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://specialtyfoodmagazine.epubxp.com/i/282647
AVERAGE ANNUAL SALES BY SUPPLIER TYPE THE SPECIALTY FOOD SUPPLY CHAIN IN THEIR OWN WORDS 1,711,983 1,773,334 4,681,250 3,046,875 6,753,350 2,582,950 2,055,900 1,904,400 The average annual sales figures for each supply chain partici- pant, with the notable exception of brokers, increased in 2013 as the industry grew. Importers' growth was slightly stronger than that of manufacturers. The wide range of entities in the distributor and broker segments make the average sales less significant than for manufacturers and importers. As the economy has improved, specialty food manufacturers and importers are increasing the average number of SKUs that they sell, to 41 and 181, respectively. Distributors have also increased the average number of SKUs that they represent, although the amount varies widely, from small distributors with 500 products to major distributors with more than 40,000 SKUs. DISTRIBUTORS BROKERS • "Ability to get listings in stores who prefer their own private label." • "Certain government regulations that favor the larger companies." • "Non-merchandising costs, i.e. slotting fees, advertising, etc." • "The number of people trying to get into business who have no idea what they're doing." • "Increasing emphasis on nutritional value rather than taste and quality." • "Pack sizes still too large, specialty distributors' margins too high." MANUFACTURERS IMPORTERS • "Rises in commodity costs and government regulation." • "Balance between increasing production and maintenance of quality." • "Constant changes in governmental food policy." • "Continued consolidation of large grocers and distributors." • "Growing distribution, adding new sales staff." • "Expanding our product reach to other parts of the country." • "Continue upgrading warehousing and packing facilities for FSMA compliance." SPECIALTY FOOD RETAILERS • "It is difficult to have a clear identity when we are trying to appeal to as many people as possible." • "Keeping on top of trends and marketing to our diverse customers." • "Finding new and interesting products that fit within our business brand and are low enough cost for people to buy them." • "To turn over product before expiration. Manufacturers are putting too early a date just so they can sell more." • "Teaching our customers and employees the stories behind our foods." 2012 AVG $ SALES 2013 AVG $ SALES What are you planning to do differently in 2014? What is the biggest threat to your business? What is your biggest gripe about the specialty food industry? What is your biggest gripe about the specialty food industry? What is the biggest challenge to you as a specialty food retailer? 2012 2013 37 41 94 181 1,638 1,849 2,422 1,607 Manufacturers Importers Distributors Brokers Manufacturers Importers Distributors Brokers AVERAGE SKUS BY SUPPLIER TYPE Source: Mintel Source: Mintel SOI_2014.indd 97 3/18/14 8:33 AM