Today's consumer packaged goods companies are facing a winner-take-all world in which about half the sales growth - more in certain categories and markets - is coming from digital channels. Companies have to earn their online market positions with new approaches and skills tailored to digital sales, says a report released by The Boston Consulting Group and the Grocery Manufacturers Association.
Chipotle Mexican Grill revealed on Tuesday that federal prosecutors had expanded their inquiry into the company's multi-state outbreaks of food-borne illnesses, further threatening sales that declined steeply by the end of last year.
On average, $10m is the cost of a recall on a food company. Add this to the fact that recalls have been doubling every year from the 2002-2014 period in the United States, and it should worry any stakeholder in the manufacturing and processing facilities. Yet many of them are surprisingly optimistic about the chance of a recall affecting business, and it's their belief of invincibility that leaves them unprepared to weather a storm when one blows up. When manufacturers take a risk on their customers' health, they take a risk on their business’s health.
While operators need to closely monitor the avian flu, which has caused the destruction of more than 30 million chickens and turkeys, chicken production is up 3.1 percent compared to last year, says DeWayne Dove, vice president of risk management for SpenDifference. This increase in production, coupled with a decrease in exports, has industry experts forecasting a 6 percent decrease in cost versus a year ago. Eggs, however, are in short supply, with prices up more than 10 percent. Tom Turkey breast is up approximately 10 percent.
Panera Bread Co. said it is progressing on its commitment to remove artificial additives by publishing a list of artificial colors, flavors, sweeteners and preservatives it has eliminated or intends to remove from its Panera Bread and St. Louis Bread Co. food menus by the end of 2016. Panera reportedly is the first national restaurant company in the U.S. to publicly share a comprehensive list of ingredients that will be removed from or never appear in its menu items.