Written by Lewis Wallis, Edited by Caroline Babisz & Stephen O Aderinto
With Facebook's recent company name-switch to Meta, the Metaverse is a rapidly evolving concept that has hit many headlines in the past year. But how will the food industry be involved and what will food in the Metaverse look like?
The Metaverse can be viewed as an online space where users come together to interact with one another and the computer-generated environment. Doing so may involve the use of technology like virtual or augmented reality headsets that allow you to join this virtual world. Although much of the imagery shared seems to show individuals utilising headsets, the Metaverse is not exclusive to VR, and the most recent developments taking place are for desktop use [1]. By creating these immersive environments, the opportunity arises to provide space for food brands to advertise, interact with consumers and build deeper connections.
Non-fungible tokens (NFTs) may sound complex, but essentially, they are “tokens” that utilise blockchain technology and cannot be replicated, giving digital assets the potential for ownership in the virtual world. Whether that be in the form of limited-edition collectables or as memberships, NFTs in the Metaverse open a new world of exciting opportunities to develop a profile in the virtual world. “Non-fungible” suggests that each asset can be unique, unlike currency where individual units are equal. To connect with the physical world, NFTs can be used in a similar way to discount vouchers, where purchase leads to free items or promotional offers you can collect in person (Recipe NiFTy). Ownership of “tokens” can also be connected to corporate donations. A recent example showcasing this can be seen from Taco Bell which produced NFT collections for purchase and donated the money made to charitable causes as part of the Taco Bell Foundation [2]. The government could also utilise a similar approach by initiating research to explore the development of programs for educational games, where playing can lead to individuals receiving NFTs which can be exchanged for physical products. Alternatively, as seen with wine (Hello Fam winery), NFTs can be exchanged and act like a placeholder that people can gift to one another for exchange with a physical item or used as a token to access member-exclusive benefits.
To coincide with the launch of their new beer, Heineken created a Metaverse event, where users could virtually have a “drink” of Heineken Silver [3]. Even though users were ironically not tasting the physical product, it was a good opportunity for Heineken to gain media attention whilst also showing the level of product advertisement possible in this virtual space.
Furthermore, market research and polling may be integrated into the Metaverse and give brands the chance to understand consumer appetite before launching a product. Another interesting example came recently when Coca-Cola developed a virtual soft drink and launched the product in the video game Fortnite before selling it in physical retail stores [4]. Similarly, Hellman’s created an island within the domain of Nintendo’s game Animal Crossing: New Horizons that people could visit, and interaction with this brand advertisement resulted in donations to FareShare – The UK’s largest charity fighting hunger and food waste [5]. This type of brand participation can deepen consumer connections and even lead to individuals rewarded with NFTs that can eventually be exchanged for physical products.
A recent partnership between SPAR Northern Ireland and Ulster University was announced and together they have created a virtual reality store to gain insights into consumer decision-making [6]. It isn’t too difficult to imagine how similar virtual retailer environments could extend to the Metaverse and give you the chance to “walk” past promotional fixtures and on-pack marketing as you would in store from the comfort of your own home, bringing a whole new meaning to “online shopping”. Moreover, retailers might want to operate a single flagship store in the Metaverse and tailor these environments with personalised promotions based on location and the end consumer.
Whilst brands may focus on building a stronger connection with consumers, food developers and chefs can develop immersive online cooking classes to promote and share online recipes and cookbooks. OneRare are looking to create a virtual world all around the subject of food, where people can “cook” new dishes, “farm” for ingredients, and play games to win NFTs in the virtual world. By bringing on celebrity chefs with signature dishes as NFTs, individuals can learn about new foods and also trade their NFTs with others. In the future they plan to expand into the real world by allowing individuals to cash in their “tokens” for exclusive meals at in-person restaurants.
Recipe NiFTy also work on creating content for NFT collections, emphasising the possibility to collect and trade recipes and creating the opportunity for royalties to be collected from them. These “tokens” can even be utilised to gain exclusive tickets to events or special dinners, adding another layer of marketing and potential to provide additional revenue streams. Developing the world of NFTs unlocks the potential for multimedia artists and VR/AR developers to create content for brands, as was seen in with the AR comic book and associated NFT collection from Pizza Hut [7]. Digital art collections, in the form of NFTs, can be seen as a new medium for marketing which enhances the personal connection we have with brands.
Last year, Burger King launched the “Keep It Real Meals” campaign, that involved on-pack QR codes which unlocked a digital NFT collectible [8]. After completing the collection, customers were awarded prizes including free burgers for a year or other digital collectibles. Another fast-food giant, McDonalds, have now filed patents to produce a virtual restaurant, which allows the offering of both virtual food and beverage products as well as features the opportunity for physical home delivery [9]. This shows how the Metaverse will evolve to integrate the physical and virtual worlds, whereby hungry individuals playing in a virtual space can order food.
As the personalised nutrition industry evolves alongside the Metaverse, it will be interesting to see where both worlds collide. The first health and fitness Metaverse has already launched, offering dietary advice and exercise classes to individuals [10]. With the recent success of digital apps and wearable technologies, healthcare providers or health-tech start-ups could potentially integrate personalised dietary advice services into the Metaverse or offer consultancy for their products with an accessible, immersive experience. For more information on personalised nutrition, check out our article here.
Although the Metaverse is still an up-and-coming concept, it is worth considering how governments will look to regulate these spaces in the future, particularly considering recent proposals in the UK looking to clamp down on food and drink industry advertisements online (Online Safety Bill). Only time will tell whether the Metaverse is the online environment of the future or just some quick short-term opportunity for brands to gain media attention. But with growing investments from big food and drink companies in this space, it seems like the Metaverse is here to stay and it’s exciting to consider how this will further expand what the virtual world is capable of.
2. https://finance.yahoo.com/news/taco-bells-nft-crypto-tacos-050329382.html?guccounter=1
3. https://www.thedrinksbusiness.com/2022/03/heineken-launches-virtual-beer-heineken-silver/
4. https://www.ginx.tv/en/fortnite/coca-cola-pixel-drink-fortnite
7. https://www.complex.com/pop-culture/pizza-hut-complexland
9. https://www.xrtoday.com/mixed-reality/mcdonalds-files-patents-for-Metaverse-solutions/
10. https://www.ghp-news.com/first-health-and-fitness-Metaverse-officially-opens-in-dubai/
Sign up for our monthly newsletter of upcoming events, recently published insights and SEC updates.
