There has been a significant digital transformation in the Food and Beverage Industry. Analysts are forecasting online sales growth of 15 to 20% by 2025. This expected growth comes with many challenges that brands may not be ready to tackle.
The reality is that there are many different threats these brands face on online marketplaces that can disrupt sales, pricing, reputation, product quality, return on ad spend, and more.
Rodney Holaday, Partner at Vorys eControl, is deeply experienced in the food and beverage industry. He has helped guide brands, driven by data and supported by a multidisciplinary team, to reach ambitious KPIs and deliver transformative ROI.
Holaday: Brands in this category are inherently susceptible to diversion and retail arbitrage due to their products’ low purchase price and shipping costs. Brands’ product quality standards are not being met by unauthorized sellers, who may sell expired products, melted/stale merchandise, repackaged items, etc.
Holaday: When addressing online sales disruption, it’s important to take a holistic approach. It must also address the complexities of disruptive forces online and in traditional distribution channels. First, implementing policy and agreement rules on repacking and quality controls on handling or dating concerns. Thus, we help food and beverage brands address these issues unique to consumable items.
Food and beverage brands that have the necessary control over online sales can enjoy the benefits of a consistent consumer experience, increased brand value, profitable growth, and increased consumer loyalty—across all sales channels.
For further insights into implementing an eControl program within the food and beverage industry, contact our team.
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