Progressive Grocer - November/December 2009 - (Page 66)

Consumer Insight The Lempert Report Tops in 2010 The Supermarket Guru peers deep into his crystal ball to see what trends this coming year will bring for the food industry. By Phil Lempert here’s little doubt that grocery shoppers are yearning for the first brand to capitalize on the yearnings of 76 when it introduced line of optimism after the past 20 or so months of this falter- million baby boomersthe hit cable televisiona drama. men’s suits inspired by ing economy. Brand credibility is more important than Now iTunes offers a special “Mad Men” mix. Clasfood brands like Jell-O, Banquet and even ever, and both retailers and consumer packaged goods sic ’60s Face drink mix have huge opportunities, Funny (CPG) brands understand that without armed with new health profiles and more intense flavors Grocery List consumer trust, the future will be bleak. to meet the nutrition needs There’s a new consumer reality: people eating more meals at home, with homemakers evolving from being merely food assemblers; switching brands based on sale prices; and discovering new store formats like Save-A-Lot, Grocery Outlet and Aldi, and making them part of regular shopping trips. The most recent Supermarketguru.com Consumer Panel Survey, sponsored by ConAgra Foods, focused on how shoppers were planning for the 2009 holiday season. It found that 47 percent of shoppers planned on not holding a holiday party this year, and 23 percent said they would contribute money or food to the parties they attend to “ease the financial burden of the host.” Clearly, the prevailing sentiment is “we’re all in this together.” The Private Label Evolution T and retailers to develop cobranded private labels that will feature key ingredients and build ongoing partnerships, which will in turn fuel innovation. For example, a retailer’s private label macaroni and cheese could boast on the front of its package that it’s “made with real Kraft cheese,” or a store-brand pasta sauce could highlight that it contains Hunt’s crushed tomatoes. Brand collaboration is a wellestablished model, and the next evolution is about to begin. Food Sense Instead of relying on the “psychology” of comfort foods, brands are coming out with “relaxation” beverages containing herbs and other ingredients actually designed to calm consumers or help them sleep. Brands like Drank, iChill and RelaxZen may replace VitaminWater and Gatorade. Look for this trend to quickly move to other categories, including “anti-energy” bars and snack foods, and even to spawn a resurgence of calming after-dinner drinks that can be enjoyed at home. Consumer acceptance and purchasing of store brands are at an all-time high, which has made some CPG brands sit up and take notice as their market shares decline. Retailers are threatening to drop established brands from their shelves and add SKUs in private label. And while many shoppers are satisfied with the quality and price of their store brands, look for a radical shift in strategy. “Me-too” is out, and CPG shopper insights are in — look for the major brands More ONLINE People want to know where their foods come from, and through country-of-origin labeling, shoppers are learning more than they ever expected, especially in the meat case, where labels that list more than one country are prompting more consumer questions than ever. The hot trend for 2010 will be the re-emergence of the local butcher — both within supermarkets as well as free-standing establishments — where shoppers will go, select the cuts of meat they prefer and have them ground on demand. The ’60s Are Back and age-diminished taste buds of boomers. Expect fewer carbonated soft drinks and more vitamin-enriched everything. In 2010, 25 percent of the U.S. population will be 55 and older — enough said. 2010 will be challenging, as weather conditions affect the cost of raw materials and are likely to increase commodity (and retail) prices, and new smaller-store footprints continue to expand geographically as well as within established retail banners. Health care reform may well provide opportunities for food retailers to establish themselves as key resources for consumers, in addition to fueling new food categories backed by bulletproof nutrition-based science. In any case, the coming year promises change, which prompts the question: “Are we prepared?” Phil Lempert is one of the nation’s leading trend analysts and consumerologists, and is a contributor to NBC’s “Today” show and ABC news. He is also editor of The Lempert Report and SupermarketGuru.com, host of weekly videos on ProgressiveGrocer.com, and a columnist for AARP, iVillage and Everyday with Rachael Ray magazine. Contact him at Phil@SupermarketGuru.com. www.progressivegrocer.com For additional trends to look out for in 2010, visit www.progressivegrocer.com/lempert2010trends. It started with “Mad Men.” Brooks Brothers was A H E A D O F W H AT ’ S N E X T • Progressive Grocer • November/December 2009 http://www.Supermarketguru.com http://www.SupermarketGuru.com http://www.ProgressiveGrocer.com http://www.progressivegrocer.com/lempert2010trends http://www.ProgressiveGrocer.com

Table of Contents for the Digital Edition of Progressive Grocer - November/December 2009

Progressive Grocer - November/December 2009
Contents
Nielsen’s Shelf Stoppers/Spotlight: All Departments/Ramen Noodles
Progressive Grocer’s Category Captains Awards: Recession Planning
Consumer Insights: Innovate to Differentiate
Independents Report: Determining Relative Worth
Lempert Report:The Trends That’ll be Tops in 2010
Store of the Month: A New Brand of Winn-Dixie
Beverage Alcohol: Glass Half Full
Sports/Energy Drinks: Energetic Sales?
Category Management: Categorical Shifts
Holiday/Super Bowl Meat Promotions: Bowled Over
PG’s Annual Deli/Bakery/ Prepared Foods Roundtable: Bringing Value to the Table: Part 2
Packaging Trends: Sheer Innovation
Price and Promotion Optimization Software: Optimization Plus
Signage: Above and Beyond
What’s Next: Editors’ Picks for Innovative Products

Progressive Grocer - November/December 2009