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As the marketplace turns

The Futsu squash tastes very nutty, sweet and a bit earthy. The skin tastes similar to a baked potato. It has firm but creamy flesh.
The Futsu squash tastes very nutty, sweet and a bit earthy. The skin tastes similar to a baked potato. It has firm but creamy flesh.

As the seasons change, so does the marketplace. Your passion for producing food also needs to keep up with population demographics which are changing fast.   

 

Statistics Canada reported that, as of July 1, 2024, our numbers hit 41,288,599. Through international immigration, our numbers increased by 250,000 in the April 1 to July 1 quarter. By province, Alberta is experiencing the fastest growth. 

 

Immigration, access to information and travel all impact the food and beverage industry. You might have decided to produce an apple variety because it was great in baking, but that consumer preference may change as the population ages and as new citizens bring their own recipes to the table.

 

Food influencers may tout new health benefits in specific products that drive sales. Or perhaps you can spotlight a nutrition benefit that refreshes the health halo on your product.

 

Consider the potato category. When I worked at a store, the big item was a 10lb bag. When we put 20lb bags on sale, I had to get it up on my shoulder to carry it out for people. Now, you would be hard pressed to find a 20lb bag of potatoes and a lot of space is devoted to mini potatoes or creamers. Consumers want potatoes that cook faster and can be used in different applications. This requires change in your business from varieties to equipment to mindset.

 

To see change in the business, it can be helpful to look at different categories. The other day I was looking for frozen lemonade. That used to be a sizeable section with a number of national brands. It is now one door in the frozen aisle with limited SKUs. You can still buy frozen orange juice, lemonade and fruit punch but there is one brand and private label.

 

Obviously, consumers have changed and are willing to pay the premium for orange juice not from concentrate. One would think in this environment where people are trying to reduce a grocery bill, a $1.79 frozen orange juice might win over a $5.99 Tropicana. Obviously, consumers are looking for the convenience and perhaps health benefits of not-from-concentrate pure juice.

 

We know that consumers are exposed to so much more in terms of flavour. Significant percentages of shelf space are devoted to products from all over the world with many different flavours and ingredients. Ask yourself if the products you are producing are items that would appeal to a changing population.

 

Product benefits evolve

 

If you have heard me speak at an event, you might have heard me talk about product features and benefits. Features are easy to talk about, but people buy for benefits. You should be thinking about the benefits your product delivers in today’s marketplace.

 

An example of this in Nova Scotia is sauerkraut. The origin of the product is probably from people who immigrated from Germany and made pickled cabbage. This was a means to keep cabbage much longer by adding vinegar and salt. Now we see fermented foods as a popular trend for gut health. The benefit of sauerkraut in the past was a preservative and now it is right on trend for gut health. Unfortunately, a lot of the producers did not or could not evolve and sell into the current marketplace. This is not easy work. 

 

Customers change too

 

In the marketplace, suppliers are doing more of the work. You need to prepare the food safety documentation, focus on service level, and learn what is happening on your customer’s shelf. You need to participate in their programs and monitor the results. Being a good supplier today is very different than it used to be.

 

Change is inevitable and understanding what is important to consumers and customers is important work. It can be challenging and not as rewarding as harvesting a field or orchard. One way to stay abreast of these trends is to attend trade shows, both on the retailer side and the consumer side. Or watch the news that comes out of these shows in magazines or web postings. 

 

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Submitted by Peter Chapman on 23 October 2024