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Fresh - IRI · Larry Levin (818) 450-7614 Rick Stein [email protected] (301) 377-2779
Transcript of Fresh - IRI · Larry Levin (818) 450-7614 Rick Stein [email protected] (301) 377-2779
Fresh Top Trends in
The Fresh Connection! May 19, 2016
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 2
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.
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 3
ASSET PROTECTION
EDUCATION RESEARCH
FOOD SAFETY & DEFENSE
GOVERNMENT RELATIONS
SUSTAINABILITY
SUPPLY CHAIN
HEALTH & WELLNESS
PRIVATE BRANDS
FRESH FOODS INFORMATION SERVICE
CENTER STORE CONSUMER &
COMMUNITY AFFAIRS INDEPENDENT
OPERATOR
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
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 4
Fresh @ FMI
Fresh Foods
Emphasis on fresh
• Produce
• Meat
• Seafood
• Deli/In-store, fresh prepared foods and
assortments
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 Stein Vice President, Fresh Foods
Food Marketing Institute
202.220.0700
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 5
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
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 6
FMI Fresh Executive Committee John Ruane (Co-Chair)
Ahold USA
Rick Steigerwald (Co-Chair)
Lund Food Holdings, Inc.
Tom DeVries (Past Chair)
Giant Eagle, Inc.
Jason Anderson
Affiliated Foods Midwest Cooperative, Inc.
Bill Artman
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
Chris Darling
Albertsons, LLC
Jerry Edney
Associated Wholesale Grocers, Inc.
John Grimes
Weis
John Haggerty
Burris Logistics
Mark Hilton
Harris Teeter LLC
Christopher Lane
Wakefern Food Corporation
Mike Malone
Brookshire Grocery Company
Dan Murphy
Unified Grocers, Inc.
Pat Pessotto
Longo Brothers Fruit Markets Inc.
Jerry Suter
Meijer, Inc.
Geoff Waldau
Delhaize America
Dan Wampler
Hy-Vee
Blaine Bringhurst*
Price Chopper Supermarkets
Steve Mayer*
Schnuck Markets, Inc.
Nicole Wegman*
Wegmans Food Markets, Inc.
* Silent members(*)
The FEC seeks to
• identify areas of
collaboration across all
fresh foods departments
• promote understanding
and cooperation
throughout the industry
and with sister fresh
associations
• maximize common
learning’s between fresh
categories and to create a
vision of leadership for the
entire fresh category
Fresh Foods
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 7
FMI Fresh Foods Leadership Council John Ruane (Co-Chair)
Ahold USA
Rick Steigerwald (Co-Chair)
Lund Food Holdings, Inc.
FEC Members
FMI Fresh Executive Committee
Glen Dolezal
Cargill
Chris DuBois
IRI
Michael Eardley
International Dairy-Deli-Bakery Association
Jim Ethridge
National Cattleman's Beef Association
Sherry Frey
Nielsen Perishables Group
Paul Mastronardi
Sunset Grown Produce
Michael Higgins
Hussmann
Henry Pellerin
Hill Phoenix
Jeff Oberman
United Fresh Produce Association
Janet Riley
North American Meat Institute
Tristan Simpson
Ready Pac Foods, Inc.
Tom Super
National Chicken Council
Jarrod Sutton
National Pork Board
Joe Watson
Produce Marketing Association
Joe Weber
Smithfield Foods Inc.
Art Yerecic
Yerecic Label
The FFLC is..
Comprised of FMI Member
companies, industry trade
association and fresh
focused knowledge partners
Fresh Foods
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 8
Our study focused on finding the keys to high performance
Objective
industry interviews primary data analysis secondary research
Inputs
Define the major trends that are driving Perimeter sales outperformance and
will directly impact long-term success of retailers and suppliers over the next 3-
5 years
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 9
Consumer Demands
Industry Response 5
Trends
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 10
Major Conclusions
Trends are still in the early stages of growth Embracing these trends drives sales outperformance Pursuing trends requires strategic perspective across departments Trends will set foundation for next generation of retail business success
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 11
Connected Consumer 3
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 12
The Consumer Landscape:
Dynamic Change, Enormous Opportunity for Growth
…with
increasingly
varied needs
…in a
fragmenting
retail landscape
…with dramatically
more complex
media stimuli
…requiring
personalization
Shoppers are
more diverse
than ever
Changing family
makeup and decision
making process
Increasing ethnic
diversity among US
shoppers
Quest for value =
quality, price and
assortment
Importance of
convenience and
shopping experience
Multi-channel
shopping and
channel blurring
eCommerce replacing
brick & mortar with
new business models
(home delivery,
click and pickup)
From the 1970’s 500
to today’s 5,000 ads
per day
Increasing shift in
mobile - $105B in ad
spend by 2020 on
mobile platforms
alone
The new path-to-
purchase leverages
digital, social,
mobile media
A tailored shopping
experience including
available product mix
and availability plus
specialized offers
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 13
Demographics Matter Millennials became the largest population segment in 2015
SILENT
BOOMER
GEN X
MILLENNIALS
Projected Population by
Generation (in Millions)
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 14
334M USA Population 2020
The U.S. Shopper is
Becoming More Diverse
309M USA Population 2010
3M White
10% growth
33M Hispanic
53% growth
4M Black
16% growth
4M Asian
15% growth
1M Other
5% growth
Hispanics will account for 53% of population growth
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 15
52% prefer brand
updates in email
vs. text
29% use a mobile
app to pay for
purchases
45% say they’re early
adopters of
technology
6 hrs/day average time
spent online
48% say they’re unable
to function without
their smart phone
Everyone is using digital today
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 16
In an internet minute…
701,389 FACEBOOK LOGINS
150 MILLION EMAILS SENT
2.78 MILLION VIDEO VIEWS
20.8 MILLION+ MESSAGES
972,222 SWIPES
$203,596 IN SALES
527,760 SNAPCHAT
PHOTOS
38,194 INSTAGRAM
PHOTOS
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 17
The traditional Shopper Journey
remains relevant for certain categories
PLANNING pre-store planning
NAVIGATING in-store
ACTIVATING context
PURCHASING in-aisle
USING product usage
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 18
Digital, social
and mobile play
an opportunistic role
in CPG shopping
behavior…
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Nearly half of all consumers
go online to seek coupons
and sales from coupon, retailer
and manufacturers' websites
46.9%
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Consumers are
more likely to search
retailer sites than
they are to visit
manufacturers’ sites
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 21
Social Media is a less
influential factor in shopping
planning, but a critical partner
in education and meal
planning which sets the table
for overall planning.
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 22
Millennials are the trailblazers of
shopping planning.
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 23
More
than 25%
Look for recipes online;
more of a factor among
Millennials and GenX vs.
Boomers
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 24
Over a third compare
prices; Millennials are
most likely to compare
at-home and in-store
35.9%
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80%+ of Gen X and Millennials
are using online resources more
75%
3 in 4 shoppers claim to
use online resources at least as
frequently as they have in the past
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 26
About half of all shoppers still
use newspapers, store
circulars, and magazines to
plan-shows the impact of "old
traditional methods”, but far
below measures of just four
years ago
51.8%
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 27
Total Millennials GenX Younger
Boomers
Older
Boomers
82% 90% 84% 84% 69%
Use Of Online/Digital Resources Related To
Shopping For Fresh Foods Vs. Last Year
The Digital Divide Is Alive
Still Using This Year….
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Are the Trailblazers, finding
it very important to
plan by shopping online.
Millennials and Gen X are
driving the pioneering by
being more inclined to find it
very important to go online to
plan their shopping.
Nearly 1 in 5
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 29
Over 60% say they do less than 30 minutes
of grocery prep – 11% do nothing at all
Total Millennials GenX Younger
Boomers
Older
Boomers
No planning 11% 9% 13% 9% 10%
< 30 minutes 49% 47% 44% 55% 57%
30 minutes - <1 hour 24% 25% 24% 23% 24%
1 hour 11% 13% 14% 8% 7%
2 hours 3% 3% 3% 4% 1%
2+ hours 2% 3% 3% 1% 0%
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 30
Impact on
Fresh
Can we change to meats, bakery,
breads and fruits and vegetables?
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 31
Some perimeter categories have similar levels of digital pre-tail activity as center store
% using any digital device prior to going to the store
48%
Personal Care
46%
Frozen Food
42%
OTC Medications
37%
Non-Alcoholic
Beverages
36%
Meat/Poultry
35%
Snacks
26%
Beer/Wine/Spirits
29%
Dairy
Significantly
more Millennials
used digital
pre-tail than
shoppers 35+
Source: IRI Shopper Path research, 2015
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 32
35%
34%
15%
14%
5%
53% No Pre-Shop
Activities
46% Pre-Shop
Digital
Activities
Total Grocery
20%
22%
6%
9%
5%
68% No Pre-Shop
Activities
31% Pre-Shop
Digital
Activities
Fresh Foods
Social Media Other Digital Manufacturer Retailer Digital Digital Coupons
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 33
List making among
meat/poultry buyers
81% of Meat/Poultry
buyers made a list
90% do not list a brand
yet
Q14. Which of the following did you do before you shopped for insert category from S.2? Q15. Did you make a note (mental or written) to buy…?
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 34
Once purchases are made
14% talk about their
experience digitally
Base = Past Week Buyers of Meat/Poultry
QUICK FACT: Across CPG categories,
Millennials are significantly
more likely to take some
type of post-purchase
action than those
shoppers aged 35+
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 35
The Digital
Mindset
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 36
DigitaLink Segmentation is based on Digital ownership, usage and lifestyles
The most digitally savvy segment, Digitize Me!, has doubled
25% Digitize
Me!
24% Show Me
the Money
21% Technophobes
16% Wired for Work
15% Socializers
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 37
Sees ad online while reading
about creative slow cooker ideas
Grabs phone to
add items to
shopping list app
Back to computer to
check retailer ads
Opens the store’s app at
checkout to save on her
purchase
After making dinner, comments
“fabulous meal solution with
flavor’ on Parents.com
Prices are best at her favorite local store so she heads there
Completes list and chooses
her favorite store because
its own app provided early
notification to upcoming
online specials
Digitize Mom seeks help on
Parents.com for fast and nutritious
family meals
Grocery Store
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 38
The Digitize Me! Segment is at the forefront of
creating a new path to purchase for CPG products
PRE-STORE
IN-STORE
AFTER PURCHASE
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 39
The most digitally engaged shoppers will lead the way
Make it
simple
Help me balance
convenience
and savings
Enable me to
bridge digital and
traditional
Help me but don’t
intrude
Let me have
control
Don’t clutter
my phone
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 40
ShopperSights 6.4 TV Markets
Target Definition:
Experian Mosaic Segments where MilleniaLink Segment HH Penetration 120+
Start activating where they live
Top Markets
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 41
Source: ShopperSights 6.0 – Simmons National Consumer Survey Dec 2013
To start activating
now in media they
consume
Target Pen Index 120+, Target Pen 10%+
Preferred
Magazines
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Source: ShopperSights 6.0 – Simmons National Consumer Survey Dec 2013 Target Pen Index 120+, Target Pen 5%+
Preferred
Websites
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Target Pen Index 120+ Source: ShopperSights 6.0 – Simmons National Consumer Survey Dec 2013
Preferred
TV
Networks
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 44
ShopperSights 6.0 Chain Store Guide & InfoScan Major Food-Club-Mass–Drug-Dollar Retailers
To start activating now
where they shop
Grocery Store
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 45
The Winning Recipe…
Limited planning time requires compelling digital content to engage consumers and shoppers Shoppers are more apt to seek shopping ideas from retailers’ websites; opportunistic for both retailers and manufacturers Connect with Millennials with unique recipe ideas to drive shopping trips Invest in social media marketing and capabilities Understand how to leverage the influence of the Digitize Me segment
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 46
Now Hear This…
Digital marketing is not a passing fancy, but a real necessity to win with today’s—and tomorrow’s shoppers But, don’t throw the “baby out with the bath water”—traditional marketing is, and will remain, a vital part of the knowledge and planning process. Millennials are as likely to use traditional marketing to plan as their older counterparts Recognize the importance of social media to promote and leverage social issues like Anti-biotic free, Non-GMO, organics and other pertinent “issues of the day!”
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 47
2016 Individual Trend Launches + Education Plan
Jan 28 Feb 25 Mar 30 Apr 28 May 19 June
Food
Transparency
Fresh
Prepared &
Specialty
Foodservice
New Supply
Chains
Next:
Connected
Consumer
Convenience
Chris DuBois Steve Ramsey Chris DuBois
FMI Connect
Refresh/Update
Content Plan
Communication
Plan
Sally Lyons Wyatt
Webinar
Webinar
Webinar Webinar Webinar
Larry Levin
Copyright © 2016 Information Resources, Inc. (IRI). Confidential and proprietary. 48
Thank You! Larry Levin
(818) 450-7614
Rick Stein
VP, Fresh Foods
(301) 377-2779