Reily Foods Competition
Now Viewing Reily Foods's competition in: Coffee and Tea Manufacture (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
How does the company compete against major food manufacturers with well-known brands? - To compete, small companies must offer a superior, differentiated product and reach consumers through unique retail outlets.
What services does the company provide to ensure that commercial customers deliver a quality product? - Companies in the commercial segment may supply customers with brewing equipment, service equipment, or customer training to ensure a high-quality end product.
Who are the company’s most important customers in the consumer segment? - Customers include grocery stores, grocery wholesalers, mass merchandisers, warehouse clubs, drugstores, and specialty food stores.
Who are the company’s most important customers in the commercial segment? - Customers include food distributors, institutional food service operators, office coffee services, hotels, restaurants, hospitals, and convenience stores.
What types of marketing and promotional vehicles are most effective? - In the consumer segment, companies may use TV, print, and radio advertising; coupons; direct mail; and sample offers.
What are the company’s most popular brands? - Brand names, like Maxwell House, Folgers, Lipton, and Starbucks, are very important.
How important are trade promotions in driving sales? - In-store ads or price reductions are common in the coffee and tea categories.
Does the company sell through food brokers? How are they incented to sell the company's products? - Most food brokers represent many other products, and companies typically use commissions as incentive.
What is the company’s pricing strategy? - Companies may raise and lower wholesale prices as ingredient costs change, resulting in comparable retail price fluctuations.
Who are the company’s primary competitors? - Coffee and tea manufacturers compete with other beverage companies, especially soft drink, bottled water, and juice manufacturers.
Competitive Landscape
Consumer taste and population growth drive demand in the consumer sector, while economic growth of businesses, like restaurants and hotels, drives demand in the commercial sector. The profitability of individual companies depends on effectively managing raw ingredient costs, efficient operations, and effective marketing. Large companies have scale advantages in purchasing, distribution, manufacturing, and marketing. Small companies can compete effectively by offering specialized products or serving a local market. The industry is capital-intensive: average annual revenue per worker is about $600,000.
Business Challenges
CRITICAL ISSUES
Highly Volatile Raw Ingredient Costs - The cost of green coffee beans, the primary ingredient in coffee, can fluctuate greatly, depending on the country of origin and the actions of grower organizations. Green coffee prices can change dramatically from year to year, and even vary a significant amount within a year. Trade organizations, like the International Coffee Organization, try to manage supply and control pricing to protect growers. Bad weather, political unrest, and economic issues can affect the price of green coffee.
Heavy Competition in Beverage Market - Coffee competes for customers against other popular beverages such as soda, bottled water, and sports drinks. Coffee consumption has held steady or grown during the past decade, with 54 percent of US consumers partaking in 2009, according to the National Coffee Association of the USA. Coffee has also caught up to soda in terms of US consumption, following many years of high soda consumption.
Industries Where Reily Foods Competes
- Beverages
- Nonalcoholic Beverages
- Coffee & Tea(primary)
- Nonalcoholic Beverages
- Business Services
- Food
- Canned & Frozen Foods
