Poultry International - July 2018 - 6
6 ❙ PoultryInternational
IEC highlights solutions,
egg industry challenges
Changing consumer and market demands are placing more pressure
on egg producers, but these demands also represent opportunities.
Jessica Moulton, partner with McKinsey
and Company, noted that changes in
the retail sector are resulting in grocers
becoming tougher trading partners,
stepping up their game in procurement.
Credit - IEC
No sector is without its challenges, but these challenges can also be
viewed as opportunities, delegates
at the most recent International
Egg Commission (IEC) Business
Conference were told.
Looking at the changing retail
sector, Jessica Moulton, partner
with McKinsey and Company, examined the disruptions facing the
consumer goods industry.
She noted that the sector had
been unusually stable over the past
60 years, following the same successful model, but that the field is
now increasingly changing, and
retailers are having to react.
Recent years have seen lower
growth rates and slimmer margins
for the sector, with several factors
affecting the established model.
Among these are the oft-cited
digital-savvy millennials, but there
has also been an explosion in smaller brands and better-for-you health
trends. Traditional grocery outlets
are also feeling the pressure from
e-commence and from the rise of
discounters. All of these factors are
causing them to react.
Millennials are seeking out what
they view as new, different and
authentic, which is not a good fit
for the traditional consumer goods
model, and they are two-and-ahalf times more likely to shop at
independent stores rather than from
larger retailers. This trend continues
even once they have formed their
own families. Additionally, this
www.WATTAgNet.com ❙ July 2018