Retail Innovation Outlook: What Are Grocers’ Focus Areas? PLAYING IT COOL Hussmann shares refrigeration insights TRANSPARENCY RULES How protein suppliers are keeping consumers informed WELCOME TO THE FUTURE Grocers harness GenAI solutions to streamline ops
TOP REGIONALS
MASTERS OF THEIR UNIVERSE 8 operators differentiating by putting local and customer experience front and center
Eatwell Market in Chesterfield, Mo.
January 2024
Volume 103, Number 1 www.progressivegrocer.com
Contents 01.24
Volume 103 Issue 1
Features
22
COVER STORY
Masters of Their Universe
These eight operators are differentiating by putting local and customer experience front and center.
13 FEATURE
30 EQUIPMENT & DESIGN
New Year’s Innovations
Spirit of the Beehive State
Grocers are focusing on several key areas as they look to grow their business in 2024.
Two Utah indies show off their creative design ideas.
18 EQUIPMENT & DESIGN
38
Leading the Way on Sustainable Stores
Hussmann ramps up innovation with regard to greener refrigeration solutions.
CPG giants are venturing into the pet supplement category in response to growing consumer interest.
Producers and retailers aim to give protein shoppers the information they crave.
AI Isn’t Always the Answer 6 IN-STORE EVENTS CALENDAR
Consumer- and employee-facing applications are proliferating in the area of generative AI.
For the Love of Fido
The Transparency Timetable
5 EDITOR’S NOTE
The Future Is Now
38 NONFOODS
27 SOLUTIONS
Departments
36 TECHNOLOGY
10 NIELSEN’S SHELF STOPPERS
12 ALL’S WELLNESS
Dairy Products
Why Dry January?
11 MINTEL GLOBAL NEW PRODUCTS
41 EDITORS’ PICKS FOR INNOVATIVE PRODUCTS
Frozen Breakfast Foods
42 AHEAD OF WHAT’S NEXT
March 2024
She’s the Top
12 PROGRESSIVE GROCER Januar y 2024
3
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A Case of Mistaken Identity
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CONTRIBUTING EDITOR Jenny McTaggart
ADVERTISING SALES & BUSINESS
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PROGRESSIVE GROCER (ISSN 0033-0787, USPS 920-600) is published monthly by EnsembleIQ, 8550 W. Bryn Mawr Ave. Ste. 200, Chicago, IL 60631. Single copy price $17, except selected special issues. Foreign single copy price $20.40, except selected special issues. Subscription: $150 a year; $276 for a two year supscription; Canada/Mexico $204 for a one year supscription; $390 for a two year supscription (Canada Post Publications Mail Agreement No. 40031729. Foreign $204 a one year supscrption; $390 for a two year supscription (call for air mail rates). Digital Subscription: $87 one year supscription; $161 two year supscription. Periodicals postage paid at Chicago, IL 60631 and additional mailing offices. Printed in USA. POSTMASTER: Send all address changes to brand, 8550 W. Bryn Mawr Ave. Ste. 200, Chicago, IL 60631. Copyright ©2024 EnsembleIQ All rights reserved, including the rights to reproduce in whole or in part. All letters to the editors of this magazine will be treated as having been submitted for publication. The magazine reserves the right to edit and abridge them. The publication is available in microform from University Microfilms International, 300 North Zeeb Road, Ann Arbor, MI 48106. The contents of this publication may not be reproduced in whole or in part without the consent of the publisher. The publisher is not responsible for product claims and representations.
EDITOR’S NOTE
By Gina Acosta
AI Isn’t Always the Answer SOME TIMES, RE TAILERS JUST NEED TO FOCUS ON GOING BACK TO THE BASICS. ver the holidays, I was doing some last-minute — OK, very last-minute — shopping on Christmas Eve. I was picking out some cilantro at my Associates enchanted shoppers at a Tampa, Fla., Walmart on Christmas Eve local U.S. Walmart when, suddenly, with carols sung in Spanish. I thought I could hear people singing on the other side of the store. Not just singing, but singing in Spanish. Christwhat their challenges and opportunities mas carols in Spanish, to be exact. are before investing in more AI applicaEventually, the singing grew louder. tions during what’s shaping up to be anIt was a group of Walmart associates other challenging year (around 10), and they were for the bottom line. walking toward me in the produce department — singing, From point of sale to The ChatGPT Nosclapping, cheering — and one of them had a trumpet. I pricing compliance to tradamus referred to it stopped for a moment and watched not just the carolers, inventory management, as “human ingenuity.” but also the shoppers who had paused and were watching social commerce, But I think sometimes them. The looks on their faces — adults and children alike networking visibility, what’s needed to gain a — were euphoric. Some of them even sang, clapped and retail media and so competitive advantage is danced along to the sounds. It’s not every day that you go to much more, AI is forever just a little bit of magic, the store to buy produce and are serenaded. It was a magical changing operations. going back to the basics moment that even weeks later, I’m still thinking about. I’m But retailers need to of what makes shoppers pretty sure that the other shoppers are also still thinking understand exactly go to your store in the about it, especially when it’s time for them to decide where what their challenges first place: a magical to shop for next week’s groceries. and opportunities are experience. After all, I’ve been thinking about how this experience relates to the before investing in more there’s no AI solution “AI revolution” in retail, over the past couple of weeks as AI applications during that will put on a glitwe at Progressive Grocer engage in intricate planning for the what’s shaping up to be new year. This month, The Sun newspaper asked generative another challenging year tery Santa hat, strap on a guitar, sing Christmas AI chatbot ChatGPT to pretend to be Nostradamus — the for the bottom line. carols while parading 16th-century soothsayer — and make some prophecies for around the store and 2024. The bot predicted that a “revolution” of its own spark joy for hundreds of shoppers. kind is coming that will represent the “fusion of human ingenuity and At least for now. artificial intelligence.” This technology is poised to have a major impact on the coverage, content and events at Progressive Grocer. From our GroceryTech event in June to our Grocery Impact event in November, GenAI is the hot topic that everyone wants to learn more about: specifically, harnessing the AI opportunity to accelerate growth. If you’re planning to attend NRF’s Big Show in New York this month, Gina Acosta there will be at least 35 educational sessions focused on AI (I may have Editor-In-Chief missed a few). Meanwhile, FMI Midwinter, also this month, has at least gacosta@ensembleiq.com five sessions scheduled on the implications of AI for the grocery industry. Certainly, this year, grocery retailers will face an onslaught of pressure to embrace this powerful tool as a way to cure every operational ill. From point of sale to pricing compliance to inventory management, social commerce, networking visibility, retail media and so much more, AI is forever changing operations. But retailers need to understand exactly PROGRESSIVE GROCER Januar y 2024
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IN-STORE EVENTS
Calendar S
03.24
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National Nutrition Month National Peanut Month National Sauce Month Quinoa Month
Berries and Cherries Month National Celery Month National Frozen Food Month National Noodle Month
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National Fruit Compote Day. Offer lower-sugar versions of this sweet treat for those who want to eat more healthfully.
Read Across America Day. Run a book-reading contest for kids, with the contestant who finishes the most in a given time period named the winner.
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National Cold Cuts Day. Celebrate in the deli with a cool deal: Buy one deli meat sandwich, get another at half price.
Pretzel Sunday. Remember to crossmerchandise this always popular snack with beer and soda.
St. Patrick’s Day. Raise a glass of (green) beer to celebrate.
National Cocktail Day. Make a point of including mocktail options.
World Obesity Day. Empower your retail dietitian and other experts to hold an online presentation on the risk factors of and possible solutions to this global issue.
Oatmeal Nut Waffle Day. Publish a recipe in your online newsletter to make lazy weekend brunches even more delicious.
Wellderly Day. Introduce in-store programs to demonstrate that age is just a number, after all.
Tolkien Reading Day. Any “Lord of the Rings” fans on your staff can really go to town.
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Easter. Have candy, egg-dyeing kits, lamb for roasting and other holiday essentials ready to go.
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National Town Meeting Day. Now is the time for your company to hold its own version of this venerable event.
National Working Moms Day. Uncover the pain points of this demographic among your associates, and then make changes to help them work even more effectively.
National Backyard Day. On this first day of spring, prompt customers to buy patio furniture, grilling supplies and more.
Make Up Your Own Holiday Day. Just ensure it includes plenty of food!
National Dentist Day. Shoppers can ensure a favorable checkup with items purchased in the oral care aisle.
National K9 Veterans Day. Salute these fourlegged heroes.
National Proposal Day. If the happy couple gets engaged in your frozen food aisle, don’t forget to share the good news on social media.
Quirky Country Music Song Titles Day. Brainstorm selections with your associates and then create a curated playlist for customers to enjoy while they shop.
Plant Power Day. Make sure your customers are aware of all of the items you carry in this burgeoning category.
Popcorn Lover’s Day. Poll your customers to find out what the best toppings are, and provide suggestions to spice up the next movie night.
National Teenager Day. Highlight on your website the adolescents who work in your store(s), and encourage the standouts among them to pursue grocery careers.
National Triglycerides Day. Encourage shoppers to know their numbers by getting in-store health screenings.
National Oregon Day. What food and drink products is the Beaver State known for?
World Consumer Rights Day. Make your shoppers aware that if they’re dissatisfied with a purchase or service, they have the right to request a refund.
Daffodil Day. Spotlight this seasonal bloom in your floral department.
National Pita Day. This handy Middle Eastern pocket bread is great to have around.
National Dishwasher Day. Steer customers to the aisle where they can get products to keep this trusty appliance running smoothly.
Maple Syrup Saturday. Hmmm, will it be pancakes or waffles for breakfast?
National Chia Day. Provide recipes incorporating this good-for-you seed.
National Folding Laundry Day
Building a brand takes balance.
CLA has a deep understanding of industry issues facing both the brick-and-mortar and e-commerce retail spaces. We’ll help you take care of the practicalities of creating, growing, and running a retail business, so you can bring your vision to life. Get started now at CLAconnect.com/nourish.
©2023 CliftonLarsonAllen LLP. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor.
HONORING
the BEST of 2023 Your customers are grateful for your commitment to offering the best-tasting and best-sourced beef available, and so is Certified Angus Beef. Congratulations!
Grocery Marketers of the Year
FRONT END
Shelf Stoppers
Dairy Products
Average Unit Prices
Total Department Performance Dairy Products
Latest 52 Wks W/E 12/02/23
Latest 52 Wks YA W/E 12/03/22
Latest 52 Wks 2YA W/E 12/04/21
$93,486,627,898
$89,499,948,923
$79,678,156,279
Top Dairy Categories by Dollar Sales Cheese
Milk Products
Beverages
Yogurt
What are average unit prices for dairy products versus the year-ago period?
Eggs
$20,000,000,000
$3.61
15,000,000,000
for all dairy products, up 6.9% compared with a year ago 10,000,000,000
5,000,000,000
$4.31
0
Latest 52 Wks 2YA W/E 12/04/21
Latest 52 Wks YA W/E 12/03/22
Latest 52 Wks - W/E 12/02/23
for eggs, up 8.1% compared with a year ago
Source: NIQ, Total U.S. (All outlets combined) — includes grocery stores, drug stores, mass merchandisers, select dollar stores, select warehouse clubs and military commissaries (DeCA)
Cross-Merch Candidates Diapering Needs
Toaster Pastries
Fruit Snacks
Marshmallows
Meal Combos
Sauce and Seasoning Mixes
Bread
Snack and Variety Packs
Dough and Batter Products
$3.90
for cheese, up 4.1% compared with a year ago
Sour Cream Products
Generational Snapshot Which cohort is spending, on average, the most per trip on cheese?
$3.65
for beverages, up 7.8% compared with a year ago Millennials
Gen Xers
Boomers
The Greatest Generation
$7.73
$7.54
$6.91
$6.31
Source: Nielsen Homescan, Total U.S., 52 weeks ending Nov. 25, 2023
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Source: NIQ, Toal U.S. (All Outlets Combined)
MINTEL CATEGORY INSIGHTS
Global New Products Database
Frozen Breakfast Foods What You Need to Know
Show consumers how frozen breakfast can balance convenience with taste, quality, variety and even nutrition. Expanding occasions can help frozen breakfast foods grow, and proven versatility is the place to start with innovation and positioning. Products that can flex to fit different occasions, preparation methods and cravings will help create a more customized and personalized experience.
Market leaders hold strong with familiar and well-established frozen breakfast brands, but the opportunity remains for emerging players and retailers to bring more variety to the category as consumers see the value and quality of store brands and aren’t significantly tied to familiar brands when trying new products.
Consumer Trends: Key Takeaways
55% of consumers are interested in products with high protein, while around half are interested in single-serve and resealable packaging. 51% of consumers agree that frozen breakfast foods are the most convenient option; speed and ease of preparation set the market apart.
of consumers try new frozen breakfast products at least sometimes, with Gen Z and Millennials most likely to try them frequently.
FOR MORE INFORMATION, VISIT WWW.MINTEL.COM OR CALL 800-932-0400
Opportunities Bringing convenience to consumers in versatile ways that are relevant to different demographics and life stages will help grow occasions and uses. Packaging, format and preparation should all be considered. There’s room to show that frozen breakfast can be more than a weekday warrior. Help consumers customize frozen breakfast to meet different needs and preferences, and showcase how products can stand alone or be a meal starter, depending on the day. Protein aligns with value, especially at the breakfast occasion as consumers look to start their days off right by prioritizing this nutrient. The combination of satiety and convenience can differentiate frozen breakfast foods from other breakfast food options.
PROGRESSIVE GROCER Januar y 2024
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ALL’S WELLNESS
By Barbara Ruhs, MS, RDN
Why Dry January? TAKE A LOOK BEHIND THE RISING NUMBER OF CONSUMERS CHOOSING TO DRINK LESS ALCOHOL. ry January continues to gain momentum as sober-curious customers are increasingly focused on health and mental well-being. With conflicting evidence on the benefits and risks of consuming alcohol, many consumers are searching for ways to still enjoy the taste and social aspects of drinking without having to give it up altogether. Let’s explore the trends in healthier nonalcoholic beverages that are helping customers on the journey toward improved health.
Alcohol and Health
According to Mintel, nearly half of consumers abstain from alcohol to improve physical and mental health. Even in just one month of abstinence, regular drinkers reported better sleep, more energy, weight loss, improved skin appearance, and a reduction in blood pressure and blood sugar levels. The negative impacts that alcohol has on an individual depend on various factors, including genetics, health status, overall hydration, and the duration (timeframe) and dosage (amount) consumed. The danger in consuming alcohol is a result of how the body metabolizes it into acetaldehyde, a chemical that’s toxic to cells and causes damage to DNA. Alcoholic beverages have been consumed in cultures around the globe for centuries, but the notion that drinking improves overall health is misguided. As part of the U.S. Dietary Guidelines, alcohol is included with recommended daily limits: one drink per day for women and two for men. Confusingly, these recommended daily limits aren’t meant to be averaged over a week, so consuming two or three drinks in a day is considered excessive consumption. Alcohol consumption is a leading preventable cause of death in the United States, and long-term exposure (over a lifespan), as well as excessive intake, increases the risk of more than 200 diseases, including cancer, heart disease, liver and pancreatic disease.
Nonalcoholic Beverage Innovation
As more consumers want to enjoy alcohol without the negatives, they’re opting for frictionless alternatives that make it easy to swap from alcoholic to nonalcoholic. As a result of decreased alcohol consumption, especially among younger generations, according to Gallup, the global adult beverage industry is shifting to meet demand as consumers are seeking sophisticated mocktails that go beyond a Shirley Temple. The beer, wine and spirits categories have exploded with innovation led by many smaller craft brands that have a passion for creating better-tasting and better-for-you alcohol alternatives. Many of these brands have reinvented how products are made, the ingredients used and how products are marketed successfully to consumers. Among these brand disruptors offering nonalcoholic products are Athletic Brewing (beer), Ritual Zero Proof (spirits), Leitz (wine), Seedlip (herbal botanical spirits) and Ghia (aperitif). Today, many of the largest and most recognized global alcohol brands are offering nonalcoholic versions to provide a wider variety of choices and ex-
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As more consumers want to enjoy alcohol without the negatives, they’re opting for frictionless alternatives that make it easy to swap from alcoholic to nonalcoholic. panding the customer base to audiences that typically avoid the beer, wine and spirits section of the store: athletes, pregnant women, and those suffering from long-term chronic health issues. Industry data indicates robust growth in the nonalcoholic beverage sector now and into the future. According to NIQ, the global nonalcoholic beverage sector between 2021 and 2022 was valued at $395 million, showing year-on-year growth of 20.6%. Datassential’s “Future of Drink” report, released in October 2023, provides a look at the top trends that retailers need to tune into to win sales in the adult beverage category in 2024 and beyond. While customers seek to avoid the negative impacts of alcohol consumption, at the same time, they’re also seeking beverage alternatives with health benefits: less sugar; made with natural herbal and botanical ingredients; added vitamins, minerals, antioxidants and plant nutrients; and choices that contribute to improved hydration. Success in this segment appears to hinge on better-for-you attributes, exceptional taste and flavor, and innovative marketing to engage and expand the targeted audience. Barbara Ruhs, MS, RDN, is the owner of MarketRD.com, a marketing agency that provides nutrition and health strategy to food brands. A former retail dietitian (RD), she launched and directed an annual supermarket RD symposium for eight years. Connect @BarbRuhsRD on Instagram and LinkedIn.
FEATURE
2024 Retail Innovation Outlook So, as the new year begins, the country’s leading grocers are moving ahead with cautious optimism, planning as much as they can and focusing on where they should innovate in several key areas that are likely to provide growth or, at the very least, a better store experience. Just a few of the areas ripest for innovation are: Signage and promotions centered on value (including a focus on their own brands); Health-and-wellness-related initiatives, ranging from trends like plant-based foods and functional beverages to dietitian services and a return to the family meal; Better in-store dining and takeout options to attract the post-COVID shopper who’s tired of cooking; More sustainable store design and operations; and A renewed focus on labor, viewing the employee experience as the last mile of the customer experience.
New Year’s Innovations
Grocers are focusing on several key areas as they look to grow their business in 2024. By Jenny McTaggart
T
here’s nothing like a new year to inspire fresh thinking. While there are differing views on how 2024 will turn out — depending on whom you ask, the economy could improve or the stock market will crash, and the Albertsons-Kroger merger could put many supermarkets out of business or independents will thrive — retailers have learned over the years that it’s smart to plan ahead and hope for the best while being prepared for anything.
Value Is King
Even though price inflation is expected to continue to moderate in 2024, smart retailers know that these days, a good deal goes a long way. Juan Romero, president and CEO of API(+), a retail design, branding and architectural firm based in Tampa, Fla., has observed a few retailers setting up at store entrances “dump tables” with deeply discounted items, along with more eye-catching promotional signage. He expects this trend to continue, especially among grocers that
Key Takeaways Cautiously optimistic grocers are focusing on innovation in several key areas, including value-centered signage and promotions, health and wellness, in-store dining and takeout, sustainability, and labor. Most of the innovation occurring in stores is related directly to the shopping experience. Investing in associates will be key to creating satisfied customers. PROGRESSIVE GROCER Januar y 2024
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FEATURE
2024 Retail Innovation Outlook operate stores in more economically strained locations. Private brands will also continue to play a starring role in providing better deals for shoppers, but at the same time, we’ll see leading grocers further developing their strategies to include bolder flavors and functional attributes such as gut health, mental health and immune health, predicts Jim Griffin, president of Stamford, Conn.-based Daymon North America. “Private brands continue to gain share and outpace national-brand performance, with nearly double the dollar growth of national brands from November 2022 to November 2023,” he observes. “With up to 98% of national-brand assortments the same across retailers, private brands are the strongest strategic lever to drive differentiation and loyalty, and better meet shopper needs — leading to widespread retailer focus and investment in 2024.” Four particular trends that Griffin expects to see in regard to private label include a focus on program fundamentals, including long-term supplier relationships and best-in-class quality testing; further flavor development (think bolder flavors and new flavor combinations); more sustainable assortment options; and value-added functional products. “I believe the industry is just getting started in meeting demand for products that are functional in nature and target consumer ability to operate at peak performance,” he adds, noting that this trend extends across food and nonfood categories, from beauty and personal care to ready-to-drink beverages and snacks.
Health and Wellness Amplified
Indeed, with an aging Baby Boomer population and a 24/7 connected society that’s keenly aware of the impact of stress on health, the wellness trend isn’t going anywhere and will continue to broaden its reach in grocery retailing. In addition to new functional food and beverage introductions, plant-based foods are another trend that will likely continue their growth in 2024. Julie Emmett, VP of marketplace development for the San Francisco-based Plant Based Foods Association (PBFA), notes that 79% of recently surveyed consumers say that they’re eating plant-based foods, and the sector now spans 30 major categories in grocery stores. The strongest-selling categories of late include plant-based eggs, seafood, ready-to-drink beverages, protein powders and creamers, but look for even more variety this year, such as an increase in bolder global flavors, plant-based prepared foods and frozen foods. Austin, Texas-based Whole Foods Market included the plant-based trend in its list of Top 10 Food Trend Predictions for 2024,
Hannaford's Plantsgiving campaign, developed with the Plant Based Foods Association (PBFA), has created new interest in the category. PBFA has more marketing activities on tap for 2024.
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“Private brands are the strongest strategic lever to drive differentiation and loyalty, and better meet shopper needs — leading to widespread retailer focus and investment in 2024.” —Jim Griffin, Daymon North America
with one caveat: “Put the ‘plant’ back in plantbased.” It’s likely that several suppliers will comply with this request. To maximize the success of plant-based foods, Emmett advises retailers to merchandise them alongside their conventional counterparts and incorporate them into storewide promotions. Grocers that have worked with PBFA on promotions in the past include Hannaford, which has run a successful Plantsgiving campaign to coincide with Thanksgiving for the past two Novembers. While PBFA declined to share specific details on retailer promotions for 2024, a spokeswoman notes that there are some new retailer shopper marketing activities on the horizon. Another way that retailers can promote healthier living this year is by highlighting the importance of having meals together as a family. The recent winners of the FMI Foundation’s 2023 Gold Plate Awards demonstrate some innovative ideas: West Des Moines, Iowa-based Hy-Vee, the winner among retailers with 200-plus stores, was recognized for its expansive campaign tied into National Hispanic Heritage Month that focused on helping families find quality time together at meals. Incentives for Hy-Vee Kids Club members included a way to track family meals throughout the month, and a free cookbook featuring kid-friendly recipes received more than 1,000 downloads. Meanwhile, midsize winner K-VA-T Food Stores, based in Abingdon, Va., was lauded for its Stay Strong with Family Meals: Meals Made for Sharing campaign, which promoted USDA’s MyPlate for meal planning and used registered dietitians for messaging in TV segments and social media videos.
As the world moves further into a post-COVID era, customers can expect to see more in-store foodservice innovations like this sleekly designed Press Coffee Roasters shop inside a Sprouts Farmers Market in Phoenix.
Let’s Eat at the Supermarket
Romero, of API(+), notes that most of the innovation he’s seeing in stores is related directly to the shopping experience — and nowhere is this more apparent than with in-store dining. “There’s lots of movement toward in-store dining and making that a more pleasurable experience than the old idea [of] ‘We’ll use the leftover space by the deli and put two tables and four chairs,’” he observes. Some independent retailers have thrived in this space, since they tend to have more flexibility than the big chains, adds Romero. In just one example, Phoenix-based Sprouts Farmers Market has revealed plans to roll out four more in-store Press Coffee Roasters shops this February, following a yearlong pilot. Each coffee bar will feature a workspace area and a full drink menu, along with a selection of regular in-store retail items, including whole and ground coffee beans. Romero points to Anaheim, Calif.-based Hispanic grocer Northgate González, where the prepared food presentation in its newest stores is like a “food hall” where you can taste something new at every turn, or Winston-Salem, N.C.-based Lowes Foods, whose latest locations feature such attractions as a Beer Den, a Smokehouse, and a “Community Table” where shoppers can gather and try something new. Romero says that he expects to see more of these foodservice innovations, especially now that the COVID-19 pandemic is further behind us and people are looking to enjoy a more social experience when they shop. Salad bars and other to-go meal solutions will also continue to pop up at a rate more akin to pre-COVID times, and savvy retailers
may look to brand their to-go offerings, he adds. The Kroger Co., for one, is clearly focused on this trend, as the Cincinnati-based company recently revamped its Home Chef Fried Chicken to be crispier and more flavorful than before.
‘Cleaner’ Operations
On the operations side, many retailers will aim to be “cleaner,” whether that’s through more sustainable sourcing practices, or literally by offering cleaner stores, which is yet another way to differentiate, notes Romero. He also expects more grocers to focus on store safety and security, whether that’s by using technology, rethinking store layout or just having more employees on hand to eyeball what’s happening. “We may see architecture that’s more open, as well as more natural light in stores, which will help associates feel safer, too,” he notes. As for sustainability, Washington, D.C.-based Fairtrade America cites several sustainability-focused trends in its forecast for the food and beverage sectors in 2024, including sustainable and ethical sourcing, brand transparency and accountability, private label brand growth, and the continued rise of regenerative agriculture. Fairtrade points out that while “regenerative” will continue to be a buzzword in the food industry, there’s no clear consensus on what the PROGRESSIVE GROCER Januar y 2024
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FEATURE
2024 Retail Innovation Outlook not doing anything because we are waiting for the ‘perfect’ solution. The reality is, it doesn’t exist. It’s a suite of integrated solutions that create a system. Let’s not get caught up with perfection, but focus on getting started.”
Employee Experience as the Last Mile
A ‘Beast’ of a Collaboration Albertsons’ Safeway banner recently demonstrated innovation in another up-and-coming area — social media marketing — when it took part in a clever collaboration with digital creator and philanthropist Jimmy Donaldson, known on social media as “MrBeast.” Safeway was featured in a challenge called “Survive in a Grocery Store,” in which contestants won $10,000 for each day they continued living inside a Safeway store, provided they chose $10,000 worth of products to give to a local charity. After being approached by MrBeast, Boise, Idaho-based Albertsons and the Safeway team worked to create a functioning store site for the challenge. The space included seasonal areas and specialty sections centered on special occasions. Several CPG companies and solution providers got in on the challenge, too. “Safeway has a longstanding history of giving back to the community, so when we learned of this incredibly fun and unique opportunity to partner with MrBeast and help our neighbors in need, we were thrilled,” explained Jennifer Saenz, EVP and chief merchandising officer at Albertsons, early last December. “Our collaboration with MrBeast furthers our mission to break the cycle of hunger as part of our Recipe for Change environmental, social and governance framework. We’re also introducing MrBeast’s fanbase to the extensive assortment of popular products they can find in their local Safeway store.”
term really means. The group challenges businesses, producers and retailers to define and implement such practices, letting farmers take the lead. Whole Foods, for its part, called out water stewardship (one area related to regenerative agriculture) in its top 10 trend list for 2024, noting that “brands across the aisles are promoting water conservation, and consumers are listening.” Ben Kuethe, VP of customer solutions at Divert, a Concord, Mass.-based solutions provider that creates advanced technology and sustainable infrastructure to prevent wasted food, shares his view that as retailers’ 2030 ESG goals close in and mandates take hold, “it’s time to transition from evaluating and piloting to implementation.” He observes: “We often get caught up in 16 progressivegrocer.com
As retailers look for new ways to make the shopping experience better this year, they’ll also need to focus on their labor force, perhaps even more so than in the past, according to Will Eadie, chief revenue officer at global digital workplace solutions provider WorkJam. Eadie says that retailers are now looking at their employees’ experiences as the last mile of customer experience. “We’ve already seen where retailers have spent 20 years investing in the customer experience, and rightfully so,” he notes. “What they’re realizing now is that in order to continue getting value out of that, or even increase the basis points of the ROI on customer experience, you have to bring employees into that loop. So you’re going to start seeing things like workflows happening with all the pieces of labor solutions living together — things like communications, tasks and flexible scheduling, with front-line learning thrown in.” Real-time digital collaboration between headquarters and stores will be a big trend in 2024, he predicts. “Retailers need to be able to get new information down to the front line,” he explains. “For example, if they’re rolling out self-checkout, they need to better engage all the front-line associates in all their stores by properly training and staffing them.” Meanwhile, providing work-life balance with more flexible scheduling, better communication and empowerment will be paramount with the younger workers whom grocers need to attract, observes Eadie. “For Millennials and Gen Z, communication isn’t just something they’d like to have at a job; it’s an absolute must-have,” he asserts. “I’ve heard it said best: ‘Hey, communication is respect. Don’t just tell me what I’m expected to do in my role. Tell me what the company is about and what you’re doing to make the world a better place, and to make our workplace better.’”
“We’ve already seen where retailers have spent 20 years investing in the customer experience, and rightfully so. What they’re realizing now is that in order to continue getting value out of that, or even increase the basis points of the ROI on customer experience, you have to bring employees into that loop.” —Will Eadie, WorkJam
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EQUIPMENT & DESIGN
Refrigeration
Leading the Way on Sustainable Stores HUSSMANN R AMPS UP INNOVATION WITH REGARD TO GREENER REFRIGER ATION SOLUTIONS. By Gina Acosta
rocery retailers are under pressure to re-evaluate their refrigeration equipment and systems, due to environmental, social and governance (ESG) initiatives and government regulations, either in place now or going into effect soon. Progressive Grocer talked to Lianne Tombol, VP, portfolio solutions at Bridgeton, Mo.-based Hussmann, about what the food retailing leader is doing to help retailers overcome these challenges. Progressive Grocer: Lianne, let’s talk about your background. Tell me about how you came to your role at Hussmann and how you became an expert in commercial refrigeration, among other areas. Lianne Tombol: I started with Hussmann in 1997, so I’ve been with the company for over 26 years in a variety of capacities. I started out in product management and marketing; then I moved into a sales role in the Canadian region. I was promoted to general sales manager for Hussmann Canada in 2010. In 2018, I was asked by Hussmann to take on a new role and relocate to Georgia to lead our refrigeration systems and Krack product portfolios. I work with the product management and design engineering teams in Suwanee, Ga., as well as in our offices in India and Monterrey, Mexico. It has been an incredible journey, with great talent and customers. PG: It has been an incredible journey, especially because you are one of few women leading in this area of the industry. LT: Yes, there are a few reasons why I’ve taken on some of those leaps. I want to help attract more women to the refrigeration industry — into roles that traditionally they might not be aware of. I took on the role to move to the United States for additional growth and development opportunities. I like to show there are limitless career possibilities in refrigeration – if I can do it, I recommend others to stretch their abilities as well and take the initiative. PG: How has commercial refrigeration changed over the years, specifically at retail? LT: From an energy effi ciency and sustainability perspective, there are some dramatic changes, not only from a compliance perspective, with new legislation, but also in terms of smarter refrigeration systems and alternative cooling technologies. There’s an emerging need for connected technologies enabling the grocery merchandisers in a retail environment to be able to integrate and communicate with HVAC and refrigeration systems, driving even greater energy effi ciency and optimization.
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There’s also been a move toward natural refrigerant solutions with a lower global-warming potential (GWP). This has affected the way we design our equipment for our retailers. Many retailers have publicized ESG goals, and with that we are continuously innovating to develop products and solutions to enable them to achieve their goals. Over the past few years, we have seen a change in the size of grocery formats. Grocery retailers have multiple formats now, without the larger mechanical rooms. We have re-engineered our Protocol solution, which is ideal for smaller formats, and adapted it for new refrigerants. It is ideally suited for those small-format locations that are going to need natural refrigerant technologies. This is just one example of a Hussmann product line undergoing a transformation. PG: What does Hussmann have new this year to help grocery retailers meet or exceed regulatory requirements? LT: We continue to partner with our customers to work toward creating a better world. We have been investing significantly in terms of our low-GWP refrigerant portfolio, recently launching our Evolve Technologies, a comprehensive portfolio of sustainable refrigeration solutions. Retailers are looking for Hussmann to have the capacity and solutions available for them to be able to meet their goals and comply with the emerging regulations. We are investing and have expanded production capacity for transcritical carbon dioxide (CO2) rack systems. We are continuing to evolve our propane solutions. We just launched a propane option for the walk-in cooler and freezer boxes. Now retailers can use propane, and their entire store can utilize a natural refrigerant refrigeration solution. PG: Wow. LT: We’ve also done a signifi cant amount of innovating with our propane Monoblock. We are continuing to evolve our models. So far, we have launched seven models. Today, we have a really nice portfolio of propane and CO2 solutions and offer many of our merchandisers with low-GWP refrigerants.
PG: Are U.S. retailers demanding one more than the other, transcritical CO2 versus propane? LT: That’s an interesting question because as an industry leader, we work together with many retailers, and each one has diverse needs. Some are firmly in the propane arena, and others have adopted transcritical CO2. Hussmann plans to provide the broadest, most comprehensive portfolio of refrigeration solutions to continuously deliver those options to our retailers. It’s not one size fits all, and it really depends on various criteria. PG: What are you hearing from your retail customers when it comes to the kind of innovation they want from Hussmann? LT: Creating the ideal shopping experience for the customer is at the core of what we do. We collaborate with our customers and provide transparency in how the system should be designed — ensuring on-site support with startup commissioning. And when it comes to innovation, we make sure our solutions are energy efficient and delivering not only on the compliance and sustainable results needed, but also ensuring that our merchandisers and systems are user-friendly. Our customers greatly value Hussmann’s partnership in the aftermarket service and support. Serviceability is critical. Customers also want parts to be readily available and to have the training and support they need from Hussmann. They want the
“In the future, grocery retailers are going to need more solutions related to e-commerce, solutions that support dynamic shopping behavior. They will also need connected solutions that allow retailers the ability to see how the system is performing to be more proactive in optimizing the performance of their equipment. In addition, they are going to need our help with leak detection solutions and technician training.” —Lianne Tombol, VP, Portfolio Solutions, Hussmann
equipment to be less complex, and we are here to try to simplify it. We are moving to a world of readily available information, with QR codes on our products, so it’s easy for a technician to be able to quickly access the details that they need. PG: Looking long-term into the future, how do you see Hussmann helping retailers stay competitive? LT: My team is leading a significant, accelerated journey of innovation right now surrounding our low-GWP refrigeration solutions, especially focusing on our CO2 portfolio. We are making sure that we are ready with a comprehensive offering before our retailers need us. In the future, grocery retailers are going to need more solutions related to e-commerce, solutions that support dynamic shopping behavior. They will also need connected solutions that allow retailers the ability to see how the system is performing to be more proactive in optimizing the performance of their equipment. In addition, they are going to need our help with leak detection solutions and technician training. These are just a few things we see in the future of food retailing. As our retailers evaluate the best path forward, we will be in lockstep with them, helping them meet their goals.
ADVERTORIAL
Progressive Grocer spoke to Mattie Hays, Alexia Marketing Manager, Retail for Frozen Potatoes & Onion Rings about evolving consumer preferences and how grocers can stay at the forefront of culinary trends. Progressive Grocer: What do you see as the most significant changes in America’s taste buds right now? Mattie Hays: That’s a great question. The demand for more diverse global flavors is really on the rise. Hispanic, Indian and Asian cuisines have emerged as the fastest-growing segments, according to recent SPINS data. In fact, Mexican, Asian and fusion dishes are projected to be the culinary stars of the next three years. And millennials, in particular, are steering this shift with over 90% of millennials eager to explore new foods and indulge in bold, authentic flavors according to some recent research from IRI. That’s why we’re so excited about our newest Alexia product line where we bring bold global flavors to our customers. PG: What impact are we seeing in frozen foods as consumers seek out zesty choices? MH: The frozen aisle is about to experience a flavorful leap with the arrival of our all-new Alexia Spice of Life roasted diced frozen potatoes. Our newest innovation introduces three dynamic flavors—Cilantro Lime, Indian Curry, and Thai Inspired Basil Chili—that were born from a collaboration between Alexia and Spiceology. Alexia is a proven leader in the segment and these proprietary custom spice blends keep the momentum going. These new potatoes boast all the same high-quality, non-GMO, clean and simple ingredients that our customers have come to love and expect from Alexia, with a new twist!
are easily prepared in an air fryer or oven, —and don’t require a passport to enjoy the delicious, globally inspired flavors. PG: What can retailers do to keep up with the evolving world of frozen foods? MH: Retailers can take stock of their current offerings at shelf and make sure there’s opportunity to provide their customers with global flavors. Alexia Spice of Life roasted frozen potatoes are the perfect way to add excitement to shelves and a multitude of recipes alike. They’re ideal for retailers looking to stay at the forefront of culinary trends and provide uniquely flavorful experiences that surpass anything they’ve ever encountered in the frozen aisle.
PG: Some research reveals that more than half of Americans consider themselves adventurous eaters and have tried a variety of cuisines. How can grocers be on the vanguard of offering products to match their palates? MH: Alexia’s Spice of Life roasted frozen potatoes are perfectly poised to satisfy the many curiosities of adventurous food enthusiasts as they seek out new, elevated taste experiences. Our products
For more information about Alexia’s newest line, scan the QR code and contact the Lamb Weston Sales team today.
COVER STORY
Top Regionals
MASTERS OF THEIR UNIVERSE
These eight operators are differentiating by putting local and customer experience front and center. By PG staff
A
mid all of the chatter about consolidation in the grocery industry, a few regional grocers are beloved by shoppers for doing all of the things that the larger competitors find difficult; that is, offer a rich and rewarding customer experience. Whether that means installing customizable salad bars (Schnucks), or offering multicultural foodservice stations (Stater Bros.), or investing in retail media and personalization (Northeast Grocery), these operators are kicking off the new year impressively. Progressive Grocer has identified eight Top Regionals as worthy of the distinction:
NORTHEAST GROCERY INC.
Headquarters: Schenectady, N.Y. Store Count: About 300 CEO: Frank Cursi Operating Area: New York, Massachusetts, Vermont, Connecticut, Pennsylvania and New Hampshire Since its formation through the merger of Tops Markets LLC and Price Chopper/Market 32 in November 2021, Northeast Grocery Inc. (NGI) has been adopting cutting-edge solutions to enhance the shopping experience of customers at its well-known banners. Case in point: A June 2023 partnership with Instacart, which already powered the company’s e-commerce websites and apps, brought both retail media networks and enhanced e-commerce shopping experiences to Tops and Price Chopper/Market 32. Under the partnership, NGI can deliver more personalized recommendations to shoppers, as well as offering custom online coupons. Additionally, Instacart’s Carrot Ads enables brands to advertise directly on Tops’ and
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Price Chopper/Market 32’s e-commerce platforms and apps. NGI also established a multiyear agreement in December 2022 with DemandTec by Acoustic, under which an existing relationship with Tops to use DemandTec’s Unified Lifecycle Pricing solution, which includes pricing, promotion and collaboration, was implemented by Price Chopper/Market 32 as well. NGI’s merchandising team and CPG trade partners can use DemandTec’s AI-driven platform to strategize, forecast, plan, optimize and execute pricing and promotion strategies, enabling both Tops and Price Chopper/ Market 32 to improve price perception, make smarter promotional decisions and serve their customers with the best products at attractive price points. Meanwhile, in a bid to boost its presence in New York state’s Capital District, Price Chopper/Market 32 purchased the leases, store equipment and fixtures of five former ShopRite stores in the region this past November, with the aim of rebranding at least two of them as Market 32 locations. At the same time, Tops has been improving its stores with a remodeling program over the past several years, opening in December 2023 its 40th location to be updated with a new look and a renewed focus on fresh departments.
LOWES FOODS
Headquarters: Winston-Salem, N.C. Store Count: About 82 President: Alex Lee Operating Area: North Carolina, South Carolina, Virginia and Georgia Lowes Foods is bringing its chicken dance to a new state: Georgia. The popular grocer famous for its fun customer experience (including a dance among customers and employees when there’s fresh chicken available in the case) has revealed plans to open its first store in the Peach State after acquiring Foothills IGA Market in Marble Hill, Ga. The store, which will continue to operate as an IGA for the next few months, will become a Lowes Foods store sometime in early 2024. The grocer is also growing its footprint
in South Carolina. It will open its fifth location in the Charleston market, in Summerville, in 2025. The Summerville store will measure 50,887 square feet and anchor a new retail center between two large Berkeley County residential developments. Lowes Foods is in expansion mode even as it sees more competitors invade its operating area every year. At Progressive Grocer’s Grocery Impact event last November, Tim Lowe, head of retail at Alex Lee and president of Lowes Foods, highlighted the ways that Lowes Foods has transformed itself from being considered “bland” to a destination compete with bakery department cakewalks, sold-out beer “hunt” clubs, communal dinners along local Main Streets, and the retailer’s now-signature chicken dance. Lowe calls it “eatertainment,” and it’s that integration of wit and a provocative approach that has distinguished Lowes in its home market in the Carolinas. Ultimately, he added at Grocery Impact, food retailers that take those steps face an open path. “That’s what it’s all about — creating your own destiny,” said Lowe. “It starts with all of you, and it starts with a mindset to think differently on how we approach the business.”
STATER BROS.
Headquarters: San Bernardino, Calif. Store Count: 170 CEO: Pete Van Helden Operating Area: California Shoppers on a quest for delicious food experiences and convenience will delight in the one-stop multicultural food experience that Stater Bros. recently opened in Chino, Calif. Just a few of the items that shoppers will discover include tacos, yakisoba noodles, Korean fried chicken wings, chicharrones, melon bread and Japanese cheesecakes. The 46,109-squarefoot store, which has the words “fresh,” “local” and “healthy foods” emblazoned on its main sign in the front of the store, is the latest location for the 87-year-old California grocer, which now operates 170 locations in that state. “Stater Bros. is very pleased to bring a long-awaited and -needed modern grocery store to the Chino Preserve,” said Stater Bros. CEO and Chairman Pete Van Helden at the time of the store’s opening. “Residents in the community will now have fresh and healthy high-quality food, outstanding customer service, and an unparalleled shopping experience available to them just a short and convenient trip away.” The retailer also recently opened a new store in Ontario, Calif., and has been focused on remodeling older locations. Some of the priorities for the retailer’s store renovation projects include implementing a fresh-cut produce station, introducing a full-service bakery and service deli, and offering freshly made sushi. Among the various other upgrades to enhance the overall shopping experience will be an updated layout to optimize convenience and accessibility, new flooring to create a clean and inviting atmosphere, refreshed restrooms for customer comfort, and refurbished checkstands to ensure an efficient checkout process.
FAREWAY STORES INC.
Headquarters: Boone, Iowa (soon to be Johnston, Iowa) Store Count: 138 CEO: Reynolds Cramer Operating Area: Iowa, Illinois, Kansas, Minnesota, Missouri, Nebraska and South Dakota Fareway Stores Inc. has been a mover and shaker in the nation’s heartland — literally. Over the past year, the family-owned Iowa-based grocer has revealed several store openings, refreshes and even a pending corporate headquarters move. Starting later this year, Fareway will be based in Johnston, Iowa, near Des Moines and about 35 miles south of its original base in the city of Boone. The relocation is a testament to the growth of the business, as CEO Reynolds Cramer explained that the company had run out of space at the Boone office and is also looking to make commutes easier for the many employees who hail from the Des Moines area. Continual movement has been a hallmark of Fareway’s store operations, too. In the past year, the retailer unveiled plans for new stores in the Iowa towns of Hull and Story City. Several store relocations are also underway in Eldora, Spirit Lake and Norwalk, Iowa. Known for its protein selection, including a signature Iowa pork chop and USDA Choice beef, Fareway is also expanding its Fareway Meat Market banner. The latest Fareway Meat Market welcomed shoppers in Kansas City, Kan., this past September. While construction on new sites is in various stages of completion, Fareway has also kept its ribbon-cutting scissors sharp. In the past year, the retailer unveiled locations in Bondurant, LeClaire, West Des Moines and West Clive, all in Iowa. Fareway’s upgrades and expansions prove that it’s not just young retail companies that have a lock on growth mode. In 2023, the grocer celebrated its 85th anniversary, marking the occasion with a trivia contest and gift card giveaway. The legacy independent grocer is building for a brighter future in other ways as well, continuing its longtime investment in sustainability initiatives. In 2023, for instance, Fareway broke ground on a 1-megawatt solar field in Boone, partnering with Alliant Energy. PROGRESSIVE GROCER Januar y 2024
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COVER STORY
Top Regionals
BROOKSHIRE GROCERY CO. Headquarters: Tyler, Texas Store Count: 205-plus CEO: Brad Brookshire Operating Area: Texas
KOWALSKI’S MARKETS Headquarters: Woodbury, Minn. Store Count: 11 CEO: Kris Kowalski Christiansen Operating area: Minnesota
After fondly looking back on its history during its 40th year of business in 2023, Kowalski’s is looking ahead, too. The family-owned and -managed retailer, which currently operates 11 stores in the Minneapolis-St. Paul area, is putting the finishing touches on a new store in Edina, Minn., ahead of a spring opening and is set to open another location in the Ridgedale community in 2025. Expansion has always been a thoughtful process at Kowalski’s, founded in 1983 by Mary Anne and the late Jim Kowalski. They took over the beloved Red Owl grocery store and eventually differentiated their new namesake banner in the Twin Cities by creating a carefully curated assortment in a unique European-style shopping environment. Today, shoppers will find their everyday essentials at their local Kowalski’s Market, but they can also mine the shelves and aisles to discover unique and often exclusive items, from artisan foods created by a nearby woman-owned business, to potato salad that comes from an old Kowalski family recipe, to special-occasion cakes that are created and decorated by expert pastry chefs. An in-store gift shop also sets Kowalski’s apart. In this department — one of Mary Anne Kowalski’s favorite spots in the store — shoppers can browse apparel, decorative accents, toys and presents, many of which are made by local artisans. Kowalski’s pushes its boundaries by offering shipping to fans around the country, including a host of private label products available through its Signature Shop. The owners and their team are also thinking differently when it comes to formats: the new Edina store is located inside a former department store at a shopping mall, and the Ridgedale store will be housed in a former Sears automotive building. “Both communities are ideal because we do not have a presence there,” Mary Anne Kowalski recently told Progressive Grocer.
For 95 years, family-owned and -led Brookshire Grocery Co. (BGC) has striven to remain true to the strong values of its founder. These include remarkable customer service, clean stores, fresh products and strong community support. Through the years, BGC has grown to become a leading regional grocery retailer with 17,500 employee-partners and more than 205 store locations in four states. Stores operate under the banners of Brookshire’s, Super 1 Foods, Spring Market, Fresh by Brookshire’s, and Reasor’s. In December, the company revealed that it expects to break ground on a new Fresh store in Longview, Texas, early this year, with an expected grand opening in 2025. “We are so excited to be bringing the next generation of our incredible Fresh store to the community of Longview,” said BGC Chairman and CEO Brad Brookshire at that time. “Fresh is so much more than a typical grocery store. From our award-winning dry-aged beef program to our restaurant-quality and chef-prepared items, we offer a remarkable shopping experience with all of the everyday staples. This new store will stand as a testament to our company’s plans for growth and our mission to create and deliver exceptional experiences and value to customers through our core values.” This store will be the third location for the Fresh by Brookshire’s banner. The original concept store opened in Tyler, Texas, in 2011, and the second location opened in 2022 in Fate, Texas. Fresh continues to evolve as a favorite destination in Texas for an extraordinary shopping experience with vast culinary and wine selections, along with special events and entertainment. The current Fresh locations feature dozens of chef-prepared entrées, authentic Japanese ramen and Vietnamese pho counters, a taco bar, brick-oven Neapolitan-style pizza, an artisan bakery, a full-service meat and seafood counter, charcuterie and cheese selections, fresh produce with a large variety of organics, and a full-service floral shop. These stores also have a coffee bar, hand-crafted gelato, patio dining, an outdoor café, live music, and on-site parks with children’s playgrounds. Last year, the retailer also grew via its acquisition of three Diamond Food Market stores in Henrietta, Mineral Wells and Aubrey, Texas. PROGRESSIVE GROCER Januar y 2024
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COVER STORY
Top Regionals
SCHNUCK MARKETS
Headquarters: St. Louis Store Count: 115 CEO: Todd Schnuck Operating Area: Missouri, Illinois, Indiana and Wisconsin Last year, legendary Missouri grocer Schnucks opened its second Eatwell Market, in Chesterfield, Mo. The 30,000-square-foot concept store aims to celebrate the nexus of food, wellness and community. Eatwell Market is also a celebration of everything the American grocery shopper wants now: quality products at a good price, with lots of convenience and sustainability features mixed in. Shoppers enter the brightly lit store and are treated to free wellness programs via app, a “brewhouse” coffee bar, a laptop-friendly dining area with free wifi, a kitchen with fresh-baked pizzas and hot soups, a kombucha station, a self-service touchscreen kiosk where shoppers can place deli orders, a Picadeli high-tech salad bar, full-service meat and seafood departments, a beauty department, self-checkout stands, and a hyper-localized assortment. Along with local offerings, the store emphasizes natural and organic foods as well as community events that support customers no matter where they are in their wellness journeys. “This store will allow us to build on our mission to Nourish People’s Lives by offering shoppers a store where they can stay focused on health and wellness while also discovering new, local items,” said Schnucks Chairman and CEO Todd Schnuck at the time of the store’s opening. In addition to introducing new formats, the 85-year-old company is focused on investments in technology (electronic shelf labels and shelf-scanning robots) and store remodels, as well as philanthropic initiatives and customer appreciation events. Further, Schnucks is gearing up for its St. Louis Food & Wine event on Feb. 2-3. Featuring hundreds of wines, a selection of craft beers and culinary delights, the festival will benefit Operation Food Search and the Repertory Theatre of St. Louis.
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GIANT EAGLE
Headquarters: Pittsburgh Store Count: 480 CEO: Bill Artman Operating Area: Pennsylvania, Ohio, West Virginia, Maryland and Indiana While Giant Eagle Inc. is inching closer to its 100th year in operation, the Pennsylvania-based company is proving itself to be as agile as ever. Bill Artman was elevated from interim CEO to permanent chief executive in August 2023, following Laura Karet’s departure after 11 years in the position, and the company’s board believes that it’s poised for a strong future. “Over the past five months, Bill has established a new business strategy and assembled a strong executive leadership team comprised of an accomplished group of professionals with decades of relevant experience who have both a keen understanding of the company’s unique standing as a multiformat retailer and a strong vision for its future,” said board Chairman Bart Friedman when the news broke. During a year punctuated by retail media technology, Giant Eagle took the bull by the horns and launched its own Leap Media Group, designed to provide highly relevant advertising experiences that benefit brands and guests alike. The grocer uses data from its myPerks loyalty program, which encompasses more than 4 million households, and the network has a general reachable audience that spans a whopping 14 million consumers. Further, Giant Eagle has rolled out a number of new, unique solutions for its guests, including a partnership with Allivet.com to offer in-store and online pharmacy benefits such as prescription pet medications and over-the-counter pet products. The grocer has also debuted a two-page version of its circular, which features weekly savings and highlights the strongest promotions in print, with a scan of the displayed QR code directing customers to Giant Eagle’s website to view other weekly sale items. Meanwhile, a new “price lock” campaign debuted last summer amid heavy inflation, and thousands of seasonal items and everyday essentials have since had their prices lowered and locked to help customers save at the register.
SOLUTIONS
Protein
agrees that transparency has become table stakes. “It’s been exciting to see such a passion for sustainability come into focus in our industry over the last few years, and I think a lot of that is consumer driven,” he notes. “We know that today’s shoppers want to know more about their food: where it comes from, how their beef was raised and more about the people who dedicate their lives to providing high-quality beef.”
Making a Point of Transparency
The Transparency Timetable PRODUCERS AND RE TAILERS AIM TO GIVE PROTEIN SHOPPERS THE INFORMATION THE Y CR AVE. By Lynn Petrak t’s clear: consumers want transparency in protein, and those in the supply chain are working to provide it. Various research studies support the widely held notion that people are increasingly interested in knowing how their foods are produced. According to the latest transparency trends report released by Arlington, Va.-based FMI – the Food Industry Association and Chicago-based insights firm NIQ, 76% of grocery shoppers say that transparency is important to them, up from 69% in 2018. Another new survey, from Rahway, N.J.-based Merck Animal Health, found that twothirds of consumers describe transparency in animal protein as “extremely” or “very” important. Transparency in protein covers different facets of production and consumption throughout the farm-to-fork chain, from land stewardship to humane handling to packaging and waste. The 2023 “Power of Meat” study from FMI affirmed the importance of different (and sometimes concurrent) factors, revealing that 85% of meat consumers take into consideration at least one of the four areas of health, animal welfare, plant or social responsibility when buying meat and poultry. Younger consumers tend to place a higher priority on openness, underscoring the longer-term implications of this mindset. A 2023 food and health survey from the Washington,, D.C.-based International Food Information Council (IFIC) showed that Millennials are most likely to care about the sustainability impact of their purchases, followed by Gen Z. David O’Diam, VP of retail at Certified Angus Beef, based in Wooster, Ohio,
As consumers seek out protein products that align with their values, they are getting more choices from brands and retailers. Many new products, especially those from natural and organic brands, feature onpack information with details about the path that the item took to get to the case and to a shopper’s home. Pure Prairie Poultry, of Charles City, Iowa, is one example, conveying messaging through its “Pure” name and on-package language that includes the descriptor “air-chilled,” along with such terms as “all natural,” “no antibiotics – ever,” “100% vegetarian fed” and “no animal byproducts.” “In addition to our products, we want consumers and customers to get to know us from the inside out,” says Brad Vokac, VP of sales and marketing. “Along with our pure, quality offerings, consumers will appreciate that our farmer partners have ownership in
Key Takeaways Consumers have more choices when it comes to transparency, with many new products, especially those from natural and organic brands, featuring detailed on-pack information. As protein organizations use their consumer-facing channels to help people make informed decisions, grocers are tapping into their own resources to enhance transparency with shoppers. While brands and grocers engage consumers directly, other entities in the supply chain work in their own respective ways to foster transparency in protein. PROGRESSIVE GROCER Januar y 2024
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SOLUTIONS
Protein
Pure Prairie Poultry. This is something unique to the industry, and it reinforces our commitment to our relationships.” Seaboard Foods, based in Shawnee Mission, Kan., also puts knowledge front and center. One tagline for the company’s line of Prairie Fresh pork is “It’s good to know where your food comes from.” On its website and other digital platforms, Seaboard highlights its connected food system based on collaboration among farmers, processing plants and supply chain colleagues to control each step in the production process. The company’s messaging outlines its animal care protocols, specially formulated feed program and state-of-the-art processing facilities, among other practices and commitments. “Our deep meat knowledge, marketing support and data-driven consumer insights are the foundation to our partnership,” observed Pat Watkins, VP, retail sales for Seaboard Foods, in a recent blog post. “We know that keeping your shelves stocked with quality pork is how you keep shoppers happy. And that’s what we’re here to help you do.” In addition to individual processors and brands, —David O’Diam, breed-based organizations also make a pointed effort to Certified Angus Beef be transparent to consumers and to retail and foodservice partners. Certified Angus emphasizes the certification of beef products that carry the Angus descriptor, noting that every cut of beef is evaluated on 10 stringent quality standards. “When it comes to animal care, the right way is the only way,” asserts O’Diam. “That’s why we promote Beef Quality Assurance (BQA), the gold standard program for animal care. We encourage our farming and ranching partners to become BQA certified to help tell their story about their commitment to cattle care. Currently, we’re working with the beef community and partners to bolster BQA awareness and co-host events across the U.S.” He adds: “We have new labels on our packaging that highlight our sustainability efforts, and we work with retailers to share the stories of their local farmers or ranchers raising the best beef.” As protein organizations use their consumer-facing channels
to help people make informed decisions, grocers are tapping into their own resources to enhance transparency with shoppers. Austin, Texas-based Whole Foods Market, for its part, publicly shares its standards for proteins, including quality standards for meats and eggs, and welfare standards for broiler chickens. At the top of Whole Foods’ list for meats: transparency and traceability to farm or ranch, followed by no antibiotics ever; no added growth hormones through feed, injection or other methods; and 100plus animal welfare standards for fresh beef, pork, lamb, chicken and turkey. The retailer is also clear about its support for the Better Chicken Project from the Austin-based Global Animal Partnership, which has created research-based protocols for evaluating broiler chicken breeds, based on behavior, meat quality, production and welfare outcomes. Natural Grocers by Vitamin Cottage, a chain based in Lakewood, Colo., also puts out details for transparency-minded shoppers. The food retailer has devised a ranking system for its fresh and frozen meats: The bronze ranking means that products are humanely raised and sustainably farmed or sourced, while silver and gold rankings include the bronze requirements related to animal welfare, drugs and antibiotics, and other environmental practices, along with more regenerative farming practices. Some retail operations are upping their standards for protein suppliers in the wake of growing consumer expectations and demands. In December, Ahold Delhaize updated its climate plan, noting that it’s working with suppliers to reduce the carbon footprint of local brand assortments, including proteins. Among other efforts, the Zaandam, Netherlands-based retail business recommends offering lower-emission protein sources like plant-based alternatives to traditional animal proteins. Store brands can also be a platform for transparency. For instance, Minneapolis-based Target Corp.’s line of Good & Gather deli meats are sold in packages declaring that no nitrates or nitrites have been added and that the products are made without artificial flavors or preservatives. Simply Nature organic chicken breast from ALDI, whose U.S. headquarters is in Batavia, Ill., are described as Certified USDA Organic, free-range, antibiotic-free and a product of the USA, as well as featuring the Good Housekeeping Seal of Approval.
“When it comes to animal care, the right way is the only way.”
Certified Angus Beef has updated its labels at the point of sale to include more information about sustainability and animal care.
Supply Chain Collaboration and Innovation
While brands and grocers engage consumers directly, other entities in the supply chain work in their own respective ways to foster transparency in protein. Certification is a cornerstone of transparency. In the plant-based space, Emeryville, Calif.-based third-party certification group SCS Global Ser-
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vices offers a Plant-Based Certification Program that distinguishes plant-based brands based on rigorous auditing, testing and labeling standards. FoodChain ID is another organization that provides certification and auditing services for products deemed Organic, Non-GMO Project Verified, Plant-based and Vegan. In December, Fairfield, Iowa-based FoodChain ID acquired Organic Certifiers, one of the first certification bodies accredited in the United States for the USDA National Organic Program to include proteins. As technology advances, tech providers are helping protein industry stakeholders improve transparency, especially through traceability. The advent of QR codes allows consumers to scan a protein product at the point of sale to learn more about that product and even the farmer or rancher who raised the animal. Going forward, brands and retailers are likely to harness artificial intelligence for a two-way information exchange with shoppers on proteins that meet their personal value standards. Finally, partnerships within the protein sector help shore up transparency, too. For instance, the Protein PACT is a collaborative effort that unites supply chain sustainability efforts demonstrating progress from farm to fork in a data-driven, transparent way.
Pure Prairie Poultry's farmer partners are part owners in the company, sharing its commitment to all-natural production.
“It started as a partnership with meat, poultry, dairy, feed and animal health participants, but over the last year has expanded to engage retailers, restaurants, international organizations and NGOs all aligned on the common interest of demonstrating progress in ways that are aligned with consumer values and global goals,” explains Eric Mittenthal, chief strategy officer for the North American Meat Institute (NAMI), in Washington, D.C. “No single company or sector can achieve ambitious goals alone, so there has been a great deal of enthusiasm for partnering that we expect will only continue to grow.” According to Mittenthal, through the Protein PACT, NAMI has pioneered the first-ever industry dataset on more than 90 metrics that transparently shows how the industry is progressing toward ambitious goals and supporting healthy people, healthy animals, healthy communities and a healthy planet.
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THE EUROPEAN UNION SUPPORTS CAMPAIGNS THAT PROMOTE HIGH QUALITY AGRICULTURAL PRODUCTS.
PROGRESSIVE GROCER Januar y 2024
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EQUIPMENT & DESIGN
Store Design
Last April, Digby’s Market opened its first store, in St. George, Utah, featuring design expertise from Decorworx (interior) and Design Sequence (exterior).
We carefully examined the demographic information provided to us, such as age groups, interests and preferences. We also conducted additional research to gain a deeper understanding of the target audience’s behaviors and expectations. This analysis allowed us to identify key elements that would resonate with the intended demographic and create a design strategy that would effectively engage them.”
Local and More
Spirit of the Beehive State T WO UTAH INDIES SHOW OFF THEIR CRE ATIVE DESIGN IDE AS. By Bridget Goldschmidt
ast year, independent grocers Digby’s Market and Pioneer Market, both members of Salt Lake City-based Associated Food Stores, opened stores tailored to the particular needs of their respective communities in Utah. Both stores also feature novel design elements that help set them apart from competitors. Digby’s Market, located in St. George, is a ground-up 40,000-square-foot store at 1955 Snow Canyon Parkway. “First off, we wanted to create a bright, fun and inviting store to work and shop,” says Tim Rigby, who owns the store with Gregory Daines. “We wanted to bring in local colors and create that old-style grocery shopping experience.” Cedar City, Utah-based Decorworx was key to creating the atmosphere that Rigby and Daines wanted in their inaugural Digby’s Market location. “For Digby’s, we had a partner who had a clear vision for the design they wanted to achieve,” notes Decorworx VP Tenia Wallace. “They provided us with inspiration photos and ideas that served as the foundation for our collaboration.
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One factor that definitely resonated with the store owners was local. “We tried to use many local products in the building — block from St. George, trestlewood planks from Lindon, and many more,” says Rigby. “We wanted to accent the products that were going to be in the store; our Better in Utah brand is one of those. We built a front counter and made the Sweets & Treats area incorporate these hyperlocal Better in Utah products.” Wallace points out that “we knew we were working on a design that aimed to showcase the unique characteristics of the
Key Takeaways Digby’s Market, in St. George, Utah, teamed with Decorworx on its inaugural store to create a location that aimed that aimed to showcase the unique characteristics of the region. When contemplating changes to an existing store, Pioneer Market’s owner asked his shoppers for their thoughts. Both the new build and the remodel were tailored to meet the needs of their local communities.
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EQUIPMENT & DESIGN
Store Design
Digby’s Sweets & Treats area incorporates the retailer’s hyper-local Better in Utah offerings.
input at key milestones, resulted in what Wallace deems “a visual design that successfully combined the partner’s original ideas with the insights derived from the demographic data. The design not only resonated with the target audience, but also effectively communicated the partner’s message and achieved their objectives.”
‘Artisanal Touch’
southern Utah region. We conducted extensive research on the region’s natural resources and materials that are native to southern Utah. We explored the geological formations, the flora and the cultural significance of the area. We carefully selected elements that would showcase the uniqueness of southern Utah while aligning with the overall aesthetic and functionality of the project.” Another key element was an inviting yet convenient layout. According to Rigby, “We also wanted the store to look timeless, so we incorporated different wood finishes, colors that were in the natural area around us, all while featuring each department separately but cohesively, making the guests’ navigation of the store easier.” Asked how the store design came together, he recounts: “We researched pictures and magazines and visited many other stores. Some ideas even came out of past Progressive Grocer magazine issues! … We brought in different elements such as wood, metal scaffolding, skylights, light boxes, and texture from wallpaper. All this makes it a unique and exciting store to work and shop.” “We brainstormed creative concepts that balanced the partner’s ideas and the demographic data,” adds Wallace. “We explored various design approaches, considering elements such as color schemes, typography, imagery and layout. We presented visual mockups and prototypes to illustrate our proposed design strategy, seeking feedback and input from the partner throughout the process.” A collaborative approach, with Decorworx providing regular updates on the design progress and seeking Rigby and Daines’
“We researched pictures and magazines and visited many other stores. Some ideas even came out of past Progressive Grocer magazine issues!” —Tim Rigby, Digby’s Market
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Among the more novel aspects of the design are the use of large routed sho sugi ban signs, which, Wallace notes, “are truly remarkable and add an incredible aspect to the overall aesthetic.” She explains: “Sho sugi ban is a traditional Japanese technique of charring wood to enhance its durability and create a unique textured surface. When combined with the routing technique, it elevates the signs to a whole new level of visual appeal. These signs not only serve a practical purpose of providing information or wayfinding, but they also become focal points within the space, commanding attention and creating a sense of intrigue. The use of sho sugi ban brings a natural, earthy element to the design, connecting it to the environment and evoking a feeling of warmth and authenticity.” Wallace also notes that “[t]hroughout the design process, we collaborated closely with our craftsmen, leveraging their expertise in working with these materials. Their insights and
Aiming for a timeless look, Digby’s brought in such elements as wood, metal scaffolding and skylights.
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EQUIPMENT & DESIGN
Store Design
In creating the overall look of the store, Decorworx worked with Digby’s on color schemes, typography, imagery and layout.
techniques not only ensured the proper utilization and preservation of the materials, but also added an artisanal touch to the final design. Of course, there were bound to be difficulties. Rigby notes that “our biggest challenge was we knew what we wanted, but [translating] it to the computer and then to the actual building was a chal-
BEST IMPRESSIONS FROM FLOORS TO FORECOURTS AND MORE
lenge. Decorworx really walked us through it and helped us build the vision boards and find the right materials and styles that would be cohesive throughout the store. They used the style of the outside of the store, designed by Design Sequence out of Salt Lake City, and made a cohesive style inside and out.” Given the tendency for setbacks to occur, Wallace identifies the need for flexibility as imperative. “In many cases, there are fixed deadlines associated with events like grand openings, where the completion of construction is crucial,” she observes. “Flexibility plays a crucial role in adapting to unforeseen circumstances and evolving needs.” As for how costs were managed, Rigby notes, “Keeping our initial budget on the conservative side, we were able to change and add some elements which were more in cost, but that gave us the allowance to make those adjustments.” Regarding additional stores under the Digby Market banner, Rigby is noncommittal but offers some tantalizing ideas. “This is our first store, and we are very excited to have it up and running,” he says. “Right now, we are focusing on this store, but who knows what the future holds for Digby’s Market? If and when we decide to expand, we will try to keep the style similar, with minor updates that would enhance the original designs, keeping us still fresh and unique. Location would have some effect on design, as we have some designs that feature our local area … so we would try to utilize other local landmarks in other stores, as well as other local products, keeping the community interests and natural elements in mind.” Among Digby’s unique features is an in-store ice cream parlor with a retro neon sign.
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Newly remodeled and renamed, Pioneer Market held its grand reopening last April in Lehi, Utah.
Original Inspiration
Meanwhile, Pioneer Market, located 300 East Main Street in Lehi, is a 21,000-square-foot store that originally opened as Pioneer Market back in 1969 and underwent numerous name changes throughout the years, most recently operating under the Kohler’s banner. When contemplating changes to the existing store, owner Cecil Shern turned to his shoppers. “I informally polled probably 40-50 of my customers to see, one, what they liked about my store and, two, what they would change to improve it,” he recounts. “The things they would change varied a lot from customer to customer, and I couldn’t believe it, but over 90% had the exact same answer for what they liked, and [for] the other 10%, it was their No. 2. The biggest thing they liked was the ‘hometown feel.’ So I did everything I could to preserve the hometown feel, while replacing and renewing also. I think that is where the wood look came into play in so many of our decor decisions, also the picture of Lehi Main Street from the 1890s that is featured in our front vestibule. We also added ‘Hometown Grocer’ to our logos.” As for adopting the store’s original moniker, he notes that it “took on a family name in 1982 and kept some version of that family name until 2023, when we decided, since none of the family members had any stake in the business anymore, to change it back to its original Pioneer Market [banner] again.” “Pioneer” is more than just the store’s name, though — the word has a deeper meaning for the community. “The mascot of Lehi High School is the Pioneers, and their colors are black, white and purple,” explains Shern, “so that became the inspiration for the [store’s] colors.” Shern has definite ideas about the concept and design of any future stores.
“I might use ‘Pioneer Market’ again in Utah, because I really like the name,” he says. “The industry research on using the color purple is not terrific, but it works really well in this instance and could be used again anyway. I would definitely go for a hometown feel on any store less than 35,000 square feet. Anything over that, I feel that the sheer enormity of the store already detracts from a hometown feel, so it would be useless to attempt.”
The Lehi High School Pioneers sports teams’ colors of black, white and purple inspired the decor of the renovated Pioneer Market, which aims above all else to retain its “hometown feel.” PROGRESSIVE GROCER Januar y 2024
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TECHNOLOGY
Generative AI
GenAI is gaining traction for employee-facing tasks at food retail, including in assortment planning.
The Future Is Now CONSUMER- AND EMPLOYEE-FACING APPLICATIONS ARE PROLIFER ATING IN THE ARE A OF GENER ATIVE AI. By Emily Crowe hile generative AI (GenAI) has been around since The Beatles hit the scene in the 1960s, the technology came screaming into everyday consciousness over the past year and is quickly capturing the attention of individuals and enterprise-level businesses alike. At a base level, GenAI allows users to generate new content, such as text, images, videos and sounds, by inputting a particular prompt, and it constantly learns from data models to get even smarter. The simplicity of today’s user interfaces and the ability to create brandnew content in mere seconds have made GenAI particularly buzzworthy, and OpenAI’s introduction of ChatGPT in late 2022 served as a major catalyst for the technology’s increased adoption. GenAI’s applications in food retail run the gamut from assisting with assortment planning to managing supply chain logistics and providing customer assistance, and advancements in the space are poised to permanently alter the trajectory of grocery operations.
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Future-Forward Applications
Many food retailers are working toward adopting GenAI into their tech stacks, and Azita Martin, VP of retail, CPG and QSR at Santa Clara, Calif.-based software company NVIDIA, is seeing forward movement in employee-facing use cases that help promote both creativity and productivity, including everything from basic in-store tasks to higher-level marketing and campaign generation.
Key Takeaways Advancements in GenAI are poised to permanently alter the trajectory of grocery operations. These types of applications can automate mundane and repeatable duties, thereby freeing up associates to help customers and complete other value-added tasks. Retailers need to be aware of the potential challenges of adopting GenAI and ensure that it fits together with both existing infrastructure and long-term business goals.
According to Martin, today’s GenAI advancements “Preferabli’s ability to pair any wine “If you do not can add a lot of value on the associate side in regard or spirit in inventory with any food or embrace this to e-commerce and mobile apps, especially in relation recipe changes the game,” continues technology, and be to writing product descriptions. When trained properly, Pam Dillon, co-founder and CEO. aware of what it can GenAI can easily identify particular product attributes “When food experiences come alive and can’t do and that customers seek out, and write a comprehensive in this way, basket sizes have a way of product description. Content managers can then douwhere you will apply increasing very quickly.” ble-check the generated descriptions and make small it, it becomes an changes instead of writing them from scratch. Taking Stock of Where existential problem Vijay Raghavendra, CTO at Palo Alto, Calif.-based GenAI Stands for you.” SymphonyAI, believes these types of applications can While SymphonyAI’s Raghavendra help grocers solve perennial labor issues by automating —Vijay Raghavendra, SymphonyAI believes that the technology is mundane and repeatable duties, thereby freeing up a game-changer that effectively associates to spend their time helping customers and completing democratizes access to important insights, he other value-added tasks. Even job functions like category mancautions that it’s not the silver bullet some believe it to agement can harness the power of GenAI to make more informed be. “It does not solve all problems,” he emphasizes. choices regarding changes to assortment, customer impact and Instead, Raghavendra recommends being aware more, Raghavendra explains. of the potential challenges of adopting GenAI and On the consumer-facing side, Martin observes that shopping ensuring that it fits together with both existing advisors are likely to be in the next wave of retail-specific GenAI infrastructure and long-term business goals. applications. These pop-up assistants can help online shoppers Similarly, NVIDIA’s Martin says that the enterchoose products that fit certain criteria, find recipes that use prise-grade deployment necessary to bring GenAI into particular ingredients, and even enhance omnichannel shopping by large businesses is being underestimated, as is the helping customers locate items in physical stores. necessity of maintaining customized data models to Martin believes that all of these use cases are adding to GenAI’s ensure that information is flowing correctly. eventual ability to replace search as we know it. “It’s the next-genRegardless of potential hurdles, Raghavendra is eration, sophisticated search that is more personalized, more visual adamant about the importance of GenAI in improving and a lot more accurate,” she explains. business outcomes now and in the future. “I really believe that if you do not embrace this technology, and be aware of what it can and can’t do Taking the Leap As for retailers taking the plunge, Walmart is in the throes of examand where you will apply it, it becomes an existenining its relationship with GenAI, and recently shared the positive tial problem for you,” Raghavendra asserts. “Your benefits that the technology can have on the customer shopping competitors are going to be using this technology experience, as well as how it can help associates do their work to enable their merchants, their demand planners, more effectively. To help increase productivity and unlock transacross the different parts of the grocery ecosystem formation for its campus associates in the United States, the Bento make better decisions, faster decisions, and you’re tonville, Ark.-based company launched the My Assistant feature, a going to be at a disadvantage.” desktop and mobile app that can speed up the drafting process, serve as a creative partner, summarize large documents, and more. Experts caution grocery executives to consider how GenAI will fit Instacart is also harnessing the power of GenAI with a plug-in into their existing operations before adding it to their tech stacks. that allows its customers to shop via food- and recipe-related conversations with ChatGPT, and then have suggested ingredients added to their cart and delivered directly to their door. In the future, San Francisco-based Instacart plans to roll out even more GenAI capabilities, one of which would help people shop recipes or ingredients that are on sale or in season. Preferabli, an AI-driven software company based in Syracuse, N.Y., built GenAI for the grocery industry and trained its preference models using its proprietary database, with hundreds of characteristics for every product. Users can enter any wine in the world, and Preferabli will respond with other wines that taste like the reference wine. The company’s latest release can be anchored in any inventory. “Preferabli GenAI makes it possible for a shopper to free-form type something they like or want to eat and have that begin a journey of discovery within their experience, deeply enhancing any grocery platform focused on its shopper preferences,” says Andrew Sussman, co-founder and CTO of Preferabli. PROGRESSIVE GROCER Januar y 2024
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NONFOODS
Pet Care
For the Love of Fido CPG GIANTS ARE VENTURING INTO THE PE T SUPPLEMENT CATEGORY IN RESPONSE TO GROWING CONSUMER INTEREST. ueled by dog and cat parents’ rising concern about the health of their fur babies, pet supplements are becoming a big business. According to Dublin-based Research and Markets, the U.S. pet supplement market was valued at $890.00 million in 2022 and is expected to reach $1,381.21 million by 2028, increasing at a compound annual growth rate of 7.60% during the forecast period. Further, since the United States is the top country in the world for both dog and cat ownership, as reported by Norwich, U.K.-based NIQ Brandbank in its 2023 spotlight on the state of the pet care industry, that makes the opportunity all the greater in this part of the world. The report goes on to note that “while pet owners may be more cautious with their spending due to the global cost-of-living crisis, an overall increase in awareness of pet wellness sees pet parents willing to pay higher price points for supplements and food toppers that complement the pet food they are purchasing, regardless of the higher average price points those products come in at.”
The value of the U.S. pet supplement market in 2022. It is expected to reach $1,381.21 million by 2028, increasing at a compound annual growth rate of 7.60% Source: Research and Markets
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NONFOODS
Pet Care
Poised to Grow
EverRoot Dog Supplement Soft Chews target a range of key health benefit areas.
The New Soft Chew
Given this heightened consumer interest, major CPG companies are taking notice. One example of this is the recent partnership of EverRoot, a dog supplement brand powered by Purina, and boxing champion Laila Ali (daughter of Muhammad) on EverRoot Dog Supplements Soft Chews. The offering makes the brand’s product available in a new form and targets a range of key health benefit areas, including immunity, hip and joint, skin and coat, and digestion. “In addition to having unique needs, every dog has their own preferences,” notes Dr. Annie Valuska, a pet behavior scientist at St. Louis-based Purina, part of global nutrition, health and wellness leader Nestlé. “For example, you might notice that your dog prefers soft, meaty treats instead of crunchy biscuits. That’s why I’m so excited that EverRoot is giving dog owners more options with the soft-chew supplement form. It’s another great way to personalize your dog’s supplement plan to their specific tastes.” To craft the convenient supplements, EverRoot sources high-quality natural ingredients from around the world, including organic chamomile and oils from wild-caught Alaskan salmon and cod raised in Marine Stewardship Council-certified fisheries. The brand’s products can be found at such retailers as Amazon, Meijer and Walmart.
Boxing champion Laila Ali, pictured here with her pooches Malibu and Buddy, has partnered with EverRoot to promote a new line of soft-chew dog supplements.
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Additionally, this past November, Minneapolis-based General Mills Inc. revealed that it had acquired Fera Pets Inc., a veterinarian-founded pet supplement company, in a move that will bring new health-focused offerings to General Mills’ pet portfolio. This represents the CPG powerhouse’s first foray into the pet supplement category, as well as the inaugural acquisition by the company’s newly launched growth equity fund. Led by Dr. Michelle Dulake and Emily Hsu, lifelong friends turned entrepreneurs, Glendale, Calif.-based Fera is reimagining pet supplement products by creating science-backed supplements to support pet wellness with high-quality clean ingredients, accurate dosages, and a combination of Eastern and Western medicine. Each product is manufactured in the United States and bears the National Animal Supplement Council (NASC) seal. According to Dulake, Fera “was created after recognizing a lack of transparency in the pet supplement category and a gap in the market for a holistic approach to our pets’ well-being.” General Mills’ growth equity fund is designed to own, scale and incubate strategically aligned businesses, with a goal of future integration into the company’s core portfolio. The CPG manufacturer’s scale will be able to unlock new opportunities for its growth fund portfolio acquisitions by leveraging General Mills’ extensive brand-building know-how, omnichannel expertise and advantaged capabilities. The acquired brands, including Fera, will remain founder-led and independently operated while receiving access to talent and resources to fuel their growth.
EDITORS’ PICKS
Food, Beverage & Nonfood Products
Clear Difference
Authentic Italian food purveyor Tuscanini Foods has now debuted the Tuscanini Reserve line, starting with 16-ounce Margherita and 17-ounce Supermargherita frozen pizzas. The items come in clear-window packaging that allows customers to see the quality inside before they purchase them. Tuscanini Reserve frozen pizzas retail for a suggested price range of $8.99-$9.99. Curating more than 175 premium products directly sourced from Italy, the Tuscanini product line features a wide array of offerings, including olive oils, aged balsamic vinegars, artisanal pasta, traditional sauces, and frozen and refrigerated products. The brand is part of Kayco-Kedem, a family-owned kosher and multicultural food supplier and manufacturer with distribution in more than 40 countries. https://www.tuscaninifoods.com/; https://www.kayco.com/
Bing It On
Created by “Iron Chef” Ming Tsai, frozen crunchy wrap line MingsBings has now expanded to include better-for-you meat-filled bings (a kind of Chinese crepe) made with at least 20% vegetables. The meat- and chicken-based bings maintain Chef Tsai’s philosophy of veggie-forward eating, with a higher vegetable count to reduce cholesterol, fat and calories, versus traditional frozen handheld options. MingsBings’ four latest flavors are Cheeseburger, Ham & Cheese, Buffalo Chicken, and Supreme Pizza. Like their plant-based counterparts, the meat-based bings are gluten- and nut-free, allergen-friendly, and air fryer-ready. The suggested retail price for any variety of meat-filled bings is $6.99 per 9-ounce box of two bings. Meanwhile, to reflect its journey from plant-based brand into the broader better-for-you category, MingsBings has launched a brand redesign including an updated logo, refreshed packaging and a redesigned website. https://mingsbings.com/
Twice as Nice
Since potatoes account for two-thirds of all sales in the side dish category, Reser’s Fine Foods has launched a line of baked potatoes under its Main St Bistro brand: Twice Baked Signature Potatoes and Twice Baked Double Cheese Potatoes. The easy-to-prepare homestyle sides are ready in just six minutes whether consumers use a microwave, oven or air fryer. Both are made with real whole milk, cream and cheddar cheese, while the Double Cheese variety also features parmesan. Sold in the refrigerated section of the meat department, the product retails for a suggested $6.49 per 20-ounce package of either variety. https://www.resers.com/; https://mainstbistro.com/
Functional Pop
Incubated by global bev tech company Beliv, which currently manages 52 brands in 35 countries, Mighty Pop bills itself as the first soda containing pre-, pro- and postbiotics. The USDA-certified organic, gut-healthy and immune-boosting beverage comes in four flavors: Orange Vanilla, Strawberry Hibiscus, Berry Lime and Pineapple Grapefruit. Each 12-ounce can of agave-sweetened Mighty Pop provides 1 billion live probiotic cultures, 3 grams of prebiotic fiber from sustainably sourced and certified carbon-neutral acacia plants, postbiotics that help positively modulate the microbiome and support immune health, just 3 grams of sugar, and only 30 calories. The suggested retail price is $2.99 per can. Mighty Pop joins Beliv’s roster of beverage brands available in the United States across various categories, among them Petit (nectar), Oca (organic plant-based energy), Güitig (volcanic sparkling water), Big Easy (kombucha and functional shots), and High Brew (cold-brew coffee). https://drinkmightypop.com/ PROGRESSIVE GROCER Januar y 2024
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AHEAD OF WHAT’S NEXT By Bridget Goldschmidt
She’s the Top A PIONEER IN GROCERY AND MORE RECEIVES A T WIG HONOR ARY TR AILBL A ZER AWARD. wo of the highlights of Progressive Grocer’s Top Women in Grocery (TWIG) awards program calendar are the June issue, in which the honorees are featured, and the Grocery Impact event in November, during which TWIG-centric educational sessions take place in the lead-up to a gala celebration where the awards are distributed. Perhaps less well known are such components as our Top Women in Grocery monthly podcast series, whose guests discuss a wide range of topics relating to women’s experiences in the grocery industry. In another example of PG’s TWIG-year-round mindset, we recently presented our fi rst-ever honorary Trailblazer Award to a highly deserving recipient: Winn-Dixie’s very own Romay Davis. For the occasion, I traveled to Montgomery, Ala., to bestow the award in person. Many PG readers may be already familiar with Ms. Romay, as she’s affectionately known. Born Oct. 29, 1919, in Virginia, she enlisted in the Army in 1943 as a private fi rst-class in the U.S. Army 6888th Central Postal Directory Battalion. At a time when women and people of color faced discrimination, her predominantly Black, all-female battalion cleared backlog in just three months by sorting an average of 195,000 pieces of mail per day. After her military service, for which she later received the American Congressional Gold Medal, Ms. Romay became a NYU multidegree scholar, worked in real estate and fashion, earned a black belt in taekwondo, and rejoined the workforce as a Winn-Dixie associate in 2001, when she was more than 80 years old. In 2020, Winn-Dixie parent company Southeastern Grocers launched the Romay Davis Belonging, Inclusion and Diversity Grant in her honor.
What Matters
Following a simple ceremony held in the produce department at Ms. Romay’s store, where she still shops regularly, I had the chance to speak with her. Having tried real estate after relocating to Alabama and deciding it wasn’t for her, she started working at a nearby Winn-Dixie, where she essentially carved out her own position, keeping product neatly arranged on shelves and greeting customers: “It’s those things that matter.” About the only thing she didn’t wish to do was work at a cash register, since “I can’t stand still in one place.” Asked how she would help someone just starting out in the grocery business, Ms. Romay pragmatically replied: “I would try to coach the person: What do you like to do? And show them how to do what they wanted to do. Then when they had to do [something,] they would know how to do it.” Also in attendance at the event were store manager Bobby Godwin – whom Ms. Romay describes as “a fantastic person to work with” – and her besties from the store, Frankie, Dixie and Angela, who offered warm hugs and some catfish for her to take home and eat later.
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It was a tremendous honor for me to meet Romay Davis at her local Winn-Dixie store in Montgomery, Ala., and present her with a well-deserved honorary Top Women in Grocery Trailblazer award.
The Legacy Continues
As I noted in my brief remarks at the award ceremony, we at PG decided to honor Ms. Romay not only for her years of dedicated service at Winn-Dixie, but also for the many groundbreaking achievements of her extraordinary life, and the inspiration she continues to provide for her colleagues, friends and admirers in Montgomery and across the country. Despite her long list of accomplishments over an eventful 104 years of existence, Ms. Romay remains modest, describing her approach to life and work in simple terms: “I enjoyed doing whatever I’ve done.” The ability to find pleasure and meaning in what you do, even in the face of challenges, is an important quality in a potential Top Woman in Grocery, one we’ll be looking for as we read through this year’s nominations. In that way, Ms. Romay’s legacy will continue to influence the grocery industry, to the benefit of all.
Bridget Goldschmidt Managing Editor bgoldschmidt@ensembleiq.com
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