Grocery manufacturers are struggling to adapt to the online world and need to invest in smarter packaging, presentation and supply chains to reap the long term benefits.
E-commerce accounts for just 3.7 per cent of sales for fast-moving items like food, drinks and personal care products, market researcher Kantar Worldpanel says, forecasting a rise to 5pc by 2016 as supermarkets develop their web sites and online only retailers like Amazon and Ocado cut into their business.
Greater e-commerce could save money with more targeted marketing, including via social media, and lower product development costs, but industry insiders say manufacturers are put off innovation by the so-far small volumes of goods sold over the internet.
