Food
The corona crisis has accelerated the growth of online grocery shopping at an unprecedented rate. At least part of that growth is permanent and that is bad news: e-commerce in food is not profitable. Is there a way out?
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Over the next two years, Mars Retail Group plans to open three new M&M’s candy stores, including one in Berlin. The flagship stores will have a "Wall of Chocolate", M&M’s walking around, and games.
Consumers have spent more money on their groceries over the past quarter, as prices have risen. Retailers and manufacturers will need to increase their focus on marketing and promotions in order to maintain demand.
FMCG manufacturer Unilever hasn't managed to achieve its expectations for the past quarter: due to the incessant rain in Europe, turnover increased by 3.3% while analysts had predicted 3.7% growth.
Digital disruption is causing strong worldwide growth for online grocery shopping, but the rise of new e-commerce models and ecosystems is forcing traditional players to adapt quickly and thoroughly.
Coca-Cola, Colgate and Maggi remain the biggest consumer brands in the world. It is becoming increasingly difficult for FMCG brands to grow: the key is to focus on penetration and not to forget older consumers.
General
FMCG giant Unilever saw its turnover from e-commerce grow by 47 % to 2.5 billion euro. E-commerce now represents almost 5 % of the group's total turnover.
Wessanen has been acquired by a syndicate of investors led by French group PAI Partners. The French were willing to spend 885 million euros on the Dutch natural nutrition specialist.
Europeans spent 2.3 % more for everyday groceries in the final quarter of 2018 than in that of 2017. In the third quarter, growth was still + 3.8 %. Discounters are also experiencing a slowdown.
The food sector won't escape disruption, according to Nils van Dam of Duval Union Consulting. The increase in conflicts within the sector is no coincidence: the entire chain is under pressure, and FMCG companies will have to invest in data to survive.
Is e-commerce in food a feasible business model? The answer is yes, according to British Ocado, a pure player that is much more than just a webshop...
Both Nestlé and Kraft Heinz have just announced new research and development investments. The major brand manufacturers are feeling the heat from innovative start-ups and want to speed up.
Coca-Cola, Colgate and Maggi are the most popular FMCG brands worldwide, according to a Kantar Worldpanel report. Local brands are stealing market share however.
In the fourth quarter of 2017, European consumers spent an additional 4.4 % on groceries, the highest increase since 2012. Benelux volumes are under pressure though.
Supermarkets need to reinvent themselves, as shopping behaviour has moved online and the competition is changing drastically. The focus nowadays is not as much on products as it is on experience and more technology.
After it introduced Amazon Prime to an increased number of European markets, Amazon is now bringing in its own FMCG private labels. Over the past few weeks, the online department store launched several private label products in Europe and it has plans for even more.
