PUBLISHED DATE: 2025-08-25 08:40:23
Digital Food & Beverage: Rethinking eCommerce Strategies and Driving Success with Data Post-COVID-19
Contents
- Methodology
- Order Fulfilment and its Role in the eGrocery Supply Chain, by AutoStore - The Cube Storage Pioneers
- How Food and Beverage Brands are Turning Data into a Strategic Advantage, by Scott Clarke, Vice President, Consumer Products Industry Lead, Publicis Sapient
- Part One – Strategic Priorities in 2021
- Part Two – Driving Success with Data Post-COVID-19
- Part Three – Re-thinking Your eCommerce Strategy
- Conclusion
- About Publicis Sapient
- About WBR Insights
Contributors
- Scott Clarke, Vice President, Consumer Products Industry Lead, Publicis Sapient
- Catarina Molin Österlund, Head of eCommerce, Arla Foods Sweden
- Simon James, Data & AI Capability Lead, EMEA/APAC, Publicis Sapient
- Omer Waysman, Director, Global eCommerce & Business Development, Danone
- Tom Webber, Conference Director, Digital Food & Beverage 2021
Methodology
In Q2 of 2021, WBR Insights surveyed 100 Directors of Marketing, eCommerce, and similar roles from organisations across Europe to understand the challenges faced in 2021 due to the impact of the COVID-19 pandemic and the innovative solutions being implemented. The survey was conducted by appointment over the telephone. Results were compiled and anonymised by WBR Insights and are presented here with analysis and commentary by AutoStore System, Publicis Sapient, and the Digital Food and Beverage community.
Respondents’ Company Headquarters
- UK: 32%
- France: 12%
- Germany: 12%
- The Netherlands: 12%
- USA: 12%
- Switzerland: 11%
- Belgium: 9%
Job Titles
- VP/Director/Head of eCommerce: 20%
- VP/Director/Head of Marketing: 20%
- VP/Director/Head of Media and Digital Acceleration: 20%
- VP/Director/Head of IT: 19%
- VP/Director/Head of Digital & Data: 11%
- VP/Director/Head of Innovation: 10%
Organisation Types
- Food and beverage brands: 20%
- Challenger food and beverage brands: 20%
- Grocery retailers: 20%
- Online grocery retailers: 20%
- Online marketplace: 10%
- Food delivery aggregators: 10%
How Food and Beverage Brands are Turning Data into a Strategic Advantage
Part One: Strategic Priorities in 2021
COVID-19 has disrupted supply and delivery chains, forced customers from restaurants and bars, and left food and beverage marketers struggling to promote products that often rely on in-person sampling. However, the vaccine rollout and a gradual transition to economic recovery are creating opportunities in the wake of the pandemic.
Before the pandemic, food and beverage brands were prioritising health-based products, which saw a rise in demand. From vegan, plant-based, or free-from, to high-protein and immune-boosting, heads of marketing are still prioritising these product ranges post-COVID-19.
Recent lockdowns and restrictions have fuelled a market for comfort and convenience foods, driving demand for snacks, sweets, and alcohol. With international travel stalled, there has been a rise in demand for ‘world food’, and marketers are tapping into this trend by offering customers a taste of what they might enjoy on holiday.
According to respondents, the top three marketing and advertising tools being used post-COVID-19 are data analytics, Google Ads, and social media ads. Forums, geo-gating mobile data, and digital/programmatic ads will be key areas of investment in the next two years.
The majority of organisations are focusing on using technology to reduce risk as margins become tighter. The main challenges faced are maintaining seamless delivery systems and providing real-time tracking and customer service. 51% of respondents said the biggest challenge when implementing new technology is the lack of engagement and understanding of how solutions will translate to their organisation.
Increasing digital capabilities for all internal functions is the main priority this year. Other priorities include using technology at processing plants and employing inventory management and procurement technologies to reduce the risk of delays or financial loss. Automation technology—such as robotics, IoT, AI, and big data—is enabling organisations to automate more manual procedures during production and processing. Brands are also investing in customer experience and applying comprehensive data analysis techniques for decision-making.
Technology is also being used to establish and maintain public confidence in product origin and safety standards, from keeping workers safe to digital expiration date labels and real-time monitoring, providing transparency to reassure consumers.
Marketing and Advertising Tools: Current Use and Planned Investment
- User-generated content: Using now 70%, planning to invest 30%
- Videos: Using now 83%, planning to invest 17%
- Reviews: Using now 87%, planning to invest 13%
- Blogs: Using now 62%, planning to invest 38%
- Forums: Using now 36%, planning to invest 64%
- Data analytics: Using now 100%, planning to invest 0%
- Email marketing: Using now 79%, planning to invest 21%
- Affiliate marketing: Using now 67%, planning to invest 33%
- Influencer marketing: Using now 78%, planning to invest 22%
- Loyalty schemes: Using now 62%, planning to invest 38%
- Omnichannel: Using now 69%, planning to invest 31%
- Geo-gating mobile data: Using now 42%, planning to invest 58%
- Organic search listings: Using now 82%, planning to invest 18%
- Google Ads: Using now 90%, planning to invest 10%
- Digital/programmatic ads: Using now 60%, planning to invest 40%
- Social media ads: Using now 88%, planning to invest 12%
- Print ads: Using now 71%, planning to invest 29%
- Broadcast ads: Using now 66%, planning to invest 34%
Expert Commentary:
- Omer Wugsman (Danone): Surprised not to see more precision marketing; personalisation is key to avoid overwhelming consumers.
- Catarina Molin Österlund (Arla Foods Sweden): Targeted communications and relevant messaging are vital in an oversaturated market.
- Tom Webber (Digital Food & Beverage 2021): Brands are shifting investment to social media while still investing in traditional media, but new channels are gaining ground.
Challenges in Implementing New Technology
- Lack of engagement/understanding: 51%
- Lack of evidencing ROI: 45%
- Regulation risk: 38%
- Data management risk: 36%
- Organisation structure: 34%
- Lack of specially trained staff/knowledge: 30%
- Company culture: 27%
- Legacy IT infrastructure: 22%
- C-suite buy-in: 17%
Expert Commentary:
- Catarina Molin Österlund: Building digital and eCommerce understanding and securing top-down buy-in is essential. eCommerce is challenging traditional structures and requires cross-disciplinary responsibility.
- Omer Wugsman: Large, established companies need agile frameworks to work with start-ups and accelerate innovation.
- Tom Webber: Buy-in is less of a challenge for these respondents, but better integration processes are needed for faster adoption.
How Organisations are Using Technology to Reduce Risk
- Using AI and data to enhance retention and margins
- Automation and robotics at processing plants for efficiency
- Cloud and digital services to enhance customer experience and delivery speed
- Inventory management and procurement technologies to reduce delays and financial loss
- Data analysis for decision-making as margins tighten
- Optimising online shopping processes to compete with larger companies
- Maintaining seamless delivery systems and real-time tracking
- Automating manual procedures and using AI to understand demand trends
- Enhancing packaging technology and aiming for further automation
Expert Commentary:
- Simon James (Publicis Sapient): Data helps optimise existing activity and drive innovation. Machine learning reveals opportunities for efficiency and sustainability.
- Omer Wugsman: Data collection must be paired with analysis and a clear roadmap. Website optimisation and consumer engagement are key.
- Tom Webber: Cross-functional collaboration is needed for faster, more agile adoption of automation and data technologies.
Part Two: Driving Success with Data Post-COVID-19
Food and beverage brands are using first-party data assets to create deeper, more engaged experiences, accelerate product innovation, and personalise consumer engagement. The top three data-driven use cases are analysing product/customer data using AI, predicting consumer demand, and analysing usage data. The main challenges are achieving a 360-degree view of consumers (40%), evidencing ROI (52%), and concern over data privacy and regulation (43%).
Brands are investing in software for a holistic product lifecycle view and using descriptive and prescriptive analytics for decision-making. ERP systems help identify hidden business opportunities and eliminate underperforming products. AI, ML, and IoT are the most important technologies for the next three years.
With traditional sampling and demos limited by COVID-19, brands are exploring live streams, AR/VR experiences, and digital-first conventions. Consumer experience, data analytics/data science, and direct-to-consumer (DTC) business models have seen the largest investment changes in FY21.
Investment Areas in FY21 (as a result of COVID-19 pivot)
- Direct-to-consumer (DTC) business model and platform: 29%
- Consumer experience: 28%
- Data analytics/data science: 21%
Expert Commentary:
- Omer Wagsman: Brands must understand the DTC channel’s role and master the consumer experience from acquisition to delivery.
- Tom Webber: Data capture and DTC platforms are key for understanding and designing consumer experiences. Partnerships and supply chain management are also growing areas.
- Catarina Molin Österlund: Data analytics must be integrated with insights and activities to provide value.
Data-Driven Use Cases
- Analyse product/customer data using AI: 62%
- Predict consumer demand: 50%
- Analyse usage data: 46%
- Use NLP for customer service insights: 44%
- Predict best channel for high response: 43%
- Smart packaging: 42%
- Predict propensity to accept offers: 41%
- Acquire/enrich first-party data: 32%
- Automate customer service with chatbots: 31%
- Use blockchain for configuration data: 25%
- Use IoT for product/customer usage data: 18%
Expert Commentary:
- Simon James: First-party data is becoming a common currency; not investing in it risks being left behind.
- Omer Wugsman: Analysing customer data is crucial for personalisation, especially in a cookieless future.
- Tom Webber: Data quality is a key differentiator; IoT adoption will increase as voice assistants become more common.
Challenges in Using Data for Profitable Decisions
- Getting a 360-degree view of the customer: 40% very challenging
- Expectation of ROI: 52% challenging
- Concern over data privacy and regulation: 43% very challenging
- Lack of data/intelligence skills: 44% challenging
- Lack of a clear roadmap: 41% very challenging
- Lack of culture for change: 47% challenging
- Executive sponsorship/leadership: 47% challenging
- Trust in data quality: 44% challenging
- Clear commercial benefits: 51% challenging
Expert Commentary:
- Simon James: Focus on collecting only the data that adds value, not everything about a customer.
- Omer Wugsman: Omnichannel approaches (loyalty cards, memberships) help bridge online and offline data for better ROI.
- Tom Webber: Data privacy and regulation are increasingly challenging, but organisations have C-level support and clear roadmaps.
Personalised Experiences Investment
- Personalised offers: 48%
- Personalised content: 40%
- Personalised recommendation engine: 38%
- Personalised product offerings: 38%
- Personalised advertising: 36%
- Personalised services/experiences: 32%
- Personalised bundles: 29%
- Personalised search: 21%
Expert Commentary:
- Simon James: Personalisation must be scaled to justify complexity; it is a means to an end.
- Omer Wugsman: Precision marketing and a reliable database are essential for effective personalisation.
- Tom Webber: Personalised offers are proven to attract customers; personalised search may grow in importance.
- Catarina Molin Österlund: Investment in personalisation is expected to grow, as relevant messaging is key to breaking through the noise.
Importance of New Technologies in the Next 3 Years
- Machine Learning: 27% very important
- AI: 20% very important
- Internet of Things: 14% very important
- Voice recognition: 13% very important
- Blockchain: 6% very important
- AR/VR: 4-6% very important
- Robotics: 4% very important
- Cryptocurrency: 1% very important
- Quantum computing: 0% very important
Expert Commentary:
- Omer Wagsman: AI is not yet mature for FMCG, but voice recognition and IoT will gain importance.
- Tom Webber: Automation, ML, and AI are increasingly important; IoT and voice assistance will become more integrated.
- Catarina Molin Österlund: AI is widely used for personalisation and targeted marketing; personalisation is a common thread throughout the report.
Part Three: Re-thinking Your eCommerce Strategy
COVID-19 has accelerated the shift to eCommerce and online transactions, with many consumers indicating they will continue to rely on digital ordering and delivery. Food and beverage organisations must optimise time, resources, and information management to reduce waste and improve delivery quality.
Generating ROI from eCommerce strategies is challenging, as campaigns take time to resonate with target audiences. 50% of respondents have a very complex or somewhat complex customer journey. Traditional metrics like retention, loyalty points, and profitability are harder to use post-COVID-19.
Mapping customer journeys and activities helps determine eCommerce campaign efficiency. There is a strong emphasis on personalisation, product suggestions, and recommendations to improve basket size. Organisations are analysing website navigation, valuable clicks, and suggestions that result in sales.
Maintaining long-term customer relationships is key, with retention rates and cart value consistency included in ROI measurement. Some organisations analyse data and shopping trends to develop eCommerce strategies, measuring ROI by spending, budget allocations, and expected gains. For organisations with multiple product categories, ROI is determined by spending per category. Those with multiple marketing strategies focus on conversion rates.
Brands can improve eCommerce marketing ROI by using first- and third-party data for robust targeting, ensuring advertising remains relevant. Automation, machine learning, and personalisation enhance digital marketing performance.
Corporate social responsibility (CSR) is increasingly important. Customers are interested in ingredient sourcing, production processes, and are willing to pay a premium for authenticity and sustainability. Health and wellness, reducing CO₂ emissions, and equal opportunities are the top three ESG areas important for driving consumer engagement. Waste reduction, regenerative farming, recycling, biodiversity, and organic production are key concepts for the future.
ESG Areas Important for Consumer Engagement
- Health and wellness: 62% very important
- Equal opportunities: 44% very important
- Vegan: 42% very important
- Sustainable business practices: 35% very important
- Zero waste: 27% very important
- Fairtrade practices: 36% very important
- Human slavery/trafficking: 30% very important
- Responsible sourcing: 37% very important
- Reduce CO₂ emissions: 29% very important
Expert Commentary:
- Omer Wagsman: CSR is in Danone’s DNA; eco-friendly packaging, reduced carbon emissions, and health/wellness are key priorities.
- Tom Webber: Sustainability is a top corporate agenda item; connecting eCommerce and consumer behaviour data to sustainability goals is a competitive differentiator.
- Catarina Molin Österlund: Reducing CO₂ emissions and health/wellness are extremely important to customers.
Customer Journey Complexity
- Not complex: 6%
- Somewhat complex: 50%
- Very complex: 44%
Expert Commentary:
- Omer Wagsman: Customer journey complexity varies by industry and price point.
- Tom Webber: Organisations must decide which in-store experiences to replicate online; complexity can be managed by treating eCommerce as a distinct experience.
- Catarina Molin Österlund: The customer journey is complex, especially with many digital and physical touchpoints; understanding it is essential for sales and engagement.
Conclusion
COVID-19 has brought health and safety to the forefront for food and beverage brands, creating opportunities to offer products with health and immunity-boosting content. Transparency in supply chain, manufacturing, packaging, and delivery, and tying products to customer health are key to post-pandemic success.
Most organisations are using technology to reduce risk as margins tighten, employing AI, data management, cloud, and digital services to enhance customer experience, inventory management, procurement, and online processes. Investment in personalised experiences is a high priority, with AI, ML, and IoT as key technologies for the next three years. However, 51% of respondents cite lack of engagement and understanding as the biggest challenge in implementing new technology.
Consumer experience, data analytics/data science, and DTC business models are seeing increased investment. Key challenges include achieving a 360-degree customer view, ROI expectations, and data privacy concerns. As online sales continue to drive revenue, organisations must optimise resources and closely monitor eCommerce ROI, considering customer retention, spending, budget allocations, and conversion rates.
Increased focus on ethical and sustainable practices is evident, with health and wellness, reducing CO₂ emissions, and equal opportunities as top priorities for driving consumer engagement.
About Publicis Sapient
Publicis Sapient is a digital transformation partner helping established organisations reach their digitally-enabled future, both in how they work and serve customers. With 16,000 people and 53 offices globally, Publicis Sapient fuses strategy, consulting, customer experience, agile engineering, and creativity to accelerate clients’ businesses. For more information, visit publicissapient.com
About WBR Insights
WBR Insights uses research-based content to drive conversations, share insights, and deliver results. They connect with high-level decision-makers in Europe and Asia across industries including Retail & eCommerce, Supply Chain & Procurement, and Finance. WBR Insights offers whitepapers, benchmarking reports, infographics, and webinars to inform and educate readers and help reach marketing goals.
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