Supply Chain Basics: The Dynamics of Change in the U.S. Food Marketing Environment

The growing retail desire for exclusive and specialized food products offers new marketing opportunities for small and medium-sized food suppliers that understand the new world of food merchandising and are capable of delivering food products that satisfy commercial requirements for quality, innovation, and value. This document provides an overview of the changing retail landscape and identifies some of the characteristics associated with successful food retailing. It is designed to help smaller scale food producers and processors develop profitable business strategies and identify customers likely to appreciate their unique products. This publication addresses two major trends changing retail food marketing—a move toward differentiation as a marketing strategy and a simultaneous shift towards vertical integration between food suppliers and buyers. It examines the ramifications of these developments for the smaller scale food supplier and identifies strategies for remaining competitive in this environment.