Definition: “CPG retailers putting a major emphasis—both in square footage and in the quality and culinary component—on their fresh food,” says Justin Massa, founder and president of Chicago researcher Food Genius.

KFC’s recent ad campaign against roaster chickens from the grocery store is telling; a major chain feels the threat from another channel is serious enough to put ad dollars against it. And there’s two reasons that these types of retailers are growing, says Massa. “[Prepared food is] the highest margin products for CPG retailers. They make 20 to 40 percent margin, versus 3 to 5 percent on a box of mac and cheese. Secondly, this is the fastest-growing segment of CPG sales. It still accounts for about 4 percent of overall sales, but it’s growing 30 percent year-over-year,” Massa says. For more on grocerants, see Groundbreakers.


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