March 2025 Grocery Insight

Grocery Insight March 2025

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• Special Report: Impulse Merchandising 2 • Category Analysis: Healthy Snacking 4 • Category Analysis: Frozen Fruit 6 • Category Analysis: Seasonal Merchandising 8 • Category Analysis: Pork 10 • Q&A Interview: Tony Frankenberger, CEO, McLane Co. 12

Special Report

Impulse Merchandising

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mpulse purchases continue to be a major driver for brick-and-mortar retailers. As in-store shopping continues to compete with online retailers, impulse merchandising has given retailers a competitive edge over online purchases. Manufacturers and their retail partners can collaborate to make sure that in-store sales are driven by impulse buys, paying particular attention to product displays and seasonal offerings.

“Confectionery is inherently an impulse-driven category, with few consumers planning to purchase candy as part of their regular shopping. By collaborating with our retail partners, we can establish innovative points-of-purchase that effectively disrupt the conventional shopping experience,” said Haley Peyron, Marketing Manager at Candy Dynamics.

Peyron continued, “Over the past year, we have consistently focused on expanding the presence of Toxic Waste in grocery stores through our strategic grocery initiative. A key component of this initiative is the creation of shipper displays for many of our new products, achieving two objectives: driving impulse purchases and promoting new items at retail. Furthermore, retailers that allocate dedicated space for an extensive candy aisle tend to experience the greatest success. For instance, Hy-Vee has developed a ‘store within a store’ concept with its distinctive candy aisle, which has become a shopper destination, resulting in higher sellthrough rates.”

YumEarth previously mentioned the company’s focus on seasonal offerings and its partnerships with retailers.

“Looking ahead, we will expand our portfolio with exciting new products,” said CEO Steve Van Tassel of YumEarth.

“One of them is our new Sour Littles, a tangy treat that reimagines a beloved sour gummy candy loved by all generations. YumEarth excels when it comes to our seasonal offerings with strong performance at key retailers like Target and we are looking forward to continuing significant growth at other locations like Sprouts, Whole Foods and online platforms like Thrive Market and Am-

azon. By leading the charge, YumEarth is helping the candy industry evolve toward greater inclusivity, ensuring allergy-conscious consumers have access to indulgent, safe treats year-round. Furthermore, YumEarth is continuing to drive growth by expanding its current

and opt for those quick and easy, low-calorie snacks such as meats and cheeses, fruits, nuts and more. “Several trends have continued to percolate to the surface in recent years, elevated by dramatic economic and demographic shifts,” said Eric Sim, Brand Manager for

portfolio, filled with fruit snacks and sour gummies, within new and existing retailers. International expansion is also on the horizon, with market launches planned in Asia and Latin America.”

Candy Dynamics mentioned how the company uses visual merchandising techniques to encourage consumers to reach for their products. “We offer a variety of distinctive shipper displays featuring elements of the Toxic Waste brand, designed to capture shoppers' attention when placed in store aisles,” said Peyron. “Additionally, we have secured increased distribution points by positioning our products at the frontend. We anticipate significant growth for the Toxic Waste brand in grocery stores in 2025 and look forward to exploring further opportunities.”

“The Toxic Waste brand embraces the National Confectioners Association's motto, "Always a Treat." We view candy as an occasional indulgence rather than a daily consumption item. We also recognize the positive emotional impact that candy can have on mental well-being. A sweet (or sour) treat offers an accessible way to momentarily escape the stresses and challenges of daily life, promoting a more positive mindset. With a strong emphasis on affordability, Toxic Waste products are designed to disrupt your routine, not your budget,” Peyron added.

While snacking purchases can lean into impulse buying, consumers are also trying to remain health conscious

Old Wisconsin, a brand under The Carl Buddig and Company. “Consumers have become even more intentional in their purchases, seeking added value to their health and well-being, demanding added convenience and monitoring their impact on other people and the planet.

Given the ever-changing nature of modern lifestyles, people try to find a balance between work, rest and personal obligations."

Just Born Candy, parent company to brands such as PEEPS and Mike and Ike, was founded in 1923 by Sam Born in Brooklyn, NY. The company has been known for becoming one of the largest candy companies in the US while remaining family owned and operated.

The company has a strong reputation for offering consumer sweet treats that lend themselves to the seasons and holidays such as PEEPS’ recent efforts to start the Easter season off with a popup brunch to showcase the company’s latest Easter products. PEEPS partnered with Serendipity3, a well-known restaurant in New York. Attendees will be offered a menu that features PEEPS Cotton Candy Flavored Marshmallow Chicks, giving people a taste of what they can expect to see in-stores this holiday season.

Impulse merchandising has the potential to drive growth to brick-andmortar retailers as consumers indulge in cravings and spur of the moment shopping trips or aisle grabs.

“Grocery has placed an increased emphasis on confection, whether at the checkout or in the aisle. We expect this to continue into the coming year. We find our grocery retail partners are attempting to emulate the specialty retailers in their candy aisles to make it a destination for kids.”

— Haley Peyron, Marketing Manager at Candy Dynamics

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Category Analysis Healthy Snacking

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ot too long ago, nutritionists warned that chips, dips and candy should be consumed sparingly as they weren’t ‘healthy’ for you. As society has evolved in the last few decades and put a magnifying glass on the importance of putting wholesome and minimally processed foods into our bodies, snack manufacturers have picked up the mantle of bringing a slew of healthier versions of beloved snacks to consumers that fit their modern lifestyles.

In the realm of minimally processed snack options, Sun-Maid has a long history of delivering the goods. “Sun-Maid is uniquely positioned in this space as consumers increasingly seek simple, wholesome foods—a category we’ve proudly led for more than 100 years,” said Steve Loftus, Sun-Maid Growers of California President and CEO. “The principles of ‘minimally processed’ and non-GMO have been at the heart of our business since day one. Raisins are a simple, whole-fruit snack with no added sugar—just grapes and sunshine!"

WILDE Protein Chips reflect what its name suggests; these potato-like chips are made with protein dense ingredients like chicken breast and egg whites.

At last year’s Sweets and Snacks Expo, the company showcased its new Spicy Queso flavor. “Protein, flavor and real premium ingredients are all top-ofmind for consumers—WILDE delivers against all three at once,” said Mike Senn, President of WILDE Chips. “We’re the only craveable salty snack delivering protein from simple, nutrient-dense ingredients like chicken breast, egg whites and bone broth. Knowing that we have created something that meets key consumer and retailer needs—and that they love so much—is why we’re so excited to do what we do.”

It is this level of innovation that is now needed to keep the healthy snacking category fresh and exciting, said Sam Kestenbaum, CEO of 7 Mile Brands, who last year introduced its PRETZELIZED line of pretzel/pita chip hybrid snacks.

“Unfortunately, the category leaders’ innovation has not worked well, has not been sticky, and the snacking category in deli has turned a bit sleepy,” he said.

“We’re not just providing a flavor inno-

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vation; we’re actually shaking it up at its core. Pita chips are 3,000 years old, and I’d argue they haven’t been changed much in 3,000 years. Pretzel crisps, which was one of the most innovative snacks I’ve ever seen, is 20 years old, and really their innovation under that brand hasn’t been too sticky. The consumers haven’t accepted it well. What we’re doing is we’re changing the format at its core through what I call transformational innovation. We are taking a product and completely changing how you’d identify with it. Is it a pretzel? Is it a pita chip? The answer is yes, it’s two favorite snacks in one.”

From its solid foundation of grapes and sunshine, Sun-Maid continues to broaden consumers’ concepts of where dried fruit can go. “As we expand our dried fruit portfolio, we remain committed to limiting added sugars where it makes sense while offering snack solutions that cater to everyone. Consumers consistently appreciate this balance. Dried fruit has long been known as ‘nature’s candy,’ and as demand for better-for-you options grows, we’re proud to provide nutritious choices for every generation. It’s not easy reinventing the dried fruit category, so any innovation that we bring is funneled through very stringent and exacting filters because it’s naturally a ‘simple’ category that serves a very sophisticated and diverse consumer. So, we believe that the elegance of what we bring to the table is always elevating what we do well. Beyond innovation, we continuously reevaluate our existing products to enhance their nutritional value. For our latest yogurt-covered raisin varieties—Strawberry Vanilla Coated Raisins and Blueberry Vanilla Yogurt Covered Raisins—we ensured they contain no synthetic flavors or colors, reinforcing our commitment to clean, simple ingredients,” Loftus said.

Sun-Maid prioritizes supporting consumers as they increasingly seek information to guide their purchase decisions, driven by the ongoing demand for better-for-you options, he said.

“When it comes to snacking, they want transparency—understanding where their food comes from, the integrity of

ingredients, how it’s processed and its nutritional benefits, whether through the presence of positives or the absence of negatives,” Loftus said. “At the same time, taste remains a top priority. Our goal is to deliver snack solutions that seamlessly balance these needs, at the product level and across our portfolio.”

In the subset of healthy snacking to be found in a grocer’s deli section, ¡Yo Quiero!’s continues to be stewards of ensuring not just fresh ingredients but also nutrient-dense and tasty flavor options. “For 2025 ¡Yo Quiero!’s focus will be on Grab and Go Snacking,” said Tara Murray, VP of Marketing for Fresh Innovations, parent company of the ¡Yo Quiero! brand. “¡Yo Quiero!’s Grab and Go strategy was developed based on current consumer trends and the RTE market. People are spending less time preparing and sitting down to big meals, and spending more time on the go traveling to and from work, games, kid events, etc. We wanted to meet our consumers where they are with our delicious dips. ¡Yo Quiero! will have 10 products in the Grab and Go line; the OG, our Original Guacamole, Chunky Guacamole, Hatch Chile Guacamole, Red Salsa, Corn Salsa, Avocado Salsa Verde, Bean dip, Black Bean dip, Creamy Jalapeno and Smokehouse Onion.”

Even the National Confectioners Association notes candy makers are striving to meet consumers where they are in terms of dietary preferences. “Innovation is at the heart of the confectionery industry, and manufacturers are meeting consumers where they want to be met with a variety of options to help meet the moment no matter the occasion,” said spokesperson Carly Schildhaus. “Consumers understand that chocolate and candy are treats. People in the US enjoy chocolate and candy 2-3 times per week, averaging just 40 calories and about one teaspoon of added sugar per day.”

The term ‘healthy’ can mean different things to different consumers. Whether they are looking for no additives or preservatives or something that is nutrient-dense, there are a variety of healthy snacking options for any number of dietary needs and preferences.

When we say timeless & trusted, we’re serious.

Setting the Snacking Standard since 1912 Sun-Maid Raisins and Yogurt Covered Raisins—a snack you can trust. *All raisins have 0g added sugars. Raisins are not a low calorie food. See nutrition information for sugar and calorie content.

Category Analysis Frozen Fruit

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s suppliers have continued to educate shoppers surrounding the frozen fruit category, consumers are realizing the values and benefits of incorporating frozen fruits to their diets stretches beyond simply convenience.

Frozen fruit provides individuals with peak freshness as the fruit is flash-frozen at its ripest moments. In some cases, frozen fruit might even provide more nutritional value. According to market research, the frozen fruit market is expected to grow by 6.45 percent with the US leading the market all the way through 2030—based on reports from Maximize Market Research. The category is growing due to consumers’ attempts to add healthier food options into their diets, as well as convenience, something companies in the category continue to highlight and outline as part of the key benefits of frozen fruit.

“At Seal the Seasons the outlook for 2025 is incredibly strong,” said Patrick Mateer, CEO of Seal the Seasons. “We expect geopolitical and economic uncertainty to ease in the coming months and inflation expectations to remain low to medium. We see strong consumer demand for local frozen fruit as our brand’s unit growth continues to outpace the category. We launched a very successful new innovation late in 2024 so our focus is on increasing distribution on this recent success rather than developing new items.”

“Seal the Seasons is expanding our capacity for launching innovation under owned brands by strengthening our strategic partnerships. We will share these strategic partnership announcements with owned brand managers at major chains in Q2 of this year,” continued Mateer.

Wawona Frozen Foods, a leader in frozen fruit, claims that the category has shifted due to consumers gravitating toward quality, sustainability and convenience. At the center of this shift is IQF technology that ensures products remain high-quality, frozen with peak freshness and flavor. Wawona Frozen Foods has been a leader in reducing food waste through providing various options and solutions that help consumers use and consume only what

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they need such as versatile on-the-go options. In addition, the company has been a big player in the foodservice market, particularly with schools, providing the sector with kid-friendly food alternatives that require little prep time and produce little waste.

teer mentioned.

“It’s misunderstood that shoppers think a frozen blueberry is a frozen blueberry. From our experience, our shoppers are obsessed with the quality of the frozen produce they receive in the bag. This is well understood in the fresh

Wawona Frozen Foods offers premium frozen fruit selections that are ready to use, whether customers want to combine the fruit into smoothies, add it to baked goods or use it in sauces and dressings. According to the company, IQF fruit is a great option for both individual servings and large-scale production since it enables portion control.

Frozen fruit leader Campoverde produced pre-proportioned frozen fruit and vegetable blends for easy and convenient smoothies. The frozen fruit bags come in various ounces with a variety of vegetables and fruit such as spinach, mango, pineapple and apples.

According to the company, the fruit and vegetables are sourced straight from the fields and given a proper cleaning to ensure the highest quality of nutrition and food.

Seal the Seasons had an exceptional start to 2025, paving the way for the company to keep on an uphill trajectory for the rest of the year due to its unique and clean ingredients.

“Seal the Seasons' branded smoothie items generated the highest dollar velocities this January smoothie season of any frozen smoothie brand as categorized by SPINS. Our Blue Spirulina Tropical Blend and Acai Antioxidant led in dollar velocities. Consumer trends for new smoothie flavors like Blue Spirulina are the best ways retailers can capitalize on incremental revenue to grow their frozen fruit category,” Ma-

produce section. Consumers inspect and pick the best produce to put in their cart. Seal the Seasons is showing via our velocity data and written consumer feedback that quality is a key purchase driver in frozen as well,” explained Mateer.

Consumers have maintained their shopping habits—continuing to reach for products that are organically and sustainably grown.

“We’re getting feedback that combining locally grown claims with the USDA organic certification claim creates the strongest selling combination of claims for consumers. Local + organic is substantially outselling items that are just local or are just organic. We’re happy to launch a new local organic item next month: Michigan Organic Blueberries!” said Mateer.

When it comes to adding nutritional value to your daily diet, it’s not always convenient. Meal prepping has become a well-known way to help with time management and busy schedules, but even so, it’s not always an option. Companies in the frozen fruit category recognize the need for quick and simple solutions that can be added into a daily routine easily. Frozen fruit that is pre-proportioned and can easily be blended into a smoothie for breakfast or popped into some yogurt for an on-the-go snack has been leading the increase in popularity to the frozen fruit market.

“It’s misunderstood that shoppers think a frozen blueberry is a frozen blueberry. From our experience, our shoppers are obsessed with the quality of the frozen produce they receive in the bag.

This is well understood in the fresh produce section. Consumers inspect and pick the best produce to put in their cart. Seal the Seasons is showing via our velocity data and written consumer feedback that quality is a key purchase driver in frozen as well.”

— Patrick Mateer, CEO, Seal the Seasons

Category Analysis Seasonal Merchandising

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s grocery stores usher in each change of seasons with eye-catching and enticing displays, it presents opportunities for manufacturers to reframe their products for consumers in ways they may not have considered.

Seasonal marketing initiatives are conceived of with ample lead time to ensure the many moving parts including inventory levels and agreed-upon messaging line up for all parties involved.

The partnerships with grocery partners are vitally important to both kick off and sustain successful seasonal merchandising campaigns.

“At NatureSweet, we view our retail partnerships as integral to both the development and execution of our seasonal merchandising plans,” said Sr. Corporate External Communications Manager Jenny Halpin. “Retailers recognize that we offer a premium, high-quality product, and that understanding allows us to collaborate on unique, engaging programs that spotlight our tomatoes in exciting ways. For instance, last fall, Kroger invited us to participate in their Hatch Chile event, where we paired our cherry tomatoes with their Hatch peppers to create a delicious hatch pico de gallo. We supported the promotion with eye-catching in-store signage and displays, which helped drive a significant increase in sales for our Glorys cherry tomatoes at Kroger. Another highlight is our Dia de Muertos-themed 10-oz cherry tomatoes, which pay tribute to the vibrant Latin American holiday.

This limited-edition product features festive packaging that retailers find appealing, helping to create a celebratory atmosphere on shelves. Its popularity continues to grow, and every year, we’re excited to see more retailers embracing this product as part of their seasonal offerings. Through these collaborations, we’re able to not only boost visibility but also drive sales and enhance the overall shopping experience for consumers.”

Through the Lenten season, Blount Fine Foods’ soup program helps grocery partners cater to a wide variety of dietary observances that runs from Fat Tuesday through Easter Sunday, especially as consumers continue to juggle

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busy lifestyles and a need for convenience and affordability with a desire for a healthy and hearty meal. “Hot togo soup is literally hot,” said Bob Sewall, Chief Customer Officer / EVP Sales and Marketing. “With 25 percent of restaurant customers coming to the supermarket delis, one thing they crave is hot soup! Our customers who are marketing an 8-oz cup of hot soup with a deli sandwich or salad are selling more of everything. Also, 75 percent of shoppers buy their groceries where they buy their hot food. Many of our cup customers are in the process of adding hot to-go soup to their stores for this reason. Meanwhile, our customers are selling more 32-oz size soups to a record number of firsttime customers. These customers’ basket sizes most of the time are double because they are buying items to create a meal around the soup.”

Across all seasons, consumers are also looking for value. “We have also introduced a line of 10-oz soups and mac and cheese as an economy buster,” he said. “These four products are stocked in our customers' sandwich and salad sets. These products can retail every day at $3.99 with a 50 percent margin. They are ideal for meal deals you see in restaurants such as a buy a soup and sandwich or salad deal for under $9.99!”

Understanding that the economy continues to challenge many consumers’ spending power, Blount has also been pursuing efficiencies, but not at the cost of quality. “Because of our commitment to quality the cost savings have to come from production efficiencies and not at the cost of reducing the quality of ingredients,” said Sewall. “Since Covid, as a company, we have worked with our suppliers to keep quality top of mind so that we can continue to produce the best soup in the world. This in turn increases our sales and thus purchases from our suppliers. It is a win-win.

Packaging is another area that we are constantly looking to improve on and at the same time reduce plastic and corrugation. Reducing our carbon footprint is always a goal.”

According to Dale Thomas, President of Imaginings 3, Inc. dba Flix Candy, con-

sumer appreciation for seasonal treats is evident in strong sales, especially in recent years. "We've seen an increase in seasonal sales volumes over the past five years," he previously told Grocery Insight. "Since Covid, growth has been steady, encompassing not only major retailers but also regional ones who are expanding their seasonal offerings."

Now that the world has returned to its pre-Covid pace, the time spent together during the pandemic has left a lasting impact, which continues to drive strong seasonal confectionery sales.

"The time we spent celebrating together didn't fade," Thomas noted. "We've integrated these celebrations into our routines, and this trend has persisted beyond Covid, keeping seasonal sales robust."

That doesn’t necessarily mean manufacturers and suppliers are taking seasonal categories for granted. Thomas highlights that innovation in seasonal candy can range from packaging and ingredients to product design. The aim is to capture a shopper's attention while they're out and about purchasing staple items like candy canes for Christmas. "You want to catch their eye and entice them to try something new," he said. "While they might buy their staple items, the goal is to spark their interest in new products through innovation and brand loyalty."

NatureSweet has several seasonal merchandising projects in store for the year likely to grab that kind of attention.

“We're excited about our year two support of the Little League World Series, continuing our commitment to youth sports and healthy snacking,” said Castillo. “Additionally, we’re thrilled to launch our Eat Your Sweets media campaign, bringing fresh, flavorful inspiration to consumers everywhere.”

The opportunity to market products under a new lens of seasonal merchandising gives manufacturers opportunities to not only tout their products, but also their values and mission. The most successful campaigns require strong partnerships with grocery retailers to ensure every facet of the strategies are fully and properly executed.

24 OZ

GRAB & GO CUPS

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OF OUR BEST FAMILY RECIPES

The best ingredients don’t fit in a can.

At Blount, we kettle cook our heartwarming family-inspired soups, and then quick cool them fresh for the deli. We bring these recipes to you, from our family kitchen to yours, to ensure you’re getting the best possible product in its finest state; Refrigerated!

It’s not canned. It’s not frozen. IT’S THE UNCANNY SOUP.

FOR MORE INFORMATION CONTACT marketing@blountfinefoods.com or visit blountfinefoods.com

Category Analysis Pork

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s the avian flu continues to wreak havoc on egg supply across the grocery and food service sectors and cast doubt on the safety of assorted agricultural protein products, premium pork producers are seizing the moment to reassure consumers not only of the safety of consuming pork products but also why pork should be a part of a well-rounded diet.

“2025 is off to a strong start,” said Diana Souder, Senior Director of Communications for Niman Ranch. “We continue to see an increase in consumer demand for protein; more than half of US consumers are seeking to increase their protein intake. We anticipate this trend to continue, which underscores our ongoing strategy for innovation and growth.”

Niman Ranch remains a sustainability leader, working with and advocating for family farms and being solid partners of small farms and ranches who prioritize animal welfare. “We continue to see a rise in the importance of better-for-you claims, such as animals raised humanely with no crates or antibiotics ever,” said Souder. “About two-thirds of consumers weigh animal welfare into their decisions around meat purchasing. Our farmers’ and ranchers’ passion for their craft, dedication to their animals and respect for the land can truly be tasted in our finished product. Niman Ranch has a long history of leadership in producing natural, sustainable and humanely raised meats, and have recently been a main voice in advocating for California’s Proposition 12, which requires farmers to provide more space for egg-laying hens, breeding pigs and calves raised for veal. Increasingly, consumers—particularly younger generations and premium meat shoppers—want their food choices to align with their values and support independent family farmers.”

As consumers weigh how they want to build their healthy eating regimens, Pederson’s Natural Farms is making sure they know what is not in its pork products, including bacon. “Healthy proteins have moved to the front of people’s minds,” said Marketing Manager Ben Warren. “We will never appeal to the vegan and vegetarians of the world, but if you want to know what

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you are putting in your body and have a high protein diet without sacrificing flavor, then we are the bacon for you.

We are leading the way with no sugar and organic products, which helps our customers feel comfortable with their purchase.”

Like Niman Ranch, Pederson’s production is rooted in sustainability principles that tend to appeal to a more conscientious consumer. “For Pederson's sustainability is our whole approach,” he said. “We want to make sure that our products are sustainable for our consumers and vendors by building a partnership so that our products will be on shelf and check the boxes of claims and ingredients that both are looking for. Sustainable for our employees by creating a great place to work and the possibility for career growth. Sustainability for the planet by our farming and raising practices.”

Pederson’s is also ensuring sustainability in its processing. “Sustainability has become a major part of the natural bacon world,” he said. “If we want to live in that natural space it becomes an important part of the beliefs of our customers and partners. Throughout the last five years we have reduced our water usage by 40 percent and have recycled more than 1 million pounds of cardboard. We recycle the fat from our smokers and ovens and convert it to biofuels. We continue to try to refine our power usage and shipping materials to be leaders in that category.”

The ‘S’ word has become such a market driver that the National Pork Board (NPB), a research and promotion program operated under the USDA, began working with pig farmers in 2008 to establish the We Care commitment that encompassed six ethical principles including animal care and well-being.

Then in 2022, the Board established the Pork Cares Farm Impact Report program, allowing pig farms to contribute third-party verified data to the We Care dashboard.

In its 2025 We Care Sustainability Report, NPB CEO Bill Even shared, “While the path to sustainability varies by farm, our unified goal remains clear: to continue our progress to make pork a more sustainable protein.”

There are many variations of where pork can go as a consumable protein, and Niman Ranch’s insights help grocery partners assemble attention-grabbing offerings to consumers looking for assorted options, including those that are easy to prepare and convenient to consume. “We use our retail sales trend data, customer feedback and industry reports to inform our innovation planning,” Souder said. “We are seeing strong demand for convenient pork meal solutions. For instance, our seasoned ground pork and sausage product line is growing rapidly; we currently offer classic, chorizo, sweet Italian and breakfast ground sausages varieties and are looking at additional innovations. Our pre-seasoned pork chops are a favorite as well—all the consumer needs to do is cook them up in a frying pan or the oven for a restaurant-worthy at-home meal.”

While the NPB also has lofty goals for promoting pork production in a more transparent light, even Even stated the pace of achieving its goals will vary.

Souder with Niman Ranch offers a reminder in the meantime: “Not all pork is created equal. Humane raising practices where pigs have fresh air and sunlight, space and low stress environments truly do create a better-tasting meat.

All Niman Ranch animals are Certified Humane, raised outdoors or in deeply bedded pens with no antibiotics, and are only fed a high-quality, 100 percent vegetarian diet. Our raising protocols were developed with the help of animal welfare expert Dr. Temple Grandin and are among the strictest in the industry.

At Niman Ranch, we are committed to transparency and helping our customers and consumers understand the authentic difference we offer.”

Coming around to more education around building a balanced and healthy diet, consumers want to increase their protein intake. Premium pork producers are consequently ensuring they are able to fill that need for increasingly conscientious consumers who value transparency in production, assurances in food safety and a great tasting protein.

IN CONVERSATION At this point in your career, what are your professional goals, and what opportunities are there in the industry to help you achieve them?

Tony Frankenberger, President and CEO, McLane Company

Tell us how your career path led you to joining McLane Company (McLane).

I left the Air Force and was trying to re-enter the civilian world at a time when the economy and the market weren’t great, so jobs were tough to come by. I learned about a warehouse operation in Southern California and was fortunate enough to be offered a position. That marked the beginning of a 40-year career. My first job with the company was as a washer-fueler. I fueled the trucks and washed them when they came off the road so they could be ready for their next dispatch. Since then, it’s been an amazing career with an amazing company. I give all the credit to McLane and its culture. It’s an environment where there is a career path at every corner if you have the tenacity to learn new things and are willing to put yourself out there. Combine that with the company’s culture, where we truly focus on creating an environment for prosperity and growth, and people like me can do uncommon things.

Professionally, what makes the distribution segment a good fit for you? What do you enjoy the most about working in distribution?

If you look at the breadth of our industry and all the paths you can go down, it’s impressive. Whether it’s logistics, transportation, operations, merchandising or procurement, it’s very broad and never boring. That’s what has kept me in the industry and with the company for 40 years. In that time, I’ve had 11 jobs spanning all different areas, different skill sets and different opportunities for learning and growth.

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and drive the business forward. Simply maintaining the status quo is a shortterm approach, while actively driving the business allows us to shape our own future and create our own destiny.

I’m truly blessed to have the opportunity to manage a company that I’ve grown to love over four decades. McLane is a 131-year-old company, so my aspiration is to ensure it has the foundation and capability to thrive another 131 years. When it comes time for me to pass the baton, I want to ensure it’s in a better place than it was when I took it—and it was in a pretty good place when I was handed the baton. My aspiration is to ensure we have a foundation for many, many more years of success for the organization, for our teammates, and for our customers.

How has the distribution side of the grocery industry evolved within the last five years?

How would you describe your leadership style? How are you mentoring your team members to develop their leadership skills?

pecially after experiencing shortages of essential items like toilet paper. This heightened awareness has led to increased demand for supply chain visibility and a strong emphasis on supply surety. Customers and suppliers alike are focused on ensuring that the supply chain is stable, capable, and resilient enough to withstand challenges such as natural disasters and pandemics.

If you look at supply chain pre-pandemic compared to today, it’s vastly different. Pre-pandemic, the term "supply chain" was rarely mentioned outside of industry circles. Now it’s a topic you read about daily. The pandemic played a crucial role in highlighting both the strengths and vulnerabilities of our supply chain, bringing unprecedented visibility and awareness.

Consumers are now acutely aware of the supply chain's importance, es-

“This industry is constantly evolving and to be successful in this business, you must have one eye on today and the other forecasting three, five, seven years from now. During my time at McLane, there have been periods of time in the business where it was the same thing, the same way, the same day. In the last 10 years, I have seen an acceleration to constantly enhance, improve and drive excellence in the present, but then leverage that so you can be one step ahead.

You must constantly look ahead, skating to where the puck is going, not where it’s been.”

— Tony Frannkenberger, President and CEO, McLane Company

I have a high level of expectation and accountability. I believe it's crucial to surround myself and the organization with the best talent available. This means leveraging the experience of our internal teammates and also bringing in fresh perspectives from external recruits. Once we have the right people in place, it's important to step back and let them do their jobs. They should have the freedom to shape, mold, and drive the business. It's about giving them the ability to take calculated risks and supporting them even when things don't go as planned. To grow a business, you need to take risks and accept that mistakes might happen. By pushing the envelope and exploring new opportunities, we can build new capabilities

Where do you see the distribution segment headed in the coming years?

There’s going to be a focus on supply chain surety. There has been consolidation within the industry and that will continue. If you don’t have technology front and center somewhere in that conversation, then you’re missing the boat. Technology both inside our facilities as well as on the road will continr Cont'd on Pg. 14

Interview: Tony Frankenberger, McLane Company r From Pg 12 ue to evolve and will create opportunity. At least it will create opportunities for those organizations that are agile enough and capable of adapting to the new world. It will be a tremendous opportunity for the future.

This industry is constantly evolving and to be successful in this business, you must have one eye on today and the other forecasting three, five, seven years from now. During my time at McLane, there have been periods of time in the business where it was the same thing, the same way, the same day. In the last 10 years, I have seen an acceleration to constantly enhance, improve and drive excellence in the present, but then leverage that so you can be one step ahead. You must constantly look ahead, skating to where the puck is going, not where it’s been.

What are the top concerns and issues distributors faced in 2024?

The economy is still a major focus, and in our industry, we're seeing that volumes are continuing to be soft. Even though things have improved, we still face supply issues across various categories.

Labor remains a challenge for most companies, though there are signs that the labor market is stabilizing. We're seeing much better retention rates than we did three years ago, which is encouraging. But there's always a constant pressure, especially in the driver sector, and that pressure isn't going away anytime soon. As an industry, we need to rethink our business models and explore different modes of operation. We can't be as reliant on Class A drivers and similar roles. It's about innovating and evolving to meet these demands. How can we change our approach to reduce this dependency? That's what we need to figure out.

What is McLane’s strategy to stand out from your peers?

McLane focuses on controlling the controllables and ensuring seamless day-to-day operations that our customers can rely on without question. We emphasize building authentic relationships with both our suppliers and customers, aiming to be a catalyst for their growth. When customers are planning

PG 14 / GR O C E R Y I N S I G H T

their strategies, we want McLane to be an integral part of their vision, seen as a partner in growth rather than an obstacle.

We strive to think, act, and work differently within our organization to foster these strategic partnerships. Our goal is for customers to always consider McLane when they think about supply chain capabilities. Whether it's direct store delivery, 3PL, or redistribution, we want to be their go-to solution for any supply chain challenge or opportunity. By focusing on creating these

Trust is fundamental to these relationships, whether with teammates, suppliers or customers. Mutual trust means knowing that we will always do the right thing, own up to mistakes, and be honest, even when the truth is difficult to hear. This commitment to integrity and transparency helps us maintain strong, reliable partnerships that are essential for our leadership in the industry.

What are McLane’s goals and priorities for 2025?

Our goals and priorities for 2025 remain consistent with our long-term vi-

“We are unbelievable in a crisis, and I believe it's due to our culture and leadership. Our success is definitely rooted in the 23,000 teammates who make it happen every single day across our network. Their tenacity to step up and drive forward, even when times are tough, is a remarkable attribute of our organization. Our teammates do an incredible job. For instance, in 2024, we faced tornadoes, hurricanes, earthquakes, and fires. One of our facilities was four feet underwater, yet within 48 hours, we were back on schedule, servicing every single customer in that area. Our ability to respond and recover is rooted in 131 years of experience dealing with such challenges, but the simple fact is we have an amazing ability to respond and recover.”

— Tony Frannkenberger, President and CEO, McLane Company

strong, mutually beneficial relationships, we believe we can achieve longterm success.

What do you attribute to McLane’s continued success? What are some key values and features of McLane that make you a leader?

Culture. Our continued success at McLane Company can be attributed to our strong culture and core values.

We are grounded in the principle of "leading forward," which goes back to the concept of always keeping one eye on the future. This mindset drives our willingness to innovate, take risks, and strive for excellence in everything we do. Achieving excellence is challenging because there's always another level to reach, a new technology to adopt, or a different way to improve. That's why we constantly push ourselves to think, act, and work differently.

Another key aspect of our success is the authentic relationships we build.

sion. We are committed to enhancing our value proposition for both our supplier and customer communities. This involves continuously seeking innovative ways to expand our capabilities and offerings, whether it’s addressing a customer need within the kitchen or fulfilling a supplier requirement in the supply chain.

A key focus for us is to drive value for our supply chain partners. We constantly explore opportunities to improve our processes and deliver exceptional service.

Simultaneously, we are dedicated to fostering a positive and dynamic culture at McLane. Attracting and retaining top talent is crucial to our success, and we strive to create an environment that supports and strengthens our team. In essence, our priorities revolve around delivering value, expanding our capabilities, and nurturing a culture that empowers our teammates to excel.

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