Store Brands - Feb 2017

Clear opportunity with clean labels

Captivating consumers with emerging fragrances

Building brand buzz with social media www.storebrands.info | February 2017

Publix TRUST The

Chain’s ‘relentless pursuit’ of customer service is reflected in its own brands

IT’S ALL ABOUT FAMILY !

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Contents

Volume 39 No. 2 February 2017

14 Retailer of the Year The Publix trust Chain’s ‘relentless pursuit’ of customer service includes the value it places on its own brands. It’s the reason Publix is our 2017 Retailer of the Year

Features 28 Health and Wellness Clear opportunity Retailers that cater to consumer preferences for transparent, clean label products will be rewarded, industry experts contend

38 Connecting with Consumers Building brand buzz with social media

28

Key is to leverage the right tool at the right time for maximum impact

42 Emerging Fragrance Trends Emotional connections Natural, customized and sophisticated fragrances are captivating consumers of personal care and household products

Departments 6 Editor’s Note 8 Promotional Insights 10 Around the Industry

38

Category Intelligence 47 51 55 59 63

Pasta, rice and grains Frozen appetizers and snacks Frozen and canned fruits and vegetables Pet care products Vitamins and minerals About the cover: “The Publix trust” extends to the retailer’s many own-brand products featured on our cover. Photos courtesy of Publix.

Design by Jeff Bowes.

42 4

Store Brands (ISSN-0190-9851; USPS # 0488-370) is published monthly by EnsembleIQ, 570 Lake Cook Rd., Deerfield, IL 60015. Subscriptions: One year, $95; two years, $146.

One year, Canada $112; two years, Canada $150, One year, foreign $175; two years, foreign $285. Payable in advance with a bank draft drawn on a US bank in US funds. Single copies $10, except foreign, where postage will be added. Canada Post: Canada returns to be sent to IDS, P.O. Box 456, Niagara Falls, ON, L2E6V2. Periodicals postage rates paid at Deerfield, IL and additional mailing offices. Printed in USA. POSTMASTER: send all address changes to Store Brands PO Box 1842 Lowell MA 01853. Copyright 2017 by 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 can not be reproduced in whole or in part without the consent of the publisher. The publisher is not responsible for claims and representations.

Store Brands / February 2017 / www.storebrands.info

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Editor’s Note Business Intelligence for an Evolving Market

570 Lake Cook Rd. Suite 310, Deerfield, IL 60015 (224) 632-8200 • Fax: (224) 632-8266

Brand Director

Kevin Francella

(973) 264-4389

kfrancella@ensembleIQ.com

EDITORIAL Editor-in-Chief

Lawrence Aylward

(330) 635-2586

laylward@ensembleIQ.com

Managing Editor

Carolyn Schierhorn

(224) 231-6359

cschierhorn@ensembleIQ.com

Contributing Writers

Kathie Canning, Dana Cvetan, Rich Mitchell

ADVERTISING & SALES Associate Brand Director Suzanne Caputo (201) 855-7628

scaputo@ensembleIQ.com

Regional Sales Manager

Mike Mandozzi

(224) 632-8194

mmandozzi@ensembleIQ.com

CUSTOM MEDIA VP, Custom Media Division Pierce Hollingsworth (224) 632-8229

phollingsworth@ensembleIQ.com

MARKETING VP, Marketing & Communications (224) 632-8214

Bruce Hendrickson

bhendrickson@ensembleIQ.com

Director of Market Research (201) 855-7605

Debra Chanil debra.chanil@carbonview.com

AUDIENCE DEVELOPMENT Director of Audience Development

Gail Reboletti

greboletti@ensembleIQ.com

Audience Development Manager (215) 301-0593

Shelly Patton spatton@ensembleIQ.com

List Rental

The Information Refinery

(800) 529-9020

Brian Clotworthy

Subscriber Services/Single-copy Purchases 978-671-0449

EnsembleIQ.com@e-circ.net

ART/PRODUCTION Director of Production Kathryn Homenick (973) 358-4875

khomenick@ensembleIQ.com

Advertising/Production Manager (224) 632-8251 Fax: (888) 445-1123

Bette Boyers bboyers@ensembleIQ.com

Creative Director

Jeff Bowes jbowes@ensembleIQ.com

EVENTS • MARKETING • DIGITAL • RESEARCH • CIRCULATION CORPORATE OFFICERS Executive Chairman

Alan Glass

President & CEO

Peter Hoyt

Chief Operating Officer Chief Brand Officer

Richard Rivera Jeff Greisch

Chief Financial Officer

Len Farrell

Chief Business Development Officer & President, Ensemble IQ Canada Chief Customer Officer/ President of Strategic Platforms Chief Digital Officer

Korry Stagnito Ned Bardic Joel Hughes

Chief Human Resources Officer

Greg Flores

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.

There is money on the table, but it must be earned anted: Deep thinkers to help create ground-breaking private label products. People who are interested in only knocking off top-performing national brands and turning them into store brands need not apply.

This is a job listing, perhaps, that retailers from all walks should consider posting under the “Careers” heading on their websites.

While private label sales have cooled the past few years, there is plenty of opportunity for retailers to excel with own brands. But it won’t be easy. It will take planning and research, planning and research and even more planning and research. It will take a confident willingness for retailers to reach deep into their pockets and invest. A confident willingness to invest means that retailers won’t think twice about what they are doing. A shadow of doubt in the process could disrupt the entire process.

Here’s why there is opportunity: More than 80 percent of meals are sourced from home, according to a recent study by the NPD Group. That stat should have retailers licking their chops. And even while fewer than 20 percent of meals are sourced from foodservice, retailers also have an opportunity to capitalize on this segment through own-brand prepared foods.

In its study, the NPD Group notes that retailers and manufacturers need to capitalize on consumers’ desires for two words — “fresh” and “authentic.” While they are two words that retailers might be tired of hearing about, they are words that retailers must face up to because they represent the current trends that help define the food industry.

The two words also might seem as murky as mud soup to some retailers, but this is where retailers have to stop and ask themselves a few questions: n What does “ fresh” mean to our clientele, and how “ fresh” do I need to go? n What does “authentic” mean to our clientele, and how much “authentic” could be too authentic?

For instance, “fresh” might not mean that you must go to extremes and offer unpasteurized water buffalo milk in the dairy section. “Authentic” might not mean that you must offer wasabi/sriracha/coconut-flavored potato chips in the snack sector.

But this is where the hard work and investment comes in: You must figure out what to offer and how “fresh” and “authentic” applies to your operation. For instance, if you do business where I live, Cleveland, I’ll bet you a year’s worth of private label plain pizza (not authentic) that you could find authenticity by introducing an array of own brand fresh-and-flavored Polish sausages and pierogies. In this land, those two items are more popular than LeBron.

Let’s get back to money and investing for a second. I know those two things might be holding you back. According to a recent study by the Food Marketing Institute, 57 percent of supermarkets and regional grocery retailers say that “capital investment to drive innovation” is the biggest threat to private label.

Money might be tight. I get it. But just remember that there is also money sitting on the table — the one with the sign that says “private label.” SB

Lawrence Aylward, Editor-in-Chief laylward@ensembleIQ.com

2015

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Store Brands / February 2017 / www.storebrands.info

! e s i r Surp Amazon opening a check-outfree store, Lidl hiring U.S. employees, supermarket family owners thinking of retiring and selling out.

Here are some of the surprises coming in 2017 with ramifications for everyone else. Join news anchor Jodi Daley and PLMA president Brian Sharoff as they examine surprises and not-so-surprises starting to take shape.

Starting February 9.

Jodi Daley

Brian Sharoff

PLMA

Tim Simmons

Bob Vosburgh

ÂŽ

Roy White

www.plmalive.com

Presented by the Private Label Manufacturers Association

Promotional Insights

Print circulars still powerful for promoting private brands

By Ryne Misso

I

nnovation and change defined 2016 for much of the retail industry, as consumer demand and behavior shifted.

How were these effects felt within the grocery channel?

Did changing shopper behavior and expectations impact how grocery retailers market to consumers?

Market Track reviewed print ad activity over the past 12 months to understand how grocery retailers adjusted not only their circular advertising strategies, but also their approach to promoting their private brands.

Digital’s influence over the purchase process has inarguably grown, regardless of whether a consumer is buying a new TV or making a trip to the grocery store. That said, grocery retailers have the challenge of striking a balance between delighting grocery shoppers who have followed the same process for years and those who have taken to the new digital world.

For example, 2016 survey data from Market Track revealed that 47 percent of shoppers use print circulars to find deals on groceries — more than any other promotional media available to them. Comparatively, only 12 percent claimed to use grocery retailers’ websites most, while 6 percent turn to email for in-store promotions and a meager 3 percent leverage smartphone apps more than other channels. These results were more or less in line with findings from the same survey conducted in 2015, when 49 percent responded that they use print circulars more than any other media to find grocery deals.

These insights alone demonstrate that grocery retailers cannot abandon their traditional methods of promotion. From 2015 to 2016, there was no significant change to print promotional volume in the grocery channel. The total number of print circulars run by grocery stores decreased by 2.2 percent in 2016, yet total pages increased by 3.1 percent, according to Market Track.

A second shift in consumer behavior was more the norm than a trend in 2016. The demand for healthful and environmentally sustainable ingredients continues to soar, and the effects of this movement have been uniquely felt 8

Store Brands / February 2017 / www.storebrands.info

by the grocery channel. Private label products were naturally at risk with the healthful-eating craze.

Traditionally providing a lower-priced alternative to national brands, retailers needed to resolve the problem posed by the demand for better ingredients, while remaining the value option on the shelf.

Many retailers addressed this issue by creating private label tiers, merchandising products both on top shelf alongside higher-priced gourmet options and on the bottom shelf amidst the more pricesensitive options.

Based on 2016 survey data from Market Track, grocery retailers were able to successfully quell concerns about the quality of private brands. Of the survey respondents, 81 percent said they purchased private label products in 2016, while 70 percent said they believe private label products contain the same ingredients as national brands.

Price also remains a consideration for shoppers when it comes to private label, with 48 percent saying they would consider buying private brand products more frequently based on price. A review of promotional data shows that grocery retailers maintained similar levels of promotional support for their store brands in 2016. The average U.S. grocery store allocated 15.7 percent of its print circular ads to private label products in 2016, down slightly from 15.9 percent in 2015.

Grocery stores are not immune to the effects of the changing consumer landscape. Every dollar transacted in their physical store locations will be increasingly influenced by digital interactions. And grocery shoppers are likely to grow more discerning of product quality and ingredients when filling their baskets. Refining advertising and promotional strategies will be instrumental in keeping pace with consumers.

That said, your average grocery shoppers are still referencing the circular more than their email inbox or social media when searching for weekly promotions, and they are still heavily influenced by price. Until these behaviors shift for good, both the print circular and private label will continue to be centerpieces of promotional strategy for grocery stores. SB Ryne Misso is the director of marketing for Market Track, a global provider of advertising and promotional tracking, brand protection and ecommerce pricing solutions. He can be reached at rmisso@markettrack.com.

AroundtheIndustry SHORT TAKES Study: Private label will grow 2.95% through 2020 In its new report, Research and Markets predicts the private label food and beverage market in the United States will grow at a compound annual growth rate of 2.95 percent through 2020.

The report, “Private-label Food and Beverages Market in the US 2016-2020,” calculates the market size and considers the revenue generated from the retail sales of various private label food and beverage products to individual consumers in the U.S. According to the report, large retailers are now increasing privatelabel brand offerings due to the attractiveness of the market and high sales coming from private brands.

Daymon sold in $413 million deal Stamford, Conn.-based Daymon Worldwide, an expert in private brand development, has been acquired by Bain Capital Private Equity and Chinese supermarket chain Yonghui Superstores for $413 million. Bain will have a 60 percent stake in Daymon, while Yonghui will have 40 percent. Yonghui said it will fund the deal by bank borrowing and cash while Bain said it will buy the stake from existing shareholders of Daymon, which was established in 1970.

In a press release, Daymon CEO Jim Holbrook said the transaction is a “very positive development for our company, our employees and our clients.”

Kroger says stores are filling 10,000 positions Cincinnati-based The Kroger Co. said it is hiring to fill an estimated 10,000 permanent positions in its supermarket divisions. Over the past eight years, Kroger has created more than 86,000 permanent new jobs, the company stated in a press release.

“Kroger’s growth trajectory continues to create opportunities for our people to advance their careers and to do that in a fun team environment with great benefits,” said Tim Massa, Kroger’s group vice president of human resources and labor relations, in a statement.

7-Eleven brings pizza for breakfast 7-Eleven has rolled out ready-to-eat breakfast pizza at participating stores. The Irving, Texas-based convenience chain’s pizza is topped with smoked bacon, breakfast sausage, hickory-smoked ham, scrambled eggs, cheddar and mozzarella cheese, and peppered cream gravy. “Mornings are our busiest time of day, and adding a breakfast pizza will prove to be as popular with the a.m. crowd as our other pizzas are for lunch and dinner,” said Dennis Phelps, 7-Eleven vice president of fresh food and proprietary. SB

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Store Brands / February 2017 / www.storebrands.info

Online grocery shopping could top $100 billion by 2025

By Kevin Francella

O

nline grocery shopping could reach $100 billion by 2025, representing nearly a quarter of all grocery sales, according to preliminary findings of a multi-year joint study from the Food Marketing Institute and Nielsen. FMI and Nielsen released a preview of their Digitally Engaged Food Shopper analysis at the FMI Midwinter Conference in Scottsdale, Ariz., held Jan. 27-Jan. 30.

Additional findings from this study show that online food shopping will reach maturation in the U.S. within the next decade, far faster than other industries that have gone online before such as publishing or banking.

The research also revealed that the center store is likely to shift online faster than other departments, suggesting a fundamental evaluation of the role the store plays in digital food shopping. The research estimates that in the current climate of technology adoption and evolution, consumer spend on online grocery shopping could reach $100 billion, which is the equivalent of 3,900 grocery stores based on store volume.

“While we are more connected than ever to influence what shoppers buy, the window to influence those moments is narrowing,” said Mark Baum, FMI’s chief collaboration officer. “FMI and its members will need to seize the opportunity to harness new skills and collaborate more seamlessly than ever before to effectively reach these digitally savvy food shoppers. We’re building the tools to help our members assess where they are in their connected commerce strategies.”

“The grocery business truly is at a digital tipping point, where every aspect of the shopper’s journey will soon be influenced by digital, and increasingly enabled by digital platforms,” said Chris Morley, president of U.S. Buy at Nielsen. “The need for retailers and manufacturers to know the differences around how consumers shop online versus in-store is greater than ever before. Analytics will be key for retailers and manufacturers to understand the digitally engaged food shopper on a deeper level.”

The Digitally Engaged Food Shopper study is part of a strategic alliance and multi-year initiative with FMI and Nielsen to uncover comprehensive insights on current and future digital shopping behaviors within the food retail marketplace. A copy of the full report is available at www.fmi.org/digital-shopper. SB Francella is brand director for Store Brands.

PARIS HILTON, known for her highfalutin social life, is teaming with German retailer LIDL, known for its low-priced own brands, to sell a range of hair-styling products throughout Lidl’s European stores.

AroundtheIndustry And the winner of Trader Joe’s Customer Choice Awards is …

successful tea brand With us, your

is in the bag – or box, tin, can ...

T

he envelope please ...

Trader Joe’s, which has helped take private level to another level, unveiled the winners of its eighthannual Customer Choice Awards last month.

And the winner is … MANDARIN ORANGE CHICKEN. The Monrovia, Calif.-based retailer conducts its popular Customer Choice Awards online. “It allows fan(atic)s to give proper ado to the Trader Joe’s products that put the moxie in kitchen moves, the brag in blogs, the yum in bellies,” according to the company.

Runners-up for Customer Choice Awards are: COOKIE BUTTER, JOE’S DINER MAC ’N CHEESE, TRIPLE GINGER SNAPS and POUND PLUS 72% DARK CHOCOLATE

Mandarin Orange Chicken also won in the favorite frozen category.

Other category winners are: Soft Pretzel Stick (favorite bakery), Spiced Cider (favorite beverage), Dark Chocolate PB Cups (favorite candy), Unexpected Cheddar (favorite cheese), Cold Brew Coffee (favorite coffee), Organic Ketchup (favorite condiment), Tea Tree Tingle Shampoo (favorite home/bath), Soy Chorizo (favorite “meat”), Peanut Butter Pretzels (favorite snack), Bananas (favorite produce), Arugula (favorite salad) and Pumpkin Butter (favorite pumpkin). SB

Target introduces ‘comprehensive’ chemical strategy Develop your successful tea brand with our unparalleled selection of first-class teas, fruit and herbal infusions and instant products. We translate our trend insights from international markets into a line-up of innovative packaging solutions customised to precisely fit your brand’s image.

After all, success comes in all shapes and sizes.

The world of tea under one roof wholesale@haelssen-lyon.com phone: +1-212-488-1674 www.haelssen-lyon.com

Target announced a new chemical strategy and policy that addresses every product it sells, which the Minneapolis-based retailer says is a first in the retail industry.

“Our chemical strategy will be one of the most comprehensive in the U.S. retail industry, including all Target-owned and national brand products and operations, not just formulated products,” said Jennifer Silberman, Target’s chief sustainability officer.

Target said its first set of goals are aimed at addressing unwanted chemicals with the biggest potential health impact and factoring in their prevalence within Target’s products. The retailer said it is also prioritizing the areas its customers tell it are most important, such as products that go on, in and around their body.

Target is teaming with its vendors, supply chain partners, nongovernmental organizations and other organizations across the industry to identify unwanted substances in products and operations, understand how they impact health, and work to develop safer alternatives. SB

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Store Brands / February 2017 / www.storebrands.info

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Publix TRUST The

Supermarket chain’s ‘relentless pursuit’ of customer service includes the value it places on its own brands.

It’s the reason Publix is our 2017 Retailer of the Year

By Lawrence Aylward

14

onsumers often hid them in the kitchen pantry behind the tall boxes of brand-name cereals and cake mixes so nobody could see them. They were eaten, perhaps, in secret.

Tim Cox, director of creative services for Publix Super Markets, remembers well the erstwhile buyers of private label products from the Lakeland, Fla.-based grocery chain. Back around 2000, consumers weren’t exactly permeated with pride upon purchasing Publix’s store brands, Cox says.

“People didn’t necessarily want others to know that they had bought them,” he adds.

Cox, whose team works on the branding and promotion for Publix’s private brands, knew something had to give. So he and his marketing partners embarked on a consumer research study to learn some things about Publix and its private brands.

Store Brands / February 2017 / www.storebrands.info

What they discovered was that while consumers trusted the Publix name, they didn’t think highly of Publix’s private brands mainly because of the products’ packaging design. Cox and his team also detected that consumers generally lacked awareness of Publix’s own brands, which then consisted mainly of name-brand knockoffs.

Rather than push the panic button, Cox and the Publix brass viewed the situation as an opportunity.

They felt they had quality own-brand products but not the packaging and marketing to support them.

Knowing they had the public’s trust, they challenged themselves to make Publix’s private brands a component of that loyalty.

“What we did was design a new proprietary system to leverage our name and the quality of our products,” Cox says.

What was born shortly after in 2002 was the Publix Brand of private label products, featuring a clean, white packaging design with the well-known

at a glance u Founded in 1930 in Winter Haven, Fla., by George W. Jenkins. u One of the 10 largest-volume supermarket chains in the United States. u Largest employee-owned supermarket chain in the United States. u 1,141 stores in six states: Florida, 775; Georgia, 184; Alabama, 64;

South Carolina, 57; Tennessee, 40; North Carolina, 20. u 2015 retail sales of $32.4 billion. u Nearly 190,000 employees. u Company’s three dairy plants produce enough private brand ice cream

annually to make more than 400 million single-scoop ice cream cones.

“black dot,” a circular emblem featuring the Publix logo. What Publix sought through the own-brand line was continuity — the retailer wanted all products to appear different from their respective national brands but more uniform in packaging.

“Our customers were then able to readily identify the Publix Brand,” Cox says.

That they did — big time. Shortly after the conversion, customer inquiries began pouring in asking if Publix had increased its private label line.

“But we didn’t increase it,” says Maria Brous, Publix’s director of media and community relations.

“All that had changed was the packaging. But awareness grew significantly among our customers.”

Around the same time, Publix also pumped up its Publix Premium line, which had consisted of only a handful of products dating back to 1994, with many new items including select coffees, ice cream, sauces and other specialty products.

In 2003, the retailer added its Publix GreenWise

brand, featuring organic and free-from products.

In the past 14 years, Cox and the Publix team, including Karen Hall, Publix’s director of emerging business and private brands, have kept a close watch on the three tiers — strategically adding and subtracting items to keep up with and stay ahead of the trends. Hall and Beth Ware, a store brand specialist, are constantly studying data and customer feedback to identify gaps in private label tiers for possible new products.

Today, Publix’s private brands exemplify everything that contemporary store brands should be — from quality and value to distinction and personalization. Publix, which began in 1930 and has grown to more than 1,140 stores in six states, is not only hailed as one of the top supermarket chains in the country, it is also highly regarded for its own brands. It’s why Store Brands is recognizing Publix as its 2017 Retailer of the Year.

In addition to the three tiers, Publix also offers an www.storebrands.info / February 2017 / Store Brands

15

intangible “fourth” tier, which private label experts say is crucial to today’s store brand success. As Hall puts it, Publix is in “relentless pursuit” to achieve outstanding customer service, not just by having attentive and affable store associates, but through other measures that directly impact the quality and reputation of its own brands. So “relentless pursuit” is also about implementing the latest food safety measures, using the finest ingredients from suppliers, making sure suppliers adhere to environmental and animal welfare policies, and constantly meeting the evolving tastes of consumers.

“We’re consistently looking at our branding systems to evaluate them and to make sure they are still effective in the market place.”

— Tim Cox, director of creative services/marketing

16

Store Brands / February 2017 / www.storebrands.info

“Everybody at Publix has a role in servicing the customer,” says Floyd Freeman, Publix’s director of manufacturing and supply purchasing.

A loyal following Late last year, the Temkin Group, a customer research and consulting firm, listed Publix No. 1 in its Temkin Loyalty Index, which surveyed 10,000 consumers to evaluate customer loyalty for 294 companies across 20 industries. The study evaluated consumers’ likelihood to do five things: repurchase from the company, recommend the company to others, forgive the company if it makes a mistake, trust the company, and try new offerings from the company.

This was all good news for Publix’s private brands.

After all, Publix’s goal with its store brands is to get consumers to trust them enough to repurchase them, recommend them and try new items.

“Trust … at the end of the day that’s what it’s really all about,” says Michael Roberson, Publix’s director of corporate quality assurance.

The Publix Brand comprises most of the retailer’s private brand sales and includes more than 3,000 SKUs. The products in the line are billed as good or better than national brand equivalents and cost less.

The Publix Brand is the retailer's first tier but is not a value brand. q

But Hall is quick to point out that the Publix Brand is not promoted as a value line.

“That’s not the type of customer we are targeting,” she adds. “Not that value isn’t important, but we want people who buy any of our brands to be confident that they are purchasing high-quality products.”

The Publix Brand has held up well, even through the Great Recession during the late 2000s when other retailers embraced lesser-quality “value” brands to sell more private label.

“People may have made tradeoffs because of the

bad economy, but we were still able to retain our customer base with our Publix Brand,” Brous says.

“Consumers realized they could still get a great value without having to sacrifice quality.”

The Publix Premium line capitalizes on distinct offerings and new flavor trends, such as Tomato Garlic Marinated Mussels. The retailer also promotes the cost savings on certain products in the line. In a recent print circular, Publix touted that consumers could “Get more mmm for your money” by choosing Publix Premium Blended Greek Yogurt (five for $4) over Chobani Greek Yogurt (10 for $10).

Cox says the line, which contains more than 350 SKUs, was designed and is maintained to “express the specialty and quality nature of these products.” Publix Premium products are packaged in black, which makes them appear distinct in store aisles.

Like many retailers’ organic and free-from lines, Publix’s GreenWise line is growing like wild strawberries.

Last year, Publix introduced about 50 new products to the line, and Hall expects about 100 new products will

Specializing in Private Label • Perfect for easy entertaining!

As the largest private label and co-pack manufacturers of canned shelf-stable desserts, like Rice Pudding and Custards, we bring more than thatt are made natural th 70 years off experience i iin producing d i gourmett puddings ddi th d with ith clean, l t l iingredients. di t We’ve redefined the meaning of fresh with our expertise, innovation and convenient packaging in BPA-free cans.

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Store Brands / February 2017 / www.storebrands.info

be added this year, including organic waffles, granola and nut butters in grocery, organic soup in deli and organic-sprouted wheat bread in bakery.

The three tiers also have a solid presence in Publix’s fresh foods department, including bakery, meat, deli and produce. Recently, Publix expanded

GreenWise to the deli and bakery departments.

Jane Pixley, Publix’s business development director of bakery, is always pushing the own-brand angle in fresh foods.

“I always get asked by customers, ‘How much local product do you do?’ I tell them that we’re making it from scratch in the store, and you can’t get any more local than that,” Pixley says.

“In the deli, [our employees] are handbreading and frying our chicken. [In the There’s something to be said for the long meat department], they are cutting and number of years that employees work at grinding. Customers can always see our one company. Lengthy tenures equate to mixers, ovens and meat cutters at work.” extended knowledge. In Publix’s case, several The loyalty factor is a two-way street. people have worked for decades for the Publix knows how vital it is to be loyal company, which has impacted its own brands to its customers. This is where service, in a positive way. The following are some of that all-important fourth tier, has had a those employees (with their current titles): tremendous impact. u Floyd Freeman, (pictured right) director of manufacturing/ “Our competitors can’t replicate supply purchasing — 42 years. our people,” Brous says. “We’re about u Jane Pixley, business development director of bakery — 38 years. having relationships with our customers u Tim Cox, director of creative services/marketing — 36 years. and meeting their needs. We’re in our u Karen Hall, director of emerging business and private brands — 33 years.

87th year, and we have never changed u Karen King, director of industrial operations and business our core philosophy or culture.” development — 25 years.

The fact that Publix is an employee-

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owned company — and the largest employeeowned supermarket chain in the United States — has everything to do with its employees wanting to embrace service like a bear hug.

“There is skin in the game,” Brous says. “You go to work every day knowing that you own a piece of this.”

Tough customer Publix, in addition to working with outside suppliers, has its own manufacturing facilities: three dairies (Lakeland; Deerfield Beach, Fla.; Lawrenceville, Ga.),

Store Brands / February 2017 / www.storebrands.info

two bakeries (Lakeland, Atlanta), one deli kitchen (Lakeland) and four fresh foods operations (Lakeland, Deerfield Beach, Lawrenceville and Jacksonville, Fla.).

“We have one captive customer, which is Publix,” says Karen King, Publix’s director of industrial operations and business development.

“We see the manufacturing investment as a competitive advantage. We can provide low-cost and differentiated products with proprietary recipes.”

Like any manufacturer, King says Publix is always looking to control costs and make sure it remains

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relevant to its retail business. Publix manufacturing is the largest food supplier to Publix Super Markets in food dollars but not SKUs. “We don’t just develop products out of the box,” King adds. “We work together with retail and make

sure we are investing our resources where retail needs them.”

Publix takes pride in being a tough customer — to its own manufacturer and outside suppliers.

“If you talk to our suppliers, they will say we are

Publix’s pride extends to dairy facilities Publix Super Markets is renowned for its own-brand ice cream, especially its distinct limitededition offerings. Consider Coconut Expedition, where “coconut snowdrifts collide with caramel streams to create an uncharted taste experience.” One reason consumers prefer the ice cream over name brands is because Publix manufactures it in its own dairy plants.

Publix has three dairy plants, including its original plant located near its headquarters in Lakeland, Fla. The other two plants are located in Deerfield Beach, Fla., and Lawrenceville, Ga. Greg Rudolph, general manager of dairy manufacturing at the Lakeland facility, says the original facility, which opened in 1980, was the brainchild of the late Joe Blanton, who was president of Publix at the time. Publix was one of the first supermarket chains to open its own dairy facility.

“He thought if Publix built a dairy manufacturing plant, it could produce a product Greg Rudolph oversees the of greater quality and higher value to pass on to consumers,” says Rudolph, who plant as general manager. has worked at the plant for 33 years. “The plant was one of Mr. Blanton’s favorite accomplishments at Publix [while he was president.]”

The Deerfield Beach plant was added in 1988, and the Lawrenceville plant in 1995. Combined, the facilities employ about 575 people and produce about 1.7 billion pounds of product annually for Publix’s 1,141 stores in six states. The facilities manufacture milk, ice cream, yogurt, cultured products and other nondairy items.

The plants work with local dairy co-ops to secure raw milk. There are high standards.

“The regulatory guidelines say we can’t receive any milk greater than 300,000 direct microscopic count (DMC), which is the number of bacteria and organisms in the milk,” Rudolph says. “But we tell our co-ops that we don’t want any milk with more than 100,000 DMC. The co-ops have had to work hard to meet this higher standard of quality.”

The Lakeland facility is the largest dairy manufacturing plant in the Southeast, says Rudolph, who adds he has also been told by state regulatory people and third-party auditors that it is one of the most diverse dairy plants in the country. The facility can receive raw milk in the morning from the coop, process and pasteurize it, and have it in stores in as little as eight hours, Rudolph says.

— Lawrence Aylward

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Store Brands / February 2017 / www.storebrands.info

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among the toughest customers they have,” Brous says. “But they will always say at the same time that we are fair and consistent and know exactly what our expectations are.”

In terms of new products, nothing is rolled out until it’s absolutely, positively ready. Sometimes this can take up to two years. “If we put a product out there, we know we have done our research, and it’s going to be a quality product,” Brous says.

New items also aren’t rolled out without associates sampling them. It’s vital to the process, Pixley points out. One time, Pixley was standing unnoticed in the

“Not that value isn’t important, but we want people to be confident that they’re purchasing highquality products.”

— Karen Hall, director of emerging business and private brands

checkout line at a Publix store when the cashier said to a customer in front of her, “Oh, you’re buying the new bakery item that was just introduced this week. I tried it this morning, and you are going to love it.”

“It was the affirmation from the cashier that the customer had made a good choice,” Pixley says.

Sometimes, outside suppliers will say that Publix needs to offer certain products as private label because their competitors offer them.

“But that’s all the reason we don’t want to offer those products,” Pixley adds. “We don’t want to be a me-too.”

In the future, Publix will challenge itself and its outside suppliers to deliver even more definitive private brands.

“It’s a whole different conversation than the conversation we had 15 years ago,” Brous says. “We want something that’s going to move the needle … something that our customers don’t already have.”

What Publix’s customers absolutely won’t get are private label products they feel they must hide in the kitchen pantry. SB Aylward, editor-in-chief of Store Brands, can be reached at laylward@ensembleiq.com.

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Health & Wellness

Clear

opportunity

Retailers that cater to consumer preferences for transparent, clean label products will be rewarded, industry experts contend

By Carolyn Schierhorn

28

lobal market research firms Mintel Group and Euromonitor describe the clean and clear label movement as a revolution. The Netherlandsbased Innova Market Insights ranks “Clean Supreme” as the top food and beverage trend for 2017.

While the movement is more entrenched in Europe, consumer demand for clean and clear label products is surging in the United States, especially among U.S. millennials — those born between 1982 and 2000, who now number 83.1 million, according to the U.S. Census Bureau, and will have $1.4 trillion in spending power by 2020 per some estimates.

Manufacturers, large and small, are responding in a big way to consumer preferences for simple, wholesome food without chemical additives. Late last year, Campbell’s Soup Co. debuted its Well Yes! clean label line of canned soups made without artificial colors, flavors or ingredients and without bisphenol A (BPA) in its can linings. And since 2015, General Mills and Kellogg’s have been racing to remove artificial dyes and flavors from all of their cereals.

Nothing But Real, a clean label snack start-up in Palm Beach Gardens, Fla., launched its first product last year — Oat Chocolate, a high-protein vegan beverage. “Let’s take food back. Let’s make products

Store Brands / February 2017 / www.storebrands.info

only from real ingredients — ingredients that are grown in fields and orchards or by Mother Nature,” the company states on its website.

Helena Lumme, who founded Nothing But Real with her husband, immigrated to the United States from Finland 20 years ago and was immediately struck by the heavily processed and chemical-laden nature of American food products. “Growing up in Scandinavia, it was a given that the products were healthy and didn’t have any chemicals,” she says. “So you can imagine the culture shock we experienced when we moved to the U.S.” Lumme is heartened that American consumers of all generations are finally embracing natural food that is free from synthetic substances.

“The trend is very real,” says Scott Lindsay, president of Product Development Plus in Toronto, Ontario. “Consumers are becoming more and more informed about how making the right food and eating choices impacts their overall health and their longevity.”

With several notable exceptions, grocery retailers with store brands have been slower than national brands to introduce clean label lines or reformulate their existing products, overwhelmed by the perceived investment costs and by the sheer number of categories they carry. But retailers would be remiss not to seize this tremendous opportunity to win over health- and

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Health & Wellness sustainability-conscious shoppers, industry experts insist, noting that there are ways to do this strategically to get the best returns on investment.

“You don’t need to make massive-scale changes right away,” says Diana Sheehan, the Chicagoland-based director of retail insights for Kantar Retail. “But you need to get started in this now.”

Beyond organic No official definition or standards exist for “clean label” or “clear label” — unlike the “USDA organic” label, which means that a product meets specific production requirements (grown without synthetic pesticides, for example) and does not contain prohibited substances such as GMOs. Many clean label products feature the same claims as organic products without having undergone the same rigorous certification process. For a product to

be labeled organic, at least 95 percent of its ingredients must be organically produced, according to the USDA’s National Organic Program. That said, many organic products contain a multitude of ingredients or contain ingredients that consumer advocacy groups have deemed questionable. In its white paper “The Organic Watergate,” the Cornucopia Institute points out that organic products can contain what the food and farm policy watchdog organization considers to be harmful ingredients such as carrageenan and decosahexaenoic (DHA) algal oil.

When it comes to eschewing chemical additives, keeping ingredient decks short and explaining the origin of product ingredients, the clean and clear label movement surpasses the federal government’s organic requirements.

“Although there is no formal definition for either ‘clean label’ or ‘clear label,’ there is consensus

ShopRite, Aldi commit to free from

T

wo of the nation’s grocers — ShopRite and Aldi — recently introduced initiatives that embrace the free-from movement.

In December, ShopRite, which operates more than 270 stores in the eastern United States, launched Wholesome Pantry, a new own brand of free-from and organic products that will include a mountainous 300 SKUs by the time the rollout concludes in a few months. Marketed as Wholesome Pantry and Wholesome Pantry Organic, ShopRite said the lines are designed as an “accessible alternative” for customers seeking cleaner ingredients and simpler labeling.

Wholesome Pantry’s free-from line includes products void of 110 ingredients and contains no artificial additives, flavors or preservatives. The organic line complies with standards set by the USDA National Organic Program.

Loren Weinstein, ShopRite’s director of private label, says the brand’s introduction represents a major commitment from ShopRite to free-from and organic foods.

“We’re committed to the brand and committed to growing it over time with as many items as needed based on what consumers are looking for,” Weinstein notes. “There is really no limit on

30

the items we want to add to the brand.”

The Wholesome Pantry line includes products found in nearly every aisle, including frozen, produce, dairy and meat. It also includes more than 35 snack varieties, such as Almond Energy Mix and Organic Banana Chips.

Wholesome Pantry has been in the works for two years.

Weinstein says ShopRite’s store brand decision-makers went to the drawing board to come up with not only free-from and organic products that hit on current taste trends, but also products that deliver on quality and value.

Shortly after 2017 arrived, Aldi rolled out its “Hello, Healthy” initiative, which includes an expansion of its fresh produce, organic and free-from offerings at its 1,600 stores in 35 states. Last December, Aldi conducted a survey of more than 1,000 consumers and found that 56 percent of New Year’s resolutions are based around healthier eating, weight loss or fitness. But Aldi also found that 91 percent of Americans who make such resolutions fail to maintain them through the year, mainly due to a lack of planning and the perceived high costs associated with healthy food.

So to help its customers maintain their resolutions to eat healthier,

Store Brands / February 2017 / www.storebrands.info

Aldi, known for its affordable ownbrand offerings, developed the “Hello, Healthy” initiative, which also includes an online resource to assist its customers with weekly meal plans, new recipes, videos and tips on how to help customers plan healthy weekly meals and save money by using the retailer’s products as ingredients.

“We want to be an ally in healthy living for our shoppers,” says Liz Ruggles, Aldi’s spokeswoman. “Aldi is always looking for ways to improve and expand its offerings so healthy choices are easy to find and are easy on [consumers’] budgets.”

Aldi is touting that it has eliminated added MSG, certified synthetic colors and partially hydrogenated oils from all of its store brands.

“That means that 90 percent of our products are free of these ingredients,” Ruggles says.

— Lawrence Aylward

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Health & Wellness gathering that consumers are looking for shorter ingredient lists, and they’re looking for ingredients that they can understand that don’t sound too much like chemicals,” notes Carl Jorgensen, director of global consumer strategy and wellness for Stamford, Conn.-based Daymon Worldwide.

Journalist and activist Michael Pollan has been credited with creating the clean label movement’s rallying cry in his 2008 book In Defense of Food: Avoid food products containing ingredients that are unfamiliar, unpronounceable or more than five in number.

The broadening of the movement to “clean and clear label” underscores the growing clamor for transparency. A product can be clean label without being clear label, Jorgensen says.

“For example, a common ingredient in clean label products is ‘natural flavorings.’ That term is very obscure,” he maintains, “because it doesn’t explain what those flavorings are.”

Consumers don’t just want to know what’s in the foods they eat and the personal care and cleaning products they use; they also want to know the provenance of those products and their ingredients. Transparency today applies to the entire supply chain. Millennials in particular care not only about a product’s health and wellness profile, but also about whether all parties involved in the item’s production and distribution are committed to environmental sustainability, humane work practices, animal welfare and other social causes.

While the clean and clear label revolution seems to demand much from retailers with private label lines, small steps can pay big dividends, Jorgensen says.

Overcoming skepticism It’s easy to be skeptical of and overwhelmed by the hundreds of substances that currently raise consumer concerns, most of which the FDA deems generally recognized as safe (GRAS).

Although she applauds the desire to eat healthfully, Heather Mangieri, RDN, a spokeswoman for the Academy of Nutrition and Dietetics, believes that easy access to questionable information online perpetuates food phobias.

“Putting fear in food is never a positive thing,” Mangieri contends. “We have one of the safest foods supplies in the world. Yet we have so much controversy surrounding it.”

Consumers have long had concerns about food ingredients, which have shifted over time, adds Carol Spieckerman, founder of Bentonville, Ark.-based Spieckerman Retail. What sets the clean and clear label movement apart is that “it’s more complex and it’s getting more granular,” she observes.

Although some consumer concerns are misguided, that shouldn’t matter to retailers, which need to sell their products and have little hope of disabusing shoppers of their fears and aversions, Jorgensen notes.

“I don’t think there is any doubt that some of their fears are unfounded,” he says. “Consumers sometimes get worked up about things when there is no scientific basis for their concerns.

“But who are you selling your products to? You’re selling them to consumers; you’re not selling them primarily to food scientists. You need to find out what consumers’ beliefs and 32

Store Brands / February 2017 / www.storebrands.info

Health & Wellness behaviors are and tailor your brands, your product lines and your marketing to reflect that.”

Getting started Deciding how to respond to the call for clean and clear labels requires a dedicated, robust corporate effort, according to Spieckerman. But it’s important for U.S. retailers not to wait too long before making their initial foray, she maintains.

“The granular free-from movement has more traction in European countries, which tend to be earlier adopters,” Spieckerman explains. With Lidl about to open stores in the United States, American retailers need to be ready because the German chain is already well-versed in how to address consumers’ concerns about chemicals in food, she says.

“Competition is going to drive the pressure for adoption because if other retailers are doing it and you’re not, you’ll look like you’re behind; you’ll look like you’re in the Dark Ages,” Spieckerman adds.

Off to a good start, certain U.S. retailers are already doing an impressive job in the clean label realm, Jorgensen observes. San Antonio, Texas-based H-E-B, for one, is taking a bold approach with its new clean label H-E-B Select Ingredients brand,

34

Store Brands / February 2017 / www.storebrands.info

which proactively excludes some 200 ingredients, described on the retailer’s website. “It’s a forwardlooking and really on-trend list that shows a very clear understanding of the ingredients that consumers object to and why they object to them,” he says.

It’s not necessary, though, for every chain to launch such a comprehensive free-from private label line.

Jorgensen suggests that retailers prioritize those ingredients and additives that consumers most want to avoid.

“If you look at the hierarchy of ingredients that consumers object to the most, the top three are artificial colors, flavors and preservatives,” he says. In addition, many consumers today want to avoid trans fat and high-fructose corn syrup.

Jorgensen points out that Batavia, Ill.-based Aldi U.S. has made strides in the direction of clean label with its own brands (see sidebar on page 30) without creating a completely clean product line.

“Aldi eliminated just a few things from its private brands — artificial colors and flavors and trans fats — and made a big deal about it,” he continues. “So even though Aldi didn’t make its products totally clean, the chain made good steps in that direction and it has been rewarded for it.”

Whether to reformulate existing store brands or

Health & Wellness roll out new clean and clear label lines should be based on retailers’ knowledge of their customers and long-term goals.

“The most important thing is to understand what your corporate strategic objectives are and have a very firm understanding of who your customers are and what their hot buttons are,” Lindsay says. “That will help inform the degree to which you want to embrace clean ingredients and avoid certain harmful ingredients.”

Austin, Texas-based Whole Foods Market and Fletcher, N.C.-based Earth Fare, for example, have been championing wellness and sustainability for years and have customer bases that have long been strict about what they put in and on their bodies, Lindsay notes. Consequently, he is not surprised that these organic food retailers are getting a lot of mileage out of the clean and clear label movement. Whole Foods recently introduced its “Eat Real Foods” marketing initiative, while the Southeastern chain has an audacious new slogan and program: “Live Longer with Earth Fare.”

changes tend to be the way to go, Jorgensen agrees.

“If you take an established private label line, it’s pretty hard to totally reformulate it overnight,” he notes. “But if you start a new brand like H-E-B Select Ingredients, you’ve got a clean slate and you can set new specs for your manufacturers to follow.”

Retailers should take heart that the barriers to entering the clean label realm are not as significant as one might imagine, Jorgensen says, noting that he was amazed by the ingenuity on display at the Clean Label Conference last spring in the Chicago area.

“It was an eye-opening experience for me to see the range of highly effective clean label solutions that ingredient manufacturers have already come up with,” Jorgensen shares. “For example, a couple of companies were showcasing ingredients made from plum juice that are just as effective at preserving deli meats as nitrites and nitrates are.

“The world of food technology is loaded with extremely intelligent and creative people who are coming up with natural alternatives to the ingredients that consumers object to. Sure, there is a little bit more cost. But many of the companies were demonstrating that the incremental cost per unit of doing this is actually very small.”

To be clear

It isn’t necessary for a chain to mimic Whole Foods and Earth Fare, however. Rather than reformulate an entire product line or launch a new clean label brand, retailers could test the waters by adding clean label SKUs to an existing line, Sheehan advises.

“Retailers that have multiple tiers could use one of their existing lines and reformulate a few items in two or three targeted categories,” she suggests. “If you have a low-priced line and a premium line, look to the premium line for reformulating or launching the clean label items. Alternatively, if you have a third tier that is organic, maybe that’s where you introduce the clean label SKUs.” From a cost-benefit perspective, incremental 36

Store Brands / February 2017 / www.storebrands.info

The transparency aspect of the clean and clear label revolution may actually be more daunting for store brands, which even while disclosing exactly what’s in or not in a product may not always reveal the item’s provenance, including the contract manufacturer or private label vendor that made it.

“Traditionally a private label puts a little bit of a barrier between the consumer and the origin of the product,” Jorgensen notes. “But rather than viewing this as a problem, it’s really an opportunity for private brands to engage in authentic storytelling.

That means telling where a product is made and who made it. What’s the story behind the product, and what was the thinking behind it?”

Storytelling begins with the package, Jorgensen says. But also playing key roles are the retailer’s website, its social media presence and in-store merchandising, including shelf talkers and digital signage.

And in the near future, smart phone apps combined with geolocation technology and SmartLabel bar codes will likely increase in importance.

“When retailers operate honestly and transparently — as many already do — consumers have a good understanding of what those brands stand for,” Lindsay says.

“They reward those retailers because they trust them.” SB Schierhorn, the managing editor of Store Brands, can be reached at cschierhorn@ensembleiq.com.

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Connecting with Consumers

Building brand buzz with social media

By Carolyn Schierhorn

Key is to leverage the right tool at the right time for maximum impact eyond its private label offerings, a retailer’s brand is the connection and chemistry the company creates with customers. Given that the vast majority of Americans today use at least one social media platform, supermarkets, mass merchants, convenience stores and drugstores need to leverage these channels to effectively communicate with consumers.

Social media’s importance cannot be overstated, emphasizes Carol Spieckerman, founder of Spieckerman Retail in Bentonville, Ark. Retailers need to embrace these platforms — especially Facebook, Instagram, Twitter and Pinterest — to tell the stories behind their store brands and showcase whatever the enterprise is doing in the realms of consumer health and wellness, environmental sustainability, animal welfare and other causes that resonate with shoppers.

38

Store Brands / February 2016 / www.storebrands.info

“Retailers need to get the word out and get credit for the work that they’re doing and the investments that they’re making,” Spieckerman says.

Retailers should still maintain thorough, welldesigned, easy-to-navigate websites that feature enticing photography so consumers can find the answers to just about any question they might have about the company and its brands. Social media drives traffic to a chain’s main website and vice versa, notes Jessie Kuhn, content strategist for Dorothy Lane Market, a small grocery chain with three stores in the Dayton, Ohio, area.

In charting their social media strategy, retailers should recognize the synergies that exist not just among their social media accounts and websites, but also among all of the electronic and print communication tools used by shoppers along the path to purchase, Kuhn says.

“People consume content in so many different

ways,” she observes. “We’re just trying to feed them in whatever way they are consuming it.” At Dorothy Lane, that includes a monthly publication, an electronic newsletter and direct mail pieces as well as Facebook, Twitter, Pinterest, Instagram and Snapchat.

Unlike other channels, however, social media fosters fun, informal interactions among a retailer’s customers and potential customers.

“We use social media because we want to have conversations with our guests in the places where they are,” shares Amy Bailey, communications manager for De Pere, Wis.-based Festival Foods, a chain of 20 stores located mainly in the Green Bay area.

With dozens of social media platforms and apps available in the United States and new ones constantly emerging, it can be challenging for retail chains to keep current. Rather than risk spreading themselves too thin across multiple media, leaving unfavorable impressions as a result, retailers should concentrate on a handful of key platforms, Bailey suggests. Although different social media channels have different strengths and user demographics, it’s crucial for all content to be consistent and on-brand, she says.

Where to be Used by 79 percent of Internet users and 68 percent of adults in the United States, Facebook not only is the grandfather of all social media platforms, but also continues to gain momentum, increasing its market penetration by 7 percent last year over 2015, according to Pew Research Center’s “Social Media Update 2016.” What’s more, Facebook draws its enthusiasts from all demographic segments: urban and rural, affluent and lower-income, collegeeducated and non-degreed.

While more women than men are on Facebook, the percentages are fairly close compared to most other platforms: 83 percent of women who are online use Facebook versus 75 percent of men, states the Pew report.

Just as significant is the amount of time people dwell on a platform. “We know that people on average spend 40 minutes a day on Facebook,” Bailey points out. “So, of course, we want to be in the places where people are spending their time.”

More than three-quarters (76 percent) of Facebook users report that they visit the site daily, while 55 percent visit several times a day, according to the Pew study. In contrast, 51 percent of Instagram users, 42 percent of Twitter users and 25 percent of Pinterest users report being daily visitors.

Thus, it is not surprising that digitally savvy retailers continue to devote attention to Facebook, which Mark Zuckerberg launched 13 years ago.

Festival Foods has roughly 120,000 Facebook fans,

Bailey notes. Dorothy Lane Market has more than 21,000 admirers who have “liked” the company’s Facebook postings, according to Kuhn.

Bailey enjoys the richness and versatility of Facebook, which she likens to a theme park with a multitude of attractions. “If you’re at a theme park and a magician is performing, you might walk right by without stopping,” she elaborates. “But if a group has formed around the magician, you’re more likely to stay. That’s how Facebook works. You have to set something out and let an audience build around it.”

Facebook is less “in the moment” than Instagram and Twitter, Bailey adds, so Facebook would not be the place to start a real-time conversation during an event. But Facebook would be an ideal platform for touting a new private brand, for example.

Festival Foods uses Facebook to promote the recommendations of the chain’s registered dietitians.

“Each month, we pull together some of their top picks for the month to help people find out about new items that we’re particularly excited about,” Bailey says.

The ease of posting videos to Facebook has always been a big draw. This is a place where a store can introduce consumers to local farmers or to employees who work behind the scenes, for instance.

“At Dorothy Lane Market, we’ve really recognized the power of video,” Kuhn says. “For example, we have a wonderful salad bar that people in the Dayton area just love. And there are many things we do to make it so wonderful. Everything is cut fresh every morning, and a lot of the dressings are house-made. So we made a video of these preparations and shared it with our followers on Facebook.”

In the past year, Facebook has introduced the ability to broadcast live videos, which has helped Festival Foods generate even more buzz around its products and staff, Bailey notes. “This has given us an incredible opportunity to showcase our experts when it comes to recipe creation and cooking demonstrations,” she says.

Dorothy Lane Market dedicates a Facebook photo album to snapshots of customers enjoying special moments in its stores with their family and friends. “A lot of times people will tag us as they are sharing these moments, so we can reach out to them if we think they might have a fun story to tell as well,” Kuhn says, www.storebrands.info / February 2016 / Store Brands

39

Connecting with Consumers noting that Facebook is the best platform for posting short human interest stories.

Instagram, which is owned by Facebook, has also become a vital platform for retailers because it is so popular with millennials. Nearly 60 percent of online adults who are 18 to 29 years old use Instagram, the Pew report points out.

Millennials commonly use Instagram to share photos of food with one another. Grocery retailers, in turn, have found the medium perfect for showcasing their prepared food, signature baked goods, and other fresh own-brand offerings.

“We are fortunate to have a very talented in-house photographer who takes amazing pictures of the products we have in our store,” Kuhn says, noting that Dorothy Lane Market has around 3,500 followers on Instagram. “We’ve found that the Instagram community responds very well to those beauty shots.”

Media, Pa.-based Wawa, meanwhile, encourages its customers to post photos on Instagram of themselves enjoying the convenience chain’s branded coffee and freshly prepared sandwiches.

Used by 45 percent of online adult women and 17 percent of online adult men, according to the Pew study, Pinterest is another important platform for displaying food and beverage photos. Women commonly use the virtual pin-board for cataloguing recipes, Kuhn notes, so recipe sharing is the main reason grocery retailers are on Pinterest.

“Sometimes our recipes on Pinterest include our store brand products,” she adds.

President Donald J. Trump’s favorite social media channel, Twitter is another key platform for grocery retailers — in part because it is used almost equally by men and women (approximately one-quarter of online adults of both genders) and frequented by higher-income, better-educated consumers.

40

Store Brands / February 2016 / www.storebrands.info

“Twitter is a great place to talk about events that are coming up,” Kuhn observes. “For example, we used it for our promotion on National Coffee Day last September and for March Madness last spring.

“We’ve found that a lot of media personalities in the Dayton area pay attention to what we’re saying on Twitter, so this is how we can get on their radar.

And sometimes things we are doing get integrated into their stories.”

Festival Foods uses Twitter to promote tailgatingtype snacks when the Green Bay Packers have games at Lambeau Field. “The Packers brand is really important, so we leverage that on Twitter in the days leading up to a game,” Bailey explains.

One of Twitter’s strengths, though, is its ability to stir emotion and generate feedback.

“We conducted a poll on Twitter in which we said, ‘The Packers are going to run the table. What would you like to eat on it?’ ” Bailey shares. “People could vote for our Oktoberfest brats, our taco dip, our potato salad, etc. It was a call to action-type initiative to get people interacting with us and make them aware of our brands. People were not only voting; they were also separately tweeting about our poll.”

Kuhn also likes the fact that Twitter users comment on events as they are happening. “This channel truly captures customers’ reactions,” she says.

What’s next?

Kuhn is experimenting with how best to use the fast and ephemeral Snapchat, a platform popular with teenagers and young millennials. For one event, Dorothy Lane Market’s Food & Wine Show, she created a Snapchat filter so attendees could share selfies framed with the retailer’s customized filter.

“The filter, which we paid Snapchat for, appeared only during the time of the event and in the location of our event,” Kuhn explains. “That was a cool thing to just try.”

As the youngest Snapchat users grow up, the platform will likely increase in importance for retailers, Kuhn predicts. “It’s good to understand how to use these tools so you can further develop them,” she says.

Without overextending themselves on social media, retailers need to keep abreast of the latest hot apps and new features on existing platforms.

“Whether it’s Facebook or a new platform that’s coming up, we need to be thinking of new ways to get people engaged,” Kuhn says. “I would encourage social media managers to test out a new feature or platform and see how it goes and then make a decision about whether it’s something that is right for your fans.” SB Schierhorn, managing editor of Store Brands, can be reached at cschierhorn@ensembleiq.com.

Emerging Fragrance Trends

Emotional connections Natural, customized and sophisticated fragrances are captivating consumers of personal care and household products

By Dana Cvetan

42

cents are influential. They can give comfort or cause alarm, encourage a good mood or a bad one. But what influences what scents people decide they like?

Several things: trends in lifestyle, fashion, food, health and wellness, as well as demographics and prevailing attitudes.

Today, retailers want greater control over everything that goes into their private brands so that they can effectively control sales, revenues, margins and profits, says Lori Miller Burns, director of marketing relations and communications for Arylessence Inc., a Marietta, Ga.-based fragrance and flavor manufacturer.

Managing fragrance in household and personal products is an important part of this effort, Burns explains.

“The key part of this is controlling the ingredients in the product that connect to consumers and influence the shopper’s buying decision, particularly the critical sensory ingredients driven by the consumer’s emotions,” Burns says. “Winning scents are what consumers are seeking and what shoppers are buying. Taking control of fragrance ingredients

Store Brands / February 2017 / www.storebrands.info

and making improvements happen should be a goal for every store brand retailer.”

What’s great about a store brand is how quickly it can get to market, says Adam Troyak, planning director for Dallas-based Shoptology, a shopper marketing agency whose clients include brands, retailers and private label manufacturers.

“Having an ear to the ground gives private label a real advantage in shaping and reacting to cultural trends,” Troyak adds.

Scent as differentiator Millennials and multicultural consumers in particular have embraced private brands, seeking them out and driving their growth, Troyak notes.

Millennials in particular are driving authenticity, product transparency and customization, affecting how scents are developed and used in products.

Scent can be a differentiator, and the ability for quick-turn product development allows private brands to stay closer to trends and capitalize with relevant fragrances where many times smell is the deciding factor in the to-buy or not-to-buy decision, says Troyak. “Consumers now expect a sensory delight in

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insights to laundry fragrances.

Emerging Fragrance Trends large-scale commercial products where cost matters, which gives private label an opportunity,” he adds.

Store brands have the opportunity to compete for every shopper, not just price shoppers, and build loyalty in the process, Burns says. “When you develop winning fragrances, you not only attract shoppers with the emotional and sensory benefits that really matter to consumers, you also develop the power to compete aggressively against national brands,” he explains.

Natural’s lure Sales of natural fragrance blends are expected to outpace the overall natural flavor and fragrance market, estimates The Freedonia Group, a division of MarketResearch.com., in its October report, “Natural Flavors & Fragrances.”

With forecasted annual growth of 5.2 percent until 2020, Freedonia predicts sales of natural fragrance blends will reach $290 million.

Health and wellness trends, as well as environmental concerns, are shaping fragrance preferences, Troyak says, with the natural/clean movement gaining in popularity.

“Our desire for good health influences how we react to fragrances,” Burns says. “For example, we love fresh, invigorating, uplifting and emotionally inspiring fragrances for our shampoos, lotions and hair-care products.”

The cosmetic and toiletry market accounted for more than three-quarters of natural fragrance blend sales in 2015, Freedonia reports. In that segment, skin care products are expected to offer the best opportunities for growth through 2020. The demand for body washes is also expected to bolster growth.

Sales of environmental fragrance goods — air fresheners, deodorizers, candles, potpourri and incense — are also expected to accelerate through 2020, according to The Freedonia Group.

Innovations in diffusers and other scent delivery systems could “reignite the relevance of

44

Store Brands / February 2017 / www.storebrands.info

home fragrance and expand usage occasions,” notes Carol Spieckerman, president of Spieckerman Retail, a retail strategy and communications agency.

“Fragrance is the latest category to get swept up in the convergence of technology and everyday products. On a broader scale, retailers are returning their attention back to harnessing the power of physical retail experiences after being distracted by digital over the past few years. Fragrance is part of that picture as retailers explore the potential to create multi-sensory environments,” Spieckerman adds.

In the cleaning product segment, Freedonia expects above-average sales advances for products with natural fragrance blends, especially in dishwashing and laundry detergents, but also in sanitation goods and polishes. Cleaning products accounted for nearly one-fifth of total natural fragrance blend demand. Consumer demand for products free from artificial additives also continues to grow, driven by concerns over the effects of synthetic ingredients on health.

Consumers are growing more interested in natural product claims, but the lack of standards for making such claims can cause confusion for consumers, according to global market research firm Mintel’s 2016 September report, “Fragrances – US – What’s In?” The report concludes that the consumer trend toward demanding transparency will lead them to demand to know what ingredients are used in fragrances.

Customizing scents Scent preferences are highly personal, and that truth has driven the popularity of customized fragrances, the trend behind the growth of layering kits and fragrance oils, Mintel states.

Consumers have come to expect product customization, Mintel points out, and it is particularly relevant in the fragrances market, where nearly 60 percent of consumers have either tried or are interested in trying custom-blended fragrances.

Initially seen in the fine fragrances market, customization has moved into mainstream products, the report notes.

Store brands can succeed by shaping both fragrances and fragrance options, especially for the experiential and experimental millennial and Generation Y shoppers, who now surpass even the baby boomer segment, Burns says.

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Emerging Fragrance Trends and character of products they are buying, and what quality and value mean to them, he advises.

Understanding the scent preferences of different ethnic groups, from the strength of the scent to the specific types of fragrances that incite emotional connections is also vital to store brand product development, Burns adds.

So fine It’s not a pine and strawberry world anymore. In line with Americans’ increasingly cultured taste in food has come increasingly refined taste in scents, Troyak says.

Adventurous and scent-literate, consumers — especially those on the younger side — seek out sophisticated and nuanced fragrances, he adds.

“Fine fragrances influence products of all kinds, especially in personal care, and surprisingly, also in laundry. Laundry fragrances are a direct derivative of fine, fashion and designer fragrances,” Burns notes.

The changing male demographic that is resulting in an increasing number of single men and single father heads-of-households is also having an important impact on scent trends, Troyak says.

There is a move toward more masculine fragrances in household products, he explains, with

46

Store Brands / February 2017 / www.storebrands.info

scents such as oak and musk leading the way. Men prefer woody fragrances, and some new household cleaning brands targeted to men often feature bold, outdoorsy types of scents, Troyak explains.

It’s not a pine and strawberry world anymore. In line with Americans’ increasingly cultured taste in food has come increasingly refined taste in scents.

Food and beverage trends also affect the fragrance market. New, innovative scent pairings such as lime and sea salt are an extension of food and beverage mashups, such as those seen in flavored sparkling waters, Troyak observes.

There’s even an ice cream sundae inspired by fragrance. The Mintel report noted that Estee Lauder joined forces with Jeni’s Splendid Ice Cream in Los Feliz, Calif., to introduce a toasted coconut and cherry sundae echoing the notes in its Bronze Goddess fragrance. SB Cvetan is a freelance writer based in Barrington, Ill.

Category Intelligence: Pasta, Rice and Grains

Image upgrade The addition of healthful items to the own-brand pasta, rice and grains lineup, could bring growth to a stagnant segment

By Kathie Canning

hether part of a main dish or eaten on the side, pasta, rice and grains long have been diet staples for U.S. consumers. Few other foods rival their versatility, convenience and value.

The Washington, D.C.-based National Pasta Association reports that the average American consumes approximately 20 pounds of pasta annually. And Americans eat even more rice. The University of Arkansas — situated in the state that produces more than 40 percent of all U.S.-grown rice — notes that per-capita rice consumption now stands at slightly more than 31 pounds.

But data from Chicago-based market research firm IRI reveal little growth for the pasta and rice categories over the past year (see chart on page 48).

According to “Pasta, Rice and Grains — U.S.,” an April 2015 report from global market research firm Mintel, stagnant sales within the pasta, rice and grains segment can be attributed to perceptions that, in general, the products are high in gluten and carbohydrates and might be too processed.

Despite the challenges, there are still opportunties for retailers to grow private brands within the segment.

“Brands must provide more healthful options to spur sales,” Amy Kraushaar, U.S. category manager of food and drink and foodservice for Mintel, wrote in the report. “Emerging grains can help breathe new life into this category, with additional focus on new flavors and health benefits.”

Within specialty grains and specialty pasta, Agron Kosova, president of Naperville, Ill.-based Fine Italian Food, points to increased consumer interest in non-GMO ingredients. (It’s worth noting that no genetically modified wheat is currently being grown anywhere in the world.)

“There is a real focus on quality and traceability — actually knowing where the grain comes from and where it’s being consider adding processed,” adds Paul Laudiero, emerging grains an associate with GHIGI Food Industries in Manassas, Va. “With and organic pasta that comes a larger emphasis on options to the organics, as well as non-GMO.” store brand mix.

Liz Housman, director of marketing for Minnetonka, Minn.-

based Dakota Growers Pasta Co., says the organic pasta subcategory is growing at an annual rate of nearly 3 percent in dollars and equivalent volume, higher than the overall category. The biggest purchase hurdles for consumers are price and availability at their preferred stores Gluten-free pasta, too, remains in a strong growth mode, Housman says, with data from Nielsen showing 7 percent dollar growth and 10 percent equivalent dollar growth for the subcategory during the 52 weeks ending Nov. 26, 2016. Retailers also should look to whole grains and ancient grains to meet consumer demand for better-for-you offerings.

“Consumers are looking for added nutrition from everything they eat, and whole and ancient grains give an added boost of protein, fiber and other nutrients to a very traditional carb-loaded category,” explains Brett Vegas, marketing manager for Boulder, Colo.-headquartered Sage V Foods.

Indeed, ancient grains came in at No. 14 on the National Restaurant Association’s recently released “What’s Hot: 2017 Culinary Forecast.” And although most consumers are familiar with wholegrain pasta, they might not know that whole-grain rice comes in colors other than brown. The Whole Grains Council offers up Himalayan Red Rice and

Don’t

neglect consumers’ desire for convenient packaging and ease of preparation.

Do

www.storebrands.info / February 2017 / Store Brands

47

Category Intelligence: Pasta, Rice and Grains Purple Thai Rice as two examples. Retailers might find product development success here if they pair it with a little consumer education.

Newer packaging formats could help drive sales in the segment, too. Here, convenience rules. Paul DeStefano, president of Quality Pasta Company in Charleroi, Pa., notes that the demand for such products goes across all consumer age groups.

“This is demonstrated in the growth of microwavable macaroni and cheese cups coming from both brands and private label,” he says.

These single-serve convenience items now can be found not only in four-packs, but also in 8- and 12-packs. And when retailers combine this graband-go cup format with product innovation, they further boost the chances of own-brand success.

Pasta, rice and grain category performance Noodles Private Label

Spaghetti/macaroni/ pasta (no noodles)

Dry rice

All Brands

Private Label

All Brands

Private Label

All Brands

Dry rice mixes Private Label

All Brands

Ready-to-serve rice Private Label

All Brands

Dollar Sales (in millions)

$67.1

$261.7

$539.0

$1,923.4

$291.2

$1,363.3

$13.9

$677.2

$11.0

$282.6

Change vs. Year Ago

+5.1%

+5.2%

-1.5%

0.0%

+0.5%

+0.4%

-11.2%

-1.7%

+4.6%

+8.6%

Dollar Share

100%

25.7%

100%

28.0%

100%

21.4%

100%

2.1%

100%

3.9%

Unit Sales (in millions)

37.9

126.7

428.8

1,428.5

116.5

384.0

11.7

508.0

6.2

144.2

Change vs. Year Ago

-5.9%

+0.7%

+2.3%

+0.7%

-2.4%

+0.6%

-14.8%

-0.6%

+1.4%

+7.5%

Avg. Price Per Unit

$1.77

$2.07

$1.26

$1.35

$2.50

$3.55

$1.18

$1.33

$1.78

$1.96

Source: IRI, a Chicago-based market research firm. Total U.S. supermarkets, drugstores, mass market retailers, military commissaries and select club and dollar retail chains for the 52 weeks ending Oct. 30, 2016.

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Category Intelligence: Pasta, Rice and Grains

Do

cross-merchandise own-brand pasta, rice and grains with complementary items to provide lunch and dinner solutions.

50

DeStefano points to the success of his company’s Muscle Mac microwavable macaroni and cheese.

Fortified with vegetable protein, the GMO-free product boasts 20 grams of protein per serving.

Convenience is a desired attribute within the rice and grains/ancient grains segments, too, he adds.

“We also see demand for cleaner formulas and ease of preparation as consumers seek cleaner and easier-to-prepare foods,” he says.

Housman points to pot-ready spaghetti, which is cut to 5 inches in length, as a convenienceminded packaging option to add growth to the category Pouches also ramp up the convenience factor. Retort pouches in the dry aisle, as well as microwavable pouches in the freezer case, allow consumers to prepare quality rice in a few minutes, Vegas explains, and “are driving growth in relatively stagnant categories.”

When it comes to packaging finishes, matte is in, Laudiero notes. “More supermarkets are spending time developing attractive packaging for their private labels that both tells a story and stands out on a shelf,” he says.

Because pasta, rice and grains make great partners for so many other foods, some creative merchandising

Store Brands / February 2017 / www.storebrands.info

Don’t

could help attract shoppers to own brands within the segment. limit own-brand “Some growing brands like whole-grain rice P.F. Chang’s and InnovAsian are creating product lines that offerings to have separate rice and meats basic brown. and have been effective in merchandising these products together,” Vegas says.

Those meal occasions need not be limited to dinner. Kosova suggests cross-merchandising store brand pasta with complementary items to provide lunch solutions for shoppers.

Pasta promotions also command attention Housman says that Dakota Grower Pasta Co. has helped its private brand partners manage successful promotions built around shoppable pallets and display shippers. The company uses consumer analytics to build out promotional schedules in partnership with retailers, promoting egg noodles and lasagna in the cold weather months; rotini, rainbow rotini and shells in the warmer “summer salad” months; or various core pasta throughout the year. SB Canning is a freelance writer from Libertyville, Ill.

Category Intelligence: Frozen Appetizers and Snacks

A wellness wall Retailers seeking to maximize private brand frozen snack and appetizer revenues must address shopper health concerns

By Rich Mitchell

he frozen snack and appetizer sector is facing an identity crisis.

While many consumers are embracing products and category sales are forecast to increase over the next few years, a base of shoppers still perceives frozen selections as unhealthy, which has limited revenue growth, notes Mintel, a global market research firm.

Mintel is projecting sales of frozen snacks to reach about $5.1 billion in 2020, up from an estimated $4.6 billion in 2015.

Unlike the total snack sector, which is generally immune to health matters, many potential frozen snack customers say they have issues with product ingredients, Mintel notes in its April 2016 “Frozen Snacks, US” report.

In its January 2016 online survey of 2,000 adults, Mintel states that consumers expressed concerns about calories (cited by 40 percent of respondents), fat (36 percent) and salt (33 percent). Nevertheless, the prospect of vibrant category activity remains.

“There is a strong consumer sentiment that snacks are, by their nature, an indulgence,” Mintel states. “But by that same token, brands have an opportunity to leverage healthier attributes and to appeal to consumers looking for snack options with fewer, or devoid entirely of, artificial ingredients.”

Snacks with cleaner labels and relatively few ingredients will particularly resonate with parents seeking snack options for their children, Mintel indicates. Though 40 percent of consumers view frozen appetizers as convenient and 35 percent as tasty, just 13 percent rate the items as kid-friendly, the Mintel survey found.

However, because more private brand manufacturers are adding organic lines, the category is on track to garner a more positive wellness perception, Mintel notes. “While younger consumers are a mainstay of the frozen snack category, consumers of all ages appear interested in, if not healthier frozen snacks, then at least options with fewer artificial ingredients and the appearance of being less processed,” Mintel states. develop offerings The interest in wellness is that are less making it increasingly important processed. for retailers to provide shoppers with ample product details.

“We are living in the information age and consumers want information,” notes Erin Ronzheimer, director of marketing for West Liberty Foods LLC, a West Liberty, Iowa-based supplier. “The most challenging part is knowing and understanding which information they want or need, which information they can understand and, therefore, which information should be included on packaging without becoming overwhelming or over-informed.”

Ingredient decks with minimal elements can be especially attractive as they often indicate the absence of processed additives, says Michael Silverman, vice president of sales and marketing for Bylada Foods LLC, a Moonachie, N.J.-based supplier of frozen mini pizza bagels and filled potato skins. “The more products that retailers can offer with short decks, the better,” he notes.

Packages also should list product certifications and health claims, adds Denise LeBrun, executive vice president at The Fillo Factory Inc., a Northvale, N.J.-based frozen appetizer supplier.

“Consumers seem to prefer clean, easy-to-read packaging,” she states. “They also want to know case counts, ingredients and nutritionals. Among the most popular items are those with clean ingredients and are vegetarian, low sodium, nonGMO and gluten-free.”

Don’t

be hesitant to offer exotic and bold flavors.

Do

www.storebrands.info / February 2017 / Store Brands

51

Category Intelligence: Frozen Appetizers and Snacks Such nutritional claims are becoming a key factor in triggering greater sales, Ronzheimer states.

“Shoppers want ingredients that are recognizable, and they also want to know where their food comes from,” she says. “For 2017, consumers will focus on items that are easiest and fastest to make while maintaining those same ‘healthy’ aspects.”

In addition to their interest in wellness,

shoppers also want exotic new flavors, she notes, adding that popular options include Asian fusion, Korean selections and Indian-inspired tastes.

Wait and learn

Though retailers can potentially generate greater private label activity by offering more products that accentuate health and have unique flavors, national brand manufacturers should typically be the first to launch such options, Silverman notes.

Retailers often lack the Frozen Appetizers/ Frozen Breaded deep pockets and marketing Frozen Pretzels Snack Rolls Vegetables expertise that enable national brands to adequately test Private All Private All Private All and support new concepts, Label Brands Label Brands Label Brands he states, noting that it is Dollar Sales (in millions) $140.80 $1,820.30 $3.90 $29.70 $4.90 $73.10 better for the merchandisers Change vs. Year Ago 8.40% -0.30% -26.50% -9.90% -6.50% -1.40% to concentrate on their core Dollar Share 7.70% 100% 13.30% 100% 6.60% 100% private brands and only roll out Unit Sales (in millions) 31.6 418.6 2.2 10.6 2.2 24.4 “me-to” items if national brand Change vs. Year Ago 1.20% -0.50% -18.80% -8.80% 0.30% -3.40% innovations are successful.

Avg. Price Per Unit $4.46 $4.35 $1.75 $2.81 $2.19 $2.99 “It takes a lot more effort to create the turns on a unique, Source: InfoScan Reviews, IRI, a Chicago-based market research firm. Total U.S. supermarkets, drugstores, mass market retailers, military commissaries and select club and dollar retail chains for the 52 weeks ending Oct. 30, 2016. differentiated item,” Silverman

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Category Intelligence: Frozen Appetizers and Snacks

Do

have in-store demos to get shoppers to try store brand frozen snacks.

says. “Because there aren’t many retailers who have been successful at creating products, they should focus on enhancing value in existing selections, such as by maintaining consistency.”

Yet, many dedicated store brand buyers are willing to try new options in product lines that they trust, Ronzheimer notes.

To maximize revenues, meanwhile, it is most important for retailers and suppliers to create products that are in line with shoppers’ evolving behaviors and attitudes, Ronzheimer states.

“Retailers should be constantly researching and learning about their consumers, while suppliers have the opportunity to research and learn food industry and flavor trends,” she notes. “As a collaborative team, they should then be able to develop on-trend products that meet the consumers’ needs.”

In addition to developing pertinent selections, it also necessary for the parties to design merchandising strategies that spotlight the range of private brand frozen snacks and appetizers, Silverman says.

Among possible initiatives is having a prominent store brand section in the frozen

Don’t

case and cross merchandising the selections, such as by enabling fail to distribute consumers to purchase any two coupons at products for $5, he notes.

“All private label packaging checkout that also should have a similar look to alert customers create cohesiveness and get the to store brand shopper addicted to buying the products. same brands,” he states.

Coupons also can bolster awareness and interest in store brands, Silverman says.

Retailers can distribute savings coupons for me-too items at the checkout during national brand purchases or e-mail private brand coupons to every snack or appetizer buyer, who the merchandisers can identify through their loyalty programs, he notes.

“Stores also should demo private label products,” Silverman adds. “To do so is costly, but if a retailer truly believes in the item, the expense is worth it because it creates equity in the long run. They need to find ways to get the selections into the consumers’ mouths.” SB Mitchell is a freelance writer from Wilmette, Ill.

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Category Intelligence: Frozen/Canned Fruits and Vegetables

They have their place Canned and frozen fruit and vegetables face competition from their fresh counterparts, but retailers that deliver on-trend private brands could increase sales

By Kathie Canning

espite their quest for health and wellness — and ever-increasing awareness of the critical role many fruit and vegetables play in attaining it — Americans aren’t necessarily packing their plates with extra strawberries and spinach.

According to an October 2016 report from USDA’s Economic Research Service, per-capita consumption of fruit fell from a high of 132.1 pounds in 1999 to 119.9 pounds in 2014. And per-capita consumption of vegetables fell 7 percent during the same timeframe, notes “State of the Plate,” a 2015 report from the Hockessin, Del.-based Produce for Better Health Foundation. However, three longtime fruit and vegetable staples that have fallen out of favor with some health-conscious consumers — orange juice, potatoes and head lettuce — account for much of the decline, USDA reports.

Canned and frozen fruit and vegetables, meanwhile, continue to face stiff competition from their fresh produce cousins, which many consumers believe to be more healthful. Recent shifts in consumer preferences adversely impacted growth within the canned produce segment, in particular, between 2011 and 2016, reports IBISWorld.

“However, rising fruit and vegetable prices have convinced more cost-conscious consumers to pursue lower-cost canned produce,” IBISWorld states in its May 2016 “Canned Fruit & Vegetable Processing in the US” report.

And frozen fruit remains a bright spot.

“Frozen fruit has benefitted strongly from assuring consumers that the freezing process preserves fruit’s taste, texture and nutrients,” states William Roberts Jr., senior food and drink analyst for global market research firm Mintel, in the company’s July 2016 “Fruit — US” report.

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consider millennials’ need for nutritious, portable mini meals.

Add protein; go organic To grow private brand sales within the canned and frozen fruit and vegetable segment, retailers will need to focus new product development on new and emerging consumer-centric trends. One such trend worth pursuing on the frozen

vegetable side is that toward protein, notes Jay Caton, director of sales and marketing for Hanover, Pa.-based Hanover Foods Corp.

“Plant protein blends that include protein-rich ingredients are on-trend,” he says. “Plant proteins like beans not only fulfill nutritional expectations, but leave consumers feeling full.”

Such blends also recognize the fact that many U.S. consumers, particularly millennials, aren’t eating the traditional three square meals a day. Instead, they are eating four to six smaller meals, Caton notes, and are looking for options that not only are nutritious and taste great, but also can be prepared quickly.

Retailers will want to consider adding organic prepared fruit and vegetable items, too. Organic products will continue to see double-digit growth annually over the next five years, maintains Andy Russick, vice president of sales and marketing for Pacific Coast Producers in Lodi, Calif. Caton adds that organic options are of high interest to millennials.

“Cost-conscious millennials are still willing to spend more on foods that are considered a healthier alternative such as organic frozen vegetables,” he says. “Frozen vegetable organic sales continue to outpace category growth.”

There is also the trend toward no artificial ingredients and simple ingredient statements. Russick points to high consumer interest in ingredient statements

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forget to call out benefits such as “low sodium” and “GMO-free” on packaging.

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Category Intelligence: Frozen/Canned Fruits and Vegetables that boast five or fewer pronounceable and understandable ingredients.

The rising popularity of breakfast bowls featuring acai or dragon fruit puree, meanwhile, presents an opportunity on the frozen fruit side, says Alex McIntosh, vice president of sales for Wake Forest, N.C.-headquartered Imperial Frozen Foods. He expects interest to grow not only in frozen purees made with traditional fruit, but also in those made with exotic fruit.

Russick also points to opportunity in “serve with”

fruit and vegetable products. Consumers are looking for ready-to-use items that they can combine with other ingredients to create a healthful meal or snack.

And to help consumers get more vegetables into their diet while also aiding them in their culinary pursuits, retailers might want to consider adding frozen riced vegetables to the store brand mix.

Processed finely to be rice-like, riced vegetables cover multiple usage occasions, Caton explains. They can be roasted, baked or sautéed — and can be used as a side dish, as a replacement for carb-rich items such as rice or pasta in a main course, and even as an ingredient in pizza crust.

Consider portability, value packs Updated packaging, too, could help retailers boost interest in new or existing own-brand canned and frozen fruit and vegetables.

Portability is important to millennials, Caton notes, many of whom also are “thrill-seeking foodies.”

“Frozen mashed vegetables in convenient microwavable trays serve as a healthy and tasty meal replacement or an innovative side dish that can complement any meal,” he says.

Portable items must also be “ready to use [or] ready to combine, eye-popping and convenient,” Russick adds.

On the frozen fruit side, package size is an important consideration. Consumers are gravitating toward larger pack sizes, McIntosh notes, shifting from 12-ounce and 14-ounce bags to 32-ounce, 48-ounce and even 64-ounce formats.

“Consumers are looking for better value to coincide with their increased usage. The 48-ounce bag size is now the No. 2-selling pack size by dollar sales and shows a 39 percent increase, while the traditional 12-ounce bag is seeing a 4 percent decline,” he explains, citing data from market research firm IRI for the 52 weeks ending Oct. 2, 2016. “While we are seeing some growth in the smaller 10-ounce bags, that is being driven by discount retailers looking to hit lower price points.”

When it comes to canned fruit and vegetables, retailers will want to think outside the traditional can, adding “stackability, ease of opening [and] more colors and embossments,” Russick says. He also points to the growing importance of recyclability and sustainability for packaging overall.

“Forty percent of food dollars are 56

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at Visit Us st e Expo W

Booth #4550

Category Intelligence: Frozen/Canned Fruits and Vegetables

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address consumers’ desire for largervalue bags of frozen fruits.

now spent by millennials, who will demand that manufacturers work harder to take better care of the planet,” he adds.

The right on-pack language also is crucial for own-brand canned and frozen fruit and vegetables.

Positives such as BPA-free, GMO-free, lower sodium, no additives and more could help sway a sale.

“Callouts are becoming more important each year,” Russick says, predicting that when they implement the new nutrition labeling changes mandated under the Nutritional Labeling and Education Act, most U.S. retailers will take the opportunity to enhance the “goodness callouts” on their branding.

Tout the benefits Retailers will want to put some marketing and merchandising muscle behind their store brand prepared fruit and vegetables, too.

On the marketing front, perhaps the most important tool is education, considering that many consumers believe canned and frozen produce items are nutritiously inferior to their fresh equivalents. Retailers could emphasize the products’ convenience, nutrition and taste benefits on in-store signage, on their

Don’t

websites and via social media.

The Produce for Better discount the Health Foundation could help here when it comes to messaging power of content, offering a variety of retail educational marketing toolkits on its website marketing tied (pbhfoundation.org). One of the to canned and toolkits, “Why All Forms Matter,” frozen produce. details the benefits of — and dispels some of the misconceptions associated with — each form of produce, from fresh and frozen to canned, dried and even juices.

And a bit of creativity could help free up space on the merchandising side. For example, most of the sales for frozen whipped topping take place around the holiday season, but most retailers don’t adjust that space post-holiday season to free up room for alternative products, McIntosh notes.

“Several retailers have now made the changes to limit the shelf space for this slower-moving product and grant the additional shelf space to private label frozen fruit, which drives higher sales and margins,” he says. SB Canning is a freelance writer from Libertyville, Ill.

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Category Intelligence: Pet Care Products

Top dog Premium natural products, stylish accessories could help unleash spending on store brand pet care items

By Carolyn Schierhorn

s with most other categories, millennials are having a tremendous impact on pet care products, including food, treats, chews, toys, outfits, accessories and related items.

In its February 2016 report “Millennials as Pet Market Consumers,” Rockville, Md.-based Packaged Facts identified 43 million pet owners among 18- to 34-year-olds in the United States — 31 percent of all pet owners in this country.

Approximately 74 percent of millennial “pet parents,” as the pet care industry likes to call them, own a dog, while nearly 50 percent own a cat, states the American Pet Products Association (APPA).

A 2014 study by Arlington, Va.-based Wakefield Research revealed that 76 percent of millennials are more apt to “splurge” on their pets than on themselves, including on premium pet treats and fancy beds.

“The humanization of pets is leading to an explosion of innovation in pet products,” observes Mike Thomas, vice president of development for Dallasbased QT Dog, a supplier of private label natural dog treats, bowls and festive cravats. “It seems that if you make it for people, you can make it for pets.”

When shopping for pet products at supermarkets, mass merchants, club stores and drugstores, consumers of all generations do look for value when purchasing store brands. But to grab market share from pet specialty stores and turn the pet aisle into a destination, retailers should develop a tier of standout premium own-brand offerings, advise the category’s private label vendors.

In the pet food subcategory — a $24 billion segment, according to the APPA — the leading trends mirror those in the human food industry, with consumers increasingly seeking healthful, natural, organic and limited-ingredient products.

“All-natural, organic and USA-made are all major drivers for pet product developers,” Thomas says.

In addition, health-conscious put more consumers are looking for dietary imagination into supplements and products with packaging and wellness or functional benefits displays. for their pets, says Chris Ruben, chief marketing officer for New

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Hamburg, Ontario-headquartered EuroCan Pet Products, who notes that his company has been manufacturing natural dog treats such as braided bull pizzels for 25 years.

Consumables with character Pet food, treats and non-food consumable products hold particular promise for private branding, points out Heather Govea, vice president of private label for Bern, Kan.-based C.J. Foods Inc., a manufacturer of pet food and treats.

“The pet consumable category is less mature than other private label [grocery] segments, which presents a great opportunity for retailers,” she emphasizes. “The premiumization of pet food, for example, is an ongoing trend in the pet industry that is carrying over into private label.”

Having a top-tier line of own-brand food, treats, chews or even pet shampoo allows retailers to attain better margins than they can with national brand products. It also makes a statement about a retailer’s concern for pet health and well-being.

“While price points are still a driver within private label pet food programs, we are seeing that consumers can and will pay for a product they perceive to be ‘better than,’ ” says Govea, noting that her firm manufactures grain-free, limited-ingredient and other premium pet foods.

Similarly, Phoenix-based Leclerc Pet Care manufactures a full line of grain-free organic baked goods containing “all human-grade ingredients,” says Lindsay Muzychenko, sales director for U.S. pet care at the company. “We also have launched a human-grade dog granola bar, which provides a great convenient, individually wrapped item that pet parents can take with them on trips, on hikes, etc.”

Single-ingredient items are actually more

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fail to recognize that some consumers will pay a premium for better quality.

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Category Intelligence: Pet Care Products common in the pet product realm, points out Stephen Trachtenberg, owner of Hudson, N.H.based Chasing Our Tails, which makes Beef Marrow Bones and several antler chews for dogs.

Trachtenberg notes that antlers are “a derivation of nature” — a completely sustainable, renewable resource that is also healthful. They are shed

Pet care product category performance Dog/Cat Needs

Dog Biscuits/Treats/ Beverages

Private Label

All Brands

Private Label

All Brands

Dollar Sales (in millions)

$559.4.3

$2,311.6

$246.4

$2,324.6

Change vs. Year Ago

+10.0%

+2.7%

+7.4%

+4.8%

24.2%

100%

10.6%

100%

Dollar Share Unit Sales (in millions)

92.4

338.9

66.6

523.2

Change vs. Year Ago

+4.8%

+1.2%

-2.7%

+0.6%

Avg. Price Per Unit

$6.06

$6.82

$3.70

$4.44

Source: InfoScan Reviews, IRI, a Chicago-based market research firm. Total U.S. supermarkets, drugstores, mass market retailers, military commissaries and select club and dollar retail chains for the 52 weeks ending Oct. 30, 2016. Note: Does not include all pet care subcategories.

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naturally, consumed in the wild by a number of woodland creatures such as porcupines and squirrels and are rich in nutrients, including calcium, phosphorus and manganese.

“Antler has become a commodity product that is available for private label from many different suppliers,” adds QT Dog’s Thomas, noting that antlers nonetheless command a premium price.

“Retailers of all stripes have learned that they can sell a $14.99 [antler] chew with their name on it in addition to a $1.99 hunk of rawhide.”

EuroCan, for its part, makes a number of single-ingredient wood-smoked bulk treats for dogs, including Beef Hock, Crown Knuckle, Beef Rib, Beef Hock and Beef Humerus.

Consumer interest in frozen and freeze-dried dog and cat food, including raw food, is another high-growth trend, says Melissa Olson, marketing director for Green Bay, Wis.-based Carnivore Meat Company, which offers its Vital Essentials brand of raw pet food for private label.

“A category-specific trend we’re seeing for raw pet food is the demand for freeze-dried options as compared to the declines experienced by dehydrated pet foods,” Olson notes. “A recent

study from GfK [a global market research firm] shows that freeze-dried foods have more than doubled their market share … Carnivore Meat Company has responded to this trend by producing the largest variety of raw freeze-dried options.”

Just as human consumers, especially millennials, tend to snack throughout the day rather than having three square meals, shoppers are looking for similar versatility in their pet food products. “We’re seeing pet parents finding multiple uses for our frozen and freeze-dried items,” Olson shares. “For example, our niblets are being served as treats or snacks by some, while others choose to feed the product as an entrée or as a supplement or mixer combined with their existing pet food.”

Consumer demand for simple clean- and clearlabel products also extends to cat litter and anything else that comes in contact with a pet’s fur, hair or skin.

“Lightweight and natural litters are starting to become very popular, as consumers are more concerned about dust and ingredients,” says Shannon Supanich, marketing and public relations manager for Cedarburg, Wis.-based Pioneer Pet Products, which offers SmartCat All Natural and SmartCat Lightweight litter for private branding.

On the wild side Wild bird feed is commonly sold in the pet food aisle of supermarkets and other large grocery retailers. Stores would also be wise to cross-merchandise it alongside bird feeders in the lawn and garden department (if available) or in a seasonal aisle that features backyard items, says Bill Gleason co-owner of Minnetonka, Minn.-based Wildlife Sciences, which manufactures suet cakes for private branding.

“Our suet cakes are unique because we wrap them individually in a candy bar-type wrapper while most vendors just put suet cakes in a tray,” Gleason says. “We wrap them because suet is fat and can be a little bit messy to handle. The way we package the cakes, people can tear the wrapper open, pull it back and place the cake in a feeder without getting the suet on their hands.”

But fashion rules when it comes to pet playthings, attire and accessories, according to Supanich.

“Influenced by social media and new popular websites such as Houzz, consumers are more conscious than ever about style,” she says.

Rev up the pet aisle Unlike pet specialty stores, which take a “consultative approach” to selling, as Trachtenberg describes

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2/6/17 7:53 PM

Category Intelligence: Pet Care Products it, grocery retailers typically do next to nothing to merchandise pet care products, vendors maintain.

They note that innovative packaging and creative displays would invigorate sales.

Dog treats, for example, commonly come in a stand-up resealable pouch. “Everybody is using the same generic type of packaging,” which is incredibly monotonous, Trachenberg insists. He travels to Europe to seek out packaging innovations that will enable Chasing Our Tails’ products to stand out on store shelves. For example, using a technology developed in Denmark, he is able to make bags in different shapes, one of which looks like a mason jar.

Pet product packaging “is where mass market and grocery really need to get with it like they have in their other aisles,” Trachtenberg says.

For certain items, retailers can even appeal to shoppers’ olfactory sense with packaging, Trachtenberg adds. “One of the things we did early on is put our smoked bones in a mesh bag, so you can smell the hardwood smoke,” he says. “So when you walk down the aisle at Whole Foods [which carries the product], it smells like barbecue. You’re eliciting a whole new emotion.”

Many merchandising and promotional initiatives,

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some very simple, can boost pet care sales in general and store brands in particular. For instance, “attractive end caps move product,” Thomas points out.

“Retailers should prominently display store brands to drive awareness and sales,” Ruben adds.

“They should invest in marketing their store brands via rewards programs and in-store and on-shelf signage.” Pet owners, moreover, love heartwarming stories. Retailers should leverage the strong emotional bond humans have with their animal companions with effective storytelling in the store, on their websites and in their advertising circulars.

As Govea notes, it’s also a way to distinguish premium private brands from national brands.

“Engagement with consumers is key to selling pet food, particularly if your private brand program is not price point-driven but driven through quality and a compelling brand message,” Govea says.

“Storytelling at the consumer level is essential to differentiate store brands from national brands, compelling consumers to try a new pet food or buy your products again.” SB Schierhorn, managing editor of Store Brands, can be reached at cschierhorn@ensembleiq.com.

Category Intelligence: Vitamins and Minerals

Steady and strong Americans are embracing vitamins and supplements for many reasons, providing a healthy opportunity for private branded products

By Lawrence Aylward

riven by consumers who want to be healthy and fit, the vitamins and supplements category is busting out. Picture Marvel Comics’ Bruce Banner transforming into the powerful Hulk, his muscular body bursting through torn clothes.

In a recent study, New York-based Nielsen cited the “nutritional” category as one of the top 10 categories for dollar growth in the grocery department.

In 2016, the category grew 9.3 percent in dollar sales, with unit volume growth of 2.9 percent.

According to market research firm IRI, the vitamins and supplement category grew 3.8 percent overall in 2016 from 2015, with dollar sales of more than $6.8 billion. Private label sales of vitamins and supplements grew 1.4 percent in 2016, totaling about $1.9 billion of the category, a 27.5 percent dollar share.

Manufacturers of vitamins and supplements in private brands aren’t surprised by the category’s growth, which they believe is directly related to skyrocketing healthcare costs.

“Due to high healthcare costs and an increased emphasis on preventive care, consumers are willing to try supplements as an option to maintain their health,” says Patricia Jones, senior manager of new business development for Miami Lakes, Fla.-based Mason Vitamins.

Adam Kilpatrick, chief science officer for Essex Junction, Vt.-based FoodScience Corp., says another factor spurring the category’s growth is that middleaged people are witnessing the rapid decline of their parents and don’t want to experience something similar.

“They don’t want to be on 12 different medications,” Kilpatrick adds.

Jeff Reget, account manager of private label nutrition products for Agropur Ingredients in LaCrosse, Wis., says that “consumers are investing more in their health on the front end rather than the something-is-wrong-with-me-andnow-I-have-to-fix-it end.”

Rob Hollnagel Jr., director offer in-store of sales contract manufacturing materials for Agropur, says more people to educate are simply into fitness these consumers. days, which has spurred the category’s growth.

What’s hot Tim Evans, national sales manager for Carrollton, Texas-based Aegle Nutrition, describes the vitamins/ supplements category as “dynamic.”

Evans says supplemental liquid vitamin products “are as hot as can be.” So are products that tout weight loss during sleep.

Evans sees opportunities in brain-boost products as well as eye health.

“The vegan sector is also getting attention,” he adds.

“So we are looking into more plant-based proteins.”

Jones says condition-specific products are popular, such as turmeric extract and coconut oil, which consumers use for multiple therapeutic applications.

Favored products among women are those that reduce menopause symptoms, strengthen bones or are formulated for pregnancy/prenatal supplementation.

Kilpatrick cites liposomal vitamin C and probiotic products as among the most popular. Reget believes fortified foods, such as vitamin-based cookies and brownies, will continue to grow as consumers recognize the benefits of the healthy ingredients in the foods. All manufacturers say free-from and cleaner labels are also trending in the category.

Consumer types from across the board are influencing manufacturers’ development of vitamins and supplements.

“Younger generations, including millennials, are

Don’t

communicate the products to consumers as something that they aren’t.

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63

Category Intelligence: Vitamins and Minerals

Don’t

taking a proactive interest in their health and are increasingly driving sales in the health and wellness industry, boosting sales in the category,” Jones says.

Although millennials trail baby boomers in overall supplement use, an estimated 73 percent of adults aged 25 to 34 years regularly take vitamin and mineral supplements compared with 88 percent of adults aged 65 and older, Jones notes.

Agropur is developing products for people in all age groups who maintain active lifestyles, such as the baby boomer who downs a protein shake after playing tennis.

“It’s not just your hardcore athletes or weekend warriors who are taking these products,” Reget says.

“It’s your every-day person who wants help with weight management and overall health in general.”

“As a result, consumers are often left to fend for themselves just copy regarding the interpretation of another product. the right supplement for them,” she adds.

Strive to be the Consumer education is a big best or first to challenge for larger retailers, market. but not as much for specialty retailers that have been selling such products for years, Kilpatrick points out.

“There is a lot of information out there,” he adds.

“You have everybody and their brother writing about wellness-related products, but people still don’t have a strategy or know what to buy.”

Another challenge is that some developers might have great ideas for new products, but they don’t have the money to get them off the ground, Evans notes.

The trust factor

Do

offer myriad products to appease different age groups.

A “viable” industry

While the category is growing, it is not without its challenges. According to Jones, one such challenge is ensuring trust and communicating the benefits of products for what they are.

“This may require more money being spent to ensure the product has the certifications needed and the active ingredients at true levels,” she adds.

Corrie Drellack, Agropur’s marketing and communications manager, notes that it’s no longer acceptable to only offer a “dusting” of clinical ingredients in some of the category’s products. “Consumers are beginning to demand clinical dosages to prove that products actually work and are safe,” she adds.

Another challenge is that healthcare professionals do not tend to recommend vitamins and supplements to their patients, Jones says. Also legislators have made it almost impossible to make claims about the products, she adds. For instance, a label can say a product “helps maintain a healthy circulatory system” but it can’t say it “prevents cardiovascular disease.”

Manufacturers expect the vitamins and supplements category to continue to grow.

“I think [products in the category] will continue to become more mainstream in people’s lives,” Kilpatrick says. “More retailers are becoming openminded that this is a viable industry for them. This is a great opportunity for private label.”

Hollnagel says the category is in constant evolution.

“There are a lot of ingredient manufacturers that come across some rather intriguing new technologies in terms of identifying new ingredients that can add value to existing or new products,” he adds. “There was a time in this business where everybody who launched a product was trying to copy another product in the market. Now there is more of a focus or drive to be the first to market or best to market.”

Jones points out that it’s important for retailers to exhibit the category as a vitamin and supplement resource for consumers by offering an up-to-date and trending assortment of products along with a knowledgeable staff and in-store materials to educate consumers.

Evans hopes that retailers begin to merchandise supplements and vitamins more Mineral supplements prominently.

“I’m hoping that [retailers] will get on the Private All bandwagon and start treating these products Label Brands like they do cereal or paper towels,” he adds. $1,142.9 $3,513.2 Do retailers realize the opportunity +3.5% +6.4% they have with private label vitamins and 32.5% 100% supplements?

127.3 305.8 “Our job is to show them ... if they haven’t +0.5% +2.0% already realized it,” Reget says. SB

Vitamin and mineral category performance Total vitamins Private Label

All Brands

$1,891.9

$6,874.0

Change vs. Year Ago

+1.4%

+3.8%

Dollar Share

27.5%

100%

Unit Sales (in millions)

243.8

701.4

Change vs. Year Ago

-0.9%

+0.2%

Avg. Price Per Unit

$7.66

$9.80

Dollar Sales (in millions)

$8.98

$11.49

Source: InfoScan Reviews, IRI, a Chicago-based market research firm. Total U.S. supermarkets, drugstores, mass market retailers, military commissaries and select club and dollar retail chains for the 52 weeks ending Oct. 30, 2016.

Note: Does not include all vitamin and supplement subcategories.

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Aylward, editor-in-chief of Store Brands, can be reached at laylward@ensembleiq.com

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Store Brands / February 2017 / www.storebrands.info

Ad Index ADVERTISER NAME

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Alpha Aromatics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 American Nutrition, Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . IBC Ardent Mills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Arylessence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Berner Food & Beverage . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Better For You Foods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Catania-Spagna Corporation . . . . . . . . . . . . . . . . . . . . . . . CT Chelten House Products, Inc . . . . . . . . . . . . . . . . . . . . . . . . 29 Commercial Bakeries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Delgrosso Foods Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Eastsign Foods (Quzhou) Co Ltd . . . . . . . . . . . . . . . . . . . . 24 Furlani’s Food Corporation . . . . . . . . . . . . . . . . . . . . . . . . BC Ghigi USA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Giovanni Foods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Global Tissue Group . . . . . . . . . . . . . . . . . . . . . . . . . . . .IFC, 3 Great Lakes Cheese Co . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 Haelssen & Lyon North America Corp . . . . . . . . . . . . . . . . 12 IGPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 ITI Tropicals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Mardalvi International . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Massimo Zanetti Beverage USA . . . . . . . . . . . . . . . . . . . . . 21 Mother Parkers Tea & Coffee . . . . . . . . . . . . . . . . . . . . . . 25 Multisorb Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Nepa Carton & Carrier Company . . . . . . . . . . . . . . . . . . . . 34 New England Pet Products . . . . . . . . . . . . . . . . . . . . . . 19, 62 Private Brands Consortium PBC . . . . . . . . . . . . . . . . . . . . 23 Private Label Manufactures Association . . . . . . . . . . . . . . 7 Ragozzino Foods Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Red Gold, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Request Foods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 SanoRice Holding B .V . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Safety Quality Foods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Savor Street Foods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Seneca Foods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Simmons Pet Foods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Snak King Corp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Tastemorr Snacks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 The Fremont Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 US Alliance Paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 US Nonwovens Corp . . . . . . . . . . . . . . . . . . . . . . . . . 35, 41, 65

INNOVATIVE

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