The domestic and international confectionery and beverage industries are putting all their efforts into marketing by collaborating with diverse corporations. It appears to be a strategy aimed at winning the hearts of the 2030 generation, which is the core consumer base and a foundation for long-term growth, and improving performance.
According to related industries on the 23rd, the chocolate brand "KitKat" of Nestlé, the world's largest food corporation based in Switzerland, signed an official sponsorship contract with Formula 1 (F1) last November. During the 2025-2028 seasons, KitKat will not only sell the official F1 chocolate bar at the events but also display KitKat advertisements and events at the racetracks and pit lanes. The F1 brand will also appear on the chocolate packaging, and Nestlé plans to provide hundreds of racing tickets to consumers.
This year is particularly significant as it marks the 90th anniversary of KitKat and the 75th anniversary of F1, so there are plans for the most intensive promotions during the sponsorship period. Media outlets like Reuters have noted that Laurent Freixe, the new CEO of Nestlé who took office last August, is making new attempts to change brand marketing strategies worth billions of dollars. Reuters reported, "This is the first time in the 160-year history of the world’s largest food company that Nestlé has entered into a global marketing contract."
Coca-Cola and Malbon Golf released limited editions twice in 2023 and 2024. After seeing favorable consumer responses to the first collaborative product launched in 2023, they proceeded with another collaboration the following year. The offerings ranged from everyday wear such as jackets, hooded sweatshirts, and short-sleeve t-shirts to golf products, including stand bags, towels, shoe bags, and ball markers. As the products quickly sold out domestically, some consumers even resorted to purchasing directly from U.S. sites.
In Korea, Haitai Confectionery & Foods partnered with Samsung Electronics last November. They released a "Galaxy Buds3/Buds3 Pro case" featuring packages of Haitai's representative products, "Ace" and "Oh Yes." Haitai also collaborated with power bank manufacturer Minniduct to showcase a MagSafe power bank that replicates the design of the Oh Yes packaging.
Collaborations between the confectionery and beverage industries and diverse corporations emerged as a way for industries that suffered significant blows during the COVID-19 pandemic to seek a way forward. The confectionery and beverage industry has been facing crises since the 2000s as a global wellness trend took hold. This is largely due to the widespread perception that confectionery and beverages are major contributors to obesity and diabetes.
For instance, the sugar tax, which taxes sugary products, is imposed in over 80 countries worldwide. In some U.S. states, as well as in Mexico, Chile, Peru, and Europe including the United Kingdom, Norway, Hungary, Finland, and Italy, and in Asia such as Thailand, the Philippines, and Malaysia, sugar taxes are levied.
In response, confectionery and beverage companies are striving to strengthen their portfolios. As Nestlé's North American sales declined, the corporation reorganized its confectionery division in 2017 and has since been focused on developing health-oriented products. Nestlé has stated intentions to boost sales of health-beneficial products to $27.3 billion by 2030. PepsiCo is also expanding its portfolio by enhancing its snack and food segments in addition to beverages.
In the same context, confectionery and beverage companies faced another blow during the COVID-19 pandemic. As pubs and fast-food restaurants were unable to open or saw a drop in customers, revenues for confectionery and beverage companies inevitably fell. Companies in this sector find themselves in a position where they must strive to capture the hearts of the 2030 generation, the core consumer base and key future customers.
In fact, Malbon Golf, which partnered with Coca-Cola, is a newly established brand founded in 2019 in the United States. To target Generation MZ consumers, they utilize a character named "Buckets," which features a golf ball wearing a hat, in every season. For Coca-Cola, partnering with Malbon Golf was advantageous for enhancing a fresh and youthful image. Nestlé also stated regarding the F1 sponsorship contract that it aims to "expand the global impact of KitKat and appeal to consumers under 30."