BIG FOOD INDUSTRY STRUGGLE TO CONVERT TO FRESH HEALTHY FOOD: LEAVE AFFORDABLE PACKAGED, CANNED BRANDS BEHIND

Posted on July 7, 2017

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Morningstar: “Big Food is in big trouble. For over a century, brands such as Kellogg’s cereal, Campbell’s soup and Aunt Jemima pancake mix filled pantries of American households that wanted safe, affordable and convenient food. They provided companies with reliable revenue growth from grocery shelves, and there was little reason to mess with that formula.”

“Today, these giants are struggling with competition that is corroding business from both ends. High-end consumers are shifting toward fresher items with fewer processed ingredients while cost-conscious shoppers are buying inexpensive store brands. The makers of staples including Chef Boyardee canned pasta and Hamburger Helper meal kits failed to spot the threat and didn’t innovate in time.”

Does big food switch to fresher?

Store brands sell because of the cost advantage and a big portion of the market shops price. Even though the big companies command more than 60% of the market, shelf space is filled with store brands, side by side displays, the store brands now in packaging that’s often difficult to tell the difference.

The fresh ingredients/food regulations fad came on strong during Obama with school lunches, restaurants removing salt shakers from their tables, no large soft drinks in New York, no coconut oil, calorie counts for everything to be displayed somewhere… Read the ingredients on cheese today. Try cooking in the microwave with real cheese.

Volvo just made the commitment to convert to electric in 2019. Gas is selling in the states for under $2. I do not understand the logic.

A business is committing it’s future to a trend, maybe global warming, a cause they believe in.

Will fresh food be the key to changing this industry?


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Morningstar: So Long, Hamburger Helper: America’s Venerable Food Brands Are Struggling

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