December 2023 Grocery Insight

Grocery Insight December 2023

The 2023 Category Captains The end of the year Series presents a moment to shine a light on the numerous accomplishments of an elite class of suppliers

Inside Special Report: Fresh Thyme Market 2 • Category Captains: Fitness Beverages 4 • Category Captains: Tomatoes 6 • Category Captains: Italian Deli Meats 8 • Category Captains: Sushi 10 • Category Captains: Bison 12 • Category Captains: Pierogies 14 • Category Captains: Humanely-Raised Pork 16 • Category Captains: Frozen Seafood 18 • Category Captains: Frozen Handheld Snacks 20

Special Report Fresh Thyme Market

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or one visionary, the farmers market retail concept transformed from an idea filled with good intentions into a culture where shoppers adopted healthy habits and an improved way of life. Fresh Thyme Market was inspired by leading natural grocerers. As it grew, Fresh Thyme forged its own way, disrupting and elevating the natural grocery space for loyal consumers.

Concept

Fresh Thyme was intended to differentiate from other established natural grocers on size and convenience.

“We are the farmer’s market concept, so we’re going to have a similar floor plan, similar layout and offerings to Sprouts,” Founder Chris Sherrell explained. “But we have our differences between each company. Different from a Whole Foods, we are a smaller concept, but we carry all the core items the natural and organic shopper will be looking for. We have a lower profile layout, it’s much more convenient and maybe not as intimidating. Since we’re a farmers market, we have a mix between conventional food and natural and organic food so we have items that are familiar to your everyday shopper, your middle America that would love the opportunity to change their lifestyles and their pattern and eat healthier and get away from the more traditional grocery store."

"But one of the biggest differentiators is price point," he added. "We’re going to have produce prices cheaper than anyone has ever seen before. We’ll offer natural and organic foods at prices that the Midwest has not seen before.”

Sherrell’s intention was for shopping at Fresh Thyme Markets to become a stepping stone for consumers to start to live a healthier lifestyle. “I believe this smaller concept, this more convenient concept, this more natural and organic concept is the way of the future,” he continued. “While Amazon continues to grow every facet of their business, the grocery industry is different. Especially for people with this lifestyle—they want to understand, they want to learn, they want the education on how to get healthier. Amazon doesn’t offer that.”

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In April, the company launched its Fresh Thyme Market Pickup, intended to make it simpler for consumers to shop and save with in-store prices online and offering consumers access to unparalleled fresh, high quality and convenient groceries at the click of their keyboard.

"We are excited to bring a more convenient way of shopping to our loyal and new customers with this e-commerce launch," said President Liz Zolcak. "We are proud to be able to bring our great in-store shopping experience to life, online. With our new appealing and convenient e-comm experience, we can provide more shoppers with savings without sacrificing quality or freshness."

In February, Fresh Thyme Market was named to the list of Forbes' America's Best Midsize Employers. Out of the 500 companies awarded, Fresh Thyme is ranked 218 and appears 13 out of 43 in the retail and wholesale industry category. The company’s mission to “improve the way communities eat by offering real fresh food with an emphasis on ease and convenience,” helped them to stand out.

"We are so proud and honored to be on the list for Forbes' America's Best Midsize Employers," said Zolcak. "As a company that thrives on the impact each team member makes, we focus on delivering a personalized experience that ties to the community and our customers. Our leadership team is dedicated to making our employee experience and development a main priority and we would like to thank everyone that helped us be named No. 218 on this list and No. 13 in the category of retail and wholesale industry."

Leadership

Liz Zolcak was appointed President in 2022—the first female President in the company’s history. Before her promotion, Zolcak served as VP of Operations, overseeing Fresh Thyme’s store footprint which in 2022 was 71 stores across 10 states throughout the Midwest.

At the time of her promotion, Zolcak had a 17-year grocery career and had previously worked for Kroger as VP of

Retail Operations. Before Kroger, she worked for Kroger banner Ruler Foods and Aldi US where her last position there was Director of Corporate Buying.

Scott Caro was appointed Group VP upon joining Fresh Thyme Market in August of this year. Prior, Caro worked for Topco Associates and was SVP of Member Development before he left.

Caro also worked for Kroger for nearly a decade, serving in several leadership roles including VP of Merchandising and VP of Food Market Innovation.

Current VP of Center Store, Jonathan Lawrence has worked for Fresh Thyme Market for more than a decade. He joined the company in 2013 a Director of Vitamins and Body Care before being promoted to Senior Director of Grocery and Natural Living and his current position as VP of Center Store. Previously, Lawrence worked for Sprouts Farmers Market as a Category Manager and Sunflower Farmers Market as a Category Manager and Regional Merchandiser.

Jason Resner is Fresh Thyme Market’s VP of Fresh Merchandising and Procurment. He joined the company in 2019 as VP of Meat and Seafood before he moved to his current role in 2021.

Before Fresh Thyme Market, Resner worked for Price Chopper Supermarkets—Market 32 where he served as VP of Meat, Seafood, Packaged Deli Merchandising and Procurement and VP of Meat and Packaged Deli Merchandising.

Resner also worked for Supervalu in several roles, and he spent more than a decade with Albertsons where his final position was Sales and Merchandising Manager—Meat and Seafood for Jewel Osco.

Derrick Thomas is VP of Operations after joining Fresh Thyme Market in 2022. Thomas worked for Meijer where he worked his way up from Store to Market Director. Prior to that, Thomas worked for Dollar General as Regional Director Operations.

Fresh Thyme forged a path in the natural grocery sector. Inspired by consumer demands for fresher, more natural items, Fresh Thyme created its unique identity and mission to create a haven for people to change their clean eating and lifestyle habits for the better.

2023 Category Captains F

Fitness Beverages: Celsius

itness beverages leader Celsius attributes consumers' intrigue and best intentions to live a healthier, active lifestyle coupled with fitness trends circulating on social media influencers’ pages to the increase and rising demand of the fitness beverage category. This encompasses the majority of people and is not limited to athletes.

“Celsius has been one of the top contributors to the entire energy category’s growth bringing 25 percent of total new-to-category consumers,” Kyle Watson, evp, Marketing previously said.

“Celsius stays ahead of trends and consumer insights in order to continue to bring in new-to-category consumers and those looking for a better-for-you alternative to traditional energy drinks.

Celsius strives to continuously evolve their existing product portfolio with trending and refreshing flavor profiles and formulations that continue to appeal to fitness enthusiasts as well as a more conventional energy consumer looking for a more premium offering."

Celsius introduced its new product line during the NACS Show, an industry tradeshow that draws in key decision makers across the industry, that was held in October. The new line touts robust flavors and promises to help enhance workouts by elevating physical performance and cognition.

“Our new line is a game-changer for those looking to elevate their performance and take their fitness to the next

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level,” said Watson in media reports.

“This is one of Celsius’ biggest launches to date and we’re excited to share a sneak peek at the upcoming NACS trade show in early October.”

This year, Celsius prioritized attracting Gen Z consumers to the category and encouraged product trial and category exploration with vibrant packaging and flavors which appeal to this specific and rising demographic. Its color scheme and simplistic design reflect what consumers are after: a clean diet with less filler and empty calories.

“Innovative flavors and packaging are key in attracting a new-to-category consumer that values experiences and socially relevant brand offerings,” Watson explained. “The Celsius VIBE Edition line of products uses experiential packaging and robust themed launches and activations to drive social engagement which appeals to Gen Z, the next generation of energy."

"In 2024, the brand will continue to engage consumers by embracing macro trends and delivering new VIBE flavors inspired by space and beyond," she added. "Cosmic Vibe, which recently launched, is the first taste of what the ‘Future’ has to hold for the VIBE line.”

But they can’t do it alone and throughout the year have leaned into strategic partnerships with universities and major sports entities to drive attention to the Celsius brand and its flavors.

“Celsius is extremely excited to part-

ner with Inter Miami CF and proud to become the team’s Official Energy Drink,” Watson said earlier this year.

“At Celsius, we focus on promoting a healthy lifestyle and creating authentic partnerships, so what better way to do so than by partnering with a professional club who aligns with our LIVE FIT lifestyle.”

In April, Celsius announced it would sponsor the Ferrari F1 team for three races scheduled for 2023. Other partnerships in the sports arena include NASCAR, PFL, NBA and boxing.

Historically, coffee drinks and college students have gone hand in hand.

However these caffeinated and simple carbohydrate loaded beverages contribute to the Freshmen 15 and cause blood sugars to surge and then crash.

Students are realizing Celsius offers a better for you option for a sustainable, lasting burst of energy that doesn’t meddle with weight and blood sugars.

“Celsius engages consumers as they enter the category through their Celsius University Campus Ambassador program as well as through increased retail distribution on campuses nationwide with the help of the recent Pepsi distribution partnership,” Watson explained.

“We recently held our largest Celsius University Conference to date for the Fall semester, giving students from around the country a platform to get hands-on experience with our brand.”

ESSENTIAL ENERGY

CELSIUS.COM

@CELSIUSOFFICIAL

*CELSIUS® helps maintain the body’s regular metabolic function. CELSIUS® alone does not produce weight loss in the absence of a healthy diet and moderate exercise. So, whether you walk the dog or work out at the gym, make CELSIUS® part of your daily regimen.

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Tomatoes: NatureSweet

atureSweet is a category leader in more ways than one. Not only does the company provide retailers and households with a consistent supply of fresh and tasty tomatoes, it is transforming the way we look at and treat agricultural workers. One area NatureSweet would like to engage its peers in is a dialogue about treating agricultural workers with dignity and respect—an uncommon practice in the agriculture industry.

NatureSweet has challenged this way of thinking and treatment of the people who play such a pivotal role in the industry. “Our goal is to transform the industry and improve the lives of agricultural workers in North America,” said Jenny Halpin, External Communications Manager. “NatureSweet is driven by the conviction that doing the right thing and building a business model, grounded on treating people with dignity, is not a conflict, but the reason for our success. Historically, the industry has not placed its workers at the center, or treated them as the most precious driver for success. We are committed to providing agricultural workers with the resources and tools that will improve their lives. In December of this year, more than 2,000 of our associates will have benefited from our educational program by earning their elementary or high school diplomas. We also have a group that are on their way to earning their bachelor’s degrees in agriculture!

Our NatureSweet Fair Trade committees at our plants in Mexico have organized healthcare clinics, and some of our associates have first-time access to

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vision, dental and nutritional care. We hope our example and impact goes beyond NatureSweet and serves as a roadmap for the entire industry.”

Another focal point for NatureSweet this year was becoming B Corp Certified. “We are extremely proud of this accomplishment,” Halpin said. “B Corp certification assures a business is meeting the highest standards of verified performance, accountability and transparency. We achieved this distinction as a result of more than 30 years of transforming the lives of agricultural workers in North America. We are the largest CEA company that is fair trade and EFI certified, so becoming a B Corp was an obvious step for us. The process helped us fine-tune many in-house processes and opened our eyes to opportunities we had not seen. We are truly looking forward to improving the agricultural industry as a whole and NatureSweet is proof that when you do the right thing, you can still be widely successful.”

After more than 30 years in the industry, NatureSweet has not veered from its goal of changing the business.

One example is through fair compensation and ensuring the company’s agricultural workers have access to healthcare. “We started the business with a commitment to transform the agricultural industry,” Halpin explained.

“Today, our associates earn almost 40 percent more than the median wage of agricultural workers in Mexico and have access to educational programs, psychological and healthcare services.

We have the most talented people who create the best-tasting product in the

industry. They’re able to do this, in part, because NatureSweet has a supportive environment worth staying, growing and thriving in.”

“Regarding innovation, NatureSweet is known for having the best-tasting snacking tomatoes in the world, and it starts with our dedication to flavor,” she continued. “Our Cherubs are so sweet they’re the perfect healthy snack to grab when you’re headed out the door.

To make this more convenient for our consumers, we created our Cherubs and Constellation To Go snack packs that are washed and ready-to-eat snacking tomatoes in a palm-sized container.

Consumers love our products and they want more of it, which has led to our expansion into more greenhouse vegetables.”

NatureSweet believes two of the most appealing and intriguing aspects of the tomatoes category are healthy snacking and convenience. “We’re giving our consumers time back in their day,” Halpin said. “Our washed-and-ready-to-eat Cherubs To Go are the perfect healthy snack to throw in a lunch box or a gym bag and kids love them, too! Our snacking tomatoes are so sweet, you forget you’re eating something healthy. And speaking of convenience, our Cherubs are also available in the food industry, we launched that program this year. A major restaurant chain kicked off this venture with us and began by replacing their sliced Roma tomatoes with our Cherubs snacking tomatoes in salads.

Not only has this improved taste but it’s saved on labor, so they’ve expanded the program to include more restaurants.”

Transforming the Lives of

Agricultural Workers in North America

2023 Category Captains

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Italian Deli Meats: Fiorucci Foods

ooted in a legacy that stretches back more than 150 years, Fiorucci Foods continues to stand at the forefront of the Italian deli meats category because of its thoughtful approach to manifesting its “old world for the modern age” motto into wholesome and delicious meal and snacking options that support the success of its customers across multiple channels while also delighting the end consumer. The company succeeds in marrying old world culinary traditions with modern taste preferences, embracing the potential of new concepts to help it continue sharing the flavors of old Italy.

A large part of that success is thanks to a continued drive to bring new products to market.

“At Fiorucci Foods, we are thrilled with the number of new product innovations we were able to commercialize and successfully launch in the market for 2023, across the retail grocery, convenience store, foodservice and micro-market sales channels,” said Shawn Munck, Director of Marketing, European Brands & Foodservice, Sigma USA, which oversees the Fiorucci Foods brand. “In fact, we internally categorize a new product innovation as anything that’s been selling in the market for less than three years, and at the time of this writing, we have more than 50 new products in the market. Some of our most successful top-sellers include our Italian-inspired Charcuterie, Sandwich, Panino and Festalino Variety Packs, along with a variety of new specialty regional salumi, Panino, and snack-pack flavors. We are excited to share we have

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reached our internal new product innovations sales goal for 2023 at the end of Q3, with the peak holiday season still to come.”

Fiorucci Foods’ dynamic product catalog reflects the meticulous attention the brand is paying to how today’s consumers are enjoying Italian meats, and they are tailoring everything from packaging to ingredients accordingly.

“We are honored to continue the legacy of Fiorucci since 1850, using family recipes across three generations and we understand all food and beverage categories are rapidly evolving, with our customers and shoppers looking for solutions that can keep up with the ever-changing pace,” Munck said. “Our motto is ‘old world for the modern age,’ and we believe having a diverse portfolio that services all the major sales channels is key for our success, from larger foodservice pre-sliced and bulk products to smaller, single-serve snacks great for on-the-go convenience store shoppers and a mix of both for the retail grocery environment."

He continued, "We want to continue growing our Fiorucci 100 percent Natural line of products, which is an assortment of Italian-inspired deli meats and snacks marketed to consumers looking for products with no antibiotics, chemicals or growth hormones, using 100 percent vegetarian-fed pork, with no artificial flavors, colors, ingredients, preservatives, nitrates or nitrites, using the same old-world curing methods we follow with all our product lines. Having a diverse product mix that services all of our customers and sales channels is

key, and when we look at product innovation, we have to understand that our products are serving a consumer or operator need, whether [or not] they know it; so, finding that key benefit or purchase driver–that is a central component to successful innovation.”

Helping highlight the appeal of Italian deli meats is the increasing popularity of charcuterie as a means of both informal snacking and fancier entertaining.

“The growth and popularity of charcuterie is very exciting to see; not only do we see this in the foodservice restaurant and recreational industries, but now in retail grocery, convenience stores, micro-markets and on-the-go meals,” said Munck. “Growth in snacking and charcuterie go hand-in-hand, and we only see this continuing. We also see Italian deli meats becoming more of an everyday ingredient in weekday and weekend dishes across all day parts.

Not only are Italian deli meats a staple for pizzas, pastas, sandwiches, salads, soups and charcuteries, but their integration into all day parts—breakfast, lunch, dinner, snacking and now desserts—will continue to grow.”

Given this versatility, Fiorucci Foods is exploring further options to put Italian deli meats in front of consumers.

“We feel more kitting and full-meal solutions will continue to help grow the Italian deli meats category, where the meat is a central, key ingredient, but accompanied with other products to create a meal solution that’s appealing, memorable, convenient and delivers on elevating that special, everyday occasion," he said.

L I F E TA S T E S

BEAUTIFUL

Fiorucci’s handcrafted, authentic Italian flavors have made life taste beautiful for over 170 years. fioruccifoods.com

2023 Category Captains

Sushi: Advanced Fresh Concepts

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hether it’s to make at home or have for a quick lunch, consumers have consistently looked for convenient and safe ways to buy and eat sushi.

While upstanding leadership efforts and qualities play a major role in Advanced Fresh Concepts' (AFC) success as a category leader, the company has always remained true to its values and mission.

“AFC is guided by its founding core values and principles of legacy, pioneers, pride and honor. Our core values are what sets us apart from our competitors and guides our strategic decisions, from our innovation pipeline to our commitment to operations excellence to the dedication of our HQ and Field teams’. Everything we do stems from these principles,” said Deborah Bush, Brand Development Manager at AFC. “Looking beyond the brand and our newly designed sushi case, our core focus has always been on the quality of product that we offer and the innovative recipes that we develop. The AFC R&D team works incredibly hard to come up

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with unique flavors and textures that will satisfy our customers’ cravings. Our distribution team works around-theclock with our extensive supply chain network to source only the best, highest-of-quality ingredients. Together, our teams work harmoniously together to offer our customers craveable dishes while meeting the expectations of our partners.”

The company’s ZENSHI brand has become a major focal point for driving growth.

“2023 has been a momentous year for Advanced Fresh Concepts,” said Bush.

“After over 35 years as the leaders in the sushi franchise business we finally unveiled our first consumer-facing brand at the IDDBA tradeshow in June.

We have high expectations for our new brand, ZENSHI Handcrafted Sushi, with ambitious goals starting at the beginning of 2024. We attribute our success to the dedication of our entire team who has worked tirelessly to make this brand come to life and resonate with our core audience.”

AFC has long established itself as the most dependable supplier in the grocery industry by consistently delivering high-quality sushi and other Asian foods that meet the evolving demands of consumers. It will continue to uphold its reputation as the industry leader while it remains committed to listening to its partners and surpassing their needs for innovative, high-quality products.

“We are incredibly excited to be launching our new brand, ZENSHI Handcrafted Sushi, across the nation in the new year. We believe this will be an industry game changer. Finally, sushi enthusiasts across the nation will recognize our sushi case when they go grocery shopping no matter where they are. Sushi consumers will realize that the great tasting sushi they have been enjoying all this time has been made by Chefs trained by the pioneers of American grab-and-go sushi. With brand recognition, we believe ZENSHI will have a tremendous impact on the industry,” she continued.

2023 Category Captains Bison: Great Range Bison

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hile beef has been a key player in the meat industry, bison has risen in popularity through companies like Great Range Bison who are encouraging consumers to try its high-quality meat.

The company has been educating consumers on the health benefits of bison, noting that it is a leaner meat with more vitamins and minerals than beef.

“Bison have been around for thousands of years, and we like to think bison are ‘regenerative by nature’,” said Cory Schmeling, Director of Sales at Great Range Bison. “There have been multiple studies done that show if grasslands have large ungulates grazing rotationally the land will be more productive and sequester more carbon. Bison have instinctive natural grazing patterns that allow for deeper root growth and more productive grasslands. There is a story to be told about bison and their long history in North America— the conservation of the species, their ability to handle the wide variation of weather patterns on the high-altitude arid areas of the west etc. We try to educate via social media, brochures etc. in

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order to help our grocer customers develop more bison consumers.”

Furthermore, that company has been able to showcase the benefits of bison, “from the health benefits to the environmental benefits,” Schmeling said.

“Bison is a highly nutrient dense food because of the proportion of protein, fat, mineral and fatty acids to its caloric value. Bison also help the environment, when people eat bison, they are helping create more bison on the landscape and when more bison are on the landscape the grass lands of the Great Range will thrive.”

“Ground bison has become increasingly popular at retail and is our best-selling product,” said Ace Ward, Chief Operating Officer at Great Range Bison. “The availability of steak cuts is dependent on the demand for ground bison. In order to achieve full carcass utilization, we must balance ground demand and steak demand. This is not easy and can result in limited availability of steaks. At the end of the day, bison steaks are almost a by-product of ground bison. Retailers choose the vac-

uum-packed steaks for labor reasons, and we have the equipment and staff to continue to grow this category.”

Looking at the company’s leadership effort that surround bringing retailers and consumers to the category, the company has been dedicated to setting itself apart from competitors and others in the meat category as a whole.

“We are always looking for new ideas or better ways to do things, to innovate our products, or market ourselves uniquely,” said Ward in a preference interview with Grocery Insight. “With that being said, we still believe the best way to grow is to do things right, stay consistent in our values, and stay consistent with price. We have worked very hard over the first part of 2022 to keep our retail ground bison consistent in price.

We have looked for other lines of revenue to offset our product cost coupled with internal efficiencies of operating our facilities. So far, we have succeeded but it sure is becoming more difficult with the increased cost of labor, packaging and freight.”

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Pierogies: Mrs. T's

rs. T’s Pierogies sits high among the recognizable brands in the frozen aisle that families often turn to for a quick meal solution, and the place is well-earned. Through decades of partnership with retailers, suppliers and loyal consumers, the company has cultivated a reputation for supplying reliably good food options made with ingredients that have mass appeal. At the same time, Mrs. T’s continues to look toward growth opportunities by diligently monitoring consumer trends to be able to evolve its product offerings for the modern day. And as American consumers become more diverse, the company continues to share the story of pierogies, helping newcomers to the category figure out how their pillowy pockets of goodness can make meal-planning just a bit easier and tastier.

In 2023, Mrs. T’s strives to make its products accessible. Director of Marketing Alyssa Panzarella said earlier this year, “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. 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,” she said.

And it has been a successful year for Mrs. T’s. “In a market where pasta and potatoes are family favorites, we com-

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bine the best of both,” she said. “We provide a high-quality, quick mealtime solution for our consumers who we know are always looking for dependable, affordable items their whole family loves. We are fortunate to have a dedicated team working behind the scenes to stay on top of trends, maintain positive relationships with our partners and meet consumer demand at exceptionally high service levels.”

Because as much as it is about the food, Mrs. T’s has achieved its longevity because it has prioritized being a good partner. “One way we continue to set ourselves apart is through the relationships we have been fortunate to build throughout the last 70 plus years,” she said. “Whether with retailers, suppliers or consumers, we pride ourselves on being a trusted brand and partner.

We understand we fill a need in our consumers’ lives and work tirelessly to meet their expectations.”

Mrs. T’s continues to invest in marketing, aiming to be top of mind with consumers while connecting with them, providing them with valuable content and inviting them to be Mrs. T’s Pierogies’ advocates, Panzarella said. “Consumers need quick, easy and convenient mealtime solutions for their whole family. This brings exciting opportunities to expand the category,” she said.

An example of a dynamic marketing opportunity came in February when Mrs. T’s partnered with actress, entrepreneur and mom JoAnna Garcia Swisher in a month-long, All-Star Mom contest in which the company spotlighted the importance of me-time for mothers and

helped them find ways to recharge. One deserving mom was awarded $20,000, a year’s supply of Mrs. T’s Pierogies and a personalized design by Swisher to create the ultimate ‘Recharging Room.’

Similarly, last fall, Mrs. T’s Pierogies drummed up excitement and FOMO amongst consumers when it released a limited-edition Mini Pumpkin Spice Pierogies as part of an Instagram-linked sweepstakes marking National Pierogi Day. The pierogies were only available in the sweepstakes and not sold in stores.

Outside of contests, encouraging trial continues to be the gateway for those who are new to pierogies. “We also know many consumers still do not know what pierogies are or how to use them,” she said. “So, in addition to providing consumers with new flavors and usage occasions, we still have the opportunity to build our base by introducing pierogies to new consumers.”

Underlying these initiatives, however, is Mrs. T’s ability to integrate the objectives and needs of all of its partners. “We strive for best-in-class joint business planning,” Panzarella said. “Knowing retailers’ strategic goals and consumers, and how they integrate with our own will help our teams build mutually beneficial plans.”

She explained, “This also includes consumer insights and marketing integration. As we enter into a ‘cookie-less’ world [in internet browser trackability], brands may need to rely more on retail partners and other first party data sources to help them to better target their consumer messaging.”

2023 Category Captains P

Humanely Raised Pork: Pederson's Natural Farms

ederson’s Natural Farms’ has honed in on leadership qualities and strategies that have allowed it to set itself apart from competitors and propel category growth through innovation and policy. With the recent passage of Proposition 12 in California which aims to raise standards of the humane treatment of animals, the pork category in particular is facing challenges. Companies like Pederson’s which already prioritized how animals are treated anticipate a ripple effect that will reverberate through the category and retail channels in the coming year.

“We start with a set of principles and standards that we don’t compromise on and then we try to fill needs and not copy others,” said Ben Warren, Retail Marketing Manager for Pederson's Natural Farms. “Over the last couple years we have launched several new and unique products such as clean label and humane standard pickled sausage and ranch and pastrami bacons. We are the only game in town with these kind of things. On the fresh pork side we continually grow our herd size by getting new farms online without any loosening of the humane standards.”

In light of the passage of Prop 12, Warren foresees implications from the

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proposition trickling down to retailers and consumers.

“Without a doubt there will be many challenges ahead for consumers, retailers and food service providers and they will likely have to change the way they think about pork, eggs and veal,” Warren said. “Supply for California as a whole will be challenging and for some folks there will be some sticker shock.

However, the quality of the products they will be getting will be of a higher quality and sustainability.”

The industry is filled with companies like Pederson’s that were already prioritizing the humane treatment of animals before Prop 12 was approved.

Warren anticipates Prop 12’s attempt to raise standards will still affect suppliers who already hold themselves accountable to humane treatment and housing conditions.

“We foresee a couple big challenges and opportunities with Prop 12,” he said. “We are already seeing some of our bacon SKUs showing up in conventional grocery stores in California. With our smaller scale that has always been a bit of a challenge for us. That allows us to be seen by a whole new set of potential customers and is encouraging to see. Our biggest challenges will be sup-

ply and education. We will likely being seeing a small group of pork companies, including Pederson's, as the main suppliers for the largest population state in the country. While this should be a huge boon for us it also provides supply issues for all of those companies until the rest of the pork world can catch up.

Additionally, education will be an important facet of the roll out. Consumers and retailers alike are jumping into a new pool and will need to be given more info on what sets the humane standards apart."

“We have met or exceeded these standards for over a decade and these standards are a living breathing part of our company,” Warren said. “When you buy a Pederson's product you’re a getting these standards, not by prescription but by principle.”

“It has been a pretty successful year for us,” Warren reflected. “The economy and price changes have been tough; being vertically integrated has helped us keep cost down. [We are proud of] our relationships with our customers and our ability to keep shelves full and overcome challenges with a mindset for mutual benefit."

2023 Category Captains

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Frozen Seafood: Trident Seafoods

rident Seafoods’ most notable traits—prioritizing people, showing respect and having grit—have played a formative role in allowing the company to form and cultivate partnerships throughout the industry.

“Ever since Chuck Bundrant founded Trident in 1973, the company has always focused on people,” Danny Sweeting, Vice President of Consumer Packaged Goods explained. “You see this reflected in our stakeholder model that demands we consider the needs and impacts of a broad range of stakeholders in everything we do. We maintain strong industry partnerships by treating partners as people, not entities.

What it means is that we treat our partners the way that we want to be treated.

We set high expectations and then we work together to achieve the best outcomes for everyone.”

US Value Added General Manager Kent Harrison, who leads the North American Market total business, is quick to point to the company’s vertical integration from the fleet to the fork as its biggest asset in bringing market relevant solutions to its customers.

“We are focused on innovating around our core species of wild Alaskan pollock, salmon and cod,” he explained.

“We have three things in mind when we innovate—consumer preference, market commercialization at a scale that keeps costs low for our retail partners and the right branding mix for our key customers—Trident brands or private label opportunities. We want to bring grocery retailers the next greatest product innovation for the frozen seafood

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category before they can even identify the need or the consumer demand. Our transparency and supply chain integrity are something that we value—not for any economic reason, but because business should be done the right way, every time. Making sure that each link in the supply chain lives up to our standards of safety and responsibility means that our grocery partners that buy frozen seafood from Trident can rest easy knowing that they are bringing great food made the right way to their consumers. Living our values, particularly doing the right thing and leveraging the power of our vertical integration deserve to be called out as the two main things that set us up for continued growth and leadership in the category.”

“2023 has been a challenging year throughout the seafood industry,” Harrison said. “Some of the things that went well and kept Trident focused on our customers were our ability to quickly connect the volatile and rapidly changing commodity side of seafood to the frozen grocery products that we sell. This only happens because of how Trident covers the entire supply chain through our vertically integrated model.”

“The dedicated nature of our teams in FSQA, Government Relations and Corporate Responsibility has ensured that we can provide transparency and develop trust with our customers,” Harrison continued. “With increased focus on doing business the right way, we want our customers to feel confident in the Trident products that they are selling to consumers. Our success starts with

the quality of our ingredients, our focus on best-in-class finished products and an unrelenting focus on improving the service to our customers. We know that if we can satisfy customer needs, then our grocery partners are the best way to have more and more people experience wild Alaskan seafood.”

“2023 [was the] perfect storm for our category, but proved that the way we’ve been doing business for 50 years has equipped us with the experience and tools to navigate rough waters,” Harrison added. “Being ‘United from Fleet to Fork,’ caring for every stakeholder in the value chain and building true partnerships allows us to be transparent and flexible and adjust and provide leadership in the category. Reliable and consistent supply with leading commercial insights to continue driving the category, working alongside fishermen to ensure future viability of their livelihood are the main ingredients for our continued success.”

Sweeting said evaluating Trident Seafoods’ progress represents more than reaching a numerical goal.

“We have our business-focused metrics and while those are important, progress as a category leader in this space goes beyond hitting a business number,” Sweeting explained. “We focus on running a sustainable operation that will support today’s market as well as the markets of the future. We are celebrating our 50th anniversary this year, and we have every intention of being here for the next 50. To do that, we focus on treating the source and our stakeholders with respect and care.”

UNITED FROM FLEET TO FORK SINCE 1973, WE HAVE PROUDLY BROUGHT THE BEST WILD ALASKA SEAFOOD TO YOUR TABLE. WE COULDN’T DO IT ALONE. WE’RE THANKFUL FOR OUR INCREDIBLE FAMILY OF FISHERMEN, SKILLED PROCESSORS, AND ALL THOSE WORKING BEHIND THE SCENES TO CONTINUALLY INNOVATE AND IMPROVE OUR PROCESSES AND PRODUCTS. OUR GLOBAL TEAMS’ DEDICATION TO CARING FOR PEOPLE AND THE PLANET HAS MADE TRIDENT WHAT IT IS TODAY, AND WE LOOK FORWARD TO SERVING SEAFOOD LOVERS FOR MANY YEARS TO COME. NEXT TIME YOU’RE LOOKING FOR A WILD ALASKA SEAFOOD PRODUCT, CONSIDER TRIDENT SEAFOODS.

TridentSeafoods.com

2023 Category Captains D

Frozen Handheld Snacks

elicious taste and quality ingredients do not take a backseat when it comes to convenience and on-the-go options. Ruiz Foods has been able to include all of these characteristics in its handheld frozen snacking options as consumers continue to look for easy meal solutions that don’t sacrifice quality and taste.

Looking back at 2023, “While this has been a difficult year for the industry as it recovers from sky-high pandemic demand, supply issues and historic inflation, we are optimistic,” said Jarom Wren, Vice President, Marketing, Ruiz Foods. “Across frozen categories including snacks and apps, Ruiz Foods is coming out of 2023 as the clear share leader in Mexican food—over two times larger than our nearest competitor. We attribute our success to learning what consumers want, delivering bold authentic Mexican food, significantly increasing production capacity and capabilities, expanding distribution with strong core and new items, and having an outstanding team with unparalleled collaboration and culture. We are confident in our ability to continue to drive growth

PG 20 / GR O C E R Y I N S I G H T

in our categories, with this team, into the future.”

“We are an authentic family company, led by the same Mexican American family who founded Ruiz Foods back in 1964,” said Wren. “Given our heritage, El Monterey has focused on having the best taste and quality in the category, and we spend a lot of effort ensuring we keep it that way by testing with consumers in blind studies and improving taste and quality over time. As the leaders of frozen Mexican food, we have a responsibility to drive category growth and, therefore, have significantly increased our marketing support to introduce more Mexican-food- loving consumers to the category. We did this by delivering highly motivating messaging through advertising, shopper marketing, social media, etc.”

According to the company, there are areas within the category the company has continued to focus on, specifically surrounding the opportunity to bring authentic Mexican food into households, leading it to become an essential meal option.

“Our biggest opportunity is to in-

crease household penetration among consumers who love Mexican food in general but are skeptical about frozen Mexican food. Consumers who love Mexican food worry that frozen food won't have the authentic flavors that they have come to love from restaurants or home-cooked Mexican food; they are looking for brands who can deliver the bold Mexican flavors they love. That’s where we come in. El Monterey was founded in 1964 by a Mexican American father and son ("Grandpa" Louis and his son, Fred) using authentic recipes from Grandma Rosie's upbringing in Mexico, where she had learned to cook as a child. El Monterey products are filled with quality ingredients and authentic Mexican flavors,” Wren said.

“Ruiz Foods has a legacy of making great food and a passion for making a difference in the lives of our team members, neighbors, communities and consumers. We recently moved our headquarters from Dinuba, CA to Frisco, TX to better serve our customers,” Wren concluded.

SAVE DATE THE

You came (to North America’s largest pet retail event). You saw (the latest, greatest pet products).

You conquered (your business challenges). And we can’t wait for you to keep that momentum going next year! Thank you for helping to make SuperZoo the incredible, fun-filled event that it is.

We look forward to seeing you in 2024!

August 14-16, 2024

Education: August 13-14, 2024 Mandalay Bay, Las Vegas, NV

20,000+

Pet professionals participate, including: Largest Industry Show Floor

10,000

buyers—the most in North America

1,100+ exhibitors

3,300+

buying companies

300,000 square footage

Source: 2021 SuperZoo attendee surveys

INDUSTRY CALENDAR

Upcoming Grocery Industry Events 1. FMI Midwinter Executive Conference Jan. 18-21, 2024 JW Marriott Marco Island Marco Island, FL www.fmi.org/midwinter-conference

2. Winter Fancy Food Show Jan. 21-24, 2024 Las Vegas Convention Center Las Vegas, NV www.specialtyfood.com

3. Natural Products Expo West March 12-16, 2024 Anaheim Convention Center Anaheim, CA www.expowest.com

4. The Inspired Home Show

March 17-19, 2024 McCormick Place Chicago, IL www.theinspiredhomeshow.com

2

5. Annual Meat Conference

4 6

3

March 18-20, 2024 Gaylord Opryland Nashville, TN www.meatconference.com

5 7

1

6. The Sweets & Snacks Expo May 14-16, 2024 Indiana Convention Center Indianapolis, IN www.sweetsandsnacks.com

7. IDDBA 2024

June 9-11, 2024 George R. Brown Convention Center Houston, TX www.iddba@iddba.org

P.O. Box 2067 • Issaquah, WA 98027 • 425-497-0950 December 2023 Publisher/Editorial Director Davis Johnson

djohnson@executiveinsightproperties.com

Editor Katie Murdoch

kmurdoch@executiveinsightproperties.com

Circulation Director James Anderson

janderson@executiveinsightproperties.com

Grocery Insight (ISSN 2330-1651), a monthly magazine, is published by Executive Insight Properties. Subscription rates $75 per year US, $100 Canada, all other countries $150. © 2023 Grocery Insight. All rights reserved. No item or portion may be reproduced without written permission from the Publisher.

Postmaster: Send address changes to: Grocery Insight, P.O. Box 2067, Issaquah, WA 98027

PG 22 / GROCE R Y I N S I G H T

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