Consumers’ Taste For Quick, Fresh Foods Plagues Packaged Food Giants

Struggling packaged-food companies are finding it harder these days to secure retail shelf space as evolving consumer food preferences exert pressure on grocery stores. Fresh food, prepared hot meals, and foods from health trend-conscious start-ups are muscling out products from Kraft Heinz, Kellogg, and Mondelez. Store managers who need to maximize the return on shelf space say shoppers make the choices obvious: they are drawn, for example, to “steamy pasta” at the store’s deli counters rather than “a box of dried macaroni with powdered cheese.” Retail grocery chains all over the U.S. are building stores that emphasize in-store restaurants and fresh meals shoppers can take home over the traditional packaged foods that clog the center aisles.