The changing channels of food retail
Fraser McKevitt presented at IFE, the international food and drink event, on Wednesday 22 March 2017, covering both the in home and out of home channels.
Take home food and drink is worth £89bn a year. Recent years have been characterised by slow growth, the rise of the discount retailers, and shoppers changing where they shop. The movement of shopping trolleys away from larger out of town supermarkets has led retailers to rethink how they use their available space. The beneficiaries of this trend have been the discounters who have become more important to the 'main shop' mission and online grocery retail, which continues to grow.
Meanwhile, the out of home market has been booming, led by hot drinks sales, and especially coffee. In response, many retailers are simultaneously upgrading facilities to meet consumer demands for a more premium experience and also recognising the fact that the hot drink acts as an anchor for supplementary sales such as sandwiches, cakes or pastries.