It goes without saying that grocery stores today are under serious pressure from the likes of online powerhouse Amazon, bulk discount stores, category killers and the struggling retail
economy in general. These troubles are symptomatic of whats happening to many categories in the grocery aisle, in our case dairy. What most people don’t know about is the “slotting fees,” or funny money required by both retailers and distributors in order to get your product on the shelf and in view of consumers. Compound this with the inadequate product curation in 90% of the grocery stores by less than enthused category managers and its a recipe for disaster. Hence the marketplace today.
Let’s be honest, yogurt has been over-SKU’d and over spaced for several years now. Many a dairy aisle is duplicative and confusing, and too many choices have overwhelmed the shopper. What has been needed for a long time now is better SKU curation along the lines of consumer wants and needs. An adequate representation of niche and local brands that are in high demand can help differentiate a retailer, although sometimes you get a slew of imitators after innovators, as we have seen happen with our Kalypso brand. For instance a few local yogurt brands have found it keen to mimic certain sustainable packaging styles without researching the detrimental aspects of their particular packaging choice as well as using substandard milk sourcing. Therefore, Caveat Emptor ( Buyer beware,) do your due diligence and ask the questions you should be asking of these brands and their ingredient sourcing.
There’s something to be gained here from the perspective. “What strategies should a retailer follow” is different than “how can we best serve our customers.” When a retailer starts to ask more questions like the latter, the more positive results follow. Because of this wild dynamic in the market we have adopted a campaign of being very selective with whom we, as a small local brand do business with. Unfortunately, if you have not been seeing your favorite Kalypso brand stocked at the retailer you have been used to finding it in, its probably because those retailers did not understand the value and quality a brand such as Kalypso brought to that same retailer. Instead they have chosen to stock a brand seeking a higher profit margins and not considering the quality of what it is that they are selling.
As a result you will know find our premium branded products being sold directly via our online shop. Soon to be expanded nationwide, passing along the savings directly to our fans and not the middleman.