instore - July 2017 - 28

fancy food coverage

Just the
beginning
Schechter says customers, especially Millennials, are seeking "very
personalized service," so the goal for e-commerce now revolves around
using technology to enhance the experience. "We're not limited by eye
space," she noted about online shopping. "I can carry 12 different kinds
of crackers, and the exciting part is to find which of these crackers is
most successful."
She added that Millennials often get a bad rap for being too picky. "Stop
blaming Millennials for ruining the grocery business," she said with a
smile. "It's the other way around."
For packaged bakery and deli foods, the growth of e-commerce could
lead to an explosion of product variety available to consumers because
"we don't have to fill 4,000 stores," Schechter says.
Peapod's Tony Stallone says the recent Amazon and Whole Foods
news is one of the early indicators of a shifting landscape.

is," he said of the show, which attracts more than 40,000 attendees. "At
Peapod, we know a lot about our customers, and small trends that are
growing rapidly."

So, what might the supermarket of the future look like?

As for the next big trend in fresh food, Stallone points to health and
wellness as "the No. 1 trend, and ancient grains is an example."

"No doubt, the center of the store is hollowing out," said Zoeller of
Kings, a chain of 25 stores. "We have a specific definition of what the
customer means to us, and what we can do for them. If you don't have a
clear vision compared to your competition, you're going to struggle."

Whole Foods witnesses much greater consumer awareness of plantbased diets - "some of it is lifestyle, some of it is needs," Strange said.
"As products taste better, you're going to see a revolution around that.
People do care about their bodies."

"The customer is going to change that
40,000-square-foot space," said Stallone
of Peapod. "People aren't buying products
anymore. They buy solutions. Maybe (in the
store of the future) you're going to have groups
of products that provide solutions."
Packaging also plays a key role in the future,
according to Straub, because customers are
much more willing to try a $6 item when "we
can tell the story behind that product."
Stallone said the Fancy Food Show plays a a
very important role in the road to success. "I
think this is the biggest incubation lab there

Packaging and its storytelling is a key part of
getting consumers to try a product.

28 * JULY 2017 * instore

Straub also said he believes it will be increasingly important to be
unique in the marketplace, as more online activity leads to price
comparison shopping.
"Most people who shop at Straub's and Whole Foods are there for a
reason, and it's not price," he said. "They are there for the experience,
the story behind the product. The future is changing, and our eyes will
be wide open."

The shift in perception of premium
Behind the dynamic rise of the specialty food and beverage industry
is a shift in consumer perception of premium. Shoppers today seek
upgraded experiences in everyday occasions, driving growth of a
segment that is far outpacing conventional food and beverage sales,
said Shelley Balanko, Ph.D., senior vice president of The Hartman
Group, Bellevue, Washington.
"Today's consumers want something better all the time," Dr. Balanko
said during a presentation at the Specialty Food Association's Summer

GT'S LIVING FOODS

Strange of Whole Foods noted that ordering perishable products online
is "completely different" than consumer packaged goods, so it's important to understand what components of the shopping experience need
to be filtered to retail stores. The venue component is a key to success
at Whole Foods, many of which have sit-down restaurants. "We would
be one of the top restaurants in the United States if we were counted as
a restaurant," she said.

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