SOURCE: Rothman Research

Rothman Research

April 09, 2010 08:45 ET

Change Is in the Air

JOHANNESBURG, SOUTH AFRICA--(Marketwire - April 9, 2010) - -- After a challenging market environment in 2009 mainly due to recessionary factors, the food industry seem to be stepping into spring time as they shake away the chills of poor financials and low sales figures. With growing consumer spending and confidence continuing to soar for a fifth month on grounds that economic recovery is slowly taking on size throughout the markets, companies in the processed and packaged foods industry are intensifying their efforts to catch as much of this expanding buying power as possible. "This is the perfect time for companies to explore and open up new ventures locally and globally and Mead Johnson Nutrition Company (NYSE: MJN) is one of those that believes 'been proactive' is the name of the game. The company recently entered into a joint venture with the largest dairy company by market value in the Gulf Arab region," commented Mathew Collier of

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The last two years had a huge impact on consumer buying habits and with budding interest for healthy nutrition coming from both end-users and FDA, companies have had to revaluate their strategies quickly. Healthy food is not a new concept, of course, but it has most certainly grown out of its niche market parameters and is spreading throughout the consumer world like wild fire. With this change in consumption behavior comes yet another consumer expectation, lower prices. Unilever NV (NYSE: UN) is among those that have opted for 'high volumes sales with lower prices' strategy and this has already proved successful with revenue escalation during the quarter. 

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In conclusion, we might see demand for higher-value and low-cost products exploding throughout 2010. Winners in this space will be those that will be able to meet those demands efficiently.

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