The Future for Animal Based Food Products: What Retailers Want

Andrea Greaves, Understanding Unltd.

In terms of what retailers want in animal based food products – they want what the consumer wants. Although profit margin is top of mind for most retailers, consumers play the central role in deciding “who’s winning at the shelf.”

Currently, we are in a state of transition – with the marketplace changing dramatically and consumer “issues” (health, environmental, ethical) at the forefront. While issues of food safety, the safety of antibiotics and the explosion of organic foods are changing the face of today’s meat and dairy departments, consumers are looking for partners, people, retailers they can trust…in whom they can feel secure.

Despite our knowledge of how the animal based food markets work – from farm gate to consumer’s plate – consumers are quite naïve. While they trust the local “butcher” at the grocery store, they doubt the safety of “factory meat.” Retailers like Whole Foods and small-batch producers are today’s response to the monoliths…the Wal-Marts and Smithfield’s of the world.

How will this turn out in the future? What is the impact on the market for antibiotics? On one hand we have producers who want healthy animals with the greatest return…on the other hand we have consumers who want to feel secure. Clearly there is a future for those who meet the consumers in the middle. The question remains, how big is that piece of the pie?

Comments, questions, discussion welcome…

Greaves, Andrea J., Understanding Unltd., 4591 Brentwood Ct., Zionsville, IN 46077 Tel/FAX: 317.873.9204 email: andrea@understanding-unltd.com