Disruption is nothing new in the agriculture and food industries, yet massive shifts for the Big Six and Amazon’s decision to buy Whole Foods aren’t the only activities producers should follow. Here are several other shifts that suggest producers, manufacturers and retailers will continue reinventing what the future of food looks like.
Dinner To Go
WHAT: Albertsons, a food retailer based in Boise, Idaho, purchased Plated, a meal-kit company based in New York, New York.
WHEN: September 2017
WHAT IT MEANS: Albertsons’ 2,300 stores aim to meet consumers where they are. “It was only a matter of time before other grocers started to take steps to combat Amazon’s growing influence in the category,” industry news outlet TotalRetail writes.
Grocery Cart Mashup
WHAT: The Kraft Heinz Company, which is based in Chicago, purchased multiple food units from Suntory based in Tokyo, Japan.
WHEN: Early 2018 (anticipated)
WHAT IT MEANS: The product divisions Kraft Heinz purchased fall under the Cerebos brand. Kraft Heinz says the purchase reflects its commitment to the Oceania region and to big investments in 2018.
WHAT: NRD Capital from Atlanta, Ga., acquires Ruby Tuesday of Maryville, Tenn.
WHEN: October 2017 (announced)
WHAT IT MEANS: The worth of the Ruby Tuesday restaurant chain has fallen amid rising debt and dwindling same-store sales, according to a report from Nation’s Restaurant News. One example: The acquisition is valued at roughly $340 million, hundreds of millions of dollars lower than Ruby Tuesday’s $2.4 billion peak enterprise value in 2004, the news article points out.
WHAT: Hershey based in Hershey, Pa., is considering whether to bid on Nestlé’s U.S. confectionery division based in Arlington County, Va.
WHAT IT MEANS: Hershey has boosted net sales and net income in recent months, and its move for Nestle’s U.S. candy branch would be yet another signal of its intention to make investments and expand its collection of snack foods, according to CNBC.
WHAT: Ferrero (Italy) will buy Ferrara Candy (Oakbrook Terrace, Ill.)
WHEN: Fourth quarter of 2017 (anticipated)
WHAT IT MEANS: The maker of Nutella will expand its portfolio to include candy brands Brach’s, Lemonheads, RedHots and Trolli. “We are continuing to increase our overall footprint and product offering in the important U.S. market, establishing a presence in new confectionery categories with attractive growth prospects including gummy and seasonal candies,” Chairman Giovanni Ferrero told FoodBev.com.