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May 2009
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The Recession's Tremors Are Felt Widely
The recession is making its impact felt throughout the grocery channel. Shoppers of all regions, ages and incomes are adapting their spending and gastronomic choices. The dire economic conditions are influencing shoppers' decisions over dining out, cooking frequency, store selection, brand preference, reaction to marketing and sales promotions, willingness to try new products, nutrition and the list goes on. read more
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Great Marketing in Bad Times
For the past six months or so, we have been reporting exceptional unit and dollar sales growth from the canning & freezing supplies category. In fact, this category has been the lead category in driving unit sales growth across all mega-categories with sales of $100 million or more tracked by The Nielsen Company. For the latest 52-weeks, unit sales are up 14%, twice the level of growth for wine, the next fastest growing mega-category. read more
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Capture the dollar foods 'sweet spot'
The publication of several books pushing the idea of dollar-store foods to feed the family has helped raise awareness of this channel as a low-price purveyor. Low prices look compelling to struggling households in this recession. Chief shoppers have set pride aside, travel further with the intent to save more, and have begun to trust in the integrity of this channel's distribution pipeline.
Not surprisingly, traffic is up, parking lots are crammed, and operators like Family Dollar are devoting more display space to food. read more
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Candy, today's low-cost escape, finally hits the wall
For a sweet moment at a time, candy pulls us back to childhood daysa time when a whole generation of kids felt cared for and secure. No wonder people want to retreat from today's stern economy.
Unlike food and beverage essentials that fuel our bodiesyet are redlining or are barely in the blackcandy is the ticket to brief escape. It soothes our stresses, and serves as the centerpiece of our emotional eating. read more
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Moms not making reservations for dinner
Please, no more dated jokes about moms making reservations for dinner.
These days, there's little basis of truth in that punch line.
Fierce protectors of their household budgets in the recession, plenty of moms are seeing to it that dinner is prepared at home. Women may not be the cooks, especially if they're the breadwinners. But their laid-off or retired husbands might be dusting off culinary skills from bachelorhood, and having some fun with the domestic role. read more
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Fresh beef sales sizzle
It's nice to be wanted, but our country's cows can't be pleased by this news:
Fresh beef - excluding Angus -- dollar sales are sizzlingup 8.4% to $1.78 billion in the 52 weeks ended March 21, 2009 in U.S. food, drug and mass merchandiser stores (including Walmart), on a 2.9% rise in equivalized unit volume to 367.2 million pounds, Nielsen data show.
This followed a 7.4% dollar sales climb to $1.64 billion in the prior 52 weeks, also achieved on a 2.9% EUV increase. read more
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Boomers & the Economy, More peanut problems, this time its the environment, and ZizZazz energy drink
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: With the likes of Mick Jagger, Paul McCartney, Rod Stewart and Tina Turner still filling arenas, is it any wonder that brand marketers are finally getting the message: 60 is the new 40. Baby boomers have no problem believing this concept; we are often the first to dance at our concert seats. read more
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Fewer 'soft touches' in toilet tissue sales
Consumer savings strategies in this recession have officially gone to great lengths. The latest quarter's slowdown in toilet tissue salesperhaps the ultimate household essentialwas attributed by one major manufacturer to U.S. households working down their inventory and buying smaller size packs with their available cash.
This conservation has dimmed the outlook for category sales in 2009, as retailers lessen their display space accordingly. read more
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Earth Day, 365 Days a Year
Last month marked the 39th anniversary of the first Earth Day, celebrated annually on April 22nd. More than 20 million people across the U.S. are estimated to have participated in that first Earth Day back in 1970. More than a billion people, in 180 nations around the globe, celebrate the holiday today.
Pioneered by Senator Gaylord Nelson in 1962, 2009's Earth Day kicked off the beginning of The Green Generation Campaign. read more
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Deodorants go 'clinical,' dollar sales rise
Perhaps deodorant's usual home on the shelf near over-the-counter remedies inspired its 'clinical' approach to marketing deodorants. Deodorant makers have seen stepped-up product formulas pump up performance in other personal care categories, and figured they could apply the same tactic.
In the case of one major brand, a 25% greater concentration of the active ingredient aluminum zirconium trichlorohydrex resulted in a near tripling of the average retail price. read more
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The Volcanic Effect on Crops
Since March 15th, Alaskan volcano Mount Redoubt, located 110 miles southwest of Anchorage, has been spewing ash into the Earth's atmosphere. March 22nd marked one of the biggest explosions with an ash cloud reaching 65,000 feet above sea level. While it is too early to tell what this means for Alaskan fishing industries, experts predict that crops in the Midwest - some 3,000 miles away - may suffer from adverse growing conditions, if Redoubt's explosions continue and intensify. read more
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In cosmetics, foundation and the eyes have it
What does a double-digit percentage drop in the dollar sales of lipstick signify in this recession?
It could underlie any number of trends: That women might prefer a more natural, healthy look today. They're cutting back on extraneous spending. Some can't get 'lipstick on a pig' references out of their head since the past Presidential election. Or the Lipstick Index minted by the Estee Lauder CEO after the terrorist attacks of 2001when lipstick sales rose 11% and he credited it to women buying such items to make themselves feel better in difficult timesis shown to be meaningless. read more
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FOOD MARKETING CONFERENCE PANEL: It's all about value!
In the 44th annual Western Michigan Food Marketing Conference, executive forum, the topic of discussion was leading and winning in the new economy. I had the great opportunity of moderating a panel of five key retailers exchanged insights in a discussion on consumers in the wake of turmoil and the challenges and opportunities the food industry is facing.
It's all about value! In an NGA/SupermarketGuru consumer panel, 2,000 shoppers were surveyed and asked what's most important to them when they shop, and the 2009 number one answer was "value". read more
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The Power of Meat 2009
The Power of Meat explores meat and poultry buying and consumption behaviors, with a special emphasis in the economy. Also available as a PDF Download
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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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