Further supporting our observations and research in the past year is this new data from Nielsen, FMI, and Better Homes & Gardens. People are going out to eat less, bringing take-out home less, and preparing meals at home in ever-increasing numbers. These figures help to explain the growth that we’re seeing across many categories in the gourmet and specialty retail segments, despite the overall economic downturn. This should be a breath of fresh air for anyone that’s been toying with the notion of starting a new gourmet or specialty retail food product business.

Interestingly we ran across this article based on reports from Mintel on Yahoo yesterday. It illustrates a stark contrast regarding WHO is launching new food products. At Gourmet Business Solutions we have seen a more than 100% increase in startup consulting projects/new food business launches within the past year. Contrary to the article, our data shows that the number of new companies launcing new food products has exploded within the past year, however, the number of existing food manufacturers launching new food products has taken an opposite course. In fact, their numbers have declined by 51% for new food and beverage product launches, according to Mintel. This is good news for new startup companies, since they are taking advantage of capitalizing on market share being sacrificed by existing manufactures that have put off new product launches due to the economic troubles of the past year. The important question that remains is; how long will this trend continue?

One life lesson that I have learned over the years is to always learn from the mistakes of others. In this particular case, it is one that every food producer should pay attention to.

According to Food Business News, “A class action lawsuit was filed against Van’s International Foods, a subsidiary of Healthy Food Holdings, Inc., on March 4 in the U.S. District Court for the Central District of California. In the suit, the plaintiffs allege nutrition information printed on packages of Van’s brand waffles was incorrect and that the company continued to promote the products’ positive nutritional attributes even though executives knew the information to be false.

Retailers Whole Foods Market, Inc., Trader Joe’s Co. and Costco Wholesale Corp. also have been named in the lawsuit.”

Read the rest of the article here: http://foodbusinessnews.net/news/headline_stories.asp?ArticleID=100665

This has proven to be a particularly important article to me, as I have personally been in talks with Van’s International Foods regarding a service that they could potentially provide for one of our clients (although it was unlikely that we would have recommended the company regardless of the news). If anything, this should make the case for the added value that our clients receive in working with Gourmet Business Solutions. We do in-depth research on the companies that we recommend our clients work with, in order to avoid potential legal ramifications like those currently facing Van’s Foods and their retailers.

I know all of you went home and conversed with your significant others about your newly discovered knowledge about the amazing capabilities of marketing via Social Media networking through portals like Twitter, Myspace, Facebook, etc… Well maybe not, but I’m back with part III. today to contradict myself - well contradict myself somewhat.

Something I’ve observed for quite sometime is a shelf-life for “new” “latest and greatest” web happenings. Case and point ask yourself how many purchases you made on ebay in 2002, now how does that compare to the number you’ve made in the past year? Don’t get me wrong, ebay is still huge, and there are certainly products that make sense to purchase on ebay, however, it has lost its luster, its excitement. How about Myspace? Ask 10 of your friends how often they post on Myspace vs. Facebook… anyone see a pattern emerging?

Check out this article posted yesterday on Advertising Age, which confirms my theory… in part.

http://adage.com/article?article_id=135899

I’ll have much more to add in future posts to come… again this only confirms my theory in part… I’m not saying that Twitter is no longer a valid medium for Marketing a gourmet or specialty food product… because it certainly is.

Further reinforcing my previous post regarding the continually increasing popularity of social media networks and their undeniable wealth as an imperative marketing tool, is a new report from Phil Lempert and AC Nielsen. According to Phil Lempert of AC Nielsen’s “Facts, Figures, & The Future”, “two-thirds (66.8%) of the global online population visit ‘member communities’ (blogs and social networks) a lot; Internet users worldwide spend one out of every 11 minutes at these sites.

They are now the fourth-most popular online activity—ahead of personal e-mail (65.1%)—according to the new Nielsen Global Faces and Networked Places report on social networking’s new global footprint. ‘(Member communities) have taken a foothold in every major market from 51% of the online population in Switzerland and Germany to 80% in Brazil,’ the report said.”

John Burbank, CEO of Nielsen Online states: “Social networking will continue to alter not just the global online landscape, but the consumer experience at large.”

Key findings of the report include:

•    The social networking and blogging audience is more age-diverse; those between 35 and 49 made up the fastest-growing group of visitors, up 11.3 million people.
•    Mobile is increasingly important. Nearly 1 in 4 (23%, or 2 million) of mobile users in the United Kingdom visited a social network through their handset, up 249% over a year ago. In the United States, 19% or 10.6 million had done so, up 156% over the year-earlier period.

•    Facebook, the world’s most popular social network, is visited monthly by three in every 10 people across markets involved in the study—Brazil, Spain, Italy, Japan, UK, USA, France, Australia, Germany and Switzerland.

Regarding strategy, I share the view of the authors of this report. “Brands need to intersect consumers where they dwell and participate online to win mind share, build their relevancy, and strengthen their case for purchase at the shelf.”

To make it in the increasingly diverse market, food brands must reach out to social media networking sites if they intend to remain competitive. Many brands underestimate the viral effects of these channels and their ability to drive consumers to making a purchase decision.

Sources: AC Nielsen: Phil Lempert-Facts, Figures & The Future, April 13, 2009.  Xtreme Retail: Blogs, social networks the next hot spot for brands, March 24, 2009.

The NASFT just released their State of the Industry Report for 2009, which details activity, growth, and trends in the industry for 2008. Anna Wolfe from Gourmet News covered it here.

Specialty Food Sales grew by 8.4% last year, and I think everyone agrees that it is due in part to the fact that more people are eating out less (sorry to the foodservice segment) and spending more on better foods at home. I personally think we will continue to see this trend increase in 2009. We might not see 8% growth this year, but I highly doubt we will see a decline in growth as some have been predicting (hopping on the “gloom and doom” bandwagon). I’d be interested to see what others think about this report, as well as what people feel 2009 holds for the specialty food industry.

For us? Well, we are ramping up marketing, adding to our staff, and looking to grow by over 80% this year. We grew by over 40% last year, and so far have seen an influx of companies retaining our services (already doubling last year’s revenues for Q1). I have to say the industry has been pretty good to us!

I was reading through the headlines on USA Today (Tuesday) and happened to run across an article which caught my attention. I believe that this article highlights why we continue to utilize the likes of Facebook, Twitter, etc. as additional marketing tools for gourmet and specialty food products.

http://www.usatoday.com/tech/news/2009-03-31-facebook-twitter-status-marketing_N.htm?csp=usat.me

A  colleague of ours, Adam Borden from Bradmer Foods will be speaking on WAMU’s Kojo Nnamdi Show starting at 1:30PM EST today. Adam will be talking about how food entrepreneurs should get started and look for funding. For those unable to tune in today, here is a link to the audio rebroadcast: http://wamu.org/programs/kn/09/#Apr.

I just read a great article on CNN about starting your own business during a recession: http://www.cnn.com/2009/US/03/26/bregman.economy.entrepreneur/index.html

My favorite line in the whole article is the last sentence: “In other words, start a business in your kitchen with your sisters.”

We’ve certainly seen an increase in the number of people contacting us about starting a new food business - over 100% more than the previous year. A lot of people we are working with on new business launches are former director level/executives that have been laid off and would rather control their own destiny as opposed to trying the treacherous job market again. Of all industries to start a new business in, the gourmet/specialty food industry is pretty solid, as we have seen be rather recession-resistant - so the upturn in new food startups makes sense (to us, anyway).

Thinking of starting a new food business? Let us know!

Today, GourmetFoodMall.com announced the launch of their new video sharing community, www.GourmetFoodMall.tv. The site looks great, and has already grown pretty fast during the beta phase. Read the full press release here.