Food is a basic human need, and as such demand elasticity has remained low throughout the ages. However, as the food industry has grown and evolved, the introduction of various price and quality levels has become standard for the same types of foods, wines and spirits. Food, wine and spirits companies face two distinctly modern challenges: modern consumers are used to choosing from a wide variety of goods and they expect products to meet or exceed their expectations and needs. On the other, the combination of unprecedented global population, the recent economic downturn and volatile commodities markets have continued to test their ingenuity.
The modern food, wines and spirits sector includes food sold at retail shops and food served in restaurants. Both categories felt the effects of the recent economic crisis in similar ways: at first they were hit by increased price sensitivity from consumers, and then preceded to benefit from the crisis. As the crisis lifted, consumers were still reluctant to splash out of larger spending but small luxuries like gourmet food items, wines and spirits were seen as acceptable ways to indulge without ruining their budgets.
In this environment of “brand promiscuous” consumers, companies must continue to invest in the establishment and stewardship of a strong brand identity. Personalized services and a sense of a relationship with a brand are more important than ever, however brand development and marketing alone are not enough to ensure success.
Expandys provides clients with access to accurate and up to date information on supply and demand developments, production and distribution advancements, operational risks and regulatory challenges and upcoming consumer trends are all essential.
