Grocery Headquarters posted a recent study, Trouble in Aisle 5, done by Jefferies, the global investment bank, and AlixPartners, the global business advisory firm.
The results confirm the belief that Millennials are going to change the way companies do things – if they don’t make the change, and keep up – they’ll be left in the dust.
The food-at-home industry will see an accelerated change because the old-school methods are not cutting it with the new kids on the block.
From the post:
“We envision an environment that will require increased nimbleness and a relentless focus on the consumer for established food manufacturers and retailers, and the potential for rapid growth for new concepts and products,” said David Garfield, Managing Director at AlixPartners and head of the firm’s Consumer Products Practice.
“Millennials clearly present significant challenges, and food-makers and traditional grocery retailers need to start making changes now to address the emerging needs of this demographic group, as in many ways we’re just in the second inning of this ball game” said Scott Mushkin, Managing Director and Senior Equity Research Analyst covering Food & Drug Retailing and Packaged Food at Jefferies.
The study shows that Millennials want connivence, the best possible price and the best quality. If they have to get it online, on their smartphone, at a grocery store or a connivence store – they will find it.
From the post:
Overall, the study sees a more demanding environment across the entire food-industry value chain. For food companies, there will be greater pressure to deliver more for less –fresher, higher-quality product, with more choices and more convenience in a shopping environment where consumers are becoming less brand-loyal and more inclined to shop across channels.