A Food Related Death Makes Headlines ... and Reminds About the Importance of Food Allergy Education

It sounded like a scene from a B-grade horror movie, a 15 year-old girl kisses her 16 year-old boyfriend and dies. Unfortunately it was a reality - which underscored just how critical it is that food retailers understand how serious food allergies really are.

Christina Desforges of Quebec, Canada kissed her boyfriend nine hours after he ate a peanut butter sandwich. Christina failed to respond to the standard treatment which typically is a shot of adrenaline. And she died.


The saddest news is that her death could have been avoided if she had just told her boyfriend about the severity of her peanut allergy; preliminary reports indicate that he was not aware of her situation.

Food allergies are nothing to be ashamed of, and especially for teens who may think it "un-cool" to discuss something this mundane to their friends, it is critical that we raise the level of awareness of this terrible affliction without attaching a social stigma. The key is communication.

Supermarket retailers and CPG companies have not only a responsibility to make sure that any prepared foods or baked goods are clearly labeled so that those with allergies can avoid specific trigger ingredients, but also have a responsibility to stock and showcase products that are specifically designed for those with food allergies.

With the new food labeling regulations taking effect on January 1, 2006, there is also an opportunity to merchandise and position your store's commitment to serve this growing population and build a relationship that goes well beyond pricing and features. Food allergy label reading classes and store tours are obvious opportunities, but don't ignore the back room implications of promoting samplings that are food allergy sensitive by designating specific utensils, cookware and other preparation tools to avoid cross contamination.

We've developed a simple tool for you to offer to your customers and at no cost to you or them - just link to it from your website, or write about it in your circulars or ads. It's the Food Allergy Buddy card - which is just one more way that your customers can communicate their allergies clearly and effectively every time - and everywhere. It's FREE, it's SIMPLE to use, and they print it out themselves. Just go to www.foodallergybuddy.com.

Chips off the old block? Anything but!
Holiday Season Marks the 2nd Anniversary of U.S. Mad Cow Discovery
Gas Prices Continue Fueling Changes in Consumer Behavior
How Will the Supermarket Change in 2006?
Aging Baby Boomers Need Love... and Lubricants
Brand Packaging Can Be Even More Effective in Reaching Shoppers' Emotions
Healthier Potatoes on the Horizon?
Grocers Discover New Market: Gluten-Sensitive Consumers
Channel Watch


ACNielsen's new book on category management, published by John Wiley & Sons, is now available. To order, click on the image above. Or, for discounted orders of 10 or more, contact Jeff Gould at Wiley at jgould@wiley.com.
FMI's Speaks is the annual state of the industry report for food retailers. Included are the latest trends in sales growth, general operations, supermarket company operating costs, employee turnover and advertising methods. Click on the image above for more info.
U.S. Hispanics are emerging as the marketing opportunity of the 21st century. The fastest growing ethnic group in the United States, Latinos far outspend the average U.S. supermarket shopper. Learn more about U.S. Hispanic spending patterns, importance of products and services, coupon usage and influence of advertising. Click on the image above for more info.
This annual report provides you with a complete financial picture of the supermarket industry as well as the external business environment, including key ratios, balance sheet, income statement and statement of cash flow. The results are provided for the entire industry as well as by annual sales for more accurate benchmarking. Click on the image above for more info.
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The FMI U.S. Grocery Store Shopper Trends 2005 is available. Click on the image above for more info.



December 12, 2005


There's probably no part of the national debate on obesity that raises more concern than the health of America's children.

FMI's new Shopping for Health report, done in conjunction with the publisher of Prevention Magazine, lays out these concerns and the opportunities for retailers very clearly.

All discussion of weight loss begins with the need to balance calorie intake versus calories burned. On this very point, the concern is clearly demonstrated. Nearly 45% of parents feel they have a problem getting their children to eat a healthy diet, and 28% say they don't think their children are getting enough exercise.

Some may be surprised by the exact opposite - that 72% feel their children are getting enough exercise. However, it's clear that this is one case where parents are literally walking the walk. Some 75% of shoppers say they or their spouses exercise with their children. And the percentage exercising with their children rises above 80% for Hispanic parents and parents under the age of 41.

Parents try to influence how their kids are eating by focusing on nutritious products: 67% say they almost always buy nutrition items and another 27% do so regularly. Clearly a major focus on these purchases is on produce as nearly two-thirds of parents say their children are getting five servings of fruits and vegetables every day.

One of the interesting areas of attention is what happens at school during lunchtime, when parents obviously aren't around.

Children from lower income and minority households are much more likely to buy cafeteria meals, possibly due to higher use of lunch subsidy programs. Parents are generally happy with the nutritional quality of cafeteria meals, as nearly 90% say they feel at least somewhat satisfied on that score. However, the percentage saying they are very satisfied with the nutritional quality of cafeteria lunches is only 28%, far below the 65% giving the same very satisfied rating to lunches made at home.

The opportunity for supermarkets to capitalize on these trends and provide help to busy parents runs in a number of directions. Shopping for Health offers some simple suggestions.

1. Use shelf signs or color codes to draw shoppers to nutritious products for children.
2. Build off-shelf displays to highlight products that appeal to parents' needs for nutritional foods that are also easy to prepare.
3. Develop promotions that show the ease of preparing school lunches at home to build on the wide satisfaction shoppers have with those specific meals.

Shopping for Health features a wide array of findings and suggestions on how retailers can better understand shopper concerns and actions about healthy eating, and each chapter features simple merchandising strategies to provide easy methods to find and buy nutritional products. Shopping for Health soon can be found at the FMI Store at www.fmi.org/store/.

 

Imagine getting ready for your day and checking the weather forecast. Because of a computer glitch, the only information available is estimated wind speed and humidity level. Without knowing the temperature or forecast for precipitation it would be pretty difficult to know how to prepare.

Basing decisions on partial information is difficult if not downright dangerous. That's why we at ACNielsen are so pleased to announce the on time completion of our Homescan(R) consumer panel expansion. Two years in development, the ACNielsen Homescan consumer panel, the consumer packaged goods industry's leading source of consumer and shopper insights, now includes an unrivaled 125,000 households and is delivering vastly more comprehensive and detailed information about American consumers than ever before.

As a result of the MegaPanel expansion, existing Homescan services have been significantly enhanced, numerous new, innovative client solutions have been launched, and more are planned for in 2006 - all designed to provide marketers (both manufacturers and retailers) with unprecedented new insights into consumer and shopper behavior.

To give you an example of how important the expanded panel is, consider the Face Care category. Through the combined food/drug/mass merchandise channel, the category generates nearly $2 billion in sales - a sizeable and important category to be sure. However, those three channels account for just 42% of category sales. As part of our MegaPanel initiative, a new Beauty/Personal Care service will be launched in 2006, providing the industry's most comprehensive measurement of beauty/personal care categories and enabling marketers to identify Beauty/Personal Care consumer segments based on where consumers shop and what they buy. It's one of many new consumer and shopper insights services that are being made possible by the expansion of the Homescan consumer panel.

The panel expansion, along with major investments in Homescan's data collection processes and output infrastructure, is enabling ACNielsen to introduce a host of new solutions to address the most important issues facing today's CPG manufacturers and retailers, including: Category Management and Retail Shopper Insights, New Product Development, Expanded Marketing ROI Measurement, and Ethnic Marketing.

In addition, several specialty panels will be available in early 2006, delivering insights into the unique attitudes, shopping and purchasing behavior of important consumer segments including households with babies, teens, baby boomers and seniors.

There's never been a greater need to understand the nuances of consumer behavior, with marketers trying to serve ever more narrowly defined consumer segments while at the same time trying to identify the factors that drive behavior among these various segments of population. We are extremely pleased to be able to address those needs with our expanded Homescan consumer panel.


Chips off the old block? Anything but!
Potato chips crunch 56% of sales of the $5 billion Total Chips category across the combined food/drug/mass merchandise (excluding Wal-Mart) channel, as they have for the past five years, according to data from ACNielsen Strategic Planner. The top lines of both the overall category and the potato chips segment sway in tandem with small percentage ticks over this entire period. This stable proportion, however, belies vast variety changes that roil planogrammers and excite consumers.

Barbecue and sour cream and onion were once flavor-forward for American palates. Today's potato chip choices include dustings of rosemary, sweet potato as a core ingredient, or nutritional enhancements such as soy, flaxseed, garlic or olive oil, to name a few. There are also lite, baked, fat-free, reduced-calorie and low- or no-salt offerings to tweak more health-conscious consumers who find chips hard to resist.

But such efforts haven't moved the total potato chip category top line much -- a mere 0.7% growth in equivalized unit volume in the 52 weeks ended Sept. 11, 2004 in food-drug-mass (excluding Wal-Mart), according to ACNielsen LabelTrends data. Yet EUV slipped by 0.1% in the more recent 52 weeks ended Sept. 10, 2005, as potato chip dollar sales rose a full 3.0% to almost $2.8 billion.

The dollar rise/EUV slip could be attributable to higher prices on the more exotic varieties, as well as a nominal decrease in ounces per bag. Call it the consumer premium for showy or more healthful chips. For example, organic potato chips currently sell for $3.99 per pound, and reduced-calorie potato chips are $6.41 per pound, compared with an average $3.17 price per pound for total potato chips, the ACNielsen LabelTrends data indicate.

Newer varieties definitely have some sales opportunities:

Low-salt potato chips posted a 19% dollar sales gain to $21.3 million on a 16% rise in equivalized unit volume in the latest 52 weeks, following increases of more than 4% the year earlier.

Reduced-calorie potato chips showed a dramatic 29% dollar sales gain to $98.1 million on a 30% climb in equivalized unit volume, also in the latest period.

Meanwhile, dollar sales of fat-free potato chips powered ahead by 60%, 31%, 9% and 425% in the last four years to $310.8 million, on equivalized unit volume gains of 32%, 19%, 6% and 506% over the same period.

Organic potato chips also rose for four straight years. Sales of the upscale-packed treats rose by 34%, 12%, 14% and 5% to $3.6 million, on gains in equivalized units of 37%, 11%, 13% and 2% over this period.

Soy potato chips, though a minuscule contributor at just over $1 million in sales, has soared 880% in the latest 52 weeks, following an ascent greater than 18,000% the year before, on parallel gains in equivalized volume.


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The potato chip category is one instance where Private Label, although exhibiting a huge price advantage - $3.26 per pound for Branded versus $2.14 per pound for Private Label - is not succeeding. Three straight years of declines in Private Label potato chips averaged about 5%, until edging up 0.3% in equivalized unit volume in the most recent 12 months.

Holiday Season Marks the 2nd Anniversary of U.S. Mad Cow Discovery
On April 15, 1996 Howard Lyman, an ex-cattle rancher turned vegetarian shocked Oprah and the nation when, for the first time on television, he revealed that cattle slaughterhouse waste was being fed to cattle and that if the practice continued mad cow disease would develop in the United States. Mad cow, officially, Bovine spongiform encephalopathy (BSE), is known to be transmitted through consumption of contaminated feed; feed that is contaminated with protein from an infected animal, and that the incubation period in cattle is four to five years.

Oprah's now famous words, "it has just stopped me cold from eating another burger", not only created a huge (but temporary) decline in beef sales but also placed her at the defendant's table in the first lawsuit under the Texas Food Disparagement Act; which was finally over when on August 27, 2002 the court dismissed the suit "with prejudice".

So, after all the lawsuits and years of accusations about loss of revenue by the National Cattlemen's Beef Association, the true test came on December 23, 2003 with the first discovery of mad cow disease in the United States; and then again on June 24, 2005 with the second case discovered.

While Oprah's show did make "mad cow" part of our everyday vernacular and food safety concerns, overall supermarket beef sales have barely been affected. With one significant long-term adjustment - more shoppers are now buying organic beef.

According to ACNielsen LabelTrends data, beef sales have been increasing significantly since 2001. Equivalized volume for Total Fresh Beef & Angus Beef for the 52 week period ending 08/18/01 (Food, Drug & Mass - excluding Wal-Mart) measured 63,661,699 - by 2005 that volume more than doubled to 138,648, 502.

Dollar sales for the combined total of Fresh and Frozen Beef increased over 200 percent over the five-year period, from $481 million to $990 million. In the subcategory of Fresh Beef & Angus Beef, sales grew from $262 million to $632 million over the same time.












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Curiously, in the 40-day period following the initial discovery, Total UPC Coded Beef & Angus Beef Equivalized Volume actually increased by five percent. Farmers and Retailers, no doubt nervous about the potential impact of the headlines clearly were proactive and discounted the category - prompting a sales volume increase of two percent.

In the Organic Beef subcategory, where certification actually prohibits the use of animal protein being fed to other animals, Sales Dollars were down ten percent and Equivalized Volume down 12%. Organic consumers are typically more in tune with health and food news, and we can only surmise that when the report of mad cow surfaced, the impact on these shoppers' buying behaviors was greater than the general population, and for this period these shoppers avoided buying beef.

The second case of mad cow, announced on June 24, 2005 had a much different reaction from shoppers. For the Total Fresh & Frozen Beef Category, Dollar Sales declined by 2.2%, and Equivalized Volume was down by one percent in the first four weeks, but as the headlines continued Dollar Sales further declined by a little more than 15% and Equivalized Volume dropped over 20%.

The Organic Beef category however showed a minor volume increase of less than a half of one percent for the first four weeks, but then, presumably as shoppers needed to replenish their beef supply at home, Equivalized Volume almost doubled.

American shoppers, as we've seen before, can be fickle and forgiving - especially when it comes to health, diet or food safety issues. In the subsequent four weeks dollar sales and volume began to stabilize.












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To add perspective, Organic Beef represents just 0.3% of the Total Fresh and Frozen Beef Category, however, sales would indicate that consumer sentiment moved from believing that the first case of mad cow was an isolated instance, and with the second discovery took action believing that there may well be a greater threat. In addition, it's important to note that during this period, more certified organic beef products gained retail distribution and that in both instances there was a spike in the sales of Frozen Beef for both conventional and organic products.

Gas Prices Continue Fueling Changes in Consumer Behavior
This past September we released study results to show how consumers were responding to rising gas prices. In June and July, when regular gas prices jumped to $2.12 and $2.24 a gallon respectively, retailers and manufacturers were very concerned with how consumers would change their shopping and spending habits to offset those increases. We surveyed ACNielsen Homescan panelists to identify the number of miles that households drive each week and then asked a series of questions to understand how higher gas prices were impacting driving or shopping/spending habits. We thought that rising gas prices were likely to continue through the end of the year and beyond. At that time we learned that natural gas prices were likely to jump as much as 70% during the upcoming home-heating season. As such, we laid out plans to update our survey to cover the months of October and November and included a question to identify the source of panelists' home heating.

The findings from the October wave of our survey were similar to previous results, but as the price of regular gas jumped to $2.48 a gallon, results were more dramatic and the impact was broader. As noted below, about 70% of households told us that they were combining errands and trips to deal with rising gas prices - up 7 percentage points from the June/July survey. A third or more of households told us that they were eating out less and doing more things at home. They were also looking for ways to save on fuel by shifting to lower priced gas and seeking value in other spending. Also, note that 42% of households stated that they were either reducing spending to a small or great degree - up 6 percentage points from the June/July survey.


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When we tabulated the June/July survey results against household affluence groups and miles driven each week, we found that:

  • Except for those driving very little, less affluent households were more likely to combine trips no matter how far they drive each week
  • For the more affluent, households who drive farther distances were more likely to indicate that they were combining trips, but affluent households were less impacted overall

    The October survey showed that except for the most affluent households, the driving distance differential disappeared as households were looking to combine trips no matter how far they drive each week. Rising prices were also causing:

  • all groups to eat out less, but affluent households were less impacted and there was a greater impact on those who drive more each week
  • all groups to do more at home, particularly those driving the most; again, affluent households were less impacted
  • except for a small percentage of affluent households, all groups were looking to switch to less expensive brands

    When we examined changes in all-outlet shopping behavior during the first wave of our study, we found that most households had reduced their overall shopping frequency during the quarter ending August 6th, but the decline was most apparent among poor households. Poor households were offsetting less frequent shopping by spending more per trip, but not at a level that would offset their decline in shopping frequency. These patterns held true for the quarter ending October 29th and shopping frequency declines were greatest among lower income households. With the higher gas prices we found some poor households also cutting back on per trip spending.












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    With gas prices falling sharply in the months of November and December and news that prices could soon hit $2.00 or below, you could say that the U.S. economy has shown its resilience once again and better times are ahead. The economy didn't suffer as much as expected as the more affluent households (those who drive the most each week) were able to afford the extra travel costs. And, while more affluent households are also more reliant on natural gas for home heating, consumers across all income classes will likely be impacted as natural gas price increases are expected to cost the average household between $800 and $1,000 more this heating season.












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    The concern surrounding the impact of increased home heating on U.S. consumers is very real and we see a few themes resonating from our findings that will continue to impact CPG manufacturers and retailers. They are:

    1. Value pricing is more important than ever (what has made Costco, Dollar Stores and Wal-Mart so successful will continue to be a driving force)
    2. Trip capture is of paramount importance (retailers need to work harder than ever to get consumers to shop their stores and to capture the kinds of trips that they strive to capture)
    3. Opportunities exist to take advantage of increased at-home meals and at-home entertaining
    4. More manufacturers and retailers will find a way to leverage this issue in their advertising and promotional efforts

    For further information or to arrange a comprehensive presentation on consumer shopping patterns, please contact Todd Hale at thale@acnielsen.com or 859-905-4615.

  • How Will the Supermarket Change in 2006?
    For the past three years, SupermarketGuru.com has conducted an annual consumer panel to find out how shoppers' behavior and needs have changed, or not!

    Shopping with a list:
    In 2003, the SG panel showed that 46% of respondents said they shop with a list "all the time." But, in 2005, that percentage has dropped to 42%. In addition, a wake up alarm to CPG brands should be that less shoppers are actually listing a specific brand on their shopping list. In 2003, 14% said they "write down the brand of the product," in 2004 that increased slightly to 15%, but then declined in 2005 to 11%, reinforcing other surveys and reports that have seen the shift away from specific branding and towards a more holistic purchasing behavior that is store centric vs. brand centric.

    SupermarketGuru.com consumer panelists were asked to select ALL the factors that they keep in mind as they walk down the aisle and select purchases: the most frequent answer was "price." However, the trend indicates that price is not as important as it used to be, dropping from 90% in 2003 to 87% in 2005. In addition, "products that are on sale" dropped from 85% in 2003 to 81% in 2005.

    Which factors that influence shoppers' purchasing behavior are on the rise?

    The most dramatic changes were seen when panelists were asked to select the ONE MOST IMPORTANT factor in their purchase behavior. "Nutrition" exhibited the most dramatic increase going from 20% in 2003 to 29% in 2005. And, "price" showed the most dramatic decline going from 31% in 2003 to 23% in 2005. Shoppers have clearly switched priorities.

    Eating habits:
    So what does "nutrition" mean for shoppers in 2005? It doesn't seem to mean that shoppers are scanning the aisles for the words "low fat," "low carb," "fat free," or "high protein." "Nutrition" in 2006 will mean something a little different.

    When panelists were asked "what they would like to change about their eating habits in 2006," 55% in 2005 said "cook more meals from scratch at home" increasing from 51% in 2003. Thirty-four percent in 2005 said they would like to "eat more organic foods" and 23% said they would like to "eat more ethnic cuisines" both increasing from the two previous years (51%, 19% respectively).

    When panelists were asked "what types of cuisines they eat on a regular basis" the findings above were supported by increases from 2003 to 2005 in the popularity of the following cuisines: Brazilian, Chinese, Indian, Italian, Japanese, Mexican, Mideastern, Tex-Mex, and Thai. In addition, the results show an increase in popularity of organics, raw foods, and vegetarian foods. In comparison to 2003, the 2005 results show a declining interest in fat free, high protein, and low carb products.


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    Finally, panelists were asked "what is the ONE most important factor that determines which food product you would purchase as the main ingredient for dinner." The number one answer in 2005 was "nutritional value" (an increase from 28% in 2003 to 32% in 2005) and the number two answer was "type of cuisine." In 2003, the number one answer was "price," which has taken on a less important role in 2005.

    Aging Baby Boomers Need Love... and Lubricants
    It seems that in order to meet the needs of the 76 million Boomers, supermarkets are taking a new tack: Increased displays of personal lubricants and moisturizers within easily accessible family planning sections that women shop heavily. And the result is an increase in sales in one of those categories that typically is unmentionable. With this merchandising approach, the category has expanded beyond the younger sexually active consumers to include older women; who now find themselves experiencing problems associated with post-menopause and want day-to-day comfort as well as the pleasure that some of these products are designed to enhance.

    This dual appeal is significant. Women between the ages of 45 and 64 in the United States will grow from 31.8 million in the year 2000 to a projected 41.5 million by 2010, according to Census Bureau data. That is a fast-growing market not only for sexual enhancement products but also for a wide range of health and beauty categories. Their purchasing power will be felt in such diverse health areas as arthritis, osteopenia and osteoporosis treatments, sinusitis remedies and incontinence products, as well as skin care and cosmetics, and will likely change the way these products are advertised and merchandised at store level.

    Notwithstanding the newest segment of warming lotions - which companies market as soothing massage oils for more widespread acceptance and for which data is still unavailable - lubricants and moisturizers are enjoying healthy sales.


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    While data doesn't break out the warming lotions specifically, ACNielsen figures do show a dramatic 78% jump in new category items during the 2004 period, following a 13% increase in the 2003 period. While the new-product activity has settled down a bit in 2005, edging down by just three percent, new products still comprise a significant share of category SKUs. Of 148 items currently active in the category, 31 or 21% were introduced in 2005. In the prior year, 32 new items made up 25% of a 127-SKU category.

    Category growth seems so highly dependent on product innovation for growth that it may be susceptible to flattening once the new-product stream abates. Thus, there is reason for more mainstream marketing messages to expand the user base. Once available, consumer-acceptance rates will be enlightening, since it wasn't too long ago when items in this category were displayed primarily within view of pharmacists and not as openly as they are now.

    Brand Packaging Can Be Even More Effective in Reaching Shoppers' Emotions
    Product packaging is the most important point-of-sale merchandising tool. The average package on the supermarket shelf has only about one-seventeenth of a second to attract our attention. After that, the design, color, words, and ... oh yes ... the product itself have to interest us enough to put it in our cart and take it home. But with thousands of food products on the shelves, products need to get noticed, or else become another fallen casualty in the fickle supermarket arena.

    That's why companies are wising up and spending time and expense to update their package designs, knowing that appealing to the consumer's emotions is almost as important as appealing to the consumer's palate in getting him or her to buy the item. How many times have you bought or almost bought a product simply because you liked the packaging? Some people would pay five times more to have oatmeal in a vintage-looking tin instead of a simple paper container. Some people will only buy milk in the clear plastic jugs instead of the opaque paper containers, even though the paper reduces the damage of nutrients from light. Packaging doesn't just focus on functional aspects such as versatility and food safety anymore; a great deal of the emphasis is directed purely to aesthetics.

    But revamping new products can be risky. If a product looks too different from before, companies may alienate loyal customers. For example, when Nestle decided to change the package of their KitKat candy from foil wrap to a plastic package, emotionally attached consumers protested the change, even though the new package would keep the product fresh three times longer. When companies update their packaging, sometimes they'll add a label that promises, "New Package, Same Great Taste!" in order to ease consumer anxiety. Packaging alone conveys dozens of messages, including how a product will taste and its quality. A package gives a brand personality, and that personality will either attract or deter the personalities of the consumers. As individual as we all are, companies are realizing how complicated it is to appeal to a variety of consumers, and they're putting a lot of effort into designing the best package that will resonate with as many of us as possible.

    Color is one of the main tools that package designers use to influence our buying decisions. Our reactions to colors are emotional rather than intellectual. According to Herb Meyers, CEO of Gerstman + Meyers, New York, one of the nation's leading package design firms, "considering that about 80% of consumer choices are made in store and 60% of those are impulse purchases, package colors can play a major role in the success or failure of a product."

    On your next shopping trip, see if you react the way most shoppers do to packages that use these colors:

    Red packaging (or brand names that are bold and large) makes our hearts beat faster and increases our adrenaline flow. The color communicates power and vitality and stimulates a desire to conquer. Red also conveys a sense of structure, sensibility, practicality, and dependability.

    Yellow is the most visible of all colors (which is why it is used on road signs) and makes packages look larger. According to a study by Cheskin & Masten, a research firm in Palo Alto, California, it's also the color most associated with food products. When we see yellow, we think of the sun, warmth, happiness and often "newness." Yellow is also used to convey a cut-rate price image, and, if not used properly, can detract from the perceived quality of the product.

    Blue implies cleanliness and purity and induces thoughts of sky and water. Often it conveys feelings of serenity, prestige, confidence, knowledge, and credibility (remember that the next time you have an important meeting - wear blue.)

    Twenty years ago, the unwritten rule about food packaging was "never use green!" The thinking was that it implied food was spoiled. Today, green is used more than most other colors and represents natural and healthy. People see green and think of trees and fresh meadows. In the early 1970s, packagers of "healthy" products used beige to imply natural but soon found that it washed out on the shelved. Beige was soon replaced with deep greens.

    White makes us feel fresh and light and is often used on lower-fat and diet foods. It is associated with dairy products (milk) and hence implies the ultimate in freshness and purity. Interestingly, in Germany, white suggests premium quality, but in England, white suggests budget quality.

    Black is always elegant and sophisticated, and manufacturers use this color to imply a sense of class and quality for their products. While it might seem that product packages using certain colors are trying to trick you into buying, don't worry. While a great package design can draw your attention, the product will have to stand on its own. But knowing these insider "marketing tips" can help you choose a product for the right reasons - your own.

    Healthier Potatoes on the Horizon?
    It all started when the egg producers took a look at their declining sales and decided that it was time to "reengineer" their product. Eggs that are organic, cage-free, hormone-free and even ones where vitamins like Omega-3s and dietary supplements have been added, started to line the supermarket egg cases. Then we started to see the next evolution, clear plastic containers (so we didn't have to waste those precious seconds to open up the package to inspect for broken eggs) and even company logos stamped on individual eggs!

    What do eggs have to do with potatoes? Well, following the success of the "new" egg, potatoes are likely to be the next commodity positioned to create a premium, value-added tier. Think "virtually dirtless" potatoes, which started being shipped to supermarkets in September. Pro-Health brand is attempting to market a new healthier potato through a triple-scrubbing process from their 11,000 acre property in Nebraska where their potato crop is grown and harvested; which coincidentally is an area that's new to potatoes, and yields a product with a higher amount of micronutrients.

    Signs point to the need for new life in the potato category. According to ACNielsen data, dollar volume in the fresh potato category grew just 2.9 percent in the 52-week period ending October 8, 2005 in U.S. supermarkets, and that growth came about only via price increases Over the same period, unit volume (5-pound bags) decreased by 1.3 percent. Perhaps consumers will be willing to pay more for potatoes perceived as "healthier" - such as organic potatoes, potatoes grown with less insecticide, and blue potatoes (which offer a higher content of anti-oxidants).












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    Bottom line is that we may see a shift away from commodity type packaging (and pricing) for many of our staples as technologies and health benefits change these products to meet our real (or perceived) needs. Look for the five pound bags of potatoes to be replaced with better looking, better tasting healthier potatoes ... which of course means having this staple turn into our next ad medium. Individual logos and motivational sayings etched on each will surely follow.

    Grocers Discover New Market: Gluten-Sensitive Consumers
    Celiac disease is a gastrointestinal problem caused by intolerance to a grain protein found in wheat, rye, and barley called gluten. For those suffering the affliction, gluten consumption damages the wall of the small intestine, which impedes the absorption of nutrients into the blood system. In children, typical symptoms of celiac disease include gastrointestinal problems, tooth discoloration and developmental setbacks. In adults, the syndrome may manifest itself as a precursor to other severe maladies, including anemia, osteoporosis, thyroid disease, infertility, Type 1 diabetes and certain cancers.

    Formerly looked upon as an afterthought in the overall scheme of health issues, today celiac disease (or gluten intolerance) has gone mainstream, affecting an estimated 1 in 133 (or 2.18 million) Americans. What makes the disorder so difficult to deal with is that there is no known cure; the only treatment currently available is complete and total abstinence from products containing gluten. This is a difficult task, as there are many hidden sources of gluten existing in the ingredients of many processed foods.

    Because of the sheer size of the gluten-sensitive audience, manufacturers and retailers have become aware of their needs and have begun to offer products addressing the problem. According to ACNielsen LabelTrends data, nearly $400 million was generated at retail (mass, club, grocery, excluding Wal-Mart) by products bannered as "gluten-free" for the 52-week period ending October 8, 2005. That represented a 6.2 percent increase in retail dollars, which followed a 16.9 percent increase the previous year. Furthermore, 325 new "gluten-free" products were introduced over the past year, raising the total number of UPCs to 1,220.


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    In response to the growing market, many grocers have gone beyond simply carrying gluten-free products and are introducing shelves and entire sections of gluten-free items. Take Hannaford Bros., for instance. The Portland, Maine-based grocery chain with 140 stores serving northern New England, upstate New York, Virginia and the Carolinas, has recently added gluten-free sections to its format.

    Wegmans Food Market is another grocery chain that has taken the proactive approach to marketing gluten-free food products. In fact, the Rochester, N.Y.-based chain was substantially ahead of the curve. In 1985, Wegmans created "Gluten Sensitivity, Making a Special Diet Easier to Swallow," a booklet for their shoppers. Today, it includes a complete list of branded products it carries on the company's web site. In addition, in the late '90s, Wegmans launched a "Wellness Key" initiative in which all gluten-free store-brand products were labeled with a "G" for easy identification.


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    'Tis the season of gift giving and a popular gift item for the men on people's lists is cologne. ACNielsen estimates that in 2004, over $657 million was spent across all retail channels in the men's toiletries category which includes men's after shave, men's cologne/lotion, men's gift sets & travel kits, and pre-shave. More than 40% of these sales occur during the fourth quarter.

    The following slides indicate the percentage of households who buy each type of men's toiletries, a sampling of higher indexing household types who buy products in the overall men's toiletries category, and channel share of category dollar sales.



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