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The value of trend reports

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7. Climate-conscious call-outs: Climate consciousness is more relevant than ever, and as a result, brands are working to improve the impact of food and beverage production. Across our aisles, product labels are speaking to sustainability efforts in a time when consumers expect brands and retailers to do more related to carbon and climate.

8. Retro remix: Retro products are being reinvented with consideration for the wellnessconscious customer, creating the ultimate mash-up of throwback indulgences with better ingredients and special diets in mind.

9. Only the finest for fido: Pet supplements such as bone broth have exploded onto the scene, and pet-food recipes are dialing up the deliciousness.

10. Avocado oil craze: Taking the place of other oils such as canola and safflower oil in snacks, mayonnaise, ready-to-eat meals and more, avocado oil is sure to stick around.

There are other sources for trend reports such as data analysis companies such as Mintel and Nielsen IQ. They have access to front-end sales and therefore can predict trends in the future. FCC publishes a number of trend reports and updates through the year, helpful because it is Canadian and includes benchmarks for comparison. Often publications such as Canadian Grocer will share trends.

Create your own trends

Most businesses should have their own sales data to review. Comparing your results year over year can tell you a lot about what is happening with your customers and consumers. Look for trends regarding sizes and different SKUs to help with your future plans. You should consider what you are producing and inputs such as packaging and flavours if you are doing added-value products.

If you are selling products online and/or attract consumers to your website, you can learn a lot from the metrics available. Explore what consumers are buying and where they are visiting from.

Given the challenges of the pandemic, you might have to go back to 2019 to find a base year to compare results. We know sales fluctuated between retail and food service and there were many other factors influencing sales data. Once you decide on a baseline year you can explore your own data for trends to help you predict the future.

SKUFood trends for 2023

We have some trends for you to consider as we get into 2023. We approach this a bit differently as our trends are developed for suppliers in the food and beverage industry. They are based on what we learn talking to different retailers, suppliers and stakeholders in the industry.

1. Calm focus on the priorities: Everyone has endured two to three years of upheaval and challenges to produce. Retailers are looking to work with suppliers who are focused on how they can get it done as opposed to the reasons why they can’t.

2. Sales growth is key: With consumers returning to food service, retailers are facing negative comparable sales. Any supplier who delivers positive year-over-year growth will be ahead of many. 3. Stability in product cost: Food inflation is a big issue and retailers are eager to work with suppliers who find a way to keep their costs in line and deliver stability.

4. Local products that sell: Retailers have allocated more space and resources to regional and local brands. Now they need to see them deliver sales.

5. Sustainability matters: Sustainable packaging, reduced food waste and your environmental footprint all matter. They can be a path to the shelf or your route off the shelf if someone else in your category figures it out.

6. Tasty plant-based products: Until now, it has been enough to be plant-based, now the products need to taste good and sell. There are opportunities but plant-based is not enough anymore.

7. Reduce logistics costs: Products need to get from where they are produced to the shelf and it is costing more all the time. Retailers might entertain creative solutions such as fewer deliveries of more products, to share some benefits.

8. Accountants will have more input: Retailers are facing higher interest rates like everyone else. The cost of inventory and when it is paid for will be under more focus and pushed to the limits.

9. Communication is evolving: Some retailers are back with inperson meetings and others prefer video. Keep an open mind. Remember they are all different.

10. Watch your category: With sales declines, food inflation and focus on inventory, a lot might change. There could be a lot of pressure to drive private label, reduce SKUs and focus on items that sell. Spend time in the stores and talk to your customers about how to deliver sales growth.

As we enter 2023, it does not mean everything changes, but it is a good time to reflect on where you should invest your resources. Focus on the trends that are right for your markets, your consumers and your customers.

Peter Chapman is a retail consultant, professional speaker and the author of A la Cart-a suppliers’ guide to retailer’s priorities. Peter is based in Halifax, N.S. where he is the principal at SKUFood. Peter works with producers and processors to help them get their products on the shelf and into the shopping cart.