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/654717
5A THE STATE OF THE SPECIALTY FOOD INDUSTRY THE SPECIALTY FOOD SUPPLY CHAIN: MANUFACTURERS 2 0 1 5 - AT- A - G L A N C E Mean Annual Sales $2,843,750 Mean # of SKUs 32 Largest Share of Total Expenses: Raw Materials Mean Net Profit 19% Mean # of Staf 24 Full-time 22 Part-time Own Manufacturing Facility 50% Co-Pack for Other Manufacturers 41% Co-Pack Private Labels for Retailers 57% Fastest-Growing Sales Sources: Retail—Through Distributors Retail—Direct I N T H E I R OW N WO R D S How, if at all, will the upcoming FDA hearing and subsequent rules for the term "natural" on food and beverage labels afect manufacturers' business plans? "It would help by getting rid of fraudulent claimers." "I'd like the government to stay out of it. They messed up the organic industry." Specialty food manufacturers surveyed enjoyed a strong 2015, with 64 percent seeing sales gains of 10 percent or more. Most Important Natural or Ethical Claim to Consumers: TODAY: ORGANIC IN 3 YEARS: NON-GMO T H E F U T U R E Product Innovation Plans: Gluten-free Non-GMO Convenient/Easy-to-Prepare 2 0 1 5 C H A N N E L G R OW T H Fastest: Natural Supermarkets Slowest: Conventional Super- markets, Specialty Food Stores, Department Stores Fastest-Growing Foodservice Channel: Institutions (Universities, Hotels, etc.) D O L L A R S A L E S C H A N G E I N T H E PA S T Y E A R 2015 % Up 30% or more 24 Up 20 – 29% 21 Up 10 – 19% 19 Up 1 – 9% 11 Unchanged 13 Down 1 – 9% 9 Down 10 – 19% 2 Down 20 – 29% 1 Down 30% or more 2 Source: Mintel/SPINS/IRI ? ? Seeking to Create/Market New Products with Existing Brands HOW DO YOU SELL DIRECTLY TO CONSUMERS? 85% OWN WEBSITE 49% THIRD-PARTY PLATFORM (AMAZON, MOUTH.COM, ETC.) 15% FARMERS MARKET WHAT PERCENTAGE OF YOUR FOODSERVICE SALES COMES FROM: PACKAGED PRODUCTS YOU SELL ONLY TO THE FOODSERVICE CHANNEL 26% "NATURAL?" MORE NON-GMO COMING PACKAGED PRODUCTS YOU ALSO SELL TO RETAIL 22% INGREDIENTS YOU SELL ONLY TO FOODSERVICE 3%