An interesting cryptocurrency use case I’ve been exploring is how it can change the relationship between consumer brands and customers. To that end, I researched a few food and beverage brands experimenting with cryptocurrency technology: Taika, Bored Breakfast Club, and OffLimits. It’s still early days, but I’ll walk you through what they’re doing so far so we can get a glimpse of what consumer brands will look like in the future.
Taika creates adaptogenic beverages that are ready to drink, like black coffee or oat milk lattes. Their drinks are designed to eliminate the jitters and anxiety people may feel after consuming caffeine.
Currently, Taika is working with FWB (Friends with Benefits) to co-create a club-mate flavor. For context, a FWB is a Decentralized Autonomous Organization (DAO) — or, more simply, an internet community with shared bank accounts.
FWB members need to apply to join and also need to hold a certain amount of $FWB tokens. They work together to advance the development of web3 tools.
Here’s how they work together:
- Taika leverages their existing expertise to develop and produce new flavours, while FWB members collaborate with Taika to design and market
- FWB members can participate in the project in two ways. First, they can apply to join a paid work group to produce design and marketing materials. Or they could volunteer to join focus groups, do product tastings, and vote on what design to use, or which version of the drink to introduce to the public, etc.
- Profits from the sale of the product will be shared between Taika and FWB, with FWB entitled to 18%. This creates an incentive mechanism where FWB members are financially incentivized to help Taika create the best product and sell more of it.
Arguably, this arrangement is possible without cryptocurrencies – so, where does cryptocurrencies come into play?
- Open data in cryptocurrencies makes it easy to verify assets held by individuals, whether those assets are fungible tokens (such as $FWB tokens) or non-fungible tokens (NFTs). This creates efficiencies for brands looking to partner with existing communities, as eligibility criteria for exclusive events/offers can be defined based on an individual’s token holdings. In this case, the opportunity is limited to FWB members.
- It’s not hard to imagine that a successful collaboration with Taika could lead to more brand collaborations in the future. The possible downstream impact of this is continued income increases for the FWB community and more opportunities for members to get paid work or unique opportunities. This will make it more popular to be a part of FWB, increasing the token value of $FWB as demand increases, which is financially beneficial to existing holders. This means that FWB members are motivated to help make this collaboration a success – and for Taika, it can make them advocates for their own brands and products.
Bored Breakfast Club
Bored Breakfast Club is an NFT project that has partnered with Yes Plz Coffee to create and sell bagged coffee beans.
Holders of NFTs are entitled to benefits such as discounts and free shipping on every new recipe. In this case, the NFT acts as a verifiable digital subscription to the Bored Breakfast Club.
The subscription service works by having a “community coffee wallet” that collects a portion of the revenue from NFT sales, product sales, and merchandise sales in the secondary market. This wallet provides all NFT holders with the cost of producing and delivering new recipes. When funds are sufficient, NFT holders can claim coffee for free.
This means that NFT holders have an incentive to help brands scale and succeed. More sales mean faster funding for community coffee wallets, which entitles holders to more and more free coffee. Such a model might work without cryptocurrencies (for example, the benefits of being a paid membership), but cryptocurrencies make it more efficient.Brands can easily verify ownership of their NFTs and limit the benefits of holders.
The unique value of cryptocurrencies is to tokenize digital subscriptions in the form of NFTs, making them tradable on secondary markets. This means that holders (especially early adopters) can profit from the success of the brand. For example, if a brand scales up and starts shipping free coffee at a faster rate, the value of the NFT may also increase because it provides more value. Similar to Taika, cryptocurrencies create stronger alignment of incentives between customers and brands.
Also, given that NFTs only serve as a link between the customer and the Bored Breakfast Club founder, additional perks can be added at any time, which is not worth mentioning.
OffLimits is a cereal brand from Emily Elyse Miller that aims to make cereal fun and delicious without any artificial ingredients.
Each flavor of OffLimits cereal is created based on the personality of the OffLimits character/mascot. One of them is Dash.Emily said: “Dash is a morning person and always feels like she needs to do more. She deals with the pressure of trying to be successful and trying to find herself. Her cereal is coffee and chocolate, it turns milk into cold Brew coffee.”
They have started experimenting with cryptocurrencies in several ways:
- At Art Basel in December 2021, participants scan a QR code to receive an “NFT cereal toy” featuring an animated version of their Spark cereal flavor. Some people got “Exploding Cereal” NFTs, which they could exchange for various 4-packs of cereal and some merchandise.
- Soon, OffLimits will launch The Best Cereal in the Metaverse, a collection of 2,500 NFTs. NFT holders will collaborate to design cereal boxes by submitting artwork and voting. Once the design process is complete, the holder will receive 4 boxes of cereal with the final design.
- Finally, OffLimits is working with gmgn supply company. They are a DAO looking to launch 100 community-based consumer packaged goods brands, starting with a cereal brand called gm Cereal. Their vision is to be a community-driven version of Nestlé or Unilever. If successful, members will be able to vote on big decisions like what product to develop, earn a portion of revenue from product sales, and get paid for their contributions to the brand/organization.Similar to Taika, this collaboration allows OffLimits to combine incentives with existing communities and turn them into superfans and brand advocates.
In many ways, NFTs mesh well with the OffLimits brand – it allows them to create unique, fun and gamified customer experiences to foster greater customer loyalty.
For example, if OffLimits created NFT “cereal toys” in various flavors, you could collect those toys by scanning the QR code inside each box. There may be benefits to collecting multiple or specific combinations in exchange for different benefits.Remember, NFTs are just a link between creators and holders, so brands have unlimited opportunities to use this link to attract and reward their customers.
While doing this research, my goal was to understand the value of cryptocurrencies to consumer brands and their customers.
The examples of Taika, Bored Breakfast Club, and OffLimits show that brands can use the technology to improve customer acquisition and retention, as well as provide token holders with a deeper level of value. It’s also good for consumers as they have more opportunities to work with brands and, in some cases, profit from early support; creating incentives to help brands succeed.
Overall, cryptocurrencies look like a new tool in a brand’s toolkit – allowing them to build their own communities, increase customer engagement in more effective and creative ways, and align their incentives with customers be consistent.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/nft-driven-food-and-beverages-changing-the-relationship-between-consumer-brands-and-customers/
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