Four lessons from four seasoned grocery industry professionals
During a webinar on February 15th, hosted by Brandjectory, an online platform that links early-stage consumer packaged goods entrepreneurs with investors, four former executives of Whole Foods Market talked about the development of the food and beverage business.
The extensive discussion covered a wide range of subjects, including evolving consumer behaviour, product trends, and company founders’ strategic ideas. These four points should be remembered:
Though “the reality is consumers buy food products and beverages because they taste good,” according to Michael Schall, founder and managing director of Schall Consulting and consultant with FocalPoint, a division of B. Riley Financial, Inc., the business must constantly adapt to changing consumer needs.
As businesses work to stay relevant in the eyes of consumers, different eating habits have surfaced in recent years, but Mitchell Madoff, senior vice president of supply chain and private label at Foxtrot, asserted that “taste is what will drive sales.” Therefore, he stated that one of the best marketing strategies for emerging businesses is product sampling, adding, “You can do a lot with social media, but you’ve got to figure out a way to get it into someone’s mouth.”
Errol Schweizer, the founder and owner of Errol Schweizer LLC, stated that “if you’re not working on that, if it’s not top of mind, you’re definitely behind the eight ball.” Younger consumers expect businesses to implement sustainable business practices that support people and the environment.
He remarked, “You don’t want to be caught with your trousers down.” That’s what I used to always tell brands when they would gripe about the extra cost of fair labour or fair trade certification. Either you could put in the effort up front to make sure those practices aren’t present in your supply chain, or you risk receiving some extremely negative press.
The “unprecedented growth of the USDA Organic seal,” which represents a market segment valued at over $60 billion and is regarded as “the gold standard for sustainability,” is the most revolutionary development he has seen in his career, he remarked.
It’s not flawless. However, it has truly raised awareness among the general people about sustainable agriculture, food production methods, what is and is not in food, connections to health and wellbeing, nutrient density, and paying farmers fairly, according to Mr. Schweizer. “It’s amazing to see something that was only a pipe dream become a reality.”
According to Bobby Turner, senior consultant at Simpactful, brand owners could be tempted to follow the newest trend or “try to be all things to all people,” but he advised against going “way too wide before going deep.”
Mr. Schall observed, “Everyone tends to think in terms of what your point of difference is.” What is your point of preference in addition to your point of difference? Why do consumers favour your brand over others? .. Some people don’t truly understand their desires until they experience them or see them in a brand.Stay true to yourself and what you’re trying to achieve,” Mr. Madoff continued. Consider carefully how your product differs from what is currently available on the market.
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But there isn’t a single channel strategy that works for everyone. There are now more chances than ever for customers to find and buy food and beverage items thanks to the rapid evolution of the retail landscape. Operators have to determine which locations and surroundings complement a brand and its offerings the most.
Mr. Schweizer declared, “There is no real playbook; there is no roadmap.” “You have to determine where your target market is, who is purchasing your products, and where you want to be.”All brands need to be omnichannel in some form or fashion,” Mr. Turner continued.Always do what’s best for your company and where you are in your own business evolution rather than trying to swing for the fences at first.