Foodmakers Struggle With E-Commerce

Grocery manufacturers are struggling to adapt to the online world and need to invest in smarter packaging, presentation and supply chains to reap the long term benefits, according to Reuters.

E-commerce accounts for just 3.7 percent of sales for fast-moving items like food, drinks and personal care products, market researcher Kantar Worldpanel says, forecasting a rise to 5 percent by 2016 as supermarkets develop their web sites and online only retailers like Amazon and Ocado take them on.

Greater e-commerce could save money with more targeted marketing, including via social media, and lower product development costs, but industry insiders say manufacturers are put off innovation by the so-far small volumes of goods sold over the internet.

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