Specialty Food Magazine


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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Page 101 of 131

SPECIALTY FOOD INNOVATION PLANS FOR 2014 MANUFACTURER EXPENSES BY TYPE Own a Manufacturing Facility 56 53 Co-pack for Other Manufacturers 37 49 Private Label for Retailers 50 55 2012 2013 SPECIALTY FOOD MANUFACTURERS MANUFACTURING AND CO-PACKING % % 2012 2013 % % Multiple answers accepted Source: Mintel Estimated % of Sales Raw Materials 35 29 Production, Warehousing, Shipping, and Labor 24 21 Packaging 14 12 Advertising and Marketing 11 10 Administrative 10 9 Net Profit — 14 INFLUENTIAL PRODUCT CLAIMS % Manufacture this Type of Product All Natural 92 79 Non-GMO 42 31 Sustainable 24 18 Eco-friendly 23 18 Organic 22 10 Fair Trade 8 4 Multiple answers accepted Source: Mintel The past year saw a drop in companies that manufac- ture products that claim to be sustainable (9 points), eco-friendly (7 points), and fair trade (7 points). Likewise, the estimated percentage of sales from these categories declined. New in 2013 was the discussion around non-GMO products. This attribute ranks the second-highest in both manufacturing and percent of sales (42 percent and 31 percent, respectively). Data may not total 100 due to rounding Raw materials and production, warehousing, shipping, and labor account for half of manufacturers' expenses. The cost of raw materials dropped significantly due to better agricultural prices. The 14 percent estimate of net profit was recorded for the first time. In 2013, natural supermarkets top the list again as the channel where manufacturers report the fastest growth, at 25 percent. Specialty food stores and conventional supermarkets present an interesting dynamic: they rank as the second- and third-most cited channel for fast growth (by 21 percent and 20 percent of manufacturers, respectively), yet also show a strong portion of manufacturers claiming that they are slow-growing (14 percent and 21 percent, respectively). Foodservice appears to be suffering, with 25 percent reporting it as the slowest growing. 10% 17% 10% 12% 6% 3% 20% 21% 21% 14% 8% THE MANUFACTURER VIEWPOINT: CHANNEL SALES GROWTH % Indicating Fastest Growing in 2013 % Indicating Slowest Growing in 2013 Natural Supermarkets (e.g., Trader Joe's, Whole Foods Market) Conventional Supermarkets (e.g., Kroger, Safeway) Mass Merchandisers (e.g., Target, Walmart) Online Retail Foodservice (e.g., restaurants, cafes, cafeterias) 25% 9% Data may not total 100 due to rounding. Source: Mintel 25% Specialty Food Stores Other Gluten-free Convenient/Easy to Prepare Indulgent Less Indulgent and More Healthful Functional Portable Allergen-free Other I plan to develop specialty food that is also… Gluten-free remains an important specialty food offering, as 43 percent of manufacturers report it to be in their 2014 innovation plans. Also worth noting is the continued emphasis on convenient/easy-to-prepare foods. The largest drop in 2013 was seen in plans for specialty food products that are less indulgent and more healthful. 43 38 32 26 26 20 18 19 % Multiple answers accepted Source: Mintel Source: Mintel More than half of specialty food manufacturers own a manufacturing facility. To keep their plants busy, they co-pack for other manufacturers and also private label for retailers. Both the co-packing and private label business jumped in 2013. SOI_2014.indd 99 3/17/14 2:23 PM

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