The evolving Grocerant niche is causing disruption within the retail space and maybe an even greater disruption within the ranks of legacy CPG manufactures. Companies the ilk of Campbell’s Soup and Kellogg’s are experiencing first-hand what customer migration can mean for a legacy brand.
Millennials, Asian Americans, and Hispanic each are adopting new habits in retail buying. The most specific and noticeable changed is an increase in consumption of Ready-2-Eat and Heat-N-Eat fresh prepared grocerant niche food.
Nielsen recently reported that Hispanic and Asian American consumers are a growing demographic in the fresh food departments. Nielsen reports that Hispanics will have $1.5 trillion in buying power by 2015, a 50% increase from 2010, while the average Asian American household expenditure in 2012 was $61,400, 19% more than non-Asian households.
Not unlike 20, 30, and 40 years ago consumers and parents migrated from scratch cooking to prepackaged foods the ilk of Kellogg’s Corn Flakes and Campbell’s Soup to save both time and money. Today Millennials are once again migrating this time to new avenue of fresh food distribution, focusing one Ready-2-Eat or Heat-N-Eat fresh prepared food that can be customized and personalized according to Foodservice Solutions® Grocerant Guru™.
When outlining the power of Millennials Acosta Sales & Marketing reported; “The 77-million-strong Millennial generation and their $200 billion in buying power Millennials will outspend the Boomer Generation by 2018 as over $65 billion in grocery spending will shift from one group to the other.”
Kellogg’s is oddly headquartered in Battle Creek, Michigan and it has a battle on its hands today to evolve with consumers. Regular readers of this blog know “Consumers are dynamic not static” brands must be dynamic as well.” Slotting fees are out, fresh prepared food is in.
Are you trapped doing what you have always done and doing it the same way? Interested in learning how Foodservice Solutions 5P’s of Food Marketing can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization? Email us at: Steve@FoodserviceSolutions.us or visit: www.FoodserviceSolutions.us for more information