Food manufacturers have been confronted with the meteoric rise of the e-commerce channel in the UK. A rude awakening awaits those that tackle the online challenge with a bricks-and-mortar mentality, Andrew Don suggests.
US retail giant Kroger, one of the largest traditional supermarket chains in the country, today (2 July) announced a deal that showed it has recognised two key macro trends in the grocery sector - and wants a piece of the action.
Amazon's consumer packaged goods (CPG) opportunity is valued at at least US$222bn annually in the US according to analysts at Sanford C Bernstein and it is targetting this opportunity aggressively, quickly becoming an important channel for CPG manufacturers. But with a significantly different audience base and a very different approach to selling goods, how can CPG firms make the Amazon channel work for them? Hannah Abdulla explores.