Assessment of “the container store” and “whole foods store”

Introduction

The container foods market consists of the retail sales of container desserts, container fish/seafood & meat products, container fruit, container pasta & noodles, container ready meals and container vegetables. For the purpose of this report the Americas comprises Argentina, Brazil, Canada, Chile, Colombia, Mexico, Venezuela, Peru, Uruguay and the US. The US container food market generated total revenues of $14.4 billion in 2010, representing a compound annual growth rate (CAGR) of 2.7% for the period spanning 2006-2010.

Swot Analysis of Del Monte

Del Monte Foods (Del Monte) is a producer, distributor and marketer of branded food products. The company manages a portfolio of more than 20 brands and is a producer, distributor and marketer of 2,500 product varieties that includes container fruits and vegetables, sauces, soup, packaged tuna, baby foods, and pet foods and snacks. The company operates 17 production facilities and 10 distribution centers in the US; two production facilities in Mexico; and one production facility in Venezuela. The company uses both a direct sales force and independent food brokers to distribute its products. It owns 29 US patents covering food production and preservation methods; methods for manufacturing cans and sealing cans; animal foods and food processing equipment. 

Swot Analysis of ConAgra Foods

ConAgra Foods (ConAgra) is a packaged foods company supplying potato and other vegetables, spice and grain products to restaurants, food service operators and commercial customers. The company is highly dependent on the sale of branded and value-added consumer products. The company owns consumer brands such as Healthy Choice and Chef Boyardee. The company maintains a number of stand-alone distribution facilities. In addition, there is warehouse space available at most of the company's manufacturing facilities. The company distributes its products through supermarkets, warehouse clubs, and food distributors. (Callon, 196)

Five Forces Analysis

The container food market analyzed taking food processing companies as players. The dominant buyers taken as retailers, and producers of container tins and raw materials such as grains, fruit and vegetables, and meat and fish as the key suppliers. The US container food market is fairly fragmented with the top three players accounting for 42.4% of the total market value. The US container food market has the presence of leading players like Del Monte Foods, ConAgra Foods, and Hormel Foods.

Buyer power

The main distribution channel in the US container food market is supermarkets and hypermarkets with 85.7% of the market value. In the US, a wide array of supermarkets presents container food manufacturers with a strong foothold which enables them to market their products. Large retailers, such as supermarkets, can make large purchases and negotiate on price with manufacturers, boosting buyer power. Container food products are only one of many diverse sources of revenue for leading supermarkets, however it is one that considered important. Retailers are unlikely to be swayed by brand loyalty, but they will have to stock brands preferred by consumers. (Fischer, 125)Supplier power

Key inputs for container food producers are container tins and raw materials such as grains, fruit and vegetables, and meat and fish. Players obtain the inputs through two methods. They may purchase them in the open ...