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W
here do we go from here is the question
on everyone's mind as we start to
approach the post-pandemic new normal.
That same question is integrated into this
year's newly released SFA State of the Specialty
Food Industry research. As you'll see in highlights
from the report beginning on p. 27, food sales
fared well in a year of stay-at-home mandates.
Brick-and-mortar and online grocery sales boomed
across the board, more than offsetting foodservice's
unfortunate plummet as restaurants limited seated
dining or closed for good.
How these new norms will shake out is still
unknown but based on the research and supply
chain interviews, here are five shifts we expect to
stay in place.
Cooking-at-home habits. The research
indicates that most people who gave extra home
food preparation a serious try in the past year
have created some lasting habits, at least for a few
specific tasks. Whether it's baking bread, making
from-scratch soup, or using the slow cooker, home
cooking will remain prevalent to a higher degree
than it would have without the pandemic.
New foodservice business models. Supply
chain interviews show foodservice operators
are planning new business models that include
commissaries or partnerships, outdoor dining,
new recipes/menus, and delivery as part of the
segment's comeback. Increased takeout and
delivery, especially, will remain elevated, in part
because older adults and those with young children
may be slower to return to on-premise dining
and partly because many consumers now more
regularly incorporate some takeout dishes into their
at-home meals.
Better e-commerce opportunities for small
brands. Several industry conversations centered
around improved ways to discover new products
online. Retailers and makers are both looking for
ways to showcase on-trend and new products in
a way that is enjoyable for shoppers to browse,
including reliable ways to surface local and
regional products, and increase visibility for brands
that support social, economic, and environmental
justice causes, areas of high consumer interest.
Virtual sales meetings between retail
buyers and makers. From what we have learned,
both parties believe that the new style of meeting
will be the norm going forward, though some
in-person meetings will resume. Makers tell us that
meetings are more efficient, and while there is less
time to talk about multiple SKUs, there is a higher
success with a maker's leading SKU.
Tighter SKU management. The one
thing that major retailers want from specialty
manufacturers is "your very best product." Total
SKUs have been reduced as the pandemic
uncovered supply chain weakness, and 2020
results suggest that scaling back on SKUs did not
harm sales. Most of the reductions have come
from "me too" brands and under-performing line
extensions. The new challenge for makers is how
to successfully get to market all their SKUs that
aren't number-one. If a brand's best product does
well, a targeted new product that attracts many of
the same users might get strong consideration.
You can read more about market growth,
fluctuations, and drivers, as well 10-year category
tracking and forecasts in the State of the
Specialty Food Industry, 2021-2022 Edition. Visit
specialtyfood.com/state2021 for more details.
SUMMER 2021 1
editor's letter
Denise Purcell
Editor, Specialty Food
dpurcell@specialtyfood.com
5 NEW NORMS
