True “Disruption” of Food Is Difficult

Consumer tastes, preferences and expectations around food are changing. People are demanding more healthy food while also sometimes making the foray into purchasing food items online, mostly non-perishable, potentially hollowing out the center of grocery stores. Many companies are also entering the marketplace in meal ordering and meal kit delivery. While these companies have been able to raise lots of investor money, they often fail because they can’t find a sustainable business model.

There is a lot of interest in using technology to “disrupt” food. However, we do have a hard-wired relationship with food and like to forage for it, and those instincts are difficult if not impossible to change. The fundamentals of food business management, like managing cash flow, financial planning, brand management, understanding your customers and investor relations remain of paramount importance in food business success, regardless of the channel used to reach the customer. While there is a place for technology to enhance customers’ relationships with food, true “disruption” of the fundamental dynamics of that relationship is likely a difficult goal to realize.

And now, our roundup of the best food and beverage finance news, events and resources from around the web…

Business Model Insights


Raising Capital

CPG/National Brands

Market Trends

  • Time to Address the ‘Omnichannel Disconnect’ (Progressive Grocer) – “Omnichannel is a new norm in retail. Consumers today expect to be able to find and get the products they need when, where and however they want — and have a satisfying experience, regardless of the platform. Keasby, N.J.-based retailer cooperative Wakefern Food Corp., which has operated an ecommerce program since 2002 and brick-and-mortar stores under the ShopRite banner for much longer, acknowledges that its omnichannel success largely comes from the fact that it’s category-agnostic with its customers.”
  • Competing on the ‘endless shelves’: Nielsen highlights how shopping behavior differs online and in-store (Food Navigator)
  • Shoppers Value Both Digital, Human Engagement (Progressive Grocer)


EventsIndustry Events