Friday, August 21, 2009

How people eat Food and where they buy it is changing, are you?

Winston Churchill once stated: “However beautiful the strategy, you should occasionally look at the results”.
With 20,000+ new SKU’s introduced into food retailing each year, many do not fly and fall to the wayside. If a company has a product that does not sell, and is not profitable at minimum a dramatic review is needed. Category managers look at flat categories and brainstorm on how to generate new interest in the product. Just how does foodservice position a traditional product within a new niche too catapult sales of the product while building interest and greater value. A perfect example was the age old apple? We knew sales would boom if you cut the apple first; then placed it into a different channel sliced and packaged sold as Apple Fries at Burger King and Fresh Better For You Wedges at McDonalds. If you were raised in Washington State you might have know there would be winners and they are the Apple farmer, the healthier consumer (kids) and the QSR niche via TOP LINE SALES & BOTTOM LINE PROFITS.
Grocerant products are a multi-channel products consisting of ready to eat ready to heat foods that are/can be portable; found in grocery stores, convenience stores, restaurants, supermarkets, mobile food units and kiosk. We are seeing each niche create its own answer for convenient ready to eat foods; and when they do the consumer rewards them with purchases and increased frequency. What is worrisome is watching niche industry leaders ignore the changing patters of the consumer or denying that the effects of the changed will bother their niche or company. In the past the result of denying change was dramatic capitulation of marketshare from niche industry leaders. We have been witness to this in Grocery, C-stores and restaurants sectors. Many of us in the Foodservice Conuslting industry might need to review our offerings as well. The Grocerant niche however is the up and comer! Success does leave clues, watch this niche grow! Niche assessments, emersion tours or packaging highlights Foodservice Solutions is Grocerant Focused.

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