Specialty Food Magazine

Summer 2016

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.

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annual research conducted by the Specialty Food Association and Mintel. And 31 percent of respondents report they are using or actively seeking an online grocery delivery service. Who are these e-commerce shoppers? By and large, online shopping skews toward younger consumers. According to the "Today's Specialty Food Consumer" report, consumers most inter- ested in using online grocery delivery are in the 25 to 44 age range. While millennials (those 21 to 38 years old) overall make online purchases in the broadest array of categories, older millennials do the most online shopping, according to the report. This data is in line with Kantar's research, which shows that parents—in particular young parents—are the target consumer, accounting for 44 percent of online grocery shoppers. "Millennials grew up with digital technology and have no qualms about changing up how they think about grocery shopping. And, once they become parents, their online interactions become much more purposeful," says Whitfield. SPOTLIGHT ON SPECIALTY E-COMMERCE PLATFORMS S pecialty e-commerce sites offer a lot of opportunity. Here is a look at three: FoodKick. A brand new sister site to FreshDirect, FoodKick offers fresh food and drinks, pantry staples, and alcoholic beverages delivered to customers' doors. Like 14-year-old FreshDirect, it sells an array of well-sourced products, many curated from FreshDirect's own SKUs and many hand prepared to order. Unlike the FreshDirect delivery trucks now ubiquitous in the New York area offering next- day delivery, FoodKick staff delivers food within one hour via Vespas and bicycles. "It's for people who don't plan, but consider themselves food knowledgeable and want something now," said Ken Blanchette, senior merchant at FreshDirect. Delivery is currently available to Brooklyn and Long Island City, Queens, but expansion to Manhattan is coming. foodkick.freshdirect.com Goldbely. Founded in 2013, Goldbely distinguishes itself by not just curating local specialty foods, but by honing in on the highest quality and often iconic items from regions across the U.S. Customers can get an authentic pastrami sandwich from famed Katz's Delicatessen on New York's Lower East Side or barbecue from Jack Stack BBQ in Kansas City. "The internet changed the rules of retail," noted Joe Ariel, founder of Goldbely. "It removes geographical constraints for customers' acquisition and empowers the best producers, not just the biggest." goldbely.com Vitacost. Founded in 1994, Vitacost is an online retailer offering more than 45,000 items in the health and beauty categories including natural, organic, vegan, non-GMO, and gluten-free foods. Kroger Co. purchased the site in 2014 as a wholly owned subsidiary as part of a strategy to expand its e-commerce delivery. Food is the largest growth category for the site, noted Tammy Rothman, category manager, food & beverages, at Vitacost. Offerings include breakfast foods, snacks, condiments, teas, and oils among other categories, plus 17,000 gluten-free SKUs. vitacost.com—D.P. "One of manufacturers' biggest concerns is that the stocking retailers who are the bulk of their business will feel like they are cannibalizing them. We've seen that's not the case as long as you have pricing parity [with what you are selling online.]" (continues on p. 46) 42 ❘ SPECIALTY FOOD MAGAZINE specialtyfood.com

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