When customers of Canadian frozen french fry giant McCain Foods demanded non-genetically modified potatoes, McCain delivered.
And if customers decide they want those potatoes fried in oil from GM-free oilseeds, McCain will be ready, said Mark McCauley, the company’s vice-president of marketing.
The company stays on top of consumers’ wants by talking to their buyers, who are among the largest restaurant chains and retailers in North America, and by doing extensive consumer research.
“Our customers today aren’t saying, ‘This is a vision of ours,” said McCauley, noting oil extracted from GM oilseeds does not contain the modified gene.
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But McCain Foods has already started to look for potential sources of oil made from GM-free oilseeds, just in case, McCauley told the recent Agri-Food 2000 conference.
While the company believes in GM technology, it’s been hard to sell GM foods to consumers, said McCauley.
He believes consumer pressure against GM food is here to stay in Europe and parts of Asia.
Food manufacturers can’t afford to ignore their customers in today’s global food market, said McCauley.
Manufacturers used to develop products and then offer them to consumers.
But now, consumers dictate what they want.
These days, consumers are more diverse, knowledgeable about food, well-traveled and socially conscious, said McCauley.
They want safe food, food that’s good for them and the environment, comfort foods and ethnic foods.
They want food fast and easy, and food with a positive image, he said.
“Branding is everything.”
American fast food chains dominate the top food service accounts. The only Canadian operations to make the top 10 are Tim Horton’s and Cara.
Food retailers are also consolidating and growing globally – but aside from Wal-mart, no North American retailers are playing in the big leagues, said McCauley.
Manufacturers will have to cater to larger customers, but shrinking numbers of them. Centralized buying departments will have clout because of huge volumes.
Some analysts predict only five to eight global grocery retailers will remain after the current wave of consolidations, said McCauley.
Most Canadian food manufacturers aren’t well-positioned to take part in the global trend, he added.
They need capital to modernize and expand their factories.
During the past three years, the depreciation of food manufacturing assets has outstripped investment, he said.
“That’s a program for disaster.”
But small food manufacturers are most capable of capitalizing on emerging consumer trends, developing new products, and catering to regional taste differences, said McCauley.
