Why Individual Small Food Manufacturing Companies are Doing So Well
Wondering about the shift in interest from major chains to small food businesses? Here’s why individuals, private food manufacturing companies are booming.
The packaged food industry is worth $800 billion a year and the big names are losing out to small food companies creating better tasting food even if the price is a little higher. The packaged food industry is changing and the status quo that has lasted decades is falling to the wayside as the current generation doesn’t just want cheap food, they want healthy food.
Does this mean major brands are going away? Don’t count on it. They’re slowly adapting to the new paradigm, but the mom and pop companies were once the purview of farmer’s markets are busting out into the mainstream.
Super Processed Foods Are No Longer in Demand
The 80s and 90s were filled with commercials about processed foods like TV dinners and even microwave milkshakes – yes, they were a thing. Foods pumped with preservatives and chemicals to keep them fresh and tasty were the norm. They were also cheap.
Money was tight and people were busy. A processed pizza cooked in the microwave saved time and money. With the new millennia, the focus shifted away from processed foods and to the more natural.
The small industrial food makers still have some processed aspects, but generally, the ingredients are fresher and at the very least perceived healthier than the big box versions. People seek out these alternatives and they’re making their way onto the shelves of grocery stores everywhere.
Image of Corporate Brands Shifted Negative
It was in the heyday of processed foods that companies like Wal-Mart and Target began popping up in cities and small towns throughout the United States. They filled their shelves with big names like Nabisco and PepsiCo products. Their ability to purchase items in bulk lets them offer goods at cheaper prices than the neighborhood grocery store.
You were able to go to one place and get everything you need. It was convenient. Sadly, as the mom and pop grocery stores closed so did many of the lesser-known brands they carried.
Today, large corporations are seen with distrust as news organizations exposed deceit, unsanitary work conditions, and low wages, leading the public to cry out for lesser-known, but more honest brands.
Major industrial food packagers were hit hard, but the growth of small companies flourished as they were perceived as the underdogs going against corporate America.
Major Brands Buying Up Small Food Companies
It can take years for a small company to gather brand reputation and success because they don’t have the funds or clout like the major companies. When they do become a massive success, the big corporations swoop down and snatch them up.
Have you ever had a favorite small brand suddenly taste different? Did your favorite small brand start showing up in major department stores? They likely got bought up by a major corporation with unhappy employees.
The big brand wants to take advantage of the brand reputation of the smaller brand, so they buy the company and can now slap that logo on food. Sometimes, the major company doesn’t change anything, but sometimes they change the recipe to make it less expensive to produce.
When the little guy seems to burst through the bid department store well, it could mean they were purchased by a major brand.
Buying From the Little Guy
Small food companies are in fashion with the public and big business is taking notice. As major corporations lose millions to smaller companies, they’re changing their formulas to appeal to the more health-conscious and fresh food-minded public.
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