Progressive Grocer - July 2017 by ensembleiq

Plus! 70th Annual Consumer Expenditures Study P. 41

Store of the Month

A Bold Refresh

Northgate Gonzalez makes a splash with its latest design

Page 28

(From left) Joshua Gonzalez, mercado development leader; Mike Hendry, EVP of merchandising and marketing; and Martin Chavoya, district team leader.

July 2017 â&#x20AC;˘ Volume 96 Number 7 $10 â&#x20AC;˘ www.progressivegrocer.com

Your customersâ&#x20AC;&#x2122; habits. At our fingertips.

We make sales happen. Intelligently reaching millions of shoppers every day. Network of more than 60,000 stores. Digital grocery coupons. Targeted media. Unmatched shopper data.

Quotient.com Copyright ÂŠ 2017 Quotient Technology Inc. All Rights Reserved. Quotient and the Quotient logo are trademarks of Quotient Technology Inc. All other trademarks, service marks, logos, and company or product names are the property of Quotient Technology Inc. and its subsidiaries or their respective owners. Quotient Technology Inc. trades on the NYSE as QUOT. Coupons.com is a Quotient brand.

GOOD FOR GRILLING. GRE AT FOR BUSINESS. There’s nothing trendier than BBQ. And with sales of competitive BBQ cuts growing 7x faster than total fresh meat sales,1 partnering with Smithfield is a surefire way to heat up the register. Our new line of Dry Seasoned Fresh Pork products are great on the grill. So fire up your sales this summer with Smithfield and give your customers what’s quickly becoming one of the biggest brands in BBQ.

Drive Marinated Category Growth

Grow Total Meat Department Sales

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For more information about Smithfield Marinated Fresh Pork, contact your Smithfield Sales Representative or email FreshPorkSales@smithfield.com 1

Nielsen Perishable Group 52 weeks ending 7/30/16; Total US

Contents

07.17 Volume 96, Issue 7

COVER STORY Store of the Month

Todos en la Familia From its family to yours, Northgate Gonzalez Market delivers on a total fresh experience.

26 / Industry Events On the Same Team Retail dietitians identify collaboration as opportunity, challenge.

79 / Grocery Lunchbox Leaders Retailers, manufacturers reimagine the midday meal for schoolkids.

41 / Progressive Grocerâ&#x20AC;&#x2122;s

83 / Frozen & Refrigerated Foods

70th Annual Consumer Expenditures Study

Guarding the Perimeter Grocery retailers must stay vigilant in their efforts to preserve market share as disruptors rule the day. 75 / Feature A Place at the Table FMIâ&#x20AC;&#x2122;s National Family Meals Month enables retailers to promote togetherness through food.

Healthy Halo Better-for-you frozen foods get a boost from innovation, collaboration. 88 / Fresh Food Mini Meal Masters Grocers promote produce-rich snacks and healthful lunches for back to school.

41 July 2017 | progressivegrocer.com |

Contents

07.17

570 Lake Cook Rd, Suite 310, Deerfield, IL 60015 224 632-8200 • www.progressivegrocer.com

93 / Nonfoods Play to Win Spotlighting supplements for teen athletes gives grocers the chance to differentiate — and profit. 96 / Technology The Perks of Being an App User Mobile pay adoption is small in grocery, but the right incentives can grab consumers’ interest.

98 / Supply Chain Easy Sell Supply chain execs will soon have a new resource to help them better manage unsaleable products. 101 / Equipment & Design Steering Into Tomorrow The shopping carts of the future will be both hightech and traditional.

EDITORIAL Managing Director of Content Strategy Joan Driggs 224-632-8211 jdriggs@ensembleiq.com Editorial Director James Dudlicek 224-632-8238 jdudlicek@ensembleiq.com Managing Editor Bridget Goldschmidt 201-855-7603 bgoldschmidt@ensembleiq.com Digital & Technology Editor Randy Hofbauer 224-632-8240 rhofbauer@ensembleiq.com Senior Editor Katie Martin 224-632-8172 kmartin@ensembleiq.com Senior Editor Anna Wolfe 207-773-1154 awolfe@ensembleiq.com Contributing Editors Bob Ingram, Jenny McTaggart, Lynn Petrak, Barbara Sax and Jennifer Strailey

ADVERTISING SALES & BUSINESS Southeast Account Executive Larry Cornick 224.632.8248 lcornick@ensembleiq.com Midwest Marketing Manager Angela Flatland (AR, CO, IL, IN, IA, KS, KY, MI, MO, NE, ND, OK, SD, TN, WI) aflatland@ensembleiq.com 224-229-0547 • Mobile: 608-320-4421 Senior Marketing Manager Judy Hayes 925-785-9665 jhayes@ensembleiq.com Senior Marketing Manager Theresa Kossack 214-226-6468 tkossack@ensembleiq.com Western Regional Marketing Manager Rick Neigher (CA, OR, WA) rneigher@ensembleiq.com 818-597-9029 Northeast Marketing Manager Mike Shaw 201-855-7631 • Mobile: 201-281-9100 mshaw@ensembleiq.com Account Executive/ Classified Advertising Terry Kanganis 201-855-7615 • Fax: 201-855-7373 tkanganis@ensembleiq.com Classified Production Manager Mary Beth Medley 856-809-0050 marybeth@marybethmedley.com

101

SVP, Brand Director Katie Brennan 201-855-7609 • Mobile: 917-859-3619 kbrennan@ensembleiq.com

EVENTS SVP, Events & Conferences Maureen Macke 773-992-4413 mmacke@ensembleiq.com CUSTOM MEDIA VP/Custom Media Division Pierce Hollingsworth 224-632-8229 phollingsworth@ensembleiq.com General Manager, Custom Media Kathy Colwell 224-632-8244 kcolwell@ensembleiq.com MARKETING VP, Marketing & Communications Bruce Hendrickson 224-632-8214 bhendrickson@ensembleiq.com

AUDIENCE DEVELOPMENT Director of Audience Development Gail Reboletti greboletti@ensembleiq.com Audience Development Manager Shelly Patton 215-301-0593 spatton@ensembleiq.com List Rental The Information Refinery 800-529-9020 Brian Clotworthy Subscriber Services/Single-copy Purchases 978-671-0449 or email at EnsembleIQ@e-circ.net

8 / Editor’s Note The Day After

20 / NEW Horizons The Future of Work

12 / PG Pulse

22 / All’s Wellness Have a Healthy Back-to-school Season

14 / In-store Events Calendar

September 2017 16 / Nielsen’s Shelf Stoppers/Spotlight

104 / What’s Next Editors’ Picks for Innovative Products

Frozen Foods 18 / Mintel Global New Products

Deodorants

| Progressive Grocer | July 2017

ART/PRODUCTION Director of Production Kathryn Homenick khomenick@ensembleiq.com Advertising/Production Manager Jackie Batson 224-632-8183 • Fax: 888-316-7987 jbatson@ensembleiq.com Art Director Bill Antkowiak bantkowiak@ensembleiq.com

CORPORATE OFFICERS Executive Chairman Alan Glass President & CEO Peter Hoyt Chief Operating Officer Richard Rivera Chief Brand Officer Jeff Greisch Chief Financial Officer Len Farrell Chief Business Development Officer & President, EnsembleIQ, Canada Korry Stagnito President of Enterprise Solutions/ Chief Customer Officer Ned Bardic Chief Digital Officer Joel Hughes Chief Human Resources Officer Greg Flores

WILD WHAT YOU STOCK Consumers know there’s a better blueberry. You should too.

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There are two kinds of blueberries—one can change your bottom line. See the research at wildblueberries.com/powerofwild. Gifford’s, Maple Hill Creamery and Stonewall Kitchen are all registered trademarks.

Note By Jim Dudlicek

The Day After

O No one should be waving any white flags. The game is certainly changing, but it sure as heck isn’t over.

K, so it finally happened, the moment we’ve all been waiting for: Amazon bought a supermarket chain. The ecommerce behemoth’s pending $13.7 acquisition of Whole Foods Market has many analysts heralding the end of traditional retailers like Kroger and Walmart, despite these players’ huge investments and strides in omnichannel and shopper insights. And Progressive Grocer’s latest annual Consumer Expenditures Study, which begins on page 41 in this issue, indicates that other channels are continuing to chip away at mainstream supermarkets’ share of the consumer’s food dollar. But grocers shouldn’t be surrendering. The game is certainly changing, but it sure as heck isn’t over. In fact, the only player conceding defeat of any kind in this scenario is Amazon itself, argues Kurt Jetta, CEO of Shelton, Conn.-based TABS Analytics. “By purchasing Whole Foods, Amazon has waved the white flag on succeeding with only an ecommerce grocery offering,” the ever-provocative Jetta writes in an exclusive column for progressivegrocer.com. “The company has been testing brick-and-mortar book and grocery stores, but now it’s really making the plunge into physical stores. Yes, an online-only Amazon has shown year-overyear grocery growth, but it still hasn’t been enough to make online grocery a major force.” To be sure, a new NPD Group report indicates that there’s still room for brickand-mortar grocers. “Grocery ecommerce has a lot of headroom for growth, with only 7 percent of U.S. consumers shopping online for groceries in the last

Jim Dudlicek Editorial Director jdudlicek@ensembleiq.com Twitter @jimdudlicek

| Progressive Grocer | Ahead of What’s Next | July 2017

month,” Port Washington, N.Y.-based NPD reports. “Consumers who are lapsed from grocery shopping online or have never shopped for online groceries point out a number of barriers to their adoption of online grocery shopping, the top reason being that they want to pick out their own fresh items.” The Whole Foods acquisition will help overcome this barrier for Amazon Prime members (52 percent of online grocery shoppers are Amazon Prime members); active online shoppers, like young adults and men; and urban consumers, NPD notes. “Brick-and-mortar stores aren’t dead, they will just need to step up their game. There will continue to be a large percentage of the population who will prefer to shop at brick-and-mortar grocers,” says Darren Seifer, NPD food and beverage industry analyst. “At the same time, they need to keep up with the times and leverage digital ordering via their own click-and-collect programs as well as partnering with third parties for delivery in order to expand their offerings.” Many mainstream grocers have already been doing a great job creating omnichannel shopping experiences, including Kroger, ShopRite and Meijer. Amazon actually had to acquire an existing supermarket chain to make the leap into fresh grocery. It’s what it does with it that will make the difference. “In the short term, Amazon’s acquisition of Whole Foods does not do anything obvious to improve the prospects for either company in grocery,” Jetta says. “The tech wizardry of Amazon, however, means that every competitor should be keeping a sharp eye out for them, because something could hit that changes the business prospects for this combination overnight.”

Learn and Live At this writing, summer break has just begun for many youngsters, but retailers already need to start preparing for their back-to-school selling period. In this issue, grocers will learn how to help their shoppers pack the perfect lunchbox, select the best snacks and counsel parents on healthful boosts for kids on the go. Education is a key aspect of experiential shopping that will help grocers differentiate themselves from the growing field of competitors. PG

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What’s trending on progressivegrocer.com …

News of German deep-discounter and Aldi rival Lidl’s entrance into — and disruption of — the U.S. grocery sector took the top three slots on progressivegrocer.com for the May 16-June 15 time period. The chain held a May 16 event in New York to reveal its first U.S. locations’ opening date of June 15, as well as to showcase its private-brand products. Real-estate-related news made up the remaining rankings, with Wegmans’ entrance into Washington, D.C.; speculation as to whether Giant Eagle would scoop up shuttering Marsh Supermarkets stores; and Seasons Kosher Supermarkets’ rollout of three new shops. News that ecommerce behemoth Amazon.com is acquiring Whole Foods Market broke the day after the month-long time period ended, but we expect it to top next month’s list.

“We are a supermarket for everybody.” –Boudewijn Tiktak, EVP and chief commercial officer, Lidl US

1st U.S. Lidl Stores to Debut June 15 http://bit.ly/2sHISVO

Lidl Issues Grand-Opening Specials

“Our mission every day is to deliver our customers less complexity, lower prices, better choices and greater confidence.”

http://bit.ly/2sPqhYd

–Brendan Proctor, president and CEO, Lidl US

Buyers Stepping in for Marsh Stores?

Lidl Reveals Locations Wegmans of 1st 9 to Open First U.S. Stores D.C. Store http://bit.ly/2ssFWu6

http://bit.ly/2sPAF27

http://bit.ly/2ssYWZz

| Progressive Grocer | Ahead of What’s Next | July 2017

“We are strictly kosher, but a significant portion of our customers are not Jewish.” –Mayer Gold, CEO, Seasons Kosher Supermarkets

Seasons Kosher Supermarkets to Open 3 New Stores http://bit.ly/2rwDHVa

“The District of Columbia is an ideal market for us, and we look forward to serving new customers and offering a unique shopping experience there.” –Ralph Uttaro, SVP of real estate, Wegmans Food Markets

September 2017 is... National Hispanic Heritage Month National Family Meals Month National Mushroom Month National Potato Month National Rice Month

National Gyro Day. Offer one as today’s special prepared food item.

Email your calendar submissions to

National Grits for Breakfast Day. Share grits recipes on your Facebook page.

awolfe@ensembleIQ.com

National Baby Back Ribs Day

National Macadamia Nut Day Labor Day

National Cheese Pizza Day International Day of Charity. Support local causes with donations.

Support Read a Book Day with special pricing on cookbooks.

National Beer Lover’s Day

National Date Nut Bread Day

National I Love Food Day

It’s National Honey Month so set up a big display of all of the honeys you carry.

National Coffee Ice Cream Day

National Hot Dog Day

National Apple Dumpling Day

National Hot Cross Bun Day

National Monte Cristo Day

For Ethnic Foods Month, sample a variety of ethnic foods throughout the store.

Oktoberfest begins in Munich.

National Cheeseburger Day

National Cherries Jubilee Day

National Cooking Day. Create a display around some of the staff’s favorite recipes.

National Chocolate Milkshake Day

National Butterscotch Pudding Day Aargh! It’s Talk Like A Pirate Day.

National Key Lime Pie Day

Natural Products Expo East trade show in Baltimore begins tomorrow and continues through Sept. 16.

National Eat a Hoagie Day. No matter what you call them, have plenty of sandwiches on hand.

National Linguini Day

National Guacamole Day

National Peanut Day

National Punch Day. Offer samples throughout the store. Rosh Hashanah begins.

National Creamfilled Doughnut Day

World Gratitude Day. Show staff you value their efforts.

National Ice Cream Cone Day

National Chocolate Milk Day

National Drink a Beer Day

National Strawberry Cream Pie Day

National Coffee Day

National Mocha Day Yom Kippur begins.

| Progressive Grocer | Ahead of What’s Next | July 2017

National Cinnamon Raisin Bread Day

National White Chocolate Day Great American Pot Pie Day

National Pecan Cookie Day

Make sure you’re all set for Halloween.

National Double Cheeseburger Day

National Mulled Cider Day. Create a display with cider and mulling spices.

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Front End

Market Intelligence By The Numbers

Shelf Stoppers Stoppers

FrozenVegetables Foods Frozen

Basket Drivers

ToTal frozen food sales reached $52.7 billion in The pasT year

TOTAL FROZEN VEGETABLE SALES REACHED (52 weeks ending May, 27, 2017) $2.97 BILLION IN THE Top PAST YEAR food categories 5 frozen

among various frozen food categories in aisle, which command the largest basket size (average spend per trip)?

(52 weeks ending April 2, 2016) $10,000,000,000 8,000,000,000

6,000,000,000

Consumers chose frozen broccoli over In 2016, consumers spent on average: alternatives for a variety of reasons:

4,000,000,000

2,000,000,000

0 52 Wks - W/e 05/27/17 frozen enTrées

52 Wks - W/e 05/28/16

ice cream

52 Wks - W/e 05/30/15

novelTies

52 Wks - W/e 05/31/14

frozen seafood

52 Wks - W/e 06/01/13 frozen pizza

“on the whole, frozen foods have struggled to find growth this year, seeing slight declines of 0.3 percent in dollars. While much of this may be impacted by the proliferation of fresh prepared foods in store, the future of frozen still has its share of opportunities. some of the fastest-growing frozen food varieties are proof that ‘convenience’ and ‘quick preparation’ are qualities that can transcend the distinctions between the fresh and frozen worlds. frozen meal starters, breakfast entrées and prepared stuffing have grown at 35 percent, 9 percent and 4 percent, respectively.” —nielsen vp consumer insights Jordan rost

Demographics Spotlight on Frozen Broccoli many of the fastest-growing frozen food categories are resonating with households with

teenagers. households with children EATING age 13-17 are spending 37 percent more than their WHEN ARE CONSUMERS FROZEN BROCCOLI? expected share on frozen breakfast entrées and 26 percent more than their expected

share on meal starters. are the in only Broccoli as frozen an ingredient is most interestingly, commonly african-american Frozen broccoli households is most often used a side ethnic group spending moreby than their expected share on frozen stuffing. consumed at dinner, followed lunch. dish, followed by asprepared a main entrée. 3%

OCCASION

canned vegetables DINNER LUNCH

OTHER

InDex 35% 109 109 108 108

MEAL ITEM CLASS 61%

108 SIDE DISH

Source: nielsen

| Progressive Grocer | Ahead of What’s Next | July 2017

$10.76

10%

because it tastes great

$9.15

per trip on frozen entrées

because it’s healthy and nutritious

$7.30 8%

it’s low in perbecause trip on frozen pizza calories, fat and sugar

9% Top Complementary Products for Ice Cream and Frozen Novelties

ProDuct 29% TYPE 62% butter and margarine coffee cottage cheese, sour cream and Toppings nuts

12%

because it’s quick andon easy per trip frozen seafood

$6.30 per trip on frozen prepared stuffing

MAIN ENTRÉE

OTHER

source: nielsen homescan, Total U.s., 52 weeks ending may 27, 2017

Organic Valley offers the convenient, organic cheese your shoppers crave for their busy, back-to-school lives in a variety of delicious formats. â&#x20AC;˘ Organic cheese sales are growing 20x faster than total cheese sales* â&#x20AC;˘ Organic Valley cheese consumers spend 46% more than conventional cheese consumers per trip!** Contact your Organic Valley salesperson or email salessupport@organicvalley.com for all varieties and to place your order

*Source: SPINS/IRI 52wk end 4.16.17 Multi-Outlet + Natural Channels **Source: Catalina Marketing Shopper Database 2016 ÂŠOrganic Valley 2017-10044

Mintel Global New Products Database Category Insights For more information, visit www.mintel.com or call 800-932-0400.

Deodorants Market Overview Despite being a mature market, U.S. deodorant/antiperspirant value sales increased by 7.2 percent between 2014 and 2016 (estimate), driven by ongoing interest in spray formats and natural offerings. Nearly all (90 percent) of U.S. consumers used antiperspirants/ deodorants in the 12 months leading up to March 2016, with higher usage for deodorants (73 percent) than antiperspirants (51 percent), and lower usage for body spray (31 percent). Stick formats dominate in the United States (76 percent share) versus other countries. In line with its dominance in U.S. sales, the stick format drives new product development in North America, accounting for 54 percent of launches (57 percent in the U.S., versus 51 percent in Canada).

Single-use products are on the rise. One-third of U.S. body care or deodorant users have used singleuse deodorant products, while 26 percent haven’t used them yet, but are interested in trying them. One-fifth (21 percent) of U.S. body care or deodorant users have used deodorant wipes, with 36 percent not having used them yet, but interested in doing so.

key issues Skin care benefits and strong formulas offer growth potential, especially when targeting 18-to34-year-olds. U.S. men age 18 to 34 are especially prone to seek added skin care benefits (33 percent) and clinical-strength products (25 percent). Overall, 26 percent of U.S. deodorant users look for products with added skin care benefits, and 14 percent think it’s worth paying more for products that treat razor burn. Ingredients are of interest, with 26 percent of U.S. deodorant users concerned about the ingredients used in products, although 23 percent are skeptical that natural products work as well as regular products. Despite concerns over chemical content, antiperspirant claims are notably active in North America (64 percent).

| Progressive Grocer | Ahead of What’s Next | July 2017

Fragrance experimentation is popular among deodorant buyers, with opportunities for brands to market more niche and unique fragrance variants inspired by healthy and indulgent foods, drinks, aromatherapy, soap/bath toiletries, and prestige perfumes. Emerging robotic noses and devices that alert consumers to unpleasant body odors can help boost deodorant usage further, with opportunities for these devices to perhaps detect a specific odor and recommend a particular deodorant brand or fragrance. Interest in a range of deodorant formats is widespread, boding well for new formats to expand, lend differentiation and boost consumer engagement, especially in mature markets. Particular growth potential exists for portable new formats such as wipes — suitable for carrying in a bag or storing at a gym. Newer mist formats can also expand and appeal to consumers seeking lighter, gentler and more skin-friendly deodorants. Natural and organic products have become central to new product development in the wider beauty and personal care market, and can make greater inroads in deodorants, despite some confusion and skepticism surrounding natural claims. Deodorant body sprays can seek to engage further with men by strongly focusing on scent, and tapping into the fashion for removing body hair by emphasizing the link between hygiene and hair removal, or by including ingredients that claim to delay hair regrowth.

There’s nothing generic about trust. Every Kleenex® brand tissue has a purpose. To be strong. To be soft. To take care of you. To help you take care of yourself. For over 80 years, we’ve been the brand you can count on—every time, every day, everywhere. And we want to keep it that way. So when you need a tissue, make sure you ask for a Kleenex® brand tissue. Because there’s nothing generic about us.

® Registered trademarks of Kimberly-Clark Worldwide, Inc. © KCWW

NEW By Nancy Krawczyk

The Future of Work Big changes are on the horizon. Are you ready? cultures that put women “at the table” and “in the room” when plum assignments are awarded, when promotions are decided and when compensation is calculated. “Companies that create an inclusive culture for all of their people will be most successful at attracting, retaining and promoting women throughout the leadership ranks,” according to NEW board member Beth Marrion, managing director of retail at Dublin, Ireland-based Accenture. Do the women at your company have clear career paths to leadership roles? Are men and women offered the same mentoring, sponsorship, development and opportunities that lead to leadership roles?

new, more diverse generation is takingcenter stage, and new technologies are changing the way people shop, buy and sell — and work. We know that in the next 10 years, the retail workforce will be reshaped by Millennials, who will make up an estimated 75 percent of all employees by 2025. This generation expects companies to have digital acumen. They hunger for meaningful work and want an engaging culture with a personalized experience. Technology will be a key driver, disrupting how the industry handles finding talent, how you and others in retail do the work, and how you’re trained and developed for the next step in your career. Are you and your company ready to take advantage of these changes — or will you surrender the edge to your competition? Consider these top trends that experts say will change whom you work with and how you work together:

Women Leaders Despite the stubborn gender gap in corporate America, I’m confident that female leaders will be more prevalent in the retail workplace of the future — business demands it. Women make up more than half of our workforce and two-thirds of shopping trips. But companies need to build more inclusive

Job Automation Marrion cites futurist Thomas Frey, who says that 60 percent of the best jobs in the next 10 years haven’t been invented yet — think drone pilot, digital reputation consultant, digital archeologist and chief experience officer. At Deloitte, clients are looking at in-sourcing capabilities like artificial Companies intelligence, robots and other “productivneed to ity accelerators” that can take on routinbuild ized tasks, repetitive analysis and the like, cultures joining humans to form a hybrid workthat bring force of machine learning/automation women to and human insights and analysis, accordthe table. ing to past NEW Chair Alison Kenney Paul, vice chairman, global lead client service partner at the New York-based professional services firm. “This will be a trend in white collar work as the war for data scientists and other hard-to-hire professionals becomes more challenging,” Paul says. Consider the checkout-free Amazon Go convenience store powered by “just walk out” technology in the online shopping giant’s hometown of Seattle, and the company’s plans to supermarket-size the concept this year. Different skills, in different areas of expertise, will be needed to operate the retail store of the not-too-distant future. Young Managers In the multigenerational workplace — where young professionals may be savvier about new technology and changing trends — leaders need to connect with emerging leaders and develop them faster.

| Progressive Grocer | Ahead of What’s Next | July 2017

Is your company incorporating Millennials’ ideas and points of view by creating an open and safe work environment where everyone’s contributions are valued, regardless of tenure? “Diversity drives innovation, and that includes generational diversity,” Paul says. “Deloitte data tells us that 80 percent of Millennials expect to be able to give a performance appraisal to their boss.”

Transparency is Key Deloitte research shows that culture is crucial to attracting high-quality talent, and that culture without transparency will fade. “Retention and engagement rely on regular feedback, not once-a-year performance reviews,” Paul says. “If our newest employees are used to getting thousands of ‘likes’ for their point of view — in a few hours — they will not sit still for a once-every-12-months discussion of their progress. Companies will need to build in regular feedback, coupled with great learning opportunities, to hang on to the best talent.” The ‘Boomerang’ Employee A “boomerang” employee is one that leaves a company, but returns later. To address this issue, Deloitte has created Colleagues for Life, a talent strategy focused on alumni.

Embracing boomerang employees is a benefit for all, says Paul — and a solution to the work-life balance conundrum in which “road warriors” want to move to roles in corporations with less travel and more predictable schedules to meet family responsibilities.

The Gig Economy According to the Accenture Skills and Employment Trend Survey, 43 percent of the U.S. workforce is expected to be free-lancers by 2020, Marrion notes. “The ‘gig economy’ is here,” Paul agrees. “We are using the ‘crowd’ to source solutions, get the best thinking and solve problems fast. Let’s face it — not everyone is cut out for corporate America — nor is every project a full-time job.” There’s only one way to succeed as a retailer today, and that’s by leveraging the newest technology and best talent, regardless of gender, age or career stage. PG Nancy Krawczyk is VP of marketing and corporate partnerships for the Network of Executive Women, Retail and Consumer Goods, a learning and leadership community representing 10,000 members, more than 950 companies, more than 100 corporate partners and 20 regional groups in the United States and Canada. Learn more at newonline.org.

All’s By Karen Buch

Have a Healthy

Back-to-school Season Capture sales dollars by providing the right meal and snack solutions.

ack-to-school (BTS) time kicks off every year in August. The majority of households with school-age children typically begin shopping for BTS three to four weeks in advance, with one-quarter beginning two months ahead. Among those consumers who begin shopping early, one in every two purchases is influenced by coupons, sales and promotions, according to the Washington, D.C.-based National Retail Federation. Although price, quality and value remain top of mind for shoppers, there are opportunities to capture BTS sales dollars by suggesting meal and snack solutions that strike the right balance between convenience and health.

In addition to lunchbox ideas, emphasize healthful family meal ideas for breakfast and dinnertime, too. Even after-school snacks can be an important source of nutrients when chosen wisely.

Strategies to Reach BTS Shoppers When asked what techniques retail dietitians use to communicate with shoppers about BTS, Leah McGrath, corporate dietitian for Asheville, N.C.based Ingles Supermarkets, says, “I write back-toschool articles and record educational in-store radio spots that play in all 200 of our stores during the month of August.” McGrath also appears in local television programming, where she displays different healthy lunchbox items and offers tips to make packing lunches easier. In addition, she ties important food safety education to her messaging. This year, Alicia Jerome, health and wellness manager of Lubbock, Texas-based United Supermarkets, will launch the company’s third annual Build a Better Lunchbox campaign, expanding it from a largely digital format to incorporate a three-store pilot program aimed at increasing instore engagement. Jerome will offer recipe ideas, publish blog posts, and use shelf tags, in-store signage and demo stations to highlight nutritionally balanced lunchbox items. In this digital age, BTS messages should span retailers’ various communication channels, from print to email to social media, including Facebook, Twitter, Instagram, Pinterest and YouTube. Video messages carry the largest marketing opportunity. This medium in particular has gained signifi-

| Progressive Grocer | Ahead of What’s Next | July 2017

cant traction over the past decade, with 80 percent of online content predicted to be video by 2019. By including video content in email, click-through rates may increase 200 percent to 300 percent. Additionally, video viewers are 64 percent to 85 percent more likely to make a purchase.

What do BTS Shoppers Need Most? In addition to lunchbox ideas, emphasize healthful family meal ideas for breakfast and dinnertime, too. Even after-school snacks can be an important source of nutrients when chosen wisely. Kids from preschool to high school need snack ideas that supply common shortfall nutrients, including calcium, vitamin A, vitamin D, potassium, fiber, folate and iron. College kids can also benefit from lists of snacks to turn to during stressful exams, in lieu of stereotypical junk foods or fast foods. BTS time means busy schedules, so ideas should be easy to prepare or portable for eating on the go. For many families, BTS also means “back to sports,” with youthful athletes juggling eating and hydrating amid routine practices, games, and all-day meets or tournaments. Suggest specific foods and drinks for kids to choose before, during and after exertion to help them perform optimally and recover quickly. Although online shopping is gaining traction, 85 percent of parents engaged in BTS shopping still plan to purchase in-store. Therefore, bring your solutions to life right in the grocery store during BTS sales events by featuring sampling, compelling product displays, shopping lists, and themed cooking classes and store tours led by retail dietitians. PG Karen Buch, RDN, LDN, is a registered dietitian/nutritionist who specializes in retail dietetics and food and nutrition communications. One of the first supermarket dietitians, she is now founder of and principal consultant at Nutrition Connections LLC, providing consulting services nationwide. Connect with her on Twitter @karenbuch and on Facebook @NutritionConnectionsLLC.

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Industry Events

Retail Dietitian Symposium

On the Same Team Retail dietitians identify collaboration as opportunity, challenge. By Joan Driggs

ollaboration was the theme of the year for attendees of Progressive Grocer’s fifth annual Retail Dietitian Symposium, which took place June 3-5 in Anaheim, Calif. Whether in-store or at the corporate level, retail dietitians seek to demonstrate the benefits they bring their banners beyond the invaluable health-and-wellness programs most closely associated with their work. The 2017 Retail Dietitian Symposium included a day of learning from the Retail Dietitian Business Alliance (RDBA), including President and CEO Phil Lempert; Annette Maggi, RDBA’s executive director; and Shari Steinbach, owner/president of Shari Steinbach & Associates. The event culminated in a tour of the International Dairy-Deli-Bakery Association expo, also in Anaheim, at which retail dietitians visited select booths and toured the Show and Sell and New Products areas. Fifty retail dietitians, as well as sponsors spanning food and beverage companies and solution providers, benefited from extensive networking and problem solving.

External Collaboration RDBA sessions focused on the role of the retail dietitian, from both individual and banner-wide adherence to the dietitian code of ethics, to creating a personal brand and “elevator pitch.” Lempert stressed the importance of connecting with community organizations, particularly schools, as a way to demonstrate that grocery can be the center of the community. He recommended hosting a back-to-school (BTS) event, with school calendars and food restrictions posted in-store as a reminder to families. Retail dietitians can promote alternatives to restricted products and use BTS events as a vehicle to promote in-store services. Susan Borra, chief health and wellness officer and executive director of the FMI Foundation at Food Marketing Institute, was on hand to promote National Family Meals Month in September, part of the National Family Meals Movement to get families back to the dinner table (see more about the promotion in the article starting on page 75). Erin Quann, associate director, nutrition research at Nestlé Nutrition, shared findings from the latest “Feeding Infants and Toddlers Study” (FITS), which identified tremendous opportunity for retail dietitians to work with their in-store and vendor partners to support early-childhood nutrition at the point of sale, including promoting early-childhood nutrition programs and pregnant-women programs, and having a baby aisle offering only appropriate food for babies — not food for moms.

HEAlTHy COllABORATIOn Industry partners demonstrated how they can support dietitians’ health-and-wellness efforts in-store.

Mutual Support New research from PG revealed slow but steady progress for the retail dietitian’s impact on shoppers. A major hurdle, attendees agreed, is that they must work harder to demonstrate the level of support they provide the entire banner, in addition to the value already recognized by senior executives for positive customer engagement. At the symposium, attendees separated into groups, talked through challenges and came together to share solutions. To gain the ear of managers and corporate execs, retail dietitians encouraged one another to participate in store manager meetings, shadow other store departments for greater knowledge and insight, provide solutions to other associates’ work challenges and support others’ goals, obtain a non-dietitian retail mentor, and work alternate hours to connect with varying members of the store and corporate teams. Retail dietitians also discussed bringing fellow associates on board as “banner health-and-wellness ambassadors” to drive even further shopper engagement. Additional suggestions included answering questions via the retail dietitian website; creating health fairs for employees, which is also a great way to introduce new products across a banner; and building relationships throughout the store so that all associates can point to the retail dietitian as a source for customers and employees alike. PG

| Progressive Grocer | Ahead of What’s Next | July 2017

To view RD Outreach Innovation Award winners and photos from the Retail Dietitian Symposium, visit progressivegrocer.com/rdsymposium2017.

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Store of the Month

irroring the food markets of Mexico, where many different vendors and tradespeople gather to sell their wares, Northgate Gonzalez Market delivers an open, visually exciting and fresh atmosphere. A perfect example is the Anaheim, Calif.-based grocery chain’s store in the Los Angeles suburb of Norwalk, recently remodeled to better reflect the company’s vision of a neighborhood gathering place focused on fresh food presented in destination departments. “Northgate is all about being authentic while also reflecting current trends as they relate to our customers’ food tastes and shopping habits,” explains Mike Hendry, EVP of marketing and merchandising. “For instance, we incorporate a deliberate blend of authentic scratch products used to make traditional Mexican and South and Central American dishes, while at the same time making those same products available already made, ready-toeat, or in a heat-and-eat fashion. Our customer base is looking for products that suit their lifestyle, budget and cooking ability, and we feel we can deliver on that.” And deliver they do, as demonstrated by rave reviews in local press and social media, as well as the smiling faces of most every shopper. A Progressive Grocer visit this past spring revealed a vibrant, bustling market, driven by enthusiastic and knowledgeable associates eager to guide shoppers toward the best selections to meet their needs.

Fresh Out Front The most dramatic change was moving the produce section to the opposite side of the store. “We wanted to change the footprint, open it up and emphasize the fresh offerings,” Hendry says. “We wanted to expand our grab-and-go and signature offerings.” For the latter goal, the store

| Progressive Grocer | Ahead of What’s Next | July 2017

the flavor of gonzalez northgateâ&#x20AC;&#x2122;s norwalk team includes (from left) Jessie Munoz, r&D chef; Joshua gonzalez, mercado development leader; alonso escamilla, prepared foods trainer; Julio Cammacho, prepared foods team leader; Yanira De la Cruz, store team leader; Miguel Martinez, fresh team leader; Mike hendry, evP of merchandising and marketing; and Martin Chavoya, district team leader.

Northgate Gonzalez Market, Norwalk, Calif.

Todos en la Familia From its family to yours, Northgate Gonzalez Market delivers on a total fresh experience. By Jim Dudlicek Photography by Von McKinney

July 2017 | progressivegrocer.com |

Store of the Month

Northgate Gonzalez Market, Norwalk, Calif.

any way you want it northgate offers shoppers authentic flavors via (clockwise from upper left) fresh prepared foods, home prep demonstrations and ready-tocook seasoned proteins.

we’re hungry to continue to improve this every day, to build a stronger foundation for the associates and the family.” —Joshua Gonzalez, mercado development leader

expanded its service counter, broadened its fresh prepared selections and set up checkstands dedicated to foodservice, all aimed at better serving mealtime shoppers. “We wanted to make it as quick as possible to get in and out at the breakfast, lunch and dinner hours,” Hendry says. “All the bars are set up for swift production and quick customer ordering.” Quick service to be sure, but the wealth of authentic selections surely will compel shoppers to linger and savor. A handful of signature sandwiches (tortas) has swelled to a dozen (with the torta Cubana emerging as the most popular), and the “lunchería” abounds with street-style tacos laden with carnitas and barbacoa, in addition to burritos, tostadas, bowls, salads and wraps. The changes put fresh food front and center. “We’ve always done a lot of prepared food, but we expanded in a significant way,” Hendry says. “Many of

| Progressive Grocer | Ahead of What’s Next | July 2017

these foods we used to sell, but all behind the counter.” Food bars feature house-made selections such as tamales, salsa and up to eight varieties of authentic Mexican soups with complementary toppings. A new sushi bar joins Northgate’s renowned ceviche, or seafood cured in citrus juices. “We’re pretty famous for our ceviche. All our stores have it, but we have an expanded assortment here,” Hendry says, noting the Central and South American as well as Mexican styles. There’s also “presentation cooking,” with chefs stationed at flaming grills to prepare meat and seafood with flair, offering a serving of the food theater that’s so important to today’s experiential food retailing. And a new juice counter creates up to 18 flavors of aguas frescas — blends of fruit, water and sugar — delivering refreshing quaffs in traditional profiles as well as trendy new combinations featuring cactus and greens.

NEW

Store of the Month

Northgate Gonzalez Market, Norwalk, Calif.

hOrNO freScO fresh bakery items run the gamut from authentic bolillo rolls to fancy cream cakes.

Overdelivering Tortillas are a point of pride at Northgate, and the on-site tortillería is a display of freshness and showmanship. Tortilla makers know their best customers by name and lead them to the freshest batches as shoppers feel the stacks to find the warmest ones. “We stone-grind all our own corn. We have a silo in the back,” Hendry notes. “The whole traditional style — nothing from mixes, everything from scratch. It’s a lot more labor, but you can taste the difference.”

About Northgate Gonzalez Markets After their shoe business in Jalisco, Mexico, ended in a fire, Miguel Gonzalez Sr. and Teresa Reynoso de Gonzalez moved their family to Los Angeles over a period of years to start something new. The first Northgate Market opened in January 1980 in Anaheim, Calif., with every family member working in the business. The store quickly became a favorite of local Hispanics who wrestled with the language barrier at mainstream supermarkets, as well as those fond of the Gonzalez family’s secret recipes for carne asada, chorizo and carnitas. The business expanded over the years, eventually reaching 41 locations

throughout Southern California, plus some joint-venture operations in Arizona. The company’s co-presidents are Miguel Gonzalez Reynoso and Oscar Gonzalez Reynoso, with ownership shared among the family, including Miguel and Teresa’s 13 children. “Northgate was founded in 1980 based on a simple concept — to serve our customers and communities where they are underserved — providing them with great-quality, fresh, authentic Hispanic foods at fair prices,” explains Mike Hendry, EVP of marketing and merchandising. “As a family-owned and -operated company, we serve our community families like they are part of ours. We are tied together by our cultures, our love of family and traditions, new and old, and we do this through the connection of food.” www.northgatemarkets.com

| Progressive Grocer | Ahead of What’s Next | July 2017

Lisa Ling Producer and host CNN

Grace Killelea Career guru and executive coach

Julie Sweet North America CEO Accenture

Dr. Victoria Medvec Management expert Kellogg School

Michael Kimmel Author, SUNY Stony Brook

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Tracey Wood Vice President Mars Chocolate NA

Natalie Nixon Design thinking expert and author

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Store of the Month

Northgate Gonzalez Market, Norwalk, Calif.

| Progressive Grocer | Ahead of Whatâ&#x20AC;&#x2122;s Next | July 2017

Northgate Gonzalez Market 11660 E. Firestone Blvd. Norwalk, Calif. 90650 Grand reopening: Nov. 11, 2015 Total square footage: 59,000 Selling area: 45,000 square feet SKUs: 15,800 Employees: 180 Checkouts: 14 Hours: 6:30 a.m.—10:30 p.m.

The Mercadito service counter, or deli, features mostly Hispanic specialty cheeses and cremas, as well as some bries and “more mainstream choices,” Hendry says, along with ham, turkey and smoked meats. The produce selection is “typical of Northgate” but a larger assortment because of the increased space, according to Hendry. “We have expanded organics. We pride ourselves on freshness and quality,” he says. “We’re not the price leader, but we find the best quality at a fair price. The Hispanic shopper is looking for quality first and price second. We try to overdeliver on that.” Additionally, an expanded floral area greets shoppers at the entrance. Hendry also describes the meat department as typical of most Northgate stores, although 65 feet of service counter does set it apart from other grocers. “One of our points of difference is our meat counter — we cut, grind and marinate [with] secret family recipes,” he says, noting that Southern California is “blessed with good weather for year-round barbecuing.” In addition to offering chorizo, carne asada and other local specialties, Northgate draws attention to leaner cuts, as well as natural and grass-fed meat options. “We really have an emphasis on healthy alternatives,” Hendry says, noting the banner’s Viva July 2017 | progressivegrocer.com |

Store of the Month

Northgate Gonzalez Market, Norwalk, Calif.

la Salud — “to your health” — tag program to call out health aspects of products. “We’re one of the few in this segment that goes after health in a different way.” Making traditional Hispanic delicacies healthier includes offering cactus tortillas, made with less flour, and making aguas frescas with less added sugar. Meanwhile, an expanded seafood department displays its wares in open cases. “Most of our

fixtures are on wheels. The store is built on flexibility,” Hendry explains, pointing out the outlets and drop cords throughout the store so demos can bet set up in moments. “It’s all about the show,” he adds — from guacamole made to order, to demos on how to prep nopales, or cactus leaves. “We bring the show to the shopper.” That also includes cake decorators in the bakery, where most items are made from scratch daily, including sweet breads and bolillo rolls. “There’s a new batch every 15 to 20 minutes. People will wait for the hot ones,” Hendry says. La Tiendita, a separate counter near the bakery, makes fresh churros and other specialties, including Tosty Locos, a treat including fruit, chips and seeds. Northgate explores collaborations with suppliers to excite shoppers in new and different ways, including food pairings, cooking classes and recipe inspirations. “It’s about how we can make food and brands important and relevant to our customers,” Hendry says. “We want to do this absent a dependency on price, but rather through a deeper connection.”

It is sometimes easy to get stuck within boundaries of departments or programs, and these stores are built to be flexible, fluid and everchanging. We continue to push ourselves to break out of traditional merchandising.” —Mike Hendry, EVP of marketing and merchandising

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Center of Attention Spirits take center stage in center store, with an expanded tequila set that offers an aisle of $30-or-under selections, with premium bottles in a separate case. “We have one of the best varieties of Mexican beer,” Hendry says, pointing out the mix-and-match

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Store of the Month

Northgate Gonzalez Market, Norwalk, Calif.

craft 6-packs. A slightly larger wine set aims to broaden shoppers’ horizons; as Hendry explains, wine isn’t as popular among Hispanic consumers, who tend to favor sweeter varieties, but interest is growing. “People are open to trying new things.” Northgate had to rethink its approach to center store after removing four full aisles of grocery to accommodate the expanded fresh area, Hendry

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CATEGORY

TOTAl RETAil SAlES ($ MilliOnS)

Spices, Seasoning, Extracts Sugar, Sugar Substitutes Table Syrups, Molasses Tea Vegetables-Canned Vegetables, Grains-Dried Water-Bottled GROCERY-NONFOOD

$121,362.84

$404,478.34

43.0%

20.6%

63.6%

$54,451.49

42.3%

10.1%

52.4%

51.2 50.1 25.8 46.7

14.4 20.3 5.2 8.9

65.6 70.4 31.1 55.6

53.1%

21.7%

74.8%

6,380.48 921.57 1,979.97 3,080.74 4,510.91 16,952.09 10,246.29 12,340.87

41.2 62.4 59.4 59.3 49.7 31.6 58.2 44.7

29.9 20.5 21.9 23.4 22.1 24.3 22.3 18.1

71.1 82.9 81.3 82.7 71.8 55.9 80.5 62.8

10,090.38

63.5

20.7

84.2

7,775.31 5,454.04

53.5 61.4

20.6 19.2

74.1 80.6

2,604.66

54.1

24.3

78.4

1,695.93 2,342.50 2,231.24 4,101.52

62.4 46.0 29.1 54.6

23.0 17.8 24.7 21.1

85.4 63.8 53.8 75.7

10,764.47

55.0

20.6

75.6

6,611.17

38.5

15.7

54.2

Charcoal, Logs, Accessories Detergents Disposable Diapers Fresheners, Deodorizers Household Cleaners Household Supplies Insecticides, Pesticides, Rodenticides Laundry Supplies Paper Products Personal Soap, Bath Additives Pet Food Tobacco, Accessories, Alternatives Wrapping Materials, Bags

4,115.56

57.9

23.0

80.9

PERISHABLES

2,314.01 2,527.42

69.1 63.3

17.3 20.4

86.4 83.7

6,426.78

61.4

23.2

84.6

6,690.37

59.0

22.1

4,431.50

61.2

2,266.76 4,031.42 26,572.72

% DOllARS in % DOllARS SupERMARkETS & MASS in MASS % DOllARS in SupERMARkETS SupERCEnTERS SupERCEnTERS

4,489.83

58.0

20.5

78.5

3,206.67

41.1

27.1

68.2

940.09

56.5

20.7

77.2

5,038.18 5,343.11

57.2 65.3

20.3 19.3

77.5 84.6

1,805.08

59.6

19.5

79.1

12,019.05

48.6

17.5

66.1

24.4%

22.0%

46.4%

1,887.02

33.1

23.0

56.1

10,001.10 4,112.75

31.9 21.8

23.5 28.4

55.4 50.2

2,629.64

22.5

32.7

55.2

4,777.48 5,104.81

24.2 18.5

28.3 28.7

52.5 47.2

1,899.23

13.2

30.3

43.5

4,741.25 24,229.44

26.4 32.3

29.4 22.8

55.8 55.1

5,125.46

22.9

27.2

50.1

21,605.08

24.4

26.6

51.0

29,185.23

15.1

3.7

18.8

6,064.35

33.6

25.6

59.2

$445,659.88

60.1%

15.4%

75.5%

BAKERY-IN STORE (SERVICE)

$12,405.91

86.2%

13.8%

100.0%

81.1

BREAD AND BAKED GOODS-FRESH

$24,272.04

60.4%

21.7%

82.1%

21.8

83.0

DAIRY

$67,369.24

64.4%

19.1%

83.5%

57.1 54.8 51.5

18.1 19.6 21.0

75.2 74.4 72.5

4,534.14 18,523.24

63.4 63.6

18.5 20.0

81.9 83.6

3,643.98

67.8

20.6

88.4

18,207.15

62.4

16.4

78.8

2,189.16

47.9

27.3

75.2

1,933.97 5,869.18

64.2 62.4

25.7 17.4

89.9 79.8

5,965.01

62.9

20.1

83.0

Butter and Margarine Cheese Cottage Cheese, Sour Cream, Toppings Dough Products Eggs Juices, DrinksRefrigerated

5,706.13

66.2

17.1

83.3

19,762.05 1,046.13 15,905.00 17,738.31

GROCERY-FOOD

% DOllARS in % DOllARS SupERMARkETS & MASS in MASS % DOllARS in SupERMARkETS SupERCEnTERS SupERCEnTERS

$228,664.01

| Progressive Grocer | Ahead of Whatâ&#x20AC;&#x2122;s Next | July 2017

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Supermarket Share of Sales CATEGORY

TOTAl RETAil SAlES ($ MilliOnS)

Milk Pudding, Desserts Snacks, Spreads, Dips Yogurt

16,080.96 413.73 2,747.69 7,916.22

% DOllARS in % DOllARS SupERMARkETS & MASS in MASS % DOllARS in SupERMARkETS SupERCEnTERS SupERCEnTERS

64.3 73.2 62.7 66.1

18.6 16.9 14.4 19.3

82.9 90.1 77.1 85.4

60.1%

19.0%

79.1%

DELI-IN-STORE (SERVICE)

$31,982.25

DELI-REFRIGERATED (SELF-SERVICE)

$11,256.02

59.5%

20.2%

79.7%

FROZEN FOODS

$50,663.23

60.9%

21.4%

82.3%

2,077.40 3,156.18

66.9 55.8

22.1 25.6

89.0 81.4

2,428.91

56.8

19.2

76.0

Baked Goods Breakfast Foods Desserts, Fruits, Toppings Frozen Novelties Ice Ice Cream Juices, Drinks Meal Starters Pizza, Snacks, Hors D'oeuvres Prepared Foods Unprepared Meat, Poultry, Seafood Vegetables

CATEGORY

Gloves Hardware, Homeware Housewares, Appliances Kitchen Gadgets Lawn and Garden Light Bulbs, Electronic Goods Office/School Supplies Pet Care Seasonal GENERAL MERCHANDISE (NONTRACKED)

TOTAl RETAil SAlES ($ MilliOnS)

% DOllARS in % DOllARS SupERMARkETS & MASS in MASS % DOllARS in SupERMARkETS SupERCEnTERS SupERCEnTERS

473.68 2,793.16

15.2 5.7

28.5 40.6

43.7 46.3

9,556.40

5.0

31.7

36.7

5,915.89 1,390.70

20.2 4.3

29.2 23.9

49.4 28.2

4,912.97

7.4

25.7

33.1

6,718.28 8,574.65 269.66

8.7 15.9 17.4

35.9 26.4 23.4

44.6 42.3 40.8

$917,960.87

2.3%

10.7%

13.0%

$81,095.21

19.4%

27.0%

46.4%

1,794.90 59.59 5,132.76

9.8 4.9 11.6

35.6 43.1 28.1

45.4 48.0 39.7

7,465.05

21.6

25.8

47.4

2,442.29 597.11

25.8 30.1

32.8 37.0

58.6 67.1

119.78

9.2

29.1

38.3

547.55 561.17 2,676.93 1,134.47 1,850.14 7,528.08

21.2 17.9 18.9 3.8 14.4 21.9

29.7 37.1 29.1 14.7 37.3 29.4

50.9 55.0 48.0 18.5 51.7 51.3

13,861.36

17.7

29.3

47.0

535.17 7,678.97 3,731.93 2,297.84 3,202.99

8.9 21.4 22.8 26.9 20.4

28.8 27.9 28.7 31.9 28.4

37.7 49.3 51.5 58.8 48.8

6,202.22

15.3

24.8

40.1

11,674.91

22.2

20.8

43.0

PHARMACY

$239,213.58

6.7%

4.8%

11.5%

GRAND TOTAL

$2,147,210.77

23.3%

HEALTH & BEAUTY CARE

3,665.08 878.84 5,720.60 310.43 34.26

65.3 62.9 73.6 68.2 60.5

19.0 13.6 16.3 20.3 26.0

84.3 76.5 89.9 88.5 86.5

6,374.10

60.5

22.1

82.6

14,709.27

56.0

23.9

79.9

5,990.79

54.4

17.5

71.9

5,317.37

67.2

20.5

87.7

$122,221.33

56.5%

32.8%

89.3%

PACKAGED MEAT-DELI

$19,542.20

61.7%

21.3%

83.0%

FRESH PRODUCE

$98,541.05

61.2%

15.2%

76.4%

$7,406.61

12.4%

4.2%

16.6%

$58,802.89

11.3%

30.9%

42.2%

2,292.79 3,530.93 1,076.14 1,692.74

6.1 16.2 39.4 21.2

47.9 23.8 24.5 24.5

54.0 40.0 63.9 45.7

309.61

25.5

37.3

62.8

2,336.36

21.7

27.4

49.1

6,842.67

3.0

30.6

33.6

All “totals” (e.g., Total Grocery) reflect the sum of cateories depicted within this chart.

116.26

11.5

41.2

52.7

Source: Nielsen Homescan, Consumer Facts, Total U.S. 52 weeks ending Dec. 31, 2016, UPCcoded; Progressive Grocer Market Research, 2017

MEAT, FISH, POULTRY-FRESH

FLORAL GENERAL MERCHANDISE (TRACKED)

Automotive Batteries, Flashlights Books, Magazines Candles, Incense Canning, Freezing Supplies Cookware Electronics, CDs, DVDs Film and Cameras

Baby Needs Children's Cologne Cosmetics Cough and Cold Remedies Deodorant Diet Aids Ethnic Hair Preparations Family Planning Feminine Hygiene First Aid Fragrances-Women Grooming Aids Hair Care Medications, Remedies Men's Toiletries Oral Hygiene Pain Remedies Sanitary Protection Shaving Needs Skin Care Preparations Vitamins

| Progressive Grocer | Ahead of What’s Next | July 2017

CMY

21.9%

45.2%

70th Annual Consumer Expenditures Study

Supermarket Sales 2016 TOTAL RETAIL SALES ($ MILLIONS)

CATEGORY TOTAL GROCERY ALCOHOLIC BEVERAGES

Beer

2016 SUPERMARKET SALES ($ MILLIONS)

$404,478.34 $174,031.12

$54,451.49

$23,029.56

19,762.05

10,118.17

% ChANGE vS. YEAR AGO fOR 52 wEEKS ENdING: 12/17/16 12/19/15 12/19/14

12/17/16 12/19/15 12/19/14

1,294.32

-3.1

-3.7

-1.0

Shortening, Oil

4,031.42

2,209.22

0.3

-1.6

-1.1

Snacks

26,572.72

13,684.95

3.4

3.6

2.8

Soft Drinks-Carb.

18,207.15

11,361.26

-0.5

1.0

-1.9

Soft DrinksNoncarb.

2,189.16

1,048.61

-2.3

-0.4

-1.6

Soup

5,965.01

3,751.99

-0.5

-2.3

-1.5

4,489.83

2,604.10

5.1

3.6

1.5

3,206.67

1,317.94

-4.8

-1.5

-8.7

940.09

531.15

-1.6

-0.7

-2.9

5,038.18

2,881.84

2.4

5.7

2.7

5,343.11

3,489.05

-1.8

-1.1

-1.4

1,805.08

1,075.83

-2.6

-1.0

2.4

12,019.05

5,841.26

7.1

9.0

5.0

$121,362.84

$29,622.19

0.2%

2.1% -0.3%

1,887.02

624.60

-3.8

0.6

0.3

Detergents

10,001.10

3,190.35

2.0

0.4

-2.7

0.4%

3.8%

5.2%

3.9%

2.4

4.5

524.11

1.3

-3.3

2.8

Liquor

15,905.00

4,103.49

5.9

7.0

4.0

Wine

17,738.31

8,283.79

4.7

5.7

5.2

0.4%

1.4% -0.1%

Baby Food

% ChANGE vS. YEAR AGO fOR 52 wEEKS ENdING:

2,266.76

2.0%

1,046.13

$228,664.01 $121,379.37

2016 SUPERMARKET SALES ($ MILLIONS)

Seafood-Canned

1.2%

Coolers

GROCERY-FOOD

CATEGORY

2016 TOTAL RETAIL SALES ($ MILLIONS)

Spices, Seasoning, Extracts Sugar, Sugar Substitutes Table Syrups, Molasses

6,380.48

2,628.76

-4.2

-1.5

-1.1

Baking Flour

921.57

575.06

-0.1

-2.0

-1.0

Baking Mixes

1,979.97

1,176.10

-5.0

-4.6

Baking Supplies

3,080.74

1,826.88

-1.1

-0.7

-2.3

Breakfast Foods

4,510.91

2,241.92

-2.6

-0.5

-1.3

Candy

16,952.09

5,356.86

0.8

3.5

2.3

VegetablesCanned Vegetables, Grains-Dried

Cereal

10,246.29

5,963.34

-2.3

-1.9

-4.1

Water-Bottled

Coffee

12,340.87

5,516.37

0.9

9.0

4.8

Condiments, Gravies, Sauces

10,090.38

6,407.39

1.9

2.4

0.8

7,775.31

4,159.79

0.7

0.9

0.2

Crackers

5,454.04

3,348.78

0.0

0.7

-0.9

Desserts, Gelatins, Syrup

2,604.66

1,409.12

0.1

0.6

-1.5

Disposable Diapers

4,112.75

896.58

-1.2

1.3

1.1

Fruit-Canned

1,695.93

1,058.26

-3.5

-3.6

-3.3

Fresheners/ Deodorizers

2,629.64

591.67

1.9

3.4

-1.0

Fruit-Dried

2,342.50

1,077.55

0.3

-0.6

-1.6

4,777.48

1,156.15

0.9

1.1

-0.3

Gum

2,231.24

649.29

-2.0

1.0

-3.4

Household Cleaners

4,101.52

2,239.43

0.9

-0.6

-1.6

Household Supplies

5,104.81

944.39

-0.2

1.7

-1.0

10,764.47

5,920.46

-0.3

0.1

-3.1

Nuts

6,611.17

2,545.30

-1.6

3.0

4.0

Packaged Milk, Modifiers

4,115.56

2,382.91

0.0

0.7

1.4

Pasta

2,314.01

1,598.98

-0.8

1.6

-2.3

2,527.42

1,599.86

0.3

1.8

0.5

6,426.78

3,946.04

0.2

-0.6

-0.4

6,690.37

3,947.32

0.7

1.9

0.9

4,431.50

2,712.08

0.1

-1.8

Jams, Jellies, Spreads Juice/DrinksShelf-stable

Pickles, Olives, Relish Prepared FoodsDry Mixes Prepared FoodsReady-to-serve Salad Dressings, Mayo, Toppings

| Progressive Grocer | Ahead of Whatâ&#x20AC;&#x2122;s Next | July 2017

Tea

GROCERYNONFOOD

Charcoal, Logs

Insecticides

1,899.23

250.69

-0.1

6.1

-0.9

Laundry Supplies

4,741.25

1,251.69

2.1

2.4

-1.3

Paper Products

24,229.44

7,826.11

0.1

1.7

-0.1

Personal Soap, Bath Additives

5,125.46

1,173.73

0.8

2.7

1.5

Pet Food

21,605.08

5,271.64

-0.6

0.9

-1.3

Tobacco, Accessories, Alternatives

29,185.23

4,406.97

-1.3

2.5

-1.3

6,064.35

2,037.62

0.0

4.3

0.6

2.8%

3.2%

Wrapping Materials, Bags PERISHABLES

$445,659.88 $267,862.03

0.0%

Supermarket Sales % ChANGE vS. YEAR AGO fOR 52 wEEKS ENdING:

2016 TOTAL RETAIL SALES ($ MILLIONS)

2016 SUPERMARKET SALES ($ MILLIONS)

BAKERY-IN-STORE (SERVICE)

$12,405.91

$10,693.90

2.7%

2.3%

BREAD AND BAKED GOODSFRESH

$24,272.04

$14,660.31

0.2%

1.5%

0.3%

DAIRY

$67,369.24

$43,405.81

-3.6%

1.3%

3.7%

4,534.14

2,874.64

2.5

-0.2

5.3

18,523.24

11,780.78

-0.5

1.9

4.8

Cottage Cheese, Sour Cream

3,643.98

2,470.62

1.8

2.9

2.8

Dough Products-Ref.

1,933.97

1,241.61

-3.0

-4.7

-3.7

Eggs

5,869.18

3,662.37 -20.0

21.8

11.1

Juices, Drinks-Ref.

5,706.13

3,777.46

-2.1

-0.2

-2.7

16,080.96

10,340.06

-5.4

-5.6

2.8

Candles, Incense

413.73

302.85

1.3

-1.1

1.1

Canning, Freezing Supplies

2,747.69

1,722.80

1.6

3.5

9.5

7,916.22

5,232.62

-1.1

3.2

3.4

CATEGORY

Butter, Margarine Cheese

Milk Puddings, Desserts-Dairy Snacks, Spreads, Dip-Dairy Yogurt DELI-IN-STORE (SERVICE)

$31,982.25

$19,221.33

12/17/16 12/19/15 12/19/14

3.3%

3.5%

1.0%

DELIREFRIGERATED (SELF-SERVICE)

$11,256.02

$6,697.33

0.3%

2.9%

FROZEN FOODS

$50,663.23

$30,845.22

0.0%

1.0% -0.5%

Baked Goods

2,077.40

1,389.78

-1.6

-0.6

-2.2

Breakfast Foods

3,156.18

1,761.15

-1.4

1.3

0.6

Dessert, Toppings

2,428.91

1,379.62

5.3

6.1

2.2

Frozen Novelties

3,665.08

2,393.30

0.9

1.0

-1.2

Ice Ice Cream Juices, Drinks

-0.6

878.84

552.79

5,720.60

4,210.36

4.1

1.1

0.3

310.43

211.71

-7.7

-7.2

-9.1

6.1

Meal Starters

34.26

Pizza, Snacks

6,374.10

3,856.33

0.1

3.1

0.8

Prepared Foods

20.73 64.4

7.3

1.2%

-32.1 -44.3

14,709.27

8,237.19

-0.3

0.2

-1.7

Unprepared Meat, Seafood

5,990.79

3,258.99

-4.7

1.2

2.0

Vegetables

5,317.37

3,573.27

-0.5

-1.1

-2.3

CATEGORY MEAT, FISH AND POULTRY-FRESH

2016 TOTAL RETAIL SALES ($ MILLIONS)

2016 SUPERMARKET SALES ($ MILLIONS)

% ChANGE vS. YEAR AGO fOR 52 wEEKS ENdING: 12/17/16 12/19/15 12/19/14

$122,221.33

$69,055.05

-2.4%

3.5%

4.1%

PACKAGED MEATS

$19,542.20

$12,057.54

-3.1%

0.5%

4.8%

FRESH PRODUCE

$98,541.05

$60,307.12

3.4%

4.0%

4.5%

$7,406.61

$918.42

3.3%

3.1%

3.6%

$58,802.89

$6,621.50

-0.6%

1.6%

0.7%

2,292.79

139.86

-3.4

-0.1

3.6

3,530.93

572.01

1.8

2.3

-1.9

1,076.14

424.00 -10.2

1,692.74

358.86

1.4

2.4

-1.0

309.61

78.95

-1.3

-7.7

-1.1

Cookware

2,336.36

506.99

0.6

1.2

2.1

Electronics

6,842.67

205.28 -16.3

-15.3 -11.1

Film, Cameras

116.26

13.37 -34.7

-17.3 -15.4

Gloves

473.68

72.00

-2.0

3.7

2.9

2,793.16

159.21

4.3

7.7

1.5

9,556.40

477.82

-2.5

0.0

-1.5

Kitchen Gadgets

5,915.89

1,195.01

0.7

6.7

3.1

Lawn and Garden

1,390.70

59.80

2.3

7.5

-2.5

4,912.97

363.56

-0.9

7.4

9.3

6,718.28

584.49

-1.0

4.1

1.6

Pet Care

8,574.65

1,363.37

1.7

4.7

4.5

Seasonal

269.66

46.92 -17.9

-7.8

22.1

FLORAL GENERAL MERCHANDISE (TRACKED)

Automotve Batteries, Flashlights Books, Magazines

Hardware, Homeware Housewares, Appliances

Light Bulbs, Electric Goods Office/School Supplies

GENERAL MERCHANDISE (NONTRACKED) HEALTH & BEAUTY CARE

Baby Needs Children's Cologne Cosmetics

-11.9 -14.1

$917,960.87

$21,113.10

1.1%

1.8%

2.3%

$81,095.21

$15,695.75

2.8%

4.1%

2.2%

1,794.90

175.90

-3.0

1.2

0.7

59.59

2.92

-1.8

13.9

-3.9

5,132.76

595.40

0.5

3.9

1.8

July 2017 | progressivegrocer.com |

70th Annual Consumer Expenditures Study

Supermarket Sales 2016 TOTAL RETAIL SALES ($ MILLIONS)

CATEGORY

2016 SUPERMARKET SALES ($ MILLIONS)

% ChANGE vS. YEAR AGO fOR 52 wEEKS ENdING: 12/17/16 12/19/15 12/19/14

Cough, Cold Remedies

7,465.05

1,612.45

2.3

9.9

3.5

Deodorants

2,442.29

630.11

2.0

2.2

3.6

179.73 10.8

2.9

-0.7

-4.8

-5.0

CATEGORY

1,643.30

2.0

3.1

2.7

Pain Remedies

3,731.93

850.88

1.4

3.7

0.3

Sanitary Protection

2,297.84

618.12

1.0

2.1

-0.3

Shaving Needs

3,202.99

653.41

-3.9

-0.7

-3.6

6,202.22

948.94

2.8

0.5

1.4

11,674.91

2,591.83

4.7

7.7

3.2

$239,213.58

$16,027.31

3.2%

3.6%

3.9%

0.7% 2.6%

2.1%

Ethnic Hair Preparations

119.78

Family Planning

547.55

116.08

-0.9

2.4

0.0

Feminine Hygiene

Skin Care Preparations

561.17

100.45

0.2

3.4

0.2

Vitamins

505.94

0.3

3.8

1.9

43.11 -10.7

0.9

7.7

First Aid

2,676.93

FragrancesWomen

1,134.47

Grooming Aids

1,850.14

266.42

1.4

4.5

0.9

Hair Care

7,528.08

1,648.65

-0.3

0.5

2.7

13,861.36

2,453.46

2.4

4.9

3.8

535.17

47.63

-2.3

-0.8

3.8

Medications, Remedies Men's Toiletries

12/17/16 12/19/15 12/19/14

7,678.97

597.11

-6.2

% ChANGE vS. YEAR AGO fOR 52 wEEKS ENdING:

2016 SUPERMARKET SALES ($ MILLIONS)

Oral Hygiene

Diet Aids

11.02

2016 TOTAL RETAIL SALES ($ MILLIONS)

PHARMACY

Grand ToTal $2,147,210.77 $501,350.81

All “totals” (e.g., Total Grocery) reflect the sum of cateories depicted within this chart. Source: Nielsen Strategic Planner, Retail Measurement, Total U.S. Food stores, 52 weeks ending Dec.17, 2016, UPC-coded; Nielsen FreshFacts, Total U.S., 2016, Total Perishables Database; Progressive Grocer Market Research, 2017

SPONSORED CONTENT

Q&A

Talking with…

Seb Siethoff

Senior Vice President, Products & Marketing CSM Bakery Solutions

Progressive Grocer: Donuts have become extremely popular snacking options for on-the-go consumers. Do you have any data that illustrates just how popular they have become? Seb Siethoff: The data we’ve collected indicates that in the U.S., donuts are not only the most popular breakfast item sold in the in-store bakery, they are also the most popular bakery item consumed away from home. The current market for donuts in the U.S. alone is $3 billion annually, and it is growing 4.5% a year. PG: How is CSM Bakery Solutions helping grocery retailers appeal to customers who are looking for specialty donuts? SS: CSM Bakery Solutions recently teamed up with some of the most recognized brands across the U.S. to deliver a unique experience in donut consumption. Through licensing partnerships with Cinnabon®, Welch’s®, HERSHEY’S®, and The Simpsons™, CSM Bakery Solutions is introducing four exciting donut variations with the flavors consumers crave. In easy to grab packaging, and a variety of flavors and sizes, our portfolio of fully-branded donuts allow for all-day snacking and eating opportunities.

CSM Bakery Solutions’ fully-branded line satisfies consumers’ continued cravings for specialty donuts with the accessibility of an in-store bakery. With convenient two-count packs and donut hole grab-n-go cups from brands consumers love and trust, our branded donuts are the ultimate impulse purchase. PG: Do you have any tips on ways retailers can merchandise the new donut platform? SS: We’ve developed creative specific to our donuts and their brands that retailers can use to help create a visual “speed bump” to capture consumers’ attention. Retailers can use this creative to post stanchion signs above or near tables to draw awareness and drive impulse purchases. We also recommend placing displays in high-traffic areas outside the bakery such as the store entrance, check-out area and dairy aisle. We recommend that the branded donuts be co-merchandised – that is, displayed together vs. by individual SKU. This will signal a new branded partition in the fresh bakery to deliver on shopper needs across dayparts. It is also helpful to place secondary displays in high-traffic areas outside the bakery such as the store entrance, check-out area and dairy aisle.

| Progressive Grocer | Ahead of What’s Next | July 2017

Baked with

Happiness Introduce your customers to a delicious line of HERSHEY’S and REESE’S bakery products brought to you by CSM Bakery Solutions. For more information, please contact your CSM Bakery Solutions sales representative today.

csmbakerysolutions.com +1 (800) 241-8526 © 2017 CSM Bakery Solutions LLC. All Rights Reserved. The HERSHEY’S, HEATH, REESE’S PIECES, REESE’S trademarks and trade dress and the orange color background are used under license.

70th Annual Consumer Expenditures Study

Listen and Learn

Grocery retailers must understand deeper motivations behind purchasing behavior.

By Pete Killian and Linda Deeken

s one looks across this year’s Consumer Expenditures Study, one can certainly be tempted to focus more energy on the “what” than the “why” of the data. Clearly, there are useful learnings to be gleaned from the trends of specific channels, for example, the continued growth of other retail channels at the expense of traditional supermarkets. But far more important and, frankly, actionable is the “why” behind the trends that are uncovered by a review of the data. At a category/product level, the insight when reviewing the expenditures data is quite straightforward: Categories that align with consumer demand are growing, and those not aligned are declining. Five key areas specifically caught our attention, and

underscore deeper consumer motivations that will only continue to impact the competitive landscape in 2017 and beyond:

| Progressive Grocer | Ahead of What’s Next | July 2017

Fresh is foremost: Fresh produce and proteins continue to account for the majority of supermarket growth, while categories dominated by canned/ shelved/boxed items are struggling. As consumers continue to gravitate to “real foods” and easy-tounderstand ingredient lists, this trend will continue. Making different choices with key center store items while simultaneously driving private brands will be necessary to capitalize on this trend. The health halo: Health perception is reality, and health-driven categories are growing (fresh,

organic, healthy snacks), while products with perceived compromises lag. Meeting shoppers’ demand for a health “intellectual alibi” is critical, but overstepping on maximum health credentials will not pay dividends. Excellent experiences: Alcohol and party foods won out over pantry-filling items last year, a continuation of the consumer’s appetite for new “experiences.” Supermarkets that note this need, and assort and merchandise around events/parties/celebrations, will enjoy a warm reception from consumers. Instant gratification for the win: What used to be a need for convenience has evolved into demand for instant gratification on the go (e.g., meal kits or cereals), continuing to win out over time-intensive foods tied to a place. Many supermarkets are quickly moving to this offering, but being first to market with convenient products, highlighting prepared offerings and even innovating private-brand packaging to be ever more convenient will all add marks in the “W” column. New is nice: Interestingly, categories driven by small/ new brands are driving growth, while those categories

dominated by national brands are often in decline. While some might argue the correlation with the less loyal Millennial population, the trend is more pervasive than that, and consumers, as noted above, are fundamentally seeking new experiences, new products and new brands with which to foster relationships they can be proud of. Investing to prominently display new brands and products ensures that retailers are seen as on the leading edge as well. At a more aggregate channel level, it should come as a shock to no one that the “Amazon effect” has made an impact on the traditional grocery channel this year, with the ecommerce giant stealing share in the predictable stock-up, bulk and subscription-potential categories. The truth — and, arguably, staying power — of this trend has brought about such industry moves as Walmart’s purchase of Chewy.com for $3.4 billion. Yet traditional grocers, fear not: Grocery will most certainly remain, but increased focus on impulse purchases and destination categories will be critical to grocers’ long-term financial health. In addition, traditional grocers must also appreciate the losses coming from growing nonfood categories such as personal care and cosmetics. While Amazon has not as significantly impacted these categories, the

Thriving Brands Growing Across all Confection Segments!

Contact your local Perfetti van Melle representative or customer service at 1.800.283.5988

70th Annual Consumer Expenditures Study explosion of points of distribution (drug/c-store/dollar formats) and growth of specialized competitors (e.g., Dollar Shave Club) certainly have. The reality is that while supermarkets have temporarily slowed losses against others via heavy promotions and similar tactics, this is not a sustainable strategy. In the face of these category and channel pressures, we offer five key strategies around which traditional grocers must innovate to get ahead of accelerating customer demand: Prioritize categories to win — and optimize others for profit: Develop and execute category roles to sharpen what to stand for (e.g., fresh, convenience) and what to drop (e.g., general merchandise). Specialize with smaller formats: Niche formats are 75 percent of supermarket footprint growth, and dollar/c-store/drug/discount drove most of the overall retail footprint growth in the past decade. The reality is that grocers can no longer win with a “big and generalist” proposition. Localize: Small grocery operators know their customers better than massive players do, but ownership and/or systems need to be in place to respond with

sensitivity and speed to customer demand. Vendor partnerships are critical to localize effectively. Build a moat on experience and service: Lean into the inherent advantages of the grocery format by making statements and experiences across the store with superior merchandising and service. For example, health and beauty and pharmacy are experiential, service-intensive and growing, but grocery isn’t meeting customer expectations — yet. Partner on digital: Smaller grocers should partner with established digital players to get ahead of customers’ accelerating expectations and maximize the experience for customers. Progressive Grocer’s Consumer Expenditures Study once again highlights both successes and opportunities for the mindful and diligent reader. Consumers speak clearly with their dollars — the real question is, are we truly listening? Pete Killian is a principal and Linda Deeken is CMO of The Cambridge Group (www.thecambridgegroup.com), a growth strategy consulting firm owned by Chicago-based Nielsen.

70th Annual Consumer Expenditures Study

Milk Money

hese days, the definition of “milk” for many consumers has expanded to encompass a range of beverages made from almonds, hemp, rice, soy and other nondairy products. Facing stiff competition from these alternative “milks,” total dairy milk dollar sales fell 4.8 percent to $10.2 billion for the 52 weeks ending May 6, according to Schaumburg, Ill.-based Nielsen. Another key issue affecting dairy milk is a drop in prices resulting from a glut on the market and an accompanying downturn in exports. Chicago-based Mintel attributes the rising popularity of nondairy options to their wide range of products and flavors, inclusion of healthy ingredients, and often highly nutritional attributes, far beyond the beverages’ obvious appeal to those who can’t digest the lactose present in dairy foods. Still, it’s not all gloom and doom for the dairy milk segment: The market research firm sees an opportunity for single-serve products, in plain as well as flavored varieties, to win over convenience-minded consumers who can enjoy its taste, choose it as a natural source of currently trending protein and other nutritional benefits, or use it as a rehydration/sports recovery beverage. For nondairy beverages, Mintel suggests that more personalized functions in products, such the promotion of

Refrigerated Milk Substitutes — All Other comPany

Dollar SaleS

WhiteWave Foods Co. Jackson Mitchell Inc. Blue Diamond Growers Good Karma Food Tech HP Hood Inc. Redwood Hill Farm Ripple Foods C.F. Burger Creamery Co. Summerhill Dairy Steuben Foods Inc.

$40,772,968 12,941,231 12,404,087 5,092,907 1,929,795 1,179,591 652,462 628,859 314,473 307,062

Percent Unit VolUme Percent change (in millionS) change 10.0% 8.0 91.4 62.4 -23.6 57.2 N/A 4.6 10.4 80.5

12,595,622 2,748,638 4,029,156 1,401,584 503,583 166,171 148,971 142,024 79,620 141,112

12.4% 7.7 89.5 60.0 -25.1 55.1 N/A -0.3 7.5 141.2

Ranked by total U.S. food dollar sales for 52 weeks ending April 16, 2017 Source: IRI, a Chicago-based market research firm (@iriworldwide); Progressive Grocer Market Research, 2017

Refrigerated Flavored Milk/ Eggnog/Buttermilk comPany Private Label Dean Foods Fairlife LLC HP Hood Inc. Prairie Farms Dairy WhiteWave Foods Co. Hiland Dairy Foods Co. Promised Land Dairy Borden Dairy Co. Kemps LLC

Dollar SaleS $239,894,818 98,281,919 42,797,805 32,834,560 32,256,351 26,674,908 21,359,791 20,533,800 18,644,165 17,523,485

Percent Unit VolUme Percent change (in millionS) change -2.1% 110,056,785 -3.7 38,185,947 43.2 13,306,146 5.0 10,001,955 11.2 15,613,625 2.8 6,032,019 12.6 10,590,622 33.5 7,875,228 6.4 7,805,236 -3.5 8,129,202

-0.9% -5.2 37.9 3.2 14.5 -0.2 13.8 41.8 5.2 -3.0

Ranked by total U.S. food dollar sales for 52 weeks ending April 16, 2017 Source: IRI, a Chicago-based market research firm (@iriworldwide); Progressive Grocer Market Research, 2017

relaxation or energy, or the inclusion of probiotics, could attract consumers in search of more healthful quaffs. When it comes to brands, private label still rules in dairy milk in both the low-fat/skim and whole segments by a wide margin over branded competitors, according to Chicagobased IRI, while nondairy beverage brands 8th Continent, Blue Diamond, Califia Farms, WhiteWave’s Silk and So Delicious, and The Hain Celestial Group’s Dream jostle for dollar share in their various segments. Beyond milk and milk alternatives, other beverages have gained prominence in dairy sections and consumers’ refrigerators, among them kefir, drinkable yogurt and nondairy shakes, giving “classic” unflavored dairy milk a further run for its money.

| Progressive Grocer | Ahead of What’s Next | July 2017

Bring on the Vegetables

s the potato chip going the way of the dodo bird? While sales of salty snacks are up 2 percent over last year, accounting for more than $10 billion in sales, potato chips were down slightly (0.2 percent) for the 52 weeks ending April 16, according to Chicago-based IRI. Americans are snacking more than ever, but the increased focus on â&#x20AC;&#x153;healthyâ&#x20AC;? snacking is driving many brands to take a look at the base of the salty snack. Several new product launches have moved away from the traditional potato, or rice or corn, and towards other grains and vegetables, like kale. The rise in popularity for kale chips or kale snacks in general has inspired manufacturers to experiment with other vegetables in the snack category. Recent product launches have included snack chips made from broccoli, Brussels sprouts and spinach. Beans, peas and seaweed have also gotten in on the action. Consumers are looking for manufacturers to move away from the traditional when it comes to flavor as well. According to Chicago-based Mintel, 35 percent of chip eaters indicate a new flavor would increase their chip purchases, and 37 percent noted they preferred innovative flavors like sriracha or truffle over the more traditional like onion or vegetable. More than half (56 percent) of American consumers are concerned about the ingredients in salty snacks, which only highlights the need for manufacturers to incorporate clean labels and transparency regarding ingredients, Mintel notes, and brands that diversify with

new base ingredients and transparent sourcing can fill the gap needed for healthier snacking. The largest-growing segment of the salty snack category is ready-to-eat popcorn, which saw an increase of 13 percent in sales over last year, according to IRI. Again, new products in the segment are finding new base ingredients, branching out from the traditional corn. Popped sorghum and lotus seeds are just some of the ingredients entering the category.

Ready-to-eat Popcorn/Caramel Corn comPany

Dollar SaleS

Smartfoods Inc. $162,901,056 Skinnypop Popcorn LLC 109,223,696 Angieâ&#x20AC;&#x2122;s Artisan Treats LLC 49,484,756 Private Label 35,539,324 Frito-Lay 17,652,528 Wise Foods Inc. 15,744,816 Dale and Thomas Popcorn 15,040,945 Conagra Brands 15,039,591 Cornfields Inc. 11,641,835 Snyders-Lance Inc. 11,163,309

Percent Unit VolUme Percent change (in millionS) change 26.36% 16.20 15.32 37.33 0.92 7.57 (18.53) (0.72) 9.74 0.82

55,778,932 32,913,556 15,937,289 19,133,674 12,818,798 7,436,974 4,828,985 8,013,880 3,619,446 4,698,763

22.50% 15.70 16.61 33.81 (0.68) 5.91 (15.67) (1.11) 11.68 0.50

Ranked by total U.S. food dollar sales for 52 weeks ending April 16, 2017 Source: IRI, a Chicago-based market research firm (@iriworldwide); Progressive Grocer Market Research, 2017

July 2017 | progressivegrocer.com |

70th Annual Consumer Expenditures Study

Wonder Bars

n the bar category, granola bars made up the only subcategory to see a decline in dollar sales (3.1 percent) for the 52 weeks ending April 16, according to data from Chicago-based IRI. This arguably was at the expense of nutritional and breakfast bars, both of which saw only small upticks in growth, but several impressively performing brands. For nutritional/intrinsic health value bars, IRI data show dollar sales barely up, at 0.7 percent. However, brands that focused strongly on high-protein, low-carb products, as well as communicating a fitness-minded message, appear to have done well during the period: ThinkThin, which Mintel’s

All Other Snack/Granola Bars Percent Unit VolUme Percent change (in millionS) change

comPany

Dollar SaleS

ThinkThin LLC General Mills Inc. Kellogg Co. Private Label Joyba Corp. Kashi Co. Quaker Oats Co. Awake Corp. Vintage Food Corp. Iovate Health Sciences USA Inc.

$13,556,079 (1.45)% 9,061,259 476.19 4,711,009 2,576,268 16.77 2,306,734 0.78 851,817 (68.12) 315,791 239,005 186,281 56.11 174,238 (53.71)

8,113,262 (2.35)% 2,939,887 782.52 1,551,060 1,145,574 6.04 973,044 10.56 279,911 (65.26) 117,438 62,901 49,716 87.61 21,786 (52.40)

Ranked by total U.S. food dollar sales for 52 weeks ending April 16, 2017 Source: IRI, a Chicago-based market research firm (@iriworldwide); Progressive Grocer Market Research, 2017

Global New Products Database shows to have repackaged a number of its products recently, saw sales rise 14.8 percent during the period, while Atkins, which launched several high-protein and -fiber products late last year, enjoyed sales growth of 6.1 percent. Kind, a brand known for its easy-topronounce ingredients, likewise saw growth with its Nuts & Spices line of bars, which also offers unique flavors. These attributes fit with findings in “Sweet Biscuits, Snack Bars and Fruit Snacks in the US,” a July 2016 report from London-based research firm Euromonitor, which points to the success of products with high protein content/satiety, diverse flavors, and minimally processed, limited-ingredient positioning. Also contributing to some success in the category is the focus on soy-free plant protein, appealing especially to those allergic to soy. Clif launched a line of whey protein bars in late 2016, which, along with other new products, could have contributed to the brand’s 9.1 percent dollar sales growth during the period. The company’s Luna and Builder’s brands, both protein-focused, also enjoyed growth. Breakfast bars saw dollar sales up slightly by 1 percent, but promising performers include Post’s Quaker brand, which launched its Breakfast Squares Soft Baked Bars and experienced a whopping 584 percent dollar sales increase, and Kind, which recently launched its own line of soft-baked breakfast bars and saw 703.5 percent growth. Both lines tout wholesome “real” ingredients, as well as describing themselves as a good source of fiber and/or protein. This corresponds with Euromonitor’s point that “demand for portability and satiety,” along with “consumers looking for a more nutritious morning boost,” is helping drive innovation in breakfast bars.

| Progressive Grocer | Ahead of What’s Next | July 2017

AN EMPLOYEE-OWNED COMPANY.

70th Annual Consumer Expenditures Study

Spill the Beans

hile recent years have been all about the pod in the coffee category, growth of single-cup sales slowed quite a bit in the past year. During the 52 weeks ending April 16, sales rose 3.1 percent, compared with a 15.1 percent rise over the 52 weeks ending May 15, 2016, according to Chicago-based IRI. This news comes as no surprise: The penetration potential for single-cup coffee systems, which is pivotal to the sustained rapid growth of single-cup sales, has always had a limit, exemplified in unit volume sales of such systems over the past two years, London-based research firm Euromonitor observes in its “Coffee in the US” report. Add to that pods’ well-publicized environmental impact turning users off and the rising interest in ready-to-drink coffee such as cold brew, which also is considered extremely convenient and delivers a coffeehouse-worthy experience. Coffee beans proved to be another noteworthy area, with dollar sales ticking up 4 percent during the period. While mainstay brands such as Starbucks, Peet’s and Dunkin’ Donuts saw single-digit growth, top performers here were smaller-batch, high-quality brands such as Stumptown Coffee Roasters and Vermont Coffee Co., each of which saw just above 30 percent growth in dollar sales during the period.

Coffee Additives/Flavorings comPany

Dollar SaleS

R. Torre & Co. Inc. Private Label DaVinci Gourmet LLC The Folger Coffee Co. Starbucks Coffee Co. WhiteWave Foods Co. Georges Monin S.A. Dave’s Coffee Caribou Coffee Co. Inc. Fabrri 1905 S.P.A.

$16,093,999 1,072,139 605,945 428,099 342,154 310,536 80,621 22,194 15,811 7,216

Percent Unit VolUme Percent change (in millionS) change 23.25% 1.88 (6.73) (64.29) (6.56) 5.59 (16.65) (60.11)

3,319,932 357,528 65,568 160,202 31,042 116,784 8,693 2,626 2,054

24.71% 1.92 (20.96) (54.28) (18.99) 3.34 (18.39) (59.99)

2,190

Ranked by total U.S. food dollar sales for 52 weeks ending April 16, 2017 Source: IRI, a Chicago-based market research firm (@iriworldwide); Progressive Grocer Market Research, 2017

This fits with the Third Wave coffee movement, described in Mintel’s May 2017 “Category Insight: Coffee” as “[elevating] coffee to more than just a commodity” and helping to “fuel renewed interest in the coffee industry by creating innovation opportunities through premiumization.” It also fits with younger consumers increasingly identifying themselves as “coffee snobs” — 16 percent of U.S. coffee drinkers, rising to 25 percent among Millennials. Interest in product origins still has a place in coffee choices, too. Chicago-based Mintel also notes that while 10 percent of coffee drinkers in the United States cite artisan/craft Third Wave coffee brands — often described as having premium flavor through unique roasting and aging methods — as choice influencers, twice as many point to specific sourcing regions as part of the definition to qualify as a Third Wave coffee.

| Progressive Grocer | Ahead of What’s Next | July 2017

70th Annual Consumer Expenditures Study

Sugar by Nature

ugar has become a bogeyman in recent years, as some have linked it to the obesity epidemic in the United States. Americans aren’t readily giving up their sweets, but are instead searching out sugar substitutes. Even those substitutes are struggling a bit, however, with category sales down 3 percent from last year, accounting for $332 million in sales, according to Chicago-based IRI. Some of this could be due to consumer confusion about the different types of sweeteners and how they’re produced. Mintel predicts that the category will remain flat moving forward, with declines in sugar and sweeteners offset by the growth of honey and other plant-based sweeteners. As in much of the food industry, consumers want natural products when it comes to sugar alternatives. Artificial sweeteners containing aspartame and sucralose are in decline, while products like stevia, sold under such brands as SweetLeaf and Whole Earth, are seeing higher sales. In the 12 months ending September 2016, 70 percent of the total new products launched were positioned with some kind of natural claim, according to Chicagobased Mintel, with only marginal differences in the number of consumers who considered agave, coconut sugar or stevia “natural.” Many brands using coconut or palm sugar were sure to call out the ingredients’ pure

Sugar Substitutes comPany

Dollar SaleS

Percent Unit VolUme Percent change (in millionS) change

Heartland Food Products/TC Heart Cumberland Packing Corp. Private Label Cargill Inc. Merisant Wisdom Natural Brands Wholesome Sweeteners Inc. Madhava Natural Sweeteners Whole Earth Sweetener Cso LLC Domino Foods Inc.

$86,055,760

(9.98)%

15,760,784 (9.60)%

66,278,928

(0.80)

17,637,444

60,018,320 52,710,280 14,194,090 11,765,661 11,391,631

(1.58) (0.12) (6.82) 22.14 (1.24)

17,849,696 (2.51) 9,137,888 (1.33) 3,380,489 (8.80) 1,691,939 22.92 1,709,980 1.37

9,732,336

(11.00)

1,717,263 (10.45)

5,760,652

31.75

1,940,788

0.21

3,891,665

(6.25)

1,245,641

(1.38)

(2.96)

Ranked by total U.S. food dollar sales for 52 weeks ending April 16, 2017 Source: IRI, a Chicago-based market research firm (@iriworldwide); Progressive Grocer Market Research, 2017

and natural credentials on the packaging, Mintel notes. Many of these natural sources of sugar alternatives that consumers are turning to are syrups and honey. Plant-based syrups like agave, coconut and honey aren’t necessarily lower in calories than sugar, but many consumers believe them to be minimally processed, as they are naturally produced.

| Progressive Grocer | Ahead of What’s Next | July 2017

Vitamin Sufficiency

lthough the United States is already the largest market for vitamins, minerals and supplements (VMS), according to Chicago-based Mintel, the category has the opportunity to grow sales even further by creating VMS-superfood ingredient mashups to capture those consumers who prefer to get their vitamins through diet alone, clearly enumerating the benefits of VMS products on their packaging, and encouraging usage among younger consumers with products offering such benefits as enhanced beauty, stress reduction or better sleep.

Multivitamins comPany

Dollar SaleS

Percent Unit VolUme Percent change (in millionS) change

Bayer Healthcare LLC Pfizer Inc. Reckitt Benckiser Inc. Private Label Bausch & Lomb Inc. Northwest Natural Products Inc. Pharmavite LLC Nature’s Way Products Inc. Nature Smart LLC Nature’s Bounty (NBTY)

$74,834,168 64,286,840 39,481,228 39,171,080 29,878,246 29,606,212

(1.45)% 1.69 4.65 (1.83) 10.47 8.29

7,724,982 5,990,212 4,721,566 5,833,875 1,371,642 3,005,111

(4.47)% 2.54 2.57 (4.18) 6.76 4.49

23,747,836 15,244,381

16.21 3.71

2,447,085 1,329,847

10.94 4.56

7,212,722 5,550,190

(29.90) (14.03)

1,124,116 (33.40) 796,944 (14.22)

Ranked by total U.S. food dollar sales for 52 weeks ending April 16, 2017 Source: IRI, a Chicago-based market research firm (@iriworldwide); Progressive Grocer Market Research, 2017

Liquid Vitamins/Minerals comPany

Dollar SaleS

Alacer Corp. Neurobrands LLC Nature’s Way Products Inc. Private Label Spectrum Naturals Inc. Kevita Inc. Bragg Live Food Products Inc. Mead Johnson Nutrition Nature’s Bounty (NBTY) Barleans Organic Oils

$42,014,508 11,459,620 5,023,780

Percent Unit VolUme Percent change (in millionS) change 7.93% (3.88) (1.52)

4,685,500 3,894,794 3,871,378 3,244,049

69.68 (3.63) 905.25 86.03

3,155,263 2,905,517 2,481,054

(1.73) 0.13 2.08

5,173,637 5,194,267 418,773

4.14% (3.81) 1.45

1,088,838 80.57 430,134 1.09 1,315,122 955.56 1,149,242 90.08 324,513 354,260 146,679

0.15 (2.25) (0.26)

Ranked by total U.S. food dollar sales for 52 weeks ending April 16, 2017 Source: IRI, a Chicago-based market research firm (@iriworldwide); Progressive Grocer Market Research, 2017

A further issue for many shoppers is the perception that the category is prohibitively expensive, so more budgetconscious items and special offers may be in order. Data from Chicago-based IRI show that private label VMS products lag behind such well-known brands as Nature’s Bounty and Pharmavite’s Nature Made, which snare the highest dollar shares of the mineral supplements and one-and two-letter vitamin segments, while Pfizer’s Centrum Silver edges out private label in the multivitamin segment. This perhaps presents an opportunity for retailers to offer value-priced store-brand alternatives to spur trial among shoppers who normally believe such items are too costly. Also potentially affecting the market is the ongoing debate about which — and how much — dietary supplements, which often feature nebulous, hard-to-prove claims, should be regulated by the government. A definite plus for VMS, however, is the sheer range of delivery systems now available for consumers, especially those averse to swallowing pills: Liquids, gummies, chews, “mints,” strips and quick-dissolve tablets cater to just about every preference, while pleasant flavors can turn the daily chore of taking one’s vitamins into an enjoyable experience. The influx of more of Mintel’s recommended VMS-food hybrids, in the forms of energy shots, candies, powders to mix into drinks or sprinkle on foods, or anything else that human ingenuity can devise, could provide even more choice and so help lift the category to yet greater heights. Growth so far this year has been modest but solid: For the 52 weeks ending April 16, Chicago-based IRI reports a 4.39 percent dollar sales increase to $1.4 billion. PG July 2017 | progressivegrocer.com |

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Omnichannel Marketing

Feature

A Place at the Table FMI’s National Family Meals Month enables retailers to promote togetherness through food. By Bridget Goldschmidt

ational Family Meals Month is gearing up for its third annual observance in 2017, which Susan Borra, chief health and wellness officer and executive director of the FMI Foundation at Food Marketing Institute, anticipates will be “a powerful year for the movement.” The Arlington, Va.-based foundation introduced the concept in 2015, providing resources for grocers and manufacturers to take part. This year’s agenda includes an updated website. “The redesigned site will include toolkit elements for various functions within companies, such as communications, merchandising and marketing departments,” Borra says. “We’ll also highlight case studies from previous years and examples of how food retailers and suppliers made family meals a focus during September. The Participants section of the redesigned website will be a great resource for companies to find partners for offering family meals solutions. Whether a retailer is looking for a supplier to partner with on a family meals promotion or a community partner to work with during September, this list of Participants is designed to be a resource for those looking to do more with National Family Meals Month.” Since it began, Family Meals Month has evolved into what Borra calls “more of an omnichannel effort, with retailers doing more in-store promotion of family meals solutions and expanding their activities while still engaging in an online dialogue about family meals solutions with shoppers via social media.” She adds: “It’s been exciting to see how retailers and suppliers positively responded and creatively folded National Family Meals Month into their existing marketing and merchandising plans. The customizable nature of the program means retailers and suppliers can be flexible in how they participate, and they find that aspect appealing. Some are retooling existing plans to include family meals solutions during September, while others are scaling the program to meet the needs of their customers.”

ShOw OF handS Chef april howell (far right), cooking school coordinator at Martin’s Super Markets’ heritage Square store, in Granger, Ind., has fun with shoppers at a cooking class.

Indeed, as Borra notes: “One of the things that makes this program unique is that participation in National Family Meals Month is free — only requiring the resources you want to put into the campaign for your business. … We’re giving our industry the resources and tools to get started, but the opportunities to expand engagement with the program are there for the taking.”

One of the things that makes this program unique is that participation is free — only Stepping Up to the Plate To see how retailers stand to benefit from National requiring the resources you Family Meals Month, it’s instructive to look at the 2017 strategies of recipients and runners-up in want to put into FMI’s 2016 Gold Plate Award program, which rec- the campaign ognizes those with outstanding initiatives encourfor your aging more family meals at home. business.” “As our Gold Plate Award winners and participants showcase, family meals promotion is becoming a significant part of the food retail strategy,” observes Borra. “With more shoppers looking for easy meal solutions, the grocery store is becoming a go-to resource, and National Family Meals Month is an easy

—Susan Borra, FMI Foundation

July 2017 | progressivegrocer.com |

Feature

What’s cookinG skogen’s Festival Foods RDs (from left) Emily schwartz, Brittany nikolich and Lauren tulig serve as Mealtime Mentors.

Omnichannel Marketing

way for food retailers and suppliers to join this consumer conversation.” “We were able to increase awareness of the resources we offer at Festival Foods to help make family meals a little easier for our shoppers by bringing excitement around Family Meals Month,” says Lauren Tulig, nutrition communications manager at the De Pere, Wis.-based grocer. “In addition, one of our core values at Festival Foods is community involvement. By taking part in Family Meals Month, we were able to make a positive impact on the communities we serve.” While last year, the company strove to remove barriers to regular family meals through an omnichannel campaign encompassing in-store demos and social media, for 2017, Festival will be “focusing more on simple meals that are also affordable,” notes Tulig. “Our emphasis will be on providing digital resources, including how-to videos, Facebook Live broadcasts, and recipe ideas promoted on Instagram, Twitter, Facebook and Pinterest. We’ve seen continued success in educat-

ing our guests on our social media platforms, and we look forward to continuing that success with our Family Meals Month campaign in September.” Abingdon, Va.-based K-VA-T Food Stores Inc. promoted 2016 National Family Meals Month through initiatives that took place in stores, online, on social media, on television and in print, geared toward both customers and associates, with the primary goal of helping families enjoy at least one meal together at home each week.

to support consumers’ growing demand for organic and “better-for-you” www.olemex.com

| Progressive Grocer | Ahead of What’s Next | July 2017

“We had a positive response and engagement from customers and associates, I think due to the universal nature of the theme and benefits of family meals,” says Elizabeth Hall, K-VA-T’s registered dietitian. “Most individuals would agree that more meals together with the people you care about is a good thing for overall emotional health and physical well-being. The message was positive and relatable to the majority of people.” This year, according to Hall, “we plan to continue educating and engaging our customer base and associates on the importance of family meals in an effort to make it easier and more convenient for them to make meals happen. We will continue our programs through online, print and in-store promotions, as well as community events throughout our store footprint. We also hope to tie in our online ordering/curbside pickup option this year in order to make it even easier for customers to plan, purchase and prepare more meals at home.” At South Bend, Ind.-based Martin’s Super Markets, customers learned about the importance of family meals through the grocer’s health-andwellness magazine, took part in fun family mealsfocused cooking classes and were invited to upload

photos of their culinary endeavors for a Raise Your Mitt to Commit family meal-creation campaign on social media, among other efforts. “Looking forward to our 2017 campaign, we look to utilize some of the same successful touchpoints with our customers,” notes Martin’s Health and Wellness Advisor Kristin St. Clair. “We are looking to focus recipe ideas on easyto-prepare one-pot, one-pan and/or one-sheet meals, showing our customers that making meals at home can be easy, with minimal prep and cleanup. We also know our loyal customers love to cook and have some extraordinary talents for creating delicious recipes; thus we will be asking customers to share their complete recipes with us for a chance to be featured in our next Eat Smart. Be Well. magazine.” With such great ideas on deck, it seems that the family meals movement is bound to last for the foreseeable future. “We believe National Family Meals Month will continue to earn national recognition as a vehicle to connect brands with the consumer on a personal level,” asserts Borra. “As a long-term goal, National Family Meals Month will be celebrated all year long, with a special emphasis in September.” PG

Most individuals would agree that more meals together with the people you care about is a good thing for overall emotional health and physical well-being.” —Elizabeth Hall, K-VA-T Food Stores Inc.

July 2017 | progressivegrocer.com |

Snack Easy!

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Back-to-school Season

Grocery

Lunchbox Leaders Retailers, manufacturers reimagine the midday meal for schoolkids. By Bridget Goldschmidt

hen they return to classes this fall, many kids will be taking “Wild Kratts” with them. The popular animated PBS Kids show, which follows the adventures of real-life brothers Chris and Martin Kratt as they encounter a range of wild animals, is the inspiration for a line of products exclusively available at Whole Foods Market during the back-to-school (BTS) season. “Our back-to-school shoppers are definitely looking for convenience and products that will help them get back into a routine,” says Brianna Blanton, senior brand manager for private label products at the Austin, Texas-based natural food grocer, which at press time was being acquired by ecommerce giant Amazon. “They’re also at Whole Foods Market because they want cleaner ingredients and more organic choices. Snack sizes and items that fit easily in a lunchbox are big with shoppers because they make packing lunches or grabbing a snack on the go easier.” Blanton noted that the food retailer was also “providing more organic options and products that are higher in fiber and higher in whole grain content.” Among the lunchbox-ready products in the line are 8-pack juice boxes, white cheddar gluten-free

puffed-corn Scuba Snacks, and whole grain Creature Crackers. Lunchtime noshing is also a high priority for General Mills, which has some new items coming out in response to this ever-more-popular eating pattern, as well as to the big question on parents’ minds when packing foods for their kids to take to school, according to Kelley Walhof, who handles marketing communications for the Minneapolis-based manufacturer: “What can I add to the lunchbox that is fast and easy, and also something my kids will actually like?” General Mills provides several new options. “In the salty snacks aisle, we are seeing a growing trend in multipack offerings – it’s growing at 24 percent,” observes Walhof. “This year, we’ll be introducing a new Gardetto’s Multipack with 10 on-the-go bags inside. We previously introduced this same concept for Chex Mix, and it has seen great momentum. Another new offering we are excited about for back-to-school lunchboxes is a Classic Mix Variety Pack that includes 18 grab-andgo pouches from Chex Mix, Gardetto’s, Bugles and Muddy Buddies.” On the sweeter side, the company has rolled out “new flavors of our Larabar Bites product, which come in a resealable bag, making it a good option for lunchboxes or after-school snacking,” she notes. In the near future, the company, like Whole Foods, will “continue to grow our natural and organic offerings, as we know families are looking for more clean and simple snack options,” says Walhof. As for promotions, General Mills continues to rely on its long-running Box Tops for Education initiative, which, Walhof asserts, “our consumers and retail partners love to get behind. … Through this program, families can earn cash for their schools when they clip the box tops on packages.

Snack sizes and items that fit easily in a lunchbox are big with shoppers because they make packing lunches or grabbing a snack on the go easier.” —Brianna Blanton, Whole Foods Market

July 2017 | progressivegrocer.com |

Grocery

Back-to-school Season

This year, we’ll be adding an IRC on packages with a bonus box top across most of our snack brands, including Chex Mix, Fruit Snacks, Nature Valley and more. We’ll also be promoting our Mott’s Medley’s Fruit Snacks in-store and doing a back-to-school FSI supporting the fruit snacks portfolio.”

What can I add to the lunchbox that is fast and easy, and also Free-from Fare something Along with better-for-you and natural/organic my kids will products, a growing focus in BTS is free-from fare. actually like?” “Many school settings now specify to parents —Kelley Walhof, General Mills

what can and cannot be brought into school cafeterias due to food allergies,” points out Jill Motew, founder of Highland Park, Ill.-based Zemas Madhouse Foods. “As kids head back to school, it’s important for all families to be aware of allergy issues and to understand the rules at their specific school. To ensure parents feel safe and kids are protected, Zemas products are Top 8 Allergen-Free, Non-GMO Project Verified, GFCO and Vegancertified, kosher and made without refined sugar.” This September, the company will launch its line of snack-pack/single-serve cookies. “To gain trial, we will be featuring them at discounted pricing,” notes Motew. “The display will be a floor shipper for the box cookies, which will include a 60-count assorted unit with 15 units of each flavor: Double Chocolate, Sweet Potato Spice, Oatmeal Cranberry and Chocolate Chip.”

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April

May

Going forward, she predicts, “Product displays will be important, and smaller companies that produce better-for-you snacks and treats will need to work closely with grocery stores to get product featured in a display that will attract attention to this growing class of items.” Mary Schulman, founder of, and VP of strategy for, Boulder, Colo.-based based Snikiddy, whose all-natural veggie-based snacks are non-GMO and gluten- and wheat-free, agrees that displays can make the difference for free-from BTS items. “Our display activity in retailers is generally the key driver in making sure that our products are the first ones in the carts when parents shop for back to school,” says Schulman. “We’re also planning an FSI for back to school.” Snikiddy has relaunched its Cheese Puffs, which are now USDA Certified Organic, and revamped its Baked Fries to include 70 percent organic ingredients. “Building on our strength in innovation, we are … launching a new platform that we call Ready When You Are,” notes Michael J. Mendes, CEO of Just Desserts, a San Francisco-based maker of coffee cake bites, brownie bites and other bite flavors in 8-count packaging, as well as a variety of individually packaged cupcakes. “The line includes seven SKUs

of organic and vegan cupcakes and mini cake bites. These desserts and sweet snacks provide families the convenience of smaller-portioned organic, nonGMO or vegan alternatives that can be stored frozen in order to maintain their freshness, which make them ideal for the busy back-to-school season.” In response to findings from McLean, Va.-based Food Allergy Research and Education that food allergies appear to be on the rise, with one in 13 U.S. children affected, the company became a nut-free bakery in June. According to Mendes, Just Desserts’ product innovations, which he describes as “perfectly suited for the back-to-school season,” include a new Sprouted grain bite featuring hard red wheat, purple corn, sorghum, quinoa and amaranth, as well as

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seeds such as sunflower, pumpkin and sesame to add texture and Our display nutrition. The company also uses activity in fruit and honey to help sweeten retailers is the Sprouted product, significantly reducing its added-sugar content.

generally the key driver in making sure that our products are the first ones in the carts when parents shop for back to school.” —Mary Schulman, Snikiddy

Totally Nuts For kids who can have nuts, San Diego-based NuttZo, a maker of organic nut butters also containing nutritious seeds and dark chocolate, provides a convenient shelf-stable item. “Our handy NuttZo 2Go packets are perfect for back to school,” asserts founder and CEO Danielle Dietz-LiVolsi. “We work with our awesome retailers to not only promote these in the nut butter sets, but to also give us space near the bananas and apples for special back-to-school ideas. Kids love to squeeze the 2Gos on bananas, apples, yogurt, oatmeal, crackers, carrots and rice cakes.” The company is interested in “compatible brands/ foods merchandised together to help the consumer make a quick choice, such as NuttZo 2Gos with the

apples or oatmeal cups,” she adds. Further, Dietz-LiVolsi sees single-serve items as a trend with staying power, partly echoing Whole Foods’ Blanton in the observation that “everyone wants the convenience of grabbing one serving size and running out the door.” PG For more about back-to-school lunchbox solutions, visit progressivegrocer.com/btslunchbox.

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Healthier Options

Refrigerated & Frozen Foods

Healthy Halo Better-for-you frozen foods get a boost from innovation, collaboration. By Lynn Petrak

n an ever-competitive environment, retailers feeling the heat can provide their customers with more solutions by going into a deep freeze. Frozen foods, long touted for convenience, have received a lift in recent years from new products geared to health-conscious consumers as manufacturers and retailers work to draw shoppers, including influential Millennials and Baby Boomers, to the frozen food aisle.

Frozen foods remain a staple in many households. Research from Schaumburg, Ill.-based Nielsen shows that total department sales last year were around $52 billion, up a scant but still positive 0.2 percent. A recent consumer panel survey from SupermarketGuru.com found that nearly half of respondents (47 percent) said they use frozen foods in “everyday meal occasions.” The introduction of more frozen foods that fall under the

47%

of respondents said they use frozen foods in “everyday meal occasions.” Source: SupermarketGuru.com

July 2017 | progressivegrocer.com |

Refrigerated & Frozen Foods

Healthier Options

Natural Frozen Products by the Numbers Percent Sales Increase

20%

In natural frozen products, SPINS found that sales of frozen entrées increased 13.5 percent during the last 52 weeks ending May 21, while frozen appetizers and snacks grew 5.4 percent, frozen breakfasts climbed 3.8 percent, frozen fruits and vegetables rose 2.5 percent, and desserts spiked 20 percent. Likewise, SPINS found that sales of organic (defined as 70 percent-plus organic ingredients) frozen foods increased across all segments except frozen juices and beverages and plant-based meat alternatives, while sales of frozen foods labeled gluten-free, non-GMO, vegan and allergen-friendly also were consistently in the black. While some aspects of healthy eating reflect a bit of pendulum swinging, all signs point to health consciousness as a more permanent mindset. According to The Hartman Group’s “Health and Wellness 2017” report, consumers’ engagement with their health and overall wellness is growing, and food companies and retailers must work on marketing those lifestyle aspects to their customers. The Hartman Group, based in Bellevue, Wash., additionally found that today’s grocery stores offer a greater selection of organic and natural options that fit into restricted diets.

13.5%

5.4%

3.8%

2.5%

0 Entrées

Snacks and Appetizers

Breakfast

Fruits and Vegetables

Desserts

Source: SPINS

healthy umbrella has helped reinvigorate the broader category. SPINS, a Chicago based provider of retail consumer insight and analytics reporting for the natural, organic and specialty product industries, reported an uptick in sales across a variety of frozen foods that can be deemed healthy.

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| Progressive Grocer | Ahead of What’s Next | July 2017

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Refrigerated & Frozen Foods

Frozen foods certainly have a huge place in a healthful diet and can be stand-alone meals or part of a multiingredient dish.” —Susan Borra, FMI

Healthier Options

Nutrition in Store According to Susan Borra, chief health and wellness officer and executive director of the FMI Foundation at Food Marketing Institute, in Arlington, Va., frozen foods offer both convenience and nutrition and can feature among a store’s overall health-and-wellness offerings. “Frozen foods certainly have a huge place in a healthful diet and can be stand-alone meals or part of a multi-ingredient dish,” she says. Akin to the idea of frozen ingredients being used to create a meal, the frozen food section can be promoted by the store as just one destination for healthy food choices. “Retailers are looking at how every aisle can play a role,” observes Borra. A store that has a registered dietitian on site, for example, can take customers on store tours and point out choices in every section, including the frozen aisle, and how items can be teamed with other products in the store for a healthy meal. Sarah Glunz, lead nutritionist at Carlisle, Pa.based Giant Food Stores and Martin’s Food Markets, agrees, citing an example of showing shoppers how they can choose lean proteins for inclusion in meals made with frozen ingredients. “When

| Progressive Grocer | Ahead of What’s Next | July 2017

possible, manufacturers should work with retail dietitians to help educate consumers on the versatility of turkey products, encouraging them to highlight frozen turkey products as convenient options in group classes and store tours,” she suggests. As retailers engage in efforts like cross-merchandising frozen foods with center store items and perishables, they can also team up with frozen food companies to convey the health attributes of

those products to consumers. Borra says that such collaborations are win-win. “I think the health-and-wellness nutrition professionals in-store welcome that opportunity — they are helping customers find solutions and want to learn how can they work better together to do that,” she asserts.

Super Bowls and More From a big-picture perspective, category innovation spurs shoppers to take a new look at the frozen case. “New products and packaging help,” agrees Burt Flickinger III, managing director of Strategic Resource Group, in New York. Giselle Restrepo, senior manager of consumer insights and analytics for Schwan’s Co., in Marshall, Minn., points out that new product and packaging inject a different look and, hence, takeaway at the point of sale. “It is important to build loyalty in the category by turning the frozen aisle into a discovery-filled, linger-worthy destination to amplify the entire shopping experience and boost sales,” she says. Many brands have rolled out healthy frozen foods in the past year, spanning appetizers, snacks, entrées, fruits and vegetables, sides, and desserts. For example, riced cauliflower, a darling in many foodie circles, is showing up in the frozen case in products such as Birds Eye’s new riced cauliflower and a new cauliflower-crust pizza from Los Angeles-based Caulipower. Another noteworthy development is the rollout of more bowls and skillet meals that are in line with consumers’ healthy eating habits. “Bowls are great with Millennials, because they can eat it at their desk or in a chair, if they’re also busy streaming media,” notes Flickinger. The Healthy Choice line, from Chicago-based Conagra Brands, recently introduced Power Bowls in bold Adobo Chicken, Korean-Inspired Beef, Cuban-Inspired Pork, and Chicken Sausage and Barley flavors. “Every Power Bowl is made with an intentional combination of whole grains, mixed

greens, vegetables and natural proteins, catering to people living an active lifestyle,” explains Alan Brooks, associate brand manager. The Kashi brand, which has made significant inroads in frozen, has also delved into the segment, with a series of new plant-based Entrée bowls, inspired by Mediterranean and Asian flavors. Varieties include Pesto Chickpea Quinoa. Fire Roasted Quinoa, Creamy Cashew and Coconut Lemongrass Rice. Skillet-style frozen foods also appeal to consumers who want some ownership along with their convenience, value and health. To that end, Conagra recently rolled out a Frontera line of skillet meals, along with taco bowls, featuring authentic Mexican sauces. Other newer entrées considered healthy are updates of favorites, such as Turkey and Uncured Bacon Cottage Pie and Turkey Shepherd’s Pie from Concord, N.H.-based Blake’s All Natural Foods, and new items from Nestlé’s venerable Lean Cuisine brand, including a Southwest style Potato Bake made with organic and non-GMO ingredients.

Selling Wellness Packaging, including format and graphics, is pivotal in positioning healthy frozen foods as something different in the category. At Schwan’s, for example, the line of Pagoda Asian Snacks was updated to include new packaging with callouts on the front and back noting that the product contains no MSG, trans fats, artificial flavors, certified dyes or high-fructose corn syrup. “Also, improved product imagery appeals to the appetite and creates brand recognition across product lines,” adds Restrepo. Along with product innovation, Flickinger underscores the impact of using technology to connect with customers, particularly Millennials, who may not be regulars in the supermarket’s frozen food section. “Social media with digital is important, and it helps you to localize it,” he says. Digital coupons are another tool to attract customers to take a fresh look at healthier frozen foods, he adds. Finally, retailers and manufacturers can take advantage of programs offered by industry organizations, including the National Frozen & Refrigerated Foods Association (NFRA) and the American Frozen Food Institute (AFFI). Harrisburg, Pa.-based NFRA’s It’s Real Food … Just Frozen promotion is a national program offering digital coupons, a media campaign and recipes for TV segments or blog posts, among other elements. McLean, Va.-based AFFI spearheads efforts for consumers to “rethink frozen” in communications programs and outreach to supermarket dietitians. PG

Manufacturers should work with retail dietitians to help educate consumers on the versatility of turkey products, encouraging them to highlight frozen turkey products as convenient options in group classes and store tours.” —Sarah Glunz, Giant/Martin’s

July 2017 | progressivegrocer.com |

Fresh Food

Produce

Mini Meal

Masters

Grocers promote produce-rich snacks and healthful lunches for back to school. By Jennifer Strailey

| Progressive Grocer | Ahead of What’s Next | July 2017

ack to school spells smarter snacking at ShopRite stores throughout the Northeast this fall. As a continuation of its recently launched Well Everyday program, the banner will kick off its next health-and-wellness initiative, featuring a Smart Snacking theme, on Sept. 10. “We’ll be sharing easy, fun and nutritious ideas for those super-important mini meals,” says Natalie MenzaCrowe, director of health and wellness at ShopRite. “We’ll also be featuring ideas for after-school snacks and portable pack-and-go snacks that are perfect for school sports and activities.” Well Everyday is an in-store messaging program aimed at highlighting better food choices and helping customers take small steps toward better nutrition. Each Well Everyday campaign includes eye-catching aisle visuals focused on promoting nutritious options. ShopRite, a registered trademark of Keasbey, N.J.-based retailer-owned cooperative Wakefern Food Corp., plans to refresh the campaign every four to six weeks throughout its stores. In its 139 stores that are staffed with dietitians, ShopRite also appeals to kids and their families through cooking classes, product samplings and store tours focused on healthy eating. “Our topics vary from healthy lunchbox ideas, to weeknight dinner ideas, and even quick and healthy breakfast options,” explains MenzaCrowe. “We also leverage our circular and social media assets to share easy dinner recipes, ‘produce picks’ of the week, and tips on how to build a better lunchbox.” ShopRite’s back-to-school nutritional campaigns that tackle lunchboxes and simple, healthful dinner ideas are resonating with customers. “Last year, we featured a Build a Better Lunchbox series online and in our circular, which received a tremendous amount of positive customer feedback,” she affirms. ShopRite’s retail dietitians supported the program with in-store events and demos. Online images and videos showed consumers how to pack healthful snack boxes, taco

salads and more. ShopRite also recently launched an in-store meal cart program in which all of the ingredients for a healthy, easy dinner are cross-merchandised each week. “It makes weeknight meals a snap,” asserts Menza-Crowe. In a separate initiative — but one that will undoubtedly appeal to families shopping for wholesome foods — ShopRite has expanded its Locally Grown program. The grocer offers a variety of products, from farmraised beef to eggs to fresh fruits and vegetables, from family-owned farms in New Jersey, Pennsylvania, Maryland, Delaware and upstate New York.

Fun With Fruit In-store dietitians can be a critically important resource in helping to make fresh produce consumption fun for kids and their families this back-toschool season and beyond.

This fall, the apple and pear experts at Wenatchee, Wash.based Stemilt Growers will work with in-store dietitians and nutritionists to create social media programs designed to promote produce for school lunches. “Stemilt is featuring a big promotion on its Lil Snapper kid-sized apple brand for back to school,” affirms Roger Pepperl, Stemilt’s marketing director. In addition to social media, the promotion of Lil Snapper Red Starkrimson pears, Bartlett pears, Tosca pears and Gala apples will focus on produce department display contests and school giveaways. “This is a fun way to promote produce for school lunches,” notes Pepperl, who adds that organic Lil Snappers will also be featured. Recipe suggestions are another valuable tool in encouraging kids to eat fruits and vegetables as after-school snacks. “We have kids’ recipes that were created by our

NON GMO Project VERIFIED nongmoproject.org

July 2017 | progressivegrocer.com |

Fresh Food

In fact, when kids see favorite characters promoting fruit and vegetable consumption, they are more likely to choose fruits and vegetables themselves.” —Bil Goldfield, Dole

Produce

food influencers and Kitchen Council at Stemilt that make eating fruit fun and imaginative,” notes Pepperl. “Cutting the fruit in shapes and using items like peanut butter and other ingredients to create flavors is a great exercise.” Colorful displays are imperative to the success of produce promotions designed to attract the attention of children and their families, he adds. Stemilt offers high-graphic boxes and display bins, as well as display contests to help retailers showcase fruit snacking. “Parents are looking for convenient, nutritious foods for their families, and one of their biggest challenges is kids’ resistance to eating more fruits and veggies,” observes Bil Goldfield, director, corporate communications for the Dole Food Co., in Westlake Village, Calif. Through its collaboration with Disney Consumer Products and Interactive Media (DCPI), Dole is aiming to make healthy living fun. The program includes the launch of a new assortment of Disneybranded Dole fresh produce. “Research shows that favorite characters have a tremendous influence on acceptance and behavior among children,” notes Goldfield. “In fact, when kids see favorite characters promoting fruit and vegetable consumption, they are more likely to choose fruits and vegetables themselves.” Earlier this year, Dole and Disney launched the first of three “Beauty and the Beast”-themed healthy-living initiatives planned for 2017 that feature consumer promotions, custom digital content, character-inspired recipes, healthy-living tips and in-store retailer display contests. Soccer moms and dads know that citrus is a sideline staple at games and practices. Sunkist Growers, in Valencia, Calif., offers soccer-themed 10-pound consumer cartons that draw the attention of teams and families in-store. “Juicy, delicious and packed with vitamin C, Sunkist Valencias make an excellent addition to lunches or a sideline snack,” says Joan Wickham, who adds that Sunkist grapefruit is also in season during the fall. “This nutritious fruit is a fantastic way to start the day — juiced or eaten,” notes Wickham. “Breakfast is, of course, so important for families managing the back-to-school rush, and with 100 percent of your daily vitamin C per serving, grapefruit helps keep families energized and healthy during this busy time of year.”

Online Education Last month’s historic announcement that Amazon will buy Austin, Texas-based Whole Foods Market for $13.7 billion will forever change the grocery business. As a result, supermarket retailers will

| Progressive Grocer | Ahead of What’s Next | July 2017

undoubtedly be taking a closer at their online shopping and home delivery programs. Grand Rapids, Mich.-based Meijer, which last year began offering groceries through its official home delivery partner, Birmingham, Ala.-based Shipt, invites customers to sign up for the membership-based app and shop 55,000 items, including fresh produce, every day. The home delivery service is rolling out across Meijer’s six-state Midwestern footprint. This year, Produce for Kids (PFK) has joined forces with the grocer to bring the Jump with Jill nutrition education program to schools in communities that Meijer serves. The campaign features new digital elements designed to reach the growing segment of grocery delivery shoppers and digital coupon users through Shipt and the Meijer mPerks program. During the PFK campaign, Meijer shoppers using Shipt can identify produce sponsors in a dedicated inapp category. The callout is designed to drive sales of campaign partner products through the Shipt app and provide additional consumer exposure during the campaign. “With the growing number of shoppers using grocery delivery services, it’s important that Produce for Kids’ campaigns evolve along with the shopper,” says Trish James, VP of Orlando, Fla.-based PFK. Through its partnership with PFK, Meijer and the campaign’s fruit and vegetable company partners have raised more than $1.2 million to benefit children’s charities.

Powerful Lunchboxes Next month, PFK will launch its fourth annual Power Your Lunchbox initiative. This year’s campaign, which runs Aug. 7 through Sept. 22, will raise money to support Feeding America programs that benefit families and children. New to this year’s campaign, PFK is working with Eric Carle, the author of beloved children’s storybook “The Very Hungry Caterpillar,” to promote healthful lunches and reading. The campaign also features several new sponsors, including Harvest Snaps, from Boardman, Ore.-based Calbee North America, and Zespri kiwifruit from New Zealand.

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July 2017 | progressivegrocer.com |

Fresh Food

Produce

“While the campaign does not have an in-store component like our other targeted retail campaigns, we are working with Harvest Snaps to implement Power Your Lunchbox artwork to their packaging during the timeframe of the campaign,” says Amanda Keefer, PFK’s director of marketing communications. Several partners are also offering coupons on PowerYourLunchbox.com.

We’ll be sharing easy, fun and nutritious ideas for those superimportant mini meals.” —Natalie Menza-Crowe, ShopRite

Mealtime Made Easy Beyond healthful lunches, families are looking for quick tips to make nutritious meals throughout the day. The growth in salad- and producebased meal kits means an abundance of convenient and fresh lunch and dinner prep during the hectic school year. This September, Ready Pac Foods, of Irwindale, Calif., a wholly owned subsidiary of Bonduelle, will expand into the growing fresh meal category with the introduction of the Fresh Prep’d brand of fresh meals, including Fresh Prep’d Soup Kits and Fresh Prep’d Wrap Kits. According to Ready Pac, over the past year, the fresh prepared meal category has increased 8.9 percent, making it an $8.3 billion category – one that’s

| Progressive AheadAd.indd of What’s PSF Prog Groc - BBQ BLOOMERGrocer 2017 1/2 pg| horizontal 1

Next | July 2017

growing more than twice the total of the food and beverage category in the United States. “In developing the Fresh Prep’d brand, we wanted to create an easy alternative to lackluster desk lunches and unhealthy fast food,” explains Ready Pac Foods CMO Galit Feinreich. “With more than 75 percent of households in the U.S. purchasing fresh prepared foods, our Fresh Prep’d options enable consumers to have a delicious, healthy and convenient meal at a great value.” Prepared by the consumer right before consumption, Fresh Prep’d Soup Kits feature flavorful broths, on-trend ingredient combinations and fresh vegetables that maintain their flavor and crisp texture. The Fresh Prep’d Wrap Kits, meanwhile, offer high-quality ingredients, bold sauces and vegetables. Consumers assemble their wraps right before mealtime for a fresh and never soggy experience. PG

4/13/17 1:10 PM

Health, Beauty & Wellness

Nonfoods

Play to Win Spotlighting supplements for young athletes gives grocers the chance to differentiate — and profit. By Barbara Sax

he start of a new school year means a headlong dive into sports for many families. A heightened focus on training can mean an uptick in supplement sales as young athletes try to balance their nutritional needs with their busy schedules. Young athletes need slightly more protein than kids who aren’t athletes. According to the Academy of Nutrition and Dietetics, protein needs are based on age, gender and body weight, with young athletes needing about 0.5 to 0.8 grams of protein for every pound of body weight, versus the 0.4 to 0.5 grams of protein per pound of body weight needed for nonathletes. The Chicago-based organization and most nutritionists recommend that young athletes meet their protein needs through food. “Young athletes can get all the nutrition they need from a well-balanced eating plan,” advises Molly Morgan, RD, CDN, CSSD, an upstate New York-based dietitian who specializes in sports nutrition and works with professional athletes. “Clearly, the body needs protein to build muscle, but with education, young athletes can make the right choices without using supplements.” Morgan admits that’s easier said than done for teens with limited eating patterns and tight schedules. “Some young athletes may need to consider supplementing with unfiltered milk or supplemented milk products,” she says, recommending Fairlife and Organic Valley products.

Fueling Performance Organic Valley’s Fuel, an organic milk-based protein shake that contains whey and casein, is a product young athletes and their parents can understand. “Fuel is made with totally clean ingredients, which is important to parents, and is convenient and shelf-stable,” asserts Heidi Wolle, associate brand manager at La Farge, Wis.-based Organic Valley. Bohemia, N.Y.-based Nature’s Bounty markets milk-based protein shakes under its MET-Rx brand that young athletes can use to boost their performance. “Our high-protein shakes are made with no artificial preservatives or flavors, and are designed to be July 2017 | progressivegrocer.com |

Nonfoods

Health, Beauty & Wellness

use pre-, post- and during activities to help young athletes prepare, perform and recover,” says John Frame, VP of the MET-Rx brand. MET-Rx also markets a Big 100 meal replacement bar that can help busy young athletes replenish protein, carbs, vitamins and minerals, and the brand recently introduced a brownie in two flavors, chocolate chip and blondie, as a new-delivery refueling system. “We’re providing tools for young athletes as well as educating them and their parents with one-on-one discussions through our brand ambassadors at football, soccer and lacrosse events, where we are sampling product and providing education about our brand,” says Frame. Although Morgan never recommends ultrahigh protein bars for young athletes, she thinks that bars can be a good way to boost calories and energy for kids on the go, noting that they “can be great for busy families. Clif bars are easily digestible, contain whole grains and have tons of flavors, and Kind bars are a good choice as well.”

Protein supplements are a growing category for us, and we see some seasonality to the category, as players try to bulk up when they are having two practices a day.” —Alan Davis, SpartanNash

Supplemental Advice Fish and flax oils are supplements that Morgan recommends to young athletes. “Omega 3 oils help with inflammation and recovery, so they can be an important supplement on and off the field,” she points out. Research suggests that omega 3 oils can improve muscle function, increase oxygen delivery during exercise and enhance overall athletic performance. “Our omega 3 products are naturally higher in EPA [eicosapentaenoic acid] and are great maintenance formulas supporting a healthy inflammatory response for sports and athletes,” says Debbie Drecksel, an educator at Watsonville, Calif.-based Nordic Naturals. She adds that EPA helps fight inflammation created in the body during sports or workouts. Morgan cautions, however, that with any supplement, “some is good; more is not better,” For instance, she notes, “Too much fish oil can cause the blood to thin too much and cause nosebleeds and bruising, so I advise my clients to stick to the recommended dose.”

| Progressive Grocer | Ahead of What’s Next | July 2017

Most nutritionists don’t recommend energy supplements for kids or teens. “Energy drinks and caffeine do not have a place in their routine, even for teen athletes,” says Morgan. “The American Academy of Pediatrics recommends that adolescents age 12 to 18 should not consume more than 100 milligrams of caffeine per day — one cup of coffee has 130 milligrams of caffeine. Children should not consume caffeine at all.” Side effects from caffeine can range from insomnia to irritability to more serious health issues like irregular heartbeat, blood pressure changes and even death. Energy drink additives like guarana, a plant-based stimulant, and taurine, an amino acid, are also a concern for Morgan, since they aren’t tested on children.

Trusted Sources Morgan, who has worked with supermarket retailers on sports nutrition educational programs, thinks that grocers with nutritionists and pharmacists on staff can serve as a trusted information source for parents of young athletes, particularly when it comes to a category rife with questionable claims. Becoming a reliable resource for information can differentiate supermarkets from other channels. A study published by the journal Pediatrics found that more than twothirds of sales attendants in vitamin stores nationwide recommended the sports supplement creatine to a caller who claimed to be a teen athlete. The recommendation contradicts advice from the American Academy of Pediatrics and the American College of Sports Medicine that people under 18 not use creatine. The study also found that nearly 10 percent of sales attendants recommended a testosterone booster to the caller, although medical experts believe that this, too, could be harmful for teens. “Supermarkets have a huge opportunity to connect with consumers,” says Morgan. She suggests creating a top sheet listing 10 items that should be in the baskets of parents of young athletes, including cheese sticks, unfiltered milk and protein bars. Alan Davis, buyer for Grand Rapids, Mich.-based SpartanNash, which operates 97 stores

under the Family Fare Supermarkets and Glen’s Markets banners, says that his stores have only carried one gummy vitamin specifically targeted to teens, although he sees sales of protein supplements spike seasonally during football practice season and high school sports training. “Protein supplements are a growing category for us, and we see some seasonality to the category, as players try to bulk up when they are having two practices a day,” he says. “That could also be attributed to older athletes preparing for triathlons.” Davis adds that his stores promote the category at the end of summer, when there’s heightened sales activity. “We promote online, in circulars and instore using shelf tags,” he says. Carrie Kramer, HBC buyer at Houston-based Fiesta Mart, which operates about 60 stores in Texas, says that pea and hemp protein boosters are outperforming whey products in her stores. She

also sees an uptick in coconut oil being used as a protein additive to foods. “The beauty of Texas is that kids can do sports yearround, so these products sell all year,” she notes. According to Kramer, she hasn’t created a specific teen section and isn’t marketing those products in any specific way to teens, although she hopes that a recent change in suppliers will allow her to bring more teen-specific products into stores. The chain had previously used a newsletter targeted to specific consumer ZIP codes to educate customers about natural and organic wellness products. “We’re redesigning our website,” she says, “and hopefully we can use that as a tool to educate consumers about supplements.” PG

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Technology

Apps

The Perks of Being an App User Mobile pay adoption is small in grocery, but the right incentives can grab consumers’ interest. By Randy Hofbauer

Pay and Go Utah grocer Macey’s offers freedom and convenience through its Skip Checkout mobile app, which lets shoppers scan items with their smartphones, place them in their carts, pay with a linked card or mobile wallet app, and exit via a dedicated checkout lane.

oday, more consumers are spending via mobile payment platforms than they were just a few years ago. These platforms, in return, are benefiting retailers, which are using them for differentiation, gathering shopper data and even increasing operational efficiency. Still, many consumers haven’t adopted these platforms. At grocers today, every $1 of $148 spent at the point of sale is from a mobile wallet, according to transaction data from Charlotte, N.C.-based Bank of America. And while mobile wallets continue to enjoy wider acceptance and use, growth has slowed: In grocery, mobile wallet spend increased 73 percent in quarter one of 2017 compared with quarter one of 2016, but was still down 200 points from the same period in 2015. The technology is there. But while some consumers are adopting it, many others show reluctance. What’s causing this, and how can food retailers respond to encourage adoption?

| Progressive Grocer | Ahead of What’s Next | July 2017

Clear Convenience Understandably, the biggest reason for consumers to adopt — and retailers to push — mobile payment apps is faster, more convenient checkout. Grocers need to communicate this benefit, especially as EMV chip-reading technology gets wider use: Some 37 percent of respondents to a survey from San Franciscobased mobile payment solutions provider Square Inc. listed slow lines and checkouts as their No. 1 pain point regarding chip-card technology. Bentonville, Ark.-based Wal-Mart Stores Inc. is one food retailer speeding up the process. With its Walmart Pay platform, users simply scan a QR code made at checkout for a transaction, and payment is processed via the app, which is connected to a person’s credit or debit card. Payments generally are processed faster than those from a credit card, and the need for paper receipts is eliminated. Some grocers are integrating mobile payment platforms with scanning technology to help eliminate checkout lines altogether and make the process faster still. In May, Salt Lake City-based grocer Macey’s introduced Skip Checkout, an app that lets Macey’s shoppers simply scan their items as they’re placed in the cart. Users pay for the purchase directly from their phones, using a linked debit or credit card, or the Apple Pay or Android Pay mobile wallet apps, and then bag and exit via a dedicated checkout lane. Peace of mind is another convenience that grocers should communicate: Some 58 percent of respondents to a 2016 study from Montreal-based marketing and loyalty analytics company Aimia said that they’re unlikely to use a digital wallet, with 56 percent of that number citing data security as a concern. However, experts argue that mobile payment platforms actually include several features that stop fraud in its tracks. For example, a unique series of numbers is assigned to each virtual credit card stored within a mobile wallet, according to Chris

Higher-End Grocers Benefit More from Mobile Wallets Francis, VP of market development at Worldpay US, an Atlanta-based provider of paymentprocessing technology. This ensures that even if a merchant’s transaction is compromised, a customer’s actual card number stays out of fraudsters’ hands.

Added Incentives But even when ensuring faster, more secure checkout, additional incentives — such as redeemable points or rebates — will increase the likelihood of mobile payment platform adoption, giving shoppers a reason to return to a specific grocer rather than go to a competitor. “Ibotta has conducted individual retailer analyses suggesting that for the largest grocers, the benefit of consumer retention via this bounceback behavior can easily exceed $1 billion annually via incremental trips,” stresses Kane McCord, COO of Denverbased Ibotta, which provides its namesake smartphone app that offers cash back on retail purchases. He adds, “If retailers were to create rebate platforms within their own mobile apps and payment platforms, consumers would be much more interested in adopting those platforms.” Though not a grocer, coffeehouse chain Starbucks offers one of the best examples of a mobile solution with incentives that its users crave, which grocers can take as inspiration. Starbucks’ namesake app allows customers to place orders, make payments, collect points, and then redeem those points for awards. It’s been a major hit for the Seattle-based chain, says Erin Raese, Aimia SVP of customer loyalty. “In fact, according to its quarter-one 2017 financial results, the company reported that consumers added $2.1 billion to Starbucks cards in the U.S. and Canada — a 15 percent increase year over year — and transactions on Starbucks cards accounted for 40 percent of company-operated transactions in the U.S.,” she explains. “Mobile payment alone accounted for 27 percent of U.S. company-operated transactions.” The Walgreen Co., too, might not be a grocer, but it introduced loyalty incentives to its mobile pay platform in a way that grocers could adopt. In 2015, the Deerfield, Ill.-based drug store chain announced that in addition to being able to easily pay for purchases through Apple Pay, members of the Walgreens Balance Rewards loyalty program were finally able to seamlessly earn and redeem loyalty points through the wallet app on their iPhone or Apple Watch. Raese points out that this introduction marked the first from a U.S. retailer to integrate its customer rewards platform with Apple’s mobile payment service. Coupons also can make a nice incentive when added to mobile payment platforms. When the Softcard Mobile Wallet launched in 2013, for instance, some food retailers — most notably Austin, Texasbased Whole Foods Market — adopted SmartTap

Although the overall grocery channel is seeing a rise in mobile wallet usage, the high-end sector is seeing the greatest amount of adoption, transaction data from Charlotte, N.C.-based Bank of America reveals. At high-end operators, consumers spent $26 swiping or inserting their cards at the point of sale for every $1 spent using a mobile wallet. This compares with $203 and $673 for every $1 spent at massmarket retailers and club stores, respectively. However, all three channels have continued to see growth in mobile wallet usage, albeit at different rates from one another (and more slowly than the previous year). In the first quarter of 2017, high-end grocers saw mobile wallet spend rise 34 percent compared with the same period in 2016, while mass-market retailers and club stores saw theirs increase 124 percent and 55 percent, respectively.

technology, which allowed users to “clip” digital coupons, add them to a digital wallet, and then present them at checkout with a tap of their phone. When Google purchased Softcard, the technology’s momentum was lost for a time, following its incorporation into Android Pay, notes Yale Vinson, technical product manager for Blackhawk Network, a Pleasanton, Calif.-based digital payment solutions provider. However, several grocers now are looking into bringing SmartTap to market in the near future.

Educate to Adopt Of course, even if a mobile payment platform has all of the bells and whistles needed to draw consumers’ interest, it simply might not get adopted due to lack of visibility — or the knowledge that such platforms exist in the first place. A recent survey from Tampa, Fla.-based mobile solutions provider Syniverse showed that one-third of U.S. and U.K. respondents don’t even know what a mobile wallet is, even though it’s available on 99 percent of smartphones today. This is where the responsibility is on grocers to market programs and let shoppers know what mobile payment platforms are and which ones are available at their stores. Lisa Paccione, VP of enterprise sales at Syniverse, notes that marketers first must create awareness of a brand’s wallet offering and educate consumers by enticing them to begin taking advantage of the wallet’s benefits. Once a wallet app has been downloaded, brands can keep users from forgetting about or deleting them by sending location- or time-based alerts directly to a customer’s lock screen, helping drive in-store traffic and keeping the brand top of mind. Additionally, communication at checkout regarding what platforms are supported is key, says Morgan McAlenney, SVP, digital with Lakewood, Colo.-based commerce agency The Integer Group. “Is this a chip-reader device? Do I swipe the card or does the checkout person? Can I wave my phone to purchase? Can I use cash here? What about all these coupons I have?” she asks. “There is a signage opportunity for retailers to help grease the skids.” PG

If retailers were to create rebate platforms within their own mobile apps and payment platforms, consumers would be much more interested in adopting those platforms.” — Kane McCord, Ibotta

July 2017 | progressivegrocer.com |

Supply Chain

Best Practices

Easy Sell Supply chain execs will soon have a new resource to help them better manage unsaleable products. By Jenny McTaggart

ented soup cans, expired salad dressing and discontinued candy bars certainly aren’t supermarket sex symbols — but they’re the stars of a new educational tool being developed by the Food Marketing Institute/Grocery Manufacturers Association Trading Partner Alliance (TPA), with the help of supply chain services provider CHEP. Officially known as “unsaleable consumer goods,” these misfit products aren’t a new problem, but up until now, much of the industry’s focus has been on accounting for them, instead of finding ways to reduce them. One highly cited figure from a 2008 Deloitte study estimated that unsaleables cost the industry at least $15 billion annually. With the new online educational platform, which was unveiled earlier this year and is expected to go live in the fall, TPA and CHEP hope to create a

| Progressive Grocer | Ahead of What’s Next | July 2017

centralized resource for employees across all areas of the industry, encompassing various supply chain functions, to learn the basics of what unsaleables are — the different types and key drivers — as well as best practices that can lead to their reduction. “Not only are unsaleables a large problem, they’re a persistent problem,” notes Ben Eugrin, director of supply chain solutions, North America, for Atlantabased CHEP, the research partner helping TPA’s Joint Industry Unsaleables Leadership Team. “While there’s been a lot of work done in the past several decades, with this initiative, we’re taking a look at how to reduce the amount of unsaleables in all categories, including expired, discontinued and damaged.” The platform will be particularly useful for people who are new to the industry, he observes. “A large number of people are retiring or moving on to new roles in their companies,” explains Eugrin, “so we hope to enable new people to get onboarded and understand the process so that they can have an impact, and enable them to get their organizations, as well as their partner organizations, up to speed.” In addition, the platform’s launch will serve as an important tool to help suppliers and retailers better work together in combating unsaleables, according to Daniel Triot, senior director of TPA. After all, “Cooperation unsaleables don’t between retailers fall into one speand manufacturers cific department or needs to take place function, at either with a different the manufacturer or function.” retail level. —Daniel Triot, “One of the Trading Partner Alliance challenges with unsaleables is that they aren’t necessarily captured in the same function,” says Triot. “If you look at discontinued products, for example, which may become unsaleable, that responsibility really falls under the

Supply Chain

Best Practices

buyer, the category manager. But if it’s a product with physical damage or an expired item, that would fall under the logistics or supply chain operations person at the retailer, and the same goes for the manufacturer. So at the end of the day, cooperation between retailers and manufacturers needs to take place with a different function.”

key theme we found and something we tried to highlight during our presentation at the conference.” The second-leading best practice, which also requires good communication between all trading partners, is the effective management of discontinued items. During the presentation, SpartanNash’s Riggs urged companies to take a more strategic approach, ensuring that all of their systems are updated to reflect discontinuation changes and employing a markdown schedule with discounts. Last but not least, H-E-B’s Lechner talked about using UPC-level data to reduce unsaleables. Among his suggestions to retailers were to “utilize robust systems to collect UPC-level unsaleables, share data with suppliers, hold high-damage items for review by the supplier and packaging team, support reclaim audits, and review internal handling practices.”

3 Top Solutions CHEP’s research, which included in-depth interviews with retailer and manufacturer supply chain experts, identified 48 strategies being used to reduce unsaleable goods and generate cost savings. The strategies represented multiple functions, including warehousing, shipping and receiving, sales, merchandising, and reverse logistics. The only categories that weren’t included were fresh produce, fresh meat and direct “We’re taking a store delivery (although Triot notes look at how to that he’d love to include research on A ‘Living Document’ reduce the amount fresh categories in the future). Once the educational platform is of unsaleables CHEP presented its research unveiled in the fall, users will find a in all categories, during TPA’s annual Supply Chain plethora of data, including an overall including expired, Conference in May, and highlighted definition of unsaleables, a glossary what research participants ranked of terms, and a further discussion discontinued and as the three most effective solutions: of best practices. It will also feature damaged.” enhanced shelf-life management, a prioritization graph, as well as a —Ben Eugrin, CHEP effective management of discontinwhite paper on “Unsaleables 101.” ued items, and sharing of UPC-level Ultimately, this will be a “livdata. CHEP’s Eugrin and Mike ing document,” points out Eugrin. Boersig, manager, supply chain “Everyone will have the ability solutions, were joined by Rob Shifter, to contribute and add to it as we Nestlé supply chain manager; Greg move forward.” Riggs, SpartanNash senior supply The content will go beyond chain analyst; and Ted Lechner, a digital platform, adds Triot. H-E-B senior reverse logistics “We’re thinking of the word leader, to discuss these solutions. ‘platform’ not only as a website, The first solution, managing but also as documents that people shelf life throughout the supply can download, along with webinars chain, includes understanding how and educational sessions,” he says, much shelf life is left and managing that in going on to note, “As part of education, your data streams and the way you manage your we want to raise the awareness of what we’re inventory, explains Eugrin. working on, and also get more people to conAdds Boersig: “Factoring in the shelf life at the tribute more to what we’re doing.” time of sale and the time of shipment is one of the If the initial response to the topic during the big ones that was thought to have a high impact. TPA conference is any indication, many folks in the Both retailers and manufacturers agreed that that industry will be eager to get on board with collaborahas a high impact. But the manufacturers thought tive efforts to tackle unsaleables. “We noticed a lot of that they were using that practice a little more than interaction during our presentation — a lot of people the retailers thought they were using that practice.” wanted to talk to their trading partners about this, Boersig, who oversaw the research, says he purespecially how to work with some of their smaller supposely structured the study to uncover differences pliers,” says Eugrin. “It was a huge win for the effort, in perception among retailers and manufacturers, as and that’s really what we wanted to get out of this.” PG well as which strategies were viewed as being used most frequently. For the latest industry perspective As Eugrin observes, “This points to an incredible regarding on-shelf availability,visit opportunity to increase collaboration and work on progressivegrocer.com/onshelfavailability. this together, which is probably the most important

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| Progressive Grocer | Ahead of What’s Next | July 2017

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Equipment & Design

Shopping Carts

Steering Into

Tomorrow The shopping carts of the future will be both high-tech and traditional. By Bob Ingram

hat familiar clang in the cart corrals of today’s supermarkets, as familiar as “paper or plastic” has become to shoppers, will be made in the future by a new generation of shopping carts, some familiar and others still on the drawing board. Case in point: Walmart has more shopping carts than any entity on the planet, so it should come as no surprise that the Bentonville, Ark.based mega-retailer has recently secured a patent for its own shopping cart of the future. While Walmart didn’t return requests from Progressive Grocer for comment on the cart, technology website SlashGear.com reports that the patent is for an autonomous system that wouldn’t require the traditional carts themselves to be replaced. Instead, a small robotic device, visually similar to a robotic home vacuum cleaner, is attached to existing manually operated carts. The device is intended to fetch the cart from the corral, after which the customer could then take control of the shopping cart or could, alternatively, have the robotic device continue to power it for them. When the robotic device gets to a cart, it slides itself under the front and attaches itself to the rails on the bottom of the cart, and then essentially serves as a motor, intelligently driving the cart to the customer. If the customer doesn’t want the device’s aid any more, it will detach from the cart and steer itself back to its base, being careful not to run afoul of shoppers.

olD school The c-series Group from Versacart systems is among the 50 traditional carts the company makes.

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| Progressive Grocer | Ahead of What’s Next | July 2017

The circular device would be powered by a central system, enabling the robot to find the customer — regardless of where they are in the store — and bring them a cart. The patent suggests that this could be accomplished by using a physical button device in the Walmart store or by using a Walmart mobile app. “I think it’s great that Walmart is moving in the direction of IP [internet protocol] in this way,” says Sucharita Mulpuru, chief retail strategist for New York-based event organizer Shoptalk. “That’s taking a page from great innovators like Amazon.” Mulpuru cautions, however: “Patents don’t say anything other than that someone thought it was an interesting idea. Most of these patents are never realistically scalable or functional. Until we see a beta [version] in a market and it is transformational to shopping, it’s too premature to say it will transform shopping. But what I do think it says is: ‘Hey, Walmart is not a dinosaur. This is a company that will be formidable in retail for years to come.’”

Global Innovation Another shopping cart patent has been issued to Mordag Design, in Istanbul, Turkey, which bills itself as “the Studio of Rational Art.” The firm’s Z-Cart is a futuristic “expandable, rechargeable mobilized shopping cart,” according to the company’s president, Meta A. Mordag. Z-Cart is designed to enable rapid shopping, especially in large supermarkets, Mordag says. The main body, which can hold removable baskets and bags in different sizes, can also be expanded when needed. An optional rechargeable scooter can be integrated into the main body, allowing the shopping cart to carry the user. Designed for relaxed and rapid use, the scooter system carries the user in a standing position. According to Mordag, it ensures a safe ride within the store by using infrared

distance detectors on its front and rear. The patented product placement system in a Z-Cart allows the user to group products as they’re taken from the shelf. The system also enables the use of different-size shopping bags. With the help of the removable shopping baskets, Mordag says, people shopping together can collect products from different parts of the market and place them on the same Z-Cart. Meanwhile, in Brazil, Hellmann’s, a brand of global food giant Unilever, has trialed shopping carts enabled with near field communication (NFC) technology that texts recipe ideas including products in nearby aisles to shoppers browsing with jars of Hellmann’s mayonnaise already in their carts. The NFC tags embedded in the carts, the products and the shelves detect where the shoppers are in the store and display recipe suggestions related to the ingredients within their proximity. If shoppers decide that they want to make a recipe, they can click on an icon to be directed to where the other necessary ingredients are in the store and also share the meal idea with friends across social networks.

Enhancing the Traditional Mike Reynolds, VP and general manager of Boulder, Colo.-based Versacart Systems Inc., envisions lighter, more durable carts designed to accommodate electronic systems, both embedded for in-store use and enabled for consumers.

“Store equipment and shopping carts need to evolve to fit seamlessly into new retail environments,” says Reynolds, whose company makes about 50 types of traditional and convenience-style shopping carts. “We will continue to create unique carts that meet the needs of the marketplace, working with our grocery partners to deliver quality and efficient cost-effective solutions.” Americana Cos., in Omaha, Neb., has rolled out cart innovations such as rust-inhibiting zinc plating, a 5-inch shopping cart wheel that won’t flat spot, and antimicrobial child seat belts. “We have seen some patents for shopping carts that will drive-push on their own,” says Americana Cos. President Terry Swanson. “We are not one of those inventors to date, but as one of the largest maintenance/repair companies, with over 75 crews, we would be able to maintain and install any new invention that pertains to a shopping cart.” In Seoul, South Korea, SK Telecom has developed a virtual shopping cart called Smart Shopper. “Instead of using traditional shopping carts, customers can add items to virtual carts via a scanner that reads bar codes on products,” says Cindy Hyungsung Kang, SK’s public relations manager. “They can then purchase items conveniently at smart self-checkout kiosks without having to wait in a checkout line, and have purchased items delivered to their homes, free of charge, on a desired date and time, instead of carrying heavy bags.” With Smart Shopper, Kang asserts, retailers can offer a unique and tailored personal shopping experience by providing users with customized shopping-related information like special offers, discount coupons, and product recommendations based on the user’s previous shopping history and movements within the store. “Smart Shopper itself does not store any personal information,” Kang emphasizes. “Once the user makes a purchase at a ‘Smart Checkout’ selfcheckout kiosk, all data stored within the bar code scanner is automatically deleted.” Smart Shopper is a an omnichannel platform built with advanced information and communications technology (ICT), including bar code scanning, NFC and Bluetooth low-energy (BLE) technologies. It’s currently in use at the Lotte Department Store in Korea, the world’s thirdlargest department store chain. So, while the shopping cart corrals of tomorrow might be the same, what they hold for shoppers certainly won’t be. PG

Z-caRT From Mordag Design, in Turkey, this futuristic model is expandable, rechargeable and mobilized.

Store equipment and shopping carts need to evolve to fit seamlessly into new retail environments.” —Mike Reynolds, Versacart Systems Inc.

July 2017 | progressivegrocer.com |

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Food, Beverage & Nonfood Products

Burger Time for All Beyond Meat’s Beyond Burgers refrigerated meatless patties have already received praise from lovers of plant protein who also enjoy the taste of meat. Now the company has expanded U.S. distribution of the product outside its exclusive agreement with Whole Foods Market, making Beyond Burgers available to other food retailers nationwide. Intended to merchandise in the meat department as opposed to the frozen section, the burgers are said to look, cook and satisfy like traditional beef patties, enabling consumers to partake in the burgers they love while enjoying the health, sustainability and animal welfare benefits of plant-based protein, of which the product has 20 grams. The patties are free from cholesterol, GMOs, soy and gluten, and have an SRP of $5.99 per pack of two quarter-pound patties. http://beyondmeat.com

Fire Up the Grill Sometimes the best new treats are just a small twist on existing ones. In time for summer, Bar-S Foods and McCormick have aimed to slightly reinvent the classic American hot dog: McCormick Grill Mates Beef Franks are 100 percent beef, with no fillers, byproducts, or artificial flavors or colors. Available in eight-packs, the line’s three ready-for-the-grill flavors are Montreal Steak, a blend of pepper, garlic and spices; Smoky Applewood, a sweet, smoky blend of peppers, garlic and applewood smoke flavor; and Classic, a traditional hot dog. Each pack has an SRP of $3.99. www.bar-s.com

Soup’s On With vegetarianism on the rise in America, interest in non-animal-based protein sources is also growing. In response, Pacific Foods has added a line of Organic Crème Fraiche Soups to its offering of creamy soups. Said to be a suitable vegetarian source of protein that can serve as a stand-alone meal, side or post-workout refuel, the line comprises three varieties: Tomato, Roasted Red Pepper and Butternut Squash. Gluten-free and providing 10 grams of protein per serving, the line has an SRP of $5.99 per 32-fluid-ounce carton. www.pacificfoods.com

Awesome Sauce More Americans today love new and exotic flavors — even though many condiments offering such flavors can be loaded with hard-to-pronounce, undesirable ingredients. Big Tree Farms’ latest condiment, Coco Aminos, is a flavorful, all-purpose seasoning sauce that contains just two ingredients: coconut blossom nectar and a touch of Balinese sea salt. The item offers 14 amino acids and only half the amount of sodium in traditional soy sauce, making it a suitable replacement for that condiment. It can be used as a marinade on meats and veggies or added to leftover rice, and even double as a savory topping for popcorn or Buddha bowls. The SRP is $7.49 per 10-ounce bottle. http://bigtreefarms.com

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| Progressive Grocer | Ahead of What’s Next | July 2017

Breakfast Time It’s hard for today’s busy Americans to turn down an easy-to-make, filling breakfast with wholesome ingredients to start the day — especially if it offers a touch of Southwestern flair. Enter Kellogg Co., which has partnered with foodservice chain Moe’s Southwest Grill to introduce Moe’s Breakfast Bowls, each of which contains a minimum of 12 grams of protein and features ingredients people can feel good about, including meats raised without hormones, and no artificial flavors or colors. Inspired by the chain’s burrito and bowl varieties, the frozen line includes five SKUs: Chorizo & Eggs, Chorizo Benedict, Southwest Vegetarian, Chicken Chilaquiles, and Huevos Rancheros. The SRP is $4.49 per bowl. www.kelloggs.com

Botanical Bubbly Summer is a season for the senses — from the smell of fresh flowers to the crisp flavor of refreshing libations. Combining the two, Blossom Brothers now offers botanical spritzers, made from just four clean ingredients: wine, natural botanical essences, water and carbon dioxide. The three flavors — White Peach & Jasmine Flower, Blood Orange & Ginger Root, and Pink Grapefruit & Honeycomb — have no added sweeteners or artificial flavors. The beverages are 6 percent ABV, have only 12 grams of sugar and are gluten-free. The SRP is $11.99 per 4-pack. www. blossom-brothers.com

Spice Up Your Snacks High-protein, low-sugar snacks are hot right now, as are bold flavors, so Duke’s has added Cajun Style Andouille Smoked Shorty Sausages to its line of six other flavorful shelf-stable Shorty sausages: Original, Hot & Spicy, Hatch Green Chile, Chorizo & Lime, Hickory Peach BBQ, and Tomato Basil. Available in 5-ounce bags, the latest freshly crafted, made-from-scratch variety is smoked with real hickory hardwood and a special blend of Cajun spices. Containing 7 grams of protein and 1 gram of sugar per serving, the item has an SRP of $6.89 per bag. https://dukesmeats.com

Go Nutty Who says indulgence can’t be good for you, too? Not Nuttzo: The company’s new Power Fuel Chocolate nut butter is said to be an excellent source of protein, omega 3s, amino acids and fiber. The item is a 100 percent organic, Fair Trade blend of seven nuts and seeds — almonds, cashews, brazil nuts, flaxseeds, chia seeds, hazel nuts and pumpkin seeds — mixed with chocolate. Made in partnership with Eating Evolved, the paleo chocolate nut butter has an SRP range of $13.39-$14.49 per 12-ounce jar. www.nuttzo.com July 2017 | progressivegrocer.com |

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Index Airius Anchor Packaging Beanfields Snacks Beaver Street Fisheries 570 Lake Cook Rd, Suite 310, Deerfield, IL 60015 Phone: 224 632-8200 Fax: 224 632-8266 www.ensembleiq.com United StateS MarketS Convenience • Grocery/Drug/Mass Store Brands • Specialty Gourmet Technology • Hospitality • Apparel

Canadian MarketS • Convenience • Pharmacy • Foodservice

advertiSing SaleS & BUSineSS Staff Peter Hoyt President & CEO 773-992-4456 phoyt@ensembleiq.com Richard Rivera Chief Operating Officer 973-264-4380 rrivera@ensembleiq.com Jeff Greisch Chief Brand Officer 224-337-4029 jgreisch@ensembleiq.com Ned Bardic Chief Customer Officer/President of Strategic Platforms 224-632-8224 nbardic@ensembleiq.com Katie Brennan Senior Vice President/Brand Director 201-855-7609 • Cell: 917-859-3619 kbrennan@ensembleiq.com Larry Cornick Southeast Account Executive 224-632-8248 lcornick@ensembleiq.com

Black Gold Farms Blount Fine Foods Boston Beer/Samuel Adams Brewery Tour Line Cambro Manufacturing Company Cheyenne International

38 24-25 89 84-85 91 27, 37 21 101 64-65

CIP International

Creekstone Farms

CSM Bakery Products D.F. Stauffer Biscuit Company Daymon Dean Foods Co. Heineken USA Inc.

60-61 15 71 Insert 51 Inside Front Cover, 31, 53

House Foods America

Inline Plastics Corp.

Iovate Health Sciences Int’l Inc.

Jack Link’s Beef Jerky JTM Foods

57 80-81, 82

Kimberly-Clark Co.

Koelnmesse GMBH

MasonWays Indestructible Plastics

Meiji America

MIWE

Navitas Naturals NBTY

86 54-55

Network Of Executive Women

New Hope Network

Olé Mexican Foods

Organic Valley Family Of Farms

Angela Flatland CO, IL, IN, IA, KS, KY, MI, MO, NE, Midwest, Marketing Manager (AR, ND, OK, SD, TN, WI) 224-229-0547 Cell: 608-320-4421 aflatland@ensembleiq.com

Perfetti Van Melle USA Inc.

Peri & Sons Farms

Pro Food Systems - Champs Chicken

Produce for Kids

Judy Hayes Senior Sales Manager 925-785-9665 jhayes@ensembleiq.com

Produce Marketing Association

Theresa Kossack Senior Sales Manager 214-226-6468 tkossack@ensembleiq.com

Sunsweet Growers Inc.

Rick Neigher Western Regional Sales Manager (CA, OR, WA) 818-597-9029 rneigher@ensembleiq.com Mike Shaw Northeast, Marketing Manager 201-855-7631 • Cell 201-281-9100 mshaw@ensembleiq.com Jackie Batson Advertising Manager 224-632-8183 jbatson@ensembleiq.com

Quotient Saputo Cheese Usa Inc. Smithfield Fresh TH Foods The J.M. Smucker Company

3 43 4 74 Inside Back Cover Back Cover

Tosca Ltd.

Transcontinental Robbie

Trion Industries Inc.

TW Garner Food Co / Green Mountain Gringo

46-47

Tyson Foods

10-11

Wild Blueberry Assoc Of North America - Canada

Progressive Grocer (ISSN 0033-0787, USPS 920-600) is published monthly by EnsembleIQ, 570 Lake Cook Rd. Deerfield IL 60015. Single copy price $10, except selected special issues. Subscription: $135 a year; Canada $164 (Canada Post Publications Mail Agreement No. 40031729. Foreign $270 (call for air mail rates). Periodicals postage paid at Deerfield, IL 60015 and additional mailing offices. Printed in USA. POSTMASTER: Send all address changes to Progressive Grocer, P.O. Box 1842 Lowell, MA 01853. Copyright ©2017 EnsembleIQ All rights reserved, including the rights to reproduce in whole or in part. All letters to the editors of this magazine will be treated as having been submitted for publication. The magazine reserves the right to edit and abridge them. The publication is available in microform from University Microfilms International, 300 North Zeeb Road, Ann Arbor, MI 48106. The contents of this publication may not be reproduced in whole or in part without the consent of the publisher. The publisher is not responsible for product claims and representations.

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(800) 896-2396 (800

NOT MADE WITH GENETICALLY ENGINEERED INGREDIENTS

ARTIFICIAL GRAINS NO PROTEIN 5g VEGETABLE 17g WHOLE PER SERVING

PER SERVING

COLORS, FLAVORS

VEGAN

CHOLESTEROL

NO SOY

Gluten-Free I Kosher I No Artificial Colors, Flavors or Preservatives I No Saturated Fat I Cholesterol-Free I Wheat-Free I Vegan