2017 top trends in fresh foods - iri strategy and... · 2019-01-07 · albertsons, llc dave...

Copyright © 2017 Information Resources, Inc. (IRI). Confidential and proprietary. 1

2017 Top Trends

in Fresh Foods

SOCIAL STRATEGY & CULTURAL ALIGNMENT


Thank you to IRI and Burris Logistics

for making this webinar possible


FMI is the trade association that

serves as the voice of food retail.

We assist food retailers in their role

of feeding families and enriching

lives.


ASSETPROTECTION

EDUCATION RESEARCH

FOOD SAFETY& DEFENSE

GOVERNMENTRELATIONS

SUSTAINABILITY

SUPPLY CHAIN

HEALTH & WELLNESS

PRIVATE BRANDS

FRESH FOODS INFORMATION SERVICE

CENTER STORE

CONSUMER &COMMUNITY AFFAIRS

INDEPENDENTOPERATOR

COMMUNICATION WHOLESALER

TECHNOLOGY

The Association:

Our members are food retailers, wholesales and

suppliers of all types and sizes

FMI provides comprehensive programs,

resources and advocacy for the food, pharmacy

and grocery retail industry


Fresh @ FMI

Fresh Foods

Emphasis on fresh

• Produce

• Meat

• Seafood

• Deli/In-store, fresh prepared foods and

assortments

FMI is committed to the growth and success of fresh

companies and their partners. FMI provides resources

and networks that support the interests of member

companies throughout the global, fresh produce supply

chain, including family-owned, private and publicly

traded businesses as well as regional, national and

international companies.

Rick SteinVice President, Fresh Foods

Food Marketing Institute

[email protected]

202.220.0700


FMI Fresh Executive CommitteeJohn Ruane (Co-Chair)

Ahold USA

Rick Steigerwald (Co-Chair)

Lund Food Holdings, Inc.

Tom DeVries (Past Chair)

Giant Eagle, Inc.

John Beretta

Albertsons, LLC

Dave Bornmann

Publix Super Markets, Inc.

Scott Bradley

Target Corporation

Jerry Chadwick

Lancaster Foods, LLC

Alex Corbishley

Target Corporation

Chris Darling

Albertsons, LLC

Dan Koch

Associated Wholesale Grocers, Inc.

John Grimes

Weis

John Haggerty

Burris Logistics

Mark Hilton

Harris Teeter LLC

Chris Lane

Wakefern Food Corporation

Mike Malone

Brookshire Grocery Company

Dan Murphy

Unified Grocers, Inc.

Pat Pessotto

Longo Brothers Fruit Markets Inc.

Jerry Suter

Meijer, Inc.

Geoff Waldau

Delhaize America

Brett Bremser

Hy-Vee

Jim Lemke

Robinson Fresh

Emily Coborn

Coborns

Mark Doiron

Schnuck Markets, Inc.

Geoff Wexler

Wakefern

Steve Howard

Bristol Farms

Buddy Jones

MDI

Nick Carlino

MDI

Richard Cashion

Healthy Markets

Mike Papaleo

C & S Wholesalers

Blaine Bringhurst*

Price Chopper Supermarkets

Nicole Wegman*

Wegmans Food Markets, Inc.

The FEC seeks to • identify areas of

collaboration across all

fresh foods

departments

• promote understanding

and cooperation

throughout the industry

and with sister fresh

associations

• maximize common

learning’s between

fresh categories and to

create a vision of

leadership for the

entire fresh category

Fresh Foods


FMI Fresh Foods

Research and Education

In-depth information, trends and

insights to foster innovation,

take advantage of new

opportunities and help develop

winning strategies

Networking

Share ideas, explore best

practices and develop business

relations

Advocacy

Understand what is going on in

Washington and make your

voice heard


2017 Top Trends

in Fresh Foods


Today’s Discussion

Our Study

Trend Overviews

Social Strategy Deep Dive

3 – 5 Year Projection/Implications

2017 Education Series Rollout


Our study focused on finding the keys to high performance

Objective

industry interviews primary data analysis secondary research

Inputs

Define the major trends that are driving Perimeter sales outperformance and

will directly impact long-term success of retailers and suppliers over the next 3-

5 years


Perimeter outpacing other F&B departments over last 4 years

0.5%

1.1%

2.3%2.6%

1.4%

1.8%

3.8%

Frozen General Food Refrigerated Beverages Total Food Total F&B FreshPerimeter

4-YEAR CAGR DOLLAR GROWTH

2.1X

Source: IRI FreshLook POS data, MULO, 52 weeks ending 10/30/2016


Perimeter department

sales

$6.4B

$2.8B

$6.3B

$11.3B

$48.2B

$62.5B

$4.7B



2.3%

2016 Major Perimeter Highlights

Meat

Deflation

Seafood

Strength

Deli Prep

Growth

Produce

Churn

Bakery

Softening

Deli Cheese

Strength

Deli Meat

Stable

3.8%

5.3%

6.2%

5.0%

4.8%

1.…

1.3%

0.…

3.8%

5.3%

3.1%

3.2%

-3.0%

DOLLAR

VOLUME

DOLLAR

VOLUME

DOLLAR

VOLUME

DOLLAR

VOLUME

DOLLAR

VOLUME

DOLLAR

VOLUME

DOLLAR

VOLUME



2017 Emerging Top Trends in Fresh

Holistic

Health

Atomization of

Personalization

Social Strategy &

Cultural

Alignment

Hyper

Localization

RETAILER RESPONSE:

Customization

to New

Consumerism


For the Executive Agenda

Trends still in early stages

Embracing these trends drives

sales outperformance

Forms foundation for next generation

of success


We want to know…

Which option is your primary source to learn

more about the fresh foods you purchase?

a

b

c

d

Social Media

Newspapers/Magazines

Television

Your local store


Social Strategy

& Cultural

Alignment


Social Strategy & Cultural Alignment

A company’s ability to grow

sales by integrating the

underlying consumer

motivations and values that

ultimately impact sales


Each day, every minute on average…

722,389FACEBOOK LOGINS

150 MILLIONEMAILS SENT

2.98 MILLIONVIDEO VIEWS

20.8 MILLION+MESSAGES

972,222SWIPES

$233,596IN SALES

527,760SNAPCHAT

STORIES

76,194INSTAGRAM

PHOTOS


Video and Mobile Exploding Globally

Source: SimilarWeb 5/16

1BillionYouTube hours

watched daily

+8 BillionFacebook

videos viewed

+10 BillionSnapchat

videos viewed3.5 BillionPhotos shared

Each Day Globally:


Speed of Information - Average Day for U.S. Mobile User

Source: SimilarWeb 5/16

37

Average

# of apps

installed

12

Average

# of apps

used daily

3

Average # of

apps to 80%

usage

5

Hours spent

on phone

per day

MOST COMMON APPS


Accelerating Impact

INFORMATION IS MORE POWERFUL

• Real/Live video connectivity exploding

Millennials: Tech Savvy

Gen Z: Tech Innate

• Real and self-claimed authorities

REACTION TIME IS SHORT

• Brand health/equity can erode in months

• Critical mass of opinion forms quickly


How Do We Look Ahead?

IRI Social Advantage (40 million sites) with

full context filtering over 5 years

• Activist-led vs. Consumer-led

Consolidation and normalization of data

Survey and sales results

Executive interviews


We want to know…

Which of these five key issues most impacts your

purchase decisions on brands/items? (Select one)

a

b

c

d

Seafood Sustainability

Animal Welfare

Meat Certifications

Food Waste

e Workforce Treatment


Top Social Sentiment Drivers in 2016

FOOD

WASTE

+50%

FAIR FOOD/

FAIR WAGE

+104%

MEAT

CERTIFICATION/

CLAIMS

+223%

ANIMAL

WELFARE

+120%

SEAFOOD

SUSTAINABILITY

+97%

Source: IRI Social Advantage, 52 weeks ending 12/30/2016


Why The Concern?

FOOD

WASTE

+50%

FAIR FOOD/

FAIR WAGE

+104%

MEAT

CERTIFICATION/

CLAIMS

+223%

ANIMAL

WELFARE

+120%

SEAFOOD

SUSTAINABILITY

+97%


NOAA reports - Depletion of fishing stocks

Erosion of historical habitats

Controversial catch methods

Activist concerns evolving into consumer concerns


Seafood Sustainability – Key Issues

Target Stock Bycatch Habitat Management



Impression

Sources

50%microblog

34%news

5%social sites

10%blogs

1%message boards

Key InsightsConversations tilt toward restaurants,

but grocery focus is growing

Consumers are concerned about

environmental health and their own

health

“Aquaculture” is a rising concern– is it

sustainable, healthy?


Sustainable Seafood Key Influencers

Top conversation influencers go beyond

niche advocacy organizations

2.2MM+downloads



Seafood

growth

outperforms

F&B

+3.9%2016 Sales Growth


Fin Fish Shellfish



Why Does Sustainability Matter?

Strong

sustainability

programs sell

more

seafood

Strong/Average

Program

Weak Program

+7.9%YOY dollar sales

-2.7%YOY dollar sales

+4.8%YOY dollar sales

0%YOY dollar sales

SHELLFISH +2.6%FIN FISH +3.9%

Data Source: IRI FreshLook POS, MULO, latest 52 weeks ending 10-2-2016

Ratings Source: Greenpeace USA, Grocery Store Scorecard

Strong/Average

Program

Weak Program


Seafood Sustainability Aligns to Values

Top Rated Retailers typically sell

11% more sustainable Fin Fish than

Low Rated Retailers

Top Rated Retailers

grow sustainable fish sales

2X faster than Low Rated Retailers

Data Source: IRI FreshLook POS, MULO, latest 52 weeks ending 10-2-2016 Ratings Source: Greenpeace USA, Grocery Store Scorecard



FOOD

WASTE

+50%

FAIR FOOD/

FAIR WAGE

+104%

MEAT

CERTIFICATION/

CLAIMS

+223%

ANIMAL

WELFARE

+120%

SEAFOOD

SUSTAINABILITY

+97%



Animal Welfare Issues Cause Industry Earthquakes

Cage-Free Eggs Gestation Crate-Free Pork Antibiotic-Free Meat


Cage-Free Eggs

• Industry-wide retailer and

manufacturer pledges by 2025

12.5% 170

OF US FLOCKS

IN JAN 2017

PLEDGES FROM

RESTAURANTS

• Massive cost increases and

industry consolidation

• Demand may not be met


Gestation Crates

Major pledges from contract

and company farms

planned/implemented

15% 50%

CRATE FREE PLEDGE

Major retail and foodservice

commitments

SALES IN 2015 SALES IN 2022


Antibiotic-Free Meat

15% of 2016 chicken sales

40% by 2022

7%Exploding

Food Service

Commitment

OF TOTAL MEAT

RETAIL SALES

3.6% of 2016 beef and pork sales

• Future ABF change less than chicken

• New USDA rules in 2017


No-Antibiotic Meat/Poultry creates

strong basket growth

4.1%HH Buying

FZ/REFRIGERATED

ORGANIC CLAIMS

$18.87Per buyer

2.5trips/buyer

24%HH Buying

$27.58Per buyer

3.4trips/buyer

FZ/REFRIGERATED

NO ANTIBIOTICS CLAIMS

AVERAGE BASKET $42.59

$105.08 $106.90

ORGANIC

MEAT/POULTRY

SEAFOOD CLAIM

NO ANTIBIOTIC

MEAT/POULTRY/

SEAFOOD CLAIM


Top ABF/Organic retailers grow Fresh Meat faster

Top 20% of ABF/Organic Retailer RMAs grew

pounds 32% faster across Total Fresh Meat3.6% pound

growth vs 2.8%

Total 2016

US growth


Animal Certifications – Important, but no clear answer

KEY ISSUES: • Differing standards and practices

• USDA and industry standards set

• No definitive standard

30%EXTREMELY

IMPORTANT/

IMPORTANT FOR

PURCHASE

50%WILLING TO

PAY A PREMIUM

12%OF ANIMALS

COVERED BY

THE PROGRAMS


Actions and Values Noticed by Consumers

Source: IRI Social Advantage: Total US 2016

20%

30%

40%

50%

60%

70%

80%

90%

100%

% POSITIVE SENTIMENT

Brand A Top 3 Competitors

COMPANY EXAMPLE

Adopted key welfare practices

Top 3 competitors did not

Brand health and sentiment

strong

Outperformed on sales


What’s on the Horizon?

Slow Growth Chickens

KEY ISSUES:

• Activist-led

• Early acceptance by foodservice

• Similar pattern to cage-free movement (without videos)



FOOD

WASTE

+50%

FAIR FOOD/

FAIR WAGE

+104%

MEAT

CERTIFICATION/

CLAIMS

+223%

ANIMAL

WELFARE

+120%

SEAFOOD

SUSTAINABILITY

+97%


Food Waste is a Worldwide Issue

2.8 trillionlbs of waste globally

40%of food is

wasted

totaling

$165B

21%of municipal

landfill use

Food waste

is

16%of methane

emissions

A 15% reduction in US food waste

could feed 25 million people


Industry goals are set high

U.K. reduced

HH waste by 18%over 4years

50% reduction by 2030

50% reduction by 2030

Retailers have

increased food

bank donations

by 10x since

2006

Increased donations, recycle /

reuse

Major public relations

impact across Europe


Europe is leading

France outlawed food waste from

supermarkets

New 2016 laws in place

Supermarkets cannot deliberately

destroy dated product

Must sign donation contracts with

food banks and charities

New simplified process for donation

15% increase

=

10 million more meals

35,000 tonsalready donated

annually


Emerging

Innovative

Solutions


How we see this evolving

Continued integration between

industry and food banks

Preventable waste becomes more

visible in operations

Increased focus on right size

portions/packaging

Amplified consumer engagement

and communication



FOOD

WASTE

+50%

FAIR FOOD/

FAIR WAGE

+104%

MEAT

CERTIFICATION/

CLAIMS

+223%

ANIMAL

WELFARE

+120%

SEAFOOD

SUSTAINABILITY

+97%



Worker Issues

are Holistic

Workforce

Development

ImmigrationWage Levels

Worker Conditions


Fair Wage / FoodRetailer/grower partnerships:

Worker conditions

Pay/Wage agreements

Formal governance

Structure

Education commitments

Certification Programs


Workforce Development


+6.6%2016 Category Sales Growth

Company A Nuts / Citrus / Juices Snacks Nuts / Citrus / Rfg Juices

Source: IRI POS data, MULO, 52 weeks ending 10/30/2016

Company A’s

school to work

platform helps A

outperform


Social Responsibility – Major Corporate Initiative

COMMUNITY EDUCATIONHEALTH &

WELLNESSSUSTAINABILITY

Investing in the

communities where

we live, work and play

Empowering the next

generation to live,

learn and thrive

Changing the

paradigm of health

care in the Central

Valley

Protecting and

conserving our

natural resources


Key Takeaways

Changing from trend to a business

imperative

Will be the base for perimeter

growth and change over next

5–10 years

Increasing rate of retailer

integration and importance


Preparing for the Next 3-5 Years

• Expect rapid mainstreaming of key issues

• Understand the issue impact on:

• Brand health

• Brand equity

• Integrate listening/monitoring capabilities into

core marketing processes

• Develop your own 3-5 year view on how drivers

and category trends will evolve:

• Product requirements

• Sales impact


2017 Individual Trend Launches + Education Plan

Feb 23 Mar 23 Apr 27 June 1 July 13 Aug-Sept

Holistic

Health

Social Strategy

and Cultural

Alignment

Personal -

ization

Retail

Response

Chris DuBoisChris DuBois

Integrated

White

Paper

Summary

Presentation

Sally Lyons Wyatt

Webinar Webinar Webinar Webinar Webinar

Hyper

Localization

Webinar

Steve RamseySally Lyons Wyatt


Thank you to IRI and Burris Logistics

for making this webinar possible

Thank You!Chris DuBois

SVP, Strategic Accounts

[email protected]

(312) 342-8916

Rick Stein

VP, Fresh Foods

[email protected]

(202) 220-0700

2017 top trends in fresh foods - iri strategy and... · 2019-01-07 · albertsons, llc dave...

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