From left to right: Paul Statchuk, Nulogy VP of Sales, Julian Bossong, South Atlantic CEO, Pat Grantham, South Atlantic’s Chief Sales Officer, and Jason Tham, Nulogy CEO.

  1. The economy will continue to soften. So, consumers will be shopping more at club stores, looking for more value packs and expecting low-cost options.
  2. Younger consumers will really emerge as our largest buying group. They are very interested in sustainability, they’ll consider a brand’s reputation when making decisions, and they’ll dig into social media to get behind-the-scenes info.  Co-packers should continue to get more inquiries about their quality certifications to help justify decisions for a “prove-it-to me” generation.
  3. Supply chain kinks are less prevalent – but they are still frequent and impactful.
  4. Inventory levels are way up, especially in discretionary goods. We heard 12-18 months of inventory in some cases, which will need to get absorbed cost-effectively.
  5. The bullwhip effects that drove up inventory are getting worse and worse, despite much attention via software planning tools. This requires even more agility on the co-packer’s end.  In general, we should expect shorter production runs, producing to stock as needed.
  6. Resiliency, resiliency, resiliency. Having two or more redundant co-packing options that are close to strategic routes and consumers will be key to reducing shipping costs, creating certainty and improving sustainability.

To find out more about how our footprint and certifications are differentiators for these issues, please click here to learn more about our five strategic locations.