©2023 Campbell Soup Company. All rights reserved.
Trust and transparency are redefining protein categories.
Retailers look to advanced tech and eco-friendly refrigerants to comply with regulations and cut greenhouse-gas emissions.
Why grocers are looking to leverage smaller formats in 2023 and beyond.
Artificial intelligence might seem futuristic, but its applications are delivering results right now.
These are the capabilities that savvy grocers will need to harness in 2023 to keep their operations relevant and profitable.
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AT CES, WALMART DETAILS A CUSTOMER-CENTRIC FRAMEWORK FOR GROCERY.
new year is a great time to think about what’s next in the grocery industry, and that’s exactly what I did this month, when I attended the CES Show, in Las Vegas.
The annual event likes to call itself the most influential tech event in the world, and that’s probably not an exaggeration. The show attracts throngs of people –more than 100,000 attendees this year alone — from all over the world, looking to get a glimpse at what the future holds.
Armed with a very good pair of walking shoes, I braved the mobbed halls of the Las Vegas Convention Center specifically to get a peek at the tech innovations likely coming to the grocery industry. I saw plenty of autonomous grocery delivery vehicles (electric, of course), AI supply chain solutions, virtual-reality and augmented-reality tech, and incredible advancements in wearable shopping and health devices.
But it was Walmart’s panel session on Jan. 4 that truly laid out a vision for the future of the grocery retail industry.
Walmart Chief Revenue Officer Seth Dallaire moderated the session, which also included Walmart Chief Economist John List; Cheryl Ainoa, SVP of new business and emerging technology; Julie Barber, EVP of general merchandise; and Jill Toscano, VP of media.
Walmart presented a three-pronged omni approach to how it views the path forward for food retail. The approach is called Customer Centricity and is focused on retail media, augmented reality and social commerce. Walmart plans to leverage these three technologies to “super-serve” the evolving American shopper and be their first choice for everything, whether it’s toilet paper, hot rotisserie chicken or a new pair of jeans.
Barber elaborated on the first prong of Walmart’s approach: retail media and data analytics. Her team meets with the teams at Walmart Connect (the retailer’s ad business) and Luminate (the retailer’s data platform for suppliers), and that “helps us make decisions about what the customer might want to buy or what they have been buying, and how we should think about that. Then we can build a plan with the supplier. ... And once we get those products we then say, ‘How are we going to make sure that they show up in store and online?’ ”
For her part, Ainoa explained Walmart’s accelerating adoption of augmented reality (AR): “Our mission with emerging tech is simple: How do we initiate the inspiration and the discovery of a need, and then how do we shorten the distance, time and friction from the point of inspiration or need identification to actually fulfill that need, whether that inspiration is in
a Walmart store or in a Walmart app, or is on a social channel or while watching your favorite show on Roku? However a consumer gets inspired or creates a need, we want to reduce the time and distance that it takes to fulfill that need.” Ainoa said that the retailer plans to use more AR and AI, not just in paths to purchase, but also to power associate tools.
Finally, Toscano weighed in on Walmart’s exploding social commerce business.
“The world has changed pretty significantly, and one of the ways it has changed is that 302 million Americans are spending over two hours a day on social platforms,” she said. “That is a tremendous amount of attention that they’re giving these networks.” Toscano added that the retailer’s social commerce strategy includes re-evaluating where product discovery is now happening.
“Product discovery doesn’t happen in just the aisles and in search anymore,” she emphasized, listing some of the things that Walmart is doing in this space, among them a partnership with Roku that’s generating “some really surprising results that we’re looking to scale.” She also noted that Walmart is focused on livestreams and monetizing content creation with its new Creator platform.
Walmart’s aggressive push into retail media, augmented reality and social commerce is a harbinger for what this year is bound to bring in the grocery industry, a year in which everyone will be looking to drive omnichannel profitability.
Gina Acosta Editor-In-Chief gacosta@ensembleiq.com
Walmart’s threepronged omni approach to how it views the path forward for food retail, Customer Centricity, is focused on retail media, augmented reality and social commerce.
Irish-American Heritage Month
National Celery Month
National Flour Month
National Frozen Food Month
National Noodle Month
National Nutrition Month
National Peanut Month
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National Dadgum That’s Good Day. This observance encourages families to share stories and delicious homecooked meals.
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International Cat Rescue Day. Direct shoppers with a new shelter kitty to the pet care aisle to stock up on their new family member’s needs.
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Canadian Bacon Day. In our humble opinion, one of the finest exports from our neighbors to the north.
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National Snack Day. Tell the dedicated noshers among your customers that they can get creative with food combinations found across the store.
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Cinco de Marcho. This tongue-incheek occasion invites folks to start imbibing ahead of St. Patrick’s Day.
National Frozen Food Day. Make shoppers aware of the bounty and variety of products in this often underrated section.
Alexander Graham Bell Day commemorates the date that the great inventor was granted a patent for what became known as the telephone.
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Registered Dietitian Nutritionist Day. Place your in-store professionals front and center with live in-store events on healthy eating.
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National Crab Meat Day. Have your seafood department offer easy recipes incorporating this tasty selection.
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National Ranch Day. America’s favorite dressing can be used for much more than salad.
National Sofrito Day. Hold a demo to show the uninitiated how to prepare this aromatic purée of tomatoes, onions, peppers, cilantro and garlic used in Latin cooking. 12
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Daylight Saving Time begins. Get ready to spring ahead!
National Napping Day. Research suggests that a brief snooze can improve concentration, mood and memory, so consider a designated area where workers can get a little shuteye.
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National Children’s Craft Day. Stock the school supply section with construction paper, colored markers, glitter, pipe cleaners and more.
World Essential Workers Day. Pay tribute to your associates, who have amply proved over the past few years just how necessary they are.
National Vaccination Day. Reach out to remind customers of all ages to check that they’re up to date on all of their shots.
Appropriately, National Corn Beef and Cabbage Day coincides with St. Patrick’s Day
Global Recycling Day. Promote all that you’re doing in this area to help the environment. 19
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National Automatic Door Day. They’re pretty commonplace these days, but still really cool.
Vernal Equinox. Spring has sprung at last.
22 World Water Day. Emphasize to consumers the importance of this element to life on Earth.
Good Hair Day starts with a trip to the hair care aisle.
National California Strawberry Day. Spotlight your shipments of this popular fruit from the Golden State.
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National Spanish Paella Day. Feature this classic Iberian dish in your prepared food department.
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American Diabetes Alert Day. Provide information to consumers on this pervasive health condition.
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National Vietnam War Veterans Day. Pay homage to all who served in this long conflict.
National Tamale Day
National Adverse Drug Event Awareness Day. Let your pharmacists take the lead on this important issue.
Maryland Day. Showcase the best of the Old Line State’s distinctive cuisine. 26
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National Fitness Recovery Day. In your in-store magazine, publish an article about the best foods to eat after a strenuous workout.
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National Crayon Day. Ask your younger shoppers what their favorite color in the box is, and to draw a picture featuring that shade.
Usage of feminine hygiene products has increased from 39% in 2020 to 51% in 2022.
The past five years have seen slow but stable growth, as sanitary protection products are considered essential and are used by the majority of the menstruating population.
Growing demand for eco-friendly products and natural ingredients will continue to drive innovation, helping to bolster competition and increase sales.
Nearly half (46%) of menstruating adults say that they feel more stressed around the time of their period.
43% of U.S. menstruating adults have used tampons in the past 12 months.
54% of U.S. menstruating adults have used single-use menstrual pads in the past 12 months.
Since nearly half of the respondents report added stress around their period, feminine care brands need to acknowledge the mental toll that comes with menstruation, in addition to the physical symptoms.
Most menstruation symptoms are left untreated, representing a challenge to category growth; women are largely leaving feminine care symptoms to run their course as opposed to using something that could alleviate discomfort.
Nearly every industry has been affected by inflation and price increases, with paper goods and non-wovens being no exception. While these increases appear to drive growth, inflationadjusted prices actually reveal that the category is in a slight decline.
FOR MORE INFORMATION, VISIT WWW.MINTEL.COM OR CALL 800-932-0400
30% of respondents look for feminine care products with familiar materials and ingredients. Familiar ingredients equate to trust for consumers, particularly if those ingredients have a solid link to health and wellness.
Growing demand for eco-friendly products and natural ingredients will continue to drive innovation, helping to bolster competition and increase sales.
The mainstream adoption of feminine hygiene highlights opportunity for the category. The market for vaginal wellness, combined with products addressing unmet needs, will continue to stimulate consumer interest.
ackaged foods are required by law to display FDA-regulated standardized nutrition labeling and meet rigorous standards if making health-related claims.
It’s also common for food companies to voluntarily include one or more third-party certifications on labels to signify health-related benefits, ingredient attributes, support for certain dietary choices, and more.
Not all certifications are created equal, however. To qualify for some, foods and beverages must meet stringent testing standards and continuous monitoring by the certifying body to ensure continued compliance. For others, requirements are minimal and monitoring nonexistent.
The on-pack symbols, seals and stamps representing certifications can serve as shortcuts to help shoppers choose foods aligned with their health and nutrition goals — as long as shoppers understand the meanings behind the symbols.
Shoppers should also note that the absence of a certification doesn’t necessarily mean a product is less healthful — the food company might have chosen not to participate. Checking the Nutrition Facts panel and ingredients list is always a good idea.
Retail dietitians are shoppers’ best allies for learning about food certifications through counseling sessions, store tours, cooking demos, online videos and articles, and other channels.
There are dozens of certification programs. Information on just a few follows.
Heart-Check Food Certification. In 1995, the American Heart Association (AHA) launched the Heart-Check Food Certification program to help shoppers quickly spot heart-healthy foods throughout the store. The Heart-Check mark on a label means that the food meets strict nutrition criteria based on AHA science recommendations and on FDA/USDA regulatory requirements for making coronary heart disease claims.
Whole Grain Stamp. Eating at least three daily servings of whole grain foods is linked to reduced risk for several chronic health conditions, but most Americans fall short. The Whole Grain Stamp, from the Whole Grains Council, helps shoppers find products containing at least a half serving of whole grains (8 grams or more) per serving of the food.
Certified Gluten-Free. Avoiding gluten, a protein found in wheat, rye, barley and related grains, is essential for people with celiac disease. Gluten-free foods don’t have to be labeled as such, but foods that use the claim must meet FDA’s regulatory definition of fewer than 20 parts per million (ppm) of gluten.
Several third-party groups offer gluten-free food certifications. At minimum, the certifications must comply with FDA’s definition of gluten-free; some certifications have stricter guidelines. For example, the Gluten-Free Certification Organization’s “Certified Gluten Free” mark indicates that a food contains 10 ppm or fewer of gluten.
Non-GMO Project Verified. The FDA and other
regulatory groups deem foods containing genetically modified ingredients (GMOs) as safe as non-GMO foods. Shoppers who prefer to avoid GMOs, however, can look for the Non-GMO Project Verified seal on food labels. Qualifying foods must meet rigorous standards from the Non-GMO Project’s Product Verification Program, which dictate that a product contain no more than 0.9% GMOs and undergo continued monitoring and surveillance. Many products carry both the Non-GMO Project Verified seal and a USDA Organic seal, which indicates 95% or more organic content, depending on which USDA seal is displayed.
RETAIL DIETITIANS CAN TRANSLATE THE FACTS BEHIND THE SYMBOLS, SEALS AND STAMPS.
Retail dietitians are shoppers’ best allies for learning about food certifications through counseling sessions, store tours, cooking demos, online videos and articles, and other channels.Diane Quagliani, MBA, RDN, LDN, specializes in nutrition communications for consumer and health professional audiences. She has assisted national retailers and CPGs with nutrition strategy, web content development, trade show exhibiting, and the creation and implementation of shelf tag programs.
Hy-Vee is in the midst of opening "reimagined" locations with a large footprint and amenities that ramp up the in-store experience.
his year’s class of Progressive Grocer Top Regionals is especially notable amid a major acquisition poised to shake the grocery landscape to its core.
The Kroger Co.’s proposed merger with Albertsons Cos. would create the largest grocery company in the United States by footprint and revenue, a frightening scenario for many regional players.
But this year’s 10 Top Regionals are staying ahead of the impacts of any grocery mega-merger by leveraging a variety of advantages, including inventive pricing and promotions, family or employee ownership, cult-like shopper devotion, digital reinvention, hyper-local assortments, outstanding customer experience, and, yes, a chicken dance.
We think these Top Regional power players have what it takes to keep thriving, no matter what crisis or challenge emerges in 2023.
The companies we’ve singled out as Top Regionals are as follows:
These 10 smaller grocers are leveraging agility, innovation and loyalty to thrive in any competitive landscape. By PG Staff
These Top Regional power players have what it takes to keep thriving, no matter what crisis or challenge emerges in 2023.
Inflation. It’s on consumers’ minds when they’re shopping for groceries, and on retailers’ minds as they strive to offer those groceries at the best price possible while also providing superior customer service.
Progressive Grocer asked Joe Smirlies — an expert in sustainable Fresh Item Management solutions and the SVP of Product at Invafresh, the industry leading fresh food retail operations platform — to discuss how technology can help grocery retailers tackle today’s economic challenges and build a competitive advantage for future success.
Progressive Grocer: Let’s talk a bit about the macrotrends fueling disruption in grocery retail today. Joe Smirlies: Inflation is a big one — and it’s putting pressure on consumers and retailers alike. In fact, 58% of respondents in Invafresh’s 2022 Grocery Innovation Study1 identified inflation as the number one threat to their business. And for good reason. Just look at what’s happening in fresh food: Prices in that category rose nearly 7% in 2022 alone. Add to that supply chain disruptions, availability, labor shortages, and changes in consumer buying patterns, and it’s easy to see why grocers are struggling to accurately forecast demand and need a technology solution to deal with these challenges. While fresh is admittedly complex, it is something technology can help solve.
PG: But hasn’t the grocery industry been slow to adopt technology?
JS: COVID catalyzed exponential growth in online ordering and grocery delivery, and consequently accelerated the need to embrace technology. As a result, grocery retailers are becoming more adept on that front. It’s not that they don’t want to implement technology; they just face an uphill battle trying to. According to our survey, 57% of respondents identify budget, 48% identify the disruptive impact of new technology, and 45% identify the lack of on-site technical expertise as constraints they face when it comes to adopting new technology.
The fact is that grocers face an uphill battle to compete with digital-first grocers like Amazon Fresh, who are becoming more prominent in today’s increasingly techdriven marketplace. Adopting new technologies is essential
for future success as our survey shows 64% of retailers consider digital-first groceries at least a reasonable threat to their business.
PG: Can a single tech platform really address all of these challenges head-on?
JS: Yes. Grocers in our survey identified decreasing costs (43%), improving customer experience (37%), and managing labor shortages (34%) as some of the biggest challenges they face. AI and automation can help them tackle all three.
For example, technology is essential to cutting costs, which is imperative given the significant challenges inflation and supply chain disruptions pose. In addition, AI and automation can be used in a variety of applications to not only optimize processes, but to provide superior customer service, as well.
The bottom line is that the Invafresh Fresh Retail Platform gives grocers the tools to play offense with inflation, address the digital-first threat, alleviate labor shortages, and achieve faster ROI across the industry.
Overall, grocery retailers who use the Invafresh platform, with its strategic focus on the fresh food experience, are realizing annual benefits of US $80,000 to US$100,000 per store; see a 5% to 15% increase in sales growth due to merchandising their full assortment of products, stock availability, and customer affinity; and can achieve up to 20% to 40% less shrink by improving the accuracy of their ordering and having an understanding of their perpetual inventory and known/unknown shrink.2
Sunbury, Pennsylvania-based Weis Markets has implemented Invafresh’s Fresh Retail Platform to automate ordering, production and inventory management across all fresh departments in its 198 stores. The partnership includes the implementation of demand forecasting, in-store production planning, food traceability, recipe management, and cut test management, enabling the company to meet customers’ expectations with the freshest foods while more accurately predicting demand.
12022 Grocery Innovation Study; September 2022 survey of 100+ grocery decision-makers;
TO LEARN MORE, VISIT INVAFRESH.COM/STUDY.
Headquarters: Carson, Calif.
Store Count: 14
CEO: Adam Caldecott
Operating Area: Southern California
Operating 14 stores across Southern California, Bristol Farms attracts and holds a loyal fan base through its unwavering dedication to superior food offerings. “Our passion is to bring you the best ingredients — from around the corner and around the world,” the grocer notes on its website. “We delight in discovering new, innovative products and sharing the nostalgia of items we all grew up with.”
On the nostalgia side, the Carson, Calif.-based retailer joined forces with Wise Sons Jewish Delicatessen to provide catered Hanukkah meal offerings in 2022, delighting customers with such beloved fare as bagels, challah, smoked salmon, chocolate babka and rugelach.
On the new side, this past September, Bristol Farms formed a partnership with indoor-farming company Plenty Unlimited Inc. to be the exclusive carrier of its leafy greens for the rest of the year, outside of local markets in the Compton, Calif., area, where the grower recently established a farm. This partnership marked the first time that Bristol Farms has offered indoor vertically grown produce.
This willingness to experiment while sticking with the tried and true extends to its stores: Last March, in celebration
Headquarters: St. Cloud, Minn.
Store Count: 66 stores
CEO: Chris Coborn
Operating Area: Minnesota, North Dakota, South Dakota, Wisconsin and Michigan
Since Coborn’s pushed into a new state, Michigan, in 2021, the company has been on a tear of expanding and remodeling stores that operate under the banners of Coborn’s, Cash Wise Foods, Marketplace Foods, Hornbacher’s and Tadych’s. The grocer recently completed significant updates to a Cash Wise Foods store in Williston, N.D., and has several other Cash Wise locations undergoing similar remodels.
The Williston store features an expanded in-store floral department, a designated area for curbside pickup for guests who choose to order online, and an on-site pharmacy and on-site fuel station. The remodel also includes the addition of an in-store meat smoker, which produces signature smoked meats in-house, and a relocated Bake Shoppe that will continue to churn out tortillas made
of its 40th anniversary, Bristol Farms debuted a new market concept known as Bristol Farms Newfound Market at the Irvine Spectrum Center, in Orange County, Calif. The nearly 34,000-squarefoot market features seven of the retailer’s own chef-created restaurant brands that serve dishes made with local and global ingredients. Along with the various restaurant options, the market provides a unique selection of local and international products, with such features as full-service seafood and meat counters, 350 varieties of cheese, an on-site kitchen, a bakery, catering services, and a selection of premium wine, spirits and craft beer, as well as a variety of traditional grocery essentials.
fresh in-store daily. Plus there are new refrigeration and freezers, along with updated LED lighting, that will allow the location to operate with greater energy efficiency. The company has now built or updated more than two dozen of its Cash Wise locations in accordance with its “next-generation” format.
Led by the family’s fourth-generation CEO, Chris Coborn, the grocer is frequently recognized for its outstanding community service. It annually donates more than $3 million and thousands of volunteer hours toward making a positive difference in communities. The legacy of Coborn’s began in 1921, when Chester Coborn opened a single produce market on Broadway Avenue in Sauk Rapids, Minn. Today, Chester would be proud to know that the employee-owned company is still operating hyper-local neighborhood stores with a reputation for fresh food, superior customer service and exciting promotions.
The forecast is a cold cooler front when you use Trion’s Air Flow Baffle in coolers. Product temperature can be difficult to maintain at the front of a cooler. This Air Flow Baffle ensures that cold air is forced forward to keep items at their ideal temperature. Use as part of your cooler outfitting strategy, along with WonderBar ® Bar Merchandisers and hooks, EWTTM Expandable Wire Tray System, and cooler capable Clear Scan® label holders.
Call 800-444-4665 | TrionOnline.com
Merchandise all size drinks from mini Red Bull® cans to oversized Gatorade® bottles. ZIP Track® is the most versatile and cost-effective Grab-and-Go system available on the market. Use actual product to set lane width from 2" to 3 3/4 " Reset lane width on set-up in less than 30 seconds. Shelf-based and coolerready, this anchored system billboards product for easy selection and fast sale. ZIP Track® forwards and faces product at all times. Quickly add lanes with this easy to install and adjust system. ZIP Track® offers a wide range of adjustability for this ever-evolving beverage category and changing package designs.
It’s not just for coolers or beverages. Use ZIP Track® in multiple categories to showcase many different types of product. This is the most versatile system, of its kind available on the market. Manufactured from durable, modern plastics, it provides extended merchandising life. ZIP Track® offers a wide range of adjustability. Custom spring tensions and lane depths are available to fit any and all shelf and product needs.
dips, puddings, ice cream, single-serve foods, and more. Our small Adjustable Merchandising Tray (AMT) fits a range of 4- to 6-ounce cups; the medium AMT organizes mid-range offerings; and the large AMT gives ice cream lovers pause to browse and choose a pint of their favorite flavor (hmmm why not get both Cherry Vanilla and Rocky Road?). This manual-feed tray ensures that products remain faced and accessible. Time to re-stock? Just lift out and refill. Add Clear Scan® Label Holder, and you’re finished! Call 800-444-4665 | TrionOnline.com
ZIP Track ® components clip on the front rail allowing easy adjustment. Lanes can slide on the rail even when full or to add additional facings.
If you think the WonderBar EWT is great, wait till you meet its big brother! Oversized just like some of your products, this weightlifter stays strong on both metal and open wire shelves and bar. One-piece installation means you can drop this bad boy right into place, adjust as needed, and watch the revenue increase. The EWT takes over from there, automatically feeding product to the front and billboarding merchandise for maximum visibility. Call 800-444-4665 | TrionOnline.com
Zip It! Setting Width is a Breeze Zip Track® Easy install
Use actual product to set lane width from 2 " up to 3 3/4 ". Slide product front-to-back, along the lane, to “ZIP” each track together in final position.
Fill It! With a Wide Range of Products
Zip Track® Sells it All
Fill it with product. ZIP Track® maintains its width accurately for the entire depth of facing without the need for a rear anchor system.
Super Hooks!
The forecast is a cold cooler front when you use Trion’s Air Flow Baffle in coolers. Product temperature can be difficult to maintain at the front of a cooler. This Air Flow Baffle ensures that cold air is forced forward to keep items at their ideal temperature. Use as part of your cooler outfitting strategy, along with WonderBar ® Bar Merchandisers and hooks, EWTTM Expandable Wire Tray System, and cooler capable Clear Scan® label holders.
Call 800-444-4665 | TrionOnline.com
Product offerings come in different sizes, so it makes sense that displays should come in different sizes, too. That’s why Trion created the WonderBar ® Expandable Wire Tray System. We included every feature you would want if you created it yourself: powder-coated galvanized wire that stands up to harsh environments; adjustable width; easy custom configuration; rail mount and freestanding units; wire or clear acrylic product stops. EWT mounts on pegboard, slatwall, gondola shelf, table top and cooler.
Product offerings come in different sizes, so it makes sense that displays should come in different sizes, too. That’s why Trion created the WonderBar® Expandable Wire Tray System, aka EWT. We included every feature you would want if you created it yourself: powdercoated galvanized wire that stands up to harsh environments; adjustable width; easy custom configuration; rail mount and freestanding units; wire or clear acrylic product stops. EWT mounts on pegboard, slatwall, gondola shelf, table top and cooler.
Call 800-444-4665 | TrionOnline.com
Call 800-444-4665 | TrionOnline.com
Think of these extruded signs as a GPS for your retail setting. Quickly guide customers to the products they want and need with these versatile sign holders. Plan your customer’s routes, then slide in signs when you’re ready. Creative merchandisers might also use these sign holders for monthly or weekly specials, buy-one-get-one offers, specialized category definition (think gluten free, organic, fair trade, etc.), or promotion of in-store loyalty cards. A variety of mounting options are available including hooks, push pin, and foam tape. The opportunities for use are endless.
Think of these extruded signs as a GPS for your retail setting. Quickly guide customers to the products they want and need with these versatile sign holders. Plan your customer’s routes, then slide in signs when you’re ready. Creative merchandisers might also use these sign holders for monthly or weekly specials, buy-one-get-one offers, specialized category definition (think gluten free, organic, fair trade, etc.), or promotion of in-store loyalty cards. A variety of mounting options are available including hooks, push pin, and foam tape. The opportunities for use are endless.
Bin there, organized that! Trion’s deck fencing helps you bin small, large, bulk or packaged items while keeping them accessible to customers. Customize your display to create closed-front or open-front compartments using straight or offset front fence, then add our convenient labeling systems to finish the job right.
Use ZIP Track ® storewide for neat and tidy health, beauty and wellness displays. This is the most versatile system of its kind on the market. Easy to install, ZIP Track® components clip on a front rail allowing lanes to adjust quickly, even when full or to add additional facings. Use actual product to set lane width from 2" up to 3 3/4 " Slide product front-to-back to “ZIP” each track together. Custom spring tensions and lane depths are available to fit any and all shelf and product needs. Manufactured from durable, modern plastics, ZIP Track® provides an extended merchandising life.
Call 800-444-4665 | TrionOnline.com
If you think the WonderBar EWT is great, wait till you meet its big brother! Oversized just like some of your products, this weightlifter stays strong on both metal and open wire shelves and bar. One-piece installation means you can drop this bad boy right into place, adjust as needed, and watch the revenue increase. The EWT takes over from there, automatically feeding product to the front and billboarding merchandise for maximum visibility. Call 800-444-4665 | TrionOnline.com Super Hooks! WonderBar®
WonderBar® Displays are the versatile heroes of the Trion product family, coming to the rescue when you need muscle and good looks to merchandise items of all sizes. These Bar Hooks can lift heavy loads in their capable arms. Display or Scan, Saddle Mount or Plug in, there are Trion WonderBar Hooks for every need.
Let’s review your wish list of slatwall hook features: flat back plate base? Trion’s got it. Even load distribution? Check. Customizable with Clear Scan Labels? Yep. Flip-front or metal plate Label Holder, gotcha. Like your varied products, Trion’s Slatwall Hooks are offered in a range of standard, medium, heavy, and extra heavy gauges. Our hooks fit all industry standard slatwall slots, and many work with slot inserts. Call for a sample to check the fit with your design.
Let’s review your wish list of slatwall hook features: flat back plate base? Trion’s got it. Even load distribution? Check. Customizable with Clear Scan Labels? Yep. Flip-front or metal plate Label Holder, gotcha. Like your varied products, Trion’s Slatwall Hooks are offered in a range of standard, medium, heavy, and extra heavy gauges. Our hooks fit all industry standard slatwall slots, and many work with slot inserts. Call for a sample to check the fit with your design.
Call 800-444-4665 | TrionOnline.com
Neatly and effectively display cooler and freezer items, including yogurt, dips, puddings, ice cream, single-serve foods, and more. Our small Adjustable Merchandising Tray (AMT) fits a range of 4- to 6-ounce cups; the medium AMT organizes mid-range offerings; and the large AMT gives ice cream lovers pause to browse and choose a pint of their favorite flavor (hmmm why not get both Cherry Vanilla and Rocky Road?). This manual-feed tray ensures that products remain faced and accessible. Time to re-stock? Just lift out and refill. Add Clear Scan® Label Holder, and you’re finished!
Call 800-444-4665 | TrionOnline.com
Call 800-444-4665 | TrionOnline.com
800-444-4665 | info@triononline.com triononline.com/Art
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THE ART OF
G ®
MERCHANDISIN G ®
Oversize?
The number of products you can effectively, attractively merchandise in these baskets is, well, endless, as is the length and uses. Mount level or in gravity-feed mode from pegboard or slatwall, or place on shelves or table tops. Pair the baskets with hang tags, efficiently displaying both products and prices. Customize your baskets with handy dividers to create exactly the compartmentalization you need.
WonderBar® EWTTM Large
The Problem Solver Endless Baskets
The Problem Solver Endless Baskets
The number of products you can effectively, attractively merchandise in these baskets is, well, endless, as is the length and uses. Mount level or in gravity-feed mode from pegboard or slatwall, or place on shelves or table tops. Pair the baskets with hang tags, efficiently displaying both products and prices. Customize your baskets with handy dividers to create exactly the compartmentalization you need.
The forecast is a cold cooler front when you use Trion’s Air Flow Baffle in coolers. Product temperature can be difficult to maintain at the front of a cooler. This Air Flow Baffle ensures that cold air is forced forward to keep items at their ideal temperature. Use as part of your cooler outfitting strategy, along with WonderBar ® Bar Merchandisers and hooks, EWTTM Expandable Wire Tray System, and cooler capable Clear Scan® label holders.
Call 800-444-4665 | TrionOnline.com
Call 800-444-4665 | TrionOnline.com
Call 800-444-4665 | TrionOnline.com
Call 800-444-4665 | TrionOnline.com
The way to profits is clear when customers can spot and browse neatly displayed, upscale merchandise. Adjustable, multi-functional dividers allow you to customize depth and change the width of displays just as fast as new products are delivered. Sturdy, clear presentation keeps products looking their best, highlighting the colors, options, sizes, quality, and billboarding brands. Trion’s Clear Acrylic Divider Systems are among the best looking and adaptable merchandising systems. Call 800-444-4665 | TrionOnline.com
The way to profits is clear when customers can spot and browse neatly displayed, upscale merchandise. Adjustable, multi-functional dividers allow you to customize depth and change the width of displays just as fast as new products are delivered. Sturdy, clear presentation keeps products looking their best, highlighting the colors, options, sizes, quality, and billboarding brands. Trion’s Clear Acrylic Divider Systems are among the best looking and adaptable merchandising systems. Call 800-444-4665 | TrionOnline.com
When Visibility is Your Goal Clear Acrylic Dividers
Super Hooks!
Fast and Easy Attached-Back HooksTM
speeding labor intensive projects. Because the hooks are already assembled, you can display merchandise as quickly as you can say “profits.” Once installed, these hooks come apart easily, making merchandising changes in tight displays fast and easy. Reinforced to host even heavy items, these hooks are available in standard, medium and heavy gauge frontwires with engineering grade plastic backplates to provide durable and attractive ways to keep your merchandise accessible.
Fast and Easy Attached-Back HooksTM
straight-entry hooks arrive already assembled – a dream come true for speeding labor intensive projects. Because the hooks are already assembled, you can display merchandise as quickly as you can say “profits.” Once installed, these hooks come apart easily, making merchandising changes in tight displays fast and easy. Reinforced to host even heavy items, these hooks are available in standard, medium and heavy gauge frontwires with engineering grade plastic backplates to provide durable and attractive ways to keep your merchandise accessible.
Neatly and effectively display cooler and freezer items, including yogurt, dips, puddings, ice cream, single-serve foods, and more. Our small Adjustable Merchandising Tray (AMT) fits a range of 4- to 6-ounce cups; the medium AMT organizes mid-range offerings; and the large AMT gives ice cream lovers pause to browse and choose a pint of their favorite flavor (hmmm why not get both Cherry Vanilla and Rocky Road?). This manual-feed tray ensures that products remain faced and accessible. Time to re-stock? Just lift out and refill. Add Clear Scan® Label Holder, and you’re finished!
Call 800-444-4665 | TrionOnline.com
Call 800-444-4665 | TrionOnline.com
Extend Your Revenue
Extend your opportunities to increase revenue with Trion’s pegboard extenders. Use them to layer display surfaces so you can simultaneously show tall and short items. Commonly used to merchandise mops, brooms, long handled tools and more, with cross sells and accessories directly in front. Pegboard extenders extend your merchandising reach.
Extend your opportunities to increase revenue with Trion’s pegboard extenders. Use them to layer display surfaces so you can simultaneously show tall and short items. Commonly used to merchandise mops, brooms, long handled tools and more, with cross sells and accessories directly in front. Pegboard extenders extend your merchandising reach.
Extend Your Revenue Pegboard Extenders
HOOKS | lAbElING |
Headquarters: Dayton, Ohio
Store Count: 3
CEO: Norman Mayne
Operating Area: Southwest Ohio
With three locations in southwest Ohio and a fourth in the pipeline, Dorothy Lane Market has proved itself to be a small but mighty force in food retail during its more than 70 years in business. A company that started in 1948 as a fruit stand on the corner of Dorothy Lane and Far Hills Avenue, in Dayton, Ohio, has in recent years not only been recognized nationally for its exceptional customer service, but has also created a bustling e-commerce business for its specialty offerings and its famous Killer Brownie brand.
DLM, as it is affectionately known to its loyal customers, has been ahead of the curve for decades in terms of business
Headquarters: Boone, Iowa
Store Count: 138
CEO: Reynolds Cramer
Operating Area: Iowa, Illinois, Kansas, Minnesota, Missouri, Nebraska and South Dakota
In the Midwest, Fareway grocery stores are known for their impressive full-service meat departments. The company’s stand-alone Meat Markets also offer high-quality products and prepared meals.
The year 2022 proved to be a momentous one for the rapidly growing grocer. Fareway entered its seventh state with a ribbon-cutting ceremony for a new Meat Market, in Olathe, Kan. The family-owned company now operates 130-plus stores in the Midwest, with more than 12,000 employees.
The grocer also expanded its digital capabilities. Fareway partnered with Blackhawk Network to bring PayPal and Venmo in-store digital payments to its stores. Customers can now pay using PayPal or Venmo QR codes at checkout. They simply open either the PayPal or Venmo mobile app, click the “scan” button and select the “show to pay” option.
With labor issues top of mind, Fareway is finding ways to invest in its future workforce. The grocer, a top 10 employer in Iowa, joined a high school registered apprenticeship for meat cutting. Fareway is teaming with Iowa’s Independence High School and the Iowa EDGE-Boone High School on the innovative work-based learning initiative, which gives local students the opportunity to gain job-specific culinary skills and build core skills in communication, collaboration and professionalism. The apprenticeship program isn’t limited to Independence, though; it’s a scalable program, available
practices, product assortment and unique culinary offerings. The grocer’s meat department has stocked proteins free of antibiotics, hormones and steroids, and in strict accordance with animal welfare standards, since 1992, and the company also launched a from-scratch artisan bread program way back in 1994. DLM additionally offers an extensive prepared meal selection, a gourmet coffee stand, and a European-style bakery chock full of pastries ranging from kouign-amann to frosted sugar cookies.
While known for being a Dayton mainstay, DLM has revealed plans to open its fourth outpost in a suburb of neighboring Cincinnati in 2024. The grocer is expanding its presence in other ways through its spinoff business, The Killer Brownie Co., which recently signed on to become the official brownie of the Cincinnati Bengals football team.
throughout the state of Iowa, in any community where a Fareway is located.
Additionally, the Midwest grocer does its part to help the environment. In fact, it recognized the importance of conserving natural resources long before “green initiative” and “carbon footprint” became part of our everyday language. For example, way back in 1955, the company began heating its stores by reclaiming heat generated by refrigeration compressors. Most recently, Fareway teamed up with Alliant Energy on an installation of a 1-megawatt solar facility in the Boone Industrial Park on a 6-acre site adjacent to Fareway’s campus headquarters in Iowa.
Headquarters: Warrensville Heights, Ohio
Store Count: 23
CEO: Jeff Heinen
Operating Area: Ohio and Illinois
Often billed as Cleveland’s first supermarket, Heinen’s Fine Foods was the brainchild of butcher Joe Heinen and first opened its doors to the public in 1933. Heinen operated under the belief that “[y]ou have to find the best to sell the best” — whether it was smoking his own meats or partnering with local growers to offer the freshest produce — and the company keeps that philosophy in mind even today.
Heinen’s now operates 19 stores throughout northeast Ohio and four in the Chicagoland area, and is run by Joe Heinen’s twin grandsons Jeff and Tom Heinen, along with their children Kim, Kelsey and Jake Heinen. The company prides itself on reimagining the traditional grocery store as a destination for quickand-easy meals, fresh seafood, wellness guidance, dietary-friendly solutions and even traditional in-store butchers.
Beyond the store, the regional retailer has embraced technology to inform assortment decision-making and leverages data to drive personalization and pricing decisions. Heinen’s also works to exceed customer service standards and keeps a keen eye on its associates’ welfare. The grocer’s “Behind the Blue Shirt” online feature spotlights different employees and shares their takes on why they love working at Heinen’s, their favorite food products available at the store, and more.
Headquarters: West Des Moines, Iowa Store Count: 285
CEO: Jeremy Gosch
Operating Area: Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, South Dakota and Wisconsin Hy-Vee is pushing the boundaries as a regional grocer — literally. The Iowa-based retailer is decidedly on the march, pushing deeper into Wisconsin and planning additional openings in Indiana, Tennessee, Kentucky and Alabama in 2023 and beyond, with a goal of topping the 300-store mark.
The newest Hy-Vee locations, in Ashwaubenon and La Crosse, Wis., welcomed shoppers in late 2022 and are billed as “reimagined” stores with a large footprint — between 105,000 and 125,000 square feet — and amenities that ramp up the in-store experience. The full-service meat counters, for example, include a chef’s station, while the food hall in the Ashwaubenon location has a pub with a sit-down bar, and another outpost from the Wahlburgers restaurant chain, which has become a key Hy-Vee partner.
The pending stores are even bigger, with the Hy-Vee in Spring Hill, Tenn., expected to span 160,000 square feet. As the employee-owned company broadens its presence to the Southeast, its leadership is also evolving; Hy-Vee recently revealed additional roles and responsibilities for top executives, including its CEO, COO, presidents and chief of staff, all of whom will help guide the organization of more than 93,000 employees.
With a shopping experience that already includes entertainment like cake “studios” and multiple video kiosks, the retailer is also going all in on entertainment for its sponsored IndyCar Race Weekend, slated for July 21-23 at the Iowa Speedway. The 2023 event includes concerts by big-name acts Carrie Underwood, Kenny Chesney and Ed Sheeran, among others, reinforcing the notion that this regional retailer has indeed captured wide attention.
Headquarters: Winston-Salem, N.C.
Store Count: 74 stores
President: Tim Lowe
Operating Area: North Carolina, South Carolina and Virginia Despite considerable competition, Winston-Salem, N.C.based Lowes Foods is the local favorite and a company that has positioned itself for growth with a unique brand of food retailing that makes it worthy of being named a Top Regional.
The company is winning with shoppers across its threestate trading area with a four-pronged value proposition that Lowes Foods President Tim Lowe (no relation to the company’s founders) describes as safety, friendliness, show and efficiency. During the opening session of the Grocery Leaders Executive Forum at Progressive Grocer’s Grocery Industry Week in Orlando, Fla., this past November, Lowe underscored the importance of small data that often holds big revelations.
“A lot of times, the details are in the small data, and there is a lot to be learned from that,” he noted. “What is the consumer telling you?” Consumers were telling Lowes that they wanted more out of their jaunts to the grocery store, something that the leaders and team took to heart. “We thought, ‘How do we create an entertainment company that intersects with consumers around food?’” Lowe recalled.
He shared several examples of ways in which Lowes has transformed its model to become an entertainment company that creates food experiences. One of those ways is the chicken dance. Lowes created entertainment around its fried chicken offerings, from tapping employees to dress up and do the chicken dance in stores when hot chicken was ready, to installing animatronic chicken-themed chandeliers that played chicken dance music. As a result, chicken sales received a strong lift, and the program took on a life of its own on social media and among loyal shoppers-turned-avid-fans.
“We were not living in the status quo,” Lowe noted. These are wise words for any regional grocer looking to thrive in the challenging years ahead.
‘How do we create an entertainment company that intersects with consumers around food?’
—Tim Lowe, Lowes Foods
Headquarters: Norwalk, Conn.
Store Count: 7
CEO: Stew Leonard Jr.
Operating Area: Connecticut, New Jersey and New York
Famous for its over-the-top animatronics, unique one-way layout and next-level customer service, Stew Leonard’s has long made shopping at its seven grocery stores (plus a wine and spirits outlet) in Connecticut, New Jersey and New York a fun adventure. Beyond those well-known attributes, however, the Norwalk, Conn.-based grocer is embracing a personalized future.
Last year, for instance, Stew Leonard’s chose GrocerKey to create a branded e-commerce platform customized to the specific requirements of its catering business and customers. The solution lets the retailer have full control of the catering process, providing responsive and personalized ordering experiences to better meet customer needs, as well as comprehensive order management and analytics to ensure customer satisfaction and sustainable growth.
Additionally, this past September, Stew Leonard’s updated its website to include many new features helping customers shop online and pick up their groceries curbside or have orders delivered to 500 ZIP codes in the retailer’s market area. Users
can now see their past purchases and rewards; create shopping lists from weekly specials, recipes and any other items available in-store; shop by category, with the ability to sort by product type; and receive personalized product suggestions based on past purchases. The redesigned site also now offers more videos, recipes and in-depth product descriptions, including profiles of the local farmers, fishermen and ranchers who provide Stew Leonard’s with fresh food.
Given its untiring drive to create a memorable shopping experience, it’s small wonder that Stew Leonard’s was a winner of USA Today’s 10Best Readers’ Choice Awards in 2022, coming in at No. 5.
Headquarters: Rochester, N.Y.
Store count: 106
CEO: Colleen Wegman
Operating Area: New York, Pennsylvania, New Jersey, Virginia, Maryland, Massachusetts and North Carolina
It’s been said many times that Wegmans has a cult-like following, a notion that’s borne out on social media pages and by influencers who express their devotion to the grocer’s stores and offerings. The New York-based retailer seemingly recognizes the near-giddy excitement that comes with locations in a new market, sharing in a recent company blog post details on what it takes to build a Wegmans.
That behind-the-scenes look provides some key insights into what differentiates and elevates this family-owned, century-old regional food retailer. For example, Wegmans shares that it takes about five years from conception to opening, and notes that teams from stores around the country are brought in ahead of the first day to help stock shelves, prepare ovens and help place signage in just the right spots. On opening day, the team gathers for a hearty Wegmans cheer before the doors officially open to customers who are eagerly lined up outside.
Its approach to new store planning — and food retailing overall — has helped Wegmans garner a number of accolades. In 2022, the chain topped Newsweek’s list of America’s Best Retailers in the supermarket category and ranked third on
Fortune’s 100 Best Companies to Work for. Further, Wegmans is No. 34 on the PG 100, Progressive Grocer’s 2022 list of the top food and consumables retailers in North America.
Meanwhile, new legions of Wegmans fans wait in different communities as the grocer gets ready to open an 85,000-square-foot location in Reston, Va., on Feb. 1 and the first-ever Wegmans in the New York City borough of Manhattan, which is slated for a mid- to late-2023 unveiling. That 82,000-square-foot store in the heart of Greenwich Village will offer a curated assortment of items similar to that which has made Wegmans the object of affection among so many East Coast shoppers.
Headquarters: Sunbury, Pa.
Store Count: 197
CEO: Jonathan H. Weis
Operating Area: Pennsylvania, Maryland, New York, New Jersey, Delaware, Virginia and West Virginia Last year, Weis Markets unveiled a more than $150 million capital expenditure plan to support its growth, which included the construction of new stores, the expansion and remodeling of existing units, and the addition of more fuel centers. The Mid-Atlantic grocer has also placed a heavy emphasis on investing in new technology. For example, in the perimeter, Weis is working with fresh grocery platform Invafresh to streamline fresh food operations. The partnership encompasses demand
Weis Markets is working with fresh grocery platform Invafresh to streamline fresh food operations.
forecasting, in-store production planning, food traceability, recipe management and cut test management at all Weis fresh departments. The Invafresh Fresh Retail Platform uses artificial intelligence and machine learning to reduce waste, making Weis’ in-store operations more efficient.
For a more unified shopping experience, Weis adopted the cloud-enabled ELERA commerce platform from Toshiba Global Commerce Solutions. The solution encompasses Weis’ e-commerce platform and its 197 physical stores with 2,500-plus retail checkout touchpoints, including point of sale, self-checkout/dual-use lanes and mobile. Through the self-enablement capability and integrated loyalty and promotions management offered by the solution, Weis can easily execute customer affinity programs.
Meanwhile, to help shoppers amid rising consumer costs, the grocer made a multimillion-dollar investment in May 2022 to lower prices by 13%-33% on hundreds of its best-selling frozen products, which include brand-name and Weis Quality items. The price reductions are an expansion of Weis’ Low, Low Price program, which launched in 2019 and includes more than 7,000 grocery products and nearly 80 produce items.
The company also strives to be a good steward of the environment. According to its “2021 Weis by Nature Sustainability Report,” the grocer has reduced greenhouse-gas emissions
by 55% since 2008 by taking part in energy efficiency programs, assessing its energy choices, lowering refrigerant leakage, and upgrading lighting, refrigeration, transportation and other tech.
The report also highlights the retailer’s ongoing commitment to the communities it serves, including the expansion of its donation program to more than $4 million — an 18% increase from 2020 — and almost 2.7 million pounds of food.
CPG companies break down their approaches to innovation in a range of categories — and provide some glimpses of what’s to come.
hat does it take to be ahead of what’s next?
Progressive Grocer has long sought answers to this question in the grocery space — and now we’ve expanded our quest for knowledge to consumer packaged goods companies, which largely maintain the pipeline of new and exciting products that will entice shoppers into stores this year and in the future.
To find out their varying approaches to innovation, PG checked with eight companies — and one marketing firm — across various categories. Many told us that they depend on deep consumer research and technology-driven insights to inform their innovation decisions, although perhaps the most on-point answer came from Scott Aakre, SVP, Brand Fuel at Austin, Minn.-based Hormel Foods, who described the concept as “really an art and a science,” relying as it does on an “it” factor that goes far beyond shopper analyses or the latest tech solutions. After all, we’re all aware of products that probably sounded good on paper but in the real world, not so much. This past year, for
instance, there was online-exclusive Coca-Cola Byte, billed rather grandly by the company as “the first-ever Coca-Cola flavor born in the metaverse,” but which one reviewer likened to “raspberry-flavored cardboard.”
Still, despite the occasional setback, CPG companies “must be open to new, relevant products that add value to the brand and the company’s value proposition, and profit to the bottom line,” note Maile Buker and Simon Waters, CMOs with Chief Outsiders, a fractional CMO firm focused on helping companies build their engines for revenue growth, in the article “How CPG Companies Can Grow in a Recession.” Buker and Waters add that “the right products with the right advertising and corporate initiative will be profitable.”
Of course, as the CMOs observe with their references to advertising and corporate initiative, it’s not just product innovation alone that’s important. Among the CPG companies we asked, David Wagstaff, managing director of Manchester, England-based St Pierre, rightly calls a singular focus on new items “a limited view,” affirming the importance of packaging, branding and merchandising as part of the whole process.
Read on to find out more about how CPG companies are working to anticipate the needs of shoppers, and to even receive a preview of a few forthcoming SKUs slated to hit shelves in 2023.
Note: Comments have been edited for length and clarity.
EVP, Chief R&D and Innovation Officer, Campbell Soup Co.
We have a broad definition of innovation, specifi cally, anything that excites and engages consumers with our brands. These can be new platforms, flavor extensions and trendworthy limited-time offerings. Using artificial-intelligence and machine-learning tools, we track and curate billions of data points to find inspirations, and enlist a broad swath of employees to translate these signals into insights and then prototypes. We then leverage agile design methodology to accelerate the development of new products that resonate with consumers.
Recently, we identified key insights into how the spicy trend was not only accelerating, but morphing into new areas of spicy expression. These insights have allowed us to incorporate the trend across our portfolio.
Additionally, our recent insights on Millennial and Gen Z cooking behavior spurred us to invest in a new platform under a new brand, launching Campbell’s FlavorUp! cooking concentrate, an innovation that gives consumers a new way to elevate everyday cooking. FlavorUp! replaces hours of cooking and simmering herbs, spices and savory ingredients, and is designed to be stirred in with any protein, grain or vegetable. The product resonates with younger consumers who have an appreciation for delicious meals that can be prepared on tight budgets and busy schedules.
Our guiding light for innovation is foreseeing and responding to consumer demands when it comes to nutrition, flavor, taste and/or packaging. We invest in research and tools to stay at the forefront of developing consum er needs, and then build our retail strategies in line with those insights to drive incremental growth for the category.
Recently, we have seen a few key trends stand out in the dairy and refrigerated space, including a preference towards lower sugar and the importance of convenience.
Our Two Good brand is a strong example of how our company is living its purpose-mission and innovating to meet consumer demands — in this case, a better-tasting, lower-sugar yogurt.
In 2019, we founded Two Good yogurt using a patent-pending, slow-straining process that removes most of the sugar from milk that’s used to make yogurt. The result is a Greek yogurt with only 2 grams of sugar and a great taste. Today, it is one of our fastest-growing yogurt brands.
Since the brand launched, we have expanded Two Good’s portfolio into many different flavors and products. Most recently, we introduced Two Good Smoothies — convenient, on-the-go cultured dairy drinks made with real fruit purée and no artificial sweeteners.
Senior Director, Strategic Growth Platforms, The Hershey Co.
Confection is a multidimensional space that satisfies many consumer occasions across various dayparts. We enjoy confection to treat ourselves, reduce stress, satiate hunger and enjoy snacks alone or in a shared experience with family and friends. Innovation needs to deliver against these specific consumer needs, but most importantly, it needs to deliver on taste, texture and experience.
The Hershey Co. is launching Reese’s Popcorn as a new twist on our most popular brand, Reese’s, paired with our growing salty snack offerings. Following a successful test launch in 2022, the sweet-and-salty mashup will begin to roll out to stores nationwide over the next few months.
Snacking has been rapidly growing over the last five years, and ready-to-eat (RTE) popcorn is one of the fastest-growing categories within salty snacks. We’ve seen tremendous growth for our flagship salty brand, SkinnyPop Popcorn, but identified an opportunity to innovate more RTE options through new flavor combinations. Most of SkinnyPop’s portfolio exists in the savory flavor profile, but demand is growing for sweet and salty flavors together. Introducing the iconic Reese’s brand into RTE popcorn positions the category for even more growth and brings together best-in-class capabilities from Hershey’s powerhouse of sweet and salty brands.
SVP, Brand Fuel, Hormel Foods Innovation, especially in the deli/meats/center store space, is really an art and a science. Our approach to innovation starts with and links to solving unmet needs for either our consumers and/or our retail customers. No matter the space, we are focused on the consumer’s needs and desires. In fact, it is so important to us that we created our new Brand Fuel team to further enhance our innovation efforts, not only in retail, but across our entire company.
Traditionally, the hot sauce category offers customers similar vinegar-based red sauces. However, the team knew through their research that consumers were looking to explore new flavors. To fill that gap, we introduced Herdez Avocado hot sauce, the first-ever hot sauce made with real avocados. It is a unique product that hits on many growing trends — avocado popularity, younger consumers looking for more adventurous items, and the continued interest in new, spicy flavors.
But innovation goes beyond the product itself. For example, the Herdez Avocado hot sauce bottle was designed after the shape of an avocado, which is unlike anything in the category and helps it stand out on shelf.
It’s a category where we see many opportunities to expand our branded innovation.
VP of Trade Development, Mars Wrigley
Consumers’ reasons for reaching for snacks and treats, and expectations of their favorite brands, are constantly shifting. It is critical that we are constantly connected with shoppers to understand what they are looking for from the category. Across our portfolio, we are keeping consumer insights and feedback top of mind as we develop and unveil innovative offerings that deliver on shoppers’ evolving requests for a wider variety of tastes and textures.
Aligning legacy brands with current trends is key to winning. As Gen Z continues to gain buying power, we’re looking at generational trends to make sure we’re staying relevant and bringing in new users while also satisfying existing users.
The M&M’s brand is iconic, but to make it legendary, we need to keep fans engaged and make it relevant for Gen Z to ensure consumers keep coming back. In 2022 alone, we launched a new M&M’s brand visual identity and brand purpose focused on creating a world where everyone feels they belong. We partnered with trail -
blazing artists on custom collaborations and introduced the first new character in over 10 years, Purple — all of which helped cement the M&M’s brand on Morning Consult’s list of Gen Z’s favorite brands for 2022.
VP of North America Innovation, Molson Coors Beverage Co.
Innovation in the beverage alcohol space is a fairly simple concept: It’s all about adding value. Innovation is striving to meet the needs of the consumers that aren’t currently being met, and to give consumers options and opportunities that
they may not even know they want!
In 2022, Molson Coors Beverage Co. launched Simply Spiked Lemonade in partnership with The Coca Cola Co. It was a breakout success for a few reasons. First, legal-drinking-age consumers were craving big, bold flavor while also seeking a better-for-you option, and Simply Spiked Lemonade delivered. We also knew that some consumers were using the Simply brand already as part of their mixology regimen, so when we put those two things together, Simply Spiked was born. This new brand disrupted the flavored alcohol beverage category and has the runway to continue to grow.
What defines innovations in the meal space is providing consumers with products unlike anything else on the market. It is difficult to come up with a completely never-before-seen concept in the food industry, but what brings innovation and excitement is revolutionizing concepts to fit
the needs of consumers today and, more importantly, tomorrow. Providing easy, quick, convenient meal options is exactly what consumers are looking for, and doing so in a way that sparks their interest as they are walking the freezer aisle is where that innovation comes into play.
KidsLife is our answer to the lack of options out there for children. We want to provide kid-friendly meals that are nutritious and convenient, but most importantly are things kids actually want to eat. We offer items such as Mac ‘n’ Cheese, or Pasta with Mini Meatballs — familiar favorites for kids. All of the product offerings
are packed with hidden veggies in the sauce, use pasta made out of brown rice and quinoa, and are nutrient-rich whole meals. We want parents to reach for a frozen meal to feed their kids that they actually know every ingredient in it, that they know is nutritious and that their child enjoys eating.
Managing Director, St Pierre Innovation is always rooted in analyzing the market to listen to and meet consumer demand. We invest heavily in research to understand how best we can deliver for shoppers with the right product of the right quality. Our product quality is at the heart of all innovation.
Innovation is often defined in terms of the product when it comes to the bread and bakery space, but that’s a limited view. It could be innovative packaging, branding or merchandising.
St Pierre Bakery is expanding its footprint in the U.S. bakery sector with a premium range of bake-at-home products, which will add the first non-brioche baguettes and rolls to our product selection. The range will include a twin-packed French baguette, a single French baguette and a four count of crusty French dinner rolls.
which we are known and improve an area of bakery which is, quite frankly, a bit stale. It’s a step-change for us because it’s not brioche, but we’re taking the same approach to improve and premiumize a new area of the sector.
The strategy is two-pronged in that we can take our brand-loyal consumers and introduce them to another new category, but also that we can take the quality for Adds Beauchemin: “Omnichannel marketing is changing ‘business as usual’ for our customers by requiring more integrated marketing. Retailers need to know the brands in their meat case have consumer attention outside the store. Consumers may see a brand on social media and be reminded by point-of-sale materials to purchase it while visiting the retail meat case.”
Of course, not all of the valuable insights on CPG innovation come from the makers of such goods. Chicago-based Midan Marketing, a strategic marketing agency with a focus on the meat industry, also has some thoughts to share on the subject.
“In the meat space, innovation occurs when creativity and collaboration combine to meet a need,” says Kerry Beauchemin, associate director, brand strategy at Midan. “We recently released Midan’s ‘2023 Trends Report,’ and one trend highlights the increasing role of omnichannel marketing at the meat case. Innovation in omnichannel marketing will require creative collaborations between meat companies and retailers to capture shoppers’ attention and showcase transparency across the supply chain.”
MarketingMidan’s 2022 “Beef Attributes” research found that almost half of beef consumers had purchased fresh beef online during the past month. Noting that “[t]he main channels for purchasing online are from a local grocery store’s website or app for pickup or delivery,” Beauchemin observes, “Online grocery shopping presents more opportunities for product photography and detailed product descriptions.”
Further opportunities abound in the area of social media marketing, according to Beauchemin, who points out that “[m]any brands are also turning to influencer marketing to reach broader audiences, and TikTok is an increasingly valuable platform.”
What happens when forward-looking companies embrace such marketing tactics? “Retailers who select innovative meat brands will see loyal grocery shoppers in the months and years ahead,” asserts Beauchemin.
“In the meat space, innovation occurs when creativity and collaboration combine to meet a need.”
—Kerry Beauchemin, Midan
Brandt
By Lynn Petrak
very protein product has a story to tell. That authentic story, including how something was sourced, raised, handled, processed or packaged, increasingly matters to consumers. According to a 2022 report from FMI — The Food Industry Association and NielsenIQ, 72% of shoppers say that transparency is either important or extremely important to them when choosing food products.
Transparency is defined as having detailed information on what’s in a food and/or how it was made.
Market research also ties transparency to trust. The FMI/NielsenIQ report shows that 64% of consumers would switch from a brand that they typically buy to another brand that shares more detailed information.
Consumers who seek to build trust through transparency are looking at several factors. A recent report from Chicago-based marketing, research and creative agency Midan Marketing finds that after price, beef consumers make purchasing decisions based on attributes such as production methods, sustainability, sourcing and quality. Within those attributes, beef shoppers are discerning products by characteristics like preferred breed, the feed that producers use, locally raised animals and the ability to trace back information to the farm. Midan also reports that 68% of people buy beef with production claims at least some of the time.
Likewise, transparency is of growing importance to seafood shoppers. According to FMI’s 2022 “Power of Seafood” report, 50% of seafood consumers say that sustainability claims or certifications have a major impact on their purchase decisions; that said, only 28% report that they’re very knowledgeable about sustainable seafood.
In today’s market, more brands and retailers are engendering loyalty by providing information that shoppers are seeking. “Brand trust and transparency have become substantial points of consideration for beef consumers around the world,” agrees Eric Brandt, president of Brandt Beef, a 100% source-verified and single-source operation in Brawley, Calif. “For us, that means that all our beef comes from our one family-owned operation,
Transparency is important to a majority of shoppers, with most associating more information from a brand to greater trust in that brand.
More brands and retailers are engendering loyalty by providing the information that protein shoppers seek.
Efforts are also underway at the government level to advance transparency in the protein sector.
where we can track and confirm the origin of all of our animals. Because we personally oversee each step of our process, from cattle feeding to fabrication to steak cutting, we can confidently assure the quality and wholesomeness of everything we put the Brandt Beef brand on. That is the kind of trust we foster with our customers.”
Silver Fern Farms, a New Zealand producer that distributes products in more than 1,600 U.S. stores, has also staked a claim on transparency by, among other things, touting its Net Carbon Zero beef. “Every single kilogram of CO2 emissions associated with our Net Carbon Zero products is counted and removed by the woody vegetation that grows on the group of farms where the animals were raised,” explains David Patragnoni, USA country manager. “Net carbon zero is a clear and understandable proposition, and its linkage to ‘earth-friendly eating’ is very direct. Our methodology is transparent; we publish detailed sustainability reports and engage in a wide range of communication and storytelling initiatives. Our Net Carbon Zero by Nature brand is prominent on the packaging, along with USDA certification of our net carbon zero claims.”
Major protein producers continue to step up their transparency efforts to gain or sustain trust. For example, in its most recent sustainability report, Tyson Foods shares the scope of its FarmCheck audit program, which enables its teams to determine how many farms should be audited each year so that the company can be 99% confident that 95% or more of its supply chain complies with program standards. The Springdale, Ark.-based company maps out its plans and results across many environmental, social and governance (ESG) topics to be more transparent with its global consumers.
Farmer Focus, a 100% USDA organic and Humane Certified chicken company based in Harrisonburg, Va., recently updated its packaging to allow consumers to use a QR code leading to the company website, where visitors can trace a product back to the family farm where it was raised. “USDA organic is at the core of our Farmer Focus brand, but we learned from consumers that they wanted to be reassured of all the attributes that are part of organic certification and what we are doing to go beyond organic,” says Kathryn Tuttle, chief marketing officer.
Egg producers are also continuing to share their story as the groundswell of interest in everything from chicken feed to cage space accelerates. Several egg companies have built their respective brands on that notion, such as Austin, Texas-based Vital Farms. The longtime supplier of pasture-raised eggs has recently rolled out restorative eggs, produced using regenerative practices.
In December, Dutch egg farmer Kipster introduced its first carbon-neutral eggs in Michigan and the Cincinnati area at select Kroger Co. stores. Produced using upcycled feed in a cage-free environment, the eggs are sold under the Simple Truth + Kipster name in a carton bearing the Certified Humane logo. “Choosing Simple Truth + Kipster cage-free eggs is an easy way for our customers to help create a more sustainable food system,” notes Denise Osterhues, senior director of sustainability and social impact for Cincinnati-based Kroger. “The Kipster system aligns with Kroger’s Zero Hunger | Zero Waste social and environmental impact plan and mission to advance positive changes for people and our planet. We focus on advancing
sustainability and animal welfare in ways that also help maintain access to fresh, affordable foods for everyone.”
Retailers throughout the country continue to publicly share their commitment to transparency, especially in fresh food items like proteins. Boise, Idaho-based Albertsons Cos., for its part, touts efforts to provide shoppers with traceable, quality seafood from “environmentally and socially responsible sources” as part of its Responsible Seafood Program. Cleveland, Ohio-based Heinen’s takes part in the Where Food Comes From CARE Certified program to verify claims for proteins, including beef, pork and poultry; shoppers at Heinen’s can look for the CARE Certified logo on packages of store-brand red meats.
On a broader level, efforts are underway at the government level to advance transparency in the protein sector. One proposed bill is the Cattle Price Discovery and Transparency Act, which would establish minimums for negotiating cattle sales, among other reforms. In August, the U.S. Department of Agriculture extended the comment period for a rule aimed at promoting transparency in poultry production and contracting. Both proposals have received pushback from industry organizations and businesses, which claim, among other things, that the moves would reduce farmer pay and hamper producers’ decision-making freedoms.
Pasture-raised egg company Vital Farms recently added a line of restorative eggs produced using regenerative farming practices and shared with consumers its guide on regenerative farming.
According to Amrit Robbins, CEO and co-founder of San Jose, Calif.-based Axiom Cloud, sustainable refrigeration should be considered against the background of how it’s generated — that is, as scope 1, scope 2 and scope 3. Scope 1 covers emissions from sources that any organization owns or controls directly, including by its own facilities and transportation network. Scope 2 emissions relate to the energy an organization uses from outside its own activities, including that emerging from a power plant that provides electricity. Scope 3 emissions are those that are an indirect responsibility, including what’s produced by trucks, planes or ships moving products into a retailer’s own supply chain.
Therefore, a food retailer can moderate greenhouse-gas emissions in a number of ways, but an especially effective method is to cut energy use, which, of course, has the immediate benefit of saving money.
hange in supermarket and grocery store refrigeration is underway, driven in part by those retailers that are setting zero-emission goals as part of their environmental, social and corporate governance (ESG) strategies, but also because of regulation that targets global-warming potential (GWP) factors. Yet even as those developments proceed, new ways to approach cooling in stores are arising to help with challenges and trim costs.
Sustainable refrigeration isn’t just a question of cases and whether they should be open or closed. Rather, it’s dependent on understanding developments both on the operations and regulatory sides, and, very often, making a virtue of necessity. As such, the investment in more efficient systems that meet regulatory requirements can reduce energy and maintenance costs long-term.
Axiom Cloud is working with major retailers and cold-storage companies to optimize refrigeration using the internet, the cloud, and tools such as artificial intelligence (AI), the Internet of Things and automation.
Axiom can tap into existing monitoring systems that are incorporated into today’s refrigeration systems, providing a solution that helps its customers improve results at a time when up to 90% of a cooling system’s 20-year lifecycle costs are driven by energy and maintenance. Cooling already consumes 25% to 30% of electricity worldwide and generates 8% of global greenhouse-gas emissions.
“It makes sense for folks to really focus on scope 1 and scope 2 first,” says Robbins. “So, for grocery, they’re consuming more energy per square foot than almost any industry out there, and that’s because of refrigeration, which doubles or triples the amount of energy consumption for a grocery store compared to other retailers. A refrigeration system at a grocery store consumes typically around 60% of all the energy in that grocery store. So, being able
Investment in more efficient systems that meet regulatory requirements can reduce energy and maintenance costs long-term.
Catching refrigeration leaks early saves time, refrigerant and money.
Larger food retailers are leading when it comes to installing systems using natural refrigerants.
RETAILERS LOOK TO ADVANCED TECH AND ECO-FRIENDLY REFRIGERANTS TO COMPLY WITH REGULATIONS AND CUT GREENHOUSE-GAS EMISSIONS.
DuffA ShopRite store in Pelham, N.Y., has open cold cases, but dairy keeps chilled behind closed doors, cutting the loss of refrigerated air and of the power needed to generate it.
which a leak might go undetected for three months, and then you’re out of gas.”
So, catching the leak early saves time and refrigerant, not to mention potential U.S. Environmental Protection Agency fines. On top of that, a leak that bleeds out a system results in the need for a refill, observes Robbins. That can require thousands of pounds of refrigerant, which “costs $27 to $30 a pound,” he says. “If you lose 2,000 pounds, that’s a bad day.”
St. Louis-based Emerson makes refrigeration components and monitorsm but prides itself on working with supermarkets, grocery stores and other customers to develop sustainable refrigeration solutions.
“Emerson does a lot of industry stewardship activity,” notes Kurt Knapke, the company’s VP, solutions strategy, cold chain. “That puts us in a unique situation when we’re talking to our customers, whether that’s a supermarket or a foodservice end user or an OEM [original equipment manufacturer] that is building refrigeration equipment. We’re looking from their perspectives. We want to be involved as a consultative voice throughout the industry. When it comes to sustainability, that comes with environmental, emissions [and] energy consumption, as well as total cost of ownership.”
to reduce that energy consumption has a massive impact on the grocery store’s overall energy consumption. If you can reduce your refrigeration cost by 10% or 15%, suddenly you’re really moving the needle for the whole store.”
Axiom Cloud can adjust set points and control algorithms to ensure that the refrigeration is working efficiently. Since supermarkets and grocery stores have demands other than monitoring refrigeration to attend to on a daily basis, Axiom Cloud applies its technology to make necessary changes quickly and maintain cases at the right temperatures in relation to their function.
The scope 1 refrigeration challenge that food retailers face is leakage. Hydrofluorocarbon (HFC) refrigerants that have been used in refrigeration systems are powerful greenhouse gases that are gradually being phased out, but still exist in the market. Axiom Cloud, while maximizing efficiency, uses the data it’s monitoring and compares that with an ideal model to look for deviations that identify such problems as refrigerant leaks.
“We’re able to use data science and use AI to put a digital gas needle on a system,” notes Robbins. “It’s not perfect. It’s not going to tell you exactly how many pounds of refrigerant are there, but it is going to tell you relative levels. Say, it’s at the 50% mark, and then we notice it’s at the 40% mark — there’s a leak. Our entire goal is to be able to detect leaks within three to seven days. That’s a massive improvement over the status quo, in
Food retailers in general need to keep up with the regulations and recommendations that are affecting refrigeration, according to Knapke, because rules and advice originate from a variety of sources, including not only industry-related organizations and the U.S. federal government, but also the U.S. Climate Alliance, a group comprising 23 states and Puerto Rico. This includes states that have been particularly assertive in developing their own sustainability agendas, among them California, New York and Washington.
Knapke says that emerging regulations have some consistency but aren’t altogether aligned with California, for example, which is at the rule-making forefront. Then, the ability to respond to evolving regulations — not to mention pressure from a significant proportion of consumers for eco-friendly development — differs when it comes to small, medium, large and industrial-refrigeration applications, given capital budgets and cost factors. Thus, Emerson works with customers to analyze project first costs, model energy systems and weight maintenance expenditures.
“We’re working with the natural refrigerants, but also the synthetic refrigerant manufacturers early on in their development, so we understand the pros and cons of CO 2, propane, ammonia and the available A2Ls, and understand what’s the makeup of those, the flammability considerations, as well as the GWP and the resulting thermodynamic performance of those refrigerants, which results in higher or lower consumption of energy,” Knapke says.
A2Ls include refrigerants incorporating hydrofluoroolefins, or HFOs, a new replacement for the kinds of
HFC refrigerants currently being phased out.
Propane, also known as R290, can be a solution for smaller food retailers, while ammonia is something that many of the larger industrial users have learned to handle efficiently, observes Knapke. More supermarkets are looking at CO2 systems, although those come with different architectures that require costly retrofitting and advanced monitoring to maintain efficiency. In midsize applications, Knapke says that A2Ls have some advantages due to the simplicity of the system architecture, the familiarity contractors have with those systems, and the first costs.
“Although CO2 can be competitive in the larger systems, we’re finding, at least today, there is still a significant premium in that small remote condensing unit,” he points out. “The larger guys are going to have more abilities either internally or in relationships with engineering consultants that are going to allow them to adopt those more sophisticated system architectures. The smaller guys are probably going to lean into their contractor base and have a tendency to adopt things that are more traditional and do not have that transition or learning curve over time.”
Regulations must play a major role in decision-making when it comes to choosing systems, asserts Knapke. For example, California addresses both existing and new store refrigeration systems in its regulations. However, EPA is focused on new equipment as well as supply restrictions on refrigerants in advancing its sustainable-refrigeration goals.
On top of all that, the question becomes one of cases and their purpose in the store. Some major retailers have been adding more cases with doors and other means to contain the refrigerated environment, but that doesn’t make everyone happy.
“The merchandisers don’t want anything that blocks the consumer from the instantaneous purchase,” explains Knapke. “However, they have to be part of this solution, to understand if I do put doors on that case, I can significantly reduce the capacity I need as well as my energy consumption.”
Mark Inkrott, CEO of Columbus, Ohio-based Cooler Management, which specializes in developing self-contained cases for consumer product brands, says that many of the grocery operations he sees are replacing existing cold cases in the course of business.
“As they open new stores and consider cooler choices, they are favoring Energy Star-certified cases,” notes Inkrott. “Almost all self-contained cases have made the switch to R290 refrigerant.”
Where R290 refrigerant is gaining in stand-alone cases, he adds, the driving forces are superior sustainability and cost efficiency. However, preference in such promotional cases still is for open access, given the importance of the merchandising function.
Danielle Wright, executive director of the Mill Valley, Calif.-based North American Sustainable Refrigeration Council, characterizes the regulatory situation in regard to HFCs as putting “unprecedented” pressure on grocers to transition from high-GWP refrigerants.
“At the same time, a growing number of companies are setting corporate climate targets that will require the transition to climate-friendly refrigerants,” says Wright. “All of this is leading to an overall increased demand for natural refrigerant technologies. However, there are still significant challenges that need to be addressed to scale the transition to climate-friendly refrigerants. In particular, the shrinking technician workforce is creating a bottleneck, slowing the transition and threatening the industry’s ability to meet regulatory timelines.”
According to Wright, many large national and regional chains have turned to natural refrigerants, specifically CO2 Transcritical, as their standard for new store builds.
California’s recent HFC regulation prohibits systems above 150 GWP in new stores, a standard that old refrigerants can’t meet, she notes, adding that “other state and federal policies are beginning to follow suit.”
With their greater resources, larger food retailers are leading when it comes to installing systems using natural refrigerants.
“A growing number of larger national and regional chains are developing remodel or retrofit plans to transition their existing stores to lower-GWP refrigerants,” notes Wright. “More and more frequently, those plans include full or partial remodels to natural refrigerants.”
For its part, however, Charlotte, N.C.-based Honeywell is manufacturing HFO synthetic refrigerant as an eco-friendly alternative to HFCs.
“HFOs provide increased energy efficiency,” explains John Keating, VP and general manager, stationary refrigerants at Honeywell. “If you think about a supermarket’s cost of running business, when you step outside of the cost of the food inside the supermarket, the second-biggest cost driver for a supermarket owner is the energy bill. So, how we’re doing that is with HFOs. These can be drop-in solutions. Our solutions are nonflammable and help the stores get below the 150-GWP level.”
The retrofitting that goes with switching from HFC to HFO refrigerants varies, notes Keating. Honeywell’s most popular refrigerant is its Solstice N40, which is a direct replacement for the most common HFC in the market, requiring no changes except to expansion valves within the cases. However, stores that want to get below 150 GWP with HFOs have to install new architecture, as is the case with natural refrigerants.
“If you can reduce your refrigeration cost by 10% or 15%, suddenly you’re really moving the needle for the whole store.”
—Amrit Robbins, Axiom Cloud
ow that the fog from the pandemic has (mostly) lifted, grocers are re-evaluating their physical-store strategies as they look to maximize profits, keep shoppers loyal and drive sales amid escalating expense pressures.
Driving through the streets of any major U.S. city, it’s easy to see the future of the grocery format: Stores are getting smaller. The average size of a grocery store in the United States is currently about 38,000 square feet, according to Cuhaci Peterson, a Maitland, Fla.-based commercial architectural firm that designs a lot of supermarkets. That number has been steadily declining for years, with small-format grocery stores now ranging in size between 12,000 square feet and 25,000 square feet, and even smaller in urban markets.
Over the past year, real estate, construction and labor costs have skyrocketed. More consumers are working from home than ever before, and many are leveraging their e-commerce options and not spending as much time in physical stores. Meanwhile, retailers are hankering for more floor space for fulfillment and other omnichannel needs. All of this means that many grocers are taking a
Market is generating higher foot traffic than the company’s traditional big-box stores. And this month, Grand Rapids, Mich.-based Meijer Inc., which is famous for its nearly 220,000-squarefoot supercenters, will open its first small-format Meijer Grocery concept.
Here, Progressive Grocer offers a look at how retailers are thinking about grocery formats, this year and beyond.
Meijer’s Midwest footprint of 240-plus colossally sized stores is going in a new, smaller direction. The retailer is opening its first two smaller-format Meijer Grocery stores this month. The new Meijer Grocery concept is “focused on simplifying the customer shopping experience and designed with convenience and ease in mind,” according to the company. The stores, which will span 75,000-90,000 square feet, don’t actually meet small-format standards, but they’re less than half the size of a typical Meijer store, which can cover as much as 220,000 square feet. The new Meijer format still features all of the categories that customers need for a weekly trip to restock the home, including produce and grocery; a meat counter with in-store meat cutters; a bakery equipped with in-store cake decorators; a full-service deli; a pharmacy; health and beauty care; baby, pet and consum-
Customers all over the world are raving about how ModoShelf™ is changing the way they merchandise and manage their produce section in coolers. ModoShelf™ fits into any cooler type, and offers unprecedented flexibility and variety in how produce inventory is displayed and the stock rotated.
ModoShelf™ is NSF certified and can hold up to 250 pounds of product. Its lightweight design makes it easy to install and handle. The tile design literally cuts cleaning time in half, encourages more frequent cleaning, and provides a safer product offering for customers.
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the great quality our customers have always come to expect from Meijer,” says Meijer President and CEO Rick Keyes. “Our customers’ needs are always evolving, and we’re committed to meeting them where they are. That’s why we’re excited to share this new Meijer experience with the Orion and Macomb Township communities.”
Meijer Grocery stores will also feature local brands across their departments, staying true to the company’s ongoing commitment to supporting local businesses.
Additionally, Meijer Grocery will offer the same saving and shopping technology that customers expect from a Meijer supercenter, including mPerks, Shop and Scan, and Meijer Home Delivery and Pickup.
The Meijer Grocery concept follows Meijer’s previous foray into smaller-footprint stores. In 2018, the grocer opened the 37,000-square-foot Bridge Street Market on the west side of the company’s hometown of Grand Rapids. The neighborhood-friendly market offers a range of fresh food and accessible convenience items in a smaller space than traditional Meijer supercenters.
Over the past few years, Wegmans Food Markets, which operates more than 100 stores across the eastern United States, has been going through what it’s now calling a real estate “reset.”
In the past, the retailer had been opening stores as large as 150,000 square feet, especially in affluent suburbs such as those near Washington, D.C. But in 2021, the grocer started going smaller, opening stores closer to 100,000 square feet in size.
In 2022, the company went even smaller: An 81,300-square-foot store launched in Virginia, the smallest of the three locations that Wegmans opened last year.
In an interview with USA Today in December, CEO Colleen Wegman said that the company is trying to get away from opening larger stores.
Wegman told the newspaper: “We used to have larger stores. We’re trying to go smaller again, and we’re finding we’re able to do the same amount of volume in a smaller store. So, we’re
trying to find that right balance.”
This year, Wegmans is planning to open two stores, including an 85,000-square-foot location in Reston, Va., on Feb. 1. The new store will include a Market Café featuring fresh sushi, poké bowls, pizza, chef-created salads, sandwiches, packaged subs, and more. The site will have parking below and residential units above, and will be accessible by the Reston Town Center Metro station.
The company’s second opening of 2023 will be its first in Manhattan, located at 770 Broadway, in the former site of the Astor Place Kmart. Scheduled to open in the second half of the year, the store will occupy space on both the street and lower levels of the historic building, for a total of roughly 82,000 square feet.
According to USA Today, the company plans to open in the following additional locations over the next five years: Norwalk, Conn.; Rockville, Md.; Lake Grove, Nesconset, N.Y.; Holly Springs, N.C.; and Yardley, Lower Makefield Township, Pa.
Since 2020, 112-store operator Schnuck Markets Inc. has been in reinvention mode. That year, the St. Louis-based retailer opened a concept in Columbia, Mo., called EatWell after acquiring space from Lucky’s Market. According to Schnucks, the store is where the pleasure of food and the promise of health come together for a balanced lifestyle. In addition to offering natural food items, EatWell includes a focus on organic, local and specialty products. The company is now planning to open a second EatWell location, in 2023, this time in Chesterfield, Mo. EatWell stores span about 30,000 square feet, about half the size of a typical Schnucks Market.
In 2021, Schnucks opened another new small-format concept, Fresh, in Jasper, Ind. That store spans about 18,000 square feet.
Then, in 2022, Schnucks’ experimentation with small formats took a third turn.
Last August, the retailer opened its first Schnucks Express concept. That store is actually attached to the grocer’s EatWell store in Columbia and offers more traditional grocery items to complement EatWell’s specialty assortment, according to a press release.
“After listening to our customers’ feedback, we’ve learned that they enjoy the natural and organic offerings available at EatWell, but also are seeking the convenience of conventional grocery items,” says Schnucks Senior Director of EatWell/Health & Wellness
In 2022, Wegmans opened an 81,300-square-foot store in Virginia, the smallest of three locations that the grocer opened last year.
David Isinghood. “We invite our customers to stop in and see both the expanded selection of traditional customer favorites as well as the enhanced shopping experience of the natural and good-for-you items at EatWell/Schnucks Express.”
Publix, an employee-owned grocery chain, today has more than 1,300 supermarkets across the Southeast that average between 40,000 and 60,000 square feet in size. But the company also operates a small-format banner called GreenWise, focused on natural foods. The stores comprise about 25,000 square feet and feature a variety of organic groceries, familiar favorites, housemade specialties, and more for health-conscious and gourmet foodies alike. The store format also includes locally curated items and experience zones with products for any occasion.
Customers seem to appreciate the curated offerings from GreenWise.
According to recent data from Los Altos, Calif.-based Placer.ai, autumn visits to GreenWise in Florida were up 6.4% year over year, while Publix’s traditional-format stores saw 3.9% fewer visits.
Shoppers at GreenWise stores are also staying longer than the typical Publix shopper, according to Placer.ai. The difference in dwell times was significant when comparing GreenWise stores with neighboring Publix locations. Median dwell time for the local GreenWise
in Ponte Vedra, Fla., stood at 30 minutes, while three nearby Publix locations saw median dwell times of 27, 24 and 26 minutes. The Ponte Vedra GreenWise store offers a variety of community events, such as a Free Sundae Monday, likely driving longer dwell times.
“By using the small-format concept, Publix is setting GreenWise apart and offering customers a premium grocery experience without impacting the wider Publix brand,” notes the Placer.ai report. “The success of GreenWise by Publix shows how companies can use small-format stores to experiment with brand concepts and offer experiences that are more complex and costly to provide in larger venues. By curating a shopper experience unmatched by that of larger, perhaps more traditional grocery stores, GreenWise can foster a sense of community – and encourage longer visits.”
“By using the small-format concept, Publix is setting GreenWise apart and offering customers a premium grocery experience without impacting the wider Publix brand.”
—Placer.ai report
rtificial intelligence (AI) is one of those terms that can conjure up a lot of images and ideas, from lifelike robots to futuristic video games. Its current uses are much more down to earth, though, and food retailers large and small are finding ways to harness its power to forecast demand and stock, customize promotions, create frictionless shopping journeys, and so much more.
AI leverages data, computers and machines to accurately mimic the problem-solving and decision-making capabilities of the human brain. In retail, this can translate to machine learning that uses customer analytics to predict trends, Internet of Things solutions that can help streamline operations, or computer vision that brings business insights to physical stores.
With myriad additional applications, AI is rapidly taking the grocery industry to the next level during a time when price volatility, labor shortages and competitive markets threaten to derail its progress. Whether it’s used in the picking, packing, stocking, decision-making or purchasing step of the retail journey, the technology can bring unprecedented efficiencies and customer value to every kind of grocery operation.
An Aldi Nord store in the Netherlands uses advanced AI systems from Trigo to analyze shoppers' movements and product choices.
Maintaining the freshness of produce, meat and other perishable products is a perennial problem for grocers, along with ensuring that very little of them go to waste, but AI is now being employed to help create solutions. San Francisco-based Afresh Technologies, for example, has created AIbased networks that can predict demand trajectories over time to help forecast how demand will change over the next few orders. The company’s state-of-the-art neural networks take into account several fresh variables for each forecast, in turn helping to build the best order possible.
Afresh recently joined forces with food solutions company SpartanNash to pilot the AI-powered predictive ordering and inventory management solution at 10 Grand Rapids, Mich.-area Family Fare grocery stores. Not only will this ensure fresher products for Family Fare’s customers, but it will also empower the banner’s associates to make decisions based on hard-earned data.
“Our partnership with Afresh will help SpartanNash deliver fresh produce to our store guests while also minimizing food waste, which is a key focus area for our company’s ESG efforts,” said SpartanNash Chief Merchandising Officer Bennett Morgan, when the technology rolled out to the stores in December. “Leveraging the strength of artificial intelligence and digital workflow will provide our associates with insights to create solutions that benefit our corporate retail store guests.”
With myriad applications, AI is rapidly taking the grocery industry to the next level.
The technology can help grocers create a seamless, friction-free customer experience.
The practical use of AI can also allow a retailer to see how profitable every shelf is, how it’s performing, and thereby find ways to dynamically optimize its operations.
AI is also being used in other parts of the world to help grocers create a seamless, friction-free customer experience. German discount supermarket Aldi Nord recently partnered with Israel-based computer vision company Trigo to open an AI-powered supermarket in the Dutch city of Utrecht. Thanks to Trigo’s algorithms, shelf sensors and ceiling-mounted cameras that analyze shoppers’ movements and product choices, the autonomous supermarket can let shoppers walk in, select their items and walk out without having to wait in a checkout lane or scan any items.
Edge computing and AI provided by Chinese company Lenovo have enabled The Kroger Co. to create an even more seamless self-checkout system for its customers. According to Lenovo, an AI application analyzes the video footage from checkout kiosks in real time to recognize regular processes and also to step in when something is amiss. The process covers instances when a customer or cashier fails to scan an item, as well as more targeted and intelligent use cases.
“We operate in a sector where margins are very thin, so anything that gives us the opportunity to grow sales while reducing losses can be a great source of competitive advantage,” says Chris McCarrick, senior manager of asset protection solutions and technology at Cincinnati-based Kroger.
While AI is certainly helping in bits and pieces, some retailers and third-party vendors are taking a more all-encompassing route with the technology. Through a partnership with Focal Systems, Sheboygan, Wis.-based Piggly Wiggly Midwest is running a pilot program of the retail automation company’s operating system that digitizes the entire store to automate and optimize ordering, inventory management, merchandising and in-store labor.
“We’re thrilled to work with such a beloved and historic grocer that has been a staple in American lives for more than a century,” says Francois Chaubard, CEO and founder of Burlingame, Calif.-based Focal Systems. “I’m seeing the first signs of massive adoption of AI and computer vision in the grocery and retail industry, and it’s exciting to see one of the best grocery chains helping to lead the charge.”
Walldorf, Germany-based SAP, meanwhile, has created an intelligent concept store dubbed “S.MART” that showcases several AI use cases offered by the software company. Forecasting technology driven by AI can help prevent stockouts, while AI connected to video cameras and other sensor-based technology can alert store personnel when products are misplaced or shelves are empty. Additionally, AI coupled with machine learning can help tackle workforce issues by offering insights into the busiest times and store sections to create optimized staff schedules.
With the ability to help shoppers, team members and ultimately a food retailer’s bottom line, AI is the latest piece of the grocery puzzle that should not be ignored. Roy Horgan, SEVP of strategy at Nanterre, France-based SES-imag-
otag, a company that provides in-store digital technology solutions for retailers, explains that the practical use of technology, including computer vision, on-shelf automation and analytics, can indeed allow a retailer to see how profitable every shelf is, how it’s performing, and thereby find ways to dynamically optimize its operations.
Even smaller retailers can find success by wading carefully into the world of AI. Horgan shares an AI use case where an analytics tool can look at a product and its price on the shelf, and then scrape competitor websites to see their prices on the same product. Using a dynamic price tag, retailers can then shift their own pricing, thereby increasing rates of sale and delivering a value message to the consumer in a completely hands-off manner.
“We believe every store can learn, every store can be optimized,” Horgan says. “There’s no reason why you can’t have stores that have 2% or 3% higher profitability but also have waste below 1.5%. That’s where it gives me so much joy and hope that physical retail is a completely underperforming, underutilized asset that can be improved.”
“We believe every store can learn, every store can be optimized. There’s no reason why you can’t have stores that have 2% or 3% higher profitability but also have waste below 1.5%.”
—Roy Horgan, SES-imagotagAl-driven software from Afresh Technologies helps grocers predict demand trajectories for produce over time to build orders that will reduce waste and deliver the freshest products possible.
t’s no surprise that use of grocery e-commerce boomed during the pandemic years, when shoppers ventured out only on an as-needed basis, but now that COVID-inspired restrictions have eased, many consumers still expect the greater choice and flexibility that purchasing groceries online can offer them — even if they do most of their shopping in brick-and-mortar stores.
That being the case, grocers are under pressure to provide e-commerce programs, but the profitability of such initiatives continues to be a concern. How, then, can food retailers maintain and grow their online businesses in accordance with consumer needs while managing costs?
“To reach profitability, a certain level of scale is necessary,” replies Langston Dugger, U.S. director of operations at Getir, the Istanbul-based “ultrafast” delivery platform that made headlines late last year when it acquired fellow q-commerce player Gorillas. “In the near future, you are likely to see more product selection, more fine-tuning of delivery modes and more innovation when it comes to technology.”
Indeed, emerging tech solutions have the potential to streamline e-commerce operations like never before.
“Innovation will continue to drive new efficiencies, enabling retailers to offer faster and cheaper propositions with more competitive unit economics,” notes Jonathan Morav, head of product strategy at Tel Aviv-based scalable commerce software company Fabric. “The U.S. is expected to see [a] 19.5% [compound annual growth rate] in same-day delivery between 2020 and 2027. In order to do this efficiently with cost-effective unit economics, brands, retailers and logistics service providers need to get closer to their customers with smaller-footprint warehouses that use micro-fulfillment center automation ensuring high throughput per square foot.”
According to Rina Hurst, chief business officer at Birmingham, Ala.-based grocery delivery company Shipt: “First and foremost, e-commerce will continue to mature and advance technologically, which will offer more growth opportunities for grocers. We’re already seen this taking shape in the way that third-party delivery services leverage scale across a market to keep costs for partners low, and how these services flex their business models to prepare for peaks in retail demand.”
Ariella Azogui, co-founder of New Yorkbased delivery solutions provider Dutch-X, cites investments in such areas as micro-fulfillment centers, autonomous vehicles with precise delivery slots, tech-enabled logistics optimization, and data, analytics and IT infrastructure as key to profitable e-commerce growth, as well as teaming up with third parties and deploying different delivery models to stand apart from the competition.
“Retailers that take decisive action and make strategic investments today will be well positioned to carve out a profitable position for the future,” counsels Azogui. “Efficiency, speed, demand aggregation and possible collaboration of players in the industry will drive volume, which will drive profitability.”
Emerging tech solutions have the potential to streamline e-commerce operations like never before. The opportunities offered by personalization are uppermost in the minds of many e-commerce players. Grocers must also make sure that they have enough of the products that customers want.
THESE ARE THE CAPABILITIES THAT SAVVY GROCERS WILL NEED TO HARNESS IN 2023 TO KEEP THEIR OPERATIONS RELEVANT AND PROFITABLE."Ultrafast" delivery platform Getir recently acquired fellow q-commerce player Gorillas, signalling greater consolidation in the instant-needs sector.
For Carl Turner, CEO and founder of Winston-Salem, N.C.-based Swipeby, a turnkey platform offering online ordering, pickup, delivery and customizable geofenced arrival notifications, “the move to own the branded shopping and fulfillment experience” is nothing less than “the next step in the grocery evolution.”
Explains Turner: “Delivering standout experience depends on collecting the right data and using it to build strategies to better serve customers. The solution involves ownership of the data and ownership of the experience so that grocers can develop marketing and fulfillment strategies that involve personalized messaging and rewards to build loyalty that are based upon the insights and opportunities that this ownership provides.”
Indeed, the opportunities offered by personalization are uppermost in the minds of many e-commerce players.
“Customers want grocers to provide the same convenience and personalization they’ve come to know from shopping online,” points out Camille van Horne, director of fulfillment product at San Francisco-based online grocery provider Instacart. “Grocers who are the most successful will be the ones bridging their in-store and online experience, creating a holistic omnichannel approach.”
“Hearing retailers talk a lot … beyond the bread and butter of driving sales, increasing profits and streamlining operations,” Christian Freese, head of U.S and Canada, grocery and new verticals at San Francisco-based transportation company Uber, notes that at the top of their lists “are the personalization and curation of the online shopping experience for groceries.”
Freese adds that the retailers he’s spoken to are also interested in “unlocking new retail categories within ‘grocery’ — for example, you’ve got a local florist, a local baker and a local pharmacy within every major grocery store — as well as bundling together items from multiple stores into a single order for delivery. These are tech challenges and real-world retail challenges, and we’re looking into digging into them with our partners.”
Ultimately, however, retailers must bring their unique identities to their e-grocery operations.
“Grocers need to bring the expected in-person brand experience to consumers in the digital world,” urges Turner. “At Publix, shopping needs to be ‘a pleasure’ online, and Kroger needs to deliver ‘fresh’ click-and-collect orders to continue fostering the same customer relationship and loyalty they have at the person-to-person level.”
Grocers must also make sure that they have enough of the products that customers want.
“Given that supply chain challenges and item shortages look set to continue well into the future, I believe that one the surest steps any retailer can make towards achieving e-commerce profitability is by focusing on a problem that is fundamental to profitability across all channels — ensuring accurate, forward-looking perpetual inventory visibility and on-hand availability by implementing smart computer automated replenishment-ordering solutions across all categories in the store,” advises Steve Paro, chief product officer at Tampa, Fla.-based Upshop, which offers a “total store operations platform” encompassing fresh, center, e-commerce and direct store delivery solutions. “Ensuring appropriate levels on on-hand quantity has a direct line towards sales and waste numbers.”
Greg Wilson, VP field strategy at Helsinki-based Relex Solutions, a provider of supply chain and retail planning solutions, agrees, stressing that it’s “important for retailers to collaborate with growers and suppliers to protect and maintain availability. Communicating needs far enough in advance can influence the production and growth of a product in demand. It all comes back to the trust between retailers and suppliers.” According to Wilson, solutions using artificial intelligence and machine learning can “give us a better view of what’s likely to happen and to better track things such as waste reduction,” but he cautions against “applying the [technologies] to areas where they won’t drive actual benefit.”
All of the above items are important for food retailers to bear in mind as they navigate the ever-changing world of e-commerce, which companies must leverage if they don’t want to be left behind.
“Despite the substantial growth of online grocery and the increased number of players, the market truly is on the verge of its next transformation,” observes DutchX’s Azogui. “The leaders of today are not guaranteed to be winners tomorrow.”
Shipt is a third-party delivery service that leverages scale across a market to keep costs low for its retail partners.Scalable commerce software company Fabric believes that brands, retailers and service providers need to get closer to their customers with smallerfootprint warehouses using micro-fulfillment center automation.
A 100% plant-based cooking oil solidifier, FryAway transforms used liquid cooking oil into solid organic waste for safe disposal with household organic waste or trash, rather than pouring it down the drain or placing it in a landfill-clogging container. The made-in-theUSA product is designed for the home cook who enjoys fried foods yet struggles with cleaning up and disposing of the leftover oil. FryAway helps clean up the oily post-frying mess in three easy steps: Stir the powder into hot oil, wait for the product to turn the cooking oil into a gelatinous form, and simply scoop the solid waste into the trash. FryAway solidifies oil in as little as 15 minutes, depending on the amount of oil and ambient temperature. A 3.5-ounce package of powder including a 1-cup scoop, yielding 10 uses, retails for a suggested $9.99. A member of 1% For The Planet, FryAway has pledged 1% of its total revenue to charities that focus on water conservation. https://fryaway.co/
Coffee-inspired tea? That’s what Choice Organics is offering with the launch of its Bloom & Brew Puerh (pronounced poo-air) teas, the first certified-organic coffee-inspired tea products that mimic the full-bodied experience of traditional morning brews, but with only half the caffeine. The sustainable product line is made from premium USDA certified-organic teas, herbs and botanicals. Each variety is enhanced with a touch of coffee extract and a mix of roasted dandelion and chicory, as well as additional premium ingredients, in three coffee-inspired flavor profiles: Smooth Roast, robust and nutty, with notes of caramel and vanilla; Bright Roast, juicy and energizing, with notes of citrus and berries; and Spice Roast, bold and herbaceous, with notes of spice and wood. An individual recyclable box of 16 compostable tea bags retails for a suggested $7.25, while the suggested retail price for a Discovery Set of 48 tea bags — 16 tea bags of each roast — is $12.87. https://choiceorganicsproducts.com/
For its latest innovation, Two Good, a brand of Danone North America, has introduced a three-SKU line of Smoothies – convenient, on-the-go cultured dairy drinks made with real fruit purée and no artificial sweeteners. Featuring 80% less sugar than the average cultured dairy drink, the product line is the first in its category to contain 3 grams of sugar per bottle and is also an excellent source of protein. To achieve its lower sugar content, Two Good uses ultra-filtered milk that removes most of the naturally occurring sugars from milk, and additionally uses live cultures for fermentation. Available in three flavors – Mixed Berry, Strawberry Banana and Peach — Two Good Smoothies have 10 grams of protein; 0 grams of added sugar, with no artificial sweeteners; and 5 grams of carbs, as well as being non-GMO Project Verified. What’s more, the brand has teamed with two food rescue organizations, City Harvest, of New York City, and We Don’t Waste, of Denver, to help fight food insecurity and food waste. With every purchase of Two Good, including the Smoothies, a donation goes to help keep food from going to waste and get it to the people who need it the most. To date, Two Good has donated 40 million-plus meals. A 7-fluid-ounce bottle of any Smoothie flavor retails for a suggested $1.89. https://www.twogoodyogurt.com/; https://www.danonenorthamerica.com/
A maker of powdered nut butters and plant-based foods since 2007, PB2 Foods has now come out with a line of PB2 Pantry baking mixes. Unique to the market, thanks to the brand’s roasted peanut flour and innovative resealable packaging, the mixes are 100% gluten-free, vegan and kosher, in addition to containing no GMOs. Easy to make and brimming with plant-based protein, PB2 Pantry baking mixes come in three family-friendly flavors: Chocolate Chip Cookie Mix, Chocolate Chip Brownie Mix and Apple Cinnamon Muffin Mix. With roasted peanut flour instead of wheat flour, the line delivers 14 grams of protein per serving for the Apple Cinnamon Muffins and 4 grams of protein per serving for the Chocolate Chip Cookies and the Chocolate Chip Brownies. The mixes retail for a suggested $11.99 per 16-ounce jar. https://pb2foods.com/
Startup Heyday Canning Co. has launched its first product, a line of Sauce-Simmered Canned Beans, which will soon be available in natural foods stores nationwide. The brand is entering the $2 billion canned bean category with an ambitious mission: to make canned food essential to a new generation of home cooks. To that end, Heyday’s Sauce-Simmered Canned Beans reimagine a tried-and-true pantry staple with novel flavor profiles and premium ingredients. The line debuts with six ready-to-eat flavors: Harissa Lemon Chickpeas, Kimchi Sesame Navy Beans, Coconut Curry Chickpeas, Tomato alla Vodka Cannellini Beans, Enchilada Black Beans and Apricot Glazed Baked Beans. Created with Ali Slagle, recipe developer for The New York Times and Bon Appétit, Heyday’s Sauce-Simmered Canned Beans are designed to pair with rice, pasta or sauteed veggies for effortless homemade meals in minutes. All of the SKUs are vegan, gluten-free and non-GMO. A 15-ounce can of any variety has a suggested retail price of $4.99. https://www.heydaycanning.com/
Already a well-known kids’ natural care brand in Australia, family-owned Jack N’ Jill has now brought its Bath Time Essentials line to the United States. Expertly crafted and rigorously tested with children and families in mind, the line features products created for all kids, with some items specifically designed for newborns’ skin. For instance, Jack N’ Jill’s Baby Wash and Baby Lotion are both dermatologically tested and hypoallergenic, using native extracts and organic oils that make them suitable for the most sensitive skin. Both products are free from soap, color, propylene glycol, lanolin and synthetic fragrances. Additional products in the line are Blissful Bubbles, Detangler Leave-In Conditioner, and Shampoo & Body Wash. All of the products come in fully recyclable bottles and packaging. Bath Time Essentials products have suggested retail prices of $8.99-$11.99. https://wellbeingisland.com/
Dole Packaged Foods has just taken the wraps off its latest product launch, Dole Wiggles Fruit Juice Gels, which the company refers to as “a wholesome, nutritious take on a classic snack.” The product line comes in three fruit-forward flavors — strawberry, orange and cherry – all made with 100% fruit juice and containing no artificial flavors or added sugar. The wobbly fruit treats are also non-GMO and rich in vitamin C. Each package of Dole Wiggles offers four 4.3-ounce cups, with a suggested retail price of $2.99. Having debuted online and at select retailers, the product will be more widely available in spring 2023. https://dolesunshine.com/us/en/
Just before the festive season, Schuman Cheese introduced Delve, which the company describes as “one-of-a-kind mascarpone bites that are breathing new life into the truffle category with an unexpected, creamy spin, and bringing the (holiday) party to a fresh, new grocery aisle.” The refrigerated treats are crafted with Schuman’s award-winning Italian-style mascarpone cheese and wrapped in 100% pure, sustainably sourced chocolate. As if that weren’t decadent enough, the truffles are also infused with caramel, espresso and fruit accents. The line consists of a Sea-Salted Caramel Crème 8-Count Box, a Lemon 8-Count Box, a Raspberry 8-Count Box, a Chocolate Ganache 8-Count Box, and a 36-Count Variety Pack featuring a trio of flavors: Sea-Salted Caramel Crème, Chocolate Ganache and Tiramisu. The 8-count boxes retail for a suggested $7.99 each, while the Variety Pack, available at Costco, goes for a suggested $15.99. https:// www.schumancheese.com/; https://eatdelve.com/
GROCERS LIKE CINGARI FAMILY SHOPRITE ARE IN THE VANGUARD OF COMPANIES DEDICATED TO COMPOSTING.
hen it comes to sustainability objectives, consumers want grocers to walk the walk as well as talk the talk. By that standard, Cingari Family ShopRite has certainly been successful, particularly in relation to its composting activities. Progressive Grocer recently caught up with Dominick Cingari, VP and supervisor of pharmacy, nonfoods, and health and beauty at the Connecticut-based family-owned company, to find out how the independent retailer became involved in recycling organic matter like food into fertilizer.
Although the company has been physically composting for more than a decade, having launched its initiative in this area back in 2012 for Earth Day, it became involved with Southington, Conn.based food waste hauling business Quantum Biopower and Hartford, Conn.-based Blue Earth Compost just a few years ago.
“Blue Earth Compost provides Cingari Family ShopRite with bins to transport waste to their vendor, Quantum Biopower,” explains Cingari. “Blue Earth then picks up the waste from our stores. It initially started with just one of our stores during the pandemic, and then eventually expanded to all 12 locations.”
to energy to power Southington homes and businesses. “This differs from other composting methods that release methane/greenhouse gases into the atmosphere,” points out Cingari.
As for how the partnership has developed, he observes: “What Cingari Family ShopRite [was] sending to compost [jumped] to about 30% more material to be composted as we [added] new stores to our partnership with Blue Earth and Quantum. That’s 30% less going into the landfills.”
In addition to doing good work in composting, the company makes sure that its shoppers and employees are kept in the loop.
“We have signage in our stores by checkout to let the customers know that Cingari Family ShopRite donates wholesome but unsaleable products to local food banks, and that we compost and recycle,” says Cingari. “I also like to set goals for the stores. By keeping track of the weight for each store’s waste and compost, we can share the percentage of what does not go into landfills and display it on signs throughout the stores.”
The grocer shares such reports with its employees on a weekly basis. “When store A sees that they’re getting beat by store B, it turns into a contest of sorts to see who can succeed the most,” notes Cingari.
When asked what makes its current composting collaboration different, Cingari replies: “By using automated technology, Quantum can take our packaged food waste. This hasn’t been possible for us in the past with traditional composting and diversion. For example, in the past, nonsaleable shredded cheese would be opened and we would throw away the plastic bag, and then put the cheese to be composted. Now, with Quantum Biopower’s technology, they turn the plastic and the food waste into a compost slurry and force it through small screens that separate the plastic or metal from what is compostable so that they can recycle those materials and extract the food waste.”
What’s more, Quantum, whose digester uses an anaerobic process to rapidly break down food waste and turn it into nutrient-rich compost, also captures the methane gas that’s naturally released during the composting process, and the gas is then converted
The success that Cingari Family ShopRite has already seen with Blue Earth and Quantum is on course to continue. “We’re also expanding our floral department, and all of the old floral dirt and broken bags of mulch will now go to Quantum Biopower, along with anything else that’s biodegradable,” says Cingari, who sums up the company’s dedication to composting and other sustainability initiatives simply: “Doing the right thing is what’s important.”
Bridget Managing Editorbgoldschmidt@ensemleiq.com
Goldschmidt
“By keeping track of the weight for each store’s waste and compost, we can share the percentage of what does not go into landfills and display it on signs throughout the stores.”
—Dominick Cingari, Cingari Family ShopRite
