.png)
he food and beverage industry is transforming at an incredible pace, as digital advancements, changing consumer habits, and heightened competition define the way brands interact with their customers. By 2025, success will hinge on the ability to ride the latest marketing strategies that integrate online interaction with in-store sales. Those brands that remain ahead of the curve will deliver greater conversions, enhance retail alliances, and build stronger brand affinity.
AI is revolutionizing marketing by discovering consumer behavior, preferences, and purchasing patterns to deliver hyper-personalized experiences. Through the analysis of large amounts of data in real time, AI can determine what a customer is most likely to buy next, allowing brands to personalize recommendations, offers, and messaging. AI-powered chatbots and virtual assistants optimize customer interactions by providing instant assistance, answering questions, and leading users through the purchase process. Brands are leveraging AI to:
- Suggest products based on buy history and taste profiles
- Tailor promotions to individual shoppers in real time
- Target ads to reach the right person at the right time
For instance, Coca-Cola's AI-driven vending machines recommend beverage pairings based on past orders, promoting customer interaction. Likewise, Starbucks' AI-powered rewards platform uses individual buying patterns to offer targeted recommendations, raising customer retention and repeat business.
Look for AI-powered chatbots, automatic recipe recommendations, and AI-facilitated product packages to be the new norms.
Retail stores are no longer just points of sale; they’re interactive brand experiences. Brands are using touchscreen displays, augmented reality (AR), and QR codes to engage shoppers in-store.
These technologies create immersive shopping experiences that encourage product exploration, boost engagement, and drive purchasing decisions.
Examples include:
- Kraft Heinz’s AR Recipe Finder: Scans ingredients in a shopper’s cart and suggests recipes using those items.
- Pepsi’s Interactive Vending Machines: Allow consumers to customize drinks and even leave personalized messages for friends.
- Nestlé's Virtual Coffee Tasting Stations: Allow consumers to taste flavors before they buy.
- By creating interesting, interactive experiences, brands can drive dwell time, enhance discovery, and lift in-store conversion.
With grocery online shopping becoming the new norm, brands must optimize their presence on channels such as Instacart, DoorDash, and Uber Eats to stay competitive. Sponsored product placements, in-app promotions, and strategic bundling with complementary items can help brands increase visibility and drive impulse purchases.
- Sponsored product placements to show up at the top of search lists
- In-app deals and discounts to trigger impulse buying
- Cross-category bundling, for example, pairing sauce with pasta or drink with snacks
For example, Ben & Jerry's collaborated with Uber Eats for a nighttime ice cream delivery promotion, driving a 40% boost in orders post-9 PM.
Companies that perfect on-demand grocery partnerships will achieve coveted digital shelf space and grow more sales.
Consumers trust word-of-mouth accounts from other customers more than mainstream advertising. User-generated content (UGC) induces a credibility and relatability that is beyond the control of brands. Crafted's drive-to-retail marketing platform uses this trust to convert high-quality UGC inhttps://www.usecrafted.com/blog/the-evolution-of-digital-marketing-embracing-ugc-and-micro-influencers-in-2024to quantifiable in-store sales, closing the loop between online behavior and offline shopping.
Here's how:
- Influencers and everyday customers create content featuring products in authentic moments
- Crafted's platform connects that content to retail availability, fueling in-store traffic
- Brands measure the effect of UGC in terms of sales increase and foot traffic
Example: A fitness influencer posting a post-workout smoothie made with a branded protein powder with a CTA such as "Grab yours at Target today!" is more effective than a standard ad.
By connecting digital interaction with store influence, brands can convert social chatter into actual sales.
Today's consumers want instant savings hassle-free. Instant rebates and digital coupons are a game remover, easing the shopping process and enhancing availability of promotions. With digital rebate programs embedded through mobile apps, QR codes, and SMS promotions, companies can deliver smooth, instant-on savings that promote fast purchases.
For instance, scannable QR codes during checkout enable customers to redeem cashback rewards in real time, while tailored discounts delivered by email or SMS can encourage repeat shopping. Even brands employ AI-based rebate platforms that modify offers in accordance with a consumer's buying patterns so they get pertinent offers.
Effective tactics are:
- QR code rebates that shoppers scan at the point of sale
- Cashback rewards through text or app alerts
- Triggered discounts based on previous purchases
General Mills rolled out a digital rebate program on Venmo, where customers could receive cashback instantly following the buying of cereals. This boosted in-store purchases by 18%.
Through delivering fast, seamless rewards, brands can drive conversions and capture first-party consumer data.
Micro and nano influencers (influencers with 1,000-50,000 highly engaged followers) now hold more sway than stars. Their content seems more genuine, real, and believable, resulting in greater engagement and deeper connections with the audience.
Brands are leveraging local creatives to:
- Host neighborhood events such as pop-up tastings, food truck festivals, or cooking demonstrations
- Highlight nearby food bloggers that will drive customers to individual stores
- Tap into actual, genuine content that is felt as relatable and credible
A craft brewery engaging local musicians to play at brewery nights not only drives foot traffic but also reinforces brand loyalty.
Through investing in influencer marketing with a focus on community, brands can establish grassroots word-of-mouth buzz.
Instead of flushing ad budgets against mass demographics, brands are geofencing online ads to reach consumers near store locations. With this approach, promotions are going directly to the most likely buyers who will purchase in the next immediate period. Brands leverage real-time location to deliver targeted offers, driving store traffic and in-store conversions.
Successful hyper-local media strategies are:
- Geo-targeted Facebook & Instagram advertisements that display offers only to customers within a radius of a specific store
- Google Ads that display when a user searches for nearby grocery stores
- Waze advertisements guiding drivers to special in-store deals
A beverage company launching Instagram ads that state "Buy One, Get One Free – Only at 7-Eleven Today!" close to convenience store locations.
Such precision targeting has the highest ROI and drives maximum immediate purchase intent.
TikTok is revolutionizing e-commerce and food & beverage brands are leveraging its highly interactive, video-centric platform to drive sales and awareness. Brands can easily convert engagement into conversions through viral recipe challenges, interactive live shopping, and collaborations with influencers.
- Viral recipe challenges with their products
- Limited-time exclusive product releases
- Smooth in-app buying with TikTok Shop
Chamberlain Coffee's TikTok Shop approach includes influencer-led content highlighting various brewing methods for their coffee, resulting in hours-long sold-out product launches. By incorporating social commerce into their marketing mix, brands can convert engagement into direct sales.
Packaging is being made smarter by brands to take the consumer experience past the point of purchase, converting an ordinary product into an experience. Smart solutions for packaging include QR codes, NFC tags, and augmented reality (AR) features that enable consumers to read exclusive content, customized offers, and brand histories in a click.
Examples are:
- QR codes that unlock special recipes, rewards for loyalty, or AR experiences
- Nutrition transparency tools, such as scanning a package for sourcing information
- Interactive packaging that allows customers to interact with brand stories
Heinz's "Find the Goodness" campaign employed QR codes on bottles to send consumers to sustainable farming stories, building customer trust. Smart packaging enhances post-purchase engagement and builds brand affinity.
Brands are establishing direct consumer relationships using DTC (Direct-to-Consumer) and subscription models to eliminate traditional retail margins, provide premium products, and provide individualized experiences. Through direct sales, brands have greater control over prices, customer information, and general brand experience, resulting in higher margins and stronger consumer allegiance. allowing them to:
- Bypass traditional retail markups
- Offer exclusive, early-access products
- Gather valuable first-party data for marketing personalization
Daily Harvest’s frozen meal subscription model provides busy consumers with healthy, chef-crafted meals, growing its customer base by 3x in two years. Subscription models provide steady revenue and brand loyalty.
As 2025 looms, food and beverage brands need to adopt an integrated, data-driven marketing strategy that harmoniously converges digital interaction with in-store sales. Consumers are calling for more personalized experiences, immediate rewards, and interactive shopping experiences, and brands that respond to these demands will be ahead of the competition.
From hyper-local influencer marketing and AI-fueled personalization to smart packaging and UGC-driven retail sales, these tactics are intended to boost visibility, deepen customer engagement, and deliver measurable outcomes. Through the use of new technologies, the optimization of on-demand grocery partnerships, and investments in community-based activations, brands can build stronger consumer connections and achieve long-term growth.
Which of these strategies is your brand going to be using? Let's talk in the comments!
.svg){kind=icon}
.svg){kind=icon}
.png)
.png)
.svg)
.svg)
.svg)
.svg){kind=icon}
.svg){kind=icon}
.svg)
.svg)
.svg)
.png){kind=small}