Food Retail- An Inside View

The global food retail industry has evolved in a phenomenal manner over the past couple of years. It comprises of several different classifications of food stuff includingpoultry products, dairy, fruits and vegetables, cooked and preserved foods, organic meals etc. the reasons of rapid growth in the industry can be attributed to technological advancement, and ever growing demand of convenient and ready to eat meals . Another category of food retail that caters to an entirely different market is that of snacks and drinks. Amidst the increasing workload and tight schedule of general people around the globe, these products have been of high importance. 

 

Speaking of recent developments in this sector, we see that food retail industries are changing to keep in line not only with socio-economic developments, but also changing lifestyles and mind sets of the general public. Rapid advancement in information technology has provided these dealers with much better information on changing consumer preferences and tastes. New packing technology has made it possible for these organisations to provide consumers with better quality products with a higher degree of innovation and flexibility than ever before. A good example here would be of flavoured yogurts that have penetrated and established a strong foothold in the market for retail foods. Similarly, a decade from now, no one would have imagined the existence of cooked and packed foods. Today, with new and better technology, foods can be preserved up to duration of one year. In the same manner, introduction of retort packaging technology into this particular industry have brought about a remarkable revolution in the food retail industry, with prospects for growth and expansion wider than ever before.

When we have a look at the major contenders in this particular market for food retail, we see that 4-5 firms have successfully managed to create a strong brand image and loyalty over the past few years. Nestle, ConAgra Foods, PepsiCo, Unilever, Kraft and Dean Foods have been the most prominent names in this industry.   As a matter of fact, the food retail industry is led by companies in the European Union followed by the Unites States. The global food retail sale accumulates revenue of about US $4 trillion per annum. The big 15 food retail companies gather about one third overall food retail sales globally. 

Amongst the big guns in the food retail industry, there have been slight variations amongst the industry leaders in terms of stock prices. As quoted on NASDAQ and NYSE, PepsiCo and Kraft have been leaders in terms of higher share price with US$ 85.74 and 56.92, respectively. This is followed by ConAgra and Unilever with share prices of US $ 31.13 and 43.40 each. Dean food is also a well-known name of such industry but the company has showed a weak financial performance. Dean foods stock price recorded of US $17.59 but the company has potential to grow.  This trend explains investor preferences about these firms and the level of confidence investors have rested in these firms. These firms have managed to establish a strong footing in the top stock exchanges across the globe, and have been successful in maintaining a secured level of trust in the exchanges they are traded in.