The big-name international food companies “are in the position of having to rework, reshape and re-imagine themselves” in response to consumer demand for fresh, local and organic foods, says the Guardian. It quotes Marion Nestle, nutrition professor at New York University, as saying, “The issue isn’t profits — those are massive — it’s growth.” Net sales at Kellogg fell slightly in 2014 and net revenue at Kraft was down marginally. “Consumers’ growing appetite for foods that feel healthier, fresher and less processed is one of the significant obstacles to growth,” said the Guardian.
A Morningstar analyst said supermarket sales of processed and packaged foods rose by 1 percent during 2014 while sales of fresh produce, dairy and meat were up by 5 percent. The big companies have repositioned themselves to some extent by buying smaller companies with a healthy-food cachet. Kellogg purchased Kashi, known for whole-grain cereal, for example. Con-Agra is expanding its Alexia brand of all-natural foods. Campbell’s is making organic soups.