Last
week Foodservice Solutions® Grocerant Guru™ spoke at the SJU 2015 Food Summit and
highlighted a battle brewing between Grocery vs Restaurants, Drug Stores, Meal
Kits, and C-Stores. The undercurrents of industry change and wounds from the
battle over Share of Stomach are beginning to surface.
Albertson’s
has pulled its IPO, Walmart sales and forecast profit growth diminishing, and
Fresh & Easy is back in trouble and may file for bankruptcy once
again. If that is not enough, Aldi is
expanding into California and will become a disruptive force as they challenge
legacy retailers on price and transparency.
What
is new, consumers want to Eat-Out While
Eating-In
according to Foodservice Solutions® Grocerant Guru™. The consumer today is meal orientated not
pantry orientated. That is a retail operating advantage for retailers that
understand the undercurrents driving change in retail foodservice today.
Consumers
have taught us one thing that is
Food Quality Never Takes a Step Back. Many legacy grocery stores jumped on the
HMP bandwagon in the mid-1980’s and early 1990’s only to miss the opportunity
because they focused on cost over quality and fresh. They did not understand the customer or the
grocerant niche filled Ready-2-Eat and Heat-N-Eat fresh prepared food. They treated HMR like a CPG category. They
treated it as if Grocerant niche fresh food was shelf stable and lasted three
weeks. It simply sat on the shelf! They
did not fool the consumer. Many today
are repeating the past, garnering the same results.
Even more important many grocery retailers were so focused on filling
consumers pantry that they never understood that the consumer mind-set has
evolved and that the consumer is now much more Meal orientated than pantry orientated. Let’s face it grocery stores have never been
in the meal business. They simply did
not get it, even if/when they had the data informing them of the evolving
customer. Go Figure.
So, where does that leave us today?
Today, many legacy grocers companies fail to understand the opportunity
for day-part meals. Today, traditional
grocery stores still aren’t in the meals business. More important they
do not understand the need mind-set of the consumer.
What
is expected to happen in 2016?
1. We will see fewer
grocery stores at the end 2016 than we had at the end of 2015,
2. Restaurant Take-Out
sales will continue to rise,
3. C-stores will see
growth in number of units and sales per unit of Ready-2-Eat and Heat-N-Eat
fresh food,
4. Drug stores will
start selling meal kits for one or two people expanding their pantry busting
fresh food footprint,
5. Meal Kit companies
will expand into local mid-sized markets targeting the ‘Middle’ garnering more share
of stomach than anyone expected.
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
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