Grocery manufacturers to adapt to online markets

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Market researcher Kantar Worldpanel says that e-commerce is responsible for 3.7 per cent of sales for food, drinks and personal care products, with a prediction to rise to five per cent by 2016 as manufacturers embrace the online world further. Iglo Group, which is hoping to get 25 per cent of online sales with its Birds Eye frozen goods by 2017, told Reuters that since the online market is new, “everyone’s trying new things.” Examples of this are brands like L’Oreal, Nestle and Procter & Gamble selling only niche products such as cosmetics, coffee, chocolate and shampoo online.

Rabobank analyst John David Roeg told Reuters that most food manufacturers are “seriously unprepared for online retailing,” and that they need to work on areas such as product assortment. According to CheckoutSmart, a provider of digital grocery rewards, the brand Coca-Cola came on top as the online grocery brand in the UK, which has been developing the brand’s online marketing.

“That change doesn’t have to be as complex and scary,” says Erin Hunter, Coca-Cola’s global head of consumer packaged goods strategy.

 

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