SWEAT THE SMALL STUFF Emerging store designs take on size and more
READY FOR ANYTHING How to create a trend-forward prepared food section
HEALTHY NEW YEAR! Help your shoppers eat and live better
22 FEATURE
Inside the Value Boom Progressive Grocer talks with ALDI U.S.’ president and representatives of Trader Joe’s and Dollar General about strategies to entice shoppers now and in the future.
28 EQUIPMENT & DESIGN
Smaller Spaces and More Leaders in store design discuss a move away from expansive formats in certain markets, as well as other emerging trends.
32 FRESH
FOOD
When Fast Food Is Good Food
Grocers are trying to meet consumers’ demands for lower-calorie, healthier fare in deli and prepared foods.
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BRAND MANAGEMENT VICE PRESIDENT & GROUP BRAND DIRECTOR Eric Savitch esavitch@ensembleiq.com
EDITORIAL
EDITORIAL DIRECTOR & ASSOCIATE PUBLISHER Gina Acosta gacosta@ensembleiq.com
Purina trademarks are owned by Société des Produits Nestlé S.A.
By Gina Acosta
The Agents Are Coming
HERE ARE FIVE GROCERY INDUSTRY TRENDS FOR 2025.
Now that the Kroger-Albertsons merger is o , the ripple e ects from this failed deal will in part redefi ne the grocery landscape in 2025.
The business challenges for traditional supermarkets, and especially Kroger and Albertsons, are going to become much more formidable.
Let’s put aside, for now, the lawsuit that Albertsons fi led, the companies’ balance sheets, and how the blocked deal might end up being worse for consumers and employees.
Non-supermarket competitors such as Walmart, Costco, Amazon and ALDI are thriving after years of investments in technology, assortment and price. Retail media networks from some of these larger competitors will grow even stronger. But with the change of administration, President-elect Trump has named a conservative, Andrew Ferguson, as the new chair of the Federal Trade Commission (FTC).
A Trump administration FTC might be more sympathetic to the argument that a Kroger-Albertsons type of merger allows these companies to compete better with giants such as Walmart and Amazon, setting the stage for more consolidation in the grocery industry (Will Amazon buy Albertsons?).
Then, of course, there’s the U.S. consumer, who is less loyal and more demanding than ever.
How will grocers compete and thrive in 2025? By staying ahead of the trends that are poised to dominate the grocery industry in 2025:
1.
Time to Google the Words “Agentic AI”
AI-powered retailing is fast becoming table stakes, and in 2025, executing an AI strategy and understanding how to derive maximum business value from it will be Priority No. 1. Retailers will use AI to optimize operations and deliver hyper-personalized experiences, tailoring product recommendations, promotions and shopping lists to individual customers based on purchase history, dietary preferences and even health goals.
Meanwhile the buzzword on the lips of every product executive –“agentic AI” – is an AI system capable of independently executing tasks with minimal human supervision (no more prompts). This tech promises next-level personalization and predictive analytics, a boon for retailers.
2. Sustainability Will Finally Have Its Era
As climate concerns explode, shoppers will increasingly seek out grocers that prioritize eco-friendly practices. In 2025, many stores will implement carbon-neutral or even carbon-negative strategies, such as sourcing renewable energy for operations, reducing food waste and o ering more sustainable packaging options.
Expect to see a rise in products with transparent supply chains that
detail their environmental impact, with retailers adopting blockchain technology to provide verifi able sustainability credentials. Also, the growth of plant-based and lab-grown proteins will continue, appealing to environmentally conscious consumers and those seeking alternative diets.
3. The Great E-Commerce Reckoning
Shoppers buying their groceries online reached an all-time high in November, according to data from Brick Meets Click and Mercatus. Around 77.8 million households ordered their groceries online. Delivery sales rose 22% year-over-year and grabbed 40.6% of grocery e-commerce orders. Pickup accounted for 41.3% of orders and had an 8% year-over-year increase. In 2025, many small and mid-tier retailers will keep outsourcing their e-commerce and charge customers to cover their costs. Larger retailers will turn more to drone and robotic deliveries as they look for speedier and lower-cost methods.
4. Wellness Without Limits
Consumers are increasingly prioritizing their health, and grocery retailers will respond by expanding their selections of functional foods, supplements and personalized nutrition solutions. In 2025, many stores will feature sections dedicated to “health-enhancing” products such as foods fortifi ed with probiotics, adaptogens or specifi c vitamins. In addition, grocers will leverage data from wearable health devices and apps to o er products aligned with individual health metrics.
5. Leaner But Not Meaner
The traditional large-format supermarket will face competition from smaller, tech-enabled stores that focus on convenience and e ciency.
National Banana Cream Pie Day. Run a special in the deli spotlighting this perennial favorite.
9 Daylight Saving starts. Welcome back, sunshine!
16
National Curl Crush Day. Offer tips and products to enable shoppers to care for their ringlets properly.
23
National Tamale Day. This tasty Latin American dish is well worth the effort of preparation.
30
Pretzel Sunday. Any day is ne, but Sunday is perfect for adventurous customers to try baking their own.
3
National Anthem Day. Recruit a golden-voiced associate to perform a rousing rendition of our national tune, which many people nd hard to sing.
10 International Day of Awesomeness. Celebrate this quality in customers, associates and vendors alike.
4
Fasnacht Day. These Pennsylvania Dutch fried doughnuts are traditionally eaten before Lent.
5
Irish-American Heritage Month
National Celery Month
National Flour Month
National Frozen Food Month
11
National Immune System Day. Promote items on your store shelves that support enhanced immunity.
Cinco de Marcho is a time for consumers to prep themselves for St. Patrick’s Day festivities.
Lent begins.
6 Nametag Day. Make sure that all of your associates are wearing these proudly and prominently.
12
World Glaucoma Day. Encourage shoppers to get regular eye exams to prevent blindness from this common condition.
17
St. Patrick’s Day is also, appropriately enough, National Corned Beef and Cabbage Day.
24
National Adverse Drug Event Awareness Day. Empower your pharmacy staff to answer any questions that concerned customers may have about their medications.
31 Prom Day. With these school dances right around the corner, the oral department can start taking advance orders for corsages and bouquets.
18
Tea for Two Tuesday. Suggest that shoppers host an intimate têteà-tête – complete with cucumber sandwiches.
25
American Diabetes Alert Day. The pharmacy department can also dispense tests and information to manage and maybe even prevent this rising health issue.
19
National Poultry Day. Hold a sale on chicken, turkey, duck, goose or any other fowl you sell.
26
Live Long and Prosper Day. Spock from “Star Trek” would want you to do well.
13
The Jewish festival of Purim, based on stories from the Bible’s Book of Esther, begins.
7
National Noodle Month
National Peanut Month
National Sauce Month
National Women’s History Month
1
National Minnesota Day. Highlight the best food and drink from the Gopher State.
8
National Cereal Day. Poll shoppers to nd out whether they prefer their morning (or anytime) bowlful
International Women’s Day. Pay tribute to all of the amazing females who contribute to your business’ success.
14
Bake a Pie in Solidarity Day. Provide the ingredients but leave the cause up to your customers.
20
Companies That Care Day. Is your business one of them? Publicize some of your good works in regard to your associates and the wider community.
27
On Scribble Day, showcase your youngest shoppers’ most abstract artistic
21
National Healthy Fats Day. Ask your retail dietitian to do a video explaining how they can be part of a balanced diet.
28
Respect Your Cat Day. Remind customers that Fluffy should be well fed and hydrated, with plenty of toys.
15
World Essential Workers Day. The pandemic may be over, but grocery associates are always an integral part of the economy.
22
World Water Day. Take part in initiatives that safeguard this all-important resource for at-risk populations.
29
Vietnam Veterans Day. Thank these occasionally overlooked warriors for their service with a special discount.
THE COMPANY
Value Per Occasion
What is the value per occasion for cereal and granola versus the year-ago period?
$4.37 for all cereal and granola, up 0.6% compared with a year ago
$3.94 for hot cereal, down 1.7% compared with a year ago
$4.36 for cereal and granola bars, up 1.5% compared with a year ago
$4.49 for RTE cereal, up 0.9% compared with a year ago
$2.23 for chilled cereal, down 3.8% compared with a year ago
$5.56 for wheat germ, down 0.4% compared with a year ago
Source: NIQ, Total U.S. (all outlets combined) during the 52 weeks ending Nov. 30, 2024
Source: NIQ, Total U.S. (all outlets combined) during the 52 weeks ending Nov. 23, 2024
some certifications use the phrase ‘cage-free.’ we defined it.
When state and federal regulators needed a definition for cage-free, they came to us. So, we’re not joking when we say we literally wrote the definition.
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the egg.
Global New Products Database
Prepared Meals
What You Need to Know
Convenience is the key driver for the category, but increasingly, users expect more. Great taste, new cuisines, healthfulness and value for money represent ways for brands to connect with consumers
A key strength of the prepared meal category is its ability to adapt to diverse and evolving consumer needs. New products catering to both cuisine exploration and healthy eating have the potential to increase consumption.
While category sales turned negative in 2024, the long-term outlook calls for a return to slow growth, driven by modest in ation.
Consumer Trends: Key Takeaways
Nearly nine in 10 consumers report using at least one type of prepared meal in the past three months, but use of individual types is far lower, pointing to room for growth.
Traditional comfort foods remain a top choice, but prepared meal users also look for new varieties. Nearly threequarters agree that a prepared meal is a great way to try a new cuisine.
While eating more healthfully can serve as motivation for increasing consumption of prepared meals, it can also be a reason for cutting back. Marketers must still overcome the perception that prepared meals aren’t as healthful as home cooking.
Opportunities
With new entrants and innovation, the category o ers more variety than ever, creating an opportunity for retailers to transform the prepared meal shopping experience from routine stock-up to cuisine exploration and discovery. By pairing prepared entrées or sides with corresponding fresh items from the perimeter, the category can serve as a facilitator of home cooking rather than as a replacement for it. The category has an opportunity to help Gen Xers, who are motivated to deal with aging head-on, adopt a proactive, longterm approach to healthy eating.
ACTIONABLE INSIGHTS & CONNECTIONS POWERING BUSINESS GROWTH
EnsembleIQ is the premier resource of actionable insights and connections powering business growth throughout the path to purchase. We help retail, technology, consumer goods, healthcare and hospitality professionals make informed decisions and gain a competitive advantage.
EnsembleIQ delivers the most trusted business intelligence from leading industry experts, creative marketing solutions and impactful event experiences that connect best-in-class suppliers and service providers with our vibrant business-building communities.
By Diane Quagliani, MBA, RDN, LDN
Healthy Lifestyle Changes for the New Year and Beyond
S.M.A.R.T GOALS ARE KEY.
For many people, the start of a new year brings resolutions to eat better, exercise regularly, sleep more, manage stress and other health-related goals.
Although these are worthy goals, most people will abandon their New Year’s resolutions within a few months, according to the 2023 Forbes Health/One Poll. Speci cally, the survey found that the average resolution lasts just 3.74 months, with 8% of respondents sticking with it for just one month, 22% for two months, 22% for three months and 13% for four months.
But there’s good news, too. Retailers and retail dietitians can help shoppers succeed by providing programs, information and support to turn health-related resolutions (i.e., goals) into lasting lifestyle changes. And what better place to learn about healthy eating than the supermarket?
Get S.M.A.R.T With Healthy Lifestyle Goals
A common stumbling block to meeting healthy lifestyle goals is the goals themselves. Many people set goals that are too general (“I want to eat better”), too ambitious (“I’ll start running 5 miles a day”), or unrealistic (“I’ll lose 20 pounds this month”). Teaching the S.M.A.R.T. method for goal setting as part of your health-related outreach gives shoppers a framework that can make goals more attainable.
S.M.A.R.T. goals are:
Speci c. The goal clearly de nes what you want to do. An example is to “buy frozen vegetables each week and eat a serving with dinner every night” instead of to “eat more vegetables.”
Measurable. You can easily track your progress, such as counting the number of times you pack your lunch each week instead of buying it.
Achievable. The goal suits your lifestyle and isn’t overly ambitious. It’s unlikely that vowing to exercise before work every morning will work for a sedentary person who isn’t an early riser.
Relevant. The goal is personalized to your situation and health concerns. For instance, someone with high cholesterol could map out a goal to eat less saturated fat.
Time-bound. The goal is set for a reasonable length of time, and then reassessed. An example is deciding to cook dinner at home twice a week for a month instead of ordering takeout. After that, the goal could be increased to three times per week, or revised to make it more workable.
S.M.A.R.T in the Supermarket
Retail dietitians are skilled at applying the S.M.A.R.T. framework, along with other behavior change techniques, to help shoppers reach and main-
What better place to learn about healthy eating than the supermarket?
tain their healthy lifestyle goals. Dietitians who provide individual counseling also give shoppers personalized nutrition recommendations and offer accountability for meeting goals. In addition, retailers and retail dietitians can help shoppers learn about and implement S.M.A.R.T. goal setting through online articles and tools, in-store educational events, social media, and community outreach programs.
Perhaps most important is to reassure shoppers that successfully meeting their goals means progress, not perfection, and that healthy lifestyle changes can begin at any time during the year, not just on Jan. 1.
Diane Quagliani, MBA, RDN, LDN, specializes in nutrition communications for consumer and health professional audiences. She has assisted national retailers and CPGs with nutrition strategy, web content development, trade show exhibiting, and the creation and implementation of shelf tag programs.
THE EVOLVE EXPERIENCE: A Fresh Focus on Refrigeration
In 2020, Hussmann, the industry’s leading authority on refrigeration — outfitted a 75-foot tractor-trailer and began a cross-country roadshow, visiting retailers and service providers to showcase new refrigeration solutions that could help them meet consumer demand.
As Hussmann’s roadshow readies to embark on its 2025 journey this spring, Progressive Grocer asked Emily Fletcher, Senior Director of Marketing Communications, and Jony Zangari, Vice PresidentRefrigeration Systems & Krack Portfolio Solutions, how the experience has evolved to help retailers and service providers understand the challenges and opportunities new regulatory issues present in food retailing.
Progressive Grocer: Hussmann launched their roadshow in 2020, right as the pandemic was disrupting the entire industry. What drove you to take such a bold step at that time?
Fletcher: The pandemic threw a curveball at all types of businesses, including ours. With major tradeshows and events on hold, we had to rethink how we reached our customers. So, we utilized our roadshow to drive directly to our customers, park at their headquarters and support the unique challenges they were facing.
When we initially launched our roadshow, it was really about, “How do we get our innovative products and solutions to our customers in a safe and simple way?” We learned a lot in those early days, and each year since then, we have challenged ourselves to think about how we can continually improve the experience we’re providing.
PG: The industry has changed significantly since the roadshow first launched. How has Hussmann’s mission evolved to keep up?
Zangari: There’s been a major industry shift towards sustainable refrigeration solutions, driven by new regulations like the AIM Act, which mandates a transition to refrigerants with a lower global warming impact. While compliance deadlines are set, we’ve found that customers still face a lot of uncertainty in preparing for this shift. We saw an opportunity to transform the roadshow last year into The Evolve Experience — a mobile classroom, offering information on regulatory changes and sustainable options. It’s all about equipping our clients to make informed, strategic decisions.
Fletcher: Stewardship is a big part of The Evolve Experience’s mission. We approach it from two angles. First, we aim to educate decision-makers, offering product-agnostic insights to help them develop their own refrigeration strategies. Second, we focus on training technicians to interact with the equipment safely and effectively. We’ve structured the trailer as an interactive learning space, where they can experience the actual equipment up close.
PG: Can you describe a typical visit?
Zangari: Each stop is meticulously planned and customized to meet the retailer’s specific needs. We create a unique experience for each retailer — understanding what is most important to their current business situation. Once inside the experience, our trainers provide detailed insights about the equipment and cover key factors for each refrigerant option — pros and cons, safety measures, and ongoing maintenance considerations.
Fletcher: It’s a very hands-on experience. Our attendees have the unique opportunity to physically interact with the equipment — seeing it up close, with parts labeled and explained. This interactive training helps them understand both the innovations and the practical applications. It’s a complete, immersive educational experience.
PG: What kind of response has The Evolve Experience received from retailers and the industry?
Zangari: Our approach is solely focused on providing a genuine educational service. At Hussmann, we’re deeply committed to our “Hussmann Promise” to continuously provide the most customer-focused solutions in the food retailing industry. Because of that company-wide mentality, our team recognized the value of this educational model right away. The response from attendees has been overwhelmingly positive — they see The Evolve Experience as an invaluable resource.
We’ve had retailers across grocery and convenience stores tell us the approach to solving real-world service challenges is refreshing within the industry. And it’s common for attendees to request additional education and training for their larger teams because of the impact these visits have created.
Fletcher: In the last five years, the trailer has covered over 53,000 miles, hosted 250+ events, and welcomed more than 2,500 attendees. The feedback from our customers has been phenomenal — they appreciate our intense customer-focused mindset and devotion to strengthening our industry.
Zangari: In some cases, we are hearing from retailers who weren’t aware of these refrigeration regulations. And with the first compliance dates effective on new equipment at the start of 2025, it’s become critical to make sure we continue to get out the word so they understand how to plan their strategy for new stores and remodels going forward.
PG: Where do you see the future of refrigeration heading, and how is Hussmann positioned to support that?
Zangari: As sustainability continues to drive change, the future will likely see an even stronger emphasis on environmentally friendly refrigeration systems. Hussmann is committed to helping our clients make this transition seamlessly, with both the technology and the expertise they need to stay ahead. We’re ready to continue supporting them with solutions and education that keeps them prepared for whatever comes next.
A Unique Experience for Retailers
A visit to the Hussmann trailer is an experience unlike the one retailers typically get during a regular meeting with a vendor. Read below to learn what a visit entails.
1. STEP OUTSIDE YOUR FRONT DOOR AND INTO THE EVOLVE EXPERIENCE
There’s a level of convenience and accessibility that’s clearly unmatched — the trailer comes to the retailer’s doorstep, making it easier to engage. More importantly, the environment inside is designed to differ completely from a regular office visit.
2. ENGAGE WITH THE PRODUCTS UP CLOSE
We start by walking retailers, their technicians, or contractors through the entire trailer to view the types of products they’ll be working on. This gives them the opportunity to closely examine our R290 and CO2 product offerings, ask detailed questions, and see the equipment up close. It’s an immersive, hands-on experience that sets the tone for everything that follows.
3. CUSTOMIZABLE CURRICULUM AND TRAINING
After the tour, our technical training team provides tailored guidance on regulations for remodels and new store projects, and adjusts it to fit each retailer’s unique strategies and geographical needs. This approach simply isn’t possible in a standard meeting.
4. COLLABORATE AND PROBLEM SOLVE
This experience is designed to plan your specific future refrigeration strategy. We educate our audience on how to work with refrigerants no matter their equipment provider so they have confidence in the plan they build moving forward. Then we discuss the pros and cons of all options based on their unique situation.
For example, one stop was with a retailer whose stores were in remote Alaskan towns that are inaccessible much of the year. We began with an overview of sustainable refrigerant options and industry regulations, but quickly transitioned into logistical challenges: how to transport refrigerants to remote towns, how much to store as backup to deal with leaks, and how to support technicians in isolated locations.
This kind of collaboration arms retailers with information they need as they develop their individual plans.
learn more about joining the 2025 Evolve Experience or other training opportunities, visit Hussmann.com or send an email to roadshow@hussmann.com.
for a detailed overview of refrigerant regulations that affect retailers, you can read more at https://www.hussmann.com/ refrigerant-regulations
The AI Revolution in Grocery
THE FUTURE BELONGS TO THOSE FOOD RETAILERS WILLING TO HARNESS THE POWER OF THIS TECHNOLOGY.
By Emily Crowe
While the technology has been around for several decades, articial intelligence (AI) is making incredible inroads at food retail, creating ef ciencies at scale, reducing operational costs and streamlining myriad processes across the entire enterprise. Add the newer generative AI (GenAI) to the mix, and the potential for technology to forever change the way grocers do business is unmatched.
The AI revolution in grocery has been a long time coming, and it’s already a force to be reckoned with. New York-based Coresight Research estimates that the combined market for GenAI hardware and applications in 2024 was $79.8 billion, and will grow at a compound annual growth rate of 31.1% to $235.5 billion in 2028. Further, the AI applications segment, including GenAI models, is expected to grow 4.5 times during that timeframe.
Key Takeaways
With generative AI (GenAI) added to the mix, the potential for technology to forever change the way grocers do business is unmatched.
Current common uses of GenAI include chatbots that answer shopper questions online, email and promotion personalization at mass scale, and content management that allows brands to write product descriptions in their own voice, but there are many other applications.
There remains a gap, however, between those grocers harnessing AI’s power and those still waiting to make a move on the technology.
Where has AI been, and where is it headed? What considerations should grocers make when adding it to their technology stacks, and how can smaller food retailers reap the bene ts of this transformational tech?
Taking a Foundational Look
“The human is always there and needs to be there to shape the message of what AI needs to do, and the human should always approve it.”
AI is easy enough to understand on a surface level: It’s the capability of computer systems or algorithms to imitate intelligent human behavior. It uses massive amounts of data to make decisions and solve problems on behalf of its user, and it can make forecasting predictions in business use cases.
Lori Schafer, Digital Wave Technology
According to Lori Schafer, CEO of Ponte Vedra Beach, Fla.-based Digital Wave Technology, the whole idea of AI is to automate processes and make things much faster and more ef cient than a human could. “Data is the fuel, if you will, for any type of AI solution, and it’s the job of the AI solution to be able to take in that clean data, and then look at every possible way to automate that data and to also personalize the data as those AI solutions are used to bene t the business,” she explains.
Schafer stresses the importance of delineating between standard AI and its new iteration of GenAI when discussing the ner points of each. Numeric or analytical AI works on numbers, while GenAI works on text, video and voice. Either way you slice it, AI in food retail holds the promise of streamlining mundane tasks, cutting food waste, boosting the customer experience and reducing operational costs.
In today’s grocery ecosystem, Schafer says that AI is most commonly used for inventory management and optimization, which allows grocers to more ef ciently predict and forecast their demand, and then make sure that the inventory they keep in stock is optimized to that demand curve. As for GenAI, current common uses include chatbots that answer shopper questions online, email and promotion personalization at mass scale, and content management that allows brands to write product descriptions in their own voice, for example.
Paul Pallath, VP of applied AI at Houstonbased consultancy Searce, shares that supply chain optimization is another business function getting a boost from GenAI. As grocers work with multiple vendors, generate copious amounts of documentation and work to reconcile invoices against purchase orders, GenAI can help take
the guesswork out of parsing that documentation.
Other common uses explored in a recent Coresight Research report include computer vision and AIpowered, fully autonomous checkout systems and smart carts; warehouse automation; and video commerce.
Sprouts Farmers Market, for example, has partnered with RELEX Solutions to optimize its forecasting and replenishment processes to minimize spoilage and improve on-shelf availability.
The Kroger Co., meanwhile, employs technology from Ocado that uses AI algorithms and machine learning to optimize the picking and packing operations of online orders. That automation reduces labor costs and improves speed and accuracy.
Taking the Leap
Despite the promise of AI in food retail, there remains a gap between those grocers harnessing its power and those still waiting to make a move on the technology. While this is often directly related to the size of a company and its available resources, Schafer recommends being very sharp on the value proposition of AI when looking to integrate it into everyday operations.
“I think it needs to be simpli ed, and what I would suggest to any independent retailer, or even a regional chain for that matter, is [to have a conversation] at the
AI and GenAI can help grocers get a shelf-level view of their operations, which can help with out-of-stocks as well as inventory planning.
CEO level, ideally a CIO, CEO or CFO, because they know where the needs are,” she advises.
Starting small and working toward identi able pain points or goals can go a long way. Setting up AI for content management, such as writing product content or recipes, for example, is an easy place to start that offers tangible value to the organization and minimizes the dif culty of change management.
Regardless of speed to integration, a good place to start, and often the real key to AI success, is the use of clean data, according to Schafer.
“One of the biggest things we say when we get started with retailers in terms of adoption is ‘let’s get the data out of the silos,’ and we can put it into a common data lake where all the important data is gathered together,” she explains. “Then we can automatically cleanse that data because sometimes you have a lot of misspellings or duplicates. Whenever human beings enter data, there’s going to be mistakes, so the rst step is to integrate the data.”
Pallath is on the same page in terms of employing the best data possible, stressing that AI is only as good as the data that you collect. “Grocers are not technology companies, so their maturity curve in terms of having the data ready for AI is something that we see they struggle with,” he says.
Continues Pallath: “While they have ideas in terms of what they want out of AI, they’re not ready to get there. Much of our work starts with helping them with the infrastructure or helping with the data modernization techniques before we land with AI and skills.”
This is often where having a technology partner can make a huge difference in the uptake. “Partner with a consulting organization who has worked with large grocers to understand the space really well,” advises Pallath.
The Future is Bright
At the end of the day, grocery store operations ranging from seamless checkout to product optimization planning, warehouse operations, and even creative processes like product description
“Grocers are not technology companies, so their maturity curve in terms of having the data ready for AI is something that we see they struggle with.”
Paul Pallath, Searce
and digital advertisement generation are all getting more ef cient, thanks to AI. According to Schafer, the technology can easily create time ef ciencies of up to 95%.
Pallath believes that the next ve years will bring an abundance of advancements in grocery-related AI that will help remove friction from operations, including the ability for individual stores to get a better view into what’s happening on the oor, as well as what’s on the shelf. AI and GenAI will also begin working more in tandem to create further optimizations in terms of inventory, shelf stock, planograms and more, which will translate to a better customer experience and more pro t for the retailer.
Schafer thinks AI will become much more embedded in daily operations over the next ve years, with automation and personalization being important pieces of the puzzle. Regardless, she stresses that these applications will not take away the need for a human touch within the AI loop.
“Arti cial intelligence is not intelligent,” she says. “It’s a bunch of mathematical algorithms that are used to come up with an optimal answer or to process data faster. But the human is always there and needs to be there to shape the message of what AI needs to do, and the human should always approve it. We’re a long way off from the human being out of the loop.”
A new generation of smart carts uses computer vision and AI to take the friction out of grocery shopping.
Inside the Value Boom
Progressive Grocer talks with ALDI U.S.’ president and representatives of Trader Joe’s and Dollar General about strategies to entice shoppers now and in the future.
By Lynn Petrak
ALDI’s value proposition – for its customers and its own operation – is based on the right balance of highs and lows. On the high side, the retailer continues to gain in tra c, locations, dollar sales and product variety, while on the low side, it’s resonating with a larger cross-section of shoppers because of its a ordable prices, pragmatic assortment and easy-to-navigate store formats.
To be sure, shopping at the German-owned value-centric chain has a certain cachet, as customers joke about keeping stacks of quarters in the car dash to unlock carts and are often seen swapping quarters with other patrons coming out of the store. In online fan pages, the grocer’s loyal followers chat about seasonal fi nds, their favorite products, cool recipes to try, and more.
“The ability to excite customers is a big part of this,” a rms Dave Rinaldo, president of ALDI U.S., in a recent sitdown interview with Progressive Grocer. “That’s where you see items like our charcuterie range or our organic produce that have really unlocked the magic and the level of customer engagement. It’s hard to even quantify or explain to someone – it’s exciting. People come out with items that they didn’t know that they were coming in for, with great value on a premium item or specialty item, especially at a time like this.”
Behind shared sentiment from a qualitative perspective, the quantitative growth of the value chain is real.
According to Santa Cruz, Calif.-based location analytics fi rm Placer.ai, visits to ALDI stores rose 15.4% from November 2023 to November 2024, and tra c was up 3.8% month over month from October to November. ALDI U.S. came in at No. 28 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in the United States.
In its fi rst-ever “(Un)Wrapped Report,” released in December 2024, ALDI reported that it opened more than 120 new stores in 2024 and attracted nearly 20 million new shoppers. In addition, the grocer launched more than 2,000 new ALDI Finds products during the recently concluded calendar year.
Delving Into ALDI’s Magic Formula
ALDI’s leaders understand that the organization has a unique approach and execution.
“To me, the foundational principles of what we do and how we run our business – being intentional about how we create value day in and day out for our customers – and the juxtaposition of how much we’ve evolved while still holding true to those principles, is one of the things that I’m most proud of in my role for the time that I’ve been with ALDI,” asserts Rinaldo. “I still have moments where I say, ‘I don’t believe where we are now!’ and how much this brand is as adopted and loved as it is. At the same time, as a company, we don’t stop much to pat ourselves on the back because we have a lot of work to do. We know that we can never stop investing in running the most extraordinarily e cient operation that we can and providing the best value for customers. The strength of that drive is that it doesn’t allow us to get distracted.”
That drive is evident as ALDI continues to scale up at almost every level. During a keynote speech at the Private Label Manufacturers Association (PLMA) annual trade show in Chicago this past November, Rinaldo confi rmed that ALDI’s fiveyear growth plan includes more than $9 million in investments, plans for more
than 800 stores, and entry into such new markets as Las Vegas. Currently, ALDI operates about 2,400 stores in 38 states, sta ed by 46,000 or so employees; the company is also in the midst of transitioning hundreds of Winn-Dixie stores into ALDI stores, following its acquisition of Jacksonville, Fla.-based Southeastern Grocers Inc. in 2023.
“We believe that price brings people in the door, but we know that it’s quality that has them coming back.”
Dave Rinaldo, ALDI U.S.
At the PLMA event, Rinaldo underscored the intentional points of difference that make ALDI a destination, such as the average 12,000-square-foot store size, electronic shelf labels that save time and resources, multiple bar codes on products that enable faster checkout, a smaller curated selection of products, and, of course, the quarter-based cart system.
“We carry a small, controlled and curated list of less than 2,000 SKUs,” he explains to PG. “We could have given into temptation and gone to 3,000, 4,000 or 5,000 SKUs, but we knew it would take away from how we want to run our model and how we deliver that value for our customers. We also fought the temptation of store size – we could have tripled or quadrupled the size of our stores, but it wouldn’t have been us. And we would have never changed our lowprice position. We do that as an organizational obligation – it’s in our DNA. The last thing that hasn’t changed is quality. We believe that price brings people in the door, but we know that it’s quality that has them coming back.”
Mirroring the pace of work at its updated and new stores, the retailer is making improvements to its corporate headquarters as well. The U.S. campus, in Batavia, Ill., is undergoing a renovation that includes the refurbishing of three existing o ce buildings and the design and construction of a fourth structure.
“The new designed space is going to be great,” enthuses Rinaldo. “It’s going to allow our teams to work and collaborate in di erent ways. We’re excited for that development. I’m looking forward to that at some point in the next year.”
To his point, the major investments in stores and its corporate o ces exemplify ALDI’s commitment to creating a work culture that espouses a “rising tide lifts all boats” philosophy.
“We’ve always been a company that’s believed in paying industry-leading wages,” notes Rinaldo, “but we want to empower our teams to make decisions to drive our business forward. We retain people disproportionate to industry. And there are many, many, many people like me
Key Takeaways
ALDI has made itself a value destination through such tactics as smaller store size, electronic shelf labels that save time and resources, multiple bar codes on products that enable faster checkout, a smaller curated selection of products, and a quarterbased cart system.
This approach is keeping ALDI poised for more impressive performance in the United States and beyond.
Macroeconomic conditions over the past few years have created a conducive environment for other value chains, like Trader Joe’s and Dollar General, to expand and thrive, too.
ALDI U.S. President Dave Rinaldo (left) is “bullish about the future” at the deep discounter, which is renovating its U.S. campus.
FEATURE Value Leaders
who have spent decades in this organization. Having that retention and having people understand where the business has come from, it’s a tremendously valuable thing, and it’s as important now as it ever has been.”
As for 2025 and beyond, these holistic tactics are keeping ALDI and its Aldi Süd parent organization poised for more impressive performances, with the company reporting gains in every income demographic in the United States.
“I’ve been on this journey for 25 years, and I’ve seen us grow year after year, and certainly, the pace of our growth and success has continued to increase. That’s changed, but what we do is the core competency of ALDI – it’s our o er. We’ve been driving hard to make things high-quality and a ordable, but also exciting,” Rinaldo tells PG, adding, “We’re pretty bullish about the future here.”
How Trader Joe’s and Dollar General Also Unlock Value
Macroeconomic conditions over the past few years have created a conducive environment for other value chains to expand and thrive, too. Monrovia, Calif.-based Trader Joe’s, for example, continues to successfully navigate the intersection of value, discovery and quality, much of that gleaned through its assortment of store-brand products and a planned strategy for new store openings. The retailer –owned by Aldi Nord – operates around 600 stores as 2025 gets underway.
According to data from Placer.ai, Trader Joe’s outperformed the wider grocery category in year-over-year visit growth during most of 2024. From November 2023 to November 2024, store visits were up 6.3%.
A Trader Joe’s representative tells PG that the company continues to focus on both organic and planned expansion, in terms of its physical store presence and store shelves.
“Since Trader Joe’s began in 1967, we have been in growth mode,” says Nakia Rohde, public relations manager. “Some years, we grow more than other years, and our goal is always to bring delicious products at great values to as many people and neighborhoods as we can. The best way to do that is to open more stores. Our buyers have traveled the world searching for products we think are exceptional and will fi nd a following among our customers.”
“Our goal is always to bring delicious products at great values to as many people and neighborhoods as we can. The best way to do that is to open more stores.”
Nakia
Rohde, Trader Joe’s
She continues: “To earn a spot on our shelves, each product is submitted to a rigorous tasting panel process, in which every aspect of quality is investigated in the context of the price we can o er. If a product is assessed as an outstanding value, it becomes an essential part of the Trader Joe’s shopping adventure. We want our customers’ experience while shopping in our stores to be rewarding, eventful and fun.”
Dollar General (DG) is another national retailer that aims to provide solutions for shoppers in their quest for a ordability and quality. The Goodlettsville, Tenn.-based retailer continues to add new locations while touting its general-store format and the availability of fresh produce at more than 6,000 of its locations around the country. Currently, DG operates more than 20,000 stores across 48 states.
“With approximately 75% of Americans living within 5 miles of a DG, we are uniquely positioned to serve customers and communities across the country by providing access to convenient, healthy and a ordable everyday essentials,” Brian Hartshorn, SVP, general merchandise manager at DG, tells Progressive Grocer. “In fact, all of DG’s stores o er the components of a nutritious meal, including proteins, grains, dairy, frozen and canned vegetables, canned fruits, and more, alongside many of the world’s most trusted brands such as Coca-Cola, PepsiCo/Frito-Lay, General Mills, Hershey, J.M. Smucker, Kraft, Mars, Nestlé, Procter & Gamble, and Unilever.”
The addition of more fresh produce has been welcomed by customers as they’ve dealt with elevated infl ation over the past few years.
“Our produce set o ers shoppers the top 20 items typically sold in traditional grocery stores, including a curated assortment of lettuce, tomatoes, onions, apples, bananas, strawberries, potatoes, sweet potatoes, lemons, limes, salad mixes, and more,” says Hartshorn. “DG has responded to many community requests across the country, opening new stores, adding fresh produce, or o ering expanded product sets to help meet the needs of communities and their residents. In fact, the addition of fresh produce at our stores in Little Rock, Ark.; Cedar Falls, Iowa; Hitchcock, Texas; and Fruitdale, Ala.; were a direct result of customer and community feedback.”
Value retailers Trader Joe’s and Dollar General are both in active growth mode across the United States.
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THE ART OF
Smaller Spaces and More
LEADERS IN STORE DESIGN DISCUSS A MOVE AWAY FROM EXPANSIVE FORMATS IN CERTAIN MARKETS, AS WELL AS OTHER EMERGING TRENDS.
By Bridget Goldschmidt
As the saying goes, “Small is beautiful,” but many grocery stores embody the opposite principle, presenting dozens of aisles, packed with everything their customers could possibly want, in a huge, cavernous space. This approach is gradually changing, however, as more grocery retailers opt for smaller formats.
“The emergence of new store concepts and formats is at the intersection of customer expectations and retailers’ transformation to meet those preferences,” explains Sheri Blattel, associate principal and director retail at Cushing Terrell, an architecture, engineering and design rm with 13 of ces across the United States. “A focus on local, artisanal, interactive and enjoyable experiences has led retailers to launch smaller-format concepts in targeted urban markets. Whole Foods Market, Hy-Vee and even Walmart are delivering on the evolving customer habits and preferences for convenience and curated experiences.”
This past year, Cushing Terrell collaborated with several retailers — some new to the retail grocery marketplace, others established brands — to launch small-format concepts.
BRR Architecture worked with Whole Foods Market on the development of the smallformat Daily Shop concept.
Working with one retail client, “we explored design solutions for a 6,000-square-foot rstoor concept in the heart of an urban live-work community,” notes Blattel. “Goal one was to create a vibrant and comfortable daily shop to be activated through all parts of the day. The center focus was a counter for beverage service, baked goods, and grab-and-go items. A curated wine corner provides local and approachable labels for take-home and in-store enjoyment. The seating area is cozy and adaptable for both morning coffee and evening bistro settings. The store includes perimeter grocery shelving and several grocery aisles with local brands. Light, color, texture and biophilic design elements brought the concept to life.”
Carol Bartolo, AIA, VP at BRR Architecture, with 10 of ces around the country, agrees that “a prominent trend in food retail design is the shift toward smaller-format stores, driven by urban consumers’ demand for convenience and
Key Takeaways
A focus on local, artisanal, interactive and enjoyable experiences has led retailers to introduce smaller-format concepts in targeted urban markets.
Technological advances such as self-checkout solutions, mobile app payments, AI and automation are also increasingly being incorporated into store design.
Thoughtfully designed communal areas are creating a greater sense of connection among shoppers and associates, while eco-conscious consumers will spur grocers to pursue ever-more-sustainable design concepts.
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Store Formats
accessibility. At our rm, we address this by designing compact, strategically located stores that prioritize ef cient layouts while still providing a reliable, full-service grocery experience that includes fresh produce and grab-and-go meals.”
To that end, BRR recently worked with Whole Foods on the Daily Shop, a small-format grocery store in New York City’s Lenox Hill neighborhood. “At just 10,000 square feet, this innovative concept is smaller than traditional grocery stores, offering a convenient yet comprehensive shopping experience,” says Mark Scherrer, AIA, VP at the architecture rm. “The smaller store layout is designed with urban customers in mind, offering ef ciency and easy access – perfect for those on the go. This is a design approach that re ects a broader industry shift towards smaller, strategically located stores. We’re thrilled to support the expansion of the Daily Shop concept across the New York City metro [area].”
Self-Checkout and the Shopping Experience
Spaces may be growing smaller in some locations, but those spaces are growing ever more impactful, thanks to technological advances.
“Another signi cant trend is the continued integration of technology, namely self-checkouts and other measures in the store [that] increase speed and ef ciency,” asserts Sherrer. “For some retailers, self-checkout is here to stay, and we have worked to integrate these checkouts within the current footprint of the stores.”
“The most signi cant recent technological advance within the last several years is the implementation of self-checkout,” af rms architect Richard Paroly, of Harrison, N.Y.-based boutique architectural services rm Concepts-Enterprise. “This affects store layouts, depending on the extent of implementation by the store operator, and helping customers trying to pay and go, and reducing the demand on the front end managers to provide more checkout personnel.”
“If retailers don’t adapt to customer expectations and technological advances, it naturally leads to customer dissatisfaction — store design being a key factor.”
Carol Bartolo, BRR Architecture
Adds Paroly: “I think that the most signi cant change [to future store design] can be from advancing the self-checkout mindset further, combined with the change of method of consumer shopping online. Customers shopping online are not presented with the mass merchandising that has been the established merchandising technique as long as supermarkets have existed. The only merchandise in a retail food store that requires eye contact and selection by the customer are the perishables. The rest does not and could be supplied to the customer like a giant vending machine and rung up to the
customer’s bill as they shop. Aside from reducing the time required of customers to shop, and perhaps encouraging them to come back to the store instead of ordering online, it would also reduce the size need for a full-size supermarket.”
Despite the current and perhaps future prevalence of self-checkout among most grocery retailers, Scherrer notes that “other brands are removing self-checkouts entirely to adopt AI-powered contactless technology, mobile app payments or to reinstall full-service checkout lines. Whether grocers are checking in or checking out of self-checkout, these decisions have a direct impact on store layout and design.”
Looking at the larger retail picture, Blattel observes: “Retailers are creating customer loyalty and trust by integrating new experiences, curated options, convenience and technological advancements. ... AI can successfully be integrated for operational ef ciencies and operational excellence in support of brands’ overall practices and policies. These options allow store associates to operate at an elevated level in being brand ambassadors to the customer.”
“In the coming years, AI and automation will play a larger role in food retail design,
Cushing Terrell teamed with Town & Country Markets to remodel the independent’s Mill Creek, Wash., store and restaurant.
Self-checkout, as shown at Whole Foods Market’s Daily Shop store, is here to stay for many retailers and has a profound effect on store design.
with technologies like ‘Just Walk Out’ and AI-driven inventory management becoming more widespread,” predicts Scherrer.
Creating Community and Going Green
What may prove most enduring in emerging grocery store design are the communal areas that operators can offer. Bartolo points to such “community-focused spaces,” while for her part, Blattel mentions “placemaking within a retail grocery setting to create a social gathering space for elevated experiences, connectivity and a lingering visit,” as Cushing Terrell did with its recent collaboration with Seattle-based independent Town & Country Markets to remodel the grocer’s Mill Creek, Wash., location, including the in-store Field House restaurant.
“The new layout strategically allows for improved customer experiences,” she says. “For example, the café includes bar seating so customers can interact with Town & Country staff, while the sushi area is now near the front of the store with a customer-facing counter where people can see their sushi being freshly prepared. With a modi ed customer-facing layout, new interior and outdoor connections, and overall color and material selections, the remodel helped bring about a new food, beverage
“The grocery store as a social gathering space will become a key element in store design.”
Sheri Blattel, Cushing Terrell
Placing Value on Health and Wellness
It’s important for grocers to make their commitment to the health and wellness of their customers manifest in the stores they operate, according to one expert in the eld.
“Consumers today span several generations, all placing value on health and wellness in their daily lives,” says Sheri Blattel, associate principal and director retail at Cushing Terrell, an architecture, engineering and design rm with 13 of ces across the United States. “This need translates to opportunity for food retailers to express that value in store design. Product education and interactive experiences meet the consumers’ preference for this integration into their shopping journey.”
and dining experience within the existing grocery store.”
These moves are just the beginning according to Blattel, who asserts: “The grocery store as a social gathering space will become a key element in store design; thoughtful and intentional moments in the physical store are opportunities for retailers to further explore elevated customer experiences.”
Scherrer similarly forecasts that “experiential retail will continue to grow, with stores offering interactive spaces for customers to engage with products and community-focused areas.”
Alongside the trends described above, sustainability is much on the minds of design leaders.
Scherrer believes that “sustainability will continue to be an area of focus, as consumers demand environmentally friendly products and practices, possibly leading to an increased use of more sustainable materials and energy-efcient refrigerant systems in store designs.”
“The eco-conscious consumer will expect retailers to continue to adopt sustainability in their design, building construction, operational practices, sourcing, packaging and brand strategies into the future,” agrees Blattel, adding, “Innovative design solutions in back-of-house and prep areas can support retailers’ programs to reduce waste.”
Retailers that fail to keep up with these trends risk providing a suboptimal shopping experience. Bartolo points out that “we know, based on years of experience, that if retailers don’t adapt to customer expectations and technological advances, it naturally leads to customer dissatisfaction — store design being a key factor. … Whether it’s store format, online ordering, product variety or convenience in location, shoppers increasingly seek out stores that provide a personalized experience. Retailers should align their store design with these evolving needs to retain customers and maintain foot traf c and sales.”
Designs created with rms like Cushing Terrell can enable retailers to explore elevated customer experiences.
When Fast Food Is Good Food
GROCERS ARE TRYING TO MEET CONSUMERS’ DEMANDS FOR LOWER-CALORIE, HEALTHIER FARE IN DELI AND PREPARED FOODS.
By Debby Garbato
The United States is a world leader in economics, military might and political in uence. It also dominates fast-food consumption, with an annual expenditure of $160 billion, according to WorldPopulationView.com. Thirty-seven percent of U.S. residents eat fast food daily, contributing to obesity and other health issues. But while some consumers are dedicated fastfood fans, many want healthy prepared foods that are convenient, satisfying and affordably priced.
“It’s about meeting shoppers’ needs,” says Rick Stein, FMI’s VP, fresh foods. “Retailers have an opportunity to increase assortments of nutritious, healthy options in foodservice/deli departments and better communicate product attributes.” He adds that lunch is showing the most growth for grocery foodservice, followed by dinner.
Not all supermarkets’ deli and prepared food departments are meeting these needs. While 56% of consumers want better-for-you options, just 26% are “very satis ed” with current offerings, notes FMI – The Food Industry Association. Many products are fried, battered or cream-based, as well as high in salt, fat and calories. On the bright side, Arlington, Va.-based FMI says that most shoppers view deli/prepared foods as a “good value” compared with quick-serve or fast-casual fare.
“Most grocers advertise ‘fresh’ as a pillar and a promise,” observes Patrik Hellstrand, CEO of Los Angeles-based high-tech salad bar provider Picadeli, “but when you look for convenience food for lunch, it’s anything but fresh. ... Millions of people eat it because it’s accessible and affordable.”
Filling the void for healthier options could be an opportunity to grow sales and pro ts in a category where margins can approach 50%, compared with 1% to 3% for other grocery segments.
Shoppers’ reasons for seeking healthier foods vary, as do demographics. “There’s no one overarching demographic,” notes Krystal Register, VP, health and well-being at FMI, as well as a registered dietitian. “One household may shop for multiple health bene ts at the same time. Consider a household with a vegetarian teen, a gluten-free celiac adult and an elderly diabetic, cooking and eating together.” Register adds that 76% of shoppers put “some effort” into choosing healthy options, with 27% expending “a lot” of effort into doing so.
Picadeli makes high-tech turnkey salad bars that alleviate spoilage and labor problems for retailers.
Key Takeaways
Filling the void for healthier prepared food options could be an opportunity for grocers to grow sales and pro ts.
Specialty grocers do a good job with healthy takeout foods, although price can be an issue.
Some mainstream grocers are taking major steps to make meals healthier, convenient and reasonably priced.
Courtesy of SpartanNash
“In developing recipes, we look at nutrition, focusing on balancing health and taste.”
Hilary Aspy, New Seasons Market
Healthy-Focus Retailers
Specialty grocers like Austin, Texas-based Whole Foods Market undoubtedly do a good job with healthy takeout foods. Offerings are pricey, but Whole Foods isn’t the only player in town. For example, the deli departments at regional grocer New Seasons Market feature many healthy, well-priced options.
“We try to have diverse options,” af rms Hilary Aspy, program category manager, prepared foods and category director, perishables at the Portland, Ore.-based chain. “In January, we plan to offer more for gluten-free, vegan and other special diets.” Menus are changed seasonally, with citrus “a big winter focus for salads, proteins and sides,” including a kale, beet and tangerine salad. “We focus a lot on proteins,” she adds. “It’s cheaper than eating out. We’re very cost-conscious.”
Products are made in-house, emphasizing clean labels and minimal ingredients and handling. Nutritional information is provided. “In developing recipes, we look at nutrition, focusing on balancing health and taste,” says Aspy. “We want to bring the cleanest labels to shelf. There’s antibiotic-free and organic chicken.” Even mac and cheese and rotisserie chicken have clean, minimal ingredients. “They’re minimally processed,” she notes. “The ingredient list is much shorter than, say, at Walmart.”
Many foods are sold by the pound, letting shoppers determine portion size, says Matt Mason, group director, perishables. New Seasons also calls out attributes like limited salt, low calories, plant-based or suitability for certain diets. “Be they hot foods, salads or proteins, customers trust us,” adds Mason. The 21-store retailer also uses many local suppliers.
New products are promoted via ads and social media, according to Mason.
New Seasons also runs weekly “hot deals” and includes deli/prepared foods in its loyalty program. “There’s many ways customers can engage and save money,” notes Nancy Moon-Eilers, VP, merchandising/marketing.
Within the Mainstream
Some mainstream grocers, like Grand Rapids, Mich.-based SpartanNash, are taking major steps to make meals healthier, convenient and reasonably priced. Using shopper data and insights, the retailer launched pilot stores in Holland and Sparta, Mich., whose expanded deli options emphasize nutrition.
“Consumers have many choices,” says Marianne Schmidt, director of deli. “They don’t have to visit a ‘health food store’ or specialty grocer to nd fresh, natural or organic options. It’s about evolving to meet shoppers’ needs.”
“Healthier choices aren’t necessarily more expensive. We highlight seasonal produce and whole grains in our meal kits and o er weekly promotions to help guests maximize budgets.”
Marianne Schmidt, Spartan Nash
Pilot stores’ takeout solutions include a Caribbean grain bowl with salmon and chimichurri, and $20 healthy, quick meal kits for four. In its sauces, SpartanNash addresses calorie counts, which can be high for this type of condiment. “Flavorful sauces and toppings like chimichurri, romesco, pesto, pico de gallo and fresh herbs make meals satisfying without adding many calories,” observes Schmidt. This year, SpartanNash plans to add grain bowls to more stores and redesign its sandwich and green salad programs to expand options, including more grains. Ingredients are clearly labeled and highlighted.
Pricing is competitive, with frequent sales on items like fresh-cut produce bowls and Simply Grilled or Italian Citrus sous vide chicken breast. “Healthier choices aren’t necessarily more expensive,” says Schmidt. “We highlight seasonal produce and whole grains in our meal kits and offer weekly promotions to help guests maximize budgets.”
The Kroger Co., based in Cincinnati, is also on a health kick. Its Home Chef meal delivery platform is emphasizing “ avor fads” and better-for-you, convenient fare for 2025. Offerings include foods tied to the body’s natural production of GLP-1, including higher- ber and higher-protein ingredients. Kroger’s market research division, 84.51°, has found that protein is the leading nutrient sought by consumers.
In addition to shrimp and salmon, Home Chef is creating dishes incorporating seafoods like mahi mahi, petite scallops, yellowtail, barramundi and trout. In some dishes, it’s using hot, depth-enhancing peppers from around the world, including jalapeño, sambal, piri piri, gochujang, and amarillo and Hatch chiles.
SpartanNash plans to add grain bowls to more of its stores.
A display of SpartanNash prepared foods.
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Connect with industry professionals from across the world by attending IDDBA 2025 in beautiful New Orleans!
Capitalizing on a longtime favorite children’s book character, SpaghettiOs Original Canned Pasta With Where’s Waldo? Shapes aims to make mealtime a game of hide and seek. The playful kids’ pasta features fun Where’s Waldo?-themed pasta shapes – including Waldo, Woof, Waldo’s iconic striped shirt and his perennial beanie – in a rich tomato-and-cheese sauce. Further, not only is the product fun, but it’s also nutritious: Each serving is packed with four essential nutrients and contains a half-cup of vegetables, offering a wholesome and easy lunch or dinner option for on-the-go families. A 15.8-ounce can retails for a suggested $1.08. SpaghettiOs is just one of the iconic brands of The Campbell’s Co. https://www.campbells.com/spaghettios/
Spice Up Homemade Chili
C.H. Guenther & Son, a supplier of branded and private label gravies and sauces, seasoning mixes, frozen bakery products, soups and snacks for retail and foodservice, and global branded food company Hormel Foods have teamed up to offer the rst-ever Hormel Chili Seasoning Mix Packets. The collaboration offers a novel way for chili fans to enjoy the classic taste of canned Hormel Chili in their own homemade chili dishes. Hormel Chili Seasoning Mix comes in three varieties – Original, Mild and White Chicken Chili –each packed with a blend of premium spices and designed to cater to a wide range of palates and preferences. A 1-ounce packet of any variety retails for a suggested retail price range of $1.79-$1.99. https://chg.com/; https://www.hormelfoods.com/; https://www.hormel.com/brands/hormel-chili/
Hi, Protein!
Dip Into This
Beloved beaded ice cream brand Dippin’ Dots has now come out with Dippin’ Dots Ice Cream Sundaes, marking the popular brand’s rst expansion into grocery store freezers. Now Dippin’ Dots fans can enjoy their favorite treat in a novel format – individually portioned cups designed for easy snacking. The deluxe three-tiered sundaes come in two fan-favorite avors, Cookies ’n Cream and Cotton Candy, with each sundae cup featuring dots, cookie pieces and ice cream, topped by a avored sauce. Dippin’ Dots Ice Cream Sundaes debuts at Kroger this month and then at additional retailers throughout the year. A four-cup box of either avor will retail for a suggested $6.99. Dippin’ Dots is a brand of J&J Snack Foods. https://www.dippindots.com/; https://www.jjsnack.com/
LALA’s most recent yogurt launch is LALA Gold, a high-protein yogurt with a premium nutritional pro le in drinkable and spoonable options made with real fruit. Each serving of the drinkable yogurt contains 25 grams of protein, 6 grams of dietary ber and no added sugar, while the spoonable yogurt features 20 grams of protein, 1 gram of dietary ber, active probiotics and no added sugar per serving. The product line comes in ve avors – Raspberry Key Lime, Blueberry, Cookies & Cream, Vanilla, and Strawberry – all packed with essential nutrients to support an active and balanced lifestyle. A 10-ounce bottle of any avor of the drinkable yogurt retails for a suggested $2.36, and the suggested retail price for a 5.3-ounce cup of any avor of the spoonable yogurt is $1.48. LALA U.S. Inc. is a subsidiary of Grupo LALA, an international foods company with signi cant operations in Mexico, Brazil and the United States. https://www.lalafoods.com/; https://www.lala.com.mx/
What’s Cooking Now
Iconic PAM Cooking Spray, a brand of Conagra Brands Inc., has now introduced a formula speci cally designed for air fryers. Unlike traditional cooking spray, on-stick PAM Air Fryer Spray delivers superior performance while addressing a concern consumers have when they use cooking sprays on an air fryer’s wire tray or basket – the potential for wear and tear. PAM Air Fryer Spray is specially formulated to reduce residue and buildup on the wire basket or tray, which can affect the appliance’s performance. With a 450-degree smoke point – higher than that of traditional cooking sprays – PAM Air Fryer Spray can withstand the high temperatures used in air frying, as its ingredients won’t brown or smoke easily. The spray, which is made with no arti cial preservatives, avors or colors, can be applied to an air fryer’s wire tray or basket or even used directly on uncooked food to promote browning and crisping of wings, tenders, fries and more. A 6-ounce orange can of PAM Air Fryer Spray retails for a suggested retail price of $3.99. Retailers, take note: According to Circana, more than 60% of U.S. households own an air fryer, and they continue to be popular gifts. https://www.pamcookingspray.com/; https://www.conagrabrands.com/
Get Ready for Garlic
Mediterranean-inspired dip and spread maker Cedar’s Mediterranean Foods has just introduced its latest product line: Toum, an authentic Lebanese garlic-based dip and sauce. Each SKU – Original Garlic, Kalamata Olive and Roasted Red Pepper – is made with fresh garlic to achieve a bold, creamy avor. Toum complements a wide range of dishes and dippers, from pita and grilled meats to fresh vegetables and sandwiches. Made with simple, clean ingredients such as garlic, oil and salt, the non-GMO product line is also free of gluten and arti cial preservatives and avors. An 8-ounce tub of any avor retails for a suggested $4.99. https://www.cedarsfoods.com/
More Nuts Than Ever
“Wow-Worthy” Treats
Founded by single mom and former KIND Snacks exec Lindsay Hancock, My Better Batch is a premium cookie mix brand that aims to transform holiday baking with easy three-step mixes made with simple, clean, non-GMO ingredients, delivering true homemade taste in minutes – no time-consuming hard work required. The product line is available in four popular varieties, each promising to deliver what the brand calls “wow-worthy” treats: Double Chocolate Chip Cookie Mix, Chocolate Chunk Cookie Mix, Celebration Cookie Mix and Classic Sugar Cookie Mix. A 16-ounce box of any mix variety retails for a suggested $7.99. https://mybetterbatch.com/
The latest snacking innovation from leading almond marketer and processor Blue Diamond Growers is Almonds and More, a product line that fuses Blue Diamond’s signature avors with popular mixed nut blends – a rst for the mixed nut category, as well as the brand’s inaugural foray into that area. The line comes in three varieties, each consisting of more than 50% almonds, complemented by a blend of cashews and pistachios: indulgent yet wholesome Honey Roasted Almonds and More, crunchy and avorful Roasted Sea Salt Almonds and More, and bold, savory Smokehouse Almonds and More. A 14-ounce can of any variety retails for a suggested $11.99 at Kroger stores nationwide, with the product set to roll out to other major retailers early this year. Blue Diamond is a grower-owned cooperative representing about 3,000 of California’s almond growers. https://www.bluediamond.com/
By Bridget Goldschmidt
Expanding Access
A RECENT CONFERENCE EXPLORED THE WAYS THAT VARIOUS STAKEHOLDERS CAN GET HEALTHY FRESH FOOD TO UNDERSERVED COMMUNITIES.
At the Grocery Retail for All Summit, an invitation-only conference held on Dec. 13 by Food Systems for the Future and The Global Food Institute (GFI) at the George Washington University, the emphasis was on nding solutions to the ongoing issues of lack of access to healthy fresh food and of food insecurity in what have come to be known as food deserts.
To that end, as GFI Executive Director Stacy Dean noted when kicking off the event, speakers would highlight successes in this area and how they might be replicated, as well as important policies to explore. The other distinguished introductory speakers were Ertharin Cousin, CEO and managing director of Food Systems for the Future, and Secretary of Agriculture Tom Vilsack.
Beyond the Store
As might be expected from the summit’s name, the retail sector loomed large in the action-packed agenda, beginning with a keynote address by Leslie G. Sarasin, president and CEO of FMI – The Food Industry Association. Observing in her remarks that “a store must be economically viable to succeed over time,” Sarasin asserted that “we’ve expanded our thinking beyond 75,000-square-foot brick-and-mortar solutions to explore new answers to the issue of better serving underserved areas. We’re experimenting with smaller-footprint, limited-assortment stores – in both rural and urban settings – but we think online ordering and grocery delivery show the most promise.”
“This work can’t stop.”
equivalent to $438 in national average prices. The original goal was quite simple, according to Servello: “No one goes hungry in Utica.” In the organization’s stores, customers can shop with a sense of dignity at discounted prices – ice cream always costs just $1 – amid “the palpable presence of love.”
—Ertharin Cousin, Food Systems for the Future
Added Sarasin: “The instigation of online SNAP bene ts is a move in the right direction toward improving food access and will get better with time. … This is an evolving and improving realm, but one that I think has distinct promise.”
No One Should Go Hungry
Additional notable contributions from retailers past and present included a panel on community and independent grocery leaders, during which Aaron “AJ” Johnson, owner and CEO of Tulsa, Okla.-based Oasis Fresh Market (and the recent recipient of a Progressive Grocer Impact Award), advised that “relationships are the greatest currency you can have” in getting a small-format grocery store up and running. Meanwhile, among the larger players, former Stop & Shop President Gordon Reid and Dollar General VP, Public Policy and Government Relations Steve Brophy discussed their companies’ respective efforts to “make the healthier choice the easier choice.” Also, retired Albertsons executive Larry Stablein moderated a panel on cultivating with nonpro ts and governmental programs the kinds of partnerships that can help widen food access.
Among the several “speed talks” offered during the summit, one that particularly stood out was by Mike Servello, founder and CEO of Compassion Coalition. The nonpro t operates two Bargain Grocery stores, one each in Utica and Troy, N.Y., where a $100 basket is
Other sessions dealt with how physical environment in uences behavior, the role of trading partners, opportunities for policy, and successful investment models, but the main takeaway from the day was that there is no one-size- ts-all method of boosting food access and security, and that all stakeholders can play a meaningful part. As Cousin urged in the nal session of the day, aptly titled “Where Do We Go From Here?,” in which she was joined by Dean and Stephanie Johnson, VP, government relations at the National Grocers Association, the connections forged at the summit must continue:
