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Balance of Power Shifts in Groceries

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Large food and beverage companies are seeing established brands sales decline as newer organic and health conscious brands increase market share. The 25 largest food company sales declined to 45.1% of food industry sales of $418 billion in 2014, declining by 4.3% since 2009. Smaller brands increased share from 32.1% to 35.3%. The more health conscious brands have seen tremendous growth, Granola bar company KindLLC increased share from 0.5% share of the snack bar market to about 6% in 2015, according to Bernstein Research. Chobani Inc. reached $1 billion in sales in 5 years. Kroger and other big supermarket chains are responding to consumer demand for buying local, buying from boutique producers, and buying from health conscious producers, by supporting these brands with marketing strategy, flavor selection, package size, and other ways, so that Kroger can carry their products on its shelves. FlapJacked pancake mix from a small Colorado company was introduced at Kroger's King Soopers chain in that state, and then taken to 500 Kroger stores in the U.S. For chains such as Kroger and Winn-Dixie in the southern U.S., it is critical to stay ahead of changing consumer preferences, especially now that eating right and eating healthy, and looking for alternatives, is changing the marketplace.

U.S. food buyer preferences shift to natural and organic foods in 2015-2016

03/27/2015

Grouped Articles

Balance of Power Shifts in Groceries

Wall Street Journal 03/27/2015

Hunger for Organic Foods Stretches Supply Chain

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Consumer resistance to healthier less fatty fast food in the U.S.

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Grouped Articles

Burger King Drops Lower-Calorie Fry 'Satisfries'

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Balance of Power Shifts in Groceries

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McDonald's losing favor with younger American buyers and millenials shifting to healthier alternatives and fresher food

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Grouped Articles

McDonald's Faces 'Millennial' Challenge

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Are Democrats Losing the Youth Vote?

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McDonald’s Menu Problem: It’s Supersized

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McDonald’s to Pare Menu, Review Ingredients

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McDonald’s Seeks Its Fast-Food Soul

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Changing Tastes Blamed for Slide at McDonald’s

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Startups with home kitchens in the food business

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California and Massachusetts lead the way for startups using home kitchens to provide healthy foods in the local area. Special provisions in the California law and flexible inspections make it possible for these startups to grow. Venture capital is supporting businesses of this type. One supplier sells homemade pasta for $10 a pound at local stores.

Grouped Articles

Food ‘Accelerators’ and the $10 Bag of Pasta

Wall Street Journal 01/07/2015

Balance of Power Shifts in Groceries

Wall Street Journal 03/27/2015

Nut-Butter Firm’s Founder Adjusts to Growth

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Startups Get an Unusual Message: Go Slow, Think Small

WSJ 06/10/2016

Health Foods in China

12/13/2010

Grouped Articles

Balance of Power Shifts in Groceries

Wall Street Journal 03/27/2015

Selling Health Food to China

Wall Street Journal 12/13/2010

5 so-called health foods you should avoid - The Washington Post

Washington Post 03/05/2012

Chinese Food Company Eats English Breakfast

Wall Street Journal 05/04/2012


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