food and food prep: better together

Food and Food Prep: Better Together

Presented by A.J. Riedel, Sr. PartnerRiedel Marketing Group

Confidential: Property of GMDC

About A.J. Riedel

I help housewares product management and marketing executives grow their businesses by providing them with the data and insight they need to make informed decisions about which products to bring to market and how to position, package, and market them.

I’ve been helping executives make better decisions at Cuisinart, Jarden, DKB, Bradshaw, Progressive, Chef’N, and many other housewares companies for over 25 years.


WHAT YOU’LL LEARN TODAY

• The natural synergy between the healthy eating trend and food prep products

• The product trends shaping the category• The shopper segments and their needs and preferences• The competitive advantage supermarkets have over

mass merchandisers• How supermarkets can leverage the opportunity for

incremental sales and margin dollars


THE NATURAL SYNERGY BETWEEN THE HEALTHY EATING TREND AND FOOD PREP PRODUCTS• The product trends shaping the category• The shopper segments and their needs and preferences• The competitive advantage supermarkets have over

mass merchandisers• How supermarkets can leverage the opportunity for



Americans are Eating More Fresh Food and Cooking From Scratch


And Buying Cookware, Bakeware, and Kitchen Gadgets & Tools

2010 2011 2012 2013 2014$1,300

$1,350

$1,400

$1,450

$1,500

$1,550

$1,600

$1,650

$1,700

$1,750

U.S. ShipmentsCookware, Bakeware, Kitchenware

(In millions of dollars)

Source: Cookware Manufacturers Association (CMA)


Food Prep Is a Natural Complement to Food Purchases


New Recipes Stimulate the Purchase of Food Prep Products

18-29 30-39 40-49 50-59 60 or older0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

79% 77%73%

68%

58%

I buy utensils, cookware, and other kitchen items if I need them for a new recipe or cooking technique.

(% who agree with statement)

Source: Market Tracker, Riedel Marketing Group


The Natural Synergy Between The Healthy Eating Trend And Food Prep Products

THE PRODUCT TRENDS SHAPING THE CATEGORY• The Shopper Segments And Their Purchasing habits• The Opportunity For Supermarkets• How Supermarkets Can Leverage The Opportunity


Fry and saute pans and skillets are the most popular type of cookware



Knife sets & spatulas/turners are the most popular kitchen gadgets



Bakeware sets, baking dishes & roasting pans are the most popular bakeware items




The product trends shaping the categoryTHE SHOPPER SEGMENTS AND THEIR NEEDS AND PREFERENCES• The Opportunity For Supermarkets• How supermarkets can leverage the opportunity for



Every One Buys Food Prep Products


All Ages

18-29 30-39 40-49 50-59 60 or older0%

5%

10%

15%

20%

25%

30%

35%

% OF US HOUSEHOLDS (CENSUS) % OF BAKEWARE PURCHASERS % OF COOKWARE PURCHASERS % OF KITCHEN GADGET PURCHASERS



Married and Single

Married Single Other0%

10%

20%

30%

40%

50%

60%

% OF US HOUSEHOLDS % OF BAKEWARE PURCHASERS % OF COOKWARE PURCHASERS % OF KITCHEN GADGET PURCHASERS



From Single-Person Households To Large Families

One Two Three Four or more0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%




Households with No Children and Households with Children

None 1 2 3 or more0%

10%

20%

30%

40%

50%

60%

70%

80%




All Household Income Levels

Less than $24,999 $25,000 to $49,999 $50,000 to $74,999 $75,000 to $99,999 $100,000 and up0%

5%

10%

15%

20%

25%

30%




Employed and Not Employed

Employed Not Employed Other0%

10%

20%

30%

40%

50%

60%

70%

Employment




Food Prep Product Shopper Segments


Millennials

Source: YPulse Survey June-July 2014


Especially Upscale Millennials

Source: Nielsen Scarborough 2015


Casual and Serious Cooking Enthusiasts

Casual cooking enthusiast Serious cooking enthusiast Non-enthusiastic cook Don't cook0%

10%

20%

30%

40%

50%

60%

70%

Type of CookBy age group

18-39 40-49 50 and older


According to Mintel, a Cooking Enthusiast is a person who cooks at least one to two times per week, either “likes” or “loves” cooking, has at least basic cooking skills, and typically cooks because he or she wants to rather than out of need.


Time-Constrained Cooks and Leisurely Cooks

One hour or less 2 hours 3 or more hours per day0%

10%

20%

30%

40%

50%

60%

70%

Time Spent on Food PrepBy age group

18-39 40-49 50 and older



Brick And Mortar and Online Shoppers

Retail store Online Other0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Channel of Distribution

BAKEWARE COOKWARE KITCHEN GADGETS



Shoppers Who Buy at Different Types of Stores

Mass/g

enera

l merc

hand

iser

Depart

ment s

tore

Specia

lty

Value d

iscou

nter/o

ff pric

e stor

e

Grocery

/drug

Wareho

use c

lub

Dollar

store

Hardware

/home c

enter

0%

10%

20%

30%

40%

50%

60%

Type of Retailer




Impulse Shoppers and Planners

I bought it on impulse when I saw it in the store. I went to the store planning to purchase0%

10%

20%

30%

40%

50%

60%

70%

80%

Impulse or Planned Purchase




Shoppers Who Know Exactly What They Are Going to Buy and

Shoppers Who Make the Decision in The Store

BAKEWARE COOKWARE KITCHEN GADGETS0%

10%

20%

30%

40%

50%

60%

70%

80%

When Decision on Specific Brand and Item Was Made

While in the store after looking at the items which were available. Before going to the store.



Current Owners and First Time Buyers

Old item stained, dirty or warped First one, did not have one previously Needed an additional one or a bigger/smaller size

0%

5%

10%

15%

20%

25%

30%

35%

40%

Reason for Purchase for Self





The Product Trends Shaping The Category The Shopper Segments And Their Purchasing HabitsTHE OPPORTUNITY FOR SUPERMARKETS• How Supermarkets Can Leverage The Opportunity For

Incremental Sales And Margin Dollars


“There’s an opportunity in supermarkets, where we sell all the ingredients you need to make the wonderful dishes that you see on the Food Network, to sell the kitchenware that goes along it. I really think it’s solution selling to enhance the food experience.”

Joe Kirby, Vice President, Retailer Sales & Category Management, Imperial Distributors Inc. of Auburn, MA.

“This is a great category for incremental sales and margin dollars, and it’s a natural tie in with all the food items in a supermarket.”

Anna Mancini, Vice President of Merchandising for Value Merchandising Company

The Opportunity for Supermarkets


“Combining kitchen gadgets, cookware, bakeware and small appliances, it’s the No. 3 GM category in terms of sales. For us, the category grew 5% in 2015 following healthy growth in 2013-2014. And it is a significant contributor to gross margin, even at promotional retail levels.”

Anna Mancini, Vice President of Merchandising for Value Merchandising Company

Merchandising food and food prep together leads to increased and

profits


People Visit Grocery Store Almost Every Week

Millennials Gen X Boomers0

10

20

30

40

50

60

70

39

48

58

Average Number of Grocery Store Trips

Source: “Millennials In 2015: Retail Deep Dive”, The Nielsen Company


And Are Most Likely to Buy on Impulse When They Are in the Grocery Store

I bought it on impulse when I saw it in the store. I went to the store planning to purchase0%

10%

20%

30%

40%

50%

60%

70%

80%

Impulse or Planned Purchase





The Product Trends Shaping The Category The Shopper Segments And Their Purchasing Habits The Opportunity For SupermarketsHOW SUPERMARKETS CAN LEVERAGE THE

OPPORTUNITY


Cross merchandise food prep products with related food

products in perimeter departments and food

aisles.


Appeal to the Impulse Shopper


Leverage your loyalty programs


Use social media and mobile technology


Tear down the siloes between food and GM


HTTP://4RMG.COM/MARKET-TRACKER/

Understanding the Food Prep Consumer

Leveraging the Food Prep opportunity starts with understanding the people who buy food prep products. Riedel Marketing Group’s Market Tracker will help you gain a better understanding of your market and your consumer.

http://4rmg.com/market-tracker/

FOOD AND FOOD PREP GO BETTER TOGETHER.

IT'S AS SIMPLE AS THAT.Research Supported by