F&B Industry Paradigm Shift from Incumbent to Insurgent

Supermarkets worldwide are mostly reliant on a cadre of global consumer packaged goods (CPG) companies, yet their products are inferior in areas of corporate social responsibility. The requirement for re-engineered campaigns and healthier, fresher, and more eco-friendly packaging-intensive products trump the bygone era of fast, unhealthy foods.

Recent research shows that 75% of the shoppers prefer branded goods, which reveal product information in-depth, exceeding the required level of what is printed. Moreover, the same percentage of shoppers is willing to pay extra for those food brands with clean label ingredients. The re-invented method of grocery purchases stimulates the more prominent players in the industry, and the same reason is encouraging the insurgence of new-gen-x friendly companies.

Major Veterans grapple with the idea of multi-use packaging and supply chain transparency.

The more prominent food and beverage industry players have coalesced with leading technological initiatives due to the demand for clean packaging and supply chain visibility. Even though these actions towards change are preliminary, they are taken to guarantee a more sustained running of the company in the future.

The insurrection of the smaller companies has made the numerous corporations grapple with this twist of scenarios, creating a shift of force with possibilities for the startups to raid the market share and product spaces on shelves.

The age-old software and un-updated excel spreadsheets are the origins of problems.

The wall betwixt the woke-from-silence customer and industry giants is that the integration of the business operations is lacking financially among veterans. The inter-connections with advanced technology between systems used to collect raw materials, create recipes, and manufacture the food products are utilized in the insurgent companies.

The accumulated information from the systems is maintained, managed, and then printed on the product label, which would be a hefty task for companies still dependent on excel spreadsheets.

Smart, agile, faster, and aggressive insurgent companies have shown the legacy enterprises that old technologies cannot handle the growing demand. Therefore, the quicker the companies accept the newer tech offerings, the better chance they have of surviving the future escalations.