Specialty Food Magazine

Winter 2021

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.

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sustainability credibility while also keeping the product, and consumer, safe," says Balanko. E-Commerce Impacts Specialty Consumers' increasing reliance on e-commerce creates new opportunities for specialty food makers, says Bill Bishop, chief architect at Barrington, Illinois-based e-commerce consulting firm Brick Meets Click. One prime opportunity for specialty food companies, he says, is the expanded space for product descriptions provided online, which allows makers to offer more details about how their products are, in fact, special. "When consumers shop online, they have access to a lot more information about products than they do when they walk up and down the aisles," he says. "That is an advantage to products that have unique characteristics, like specialty foods." E-commerce expands opportunities for exposure that these types of products can achieve with consumers when they readily appear in online searches. "Specialty food products that have attractive points of difference should enjoy some significant growth, versus what there would be if there was no online shopping, because it's just easier to find them," says Bishop. Marketing specialty food products in an age of expanding e-commerce is also undergoing significant changes, he says. One key marketing opportunity may be the use of video to tell stories, says Bishop, citing a successful program used by Walmart Canada to promote products from Italy online. Another marketing opportunity may lie in the harnessing of product recommendations, he says, thanks in part to the success Amazon has had with • SPECIALTY FOOD SPECIALTYFOOD.COM "When consumers shop online, they have access to a whole lot more information about products than they do when they walk up and down the aisles. That actually is an advantage to products that have unique characteristics, like specialty foods." Zingerman's Meets Increased Demand for E-Commerce The surge in e-commerce during the pandemic has forced many online specialty food companies to adjust their operations. "We were an e-commerce gift business before the pandemic, and we're still an e-commerce gift business now," says Mo Frechette, co-founder and co-managing partner of Zingerman's Mail Order, based in Ann Arbor, Michigan. "What's changed is the volume." The company has doubled in size since last March when the pandemic hit, he says, and volumes have held at that elevated level ever since. "I don't think that's going completely away until people start traveling to deliver their gifts in person," says Frechette. "And I don't think that will happen until we have a widely distributed vaccine, hospitals recover, and COVID cases cease being a newsworthy event." In order to accommodate the increased demand, Zingerman's Mail Order quickly expanded its fulfillment capabilities. The company redesigned its warehouse so that workers could be screened at the start of their shifts and work at a distance from each other. "We also needed to clean a big, open warehouse like it's practically a hospital," says Frechette. Zingerman's expanded its call center to handle increased call volume, and it eventually decentralized much of that work using technology. At first, the company simply triaged calls at the office, and employees called people back from their homes, but that was not an ideal solution, he says. The company also reached out to the food makers it buys from in order to gauge their needs. "The early months of the pandemic were especially hard on cheesemakers who lost restaurant business or got cancelled by big grocers," says Frechette. "We figured out how to quickly bring in foods we'd never sold and get them into our customers' mouths." Zingerman's also invested in a second warehouse, with an eye toward a future that is highly uncertain. "We rented where we could, bought where we needed to, all with the idea that we might shrink drastically in 2021 if people revert to their 2019 selves and we're served a deep dish of recession on the side," Frechette says.

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