Catalina Snacks, maker of Catalina Crunch protein cereal, is growing its presence in grocery aisles while trying to stay true to its health-focused DTC roots.
“Household penetration and your retail footprint are the most important building blocks for growth in a retail landscape, of course,” said CMO Charlotte Mostaed, who joined the company earlier this month after serving in the same role at Health-Ade Kombucha.
To continue growing, Catalina Snacks will combine broad brand awareness messages with lower-funnel “performance marketing that is hard-working and drives conversion,” Mostaed said.
Function from food
Catalina Snacks’ products are gaining traction with shoppers who are conscious of ingredients and interested in healthy alternatives in categories like cereals and snacks.
Dieting and the use of new GLP-1 drugs have also increased the focus on functional foods.
“GLP-1 users are sort of a microcosm of what’s been happening over time regardless of this new intervention, which is that people are looking for more function out of their food,” said Mostaed. “They’re a lot more aware of the nutrition labels.”
She added: “People are quite aware of the empty calories out there that don’t provide those nutrients.”
Economic headwinds and inflation have also put more attention on food’s function.
“[Consumers are] a lot more aware of where they’re putting their dollars,” Mostaed said. “There are also big macroeconomic impacts to what people are choosing to buy. And the awareness of: I’m not just eating to enjoy my food or fill a need for the day, I’m eating to fuel what my body needs to thrive. It’s more and more how people are looking at every single choice they make at the store or online.”
Keeping connected to healthy roots
Catalina Snacks’ “better-for-you” positioning comes out of its very beginnings. The company was founded in 2018 by Krishna Kaliannan, a type 1 diabetic in search of low-sugar foods. The line grew to include Protein Cereals, Protein Snack Mixes, Chocolate Cookie Bars, and Protein Granola.
This origin links with specific micro-communities that remain part of Catalina Snacks’ two-pronged strategy for awareness and performance.
“We will be meeting micro-communities where they are,” said Mostaed. “So, people that are Celiac even. We’re gluten-free across our product line. There’s a way to reach them with a message that specifically tells them this product is for them. Or, diabetics, or GLP-1 users. Or people who are simply ‘macromaxxing’ because they want to meet their fitness goals.”
Rigorous product testing backs these messages: The R&D team focuses on taste, texture, and enjoyment, and runs benchmark tests against competitors.
“Gone are the days where you can be ‘better for you,’ and taste like cardboard,” Mostaed said. “You can’t, you’ve got to do it all, and the consumer expects it.”
Reaching omnichannel shoppers
Catalina Snacks wants to reach its diverse existing customer bases while building awareness among new customers. An omnichannel approach supports its retail presence, driving sales across in-store, direct, and delivery channels.
“It’s really about a two-pronged strategy where you’re creating awareness from the top down to a wider audience,” Mostaed explained. “Yes, we want to use video and mass-marketing assets to drive awareness of our brand and what we stand for. And then we will also be meeting micro-communities where they are.”
Catalina Snacks also leans into retail media to influence purchases close to checkout.
“We have a very strong retail media network play,” said Mostaed. “And we’re very focused on meeting our partners and delivering in their retail media networks because they have wonderful insights of who’s shopping and what they’re looking for, and that first-party data is so important in making our marketing work hard for us.”
Mostaed insists the two ends of the funnel feed each other: Brand awareness contributes to performance, and lower-funnel messaging helps brand building.
“We want to also build off-site and outside retail media networks, so that we are driving that push and demand from outside, so that once someone has decided where to shop, they’re already aware of Catalina before they go to a Walmart.com or wherever they are searching,” Mostaed said.
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