The grocery business is engaged in a fierce fight for your dollars; shoppers abandoning the big food companies.
And along with the price wars another trend is emerging – people are shopping differently.
And what once was in – now is out.
The big food companies such as Kellog Co., Coca-Cola Co., General Mills Inc., Kraft, Heinz., are coping poorly with the drastic and dramatic changes that are changing the retail food sector.
And the changes are coming at a dizzying speed.
Today’s consumer is no longer brand loyal.
Instead consumers are looking for food that does several things – provides them with benefits such as heart and digestive health plus nutritional information.
Other things important to today’s customer are such things as food without a lot of sugar, salt. Food without additives, preservatives, artificial flavours and genetically modified foods.
Instead they are looking for locally produced food. Food that is fresh and food with robust flavours.
As well ethnic and regional foods are in great demand.
So why aren’t the Big Foods providing that to their customers?
Simply put, they can’t.
Their big manufacturing facilities are not capable to produce the kind of food consumers want and now buy.
And on top of that three major companies – not grocery companies – are making major inroads by selling food under their own labels that meet the needs of today’s savvy grocery shopper.
They are – Wal-Mart, Costco and Amazon which recently purchased Whole Foods.
And because these companies buy in such vast quantities they can squeeze the big grocery companies on their prices.