News & Insights
Passive Price Taker or Active Price Strategist – You Choose
Setting aside your willingness to accept the premise that your product is undifferentiated from your competitors (topic for another day), let’s look at the two pricing postures you could have when selling product in a commodity market: 1) Surrender to the market, be victim to volatility, blindly trust The Market...Read More »
Will Amazon Enter the Meat Industry? Spoiler Alert: They Already Have.
If Amazon’s approach to other sectors is indicative of the approach they will take to grocery, they will force competing retailers to ask much more of their suppliers. We can expect Amazon, “Earth’s Most Customer-Centric Company,” to leverage their analytics capabilities to personalize each customer’s shopping experience. Competing in this...Read More »
People Need the Bacon: 4 Questions to Consider in Market Uncertainty.
For companies whose profit margins are impacted in some way by the pork belly market (processors, further processors, retailers, distributors, foodservice) that 80% price increase is likely leading some folks to either a Tums addiction or some sweet bonuses, depending on the company’s position in the market. Significant price movements...Read More »
Whether You Call It Trading or Not, Your Company is Taking Market Positions
Introduction: Market Risk at Commodities-Driven Companies When an investor buys a stock, she is taking a position, placing a bet on the stock’s value going up so that she can sell it later for a profit. In commodities industries like food processing and mining, many executives see their companies solely...Read More »
Millennial Meat Preferences: What am I Supposed to do with a Chuck Roast?
Something is causing an unprecedented number of millennials to eat out more than past generations, negatively affecting retail meat sales. Morgan Stanley found that 53% of millennials dine out once a week, compared to 43% of the general population. When millennials do purchase meat to prepare at home, they gravitate...Read More »