Author: FreshIce1027

Will The Healthy Foods Revolution Make Us Healthier?

Organic foods (about $50 billion in US retail revenues, growing at 6% per year ), vegan/plant-based products ($5 billion, +10% per annum growth ) and gluten-free items ($3 billion, +6% ) all fit under the umbrella of “Healthy Foods”. In total, these products represent nearly $60 billion in consumer spending, are growing 3X to 4X […]

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Coca-Cola, Mondelez, and Hormel: Examples of Corporate Social Responsibility

Large companies are increasingly embracing responsibility for the impact of their operations on the environment and society. Business initiatives targeted toward support of these ends are grouped under the umbrella of Corporate Social Responsibility (“CSR”) and are receiving Board of Directors oversight. Globalization of business, shareholders’, and consumers’ environmental and social concerns will continue to […]

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Walmart versus Aldi: Which Private Label Approach Will Win?

First the good news. Both of these retail chains are clearly succeeding in the United States with very different operating models. Over the past decade Walmart (we estimate $160 billion US grocery revenues) has increased its US store count from 3,700 to +4,700. Aldi entered the US in 1978 and now has 1,900 stores (with […]

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Hispanics Will Drive 50% of Retail Food Sales Growth

Our newly released study, The Hispanic Market Opportunity, profiles the 57 million Hispanics in the United States and the food industry opportunity they represent. This study is the third in our series exploring the major trends in the US food business. Our fourth study, Private Label brands, will be available mid-summer. For details on all […]

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Strategic Advisory

At CST Consulting, we find Consumer Products companies are increasingly seeking to partner with advisers which have a deep understanding of the industry’s strategic landscape. The ability to provide strategic insights specific to their needs and competitive dynamics is what we offer businesses, advisers, investment banks, and private equity firms.   Our advice is based […]

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Grubhub, Instacart and Amazon: Are they really changing the Food Industry?

The short answer is yes. The U.S. Food Industry is in the midst of a rapidly changing competitive landscape driven by internet-enabled platforms linking customers, retailers, restaurants, and delivery firms. Instacart, Deliv, Peapod and others have helped40% of grocery stores offer home delivery. Similarly, Grubhub, UberEATS, and Caviar are among the firms helping 35% of […]

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RXBAR and Kashi: Lessons (not) Learned?

When Kellogg’s bought Kashi in 2002 the small cereal firm had $50 million in sales. Kellogg’s CEO was David Mackay, and the Battle Creek giant pledged to maintain the entrepreneurial spirit and independence of Kashi. Kellogg’s kept Kashi’s headquarters in California, and Kashi became an innovator in healthy snacks and even extended its brand umbrella […]

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The US Food Industry and Stagnant Middle-Class Income

In the US, middle-class families have not seen a sustained rise in median household real income over the past three decades. The stagnation has not been reversed in recent years despite very low unemployment rates. Median real household income in 2005 was $55K and $56.5K in 2015. However average household expenditures on healthcare, including premiums […]

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