- Alliance with Walgreens is a jump start on Amazon.
- Autonomous delivery vehicles are in test; first sites have been selected for robotic, high tech warehouses.
- New “Easy for You” customizable meal kits let shoppers bundle their choices of frozen entrees and sides into packaging that can be taken home and heated up. Includes online video prep instructions.
- Morgan Stanley’s “buy” rating based on Amazon’s grocery opportunities alone.
- Opening 3,000 Go stores over the next 3 years (c-stores will be big losers here).
- Cashier-less technology is leverage for Amazon to acquire anyone right now while the rest of the industry waits 3-5 years for similar tech.
- Consumer experience at the point-of-purchase is where fortunes will be made or lost.
- New product performance differs between channel customers. The way manufacturers collaborate with them will decide their fate.
- Timeline between announcements of new value and market testing is at the speed of light.
- Three PE “consolidators” are prepared and able to sweep up every national restaurant company for long term investment (Jonathan Maze). McDonald’s and Starbucks will stay public as exceptions.
- Execution of off-premise dining is the #1 concern of restaurant chains.
- Investors pouring tens of $millions into shared kitchens (rented by the hour, day, week or month) accessible to chains to cut overhead, expand footprints, test new concepts, or execute efficient delivery ($365B by 2030) from a central location.
- “Demand mapping” will pressure manufacturers to invest without commitment to supply.
- Rapid response to unpredictable demands in the system and the market.
- Independents accelerate group purchasing to drive manufacturer pricing down and lock contracts for longer periods.
The next 18 months will be unlike any seen before in our industry. And this is just a start, with much more still under the radar.
For many manufacturers, shifts in both the means and the ends of value creation will prove to be unmanageable…