Competitor Strategies in Staple Foods

Delivery

This report comes in PPT.

Key Findings

Major players are offloading major divisions as they chase ever-harder profitability

Major multinational staple foods players are slimming down, divesting brands or even presence in industries as they face serious headwinds. This push for renewed focus may even encompass Kraft Heinz (number two staple foods company globally) as plans to split into North American Grocery Co and Global Taste Elevation Co are “paused”, but have not disappeared.

For many companies, private label is now the biggest strategic competitor

Major companies in the staple foods industry are having to adapt to an ever-growing challenge from private label. Prices have driven many consumers to seek cheaper options, and retailers have responded; increasingly recognising private label as a strategic asset, they are not just expanding ranges but premiumising them, competing in spaces previously held by top brands.

Cereals are going through a major ownership shakeup

The pressure to refocus on core/fastest-growing assets is less keenly felt by private food companies, which see the attractiveness in global reach, strong brand appeal and core capability synergies. Thus, two major confectionery companies now have over a fifth of global breakfast cereals share: Ferrero (which bought WK Kellogg Co) and Mars (which bought Kellanova).

Strategies now recognise and adapt to GLP-1 use

Strategies regarding how to react to the impact of GLP-1 drug use have evolved significantly over the past year. Major companies have incorporated the belief that increasing GLP-1 use will lead to greater nutritional demand (particularly for protein), fewer calories consumed overall and a need for smaller portions seeking to be addressed.

The alternatives category is diversifying as consumers reject analogues

Meat alternatives are increasingly struggling with falling sales and consumer scepticism, driven by taste issues, health concerns and - in North America, at least - a return to promoting red meat as a healthy source of protein. In this context, companies are diversifying and vegetable-forward launches are proving popular as consumers seek natural, high-fibre, high-protein options.