Perishables Buyer October 2011

13

The Beverage Battle Heats Up

produce

mariano's puts the spotlight on perishables

dairy

retail

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18

Solving The Merchandising Riddle

OCT11 vol.1 iss.1

STATE OF THE INDUSTRY REPORT

www.PerishablesBuyer.com

also

inside

SPECIAL REPORTS ON: + Bakery + Meat + Dairy

+ Produce

+ Deli

+ Refrigerated

+ Foodservice + Frozen + Seafood www.PerishablesBuyer.com

1

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TABLEOFCONTENTS

This Month's

24

Cover Story

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

Category Focuses

13 A Battle Is Joined Increased competition from other beverage categories is cutting into milk consumption. 18 Veggie Fest 2011…And Beyond A national focus on healthy eating means rising fresh produce sales. But finding the right mix of branded, private label, local and national takes some care. 4

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

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“A revenue increase of 1.4 percent is not terrible in bad economic times.” — W. Frank Dell III, Dellmart & Co.

Infrastructure

40 Less Power, Scotty Food retailers are seeking ways to use less energy to run their refrigerated cases.

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October 2011 • Perishables Buyer

Lose the Fat. Not the Flavor. *†

Serving Suggestion

73% less fat* than the leading beef corn dog

™ ™

65% less fat † than the leading beef corn dog

DOLLA R SHARE

MorningStar Farms® is the SALES LEADER in the Frozen Veggie Category *The leading beef corn dogs contain 10g total fat per 76g serving; MorningStar Farms® Meat Free Corn Dogs contain 2.5g total fat per 71g serving. See nutrition information for sodium content. † The leading beef corn dogs contain 10g total fat per 76g serving; MorningStar Farms® Mini Corn Dogs contain 3.5g total fat per 76g serving. See nutrition information for sodium content.

®, TM, © 2011 Kellogg NA Co.

MSF

40.4%

Amy’s Boca All Other

37.9% 9.1% 12.6%

Source: Nielsen, Total US FDMX 52 week ending 8/13/11

TABLEOFCONTENTS

This Month's

9

Retailer Profile

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

Category Reports 34

42

Getting Hotter

Meat is accounting for the bulk of perishables revenues.

The supermarket deli is becoming an increasingly busy destination for time-starved and budgetconscious shoppers.

38

A Money Magnet

44

Refrigerated Foods Are Cookin’

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Refrigerated offerings are becoming increasingly attractive to cost-conscious shoppers.

Convenience, Convenience, Convenience

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

Fresh seafood sales are flat as shoppers seek lessexpensive alternatives.

Calm Waters

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Departments

Sweet Thing

8 editor's note - Introducing Perishables Buyer 46 ad & company index

Desserts are fueling bakery activity and freshness remains top of mind for consumers. 6

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October 2011 • Perishables Buyer

TM

Serving Suggestion

®, TM, ©2011 Kashi Company

Ask your Kashi® product representative about our in-store programs.

EDITOR’SNOTE

» VOL. 1, ISS. 1

INTRODUCING PERISHABLES BUYER T

he perimeter departments of supermarkets are where the action is. Seeking to attract the growing base of shoppers seeking fresh, healthy, convenient and flavorful offerings, operators of the deli, meat, seafood, dairy, produce, bakery and foodservice departments, as well as the refrigerated and frozen aisles, are upgrading and expanding their selections. Indeed, more merchandisers are turning the perishables areas into key competitive differentiators and giving them enhanced marketing priority. To provide those retail and wholesale executives, directors, managers, buyers and other key decision makers with the tools to help them maximize revenues from the crucial perishables departments, BNP Media is launching Perishables Buyer. Each monthly issue will provide readers with the latest category data, new product listings, profi les of influential retailers, successful operating strategies and tactics, and analysis of sector trends. Faye Greenberg, a San Jose, Calif.-based retail and foodservice consultant, for instance, notes that fresh departments, in addition to widening their range of offerings, are including more upscale selections. She says supermarket bakeries have gone from just carrying basics products to selling artisan items that are equal in quality to the products being offered in local stand-alone outlets. “More bakeries are creating a compelling sensory experience that makes it difficult to pass the departments

without venturing in to see what smells so good,” she states. “Operators also have learned the importance of offering category selections of the week and month that capture new trends and flavor profiles that can develop into everyday offerings.” Euromonitor International, a Chicago-based research firm, meanwhile, notes that health and wellness concerns, which are driving fresh food consumption, will further pick up as aging baby boomers become increasingly interested in eating foods that will increase their longevity. The firm reports that baby boomers have the highest disposable incomes of all demographic groups, and are willing to pay extra for fresh foods that are perceived to be rich in nutrients. “Fresh foods are more accessible than ever to average Americans,” Euromonitor International adds. “Big box retailers, such as Walmart, Costco and Target, have dedicated more square footage to fresh produce.” As perishables operators focus on meeting the demands of the expanding and discriminating shopper base, Perishables Buyer will be providing them with the latest actionable intelligence. O

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 1552-3330) 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]

EDITORIAL Rich Mitchell Editor-In-Chief [email protected] John Frank Editorial Director [email protected] Betty Vandenberg Art Director Chris Pirrone Redesign 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

RICH MITCHELL 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.

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PUBLISHER Brion Palmer Group Publisher

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

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

October 2011 • Perishables Buyer

RETAILERPROFILE

A

RETAILER PROFILE

Mariano’s Fresh Foray

BY RICH MITCHELL editor-in-chief

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

F

resh perishables are becoming an increasingly potent supermarket differentiator. Seeking to leverage growing shopper interest in health and wellness, taste and convenience—and to provide a distinct alternative to the traditional grocery and big box stores—more operators are giving greater merchandising emphasis to produce, prepared foods and proteins. Perhaps the most prominent poster child for perishables marketing is Milwaukee-based Roundy’s Supermarkets Inc.’s new Mariano’s Fresh Market chain. While the vast majority of Roundy’s approximately 160 outlets are traditional supermarkets that operate in Wisconsin and Minnesota under the Pick ’n Save, Copps Food Center, Metro Market and Rainbow Foods banners, the company last year entered the Chicago market with Mariano’s Fresh Market and its perishables focus. The first Mariano’s opened in Arlington Heights,

www.PerishablesBuyer.com

Ill., and two additional outlets were launched in 2011. A fourth store is planned for later this year. Named after Robert Mariano, Roundy’s chairman and chief executive officer, the company reports that Mariano’s Fresh Market “is unlike any other store” and that it offers “the freshest high-quality foods from just about everywhere in the world” with “compelling” prices. Indeed, Mariano’s Fresh Market has the appearance of two stores within a single building. In the Vernon Hills, Ill. location there is a vibrant fresh perishables section on one end, and traditional frozen, refrigerated and center store aisles on the other. The perishables corridor features a large produce department, expansive bakery, hot food stations, service deli, sushi bar, seafood case and meat counter, and a host of self-service buffets. Elements include a wood stone pizza oven; a rotisserie case containing whole chickens, baby back ribs,

A Mariano’s is merchandising more than 700 produce items that are sourced from across the country and world. Photos by Rich Mitchell

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RETAILERPROFILE

B

B Mariano’s offers $6 meals at the prepared foods counter that includes an entrée and two side dishes.

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meatloaf and pork roast; an olive bar and fresh salad bar that are priced at $4.99 a pound; a hot soup bar with about a dozen varieties; and hot food bar selections that rotate daily for $5.99 a pound. On Thursdays, for instance, the hot food bar has a “Taste of Mediterranean” theme with such selections as Baked Chicken Vesuvius, Chicken Teriyaki, Pasta and Sauce of the Day, Batter Fried Eggplant, Lasagna, Wisconsin Artisan Macaroni & Cheese, Sausage & Peppers, Chicken Tenders, Fried Chicken, Green Beans, Red Grains & Couscous, and Redskin Mashed Potatoes. Other daily themes include “Far East Feast,” “Latin Fiesta,” “Backyard Barbecue,” “Famous Fish Fry,” and “Home Cooked Cooking.” Indeed, such prepared foods are a key perishables focus. The full-service deli counter—in an effort to compete with fast-food and fast-casual restaurants—offers $6 meals featuring an entrée and two side dishes that also are sold a la carte in the case. Entrées include Chicken Milanese, Sicilian Meatballs, Roasted Salmon Filet Teriyaki, Grass-Fed Beef Meatloaf, Frenched Rack of Pork, Pulled Pork with

Chicken Sweet Sauce, Herb Roasted Turkey Breast, and Italian-Style Grilled Chicken Breast. Among the side dishes are Red Grains and Pearl Couscous, Vegetable Cake with Tomato Concassè, Ratatouille with Crumbled Goat Cheese, Roasted Yukon Gold Potatoes, Steamed Asparagus, BBQ Cajun Waffle Sweet Potatoes, Au Gratin Potatoes, BBQ Baked Beans, Redskin Mashed Potatoes, and Stuffed Shells Marinara. The meals can be eaten at the outlet’s in-store dining section. Steven Petusevsky, Roundy’s former director of culinary innovation, says he created the original foodservice program and prepared foods menu for Mariano’s with a balance of store-level kitchen-made recipes, commissary-produced items and signature dishes. The goal, he notes, was to create points of distinction from traditional supermarkets. All the selections were made from personal proprietary recipes that were distributed to select vendors for replication, Petusevsky reports. Prepared items also are prominent in other perishables departments. The full-service meat counter, for instance, contains October 2011 • Perishables Buyer

RETAILERPROFILE

C “While variety is important and viewed as a positive by consumers, there is the delicate balance of giving customers what they want while also having the right product turn, which is tricky.”

D David Livingston Livingston, managing partner at DJL Research, a Waukesha, Wis.-based supermarket site analysis fi rm, says such offerings are helping to position Mariano’s Fresh Market as an attractive alternative to traditional supermarkets, including the two largest chains in the Chicago area—Jewel-Osco and Dominick’s Finer Foods. Jewel-Osco is operated by Eden Prairie, Minn.-based Supervalu Inc. Dominick’s is owned by Pleasanton, Calif.-based Safeway Inc. Robert Mariano is a former Dominick’s executive. “Mariano’s enhances perishables much more than its major competitors which are plain, sterile, old grocery stores,” Livingston says. “While some retailers might do a better job then Mariano’s in specific areas, such as the salad bar or seafood department, none has better perishables as a whole. And Mariano’s is very price competitive.” Still, while an attractive perishables department can serve as a powerful shopper magnet, it does not guarantee that visitors will do all their food shopping in the outlet. Indeed, Ben Ball, senior vice president of Dechert-Hampe & Co., a Northbrook, Ill.based sales and marketing consulting fi rm, says Mariano’s risks having consumers just stay within the perishables areas and not venture to other store departments. During a recent weekday afternoon, for instance, the perishables areas of the Vernon Hills Marino’s were bustling with shoppers, while the remainder of the store— and particularly the frozen aisles—had sparse traffic. “Outside of perishables, most of Mariano’s resembles Pick ’n Save [a traditional supermarket] and it even has the same private-label Roundy’s-branded

E

a host of value-added selections. They include Chicken Shish Kabobs, Beef on a Stick with Black Peppers, Stuffed Bell Peppers and Beef Pinwheels Greek Style. There also are a host of boneless chicken breast recipes for $4.99 a pound: Cajun, Teriyaki, Sundried Tomato, Chicken Cordon Bleu, Stuffed Spinach Feta, Stuffed Asparagus Swiss, Lemon Garlic, and Italian Flavor. www.PerishablesBuyer.com

C The Mariano’s outlet in Vernon Hills, Ill., has a sign that report’s the day’s produce count. D The expansive bakery department includes a wide variety of cakes, artisan breads, muffins and Italian pastries. E Foodservice offerings include pizza that is baked in a wood stone oven.

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RETAILERPROFILE

Mariano’s Fresh Market At a Glance

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Banner > Mariano’s Fresh Market Rollout > July 2010 Owner > Roundy’s Supermarkets Inc. Headquarters > Milwaukee, Wis. Chief Executive Officer > Robert Mariano Stores > 3 Market Area > Northern Illinois Locations > Arlington Heights, Ill., Chicago, Ill., Vernon Hills, Ill. Chief Competitors > Jewel-Osco, Dominick’s Finer Foods, Whole Foods Sister Banners > Pick ’n Save, Copps Food Center, Metro Market, Rainbow Foods

items,” Ball says. “Even though there are huge gross margins in perishables, there also are high operating costs from shrink, labor, electronics and ingredients, which often results in net losses. The true profitability comes from the center store packaged goods items, such as soft drinks, snacks and bread.” Wade Hanson, director of research and consulting for Technomic Inc., a Chicagobased foodservice consulting firm, agrees that minimizing waste remains a major operating challenge for perishables-oriented retailers. That can be particularly burdensome for Mariano’s and other operators that carry large varieties of fresh foods. Mariano’s reports, for instance, that it is merchandising more than 700 produce items that are sourced from across the country and world. Among its offerings are 10 varieties of fresh mushrooms, peppers and tomatoes, 350 types of natural and organic yogurt, and 350 kinds of cheese.

“While variety is important and viewed as a positive by consumers, there is the delicate balance of giving customers what they want while also having the right product turn, which is tricky,” Hanson notes. “Carrying too many products and SKUs and trying to be all things to all people creates waste.” O

G

F The full-service deli counter includes a range of prepared foods, and supplier- and companybranded meats and cheese. G Three Mariano's outlets are operating in the Chicago area, and a fourth is scheduled to open this year.

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October 2011 • Perishables Buyer

CATEGORYFOCUS

DA IRY

A BATTLE IS JOINED Increased competition from other beverage categories is cutting into milk consumption. BY RICH MITCHELL editor-in-chief

T

he dairy sector is becoming an increasingly active battlefield for share of stomach. Not only is there stronger competition between merchandisers of branded and private label offerings, but marketers also are going head-to-head with other popular food segments. Perhaps the most pressure is on the milk market, with merchandisers working to attract and retain consumers who also are being targeted by producers of carbonated soft drinks, sports drinks, readyto-drink tea, energy drinks and soy beverages. And because milk lags other drink categories in new product development, milk sellers will need to implement creative initiatives to forge a stronger sales proposition, analysts say. “Consumers won’t hesitate to switch brands or products if their view of value changes,” says Gary Hemphill, managing director and chief operating officer, information services, for Beverage Marketing Corp. of New York, a New York City-based data, consulting and financial services firm. “Innovations have been down the last few years because shoppers have been spending less because of the economy.” Indeed, Hempill says milk sales growth is likely to trail that of the competing beverages over the next several years. Rosemont, Ill.-based Dairy Management Inc., which administers the dairy industry’s checkoff program, reports that milk is the second-largest beverage category in terms of volume and dollar sales, trailing carbonated soft drinks. Ca rbonated sof t d r i n k s ha s a n approx i mate 37 percent volu me sha re, fol lowed by m i l k (about 27 percent), bot t led water (about 25 percent), ju ice a nd ju ice d r i n k s (7 percent) a nd

www.PerishablesBuyer.com

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spor ts energ y d r i n k s (4.2 percent). A consumer survey commissioned by the Milk Processor Education Program (MilkPEP), a Washington, D.C.-based organization funded by milk producers that is focused on increasing milk consumption, found that persons on average drink 8.5 ounces of milk daily—about the same as last year— but that children account for a greater share of milk consumption than adults. “There is a strong opportunity to boost milk consumption among adults through stand-alone milk or by having milk added to other foods and beverages,” reports Kikke Riedel, MilkPEP director of market research. Riedel and Hemphill spoke on industry trends in September at the International Dairy Show in Atlanta. While adults between the ages of 18 to 49 ac-

A • Per capita milk consumption fell almost 9 percent during the last decade.

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CATEGORYFOCUS

KEY POINTS A COMPETITIVE MARKET The milk sector is under pressure from merchandisers of carbonated soft drinks and other beverages. THINKING YOUNG Children account for a disproportionate share of milk consumption. IN NEED OF INNOVATION New product rollouts for white and flavored milk are on the decline.

DAI RY

count for 49 percent of the U.S. population, they consume just 42 percent of milk. Children between the ages of 2 and 8 account for 10 percent of the population but consume 17 percent of milk. “Children under 18 are more likely to drink milk on a daily basis and consumption drops as people age,” Riedel says. She adds that consumers are drinking about eight cups of beverages per day, with milk accounting for just about 8 percent of the total. To trigger greater milk sales, retailers should position products as meeting the major interests

Godfrey, who also presented at the International Dairy Show, notes that in order to grow milk consumption, merchandisers must steal share from other beverage categories. Contributing to milk ’s usage decline were growths in water, yogurt and soy sales, and falling cereal consumption. About 52 percent of all milk is consumed at inhome breakfasts, and 40 percent of volume comes from adding milk to foods and beverages or having it consumed as part of another stand-alone beverage. Milk, meanwhile, lags other beverage catego-

“There is a strong opportunity to boost milk consumption among adults through stand-alone milk or by having milk added to other foods and beverages.” – Kikke Riedel, MilkPEP director of market research

ries in the rate of product innovations. There were 48 new product introductions for white and f lavored milk from 2009 to 2010, reports the Beverage Marketing Corp. and Mintel International Group Ltd., down 25 percent from a year earlier. In contrast, there were 266 new carbonated soft drink introductions, up 24.3 percent, and 349 fruit beverage introductions, up 11.9 percent. “Milk is underperforming in offering new products to consumers, even though it’s the second-largest beverage category,” Godfrey notes, adding that greater innovation is crucial if milk is to better compete for share of stomach. Such innovations can include function, f lavor, packaging and texture, she states. A Decade Of Milk Decline Godfrey adds that MilkPEP’s 2012 merchandising goals include Category 2000 2009 initiatives to entice consumers to incorporate milk into new occaTotal Milk Consumption (in gallons) 6.34 billion 6.33 billion sions, further encourage the use Total Milk Consumption (in pounds) 54.5 billion 54.4 billion of milk at in-home breakfasts, and Per Capita Consumption (pounds per person) 193.1 177.2 build awareness and educate athPer Capita Consumption (gallons per person) 22.4 20.6 letes about the “refueling” benefits Milk’s Share of Stomach 10.0% 9.3% of low-fat chocolate milk. O

of consumers, including the desire for enhanced health and wellness, says Vivian Godfrey, MilkPEP chief executive officer. Indeed, in its Dietary Guidelines for Americans 2010 report, the U.S. Department of Agriculture and U.S. Department of Health and Human Services encourage consumers to consume more milk, vitamin D and calcium. The need to highlight such initiatives is important as U.S. per capita consumption of milk has declined over the last decade, dropping from 22.4 gallons in 2000 to 20.6 gallons in 2009. During the same period, milk ’s share of stomach fell from 10 percent to 9.3 percent.

Chart Source: USDA; BMC, Buckingham Research Group; Monitor Analysis

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Average Retail Milk Price (per gallon)

$2.85

$3.13 October 2011 • Perishables Buyer

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CATEGORYFOCUS DAI RY

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

new products:

DAIRY Dole Packaged Foods Introduces A Fruit Smoothie Shaker Dole Packaged Foods LLC, Westlake Village, Calif., is introducing the Dole Fruit Smoothie Shaker. The 11-ounce containers include frozen fruit and yogurt in 7 ounces of liquid. Flavors include Mixed Berry, Strawberry, and Strawberry Banana.

Ben & Jerry’s Launches Three Ice Cream Flavors Ben & Jerry’s, Waterbury, Vt., is marketing three new ice cream flavors: Bonnaroo Buzz—coffee and malt with a whisky-caramel swill; Schweddy Balls—vanilla with a hint of rum; and Late Night Snack— vanilla with a salted caramel swirl and fudge-covered potato chip clusters.

Straus Family Creamery Develops Locally Made Organic Sour Cream Straus Family Creamery, Petaluma, Calif., is offering slow-cultured locally made organic sour cream. Developed without additives, products come in 16-ounce containers and are available in two varieties: Full Fat and Light.

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October 2011 • Perishables Buyer

CATEGORYFOCUS

DAIRY DOINGS

$49.5 billion Total U.S. dairy sales for the 52 weeks ending Sept 4, 2011, up 5.2 percent from the year-earlier period.

85% Share that traditional white holds in overall milk sales. It is followed by traditional flavored (7 percent), organic (3.3 percent) and buttermilk and eggnog (1.3 percent).

(SymphonyIRI Group) (MilkPEP All Channel Tracking)

$3 billion Fresh EGG SALES for the 52 weeks ending Sept. 4, 2011, up 8.1 percent from the year-earlier period.

60.1% Percent of milk sold at food, mass merchandise and drug stores, the largest sales channel. (MilkPEP All Channel)

(SymphonyIRI Group) www.PerishablesBuyer.com

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CATEGORYFOCUS

PRO DUC E

VEGGIE FEST 2011 …AND BEYOND A national focus on healthy eating means rising fresh produce sales. But finding the right mix of branded, private label, local and national takes some care. Here’s why. BY JOHN N. FRANK editorial director

KEY POINTS A LOCAL FOCUS Shoppers are increasingly seeking locally grown products that have a freshness halo. THE PRIVATE LABEL PUSH Store brands are becoming more prominent as merchandisers seek to differentiate their offerings. VEGGIE POWER Vegetable sales have risen significantly over the last five years and further growth is forecast.

A Fruits and vegetables are generating about 30 percent of overall perishables revenues. Photo by Rich Mitchell

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T

he produce aisle may seem the most idyllic place in a typical supermarket, what with its rows of brightly colored, fresh fruits and vegetables beckoning to shoppers as they begin their trek through a store. But beneath the tranquility and misters used to keep produce looking fresh and cheery, two tug-of-wars are quietly at play. Produce buyers need to be aware of each and carefully pick their sides in them to maximize sales in this rapidly changing category. The first war is being brought about by consumers interested in the local food movement. Worried about transportation costs and pesticides used on larger farms, some consumers, especially younger shoppers of Gen Y, are searching out locally grown produce. Indeed, the local food movement is sending average Americans to farmers markets like never before, presenting challenges to traditional food retailers trying to hold onto their business. Larger growers are responding by doing more educational campaigns directed at consumers, assuring them of the quality of produce on their supermarket shelves. Larger growers have “a lot of interest in telling their story,” explains Mike Chirveno, a consultant with ClearVision Consulting, a Kansas City-based firm that works with large growers. Growers are open to providing educational materials to retailers that are designed to encourage produce sales in traditional stores, he notes, so perishable buyers should be on the lookout for such offers that could stretch their marketing budgets in-store. The second battle is between private label produce and branded produce. As national brand powerhouses, such as Dole, have branched into new produce categories, retailers have come to realize there’s also money to be made by expanding their private label offerings.

“As more produce is packaged and, in some from or fashion, value is added, the uniformity of the offering lends itself more to private label,” explains Bruce Axtman, president and chief executive officer at the Perishables Group, a Chicago-based fresh food consulting firm. “The trend is toward more packaged produce, more value-added, washed, pre-sliced, cut, ready-tosteam. As those things happen, it does lend itself more readily to private label.”

A Indeed, secret shoppers that Perishables Buyer and its sister publication, PLBuyer, sent out to four stores across the country in late summer found more private label produce offerings than they did branded produce. In some stores, such as a Wegmans outlet in Maryland, October 2011 • Perishables Buyer

Boosting Sales, Benefiting Children, Bettering Communities

We bring the produce industry together to support worthy causes for children while educating families on the benefits of healthy eating. PFK’s new Ideal Meals program provides healthy, delicious, easy-to-prepare meals for the entire family. This new innovative series includes colorful merchandising displays and so much more.

Visit us at produceforkids.org for more information

PRO DUC E

CATEGORYFOCUS

most of the produce was either Wegmans private label or unbranded, unpacked items, one shopper reports.

Healthy Eating While these cross currents swirl around the produce world, one positive for sales is that consumers perceive fresh fruits and vegetables as healthier than processed foods. With the emphasis today, from the White House down to local communities, on healthy eating to

market, with the top two positions taken by Chiquita Brands International, with its Fresh Express salad mix brand, and Dole Fresh Vegetables, with its Dole salad mixes, though both companies gave up share in 200910 to private label salad mixes. Larger retailers, such as Safeway and Kroger, have developed extensive private label salad mix lines.” Speaking with PLBuyer earlier

Produce At-A-Glance • Fresh vegetable sales will hit $62.3 billion by 2015 • More retailers are offering private label produce • Consumers are searching for local options • National growers are investing more for in-store marketing and education efforts. • The national push for healthy eating should help sales.

combat the nation’s obesity epidemic, produce sales are rising. U.S. vegetables sales, both fresh and canned, have risen 22 percent from 2005 through 2010 and sales should grow at a 6.2 percent compounded annual growth rate through 2015, predicts Mintel International Group Ltd., a London-based market research firm. Sales for the U.S. fresh vegetable market totaled $45.2 billion in 2010, Mintel estimates. Roughly 59 percent of vegetables sold in supermarkets are unbranded, Mintel says. “Mintel expects fresh vegetable sales to continue to climb, reaching $62.3 billion in 2015,” its March 2011 report on vegetables states. Looking at what sells in the produce aisle, Mintel notes that “Salad mixes are the sales leaders in the food, drug, and mass merchandisers, excluding Walmart, vegetable

20

this year, Jamey Friedman, president of distributor and packing facility Freshouse, Salisbury, N.C., advised that stores should commit to private label in as broad an array of produce items as they feel comfortable with, to build brand loyalty. “It’s consistency,” he says. “You’re pushing the idea that your product’s best, and that you have control of your supply chain because it’s on a lot of the packaging in the store. The consistency shows control, and it probably increases your buying power, too. It sends a message to the customer that you’re committed to it.” Friedman has seen cases where retailers essentially come up with two different lines of private label produce—one a label that’s branded for its consistency and the other more of a value brand. “They might use a different spec in that [value] label,” he says. “The off-sized stuff goes into another label with a better price point.” “A lot of retailers are doing really well promoting foods with the farmer’s label,” adds Roger Pepperl, marketing director with Stemilt Growers, Wenatchee, Wash. “There’s a camp that thinks private label is the way to go. There’s a camp that believes in telling people who grew it and talking about the farmer. It’s a real quandary for retailers right now.” Finding the right answers for your market will spell higher sales, so it’s a quandary well worth considering. O October 2011 • Perishables Buyer

CATEGORYFOCUS

PRO DUC E

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

new products:

PRODUCE fresh express introduces two organic salad mixes Fresh Express, a wholly owned subsidiary of Chiquita Brands, is introducing two organic salad mixes—Organic Baby Sweet Lettuce and Organic 50/50 Mix. Organic Baby Sweet Lettuce includes a blend of lettuce varieties, as well as Baby Spinach. Organic 50/50 Mix includes Baby Spinach and greens.

22

amcor markets aluminum bowls for on-the-go and indulgent products Amcor Flexibles Specialty Performance Food North America, Mundelein, Ill., is marketing new Canny aluminum bowls that feature a peelable membrane for a spillage-free opening. It is designed for package food portions of approximately 100, 115 or 140 milliliters.

naturesweet ltd. adopts new packaging for its greenhouse cherry tomatoes

decas cranberry products launches a line of dried cranberries

NatureSweet Ltd., San Antonio, Texas, is merchandising its cherry tomatoes in new packaging developed by Azusa, Calif.-based Direct Pack Inc. The packaging is designed for enhanced product visibility, better protection and an extended shelf life.

Decas Cranberry Products Inc., Carver, Mass., is launching a line of dried cranberries that are available for private label. The all-natural, fat-free cranberries are free of cholesterol, artificial colors and preservatives. A onethird cup serving equals one full serving of fruit.

October 2011 • Perishables Buyer

CATEGORYFOCUS

FRESH FACTS

Weekly average store sales of BERRIES, the top-selling produce category. The next largest categories are packaged salads and tomatoes.

46.3

(Perishables Group)

%

Vegetables’ share of overall U.S. produce sales. Fruit has a 44.7 percent share.

$3,236 % 5.9 34% Increase in sales of valueadded fruit in July 2011 compared to the yearearlier period, the largest gain among the top-10 produce categories. (Perishables Group)

www.PerishablesBuyer.com

Projected growth rate of

U.S. vegetable sales from 2010 to 2015.

(Perishables Group)

4.6

%

The average increase in weekly store produce sales for the U.S.’ Central region. It is the highest gain among all regions and greater than the 2.8 percent national increase. (Perishables Group)

(Mintel International Group Ltd.)

23

a Schu rci

re r

Ma

COVERSTORY

ge

Ri

ard Geor ch

President, Culinary Connections

Fa

g er

Greenb ye

Hoffm ne

an

Chief architect, Brick Meets Click, president, Willard Bishop LLC

Professor of food marketing, St. Joseph's University

Ge

l Bishop Bil

President of Corporate Strategies International, former president of the Kroger Co.

Former marketing director, Winn-Dixie Stores Inc.

The

Peri

Merchandising experts pinpoint the potentially vast rewards, and operating challenges, facing perishables marketers. BY RICH MITCHELL editor-in-chief

erishables are a key variable in determining a supermarket’s success. The produce, deli, meat, seafood, dairy, bakery, foodservice, frozen and refrigerated departments are key shopper destinations and becoming increasingly important store differentiators. Many analysts, meanwhile, are forecasting increased shopper interest in perishables as an aging population becomes more health conscious and consumers from a

P 24

cross-section of demographic groups seek new, exciting and convenient food alternatives. Yet, they also note that perishables retailers must adopt dynamic merchandising strategies if they are to keep pace with changing shopper trends while efficiently managing operations. Perishables Buyer spoke with five merchandising experts about the state of the perishables industry and how retailers can best leverage growth opportunities. Bill Bishop is chief architect of Brick Meets Click, a

October 2011 • Perishables Buyer

COVERSTORY

shables Picture

A Barrington, Ill.-based information advisory firm. Richard George is professor of food marketing at St. Joseph’s University in Philadelphia. Faye Greenberg is a San Jose, Calif.-based retail and foodservice consultant and a former marketing director for Jacksonville, Fla.-based Winn-Dixie Stores Inc. Gene Hoffman is president of Corporate Strategies International, a Wayzata, Minn.-based retail consulting firm and former president of The Kroger Co. Marcia Schurer is president of Culinary Connections,

www.PerishablesBuyer.com

a Chicago-based food marketing and consulting firm. PB: How important are perishables to overall supermarket operations? Greenberg: Perishables are the “engine” of the store. They have become the store’s brand and identity. Fresh departments have evolved over the years and today compete with the likes of fast food, casual dining, fi ne dining, coffee houses and local hangouts for their share of the wallet. They also have become the go-to

A • Perishable departments have become the engines of many food retailers, experts tell Perishables Buyer.

25

COVERSTORY

B choice for meal solutions for all day parts. Schurer: The quality and product mix and variety in supermarket perishables departments are probably the most important reason why a consumer chooses a particular store. And there still are strong growth opportunities in such areas as foodservice, value-added meat and seafood, the artisan bakery and cheese. PB: In what ways have supermarket perishables departments evolved in recent years? Greenberg: Fresh departments have reinvented themselves and have gone from just offering the basics to today’s selections of upscale and trendy choices for each day

“Baby boomers are looking at anything that will extend their life and perishables are a way to talk about health and wellness.” — Richard George part. Delis, for instance, have expanded from rotisserie, fried chicken, pizza and potato salad, to fully prepared meals, side dishes, ethnic specialties and fresh seasonal salad offerings. Produce has more variety of fresh than ever. They include ready-to-cook-and-serve, pre-sliced, diced and seasoned items. It is a department that has vastly benefitted from advanced technology. Schurer: There are a lot more hot foods and hot bars which also have expanded over the years to include all kinds of grains, ethnic foods, entrées, side dishes and soups. There also are more made-to-order stations that feature salads, wraps and sandwiches, Asian bowls, sushi, grilled items, pasta, pizza and rotisserie.

B • Baby boomers see fresh vegetables, and perishables in general, as a way to extend their lives, experts agree.

26

PB: How have shopper attitudes and behaviors toward perishables been changing? Bishop: More people are now looking for meals that are part of a healthy diet. That creates a great opportunity for perishables. Meal solutions historically have been created

by consumer packaged goods manufacturers with a focus on center store items. But we need to extend it to include perishables as well. Consumers now understand that what they eat at meals 21 times a week determines their health and not any individual item. They are buying vegetables as well as proteins from the dairy, meat and seafood departments. And illustrating the benefits of whole grains gives the bakery a chance to play in this arena as well. George: Baby boomers are looking at anything that will extend their life and perishables are a way to talk about health and wellness. Generation Y shoppers are worried about obesity and are starting to think and eat differently. It is creating a real opportunity for supermarkets to differentiate themselves by working to attract health-oriented shoppers. Hoffman: More people want access to their foods more promptly. Interest in nutrition is growing and changing demographics have led to increased interest in ethnic and specialty foods. And, of course, when people invest their time and dollars they want a dividend such as lower prices, better quality and some fun during their quest. Schurer: Consumers are more concerned about where the perishables come from, especially for produce. For instance, are they buying locally sourced foods or do the items come from other parts of the U.S. or other countries? Safety also is very important to consumers. They want to know that their food is delivered from reliable sources. They also want to know all the ingredients in their products. Shoppers are reading labels more closely and asking store associates more questions about the items. In addition, they are more willing to experiment and try different foods. PB: What are other ways that retailers can differentiate their perishables departments? George: Through education of staffers and not just the perishables associates. Employees can talk to customers about recipes, nutrition and healthy eating. Perishables also can be fun and exciting. That can occur with displays featuring meal solutions, such as having a russet baked potato next to a sirloin of beef, or having bananas in the cereal aisle. Hoffman: Astute marketing and in-store dynamics can

October 2011 • Perishables Buyer

COVERSTORY

create a niche. When I was at Kroger we re-designed our perishables departments with new, related personalities to win customer appeal and add fun to the mix. In the produce department we introduced “Dew-y the Rabbit” in animated displays in the “Lettuce Patch” and also gave kids “Dew-y” buttons and included “Dew-y” in animated cartoons in television advertising. Kids loved it and kept insisting that their mothers go visit “Dew-y the Rabbit” in the Kroger produce department. If I were active in the business today, I would create contemporary parallels of those loveable spokespersons as part of a new perishables mystique.

the dollars of the expanding health food audience. Niche and focused grocers such as Whole Foods and Trader Joe’s are growing.  Meanwhile, supermarkets are losing market share.  PB: How will perishables departments evolve over the next few years? Greenberg: The departments will continue to grow while creating and capturing new demand in the market. Customers also will have greater interest in fresh and locally sourced foods and will look to the departments for those items, as well as time-saving easy-to-prepare offerings to

PB: Explain the key merchandising challenges facing perishables operators. Bishop: A major issue is managing inventories at the store level so that the shopper has plenty of choices but there is a minimum of shrink. That is not a new issue but it’s a more important challenge. It is important to have food displays in the produce and deli departments that don’t require large amounts of inventory. The goal is to have attractive displays with strong marketing impact that require fewer products. Greenberg: In addition to shrink and labor costs, operators also must be sure to offer products that fit the demographics of shoppers in each specific store. The departments also must keep pace with shopper trends and that includes having interesting food offerings and the latest equipment that gives them the ability to develop the right products for their customer bases. PB: How can perishables merchandisers further increase revenues? Bishop: In an era when marketing is becoming more important, perishables don’t have as many well-developed programs as other departments that market what they are doing. They have to step up and grab a greater share of peoples’ attention. Online marketing, including e-mail, social media and digital, is an area where perishables merchandisers can do more without the scale of a television ad. Greenberg: Products should be of superior quality; there must be well-trained, friendly and engaging staff who can answer customers’ questions; products should be innovative as well as great-tasting; the design of the departments should make shopping easier; stores need to have sampling stations; and products need to stand out from those of competitors while showcasing the departments’ and stores’ unique brands. Hoffman: Enhance on-site casual and nutritional dining. But daring ideas in grocery retailing are like chessmen moved forward. They may be beaten, just as many formats have been, but they also may start a winning game. Consider how Whole Foods has captured the imagination and

www.PerishablesBuyer.com

C meet the resurgence in home-cooked meals. Schurer: There will be continuing emphasis on healthy and nutritious foods, and also convenient offerings that are ready-to-eat, heat and cook. Retailers also will have to be price sensitive to consumers and find ways to offer them value and quality. In addition, there will be further interest in organic and natural products. The more educated the consumer, the more transparent the ingredient labeling will become. And, though not required by law, service prepared foods may start being labeled with calorie and nutrient data, such as fat, sodium and carbohydrate content. Foodservice operations with more than 20 units will have to start putting calorie information on their menu boards and that may create a greater demand from consumers for supermarkets to follow suit. Also, foods will become more portable, authentic and artisan. And there may also be more demand for meal planning as there still are plenty of people who don’t know how to cook, want to cook, or have time to cook. O

C • Perishables departments will continue to grow, capturing new demands in the marketplace, Greenberg predicts.

27

CATEGORYFOCUS

FRO Z FOO EN D

THAWING OUT After several down years, frozen food activity has stabilized. And strong revenue opportunities remain. BY RICH MITCHELL editor-in-chief

KEY POINTS SALES ARE UP Frozen food revenues for the 52 weeks ending Sept. 4. 2011 totaled $32.2 billion, up 1.4 percent from the yearearlier period. EATING IN The dining-at-hometrend is triggering strong sales in a multitude of categories, including handheld breakfast foods and soup. MARKETING CHALLENGES New product rollouts are predicted to boost interest in frozen foods, but other merchandising obstacles, such as limited shelf space, remain.

A A Safeway outlet in Kona, Hawaii, uses a floor sign to promote ice cream. Industry frozen activity has been relatively flat over the last year. Photo by Rich Mitchell

28

T

he frozen food forecast is becoming brighter. Following several down years, market activity has leveled off. And that bodes well for future category growth, analysts note. Frozen food revenues for the 52 weeks ending Sept. 4, 2011 totaled $32.2 billion, up 1.4 percent from the year-earlier period, reports SymphonyIRI Group, a Chicago-based market research firm. Unit sales reached 10.6 billion, a decrease of 1.1 percent. “A revenue increase of 1.4 percent is not terrible in bad economic times,” says W. Frank Dell III, president of Dellmart & Co., a Stamford, Conn.-based retail consultancy. “It shows that the department as a whole is stable.” Within the sector, however, are wide activity swings—much of which is resulting from changing shopper lifestyles. Revenues for frozen handheld breakfast foods, for instance, rose 13.3 percent to $402.8 million. Unit sales were up 10.8 percent to 99.5 million over the last year, indicating that time-starved customers are seeking convenient meal solutions and are eating in more often to cut expenses. Indeed, the dining-at-home trend is leading to solid sales of a multitude of frozen offerings. Soup revenues, for instance, were up 25.6 percent to $25.2 million, and unit sales increased 34.7 percent to 7.7 million. On the flip side, greater shopper interest in health and wellness and a desire to cut extraneous expenses is contributing to some category declines. The frozen desserts and toppings sector, for instance, had a 2.9 percent drop in revenues and a 4.9 percent unit sales decrease in the last 52 weeks. Ken Harris, chief executive officer of Kantar Retail Americas, an Evanston, Ill.-based marketing and sales strategy and consulting firm, says the changing econo-

my—and evolving consumer attitudes—contributed to overall category stagnation. Many shoppers prior to the downturn viewed frozen foods as a convenient option that enabled family members to have different selections at mealtime—such as pizza and a Lean Cuisine entrée—at a reasonable cost, Harris notes. During the recession, however, “the concept of value shifted to where there was greater demand for larger, familysize packages and the manufacturers were slow to pick up on that,” he says. “Many categories hemorrhaged badly.” Shoppers also were reluctant to trade-up to higherpriced options, leading to a slowdown in product innovation, Harris notes.

A More manufacturers, however, are starting to develop products that address current market needs rather than the historic demands, he states. “The sector will remain stable over the next couple of years,” Harris predicts. “The mindset of the consumer shifted and it has taken awhile for developers to get retrenched. Now they are trying to create excitement with new taste experiences.” Noting that frozen foods still are “very relevant for a wide sector of the population,” he adds that merchandisers also will seek to expand activity with more functional display cases and cross-merchandising. October 2011 • Perishables Buyer

“

wo Whole NEW Ways to Drive Sales! “

Mrs. T’s® is serving up even more smiles with new Whole Grain Varieties! Starting January 2012, these wholesome pierogies join our family of 12 delicious flavors and two fun-filled sizes (full and mini). So, no matter what your customers are looking for, Mrs. T’s has products that will make them smile…and build your category sales! Pierogy Category Up 6%

Concept Purchase Intent*

Sweet Potato

5 Cheese

Definitely Buy Probably Buy

36% 49%

62% 15%

*PSU Test Results

85%

77%

Source: IRI $, 52 week, ending 9/2011

To learn more, contact your Ateeco, Inc. / Mrs. T’s Pierogies representative. Visit www.pierogies.com

As seen in: Real Simple, All You, Martha Stewart Living and Everyday Food

© 2011 ATEECO, INC.

Look for Mrs.T’s national advertising this fall!

FRO Z FOO EN D

CATEGORYFOCUS

An Up And Down Year For Frozen Food Sales Category

Dollar Sales

Percent Change

Unit Sales

Percent Change

Baby Food/Juice/Snacks

$1,797,921

203.24

892,493

404.86

Coffee Creamer

$3,417,584

-4.88

1,687,520

-9.84

Corn On The Cob

$107,092,300

-3.28

38,182,280

-4.70

Fruit

$378,901,500

1.49

111,651,500

-0.09

Meat (no poultry)

$1,354,489,000

3.94

325,108,500

1.45

Chili

$13,342,770

5.22

4,326,510

2.23

Dips

$12,352,860

-16.74

3,567,689

-27.35

Soup

$25,250,200

25.66

7,732,730

34.72

Stuffing

$4,172,621

-0.28

1,283,069

-0.74

Tortillas

$3,197,418

6.18

1,146,620

0.65

Pasta

$276,368,900

1.93

97,214,830

1.62

Side Dishes

$215,924,000

-2.09

93,510,740

-2.18

Bread/Dough

$711,331,300

3.21

254,592,200

1.85

Breakfast Food

$1,610,588,000

9.16

578,800,600

6.20

Desserts/Topping

$519,083,800

-2.96

229,995,300

-4.96

Prepared Vegetables

$295,031,500

9.40

155,417,800

8.79

Appetizers/Snack Rolls

$999,608,800

0.61

285,174,500

0.10

$5,841,543,000

-0.07

2,310,600,000

-2.13

$468,969,200

1.08

138,567,700

9.01

$2,956,559,000

-2.36

967,389,700

-4.78

Dinners/Entrées Pies Pizza Pot Pies

$274,999,400

5.50

187,298,800

1.00

Plain Vegetables

$1,783,556,000

-0.18

1,091,519,000

0.24

Potatoes/Onions

$1,064,532,000

2.34

392,580,900

0.97

$345,203,700

-6.54

199,304,000

-11.12

Ice Cream/Sherbet

$4,123,942,000

1.43

1,201,524,000

-5.00

Novelties

$2,728,721,000

2.00

906,369,300

-0.72

Juices

Chart Source: SymphonyIRI Group. Figures are for 52 weeks ending Sept. 4, 2011. Percent change is versus the yearearlier period.

30

“It is very much a work in progress and there is no silver bullet,” Harris states. “Retailers must realize that frozen foods still are very viable and they must take the necessary merchandising steps to appeal to consumers.” Dell agrees that new product rollouts will boost interest in frozen foods, but notes that retailers still must deal with the historical problem of limited case space. He suggests that merchandisers rotate selections and consistently market new products to help create the “treasure hunt” feel that is attracting shoppers to Costco and Trader Joe’s outlets. “New products are being developed and sales opportunities are being created,” he says. “But retailers are not taking advantage of the possibilities.” Operators also are not adequately promoting frozen foods, Dell notes, adding that drawing attention to the aisles is crucial as frozen items are increas-

ingly competing with similar selections in other store departments. Frozen juices, for instance, are vying with bottled juices for shopper attention, and frozen vegetables and fruit are competing with fresh offerings in the produce section. “Many stores are focusing on drawing attention to the fresh departments and that makes sense because it is Wal-Mart’s weakest area,” Dell states. “Produce, for instance, is offering more unique products.” Yet, retailers also can create more interest in frozen foods by stepping up aisle promotions, he notes. Actions could include the placement of large arrows on the frozen cases pointing at new or featured products, and adding shelf talkers and floor signs. “Retailers have to get out of the mindset that what is done in the dried grocery area won’t work in frozen,” Dell says. “They need to come up with initiatives because the aisles have become sterile.” O October 2011 • Perishables Buyer

It’s time…

to indulge in super premium profits.

When consumers find a brand that completely satisfies their needs, they always come back for more. That’s why Unilever introduced MAGNUM®, a super premium frozen novelty. Made with an exclusive blend of ice cream and rich sauce, that’s double dipped in Belgian Chocolate, your consumers won’t be able to get enough. With premiumization expected to drive 30% of category growth in the next five years*, and a growing appetite for daily indulgence, MAGNUM® will attract new shoppers, entice trade-up and drive frequency. MAGNUM® has had massive global success and knows how to satisfy consumers. Tempt them with shelves stocked in a variety of decadent flavors and watch the category grow to its full potential. MAGNUM®. Bigger pleasure for consumers. Bigger profits for you. *Source: Nielsen AOC 52WE 4/17/2010; Note: Category Market Value basis UL financial indicators and current cat trends

©2011 Unilever

FRO Z FOO EN D

CATEGORYFOCUS

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

new products:

FROZEN FOOD H.J. Heinz Co. Rolls Out T.G.I. Friday’s Frozen Meals H.J. Heinz Co., Pittsburgh, is rolling out T.G.I. Friday’s-branded Entrées for One, a line of readymade individual frozen meals.

93%

The share of respondents who had eaten a meal or snack that contained chicken in the two weeks prior to a June survey of 1,050 households by PKS Research Partners.

Perdue Farms Introduces Simply Smart Chicken Perdue Farms, Salisbury, Md., is introducing Simply Smart, a line of grilled, lightly breaded and roasted chicken products. It is made with whole cuts of chicken breast.

Jolly Llama Novelties Adds To Its Squeezups Sorbet Line Jolly Llama Novelties, Santa Monica, Calif., is adding two selections to its Squeezups squeezable real fruit sorbet line: Peach and Banana Coconut.

32

-2.1%

The decline in dollar sales for frozen single-serve dinners and entrées for the 52 weeks ending 9/4/11 compared to the year-earlier period, reports SymphonyIRI Group. Unit sales fell 2.8 percent.

$75.3 MILLION; Revenues for frozen ice pop novelties for the 52 weeks ending 9/4/11 compared to the year-earlier period, down 7.5 percent, reports SymphonyIRI Group.

October 2011 • Perishables Buyer

CATEGORYFOCUS

COLD HARD FACTS

62.1

%

Increase in unit sales of FROZEN COOKIE DOUGH for the 52 weeks ending 9/4/11 compared to the yearearlier period, the strongest gains in the frozen sector. Dollar sales were up 46.6 percent.

2.5%

(SymphonyIRI Group)

The growth in frozen food department dollar sales during Frozen Food Month in March. In contrast, total grocery store dollar revenues increased 1.7 percent during the period. (National Frozen & Refrigerated Foods Association)

22%

$2,850,000,000

Increase in sales of frozen foods and beverages in all retail channels from 2006 to 2010, a $10 billion gain.

Size of the U.S. frozen vegetable market. Private label products generate about 41 percent of sector revenues.

(Packaged Facts)

(Mintel International Group Ltd.)

www.PerishablesBuyer.com

3.4

%

The projected growth rate of ice cream sales ales from 2011 to 2015. 015. Annual revenues ues are forecast to reach $5.86 billion in n 2015, up from a projected t d $5.63 billion in 2011. (Mintel International Group Ltd.)

33

CATEGORYREPORT: DELI

GETTING HOTTER The supermarket deli is becoming an increasingly busy destination for time-starved and budget-conscious shoppers. BY RICH MITCHELL editor-in-chief

T

A • More than half of all deli revenues are generated by prepared foods, followed by meat and cheese.

34

he supermarket deli is ripe for an ever-greater sales boost. Many delis already are enhancing revenues by responding to shoppers’ growing interest in convenience, wellness and exciting eating by offering wider arrays of prepared foods. Popular selections include entrées and side dishes that are low in fat and calories and developed from novel recipes. And more outlets are further solidifying the sector by leveraging self-service buffets and expanding their specialty protein offerings. The Perishables Group, a Chicago-based fresh food consulting fi rm, reports that average dollar sales per store have risen consistently over the last five years in a variety of categories. Weekly prepared food revenues, for instance, have gone from $9,335 in 2006 to $11,026 in 2010. In addition, cheese sales increased from $3,676 to $4,193, and beverages went from $819 to $903. “The deli was the department with the largest increase in sales from the prior year,” the Perishables Group notes. Indeed, prepared food sales were up 6.2 percent for the 52 weeks ending 6/25/11 versus the year-earlier period, the Perishables Group states. Chicken, salads and sandwiches were the top revenue generators. Also hot was the presliced deli meat sector, which had a 9.7 percent sales increase. The gain was fueled in part by more cost-conscious

A

and convenience-oriented shoppers eating at home or brown bagging lunch instead of visiting foodservice outlets. The most popular presliced proteins include ham, which has a 36.7 percent category share, up 14.3 percent. Next is turkey with a 32.2 percent share, up 12.7 percent, and salami with a 15.6 percent share, an 8.3 percent increase. Bulk deli meats, meanwhile, have an 88.1 percent share of the meat category, a 3.7 percent revenue increase. O October 2011 • Perishables Buyer

THE SPIRIT OF INNOVATION. It is what makes Blount Fine Foods team culinary experts. Experience has taught us that using the finest ingredients, knowledgeable people and a passion for perfection is truly the only way to develop premium products.

Blount Fine Foods 630 Currant Road Fall River, MA 02720 2JQPGrYYYDNQWPVHKPGHQQFUEQO

CATEGORYREPORT: DELI

TAKE A NUMBER

52.2% Prepared foods’ share of DELI DEPARTMENT REVENUES. It is followed by meat, cheese and beverages. (Perishables Group)

% $4,579 66% Weekly average dollar sales per store of BULK MEAT, the highestgrossing deli category.

Share of deli shoppers who say they have made a serious effort to decrease fat from their diets. That is down from 85 percent in 1994 and 72 percent in 2004. (IDDBA)

(Perishables Group)

6.4% 36

2.3

Increase in total deli revenues for the 52 weeks ending 9/4/11 compared to the year-earlier period.

Consumers’ weekly average consumption rate of CHEDDAR CHEESE, the most consumed deli product.

(SymphonyIRI Group)

(IDDBA)

October 2011 • Perishables Buyer

CATEGORYREPORT: FOODSERVICE

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

A

S

upermarket foodservice operations, which primarily include the merchandising of hot and cold prepared foods in the deli, are benefitting from the eat-at-home movement. Deli prepared food dollar sales were up 6 percent for the 52 weeks ending 6/25/11 compared to the yearearlier period, reports the Perishables Group, a Chicagobased fresh food consulting firm. More cost-oriented shoppers are dining in instead of visiting fast-food and fast-casual restaurants. Yet, foodservice departments still must take further steps to add convenience in order to stay on the growth track, analysts say. “People are going to demand a lot more home delivery,” predicts Alan Hiebert, education information specialist for the International Dairy-Deli-Bakery Association (IDDBA). “There also has to be some kind of solution for perishable products so the items don’t go through temperature abuse between the store and house.” In its What’s In Store 2011 report, the IDDBA notes that “unique flavor profi les, innovative dining experiences and increasing opportunities to serve the ‘professionalization of the amateur home cook,”’ are all influential sales drivers.

www.PerishablesBuyer.com

Consumers, the report states, are gravitating to such items as rotisserie and fried chicken, salads, sandwiches, meatball-oriented dishes, pizza and ethnic entries. Indeed, deli prepared chicken, with a 27.1 percent share, generates the largest portion of prepared foods dollars, the Perishables Group notes. It is followed by salads (19.8 percent), sandwiches (12.4 percent) and entrées (11.7 percent). “People are still as busy as ever, but they don’t necessarily have as much disposable income,” Hiebert says. “They’re still looking for meals, and they’re still looking for convenient, quick ways to feed their families.” Such meals, he adds, include “ready-to-eat, or perhaps ready-to-heat, or ready to put together with minimal effort. Something that feels homemade, even though it may not be.” O

The Deli Prepared Foods Dollar Share Breakdown Category

Share

Prepared Chicken

27.1%

Salads

19.8%

Sandwiches

12.4%

Entrées

11.7%

Dips/Spreads/Toppings

7.7%

Sushi

5.5%

Snacks

3.3%

Platters

3.0%

Pizza

2.9%

Other

2.3%

Soups

2.2%

Sides

2.2%

A • A Shaw's supermarket in downtown Boston caters to the lunch and dinner crowds with an elaborate foodservice counter that offers pizza, sandwiches and "meal deals" that include prepared entrées and side dishes. Photo by Rich Mitchell Chart Source: Perishables Group Fresh Facts Powered by Nielsen. Figures are for 52 weeks ending 6/25/11.

37

CATEGORYREPORT: BAKERY

SWEET THING Desserts are fueling bakery sales activity and freshness remains top of mind for consumers. BY RICH MITCHELL editor-in-chief

C

ake is king in the supermarket bakery. Driven by increasing sales of cupcakes, cakes remain the leading bakery category with average weekly sales per store of $2,904 for the 52 weeks ending 7/30/11, up 2.2 percent versus the year-earlier period, reports the Perishables Group, a Chicago-based fresh food consulting firm. Next in popularity are breads, with average weekly sales of $1,978, up 2.2 percent, and rolls, with sales of $1,090, up 1.4 percent. Desserts, meanwhile, account for 46.8 percent of overall bakery revenues, the Perishables Group notes. It is followed by breads and rolls (30.1 percent), breakfast bakery (21.6 percent) and other miscellaneous items (1.5 percent). Freshness, meanwhile, remains key to overall bakery success. In its Consumers in the Bakery report, the Madison, Wis.-based International-Dairy-Deli-Bakery Association (IDDBA) notes that the top-five supermarket bakery purchase drivers are fresher breads, fresher baked sweet goods, samples, nutrition labels, and products available in smaller portion sizes. “Roughly two-thirds of consumers say they will buy

Cakes And Breads Top The Bakery Sales Standings Dollars Per Store/Week

Percent Change

Cakes

$2,904

2.2

Breads

$1,978

2.0

Rolls

Category

A • Desserts is the most popular bakery category, accounting for almost half of department revenues. Chart Source: The Perishables Group. Figures are for 52 weeks ending 7/30/11. Change is versus the year-earlier period.

38

$1,090

1.4

Cookies

$994

0.7

Donuts

$757

5.1

Sweet Goods

$708

5.2

Pies

$640

0.7

Muffins

$441

2.3

Bagels

$300

1.8

Other Misc

$153

6.9

A

more from their in-store bakeries if the breads were fresher, the sweet goods were fresher and samples were available or provided upon request,” the report states. “Second-tier purchase drivers focus on more customer service, children’s prompting, and the desires for products that fit into a special diet.” On the down side, a perception that in-store bakeries carry less healthy products than other perishables departments is likely to impact activity. Indeed, the IDDBA recommends that bakery retailers and managers focus on negating the elements that are likely to create negative experiences and impact shopper loyalty. They include not enough healthy choices, products that are not fresh, not enough value price choices, products that spoil too quickly, and price increases and perception of price increases. Merchandisers, the IDDBA states, can target education and product marketing efforts to help consumers eat healthier; let customers know what the store is doing to ensure freshness; let consumers know their price concerns are understood by offering value; look for creative and fun ways to reward customers, including having frequent sales; and solicit customer feedback. O

October 2011 • Perishables Buyer

CATEGORYREPORT: BAKERY

RISING NUMBERS

3.7%

The desserts share in overall perishables revenues. Breads and rolls generate 2.4 percent. (Perishables Group)

32%

T The forecasted forecaste growth rate of fresh rolls, buns and croissants from 2009 to 2013, the fastest rate of any segment in the bread category.

$708 Average weekly store sales of SWEET GOODS for the 52 weeks ending 7/30/11, up 5.2 percent from the year-earlier period. Sweet goods had more than TWICE THE GROWTH RATE OF CAKES, the highest revenuegenerating bakery item. (Perishables Group)

(Mintel International Group Ltd.)

32%

1.78

Percent of consumers who shop for bakery products at traditional supermarket SELF-SERVE BAKERIES one to three times a month. Twenty-eight percent shop the department once a week.

Average DAILY times consumers EAT BREAD. The amount is down from 1.83 in 2004 and 3.72 in 1999.

(IDDBA)

(IDDBA)

www.PerishablesBuyer.com

39

INFRASTRUCTURE: DISPLAY CASES

LESS POWER, SCOTTY Food retailers are seeking ways to use less energy to run their refrigerated cases. Here are some ways to achieve that goal. BY ED FINKEL

E

A Meat cases from Hill Phoenix Inc. use a cooling system that reportedly cuts the refrigerant charge in half. B Coolgenix technology in Hill Phoenix cases is designed to stablize product temperatures.

nergy savings are on the minds of perishable retailers—as well as technology providers—as they look to keep or increase supermarkets’ always-modest margins during difficult economic times. More customers of Hill Phoenix Inc., a Conyers, Ga.based display case developer, for instance, are asking for cases with doors and eco-friendly lighting that uses less energy, says Marjorie Proctor, Hill Phoenix design and marketing specialist. And with new federal requirements for lighting efficiency rolling out in 2012, that demand won’t go away anytime soon, she states. “Lighting is one of the most important factors in creating atmosphere in a case and showing off product,” says Proctor, whose company offers LED lighting called Clearvoyant that is designed to illuminate products—and make them more appealing to shoppers—while eliminating the dark spots common to traditional fluorescent lighting. The Clearvoyant lighting, which does not contain mercury, phosphor, lead or ultra-violet rays, generates energy savings of up to 69 percent compared to conventional T8 fluorescent lighting, she notes.

Proctor adds that more cost-conscious operators also are looking to remodel display cases with energy-efficient elements rather than replace them, but notes they still are paying attention to curb appeal by including a variety of exterior finishes such as stainless steel, painted metal, laminates or wood, along with a mix of flat or curved glass. Also focusing on energy savings is Spotsylvania, Va.based Intelligent Power and Air Solutions Inc., which produces an air-conditioner line called Advantix that uses liquid desiccant technology instead of coolant to remove humidity from the air, says B.J. Elliott, company founder and president. The system is part of a more holistic approach toward energy consumption, he states. “It’s allowing for efficiencies in how pieces are

B

A 40

interacting as a whole,” Elliot says. “That’s profit that retailers can’t achieve by throwing more product on the shelf.” Another manufacturer, Waitsfield, Vt.-based Freeaire Refrigeration, is marketing systems for walk-in coolers, freezers and cold storage warehouses that are designed to reduce electricity consumption. The company’s All Climate solution, for instance, is intended to eliminate the unnecessary operations of compressor systems. Such technology is important as “prices for power seem to be on an ever-upward spiral,” says Richard Travers, Freeaire president. O October 2011 • Perishables Buyer

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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

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Seafood

CATEGORYREPORT: MEAT

A MONEY MAGNET Meat is accounting for the bulk of perishables revenues. BY RICH MITCHELL editor-in-chief

A

T

A • Fresh products account for about 65 percent of meat sales. Processed meats generate approximately 24 percent of revenues.

42

he meat of perishables sales is being generated by…meat. Historically a key supermarket differentiator, meat departments are generating the largest share of perishables dollars. Fresh meat accounted for 24.5 percent of sales for the 52 weeks ending 7/30/11, according to the Perishables Group, a Chicago-based fresh food consulting firm. Following in perishables dollar share were vegetables (15.2 percent) and fruits (14.7 percent). Processed meat, meanwhile, generated 9.2 percent of revenues. Within the meat department, consumer purchase decisions are being made—in order of importance—by price per pound, product appearance, package size (total package price), nutritional content, knowledge of how to prepare, and preparation time required, according to the 2010 Power of Meat report. The report was designed, analyzed and created by 210 Analytics LLC, a San Antonio, Texas-based market research firm. The most effective meat promotions are in-store signage, the report notes. Indeed, in a shopper survey, 38 percent of respon-

dents indicated that signs with sale prices very much influence what they purchase, and 30 percent noted that the signs influence how much they purchase. Next in promotional importance are meat coupons, meat advertisements in direct mail sales flyers and newspapers, meat mark downs because of reaching sell and use-by dates, in-store sampling, recipes or cooking instructions on meat packaging, and assistance from store personnel. Within the meat department, beef on average takes up 42 percent of linear space in the fresh case, according to the 2010 National Meat Case Study, up from 40 percent in 2007. The increase was generated by expanded feet devoted to ground beef. Chicken has a 27 percent case share, up 1 percent; pork a 20 percent share, down 1 percent; turkey 6 percent, down 2 percent; lamb 3 percent, the same as in 2007; and veal 2 percent, a 1 percent gain. The study involved audits of 131 major supermarkets in 51 markets in 31 states. It was sponsored by Duncan, S.C.-based Sealed Air Corp., the Centennial, Colo.based Beef Checkoff and the Des Moines, Iowa-based Pork Checkoff. O

October 2011 • Perishables Buyer

CATEGORYREPORT: MEAT

BUTCHER'S BLOCK

44% $16,803 Percent of PORK packages that are valueadded, the largest percentage among meat case proteins. Next is chicken at 24 percent. (National Meat Case Study)

11.7 billion

Average weekly store sales of beef for the 52 weeks ending 7/30/11. BEEF IS THE LARGEST SINGLE CATEGORY in all perishables departments. (Perishables Group)

$3.30

TOTAL MEAT POUND SALES for the 52 weeks ending 7/24/11, down 3.9 percent from the year-earlier period. Dollar sales were up 3.4 percent.

Average price of GROUND BEEF that was sold during the second quarter of 2011. Whole muscle beef had an average price of $5.14.

(FreshLook Marketing Group)

(FreshLook Marketing Group)

www.PerishablesBuyer.com

43

CATEGORYREPORT: REFRIGERATED OUTLOOK

REFRIGERATED FOODS ARE COOKIN’ Refrigerated offerings are becoming increasingly attractive to cost-conscious shoppers. BY ED FINKEL

I

A • Sliced lunchmeat revenues have risen about 4 percent over the last year. Shredded cheese sales are up approximately 7 percent. Photo by Rich Mitchell

44

t’s no secret that consumers are eating out less. And that not only is good news for the refrigerated foods sector, but it is a trend that is likely to continue in a sluggish economy. “As consumers have tried to cut back, they’re going to options that are great ways to get an affordable meal,” says Tim Smith, director, lunchmeat, for Downer’s Grove, Ill.based Sara Lee Corp.’s Hillshire Farms brand. “We’ve seen a bit of lift from consumers changing their habits.” Indeed, sales for Hillshire Farms’ Deli Select lunchmeat line totaled $331.8 million for the 52 weeks ending Sept. 4, 2011, up 7 percent from the year-earlier period, reports SymphonyIRI Group, a Chicago-based market research firm Brands and retailers are emphasizing healthier options and new flavor profiles to draw shoppers into the refrigerated section, Smith says. Hillshire Farms, for instance, recently introduced two new products that fit those profiles—grilled, seasoned chicken breasts and smoked sausages in four flavors. “We realize that consumers are looking for items that are as close to real and as close to wholesome as we can get them,” he says, adding that the typical shopper “is looking for other ways she can bring interesting flavors into her family.” Supermarket refrigerated sections have typically played second fiddle to the frozen aisles because of Americans’ habit of weekly shopping trips and the longer distances they travel to shop, says Chris Brady,

A

senior marketing manager for MeadWestvaco, a Richmond, Va.-based packaging firm. But the refrigerated aisle has grown market share in part by offering products that shoppers wouldn’t know how to make at home but have eaten frequently at restaurants—such as hummus, Brady says. Refrigerated spreads, for instance, was among the strongest refrigerated categories over the last year with sales totaling $491. 8 million, up 12.8 percent, SymphonyIRI Group notes. In a January 2008 report, Mintel International Group Ltd., a London-based market research firm, predicted that the refrigerated foods market would rise 19 percent to $2.6 billion in total sales nationwide from 2007 to 2012, after accounting for inflation. The refrigerated side dish sub-segment was forecast to lead the sector with 33 percent growth. If consumers keep opting for eat-at-home, those forecasts likely will be on target. O October 2011 • Perishables Buyer

CATEGORYREPORT: SEAFOOD

CALM WATERS Fresh seafood sales are flat as shoppers seek less-expensive alternatives. BY RICH MITCHELL editor-in-chief

Overall, fresh seafood accounts for 79.7 percent of seafood department sales. Prepared seafood has a 16.5 percent share. The average retail price of seafood, meanwhile, increased in most categories, the Perishables Group states. It notes that Tilapia was a top performer within fin fish and crustaceans had the largest decrease in dollars compared to the previous year. Also sluggish is frozen seafood activity. Unit sales totaled 347.4 million for the 52 weeks ending 9/4/11, up just 0.6 percent from the year-earlier period, reports SymphonyIRI Group, a Chicago-based market research firm. Revenues were $2.29 billion, a 3.6 percent increase. O

A

C

onsumers’ careful wallet watching is impacting fresh seafood purchase behavior. Average weekly store sales of fresh seafood was $4,976 for the 52 weeks ending 7/30/11, down from $5,060 in the year-earlier period, reports the Perishables Group, a Chicago-based fresh food consulting firm. A 2010 Perishables Group consumer survey found that 82 percent of respondents who are purchasing less seafood than a year earlier attributed the cutback to cost. In addition, 7 percent noted that the cutback was due to dietary restrictions; 7 percent because their children moved out or there are fewer persons in their house; and 2 percent indicated that they are eating more meat instead of seafood. Indeed, Mintel International Group Ltd., a Londonbased research firm, notes that while total U.S. retail fish and seafood sales reached $15.8 million in 2010, category revenues still were well behind that of red meat ($71.9 billion) and poultry ($41.4 billion). Fresh seafood revenues had grown significantly over the five years prior to the slowdown. Average weekly sales totaled just $4,390 in 2006. More robust is the prepared seafood sector, with weekly average store revenues of $970, up from $926 in 2009 and $786 in 2006.

www.PerishablesBuyer.com

The Category Leaders In Seafood Department Sales Dollars Per Store/Week

Percent Change

Fin Fish

$2,288

2.7

Shrimp

$1,651

-4.5

Other Prepared Seafood

$890

7.7

Crustaceans

$728

-14.1

Mollusks

$288

-8.1

Surimi Seafood

$122

2.0

Sauces and Seasonings

$109

-4.8

Seafood Side Items

$72

4.0

Seafood Dips and Spreads

$34

-4.0

Other Seafood

$24

-12.5

Category

A • Economic conditions are impacting fresh seafood activity. Sales are sluggish over the last year. Chart Source: The Perishables Group. Figures are for 52 weeks ending 7/30/11. Percent change is versus the year-earlier period.

45

AD&COMPANYINDEX

AD INDEX COMPANY

WEB/EMAIL

PAGE

Alouette Cheese USA

www.alouettecheese.com

3

Ateeco, Inc.

www.pierogies.com

2

Blount Fine Foods

www.blountfinefoods.com

Kellogg Company

www.kellogg.com

Perishables Group

www.perishablesgroup.com

21

Produce for Kids

www.produceforkids.com

19

Saputo Cheese USA

www.saputo.com

15

Unilever

www.unilever.com

31

35 5, 7, Back Cover

PAGE

COMPANY

PAGE

Amcor Flexibles Specialty Performance Food North America .....22

International Dairy-Deli-Bakery Association ........ 36, 37, 38

Beef Checkoff ................................................................................42

Intelligent Power and Air Solutions Inc. ................................40

Ben & Jerry's..................................................................................16

Jolly Llama Novelties ..................................................................32

Beverage Marketing Corp. of New York.................................13

Kantar Retail Americas ...............................................................28

Brick Meet Click ...........................................................................24

MeadWestvaco .............................................................................44

ClearVision Consulting ...............................................................18

Milk Processor Education Program .........................................13

Corporate Strategies International .........................................24 Culinary Connections ..................................................................24 Dairy Management Inc. ..............................................................13 Decas Cranberry Products Inc...................................................22

Mintel International Group Ltd. ...........19, 23, 33, 39, 44, 45 National Frozen & Refrigerated Foods Association............33 NatureSweet Ltd. .........................................................................22 Packaged Facts..............................................................................33

Dechert-Hampe & Co.................................................................. 11 Perdue Farms .................................................................................32 Dellmart & Co. ..............................................................................28 Direct Pack Inc. .............................................................................22 Dole Packaged Foods LLC ...........................................................16 DJL Research.................................................................................. 11 Euromonitor International........................................................... 8

Perishables Group.......................18, 23, 34, 36, 38, 42, 43, 45

READER & MARKETING SERVICES PRINT & INTERNET ADVERTISING Peter Hansen 847-405-4033 [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 CUSTOM MEDIA Chris Wilson [email protected] 248-244-8264 BACK ISSUES Ann Kalb [email protected] 248-244-6499

Pork Checkoff ................................................................................42 Roundy’s Supermarkets Inc. ........................................................ 9 St. Joseph’s University ................................................................24

Freeaire Refrigeration .................................................................40

Sara Lee Corp. ...............................................................................44

Fresh Express .................................................................................22

Sealed Air Corp. ............................................................................42

FreshLook Marketing Group ......................................................43

Stemilt Growers ............................................................................19

Freshouse........................................................................................19

Straus Family Creamery .............................................................16

Hill Phoenix Inc.............................................................................40

SymphonyIRI Group ............................................... 28, 36, 44, 45

H.J. Heinz Co..................................................................................32

210 Analytics LLC .........................................................................42

46

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

Brion Palmer 847-405-4072 [email protected]

COMPANY INDEX COMPANY

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

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.

October 2011 • Perishables Buyer

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