For several years the trend has been to eat healthy. We have chronicled the growth of these healthy markets. Today we will take a look at three main areas that have added to this growing trend and the market effects they have on us and our food.

Everybody wants to eat healthy.

ABF (Antibiotic Free)
I know things have changed in the world when I’m watching a TV commercial for Subway and they are pitching their ABF turkey sandwich. They have been on that bandwagon for a couple of years. In the recent issue of Specialty Food News they reported over half of the top ranked QSR in the world are pitching ABF. Most surprising the last bastion of chicken restaurants KFC has moved their score from an F to a B- in a survey of QSR on their commitments to move to ABF product. 2016 dollar sales of ABF product is on a compounded annual growth rate  (CAGR) of 23% which tells us a lot about where that’s headed. Chicken accounted for $1.8 Billion of the ABF market in 2016.

This is ABF in a natural state. Grass Fed implies (but does not guarantee) no antibiotics. Right now grass fed beef makes up 4-6% of the total market and we have customers in that market and it’s a way the small farmer can stay in business and compete against the large beef guys. The market is doubling every year for the past few years but scaling is a problem. Not as efficient as feed lots, but still very effective from a pricing standpoint. There are coops and consolidators that pool small farmers into producing for marketing Companies that sell their product.

The organics market is really exploding. Major corporations are jumping in with both feet. Although they are more expensive, people are buying organics in droves. 2016 sales were 43 Billion. That makes up about 5% of total food sales. Growth in 2016 was 8.4% 14 times what the .6% overall growth of the food market. Go down your grocery store aisles and you will see how the organics have taken the main stage in new products. One of the main reasons why organics are so hot is the product demand and profits to the retailer are clearly better. Below is a chart from USA today that shows the demand and extra dollars that can be recouped


Issue 640 - Everything Cycles.

Transformation and disruption was a topic in an article in the Sunday Philadelphia Inquirer. I read about the demise of Sears & Roebuck titled The Big Stumble. They believed they had no competitors. The New York Times dubbed them "The Amazon of the gilded age." Those of us in the baby boom generation remember Sears.  As a young boy I remember thumbing through the catalog, dreaming of what I could buy if I had the money.

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