discount code scheme. Perhaps if you buy a Dream Pops NFT, you’ll receive access to exclusive events or 50% off of anything you buy. I’m now thinking in that direction.
Love + Chew is collaborating with a technology that enables businesses to produce NFTs as incentives. To earn points and finally get a free NFT, fans can accomplish tasks like following the brand on TikTok or sharing a selfie with a cookie.Additionally, Ms. Chew is adding usefulness to the digital cookies that can be found on AccessSea.
According to her, “some of the NFTs are actual cookie flavors that we offer, and some of them are potential flavors that are in the works.” “In Q2, one of those flavors—peanut butter chocolate chip—will be available. The first individual to test the product will be the one who purchases that entity. From the initial production run, they will receive the first cookie. A few companies will include a one-year membership, which will enable you to receive our cookies via mail each month.
She went on to say that the research might help decide what flavors Love + Chew explores next.Ms. Chew stated, “I might be able to do some market research with this.” Since I’m introducing a number of flavors that aren’t available yet, I’ll be quite curious.
VHS tapes are the tangible memorabilia that Mid-Day Squares is attaching to its NFTs. A tape with a copy of the music video and the NFT artwork on the cover will be given to fans who buy or win an NFT.
Mr. Saltarelli stated, “We didn’t want this to just be digital.” In 20 years, if Mid-Day Squares has been able to achieve our goals, that will make for an amazing piece of memorabilia that people will cherish. Additionally, you will only be able to validate your VHS by demonstrating your ownership of the token.The project’s earnings will be used by the business to support upcoming events for its expanding community. Paying for travel to bring together all of the NFT holders in one place is one idea.
“This race to create currency among brands is where I see this developing and what excites me greatly,” Mr. Saltarelli remarked. “You can establish a treasury source for your company to enable you to fund numerous amazing value-added services or experiences that you can provide to your customers.”