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March 2009
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Recession Felt Hard in the Meat Department
The fourth edition of the Power of Meat, a joint study by the American Meat Institute and the Food Marketing Institute, finds that the recession is being felt throughout the grocery store, and especially in the meat department. Economic woes are affecting where people shop for groceries, their channel choice for meat as well as the kind, cut, brand and quantity purchased. While value has always been very important in the meat department, cash-strapped shoppers are now more focused on price than ever before. read more
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Watch What You Wish For!
Certainly there is a lot of discussion these days about retailers looking for manufacturers to roll-back prices now that we've seen many commodity prices drop. The most vocal retailers are looking to pass those savings on to their shoppers as recessionary pressures mount. So I thought it would be worthwhile for our F3 readers to see how prices have changed in January 2009 versus year ago.
Before examining price increases, let's take a look at trends in total store and major department dollar sales for the 52-week period ending 1/24/09 versus the last 13-week period and last 4-week period over that time frame. read more
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Private label courtship heats up
Consumers always seem to flirt more with private label in tough times. They were once little more than short-term flings because retailers didn't hold up their end with quality products. Economies improved and people rushed back to their preferred brands.
Yet chains improved markedly in the 1990s and 2000s, to the point where PL's unit market share climbed from 20.0% to 21.8% in the 2001-2003 recession, after a similar pickup from 17.6% to 20.0% in the 1990-1991 recession. read more
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SupermarketGuru Survey: Store Brands and Coupons
The turbulent downturn the nation's economy took in 2008, has inevitably created a shift in the way Americans approach spending money. And more and more data is building to support the fact that people have "saving money" on their minds.
A report from the market research firm comScore looked at words used in the Google search engine, and found that when it comes to cost-cutting, "coupons" was the most popular term used in internet searches, more than doubling to 19.9 million queries in December, compared with 7.6 million last year. read more
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Cold shoulders for bottled waters
Talk about coming full circle. Long after New Yorkers became hooked on bottled water rather than the free water that flowed from their kitchen sinks, an entrepreneur has launched a brand of bottled tap water from the New York City system. True, the city's water won a taste test last summer against 150 other municipalities, said the city's Department of Environmental Protection, but what does this new brand-entry say about consumers' complex relationship with water, its sources, and the effect of packaging on the environment?
If anything, the launch may become a local success even though the big wave of consumer sentiment appears to be turning away from the category. read more
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TLRTV: Extreme value stores, and 7-Eleven sustainable practices
TLRTV is a 5-minute videocast designed specifically for the B2B Food World with a focus on Marketing Analysis, Issues & Trends. This week's report:
While it sure feels good to shop the aisles of an upscale Wegman's, Whole Foods or Gelson's supermarket, these days their luscious presentations are more a reminder of happier economic times, when people spent more freely on better cuts of meat, exotic produce and other gourmet foods. read more
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In batteries, rechargeables show more life
Since the recession hurt sales of so many battery-driven categories this past year, and since people have cut expenses wherever they could, unit and dollar sales of most sizes of disposable batteries have fallen. Consumers haven't stopped using their digital cameras and music players—that would be an awful sign for America—but they're beginning to power them differently. The dollar sales of rechargeable batteries of almost every kind rose, often at double-digit rates. read more
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Drought in Argentina Means Higher Soy Prices
When your customers next visit the supermarket, they may be greeted by higher food prices in certain aisles. Drought since late spring (Southern Hemisphere seasons are reversed) has plagued crops across Argentina's Grain Belt. Corn and soybeans have been severely damaged by hot temperatures and the lack of rain.
In the period from November 1st through January 24th, most of the region received just 4 to 7 inches of rain. read more
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Baseball foods, robins and crocuses herald spring
Families used to get their fill of baseball fare at major league ballparks, complete with the smells and spills that came with attending live sports events. Close your eyes and recall the tastes of simple foods—the likes of hot dogs, soda, ice cream, peanuts, large salted pretzels and beer (for the grownups)—eaten in the most exciting environment of all where athletes seem bigger than life. read more
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Shoppers seek food treasures in lower-priced stores
It sure feels good to shop the aisles of an upscale Whole Foods or Fairway supermarket. Their luscious presentations are reminders of happier economic times, not long ago, when people spent more freely on better cuts of meat, exotic produce and other foods that can turn meals at home into pleasing events.
Shoppers don't have to give up those good vibrations, however. With some resourcefulness, maybe a little extra gas in the tank, and the good fortune to be located not too far from a dollar store like Dollar Tree or Family Dollar, or an extreme value operator like Grocery Outlet, Aldi or Supervalu's Save-A-Lot, they can fill household dining tables to the brim with unexpected delights. read more
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Under-35 females spend in expected and surprising ways
Young mothers and female singles are the honey pot for retailers. They shop intently for family foods and beverages, and GM/HBC/Rx and personal care products that support their wellness, appearance and active lifestyles. Some are selfless nurturers who buy with others in mind, while others are self-absorbed climbers, or somewhere in-between.
Retailers relish the many life dimensions these women bring to the store. read more
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Nutrition's Influence on Shoppers
The majority (66%) of shoppers are satisfied with the nutritional and health information provided by their primary foods stores, according to research conducted by the N.G.A. and SupermarketGuru, and underwritten by ConAgra Foods. The 2009 Consumer Panel Survey detailed the purchase influences, eating habits and nutritional concerns of 2,145 consumers between November 2008 and January 2009.
When rating the importance of supermarket features, three in ten consumers (31%) say the availability of nutrition and health information is 'very important'; another four in ten (41%) say it is 'somewhat important.' Main consumer concerns surrounding the healthfulness of the foods they eat include 'fat content' (14%), 'chemical additives' (11%), 'salt/sodium content' (9%), 'sugar content' (7%) and 'calories' (7%). read more
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Stores take healthful eating trend to the bank
Wallets pummeled in this recession, people continue to hold firmly onto their health. All the better to rebound with high energy, determination and a strong, sound body. The extent to which people continue to buy healthful foods while they try to save signals that people who slide into junk food do it because they don't know well enough, or aren't disciplined enough, not because they can't afford the good stuff. read more
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Higher Food Prices: Part Deux
Get ready for the next series of food price increases. While the trend seems to be retailers making headlines by demanding that CPG companies lower prices and margins - the reality is that a new report from the USDA forecasts that commodity prices this year will remain at above the historical levels. And that means that while retailers may want to appear to be the "good guys" very little in price reductions may actually be able to be realized. read more
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Facts, Figures, & the Future Newsletter
Click here for your FREE subscription to Facts, Figures, & the Future.
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The LOHAS Report: Consumers & Sustainability
NMI's 7th Edition of The LOHAS Report: Consumers & Sustainability report series, due to be published in January 2009, will contain seven years of trended consumer insight and data focused on the role of sustainability, health, social issues, the environment and corporate social responsibility.
NMI will offer three reports on the U.S. read more
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Food, Nutrition & Science
We've just launched a brand new monthly newsletter: Food, Nutrition, & Science from The Lempert Report.
Our mission is to provide retailers and brands with the latest food news and the tools needed to better serve and empower our shoppers to make the best food choices possible. Each issue will contain interviews with leading researchers, nutritionists and trend setters. read more
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The Power of Meat 2008
An in-depth look at meat consumption, selection, marketing and purchasing patterns through the shopper's eyes. To obtain your copy of The Power of Meat 2008 or other FMI research and education materials, please visit www.fmi.org/store/
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