Snack Foods Manufacturing
Competitive Landscape
Demand is driven by consumer tastes and health considerations. The profitability of individual companies depends on efficient operations, effective marketing, and a strong sales force. Large companies have advantages in raw material purchasing, manufacturing efficiencies, distribution, and marketing budgets. Small operations can compete effectively by self-distributing products, selling online, or marketing snacks as gift items. The industry is capital-intensive: average annual revenue per employee is $500,000.
Opportunities
Boosting Convenience Store Sales - Manufacturers have paid too little attention to maximizing the sales potential of snack foods at convenience stores (c-stores) and drugstores. As grocery stores consolidate and...
Business Challenges
Volatile Ingredient Prices - The price of critical commodity inputs such as corn, tree nuts, soybean and cottonseed oil, and potatoes can increase significantly due to poor farm yields,...