Following is a transcript of the interview by Matt Levine of Cornucopia Show podcast in mid-September, released on November 3, 2017

MATT LEVINE:
We're here with Mike Movitz. Mike, good to have you back on Cornucopia. 

MICHAEL MOVITZ:
Thank you, Matt. Good to be back. 

MATT LEVINE:
Let's talk about Campbell's, a company that made canned foods a staple in every American kitchen and currently a company that's undergoing a lot of transformation. Before we begin I'll just read a list of a few of the brands they own: Prego, Spaghetti O's, Pepperidge Farm, Bolthouse Farms, V8, Pace Salsa, Plum Organics baby food, and most recently the purchase of Pacific Foods, natural and organic soup maker. Mike, give us a little update on what Campbell's has been doing and why it's important in terms of this current shift in consumer focus away from more processed to less processed foods.

MICHAEL MOVITZ:
I think to understand where Campbell's is headed, we need to understand the context of what's happening in general in the traditional food world. There is a seismic shift taking place on many fronts. For one, consumer eating habits have changed dramatically. When we think about the idea of three square meals a day, only five percent of consumers are actually eating three square meals a day. That is a thing of the past. Ninety percent of consumers today snack multiple times a day, and the lines between snacking and a meal is blurring. There's changes in demographics; changes in how people are interacting with and thinking about the importance of good food in their life; a consumer’s ideas about a company’s transparency, how they relate to that company, how authentic a company is, the values that company has and do they relate to the consumer’s values; Of course, there is e-commerce, digital and mobile technology disrupting retail and our shopping and buying habits; home delivered meals, meal kits, and prepared foods; and the shift from what we call center store of non-perishable products to the perimeter departments where the refrigerated and fresher food departments are. Whether that's dairy, produce, deli, meat, seafood, prepared foods, et cetera. 

All of these changes have been occurring at a at breakneck speed, much faster than companies were prepared for, nor was it really foreseen coming. 

In Mid-September 2017 Michael Movitz was interviewed on the Cornucopia podcast about how CPG companies are responding to the current consumer demand for better for you products, and why it matters. The podcast will be released soon, and in the meantime, below is an excerpt from the interview....

The speed of change as well as the number of changes that are happening creates a very fluid and new dynamic that literally is rewriting the playbook for the path to consumer as we speak. Traditional CPG companies were built on a business model of scale for efficiency, and that really hindered their ability to adapt, respond, react and move with speed. We started to see a number of years ago the natural, organic and specialty products industry had been growing very well for a long time but suddenly it was becoming much more front and center, and it was where all the growth was. More than $20 billion dollars in market share has been lost by traditional CPG over the last five or so years and it's all moved to these smaller start up and natural organic specialty premium product companies. 

As traditional CPG has started to get a grasp on what has been changing, they've  

Michael Movitz was interviewed by Supermarket News about pricing outlook related to the Amazon/Whole Foods deal.

Article by Mark Hamstra  | Aug 08 2017

​The structure of the natural products industry could limit how much Amazon is actually able to reduce prices at Whole Foods, as many observers believe it will try to do once its pending $13.7 billion acquisition is finalized.

While the price differential between natural/organic and mainstream products has been narrowing, and many retailers, including Whole Foods, have expanded lower-cost private label lines, the lifeblood of the industry remains many of the smaller producers that operate with high standards and production costs.

The acquisition might provide Amazon with new insights about these cost structures, said Michael Movitz, founder and managing partner at The Movitz Group, a Lincolnshire, Ill.-based consulting firm.

“This industry philosophically operates on standards, so there are lines that won’t be crossed,” he said. “There are probably learnings that Amazon will gain — at some point you have to value the product and the stakeholders in bringing the product to market.”

The breaking news this morning of Amazon’s acquisition of Whole Foods Market is as about exciting as it gets! This combination of businesses unleashes the power of new possibilities and potential from giant influencers Amazon & Whole Foods, a la Jeff Bezos and John Mackey. For grocery retailers, it adds even more pressure (read: opportunity) to a retailing environment already faced with the uncertainties of transition as ecommerce disrupts traditional retail models.

WFM CEO John Mackey’s nearly 40-year journey to bring us better food, improving the lives of its shoppers, has resulted in a transformation on American food culture, food retailing, personal health and social benefits to farmers, workers, and supply 

Twenty years ago, functional beverages emerged with the introduction of RW Knudsen’s Simply Nutritious juices – a groundbreaking combination of the brand’s signature delicious fruit juice blends with vitamins, minerals and herbs previously relegated to capsules and tablets in a pill bottle, and formulated for use occasions and consumer need states.  Up to that point, the closest thing was vitamin C & calcium enriched orange juice.  Simply Nutritious was the convergence of an erstwhile concoction, based on the foresight of consumer desire for a nutritional boost without taking a pill.

Functional foods & beverages is a platform for a new generation of iterations using superfoods, botanicals, probiotics and other elements of nature, as consumer demand for consumption to be way more than calories, drives innovation (and essentially, for all things to have ‘functional benefit’, save for the indulgent dessert, but even that is changing at the edges).  And let’s give a nod to personalized nutrition thanks to personal/wearable technology and commercialization of blood tests that will put an end to governmental one-size-fits-all nutrition and dietary recommendations.  More on that later.

The mobility of food & beverage trends into personal care and household categories is thus a natural evolution of consumer lifestyle desires we’re familiar with: to incorporate and employ the ‘foods’ (read: ingredients) they eat to be the ‘foods’ they rely on for all aspects of their well-being – in body, on body, in home/surroundings.  This notion is not new, and in fact up until now, the cosmeceutical trend begun 15 years ago or so was the convergence of supplements and personal care.  

However, a new wave of foods, processes, scents, packaging, and forms are on the rise in personal care and household products - this time taken from food & beverage trends - that seem to signal the melting away of boundaries between ‘in body, on body, in home’.  Combined with personal nutrition and technology capabilities, nothing is off limits and everything is possible.  This is the beginnings of personal care & household product’s “functional beverage movement”:

• Superfood charged skincare
• Probiotic topical concoctions
• Microbiome friendly household cleaners
• Waste-based innovation
• Small batch crafted
• Sustainable packaging
• Refined scents
• And More….

Our Trend Watch: Personal Care & Household Product’s Functional Beverage Movement report highlights ways to freshen up for Spring and a starting point to think about how pervasive and boundless these trends have become.

Bag of chips or pretzels? That's so 20th century!  Form, frequency & content rule the trend line of snacks now.  Micro Eating Occasions now drive "snacking" and consumers are looking for nutrient dense and satisfying, familiar and innovative foods, all in a convenient form.

• Sprouted
• High Protein
• Refrigerated
• Waste-based
• Micro-Farmed Livestock-based
• Adventurous Flavors
• International Ingredients
• Watermelon juice as a binder

These are only some of the things we're seeing in snacks these days.  Our Trend Watch: Snacks Redefined report is bite-size yet satisfying, full of examples and insights.

In advance of an upcoming conference, I was asked to provide a 200 word response to the following question:

My original answer was about 50% longer than permitted so I trimmed it to fit the conference limit.  I felt like sharing my original though, below.  I welcome feedback and especially additional ideas....

Leadership, mission, and purpose. Whole Foods continues to demonstrate these distinguishing characteristics through the opening of its latest store last week in Englewood, one of the most crime ridden and lower income areas of Chicago. The median income of this neighborhood is $20,500, about one-fourth the average of where most WFM stores operate.  It’s also a food desert. Residents historically have had to either travel long distances (likely on public transportation) or settle for buying their groceries from a convenience store (ie, a gas station).  Think about that – imagine your food selection was limited mainly to highly processed bagged and boxed snacks, bars, and canned goods.  Thanks to Whole Foods and support from the City of Chicago, residents have access to fresh, wholesome, healthy, nurturing food and nutrition, and resources to improve their lives.

​​According to Whole Foods Market, it worked very closely with the community to ensure it heard their voices, met their needs, and made the store about them.  The City of Chicago is also committed to this initiative: it sold the land to the developer where this WFM store now sits, along with other retailers including Starbucks, for $1.  The market value was $3.1 million, according to the Wall Street Journal.  

With two-thirds of 2016 elapsed and planning for next year soon upon us, it’s a good time to assess the forces shaping the business environment and consumer culture, and their impact on the natural consumer products industry. And boy are there impacts and changes afoot.

This is not the usual natural industry update because this is no longer the usual environment.  

​In today’s Sprout’s Farmer’s Market Q2 16 Earnings Release call, Sprouts highlighted its continued strength in top line, bottom line, and comp sales trends.  It also fielded a question from a financial analyst that represented the short term view institutional firms take, the financial pummeling investors in public natural product stocks have taken, and the skepticism that the financial community has for how much runway exists for wellness in America.

The last 18+ months of competitive headwinds and deep investments to reinvent themselves in the new normal have taken their toll on stock prices at Whole Foods, UNFI, Hain, and others.  True that stock price is a reflection of recent as well as predicted future performance, and aside from the “I’ll believe it when I see it” cautionary approach of sell side analysts, part of the pessimistic outlook within the financial community stems from three things: