News & Views

GSM Views on Channels of Distribution

Channels of distribution for nutrition, food and beverage are continually adjusting to increased consumer demand for healthier, more nutritious offerings.

  • •   Grocery stores will remain the dominant form of distribution to consumers.
  • •   Retailers are dedicating more retail space to natural & organic foods:
  •     (1)   Whole Foods, the traditional leader in this space is losing market share and pricing power.
  •     (2)   New formats such as Sprouts are expanding as more authentic for wellness-focus customers.
  •     (3)   Conventional grocery stores are expanding Healthy/Wellness footprint in their stores.
  •     (4)   Walmart has announced its Wild Oats organic initiative.
  • •   Restaurants are responding with fresh concepts and stealth "better for you" offerings.
  • •   Home delivery is gaining share and simplicity.
  • •   Multilevel marketing is an effective channel particularly for "story" products.
  • •   Web-based retailing is a low cost penetration alternative, growing in popularity.
  • •   Agribusiness will become even more global and interconnected.
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