The supermarket landscape in the UK isn’t looking great just now. All well known retailers such as Tesco, Asda and Morrisons are really struggling with a pincer movement from heavy discounters (Aldi, Lidl, Poundshops etc) and e-commerce (If you have a retail week subscription check out the winners and losers over the 2014 Christmas period)
So as a FMCG brand it continues to get harder and harder to even get listed in a large volume retailer. The fight for the consumer is driving margins down and every square foot of a retail outlet has to deliver.
I have kept on banging on about this for a few years as we have seen a move to online retail in most categories – it just seems to make sense we are going to see that in Grocery.
There is a strong manufacturing base in the UK and US, but they struggle with distribution – having depended on supermarkets for 20 years, why invest in anything else.
So I really do believe that the time has come to drive FMCG brands online, but the skill set to do this does not really exist in food manufacturers.
That is why we have formed Move Fresh. A group structure that will hold a number of brands and investments in the eFMCG space.
The group has a long term strategy and will utilise the shared IT, logistics and brand management infrastructure to grow over the long term.