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Processed food industry

Playbook for Success in the Modern Food and Beverage Industry

The total revenue of the global food and beverage industry is skyrocketing with each passing year. Although the quality of products or service plays a significant role in the survival of food and beverage companies, this no longer remains the only ingredient for success in the food and beverage industry. With the ever-changing market trends and the growing need to satisfy changing consumer demands, companies in the sector must be on their toes to grasp new food and beverage industry trends. It is also important for businesses in the sector to identify ways to leverage maximum benefits from the market opportunities. Based on our discussions with several prominent food and beverage companies from different regions, here are some key takeaways on how the food and beverage industry is changing and what companies in this sector must do to thrive.

With consumer demands and preferences changing rapidly, it’s time for food and beverage companies to take a fresh look at their strategies to better connect with target consumers. Request a free proposal to know how we can help you achieve this.

Trends disrupting the food and beverage industry

Catering to a new group of shoppers

The old rules of the CPG no longer work with the new-age shoppers. Millennials and Gen Z consumers are inclined to brands that fit their lifestyle. This group of consumers are known to shy away from manufactured marketing of traditional food and beverage industry products. They favor ‘real ingredients’ and expect labels to be clear and easily understandable. Moreover, the internet has brought about drastic changes to customer expectations not only online but also in the store. Younger consumers want to be able to order ahead, pay, and capture loyalty rewards, all by using their phones. Catering effectively to this new group of consumers should be a major milestone for companies in the food and beverage industry.

Direct to consumer channels for launching new products

New players in the food and beverage industry often start out by selling directly to consumers, mostly using online channels. Direct to consumer brands are often more successful in capturing deep data on their target consumers which can be further used to deliver personalized consumer experience, refine product strategy, and build long-term customer relationships. By selling directly, players in the food and beverage industry can also experiment with new business models. Furthermore, when these brands plan to move to brick and mortar, it can dramatically enhance their chance of success.

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Focus on smart growth

With so many brands in the food and beverage industry and ample choice available to consumers, retailers are often quick to pull the chord on products that fail to deliver quick sales or even attract new customers. When launching a new product in the food and beverage industry, it is always better to start small in order to be able to manage the complexities of retail distribution. Brands that focus on expanding too rapidly could run into crippling cashflows or may even face critical manufacturing or supply chain problems. Also, increased focus must be given to communicating stories at the shelf via packaging, promotions, shelf-edge marketing, and the other tried and tested tools of retail marketing.

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Organic food manufacturing market

Infiniti’s Inventory Forecasting Solution Helped an Organic Food Company to Optimize Supply Chain and Efficiently Balance their Stocks

Inventory Forecasting for a Company in the Organic Food Market

The sales of organic food in Europe has skyrocketed over the past few years and is expected to grow further over the coming years. Major industry players in the organic food market are also undertaking strategic initiatives such as the introduction of a wide range of innovative products in the organic food market. With this, the future seems bright for organic food brands.

Although the organic food market is experiencing positive growth, they are also expected to face significant challenges. Identifying the target stock levels that are required to meet the rising market demands have become challenging for organic food companies. Also, organic food companies are facing heavy pressure to meet the market demand to better plan sales and production. Therefore, organic food companies are approaching firms like Infiniti Research to leverage their expertise in offering inventory forecasting solution to tackle supply chain challenges.

With rapid changes in the organic food market, are you facing challenges in accurately predicting the potential product demand? Our inventory forecasting solution can help you tackle this challenge. Request a FREE brochure to gain more insights into our services and their benefits for your business.

Business Challenge

The client is an organic food supplier based out of Europe. The client wanted to streamline their supply chain structure for improving customer targeting, meeting market demands, and managing their inventory requirements. The client’s unstructured approach to supply chain management impacted their overall growth rate. This also impacted their sales rate and profit margins. The client, therefore, approached Infiniti Research to leverage their expertise in offering inventory forecasting solution.

Other challenges faced by the organic food supplier were:

Organic food market challenge 1: Inventory stockouts

With rapidly evolving customer needs and demands, the organic food supplier was facing difficulties in maintaining adequate stocks to meet customer demands. With this, the company constantly faced issues of stockouts. With Infiniti’s inventory forecasting solution, they wanted to reduce inventory stockouts and warehouse holding cost.

Organic food market challenge 2: Shipping challenges

The client’s inability to manage the inventory requirements resulted in shipping challenges. This affected their sales rate and resulted in an increase in the churn rate. The client, therefore, wanted to accurately forecast the potential sales and manage their shipping.

Organic food market challenge 3: Increasing product obsolescence cost

With increasing obsolete inventory, the client witnessed a dip in their overall revenue. With Infiniti’s inventory forecasting solution, the client wanted to accurately forecast the demand and reduce product obsolescence cost.

Solutions Offered and Value Delivered

The experts at Infiniti Research analyzed the client’s past sales data to predict the organic food product’s seasonality and peak sales levels. The experts also identified market forces and potential demand for organic food products. They also analyzed the client’s key competitors to understand the organic product categories with high demand in the European organic food market.

With Infiniti’s inventory forecasting solution, the client was able to adequately stock products to meet the market demands. This helped the client in the organic food market to reduce product holding time in the warehouse. Also, accurate inventory management helped them better manage manpower during peak periods. By being aware of product requirements, the client was able to improve supplier negotiation and improve their production cycles accordingly.

In the course of one year, the company in the organic food market was able to:

  • Optimize the supply chain and reduce food wastages
  • Optimize transportation processes
  • Balance their stocks effectively
  • Improve production cycle efficiency

Are you looking for ways to overcome inventory challenges in your company? If yes, our inventory forecasting solution can help. RFP to know how our inventory forecasting solution will help you effectively optimize your inventory.

Future of Organic Food Market in Europe

With the demand for organic food on the rise, the future looks bright for companies in the organic food market in Europe.  Furthermore, the rising healthcare concerns owing to the use of pesticides and herbicides is driving the demand for organic food in the European market. However, like all other industries, the organic food market is also encountering several challenges. Let’s have a look at some of the major challenges facing the organic food market.

CHALLENGES FACING COMPANIES IN THE ORGANIC FOOD MARKET

CONTACT US to learn the benefits of leveraging Infiniti’s inventory forecasting solution for your company.

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