KEY DEVELOPMENTS IN THE FOOD DISTRIBUTION SYSTEM

Many changes are occurring in food retailing. Forces driving these changes include the sales gains by supercenter, membership club, and convenience stores, the growing popularity of foodservice, the expansion of private label products (and the response by branded food manufacturers), and the identification of new consumer interests and concerns. These forces encouraged food processors, distributors, and retailers to improve the efficiency of the food distribution system. The Efficient Consumer Response and Efficient Foodservice Response initiatives are designed to lower the costs to move products through the system. These developments in the food distribution system have several important implications for other food and agricultural businesses.