Progressive Grocer - March 2009 - (Page 62)

Grocery Sensation Wary of sugar and in search of upscale flavor options, more consumers are pouring on the honey, encouraged by greater product visibility. By Bridget Goldschmidt Sweet A merica’s vaunted sweet tooth hasn’t disappeared in this era of health-conscious eating, but more consumers are opting to sweeten their cereal, beverages and homemade baked goods with honey rather than sugar, as research emerges to suggest a host of nutritional benefits linked to the ancient food. ciation, the world’s largest honey marketing organization, attributes growth in the segment to “a shorter world supply and increased consumer demand due to Sue Bee Honey’s increased educational efforts regarding the benefits of honey in both nutritional and beauty/health [applications].” These efforts are part of a yearlong promotion program at retail, including promotion dollars, FSIs, on-pack coupons, instore signs and tie-ins with NASCAR, and film and television projects such as “The Apprentice,” “Bee Movie” and, most recently, “The Secret Life of Bees.” Aside from trusted brands’ light, mild varieties, such as clover honey — As consumers increasingly turn to honey, exotic varietals, gourmet options and organic brands are rising in popularity. According to Nielsen, for the 52 weeks ending Dec. 27, 2008, dollar sales of honey in food stores went up 9.8 percent, on top of a 4.4 percent increase in 2007, while units grew 1.9 percent and 2.8 percent, respectively. Honey suppliers explain, however, that along with greater consumer interest, this uptick in sales is the result of a shortage — and consequent price spike of over 50 percent in the past year — due largely to the baffling Colony Collapse Disorder, which has reduced the bee population in the United States and other parts of the world. Jim Powell, VP of sales and marketing for Sue Bee Honey, the branded product name for Sioux City, Iowabased Sioux Honey Asso62 • Progressive Grocer • March 2009 Additionally, Sue Bee’s Powell points to the growing popularity of such flavors as orange, sage, wildflower and buckwheat in honey, but general interest in rarer varieties hasn’t been detected everywhere: Jim Phillips of Waxahachie, Texas-based Burleson’s Honey, Inc. says his company has “seen very little movement in varietal honey” in the mainstream supermarket channel as yet, although specialty stores and restaurants have made requests. A major consideration — some might say challenge — for the honey “People are enjoying the small lux- category, however, is cost, which ury of upscale teas, and accordingly might keep some otherwise interested want to put in higher-quality honeys, shoppers from buying. as well as move away from sugar,” Although Powell concedes that explains Esther Luongo Psarakis, man- price is “always a factor in honey conaging partner of Bridgewater, N.J.-based sumption,” citing such cost drivers as Demeter’s Pantry/Taste of Crete, LLC, organic and imported product, he an importer of eight varietals of raw says that since “[h]oney is an impulse honey from various regions of Greece, item that sells extremely well when among other products. “In addition, promoted properly,” year-round propeople are becoming more experimen- motion stressing the food’s “endless tal with trying single-varietal honeys applications” is key, along with comfrom different locales.” petitive pricing. Alan Turanski, operations manager of After all, he adds, “There is Eugene, Ore.-based GloryBee Foods, Inc., always a good time to promote a believes the rise product that More ONLINE of high-end is healthy and, For additional honey info, go to honey products is most of all, Progressivegrocer.com/centerstore part of a general delicious.” s www.progressivegrocer.com which Powell says accounts for about 75 percent of all honey sold in the United States — indications are that U.S. shoppers are starting to explore gourmet offerings and more exotic flavorings. “There are more gourmet products on the market now than there have ever been, highlighting the fact that consumers are more educated about the benefits of honey in cooking and beauty,” observes Powell, although he adds that such items are “still somewhat limited” in the mainstream market. Organic honey has also seen a “major upward movement” in sales, he notes. trend. “[M]ore gourmet products are hitting the market, and this includes honey,” he says. A H E A D O F W H AT ’ S N E X T http://www.Progressivegrocer.com/centerstore http://www.progressivegrocer.com

Table of Contents for the Digital Edition of Progressive Grocer - March 2009

Progressive Grocer - March 2009
Contents
Front End: Ahold Banners Launch 'Major Consumer Wellness Initiative'
Nielsen's Shelf Stoppers/Spotlight: Frozen Foods/One-Food Oriental Entrees
Market Snapshot: Miami-Ft. Lauderdale, Fla.
Independents Report: The New Agenda at FMI - And in Washington
Lempert Report: What Shoppers Will Demand in 2009
Wake-Up Call: Back to the Future
Progressive Views: Looking Forward
Frozen & Refrigerated Trends: Staying Cool
Store of the Month: Straub's Newest Family Member
FutureView Introduction: Great Expectations
Futureview: Magnetic Core
Honey: Sweet Sensation
Organic/Natural Cereal: The New Face of Breakfast Sales
FutureView: Home-Cooked Homecoming
2009 Meat Operations Review: Solid Ground
2009 Seafood Operations Review: Rough Seas
Pharmacy: A Destination for Health
Technology FutureView: Retail 3.0
Equipment FutureView: Sustainable Differentiation
What's Next: Editors' Picks for Innovative Products

Progressive Grocer - March 2009