*By Michael Teich* Niche food brands are infiltrating the internet, stealing shelf space from traditional food brands, and poaching C-suite executives from some of the largest corporations in the country, according to Annie Gasparro, a reporter at The Wall Street Journal. The established grocery brands and packaged food purveyors have been slow to respond to the challenge of start-ups because they are stuck calling shots from an outdated playbook, Gasparro said Wednesday in an interview with Cheddar. “They used to be able to just raise their prices, come out with a new flavor, she said. "But now, that’s just not enough anymore.” The internet has made it easier for consumers to compare prices and shop online, putting pressure on the sales and profits of brands that relied for years on store sales. Those brands are now desperate for innovation, and they're shaking up their executive rosters hoping that new leadership can lead to fresh ideas. In the past two years, the chief executives of at least 16 major packaged-food and beverage companies have left their positions, according to a Wall Street Journal analysis. Part of the reason companies have not adapted quickly to shifting trends is their tendency to replace executives with internal candidates, Gasparro said, when the food giants may be better off looking for leaders outside of the food industry. Large food companies are “walking a fine line between keeping core consumers happy and those looking for simpler ingredients and healthier food,” Gasparro said. Food companies are going through a cycle of "product renovation," removing unwanted ingredients and reformulating recipes to compete with newer brands. That doesn’t always generate sales growth because some consumers don't want changes, Gasparro said. For full interview, [click here](https://cheddar.com/videos/the-food-industrys-revolving-door-of-ceos-2).

Share:
More In Business
Load More