Broad Street Licensing Group Food News

Women Still the Gatekeepers, But…

May 18th, 2012

It’s accepted wisdom in retailing that women dominate shopping in all channels except convenience stores.

But men are catching up.

Between 2004-2010, trip shares for men increased in all retail channels except drug stores.[1]Spending by men at grocery still lags behind that of women ($44.43 per trip vs. $34.81). but the difference at dollar and warehouse club stores is just $3 and $5 respectively per trip. The sexes show no significant differences in online shopping, with 72% of women and 68% of men having shopped online in the past 30 days. The highest age group for online shopping activity was 35-54 (74%), with women dominating most purchase categories except music, auctions and computer hardware.


[1] Source: Nielsen.

Posted in Consumer Trends and Habits, Convenience Stores, Retailing | No Comments »


Private Label & Food

May 17th, 2012

The “surging” statistics on the growth of private label are distorted by the inclusion of non-food items like apparel, where most retailers have their own “house” brands.

Now a new study has shown that Private-label brands’ share of  the total U.S. dollar reached 17.4% in 2009, up from 15.2% in 2006.[1]

While hardly a surge, the growth is unmistakable. Store food brands account for $90bn in the U.S. or 30% of the total servings of food sold, and up sharply from the 20% share from 1984-2003. Part of the rise is due to the growth of supercenters, which now account for 27% of the grocery segment (up from 22% in 2005).[2] The market share is about half that of Europe, where store brands dominate.


[1] Source: Nielsen’s Global Private Label Report: The Rise of the Value-Conscious Shopper.

[2] Source: Food Marketing Institute (FMI).

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More Tasty Tidbits

May 16th, 2012

  • In a move that will make a small company much bigger, Saratoga Specialties Co. will sell its Moon Brand Original Potato Chips through 210 Williams-Sonoma and 610 Cracker Barrel gift shops.
  • Target, stung by its anemic performance during the recession, continues to ramp-up food in its stores: “Pfresh” grocery items will be added to 380 stores in 2011. The company claims sales will top $100bn over the coming 6-7 years after it acquired 220 Zellers stores in Canada.
  • Kohana Coffee will sell a cold-brewed coffee concentrate designed for hot weather at SW branches of Whole Foods. The process doesn’t use heat, instead straining through roasted beans.
  • Frito-Lay insists the biodegradable bags for its Sun Chips line are now much quieter. US consumers had complained about the noise from the eco-friendly materials used in the packaging.
  • Count this last item among the “ick” factors: London’s Icecreamists is selling breast milk ice cream under the “Baby Gaga” name for a hefty £14 ($22.75). A woman from Leeds provided 30 ounces of breast milk intended to stretch into 50 servings. No word yet on whether anyone is sucking up the item.

Posted in Consumer Package Goods (CPG) | No Comments »


Cows With Guns

May 15th, 2012

The meat eater’s nightmare. Share this with your vegan and vegetarian friends…

From humorous songster Dana Lyons, composer of the hilarious “I’d Go Anywhere To Fight For Oil To Lubricate the Red White & Blue.”

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World News

May 14th, 2012

  • Walmex, the Mexican branch of Wal-mart Stores, Inc., is using its acquisition of 500 stores from Walmart Centroamerica in March, 2010, to leverage growth in Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica. The result has been a 16% increase in fourth quarter 2010 profits. The retailer is facing increased competition from Soriana, Comerci and Chedraui at a time when the recession has affected both Mexico itself and money sent home by Mexicans working in the US. The company cited higher costs for electricity as a drag on profits as well.
  • The Bentonville Behemoth has run afoul of The New York Times, which has reported massive bribery in its Mexican division, along with a an apparent effort to cover it up internally.
  • Don’t plan of switching out maple syrups: Canada will invest more than C$110,000 to implement maple syrup traceability from farm to processing plant through radio frequency identification chips. We don’t make this stuff up. Furthermore, it will invest twice that (C$252,000) to develop traceability for growers and pickers in the Saskatchewan Herb and Spice Association.
  • Canada’s Loblaw Cos. Ltd. focus its marketing over the next decade on ethnic groups, allocating up to 70% of spending.[1] The company has hired Vicente Trius from Carrefourto target Asians and South Asians, the largest immigrant groups coming into Canada.

 

[1] Source: CIBC World Markets.

Posted in Retailing, World News | No Comments »


Bans on Kid Meal Toys Spread

May 11th, 2012

 

In a move that is making the restaurant industry howl, Nebraska is the latest locale to look at banning toys from kids meals, at least ones that don’t meet minimum nutritional standards.

Any kiddy meal with over 500 calories, 640 mgs of sodium and which do not contain at least a cup of fruit or vegetables that haven’t been fried would come under the ban.[1]

San Francisco has already banned toys from fast food meals for kids. Health advocates say the toys contribute to obesity, and cite Federal Trade Commission estimates putting toy spending by the major restaurants at $360MM in 2006 that went into 1.2bn meals. They point out, too, that preschoolers were exposed to 21% more fast food ads in 2009 than in 2003. School-age kids saw 34% more ads, and teens 39% more. The ads aren’t just on TV, either: McDonald’s ronald.com targets preschoolers.


[1] There would also be limits on saturated fats, trans fats and sugar.

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Tasty Tidbits

May 10th, 2012

  • With the organics movement in serious trouble, two organic groups have aligned to help restart the engine: the Organic Trade Association (OTA) and California Certified Organic Farmers Inc. (CCOF) are looking to increase their influence on regulators and public policy, including the threat to regulatory funding in the current Congress. California is the leading organic producer in the country with over 2,500 businesses and 470,000 acres.
  • Troubled Hostess Brands, Inc. has launched Wonder Smartwheat which contains 22 grams of whole grain, the calcium equivalent 4 oz. of milk per slice, no high-fructose corn syrup and is lower in sodium to be in line with the National Sodium Reduction Initiative. So much for your grandmother’s Wonder Bread.
  • With sales in the US flat for many CPG houses, it’s no wonder offshore opportunities are increasingly becoming the focus for growth. HJ Heinz credited its emerging markets divisions for its third-quarter 2011 earnings spike. Volume growth was 7.2% in markets like India (Complan and Glucon-D nutritional beverages), Indonesia (ABC-branded products), Russia Heinz-branded products, especially ketchup), and China (Heinz infant nutrition products). North American sales were driven up 3% to $839MM by sales of T.G.I. Friday’s single-serve entrees, Smart Ones value packs, and the introduction of Dip & Squeeze foodservice ketchups, as well as new packaging for Ore-Ida frozen potato products.
  • The “hot trends” in breakfast will be hot pizza and breakfast all day says The Food Channel.
  • Not everything Coke touches turns to gold: Honest Tea continues to struggle despite the “bump” from Coca-Cola’s distribution (up from 15K outlets to 75K), and the cachet of them owning 40% of the company. Now Coke has bought up the remainder of the company through its venturing & emerging brands (VEB) unit.
  • As if cakes needed more publicity— the new trend is “cake balls.” They are small portions of cake and icing mashed up together and covered with chocolate, frosting or sprinkles. Likely born of the South and Texas in particular, they’ve spread as high-end luxuries.
  • The success of “locavore” movements received a boost with the announcement by the Massachusetts Department of Agricultural Resources that it would build a public market for locally-grown products in downtown Boston.
  • Japan’s Kirin Holdings Co. will try to bring its Free alcohol-free malt beverage to the US. The beverage is big with older consumers on meds and pregnant women.
  • And finally, sadly, Blair River, the 575-pound spokesman for the Heart Attack Grill (see above) has died at the age of 29. The cause of death isn’t currently known, but apparently was from pneumonia after a bout with the flu. River promoted the massive burgers and fries cooked in lard for the chain.

Posted in Consumer Package Goods (CPG), Environment, Health, Tasty Tidbits | No Comments »


Marketing Around the World

May 9th, 2012

  • Chipotle Mexican Grill Inc. will help launch Facebook Deals, a new competitor to Groupon, that allows consumers to find discounts at neighborhood businesses through Facebook Places. The chain will give a BOGO to consumers who use their smart phones to access the site as their over 1,000 locations. The brand uses its Facebook page to promote “food with integrity,” as well as more mundane things like restaurant openings.
  • Fair Trade Certified products continue to do well at grocery, increasing 24% during 2010.[1] Sales in mainstream channels grew faster (26%) than specialty grocers (22%) and natural grocers (16%), with ready-to-drink tea & coffee leading the way (39% increase and 33% respectively).
  • Kraft’s Cadbury division in India will roll out the Oreo brand. The move is intended to expand the presence of the Oreo brand in international markets, as well as move Cadbury away from its reliance on confections to include prepared foods from the Kraft portfolio.
  • Ajinomoto Co.is best known for its MSG and other seasonings, but it planning to spend $3.7bn over the next three years on acquisitions in territories like Brazil and Southeast Asian, the Middle East and Africa.

[1] Source: Fair Trade USA.

Posted in Marketing Trends, The Restaurant Business, World News | No Comments »


Sweet & Sour News

May 8th, 2012

Honey prices in 2010 hit records for the 3rd consecutive year, even though production increased 20%.[1]

The average price was $1.60 per pound (up 9%), with the average retail price reaching $3.05 (up 8%). Prices for cooperatives and private label were up 8% to $1.51. Total value for honey produced last year was $281.97MM (up 31%). Producing colonies increased 7%, too, which is good news following the problems of mass die-offs called “Colony Collapse Disorder” that scientists think may be caused by a combination of a pathogen and a bee mite. North Dakota, South Dakota, California, Florida, Minnesota and Montana produce 67% of the honey in the US, with North Dakota accounting for 25% of the total.

And on the savory side of things, the food sector is under enormous pressure to reduce salt, and part of the challenge is the human preference for salty foods. Now a study[2] has shown a link between sweet taste perception and salt, clarifying the picture for scientists looking for practical ways to cut sodium consumption (salt is also an important preservative in food processing). Sweet receptors[3]that previously were thought to be only in the digestive tract were identified in the oral taste cells of mice. Sound boring? Actually not: it may explain why salt in baked goods, for example, boosts the perception of sweetness.


[1] Source: U.S. Department of Agriculture’s annual honey report.

[2] Source: Proceedings of the National Academy of Sciences.

[3] Glucose transporters (GLUTs) 2, 4, 8 & 9, a sodium-dependent glucose transporter (SGLT1), and two components of the ATP-gated potassium (potassium-ATP) blood-sugar metabolic sensor.

Posted in Consumer Trends and Habits, Environment | No Comments »


Convenience, Convenience, Convenience…

May 7th, 2012

Another survey reinforces what we’ve been saying for some time: it’s mostly about convenience.[1]

Over 40% of restaurant goers say they rarely have time for breakfast at home, though 50% said it’s too time-consuming for them to stop at a restaurant for breakfast. Sixty-six percent of restaurant goers queried wanted more-healthful breakfast options, with 39% saying local restaurant fare was “too unhealthy.” In terms of fare, mid-week patrons prefer breakfast sandwiches, while those going on weekends wanted platter selections.

And for those who think consumers want healthier eating, the Heart Attack Grill, where patrons over 350 pounds eat free. Another unsual restaurant concept is Jamaica’s Pelican Bar is located a mile out in the ocean and requires a boat to visit. Finally, there’s Hobbit House in the Philippines where all the wait staff are vertically-challenged (what used to be called “dwarves”).


[1] Source: Mintel in a survey from October 2010 that sampled 2,000 adults over 18 with access to the Internet.

Posted in Consumer Trends and Habits, The Restaurant Business | No Comments »


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