We "know" that the food people buy and where they buy is
changing as fast as our lifestyles and society are changing, but knowing
and integrating what we know are two different things. Adjusting to
change isn't easy for businesses, or for people. Businesses are
made up of people, and people go on doing what they done and thinking
what they've thought.
Some recent food headlines and perceptions have underscored the
changes in ways that take many of us closer to gut level understanding.
1. Kraft, the preeminent American food company, is closing
factories and laying off thousands of workers.
2. In partial explanation of changes at Kraft, 60 percent of our
respondents agreed that "national brands of packaged foods are much
less important than they used to be."
3. Putting that 60 percent into dramatic perspective, only 8
percent of our respondents agreed that "food shopping is less
important than it used to be." That imbalance suggests that food
shopping has remained far more important in shoppers' heads than
brands like Kraft.
4. Walgreen's, the pre-eminent American drug store, is testing
fresh sandwiches and related take-out foods in 100 of their stores in
Chicago.
5. Food service sales are growing in spite of a weak economy, and
supermarkets are losing 20 percent of their once-a-week traffic.
6. An article about "Food Chains" in Food & Wine
magazine didn't mention supermarkets at all.
7. Airlines are selling meals that they used to give away, and lots
of people are buying. I sampled a $10 Wolfgang Puck salad on a lunchtime
flight on US Air and was impressed with the flavors and quality of the
greens and sadly disappointed in the quality of the chicken (which I
thought was the easy part but which tasted strangely artificial--as
though it had been mechanically tenderized). Always a researcher, I
asked others around my seat what they thought of the meal and whether
they'd buy it again. Most were positive: "I'll buy it as
long as they keep up the quality. This is better than the food that used
to come with the ticket."
8. The landmark Domino Sugar plant and the sign that has shone into
Manhattan from the Brooklyn Side of the East River are shutting down and
going dark because of declining demand for cane sugar in an age of
competing sweeteners.
9. Twenty-two percent of our survey respondents agreed that
"Wal-Mart and Target have replaced supermarkets as the most
important places they shop."
10. Only 11 percent agreed that supermarkets "aren't as
important as they used to be."
Of course, much of this has been happening for years. It's old
news that Subway has passed McDonald's in the number of U.S.
stores. FMI has gotten smaller and IDDA has gotten bigger. Chains that
we thought were huge are merging to be large enough to compete with
Wal-Mart.
Synthesizing all these changes so that they are in your gut as well
as your head is like learning to think in a foreign language. It enables
you to really see what's happening and move strategically to deal
with the new world.
COPYRIGHT 2004 Consumer Network,
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Copyright 2004, Gale Group. All rights
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NOTE: All illustrations and photos have been removed from this article.