Despite buoyant returns, ‘several challenges, including the COVID-19 pandemic, real estate costs and shrinking margins have hit the [Australian food and beverage] sector’ in the past year, writes Pearly Neo in a recent article for FoodNavigator Asia.
‘Big and small food firms alike have had to be flexible in adapting to survive, and IRI research has found that the size of a brand is becoming “less and less” of a competitive advantage … as smaller, more agile brands are rapidly expanding at the expense of slower-moving big brands,’ Neo notes.
Joining ‘the usual trend suspects’ driving F&B retail in Australia – convenience, health, affordability and sustainability – are emerging trends ‘curiosity’ and ‘indulgence’, with novel offerings, ethnic flavours and decadent-but-healthy treats gaining traction along with the dry goods and baking ingredients consumers are stocking up on in response to COVID-19 related restrictions on dining out.
To mimic the agility and innovation of food start-ups and SMEs, large food and beverage businesses are now sponsoring start-up incubators; Mondelēz International, for example, funds an Australia-based offshoot to its global SnackFutures innovation hub, while Coca-Cola Amatil backs start-up accelerator Amatil X, which recently expanded into Indonesia, focusing on areas such as sustainable packaging and optimised distribution.
Source: Bigger not always best: Agile and innovative smaller brands making waves in Australia I FoodNavigator Asia