Type “craft food” into Google and you’ll find no shortage of articles and reports on the ‘revolution’ taking market share from the established megabrands.
Craft beer is the most high-profile sector to be “crafted” and it’s not a flash in the pan but rather a train without brakes. BrewDog have led the charge – their current valuation is £1.8bn and they show no signs of slowing down.
Craft food, as it’s beginning to be known (it didn’t really have a name before) has been around longer than its beer namesake and was born about 15 years ago largely out of consumer concern for animal welfare. Reports and media coverage about how animals were treated in order to drive down costs to fulfil the margins of major retailers led consumers to reassess their shopping behaviour and voila, the free-range egg.
Fast forward – from the same set of shifting consumer values, fairness (fair trade), animal welfare (freedom food), traceability (locally sourced), taste (award winning) and a crop of challenger businesses emerged and became very popular – Tyrrells, Green & Blacks, Pukka, Innocent, Gü, BrewDog etc. These businesses were not driven by low price, but rather traded on their higher price to establish themselves as premium food brands.
From its inception, rather than slow down, the craft food trend has accelerated. As premium food brands are acquired, and their price positions fall as a result of economies to increase market share, new premium brands emerge and fill the space – and so the cycle continues.
Whilst consumer demand for food with greater quality, provenance, fairness and welfare, remains at 10-20% of the overall market, all segments of the food and beverage market will have their ‘craft’ challenger brands. These businesses will deliver to the consumer products, innovation and disruption that megabrands cannot offer.
At Serious Pig we are now successfully ‘crafting’ snacks and we are perfectly positioned to accelerate our growth to capitalise on the many opportunities at our door.
You can get involved from as little as £10 – visit crowdcube.com/seriouspig to watch our video and view our pitch and Own A Slice!