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/802137
THE SPECIALTY FOOD SUPPLY CHAIN MANUFACTURERS ore than 40 percent of specialty food manufacturers had sales increases of 20+ percent. Average net profit comes in at 18 percent, though cost of ingredients and minimum wage hikes are among manufactur- ers' biggest concerns. One-third of manufactur- ers say distributor to retail is their fastest-grow- ing trade segment. M • Manufacturers cited entries into Amazon, club stores, hotels, and universities as among their 2016 successes. Those not equipped to sell to these channels should start by building up contacts and infrastructure. • Fine dining restaurants are the fastest growing foodservice sales channel for manufacturers, who can boost their business with a product that fits the needs of this channel. • Plant-based, vegetarian, and vegan foods have emerged as an area of product innovation for more than one-third of manufacturers, and signal an area of growing opportunity. What You Need to Know Mean Annual Sales: $2,471,212 Mean # of SKUs: 36 Mean # of Staff: 33 Full-time, 18 Part-time Own Manufacturing Facility: 70% Co-Pack for Other Manufacturers: 45% Co-Pack Private Label for Retailers: 49% Net Profit: 18% Mean Share of Total Expenses Raw Materials 35% Production, Warehousing, Shipping, and Labor 24% Packaging 13% Administrative 11% Advertising and Marketing 9% Other 8% 2016 At-a-Glance Up 30% or more Up 20–29% Up 10–19% Up 1–9% Unchanged Down 1–9% Down 10–19% Down 20–29% 20% 10% 0% 28% 13% 16% 16% 15% 7% 1% 3% Dollar Sales Change in 2016 Mean Share of Sales by Channel Source: Mintel Distributors to Retail 30% Direct to Retail 34% Direct to Consumer (farmers markets, etc.) 8% Distributors to Foodservice 4% Third-Party Internet Retail Sites (e.g., Amazon, Mouth.com) 5% Direct to Consumer via Own Website 9% Other 5% Source: Mintel Fastest Growing Channels Natural Supermarkets Specialty Food Stores Conventional Supermarkets 23% 23% 17% Source: Mintel % Fastest Growing Foodservice Outlets Fine Dining Restaurants Coffee Shops Full-Service Casual Restaurants Institutions (e.g., schools, universities, hospitals, hotels) 21% 13% 13% 11% % Direct to Foodservice 6% Source: Mintel STATE OF THE SPECIALTY FOOD INDUSTRY 2017 S5