Professional Documents
Culture Documents
Apr 2015
Apr 2015
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April 2015
features
cover story
88
62
Category ManageMent
Delivery Solutions
Reaching across aisles
to satisfy shopper
need states is the way
to boost center store.
92
ProduCe
grocery
70
CondiMents
Hot Stuff
Sauces with a spicy kick
enliven supermarket displays
and customers palates.
frozen &
refrigerated
30
98
Aisles of Opportunity
fresh food
ProduCe Category
sPotlight
Masters of Melons
Flavor-packed varieties,
strategically merchandised,
are key to this categorys
success.
106
guest PersPeCtives
80
Progressive groCer s deli insights
115
74
Baked goods
2015 annual
Meat ConferenCe
Lessons in Meat
Marketing
Annual conference looks at
branding, natural products,
foodservice and how to
enhance the shopper
experience.
nonfoods
120
HealtH Beauty & Wellness
Advances in Care
Retailers can tap new technology for personal disease
management to attract diabetes patients.
EDITorIAL
Editorial Director
Joan Driggs
224-632-8211
jdriggs@stagnitomail.com
Chief Content Editor
Meg Major
724-453-3545
mmajor@stagnitomail.com
Editor-in-Chief
James Dudlicek
224-632-8238
jdudlicek@stagnitomail.com
Managing Editor
Bridget Goldschmidt
201-855-7603
bgoldschmidt@stagnitomail.com
Technology Editor
John karolefski
440-582-1889
jkarolefski@stagnitomail.com
Senior Editor
katie Martin
224-632-8172
kmartin@stagnitomail.com
Senior Editor
Anna wolfe
207-773-1154
awolfe@stagnitomail.com
Digital Editor
kyle Shamorian
224-632-8252
kshamorian@stagnitomail.com
Art Director
Bill Antkowiak
bantkowiak@stagnitomail.com
Contributing Editors
Bob Ingram, Jenny McTaggart, Barbara Sax,
Jennifer Strailey and Christina Veiders
126
Storm Cells
In times of emergency, consumers look to grocery retailers
for batteries and fashlights.
technology
129
e-CommerCe
134
guest PersPeCtives
138
logistiCs
142
sHoPPing Carts
departments
10 EDITorS NoTE: BANNEr YEAr
14 PG PuLSE
16 IN-STorE EvENTS CALENDAr: JuNE 2015
20 NIELSENS ShELf SToPPErS/SPoTLIGhT:
frozEN AND rEfrIGErATED PrEPArED fooDS/
frozEN AND rEfrIGErATED GrAvIES AND SAuCES
22 MINTEL GLoBAL NEw ProDuCTS:
SALTY SNACkS, MEAT SNACkS AND PoPCorN
24 NEw horIzoNS: ITS TIME for A NEw workPLACE
28 ALLS wELLNESS: EArTh DAY EvErY DAY
146 whATS NExT: EDITorS PICkS for INNovATIvE ProDuCTS
150 ThE SuPPLIEr SIDE
154 ThE LAST worD: ANTICIPATIoN
Jeff friedman
jfriedman@stagnitomail.com
CANADIAN MArkETS
Convenience
Pharmacy
Foodservice
editors note
by Jim Dudlicek
Banner Year
G
Marketing
meals, not
ingredients
solutions, not
products is
whats going
to keep the
traditional
grocer relevant
and thriving.
10
INNOVATION
IS
EVERY DAY.
hersheys.com
Join us at the
NCA Sweets & Snacks Expo,
Booth 1505.
General Mills
Supermarkets Excel at
Experience Ratings
Meal preparation takes center stage among top evolving trends in U.S. consumers
eating habits, according to Jacksonville, Fla.-based Acosta Sales & Marketing, whose
recent survey finds that nine in 10 shoppers prefer eating at home, driven by a desire for
comfort (61 percent), cost (60 percent) and convenience (59 percent).
Rather than cooking from scratch, however, Americans are turning to readyto-eat and take-and-bake solutions, including hybrid homemade meals such as a
grocery store rotisserie chicken with a salad-in-a-bag and homemade potatoes.
Some 46 percent say they prepared meals at home over the past year 48 percent
when considering only the Millennial generation which also reports eating prepared
foods from grocery stores at home at a much higher rate than total U.S. diners
(27 percent versus 16 percent, respectively).
Acosta Sales & Marketings The Evolution of Eating Survey
7.4%
14
FAMILIES IN NEED
ARE ASKING FOR MILK
Milk is one of the most requested items at Feeding America food banks nationwide. But donations
fall far short of the need. That means many of the 16 million children who struggle with hunger
every day miss out on milks high-quality protein and other essential nutrients. Its a big problem.
Invigorate your
milk sales without
discounting
Strengthen
your community
presence
1-800-945-MILK
mmalcolm@milkpep.org
10
11
12
13
17
18
19
20
National Rocky
Road Day. Sample
different brands of
rocky road ice cream.
National Doughnut
Day. Make sure
the bakery is ready
and offer doughnut
samples to shoppers.
National Chocolate
Ice Cream Day
14
21
Fathers Day
15
National
Lobster Day
22
National Chocolate
clair Day
National Onion
Ring Day
28
2
16
29
National Waffle
Iron Day
National
StrawberryRhubarb Pie Day
National
Iced Tea Day
National German
Chocolate Cake Day
16
23
National Apple
Strudel Day
Conversely, its
also Eat Your
Vegetables Day.
To celebrate
International
Picnic Day, build a
big display of picnic
baskets, recyclable
cutlery, plates and
glasses, napkins,
and food storage
containers.
24
25
National Cherry
Tart Day
National
Pralines Day
National Peanut
Butter Cookie Day.
Schedule cooking
demos to show how
easy it is to make this
treat at home.
National
Flip-Flop
Day
Kitchen Klutzes
of America Day.
Display items to help
the clumsy like
sponges, cleaning
aids, adhesive
bandages, mops and
brooms.
National Vanilla
Milkshake Day
National
Martini Day.
Take an online
poll: shaken
or stirred?
26
National Chocolate
Pudding Day
27
To celebrate
National Sunglasses
Day, ask all staff to
wear their shades.
National
Catfish Day
30
National Almond
Buttercrunch Day
awolfe@stagnitomail.com
AMT Adjustable
Merchandising Tray
Org
ga
aniz Chaos, Increase Sales
Organize
Designed for yogurts; dips; spreads; puddings, gelatins
and snacks; ice cream and sherbet; instant soup cups;
microwave single-serves; food-to-go offerings, tubs,
bottles and other difcult to organize products.
Large AMT adjusts from 4" to 4 5/8" wide for tub, pint,
11/2 pint, ice cream and large containers.
Adjustable Width
Breakaway Lengths
Built-in Handles
Built-in Ventilation
Paddle Extenders
Sidewall Extenders
Part of the Trion Shelf Works System of Cooler and Storewide Merchandising Solutions.
Trion WonderBar
Pouch Hook
Gravity-Feed Available
Part of the Trion WonderBar Family of Tray and Bar Merchandising Solutions.
Front End
Shelf Stoppers
Sales
% Change Dollars
(Millions)
2015
2014
Entres-Mexican (One-food-Frozen)
$621.9
5.0%
1.9%
Entres-Meat (One-food-Frozen)
641.3
4.2
7.5
Sauces and Gravies-Frozen/Refrigerated 308.1
3.5
3.0
Entres-Remaining (Two-food-Frozen)
13.3
3.5
-14.5
Soup-Frozen/Refrigerated
224.1
3.1
5.5
Entres-Remaining (One-food-Frozen)
487.4
2.5
-0.2
Corn Dogs-Frozen/Refrigerated
200.0
0.7
-2.7
Pot Pies-Frozen
317.7
0.1
4.8
Entres-Poultry (One-food-Frozen)
1,898.9
0.0
1.9
Pasta-Plain-Frozen
192.6
-0.4
0.0
Total Category
$8,108.1
-1.5%
% Change
2015
3.6%
2.1
2.9
-7.8
2.0
-0.3
-0.4
-1.5
-1.7
-1.8
Units
2014
1.2%
6.8
0.8
-15.1
2.2
0.0
-1.6
0.5
0.0
-1.1
-3.3%
-2.1%
-1.2%
NielseNs Spotlight
Consumption Index: Frozen/Refrigerated Gravies and Sauces
LIFESTYLE
Behavior Stage
Modest
Working
Towns
Plain Rural
Living
Total
CROSS-MERCh Candidates
wITh ChILDREN:
startup Families
105
169
77
67
81
103
103
small-scale Families
124
158
107
83
89
72
106
104
183
102
76
118
79
109
159
177
161
65
129
89
136
Young Transitionals
57
130
66
89
90
37
77
independent singles
72
94
92
61
62
36
67
senior singles
48
81
60
92
46
49
59
established Couples
127
167
120
124
111
76
119
empty-nest Couples
133
194
125
96
112
84
126
senior Couples
125
134
129
63
99
72
105
Total
100
152
110
81
91
68
100
NO ChILDREN:
Any size HHs, no children, <35
1-person HHs, no children, 35-64
1-person HHs, no children, 65+
2+-person HHs, no children, 35-54
2+-person HHs, no children, 55-64
2+-person HHs, no children, 65+
20
Average Consumption=100
Wine
Photographic
Supplies
Baby Needs
Yogurt
Skin Care
Preparations
Disposable Diapers
and Training Pants
Baby Food
Fresh Produce
More ONLINE
Dig up actionable
e
research and additional
al
intelligence at
Progressivegrocer.com
A Taste of
Sweet Excitement
comes to Store Shelves!
Introducing
ZingTM Zero Calorie
Stevia Sweetener
and
The Zing sweetener brand was created with the discriminating Millennial demographic in mind the
younger shopper searching for products with authentic ingredients and a pure sweet taste they can believe in.
For this target of youthful, well-informed consumers seeking a delicious sugar substitute made with real
ingredients, Zing is a victory, a true reason to get excited.
Market Overview
The United States is the standout market in the
North American salty snack, meat snack and
popcorn category, with a predicted average value
growth of 5.3 percent over the next five years.
Canada also offers promising average value
growth of 3.1 percent during the same period,
despite lower per capita consumption.
key iSSueS
Introducing protein to food
and drink has become a
major focus of innovation,
due to its links to increased
satiety and muscle retention.
Recent new product
development activity has
shown that the protein
trend has migrated into the
salty snack category, with
manufacturers fortifying
their innovations with protein
or by prominently marketing
natural protein content
on-pack. For instance, a
number of brands have
launched salty snacks based
on vegetables and grains to
achieve high-protein claims.
The past 12 months have also seen how brands
have been launching skinny snacks onto the
market. No/low/reduced fat has been one of
the main areas of innovation in North America,
accounting for 14 percent of the total new
product launches in the past year.
22
so happy together
More bundled beverage choices can help drive proft to your deli promotions.
From snacks to complete meal solutions, The Coca-Cola Company has a perfect
beverage for every meal combination you serve.
Go to CokeSolutions.com/retail for more insights.
Nonfoods
Category
NEW
Horizons
By Joan Toth
24
sustainable organizations
must have targets in place that
advance women.
U-LinkTM Curve
360o Merchandising
180o Merchandising
Booth
623
WWW.FORTEPRODUCTSOLUTIONS.COM
CALL 816.741.3000
April 2015 | progressivegrocer.com |
25
Alls Wellness
By Molly McBride
28
Discovering Local
At Kroger, our Discover Local campaign focuses on
locally grown products, with an emphasis on great
quality. Te less time food is on road, rail, water or
air equates not only to a greener approach, but also a
cost savings that can be passed on to the customer.
Current numbers from the Environmental
Protection Agency indicate that 13 percent of all
global greenhouse emissions are from transportation and 14 percent are from agriculture. Retailers
can be leaders in limiting the distance from farm
to table, to control the amount of energy expended in putting brands on the shelf.
Other ways to honor Mother Earth
this month include adhering to
the four Rs: reduce, reuse,
recycle and repurpose. Customers continue to strive
to use less and do more
with less, in eforts to
save money, decrease
clutter and contribute
to sustainability eforts.
Capitalize on this time
to talk to your packaging department,
category managers or
CPG manufacturers to
brainstorm ways that can
decrease packaging waste
and make your products even
more appealing.
Te sustainability movement involves much more than whats happening
outside the walls of your stores. Take a harder look
at plant-based oferings, waste, packaging, sourcing, geography and even seasonality to engage and
retain customer interest and support resources for
generations to come. PG
Molly McBride, RD, LD, is a corporate dietitian for
The Kroger Co., based in Cincinnati.
Nexium24hr.com/guarantee
Use as directed.
30
Aisles of
opportunity
rocery retailers confdence in ana rosy retail climate, up from 30 percent this year.
other year of success continues to
Its obvious that current economic conditions
inch upward from the valleys of the
are buoying retailers spirits. Te Kroger Co.
past decade, and their optimism for
recently celebrated its 45th consecutive quarter
the retailing climate has reached
of same-store sales growth. Describing 2014 as
new heights, exclusive research from
an outstanding year by all measures, Rodney
Progressive Grocer reveals.
McMullen, chairman and CEO of the CincinnatiMeanwhile, as the manner in
based grocery giant, said at Krogers March earnwhich business is transacted continues to evolve,
ings call that the company captured more share
new issues are keeping grocers up at night.
of the massive food market [and] delivered on
On a scale of 0 (awful) to 100
our commitments and invested to grow
(sensational), retailers surveyed by PG
our business. [O]ur core operating
Grocers Are
just topped 72, up nearly six points
performance without fuel shows that our
siGnificAntly
from their score for 2014. A year ago,
associates are improving our relationship
however, retailers forecast for the com- more optimistic with customers in ways that grow loyalty
About the
ing year was 71.8, indicating that 2014
and generate strong shareholder returns.
didnt pan out quite as expected.
However, Ken Odeluga, senior market
retAil climAte
Still, sentiments are most defnitely
compAred with analyst for London-based City Index,
trending up, and have come a long way
that future trends in the market
A yeAr AGo, with warns
from the score of 58.4 reported in 2009.
may prevent Kroger from delivering the
Overall, grocers are signifcantly more neArly hAlf of
staggering numbers that it did in Q4.
respondents
optimistic about the retail climate comWith the shares having gained
pared with a year ago, with nearly half of sAyinG theyre
more than 64 percent over the last 12
respondents saying theyre sweet on 2015; sweet on 2015.
months, and a 52 percent rise in 2013,
thats up from about 39 percent a year
the bar is getting higher for continued
ago. Just more than a ffth express less
strong sentiment, Odeluga said in Prooptimism (versus 28 percent a year ago) and just shy
gressivegrocer.coms report on Krogers last earnof 30 percent declare they envision no change.
ings call. Te point is, a number of forces are
As is typical, chain operators are the most confcoalescing that are expected to press on Krogers
dent, with nearly two-thirds expressing optimism for
batting average over the next few quarters,
retailing this year, up from about 52 percent a year
largely from fuel-related to headwinds.
Continued on page 34
ago. About 44 percent of independent operators see
April 2015 | progressivegrocer.com |
31
methodology
Progressive Grocers 82nd Annual Report of the Grocery Industry is based primarily on an exclusive survey
conducted among headquarters executives and store
managers at 135 supermarket chains, independents,
wholesalers and distributors across the United States.
Sixty percent of the respondents classify themselves
as independent retailers, and about 18 percent are selfdistributing chains; about 12 percent are wholesalers,
and 7 percent are distributors.
Of the total respondents, more than half represent organizations with one to 10 stores, and about a third have 100
or more stores, while about 15 percent are from operations
with between 11 and 99 units.
Regionally, about 31 percent of respondents are from
the Midwest, about a quarter are from the West, just
less than a quarter are from the Northeast, and about 21
percent are from the South.
Additional store count and sales data are provided
by Nielsen TDLinx, which maintains a national database
of supermarket and other retail format locations.
type of orgaNizatioN
perceNt of reSpoNdeNtS
perceNt of reSpoNdeNtS
1-10
11-99
100 or More
Average Number of Stores: 770
51.2%
34.1%
60.3%
17.6%
14.5%
14.7%
0.8%
President/C-level
Buyer/Merchandiser/Category Management
Retail/Store Operations
Sales/Advertising/Marketing
Store Manager
Distributor/Broker
Other
19.2%
6.9%
regioN
Midwest
West
Northeast
South
21.4%
31.3%
13.1%
3.8%
22.9%
17.7%
41.5%
1.5%
3.1%
32
24.4%
All-day choices.
All-day growth.
Take a fresh look at our new lineup. Everyone is seeing Special K differently.
For shoppers, its satisfaction without sacrifice around the clock. For you, its
a renewed focus on growth. With bold, new flavors and packaging, Special K
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See more at centerstoregrowth.com.
RETAIL CLIMATE
No change
TOTAL
49.6%
29.8%
20.6%
34
Less optimistic
CHAIN
63.6%
22.8%
13.6%
INDEPENDENT
30.4%
44.3%
25.3%
Source: Progressive Grocer Market Research, 2015
64.3%
Rank
1
Tossing and
Price Increases
59.5
2
Turning
Tere was a notable
Benefits (Minimum Wage, Affordable Care Act, etc.)
56.3
3
change in priorities
Food Safety
37.3
4
among grocers who
Labor (Recruitment, Retention, Diversity, Training)
35.7
5
responded to our question, What are the
Keeping up With Advancements in Technology
33.3
6
big issues keeping you
Increasing
Overhead
Costs
(Energy,
Infrastructure,
Maintenance,
etc.)
28.6
7
up at night?
Topping the list:
Sustainability
20.6
8
data protection and
Genetically Modified Organisms (GMO)
12.7
9
security, noted by
Feeding the Hungry
11.1
10
more than 64 percent of respondents.
Competitive Threats
6.3
11
A year ago, data
Animal Welfare
2.4
12
security ranked ffth.
Since then, retailSource: Progressive Grocer Market Research, 2015
ers of all kinds have
been rocked by data
breaches of varying
severity, from the
double hit at Supervalu last summer to the lingering efects of the Target breach that resulted in an
executive housecleaning.
In 2014, we saw more attention paid to cyberScore: 100=increase; 50=no change; 0=decrease
risks, namely because of Targets late-2013 attack, observes Tracy Kitten, executive editor of the Princeton,
Current
Rank
N.J.-based Information Security Media Group. Media attention, coupled with the congressional hearings
Wage Costs
90.9
1
that occurred throughout the year to review merchant
Benefit Costs
85.5
2
security, undoubtedly are to thank for bumping cybersecurity concerns to the top of the list among grocers.
Competition
84.8
3
While we actually saw a furry of breaches throughout
Technology Spending
82.8
4
2013 targeting merchants across the board, including
Retail Prices
78.2
5
grocers like Schnucks, none of these breaches got a ton
of public attention until Target.
Capital Expenditures
66.4
6
Kitten asserts that retailers cybersecurity is
Percent Net Profit
65.1
7
subpar. I think more attention has been paid to
Percent
Gross
Margin
60.0
8
PCI compliance in the last year and a half, she
tells PG, but we are still a long way out from havEnergy/Fuel Costs
56.3
9
ing EMV [chips] fully implemented at the POS,
Employee Turnover
54.4
10
and most grocers are not particularly innovative,
Source: Progressive Grocer Market Research, 2015
relative to other merchants, when it comes to payments security. I doubt grocers will adopt EMV at
a rate that exceeds other retailers.
Further, most merchants
across the board have not historically made big investments in
behavioral analytics to monitor
transaction activity, Kitten notes.
Grocers and all retailers have an
obligation to protect their customers cardholder data and personal information, Kitten says. If consumers do not feel that their information
is safe, they will stop shopping with
that merchant, so data security has
Last Year
Rank
28.8%
25.8
59.5
16.0
47.9
28.2
45.4
12.9
3.7
10
1.8
11
53.4
1.8
11
Rank
83.3
84.3
79.6
75.8
74.8
57.5
51.9
46.9
10
77.4
51.6
Continued on page 38
April 2015 | progressivegrocer.com |
35
2. Look to frame-breaking channels for inspiration. Retailers across channels have begun to look toward smaller, more
entrepreneurial channels to stay informed on the latest innovation, macro-trends and consumer preferences.
Within the pet industry, Petsmart and Petco continuously learn from mom-and-pop pet stores
and local/regional chains that are more in touch
with their pet owner communities, and more in
tune with requests and preferences.
3. Do more to understand your customers.
Shopper segmentations are a common way of
understanding the subsets of shoppers. However, this work becomes most actionable when
retailers can prioritize high-value segments and
understand the moment and message necessary
to trigger a purchase. This process drastically
improves efficiency and simplifies marketing,
ensuring its not just a game of trial and error.
4. Turn double-digit e-commerce growth
into triple digit. Despite slower adoption of
e-commerce for certain grocery categories, online purchase
remains an avenue for revenue growth for most retailers.
Success in this area comes from being consumer-led and
understanding how to connect the array of touchpoints, from
navigational behaviors and purchase drivers to delivery options (home delivery, curbside pickup).
5. Partner to most effectively use your data. Collaborative planning is invaluable, and there are often huge benefits
for retailers sharing granular purchase behavior data (at the
household level, beyond reports) with go-to partners that
have experience working with them. This kind of data has
been used to create new insights and actions that double the
rate of category growth in a market.
36
mcgladrey.com/retail
Sales
($ Millions)
Percent
of Total
$638,338
100.0%
37,716
100.0%
Supermarket-Conventional
26,487
70.2
414,794
65.0
4,150
11.0
159,824
25.0
Supermarket-Limited Assortment
3,242
8.6
16,106
2.5
Supermarket-Natural/Gourmet Foods
3,144
8.3
38,372
6.0
Warehouse Grocery
523
1.4
4,367
0.7
Military Commissary
170
0.5
4,876
0.8
152,120
n/a
$412,703
n/a
Gas Station/Kiosk
22,303
n/a
n/a
n/a
Superette
13,070
n/a
19,974
n/a
1,320
n/a
136,339
n/a
674
n/a
4,067
n/a
Conventional Club
Military Convenience Store
Percent
of Total
Sales
($ millions)
Percent
of Total
37,716
30,925
100.0%
$638,338
100.0%
82.0%
$602,708
94.4%
$2,000,000 to $4,000,000
2,980
7.9
9,265
1.5
$4,000,000 to $8,000,000
6,858
18.2
39,604
6.2
$8,000,000 to $12,000,000
3,442
9.1
35,998
5.6
$12,000,000 to $20,000,000
4,833
12.8
79,087
12.4
$20,000,000 to $30,000,000
6,118
16.2
151,379
23.7
$30,000,000 to $40,000,000
3,217
8.5
111,580
17.5
$40,000,000 to $50,000,000
2,077
5.5
92,048
14.4
$50,000,000+
1,400
3.7
83,747
13.1
6,791
18.0%
35,630
$2,000,000 to $4,000,000
2,222
5.9
6,756
$4,000,000 to $8,000,000
5.6%
1.1
4,015
10.6
21,751
3.4
$8,000,000 to $12,000,000
366
1.0
3,695
0.6
$12,000,000 to $20,000,000
148
0.4
2,252
0.4
$20,000,000 to $30,000,000
33
0.09
802
0.1
$30,000,000 to $40,000,000
0.01
105
0.0
$40,000,000 to $50,000,000
0.00
46
0.0
$50,000,000+
0.01
225
0.0
38
Supermarket Sales
by Store Format
Total supermarket sales topped
$638 billion in 2014, up from $620
billion a year ago. Tats an increase
of about 2.9 percent, the same as
PG reported last year, indicating a
fattening trend that follows the 3.1
percent growth in 2012.
Tat fatness bears out when
looking at store numbers by format.
No surprise that conventional supermarkets dominate the marketplace,
with 70 percent of all stores (down
1 percentage point from a year ago).
Supercenters increased their share
by just three-tenths of a percentage
point, while natural/gourmet format
stores account for more than 8 percent of stores, up about four-tenths
of a point, with that growth driven
in part by the rapid expansion of upand-coming chains such as Sprouts
and Fresh Tyme.
In share of sales, conventional supermarkets maintain a frm 65 percent
2013
2012
$16.92
$16.56
$16.26
33,300
33,250
33,100
10.5
10.2
9.9
$325,478
$318,462
$312,758
Number of Checkouts
Average Weekly Sales
Dollars per Store
Dollars per Square Feet
Dollars per Checkout
9.77
9.58
9.45
30,998
31,222
31,592
GREEN RETAILING
SUSTAINABILITY EVENT
FOCUS ON
40
Our All Natural Gelato and All Natural Ice Cream are made with a few simple ingredients:
fresh cream, pure sugar, rich cocoa, fresh fruit, and real vanilla. It may sound simple,
but at Turkey Hill, we know that real ingredients get real results.
N E W ! A L L NAT U R A L G E L ATO
A L L NAT U R A L I C E C R E A M
NEW
F L AVO R S
B u t t e r Pe c a n
Chocolate Chip
Chocolate Chocolate Chip
C h o c o l a t e Pe a n u t B u t t e r
H o m e m a d e Va n i l l a
Va n i l l a Fu d g e
P u re l y Va n i l l a
S e a S a l t e d C a ra m e l
64.5
62.7
Private Label
61.5
57.8
Prepared Foods
57.4
55.8
BOGOs
34.5
In-store Pharmacies
28.8
Free WiFI
22.2
22.1
iMportancE of stratEgiEs:
consuMEr MarkEting/advErtising
Digital Marketing
42.1
Newspaper Inserts
37.1
34.5
31.0
12.1
9.5
5.3
42
ing to PGs 2015 Annual Report of the Grocery Industry survey. While signature products and private
label are often considered one and the same in the
supermarket world, the latter, for purposes of this
study, refers to exclusive products housed primarily
in the fresh departments, such as gourmet desserts
from the in-store bakery, store-made entres from
the fresh meat department, specialty cheese products, bundled meal deals, everyday-value bouquets in
foral, and oven-ready regional seafood specialties.
Meanwhile, todays increasingly sophisticated
supermarket private label products are all about differentiation, quality and the overall value proposition, and only partially about price. Retailers have
invested countless internal resources and millions
of dollars annually into perfecting their vast and
diverse private brands across the entire store to
provide customers meaningful value while shining
a spotlight on items that can only be had here.
Consequently, private label prominence has forever
solidifed its place in the hearts of both retailers and
consumers alike, and will remain a critical and compelling component of building the in-store experience for years to come.
Conversely, as we glance back 30 years give or
take a few a retailers life was certainly far easier,
regardless of the channel. Food stores sold food,
drug stores sold medicines and sundries, and fastfeeders sold meals. Beginning in the late 1980s and
revving up in earnest by the mid-1990s, however,
retailers of all stripes began to realize that they
could successfully sell many products beyond the
Continued on page 46
Jay Leno
Entertainer
Martha Stewart
Founder,
Martha Stewart Living
Omnimedia
Walter Robb
Co-CEO,
Whole Foods Market
Phil Lempert
the Supermarket Guru
Harold Lloyd
Founder,
Harold Lloyd Presents
Youngme Moon
Author and Professor,
Harvard
Business School
Arianna Huffington
Co-founder &
Editor-in-Chief
The Huffington Post
Shaquille ONeal
NBA All-Star and Sports
Analyst for TNT and
NBATV
New Initiative!
Go to iddba.org/safefoodmatters
for more information.
608.310.5000 www.iddba.org
anchorpac.com
importancE of stratEgiEs:
consumEr EngagEmEnt
69.8
Social Media
49.1
47.4
24.1
Online Surveys
Comment Cards
21.6
19.8
Blogs
Toll-free Hotlines
12.9
71.2
65.8
52.7
27.9
18.0
Cooking Classes
18.0
60.4
34.5
Seafood Specialists
26.1
Service-based Kiosks
23.4
Informational Kiosks
20.0
Childrens/Student Programs
17.1
12.6
Certified Chefs
10.0
Cheesemongers
10.0
46
In-store Services
In the current food retailing war, supermarkets are clearly in the crosshairs of many
formidable contenders. For that reason,
grocers are pulling out all the tools in the
shed to help them shine in a sea of sameness,
with strategies to help impart an experience, rather than just another place to pick
up products that can be sold anywhere. To
that end, many grocery leaders are accelerating ongoing eforts to enhance relevancy,
diferentiation and tailor-made community
appeal with specialty services and resident
expertise that are available for the asking.
In addition to personalized, professional advice and guidance from pharmacists, in-store nutritionists, dietitians,
t Buy.louisi n se food.com
Benefits of MoBile
Devices/sMartphones
Total
Facebook
48.3%
e-Coupons
46.6
Digital Circulars
45.7
Interactive Websites
31.9
28.4
Personalized Discounts
27.6
27.6
24.1
23.3
Paper Circulars
22.4
19.8
18.1
15.5
Direct Mail
13.8
12.9
Shopping History
12.1
11.2
QR Codes
9.5
YouTube
6.0
5.2
5.2
Geo-fencing
3.4
Other
1.7
48
GraDe of coMpanys
strateGy for connectinG
with consuMers
Total
A: We have a fully integrated strategy
using in-store, online and digital
channels (omnichannel).
12.9%
32.8
37.1
12.9
F: Whats omnichannel?
4.3
Technology, Transparency
Top 2015 consumer Trends
By Kyle Shamorian
reTailers and
manufacTurers
have The
opporTuniTy
To Take full
advanTage
of shoppers
desire To
aggregaTe more
and more of
Their consumer
acTiviTy onTo a
single device.
Promotions Become
Social, Personal
Without question,
the smartphone will
be the end-all/beall source of deals,
personalized ofers and
customer engagement
going forward. Pushing a
grocery cart around with a paper
shopping list is becoming a thing of the past.
Along their path to purchase, modern aislebrowsers want convenience and value that makes
their lives better and easier.
Recognizing that social networks are the
ultimate hub for conversations and word-of-mouth
discoveries, 48 percent of retail execs responding to
this years Annual Report of the Grocery Industry survey rank Facebook as the leading outlet to
solidify connections with shoppers. According to a
recent study by Te Hartman Group, 54 percent of
online consumers use social media to discover new
foods and share food experiences.
For years, grocers have been reducing FSI
circulation, and many retailers have done so with
a scalpel rather than a hatchet testing which
markets will proftably respond to
transitioning some of their print circular distribution to digital. As more
grocers further enrich their wealth of
Next
customer data and as consumers
5 years
make digital an even bigger part of
28.4%
their lives the race to ofer the most
13.8
relevant promotions for each customer
will continue to intensify.
4.3
Bearing out that the days of coupon
17.2
clipping may be numbered, e-coupons
(46.6 percent) and digital circulars (45.7
11.2
percent) are rated as the second and
6.9
third top-rated benefts for an increas14.7
ingly mobile-using base of shoppers.
As grocers look to further increase
6.0
share of wallet, theyre also investing
4.3
more heavily in interactive websites
0.0
(32 percent) and price comparison
apps (28 percent), both of which
11.2
gained double-digit traction from last
1.7
year, as well as personalized discounts
2.6
(27.6 percent).
Other growing in-store tech1.7
nologies include indoor positioning
1.7
systems to push customized ofers in
real time. A handful of retailers are
0.0
already piloting beacon technologies
0.9
that enable them to blast promotions
0.9
to customers smartphones as they
stroll through the aisles.
27.4%
12.0
10.3
8.5
7.7
Geographic Expansion
7.7
6.8
6.8
6.0
4.3
3.4
2.6
2.6
1.7
0.9
0.0
0.0
Other
5.1
50
Continued on page 54
Advertor i Al
Q &A
Talking with
Kon Ostaficiuk
President
Camber Pharmaceuticals
GeneratinG sales
54
DrivinG traffic
Total
Meat
Private label
Produce
Beer/Wine/Liquor
Frozen Foods
General Merchandise
Dairy
Center Store
Deli/Prepared Foods
Fresh Bakery
Seafood
Organic
Health, Beauty & Wellness
Gourmet/Specialty
Floral
Ethnic
Pharmacy
Checklanes
rungs to ninth this year, buoyed perhaps by consumers increased interest in the perimeter.
When it comes to driving trafc, meat is again
the winner, at 41.7 percent, paced by produce (39.6
percent), deli/prepared foods (38.5 percent), and
dairy (37.5 percent), while the next-ranked category, beer/wine/liquor, most likely because theyre
not carried by all stores, lags somewhat behind, at
25 percent. Last years second-ranked trafc driver,
center store, plunges to seventh, while frozen
foods, 17th last year, surges to sixth place.
50.9%
47.2
47.2
39.6
39.6
38.7
36.8
34.0
28.3
28.3
27.4
25.5
24.5
20.8
18.9
17.0
16.0
11.3
coupon reDeMption
Total
Meat
Produce
Deli/Prepared Foods
Dairy
Beer/Wine/Liquor (if applicable)
Frozen Foods
Center Store
Fresh Bakery
Pharmacy
Private Label
Ethnic
Gourmet/Specialty
Organic
Floral
Seafood
Health, Beauty & Wellness
Checklanes
General Merchandise
Source: Progressive Grocer
Market Research, 2015
41.7%
39.6
38.5
37.5
25.0
24.0
21.9
21.9
18.8
18.8
15.6
15.6
15.6
12.5
12.5
11.5
10.4
7.3
Total
Center Store
Frozen Foods
General Merchandise
Health, Beauty & Wellness
Dairy
Checklanes
Deli/Prepared Foods
Gourmet/Specialty
Seafood
Ethnic
Beer/Wine/Liquor (if applicable)
Fresh Bakery
Meat
Private Label
Produce
Floral
Pharmacy
Organic
Source: Progressive Grocer
Market Research, 2015
50.2%
21.1
21.1
17.5
14.0
10.5
5.3
5.3
5.3
3.5
1.8
1.8
1.8
1.8
1.8
0.0
0.0
0.0
A CEREAL
COMPANY
THAT JUST
STANDS STILL?
WERE A
CEREAL
COMPANY
THATS
DEFINITELY
ON THE GO.
Many of our favorite cereal brands are now available in
n grab-n-go single
singlle serve cups
cups. Further
proof that MOM Brands not only has tasty, affordable and wholesome covered, but convenient too.
No doubt about it, we refuse to stand still. And thats got people sitting up and taking notice.
Nonfoods
The true
taste of
France...
Introducing
the authentic
French brioche
sliced loaf
Beautifully
soft and sweet
custoMer InteractIon
custoMer Buzz
Total
Total
Organic
Deli/Prepared Foods
Ethnic
Gourmet/Specialty
Meat
Floral
Fresh Bakery
Produce
Checklanes
Health, Beauty & Wellness
Seafood
Beer/Wine/Liquor (if applicable)
Private Label
General Merchandise
Center Store
Dairy
Pharmacy
Frozen Foods
source: Progressive Grocer
Market Research, 2015
31.3%
28.8
28.8
27.5
18.8
17.5
17.5
16.3
13.8
12.5
12.5
10.0
10.0
6.3
5.0
5.0
5.0
1.3
Checklanes
Deli/Prepared Foods
Floral
Meat
Pharmacy
Fresh Bakery
Produce
Seafood
Organic
Ethnic
Health, Beauty & Wellness
Beer/Wine/Liquor (if applicable)
Center Store
Gourmet/Specialty
Dairy
Private Label
General Merchandise
Frozen Foods
source: Progressive Grocer
Market Research, 2015
54.4%
32.4
26.5
19.1
19.1
17.6
16.2
16.2
13.2
11.8
10.3
8.8
8.8
7.4
2.9
2.9
1.5
0.0
Most InfluentIal
DepartMents In DrIvIng
stores overall
BranD/IMage/poInt
of DIfferentIatIon
58
1.800.458.5826
sales@stickyngersbakeries.com
www.stickyngersbakeries.com
60
Category Management
Center Store
Delivering
Solutions
Reaching across aisles to satisfy shopper need states
is the way to boost center store.
By Jim Dudlicek
62
Caddy holds
24 1.45 oz bags
The Original Gourmet Candy Corn from Jelly Belly is the latest
addition to our incredibly popular variety of count goods bags. Our new
packaging features eye popping 3D graphics. And, our mouthwatering
Candy Corn delivers an unsurpassed ultra-creamy texture and intense
vanilla flavor enjoyed for over 100 years. Line priced and available year
round, our expanding line of snack-sized gourmet confections are the
perfect way to drive impulse sales.
Kosh r C rtifi d
& Lucasfilm Ltd.
Disney, Disney/Pixar
Category Management
Skate to where
the customer
is going and
you will be
rewarded.
Center store
may not have
the same
glamour that
fresh has, but
there are great
opportunities
when properly
mined.
Richard Meyerkopf,
Hannaford
Center Store
on connections across aisles, said Frey, also speaking at the Meat Conference. Tat means thinking
diferently on how to merchandise the store, Frey
said. If youre not willing to think diferently and
get creative, youre vulnerable.
Tat vulnerability can be overcome by marketing
solutions, rather than isolated ingredients, to address
need states in demand by consumers. Meals that
deliver on convenience, great taste, ease of preparation and solid nutritional profles allow busy shoppers
to put dinner on the family table with as much ease
as going through the fast-food drive-through, but
without the guilt.
Moving center store out of the shadows and
demonstrating how its an essential partner to fresh
and other categories will boost excitement and
basket rings for key consumer age groups, and help
elevate the category from the chore status it holds
as part of the shopper experience.
Understanding Shoppers
Making center store more
shopper-friendly is a common
goal of retailers and CPG
companies.
Te linear aisle structure
of center store was originally
designed to optimize operational efciencies. For the
most part, this structure is
uninspiring, hard to navigate
and hard to shop, declares Ja-
64
Powered by experience.
Xtreme3
TM
MC
Category Management
66
Center Store
Crossing Categories
Michael Ganey, VP of marketing at Four Oaks,
N.C.-based baking mix maker House-Autry Mills,
suggests promoting go-with items across categories for example, bacon and eggs, cooking oils
with fried foods, and fruit with cereals.
A compelling in-store signage program is
needed to connect center store with the fresh perimeter via healthy eating messages, Ganey says, and
direct suggestions to add fruits and veggies to all
meals using easy-to-prepare center store items.
House-Autry Mills is developing load-to-card and
IRC cross-couponing programs to tie its products to
related purchase items. It is important to provide the
consumer a look at a complete meal, and cross-promotions can accomplish that, Ganey asserts.
By Daniel Lohman
Consumers are continually looking for solutions to improve their health and vitality. You cant turn on the TV, listen to the
radio or read anything today without seeing a story
focused on improving health. Some of the stories discuss things
we should avoid, while the majority are about healthier trends, for
example, lowering sodium and sugar consumption.
Natural and organic solutions are fueling these conversations and are at the heart of the trends of growing sales of
natural/better-for-you products. Core natural consumers carefully read labels and are better educated about nutrition than
most shoppers. Theyre happy to pay a premium for products
that deliver exceptional value and fully meet their needs.
The natural channel is growing at more than twice the pace
of conventional. Natural product innovation comes from disruptive brands laser-focused on providing solutions that meet
and exceed consumers needs and wants. Natural products are
responsible for developing entirely new categories like glutenfree, vegan, clean label and organic. These shopper need states
fuel natural product innovation.
How does this strategy work and why does it matter?
Integrating natural and organic products side by side with
other items invites consumers to try new and different
things, products that meet specific needs. For example,
shoppers might consider a gluten-free pasta alternative like
quinoa, rice or chickpea noodles instead of processed pasta
made with wheat flour. This strategy matters because it
capitalizes on better-for-you trends that bring incremental
sales growth to the pasta category. The other benefit is that
the retailer now has a richer selection that caters to consumers with specific needs like food allergies, or those who
want clean-label products.
Quality natural and organic products can be found in almost
every category. They support every meal occasion (breakfast,
lunch, dinner and snacks). One key aspect of natural and organic
products thats frequently overlooked is their true value. While
theyre typically higher-priced, they provide better nutrition and
are often more satisfying, so consumers tend to eat less of them.
For example, a sandwich made of cheap white bread may sustain you for a couple of hours, while the same sandwich filling on
high-quality gluten-free bread will fill you up for a longer period
because it better meets your bodys nutritional needs. In addition,
the gluten-free product provides better overall nourishment to
those with gluten sensitivity. In this example, the better-quality
bread may prove to be less expensive in the long run.
Retailers looking to compete more effectively in any channel and in any economy need to remain dedicated to meeting
their shoppers needs. There are a lot of untapped opportunities to grow center store sales and make shopping there an
adventure. Natural products provide an excellent way to drive
shopper foot traffic and grow sustainable sales at retail.
Daniel Lohman is a strategic adviser in the CPG and organic industry.
His company, Category Management Solutions (CMS4CPG), based in
Littleton, Colo., assists companies in expanding their retail distribution
and improving their merchandising. Lohman can be reached at
dan@cms4cpg.com or 303-748-3273.
67
Category Management
We believe
retailers must
constantly
redefine
theircategories
in the same
ways shoppers
define
categories.
Michael Ganey,
House-Autry Mills
Center Store
AdvertOrIAL
Talking with
Jim Rogers
Vice President of Sales and Marketing,
Creekstone Farms
Progressive Grocer: After 20 years of success in the
Premium Black Angus Beef business, why was now the
right time to expand to pork?
Jim Rogers: We felt we could ofer customers a healthier and
higher-quality alternative to what is currently available. Our new
Premium All-Natural Duroc Pork line is from premium Duroc
genetics and contains absolutely no antibiotics, added hormones or
artifcial ingredients. Plus, you wont fnd any added water or solutions its all-natural. You can really taste the diference. Each bite
is juicer and more tender than the next.
PG: What is Creekstone Farms doing to promote sustainability in
local communities?
JR: Our all-natural Duroc pork is processed at one facility owned
by some of the same family farmers that raise our hogs. Our
ultimate goal is to make sustainability a way of life rather than
just a word. Weve even taken steps to ensure that our animals are
68
treated with the utmost dignity and respect. Tey live in a cratefree environment and are 100% vegetarian-fed. All of this leads
to Creekstone Farms delivering high-quality taste while leaving
behind the lowest environmental footprint possible.
PG: Your new case-ready program has been highly
anticipated by grocers. Tell us why.
JR: Trust me, were just as excited as they are! Our case-ready
program applies to Premium Black Angus Beef steaks and roasts,
as well as all-natural further processed pork items like franks,
sausages and bacon. It provides extra fexibility for grocers that
stock our products. Two of the major benefts are an extended shelf
life 28 days from production and smaller pack sizes, about 6 to
12 pieces per case. Te longer shelf life means less markdowns and
throwaways, which supports our overarching goal of sustainability. Were creating less waste in the community while increasing
profts for our partners. Our customers will see immediate benefts
by encountering fewer out-of-stock situations.
Grocery
Condiments
Hot Stuff
Sauces with a spicy kick
enliven supermarket displays
and customers palates.
By Bridget Goldschmidt
70
Grocery
72
Condiments
Baked Goods
A Slice
of the Action
Savvy promotions and a keen eye on consumer needs position frozen cakes
and pies as an attractive alternative to home baking.
By Bridget Goldschmidt
74
NEW!
Its a
convenience
for consumers
to know that
they have
quality options
that just need
to be baked or
thawed.
Sean Maurer,
Ahold USA
Baked Goods
76
Keeping it Real
For Chicago-based Elis Cheesecake Co., whose
products can be merchandised either refrigerated
or frozen, authenticity is of particular signifcance,
since the consumer is more educated about food
and has expectations of how the product should
look and taste, according to VP of Marketing Debbie Marchok. Elis commitment goes much deeper
than just sourcing the best ingredients, however.
For example, in the case of the companys Honey
Mediterranean Cheesecake, a honey-sweetened
item topped with honey-glazed pistachios and
almonds that was introduced last year, when honey
as a natural sweetener started to gain real traction
among consumers, the honey is harvested by
student beekeepers from the Chicago High School
for Agricultural sciences (CHSAS), one of the only
agricultural high schools in the country, notes
Marchok. Proceeds from honey sales go toward
college scholarships for deserving high school seniors. Tis product is made with an authentic ingredient, honey; made locally by a school, CHSAS;
[and] supported by a business, Elis Cheesecake Co.,
which not only purchases honey from the school,
but [also] supports the school with job shadowing,
mentor programs, scholarships and internships.
Additionally, the company is a member of Brooklyn, N.Y.-based Slow Food USA, which Marchok
describes as an organization devoted to preserving
traditional foodways and educating people about
food as a center of community. Elis prefers using
regional ingredients from local farms and producers
who share Elis commitment to quality.
As its Honey Mediterranean Cheesecake illustrates, Elis isnt afraid of product innovation. Among
its latest products are a new favor in its GMO-free,
1.5-ounce mini pie line, Dulce de Leche, described
by Marchok as a caramelized, sweetened condensedmilk confection baked in an all-butter shortbread pie
crust; a 7-inch mousse-topped Tres Leches Cake;
and, most novel of all, a Vegan Cheesecake.
Of this last item, Marchok admits: We know
its an oxymoron, but Elis Cheesecake has created
a vegan dessert so rich and creamy, we couldnt
resist calling it cheesecake, drawing a parallel to
the Chicago-style cheesecake for which Elis is
known. Certifed vegan by the Vegan Awareness
Foundation, Elis Vegan Cheesecake contains no
animal products or byproducts, has not been tested
on animals, and is dairy-, egg- and cholesterol-free.
Tofu and vegan dairy-free cream cheese replace
cream cheese and sour cream, making Elis Vegan
Cheesecake zero cholesterol and lower in fat than
traditional cheesecake. Introduced last May in
Its an
oxymoron,
but Elis
Cheesecake
has created a
vegan dessert
so rich and
creamy, we
couldnt resist
calling it
cheesecake.
Debbie Marchok,
Elis Cheesecake Co.
77
Q &A
Advertor i Al
Talking with
Bill Monroe
Director of Marketing
Pompeian
1
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Facing Deli
Consequences
Training is key to reducing prepared food product
issues, out-of-stocks. By Joan Driggs
80
Costly Results
Cleanliness is table stakes, with consumers barely
registering sanitation as a problem. Retailers
indicate they have the processes in place to ensure
that its not an issue. Clean cases, no streaks, says
Tony Orlando, owner of Tony Os Supermarket &
Catering, in North Kingsville, Ohio. It has to be
fresh-looking. No dirty spoons, no dishes in the
sink. We have an open kitchen, so people see us.
We have to keep it clean.
Tony Os deli associates continually scrutinize
the area with a consumers eye for visual appeal and
cleanliness, he says. Tis is proof that investing in
procedures and training pays of.
But there are other issues in need of addressing,
including long wait times, product preparation and
availability, and product quality. General deli and
product issues have a tremendous impact on purchase
behavior, with approximately two-thirds of shoppers
who didnt make a purchase indicating that general
deli issues and product issues were the reasons.
65.9%
68.3%
26.7%
General
deli issues
product
issues
staffinG
issues
81
Boosting Staff
Performance
% of shoppers reporting
42.9%
46.7%
Product
issues
22.2%
Staffing
issues
General
deli issues
Among shoppers reporting problems, the most common staffing issues were:
Staff was
not friendly
Staff was
not helpful
Staff was
rude
12%
11%
9%
8%
Advertorial
4.1
3.1
Staffing
problems
Product
problems
2.9
General deli
problems
Staffing
problems
22%
9%
7%
4%
7%
3%
3%
Product
problems
General deli
problems
Permanently
Turn to Tyson
Tyson Deli can support you with products,
insights and tools to help grow your deli business.
Contact Eric LeBlanc at (800) 248-9766 for more information.
Advertorial
Any
Problems
77
48
36
43
77
51
40
47
81
57
45
51
Source: Tyson Consequences of Failure research, 2015, based on top three satisfied and likely responses,
3,018 consumer respondents.
84
Facing Failure
Seen in the harsh light of
reality, not only do shoppers believe their deli
NEW! One-of-a-Kind
D
U
T
S
E
V
LI
T
S
A
C
D
A
O
R
B
O
I
Presented by
FREE!
86
Product Issues
Product was too dry
Product didnt appear fresh
Product was overcooked
Breading wasnt crispy
Product taste was poor
Product quality was poor
17.6%
12.6
12.4
10.5
7.5
7.4
REACH SHOPPERS
MORE TRIPS
PER BUYER
MINI MEALS / SNACKS
120
MEAL MAKERS
126
PACKAGED FRESH
120
VEGETABLE NUTRITION
105
WELLNESS
118
100
LARGER MARKET
BASKET
MINI MEALS / SNACKS
127
MEAL MAKERS
133
PACKAGED FRESH
124
VEGETABLE NUTRITION
108
WELLNESS
118
100
Source: IRI US PANEL, 52 Weeks Ending 10/5/2014
SM
Fresh Food
To
Protect
and
Serve
88
LET US BE...
info@sandridge.com | 1.800.672.2523
Partnering on Innovation
Retailers like Price Chopper are constantly reviewing their foodservice packaging for functionality as well as visual appeal.
Big opportunities lie in maintaining product freshness and shelf life without looking too
manufactured, Shaye says. Since we both prepare
on-site and selectively use manufacturers for our
menus, we try and get our food to the guests as soon
as it has been made, and we want it to perform well
for its shelf life, whether it is being consumed on
the spot or three days later. Convenience in cooking
or reheating is also very important, so microwaving or easy oven-prep bags or containers are being
reviewed and considered as good options.
Companies like Sealed Air aim to help grocers
deliver. Consumers have told grocery retailers they
wanted the variety and fexibility to bring home more
than one prepared meal to satisfy their family mem-
People want
to see clearly
what they are
getting and
know that it is
not cluttering
up the waste
stream,
whenever
possible.
Lewis Shaye,
Price Chopper
Fresh Food
Consumers
have told
grocery
retailers they
wanted the
variety and
flexibility to
bring home
more than
one prepared
meal to satisfy
their family
members
varied tastes.
Sean Brady,
Sealed Air Corp.
www.multiculturalretail360.com
For information about sponsoring this event, contact
Michael Hatherill at 201-855-7610 or mhatherill@stagnitomail.com.
90
Packages that
allow the food
to look fresh
and appealing
on display or
made to order,
with features
that include
leak resistance
and reusability,
will help to
differentiate
the retailer
from other
segments.
Marilyn Stapleton,
Anchor Packaging
91
Fresh Food
Produce
Fresh Convenience
Clearly, there has been a trend in recent years toward portability, ready to eat, ready to go and single
serve, and I think that portability trend will continue this year both in snack format and something
you can eat in your car, Whitaker predicts.
Fresh produce packaged for just such on-thego convenience is the idea behind Chelan Fresh
Marketings two newest products: Te Rockit
and Cup O Cherries. Next month, the Chelan,
Wash.-based company will re-release the Rockit,
an innovative, high-graphic sleeve similar to
tennis ball packaging, which contains four or fve
smaller New Zealand apples.
Its a great way to take whole fresh fruit
on the go, says Chelan Director of Marketing
Mac Riggan, who adds that the Rockit is so
revolutionary, it may be a little ahead of its time.
Its like bottled water. Initially, people thought,
Why would you need that?
But as consumers continue to demand
healthier options for on-the-go eating, Riggan
is certain the convenience of the Rockit will
92
Supreme Green
Te other trend we see, and I suspect it will grow
this year, is more and more sustainable packaging both in terms of materials used and how
they are applied, including the use of compostables,
biodegradable fber and an overall efort to decrease
packaging, notes Whitaker.
Even seemingly small reductions, such as cutting
back on the lip of a bag that runs over the seal, can
have major impact. Tats miles of packaging over the
course of a year, says Whitaker, who adds that the industry can expect to see better use of packaging, more
consistently.
Te newest
packaging from
Wada Farms, in Idaho
Falls, Idaho, is designed to
help retailers meet their sustainability objectives and win the
attention of consumers in the produce
aisle. Tats because Wada Farms Tater Made
eco-friendly bags are made in part from potatoes
as much as 25 percent.
Packaging is one of my passions, afrms Chris
Wada. It gives us the ability, through packaging style,
artwork, messaging, etc., to bring consumers something they are going to touch, read and understand.
Te bags represent a substantial carbon-footprint reduction, explains Wada. Te most common response from consumers to the bags has been,
Tats cool. And thats what we want. You can talk
about sustainability, but until its something you can
touch, pick up and look at, the concept is less clear.
Smaller packs
that result
from more
frequent
[store] visits is
the No. 1 trend
right now.
Hillary Femal, IFCO
Fresh Food
You can
talk about
sustainability,
but until its
something
you can touch,
pick up and
look at, the
concept is less
clear.
Chris Wada,
Wada Farms
Produce
Packaging Connectivity
Increasingly, produce suppliers are using packaging
as a way to communicate with consumers. Whether
through recipes, nutritional information, or QR codes
to connect the consumer with the brand and the farm,
packaging is bringing consumers and the produce
industry together like never before.
94
Safe Bets
Delivering fresh, delicious and, above all, safe foods
to consumers is a priority for everyone in the produce business. Packaged branded and local produce
thats traceable back to the farm may prove to play
an increasingly important role in building consumer
confdence in food safety.
Freshness, safety and convenience are the three
factors we keep hearing as most
important with produce packaging,
afrms Keri Olson, marketing director for Robbie, a fexible packaging
solutions provider in Lenexa, Kan.
Young consumers think brandname and organic fruit and vegetable products are safer than their
unbranded and nonorganic counterparts, she continues. Flexible
packaging ofers an easy way for this
to happen by printing valuable information right on the package.
Olson points to research that
shows consumers prefer locally grown
produce whenever possible, often
citing food safety as a factor in their
preference.
Robbies new Locally Grown produce pouch was designed with this in
mind. Te pouch has the words locally
grown printed in large letters right
on the handle of the pouch to quickly
connect with the consumer that their
produce is locally grown, she explains.
95
Fresh Food
Produce
96
THERES A REASON
FARMTOFAMILY APPROACH TO
AMERICAS FASTEST
TABLE HAPPY.
W H O L E S U M H A RV E S T F O R W H O L E S O M E FA M I L I E S V I S I T W H O L E S U M H A RV E S T.C O M
Fresh Food
Masters of
Melons
S
Consumers are
looking for a
more flavorful
cantaloupe.
Barry Zwillinger,
Legend Produce
98
I think Im in love...
Fresh Food
Cantaloupe is a
fairly efficient
crop when
it comes to
water.
John Gilstrap,
California
Cantaloupe
Advisory Board
ADVER TORI AL
100
VISIT US
AT BOOTH
# 1301
People didnt just stop buying Colorado cantaloupes, they stopped buying all cantaloupes, recalls John Gilstrap, of the California Cantaloupe
Advisory Board, in Dinuba, Calif. Obviously,
things like this can impact a whole industry.
Gilstrap adds that although California has
thankfully never had a food safety issue with cantaloupe, theres no such thing as being too cautious
when it comes to food safety.
California mandates government
inspections of all growers of a certain
size any large enough to supply
supermarkets. Its comprehensive,
notes Gilstrap of the auditing program, now in its third season. Field
audits began in 2012, and 2013 was
the frst year handlers were certifed.
While certifed growers are
permitted to use a certifed mark on
letterhead, bills of lading, and cartons, the industry has yet to develop a
certifed sticker for use on individual cantaloupes.
Te board has applied for a grant
to study whether such an identifying label would make a diference to
consumers. In October, the board
will learn whether its grant has been
approved, and, if its greenlighted, this
is the question it will explore through
a formal survey.
In the meantime, Gilstrap says that
cantaloupe sales have recovered from
the 2011 incident. Any current dip in
sales has to do with somewhat lighter
crops due to Californias water shortage, he explains.
We had some reduction in
volume last year, but not as much as
we thought, notes Gilstrap, adding,
Cantaloupe is a fairly efcient crop
when it comes to water. Dry growing
regions are really great for it, [although] it sounds counterintuitive.
Fresh Food
Watermelon Mania
While a well-planned and -executed merchandising strategy can
increase sales across all categories in
the produce department, Juliemar
Rosado, director of retail operations
and international marketing for the
National Watermelon Promotion
Board (NWPB), in Winter Springs,
Fla., believes its particularly critical
with watermelons.
Good merchandising is important because it confrms the value,
Call 1-800-4-Robbie
or visit RobbieFlexibles.com.
Made in the USA
Fresh Food
Hydration has
been a growing
area of focus
for us over
the past year.
You cant spell
watermelon
without the
word water.
Juliemar Rosado,
National Watermelon
Promotion Board
Enticingly Exotic
Te Eat One Fruit a Day Tat Scares You campaign, launched by the specialty produce experts
at Friedas Inc., in Los Alamitos, Calif., recently
gained national attention through a health blog for
U.S. News & World Report written by registered
american Grown
The California Avocado label
is a symbol of quality and a promise
of the most preferred avocado in
the U.S.A.
Call 1-800-344-4333 or visit CaliforniaAvocado.com/A-Look-Behind-The-Label to learn more.
Produce of U.S.A.
2015 California Avocado Commission. All rights reserved.
Nonfoods
Category
Guest
Perspectives
By Sarah Bird
106
ereal remains a favorite on Americas breakfast tables. But for retailers, although cereal
is the No. 2 dry grocery category, its been
hard to fnd ways to increase category profitability and build customer loyalty in the
ADVERTORIAL
Economic pressures:
recession afershocks
aftershocks.
spent on necessities.2
34%
LOW-incOmE
cOnSumErS
Source: Census.gov
ADVERTORIAL
Eggs
54%
Cereal
48%
Breads/
toast
34%
Bacon
27%
Fruits/
berries
20%
60%
Cold cereals
54%
54%
49%
Fruits
43%
43%
Hot cereals
38%
Yogurt
26%
26%
Breakfast bars
ADVERTORIAL
U.S. population.
The growTh of
The hispanic
populaTion
remains a
dominanT
demographic
Trend. These
households
purchase cereal
aT a raTe of
23.1 pounds
per year vs.
22.7 pounds
among The
general
populaTion.
82%
80%
42%
Product
quality
Taste
Brand name
adverTorial
looking for.
80%
category is constantly
evolving as consumer
needs and wants change.
For example, the health
ADVERTORIAL
ADVERTORIAL
Sources
1
Americanprogress.org, Sept. 16, 2014, https://www.americanprogress.org/issues/economy/news/2014/09/16/97203/
what-the-new-census-data-show-about-the-continuingstruggles-of-the-middle-class/
2
Census.gov
3
Carbonview Research survey,
September 2014
4
NPD, U.S. Census Bureau
5
NPD, U.S. Census Bureau
6
NPD, U.S. Census Bureau
7
Pew Research, http://www.pewresearch.org/
fact-tank/2014/02/26/the-u-s-hispanic-population-has-increased-sixfold-since-1970/
8
IFIC, 2014 Food and Health Survey, http://www.foodinsight.
org/press-releases/more-americans-choosing-foodsbeverages-based-healthfulness
9
Custom Panel, GROCERY, 52 weeks ending April 6, 2013;
Path To Purchase study October 2013
10
NMIs 2013 Health & Wellness Trends Database
11
IFIC, 2014 Food and Health Survey, http://www.foodinsight.
org/press-releases/more-americans-choosing-foodsbeverages-based-healthfulness
ThE hEALTh
TREnD hAs
cREATED ThE
OppORTunITy
fOR mAny
nEw cEREAL
OpTIOns ThAT
hELp pEOpLE
LEAD hEALThIER
LIfEsTyLEs.
Put MOM Brands to work for you. For more information, visit www.MOMBrands.com.
ADVERTORIAL
Fresh Food
Lessons in
Meat Marketing
Annual conference looks at branding, natural products, foodservice
and how to enhance the shopper experience.
By Jim Dudlicek
If youre not
willing to think
differently
and get
creative, youre
vulnerable.
Sherry Frey, Nielsen
Perishables Group
115
Fresh Food
CRaFteD with
CaRe
Kent harrison
displays tyson
Foods Crafted
Creations line.
116
to retail grocery.
Retailers must boldly deliver experiences
that cant be duplicated online.
Experiences must refect demographic
35 percent ethnic.
Grocers should experiment with new ways to
reach shoppers, such as food trucks, curbside
pickup, home meal delivery and vending.
Were really seeing profound changes happen-
prime opportunities.
As fresh expands to other channels, grocers are
under pressure to more clearly defne and own it.
Brand loyalty will depend on relevance and
customization: Be on-trend and relevant, he
said, and adapt to your consumer.
Shoppers are open to switching among proteins, cuts and brands: Many sought protein
purchase value-added items sometimes or regularly, but for most, cost (21 percent) or preferring to prepare items themselves (46 percent)
are the greatest barriers to purchase. Despite all
of the value-added solutions provided by food
retailing, foodservice continues to win
the last-minute dinner decision.
sMarT ideas
Chef Chris Mayer
gets creative
with Perdue
Chickens simply
smart line.
117
Fresh Food
118
Nonfoods
Advances
in Care
120
With many
of these new
medication
classes,
prescribers
may be able to
individualize
treatment
plans based on
the patients
needs and
symptomology.
Will Bevins,
K-VA-T Food Stores
121
ADVE RTORIAL
Kyle Stenzel
Vice President Sales, Beiersdorf, Inc.
www.EucerinUS.com
122
This product is intended to moisturize dry skin and not cure, treat,
or mitigate symptoms of diabetes.
PROUD SPONSOR
of the
AMERICAN DIABETES
ASSOCIATION
Intended to moisturize dry skin and not cure, treat, or mitigate symptoms of diabetes.
Nonfoods
Staff Training
With 93 Food City locations and 78 pharmacies in
Food City stores, K-VA-T has invested in training
programs for pharmacists to become diabetic coaches
124
The FDA recently issued final guidelines on its oversight of mobile health apps, indicating that generally
it would take a hands-off approach to regulating apps
that pose no threat to users if they fail.
Accordingly, expect more wearables that measure
important biometrics, such as a smart lens, currently
being developed by Google and Alcon, that can measure
glucose in tears, and the potential of the Apple Watch
to be used as a blood glucose monitor.
In a similar vein, product developers are using advanced technology to design tools that make it more
convenient and easier for diabetics to track their health.
The KiCoPen device (pictured at left), developed
by U.K.-based Cambridge Consultants, was designed
to capture when the exact dose of insulin is delivered and send the information to a smartphone app
for accurate tracking. The pen has no battery and is
powered through energy harvesting.
For retailers, such technology means understanding
how their consumers will use it and having more health
data to help patients and customers stay healthy.
Retailers will use the information to connect back
through their omnichannel experience, Wendland explains, to personalize communication with the patient
that says, Mrs. Jones, today Ive got green peppers on
sale, and they are great for someone living with diabetes.
Medication
adherence
and cost of
medications
are two of
the biggest
challenges
with tackling
diabetes moving
forward.
Maria Brous,
Publix Super Markets
DISCOVER PRODUCTS
FOR EVERY CATEGORY
REGISTRATION
IS FREE TO
QUALIFIED BUYERS
The 2015 Fresno Food Expo is your opportunity to connect with the
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Contact Amy Fuentes at 559-621-8362 or
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125
Nonfoods
Storm Cells
In times of emergency, consumers look
to grocery retailers for batteries and flashlights.
By Barbara Sax
126
Selling Preparedness
According to Rule, Rayovacs internal forecasting
team communicates weather reports to account
managers, who then help retailers get needed supplies on the selling foor before a storm hits. We
had a 200 percent lift in sales during Hurricane
Sandy, she says. Its important for retailers to
have the product in the store not only from a sales
perspective, but as a public service.
Tis past winter was a rough one in
New England. At Springfeld, Mass.based Big Y Foods Inc., batteries are
merchandised regularly on foor stands
throughout the year, but when it comes
to storm prep merchandising, the chain
uses tables to maximize display.
We place them in high-trafc
locations near the front door or at the
checkout, says Scott Brackney, Big Ys
general merchandise sales manager.
Te stores get creative, merchandising
candles, can openers and other stormrelated SKUs all together. Its a onestop shop that flls a customers need.
Brackney continues: It really
comes down to opportunity merchandising, having the right product in
store, in the right place, at the right
time. Its something our customers
have really come to expect and appreciate from Big Y. In this situation,
its so much more than just selling
product. Tese items now become a
necessity, a public service.
Weather emergencies are a yearround threat in the Texas markets
in which Brookshire Grocery Co.
operates. Customers in our market
areas have to be prepared to deal with
extremes in weather, from thunderstorms and fash foods to tornadoes
and hurricanes, during the spring,
summer and fall, along with snow
and ice in the winter, points out
Steve Delello, category manager of
general merchandise/seasonal categories at the Tyler, Texas-based chain.
To help customers prepare for
inclement weather, the Brookshires
seasonal display plans always include
batteries and fashlights. We maintain a preloaded battery clip-strip
inventory in our warehouse that is
ready to ship at a moments notice,
says Delello. Te chain also developed lane closure displays on wheels
to bolster stores in-stock position
and capture last-minute buys at the
www.grimmway.com
127
Nonfoods
It really comes
down to
opportunity
merchandising,
having the
right product
in store, in the
right place, at
the right time.
Its so much
more than just
selling product.
These items
now become
a necessity, a
public service.
Scott Brackney,
Big Y Foods
128
to the storm. We also are prepared from a supply chain perspective to ship product to our retail
partners ahead of signifcant storms or immediately following to help replenish their inventory as
quickly as possible.
Rayovac helps retailers prepare for storm seasons
with fexible and easy-to-assemble displays for its
Rayovac branded batteries. Te correct product
mix and secondary locations are key to the success of a retailers emergency operations center,
says Rule. AA, C, D and 6-volt batteries and
value-priced fashlights have the highest lift during
storms, so its important that retailers get enough
product on the foor to meet consumer needs.
While the basic battery and fashlight products
are a crucial part of the mix, manufacturers have
introduced new products that are good additions to
an emergency operations center. Long-lasting batteries are becoming a bigger part of the category, for
instance. With our Duracell with Duralock technology, our batteries last up to 10 years in storage, so
there is no downside on purchase if the storm doesnt
hit, says Sakdinan. While all battery sizes are important, we see a signifcant increase in demand for
C and D batteries during storms, as those are used in
many fashlights and lanterns.
For its part, St. Louis-based
Energizer recently launched Fusion,
a value-priced high-drain battery
positioned against Energizer Max
and Duracell with Duralock.
Portable power packs
that can recharge with
AA bat-
Technology
If grocery
e-commerce
offers so
many benefits
to grocers,
whats
preventing
some from
embracing it
and gearing
up for a
growing
part of the
business?
Getting
Started
Now
129
Technology
Since
shoppers are
apt to share
products,
recipes and
experiences
socially,
online grocery
shopping can
also play a
unique role in
helping the
retailer build
its brand both
in brick-andmortar as well
as in digital
forums.
Graeme McVie,
Precima
130
ecrs.com
8 0 0 . 2 11. 117 2
Technology
CoMinG ThreAT
AmazonFresh
presents a
challenge to
brick-and-mortar
grocers.
With same-day
delivery, the
question is
how to deliver
to many
people within
the narrow
windows they
are going to
require, and
still be on time
and efficient.
Victor Allis,
Quintiq
132
Same-day Challenges
According to a recent LoyaltyOne survey, 21 percent
of consumers say an additional fee is worth the convenience of same-day delivery for their online purchases.
Also, 27 percent say an additional fee is worth the
convenience of having the grocery products they need
ready for pickup upon their arrival at the store.
Same-day delivery is obviously an attractive
option. But its challenging, explains Victor Allis,
CEO and co-founder of Quintiq, a Netherlandsbased software company servicing the logistics
needs of such customers as Walmart and DHL. To
illustrate the difculty, he urges retailers not to become like a pizza delivery service, in which a courier
goes out, delivers to the house and comes back.
Tats very inefcient, because you can only make
one delivery by only one person, says Allis. With
same-day delivery, the question is how to deliver to
many people within the narrow windows they are
going to require, and still be on time and efcient.
On the other hand, the click-and-collect option
shoppers order groceries online and then pick
them up at the store solves logistical issues and
the delivery expense. Tere are other advantages to
this service that many experts say is the way to go.
WD Partners Peterson points out that getting
the shopper to enter the store prompts them to purchase fresh food, especially produce. Grocers need
to protect this business from niche online players
such as Relay Foods, Door-to-Door Organics and
others that are delivering produce to homes.
Te real beneft of in-store pickup is the opportunity for additional unplanned, high-margin
impulse purchases [in the store], says Professor
Emeritus Richard George, of the Haub School of
Business at St. Josephs University (SJU) in Phila-
Millennial Movement
Te industry consensus is that online grocery
shopping will continue to grow because younger
consumers will accept this option more. Also, the
group starting families that will account for big
grocery bills will be Millennials, a demographic 80
million strong that checks smartphones on average
43 times per day, says Gladsons Sentell.
My recent national research on Millennials
those 18-34 years old underscores the sense of
urgency for traditional brick-and-mortar retailers to
enter the online space, says SJUs George, noting that:
Only 56 percent of Millennials have shopped for
groceries in the past 30 days in a regular or fullservice supermarket.
24 percent of Millennials have shopped for
online groceries in the past 30 days.
Millennials shop 4.5 times per month
online, versus 3.9 times per month at a regular
or full-service supermarket.
Guest
Perspectives
By Graeme McVie
134
Guest
Perspectives
Marketing: Incremental sales from shopper marketing campaigns are usually less than 1 percent, but
with a personalized approach based on shopper data,
this improves to nearly 4 percent in incremental sales.
Retail and CPG marketers can tailor customer marketing communications along multiple dimensions to
consistently improve efectiveness in future campaigns.
With these insights, grocers can gradually shift the
marketing budget from mass, untargeted activities
to personalized cross-channel marketing that drives
enhanced response rates, meaningful incremental sales
and highly positive marketing ROI.
Manufacturer Collaboration: Manufacturer trading
BASES
DUNNAGE RACKS
PALLET GUARDS
800-837-2881
www.masonways.com
partners allocate a signifcant percentage of their revenues to the marketing mix. Manufacturers, retailers
and shoppers would all beneft signifcantly if these
marketing dollars could be deployed in the most effective way to deliver enhanced customer-driven media ads, consumer promotions and trade promotions.
Retailers that share customer insights with manufacturer trading partners maximize their chances of
aligning manufacturer marketing investments with
the needs of the specifc customers in their stores.
Retailers that understand and satisfy shoppers needs better than the competition does will
be on a path to sustainable competitive advantage
and proftable growth. Grocers would do well to
honestly evaluate where they are on the journey to
becoming more customer-centric and put a plan in
place to steal a march on their competitors to win
with shoppers. PG
Graeme McVie is VP of business development for
Toronto-based Precima, a leading retail analytics solution owned by LoyaltyOne. He leads customer analytics
and loyalty services sales efforts across North America.
( 866.274.2545
* info@itretail.com
8 www.itretail.com
Technology
Logistics
The
Digital Link
138
and one trait speaks directly to the grocery industrys squeezed proft margins: Follow the money.
Te authors note that while many organizations are
focusing their digital investments on customer-facing
solutions, they can extract as much value, if not more,
from investing in back-ofce functions that drive
operational efciencies.
Indeed, the retail world appears to be on the
brink of a digital evolution in terms of operations,
and supply chain efciency is one of the critical
areas that will be afected. Of course, grocers will
and should be cautious about jumping on any killer
app that has yet to prove itself. But that shouldnt
stop them from putting on a set of digital lenses, so
to speak, as they plan their future strategies.
Several experts who spoke with PG had slightly
diferent takes on how exactly digital technology
will impact the future of the business, but all agreed
that while the need for transformation is evident,
there will likely be no sole magic bullet that the
industry can rally around at least for now.
Instead, they see a focus on multiple tools that can
advance supply chain efciencies for suppliers, distributors and retailers such as data visibility, consumer
analytics and 3D visualization, among others.
Shared digital
analytic platforms
can help retailers
and suppliers get
the metric and
data visibility to
solve supply chain
problems more
efficiently.
Jean-Michel Fally,
Deloitte Consulting
139
Advertor i Al
Q &A
Talking with
Sue Sentell
Gladson provides consumer packaged goods product images and information along with high-impact
category management and Store Optimization Services to help its customers increase sales and
operational effciency. The Lisle, Ill.-based Gladson empowers retailers to plan and execute more
effectively so they can meet shopper expectations across the path to purchase, from in-store to online.
Shoppers search
for products
in-store.
The same is
true online.
Empower shoppers and drive sales with accurate,
consistent and compelling product information
for websites, mobile apps, in-store and more.
www.gladson.com
Equipment
Shopping Carts
Pushing Into
Tomorrow
The shopping cart of the future has attracted a wide array of concepts.
By Bob Ingram
142
Shopping or Stalking?
Te most futuristic, Jetsons-like shopping cart of the
future is the Z-Cart, designed by Mete Mordag at his
Mordag Design studio, in Istanbul, Turkey.
Te Z-Cart can carry both the shopper and groceries.
It has storage space and a rechargeable scooter that can be
optionally integrated into the main body. Te scooter features stopping lights, brakes, a small digital display to show
battery level, and an accelerator ftted into the handlebars.
Te user is carried in a standing position, and the carts main
body can hold removable baskets and bags in diferent sizes,
and can be expanded as needed.
Equipment
Shopping Carts
CartlEss Cart
sK telecoms
smart shopper
platform
uses a virtual
shopping cart.
thinking of
the future of
shopping carts,
when it comes
to technology,
its really
more about
the grocery
store of the
future, which
is completely
connected
24/7 to the
customer.
Bill Gillespie,
IBM Global
Business services
144
Protein
Protein is
is why
why
people
people need
need it.
it.
Flavor
Flavor is
is why
why
they
they love
love it.
it.
trimino. The best-tasting protein water on the market.
Boosts metabolism
Curbs appetite
Increases energy
drinktrimino.com
145
Protein Power
Stonyfield has launched its latest yogurt innovation, Oh My Yog!, made with
organic whole milk and fruit. Delivered in a three-layer format fruit on
the bottom, honey-infused yogurt in the middle and a layer of cream on top
the offering comes in Madagascar Vanilla Bean, Wild Quebec Blueberry,
Pacific Coast Strawberry, Gingered Pear, Apple Cinnamon and Orange Cranberry flavors. Oh My Yog! 6-ounce containers appear in grocers refrigerated
sections in bold, colorfully striped packaging that reflects the products
unique format. SRP is $1.59. www.stonyfield.com
www.harvestsnaps.com
seasonal spotlight
A Spirited Collection for Moms
146
Compostable Coffee
Clif Bar & Co. is beefing up the sports nutrition category with its
new Clif Organic Energy Food, a line of pouches made from real
food ingredients in sweet or savory flavors. Designed to capture
the look and taste of homemade foods, each recipe contains
USDA-certified and gluten-free ingredients, without added
artificial flavors or synthetic preservatives. Clif Organic Energy
Food is available in 90-gram pouches (sweet, SRP $2.29) and
120-gram pouches (savory, SRP $2.99) in Banana Beet with Ginger, Banana Mango with Coconut, Pizza Margherita, and Sweet
Potato with Sea Salt varieties. www.clifbar.com
Skin Soothing
From the makers of Aquaphor Healing Ointment comes a new diaper rash
cream formulated with zinc oxide to prevent, soothe and treat diaper rash
flare-ups. Clinically proved to relieve irritation within six hours, the preservative- and fragrance-free cream is easy to apply and remove. Aquaphor Diaper
Rash Cream retails for $6.99 for a 3.5-ounce tube. www.discoveraquaphor.com
1
2
3
4
5
6
7
8
9
10
148
Purchase
INteNt score
77%
72
67
65
64
63
55
50
47
45
Elmwood Park, N.J.-based Sealed Airs Food Care Division received Flexible Packaging Achievement Awards for two packaging innovations on March 3 at the Flexible
Packaging Associations 59th annual Achievement Awards and Innovation Showcase,
during FPAs annual meeting, in Naples, Fla.
In the retail category, Cryovac Darfresh on Tray received the Highest Achievement award. In the Technical Innovation and Sustainability categories, Cryovac Freshness Plus won Gold awards. Te Cryovac
technology behind both Darfresh on Tray and Freshness Plus is
an excellent example of packaging designed with the latest consumer-driven food
trends in mind, says Sean Brady, Sealed Air Food Cares director of marketing.
Combining a pre-made tray system with vacuum skin, Darfresh on Tray extends
product shelf-life, reducing food waste. Tis packaging solution eliminates flm
scrap to ofer a more environmentally friendly alternative, using 40 percent less
material than other available tray skin oferings. Te Freshness Plus odor-eliminating materials help extend shelf life and reduce shrink by protecting foods aroma
profles. Te unique active packaging technologies pull odors away from the food
to maximize product favor, color and quality, while eliminating and reducing the
need for additives or preservatives. www.sealedair.com/foodcare
150
152
Earth Renewable
Technologies
Debuts EarthBottle
Brevard, N.C.-based Earth
Renewable Technologies
launched EarthBottle, a
plant-based packaging solution touted as a responsible
and sustainable alternative
to petroleum-based plastics,
on March 6 at Ingredea, in
Anaheim, Calif. Suitable for
natural products, personal
care products, pharmaceuticals and household goods,
EarthBottles claim to be
comparable or superior to
HDPE and PET in most
key parameters.
Our product is a versatile
plant- and mineral-based
solution for brands looking
to meet the demands of end
users with packaging options
that respect our resources
and protect our earth, at a
cost that may be comparable
to what they are using now,
says Owen Schultz, VP
of new business development. Boasting a sustainable
cradle-to-cradle footprint,
EarthBottles are made using plant-based materials
without toxic plasticizers or
fossil fuels and are recyclable
at facilities that accept #7
plastics. In addition, during
the decomposition process of
the biopolymer, no chemicals or hazardous materials
are leached into the water
or land, but instead vital
minerals and antioxidants
are returned to the earth.
www.earthrenewable.com
advertiser index
Agro America
Anchor Packaging
Anheuser-Busch Inc.
Beiersdorf, Inc
Blount Fine Foods
Butler Home Products
California Avocado Commission
Camber Pharmaceuticals
Campbell Soup Company
Candle Lite
Carrs Foods International
CH Robinson
Charles & Alice
Coca Cola NA
Conagra Foods
Creekstone Farms
Del Monte Fresh Produce
Delizza Inc.
Domino Foods
ECR Software Corporation
Elkay Plastics
Energizer Personal Care
95
44, 45
Inside Front Cover
122-123
4, 5
149
104
52-53
87
151
56
135
26, 27
23
57
68-69
100-101
75
21
131
39
65
www.onebananas.com
www.anchorpac.com
www.anheuser-busch.com
www.eucerinus.com
www.blountfinefoods.com/buildsales
www.thebutler.com
www.avocado.org
www.camberpharma.com
www.campbellsoup.com
www.candle-lite.com
www.stpierrebakery.com
www.accelerateyouradvantage.com
www.fruitfriends.com
www.coke.com
www.conagrafoods.com
www.creekstonefarms.com
www.freshdelmonte.com
www.delizza.us
www.dominosugar.com
www.ecrs.com
www.readychefgobags.com
www.energizerholdings.com/en/brands/
Pages/default.aspx
www.ferrerousa.com
www.forteproductsolutions.com
www.fresnofoodexpo.com
www.generalmills.com
www.gladson.com
www.goya.com
www.OurHouseGF.com
www.itretail.com
www.iddba.org
www.jellybelly.com
www.kellogg.com
www.limoneira.com
www.buy.louisianaseafood.com
www.lovingpetsproducts.com
www.effem.com
www.masonways.com
www.mcgladrey.com
www.milkpep.org
www.mombrands.com
www.olives.com
www.naturesweet.com
www.nepacartons.com
www.nestlenutritionstore.com
www.Nexium24hr.com/routine
www.placon.com
www.pompeian.com
www.robbieflexibles.com
www.sandridge.com
www.save-a-lot.com
www.stickyfingersbakeries.com
www.ttucorp.com
www.fremontcompany.com
www.hershey.com
www.pillsburybaking.com
www.flipflopwines.com
www.drinktrimino.com
www.triononline.com
www.turkeyhill.com
www.texaspetefoodservice.com
www.tysondeli.com
www.wellpict.com
www.wholesumharvest.com
Progressive Grocer (ISSN 0033-0787, USPS 920-600) is published monthly by Stagnito Business Information,
570 Lake Cook Rd. Deerfield IL 60015. Single copy price $10, except selected special issues. Subscription: $135 a
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all address changes to Progressive Grocer, P.O. Box 1842 Lowell, MA 01853. Copyright 2015 Stagnito Business
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consent of the publisher. The publisher is not responsible for product claims and representations.
Harry Stagnito
President and CEO
224-632-8217
hstagnito@stagnitomail.com
Kollin Stagnito
Chief Operating Officer
224-632-8226
kollinstagnito@stagnitomail.com
Ned Bardic
Senior Vice President/Partner
224-632-8224
nbardic@stagnitomail.com
Korry Stagnito
Chief Brand Officer
224-632-8171
korrystagnito@stagnitomail.com
Jeff Friedman
Vice President/Brand Director
201-855-7621
jfriedman@stagnitomail.com
John Huff
Midwest Regional Sales Manager
224-632-8174
jhuff@stagnitomail.com
Elizabeth Cherry
Western Regional Sales Manager
310-546-3815 Cell 310-990-9597
echerry@stagnitomail.com
Maggie Kaeppel
Eastern Marketing Manager
630-364-2150 Cell 708-565-5350
mkaeppel@stagnitomail.com
Mike Shaw
Northeast, Marketing Manager
201-855-7631 Cell 201-281-9100
mshaw@stagnitomail.com
Janet Blaney
Marketing Manager (AZ, CO, ID, MD, MN, MT, NM, NV, OH, TX, UT, WY)
630-364-1601
jblaney@stagnitomail.com
Jackie Batson
Advertising Manager
224-632-8183
jbatson@stagnitomail.com
153
Anticipation
proftability.
Te majority of industry execs Ive spoken
with are betting on more upbeat prospects
for product innovation, greater global synergies, increased scale and relevance both in the
United States and abroad, and more efcient
operations that will lower expenses and up
the new conglomerates clout with commodity
costs.
Consumers, meanwhile, will largely be unafected by the transaction, for which antitrust
concerns are muted in view of little overlap
in the product lineups of the iconic brands
parents. Out of the gate, Heinz CEO Bernardo Hees will take
the reins of the combined global company, whose new executive team will be revealed during the transition period.
Indeed, while 2014 may have been the year of retail
food mergers with still more likely on the way 2015
could well wind up being the year of signifcant supplier
mergers. Many traditional brick-and-mortar retailers
have fewer opportunities for growth, and are turning to
M&A to gain market share through consolidation or enter
new markets to extend their brand and reach, notes Ted
Vaughan, partner in BDOs consumer business practice,
in regard to the recently released results of his frms ninth
annual Retail Compass Survey of retail CFOs, 59 percent
of whom expect M&A activity in the retail industry to
further surge this year.
Indeed, as we look ahead to whats widely viewed as
open season for more acquisitions from the ranks of other
center store stalwarts, the industry is clearly headed for a
new phase of irrefutable evolution where further upheaval
is all but guaranteed.
It thus seems appropriate to invoke the lyrics of Carly
Simons timeless ballad that Heinz ketchup used for years in
its memorable TV ad campaign: We can never know about
the days to come, but we think about them anyway. For now,
anticipation will surely make us wait to see how the thick
and emphatically rich arrangement of two legendary CPG
leaders will ultimately play out. PG
Meg Major
mmajor@stagnitomail.com
Twitter @Meg_Major/@pgrocer
Looking ahead to whats widely viewed as open season for more acquisitions from
the ranks of other center store stalwarts, the industry is clearly headed for a new phase
of irrefutable evolution where further upheaval is all but guaranteed.
154
OPPOSITES ATTRACT.
NEW SWEET BAKED
& SALTY
COMBOS
SNACKS.
% Lift
by Any Promo
% Lift
by Any Display
COMBOS
BAKED SNACKS
184%
266%
1,754%
SALTY
SNACKS
59%
54%
137%
Food
% Lift by Any
Feature & Display
72 ct.
Shipper
any promo units % lift and any feature & display % lift
Quarter
Q4 2014
12/1/2014
3/20/2015
3/13/2015
Q1 2015
12/29/2014
3/20/2015
3/13/2015
Q3 2015
6/15/2014
9/4/2015
8/28/2015
Women in
A S U P PL E ME N T T O P R OG RESSI VE GR OC ER & RETAIL LEADER
Leadership
A
reinvigorated
Network of
Executive
Women
is launching a
new movement
for workplace
change
Women need it. Millennials want it. The times demand it.
ts time to recognize an important truth: Women
are the key to your success. The retail, consumer
goods and services industry will rise or fall
with its women customers and employees.
Women drive our business. Women make 63
percent of trips to grocery stores and make or
influence 93 percent of food purchases. They
are the sole or primary breadwinners in 40 percent of U.S. households with children and wield
growing influence over consumer spending in
the United States (and around the world).
But 59 percent of women polled by Nielsen
said food marketers do not understand them.
Thats a problem and an opportunity.
Consider the competitive advantage thats possible when companies decision-makers reflect their customer base. And, research
shows, organizations with more women leaders perform better. A 2011
Quotes appearing in this supplement have
previously appeared in special reports published
by the Network of Executive Women.
Q:
53% aspire
to become
the leader or
most senior
executive within
their current
organization.
59% of
men would
like to secure
the top
job in their
organization.
47% of
women would
like to advance
to the top.
28
% feel
their current
organization
is making full
use of their
skills.
34% of
women said
theyd emphasize
employee growth
and development
as leaders.
30% of
men said
theyd
emphasize
employee
growth and
development
Millennials are just as interested in how a business develops its people and how it contributes to society as they are in
its products and profits, said Barry Salzberg, CEO of Deloitte Global. The business community, particularly in developed
markets, need to change the way they engage Millennial talent or risk being left behind.
Source: Millennial Survey, Deloitte Touche Tohmatsu Ltd., 2015.
ADVERTORIAL
Talking with
Lisa Walsh,
Q:
A:
Q:
A:
Q:
A:
Q:
A:
Behind
Signs of progress
Some organizations are making a
determined effort to break down
traditional hierarchies, change
the way leaders are developed
and promoted and create a new
corporate culture thats more
inclusive, flexible and authentic.
Colgate-Palmolive Co., for
example, has worked to put
women into stretch positions.
The company offers executives
who cannot relocate permanently
opportunities to take on shortand long-term assignments in
the U.S. and abroad, allowing
them to raise their profiles and
broaden their skills.
And at Schwans Consumer
Brands, leaders have made a
concerted effort to move women
out of support functions and into
line roles. Women tend to do more staff roles,
says Diane Cooke, vice president of strategy and
compensation at Schwans. The challenge is getting
ADVERTORIAL
Talking with
Q:
A:
Q:
A:
Q:
A:
ot so long ago,
diversity was seen
as black and white,
male and female.
Little attention was
paid to the extraordinary experiences,
contributions and
career challenges
of multicultural
women. This has created an achievement gap that
persists. Not only are multicultural women underrepresented in the retail and consumer goods
industrys leadership, their unique challenges are
not being addressed something we have to do if
were to achieve a workplace with no limits.
Multicultural women face two career challenges, as women and as persons of color. Company
policies and corporate cultures that ignore
those challenges and the unique contributions of multicultural women are doing
the women and the company a disservice.
We are seeing a big difference in performance between companies that are more
diverse and those that are more insular, says Valerie Lewis, assistant vice
president, assistant secretary and senior
corporate counsel for Safeway Inc.
Indeed, while industry leaders
have been talking about the importance of the multicultural consumer
for the last decade, no real progress
has been made advancing multicultural women to senior roles. As
a result, most retail and consumer
products companies are not fully
benefitting from the rich diversity of
thought these employees offer.
Last year, NEW released the
Tapestry report, based on research;
interviews with industry leaders; and
an online survey exploring multicultural
womens advancement opportunities, the
workplace experiences of women and men
10
ITS TIME.
Its time for womens leadership.
Its time for a movement.
323.264.5200 | unifiedgrocers.com
corporatemarketing@unifiedgrocers.com
ADVERTORIAL
Talking with
Sarah Chartrand
SVP Talent and Human Resources,
Ahold USA
Ahold USA is a $26 billion business and the leading food retailer in the Northeast United
States, with approximately 770 stores and four operating divisions: Giant/Martins; Giant Food of
Maryland; Stop & Shop New York Metro; and Stop & Shop New England. Its Peapod business is the
countrys leading online grocery retailer, which operates across the market areas of the companys
retail divisions and is a purely online business in Chicago and surrounding areas.
Diversity & Inclusion is important to Ahold USA, which is why the company has invested in the
launch of business resource groups in order to further facilitate the connection and collaboration
between people with a common affinity. Sarah Chartrand, the SVP Talent and Human Resources,
spoke to Progressive Grocer about the importance of D&I to Ahold USA, along with its womens
resource groups and Ahold USAs strong partnership with the Network of Executive Women (NEW).
Progressive Grocer: What is the history and legacy of Ahold USAs approach to and success
with diversity in its mentorship and development approaches and programs?
Sarah Chartrand: We have a long and rich commitment to diversity within Ahold USA and our
Divisions. In the 15 years I have been with the company, all of the senior leaders I have worked
with have taken a genuine interest in embedding diversity and inclusion within our business,
in everything from our management development and recruiting practices to engagement
strategies, to our community partnerships. At the same time, there is a constant desire to get
even better in this space, which is very exciting to me.
PG: What are some examples of Aholds innovative ways of mentoring and developing
associates to reflect the organizations diversity of team members? How is this executed
in both different and customized ways across your brands and stores?
SC: About two years ago, the very active and energetic Women Adding Value
(WAV) Business Resource Group (BRG) in our Giant Landover Division
implemented a Mentoring Circles concept, where small groups of associates
gather on a monthly basis to discuss career progression, give advice, and
learn from one another. We have seen great success with this program and
it was later launched in our Ahold USA Support Offices and other divisions. Additionally, we are just
beginning to replicate this type of model within our ALANA/Mosaic multicultural BRG.
PG: In particular, how has your relationship with the Network of Executive Women
impacted or influenced programs that directly involve and benefit Aholds employees,
and ensure strong and diverse future leadership? Can you share some examples of
your collaboration/participation with NEW?
SC: Our partnership with NEW is very fulfilling, both organizationally and personally. We connect
the regional groups directly with our Divisional WAV BRGs, providing robust leadership development
and networking opportunities for our associates. We send numerous leaders to the national
conferences each year, connected to our management development program. We create opportunities
for our female leaders to speak at national and regional conferences, giving them much deserved
recognition and visibility within the industry. And for me personally, I have spent the past four years
on the NEW Board of Directors, which has been an amazing developmental experience. As a board
member, I have been able to help shape the future educational strategy and offerings of NEW,
which will contribute to the growth and advancement of women throughout our industry!
13
Launching a Movement
Inside NEWs bold new campaign for womens leadership
in retail and consumer goods.
2.
3.
4.
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collaborate and value employee contributions. Organizations must incorporate these feminine leadership
characteristics into a new leadership model.
Engage men. Too many existing diversity and inclusion efforts treat white men as problems that need to be
fixed instead of partners who need to be engaged.
Engage senior leaders. Companies making progress on
womens leadership share one trait: Committed executives driving change.
Nurture female talent. Fair hiring practices and work-life
policies are not enough. Organizations must implement
robust, corporate-wide programs that move the needle on
womens leadership.
Achieve critical mass. Advancing womens leadership
requires a critical mass of women in top roles a
minimum of 30 percent, according to a report published
by The White House Project, a nonprofit committed to
getting more women in the talent pipeline.
Enforce accountability. Organizations must have targets
in place that are frequently audited and revised with the
goal of increasing women in senior leadership positions.
Linda Johnson
The distinctive Network of Executive Women and NEW Logos are service marks of the Network of Executive Women, Inc.
Christine M. Albi
VP, Operations,
Michigan
Philecia C. Avery
VP, Pharmacy,
Corporate
Katy Barclay
Sr. VP, Human Resources,
Corporate
Lisa M. Chenny
VP, Operations,
QFC
Annette Franke
VP, Technology,
Corporate
Donna F. Giordano
Division President,
Ralphs
Penny U. Goddin
VP, Merchandising,
Louisville
Lisa E. Holsclaw
VP, Promotional Planning,
Corporate
Jayne Homco
Division President,
Michigan
Valerie L. Jabbar
VP, Merchandising,
Ralphs
Colleen Juergensen
VP, Operations,
Smiths
Kathy Kelly
President,
Kroger Personal Finance
Laurie A. King
VP, Operations,
Nashville
Christina C. Lindgren
VP, Accounting,
Corporate
Sukanya Madlinger
Division President,
Cincinnati
Molly J. Malone
VP, Merchandising,
Corporate
Lynn Marmer
Group VP,
Corporate Affairs
Pamela J. Matthews
VP, Merchandising,
Delta
Margaret M. McClure
VP, Merchandising,
Corporate
Jill V. McIntosh
VP, Merchandising,
Corporate
Theresa M. Monti
VP, Corporate Benets,
Corporate
Marnette Perry
Sr. VP,
Corporate
Cindy L. Rantanen
VP, Customer Experience,
Corporate
Natalie M. Ream
VP, Marketing,
Corporate
Sharon M. Sever
VP, Merchandising,
Mid-Atlantic
Erin Sharp
Group VP, Manufacturing,
Corporate
Marlene A. Stewart
VP, Merchandising,
QFC
Cynthia A. Thornton
VP, Labor Relations,
Corporate
Katherine K. Wolfram
VP, Merchandising,
Central
Dana M. Zurcher
VP, Operations,
Southwest
Ann M. Reed
Martha C. Sarra
VP, Customer 1st Promise, VP, Chief Ethics and Compliance
Corporate
Ofcer, Corporate
Christine Wheatley
Group VP, Secretary and
General Council
Corporate
Women Executives
Leading the Way
The Kroger Co. is proud of our women leaders, working tirelessly
every day to fulll our Customer Promise. The individual talents and
collective dedication of this remarkable group of professionals
are setting new standards for excellence in the food retail industry.