New age competitors: supermarket supermodels

Supermarkets are beginning to be foodservice distributors' strongest competitor in the home-meal replacement market. The Packer study in 1996, which examined the purchase sources of prepared foods that consumers bring home, revealed that 38% of American consumers bought prepared meals from supermarkets or convenience stores. It also reported that fresh produce makes up three-quarters of these purchases as most consumers have a general liking for salads.
While traditional grocery could increase $11 billion over the next 10 years, a greater opportunity could be provided by prepared foods. Easily another $19 billion in growth is possible. The [...]