Brocker.Org: Goodful: A Facebookcentric Health Food Venture

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In September 2016, online media giant Buzzfeed and Oreo maker Mondelez International Inc. (MDLZ) co-launched a joint venture called Goodful.

The East Hanover, N.J.-based global food giant, struggling with changing consumer preferences, chose to team up with the digital media company popular among Millennials, to reach its consumers increasingly avoiding traditional advertising. In partnership, the companies have released health videos, recipes and cooking how-to segments on Facebook Inc. (FB) targeted at specific subgroups. The property has earned over 14 million likes on Facebook with videos urging consumers to try “low-carb cauliflower tacos” and “under 300-calorie honey lime shrimp.”

Connecting With Millennials

Goodful’s Facebook page, with a short description as “inspiration for living a more balanced life,” speaks to the food industry’s larger trend toward healthier, more natural products to meet evolving consumer preferences.

Global snacks company Mondelez, in efforts to hedge again macroeconomic challenges and slowed demand for its “junk food,” has initiated a massive cost-savings plan and portfolio revamp. Following a rise in merger speculation and full-year 2016 results, which failed to meet estimates, the cookie maker has made a series of strategic moves such as the Buzzfeed partnership and the launch of a new brand called Vea Snacks to position itself as a more health-focused company. (See also: General Mills, Mondelez Eye ‘Wellness’ Millennials.)

While Mondelez is reportedly handing BuzzFeed the reins to Goodful, the company says it will continue to sponsor Goodful and other Buzzfeed videos and invest in content. Moving forward, we can expect more major brands to work with publishers in order to reach a Millennial cohort more inclined to purchase private labels and premium niche brands. “As audiences become more empowered to control their viewing experience, the old model of interruptive advertising is rapidly becoming irrelevant,” said a Mondelez spokesperson. (See also: Analyst: Mondelez Would Be ‘Digestible’ for Pepsi.)

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