The Food Industry is defined as a complex manufacturing industry that includes different activities such as “the processing, conversion, preparation, preservation and packaging of foodstuffs” according to M. Malagie. It is divided in thirteen different manufacturing sectors, where each one of it focuses on a specific type of product employed such as meat, fruits, vegetables, fish, chicken, grains, flour, pasta, chocolate, milk and oils. For this project, the main focus will be given to the NAICS 311351: “Chocolate and Confectionery Manufacturing from Cacao Beans”. As it is stated by the U.S. Census Bureau, this industry is concerned with the “shelling, roasting and grinding of cacao beans” with the main purpose of producing and confectioning all …show more content…
The World Cocoa Foundation in its report Economic Profile of the U.S. Chocolate Industry, declares that in the United States market, there are more than 400 companies that produce almost 90% of the chocolate and confectionery products in the country, while other 250 companies serve as raw material ‘suppliers to those manufacturers. Furthermore, this industry is concentrated in the northeast of the country (Pennsylvania, New Jersey, New York, Virginia), and it employs more than 68,000 people. Its market is ruled by four powerful brands: The Hershey Company, Mars, Incorporated, Nestle S.A., and Russel Stover Candies Inc. They control the 85% of the total confectionery market, being The Herhsey Company the most important of this sector with a share of 40.2% of the market´s value; Mars Inc. with 30,7%; Nestle with 9.3%, and Russel Stover Candies with
The problem that World’s Finest Chocolate has its related to “inventory”, most of the time they have a deficient of inventory on hand, therefore, the counts never match they are either too short or too much inventory in the production area.
They need a structural plan. Hershey’s has an entrepreneurial model just like every other business. The Hershey Company serves to the consumers who obviously have a sweet tooth and want a sweet snack. It provides different snacks such as different chocolates, sugar confectionaries, gums, mints, and snacks. It generates revenue by brand loyalty. “Two specific elements of brand warmth, “is honest and trustworthy” and “acts in the customer’s best interests,” were far more effective at building brand loyalty than all other competence elements combined.” (Hershey and the Network for Good on the Co Creation of Brand and Social Value, 2011). The Hershey Company has gained the trust of their consumers by always generating a tasteful candy product. I believe this has been a very successful strategy for this company because they are still generating and coming out with new products that are still selling on the candy shelves. “Hershey is currently sourcing certified cocoa through three of the world’s largest and most recognized cocoa certifications: UTZ Certified, Fair Trade USA and Rainforest Alliance Certified” (The Hershey Company ). By using certified cocoa, the Hershey’s Company is sustaining
Cocoa is the main raw material for chocolate production and has no other substitute. Moreover, it can only be grown within 10 degrees (latitudes) of the equator. Due to this constraint, global production of cocoa is highly concentrated in West African countries such as Ghana, d'Ivoire, and Nigeria, Namibia, Zimbabwe etc. . The cocoa fruit is harvested twice a year in the form of a main crop and an intermediary crop (also termed as mid-crop).
Market research and information about the industry is very important to the organization because it will allow the organization to position itself well in terms of sourcing chocolate raw materials and in identifying the market for its products. For example, understanding that some chocolate product purchases are seasonal, e.g., at Christmas; around Mother’s Day; and, on Valentine’s Day, allows the organization to have more product on hand and to create displays, in store, that will increase purchases and attract more customers when existing customers tell their friends about the availability of high end products, at reasonable prices, in their store.
The fact that Japan’s economy has been suffering from a recession for the last five years has not had much bearing on Hershey and Nestlé chocolates wanting to break into the Japanese market. Japan is no longer the third-largest economy in the world; Japan’s economic woes began in 2008 (Irwin, 2013). To break into the Japanese market these companies must understand the government and economic climate of Japan, while being aware of the taste and culture of the Japanese people. The Chocolate and Cocoa Association of Japan (CCAJ) reported in 2009 that Japan is the largest buyer of chocolate in Asia. “Japan produced 196,553 tons of chocolate with a manufacturer’s value of $38 million. About 19,375 tons were imported from the U.S., Australia, Belgium, China, South Korea, France, Italy, and Switzerland in order to meet the domestic demand of 212,657 tons” (World Cocoa Foundation [WCF], 2011). Even though, Japan is going through a downturn in their economy their appetite for chocolate has not wavered.
Tom Urban (1991) was the first to coin the term industrialization of food describing it as: “a process by which consumers wants and needs were fed back into a production and distribution system to provide desired quantity, availability and price” (p. 4). Beginning in the early part of the 20th century agriculture was transformed from a diversified system of small-scale farmers who labored in the field to a complex system of large, technologically-dependent manufacturing of commodity crops like corn and soy (Dimitri, Effland & Conklin, 2005, p. 1). This emerged in response to changes in farm policy and the industrialization of other sectors of society that encourages industry to “get big or get out”.
From the business to business perspective, the key for the manufacturer is to create demand for their products at the consumer end. When brand identity and demand are strong, wholesalers and retailers have little bargaining power. Movement of prices within the candy industry are typically tied to disposable income of consumers. Thus, as consumers have additional money, more money is available to spend on treats. For example, with the recent experience of lower gas prices in the first part of 2016, consumers can decide to re-deploy the extra cash on other goods and services. Which products will
Central Idea: Explain how cocoa beans are processed to produce the chocolate we all know and love
Technology has an irrefutable effect on the food industry. In old times, food products are produced through the use of intensive labor. There are no machineries, tools and equipment to aid in the production of these products in order to attain maximum efficiency and productivity. Through the application of technology food production began to be modernized. Nowadays, we have modern technology for processing our food products and in the process prolonging its shelf life.
This study will take you through a detail structured Market Entry proposition that Al Nassma chocolates would need to undergo in order to successfully imbed themselves into the European Markets.
The fundamental crude material of material and confectionery industry is milk. India has dependably been a huge maker of milk and because of this component it has assumed a vital part on the planet 's business for milk. The material business in India accomplishes expense advantage in the portion of attire and home materials with the assistance of unending supply of nearby staple cotton which have been locally created. Further, Indian Government and other strategy producers have made complete strides for enhancing the sum and nature of milk yield for verifying that higher gainfulness can be
Nowadays, people buy food everyday, so the food industry is huge. The average American spend around 151 dollars per week on food. If you times that amount by a year then that's a large amount of money going to the food industry. 50 years ago, you can use less than 10Nt to buy a bowl of noodles in Taiwan, but now u can spend more than 300Nt on a bowl of noodles. The price of the food is constantly rising and that makes the food industry a great potential for investments. The food industry is growing faster than we might expect and there's many reasons for it. One reason is because the population is increasing too quickly so the food industry needs to expand as well to cope with the increasing demands of
The aim of the paper is to market the chocolate in the global market focusing on the ageing population of over 65 years.
In the chocolate industry the companies produce and retail chocolate products and confectioneries by using cacao beans, sugar and other materials. The Hershey Company, Nestle SA, Mars Inc. are the major players in America chocolate industry. Hershey Company’s market share is 30.5%, Mars Inc is 24.2%, Nestle SA is 10.1%. In 2013, America chocolate industry revenue is $15.5 billion and profit is $2.1 billion. In the past 5years the average annual growth is about 1.5% (Exhibits 1). Because of lower per capita disposable income in 2008, the consumers turned to buy cheaper candy and chocolate. The sales vol...
To learn where and how cacao beans are grown, I am going to contact the chocolate business company like Nestle to find out where they receive their chocolate from. Nestle is the biggest company that had several lawsuits against them for their chocolate and other products. The problem with