The Pendulum Swings

By 2023, online food and beverage revenue is projected to exceed $38B. How did we get here?

E-commerce is not a new phenomenon in the food and beverage industry. Amazon, Walmart, and large grocers have mandated the expectation of convenience. 10 years ago, this was just a concept being discussed, 2011 pilot programs were being designed; slowly adopted by consumers, resulting in only 2% of the food & Beverage revenue.

The Pendulum Shift

1. Amazon buys Whole Foods, grocers’ hands are tied and forced to accelerate their ecommerce strategy.

2. The next generation of buyers entered the market. 49% of Millennials have purchased groceries online vs. 39% of Generation x and 25% of the Baby Boomers.

What are the market expectations to stay relevant in the food & beverage industry? Convenience, promise of same day delivery, and competitive pricing. Despite the adoption rates, there are a few challenges facing the industry.

· Delivery Infrastructure

· Availability

· Logistics for the Supply Chain

· Reduced Margins

In just 5 years, sales are projected to double. Business models have shifted in the grocery sector to align with the consumer buying habits. Take a moment and think about your clients. As a distributor, what are you doing to help your clients manage this shift? What trends are they experiencing? How are you being innovative and recognizing the shift in consumer buying habits and applying them to your business?

What tools and resources are you offering to keep your clients relevant? Hint, they have the same requirements as the consumer.

Keep an eye out for more regarding the role ecommerce plays in traditional distribution and grocery industries.

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