April 2023 Grocery Insight

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April 2023

The 2023 Sweets & Snacks Expo

A birds eye view of the industry's must-see show Sweets & Snacks Expo organizers divulge how attendees will be inspired, uncover cutting-edge products and forge partnerships with elite decision makers

Exhibitors offer a sneak peek of their booths and retailers tell why they make a point of returning to the Expo each year

Inside Special Report: Hy-Vee • 2 • Sweets & Snacks Preview: 4 • Sweets & Snacks Preview: Licorce 8 • Sweets & Snacks Preview: Sour Candies 10 • The Future of Private Label 12 • Category Analysis: Sausage 14 •
Analysis: Hummus 16 • Category Analysis: Greeting Cards 18 • Category Analysis: Premium Butter 20 • Category Analysis: Pierogies 22 Grocery Insight
Category

Special Report

Hy-Vee

Hy-Vee started as a small store in 1930 and grew into a powerhouse regional grocery chain. The company specializes in not only providing consumers with affordable grocery options but also has a strong focus on health and wellness. Hy-Vee has continued to ensure that consumers are well informed in regards to health, nutrition and wellness topics. The company has several programs and initiatives that reflect its commitment to healthy lifestyles.

History

In Beaconsfield, IA, Charles Hyde and David Vredenburg opened a small store in 1930. The partners called their store Hyde & Vredenburg by 1933. Five years later, the company expanded to include 15 Iowa and Missouri stores under the company’s name. Vredenburg’s son, Dwight, was named the first president of the company. The business continued to operate an office, warehouse, retail stores, mill and meat plant, and eventually a bakery—all helping the company sales total more than $1 million in 1938, and another million four years later.

Through the next several years, the company continued to grow and expand through various operations to stay ahead of consumer demands for convenience, alongside contributing to the community through programs and donations. In 1948, Hyde & Vrendenburg had 22 tractor-trailer trucks for distribution and the company’s new facility in Chariton, IA opened the same year. A year later, Hyde and David Vredenburg retired, and at this time there were 29 locations.

In 1952, there was a competition to rename the stores, which at the time were known as “Supply Store” or “Service Store” followed by the name of the town they operated in. Hy-Vee Food Stores won the competition, directly derived from the founders’ last names. In 1956, private label products were in production and part of the Hy-Vee store and brand. The company officially brought an in-store bakery into many of the locations in 1957, and by 1959, there were 37 stores and about 1,200

associates.

As Hy-Vee has always put its employees and consumers first, the company decided to establish The Employees’ Trust Fund in 1960, which gave employees the opportunity to have part ownership of the company. The following years consisted of several initiatives to get the company name out there to generate more awareness of Hy-Vee. By the end of 1979, the company had 124 stores and 10,000 employees.

The company continued to expand its footprint through the next years, and in addition to growing its store count, Hy-Vee began adding more services to its operation in an effort to provide efficiency and convenience to consumers.

In 1984, Hy-Vee started to include video rentals, bank and pizza services. The same year, the company was named the second store in the US that offered debit card transactions. It wasn’t until 1983 when the company announced its second president, Ron Pearson, after Dwight Vredenburg retired. In 1995, the company changed its name from HyVee Food Stores to just Hy-Vee, and in 1999 there were 80 stores and 43,000 employees.

After consistent and gradual expansion, the company began to set its sights on helping consumers focus on healthy lifestyles. HealthMarket private label products were launched in 2001, and the company started its program that offered consumers services from dietitians. These initiatives and programs have continued to be part of the company as a driving force and have been able to provide consumers with education and knowledge on nutrition and health.

Leadership

In 2022, the company announced Aaron Wiese as CEO, taking over for Randy Edeker. Shortly after the announcement, the company decided to add Jeremy Gosch as CEO alongside Wiese, ultimately creating a dual-CEO role.

Gosch had been working with Hy-Vee since 1996 when he started as a parttime clerk at the Coralville, IA location and was later appointed store director

at Eldora, IA in 2002. He was then promoted to COO in December 2021, and later CEO. At the end of 2022, the company announced that CEO Jeremy Gosch was named vice chairman of Hy-Vee’s Board of Director.

“As I look ahead to the future, we’ve reached a point where one person can no longer hold the title of chairman, CEO and president for the entire company,” Edeker told officials in reports. “We have become more than just a grocer. With our focus on health and wellness, pharmacy, restaurants, grocery, distribution and digital assets, it’s time we evolved our leadership structure to best position the business for the future, which is why Jeremy will also serve as a CEO for the company.”

It wasn’t long until the company announced that the dual role would be reversed and go back to a single CEO role. According to media reports, in 2023, the company announced that three top executives, including Wiese, would start reporting to Gosch, and he would remain the CEO.

Recent News

Today, the company has more than 285 stores in eight states, approximately 93,000 employees and is considered one of the top three favorite grocers in the US.

Keeping consumers at the heart of everything the company does, Hy-Vee recently offered a new program to help consumers improve their blood sugar management. In an attempt to give consumers the opportunity to take care of themselves through preventive care and nutritional health, the company’s dietitians are focusing on guiding individuals with prediabetes, diabetes or gestational diabetes through what the company classified as an “action-based virtual group program to reduce sugar intake, control cravings and help reduce inflammation.” The program will include free A1c screening tours, virtual wellness classes and freezer meal workshops to name a few.

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Sweets & Snacks Expo Preview

For more than 25 years, the Sweets & Snacks Expo has provided exhibitors and retailers with the definitive educational experience and meeting place opportunity. While briefly affected in the pandemic, the show has roared back and looks forward to the 2023 show being bigger than ever.

Data Guides Strategy

“Our attendees make this show what it is—their feedback guides the full experience we deliver each year, making the Sweets & Snacks Expo a world-class trade show,” said the National Confectioners Association's (NCA) Director of Communications Lauren O’Toole Boland. “We are data-driven and look to valuable attendee feedback to guide our strategy as we plan each year. We are always reminded of the importance of the in-person experience and work to ensure each attendee continues to find value in attending the Sweets & Snacks Expo each year.”

The NCA believes the candy and snacks industry have recovered in the past two years. “Both categories have been resilient throughout the Covid-19 pandemic and through the current economic uncertainty,” O’Toole Boland said. “Consumers look to celebrate seasonal moments longer and make everyday celebrations a little more enjoyable. Confectionery products, in particular, are seen as an affordable indulgence by consumers and bring joy to a birthday celebration, movie night at home or watching the big game with friends and family.”

“This year, we will have more than 700 exhibitors attending the Sweets & Snacks Expo, and these numbers and enthusiasm prove that this is the trade show to attend in North America,” she continued. “Our attendees also shared how important attending the Sweets & Snacks Expo in-person has been for them, especially after we could not meet in 2020. The disruption spurred an important discussion around the future of the show and the decision to relocate the Sweets & Snacks Expo to Indianapolis and Las Vegas. Beginning in 2024, the Sweets & Snacks Expo will cycle through a rotation of two years in Indianapolis, followed by one year in Las Vegas until 2032. These dynamic cities are the right fit to meet the grow-

ing demand for our show.”

An Unbeatable Event

“You cannot beat the networking at this event! Whether with connections from prior years, current suppliers and retailers, or prospective new vendors—I always walk away with closer relationships than I began with!” said Alyssa Snyr with S. Abraham & Sons (SAS). “SAS is excited to participate in the NCA Women’s Leadership Group breakfast networking event for the first time this year. What an excellent way to get to know industry professionals in a relaxed setting! SAS is committed to continuing our push on National Candy Month, and I am excited to continue to learn more about how other manufacturers, retailers and wholesalers participate. I love to see the trends that come out of the Most Innovative New Product Awards as well. The winners of the MINPA are a slam dunk for upcoming innovation.”

“Sweets & Snacks Expo is my favorite trade show of the year,” she continued. “On one hand, the confection industry is a tight knit family, so it is great to catch up with industry professionals I haven’t seen in a while. Meanwhile, there is always plenty of new vendors and products to discover. You cannot beat this event!”

In search of innovation and new trends, Susan Beezley of Westlake ACE Hardware is looking for the “new” Dot’s Pretzel—referring to the product equivalent of Dot’s Pretzels which experienced a meteoric rise when consumers discovered it on hardware store shelves. “This product resonated in the hardware channel but has now saturated the market—I’m looking for the next hot thing,” she said.

Attending Sweets & Snacks Expo is Beezley’s chance to see what’s going on within the industry on a macro level. With the exception of a few proprietary shows, “we don’t attend any other large confectionery or snack shows,” she said. “Consequently, this is our opportunity to see product outside of our regular distributors.”

“Last year was my first year attending the show; usually I attend NACS only,” said Meghann Eaton with Nouria Energy. “It was successful by giving more space to new, or growing brands. I made

relationships with manufacturers and am hoping to do it this year. I wish the venue would switch up a little and that there were seminars before the show.”

“I love seeing new products and meeting new manufacturers that I do not currently do business with,” said Amanda Nahodil with C&S Wholesale Grocers. “My goal is to always leave there with new products to offer to our retailers. It's also great for us as we can meet with new faces within a company that can be a great contact in the future if we were to need anything above and beyond. I am always most excited for this show. Everything is supersized. I also love the location in Chicago because once you are done at the show there is an entire city awaiting you. Once it moves, I'm not sure I will be as excited to attend.”

“This will be my second Sweets & Snacks show. I had always heard great things, and last year didn’t disappoint. While it is a massive undertaking, I expect it to be valuable for our team,” said Mike Nelson with Plaid Pantry.

Ollie’s Charlie Cordero has prioritized uncovering viable solutions in the snacks, cookies, bagged snacks and seasonal categories. The Sweets & Snacks Expo is the destination for retailers, like Ollie’s, who realize the advantages they’re missing out on by not attending. “This is one of two shows that are must-attend; the most profitable show in terms of our go forward business,” Cordero said.

Spotlight on Savory

For the Sweets & Snacks Expo, Benestar Brands is putting the spotlight on an innovation under the 4505 brand that was introduced last year, as well as it’s Mac’s brand. “For pork rinds we continue to highlight Tajin which launched in the last year,” said Shundrikka Owens, Chief Marketing Officer for Benestar Brands, makers of assorted pork rinds brands including Mac’s, Turkey Creek, Cazo de Oro and more premium brands 4505 and PÖRQ. “4505 is a relatively new brand that is still growing in awareness and trial. And Tajin is our latest flavor collaboration with that company and they’ve been great partners. So we continue to talk about Tajin. We’re also renovating our Mac’s brand. We just did a packaging refresh

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Sweets & Snacks Expo Preview: r

on last year and we’re optimizing some of our key flavors like our Red Hots, so we’ll have a display there is our new improved red hot flavor with more heat and more flavor. Even for our brands that have been around for a while, we’re making sure that they stay fresh and making sure those core flavors are really hitting on with what the consumer is looking for.”

Beyond just showcasing its products, Benestar Brands aims to use the opportunity to demonstrate for potential partners the level of service and commitment the company can provide to support their collective success. “We have a pretty broad portfolio,” Owens said. “We try to give each one its due, including pork rinds which is kind of the cornerstone of our business. But at the same time, I’m always impressed with our team just showing up. You see people from finance, marketing, innovation, you’ll see R&D folks there; you’ll see a huge group of sales folks there who are just ready to engage. And we have this no phone policy where everyone is just waiting to engage with the folks who walk by, whether they’re a potential customer or a consumer. As a fan of snacks, we want to engage with everybody. I just love the energy that we bring. We want to make sure that folks know that if they were to engage with our business and they were to bring our products into their stores, they’re going to get the same level of support, energy, from our entire organization, from the first day to the last day.”

Mark Singleton, VP of Sales and Marketing for Rudolph Foods, makers of pork rind brands including Rudolph’s and Southern Recipe Small Batch, said the camaraderie at shows like Sweets & Snacks reflects the common objectives of those in attendance. “When you’re a 67-year-old company, about half the people who come by just hug you, say ‘it’s good to see you’ and catch up,” he said. “We’re blessed to have so many friends in this industry. But new buyers come up all the time that don’t know about us. That don’t offer pork rinds or they under-offer pork rinds in their selections. When it’s all said and done, we’re just friends making money together. Us, the retailers, the distribu-

tors, the brokers, and we have real proof that we can provide a pork rind selection with offerings from an economic point of view, a price point of view, the right private label selection [to appeal to a diverse consumer base] all on the same shelf and maximize the velocity of the units off the shelf and create new consumers. We’re certainly there looking for people we can collaborate with to drive new pork rinds sections to support both levels of sales and levels of interest from their customers.”

Expansive Sweets

“We want customers to notice the high perceived value of our products. We take pride in making each candy fun, unique, and delicious!” said Jason Kovens, President of KoKo’s Confectionery & Novelty.

"When visitors step into the Hi-Chew booth, we want them to feel completely immersed in our brand and culture, taking in the vibrant colors and fruit-forward designs," said Teruhiro Kawabe, Chief Representative for the USA and President and CEO. "Visitors will quickly find that Hi-Chew has a deep portfolio of products and is on the forefront of flavor innovation. People will have the opportunity to taste some of the latest flavors and learn more about our upcoming product launches.”

“The Sweets & Snacks Expo is an important moment for us at PIM Brands to communicate all of the great things we have going on at our company to support the continued growth of our consumer loved brands across the commerce landscape,” said Lance Smith, Senior Vice President, Sales and Industry Affairs. “We hope that current partners and potential future partners get a sense of the power of the Welch’s Snacking portfolio to help grow their business—including Welch’s Fruit Snacks, Welch’s Juicefuls, Welch’s Fruit ‘N Yogurt Snacks, and new Welch’s Zero Sugar Fruity Bites. We also want to be sure that visitors learn more about and try our delicious line of non-chocolate and chocolate brands including Sour Jacks Mouth-Puckering Candy and SunMaid Milk Chocolate Raisins.”

“We are excited to share our innovation and our product portfolio continues to meet the consumer demands across all indulgence needs, including intense,

mindful and healthy indulgence," said Laura Bergan, Director of Marketing for Barry Callebaut Brand. "Barry Callebaut has the solution toolkit to meet all your product development needs, which will be demonstrated by our chocolate sampling and our BC Studio chef tasting concepts. Through our craftsmanship, we create the chocolate experiences of tomorrow.”

"We are excited to have a brand-new feature for Endangered Species Chocolate that is centered all about joy for every season," said Chief Revenue Officer, Whitney Bembenick. "We’re going to featuring four major holiday seasons for the year with Valentine’s Day, Halloween, Easter and Holiday product. We’ve never done anything like this before; we were creating a roadmap for growth for the organization, and we had determined it was time to pivot if we really wanted to keep leading the category with our growth and our product line. We saw a huge opportunity gap, not just for ourselves but for the category, within holiday and seasonal sales. It’s no secret a lot of chocolate and a lot of candy is sold during the seasons and anywhere from sometimes 20 to 40 percent of a brand’s portfolio is made up of holiday products and until now, less than 1 percent of Endangered Species’ product portfolio was in the holiday season. We have created seasonal shapes for each of those four holidays: for Valentine’s Day we have a stand-up bag that is a mix of Grizzly bears, Koala Bears and hearts; for Easter we are revealing a bumblebee, a butterfly and a tulip; for Halloween we have a wolf, a bat and a pumpkin and then for the holidays we are doing a penguin, a polar bear and a tree."

"We are still staying true to the authenticity of our brand, and we are on this mission to see joy through abundant giving," she continued. "That comes through our Giving Forward program where we have for 30 years given forward to conservation partners. We are expanding that reach into communities. This year is Endangered Species’ 30th anniversary of being in this industry and doing our Giving Forward program. It’s just an exciting reason to come to the booth, to see something fresh and new from our brand."

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Sweets & Snacks Expo Preview

Licorice

With Sweets & Snacks Expo just around the corner, licorice exhibitors are planning to draw in potential and existing retail partners with clean ingredient decks and juicy, fruit forward flavor options. A category synonymous with whimsy and comfort, licorice is holding its own against popular sweets namely chocolate, by continually elevating its ingredients and flavor profiles. Manufacturers are attuned to consumers’ efforts to eat healthier and are connecting with these households by encouraging enjoying sweet treats in moderation and savoring them rather than promoting overeating or restrictive diets.

Kenny’s Candy Company

The No. 1 thing Kenny’s Candy Company would like for visitors to see when they stop by their booth at the Sweets & Snacks Expo is the fact, “Wiley Wallaby and the licorice category continue to grow!” Marketing Director Jadi Anderson said. “We’re not a flash-in-the-pan brand, our growth has been substantial, significant, and data shows consumers still love our soft and chewy candy.”

“Our team loves Sweets & Snacks— it’s such a great way to connect with both current and new partners!” Anderson said. “While we look forward to almost every aspect of the show, we’re really excited about: 1. Our new flavors! We have launches happening in our Everyday, Seasonal, and Betterfor-You categories for both Wiley Wallaby and Sweet Chaos. We’re hitting on some tried and true flavors as well as some nostalgic ones, adding to the variety of our current portfolio. 2. As always, we aim to bring attention to the licorice category and the growth that we’re experiencing in Wiley Wallaby. Data shows that our soft & chewy candy helps to grow our partner’s sets when replacing other similar items. 3. We’re excited to connect with our current partners! We’ve worked with many in the industry for decades and others are new to us within the past few years but the connections we make at Sweets & Snacks are always impactful. 4. And finally, we’re looking forward to the education sessions. Both the Insights or Innovation sessions inspire us to continue

exploring ways to improve our lines.”

The Sweets & Snacks Expo is the largest industry event that Kenny’s Candy Company participates in. “It brings together companies that are confectionary giants as well as newcomers and allows them to be seen in the same room,” Anderson explained. “The show and the attendees are innovative and inspiring, we leave each year feeling refreshed and excited about the year to come.”

One of the messages Kenny’s Candy Company would like for retailers take away from their booth is, “we had a fantastic opportunity to show up for our customers during Covid and the time following when supply-chain and fulfillment were rough,” Anderson said. “Everyday day since that time, our team continues to work to maintain and better our performance and have been successful in doing so. For anyone looking for a fast growing, delicious consumer candy or snack that will deliver for them consistently, we’d like to connect further and find out how Kenny’s can be a fit for their business!”

Darrell Lea

“We look forward to showing visitors that Darrell Lea is a fun brand that appeals to a wide variety of consumers,” said David Liles, VP of Sales for Darrell Lea. “We also look forward to showing them some of our new innovation, new forms and formats Darrell Lea will be offering in 2023 and beyond!”

One key objective for Darrell Lea during Sweets & Snacks Expo is to introduce retailers to its latest chocolate items, in addition the company’s portfolio of licorice and non-licorice sweets.

“We are excited to show customers our new innovation—not just across licorice, but our other non-chocolate items, and our new chocolate items,” Liles said. “Lots of new items that will help bring excitement to the overall category. Additionally, we will be giving a ‘sneak peek’ at our updated packaging!”

One of the major reasons Darrell Lea continually exhibits at Sweets & Snacks Expo is largely in part because, “It’s such a great opportunity for us to connect with current customers and potential new customers. It’s also fun to walk the show and see all the exciting

snack and sweets that are coming into the market,” Liles said.

The takeaway retailers need to come away with after visiting the Darrell Lea booth is, “Darrell Lea makes some pretty awesome candy, and they are a great partner to work with,” Liles said.

As much as consumers with a sweet tooth have helped propel the overall confections segment forward, eventually some consumers decided to trade in high fructose corn syrup, preservatives and artificial flavors and colors in for an equally sweet and enjoyable indulgence, just made with cleaner and recognizable ingredients. “Darrell Lea Licorice built our business on cleaner labels and removing those ingredients that consumers do not want in their candy and snacks,” Liles said. “As consumers hit the reset on their snacking habits and focus on cleaner, healthier options, Darrell Lea can meet that need. Working with our retail partners to ensure consumers have that ‘healthier’ option is important. Additionally, as we bring additional innovation to the US, ensuring it meets a consumer need and want behind flavor profiles and forms is important to continue to grow the licorice category.”

American Licorice Company

American Licorice Company understands that consumers looking for premium licorice won’t settle for options filled with artificial flavors and colors and instead want something clean while still feeling like they are indulging. “The premium licorice consumer is not the everyday licorice consumer. The reasons behind the purchase of premium licorice are much different than the purchase for traditional licorice,” Clint Christensen, Red Vines Product Manager previously said.

Rather than restricting what consumers eat, companies encourage households to give into their sweet tooth just in moderation. “Many consumers aren’t focused on restricting diets anymore, but instead focus on healthy lifestyle choices,” Christensen said. “As more people adopt this approach to diet and healthy eating, there is a place for premium licorice to be part of a balanced diet and an active lifestyle.”

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Sweets & Snacks Expo Preview

Sour Candies

Sour candies remain a high in demand option amongst consumers of all ages. This year’s Sweets & Snacks Expo is shaping up to become a destination for vibrant packaging and products and levels of sour that will test the mouth puckering tolerance of the most devoted sour candy consumers. Exhibitors expect to share products that tug at nostalgic pop culture references and the collaborations that have resulted from key partnerships outside of the confections industry.

“We always try to release a new product at the Sweets & Snacks Expo,” said Haley Peyron, Marketing Coordinator for Candy Dynamics. “With the entire industry together under one roof, there is no better time. Last year, we released our Slime Licker Squeeze and Slime Writer. In addition to showcasing our latest innovations, we want to create an experience for those stepping into the booth. We hosted ‘Toxie’s Arcade’ which took attendees back to the 80s with classic arcade games and even a SkeeBall machine. This year, attendees can expect to step into Camp Toxic Waste!”

An annual objective Candy Dynamics holds itself to is releasing a new product at every Sweets & Snacks Expo.

“This year is no different so you can expect to see a new addition to the Candy Dynamics range,” Peyron said. “As our company has grown, we have gotten more into the world of licensing. We love to promote our new partnerships with brands that might not even be in the candy sector. Licensing has been and will continue to be a huge asset to the confectionery industry.”

One of main reasons Candy Dynamics returns to Sweets & Snacks Expo each year is because of the expediency and efficiency that comes with placing the industry’s decision makers and influencers in one place.

“It is not often that so many companies from the industry are under the same roof,” Peyron pointed out. “Sweets & Snacks provides us with a way to gain insight into trends in the market and connect with our customers on a personal level. Whether it’s a manufacturer or a mom-and-pop store, relationships are created and fostered at Sweets &

Snacks Expo.”

“Attendees should be left thinking about the creativity and innovation of Candy Dynamics. We always look to do and create more,” Peyron said.

In addition to preparing for industry tradeshows, Haribo has prioritized forming strategic partnerships with brands outside of the confections industry. In early March, Haribo announced a collaboration with Vans, the iconic action sports brand. The companies are launching a Haribo-inspired collection of apparel, “showcasing the youthful energy that defines both brands.” The Vans x Haribo projects encompasses products for all ages with footwear, clothing, accessories and the option to customize the design of their shoes featuring Haribo’s mascot Goldbear.

"On the heels of celebrating the 100th anniversary of Haribo Goldbears, we're thrilled to partner with Vans and honored to have inspired this special collection," said Andreas Kuhnle, Senior Vice President, Corporate Global Marketing, Haribo. "Haribo is about moments of childlike happiness and fun, helping fans feel like a kid in a candy store through our range of sweet treats. The colorful Vans x Haribo collection is inspiring that same feeling, and now our fandoms can come together in creative self-exploration and joy."

Companies like Impact Confections are attuned to consumers’ ever-changing flavor preferences and demands of the sour candies category. These insights are crucial for manufacturers as preparing for tradeshows and the constructive dialogue they'll engage in with retailers. "Consumer preferences are still leaning away from overwhelmingly sweet candy to other flavor profiles,” Paul Henderson, Sales and Marketing Director of Impact Confections previously told Grocery Insight. “And then sour is definitely one of those profiles. You also see savory candies benefiting from that, although savory doesn’t have as much of a broad acceptance as sour. The general category is challenged by supply chain disruptions. There is simply still not enough candy in the market for the customers—customers are competing for candy almost."

“We are working on Christmas 2023,” Henderson said in October. “We are working a full year out in the day-today grind, but the flip side of it is we are working on long-term supply chain. We have come to the conclusion that over the mid-term, potentially long-term, supply chain is going to be as much of a competitive advantage as brand. The brand is a promise and then delivering on that promise is key—so, that is where we are at.”

In a company-wide effort to encourage and promote fresh thinking and new ideas, “We love meeting as a company throughout the year for our huddle meetings to hear ideas from all of our employees,” Peyron said. “We encourage all to be creative and provide fresh ideas for new product development, merchandising and marketing/ advertising opportunities. We welcome all thoughts and, as one would expect with a candy company, we enjoy the time spent brainstorming new ideas together. Many of our most popular candies available in the market today have come as a result of these huddle meetings. The Candy Dynamics team loves the time when we can come together and share in these meetings.”

Having a presence in multiple channels has allowed for Candy Dynamics to promote product trial and create destinations for consumers who enjoy a treasure hunt to find specific brands they enjoy. “We find the omnichannel approach to shopping has only helped build sales for our brand,” Peyron said. “It has provided further exposure to our brand as more touchpoints are established with our customers. With more retailers carrying our range of products, we have been provided with more opportunities than ever before for product trial. As our brand becomes more prevalent in the market, our products have become destination items, increasing sales for our company and the retailer as a result.”

“The awareness of Toxic Waste has grown astronomically in the past two years, so we have been able to release more candy items and even branch out into the world of licensed items,” Peyron previously told Grocery Insight

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The Future of

Private Label

As grocery prices continue to grow, private label leaders have continued to provide consumers with cost effective options while keeping partnerships strong and at the forefront. Looking at the future, the Private Label Manufacturers Association (PLMA) has emphasized that opportunities within the category have been increasing over time and according to leaders within the private label sector, it has been a while since these opportunities have risen.

line, they’re supporting those programs with their own media. Without a doubt, store brands offer great value. However, we also think more retailers are focused

seen the past couple of years through Covid and haven’t needed as much inventory in Q1."

“Whether they use it as a dip, a spread, an ingredient in their favorite recipe or as a component on their charcuterie or smear board, we want them to see all of the innovative ways that they can enjoy the products on their own, to feed their families or to dazzle their party guests with the fun, bold flavors we have to offer."

“Statistics are telling us that it looks like Q1 will be another win for private label,” said Peggy Davies PLMA President. “January and February both showed store brand products continued to be overachievers with the top performers in the beverage, general food and bakery categories. Beyond the numbers presenters at our February Lunch & Learn programs and Juan De Paoli of Kroger, who just spoke at our Leadership Conference in Orlando, are all saying the opportunity for private brands is greater than it has been in quite some time. Needless to say, we’re feeling pretty optimistic as we move into Q2.”

PLMA has several conversations in mind when it comes to ensuring goals are aligned and the category continues to progress forward. “Our member manufacturers and suppliers have always said, for the industry to continue to succeed, you must provide consistent quality, innovation and value to the consumer,” said Davies. “The quality equation is up to the manufacturer, Circana (formerly IRI) numbers show store brands have not only met, but in some cases, exceeded national brand purchases among shoppers. By innovation, it’s not only the products on the shelf but also the marketing retailers are putting behind their own brands."

"A great example is how many of the larger retail chains are taking multibrand approaches with their own brands to reach their entire customer base across a variety of categories," she continued. "Whether it’s in-store or on-

to expand their private brand offerings as a point of differentiation not simply as a value proposition.”

Davies mentioned how private label brands can continue to set themselves apart from competitors in light of the current industry climate. “How can store brands remain strong in the coming months in collaboration with retailers? Our members are listening to the consumer’s wants and needs. We’re seeing it with our upcoming international show in May and with our exhibitors in Chicago. Now, more than ever, manufacturers and suppliers are responding to consumers’ call for sustainable products and packaging and desire for functional ingredients and products in the self-care and wellness categories. And, with changing consumer shopping habits, we’re expecting private labels will benefit from the expanding store brand programs in non-traditional channels like convenience and dollar stores. By all accounts, it appears we’re not going to be battling any major headwinds as we move into Q2 and that certainly bodes well for our industry moving forward,” she said.

While the company had a slower start to the new year, Catania Oils has become aware of the factors that are at play and have continued to stay ahead of the obstacles. “This year in Q1 we are seeing a pretty significant drop off in volume from Q4 and lower than what most retailers forecasted,” said Kevin Cyr, Director of Retail Sales for Catania Oils. “We are attributing this to a couple of factors. We think that many retailers overstocked warehouses in Q4 to avoid the out-of-stock issues that they had

"In addition, there has been a shift in consumer buying trends especially as food costs continue to remain high," Cyr continued. "People are not buying as much as they were before and are looking for smaller size options on the shelf to lessen the pinch on their wallets. Oil markets continue to remain high and with the costs of other things also still up people just can’t afford to spend $10 for a gallon of vegetable oil and are opting to buy the smaller size for significantly less money and not using as much.”

“The conversations we are having with customers for Q2 and beyond are revolving around forecasting and making sure they have the right sizes on the shelf,” Cyr continued. “Forecasting in this environment is still a challenge, but the best way we can service our customers’ needs is to understand what they are anticipating and try to produce around that. Also looking at sizes, we are working with our customers to ensure they are carrying the right sizes or shifting to the right ones to give their customers the best value options possible until the markets subside.”

“Inflation is shifting volumes between our three divisions sporadically. We have seen drops in the foodservice side of our business and increases in our retail and bulk business as less people go out to eat and opt to shop at the grocery store and cook at home. The good thing about Catania and how versatile we are doing business in the bulk, foodservice and retail markets, is we simply shift that volume of oil to the other divisions if one drops off. This allows us to have minimal cost impact to our customers,” he said. “Catania has always prided itself on the partnerships we have with our customers. We have worked closely with our true partners to develop strategies in multiple facets of the business that make sense for both of us to weather the storm."

PG 12 / GROCERY INSIGHT
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Category Analysis

Sausage

Manufacturers in the sausage category know their consumers. With breakfast as the most important meal of the day, adding sausage to a wrap or to complement a side of eggs and potatoes is required for households to jumpstart their day on a positive note. More and more, offering sausage in handheld fare such as sandwiches and wraps is clicking with people who are on-thego. That’s not to say sausage is limited to mornings. The variety of spices, textures and formats in which manufacturers present sausage to shoppers allows for creative meal planning; prepared on the grill or in the skillet and nestled in fresh tortillas, salty pretzel buns or fluffy biscuits. Amidst rising prices to conduct business and to feed families, suppliers are clear in their messaging that adjusting and reprioritizing their budgets won’t include scaling back on the quality of their sausage offerings.

“From a full-year perspective (2022), we continue to see exceptional results validated by Nielsen syndicated data,” said National Sales Manager, Doug Skeoch for Swaggery’s Farm. “The raw pork breakfast sausage category reflected a 13.3 percent increase in revenue growth, while the Swaggerty's Farm Brand posted a 19.6 percent increase significantly outpacing category trends and growing share. Swaggerty's Farm’s sales velocity remains No. 1, outpacing other brands and private labels.”

“With respect to recent trends, we are seeing consumers' demand for convenience and on-the-run offerings leading the charge,” Skeoch continued. “As is evident in our breakfast sandwich growth. We have supplied snack-size breakfast sandwich offerings for several years. However, the launch of our ‘large-size’ sausage, egg and cheese biscuits, croissants and muffins has done phenomenally well since our launch in the summer of 2022. We also created a waffle and sausage variety that is unique to the category and has been well received.”

F.B. Purnell Sausage Co. has picked up on the vibe permeating through suppliers and retailers that most people are ready to move forward and focus their attention on other matters. “It’s kind of time to forget any Covid excuses,” Sales

Manager Jim Lyons said. “We’re all trying to find our way back to normal business.” And if you are going to reflect, at least, “look back to the past to before Covid at what we were doing then— more running our businesses instead of just trying to fill orders,” he said.

Currently, F.B. Purnell Sausage Co. is dedicated to trends and habits that are propelling the sausage category. “Any of the handheld items, the wraps or the sandwiches, it seems to be one of the fastest growing categories there is,” Lyons said. “It just seems people are back to living their life and are on-the-go and that’s a need.”

Pederson's Natural Farms’ latest addition to its flavor portfolio, pickled sausage, has been met with a robust reaction from consumers, most notably in the southern states. Launched in early March, the Mild Pickled Sausage presents an on-the-go snack that’s both healthy and satiating. “We recently released our pickled sausage and have had a strong response,” said Ben Warren, Retail Marketing Manager. “Pickled sausage is quite popular in the southern US but as a person in Denver, was quite unknown to me. It's pretty delicious and hits a couple marks for us with folks focused on gut health and a clean ingredient snack food.”

When it comes to collectively moving the sausage category forward, one key conversation that needs to happen between Swaggerty’s Sausage Co. and its retail and distribution partners, is in regard to Swaggerty’s Sausage Co.’s dedication to high-quality products. “As we continue to advance our geographic footprint of the Swaggerty's Farm Brand with great success, it truly comes down to the quality of our products that sell themselves,” Skeoch said. “From the point of harvest to finished goods and into the freezer, the total time is less than 90 minutes. We coarse-grind our products to produce a breakfast sausage that is not mushy nor rubbery. Our product texture literally crumbles in your mouth. Combine that with our generations-old recipe which provides a flavor that is, ‘quite possibly the best tasting sausage in America!’”

Amidst tough economic times and

companies and households are faced with whittling their budgets, suppliers say cutting corners when it comes to consistent quality should never be a solution. “Our company focuses on quality,” Lyons said. “It’s a tough time for the consumer, but we can’t lose sight of delivering them quality product that you would want to serve your family. Instead of trying to make something available for a number, make it what it should be. Keep the quality, and do what we can, we all have to be conscious of expenses but don’t cheapen the product so much that it’s unrecognizable. When you get the product home, you want it to be what it’s supposed to be.”

As for Pederson's Natural Farms, it’s crucial for the company and its retailers and distributors to have a dialogue around the current economic climate and how to keep premium products accessible to consumers who are tightening their belts. “Of course, with the current economic situation the conversations focus around keeping costs low and keeping consumers interested in a premium product,” Warren said. “Additionally streamlining shipping to keep that cost down as well.”

Swaggerty’s Sausage Co. has managed to outpace competitors and maintain its strong presence in the category by connecting the flavors and aromas of its products to nostalgic consumers’ fond memories without cutting corners on quality. “The biggest compliment we often get is, ‘This tastes like the sausage I grew up on,’” Skeoch said. “We have maintained our exacting standards and purposely avoid any changes to the quality of our products. We only use primal cuts of pork, never adding any trim or fillers to our products. The consumer inquiry we receive the most is, ‘Where can I find your products?’”

“We have stayed true to our quality and our process hasn’t changed and we haven’t done anything to change the product to cheapen it,” Lyons said. “We have tried to make changes in our processes to be more efficient, but we still use the same meat, and the same spices and we have tried to be as consistent as possible with our quality.”

PG 14 / GROCERY INSIGHT

Category Analysis

Hummus

Whetherit’s used as a dip, an addition to a charcuterie board or part of a veggie sandwich, hummus has been known for its deliciousness and versatility. Leading companies like Garden Fresh Gourmet and Lakeview Farms have been moving the category forward through established consumer loyalty due to its high-quality, natural hummus options.

Garden Fresh Gourmet

“Garden Fresh Gourmet is off to a solid start this year—we are seeing sales meet expectations across our hummus and salsa products in both Garden Fresh Gourmet and Lantana brands,” said JP Patchett, Senior Vice President. “Nationally, it’s no secret that the hummus category has been experiencing declines in unit and dollar sales as well as household penetration.”

Although hummus has become a staple product for most households, Garden Fresh Gourmet noticed a significant drop in younger generations purchasing the delicious dip and spread. The company has plans to continue to trek forward in bringing awareness to the category through authenticity and dedication.

“Over the past five years, we have seen on average a full point decline in the number of households purchasing hummus,” said Patchett. “And we need to do more to bring the younger generation (Gen Y/Gen Z) into the category as they are buying at the lowest rate in years. There are several reasons for this trend including the overall explosion of plant forward options plus the need to drive re-engagement in an established segment.”

The company recognizes that in order for the category to grow and market to new consumers, hummus producers need to remain steadfast in their innovation.

“If we want to bring new consumers into the category, it needs new news,” he continued. “Shoppers are looking for quality products at a value, but they are also looking for products that are new, innovative and fun. Fortunately, we have a range of crave-worthy, plantbased products we can innovate off of.”

“We are engaging consumers in new

ways and continue to share new recipes and ways for shoppers to engage with our products,” said Patchett. “Whether they use it as a dip, a spread, an ingredient in their favorite recipe or as a component on their charcuterie or smear board, we want them to see all of the innovative ways that they can enjoy the products on their own, to feed their families or to dazzle their party guests with the fun, bold flavors we have to offer.”

“Like many manufacturers, we have been hit by unprecedented cost increases across all areas of the supply chain. While we have seen some leveling off lately, many of those input costs remain as historically high levels,” he said. “In order to minimize the impact on the prices the consumer sees, we have implemented several internal cost-saving measures to offset the cost increases. I should note that we did this while also continuing to provide the same high-quality products at a value the consumers are looking for.”

The core values and mission of the company remain at the heart of the company and all it does. Garden Fresh Gourmet has been committed to strengthening its bonds with not only its retail partners but its consumers too.

“First and foremost, the brand has remained focused on the values that it was founded upon. Lantana has always been the ‘other bean hummus’,” he continued. “By utilizing alternate beans and vegetables in our products, we have been able to produce creative, crave-worthy flavors that continue to delight our consumers.”

Jaffa Salads

Authenticity has continued to be at the heart of companies like Jaffa Salads. With products that are all vegan, gluten-free, kosher and non-GMO, the company has been a leader in the hummus and dips categories for 40 years. As a Mediterranean dip, Jaffa Salads has been able to capture those natural flavors of authenticity and package them into a convenient dip that consumers can readily enjoy and love. The company has several flavor options: original, paprika and oil, green and red salsa, garlic and roasted red pepper.

Cedar's

Recently, category leader Cedar’s announced its new hummus flavor, which is now available at retail stores such as Whole Foods. The company launched its Cedar’s Organic Grecian Golden Hour Hummus this year, and according to officials, the hummus is packed with lemon and oregano and topped with herbs and peppers. The company was founded by Abe Hanna, who strived to make hummus traditionally keeping all the natural, Mediterranean flavors at the forefront.

Wild Garden

As demand for convenient, on-the-go snacking options continues to sweep through the grocery industry, companies like Wild Garden have been able to perfect their offerings to consumers with their Snack Box to Go with three flavors: traditional hummus with multiseed crackers, roasted garlic hummus with veggies chips and sun-dried tomato hummus with sea salt pita chips. Alongside these snacking options, Wild Garden launched a hummus dip that comes in jars for convenience and easy resealing.

Steve’s Mediterranean Chef

With humble and family-oriented beginnings starting in Lebanon, hummus leader Steve’s Mediterranean Chef was founded in 1974. The company was founded by Pierre Chammas who wanted to share his family’s origins and recipes that were passed down from generation to generation with the world. Still to this day, the company uses authentic family recipes to create all its products. In 2021, the company announced a brand refresh with new packaging labels. Alongside this, the company was originally available in 40 stores, but expanded its distribution to approximately 250 stores.

“What started as a way to connect with my children, working in a business together, has become bigger and more successful than we could have imagined," said Chammas, according to media reports. "Some of our recipes are centuries old. We are committed to producing the highest quality foods with a high human-touch to create delicious homemade tastes."

PG 16 / GROCERY INSIGHT

Category Analysis

Greeting Cards

The resolution of some supply chain issues—particularly related to freight—is helping greeting cards makers to get ahead of inventory management, ensuring continued fruitful relationships with their retailer and distributor partners. Not having to devote so much energy to juggling logistical issues has allowed for innovation to once again take top priority for manufacturers. Companies note that consumers are drawn to a diverse array of themes and socially relevant messaging, along with visual and tactile embellishments as they seek the best products to convey their heartfelt messages to their intended recipients.

“Due to our acquisition of the largest greeting card distributor, QPS, Designer Greetings has been benefiting remarkably from integration,” said CFO Dawn Garvey. “The greeting cards category has seen trends of woke-ism, female empowerment, patriotism and sentimentality, and our product has adapted accordingly. We’ve been focusing on cards with embellishments, which have also been trending lately. Consumers want the best for their loved ones, so cards with sequins, beads, bows and ribbons are the cards they tend to gravitate toward.”

Hallmark Cards knows it is imperative to evolve to meet the diverse needs of today’s consumers, Amy McAnarney, Vice President and General Manager, Strategic Accounts and Business Development, said earlier this year. “We aim to create cards that get to the heart of what shoppers want to say, while authentically reflecting their lives and relationships. We have been proactively developing new creative strategies to meet the needs of multi-cultural and multi-generational consumers.”

McAnarney continued, “One of the fastest growing segments of the greeting card category continues to be cards that lend themselves to becoming a keepsake, such as Hallmark’s highly designed, premium cards and the three-dimensional pop-up paper craft cards that feature intricate designs and details—Hallmark Paper Wonder and Signature Paper Wonder. Hallmark continues to build on the popularity of these

two card lines by innovating with new materials and formats across the collections. We are demonstrating category and brand leadership in the growing papercraft market by offering a range of impactful, unique and displayable three-dimensional papercraft cards. Each intricately crafted card unfolds, pops and expands to reveal a distinctive surprise. Hallmark’s newest paper craft designs feature motion, sound and light technology and paper honeycomb. Plus, consumers will continue to experience more designs with licensed characters and more laser craft.”

The Greeting Card Association (GCA), leading up to its *Noted: The Greeting Card Expo event at the end of April, has seen a bit of a return to normalcy in this first quarter of 2023, said Endsley Eggert, GCA Marketing Manager. “Trade shows, which are a very important way for our members to increase distribution, are returning to pre-pandemic attendance levels, with our maker members and retailers enthusiastically taking part,” she said. “We are focused on our *Noted: The Greeting Card Expo, which is the largest gathering of greeting card makers in the US, to be held in San Francisco April 27-28. We are looking for record attendance from buyers, including big box chains with grocery like Walmart and Target, as well as specialty and regional grocers including Meijer, Raley’s and Draeger’s. These buyers take advantage of the event to source new greeting card suppliers. In addition to increased tradeshow traffic, we are seeing a significant increase in purchases by smaller retailers through online buying portals. Finally, we are seeing a resolution of most supply chain issues, including freight in particular, which is allowing suppliers and retailers alike to normalize inventory levels and replenishment processes.”

The non-profit trade organization serving the greeting card industry is looking forward to gatherings in Q2 like *Noted to facilitate conversations between its members and retailers of all sizes, Eggert said, “to ensure their product mix suits the needs of their customers, including the more highly embellished, differentiated and higher-priced

cards that Millennials prefer, as well as their balance of everyday cards to seasonal. Seasonal cards provide an important buying queue, in the grocery channel in particular, for not only greeting cards but for seasonal items of all types, from gifts to food,” she said.

Designer Greetings prides itself on top-notch service that is commensurate with its top-quality products, Garvey said. “As such, we would want to ensure that service is meeting the customers’ needs. In addition, we want to meet the needs of our retailers and customers. Given our vast title selection, we provide the right mix of product, and we want to ensure that our customers are taking advantage of our abundant product line,” she said.

One of Designer Greetings’ advantages, said Garvey, is that it is a smaller and more dexterous company. “Given that Designer Greetings is not a large, publicly held company, our versatility and goto market strategy have a shorter time span and reasonable period to quickly make production and marketing changes,” she said. “Unlike the competition, who deal with longer decision-making timeframes and are not taking advantage of current trends, we can quickly adapt to changes and produce quality product in a timely manner.”

Meanwhile, having the history and name recognition of Hallmark Cards allows the company to embark on new ways to reach consumers. “Innovating the shopping experience is key,” McAnarney said. “The acceleration of online shopping has impacted all categories across the retail landscape, and Hallmark knows consumers want and expect a seamless retail experience— whenever they shop and wherever they shop. We are investing in capabilities that go beyond just creating a digital shopping experience—we are partnering with retailers to help consumers more easily connect with each other.”

Hallmark is always innovating, McAnarney continued. “We have invested in powerful, multifaceted creative expertise that shapes our understanding of consumers’ evolving needs, drives innovation, and differentiates Hallmark and our retail partners in the marketplace.”

PG 18 / GROCERY INSIGHT

Category Analysis

Premium Butter

In January, CBS News reported that butter prices in December 2022 jumped 31 percent compared with a year ago. Premium butter makers were not immune to the impact of thinner dairy herds compounded by ongoing supply issues, even as they attempted to keep from passing costs on to consumers. Butter prices have since somewhat stabilized, according to category leaders, who hope to not have to increase prices again this year. Meanwhile, as the greater economic landscape continues to find an equilibrium from the past few years of upheaval, butter makers are touting their product innovations as a means to bring cost savings to both home consumers and the foodservice industry alike.

Epicurean Butter increased their prices twice in 2022, according to Niloy Phukan, Chief Commercial Officer.

“I don’t think we have to change prices in 2023; I think the price of butter has stabilized,” he said. “We saw a slowdown in velocity with the increased prices. Everyone is seeing that across categories, especially premium categories. You’re starting to see the private label store brands really doing better as people are watching their budget and making those price decisions at the shelf. On the supply side, we definitely looked at all of our inputs, but butter is our biggest one. The fact that butter has stabilized, we’ve been OK. It’s a weird environment where cost pressures for everyone is going up in different ways.”

The company is coming off of three tradeshow appearances in the first quarter of 2023 in its effort to bring to light all the innovative uses for its flavored butter portfolio.

“The IFMA COEX is mostly foodservice—think restaurants—but we’re seeing restaurants have those labor shortages,” Phukan said. “Maybe they don’t need to make premium butter in their back of house. They can just buy some from somebody like us. Expo West was great to see all of the excitement back around the industry. We got a ton of leads. Retailers are starting to see and understand the importance of premium butter to their set as they’re starting to

see it grow and take hold with consumers. The Boston Seafood Expo was great because our product works great with fish, and so we’re starting to see the value-added seafood. Think of oven ready trays with seafood and butter and skin packs where the seafood has the butter on top in a tight pack. Those are two ways we’re helping solve the value-added piece for seafood.”

The effort to put Epicurean Butter in front of these show participants trickles down to what consumers will see at their local grocery stores.

“All these companies are then turning around and selling these value-added items to retailers,” Phukan said. “From the meat and seafood to the deli and the grab-and-go, convenience is that big trend where you see all these meal kits where people are ordering them to their house, now they’re getting them at the grocery stores as well because its less packaging. It’s the same convenience you’re getting from meal kits during the pandemic, but you can now get it at the grocery store. Convenience is such a big trend and people are looking for ways to spend less time in the kitchen. This is a way with these value-added produce kits and seafood kits and meal kits and premium butter—flavored butter—just helps make that a little bit better. Makes it a lot more delicious.”

Meanwhile, Epicurean Butter is still pushing for more space in refrigerated shelves for premium butter.

“For the dairy category, we’re still fighting that uphill battle of how do we get more space for premium butter,” Phukan said. “When you’re looking at the dairy category you have your sticks and your spreads and people are always going to buy those.”

“Consumers are willing to pay a little bit more for a premium butter. Whether it’s premium because of the percentage of butter fat, whether it’s premium because it’s flavored or plant-based, our products hit both of those—it’s flavored and it’s 82 percent butter fat. We’re trying to get consumers to treat that special meal on a date night or do something a little special for their family versus just using the standard butter.”

Household penetration of flavored butter is very low, Phukan said.

“For us, it’s introducing something to a consumer where we like to say we can help you make these amazing restaurant quality meals without having to do anything. You have a piece of chicken, you put some butter on it and all of a sudden it tastes like you’re at a restaurant. We’re trying to help that home chef elevate their food at home, bring that restaurant-quality meal at home without any effort. It’s an easy fix in the kitchen. We like to call it a kitchen hack.”

The premium butter category has seen a growth in competitors in recent years. In 2020, Nellie’s Free Range Eggs entered the category with its Free Range Butter product that boasts an 84 percent butter fat made from cream from grass-fed cows.

"Whether it be eggs, or any other product found in the grocery store, we remain committed to both the humane treatment of animals and supporting small family farms," said Jesse Laflamme, CEO of Nellie's Free Range Eggs. "Not only will consumers love the taste of our new products, but they can also feel confident that our farmers maintain a stringent standard of practices to ensure the animals and those who care for them are treated humanely and with respect."

Organic Valley also boasts its butter offerings exceed the butterfat minimum for US production of 80 percent, containing 84 percent butterfat in its salted and unsalted butters, according to its company blog. In 2021, the company’s butter artisans won first place at both the Wisconsin State Fair and the World Dairy Expo.

Phukan said in spite of the increasingly crowded category, Epicurean Butter can still hold its own.

“When you try Epicurean Butter or one of our competitors, really let the flavor decide which one you think is the best. We might be a bit more than some of our competitors, but we think that there’s a value there because of the quality and the consistency that you’re just not going to get from other brands.”

PG 20 / GROCERY INSIGHT

Consumers can sauté, cook, bake, & finish with Epicurean Butter

Drives Incremental Category Growth

WWW.EPICUREANBUTTER.COM

Category Analysis

Pierogies

Just as consumers are negotiating their desire for convenience when it comes to feeding their families with their increasingly tight budgets, so do makers of tasty, pillowy pockets of goodness known as pierogies have to navigate the tricky road of balancing supply costs with keeping prices manageable for their end consumers. Category leaders continue to offer pierogies as an easy meal solution for a busy home all the while exploring ways to expand flavor profiles to encourage trial.

“With one of our key ingredients being eggs, you can imagine the impact inflation has had on our brand,” said Ateeco/Mrs. T’s Pierogies Brand Manager Alyssa Panzarella. “We do our best to control costs at all levels to reduce any impacts passed on to our consumers at shelf.”

Mrs. T’s has its finger on the pulse of what is currently impacting consumers’ decision making. “As consumers and the industry get acquainted with post-pandemic life, our team at Mrs. T’s Pierogies is tapping into our resources to understand how consumer behaviors and needs may have changed,” she said. “Like many others, we are monitoring consumer sensitivity around price and what that means for the brand. Overall, we continue to be a family favorite and are exploring new ways to bring exciting opportunities to expand the category with new products and flavors to drive trial and usage.”

Toronto, ON-based Pelmen Foods, which has been making premium pierogies for Canadian consumers for more than 25 years, does routinely embark on its ‘Pelmen Perogy Road Show’ program at Canadian Costcos to help drive trial as well. The company’s website shares, “We get that life can be hectic, leaving little time to make healthy, nutritious and delicious meals. Which is why we created a large assortment of perogies filled with all-natural ingredients that require minimal prep time and a big appetite.”

Supreme Pierogies, also based in Ontario, similarly touts its humble Eastern European origins as an appeal to those seeking family recipes that remind them of home. “We’ve come a long way

since starting in the basement of a small house in Mississauga, Ontario in 1991,” states the company website. “Joseph Wilk, founder and owner of Supreme Pierogies has developed a unique approach to mass-producing pierogies while maintaining the original roots of traditional Eastern European taste.”

As a means to showcase its appeal for modern families, Mrs. T’s Pierogies in March embarked on a novel partnership with actress, entrepreneur and mom JoAnna Garcia Swisher to spotlight the importance of me-time for mothers and help them find ways to recharge through the Mrs. T’s All-Star Moms program. Mrs. T’s and Swisher shared design tips, cash prizes for moms to create or upgrade a ‘recharging room’ in their home and an easy-to-make pierogi recipe. One grand prize winner also received $20,000, a year’s supply of Mrs. T’s Pierogies and a personalized design by Swisher for their ‘recharging room.’

“At Mrs. T's Pierogies, we pride ourselves in spreading smiles across America with our delicious and easy-to-prepare pierogies," said LeeAnn Smulligan, Director of Marketing, Mrs. T's Pierogies. "By helping moms everywhere relax after a long day with their favorite food in a beautiful space made just for them, we hope to spread the same joy they give to their own families every single day."

This partnership is an illustration of Mrs. T’s goal of comprehensive integration at all levels. “Understanding retailers’ tops goals and audiences and how they integrate with our own will help our teams build mutually beneficial plans,” Panzarella said. “This also includes consumer insights and marketing integration. As we enter into a ‘cookies-less’ world [used to track website usage], brands may need to rely more on retail partners and other first party data sources to help them to better target their consumer messaging.”

Smulligan last fall also alluded to a need to better heed how technology is impacting buying behavior. “One area the pierogy category needs to continue to pay attention to is media, particularly digital media and how that has been evolving to reach consumers,” she said.

“Platforms and targeting capabilities advance on almost a daily basis, from shoppable features to verified purchase targeting. While we have more knowledge than ever before of who our consumers are, where they spend their time and how to reach them, we need to authentically connect with them through our messaging to build pierogi advocates.”

Further, Smulligan said, “Online and in-app shopping has continued to increase for our consumers. Whether this means click to cart through an influencer post or their favorite retailer website, we are continuing to explore and optimize opportunities that put Mrs. T’s Pierogies in those digital carts. Options to close e-commerce gaps for frozen products continue to evolve in exceptional ways.”

Mrs. T’s Pierogies benefits from the relationships and reputation it has built in the last 70 years, said Panzarella. “Whether with retailers, suppliers or consumers, we pride ourselves on being a trusted brand and partner,” she said. “We understand that we fill a need in our consumers’ lives and work tirelessly to meet their expectations. Through continued investment in marketing and public relations, we strive to be top of mind with our consumers while connecting with them, providing them valuable content and inviting them to be Mrs. T’s Pierogies’ advocates.”

Because even now, there are consumers who aren’t familiar with pierogies, especially as the demographics of the country continue to evolve. “You would be surprised at how many people still do not know what pierogies are, even in what we would consider the ‘Pierogy Pocket,’” said Smulligan. “At Mrs. T’s, we see this as an exciting opportunity to introduce pierogies to new consumers and create future growth for the overall category. As a leader in the category, Mrs. T’s has the opportunity to shape the future through innovation. We know consumers need quick, easy and convenient mealtime solutions for their whole family. This brings exciting opportunities to expand the category with new products and flavors to drive trial and usage.”

PG 22 / GROCERY INSIGHT

COMFORT FOOD FOR TASTY PROFITS

Mrs. T’s Pierogies is helping drive consumers down the frozen food aisle! Get ready for sales and profits with this ultimate comfort food classic. Stuffed with the stuff they love, plus the profitability you love.

mrstspierogies.com

©2023 ateeco, inc.

From savory to sweet to layered & Spicy, and even, seaworthy.

Lakeview Farms has dips for every occasion and every consumer. Lakeview Farms crafts fresh refrigerated dips, spreads, hummus and salsa designed to delight the most discerning taste buds while providing exceptional value. Not to mention consistent performance for those who stock them. Discover what partnering with Lakeview Farms can do for you at LakeviewFarms.com or contact your Lakeview Farms representative.

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