The Evolution of The New Grocery

Unichannel Creates an Opportunity for Consumer Packaged Goods (CPGs) to Create Direct Customer Experiences
Enabling Long-Term Brand Protection and New Customer Channels.
Evolution of New Grocery
Grocers & Food Service
  • SKU proliferation & large footprint
  • Pallet-based replenishment
  • Brand marketing
Food Marketplaces
  • The Endless Aisle
  • Cart-building for delivery & pick-up
  • Same/next-day expected
The Consumer
  • CPG and consumer engaged
  • All channels leveraged collectively
  • Delivery ecosystem enabled

Food & Beverage Landscape

Customer experience and path to purchase is being redefined in the age of New Grocery.
Convenience
Convenience
New store shopping experiences combined with home delivery and in-store pick-up
Speed
Speed
Rapid cart building and same-day delivery along with click and collect now the norm
Selection
Selection
The Endless Aisle curtailed to individual taste and nationwide availability
Price
Price
Lowest price regardless of where and when I want it
Consumer

The New Grocery

Unintended Consequences for Food CPGs
  • Brand Dilution: Your brand and preference become secondary to marketplaces
  • Channel Conflict: CPGs exploring avenues to trade with their customer’s customers
  • Substitution: Private label explosion will exploit major food brands
  • Customer Analytics: Increasingly critical consumer data masked by third parties
How to respond?
  • Create your own meaningful customer engagement and marketplace traffic
  • Enable direct consumer touches and data through eCommerce initiatives
  • Explore new “touches” through direct fulfilment, drop-ship, sampling, gifting
Create a seamless, agile ecosystem for Direct-to-Consumer fulfilment with:
  • Rapid fulfilment with nationwide reach direct-to-home
  • Kitting, cross-brand sortation, and promotion material
  • Eaches based and sorted replenishment for existing retailers
  • Flexibility to easily scale to respond to unknown demand

MonarchFx Food Ecosystem

Enabling agile delivery networks for all players in the food chain
Food Producers
National reach with in-region fulfilment
  • Endless kitting and sortation options
  • Customer-directed packaging and promotion
  • Ease of entry with variable costing
CPGs
Shifting from B2B to hybrid B2B/B2C
  • Exploring all channels for creating direct consumer relationships
  • Direct marketplace, dropship, sampling campaign
  • Need for a delivery ecosystem with limitless sortation
Traditional Grocers
Leveraging online & offline together
  • Seamless technology integration
  • Robotic unit and parcel sortation
  • Flow based inventory optimization
Marketplaces
National reach with in-region fulfilment
  • Meal kit providers
  • “Taste specific” marketplaces
  • Specialty products