Viscofan Competition
Now Viewing Viscofan's competition in: Fruit and Vegetable Processing
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Who does the company sell to? - The major distribution channels are grocery, food service, and food processors.
Does the company sell mainly to local, or also to regional and national, customers? -
Does the company sell products under its own brands? -
Does the company produce private-label products? - Private-labeling for grocery chains is a large business for many local and regional companies.
How many customers does the company have? -
Does the company depend on a few large customers? - Consolidation among grocery chains and retailers has produced fewer, larger customers. Companies often produce according to large customers’ specifications, as is the case with French fries.
What kinds of contracts does the company have with customers? -
How much can grower prices be adjusted under the company's supply contracts? - Market prices usually move more than contract prices.
How does the company find new customers? - An in-house sales staff typically calls on large customers. Food brokers are also used, and trade shows are an important source of contacts.
How are pricing decisions made? - Because most products in the industry are commodities, pricing is based mainly on production costs.
What products has the company introduced recently? - Food processors have to constantly look for new products to attract consumer attention.
Competitive Landscape
Demand is driven by food consumption, which depends on population growth. The profitability of individual companies depends on efficient operations because products are commodities subject to intense price competition. Companies compete largely based on cost and their ability to distribute the finished product. Large companies have advantages in distribution operations. Small companies can compete effectively in local or regional markets.
Business Challenges
CRITICAL ISSUES
Crop Costs Variable - Crop yields and prices can change yearly due to weather, disease, and supply and demand. Processors sell large quantities of commodity products at fairly low prices; however, if a crop yield is poor, the processor usually can't raise prices enough to offset the lower volume because consumers will switch to alternative products.
Dependence on Large Customers - Consolidation in the grocery and restaurant industries and the rise of mass food merchandisers, like Costco and Wal-Mart, has funneled demand through fewer but larger customers. Local and regional processors may depend on just a few customers for the bulk of business. Even national processors depend on large national accounts for much business: recently, just 15 customers accounted for 60 percent of sales for Del Monte; Wal-Mart accounted for 18 percent.
Industries Where Viscofan Competes
- Food
- Meat Products(primary)
- Canned & Frozen Foods
- Canned & Frozen Fruits & Vegetables
