Nestlé R&D Exploring New Functional Beverage

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Project Iris' Mind Fuel Concept

In what appears to be a strategic move to expand its functional beverage portfolio, Nestlé's Research and Development arm is testing consumer interest in a new brain health drink called Mind Fuel. The beverage concept, which promises "instant effect" on mental performance, is being marketed through targeted social media campaigns under the Project Iris brand.

Market Research

Market research efforts spotted on Instagram reveal Nestlé's careful approach to understanding consumer preferences in the rapidly growing functional beverage space. Through sponsored content, the company is gauging potential target demographics with survey questions focused on current consumption habits of focus and energy-enhancing products, as well as exploring purchase intent across different consumer segments, including personal use, family members, and friends.

This exploration comes on the heels of Nestlé's recent launch of Unwell, a hydration-focused beverage created in partnership with Alex Cooper, host of the popular "Call Her Daddy" podcast. The Unwell launch demonstrates Nestlé's renewed focus on leveraging talent-led partnerships to reach younger consumers, a strategy that has proven successful for numerous brands in recent years.

Timing

The timing of Mind Fuel's market research suggests Nestlé is strategically positioning itself to compete in the mental wellness beverage category, a segment that is seeing substantial growth as consumers increasingly seek functional benefits from their beverages. All while leading gut health beverages like Poppi and Olipop lean more into taste. The product's emphasis on "instant effect" indicates potential positioning as a premium functional drink targeting consumers looking for immediate cognitive benefits.

Industry experts note this move could signal Nestlé's broader ambitions in the functional beverage space.

"With the success of brands like Liquid Death and Prime in capturing market share through distinctive marketing and talent partnerships, Nestlé appears to be laying the groundwork for a significant play in the mental wellness category." says Bruce Cardenas, brand builder, and industry expert at Bruce Cardenas Consulting

However, unlike the Unwell launch, the Mind Fuel testing phase focuses on consumer insights before potential talent partnerships. This suggests Nestlé may be planning a different go-to-market strategy for Mind Fuel, possibly positioning it as a more scientifically-backed offering leveraging the company's R&D expertise.

My Prediction

I wouldn't be surprised if Nestle created The Podcast Avengers and gave someone the likes Joe Rogan or Andrew Huberman the nod, even though they have ties to beverage brands already.

Conclusion

The 300ml functional drink's development under Nestlé's R&D division, rather than through its traditional beverage business units, could indicate a more innovation-driven approach focusing on verified functional benefits rather than purely lifestyle marketing.

As the functional beverage market continues to evolve, Mind Fuel's development represents a significant step in Nestlé's strategy to capture share in emerging beverage categories. Whether the company will pursue another talent-led partnership or take a more science-based marketing approach (or both!) remains to be seen. Still, the move signals Nestlé's intention to be a serious player in the mental wellness beverage segment.

Game on! 

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