Channel Strategies

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Limited-assortment stores, dollar stores and supercenters are the fastest-growing segments of the brick-and-mortar retail food industry.

Drink sales remain a dynamic and important part of the restaurant and bar business, but finding growth continues to be a challenge for operators and brand marketers alike.

Digital solutions like eCommerce click-and-collect models are offering more opportunities for supermarkets.

Both non-alcohol and alcohol private-label beverages outperformed the industry overall.

Whether it’s Amazon’s acquisition of Whole Foods Market or Walmart’s acquisition of Jet.com, the growth and impact of grocery eCommerce has become ever more visible in the past few years.

Where and how consumers shop for food and beverages continues to evolve as eCommerce reshapes the path-to-purchase.

In August, Seattle-based Amazon finalized its $13.7 billion acquisition of natural and organic retailer Whole Foods Market, Austin, Texas. The acquisition has translated into big changes not only in the pricing of many natural and organic products sold within Whole Foods stores, but likely will impact the ways that consumers purchase consumer packed goods (CPG).

Although the eCommerce effect has presented a new dynamic for the retail market, the convenience store (c-store) channel has shown itself to be resilient. However, experts note that the channel still is navigating other consumer packaged goods (CPG) trends in order to meet the needs of today’s consumer.

The tenth amendment of the U.S. Constitution states that outside of the powers delegated by the Constitution, states and their people possess the remaining power. Because of this, the U.S. alcohol sales laws can vary greatly from state to state; however, deregulation by states for various reasons is offering new opportunities for alcohol retailers but also is intensifying competition.

Whether quick-service, fast-casual or a full-service restaurant, consumers are experimenting with new flavors and seeking more premium offerings like specialty coffee, cold-brew coffee and iced tea while dining out.