$8 Billion Market Up For Grabs
Inc.:
Imagine a market in which you have no control over how your product is displayed, in which the regulation is stifling, and in which you are subject to absurd price constraints. Sound like a nightmare? The market in this case is the school cafeteria. And yet, because of these headaches, the lunchroom lately has been a hub of entrepreneurial activity.
Today the market is undergoing a health-food revolution, driven by concerns about rising levels of childhood obesity and ever-rising demand for organic and locally grown foods.
A federal law that went into effect last year mandates that all school districts create “wellness policies” or lose government funding.
Meanwhile, the USDA is planning a $4.5 billion subsidy for fresh fruits and vegetables for schools. Not to be outdone, states and cities have set limits on fat and sugar content and, in some cases, banned entire classes of food.
The changes–which include recent bans on candy and marshmallows, soda, and vending machines in elementary schools–have made life difficult for incumbents in this $8 billion-a-year industry.
“It’s tougher on the big players,” says Erik Peterson, a spokesman for the School Nutrition Association, which represents nutritionists and cafeteria staff. “A small company that focuses on one market can put out a product faster.”
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Photo by whitehouse.gov.
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