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The trend of Americans to eat healthier while exploring new and exotic foods to whet their appetite for variety has sparked a marked increase in sales in the gourmet food industry whose current sales are in excess of 41 billion dollars.
(Progressive Grocer, 2006)
Retailers understand that the growth of gourmet foods is the result of Americans' interest in healthier consumption. Whole Foods Market, the Austin, Texas-based leader in the retail natural food sector, released its own study late last year, which said nearly two-thirds of Americans have tried organic foods and beverages in 2005, an increase from the 54 percent of consumers who said they sampled those foods in both the 2003 and 2004 surveys. Ten percent of Americans consumed organic foods several times per week, up from just 7 percent last year, according to the 2005 Whole Foods Market Organic Trend Tracker. (Progressive Grocer, 2006)
One company that has found its niche in the gourmet and fine foods market is Kudler Fine Foods. Kudler Fine Foods is a local upscale specialty food store located in the San Diego metropolitan area (Kudler Web Page). The company has been very profitable thus far, but corporate managers recognize a necessity for change and within the next 12 months, Kudler plans to increase customer loyalty by offering added high-margin services, leveraging the firm's better understanding of customer purchase patterns, and providing more efficient operations.
Profitability will increase by cost reductions accomplished through supplier partnering programs. (Kudler Fine Foods) To this end, the company plans to start contracting with local organic food growers, which will necessitate key supply chain and operations manag ...