Pentallect Finds Nontraditional Food Channels Are Major Industry Growth Driver

CHICAGO, Oct. 8, 2019 /PRNewswire/ -- Consumers are increasingly turning to non-traditional channels such as club stores, limited assortment stores, online and specialty stores to satisfy their food and beverage needs, according to Pentallect, a leading food industry strategy firm. These nontraditional channels, which are not systematically measured, have emerged and/or solidified their positions, and are poised for accelerated growth at the expense of traditional channels, most notably retail.

Pentallect estimates that the nontraditional food channels currently represent $210 billion in consumer expenditures, and projects 7% annual growth for the referenced channels over the next five years compared to 3.5% for foodservice and 1% for traditional retail (which includes supermarkets, supercenters, mass/drug, and dollar stores). The referenced channels will account for 30% of food industry growth over the next five years.

Bob Goldin, a Pentallect Partner and co-author of the study, says "nontraditional channels represent a 'sweet spot' in the food and beverage industry. Their growth is based upon strong consumer appeal and generally favorable business models. Without question, they demand increased attention from suppliers."

Pentallect conducted comprehensive research and analysis into 10 nontraditional channels*, including obtaining insights from over 1,000 consumers and trade sources, and the findings are documented in a comprehensive new report: Nontraditional Food Channels: A Key Industry Growth Driver, an update of a major report conducted on the topic in 2017.

Pentallect's research shows that a sizable number of consumers plan to try or use the channels more often in the future. Many reasons are driving this use, including convenience, a desire to save money, availability of unique items, support of local businesses, and perceptions of better quality (largely in the context of fresher products) than traditional channels.

Rob Veidenheimer, Pentallect's President, notes that "each of the channels has unique consumer appeal and continues to evolve at a very rapid rate. We have studied these channels closely over the past several years and see them as significant share gainers for the foreseeable future."

*The channels studied are: club stores, community-supported agriculture (CSA), ethnic/neighborhood stores (e.g, bodegas), farmers markets, food trucks, limited assortment stores, meal kits/home-delivered meals, online, specialty stores (e.g., bakeries, butchers, etc.) and Trader Joe's.

Pentallect's Nontraditional Food Channel study is available for order on Pentallect's website (www.pentallect.com). The growth of non-traditional channels and their impact on food distribution will be a topic at upcoming Strategic Summit: Foodservice Distribution - Issues, Outlook, and Implications, which will be held on Dec. 10 in Chicago (see Pentallect's website for details).

For information on the report and other Pentallect services, please contact Rob Veidenheimer, President of Pentallect.

About Pentallect Inc.

Pentallect is a strategic consulting and business improvement firm that provides an extraordinary breadth of food industry knowledge, drawing on vast food business management experience and broad networks of relationships throughout the supply chain for manufacturers, operators and distributors. The team leverages its expertise to conduct in-depth assessments of clients; business strategies, structures, sales and marketing efforts, supply chains and spending/profitability to provide guidance and actionable insights that will have a direct P&L impact. For more information, visit http://www.pentallect.com or call at 888-651-3104.

Media Contact:RobVeidenheimer P: 978-766-5618
E: [email protected]

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SOURCE Pentallect Inc.

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