According to a recent announcement from Nestle, Maggi is the first Non-Fungible Token (NFT) to be introduced in the “OneRare Foodverse.” Maggi will be releasing its products as NFTs that can be used in the foodverse, such as recipes built using its noodles, “Masala-ae-Magic,” and Maggi Hot & Sweet.
Nonetheless, a food and beverage company has before introduced its NFT. Brands including Coca-Cola and Yum! Brands—the parent company of Taco Bell, Pizza Hut, and KFC—created their NFTs early in the previous year using digital assets like pictures, videos, memes, GIFs, and audio tracks. Wow! Momo, a QSR brand, just ventured into the metaverse to launch its NFT in March 2023.
When the NFT fad peaked in January 2022, brands began their forays into the metaverse and unveiled their NFTs for the first time. Since its peak in early 2022, the NFT market has experienced a cooling off and a fall in sales.
This reduction may be the result of some buyers and collectors losing interest in NFTs, as well as the initial excitement and frenzy surrounding them receding. Experts claim that a decrease in the perceived value of NFTs has also resulted from a market saturation where an excessive number of NFTs are being sold.
What are the advantages for a food brand joining the foodverse, and what are the long-term effects of introducing these NFTs?
afaqs! asked four specialists for their opinions on Maggi’s NFT. What they said was as follows:
Amit Dhawan, CEO and partner at Art-E
Amit Dhawan
Maggi may have joined the NFT trend a little bit late, but it’s never too late to try out cutting edge tools and techniques for advertising. As a matter of fact, a brand may benefit from arriving late at events since they can get insight from the failures and achievements of early adopters.
For a company like Maggi, the objective of a food NFT may be multifaceted. Customers might use it, for example, as a loyalty program where they can accrue or use NFTs to purchase Maggi goods. As an alternative, Maggi might introduce limited-edition recipe NFTs that would be offered for sale or auction to enthusiasts or collectors. They can also be utilized to create a Maggi fan community on social media, where members can exchange cooking advice, recipe ideas, and personal stories.
Although Maggi’s use of NFT is an intriguing step and shows the brand’s openness to experimenting with new technologies, it is unclear how long-term successful this endeavor will be.
Sukrit Singh
Because of the decline in the cryptocurrency market and the state of the world economy, the NFT market has slowed down dramatically since the last quarter of 2022. The NFT community is still very much a part of collections, though.
The metaverse has grown astronomically. The NFT market will expand in tandem with the new internet’s increased acceptability.
Maggi may have a great chance since food NFT will let customers interact with the brand on a deep level. Furthermore, the NFT collection’s metaverse experience gamifies the user’s immersion in the foodverse by enabling them to discover new “Meri Maggi” recipes using its products. This guarantees that the customer remains committed to the brand and continues to express their passion for it.
Vivek Kumar Anand
As of right now, the Metaverse is viewed as a far-off technological novelty with a hazy arrival date and little interest from consumers. Therefore, businesses should deprioritize their urgency. As a result, before investing in such technologies, brands need to have a clear idea of the goals they hope to accomplish.
Maggi’s entry into the metaverse shows that it is prepared to change with the times. Since NFTs are still in their infancy, their use case for long-term brand advantages is still vague. Thus, rather than being a delayed decision, investing in NFTs at this point can still be a little early. Still, it will surely attract Gen Z consumers and produce positive PR.
Moreover, this move reinforces its image as an innovative brand and enhances its market position. Partnering with OneRare will also enable them to engage and incentivise fans on the platform. However, creating additional revenue streams through NFTs has yet to be a sustainable channel for any brand.
