part 8 the changing shape of the cpg demand curve: … · 8/28/2020 · penetration for your...
TRANSCRIPT
August 28, 2020
PART 8 – THE CHANGING SHAPE OF THE CPG DEMAND CURVE: SNAP BENEFITS
COVID-19 and Navigating the Path Ahead
Read Other CPG Demand Curve-Focused Reports: Part 1 – Shopper Engagement, E-Commerce, CPG Demand & Beauty
Part 2 – Meat and Millennials’ Impact on CPG Demand Curve
Part 3 – Tracking Transformation of the Retail Landscape
Part 4 – A Global Perspective
Part 5 – Boomers
Part 6 – E-Commerce
Part 7 – U.S. CPG Growth Leaders
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 2
Executive Summary
In April, there were 42MM Supplemental Nutrition Assistance Program (SNAP) participants in the U.S., accounting for 13% of the total
population, an increase of 16% from March. SNAP participation generally follows unemployment trends, so as COVID-19 led to mass
unemployment, the numbers of SNAP recipients increased and continues to rise along with unemployment. SNAP households purchase
$55B, or 10% of Total Food & Beverage (sans produce, bakery, deli) sales annually, making them an important population to CPG retail.
SNAP Program and Recipient Overview
• While SNAP recipients can be of any age, they are more likely to be single / divorced and skew toward larger households. While a majority of recipients are white, both Black and Hispanic over index as a percent of total population.
• SNAP shoppers spend more time in the store and shop across a number of channels.
• Meal occasions represent 37% of SNAP recipient total CPG food and beverage spend; beverage and snacks are 43% of spend.
Food and Beverage Purchase Influencers
• Many top ranking snack categories revolve around convenience and feeding more for less.
• As with total population, snacking takes place throughout the day. SNAP recipients allot 21% of their spend on snacks.
• While Grocery is the top channel shopped, SNAP recipients skew on shopping Mass, Dollar and Drug, often due to proximity and value. Grocery should promote low-cost meal solutions, particularly with the national brands for which these shoppers show a preference.
Attract and Retain SNAP Recipients
• Leverage IRI SNAP Target Group to understand and embrace the increasing importance of SNAP shoppers; confirm or identify shopper penetration for your portfolio or retail banner.
• Educate shoppers about navigation based on occasion or needs to further engage and retain these SNAP shoppers as they emerge from dependence on the benefits.
• Encourage online shopping with list-building, promotions earlier in the month and by waiving online fees.
• Promote cook-from-scratch and healthy, affordable convenience meals.
• Demonstrate how products support specific health issues.
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 3
SECTION 01
SNAP Program and Recipient Overview
01
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 4
WHO IS THE SNAP SHOPPER?
Millennials (125 Index)
31%
In Addition to Being Low Income and Across Generations, SNAP Shoppers Are
More Likely to Be Single / Divorced and Living in Large Households With Children
Supplemental Nutrition Assistance Program
(SNAP) is a federal program that provides
nutrition benefits for eligible low-income
individuals and families to support their
ability to purchase healthy foods.
Due to COVID-19, the USDA implemented
a 40% increase in overall SNAP benefits,
which amounts to a $2B monthly allotment,
in addition to the usual $4.5B that goes
toward monthly SNAP benefits.
In April 2020, there were 42MM SNAP
participants in the United States, ~13% of
the total population, representing a 16%
increase in participants from March 2020.
Most households under the SNAP program
receive benefits for a six-month period
before requiring renewal. Benefit periods
can range from one month to three years.
Boomers
34%
White 69%
Compared to % of Total Population
19% 15%Black Hispanic
( 91 index) (160 Index) (120 Index)
Have HH Income Less Than $15K
36% (790 Index)
5+ Person HHs
17% (167 Index)Single or Divorced
54%(198 Index)
Live in Rural Areas
36% (126 Index)Do Not Own a Home
59%(249 Index)
Source: www.Diatribe.org, www.FNS.USDA.gov, www.Census.gov, www.SnaptoHealth.org / Population as of 7/1/20 – 329,877,505
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 5
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
Un
em
plo
ym
en
t R
ate
Recip
ien
ts (
MM
)
SNAP Participation and Unemployment
Snap Recipients Unemployment Rate
SNAP Participation Generally Follows Unemployment Trends
Unemployment Is Projected to Average 15% During Q2 and Q3 in 2020;
Expect SNAP Participation to Greatly Increase in 2020
RECESSION RECESSION
Source: U.S. Department of Labor
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SNAP Households Purchase $55B of Total Food & Beverage Annually,
and Typically Shop More Frequently Across a Variety of Channels
Source: IRI Consumer Network™, Total US – All Outlets, 19 WE 03/08/20 - 07/12/20 / *Total F&B excludes Produce, Deli, Bakery / 52 WE 08/09/20 / *for the period 3/8/20 – 7/12/20.
SNAP
Non-SNAP
SNAP Recipients GenerateF&B Dollars
9.7%
$55B
*
of the total U.S.
population, but nearly
10% of total F&B Spend
SNAP Recipients Equal
more trips* than
the total population
SNAP Shoppers Make
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 7
SNAP Recipients Who Spent 45 Minutes on
Their Last Regular Trip for Groceries In-Store
Over One Quarter of SNAP Shoppers Spend
More Time in Store Than Others; They Also Shop
With Their Children
SNAP Recipients Who Spent More Than 1 Hour
on Their Last Regular Trip for Groceries In-Store
CPG Retail Must Continue
to Assure Shopper Safety and
Increase Ease of Shopping
Source: IRI Weekly Surveys among IRI Consumer Network™ Panel representing Total U.S. Primary Grocery Shoppers 5/22-5/24.
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 8
Income Concerns May Impact
How SNAP Shoppers Spend
Source: IRI Weekly Surveys among IRI Consumer Network™ Panel representing Total U.S. Primary Grocery Shoppers – (5/22-5/24)
of SNAP shoppers state that their household's income is at risk because of restrictions created to curb the spread of COVID-19.
of SNAP recipients state they are putting planned purchases on hold and are reining in regular spending as best they can.
of SNAP recipients state they are having difficulty affording needed groceries.
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 9
SECTION 02
Food and Beverage Purchase Influencers
02
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Assist SNAP Shoppers With These Purchase Influencers
to Address Current Impact of Economic and Health Crises
Cooking & Convenience
01
Purchase Pivot
02
Pleasure
04
HealthyEducation
05
Affordability
03
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SNAP Consumers Have Challenges When It Comes to
Cooking at Home, Ranging From Recipe Ideas to Education
Difficult to come up with new meal
ideas25.5%
Lack of inspiration to cook 23.6%
Finding things to make that are
quick and healthy23.3%
Meal planning 18.1%
Not knowing what to do with
ingredients I may buy for a
special dish or meal after I make
that one thing
12.3%
SNAP Answers Skew
Higher Than Total Average
Recipe Ideas
Source: IRI Weekly Surveys among IRI Consumer Network™ Panel representing Total U.S. Primary Grocery Shoppers – 5/22-5/24.
Too much clean-up involved 27.7%
Limited storage / freezer space 22.6%
Finding healthy foods that don’t
require a lot of chopping /
preparation
13.2%
Easy Preparation
and Clean Up Ideas
Not having the ingredients I need
on hand29.8%
Finding healthy / fresh foods that
don’t go bad / spoil quickly25.2%
Limited storage / freezer space 22.6%
Confidence in my cooking / ability 13.6%
Hard to find healthy options that
work for 1 or 2 people11.6%
Education and Make
Shopping In-Store Easier
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 12
Meal Occasions Represent 37% of SNAP Recipient Total CPG F&B
Spend, While Beverage and Snacks Represent 43% of Their Spend
% of Spend25%Instant PotatoesShelf Stable DinnersFrozen Corn on the CobFrozen Dinners/EntreesDry Packaged Dinner MixesStuffing Mixes
4%Refrigerated Lunches
8%Toaster PastriesPastry/DoughnutsFrozen Breakfast FoodRefrigerated Baked Goods
5%Shelf Stable PuddingShelf Stable Dessert ToppingsFrostingIce Cream Cones/MixesSugarMarshmallowsEvaporated/Condensed Milk
1%Refrigerated Desserts
2%Baby FoodOther Baby
21%Bakery SnacksDried Meat SnacksNon-Choc CandyBreath FreshenersDry Fruit SnacksShelf Stable Dips/MixesFrozen Appetizers & Snack Rolls
7%Beer / Ale / Cider
22%Energy DrinksCoffee Creamer – SSDrink MixesReady to Drink Tea/CoffeeInstant Tea MixCarbonated Beverages
Source: IRI Consumer Network™, Total US – All Outlets, 19 weeks 03/08/20 - 07/12/20; Total Food & Beverage - Dollar Share Index - SNAP HH’s vs Non-SNAP HH’s
*Total Food & Beverage excludes Produce, Deli and Bakery
**Cannot use SNAP dollars for Beverage Alcohol
DINNER
BABYBEVERAGEBREAKFAST
DESSERTSBEVERAGE ALCOHOLLUNCH
BAKINGSNACKS
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Many Top Ranking SNAP Categories Revolve Around Convenience
and Feeding More for Less, Which Address Some of Their Challenges
Source: IRI Consumer Network™ Total US – All Outlets, 19 weeks 03/08/20 - 07/12/20; Total Food & Beverage - Dollar Share Index - SNAP HH’s vs Non-SNAP HH’s
Instant Potatoes Frozen Dinners / Entrees Stuffing Mixes
Toaster Pastries Pastry / Doughnuts Frozen Breakfast Foods
Dry Packaged Dinner Mixes
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SNAP Recipients Shop Differently Across the Generations, Thus
Ensuring Promotions Can Meet the Needs Across Age Groups
Highest Trip Incidence
(How Often the Eating
Occasion Is in the Basket)
Source: IRI Consumer Network™, Total US – All Outlets, 19 weeks 03/08/20 - 07/12/20; Total Food & Beverage - Trip Incidence
Younger Millennial
(24-30 Year Old)
Seniors
(75+)
Baking 16
Beverages 42
Breakfast 21
Dinner 34
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Although Private Label Is 17%
of Dollar Sales, More Trips and
Higher Spending Show
Preference by SNAP Shoppers
for National Brands
*Total Food & Beverage excludes Produce, Deli and Bakery
Source: IRI Consumer Network™, Total US – All Outlets, 19 weeks 03/08/20 - 07/12/20 – Total Food and Beverage Share of Sales
2.6Xmore trips per buyer made by SNAP shoppers for National Brands spending vs. 1.8x for Private Label
4.6Xdollars per buyer spent by SNAP shoppers on National Brands vs. Private Label
17%of dollar sales for SNAP Shoppers is attributed to private label, similar to 18% for non-SNAP shoppers
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However, Private Label Is Getting More Than Its Fair
Share of SNAP Shoppers’ Dollars for Some Occasions
Private Label vs. National Brand Purchases Are Driven by Availability and/or Preference
NATIONAL BRANDS
Are Getting More Than
Their “Fair Share”
Source: IRI Consumer Network™, Total US – All Outlets, 19 weeks 03/08/20 - 07/12/20 – Index of % Dollar Sales by Eating Occasion – vs SNAP Total F&B / *Total F&B excludes Produce, Deli and Bakery
PRIVATE LABEL
Is Getting More Than
17% Share
Baby Snacks
Beverage Liquor
Baking Breakfast
Dessert Lunch Dinner
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SNAP Shoppers Are Important to National Brands
Evidenced Not Only by Total Share, But Also Share of Specific National Brand Products
Source: IRI Consumer Network™, Total US – All Outlets, 19 weeks 03/08/20 - 07/12/20
*Total Food & Beverage excludes Produce, Deli and Bakery
National Brands Private Label
Beverage Snacks Dinner Breakfast Lunch Baking
84% 16% 90% 10% 77% 23% 79% 21% 71% 29% 69% 31%
% Share of Dollar Sales by Eating Occasion, National Brands vs. Private Label
Iced Coffee – 50%
Energy Drink – 40%
Refrigerated Whole Milk –29%
Bottled Chocolate Milk – 28%
Bottled Water – 25%
Non-Chocolate Chewy Candy – 25%
Dried Meat Snack – 22%
Frozen Appetizer / Snack Roll – 22%
Tortilla Chips – 20%
Shelf-Stable Snack / Cupcake / Brownie – 19%
Frozen Handheld Sandwich –29%
Shelf-stable Microwaveable Dinner – 21%
Frozen Dinner – 20%
Frankfurter – 18%
Prepared Pasta Dish – 18%
Frozen Breakfast Entrée –24%
Ready-to-Eat Cereal – 23%
Shelf-Stable Toaster Pastry / Tart – 22%
Instant Breakfast Drink – 22%
Refrigerated Breakfast Sausage / Ham – 19%
Refrigerated Meat / Cheese / Cracker / Dessert – 24%
Sliced Lunchmeat – 20%
Instant Lunch Ramen – 16%
Ready-to-Serve Wet Soup –14%
Bouillon – 12%
Spice / Seasoning (no salt / pepper) – 21%
Prepared Gelatin – 20%
Cake / Cupcake / Pie Mix –17%
Cooking & Salad Oil – 17%
SNAP Households’ Dollar Share of National Brands’ Total Sales
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SNAP Shoppers Skew Toward Mass/Supercenter*, Dollar and Drug,
But Still Spend a Significant Amount of Total F&B Dollars in Grocery
Source: IRI Consumer Network™, Total US – All Outlets, 19 weeks 03/08/20 - 07/12/20
*Total Food & Beverage excludes Produce, Deli and Bakery /
Mass/Supercenter represent 29.3% % of SNAP HH dollar sales; a 140
Index vs Non-SNAP HH’S / *Walmart included in Channel Aggregate
SNAP HH Dollar Share by Channel
Indexed to Non-SNAP Households
Grocery Mass Drug Club Dollar All Other
46% 85 29% 140 3% 131 6% 86 5% 267 11% 108
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SNAP Shoppers Spend More Dollars Earlier in the Month, Which
Is Likely Driven by When the Majority of State Benefits Are Issued
52%SNAP Dollars Spent Over the 1st Half of Month (Non-Snap = 50%)
48%SNAP Dollars
Spent Over the 2nd Half of Month (Non-Snap = 50%)
SNAP benefits Vary by State:
• In 36 states and Washington, D.C., benefits are
issued within the first two weeks of the month
• In 15 states, benefits are issued over a longer
period of three weeks
Source: IRI Consumer Network™, Total US – All Outlets, 19 weeks 03/08/20 - 07/12/20
55% 1st Half
of Month
45%2nd Half
of Month
52% 1st Half
of Month
48%2nd Half
of Month
WASHINGTON
(benefits in first 9 days)
FLORIDA
(benefits in first 10 days)
% of SNAP Monthly Dollar Spend – Average Month
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There Is Slightly More Spending by SNAP Shoppers During the First
Half of the Month, With the Exception of Beverages and Alcohol
% of SNAP Monthly Dollar Spend – Average Month / Total U.S. – All Outlets
48% 47% 50% 48% 48% 48% 52% 46% 48%
52% 53% 50% 52% 52% 52% 48% 54% 52%
Food & Bev Baking Beverage Breakfast Desserts Dinner BeverageAlcohol*
Lunch Snacks
1st Half of Month
2nd Half of Month
Source: IRI Consumer Network™, Total US – All Outlets, 19 weeks 03/08/20 - 07/12/20 / *Cannot use SNAP dollars for Beverage Alcohol
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At a High Level, SNAP Shoppers Are Not Deal-Driven
Since They Do Not Purchase on Promotion as Often
The Dollars SNAP Shoppers Spend On Promoted Products Under Index
Across Some Channels, With the Dollar Channel a Notable Exception
Source: IRI Consumer Network™, Total US – All Outlets, 19 weeks 03/08/20 - 07/12/20 - Dollar Sales on Promotion Dollar Index* vs. Non-SNAP
89Index
91Index
85Index
112Index
Total U.S.
Grocery
Select
Mass
Total U.S.
Drug
Total U.S.
Dollar
Total U.S.
SNAP Shopper
vs. Non-SNAP
80Index
Dollar Sales on Promotion Dollar Index (Including Manufacturer Coupons)
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2019
18 18 1817
15
$100K+ $70-99.9K $50-69.9K $35-49.9K $25-34.9K $15-24.9K Under $15K
As Income Decreases, So Does the % of Dollars
Sold on Promotion, Suggesting Lower Income
Households Buy on Need and Can’t Wait for a Sale
% of Dollar Sales on Promotion / Total Food & Beverage / Total U.S. – All Outlets
HOUSEHOLD INCOME
Source: IRI Consumer Network™, Total US – All Outlets, 19 weeks 03/08/20 - 07/12/20
of SNAP
Households
Have Income
Less Than
62%
$25K
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 23
9.8
22.5
13.2
12.2
8.5
6.0
All Outlet
Dollar
Mass/Supercenter*
Drug
GroceryX**
Club
SNAP Purchases Represent 22.5% of Dollar, 13.2% of Mass $ Sales,
Making Lowest Price Value the Chief Quest for SNAP Shoppers
SNAP Household Dollar Share of Channel (Indexed to All Outlet Average)
229 Index
134 Index
127 Index
86 Index
61 Index
Source: IRI Consumer Network™, Total US – All Outlets, 19 weeks 03/08/20 - 07/12/20
*Total Food & Beverage excludes Produce, Deli and Bakery / *Walmart included in Channel Aggregate / **GroceryX excludes Walmart
Index 120+ (Skew Toward) Index 80 – 120 (Average) Index < 80 (Skew Away)
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Dollar Channel’s Success With
SNAP Shoppers Can Be Tied
to the Type of Promotions
They Offer Before Shoppers
Get to the Store, Like
Weekly $5 Off Deals
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The Dollar Channel Caters to SNAP Recipients by
Providing Better-for-You and Budget-Minded Recipe Ideas
This Is an Opportunity Other Channels Should Adopt
Source: www.dollargeneral.com
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6.86.2
7.8 7.7
9.0
8.3 8.1
9.2
11.612.3
12.813.5
7.0 7.0 7.27.5
7.97.5 7.4
8.4
12.1
13.0
11.9 11.5
4 Weeks EndingSep-08-2019
4 Weeks EndingNov-03-2019
4 Weeks EndingDec-29-2019
4 Weeks EndingFeb-23-2020
4 Weeks EndingApr-19-2020
4 Weeks EndingJun-14-2020
SNAP Households Non-SNAP Households
As the SNAP Online Pilot Became
Available, More SNAP Households
Started to Shop Online
% HHs Purchasing Food & Beverage
on the Internet / Total U.S.
Source: IRI Consumer Network™, Total U.S. – Internet 4 WE Aug 12, 2018 – 4 WE July 12, 2020
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 27
In Addition, SNAP Households Are Contributing a Greater Portion of
Food & Beverage Spend Online Than Are Non-SNAP Shoppers
% of Total Food & Beverage Purchased on Internet / Total U.S.
4 Weeks EndingSep-08-2019
4 Weeks EndingNov-03-2019
4 Weeks EndingDec-29-2019
4 Weeks EndingFeb-23-2020
4 Weeks EndingApr-19-2020
4 Weeks EndingJun-14-2020
SNAP Households Non-SNAP Households
Purchase Pivot
Source: IRI Consumer Network™, Total U.S. – Internet 4 WE Aug 12, 2018 – 4 WE July 12, 2020
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COVID-19 Accelerated Adoption of Online SNAP Payments
Although Congress authorized online SNAP payments approximately six years ago, it only got off the ground
last year. COVID-19 accelerated state adoption, with 44 states participating in the SNAP Online Purchasing
Pilot; Arkansas, Hawaii and Mississippi are in the planning phase.
Source: https://www.nytimes.com/2020/05/01/your-money/food-stamps-snap-coronavirus.html / https://www.fns.usda.gov/snap/online-purchasing-pilot
1 AlabamaAmazon, Walmart,
Wright’s Markets
2 Arizona Amazon, Walmart
3 California Amazon, Walmart
4 Colorado Amazon, Walmart
5 Connecticut Amazon, Walmart
6 Delaware Amazon, Walmart, ShopRite
7 District of Columbia Amazon
8 Florida Amazon, Walmart
9 Georgia Amazon, Walmart
10 Idaho Amazon, Walmart
11 Illinois Amazon, Walmart
12 Indiana Amazon, Walmart
13 Iowa Amazon, Walmart
14 Kansas
15 Kentucky Amazon, Walmart
16 Maryland Amazon, Walmart, ShopRite
17 Massachusetts Amazon, Walmart
18 Michigan Amazon, Walmart
19 Minnesota Amazon, Walmart
20 Missouri Amazon, Walmart
21 Nebraska Amazon, Walmart
22 Nevada Amazon, Walmart
23 New Hampshire Amazon, Walmart
24 New JerseyAmazon, Walmart, ShopRite,
Fresh Grocer
25 New Mexico Amazon, Walmart
26 New York Amazon, Walmart, ShopRite
27 North Carolina Amazon, Walmart
28 North Dakota Amazon, Walmart
29 Ohio Amazon, Walmart
30 Oklahoma Amazon, Walmart
31 Oregon Amazon, Walmart
32 PennsylvaniaAmazon, Walmart,
ShopRite, Fresh Grocer
33 Rhode Island Amazon, Walmart
34 South Carolina
35 South Dakota Amazon, Walmart
36 Tennessee Amazon, Walmart
37 Texas Amazon, Walmart
38 Utah
39 Vermont Amazon, Walmart
40 Virginia Amazon, Walmart
41 Washington Amazon, Walmart
42 West Virginia Amazon, Walmart
43 Wisconsin Amazon, Walmart
44 Wyoming Amazon, Walmart
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 29
Top Food & Beverage Items Purchased Online by SNAP
Households Include Dinner, Baking, Snacks, Beverage Products
E-Commerce Platforms Can Be Used as an Opportunity to Educate Shoppers Based
on Occasion or Needs to Assist in Engaging and Retaining These SNAP Shoppers
ProductIndex to
Non-SNAP HHs
Cookies 144
Bottled Water 126
Crackers 127
Carbonated Beverages 152
Milk 122
Non-Chocolate Candy 142
Bottled Juices – SS 159
Snack Bars / Granola Bars 125
Dinners / Entrees – FZ 190
Baking Mixes 156
Novelties – FZ 162
Canned / Bottled Fruit 134
Source: IRI Consumer Network™, Total US – Internet 19 weeks 03/08/20 - 07/12/20 – % HH’s Buying - Above 120 Index
used the category menus
to browse for options
within a category.
48%
Of those who
shopped online
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 30
SECTION 03
Attract and Retain SNAP Recipients
03
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Now, More Than Ever, It Is Critical to
Connections With SNAP Consumers for Success
Demand
Space /
Needs-Based
D
Engage
via
Targeting
E
Educate
and/or
Inform
E
Purchase
Cycle
P
Experiential
E
New
Product
Alerts
N
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 32
The Farmers Market Coalition Leads with Consumer Education,
but More Is Needed by Food Retailers and Manufacturers
When possible, note cost of feeding a family of four, or provide recipes that can feed a family for $5 or $10.
Source: https://farmersmarketcoalition.org/education/snap/snap-outreach-and-promotion/; https://snaped.fns.usda.gov/nutrition-education/nutrition-education-materials/meal-planning-shopping-and-budgeting
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 33
As We Look at the
Rest of 2020 and
Beyond, There Will
Be Several
Innovation Themes
to Attract and
Retain SNAP
Participants
Ease of Online – Online behaviors adopted as SNAP recipients will stick as they emerge from benefit dependence. Support them with list-building, promotions earlier in the month and by waiving online fees.
Meal Solutions – Promote cook-from-scratch and healthy, affordable convenience meals. Demonstrate how products support specific health issues. Offer recipe and cooking videos.
Education and Optimization – Promote innovative ways to assist nutrition assistance recipients on their financial and nutritional security journey. Retailers can promote store tour videos that teach budget meal shopping.
Pack Size Innovation – Package innovation can be just as important in a recession as brand new products. Estimate the demand for multi-pack, multi-serving or larger sizes as a way to answer consumer demand.
Private Label – High quality private brands are an important innovation platform as retailers enhance their commitment to shoppers. Retailers should promote their differentiated products to make them a destination for shoppers.
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 34
SNAP Benefits Are Applied to Food Products,
With the Exception of Prepared and Hot Foods,
as Well as Beverage Alcohol
Any Food for the Household, Such As:
• Fruits and vegetables
• Meat, poultry, and fish
• Dairy products
• Breads and cereals
Source: https://www.fns.usda.gov/snap/eligible-food-items
• Other foods such as snack foods
and non-alcoholic beverages
• Seeds and plants, which produce
food for the household to eat
Households CANNOT Use SNAP Benefits to Buy:
• Beer, wine, liquor, cigarettes, tobacco
• Vitamins, medicines, supplements
• Live animals (except shellfish, fish
removed from water, animals
slaughtered prior to store pick-up)
• Prepared foods fit for immediate
consumption
• Hot foods
• Nonedible items like pet
foods, cleaning supplies,
paper products, other
household supplies,
hygiene items, cosmetics
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 35
IRI’s Webinar on
Opportunities for
Attracting SNAP and
WIC Shoppers During
the COVID-19 Pandemic
September 15, 2020
Time 1:00 PM CT
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 36
Vivek Sankaran
President & CEO, Albertsons Companies
August 25, 2020
Ram Krishnan
Global Chief Commercial Officer, PepsiCo
August 17, 2020
Brian Cornell
CEO of Target
July 16, 2020
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 37
Insights and Strategic
Guidance for Better Decisions
IRI’s Online Resources Include Real-Time
Updates and Weekly Reports That Track
the Impact of the Virus on CPG and Retail
The IRI COVID-19 lmpact
Includes COVID-19 impact analyses, dashboards
and the latest thought leadership on supply chain,
consumer behavior and channel shifts for the U.S.
AND international markets.
IRI CPG Economic Indicators, Including
the IRI CPG Demand Index™, IRI CPG
Supply Index™ and IRI CPG Inflation
Tracker™
Accessible through the insights portal
to track the daily impact of COVID-19.
This includes top-selling and out-of-stock
categories across the country and
consumer sentiment on social media.
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The Latest COVID-19 Reports and Insights From IRI (click to see full report)
IRI COVID-19 IMPACT ASSESSMENT REPORTS RECESSION PROOF YOUR BUSINESS
THE CHANGING SHAPE OF THE CPG DEMAND CURVE
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 39
The IRI CPG Demand Index™ provides a
standard metric for tracking changes in spending
on consumer packaged goods. It measures
weekly changes in consumer purchases, by
dollar sales, against the year-ago period across
departments, including fixed and random weight
products, grocery aisles and retail formats. The
IRI CPG Demand Index™ is available for eight
U.S. regions, all U.S. states, UK, France, Italy,
Germany and the Netherlands.
CLICK HERE FOR MORE!
IRI CPG Demand Index™NOW INCLUDES
U.S., UK, FRANCE, ITALY, GERMANY & NETHERLANDS
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The IRI CPG Inflation Tracker™ provides the
well-known price per unit metric for tracking
changes in pricing of consumer packaged goods.
It provides weekly changes in consumer prices,
price per unit against the year-ago period across
departments, including fixed and random weight
products, grocery aisles and retail formats. The
IRI CPG Inflation Tracker™ is available for eight
U.S. regions, all U.S. states, UK, France, Italy,
Germany and the Netherlands.
CLICK HERE FOR MORE!
IRI CPG Inflation Tracker™NOW INCLUDES
U.S., UK, FRANCE, ITALY, GERMANY & NETHERLANDS
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 41
The IRI CPG Supply Index™ provides a
standard metric for tracking changes in
product availability (i.e., in-stock rates) in
stores for consumer packaged goods. It
measures weekly changes in product
availability against the baseline across
departments and retail formats. The IRI
CPG Supply Index™ is available for eight
U.S. regions, all U.S. states and Italy.
CLICK HERE FOR MORE!
IRI CPG Supply Index™NOW INCLUDES U.S. AND ITALY
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