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Shifting Priorities In Health Sound Alarm For Packaged Foods

As tastes change, packaged foods companies are feeling the pinch.

Kraft Foods announced a 62 percent decline in profits over the past year, and as a result, changed up their leadership. Chairman and CEO John Cahill replaced Tony Vernon as CEO in December. Other executives under Vernon are planning to leave at the end of February.

In addition to Kraft, Kellogg Company and ConAgra foods have pared back their expectations for profits and earnings this year.

Cahill has said the company needs to find out what consumers want. If the 2015 Consumer Analyst Group of NY conference is any indicator, consumers want organic, all-natural, and healthy -- even if it means paying more.

Nielsen's 2015 Global Health & Wellness Survey asked 30,000 people their thoughts on healthy food, and found that 88 percent are willing to pay more for healthy foods. Analysts believe the shift is much larger than a health fad.

Consumers are increasingly turning more health-conscious -- which today means high protein, low-carb and fresh.

Read More:

  • Your healthy habits are eating into the packaged foods industry (The Washington Post)
  • Kraft Foods announces management shake-up (Chicago Tribune)
  • Consumers Want Healthy Foods -- And Will Pay More For Them (Forbes)

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