Issue 25
January 2000

Prairie Grains is the official publication of the Minnesota Association of Wheat Growers, North Dakota Grain Growers Association, South Dakota Wheat, Inc., and the Minnesota Barley Growers Association.

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Copyright
Prairie Grains Magazine
January 2000

Find or create a "true point of difference"

A strong economy and changing consumer lifestyles means more people are eating meals prepared by somebody else, whether it be in restaurants, as take-out, or in the company cafeteria.  This business segment is known as the food service industry and, according to food and industry analyst, Jerry Smiley with Technomics Research in Chicago, it currently accounts for one-half of our food dollar. 

Smiley says there are many trends driving the growth in the food service industry:  Our population is aging, we have a growing ethnic diversity, more dual income families and more single heads of households, and we have more constraints on our time.

This means that rather than preparing our own meals at home, consumers are looking to food service outlets to provide solutions for cooking and convenience.  But he says consumers also are demanding freshness, variety, value and food safety.

In the future, Smiley says consumers will be even more demanding, and they will also be knowledgeable about what they want.  They will know quality and will prefer freshness.  They want options and they expect value to meet their expectations.

Smiley says two major concerns of the food service industry are food safety and labor.  They need to maintain food safety to keep consumer confidence in their products.  But a strong economy and tough labor market means it's difficult to find and keep good food service workers.

Smiley says that growers can discover opportunity in this growing food service market if they are willing to find and/or create a "true point of difference" for their products.  For example, growers can perhaps find niche markets by supplying additive-free or non-GMO products.  Or, products that stand out in taste, performance, price, or value.

"Performance is a key," he says.  "Fat-free won't succeed if there's no taste."

In developing "go-to-market" strategies, develop ways to ensure that your product benefits (as well as food safety) can be tracked throughout the food production and delivery system.  Target research and development personnel and marketing management to get your food product noticed.  Establish customers who value "point-of-difference" products.