Progressive Grocer - June/July 2009 - (Page 60)

Fresh Developments What’s happening in the perimeter Create New Complexities for Fresh Food Trading Partners With the economy serving as a chief catalyst of change for fresh department sales, buck-stretching has become the new ‘norm’ for consumers and retailers alike. Consumer Shifts sushi, entrees and sides — signifies that consumers are finding main meal solutions in their grocery stores. In addition to lunch and dinner solutions, consumers looked to the grocery store for breakfast and snacking options, resulting in sales growth of breakfast bakery and prepared fruits and vegetables. Multicultural/Ethnic Foods: Consumers continue to experiment with ethnic and multicultural influences. Key 2008 trends in fresh highlighting this pattern were the growth of Hispanic sweet goods in the in-store bakery (the only sweet bakery category that experienced growth) and the growth of exotic and tropicals in the produce department. Growth in the deli department occurred in Hispanic cheese and unique cuts of meat, which are By Meg Major T he economic pressures of 2008 have had profound effects on consumer grocery shopping behaviors, particularly along the supermarket perimeter, according to the latest findings of a recently released report by the Perishables Group examining key sales trends and data for all fixed- and random-weight items in retail fresh food departments. While volume was generally down, the overall increase in retail prices was chiefly responsible for driving supermarket dollar sales increases across the produce, deli, bakery, seafood and meat departments, the Perishables Group’s State of the Department analysis found. Trends within these departments, which represent approximately 30 percent of total supermarket store sales, indicate shifts in consumer behavior will create new category complexity for suppliers and retailers in 2009. “A new norm has been established during the past year,” says Sherry Frey, VP of account services for the Chicago-based supply chain consultancy. “By understanding the details of what happened in 2008, we have a better perspective of how to maneuver in 2009, [and thus] encourage our clients to use that knowledge to create successful business strategies and gain an edge in this increasingly competitive market.” In particular, the report identified three noteworthy trends that transpired during 2008: Penny-Pinching Consumers Still Find Time in Short Supply: Consumers still want convenient meals. With decreased restaurant visits in 2008, consumers looked to the grocery channel for convenient and affordable solutions. Continued sales growth in key deli prepared categories — pizza, chicken, more targeted to ethnic meal preparations. Affordable Luxuries: Consumers still want to indulge, but with a little restraint. This trend was evident in the dramatic growth of individual-sized desserts, miniature bakery items and cupcake sales, all of which grew by double digits. These personalsized indulgences provide both portion control and smaller price tags. While consumers may have curbed their international travel in 2008, their interest in gourmet and specialty cheese continued to increase, even with retail price increases. It is apparent that consumers still want the gourmet experience, even on a budget. For more information, visit Perishablesgroup.com. ■ Sizzlin’ Black Canyon Beef Sales N ational Beef Packing Co., LLC has rustled up a multitiered retail program — Black Canyon Grillmasters — to help position grocery retailers as “the” market destination for the summer grilling season. Offering a variety of strategies such as new item and recipe support, branded package labels and in-store signage, and merchandising and retailer training support, the program underscores Kansas City, Mo.-based National Beef’s commitment “to working with our retailers to build a brand that will be synonymous with summer grilling,” notes Kent McCormick, business manager for Black Canyon, a USDA certified Angus beef program that serves both the retail and foodservice channels. Mike Mazzone, meat and deli director for Huntington,W.Va.-based Forth Foods, is stoked to get the integrated program in full swing because of its promising abilities “to make the summer grilling season exciting for our customers.” Indeed, he continues, the program provides an ideal platform to help Forth Foods “deliver a strong brand message that differentiates us and drives strong sales and profits.” The program further enables retailers to aggressively feature new items from the chuck roll and inside round — such as Denver Steak, Tuscan Steak, Santa Fe Steak and Country Style Ribs — alongside stalwart grilling favorites to spur consumer interest and drive everyday sales while improving the margin mix. National Beef is also backing retailers who saddle up for the Black Canyon Grillmasters program with all the tools they need to be recognized as “grilling gurus,” including authority through press kits that will explain the program and the cuts thoroughly, and retail training sessions that focus on providing cutting guides and cut descriptions to help retailers explain points of difference better. For more information, visit Nationalbeef.com. 60 • Progressive Grocer • June/July 2009 A H E A D O F W H AT ’ S N E X T www.progressivegrocer.com http://www.Perishablesgroup.com http://www.Nationalbeef.com http://www.progressivegrocer.com

Table of Contents for the Digital Edition of Progressive Grocer - June/July 2009

Progressive Grocer - June/July 2009
Table of Contents
Nielsen’s Shelf Stoppers/ Spotlight: Cheese/Shredded Cheese
Market Snapshot: Sacramento-Stockton-Modesto, Calif.
Independents Report: The Advantages of Older Associates
Lempert Report: Food Experts Tackle the Economy
Industry Achievement: The Top 100 Women in Grocery
Multicultural Marketing: 2050 is Today
Retailer of the Year: Celebrating Kroger
2009 Deli/Bakery Operations Review: Shrink-Wrapped
Fresh Developments: Consumer Shifts Create New Complexities for Fresh Food Trading Partners
Produce: Brimming With Possibilities
Meat: Fired Up!
Store of the Month: Giant Eagle’s Express-Ohhh!
Cheese: Cooked Cheese and Other Spiritual Revelations
Beverage Alcohol: A Cup of Cheer
Frozen Foods: Frozen Vegetable Sales are Steaming
Real Estate: Bigger is not Always Better
Technology: At Your Service
Equipment Innovations
What’s Next: Editors’ Picks for Innovative Products

Progressive Grocer - June/July 2009