Posts Tagged ‘Consumption’

Wednesday, May 22, 2013 by Lee Mannering

Social media tips, tactics key part of Fresh Connections: San Diego

A couple of weeks ago, I shared some findings from a Progressive Grocer report that outlined retail executives’ perspectives on connecting to consumers in new ways (including social media, mobile, etc.).

In that post I mentioned an opportunity for members coming up June 11-12 at our Fresh Connections: San Diego event. One of our speakers, Carisa Miklusak, has been sharing her thoughts on the digitally savvy consumer and the new decision making process through postings on PMA Xchange. Below I’ve pulled out some key points from her blogs; I encourage you to check out her full posts on Xchange.

  • One of the major factors at play in this new landscape is social advocacy. This is the power of one consumer to influence another consumer with opinions and comments. Social media has particularly made the prevalence of social advocacy common and readily available to consumers. The trust that exists between consumers is proven to be significantly stronger than the trust that can be created between us as growers or retailers, and the consumer.
  • Build your digital strategy by educating yourself off line. I know it sounds odd but often our best learning of what to do in the digital space occurs in our stores and communities. (Or perhaps, Fresh Connections: San Diego?)
  • Pick one or two topics that are highly relevant and dig deeper, moving online to Google the topic, or search it on Facebook and Twitter to find out what kind of online conversations are happening. Then think about how you can contribute to the discussion.
  • When someone talks about your product, specifically when they are talking to another consumer, highlight the conversation. You can do this by liking the comment, re-tweeting or re-posting the conversation, or simply by thanking both individuals for their feedback. This is a tactic that highlights social advocacy.

Even though we’re a few weeks away from Fresh Connections: San Diego, there is still time to sign up and plan your connections with the influential buyers already registered for this event. Confirmed retailers include Raley’s, Northgate Gonzalez Market, H-E-B, Grocery Outlet, Basha’s Markets, Save Mart Supermarkets, Bristol Farms, Safeway, Costco Wholesale, and Mollie Stone’s Market.

The deadline to register in advance and save is June 6. Get all the details by visiting our website and read more of Carisa’s Xchange posts (part 1 and part 2).

Monday, May 20, 2013 by Lee Mannering

Fresh fruit ranks high in consumer snacking study

According to “SnackTrack” by The NPD Group, snack-oriented convenience foods are playing a big part in consumers’ diets: the typical American eats more than 1,000 fresh fruit and sweet and savory snacks throughout the year, with children and teenagers the prevalent consumers of this product assortment. The study found that, on average, women eat 3.1 snack-oriented convenience foods daily. Men eat an average of 2.7 snacks a day.

The top five snack foods are fresh fruit, chocolate, potato chips, cookies and yogurt.

Approximately eight of every 10 in-home snack food eatings are considered to be a snack-oriented convenience food vs. other foods, regardless of time of day. With regard to motivators for selecting a particular snack, “like the taste,” “was hungry,” “had a craving,” “favorite snack,” and “was simple and easy to eat” ranked among the top 10 reasons.

In a press statement, a NPD analyst suggested “connecting your marketing messages to the emotional nature of snacking — think taste, cravings and indulgence — will help drive your product’s selection.”

When it comes to fruit snacking in my house, taste and cravings are definitely the biggest motivators – especially with my three-and-a-half year old daughter. During the course of the last month, we bought some melons from a nearby market. After getting them home and cutting them open for a snack, we realized that the ripeness and taste just wasn’t there. As a result, when we’re in that market, we skip melons for now until the local season gets underway.

What do you think about this study? How can produce marketers utilize the marketing messages (taste, craving, indulgence) suggested by NPD? Share your thoughts in the Increasing Consumption Community on PMA Xchange.

Thursday, May 09, 2013 by Lee Mannering

Survey finds increased produce sales expected at retail

Despite uncertainties around rising fuel prices and the overall U.S. economy, retail expectations for sales in 2013 remain optimistic according to Progressive Grocer’s Annual Report of the Grocery Industry. This annual survey of retail executives found that private label, produce, and deli/prepared foods are the top three traffic generators – with the highest expectations being tied to higher produce sales this year.

This optimism was also reflected when respondents ranked the most influential in-store department in terms of driving stores’ overall brand/image:

  • Meat/fresh meats: 49.6 percent
  • Produce: 28.1 percent
  • Deli/prepared foods: 12.6 percent
  • Grocery/dry grocery: 10.4 percent
  • Bakery: 8.1 percent

One section of the annual report that has grown during the past three years has been the focus on connecting to consumers in new ways (via social media, mobile, etc.). The top five benefits of mobile devices/smartphones listed by respondents were: weekly sale items (68 percent); e-coupons (64 percent); personalized discounts (39 percent); e-recipes (31 percent); and price comparisons (28 percent).

As for social media, it trailed only associate feedback as an extremely/very effective strategy to tap into consumer insights. When it came to retail attitudes on social media, 57 percent of retail respondents characterized it as “challenging,” while others described it as “insightful” (33 percent) and a “blessing” (27 percent).

And wherever there’s a blessing, there’s typically also a “curse” to go with it (with 10 percent of respondents feeling this way).

If you’re a supplier or retailer with the “curse” mindset concerning social media, you may want to put our Fresh Connections: San Diego on your calendar. From June 11-12, we’ll be looking at how to reach the digitally connected consumer and other key trends. Even though it’s about a month out, a number of influential buyers have already registered for this event.

Wednesday, May 08, 2013 by Lee Mannering

Handbook examines sustainability at retail

As you know, one of the many issues I blog about here at PMA is sustainability, ranging from new surveys or reports to member sustainability stories. Recently while getting caught up on a short stack of industry magazines, I read Progressive Grocer’s 2013 Sustainability Handbook and came across some interesting statistics and trends that may be of interest:

  • The Food Marketing Institute’s 2012 U.S. Grocery Shopper Trends Report found that almost one-third of consumers said products’ environmental sustainability impacts their shopping decisions. More than one-fifth said they consider retailers’ corporate sustainability practices when making purchasing decisions.
  • Ninety-two percent of college graduates say they want to eventually work for a sustainable company.
  • An Ipsos InnoQuest global survey found consumers are likely to pay more for value-added features that relate to freshness and sustainability in food packaging. Leading these features are “keeps food fresher longer” (55 percent), environmentally friendly packaging (55 percent), reusable packaging (42 percent), and easier-to-use packaging (39 percent).

The handbook also cited a report I mentioned a few months ago: A.T. Kearney’s Buying into the Local Food Movement. This study found consumers embrace local food options because they think doing so helps local economies (66 percent), delivers a broader and better assortment of products (60 percent), and provides healthier alternatives (45 percent). It also recommended that, in order for larger grocers to convince customers to purchase local food, these operators must prove they can offer products of equal or greater quality than standard products, as well as ensure that local products are given adequate shelf space and location.

With regard to the findings from the Ipsos InnoQuest survey, I’m reminded of what we found in our own of consumer packaging preferences toward fresh produce: eco-friendly packaging is important to just fewer than 40 percent of consumers. Our report also recommended that produce companies appeal to the “green” consumer by ensuring that packaging include any relevant information about the packaging or symbols that indicate recyclability (many consumers expressed confusion as to where to locate this information on existing packaging).

To learn more about this resource, visit our packaging study page to view the report and video Podcasts.

What do you think about these trends? Share your thoughts with us in the Sustainability Community on PMA Xchange.

Tuesday, May 07, 2013 by Lee Mannering

Study explores Moms’ influence on food perceptions and purchases

With Mother’s Day in the U.S. coming this Sunday, I recently read about a new study that examines how childhood influences shape food perceptions and purchases into adulthood. Created by Sullivan Higdon & Sink, The Mom Influence takes a closer look at the impact moms have on consumers’ food purchase patterns and cooking habits. Among highlights from this free seven-page white paper are:

  • 51 percent of consumers said they learned to cook mostly from their Moms, and all consumers under age 45 are 12 percent more likely to say they learned their cooking skills from Mom.
  • 66 percent of consumers said they still cook certain dishes the way their Moms cooked them.
  • 50 percent of consumers said they buy certain foods because their Moms bought those foods, and consumers under the age of 45 are 21 percent more likely to pick up their Moms’ purchasing habits.
  • 35 percent of consumers said they still call their Moms to ask cooking questions. This percentage almost doubles (67 percent) for consumers under age 45.

In light of these findings, the report also noted some business implications food marketers and retailers might leverage, such as help lines for consumers with cooking questions; careful considerations of consumer emotions when considering changes to food packaging/brand messaging; and making Mom an advocate for their products.

Interestingly, the study authors mentioned that their next white paper while focus on cooking and purchasing decisions from a man’s perspective – hopefully this will be out by next month in time for Father’s Day here in the U.S.

What do you think about the Mom influence? How did your Mom shape your food tastes, purchases, or perceptions? Share your thoughts in the Increasing Consumption Community on PMA Xchange.

Monday, May 06, 2013 by Kathy Means

From transparency to trust: Don’t jeopardize your brand

A recent Harris poll on U.S. consumer attitudes toward organics points out (again) the fragility of consumer perceptions and opinions. The poll shows that consumers are increasingly concerned about the environment but don’t want to pay more for products that purport to be green or organic. What’s most troubling to me about the results, however, is that 59% of those polled believe labeling something as organic is just a marketing ploy to charge more money.

We’re pro-produce here at PMA, as you might expect. Organic is great. Conventional is great. Produce is great. Consumer need to buy and eat more produce overall, and having choice in the marketplace helps satisfy a variety of demands.

We’re also pro-authenticity. Whether it’s labeling problems, food safety scares, or activist misinformation, we’ve seen how delicate consumer confidence can be. It’s incumbent on every produce marketer to be sure consumer information is credible and authentic. And we have to support the systems (e.g. USDA organic program) that provide a foundation for that credibility and authenticity. Just as one food safety mistake can devastate an entire industry, one suspicious or false claim can jeopardize the industry’s image.

In its release on the findings, Harris notes: “While recent research shows that organic produce and meat typically aren’t any better for you than conventional varieties when it comes to vitamin and nutrient content, more than half of Americans (55%) believe that organic foods are healthier than non-organic.” Specifically, Harris reports that 41% think organic food tastes better and/or fresher than non-organic.

We know that organics is a unique production method that yields products that are important to some consumers. To grab the attention (and wallet) of those consumers, marketers have to communicate well to those consumers. When they see those messages as a business tactic to raise prices, we all lose.

Consumers can be a skeptical bunch (aren’t we all consumers?), and it’s critical that every marketer guard her/his brand and the industry’s image in a crowded information marketplace. What’s your take on this research and the implications for produce marketing? Let’s talk about it in the Increasing Consumption Community at PMA Xchange.

Thursday, May 02, 2013 by Kathy Means

Better lunch: Healthful and on a budget

We talk a lot about school foods – meals, snacks, non-meal food for sale – and about making them more healthful, but still attractive to kids. A Partnership for a Healthier America issued the Great American School Lunch Challenge, and pitted two school districts against each other to create the most appetizing and visually appealing meal that met USDA nutritional standards within the real school lunch budget.

You can see a video about how some famous chefs got involved. And you can read a wrap-up article as well.

Spoiler alert: A Delaware school district (Colonial) won. We’re all about global here at PMA, and sometimes we still have to brag a bit about local. So because we’re based here in Delaware, and we have staff and staff’s kids who attend/ed school in that district, here’s a high five and a fist bump to Colonial School District and its nutrition services supervisor, Paula Angelucci.

How are you helping schools you serve (with food or by being involved citizens) get creative, healthy, and fund when it comes to school meals? Let’s talk about it on PMA Xchange in the Increasing Consumption Community.

Wednesday, May 01, 2013 by Lee Mannering

Study examines connections between dish size, meal frequency, and kids’ weight

A recent study from Temple University in Philadelphia has found that shrinking the size of kids’ plates and bowls and encouraging them to eat more frequently throughout the day might help them eat less and keep off extra weight.

Forty-two elementary school kids were given the chance to serve themselves lunch. On four days the kids used child-sized plates and bowls; on another four they used adult-sized dishware, which was twice as large.

First graders served themselves an average of 300 to 500 calories worth of the lunch entrée - pasta or chicken nuggets - each day. When they used adult dishware, the kids took an average of 90 more calories of food and tended to eat more.

I find this is interesting on a number of levels. As the Dad of a three-and-a-half-year old, the use of smaller plates for my daughter has been in practice for a couple of years now. Also, she rarely gets to serve herself (although that’s admittedly done for more mess avoidance and not calorie intake).

It also speaks to how plate and portion size has grown in foodservice over the years. As consumers, we’ve grown accustomed to getting a full plate when dining out. Even with some of the kids’ meals my wife and I order for our daughter, we request less of a side item or take some of it off the plate when the meal arrives.

What do you think of this issue? Share your thoughts in the Increasing Consumption Community on PMA Xchange.

Tomorrow Kathy Means will be sharing some information on the Great American School Lunch Challenge - one that has some implications and opportunities for fresh produce. Stay tuned.

Tuesday, April 30, 2013 by Kathy Means

Differentiation: Strategy, execution, culture

Differentiation is that compelling reason for a customer to bypass other stores to get to yours. Your strategy is your differentiator; it has to be meaningful to the target customer/consumer. Your culture is also a differentiator; it has to be consistent with your company’s values, mission, and vision. Complete your differentiation with execution excellence; be sure you can deliver.

These are the major factors for success, according to Mario Pilozzi, who has retired from Wal-Mart Canada and spoke at the recent Canadian Produce Marketing Association (CPMA) convention. He spoke about companies that have succeeded and some that have failed and urged attendees to watch both. Only by doing that do you learn both what TO do and what NOT to do.

Pilozzi also talked about partnerships, about how retailers can’t make it without their suppliers. And he mentioned going to consumers’ homes to see how they really lived, to understand their concerns, and to see how they use the products they buy at the store.

He also addressed the changing retail landscape for fresh produce as alternate channels grow in market share. Noting that the industry has not effectively messaged the importance of produce in the diet, Pilozzi said other distribution channels see strong opportunities and demand and are moving to capitalize on that. That competition, he said, will make all of retail better. Change is good, he asserted, and gives you the opportunity to beat the competition.

We hear a lot of talk today about differentiation, about partnerships, and about channel diversification. How does that talk translate to business strategy for you? Let’s talk about it on PMA Xchange.

Monday, April 29, 2013 by Lee Mannering

Policy conference addresses FSMA, consumer trends, food waste, immigration

A couple of weeks ago, I attended the Consumer Federation of America’s 2013 Food Policy Conference. I’ve attended this meeting before and always came away with some valuable information and insights to share with colleagues and members. This year’s program addressed a number of key issues ranging from the Food Safety Modernization Act (FSMA), food waste, immigration reform, and nutrition topics. Here’s a recap of what I heard and learned:

  • On FSMA, FDA’s Deputy Commissioner for Foods and Veterinary Medicine Mike Taylor shared his thoughts on FSMA implementation with Food Safety News’ Helena Bottemiller. They discussed a variety of areas including the reworking of produce exemptions (FDA seeking industry comment on these), resource constraints (FDA considering fees to fill funding gaps, though industry is opposed to this tactic), and OMB deletions of environmental and product testing from the proposed rules (FDA seeks expertise on these issues and anticipates them being in the final rules).
  • On nutrition labeling, Taylor said final menu labeling rules should be published by the end of the year, while front-of-the-pack labeling rules are being considered by the agency along with a proposed rule to update the Nutrition Facts label (expected in 2014).
  • With regard to consumer trends, Kate Weigle from Edelman shared that 79 percent of consumers said their budget reflects their food purchasing decisions; 68 percent believe healthful foods are too expensive. Also, 95 percent of men and 98 percent of women think about the nutrients meals provide their family. Seventy-two percent of men and 73 percent of women try to purchase food raised or grown locally.
  • On kids and branded food items, a representative from the Rudd Center at Yale University said that the effect of a licensed character on food does have an impact. Their child research revealed that kids think branded food tastes better (even though it was the exact same as non-branded food).
  • Concerning food waste, an Environmental Protection Agency representative discussed the agency’s Food Recovery Hierarchy, with a focus on the top two tiers (source reduction and donation). The Food Marketing Institute shared that consumer misunderstanding of sell-by/use-by dates is a key contributing factor to food waste, followed by the Natural Resources Defense Council stating that, in the United Kingdom, one retailer is printing storage and handling information on their produce department bags.
  • The immigration session was interesting (especially in light of what was happening on Capitol Hill that day). Call me biased, but the standout panelist was Maureen Torrey of Torrey Farms. Her emotional story of dealing with farm labor issues and I-9 audits and enforcement measures held the audience’s attention until she had finished – which was met with a well-deserved round of applause.

In all, it was a very informative meeting and if you’d like additional information on any of the items above, please feel free to connect with me on PMA Xchange.