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What Research Is There Into Fmcg Food Companies’ Responses To Disaggregation Challenges?
6/16/2018 at 8:19 PM ET
Who has done work in this area? What papers/books exist? What examples are there of such responses?
We sell Industry 4.0 equipment to liquid (drinking) milk dairy companies. Their prooduct range fits into 3 categories:
1/ 50% vol, 6 SKUs bulk white milk, branded for supermarkets and sold to supermarkets
2/ 25% vol, 15 SKUs white milk with their own brand, sold through supermarkets and their own ‘route’ trade
3/ 25% vol, 30 SKUs flavoured milk for impulse purchases, sold through both channels
Note the numbers are rough, but they help set the scene.
Our dairy factory customers are facing two challenges, one from each end of their product range.
New entrants are building narrowly-focussed production facilities to pump out the small number of high volume SKUs for supermarkets with cost structures that are difficult to match with a ‘full service’ dairy factory.
Niche players are building small, flexible dairy factories to make premium flavoured milk. This commands a premium and the fundamental driver is marketing excellence rather than control of manufacturing costs.
This is a really tricky environment for incumbent dairy players to operate in. Very interesting indeed (in the spirit of the Chinese curse - ‘May you live in interesting times’.)
Disaggregation isn’t new. What have people done in other industries?
6/17/2018 at 10:37 AM
Do these help?
6/18/2018 at 12:09 AM
Thanks for the references, but, not so much. These are broad brush articles about change in the FMCG space and in the dairy space.
What I’m looking for are case studies and analysies of companies/industries responding to disaggregation challenges. What did they try, what worked, what didn’t.
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