Food Business News - December 17, 2013 - (Page 17)

Deloitte study reveals consumers are open to buying food on-line, but manufacturers are not ready to offer them NEW YORK - Consumer packaged goods companies may be missing an opportunity to sell food and beverages on-line. While industry executives view on-line sales as a possibility, consumers say they are open to doing business with C.P.G. companies on-line. "Increasingly, consumers desire the convenience of the on-line channel to purchase their groceries," said Pat Conroy, vice-chairman of Deloitte L.L.P. and the firm's consumer products sector leader. "Although consumers are changing their behavior, C.P.G. companies are not as prepared as the data suggest they should be to take full advantage of this growing opportunity. The importance of e-commerce to C.P.G. companies has not, in most cases, translated into a fully-developed strategy for capitalizing on this channel." Deloitte has published a study titled "Digital commerce in the supermarket aisle" that features the results of a survey that included more than 2,000 adults between the ages of 21 and 70. The survey also includes interviews with 43 industry managers currently engaged in activities related to digital commerce at C.P.G. companies. The study revealed that while both executives and consumers anticipate on-line sales of food, household and personal care products will grow in the next year and over the next three years the consumers' intent to purchase the products on-line far outpaced the industry executives' expectations for December 17, 2013 both time periods. Executives expect 35% growth in the next year and 76% growth in three years. In contrast, consumers expect their on-line purchases to increase by 67% in the next year and 158% in three years, according to the report. At the company level, the study also indicated that while 92% of C.P.G. executives agree e-commerce is a strategic sales channel, there is a disconnect between the expressed opinions of the executives and the readiness of their companies to execute. Only 43% of the executives think their company has a clear, well-understood digital commerce strategy. Forty-one per cent of the consumers surveyed said they neither like nor dislike shopping in supermarkets. The indifferent consumers combined with those who said they dislike shopping at supermarkets, are most likely to consider e-commerce for C.P.G. products. If given the right incentives, people said they may be enticed to shop on-line for their products, according to the Deloitte study. Although consumers are unable to touch products on-line, and do not like paying shipping charges, the report identified a number of drivers that may influence digital commerce's reach to consumers. Such factors include free at-home delivery (84% of consumers said it is "very important" or "important"), pricing similar to or less than traditional physical stores (80%) and free in-store pickup (67%). "To successfully capitalize on the ecommerce channel, there are a number of critical steps C.P.G. companies can take," Mr. Conroy said. "Executives first need to establish a clear and well-understood digital commerce strategy. They should collaborate with retailers and social media platforms, and build a single view of the consumer. In tandem with that approach, they need to foster and build a talent base within their organization that includes digital commerce skill-sets." FBN IFIE D A U T HE NT CA 'S S A NY ® CE RT IC On-line sales looming for food RI E Crispy Thin Crust varieties: California Pizza Kitchen Greek Recipe, which is topped with tzatziki sauce, tomatoes, kalamata olives, red onions, spinach, oregano and a blend of cheeses; and California Pizza Kitchen Spicy Chipotle Chicken, which is topped with grilled white-meat chicken, roasted corn, black beans, poblano peppers, four types of cheese and a spicy chipotle lime sauce. FBN AM of olive oil and toppings like caramelized onions, Genoa salami and pecorino romano cheese. The Schwan Food Co. dished up new Freschetta frozen pizzas made with olive oil and sea salt, as well as new Red Baron offerings, including a pizza topped with spicy pepperoni, jalapeños and a chipotle sauce. New frozen pizzas from Nestle's California Pizza Kitchen portfolio include two limited-edition EA SALT CO M P Your Trusted Source for Specialty Salt ® Call our salt experts for a free sample kit: 800-353-7258 Optically Clean® Natural Smoking GMO Free Natural Flavoring Gluten Free Custom Sizing Organic Compliant Allergen Free Facility FOODBUSINESS NEWS ® 17

Table of Contents for the Digital Edition of Food Business News - December 17, 2013

Food Business News - December 17, 2013
Post acquisition binge continues
WhiteWave Foods to acquire Earthbound Farm
New U.S.D.A. action plan targets Salmonella
Table of Contents
Web Contents
Editorial - Potential exists for a great 2014
Sysco to acquire US Foods in $8.2 billion deal
Pepsi ousts Coca-Cola at Buffalo Wild Wings
Kroger sees greater opportunity in ‘natural’ portfolio
Diamond Foods continues to struggle
C.D.C. taking food safety surveillance to food service
Use of antibiotics in meat animal production may be ending
Pizza: The next big thing in fast-casual?
On-line sales looming for food
Bob Evans Farm on the brink?
Post acquisition binge continues
Breaking in to breakfast
Global trends to watch in 2014
Yogurt makers pump up protein claims
Market Insight - Corn sweetener prices will be lower in 2014
Ingredient Innovations - Mimicking mother’s milk
Sodium reduction: A little goes a long way
Beverage Business News - Wellness beverages
New Food Products
Ingredient Market Trends - Nature’s bounty, nature’s wrath
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - December 17, 2013