FMI is the trade association that serves as the voice of ... · 14 LI SEAFOOD MEAT E But…Momentum Slows in 2017 $6.3B $2.5B $5.8B $12.3B ... HOME REMEDIES CONNECTION TO personalized

FMI is the trade association that

serves as the voice of food retail.

We assist food retailers in their role

of feeding families and enriching

lives.

ASSETPROTECTION

EDUCATION RESEARCH

FOOD SAFETY& DEFENSE

GOVERNMENTRELATIONS

SUSTAINABILITY

SUPPLY CHAIN

HEALTH & WELLNESS

PRIVATE BRANDS

FRESH FOODS INFORMATION SERVICE

CENTER STORE

CONSUMER &COMMUNITY AFFAIRS

INDEPENDENTOPERATOR

COMMUNICATION WHOLESALER

TECHNOLOGY

The Association:

Our members are food retailers, wholesales and

suppliers of all types and sizes

FMI provides comprehensive programs,

resources and advocacy for the food, pharmacy

and grocery retail industry

Fresh @ FMI

Fresh Foods

Emphasis on fresh

• Produce

• Meat

• Seafood

• Deli/In-store, fresh prepared foods and

assortments

• Bakery

• Floral

FMI is committed to the growth and success of fresh

companies and their partners. FMI provides resources

and networks that support the interests of member

companies throughout the global, fresh produce supply

chain, including family-owned, private and publicly

traded businesses as well as regional, national and

international companies.

Rick SteinVice President, Fresh Foods

Food Marketing Institute

[email protected]

202.220.0700

FMI Fresh Foods

Research and Education

In-depth information, trends and

insights to foster innovation,

take advantage of new

opportunities and help develop

winning strategies

Networking

Share ideas, explore best

practices and develop business

relations

Advocacy

Understand what is going on in

Washington and make your

voice heard

FMI Fresh Excutive Committee (FEC)John Ruane (Chair)

Ahold USA

Rick Steigerwald (Co-Chair)

Lund Food Holdings, Inc.

Tom DeVries

Giant Eagle, Inc.

John Beretta

Albertsons, LLC

Dave Bornmann

Publix Super Markets, Inc.

Scott Bradley

Target Corporation

Jerry Chadwick

Lancaster Foods, LLC

Alex Corbishley

Target Corporation

Buddy Jones

MDI Distributors

Dan Koch

Associated Wholesale Grocers, Inc.

Brett Bremser

Hy-Vee

John Haggerty

Burris Logistics

Mark Hilton

Harris Teeter LLC

Geoff Wexler

Wakefern Food Corporation

Brookshire Grocery Company

Dan Murphy

SuperValu

Pat Pessotto

Longo Brothers Fruit Markets Inc.

Nick Carlino

MDI Distributors

Jerry Suter

Meijer, Inc.

Geoff Waldau

Food Lion

John Grimes

Weis Markets

Richard Cashion

Healthy Home Market

Shana DeSmit

Walmart

Mark Doiron

Fresh Thyme

Jim Lemke

CH Robinson Fresh

Steve Howard

Bristol Farms/Lazy Acres

Emily Coborn

Coborns

Jerry Goldsmith

Spartan Nash

Mike Papaleo

C&S Wholesalers

Pat Brown

Albertsons LLC

Terry Murphy

Wakefern

Scott Evans

Price Chopper/Mkt 32

Nicole Wegman*

Wegmans Food Markets, Inc.

* Silent members

The FEC is..

Comprised of FMI Member

companies, Retailers and

Wholesalers

Fresh Foods

FMI Fresh Foods Leadership Council

John Ruane (Co-Chair)

Ahold USA

Rick Steigerwald (Co-Chair)

Lund Food Holdings, Inc.

All- FEC Members

FMI Fresh Executive Council

Chris Dubois

IRI

Michael Eardley

International Dairy-Deli-Bakery Assoc.

Bridget Wasser

National Cattleman's Beef Association

Sarah Schmansky

Nielsen Perishables Group

Paul Mastronardi

Mastronardi Produce

David Sherrod

SE Produce Council

Jeff Oberman

United Fresh Produce Assoc.

Janet Riley

North American Meat Institute

Galit Feinreich

Ready Pac Foods, Inc.

Tom Super

National Chicken Council

Patrick Fleming

National Pork Board

Joe Watson

Produce Marketing Assoc.

Joe Weber

Smithfield Foods Inc.

Art Yerecic

Yerecic Label

Brad Roche

Hill Phoenix

Greg Livelli

Hussmann

Robb MacKie

American Bakers Assoc.

Jim Huston

Johnsonville

Chad Gregory

United Egg Producers

Joe DePetrillo

Earthbound/White Wave

Shawna Lemke

Monsanto

John Knorr

Phillips Seafood

Mike Celani

Wonderful

Chandra Macleod

Aqua Star Seafood

Jeff Thompson

Trident Seafood

Emily Blair

Miliken

John Dunne

Acosta

Scott Aakre

Hormel Foods

Sally Lyons-Wyatt

IRI

Wendy Reinhardt Kapsak

Produce for Better Health (PBH)

Michael Lang

Invatron

Tom Daniel

Sterilox/Chemstar

Randy Evins

SAP

Tom Windish

Cargill

Copyright © 2018 Information Resources, Inc. (IRI). Confidential and proprietary.

FOODS

BRINGING

TO LIFE: TOP TRENDS inFRESHwith

Sally Lyons Wyatt Larry Levin&Executive Vice President

and Practice Leader, IRIExecutive Vice President

IRI Thought Leadership

9

TODAY’S

DISCUSSIONProgression of our study

Trend Overviews

2018 Education Series Rollout

10

Our study focused on the shopper and consumer

LEVERAGED

10

trends2016 & 2017

CONFIRMED

relevance & evolution with

consumers

VALIDATED

primary & secondary research

11

20172016

“Fresh”en Up @...

IRI Worldwide.com/insights

fmi.org/TopTrendsInFresh

12

SEAFOOD MEAT

PR

OD

UC

E

29.0%($116Billion)

Perimeter Findings…More than Half of F&B Growth

From 2013’s

30.5%($140Billion)

To 2017’s

DE

LI

$426.8BF&B 2017

FR

ES

H

PR

EP

AR

ED B

AK

ER

Y

13

Nearly double F&B

Perimeter outpacing other F&B departments

over last 4 years, but slowing growth

4-YEAR CAGR DOLLAR GROWTH

TOTAL

FOODBEVERAGES

2.3%

REFRIGRATEDPERIMETER

1.8%1.5%

FOOD &

BEVERAGE

1.2%

GENERAL

FOOD

1.2%

FROZEN

0.8%

SEAFOOD MEAT

PR

OD

UC

EBA

KE

RY

FR

ES

H

PR

EP

AR

ED B

AK

ER

Y

2.9%

14

DE

LI

SEAFOOD MEAT

PR

OD

UC

E

But…Momentum

Slows in 2017

$6.3B

$2.5B

$5.8B

$12.3B

$48.6B$4.4B

Source: IRI FreshLook POS data, Multi-Outlet, 52 weeks ending 12/31/2017

$59.8B

FR

ES

H

PR

EP

AR

ED B

AK

ER

Y

$ 1.5 billion+1.1%

Vol 0.0%

15

-0.3%-0.4%

0.9

$

1.7

-2.9%

With volume declines impacting key segments

Seafood Deli Prep Deli Cheese

Source: IRI FreshLook POS data, Multi-Outlet, 52 weeks ending 12/31/2017

Meat

-0.3%

1.6

0.6%

Produce

0.0

$

Bakery

0.5%0.1%

Deli Meat

0.7%

-4.4%

VOL

VOL

$

$$

VOL VOLVOL$

$VOL

VOL

0.6

$

16

FOR THE EXECUTIVE AGENDA

Fresh foods are top-of-mind for consumers

Understanding generational differences is important

for reaching key shoppers

Short & long-term growth can be realized through a

variety of activation opportunities

17

BUT THERE IS A LOT OF

WORK TO DO

TRENDS areRELEVANTstill

18

Let’s dive into two trends updates

19

HOLISTIC

HEALTH

Consumers continue to rely on eating

fresh foods for certain health benefits

20

TO THE MAJORITY OF

FRESH FOOD

CONSUMERS CONFIRMING

HEALTH & WELLNESS

is IMPORTANT

shoppers

The most important factor

when heading out to shop82%

50%

It’s the most important

reason for choosing

fresh foods

Consumers are eating fresh foods

for certain health benefits

21

HEALTH & WELLNESS

as a SHOPPING

in 2018 vs. 2017

MOTIVATOR HAS BECOME

MORE IMPORTANT

65%




22

Foods that provide

medicinal properties

Foods recognized as

home remedies

50% 45% 53%


Like to buy foods rich

in micronutrients



23

Natural Foods Hormone Free Options


Nutrients & vitamins are greater with less processed foods

Highly nutritious foodsVitamin-rich foods

23% 41%Mineral-Rich foods

35% 35%

43%

24CONSUMERS CONFIRMING

LOOK FOR FOODS THAT

AND CERTAIN ALLERGIES

complywith DIETARYrestrictions

ARE MORE LIKELY TO

Allergen free foods are in demand

17%Millennials

20%Gen X

25HOLISTIC HEALTH EVOLUTION

Absence of certain negatives is growing in importance

...MUCH MORE IMPORTANT

now then in the past

31%NON-GMO

32%HORMONE-FREE

30%PESTICIDE-FREE

32%ANTIBIOTICS-

FREE

% OF CONSUMERS WHO ARE SEEKING FOODS THAT ARE...


BAKERY DEPARTMENTdriving Holistic Healthwith KETO OPTIONS


For those who practice holistic health

EXPAND ASSORTMENT

with availability ofDISEASE FIGHTING HOME REMEDIES

CONNECTION TO

personalizedNUTRITION

And interestingly, key US retailers are now very focused on gut health to better serve their shoppers needs

28

Holistic Health trends more positive now vs. past

MILLENIAL GEN X BABY BOOMERS

70% 60% 64%

HOLISTIC HEALTH EVOLUTION

29

MILLENIALS BABY BOOMERS

SUPER FOODS

NATURAL FOODS

RICH IN

MICRONUTRIENTS

HOME REMEDIES

PROTEIN RICH

FOODS

FRESH HERBS

ETHNIC &

UNIQUE FOODS

DIETARY

RESTRICTED

10%

19%

13%

9%

23%

20%

8%

10%

17%

30%

20%

18%

30%

27%

15%

17%


MILLENNIALS

30

Millennials are shopping these markets more than any other generation

Specialty Grocery Store

Farmers Market

Mass Merchandise

Store

43%

MILLENNIALS BABY BOOMERS

63% 19%


35% 23%


34%TOTAL TOTAL TOTAL

27%24%50%


31

For both believers and non-believers

Need more education


Cooking

Classes

Seminars

Signage

Website

support

32

CONVENIENCE

“What I need and when I need it!”


33

CONVENIENCE

Buying ready-made meal kits and pre-cut

ingredients, more prevalent among

Millennials...as well as others



Who enjoy the

exploration and

excitement of cooking

with the guesswork

eliminated by well-

designed meal kits


Convenience is driving

value-added meats

CONSUMERS LOVE ready to heat/ready to eatAS A HEALTHY ALTERNATIVE

TO GOING TO ARESTAURANT

36CONVENIENCE EVOLUTION

TEACH SHOPPERShow to cook foodTHAT THEY CAN CONVENIENTLY BUY


Convenience is a key play

BUSINESSGROWING OVER THE

past two years withNEW COMPETITION

FOOD SERVICE AT RETAIL

$12 BILLION


32% 24% 15%

Millennials place higher importance on fresh prepared meals/meal kits and prepared ready-to-cook ingredients

MILLENNIALS GEN X BABY

BOOMERS

39

While being important to

ALL SHOPPERS…

Vegetables

and Fruit

41%

15%

13%

63%

Seasonal

Offerings

10%

MILLENNIALSDrivers of store selection are driven by...

Meal Kits

Dietary Meal

Kits

Trendy Meals

CONVENIENCE EVOLUTION

40

And, Millennials out-pace their

generational counterparts on…

CONVENIENCE EVOLUTION

33%


49% 35%

GEN X

26%


42% 28%

GEN X

38%


54% 39%

GEN X

40%


52%$12 BILLION

BUYING

FROZEN

FOODS

GETTING

TAKE-OUT

GETTING

IN-HOME

DELIVERY

EATING

OUT


Millennials are likely to shop later in the

afternoon and a well-stocked perimeter can be

a ticket to success.

Opportunity to drive secondary sales, like wines, to act as a pairing with meals purchased.

42

2018 AREASOF ADDITIONAL IMPORTANCE

43

Affordability“Should lower the prices when it

comes to vegetables, because I

feel like junk food can be cheaper

than vegetables”Want to buy fresh

but it costs too

much—cheaper to

go to McDonald’s”

In fact lower priced fresh foods are important for certain segment of the population

15%


12%

GEN X

12%

Fresh pricing is too high for many stores

/areas

Possible opportunity to

expand “Imperfect” fruits and vegetables

44

FRESH NOWopportunity

SOME: Call stores for their

fresh food delivery for optimum freshness

SOME: buy fruits and

Vegetables on a daily basis

Get the ability to alert

shoppers when produce or

veggies have been delivered

Send alerts about

new/seasonal items

availability

45

FRESH

TRIFECTA

MORE VARIETY

BETTERPRICES

EASIER TO SHOP

46

FRESH

TRIFECTA

Better organized fresh foods

Better organized stores in general

Fresh Food

must lookgood /fresh

47

RETAILERSmay consider

PROMOTING

THE

GOODNESS

EXPLORING

THE VARIETY

TRIFECTA

CONNECTIONS

WITH THE

GENERATIONS

PROMOTING

THE

INTEGRITY OF

FRESH

COMPETE BY

EMPOWERING

CONSUMERS

Key benefits of

Fresh with experts

to enhance

experience and

daypart

opportunities (e.g.,

wine: late

afternoon)

Fresh food

assortment

(e.g., diseases

fighting,

personalized

nutrition, meal

kits, etc...)

Targeted benefits

to aid

generations from

Super Seniors to

the up & coming

Gen Z shoppers

(e.g., Fresh Now,

Affordability, etc.)

Focus on

Social and

Cultural needs

that are

relevant to key

targets

With restaurant

options and benefits

by teaching how to

prepare healthy

meals (e.g., cooking

classes, seminars,

signage, website

support)

48

MANUFACTURERSmay consider

DIVERSIFYING EMPHASIZING HIGHLIGHTING

Including foods

made from

seasonal and

locally sourced

ingredients

Freshness and

--flash frozen

or picked at the

peak of

freshness;

Promoting

social and fair-

trade practices

Comparative or

competitive

benefits of fresh (e.g., value, high

protein, good source

of vitamins/minerals)

INNOVATE

Delivery formats

with an emphasis

on freshly

prepared

Impact of

shopper journey

personalization

and touchpoints

MEASURE

49

Retailers and Manufacturers are better together by…

Promoting the merits and delivering on expectations of

fresh whether it’s around absence of negatives,

presence of positives or key social issues via key media

streams

Educating and nurturing consumers on how to best

select and prepare

Create programs to make fresh products, perfect or

imperfect, readily available to all populations

50

2018 Trend Launches & Educational Plan

Feb 22

Holistic Health

Convenience

APR 25

Food Transparency

Social & Cultural

Alignment

JUN 20

Customization to

the New

Consumerism

Prepared Foods

& Specialty

SEP 13

Atomization of

Personalization

Connected

Consumer

OCT 2

Hyper Localization

New Supply Chains

FOODS

BRINGING

TO LIFE: TOP TRENDS in FRESH

Thankyou!

Sally Lyons Wyatt Larry Levin&[email protected] [email protected]

Copyright © 2018 Information Resources, Inc. (IRI). Confidential and proprietary.

Documents

FMI is the trade association that serves as the voice of ... · 14 LI SEAFOOD MEAT E But…Momentum Slows in 2017 $6.3B $2.5B $5.8B $12.3B ... HOME REMEDIES CONNECTION TO personalized