Specialty Food Magazine

Spring 2019

Specialty Food Magazine is the leading publication for retailers, manufacturers and foodservice professionals in the specialty food trade. It provides news, trends and business-building insights that help readers keep their businesses competitive.

Issue link: https://www.e-digitaleditions.com/i/1090132

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Page 76 of 87

L arge food manufacturers have been losing the growth game. The top 25 food manufacturers in the United States have continued to lose share to private label, fresh products, and smaller competitors. U.S. consumers are voting with their wallets to leave the established large food companies. Changes in consumers' core values— amplified by social media, celebrity chefs, and myriad food experts—are rewarding small and medium-size companies with above-average growth. For decades, research within corporate food companies focused on how a product performed and how it could be improved. Historically, 60 percent to 70 percent of R&D budgets were allocated to looking at past and/or current performance and only 10 percent focused on the future. Today, the dramatic shifts in consumer preferences are forcing large food companies to reconsider their traditional approaches to innovation and new product introductions. As they look to young food companies as sources of innovation, opportunities are opening for those that are rising stars with a strong following. BY DAVE DONNAN, A.T. KEARNEY Sometimes You Need to Go Small to Grow Big 74 ❘ SPECIALTY FOOD MAGAZINE specialtyfood.com opinion

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