Food manufacturing is one of the toughest industry’s in the country. Food manufacturers can’t catch a break between the watchful eyes of the FDA, OSHA, gov’t regulatory changes and legal logistics. As brutal as all of that is, it may be the easier part of your business when compared to dealing with your retail partners. Retailers have the “real estate” and you need your piece of property. You need to pay, discount and cooperate with them to secure vital shelf space. You need to do a lot of it, if you expect a nice piece of property. The competition is stifling, and shelf space is disappearing. Tides are changing and now more than ever, brand connections must happen well before the customer hits the front door or picks up a weekly circular.
Traditionalists are still circular and price conscious, however, only represent 38% of the overall arena. Food manufacturers need to determine which consumers they can truly convert to loyal customers. 51% of grocery is now digitally influenced. Is your company positioned correctly? Price promotions and end caps will only temporarily boost sales. Long term results and future growth are reliant on brand loyalty built from personally connecting with your target audience.