In this article, we provide a strategic primer on wholesale distributor consolidation for manufacturers.
Our goal is to help man agers understand the dynamics of consolidation and the strategic options available to them.
In addition, Mellentin said easy access to information via technology has allowed consumers “to become their own experts on matters of healthy eating.” This has given a greater sense of empowerment as to what they want and allowed the average consumer to make their own decisions about health.“Having seen ‘set in stone’ dietary advice about dairy fat and eggs overturned, consumers are sceptical about the ‘expert opinions’ of dietitians and nutrition researchers, and that means they allow themselves more freedom to create their own health rules, while at the same time using the internet to decide for themselves what is healthy and what is not, and even to self-diagnose,” according to Mellentin.
Full-fat dairy is making something of a comeback due to the aforementioned informed consumer base, Mellentin said.
Wine continues to compete with beer and spirits on almost every occasion, Brager says.
In total, consumers spent about 4 billion on beer, wine and spirits last year as wine and spirit consumption continues to rise while beer consumption sinks.
Perhaps managers already realize that consolidation will soon overtake their channel.
CPG firms that view cost cutting as the only strategic choice for profit growth may be making a mistake.
The changes roiling the consumer packaged goods (CPG) industry are significant enough that companies will have to reexamine fundamental tenets that have in the past served them well. Historically, population growth and gains in consumer spending provided reliable fuel for CPG expansion. The number of consumers in developed countries has either flatlined or fallen; birth rates in North America and Western Europe are below the replacement rate.
Health and wellness, for example, is no longer strictly associated with health and nutrition.
A report about the research effort titled “Capitalizing on the shifting consumer food value equation” was released Jan. Adding to the complexity of the new environment food manufacturers and marketers face is how consumers define each of the emerging purchasing influences.