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Nurturing a $127 Billion Business Opportunity in Specialty Food

By: Mark Baum, Senior Vice President of Industry Relations Chief Collaboration Officer, Food Marketing Institute FMI President and CEO Leslie Sarasin and SFA President Phil Kafarakis

A 2017 report by the Specialty Food Association (SFA) indicates that the specialty food category represents $127 billion, up 15 percent since 2014[i].  Specialty foods are outpacing their non-specialty counterparts in nearly every category. And consistent with current trends, categories aligned with health and wellness and fresh are growing fastest.

It’s true – the median sales per square foot for a specialty store average $6.47 more than a conventional supermarket, playing to the fact that shoppers are taking fewer overall trips to the grocery store and are migrating to other channels for pantry loading or specialty items. The demand wave is surging; and we know from our work in the private brands that the opportunity to attract loyal customers should not come with a compromise on product quality or safety. 

FMI and SFA announced an agreement aimed at broadening the scope and availability of new products in the food retail marketplace that ensures proper food safety business planning and standards. This new association alliance will bring new insights, create opportunities for business development, and offer education to specialty suppliers through food safety training services.

Suppliers remain the core to our businesses, and having safe, reliable, product sources is what consumers expect and deserve. Consumers are also expecting new, exciting, and local products to try, which can be particularly challenging when it comes to food safety. In this global, local, and big branded sourcing world, identifying suppliers – large or small – that have a solid foundation for food safety is not an easy task.

As your association, we recognize a need to nurture these nascent companies and give them the tools to be successful and reliable business partners. With the  growing list of emerging issues and regulatory requirements seemingly changing each time we open an email – whole genome sequencing, Listeria outbreaks, Food Safety Modernization Act deadlines and allergen recall alerts – so too are the changes that impact suppliers, brands and the culture of food safety embedded in our companies.

I look forward to Robert Garfield, chief food safety assessment officer & SVP, Food Marketing Institute, and head of SQFI, to address the upcoming SFA Fancy Food Show in New York, June 26th on the topic of the Future of Food Safety. He will discuss the impact of food safety disruptors on food retail businesses and their suppliers. In addition, our food safety team will host a Food Safety Lounge to help specialty food manufacturers and retailers navigate options for food safety programs and compliance.

Food safety is fundamental for food retailers, so we look forward to delivering on our promise for increased resources and opportunities with SFA in the years ahead.


[i] State of the Specialty Food Industry, 2017, Specialty Food Association