Weekly Roundup – Week of 10.21.24
October 25, 2024
Discover the latest news and food and beverage industry trends in this week’s roundup – all curated by our team of strategists and food enthusiasts:
Retail-Manufacturing Divide Widens Over Pricing and Strategy
Manufacturers and retailers are navigating tensions in pricing and innovation strategies, as outlined in Advantage Solutions’ Q3 2024 Manufacturer & Retailer Outlook. While some CPG companies aim to adjust prices—either lowering or increasing them—retailers appear more aggressive in reducing costs. Manufacturers are focusing on innovation, primarily through line extensions and product introductions targeting mainstream price tiers, but retailers are pushing for more value-priced options. This divergence in approach underscores the importance of alignment, particularly in how both sides manage pricing investments and product launches to appeal to cost-conscious consumers while driving sales growth. Learn More
Fresh Thyme Leverages AI for Smarter Food Preparation
Fresh Thyme is expanding its partnership with Afresh by rolling out AI-powered technology to improve ordering and inventory management in its deli and prepared foods departments. The new system provides real-time insights, order recommendations, and auto-orders to help optimize inventory levels and reduce food waste. This initiative builds on their partnership, which began in 2019, and extends Afresh’s technology beyond produce to other fresh departments. Afresh’s AI helps manage factors like shelf life, seasonality, and ingredient substitutions, addressing key challenges in fresh food management. Read More
Why Snacks Are Becoming The New Mealtime Staple
Snacking has taken on a prominent role in consumers’ lives, with many opting to replace traditional meals with more frequent, protein-rich snacks. According to Mondelēz’s State of Snacking report, six out of 10 consumers prefer smaller meals throughout the day, a trend dubbed “snackification.” Post-pandemic stress has led to a rise in indulgent snacking, with brands like Doritos and Cheetos introducing mini versions of their products. While healthier snacks have declined in popularity due to inflation, companies are blending “better-for-you” ingredients into indulgent offerings. Brands are responding to these shifts by innovating with clean labels, protein-packed snacks, and engaging new audiences through targeted marketing. Read Article
Dairy Prices Stay High Despite Supply Improvements
Food Business News reports that dairy prices will remain elevated despite global supply improvements, with consumers expected to continue paying premiums into 2025. The USDA’s October 2024 report projects slight price drops for cheddar cheese and butter, but dairy prices overall are still higher than last year due to ongoing supply challenges. Increased holiday demand for dairy products, coupled with reduced milk production, has kept prices high. Globally, dairy shortages have caused significant price increases, especially in Europe and Asia. Rising cheese consumption, both domestically and internationally, continues to drive demand. While supply may recover in 2025, prices are likely to remain elevated until the second half of the year. Read On
Consumers Shift Holiday Spending Towards Food and Experiences
Holiday spending is expected to rise by 8% this year, with consumers focusing on gatherings, food gifts, and budget-friendly entertainment over traditional gifts. Food and beverage gifts are gaining popularity, with 63% of consumers planning to purchase them, and 70% willing to spend more on convenient hosting options. Many are switching to less expensive brands or using promotional events to save money, but they’re still committed to creating meaningful holiday experiences. Overall, the trend this holiday season leans toward food-centric, experience-driven celebrations as consumers prioritize time with loved ones. Read Story
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