Talking Points: Cheaper Food—A Tale of Commodities and Competition
In this month’s Talking Points we discuss four topical issues: falling retail prices, "Grocers galore!", complementary condiments (the importance of aligned values) and Terra’s first cohort.
Falling retail prices
We believe the ‘not seen in my lifetime’ run in falling food prices,—welcome by consumers but a serious challenge for the rest of the food chain—will continue for at least the next twelve months.
The increased competition from a wave of new entrants into food retailing, including direct to consumer (DTC) options, coupled with aggressive Ever Lower Prices (ELP) strategies by established grocers will put a number of retailers under pressure, leading to opportunities for further consolidation.
Complementary condiments—the importance of aligned values
The recent acquisition of the upscale condiment company, Sir Kensington’s, by Unilever, highlights once again the importance of matching up the values between companies in the M&A process.
Terra’s first cohort is up and running
We summarize three themes from the inaugural cohort in Rabobank’s Food & AgTech accelerator program, Terra.
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Where to go from here
Nicholas FeredaySenior Analyst - Consumer Foods Read more