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
8A THE STATE OF THE SPECIALTY FOOD INDUSTRY THE SPECIALTY FOOD SUPPLY CHAIN: SPECIALTY FOOD RETAILERS Specialty food retailers are experiencing sales growth, with 28 percent reporting increases greater than 10 percent. However, this growth is not across all stores, as 32 percent are recording flat or negative growth. This is the result of increasing competition from other brick-and-mortar outlets and online retailers. I N T H E I R OW N WO R D S What do retailers see as the key emerging trends in specialty foods? "Home delivery." "Micro-local, very small batch, changing inventory often." "Large retailers mimicking small indies." 2 0 1 5 C H A N N E L G R OW T H Fastest: Natural Supermarkets Slowest: Specialty Food Stores Most Important Natural or Ethical Claim to Consumers: TODAY: LOCAL IN 3 YEARS: NON-GMO 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 1 Up 20 – 29% 7 Up 10 – 19% 20 Up 6 – 9% 13 Up 1 -5% 27 Unchanged 17 Down 1 – 5% 7 Down 6 - 9% 3 Down 10 – 19% 5 Down 20 – 29% 0 Down 30% or more 0 Source: Mintel/SPINS/IRI T H E F U T U R E Seeking to expand number of products: 56% Seeking to Expand/Add Private- Label Products: 35% 2 0 1 5 - AT- A - G L A N C E Average Store Size 6,014 square feet Mean # of SKUs 2,077 Mean Annual Sales $3,990,661 Average Transaction Size $34 Average Inventory Value $181,134 Mean # of Suppliers 66 Percent of Purchases Through Distributors 53% Direct from Non-Local Suppliers 25% Direct from Local Suppliers 21% Top Departments in Sales Specialty Grocery 28% Other & Non-Foods 14% Deli and Prepared Foods 11% Cheese 11% Confectionery 10% Wine and Other Alcoholic Beverages 9% Meat and Seafood 6% Produce 5% Bakery 5% TOP 3 UP-AND-COMING CUISINES FOR 2016 1. Mediterranean 2. Middle Eastern 3. Thai NATURAL SPECIALTY Written by Ron Tanner, Specialty Food Association's vice president, philanthropy, government, and industry relations, and Denise Purcell, editor of Specialty Food Magazine. Watch for Details on the Specialty Food Association's WEBINAR coming in April. THE STATE OF THE SPECIALTY FOOD INDUSTRY