Perishables Buyer November 2011

1

retail

How to Jump-Start A Flat Protein Market

bakery

meat

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Luring Holiday Shoppers 1 With Sweet Goods

Publix Becomes A Prime Perishables Destination16

NOV11 vol.1 iss.2

How to

the

WIN

Perishables

Private Label

Jackpot

also

www.PerishablesBuyer.com

inside

CATEGORY UPDATES: + Dairy + Produce + Deli + Refrigerated + Foodservice + Frozen + Seafood + Infrastructure www.PerishablesBuyer.com

Bakery

Dairy

Deli

Foodservice

Frozen

Introducing Perishables Buyer serves food retail and wholesale executives, directors, managers, buyers, merchandisers, and other key decision makers in all vital perishable categories. Each issue will include category data, new products, analysis of trends, retailer profiles, strategic & tactical insights and operational best practices.

To begin your subscription, go to www.submag.com/sub/rl Meat

Produce

Refrigerated

Seafood

TABLEOFCONTENTS

This Month's

20

Cover Story

A Standout Strategy The merchandising of private label perishables can be an effective retail differentiator. But operators must have the right implementation strategy.

CATEGORY SPOTLIGHTS

RETAILER PROFILE

7 Meat

16 Southern Hospitality A heavy emphasis on customer service—and marketing pertinent products—is making Publix Super Markets Inc. a prime perishables destination.

An Uphill Battle To Move Meat

Merchandising experts give suggestions for jump-starting protein sales in a flat and costly market. 11 Bakery

11

Sweetening Holiday Sales

ROUNDTABLE

In-store bakeries are well-positioned to attract shoppers seeking desserts for the holidays. To maximize revenues, operators must grab business from the center store and outside retailers.

24 Refrigerated To Your Health Wellness-oriented shoppers are becoming a more potent buying power. Experts describe how to best attract, and merchandise to, the sector.

Departments

16

6 editor's note 38 ad & company index 4

November 2011 • Perishables Buyer

WEBTOC

This Month on

.com

Feature >> THE PERISHABLES PICTURE

Merchandising experts pinpoint the potentially vast rewards, and operating challenges, facing perishables marketers.

Retailer Profile MARIANO’S FRESH FORAY

Roundy’s Supermarkets Inc. is emphasizing perishables with its new Mariano’s Fresh Market chain.

Bakery SWEET THING

Desserts are fueling bakery activity and freshness remains top of mind for consumers.

<< Dairy

Frozen

A BATTLE IS JOINED

THAWING OUT

Increased competition from other beverage categories is cutting into milk consumption.

After several down years, frozen food activity has stabilized. And strong revenue opportunities remain.

Deli GETTING HOTTER

Infrastructure

The supermarket deli is becoming an increasingly busy destination for timestarved and budget-conscious shoppers.

LESS POWER, SCOTTY

<< Foodservice

Food retailers are seeking ways to use less energy to run their refrigerated cases. Here are some ways to achieve that goal.

CONVENIENCE, CONVENIENCE, CONVENIENCE

Meat

Foodservice, which has benefitted in the recession, needs to keep catering to shopper demands for convenient meals.

A MONEY MAGNET

Meat is accounting for the bulk of perishables revenues.

For more stories, go to

www.PERISHABLESBUYER.com www.PerishablesBuyer.com

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EDITOR’SNOTE

» VOL. 1, ISS. 2

THERE SHE IS...

PUBLISHER Brion Palmer Group Publisher

A

is “an equation of quality and price.” ny trade show that includes Miss America can’t The presenters revealed that cross-merchandising be all bad. produce with items from other departments also is beNot that the Fresh Summit, the National Produce coming a global trend. Association’s international convention and exposition Greg Davis, general manager of held in Atlanta in October was even refresh produce for Coles Supermarkets motely bad. in Australia, said his outlets merchanBut having Nebraska’s Teresa Scandise pork and leafy vegetables, and lan, Miss America 2011, greeting atstrawberries with champagne for Valtendees at a vendor’s both in the vibrant entine’s Day. exhibit hall certainly added extra life to Davis added that a key challenge the proceedings. for Coles Supermarkets is effectively Indeed, Miss America was just one serving shoppers from a wide range of of the “celebrities” at the show. Also income groups. spotted in the hall were Georgia’s Whit“We have a need for both topney Conner, the National Watermelon quality and lesser-quality products,” Queen, some Atlanta Falcon cheerleadhe said. “The question is how do you ers and “America’s Next Top Model” market a main brand and also a lowrunner-up Chelsey Hersley. er brand, because you don’t want the And along with the more than 800 lower brand being equated with the exhibitors and 18,000 attendees, the company.” Fresh Summit featured a host of educa- Perishables Buyer Editor Rich Mitchell enjoys the company Coles Supermarkets, Davis stated, tional sessions at which produce retail- of Teresa Scanlan, 2011 Miss also began branding its produce to ers described merchandising challenges America, at the Fresh Summit in Atlanta. standout from competitors. as well as success strategies. “Produce was seen as a commodity A session on global sourcing reproduct,” he noted. “Branding our offerings and setting vealed that many of the issues facing produce retailers quality standards differentiated it.” O are the same throughout the world. Peter Gohl, fresh foods executive with SPAR National Fresh Marketing in South Africa, for instance, said it was important to increase awareness of the health benefits of produce. “Mothers want to feel like they are doing something RICH MITCHELL special for their kids,” he stated, adding that value also editor-in-chief

Also publishers of Beverage Industry, BrandPackaging, Candy Industry, Dairy Foods, Flexible Packaging, Food & Beverage Packaging, Food Engineering, Independent Provisioner, Industria Alimenticia, The National Provisioner, Prepared Foods, Private Label Buyer, and Snack Food & Wholesale Bakery. BNP Media II, L.L.C 155 Pfingsten Road, Suite 205, Deerfield, Illinois 60015 (847) 405-4000 • Fax: (847) 405-4100 PERISHABLES BUYER, formerly R&FF Retailer (ISSN 2164-1404) is published 12 times annually, monthly, by BNP Media II, L.L.C., 2401 W. Big Beaver Rd., Suite 700, Troy, MI 48084-3333. Telephone: (248) 362-3700, Fax: (248) 362-0317. No charge for subscriptions to qualified individuals. Annual rate for subscriptions to nonqualified individuals in the U.S.A.: $178.00 USD. Annual rate for subscriptions to nonqualified individuals in Canada: $216.00 USD (includes GST & postage); all other countries: $228.00 (int’l mail) payable in U.S. funds. Printed in the U.S.A. Copyright 2011, by BNP Media II, L.L.C. All rights reserved. The contents of this publication may not be reproduced in whole or in part without the consent of the publisher. The publisher is not responsible for product claims and representations. Periodicals Postage Paid at Troy, MI and at additional mailing offices. POSTMASTER: Send address changes to: Perishables Buyer, P.O. Box 1080, Skokie, IL 60076. CANADA POST: Publications Mail Agreement #40612608. GST account: 131263923. SEND RETURNS (CANADA) TO Pitney Bowes, P.O.Box 25542, London, ON, N6C 6B2. CHANGE OF ADDRESS: Send old address label along with new address to Perishables Buyer, P.O. Box 1080, Skokie, IL 60076. FOR SINGLE COPIES OR BACK ISSUES: contact Ann Kalb at (248) 244-4699 or [email protected]

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LIST RENTAL > Postal Contact Kevin Collopy 845-731-2684 [email protected] > Email Contact Michael Costantino 845-731-2748; 800-223-2194 X748 [email protected] CUSTOMER SERVICE Phone 847.763.9534 Fax 847.763.9538 Email [email protected] BNP Media Helps People Succeed in Business with Superior Information

EDITORIAL Rich Mitchell Editor-In-Chief [email protected] John Frank Editorial Director [email protected] Betty Vandenberg Art Director Scott Hilling Senior Art Director

ADVERTISING Brion Palmer Group Publisher [email protected] 847-405-4072 Peter Hansen Regional Sales Mgr. [email protected] 847-405-4033 Jill DeVries Corporate Reprint Mgr. [email protected] 248-244-1726 Rosemary Weiss Advertising/Production Mgr. [email protected] 847-405-4021 SUPPORT SERVICES Drew Matthews Marketing Mgr. [email protected] AUDIENCE DEVELOPMENT Peggy Perez Audience Development Mgr. Stacey Noocha Multimedia Coordinator Carolyn M. Alexander Audience Audit Coordinator

CORPORATE DIRECTORS John R. Schrei Publishing Rita M. Foumia Corporate Strategy Ariane Claire Marketing Vincent M. Miconi Production Lisa L. Paulus Finance Michael T. Powell Creative Nikki Smith Directories Marlene J. Witthoft Human Resources Beth A. Surowiec Clear Seas Research

November 2011 • Perishables Buyer

CATEGORYSPOTLIGHT: MEAT

AN UPHILL BATTLE TO MOVE MEAT

MEA T

Experts give suggestions for jump-starting protein sales in a flat and costly market. RICH MITCHELL editor-in-chief

E

volving market forces are making it more difficult to successfully merchandise meat. Protein prices are on the upswing, due in part to higher supplier operating costs and less inventory because of increased exports. And with greater competition from other store departments and foodservice outlets for share of stomach, meat operators seeking to standout in a crowded market are leveraging diverse sales strategies. Some retailers, for instance, are promoting valueadded selections—such as marinated chicken breasts and kabobs—as well as natural and organic proteins. Many also are marketing private-label items and some are launching limited-time promotions. A Pick ’n Save outlet in Racine, Wis.—operated by

Milwaukee-based Roundy’s Supermarkets Inc.—this spring was offering shoppers, who spent $100 on any Angus steak, $10 off their next Angus steak purchase of $10 or more. “Of all the perishables departments, meat over the last year saw the greatest increase in pricing and decline in discounts,” says Sherry Frey, vice president of account services for the Perishables Group, a Chicagobased fresh food consulting firm. “The meat department also is facing fiercer competition from deli prepared foods—with its rotisserie chicken, meat loaf and other entrées—and the frozen case.” A nationwide Perishables Group survey of 2,500 consumers, along with the study of loyalty card data for 30 million households, found that package size, price per product and cooking methods—such as whether a meal would be grilled or baked—were key factors in

KEY POINTS O Protein prices are on the upswing. O Package size is a key sales driver. O Meat costs are projected to remain high.

A Retailers need to do a better job merchandising their meats in the face of rising prices, experts advise.

A

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M EA T

CATEGORYSPOTLIGHT: MEAT

meat purchasing decisions. “Retailers need a broad array of package sizes of key products to meet the needs of different segments of consumers,” Frey says. “Shoppers don’t need a recipe for everything, but should be given recommendations for cooking methods, such as how to oven-roast or braise items.” Patrick Fleming, director of retail marketing for the Des Moines, Iowa-based National Pork Board, notes that retailers also can benefit from merchandising proteins with unique flavor profi les and which are easy to prepare. “There is more pork with rub flavors being marketed, which can enhance the appeal and not require shoppers to buy spices separately,” he notes. “Offering a

Centennial, Colo.-based National Cattlemen’s Beef Association (NCBA). The Perishables Group reports that retail beef prices were up 10 percent for the 52 weeks ending July 30, 2011. “Consumers are looking for deals and cost-savings strategies,” Amen notes. “Two major actions for them are buying in bulk at a lower price per pound, and purchasing small sizes at a lower total package price more frequently.” More retailers also are offering consumers large portions of beef in bags for reduced prices, such as 6 to 8 pounds of tenderloin and 15 pounds of ribeye that shoppers freeze and cut themselves. Such offerings help reduce retailers’ labor costs and shrink, Amen states.

“Prices will remain high and there will be a need to show consumers that they still can get value from meat.” pre-seasoned product that is unique to a store creates a destination item.” Fleming says budget-conscious pork shoppers are looking more at package prices than price per pound, and that educating consumers on how to prepare pork remains a major retail necessity. “More people are preparing meals at home, but we haven’t increased their knowledge on how to do it properly,” he states. “It is hard to get consumers out of their comfort zones and try new recipes. There needs to be constant communication with repeat messages.” Effective marketing vehicles, he notes, include onpack labels with recipes and cooking data; point of sale signage; and ads that include Website addresses which link shoppers to cooking instructions and recipes. While most beef buyers, meanwhile, are comfortable preparing the protein, retailers still face the challenge of trying to move higher-priced selections, says Trevor Amen, director of market intelligence for the

To help grow revenues, he recommends that merchandisers continue to feature beef in weekly circulars, and ensure stores are offering cuts that appeal to the specific demographic groups in their respective locations. Michael Uetz, principal of Midan Marketing LLC, a Chicago-based marketing, communications and market research firm, adds that meat operators must be more creative in their merchandising. “Prices will remain high and there will be a need to show consumers that they still can get value from meat,” he states. “One way is through education, such as having merchandisers out in front of the case telling consumers how to best use the products.” Shoppers, he says, must be engaged and inspired. “It is time for merchandisers to step back and see how well they communicate with customers,” Uetz notes. “Our research shows they still have a long way to go.” O

Meat Revenues Rise As Volumes Decline Protein

Source: Perishables Group. Figures are for 52 weeks ending 7/30/11.

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Dollar Change

Volume Change

Retail Price Change

Beef

5%

-5%

10%

Pork

6%

-6%

12%

Chicken

4%

1%

3%

Turkey

7%

0%

7%

Lamb/Goat

2%

-13%

18%

November 2011 • Perishables Buyer

CATEGORYSPOTLIGHT: MEAT

new products:

For more information on the products featured below, visit www.PerishablesBuyer.com/Products.

MEAT

Surry Farms Smoked Hog Jowels

$33.2 billion Total meat dollar sales for the 52 weeks ending 8/2/11, up 3.4 percent from the yearearlier period, according to FreshLook Marketing Group.

GNP Company Gold’n Plump All-Natural Chicken

17.8% National Steak and Poultry Center of the Plate Beef, Chicken and Pork

Increase in the average price of lamb for the 52 weeks ending 8/2/11 compared to the year-earlier period, reports FreshLook Marketing Group.

Sadler’s Smokehouse Ltd. Ready-to-Eat Beef, Chicken and Pork

244 million AFA Foods Inc. Frozen Beef Patties

www.PerishablesBuyer.com

Number of turkeys estimated to be raised in 2011, according to the National Turkey Federation.

Butterball LLC Better-For-You Turkey in Easy Open Packaging

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CATEGORYSPOTLIGHT: MEAT

BUTCHER'S BLOCK

2%

1.25 billion

Increase in dinner sausage sales in 2010. Total revenues were $1.89 billion. (National Hot Dog & Sausage Council)

26.4 billion TOTAL 2010 U.S. BEEF CONSUMPTION IN POUNDS It is down from 26.8 billion in 2009 and 27.3 billion in 2008. (U.S. Department of Agriculture)

Number of chicken wing portions estimated to have been consumed during the 2011 SUPER BOWL WEEKEND. (National Chicken Council)

371

$1.6 billion AMOUNT U.S. CONSUMERS SPENT IN 2010 FOR HOT DOGS IN SUPERMARKETS.

The number of meal servings that come from ONE PIG. (National Pork Board)

(National Hot Dog & Sausage Council)

10

November 2011 • Perishables Buyer

CATEGORYSPOTLIGHT

BAK ERY

SWEETENING HOLIDAY SALES In-store bakeries are well-positioned to attract shoppers seeking desserts for the holidays. To maximize revenues, operators must leverage strategies to grab businesses from the center store and outside retailers. BY VANESSA L. FACENDA

I

t’s a sticky situation for in-store bakeries (ISBs) this holiday season. The departments are facing strong competition from branded consumer packaged goods (CPG) as well as freestanding bakeries, and more recently, retail cupcake chains. But the greater issue is the struggling economy, which is affecting purchasing behavior. In a 2011 MarketPulse survey from SymphonyIRI Group, a Chicago-based market research firm, 44 percent of consumers indicated that they are worse off financially than a year ago. As a result, many shoppers are curtailing discretionary spending, which includes the desserts that are typically sold at higher price points than other ISB items, such as bread and rolls.

www.PerishablesBuyer.com

But it’s not all gloom and doom for ISBs. Consumers tend to loosen their tight spending grips in order to prepare the best meals possible for their holiday (Thanksgiving through New Year’s Day) celebrations. And ISBs have merchandising advantages over freestanding bakeries and cupcake chains in terms of proximity, convenience, pricing and the opportunity to create the old-style bakery feel. “As ISBs tend to be lowerpriced versus traditional bakeries, they are well-positioned to compete in this area,”

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CATEGORYSPOTLIGHT

KEY POINTS O In-store bakeries are facing steep competition for holiday sales. O Cookies, cakes and pies are the top sweet goods consumed during the holidays. O Bakery department merchandising vehicles include signage and samplings.

BA K

notes Susan Viamari, editor of SymphonyIRI’s Times & Trends reports. Indeed, in a 2010 consumer survey by Packaged Facts, a Rockville, Md.-based market research firm, 73 percent of respondents indicated that they purchase fresh baked goods from supermarket in-store bakeries. The most popular banner was Walmart, which was cited by 40 percent of respondents. The ISB market, meanwhile, is projected to reach $12.4 billion this year, with sales having risen 24 percent from 2006 to 2010, reports Mintel Group International Ltd., a London-based market research firm. Desserts, with revenues of $5.8 billion, is the leading ISB segment with a 46.5-percent market share. Mintel projects dessert sales to increase 4.2 percent this year. The overall market for prepared cakes and pies grew

$5.8 million Revenues generated by DESSERT sales in-store bakeries. (Mintel International Group Ltd.)

9.2 percent from 2008 to 2010. Cupcakes/brownies (down 1.4 percent) and cheesecakes (a 0.1-percent decline) were the only segments within the market to lose revenues during the period. The NPD Group, a Port Washington, N.Y.-based market research firm, notes that the top-five sweet baked goods consumed during the holidays are cookies (eaten by 56 percent of consumers); cake (35 percent); pie (32 percent); donuts (19 percent); and muffins (17 percent). Within the cookie segment, homemade or prepared cookies are the top sellers during the holidays, with readyto-eat cookies 12-percent less likely to be consumed.

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ERY

“In-store bakeries have an advantage because they can play with different recipes and flavors, offer new choices, and test their consumer appeal through in-store sampling,” says Kara Nielsen, a trendologist at the Center for Culinary Development, a San Francisco-based food and beverage product development firm. “Sampling will give ISBs instant feedback on what interests consumers.” Nielsen notes that ISBs should determine the demographics of their core consumers in each community they serve, and offer holiday fare that targets the specific interests of each group. For example, panettone or stollen can be merchandised in stores that attract many customers of Italian heritage. Pudding and mince pie tarlets, meanwhile, should be aimed at persons of German and English extraction. While desserts like pumpkin pie, apple pie and decorated sugar cookies are standard holiday options, new recipes also can be merchandised, Nielsen notes. “Maybe try apple cranberry or apple pear pie,” she states. Harry Balzer, NPD Group vice president, agrees that new recipes can generate activity, but says retailers should be conservative in offering novel selections. “It’s much harder to work something into the diet that we don’t know or are not familiar with,” he states. Another challenge in merchandising holiday baked goods is determining the optimal amount to have on hand. “Retailers must have enough product to support demand, but not too much that the food goes bad,” says Paula Rosenblum, managing partner at RSR Research, a Miami-based retail research company. “And if the items are holiday-related, good luck selling them after the holidays.” She recommends that supermarkets forecast their needs in advance and encourage consumers to pre-order baked goods. A 2010 Packaged Facts report, meanwhile, notes that yet another challenge for many operators is convincing consumers that fresh baked goods from supermarket bakeries are as of high quality as those from specialty bakeries. In addition, it must be demonstrated to shoppers that fresh baked goods are worth spending extra money on compared to pre-packaged baked products, especially when the pre-packaged items are placed near or inside the in-store bakery. In-store sampling that begins well in advance of Thanksgiving, Packaged Facts notes, will help ISBs demonstrate their fresh baked goods quality.

November 2011 • Perishables Buyer

CATEGORYSPOTLIGHT

79% Percent of shoppers that make PURCHASE DECISIONS before entering a store. (SymphonyIRI Group)

Yet, price-conscious shoppers still must be convinced of the items’ value. “The battle for ISBs is against packaged goods because they are a less costly option than the bakery,” Balzer says, adding that many consumers have a preference for packaged goods—such as cakes or refrigerated cinnamon rolls—that they can indulge in during the holidays. As a result, ISBs need to emphasize the benefits of store-baked goods, such as having a similarity to homemade items without the need to prepare the recipes, he states. Retailers also must leverage the appropriate merchandising vehicles to attract shoppers to the bakery. Rosenblum recommends in-store signage and samples at the front of outlets. Employees also could walk around the supermarket offering samples of the holiday baked goods “Grocers tend to put homemade pie ‘fixins’ at the front of the store—such as canned pumpkin, graham cracker crumbs and shortening—because they’re easy to grab and

there is no spoilage issue,” she states, “But retailers need to bring people to the bakery section.” She adds that ISBs also could have desserts baking at strategic shopping times—such as during the post work/ pre dinner period and lunchtime—to tempt consumers to the bakery department. Above all, items should always look and smell fresh. “Retailers must ensure the products do not seem old or actually become old,” Rosenblum states. However, with the majority of consumers—79 percent according to the SymphonyIRI Group study—making grocery purchase decisions before entering the store, it is important that retailers attempt to reach shoppers in the home with their marketing and promotions. Vehicles could include newspapers and circular coupons, and online advertising. SymphonyIRI Group reports that 41-percent more consumers will access coupons from retailer Websites much more frequently than last year In-store bakeries also can follow the lead of other retailers in designing holiday promotions. Mintel, for instance, notes that Sprinkles Cupcakes, which began with a retail bakery in Beverly Hills, Calif., and now operates 11 U.S. retail outlets, offers an iPhone application and uses Twitter to send out a secret word each week that can be redeemed for a free cupcake. In addition, mobile cupcake retailer the CupcakeStop uses Twitter to send word about the flavors that are available daily. O

73% Number of consumers that purchase FRESH BAKED GOODS from supermarket in-store bakeries. (Packaged Facts)

www.PerishablesBuyer.com

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CATEGORYSPOTLIGHT

new products:

BA K

ERY

For more information on the products featured below, visit www.PerishablesBuyer.com/Products.

BAKERY

28.1% Sam's Club Multigrain Ciabatta Rolls

Percent of bakery department revenues generated by cakes for the 52 weeks ending 6/25/ll, according to the Perishables Group.

Flowers Foods Nature’s Own Cinnamon Raisin Thin-Sliced Bagels

26% Projected growth rate of the bread sector from 2009 to 2013, according to Mintel International Group Ltd.

Beatrice Bakery Co. Banana Nut Bread

Dancing Deer Baking Co. Gourmet Brownies and Squares

22.1% Percent of sweet goods revenues generated by coffee cakes for the 52 weeks ending 6/25/11, the Perishables Group reports.

Sara Snacker Cookie Co. Sara Snacker’s S’mores Cookies

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Sam's Club Artisan Fresh Bagels

November 2011 • Perishables Buyer

CATEGORYSPOTLIGHT

RISING NUMBERS

52.5%

4.9%

Percent of U.S. households that reported eating WHOLE WHEAT BREAD in 2010, up from 46 percent in 2005. (Packaged Facts)

Increase in bakery DONUT SALES for the 52 weeks ending 6/25/11. (Perishables Group)

46.6% Percent of fresh PIE sales in bakeries being generated by private label items. (Private Label Manufacturers Association)

www.PerishablesBuyer.com

8

Number of North American bakery plants operated by Safeway Inc., the third-largest U.S. supermarket operator. (Safeway Inc.)

2

Number of frozen dough plants being operated by Kroger Corp. to supply FROZEN CAKES and dough to retail stores. (Kroger Corp.)

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RETAILERPROFILE

A RETAILER PROFILE

Southern Hospitality

BY RICH MITCHELL editor-in-chief

KEY POINTS O Publix Super Markets Inc. is focusing on customer service. O Private label is playing a key role in perishables merchandising. O Healthy eating and animal welfare are being promoted.

A Publix strives for clean, inviting stores that showcase a variety of perishables. It features Boar's Head cold cuts in its delis, for example.

16

A heavy emphasis on customer service—and marketing pertinent products—is making Publix Super Markets Inc. a prime perishables destination.

P

ublix Super Markets Inc. is becoming one of the perishables sector’s most prominent merchandisers. With 1,041 supermarkets in Florida, Georgia, North Carolina, South Carolina and Tennessee, Lakeland, Fla.-based Publix, the dominant retailer in the Southeast, also is forging a national reputation with its emphasis on quality, customer service and convenience. “Publix operate some of the cleanest supermarkets I have ever been in and their employees are not afraid to speak with customers,” says W. Frank Dell III, president and chief executive officer of Dellmart & Co. Inc., a Stamford, Conn.-based retail consultancy. “They know their success is based on the customer being happy. Publix knows what the shopper wants and that drives their private label program.” Indeed, Maria Brous, Publix director of media and

community relations, says the company “strives to have our associates trained on all levels of product knowledge, merchandising and customer service. All three skills are needed to successfully complete the customer experience.” The company recently instituted a computer-based training program and also leverages video training, onthe-job training, procedure guides and input from store managers and deli support staff. Outside food experts also speak with associates about specific products, cross-merchandising options and ways to keep the shopping atmosphere vibrant. Brous notes that consistency of training is key, and that the company constantly reevaluates its methods. “Customers expect a certain level of service and product knowledge from our associates,” she states. “We want to know the most about our products in order to assist shoppers in selecting the best items for their needs.” November 2011 • Perishables Buyer

RETAILERPROFILE

In addition to its Publix banner outlets, the company also operates three Florida GreenWise Market stores in Boca Raton, Palm Beach Gardens and Tampa. GreenWise offers extensive arrays of “earth friendly” items, including many natural and organic products. Publix also has four Hispanic-oriented Sabor locations in south Florida. Selections include large varieties of Caribbean, Central American and South American products. Wide arrays of perishables are emphasized in all banners with an emphasis on nutrition, freshness and flavor. The frozen section of an Atlanta Publix location, for instance, has nutrition facts listed under the price tags

B

of a myriad of selections. Store-branded strawberries, for example, are spotlighted as being fat free; a good source of fiber; having 136 total calories per serving; being very low in sodium; and being cholesterol free. Lean Cuisine Steak Tips Portebello, meanwhile, is listed as being a h good source of fiber with 106 calories per serving. Convenience also is accentuated in the various departments. The seafood section of the frozen case in the Atlanta outlet, for instance, has a sticker on the glass featuring a plated dish and the message, “Catch a convenient dinner. It’s all trimmed and ready to go. Publix fresh frozen fish.”

B Convenience is emphasized in Publix delis with such offerings as this pre-packaged kid's meal. C Fresh bread is evident throughout Publix perishables sections such as here at its sandwich counter.

C

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RETAILERPROFILE

Publix At A Glance Company: > Publix Super Markets Inc. Lakeland, Fla. Founded: > 1930 in Winter Haven, Fla., by George W. Jenkins Owner: > Employee owned Employees: > More than 149,500 2010 Retail Sales: > $25.1 billion Supermarkets: > 1,041 Store locations: > Florida-738 > Georgia-180 > Alabama-48 > South Carolina-45 > Tennessee-30 Manufacturing Facilities: > Atlanta—Bakery plant > Deerfield Beach, Fla.— Dairy plant, fresh foods > Jacksonville, Fla.—Fresh foods > Lakeland, Fla.—Bakery plant, dairy plant, deli kitchen, fresh foods > Lawrenceville, Ga.—Dairy plant

D

The fresh meat case, meanwhile, features assortments of value-added proteins. They include, for $6.99 a pound, four varieties of stuffed boneless chicken breast: Broccoli & Cheese, Italian Style, Cordon Bleu, and Florentine. Distribution Centers: Also available are Beef or > Boynton Beach, Fla. Chicken Kabobs; Stuffed Flank > Miami, Fla. Steak (Provolone); Steakhouse > Deerfield Beach, Fla. Seasoned Beef Eye Round Steak; > Orlando, Fla. > Jacksonville, Fla. Southwest Seasoned Boneless Pork > Sarasota, Fla. Chops; Mesquite Seasoned Bone> Lakeland, Fla. less Pork Shoulder Ribs or Pork > Lawrenceville, Ga. Back Ribs; Seasoned Beef Boneless Source: Publix Super Markets Inc. Chuck Roast & Vegetables; and Meat Loaf (Oven Ready with Seasoned Ground Chuck). The majority of beef is private label. Brands include Publix Premium Certified and Publix GreenWise Market. The Publix GreenWise Market proteins, which are offered in both conventional Publix outlets and GreenWise Market locations, are positioned as health-oriented offerings. D Publix has received widespread industry The ground chuck, ground round and Choice beef recognition for its selections, for instance, are listed as being natural with private label packaging no artificial additives or preservatives; and developed design as seen in this from cattle raised humanely on a 100-percent vegetarcheese display.

18

ian diet and which have never received antibiotics or hormones. Publix also notes that the beef is source verified with close tracking of the cattle from birth, including the validation of all feeding, handling and living conditions. The Atlanta location is promoting GreenWise Market beef at the case with information pamphlets that include cooking recommendations. Fourteen varieties of Publix GreenWise Marketbranded fresh chicken, meanwhile, are listed as being natural; free of antibiotics and added growth hormones; fed a vegetarian diet; and raised with care in clean flock houses with plenty of fresh air, space and light. In addition, Publix notes that it uses a chilling technique that allows for optimal safety, taste and texture; greatly reduces the chances of contamination; and eliminates water absorption, resulting in chicken that's tender and juicy. While private label proteins are prominent at the meat case, a supplier brand—Boar's Head—dominates the full-service deli counter. Indeed, the vast majority of the approximately 65 bulk meats and 35 bulk cheeses at the Atlanta outlet are from Sarasota, Fla.-based Boar’s Head. Publix also positions Boar’s Head meats as premium options for made-to-order deli sandwiches. Sandwich stations offer half sandwiches, whole sandwiches and wraps for $5.09, $6.39 and $5.59, respectively. The items with Boar’s Head meats are priced November 2011 • Perishables Buyer

RETAILERPROFILE

at $5.59, $7.49 and $5.99. “We position the deli as a differentiator from competitors, including fast-casual restaurants” Brous says. “It is done in part by offering freshly made bread; meal solutions for time-starved shoppers, including fried and rotisserie chicken; and a complete prepackaged kid’s meal in the grab-and-go section.” Other deli elements include hot bars with an Asianinspired menu, and carveries in some locations that offer unique sandwiches, such as flank steak. Private label selections, however, serve as differentiators in an array of perishables departments. Publix-branded refrigerated items include shredded cheese, cheese blocks, eggs and milk. Among the frozen private-label offerings are vegetables, potatoes, French toast sticks, waffles, Texas toast, whipped toppings, sherbet and ice cream. The Atlanta outlet even features decals on frozen case doors touting three limited edition selections of Publix ice cream. The Apple Pie ice cream decal states, “Apple of Your Eye, and it’s no wonder: apple ice cream, apple chunks and sugar rolled pie crust in a cinnamon and brownsugar sauce.” Pumpkin ice cream has the message, “Sugar, spice… and everything nice: pumpkin ice cream, buttery pie crust pieces and swirls of whipped cream.”

And Mint Moose Tracks is promoted with “Mint Condition. The finest of everything. Our premium mint ice cream, mint cups, and Denali moose tracks fudge.” Publix develops many of its own private label offerings, including ice cream, dips, yogurt and milk. Store bakeries also bake bread daily and decorate cakes that are prepared at a central Publix bakery. “Publix is not a bunch of country hicks when it comes to merchandising,” Dell says. “They’ve run some of the more creative private label promotions and are aggressive in introducing new store-branded products. They also are not afraid to test new concepts, such as with their GreenWise Market and Sabor formats. They do things right.” O

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E Publix was one of the first retailers to design white packaging to emphasize freshness for its private label offerings. F Its white private label look also is evident in a typical Publix frozen seafood case. www.PerishablesBuyer.com

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COVERSTORY

KEY POINTS O Private label perishables are becoming increasingly prominent. O More store brands are being positioned as higherquality offerings. O Retailers face the challenge of operating outside their expertise in marketing private-label items.

A Standout

Strategy The merchandising of private label perishables can be an effective retail differentiator. But operators must have the right program strategies.

BY RICH MITCHELL editor-in-chief

ifferentiation is a vital element for perishables merchandising success. With many shoppers treating fresh selections as commodity offerings, retailers seeking to standout from competitors must offer products that are not available elsewhere, or have an unbeatable cost-benefit ratio. To achieve those objectives, an increasing amount of operators are rolling out or enhancing

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store-branded offerings. The ultimate goal, analysts say, is to market brands that have a top-quality halo. Perhaps the ultimate standard-bearer for effective private label merchandising is Issaquah, Wash.-based Costco Wholesale Corp., the U.S.’ leading club store operator. Costco markets its lone private-label brand, Kirkland Signature, throughout its locations, including in the refrigerated, frozen, dairy, deli, meat, seafood and bakery sections, as well as non-

November 2011 • Perishables Buyer

COVERSTORY

Private Label Perks Up

A food areas. Most supermarket operators, however, are more select in their store-branded initiatives. “There is quite a bit of variation in the areas in which retailers are being aggressive with private label,” says Bruce Axtman, president and chief executive officer of the Perishables Group, a Chicagobased fresh food consulting firm. “Some categories have more consistent supplies of products [being received from manufacturers] than others.” Among the most active bastions are meat departments—some of which carry a range of tiered store brands. Meat is a particularly attractive private label option as many retailers already position the department—which is a strong store magnet for shoppers—as a way to standout in a crowded marketplace. Indeed, Pleasanton, Calif.-based Safeway Inc., which operates more than 1,700 stores across the U.S. and Canada, merchandises—and heavily promotes—an array of private-label meat brands. They include Open Nature, which consists of all-natural offerings; O Organics, a line of certified

www.PerishablesBuyer.com

Perishables shoppers are becoming increasingly attracted to private-label perishables. Data from SymphonyIRI Group, a Chicago-based market research firm, reveals that the percentage increase in sales of storebranded items in supermarket bakery, deli and frozen departments over the last year is higher than that for the total store sales of private-label products. Dairy’s share of private label activity, however, dropped below that of the total store. “Favorable perceptions are helping to sustain and strengthen private label performance across most edibles departments,” the SymphonyIRI Group notes in its recently published report, Private Label: Brand Positioning in the New World Order. Across the vast majority of departments, the report states, “private label traction has actually been stronger versus national brands.” An exception is dairy, in which private label lost share more quickly versus the industry as a whole in nine of the 13 fourweek periods analyzed. “While private label maintained traction in some categories during the past year, such as creams/creamers and butter, other categories saw private label gains stop or reverse,” the report notes. “Private label share of milk sales, for instance, is flat versus a year ago despite a gradual easing of major price cuts enacted earlier in the downturn. And, in the egg category, national brands have successfully captured nearly two share points from private label during the past year.” Among categories with both above average and increasing private label share are refrigerated salad/cole slaw, vegetables, natural cheese, frozen meat, shelf-stable meat and refrigerated ham. Sectors with below average and increasing private label share include frozen pizza and breakfast meats Categories with below average and declining private label share include yogurt, refrigerated dough/biscuit dough, and margarine/spreads/butter blends. Frozen seafood, meanwhile, is among the products with above average and declining private label share.

organic products; and Rancher’s Reserve tender beef. Other store brands include Eating Right, which features better-for-you foods; Lucerne dairy offerings, including milk and cheese; Primo Taglio, featuring aged cheese and hand-trimmed meats; and

A Open Nature is one of the numerous store brands being merchandised by Safeway Inc. Open Nature proteins include beef franks, bacon, turkey and lamb. Photos by Rich Mitchell

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COVERSTORY

B

B • Safeway Inc. positions its Waterfront Bistro frozen seafood brand as a premium offering. More private label perishables carry a high-quality halo.

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Signature Café, which is prominent in delis and includes prepared foods. A Safeway-operated Dominick’s banner store in the Chicago area leverages a variety of marketing vehicles to spotlight its private label proteins. A free-standing aisle sign beside the Open Nature section of the meat case, for instance, contains data cards listing Open Nature’s attributes—such as being developed from animals that were raised without antibiotics and were vegetarian fed. Proteins in the Open Nature section include beef franks, bacon, chicken sausage, smoked sliced turkey breast in tubs, lamb legs and pork loin. A large Rancher's Reserve sign, meanwhile, dominates the wall above the meat case and notes, “100% Tender Beef. Guaranteed.” Open Nature selections also are marketed in the dairy, deli, frozen and bakery sections. O Organics offerings are found in the meat, bakery, dairy, frozen, fruit and vegetable areas. Signature Café foods include fried chicken, sandwiches, soups, pizza, St. Louis-style ribs, salads, whole roasted chicken and deli trays. Another Safeway brand, Waterfront Bistro, features frozen seafood. Safeway describes the selections in promotions as premium products caught from the best fishing

areas and f lash frozen to seal in freshness. The Dominick’s full-service seafood counter has three holders containing Waterfront Bistrobranded recipe cards. Recipes include Open Face Salmon Sandwich on Toasted French Bread and BBQ Shrimp Sautè. Other retailers, meanwhile, also are positioning their store brands as higher-quality alternatives. “Private label was historically associated with lower-quality and lower-value products in plainer packaging, Axtman says. “Now it is evolving into a broader spectrum of store brands. Some have a premium connotation, though we also will continue to see value products along with unique offerings.” Before starting a program, however, retailers need to decide if there is an opportunity to strengthen the overall performance of the category, he notes. “Merchandisers have to assess how strong and weak the current brands are and how well the value proposition is being addressed,” Axtman states. “They then must examine the supply side and see if there are manufacturers who can fill the opportunity.” Premium store brands, he notes, can be positioned as unique products, points of differentiation and signature items.

November 2011 • Perishables Buyer

COVERSTORY

Steps for Retailers Seeking Private Label Success O Continually identify and assess private label

opportunities and threats: • Carefully monitor price gaps between your private label offerings and national brand alternatives to ensure that optimal price gap is maintained. • Tailor private label offerings at the market level. • Support private label lines with consumercentric and highly integrated marketing campaigns, including in-store display and feature ad support. O Continually refi ne private label development

strategies: • Maintain a solid understanding of price/ value perceptions across key consumer segments, and use this knowledge to inform everyday and promotional pricing strategies. • Invest in innovation that will bring differentiation to the marketplace. • Evaluate feasibility of multi-tier offerings across key categories/product lines, either alone, or in partnership with brand manu facturer partners. O Measure and monitor actual versus planned

impact of private label-related initiatives: • Test market product, pricing and promotion changes prior to and immediately following roll out. • Track and benchmark store-level private brand share shifts relative to national brands.

“Premium private label product should not be used to strengthen margins, but to create an image and strengthen your position in the marketplace,” Axtman states. Store brands, meanwhile, also can enable traditional supermarket operators to better compete with other mainstream outlets, as well as with alternative format merchandisers, including club, dollar and discount stores, he states. Among the major private-label operating challenges is the need to develop a merchandising strat-

www.PerishablesBuyer.com

egy involving a broad range of products throughout the store. “Retailers need to figure out which consumer segments are most important to them; how to target them; and then exercise a brand strategy,” Axtman states. “It’s a big job that retailers haven’t historically been set up to do.” Nevertheless, Axtman predicts that the array of private label perishables will steadily grow over the next few years. “There will be more emphasis as it relates to fresh, but it will play out differently among different retailers, departments and categories,” he states. Jim Wisner, president of Wisner Marketing Group, a Libertyville, Ill.-based consulting, market research and education firm that focuses on private label, agrees that more perishables offerings will carry store brands. “Retailers have gotten better at not sacrificing quality with store-branded selections,” he states. “We are seeing more premium products and shoppers are finding that acceptable. And higher-quality items lead to greater consumer expectations.” He adds that consolidations among retail operators are resulting in entities with greater resources and the marketing muscle to better develop and support store-branded products. To be successful, Wisner notes, “store brands must be discernibly better, discernibly different or discernibly more convenient, or they must go in the value direction. But retailers must be careful in marketing value-oriented items as there is a tradeoff between price and quality.” Like Axtman, Wisner states that a big obstacle for supermarket retailers that sell private label perishables is having to operate outside their expertise. “Most retail organizations are very good at operations and merchandising and clueless when it comes to marketing and branding,” he states. “They don’t have the proper financial structure or a history of developing and marketing brands and communicating the benefits and value. National brands have huge staffs and budgets for such endeavors.” Still, he notes that some retailers, including Safeway, already are successfully creating and defining brands, and that such operators must insure that they never sacrifice quality unless the product is positioned purely as a value offering. “Consumers are in love with Kirkland Signature at Costco because the company won’t put an item out if they can’t do it right,” Wisner states. “There is ultimate trust in anything they put their name on.” O

Sidebar Source: SymphonyIRI Group, Private Label: Brand Positioning in the New World Order.

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ROUNDTABLE: REFRIGERATED

TO YOUR HEALTH Wellness-oriented shoppers are becoming a more potent buying power. Experts describe how to best attract, and merchandise to, the sector. BY RICH MITCHELL editor-in-chief

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Jewel-Osco Website where they can click on a healthy eating tab. PB: What is driving shopper interest in healthier refrigerated foods? Demeritt: The triggers are different for each demographic segment but activity is occurring among all groups. Baby boomers, for instance, are getting older and they want to take better care of themselves. Younger women who are pregnant with their first child say that they want to take good care of the child and to be around for them. And for many in the younger generation, healthy food equals quality.

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onsumers’ interest in creating healthier lifestyles is having a major impact on food merchandising. A wide cross-section of shoppers are seeking meals that are nutritionally sound and good tasting, and they are visiting a wide variety of venues—including the refrigerated section of supermarkets. Two experts describe the state of the market and how refrigerated food retailers can best attract the increasingly lucrative health-and-wellness customer base. Laurie Demeritt is president of The Hartman Group Inc., a Bellevue, Wash.-based health and wellness market research and consulting firm. Kim Kirchherr is a corporate dietician for the JewelOsco, Hornbacher’s, Shop ’n Save, Save-a-Lot and Super-

“Consumers say refrigerated is top of mind with other fresh categories for wellness and the center store is not.”

PB: How are shoppers’ attitudes about health and wellness changing? Demeritt: It is an ongoing change that has been occurring over the last 10 years. Consumers are seeking to have a higher quality of life for a longer time. And their behavior hasn’t abated during the recession. More are still making healthy choices.

PB: How do many wellness-oriented shoppers perceive refrigerated selections? Demeritt: They see the items as being fresher and less processed than shelf-stable foods, and the perimeter as healthier than the center store. For example, soy milk for many years languished in the center store. But it spread to the mainstream after it was moved to the refrigerated section where it was seen as healthier and fresher. Consumers say refrigerated is top of mind with other fresh categories for wellness and the center store is not.

PB: What steps can retailers take to attract these health-oriented shoppers? Kirchherr: We’re communicating to consumers via social media and through store signage. The goal is to help create awareness of how to build a balanced meal. The Jewel-Osco Facebook page, for instance, has recipes for healthier eating. I also tweet information on quick or easy meal solutions. It’s a fun way to message, open a dialogue and get people excited for actionable steps. We also have shelf tags in stores that direct people to the

PB: How popular are refrigerated items that carry the “natural” and “organic” monikers? Demeritt: The designations are not compelling anymore to consumers. Other attributes, such as the products being locally sourced and seasonal, are becoming more important. There is more of an emotional connection by saying how a product was grown and where it was raised. Local also symbolizes freshness because users know the product did not sit in a truck for three days as it was brought in from another part

valu Pharmacies divisions of Eden Prairie, Minn.-based supermarket operator Supervalu Inc.

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November 2011 • Perishables Buyer

ROUNDTABLE: REFRIGERATED

of the country. That is important to consumers.

PB: What steps can retailers take to most effectively market refrigerated health-and-wellness offerings? Demeritt: Few situations are cookie-cutter. There are varying levels of health and wellness shoppers. Many consumers want information on the products’ ingredi-

Kirchh r

“People love ideas on what to do with healthier foods,

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PB: What are the major challenges facing retailers that merchandise health-and-wellness-oriented refrigerated foods? Demeritt: Refrigerated is a relatively new category for many wellness shoppers and it is not on their radar screens. Once they are aware of pertinent refrigerated products it makes sense to them. The challenge is get-

outlets. And consumers are shopping for health and wellness items at different types of outlets, including Walmart, Whole Foods and farmers markets.

such as fruits and vegetables.” ting their attention in a chaotic shopping environment and when they are time stressed. Refrigerated is more compelling than the center store. PB: Who does the refrigerated merchandiser compete with to attract health-oriented consumers? Demeritt: A major competitor is the deli department where shoppers can pick up ready-to-eat prepared meals. Grocery stores also are battling with foodservice

www.PerishablesBuyer.com

ents. Others are interested in the calorie count. But just putting up nutritional signs at the case is not enough. Kirchherr: People love ideas on what to do with healthier foods, such as fruits and vegetables. Some think they are less delicious than other selections or that it will take hours slaving in the kitchen to create something that tastes good. A misconception it that preparing the foods is harder than it actually is. O

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CATEGORYUPDATES

This Month's Category Updates

27 Produce Back To School

Effective produce merchandising involves educating shoppers—as well as department associates. 29 Dairy A Yen For Yogurt

Demand for yogurt is on the upswing but merchandising challenges remain. 30 Deli

33 Frozen Frozen Takes Center Stage

Frozen food activity is flat. But supporters are planning to heat up the sector with a month-long promotion. 34 Foodservice A Step Above

Food sampling can generate higher department sales and traffic. Here’s how.

Whole Foods Market is setting the standard in the supermarket merchandising of high-quality hot and cold meals.

32 Seafood

35 Infrastructure

Just The Facts

Behind The Glass

Misinformation can have a significant effect on seafood sales. But there are ways to disseminate correct data to consumers.

Designers of refrigerated merchandising cases are working to create energy-efficient and environmentally sound systems.

Try It, You’ll Like It

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November 2011 • Perishables Buyer

CATEGORYUPDATE: PRODUCE

BACK TO SCHOOL Effective produce merchandising involves educating shoppers—as well as department associates. BY RICH MITCHELL editor-in-chief

KEY POINTS O Shopper and employee education is growing in importance. O Sampling is an effective method for increasing activity. O Large displays create eye and scent appeal.

I

t’s no secret that merchandising produce is a complicated endeavor. Such issues as efficient sourcing, shrink reduction and effective marketing remain top of mind for retailers. Yet growing in importance—and being leveraged by more operators—is shopper education. The more comfortable consumers are in buying, and preparing dishes with, produce the greater the revenue potential, operators note. And retailers are implementing a variety of methods to deal with such issues. Michael O’Brien, vice president of produce and floral at Schnuck Markets Inc., a St. Louis-based operator of 100 stores in Missouri, Illinois, Indiana, Tennessee, Mississippi and Iowa, says that many shoppers are intimidated by the prospect of eating mushrooms or choosing the right variety of apples. In response, Schnucks situates kiosks in stores that feature produce recipes and also puts recipe data on signs. “Our studies show that we get a sales lift on the items that are part of recipes,” he states. O’Brien discussed ways to increase produce consumption at the National Produce Association’s Fresh

www.PerishablesBuyer.com

A Summit international convention and expo in Atlanta in October. Save Mart Supermarkets, meanwhile, a Modesto, Calif.-based chain of 241 stores that operate in California and Nevada under the Save Mart, S-Mart Foods, Lucky and FoodMaxx banners, features seasonal recipes in a company-produce magazine. In addition, stores provide samples of produce recipes and the operator has a recipe link on its Website, says Greg Calistro, Save Mart vice president of produce and floral. Calistro, as well as Michael Agostini, senior director of produce for Bentonville, Ark.-based Walmart Stores Inc., also spoke on increasing produce sales at the Fresh Summit. Agostini notes that accessibility, affordability and education are Walmart’s three key produce merchandising strategies. Some Walmart outlets, for instance, have buses that transport retirement center residents to the stores for produce.

A • More retailers are distributing data cards with recipes to educate shoppers on the benefits of, and meal potential for, produce.

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CATEGORYUPDATE: PRODUCE

$35.4 billion Total 2010 U.S. dollar sales for fruits and vegetables, up 4 percent from a year earlier. (FreshLook Marketing Group)

Locations also have signs that reinforce the benefits of fruits and vegetables with a health message, flavor message, and details on how to choose and prepare the foods. Each of the messages is limited to 48 characters because “people shop fast,” Agostini states.

sociates is crucial. “The challenge is keeping trained staff in all stores so they can answer consumers’ questions,” he notes. And because taste is perhaps the key produce selling point, demos are crucial for driving sales, the retailers state. “Taste is what will keep customers coming back,” O’Brien says. “As a result, we need to do more in-store sampling.” Save Mart’s Calistro says associates in his stores also encourage shoppers to sample whatever produce they chose. Among the major hurdles facing produce merchandisers is marketing fruit and vegetables in the midst of rising prices, O’Brien says. “The challenge is keeping customers in our department instead of the center store,” he notes. “The key is to understand who the unique customers are and the unique dynamics in each store. “ He says, for instance, that some outlets have more Hispanic or senior shoppers. “Seniors typically want small packages and families prefer big packages,” O’Brien states. “It is important not to

“You still must manage shrink, but if you get so caught up with it you will sell less.”

The retailers, meanwhile, also are focusing on merchandising to children. Schnucks distributes colorful kids’ educational brochures in stores that describe fruits and vegetables and provides tips on how to eat the produce. “Some teachers use the brochures as part of their curriculum,” O’Brien states, adding, however, that it is crucial to first educate the produce managers and produce associates about the products so they can better describe the items to shoppers. “If associates are not knowledgeable about what they are selling, they can’t bring the customer along,” he says. Schnucks often has suppliers educating its produce personnel. Save Mart, meanwhile, has school classes tour its stores where associates spotlight the healthy items and the growers. Such associates visit supplier farms to learn more about the products. Walmart provides fruit samples to children on Thursdays and Fridays—a period when kids often are in stores shopping with their parents, Agostini states. He agrees that having knowledgeable produce as-

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have all stores merchandising the same things.” Adds Calistro: “You can have stores two miles apart with different demographics. That’s a big challenge for us.” It also is important to merchandise produce in the most appealing way. Walmart’s Agostini says the key is featuring seasonal items in large displays. Such products, he notes, don’t have to be on sale to generate activity. “It creates eye appeal,” he says. “The presentation makes the difference.” O’Brien agrees that large displays are vital. “Produce draws your eye—especially the big fruit which you can also smell,” he notes. “The customer buys it.” Many merchandisers, he adds, do not construct large displays for fear of shrink. “You still must manage shrink, but if you get so caught up with it you will sell less,” O’Brien says. “And your shrink won’t necessarily go down if you cut back and display less produce.” O November 2011 • Perishables Buyer

CATEGORYUPDATE: DAIRY

A YEN FOR YOGURT Demand for yogurt is on the upswing but merchandising challenges remain. BY RICH MITCHELL editor-in-chief

58% The percent of U.S. adults that EAT YOGURT an average of 7.5 times a month.

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he accelerating consumer focus on healthy eating is boosting the yogurt sector. Total revenues for yogurt and yogurt drinks in food, drug and mass-merchandise outlets reached an estimated $4.4 billion in 2010, up 33 percent from 2005, reports Mintel International Group Ltd., a London-based research firm. Sales also are up in a variety of retail channels. Supermarket yogurt revenues increased an estimated 10.3 percent in 2010 compared to 2009, roughly equal to the growth of the category as a whole, Mintel notes. Revenues in the natural channel (excluding Whole Foods and private-label items) increased 27 percent to $164 million between 2008 and 2010, according to SPINS, a Schaumburg, Ill.-based provider of natural product sales data. The expanding U.S. market, meanwhile, is becoming increasingly attractive to merchandisers. Germany-based Ehrmann Family Dairy, for instance, has started marketing five varieties of its All Natural Lowfat Bavarian Yogurt in supermarkets throughout New England and Upstate New York. “The U.S. yogurt market is continuously growing, though the overall yogurt consumption per capita is still much lower in the U.S. than in many European countries, such as the United Kingdom, Germany or France,” says Carolin Widmann, product manager for Mishawaka, Ind.based Ehrmann USA LLC. “But that number is steadily rising in the U.S. and there is great market potential.” She notes that a major merchandising challenge is

www.PerishablesBuyer.com

(Mintel International Group Ltd.)

operating within the relatively small available retail space for yogurt compared to other product sectors. “Shelf space of other dairy categories need to be cut back in order to gain more space for yogurt,” Widmann states. “But there already is a trend of providing more shelf space for established brands with innovative products and concept.” Retail marketing vehicles that are most effective in promoting yogurt include coupons, promotional pricing and in-store sampling, she notes. Widmann adds that the growing revenue opportunities in the U.S. will likely result in additional brands and suppliers entering the market. “The demand will continue to increase for convenient foods that provide solid nutritional value,” she states. “Yogurt fits that perfectly.” Among the newer brands is Sebastopol, Calif.based Green Valley Organics, which recently rolled out peach-f lavor yogurt. Other varieties in the company’s lactose-free and gluten-free line include Plain, Vanilla, Honey, Strawberry and Blueberry. Demand for such health-oriented items—including natural and organic selections—is likely to increase. “Interest in natural and organic is widespread, although interest still outstrips actual behavior at the shelf,” Mintel states. “Marketers can tap into latent demand by highlighting their yogurts’ natural or organic status.” O

KEY POINTS O U.S. yogurt sales have accelerated over the last five years. O Marketers face the challenge of limited shelf space. O Interest in healthoriented items is likely to increase.

A Germany's Ehrmann's brand yogurt has expanded into the U.S., marketing in several Eastern states.

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CATEGORYUPDATE: DELI

TRY IT, YOU’LL LIKE IT. Food sampling can generate higher department sales and traffic. Here’s how. BY RICH MITCHELL editor-in-chief

Key Points:

A

O Product sampling increases revenues and traffic. O Merchandisers can leverage an array of sampling methods. O Food safety is a key operating challenge

S

A The sampling of deli foods, including sandwiches, meats, cheeses and salads, can serve as a consumer magnet and store differentiator.

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ampling is becoming an increasingly important deli merchandising vehicle. Providing consumers with tastes of new and existing offerings not only can propel revenues, but also can attract more customers to locations. Indeed, analysts note that many persons visit specific stores because of the sampling. Companies that demo in a myriad of perishables departments—such as Costco Wholesale Corp. and Whole Foods Market Inc.—frequently attract shoppers who intend to eat the equivalent of a meal while having the anticipation of not knowing what will be available each day. Delis, meanwhile, are an important component in the mix. By offering a wide variety of foods, including a myriad of cheeses, meats, salads and side dishes, there is strong potential for department revenue boosts. Faye Greenberg, director of deli/bakery team sales

3X

Save Mart Supermarkets’ Faye Greenberg says sampling on average triples the sales of the products being demonstrated. for Save Mart Supermarkets, a Modesto, Calif.-based chain of 241 stores operating under the Save Mart, SMart Food, Lucky and FoodMaxx banners, says sampling on average triples the sales of the products being demonstrated. “Providing samples is a key selling tool and is a best practice for any deli to employ,” Greenberg states. “It November 2011 • Perishables Buyer

CATEGORYUPDATE: DELI

provides an opportunity for customers to try before they buy, and establishes credibility and a repeat customer base.” Marcia Schurer, president of Culinary Connections, a Chicago-based food marketing and consulting firm, agrees. “Sampling is very important, especially if it’s a new product that is being introduced,” she states. “But it also is important to demo products that always sell because not all customers have tasted those items and, with the cost of food today, consumers want to be sure that they like what they are buying, even if it is on sale.” There is a variety of opportunities in which to distribute samples. Methods include providing shoppers with a slice of meat or cheese, or a cup of salad, at the full-service deli counter; situating food trays that enable shoppers to serve themselves; or having manned sampling stations in the aisles. Such stations also provide an opportunity for “teachable” demos in which retailers can educate customers on the items while gathering feedback, Greenberg says. “Sampling programs also are ideal for hosting local connections, such as having a cheesemaker, rancher or grower in the stores to demo the foods and answer shoppers’ questions,” she states. “Local connections reinforce a supermarkets’ knowledge of where the food comes from and the practices of the suppliers.” While most deli items are ripe for sampling, including hot and cold foods, cheese is one of the most viable segments because of the wide varieties of local, domestic, international and specialty selections. Some stores have more than 400 types of cheese, which can create a decision-making overload for shoppers. “Cheeses can be very expensive,” Schurer says. “So customers want to know ahead of time if they will like it. Sampling also gets customers to move outside of their comfort zones and to taste some foods that they typically would not buy. That often leads to impulse purchases.” While sampling can generate large fi nancial returns, there also are operating challenges to overcome. A key issue is maintaining food safety. Schurer notes, for instance, that self-serve stations must have the appropriate tongs, toothpicks and napkins. In addition, it is important that temperatures are maintained so the products remain fresh. Demo personnel also must be trained properly in food sanitation, and how best to market the products. “Make sure that the staffers know what ingredients are used in the items, how to cook and sell the products, and the price, shelf life and nutrient data of the selecwww.PerishablesBuyer.com

tions,” Schurer states. Greenberg adds that retailers should have a method for analyzing the strong and weak elements of each sampling initiative so they can continuously improve and grow the programs. “A good sampling program supports the entire store’s merchandising team, engages the customers, and gives consumers another reason to shop at a location and not the competition,” she notes. The frequency of demoing and the range of products being sampled is likely to increase over the next

“Sampling gets customers to move outside of their comfort zones and to taste some foods that they typically would not buy. That often leads to impulse purchases.” few years as shoppers—from watching programs on the Food Channel and other networks and being introduced to new tastes while traveling—become more interested in experimentation. “Meal solutions, local products, new selections and feature items are all key selling points which will continue to be important to customers and are appropriate for sampling,” Greenberg says. “Not only does sampling provide excitement, it tells our customers we care and want them to enjoy shopping in our stores for fun, education and fresh foods. That will keep them interested and keep them returning.” O

B Full-service deli counters, such as this one at Giant Foods in McLean, Va., are prime sampling outlets. With some stores offering more than 400 types of cheese, sampling streamlines the decision-making process. Photo by Rich Mitchell

B

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CATEGORYUPDATE: SEAFOOD

JUST THE FACTS Misinformation can have a significant effect on seafood sales. But there are ways to disseminate correct data to consumers. BY RICH MITCHELL editor-in-chief

KEY POINTS O Many consumers have misinformation about the seafood sector.

O Retailers are using a variety of tools to provide accurate data.

O Employee training is a vital element in sales success.

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E

ducating shoppers on the benefits and backgrounds of foods can help bolster sales in all perishables departments. Indeed, education is perhaps most vital in the seafood sector, where merchandisers say many misconceptions that can disrupt buying abound. They include diverse consumer attitudes on such topics as food safety and the effect fishing has on the environment. And the issue is affecting foodservice operators as well as traditional supermarket retailers. “We can’t afford ignorance,” says Aiden Coburn, director of seafood quality control for The Fish Market seafood restaurant chain in California. “Deciphering correct knowledge about seafood earns the customer’s respect.” Coburn notes, for instance, that many consumers mistakenly believe that farm-raising fish destroys the eco-system. In response to misinformation, retailers are leveraging a variety of strategies to better educate shoppers about the seafood industry. They include training staffers so they can accurately answer customers’ questions, and distributing literature at the point of sale. Pamphlets from Pleasanton, Calif.-based Safeway Inc., the operator of more than 1,700 supermarkets in the U.S. and Canada, for instance, detail the retailer’s seafood sustainability policy. Among the components are the creation of an internal Safeway team to focus on sustainability; working with suppliers to improve how their products are caught or farmed; ensuring employees understand Safeway’s seafood policies, programs and products to better enable them to help consumers make sustainable purchasing decisions; and providing customers with information—through enhanced customer service, signage and additional materials—to help them chose seafood that is healthy for themselves and the ocean. Safeway reports that its sustainability actions include not selling bluefin tuna, all species of shark and several other unsustainable species “that play essential roles in

7.2% Growth rate of FRESH FISH and seafood from 2007 to 2010. (Mintel International Group Ltd.) ocean eco-systems and that are now severely threatened.” Employee training, meanwhile, is one of the most crucial elements for effective seafood merchandising. That includes ensuring that associates politely correct shoppers that spout erroneous information. “Don’t tell customers that they are wrong,” says Chuck Anderson, former vice president of seafood procurement for Ahold USA and the director of new business and retail for Sousa Seafood, a Boston-based fresh seafood supplier and distributor. “Say, ‘this is what I learned’ and then give them the sources.” Altering shoppers’ perceptions, however, is not always simple. “It’s challenging because some customers won’t change their minds no matter what,” notes Rich Castle, director of seafood for Pittsburgh-based Giant Eagle Inc., which has 223 stores in Pennsylvania, Ohio, West Virginia and Maryland. “We tell team leaders to just give shoppers facts and figures but don’t try to change anyone’s mind.” O November 2011 • Perishables Buyer

CATEGORYUPDATE: FROZEN

FROZEN TAKES CENTER STAGE Frozen food activity is flat. But supporters are planning to heat up the sector with a month-long promotion. BY RICH MITCHELL editor-in-chief

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T

he frozen food category is going through a particularly cold spell. Unit sales for the 52 weeks ending Oct 2, 2011, were down 1.26 percent versus the year-earlier period, reports SymphonyIRI Group, a Chicago-based market research firm. Dollar sales were up 1.75 percent. Among the initiatives that are being positioned to jumpstart activity is next March’s National Frozen Food Month. Sponsored by the Harrisburg, Pa.-based National

www.PerishablesBuyer.com

Frozen & Refrigerated Foods Association, the 29th annual promotion is designed to drive traffic in the aisles and reach consumers at the point of purchase; communicate the benefits and innovations in frozen foods; and increase sales across a wide range of brands, categories and departments. In addition to making available a wide array of signage, the NFRA also is supporting a consumer sweepstakes with a grand prize of $10,000. Shoppers can enter at the NFRA’s www.EasyHomeMeals.com Website. The sweepstakes will be promoted in aisle displays and in a national three-page free-standing insert that will be distributed in 37 million Sunday newspapers on March 4, 2012. The NFRA also is redesigning its National Frozen Food Month logo and point-of-sale materials to support next year’s promotion, says Julie Henderson, NFRA vice president. Other National Frozen Food Month marketing vehicles include public relations and radio spots, which in 2011 together reached more than 65 million consumers, she notes. Dollar Sales during the 2011 National Frozen Food Month—for the four weeks ending March 26, 2011— were up 2.5 percent versus the year-earlier period. “Most frozen categories see higher sales during March than other times of the year, though it varies from store to store and region to region,” Henderson states. “But there often is a significant jump because of all the promotions occurring.” Also set to spotlight next year’s March National Frozen Food Month is “Mr. Food,” also known as Art Ginsburg. Ginsburg, who provides syndicated TV vignettes in more than 120 markets with more than 4 million viewers daily, is scheduled to feature March Frozen Food month in one of his spots. Mr. Foods’ frozen food recipes also will be featured on the NFRA’s Easy Home Meals Website and its Facebook page. O

KEY POINTS O Supermarket frozen food activity is sluggish. O March National Frozen Food Month is intended to spark category awareness. O Promotions include a consumer sweepstakes and radio spots.

A • A Stop & Shop outlet in Quincy, Mass., used a hanging sign to support its March National Frozen Food Month promotion this year. National frozen food sales were up 2.5 percent during the month versus the year-earlier period. Photo by Rich Mitchell

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CATEGORYUPDATE: FOODSERVICE

A STEP ABOVE Whole Foods is setting the standard in the supermarket merchandising of high-quality hot and cold meals. BY RICH MITCHELL editor-in-chief

KEY POINTS O Supermarkets are stepping up their foodservice initiatives.

O Whole Foods Market is tailoring its offerings to specific customer bases.

O Sector foodservice activity is projected to expand.

A • Pizza is a prominent Whole Foods focus. A Boston outlet is merchandising a dozen wide-ranging selections.

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F

ood retailers are stepping up their game in the battle for consumers seeking quick, tasty and convenient meals. Once the primary domain of foodservice outlets—including full-service restaurants, and fast-food and fast-casual outlets—hot and cold meal offerings are becoming increasingly prominent in deli departments. Many delis, meanwhile, are offering wider ranges of appetizers, entrées, side dishes and desserts, with selections tailored to the interests of their specific customer bases. Trendsetters include Austin, Texas-based Whole Foods Market, which is offering premium-quality meals tied to the demographics of its shoppers. A Dallas store, for instance, features a “Texas BBQ Station,” that offers complete meals and sandwiches, as well as beef, pork, chicken and ribs by the pound. The BBQ meals include an entrée along with baked beans and mixed vegetables for between $6.99 and $9.99. Center-of-the-plate items include sliced beef, chicken, ribs, sausage and a three-meat combo. A Whole Foods outlet in downtown Boston, meanwhile, offers a dozen types of pizza. Situated next to Symphony Hall, the store's pizzas, which range in price from $12.99 to $16.99, have such names as Mozart (Classical Cheese), Pavarotti (Pepperoni) and Van Halen (Buffalo Chicken). Other selections include Bob Marley (Jerk Chicken), Yo-Yo Ma (Garlic Ginger Sesame Chicken, Broccoli and Miso), La Bamba (Guacamole, Salsa and Black Beans), Aretha Franklin (Goat Cheese, Carmelized Onion and Balsamic), Live! At The Acropolis (Classic Mediterranean), and Grand Ole Opry (Biscuits and Gravy with Bacon).

A

Among the outlet's other meal elements are Breakfast Tacos, Cheddar and Ale Soup, and varieties of sushi for $7.49 each, including Norwegian Smoked Salmon, Smoked Salmon Asparagus Roll, and Smoked Salmon Jalapeno Roll. “Whole Foods brought the concept of going to supermarkets for restaurant-quality meals to the forefront of consumers’ minds,” says Ron Paul, president of Technomic Inc., a Chicago-based food industry research and consulting firm. “It is not like the old days when stores would just offer rotisserie chicken. You have the ability to get a complete meal and the quality is improving.” Many consumers, he notes, find the supermarket meals most convenient because they already are shopping in the outlets. “It is difficult getting in and out of supermarkets, including Whole Foods, quickly,” Paul states. “It often pays to eat in the stores, or to bring the foods home.” He adds that supermarket foodservice initiatives will continue to expand. “Whole Foods is doing quite well and is setting the standard,” Paul states. “But the secret is out.” O November 2011 • Perishables Buyer

CATEGORY UPDATE: INFRASTRUCTURE

Behind the glass Designers of refrigerated merchandising cases are working to create energy-efficient and environmentally sound systems. BY RICH MITCHELL editor-in-chief

of these components scrambling to reduce energy consumption even further with new, more fully refined versions, replacing those that the 2012 DOE regulations render unacceptable.” Newer Zero Zone designs include the Crystal Merchandiser, a refrigerated case that features LED lighting and shortens defrost times by up to 33 percent, Peterson says. The 74-inch tall case also supports 35-percent more facings than traditional multi-deck cases, has up to 25-percent more capacity and is 5-to-7 inches narrower, allowing for wider aisles, he notes. Peterson adds that glass doors also are becoming increasingly prevalent on refrigerated cases that were historically open air, especially those in the dairy, meat, beverage and produce departments. Such doors help reduce energy consumption and also lower aisle temperatures. Open-case aisles can be up to 16-degrees colder than aisles with glass doors, he notes.

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nergy is becoming the great equalizer in the competitive world of display case merchandising. Sensing that operating costs are becoming an increasingly greater burden to perishables marketers, refrigerated case manufacturers are designing devices that are intended to run more efficiently. Sustainability, meanwhile, also is becoming a key focus with newer systems engineered to use less refrigerant and have fewer refrigerant leaks. Another motivator for system enhancements are U.S. Department of Energy regulations that will take effect on Jan. 1, 2012 and set limits on daily energy consumption of cases that are manufactured and sold in the U.S. “There will be a marked move away from T8 lighting to more energy-efficient LEDs,” states Carl Peterson, marketing and advertising manager for Zero Zone Inc., a North Prairie, Wis.-based case manufacturer. “High-efficiency electronic fan motors will become the normal choice. And low-heat or no-heat doors will replace some of the less-efficient heated door options.” Indeed, Peterson predicts that “in the months and years ahead, we will see suppliers

KEY POINTS O Energy efficiency is the key element in new refrigerated case designs. O Manufacturers are designing systems that use less piping and refrigerants. O Sustainability will become an increasingly important retailer concern.

B

www.PerishablesBuyer.com

A AHT Cooling Systems USA is merchandising cases with selfcontained condensers. B AHT cases, including the Ventro, can be used for both refrigerated and frozen applications.

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CATEGORY UPDATE: INFRASTRUCTURE

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“When shoppers aren’t shivering from the cold, they linger longer and purchase more,” Peterson says. Michael Higgins, vice president of marketing, strategic planning and business development for Hussmann Corp., a Bridgeton, Mo.-based case manufacturer, says that while energy-efficient elements are attractive, they also are creating merchandising challenges for retailers. Glass doors in the dairy department, for instance,

D

C Zero Zone’s Crystal Merchandiser is 74-inches tall and designed to take up less floor space. D Zero Zone Inc.’s Crystal Merchandiser supports a variety of perishables operations, including produce.

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can cut case energy costs by 70 percent, but also discourage purchasing, he states. “Merchandisers don’t want to create a barrier between consumers and products because it can hurt impulse buys,” Higgins notes. “But it is hard to ignore such a significant amount of energy savings in an economically challenged environment.” Among Hussmann's energy-efficient solutions are its EcoVision Doors that are available for new or existing multi-deck dairy, deli and beverage cases. The doors reduce refrigerant energy by up to 65 percent; have antimicrobial protection on handles; and are designed for maximum product visibility. “While energy efficiency is important, retailers are in the business of merchandising and selling products, and not in the business of reducing energy,” Higgins says. “It is important to keep that prospective in mind.” Suppliers also are targeting sustainability by reducing the copper piping that connects refrigerated cases to condensers. Condensers transfer refrigerant to cases. Hussmann, for instance, is marketing systems in which pipes lead to condensers that are stored in ceilings or on supermarket floors instead of back rooms. The company’s Protocol refrigeration system typically reduces refrigerant charges by 60 to 80 percent; uses 50 to 75 percent less piping; and has 50 to 75 percent fewer brazed joints, which helps eliminate refrigerant leaks, Hussmann reports. “Traditional installations have miles of pipe throughout the supermarket,” Higgins states. “And November 2011 • Perishables Buyer

CATEGORY UPDATE: INFRASTRUCTURE

E

F reducing pipes also reduces the amount of refrigerant that goes into the pipes.” AHT Cooling Systems USA, Charleston, S.C., meanwhile, is merchandising refrigerated cases that have condensers self-contained within the case, says Howard Feig, AHT director of sales. The configuration eliminates the need for aisle drains and to run refrigerant lines to the units. Stores, he states, can save tens of thousands of dollars by not having to install cooper pipes, retrench floors and test for leaks. The units, which support meat and seafood operations, can be used for both refrigerated and frozen applications. Suppliers say that while energy savings will remain one of the top issues for retailers in coming years, sustainability also will be a growing concern. As a result, Feig predicts that more “natural refrigerants,” such as propane and carbon dioxide, will become increasingly prominent. Hussmann’s Higgins agrees. “Carbon dioxide is getting more notice and we are doing prototype systems for customers in an effort to develop a solution that is efficient, cost-effective and will get widespread adoption,” he notes. Future refrigerated case designs also will include more effective fan, door and lighting options, Zero Zone’s Peterson adds. “The cases will need to appeal to the shoppers’ senses,” he states. “They have to assure them that the products inside are fresh, clean, evenly refrigerated and safe to share with their families without worry or concern over how they were handled or the conditions in which they were displayed.” O www.PerishablesBuyer.com

Change Is In The Energy Winds The U.S. Department of Energy’s new energy conservation standards, which take effect on Jan. 1, 2012, pertain to ice-cream freezers, self-contained commercial refrigerators, commercial freezers, commercial refrigerator freezers without doors, remote condensing commercial refrigerators and commercial refrigerator-freezers. “DOE has determined that conservation standards for these types of equipment would result in significant conservation of energy and are technologically feasible and economically justified,” the agency reports. The standards, the DOE states, will save approximately 1.035 quadrillion British thermal units (Btu) of energy over 30 years. “This is equivalent to all the energy consumed by more than 5 million American households in a single year,” the DOE notes. “By 2042, DOE expects the energy savings from the standards to eliminate the need for approximately 0.7 new 1,000-megawatt power plants. These energy savings will result in cumulative greenhouse gas emission reductions of approximately 52.6 million tons of carbon dioxide, or an amount equal to that produced by approximately 332,500 cars every year.” The agency adds that the standards will help alleviate air pollution by reducing the amounts of cumulative nitrogen oxide and mercury emissions. “The economic impacts on commercial consumers (i.e., the average life-cycle cost savings) are positive for all equipment classes,” the DOE notes, adding that equipment price increases will be offset by energy savings.

E Hussmann’s Protocol refrigeration system is designed to use less refrigerant charge and piping. F Hussmann Corp’s energy-efficient EcoVision Doors are available for new or existing multi-deck dairy, deli and beverage cases.

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AD&COMPANYINDEX

AD INDEX COMPANY

WEB/EMAIL

PAGE

Alouette Cheese USA

www.alouettecheese.com

Perishables Group

www.perishablesgroup.com

Back Cover 3

BNP Media II, L.L.C 155 Pfi ngsten Road, Suite 205, Deerfield, Illinois 60015 847-405-4000 Fax: 847-405-4100

COMPANY INDEX COMPANY

PAGE

COMPANY

PAGE

COMPANY

PAGE

COMPANY

PAGE

AHT Cooling Systems USA ..........37

Schnuck Markets Inc. ...................27

U.S. Department of Energy .........37

Dancing Deer Baking Co. ............14

Center for Culinary Development ...12

SPAR National Fresh Marketing.. 6

Walmart Stores Inc. ......................27

GNP Co. .............................................. 9

Coles Supermarkets ........................ 6

SPINS ................................................29

Whole Foods Market Inc. ............34

National Steak and Poultry .......... 9

Culinary Connections ...................31

Sousa Seafood................................32

Wisner Marketing Group.............23

Butterball LLC................................... 9

Dellmart & Co. Inc. .......................16

Supervalu Inc..................................24

Zero Zone Inc. ................................35

Flowers Foods .................................14

Ehrmann USA LLC .........................29

SymphonyIRI Group ........ 11, 21, 33

Giant Eagle Inc...............................32

The Hartman Group Inc. ..............24

NEW PRODUCTS

Sam’s Club.......................................14

Green Valley Organics ..................29

Technomic Inc. ...............................34

AFA Foods Inc................................... 9

Sara Snacker Cookie Co...............14

Hussman Corp. ...............................36

U.S. Department of Agriculture....10

Beatrice Bakery Co........................14

Surry Farms ....................................... 9

Kroger Corp. ....................................15 Midan Marketing LLC..................... 8 Mintel International Group Ltd................................ 12, 14, 29, 32 National Cattlemen’s Beef Association........................................ 8

Perishables Buyer (formerly R&FF Retailer) reaching an average qualified circulation of 10,000 copies. Source: June 2011 BPA circulation statement.

Sadler’s Smokehouse Ltd............... 9

READER & MARKETING SERVICES PRINT & INTERNET ADVERTISING Peter Hansen 847-405-4033 [email protected] Brion Palmer 847-405-4072 [email protected] LETTERS Rich Mitchell [email protected] Perishables Buyer 155 N. Pfingsten Road, Suite 205 Deerfield, IL 60015 REPRINTS Jill DeVries [email protected] 248-244-1726

National Chicken Council ...........10 National Frozen & Refrigerated Foods Association .........................33

CUSTOM MEDIA Chris Wilson [email protected] 248-244-8264

National Hot Dog Council ..........10 National Pork Board ................ 8, 10 NPD Group ......................................12

BACK ISSUES Ann Kalb [email protected] 248-244-6499

Packaged Facts........................12, 15 Perishables Group.................... 7, 13, 14, 15, 21 Private Label Manufacturers Association......................................15 Publix Super Markets Inc. ...........16 Roundy’s Supermarkets Inc. ......... 7 RSR Research..................................12 Safeway Inc. .....................15, 21, 32 Save Mart Supermarkets ......27, 30

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Also publishers of Beverage Industry, BrandPackaging, Candy Industry, Dairy Foods, Flexible Packaging, Food & Beverage Packaging, Food Engineering, Independent Provisioner, Industria Alimenticia, The National Provisioner, Prepared Foods, Private Label Buyer, and Snack Food & Wholesale Bakery.

November 2011 • Perishables Buyer

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