Your SlideShare is downloading. ×
Trends in U.S. Military and Correctional Facility Food and Foodservice
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Introducing the official SlideShare app

Stunning, full-screen experience for iPhone and Android

Text the download link to your phone

Standard text messaging rates apply

Trends in U.S. Military and Correctional Facility Food and Foodservice

819
views

Published on

U.S. Department of Defense is the nation’s largest employer—and a gateway to more than 3.2 million people. But the scope of military reach extends to the more than 12 million military members, …

U.S. Department of Defense is the nation’s largest employer—and a gateway to more than 3.2 million people. But the scope of military reach extends to the more than 12 million military members, families and retirees who depend on its wide net of retail, military installation, and combat food and foodservice operations, which have an international reach that incorporates everything from food and beverage supply to foodservice management to restaurant franchising.

Published in: Business, Travel

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
819
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Trends in U.S. Military and Correctional Facility Food and FoodservicePublished: May 2011No. of Pages: 134Price: $ 3995For food and foodservice manufacturers, suppliers and operators, speaking the language ofthe military is big business, which Packaged Facts’ Trends in U.S. Military Food andFoodservice helps participants translate into increased sales. In particular, we believe thefuture of military foodservice contracting is bright, fueled by governmental needs toincrease efficiencies and consolidate contracts. Current Marine Corps and the Air Forcecontracting trends foreshadow significant upside potential for foodservice contractors overthe next several years.More broadly, the U.S. Department of Defense is the nation’s largest employer—and agateway to more than 3.2 million people. But the scope of military reach extends to themore than 12 million military members, families and retirees who depend on its wide net ofretail, military installation, and combat food and foodservice operations, which have aninternational reach that incorporates everything from food and beverage supply tofoodservice management to restaurant franchising.By mirroring much of what foodservice can mean to people in the civilian world, militaryfoodservice can—and does—play a role beyond just subsistence, providing food viastructures, methods and atmospheres that meet—and enhance—lifestyle needs rangingfrom convenience-driven solutions to increased food variety to emotional uplift.And with the Armed Services framing “nutritional fitness” as a military services priority, thereport provides insight on the significant trends afoot related to soldier health and wellness,including obesity challenges, menu changes, educational initiatives, combat rationmodifications, and day part trends.Browse All: Beverages Market Research
  • 2. The report also assesses attitudes toward various on-installation and off-installationfoodservice options, and it analyzes off-site foodservice spending among military servicemembers, military spouses, civilians and retirees.The report covers food and foodservice operations at military installations, including messhalls, exchanges and recreational facilities; and food and foodservice field training andcontingency operations. While it focuses primarily on domestic military food andfoodservice, the report also presents global U.S. military foodservice sales and trendanalysis.It contains market size estimates for a range of military food and foodservice categories andprograms, including military clubs and exchanges; food and foodservice contracts; primevendor food and foodservice sales; military commissary sales; military exchange sales; andMilitary Morale, Welfare, and Recreation program sales.As a bonus, the report also includes an overview of the U.S. correctional facilitiesfoodservice market, including growth drivers, market sizing and forecasting, prison costtrends, state correctional facility budgeting trends, state prison count reduction strategies,foodservice cost analysis, and foodservice cost cutting initiatives.Market Insights: A Selection From The ReportFoodservice at U.S. Corrections FacilitiesIn this section, we provide an overview of the U.S. correctional facilities foodservicemarket,including growth drivers, market sizing and forecasting, prison cost trends, statecorrectional facility budgeting trends, state prison count reduction strategies, foodservicecost analysis, and foodservice cost cutting initiatives.Packaged Facts estimates that U.S. correctional facilities foodservice sales reached $1.74billion in 2010, a 2.2% increase from 2009, and a compound annual growth rate of 2.6%from 2005 to 2010. However, we forecast that the market will decline in 2011 and 2012,driven downward by incremental reductions in the overall prison population and significantbudget cutting initiatives at the state level.Joint Services Prime Vendor ProgramThe Joint Services Prime Vendor Program (JSPVP) provides quality food and food-relatedsupplies on a pre-negotiated basis to more than 1,000 military (Morale, Welfare, andRecreation) MWR and exchange foodservice operations at 235 installations around theworld. The primary customers of the JSPVP are MWR and Naval Air Facility (NAF)
  • 3. foodservice activities from the Army, Navy, NEXCOM, Marine Corps and Coast Guard. Itsbuying power allows the JSPVP to achieve savings over street pricing and to establishpricing agreements with manufacturers for bulk purchases. In fiscal 2010, programpurchasestotaled $147 million.Military Deli & Bakery Services, Inc.Incorporated in 1996, Military Deli & Bakery Services, Inc. (MDBS) is the largest operator ofdeli and bakery departments in military commissaries. Privately owned and managed by TimHoward, MDBS has revenues exceeding $70 million. Our overall business strategy is toincrease sales by attracting more customers and finding more items that our currentcustomers want to buy.Table Of ContentsChapter 1: Executive SummaryScope and MethodologyScopeMethodologyMarket size and forecastDefinitionsReport Summary AnalysisMilitary Foodservice Introduction and OverviewShare of Stomach: Military Foodservice Sales AnalysisInsight CapsuleMilitary Foodservice: Factors to GrowthInsight CapsuleMilitary Foodservice Contract AnalysisInsight CapsuleFast FactsMilitary Personnel Demographics & Food Service AttitudesInsight CapsuleFast FactsMilitary Foodservice Health, Nutrition and Menu TrendsInsight CapsuleFast FactsMilitary Foodservice Restaurant and Environmental TrendsInsight CapsuleFoodservice at U.S. Corrections FacilitiesInsight CapsuleChapter 2: Military Foodservice Introduction and Overview
  • 4. Summary overviewKey organizationsDefense Logistics AgencyDLA Troop Support Subsistence Supply ChainDLA Troop Support Produce DivisionDefense Supply Center PhiladelphiaDSCP Subsistence DirectorateGraph 3-9: DSCP Subsistence Directorate Organizational ChartPrime Vendor ProgramsDSCP Subsistence Prime Vendor ProgramQuality markersNational Allowance Pricing Agreement ProgramTop 20 DSCP Food ManufacturersJoint Services Prime Vendor ProgramTop 20 JSPVP Food ManufacturersAir Force Services Nonappropriated Fund Prime Vendor ProgramTop 20 AFNAF PVIII Food ManufacturersNaval Supply Systems CommandJoint Culinary Center of ExcellenceJoint Culinary Training DirectorateJoint Subsistence Policy BoardQuartermaster SchoolDefense Commissary AgencyMilitary Deli & Bakery Services, Inc.The Research and Development Associations for Military Food and PackagingTerms and definitionsAppropriated fundsBasic Allowance for SubsistenceBasic Daily Food AllowanceBox LunchContingency operationsCONUS and OCONUSDeploymentFederal fiscal yearFull food service contractsGarrison food service operationsMeal, ready-to-eatMenu Plan AllowanceMilitary Personnel, Army appropriationOperational rationSubsistence-in-kindChapter 3: Share of Stomach: Military Foodservice Sales AnalysisSummary Analysis
  • 5. Slicing military food and foodservice salesMilitary clubs and exchange food and drink market sizeGraph 3-1: U.S. Military Foodservice Market Size,2006-2011Segment analysisGraph 3-2: U.S. Military Foodservice Market Size, by Segment,2006-2011Food, beverage and foodservice contract revenueA tale of the contractual tape: military foodservice contracts crack $1 billionGraph 3-3: Department of Defense Foodservice & SubsistenceContract Award Amounts, 2001-2010Food subsistence far outstrips beverage subsistenceTable 3-1: Department of Defense Subsistence Contract Awards, Food and BeverageCategory, 2001-2010Dairy, dairy, dairyTable 3-2: Department of Defense Food Subsistence Contract Awards, by Food Type, 2001-2010Coffee, tea and cocoa, oh my!Table 3-3: Department of Defense Food Subsistence Contract Awards, by Beverage Type,2001-2010Subsistence prime vendor salesOn the $5 billion sales thresholdTable 3-4: Subsistence Prime Vendor Sales, by Category, 2009Top five food category salesBeverage salesTable 3-5: Beverage Subsistence Prime Vendor Sales, by Type, 2009MeatTable 3-6: Meat Subsistence Prime Vendor Sales, by Type, 2009PoultryTable 3-7: Poultry Subsistence Prime Vendor Sales, by Type, 2009Fish and seafoodTable 3-8: Fish & Seafood Subsistence Prime Vendor Sales, by Type, 2009VegetablesTable 3-9: Vegetable Subsistence Prime Vendor Sales, by Type, 2009Defense Commissary AgencyTable 3-10: Defense Commissary Agency, Selected MetricsTable 3-11: Top 10 Commissaries by Sales, 2009Military exchangesGraph 3-4: Military Exchange Sales,By Military Branch, 2009Table 3-12: Exchanges, Main Store Locations, by Branch, CONUS vs. OCONUSArmy and Air Force Exchange ServiceOperations and servicesFood and foodservice operationsNavy Exchange Service CommandMarine Corps Exchange MCX
  • 6. Coast Guard Exchange Systems CGESVeterans Canteen Service VCSMorale, Welfare and RecreationBy the numbersGraph 3-5: Military Exchange Sales,By Military Branch, 2009Navy MWRBy the numbersAir ForceArmyMarine CorpsFood and foodservice sales, by military branchArmyNavyAir ForceMarine CorpsThe big three food and foodservice vending leadersChapter 4: Military Foodservice Factors to GrowthIntroductionU.S. Department of Defense Spending and Budget TrendsIntroductionMore than 3 million employedA sprawling infrastructureGraph 4-1: Department of Defense Organizational StructureA $700 billion goliathCONUS spending on the riseGraph 4-2: Department of Defense Budget, 2001-20122010 budget assessmentGraph 4-3: Department of Defense 2010 Budget, by CategoryOverseas budget forecasted to drop significantly by 2012Graph 4-4: Department of Defense Budget, Domestic v International, 2010-2012Projections through 2016Graph 4-5: Department of Defense Budget Forecast, 2012-2016Staffing, organizational, and operational efficienciesBottom linePersonnel trendsArmed services employment analysisRegional emphasisInternational footprintWhere they are: ArmyWhere they are: Air ForceDominated by youthEducational attainment increasingly important
  • 7. Assessing military foodservice establishment opportunity by occupationEnlisted occupational analysisTable 4-1: Enlisted Military Personnel by Occupation and Military Service Branch, 2009Officer occupational analysisTable 4-2: Officer Military Personnel by Occupation and Military Service Branch, 2009Ground force reductionsTable 4-3: Active Military End Strength, by Armed Services Branch, 2007-12Table 4-4: Reserve Military End Strength, by Armed Services Branch, 2011-12Drawing down and reducing recruitingA surging forceDrawing down from the surgeLower recruitment capsDrawing down beyond the surgeAir Force personnel reduction strategiesDate of Separation Rollback ProgramAir Force captain promotion board promotion rateChapter 5: Military Foodservice Contract AnalysisIntroductionContracting on the upswingBut scrutiny is heightenedBottom lineArmy! Navy! Air Force! Sodexo!Sodexo’s $billion relationship with the U.S. Marine CorpsRGFSC IMarine foodservice contract typesEastern regionWestern RegionTable 5-1: U.S. Marine Corps RGFSC I Foodservice Contract, Selected MetricsField Food Service Feeding Study yields recommendationsRGFSC I consequencesRGFSC IISodexo’s contract halved into twoSuperior Services picks up other halfTable 5-2: U.S. Marine Corps RGFSC II Foodservice Contract, Selected MetricsAir Force Food Transformation InitiativePutting it in perspective: 91 million meals per yearBringing food service into the 21st centuryARAMARK gets the nodExpected improvementsAlaska base sees significant changeAir Force already weighing benefitsChapter 6: Military Personnel Demographics & Food Service Attitudes
  • 8. IntroductionBottom lineDemographic analysisOfficers: Gen X vs. Baby BoomersFamily members substantially outnumber service membersTable 6-1: Ratio of Family Members to Active Duty Service MembersArmy breakdown: lots of kids!AgeTable 6-2: Age Distribution of Active Duty SoldiersRace/EthnicityTable 6-3: Racial and Ethnic Diversity in the Army, by GenderGenderMarital statusResidenceTable 6-4: Places of Residence of Active Duty SoldiersDeploymentsFrequent rotationReservesMorale, welfare, and recreationUsing recreation programsTable 6-5: Recreational Programs & Services, Frequency of Use, 1995-2010Placing foodservice within the leisure needs paradigmHow do leisure activities stack up?Table 6-6: MWR Facility Usage Rates, Satisfaction Ratings, and Quality RatingsOn-post vs. off-post food & beverage services comparisonTable 6-7: Comparison of Quality of On-Post and Off-Post Food and Beverage Services,On Post versus Off PostDining preferences, by daypart and by service optionTable 6-8: Frequency of Meals Eaten Out, Taken Out or Ordered In,by Daypart& Restaurant Service TypeActive dutyTable 6-9: Frequency of Meals Eaten Out, Taken Out or Ordered In,by Daypart& Restaurant Service Type, Active Duty Military MembersMilitary spousesTable 6-10: Frequency of Meals Eaten Out, Taken Out or Ordered In,by Daypart& Restaurant Service Type, Military SpousesCiviliansTable 6-11: Frequency of Meals Eaten Out, Taken Out or Ordered In,by Daypart& Restaurant Service Type, CiviliansRetireesTable 6-12: Frequency of Meals Eaten Out, Taken Out or Ordered In,by Daypart& Restaurant Service Type, RetireesSpend by daypartTable 6-13: Typical Off-Post Dining Out Costs, by Demographic
  • 9. Chapter 7: Military Foodservice Health, Nutrition and Menu TrendsIntroductionHealth, nutrition and menu trendsMilitary not immune to obesity epidemicRising overweight and obesity rates among U.S. adultsGraph 7-1: Prevalence of Adult Civilian Overweight & Obesity, 1988-2008Reflected in military service rejectionsA significant military medical concernStudy overviewMilitary overweight trend on upswing, even while civilian rates taperCategory leadersGraph 7-2: Armed Forces Active Service Members, Overweight/Obesity Trends, 1998-2010CaveatsService branch analysisGraph 7-3: Armed Forces Active Service Members, Overweight/Obesity Trends,by Service Branch, 1998-2010Gender analysisGraph 7-4: Armed Forces Active Service Members, Overweight/Obesity Trends,by Gender, 1998-2010Racial/ethnic analysisGraph 7-5: Armed Forces Active Service Members, Overweight/Obesity Trends,by Race/Ethnicity, 1998-2010Age analysisGraph 7-6: Armed Forces Active Service Members, Overweight/Obesity Trends,by Age, 1998-2010Occupational analysisGraph 7-7: Armed Forces Active Service Members, Overweight/Obesity Trends, by MilitaryOccupation, 1998-2010Health and nutrition initiativesMenu changes galoreRationale behind revised menu standardsMarines Master Menu changes: dietician approvalArmy Meal Kits undergo major nutritional and packaging changesMarine Corps emphasizing nutrition over costArmy Soldier Fuelling Initiative (SFI)SFI menu changes: breakfast examplesAir Force FitFamily initiativeMarine Corps FUEL For LifeAnnual Culinary Arts Competition expandsJCCoEGoes for GreenColor coded educational toolDaypart trendsBreakfast beverages
  • 10. Trend toward even lower fat optionsCerealHealthy menu optionsSnacksSuppliers and snack brandsCombat ration trendsMenu variety by daypart increasesNutrition issues on the horizonSoldier feedback influences ration menu changesBrand name positioningIndividual rationsMeal, Ready to EatRecent MRE improvements and changesRecent and planned MRE menu improvements: 2009-2012Group rationsUGR benefitsUGR analysis: UGR-H&SCharacteristicsNutritional dataRecent and planned menu improvements: 2009-2011UGR-ANutritional dataPreparation requirementsRecent and planned menu improvements: 2009-2011Navy Standard Core MenuCharacteristicsNutritional dataOther UGRsUGR-BUGR-EArctic SupplementAssault rationsFirst Strike RationMeal, Cold Weather/Food Packet, Long Range PatrolSpecial purpose rationsThe Meal, Religious, Kosher/HalalMeal, Religious, Kosher for PassoverMeal, Tailored Operational TrainingGo-To-War RationOther Special Purpose RationsNew ration concepts entering the fieldNew Designs for MRE Meal BagsNutritionally Optimized First Strike RationModular Operational Ration Enhancement (MORE)
  • 11. Chapter 8: Military Foodservice Restaurant and Environmental TrendsIntroductionRedesigning Military Foodservice in the Restaurant AgeMarine Corps takes a few pages from college campusesCamp Lejeune borrows from Colorado State UniversityCamp Pendleton mass hall integrates technologyModernizing Army dining facility designPentagon food court gets overhaulBranded competitionExchanges bring branded competition to the doorstepAAFES ExchangeTable 8-1: AAFES Retail and Concession Sales, 2007-2009VendingRestaurant operationsSignature BrandsName-Brand Fast Food1,600 restaurants and countingConcession FoodNavy Exchange Service CommandNavy ExchangesShip Stores ProgramNavy Lodge ProgramMarine Corps ExchangeMWR branded competitionFast foodCasual diningComprehensive packagesBrand additions and counter-strategiesNorfolk naval base adds branded restaurant unitsNellis Air Force Base experiments with restaurant concepts; feels competitionStiff off-base dining competitionEnvironmental trendsMarinesCampLejeune goes greenArmy effortsCage-free eggsRefillable water bottlesNavy effortsDSCP sustainability programsChapter 9: Foodservice at U.S. Corrections FacilitiesIntroductionU.S. corrections facility foodservice market size & growth forecast
  • 12. Graph 9-1: U.S. Corrections Facility Foodservice Market Size and Growth Forecast: 2005-12State foodservice comprises bulk of marketGraph 9-2: U.S. State and Federal Corrections FacilityFoodservice Market Size and Growth Forecast: 2005-12Crime trendsTable 9-1: Crimes and Crime Rates by Type of Offense: 1990 to 2008Prison growth trendsFederal prison population growthTable 9-2: Prisoners Under Federal or State Jurisdiction, 2005-20102009-2010 decline2009-2010 decline a surprise to forecastersTable 9-3: Prisoners Under Federal or State Jurisdiction, 2008-2010Why? CaliforniaWhy? MichiganWhy? TexasCommunity supervisionProbationParoleTable 9-4: Adults on Probation or Parole, 1999-2008Prison costsTable 9-5: Adults on Probation or Parole, 1999-2008Budget pressureCorrectional facility budget cuttingDepressed capital spendingTable 9-6: State Budget Balances and Budget Differential: 2008 and 2009Illinois focuses on reducing the number of offenders sent to prisonFood service cost analysisFederal prisonsConnecticutMichiganGeorgiaNutrition costs moneyMore food service cost cutting measuresGrow your ownPrivate prison growth trendsTable 9-7: Private State and Federal Prison Market Share, by CompanyAbout Us:ReportsnReports is an online library of over 100,000+ market research reports and in-depthmarket research studies & analysis of over 5000 micro markets. We provide 24/7 online andoffline support to our customers. Get in touch with us for your needs of market researchreports.Follow us on Twitter: http://twitter.com/marketsreports
  • 13. Our Facebook Page: http://www.facebook.com/pages/ReportsnReports/191441427571689Contact:Mr.Priyank7557 Rambler road,Suite727,Dallas,TX75231Tel: + 1 888 391 5441E-mail: sales@reportsandreports.comhttp://www.reportsnreports.comVisit our Market Research Blog