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The Exceedra


Important foodservice trends impacting costs in 2020

With all the foodservice industry changes and consumer preference changes, the foodservice business has seen significant growth and turbulence that causes a number of challenges for CPG companies.

As a foodservice manufacturer, there are many obstacles you have to contend with. The route to market for manufactures to reach consumers at the food establishment, regardless of segment, is already inherently complex. Manufacturers must go through multiple layers of distribution or purchasing organizations. These touch points have to be discussed with your sales team or partners. You’ll also need to be sure that you’re at the top of mind at each decision point. Not to mention, the hassle of managing contracts and reconciling payments.

The foodservice landscape is difficult enough without any additional challenges. But unfortunately, there are many other macroeconomic and emerging trends that food service organizations are confronted with. All of which tend to have a dramatic impact on topline growth and have an effect on cost structure and margins. All of these foodservice trends are creating a margin squeeze impacting a manufacturers ability to earn profit. As a consequence, we see distributors and operators finding way to attack their profits and losses at different levels.

Organizations that have built high competencies in these emerging foodservice trends are positioned to weather the storm and perhaps emerge as leaders. 

With Exceedra Trade Promotion Management, we help bridge the gap between these industry challenges and complexities. By analyzing foodservice trends, we find common issues that organizations are faced with and give them access to insights that can help shape trade investment decisions with customers. Whether at a local level, segment, or channel level.

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