In the ever-evolving landscape of the food and beverage industry, the pandemic has acted as a catalyst for significant trends that continue to shape the future of retail. From the surge in online shopping to the impact of inflationary pressures, the complexities facing Food & Beverage brands are both numerous and transformative. As we navigate these challenges, the need for change and evolution has become more crucial than ever, compelling retailers and consumers alike to adapt to the changing tides.
One of the most noticeable trends brought about by the pandemic is the skyrocketing demand for online shopping, and subsequently the massive growth of new and emerging brands. In the United States, food and beverage sales as a percentage of total retail e-commerce sales have risen from 9.3 percent in 2017 to nearly 14 percent in 2022. The trajectory is projected to continue its ascent, reaching an estimated 21.5 percent by 2027 as reported by Statista. This shift has reshaped the way brands approach their sales channels, emphasizing the importance of not only traditional in-store experiences but also the digital realm.
However, alongside these promising trends, a new set of challenges has emerged, largely driven by the current inflationary pressures. This has created a volatile environment where brands are forced to adapt and innovate. For emerging and new brands aspiring to flourish within the retail landscape, it’s crucial to navigate these complexities while maintaining a competitive edge.
A pivotal aspect of this adaptation involves managing the intricate web of sales channels. Brands must not only oversee their direct sales channels, such as Shopify, Amazon, and Walmart but also grapple with vast amounts of data from retail distributors and various retail platforms. Unfortunately, this data often arrives unstructured, sporting different formats, and plagued with inconsistencies. This lack of a holistic understanding makes it difficult for brands to assess the efficacy of their marketing efforts, promotions, and even the true cost of sampling.
Emerging brands must tackle this challenge head-on if they are to carve a niche for themselves in the competitive retail sphere. One strategy that has proven effective is the collaboration with partners to share sales data regularly. This approach provides brands with a comprehensive view of their performance across various platforms and channels. The key to effective implementation lies in harnessing reporting and automation tools, which facilitate the consolidation of information. This, in turn, equips brands with actionable insights, allowing them to monitor sales fluctuations, gauge the efficiency of their strategies, and gain a profound understanding of their core business KPIs.
At Evidnt, we developed a platform, Nexus, to help brands aggregate vast amounts of data and understand the driving factors of growth. As we continue to navigate the intricate challenges and promising opportunities of the food and beverage retail sector, the power of data-driven insights cannot be underestimated. By embracing technology and collaborating with partners, emerging brands can not only weather the storm but thrive and create a lasting impact within the industry.
In a landscape that demands constant adaptation, the path to success lies in understanding the complex interplay of trends, challenges, and innovations, all guided by the compass of data-driven insights. Only then can Food & Beverage brands continue to deliver value to their consumers while shaping the future of retail for years to come.
By Alex Andreyev, CEO, Head of Product at evidnt
Alex is known for building the first multicultural data platform for Gravity, which was sold to Dentsu, a multi-national media holding company. Following this, he built a maturity canvas for IPG and led the data, analytics & programmatic teams for Coca-Cola, Johnson & Johnson, Sara Lee, Este Lauder, Darden, IBM, and AMEX. These experiences make Alex one of the foremost thought leaders in the space of retail and CPG data development and management.