Specialty Food Sales Continue Strong Growth Trend
The Specialty Food Association is reporting that dollar sales for the specialty food industry grew by 15 percent between 2014 and 2016 and reached $127 billion in annual sales in 2016, now accounting for 14.8 percent of all food sales at retail. Snack food sales reached $16.3 billion in 2016, and snacks now account for about 28 percent of the entire specialty food market. Jerky and meat snacks led the growth for the snack food segment, leaping ahead by more than 86 percent between 2014 and 2016, while sales of chips, pretzels and similar snacks grew by 13.6 percent between 2014 and 2016 and now account for more than $3.5 billion in annual sales.
Cheese, including plant-based cheese alternatives, still continues to be the leading category in the specialty food market, with $4.422 billion in sales during 2016, for a 12.4 percent increase between 2014 and 2016.
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Some of the growth in the retail channel is coming in mainstream retail channels, with growth in sales in chain grocery stores and mass merchants outpacing that in natural and specialty chains for the first time. Growth is also happening in the foodservice channel, as more fine dining restaurants adopt specialty food products into their menus. Foodservice represents more than one fifth of specialty food sales and grew by 13.7 percent between 2014 and 2016.
ACS Competition Now Open for Entries
The 2017 American Cheese Society Judging & Competition is now open for entries!
ACS’s annual judging of American cheeses and cultured dairy products will take place July 24-25, 2017 in the organization’s hometown of Denver, Colorado. The judging will be held immediately prior to Cheese with Altitude, the 34th Annual ACS Conference in Denver.
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Winners in each category, including “Best of Show” honorees, will be revealed at the Awards Ceremony in Denver on Friday, July 28. Entry deadline is May 12, with late entries accepted until May 19 for a higher fee.
Insurance Broker Points out Risks of Grocery Store Foodservice
Grocery store takeout and in-store dining is the fastest growing segment in the foodservice industry. Lockton, the world’s largest privately held insurance broker, offers grocery stores with dining services insights on business risks.
Product recall expert at Lockton, Ian Harrison, explains what grocerants should look for to protect their business and their customers in Grocerants Are on the Rise, and So Are the Risks. The report points out that foodborne illnesses outbreaks linked to U.S. grocers more than doubled from 2014 to 2015, according to data from the Centers for Disease Control and Prevention.
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While Millennial habits have led to the popularity of in-store meal preparation, consumer confidence that food in grocery stores is safe is decreasing. Food safety and sanitization methods are vital to this industry, and so are protocols for handling food poisoning claims. Serious damage can be done to an entire chain of stores from a food contamination claim or Food and Drug Administration violations.
Although the risks are broadening with this trend, so is insurance. Traditionally, economic loss protection insurance has been two separate policies; food manufacturing and food service. The rise of hybrid processing and service creates a new vertical integrated risk.
The new insurance policy combines exposures like foodborne illness, supplier contamination, and public health shutdown of retail locations in addition to processing exposures of accidental contamination.
