Progressive Grocer - December 2008 - (Page 28)

Grocery list Consumer insight The Lempert Report The state of food What the Obama Administration is likely to mean for the industry. By Phil Lempert At the beginning of 2008, 75 million more people joined the ranks of the hungry— a number some experts predict could double by the end of this year. he state of the economy, our energy supply, climate change, health care, national security—with the transfer of power to a new Administration imminent, these are the hot national issues. What we’ve not heard much about is the issue of rising food costs, even though this ties into all of the above. If we don’t pay attention to what could happen to the costs and abundance of our food supply, we could be making a vital omission. As of the beginning of 2008, rising food prices had pushed 75 million more people into the state of deprivation known officially as “hunger,” and some experts predict that number could double by the end of the year. By the year 2050, we will need to produce almost twice as much food as we do today, based on current global population forecasts of over 11 billion mouths to feed, and we will have to produce it on a shrinking land mass. This is why the implications of climate change and sustainability on the food supply should be on the minds of our incoming Administration. We might be hopeful that a market rebound will positively affect the prices we’re paying for food and energy, but we can’t ignore the risks at hand, given those who will doubtless be losing their jobs and struggling to feed their families. What can we expect for the food industry under the Obama Administration? FARMERS WILL SURVIVE AND PROSPER, and we’re talking about small farmers. During their campaign, both Barack Obama and Joe Biden put forth initiatives that included establishing a new program to identify the next generation of farmers and ranchers, develop their needed skills, and offer up a tax incentive to bring new farmers into agriculture and help them set up their first farm. Our new president and vice presiMore ONLINE dent have both For additional pledged support to consumer insights, go to family farmers and Progressivegrocer.com their right to fair 28 • Progressive Grocer • December 2008 T access to markets, and also to gain transparency in the prices set by larger farms. WE WILL WAGE WAR ON E.COLI with new food safety regulations for factory farms, especially in the meat industry. The looming question is, who Wanted: Greater food knowledge Do you want to know what country your food comes from? Always 80% Sometimes 19 Never 1 To the best of your knowledge, were you aware of a new law that mandates this information to be on a package? Yes 52% No 48 If yes, what foods do you believe are labeled with their country of origin? (check all that apply) Fresh produce 56% Fish 45 Beef 41 Poultry 32 Canned foods 30 Frozen produce 27 Nuts 25 Dairy products 22 Deli meats 18 TECHNOLOGY WILL BE FORCED UPON THE FOOD WORLD—finally. Obama has shown his technological side with extraordinary Web-based campaigning, social networking, and now weekly Webcasts to the nation. Look for similar efforts in If you do look for the country where a product is made, why do you? (Choose all that apply) Because of recent incidents of food contamination in produce 81% To ensure support of more locally produced foods 69 For quality assurance 65 Because of mad cow disease 33 From the above list, what is the one most important reason you look for this on the label? Because of recent incidents of food contamination in produce 48% For quality assurance 26 To ensure support for more locally produced foods 24 Because of mad cow disease 1 SOURCE: SUPERMARKETGURU.COM CONSUMER PANEL (1,314 RESPONSES, 72 PERCENT FEMALE, FROM ALL 50 STATES) will pay for this more extensive testing and vigilance? Rep. Jim Costa (D-Calif.), a third-generation farmer himself, says we need to accept the fact that farmers, retailers, and manufacturers are likely to have usage fees attached to inspections, to pay the bills that the government can’t afford to cover at this point. He also suggests that the largest Farm Bill budget ever may well see a reallocation of funds, as the new Administration tries to cope with our short-term, $1 trillion debt. COOL IS LIKELY TO SPREAD: Obama has always been a major supporter of country-of-origin labeling, and we might well see support to force expansion of COOL to more foods, and certainly an effort to make all foods traceable. A H E A D O F W H AT ’ S N E X T traceability, food recalls, and nutrition education. GET READY FOR A NEW USDA AND FDA, although the once-ballyhooed concept of a single food safety agency as part of the new direction seems doubtful today, according to Washington pundits. Failing that, a major overhaul is on the horizon, both in agency processes and in a renewed effort to recruit the best and the brightest to agency management. Phil Lempert is the one of the nation’s leading trend analysts and consumerologists. He is the food editor of NBC’s Today show, SupermarketGuru.com, FactsFiguresFuture.com, and XtremeRetail.com; the host of the syndicated radio show Shopping Smart; and an author. He can be reached at PLempert@SupermarketGuru.com. www.progressivegrocer.com http://www.SupermarketGuru.com http://www.FactsFiguresFuture.com http://www.FactsFiguresFuture.com http://www.XtremeRetail.com http://www.progressivegrocer.com http://www.progressivegrocer.com

Table of Contents for the Digital Edition of Progressive Grocer - December 2008

Progressive Grocer - December 2008
Contents
Front End: Onstead Becomes Interim Bi-Lo C.E.O.
Nielsen’s Shelf Stoppers/Spotlight: Shelfstable Juices/Vegetable Juices and Drinks
Market Snapshot: .Seattle-Tacoma,Wash
Retailer of the Year: Taking the lead
Lempert Report: Obama Prepares to Tackle Food Industry Issues
Independents Report: What Grocers Need to Know About Market Day
Consumer Research: Reason for Relevance
Shopper Culture: Reimagining Convenience Foods
Wake-up Call: The Ballad of The Egg Man
Eggs: A Kinder, Gentler Egg
Shelf-Stable Juice: Making a Splash
Post-PMA Show Analysis: High Yield
Niche Pork: Go Whole Hog for Local
Pharmacy: Chronic Customer Service
Technology: A Small-Town Grocer Discovers Digital DIY
Equipment Innovations
What’s Next: Editors’ Picks for Innovative Products

Progressive Grocer - December 2008