10 things disrupting today's food industry

One of the best ways to learn about where a particular industry or market is going is to attend an industry conference.

Also read, Tips and information for dietitians from food companies.

One of the top food conferences is run by one of the top food marketing schools in the world, Saint Joseph’s University outside of Philadelphia.

I recently attended the 2016 Food Industry Summit, where top-level executives from Campbell’s, Coca Cola, Wegman’s, McDonalds and Perdue Foods listened to food brands, distributors, restaurants, craft brewers, specialty coffee makers and analysts talk about where the food industry is going.

What is really interesting is that some industries, like the food industry, that have changed little in hundreds of years are now seeing new growth opportunities in presentation and usage. Unlike technology, where people develop cool things that no one ever thought to ask for, in the food industry, customer tastes and wants drive demand.

Customers now expect fresh and locally-raised produce that doesn’t use chemicals, cage-free meat and beef without steroids. Those companies that don’t comply are finding it harder to compete.

Here are 10 things that are disrupting the food industry:

1. Mushrooms -- Blending mushrooms with beef provides organic growth for the industry and it is low-calorie. You will soon be hearing about barbecue and jalapeno-flavored mushrooms.
2. Coffee -- People want a tremendous variety of coffee from specific parts of the world like Brazil, Indonesia, Colombia and Vietnam. Added ingredients include pumpkin and apple.
3. Beer -- Consumers want craft beers, and now there are more than 5,000 of them in the United States. To differentiate yourself, it is important to get involved and adopt charities.
4. Fast food— Subway, Chick-fil-A and Chipotle Mexican Grill, which are focused on healthy products grown by local farms with few to no antibiotics, are seeing growth.
5. Private labels— Many regional brands are providing products for private-label products created by supermarkets, restaurants and large retail chains with food divisions, like Target and Wal-Mart.
6. Sustainability— Consumers and food companies are interested in sustainability, which means energy efficiency, use of natural resources and reducing dependency on chemicals. Companies like Wal-Mart and Target require green, sustainable product development.
7. Buying entrepreneurs— Large corporations are learning that they need to let the companies they acquire continue to be autonomous or they lose their identity and get mired in the corporate bureaucracy. They are leveraging the larger companies' buying power, reach and capital to grow the company.
8. Mom and pops— The number of individual retail stores is shrinking, and having to deal with large chains means a squeeze on margins.
9. Regulations— The amount of time and money being spent on regulations is driving prices up for the seller, but the buyer doesn’t want to absorb those costs, so the producer is stuck between the proverbial rock and hard place.
10. Customer service— Seems obvious, but getting to know the customer is really important, as is making sure you follow up on problems with quick solutions. Price is important, but all things being equal, you can’t be cheap on customer service.

SOURCE Marc Kramer, New York Business Journal