Study: Major food processors struggle as smaller companies gain competitive edge
Changes in consumers’ core values—amplified by social media, celebrity chefs and a myriad of food experts—are rewarding small and medium-size companies with above-average growth and slowing the growth of the Top 25 food and beverage companies.
A new report by A.T. Kearney, Chicago, and The Hartman Group, Bellevue, Wash., finds key food trends are slowing the growth of some of the nation’s largest food and beverage companies.
The report, titled “Is Big Food in Trouble?” shows the Top 25 U.S. food manufacturers have ceded 300 basis points to small and medium-size competitors since 2012 and have grown revenue just 1.8% compared to 11-15% growth for smaller companies. Changes in consumers’ core values—amplified by social media, celebrity chefs and a myriad of food experts—are rewarding small and medium-size companies with above-average growth and slowing the growth of the Top 25 food and beverage companies.