February 2023 Grocery Insight

Page 6

Grocery Insight

February 2023 Right on Target :

How the retail juggernaut has changed the face of the mass channel and created a vibrant shopping experience where many consumers carefreely—and unapologetically—purchase items they didn't even plan on

Inside • Special Report: Target 2 • EXPO West Preview: Butter 4 • Category Analysis: Natural Snacking 6 • Category Analysis: Frozen Pizza 8 • Category Analysis: Seafood Soups 10 • Category Analysis: Greeting Cards 12

Special Report

Target

Starting as a small company with a goal to provide consumers with discounts on household items, Target has become a powerhouse retailer that offers convenient commerce solutions, unique and tailored shopping experiences and a large assortment of items at all locations.

History

The Dayton Company started in 1960 and was known as a discount store that focused on giving consumers a quality, unique shopping experience. In May of 1961, The Dayton Company announced its plans to create a new discount store chain. With the company’s new President, Douglas J. Dayton, the retailer was able to create a company with premium goods at discounted costs with 75 departments by combining the finest of the fashion and discount industries.

The Dayton Company and the newly formed discount store, Target, were separate chains and would operate independently. In 1962, the first Target was opened in Roseville, MN. Later that year, the company opened several more locations in St. Louis Park, Crystal and Duluth, MN.

In 1979, the company had reached $1 billion in annual sales, and by 1984 launched The Honors clothing line. The company has several other private labels, but The Honors was the first official owned brand by Target. According to officials, the primary objective of the brand was to set the company apart from other discount stores.

It wasn’t until 1994 that the company introduced the Target slogan known across the nation today: Expect More. Pay Less. A year later the company opened the first SuperTarget, which included various grocery items such as produce, dairy and meat in Omaha, NE.

In 1999, the company launched its e-commerce platform offering consumers the opportunity to shop online. Fourteen years later, Target introduced in-store pickup and same day or next day shipping. Consumers were able to shop online from more than 40,000 items and pick up their products within hours of ordering. This program re-

flected Target’s ability to stay ahead of trends and meet consumers where they were to ensure their shopping needs were met.

In 2018, Target had expanded to all 50 states, with Vermont being the last one to join. Today, Target has 1,948 locations in the US, 51 supply chain facilities and one location globally.

Leadership

In 2014, Brian Cornwell was named CEO and new chairman of the Board of Directors, taking over for Gregg Steinhafel. At the time, Cornwell had more than 30 years of experience within the retail industry. He served as CEO of PepsiCo Americas Foods, President and CEO of Sam’s Club and CEO of Michaels Stores. “I am honored and humbled to join Target as the first CEO hired from outside the company,” said Cornell. “I am committed to empowering this talented team to realize its full potential, lead change and strengthen the love guests have for this brand. As we create the Target of tomorrow, I will focus on our current business performance in both the US and Canada and on how we accelerate our omnichannel transformation.”

Katie Boylan, current evp and Chief Communications Officer for Target, joined the company in 2011. Alongside this, Boylan serves on board for Second Harvest Heartland, a hunger relief organization. Before her roles at Target, Boylan was a Senior Vice President at Edelman and held various roles at Weber Shandwick and Burson Marsteller.

Brett Craig is Target’s evp and Chief Information Officer; he was appointed in 2022. Craig started at Target in 2008 and was Senior Vice President of Target’s digital team overseeing the site merchandising, digital solutions, product and user experience functions. Before that, he was Senior Vice President of Merchandising Capabilities and for 10 years, was part of Target’s technology team.

Recent News

The company had the opportunity to open 23 new locations last year, and according to the company, the new lo-

cations helped set the company apart even further.

Target focused on location when it came to deciding where to open its recent stores. Target has generated a community-oriented feeling throughout its history and these neighborhood locations solidify the company’s dedication to community and unique, discounted shopping experiences.

According to Target, “Each new Target store fits into a community like a puzzle piece, filling its needs while fitting in with its vibe.”

For example, the company’s new store in Katy, TX is 150,000-squarefeet, which is 20 percent larger than the company’s average store. The location features a backroom fulfillment area that is also five times bigger than average, which the company has dedicated to online orders.

In an effort to continue providing convenience to consumers through incorporating various items into the company’s offerings, Target and Apple have continued to collaborate through their shop-in-shops to provide consumers with an entire assortment of Apple products at Target locations. The first Apple at Target shop-in-shops was launched in 2021, but today, the companies have grown their partnership by tripling the number of shop-in-shops.

“For years, Target has been a destination for Apple products,” said Jill Sando, evp and Chief Merchandising Officer at Target. “Now we are excited to deepen our collaboration with Apple so even more guests can access the exceptional Apple at Target shop-in-shop experience. Through Target Circle, our popular free-to-join loyalty program, we’re also giving our guests the opportunity to try services like Apple Fitness+ for free, and with no purchase required. Guests love the branded and immersive retail experiences we’re creating with Apple and other partners including Disney, Ulta Beauty and Levi’s. With this Apple expansion, we’re giving guests even more reasons to choose Target for all their shopping and tech service needs.”

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 2 / GROCERY INSIGHT
Over 37 trillion cells in the body rely on omega-3s to function optimally. Nordic Naturals revolutionized the omega-3 industry with new standards for fish oil freshness, purity, potency, and results. That’s why our Ultimate Omega is #1 in the U.S.† For more information, contact us at fdminfo@nordicnaturals.com or call 800-662-2544. †Based on SPINS Scan Data Choosing the right brand is essential. 37,000,000,000,000 REASONS TO CHOOSE OMEGA-3s FIRST

EXPO West Preview

Specialty Butter

The Natural Products Expo West has been the leading tradeshow in the natural, organic and health products industry due to its continued support of industry leaders and the opportunities presented each year at the show. The expo was founded by New Hope Network with the first show in 1981. There were approximately 3,000 attendees during the first expo and in recent years, Expo West has seen more than 85,000 attendees. This year the show will be taking place from March 7-11 at the Anaheim Convention Center. The expo offers a chance for manufacturers and retailers of all sizes to meet in-person while getting a first-hand glimpse of what trends are fueling the industry.

“This year our goal is to show retailers how many ways butter can be used,” said Niloy Phukan, Epicurean Butter’s Chief Commercial Officer. “So, whether it’s in your bakery for bread, and your meat and seafood as a value add for consumers that are buying fresh meat and seafood, for meal kits with dollops and squeeze packs, and produce with their steamable bags, we are trying to show that butter doesn’t just have to be set in the butter category because flavored butter can be used in so many different ways. We are showing retailers that butter can live in many different parts of the store in many different formats. What that means is that butter fits in that trend of convenience. So, whether it’s a meal kit and you save time at home when you put something in the oven, it cooks, the butter melts and it gives it a ton of flavor. Showing how versatile it can be, flavored butter specifically, because it can be used in so many different formats across the store.”

The company’s objectives for the show surround educating consumers about the growth the butter category can provide multiple sections of the store.

“Our objectives are to showcase the value-added versatility of butter, really to show retailers that it can be used in so many ways and that goes to retailer education around how our butter can be used all over the store,” Phukan said. “We are going to showcase some new flavors this year. We are going to show

some cream cheese; it’s not butter related, but we are going to be launching some cream cheese items in 2023. So, showing that we have some innovation on the flavor side and on the form side and then educating retailers on how premium flavored and premium butter can help drive growth.”

Epicurean has remained a loyal participant of Expo West for not only the opportunity it provides the company but also the industry as a whole.

“Expo West continues to be the No. 1 opportunity for natural and emerging brands,” Phukan said. “It is tough because it has become such a large show, but they have done a good job at having the hot products area that opens a day early and opens a day late, so we will be over in the hot products section. It’s just a great opportunity for brands that are small. It’s not a huge investment to potentially get their name in front of every single retailer. Expo West is the largest show for the natural products industry. You have everyone from Walmart, Costco and Kroger and all the way down to your five-store chains attending because it is that important and that big of a show because you can really see everyone all at once.”

“Flavored butter can be a solution to all their problems,” said Phukan in reference to what retailers should take away from the company’s booth. “Whether that’s a revenue problem or a store traffic, or just providing consumers with something fun, unique and new. Butter can solve those problems. Whether it’s in the meal kit or frozen vegetables, there’s still a top opportunity for consumers and retailers and manufacturers, which is kind of nice about these shows. Even the people walking around that are there for a brand might see something at Epicurean and think ‘Oh, you know this flavored butter would work great with our pasta,’ or something. Just trying to be a solution and show that butter can be used in so many different ways.”

Leading manufacturers such as Upfield have been leaders in the butter category since 1871. The company has remained focused on its brand Flora, which is a spreadable butter alternative

that is vegan and dairy-free. Alongside this, the company has a traditional butter option, which is widely known as Country Crock and is slow-churned in Kansas. While butter alternatives have been increasingly driving growth to the category, Upfield produced ProActive, a butter option for those looking for a healthier choice without sacrificing the taste and texture of butter. The company has several other butter brands that continue to drive growth to retail stores and offer a solution for many different consumer preferences and needs.

“The plant-based food movement has become mainstream as more consumers choose plant-based foods for health or special diet needs reasons, environmental and ethical reasons, or because they simply want to eat more foods made with plant ingredients,” Julia Werb, Head of Shopper Marketing and Consumer Promotions for Upfield North America said previously. “There is a growing segment of consumers who are customizing their dietary lifestyles by adding plant-based foods to their grocery basket.”

Reflecting Epicurean’s goals of showing retailers how butter can drive store traffic and category growth, retailers have begun to notice the increase in not only traditional butter sales but also in subcategories such as flavored, vegan and premium butter options.

“The butter category—butter not margarine—has grown immensely throughout the last couple of years,” said Bob Gettner with B&R Stores. “Plant-based butters were a slow start but have continued to gain traction. With more and more consumers trading to plant-based items, they are looking in all categories for such items. As the category manager for B&R Stores, my stores on a regular basis send customer requests for additional plant-based or non-dairy butters as with so many different dairy allergies arising, they are still wanting to have a butter, without the effects that a dairy-based butter will affect them with. The trend for plantbased butters is still on the rise, and I will actively continue to add these types of items to our stores to give additional choice and options for our customers.”

PG 4 / GROCERY INSIGHT

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

Drives Incremental Category Growth

WWW.EPICUREANBUTTER.COM

Category Analysis

Natural Snacking

Natural snacking remains a dependable, go-to category for busy consumers with the best intentions when it comes to eating healthier. Companies are connecting with shoppers who value convenience, ease of use and above all tempting and delectable flavors when selecting snacks. Consumers have access to snacking options that help ward off hunger pangs and blood sugar swings between mealtimes, through options packed with a balanced amount of nourishing carbohydrates, fats and proteins.

“Natural Delights is invested in growing the Medjool date category by creating natural, wholesome snacks that incorporate Medjool dates instead of artificial sweeteners,” said Bridgette Weber, Trade Marketing Manager at Natural Delights. “Our research and development team is hyper-focused on category trends, so the innovation pipeline will be inundated with winning items in 2023 and beyond.”

“Not only does NatureSweet have the freshest and best-tasting tomatoes, cucumbers, and peppers, but our innovation in packaging has made snacking more convenient for consumers,” said Sergio Trujillo, Brand Manager. “We launched our Cherubs and Constellation To Go Snack Packs in August of last year and they quickly became the No. 1 snack in the category. The To Go container fits in the palm of your hand and contains washed-and-ready-toeat grape tomatoes, perfect for a quick snack. They are delicious, and we’ve made it convenient for consumers to include them in a lunch box, backpack, or gym bag. Consumers e-mail us all the time and share how their kids are finally eating tomatoes because ours are so sweet! We will continue to provide consumers with tasty snacking alternatives that are healthy and hassle-free.”

“We’re also encouraging the snacking theme through our partnerships,” Trujillo continued. “In January we launched a fun campaign called 'Snack Like a Champ' in advance of the Super Bowl. We’re encouraging consumers to include our healthy vegetables in their Big Game spread. When they purchase NatureSweet products, they can enter

for a chance to win a Fanatics gift card and buy sports collectibles. To make it even more fun, we created a digital tomato flick football game where you flick Cherub tomatoes between the goal post, share your high score, and win fresh tomatoes for a year!”

“The key to driving growth in the natural snacking category is innovation,” said Steve Ware, VP and General Manager of Value-Added Fresh for Naturipe Farms. “Innovation requires investment and consumer understanding, which is what Naturipe brings to the table. Natural snacking is growing as we see a shift amongst consumers—especially in the Millennial and Gen-Z age groups —towards a focus on fresh food. Naturipe Farms is always tracking consumer trends to see what will be the next most sought after snack. We’re also constantly creating and thinking of ways to level up our value-added line. By the time a product has launched, we’re already brainstorming the next one. Along with innovation and creation, we also work to ensure that our products are the freshest, best-tasting option in the grocery aisle. As long as consumers keep getting great quality fruit, they’ll continue to snack on our products.”

“In the crowded natural snacking category, it’s imperative that we continue to listen to consumers and create innovative products that meet customer desires,” said Steve Loftus, President and COO of Sun-Maid Growers. “We have some very exciting company and product innovations that we have in the works, with a large focus on continuing to outpace our growth goals. We are a leader in fruit forward snacks that attract consumers of all ages, particularly young families with increasingly growing buying power. As a brand, we will continue to strive to produce better-for-you snacks that don’t sacrifice taste, while meeting consumers where they are."

Weber said a necessary conversation to have with retailers would be about merchandising and how essential it is to provide shoppers with a consistent and convenient place to find Medjool dates and date products in the store. “We offer many merchandising options to re-

tailers and are uniquely positioned to help them overcome the biggest hurdle for dates—placement!" she said. "When it comes to consumers, it’s introducing them to new products, like Truffles and Mini Medjools, and inspiring them with ways to use Medjool dates in their everyday snacking and meal planning.”

Naturesweet is poised to converse with retailers and shoppers about Naturesweet’s role in elevating the category. “Our brand is creating a movement. NatureSweet delivers an outstanding product but more importantly, we’re transforming the industry by empowering agricultural workers,” Trujillo said. “We believe our work is moving the category and industry forward, and we’re sharing our many successes and giving retailers a peek behind the curtain. NatureSweet created an education program for our associates that has had a positive impact on more than 1,500 of them. Some have learned to read and write, and many of them have earned their high school diplomas. Our associates are paid above the minimum wage and they also have the opportunity to earn a transformational wage. We will continue to share what our brand stands for with our retailers. We’re improving lives and communities, which have led to Equitable Food Initiative and Fair-Trade certifications. We’re proud of what we’ve accomplished but also believe there’s more work to do.”

The key takeaway Naturipe wants from conversations with retailers and shoppers is how to best fill the gaps in their demands. “The biggest conversation that we have with both retailers and consumers is finding out what other products we can provide that fulfill unmet needs,” Ware said. “One of the reasons that consumption of fresh fruits and vegetables is stagnant is that we have not provided consumers with enough solutions. They say they want to eat healthy on the go, but what they don’t tell you is they want their snacks to taste great as well. You will continue to see us find solutions that have not really existed previously—like our fresh Berry Parfait, which combines fresh fruit, creamy yogurt and crunchy granola for an all-around balanced snack.”

PG 6 / GROCERY INSIGHT

We hope you had an exciting and productive time at SuperZoo catching up with your fellow pet professionals, making connections with suppliers, sampling a host of new products and discovering strategies to drive success for your business. We don’t know about you, but we’re already hyped to see what next year’s SuperZoo will have in store – catch you there!

EDUCATION: AUGUST 15-16, 2023 MANDALAY BAY | LAS VEGAS, NV WWW.SUPERZOO.ORG AUGUST 16-18, 2023 Me: Need more SuperZoo! SuperZoo: Save the Date.
16-18. MARK YOUR CALENDAR NOW WEDNESDAY - FRIDAY
August

Category Analysis

Frozen Pizza

There is a place for everyone in the frozen pizza category. Whether a consumer is looking for an elevated experience featuring specialty gourmet ingredients or something acceptable for the typically discerning four-year-old pizza fan, the category is vast and its many offerings diverse. Manufacturers are closely watching how the continuing unsteady economy will likely be herding more consumers to their grocery stores’ frozen cases while they figure out how to stretch their household budgets. Pizza makers are ready and waiting to share the ease, appeal and affordability of frozen pizza—a category that is still clearing a way toward growth even as consumers are tightening their wallets.

For Palermo Villa, makers of brands including Screamin’ Sicilian and Urban Pie, the catalyst for that growth is innovation. “We are proud of the fact that we will take chances on innovation because even if a product fails, we can learn from it and maybe turn that idea into something else later on,” said Nick Fallucca, Chief Product and Innovation Officer. “We launched our Screamin’ Sicilian brand back in 2013 when the craft beer market was hot. We thought: ‘why not make a premium craft pizza to pair with those unique beers?’ The brand sticks to classic flavors with premium ingredients but also introduces innovative flavors and ideas like bratwurst slices and onions, orange chicken or beer infused crusts.”

Similarly, “Our Urban Pie brand launched three different vegetable crusts in 2019 and hemp seed infused crusts in 2020,” Fallucca continued. “We have a brand promise of unique flavors and being ‘Committed to Good,’ meaning that every pizza is made using thoughtful ingredients including rBST free cheeses, antibiotic free meats and no artificial colors, flavors or preservatives; today, Urban Pie is one of the leading frozen pizza brands in the natural channel.”

Innovation is also the name of the game for Rustic Crust. “We launched our new grilled and seared line of frozen woodfired pizza,” said CEO and President Brad Sterl, who also oversees the American Flatbread brand. “This prod-

uct takes the guess work out of grilling pizza. Just bake for seven to 10 minutes and you get the grilled pizza that you wanted. We are also continuing to work on some smaller format pizza that will launch in later 2023.”

In Rustic Crust's endeavor to deliver to consumers what they want in terms of convenience and/or flavor options, the company hasn’t lost sight of its authenticity, said Sterl. “We honor the traditions of craft baking, fresh inspired toppings produced by real people,” he said. “American Flatbread has maintained its commitment to clean ingredients—non-GMO and sensible organic ingredients. In addition, our commitment to sustainability continues to be top of mind as we grow.”

Bernatello’s Foods’ adherence to quality while serving the special dietary needs of consumers is helping to grow the frozen pizza category, said Matt Selvig, Advertising and Promotions Manager. “We pride ourselves on quality and believe that when consumers get a product that they’re confident in, that is consistent, and that is of high quality, that they’ll continue to come back and purchase that same product time and time again. So that’s one step that we’re taking to ensure that the category continues to grow. But another is striving to be innovative and creative with new product launches that’ll meet the needs of an ever-changing consumer base. With many dietary restrictions and palate preferences, producing products that can reach and satisfy as many potential customers as possible is our challenge. But through thinking outside of the proverbial frozen pizza box, we feel that we’re making strides to keep with the trends and continue to help the category thrive.”

Meanwhile, Flatlander Foods has taken a different approach to frozen pizza with a strategy tied closely with iconic children’s brand Chuck E. Cheese. While many consumers think of Chuck E. Cheese as a kid-friendly restaurant and arcade ideal for children’s birthday parties—and they still are with more than 500 locations worldwide—the brand entered into the grocery channel with its frozen pizza offerings in 2021,

said Flatlander Foods Founder and CEO Eddy Patterson. The move was driven as pivot to the limitations placed on restaurants at the height of the Covid pandemic. “That’s when they came to Flatlander and we were able to form a partnership,” he said. “For us, it’s a natural progression of the brand. It’s not really starting from a net zero and trying to create something from nothing. The brand is established with its 40-year history; there’s a large consumer base, obviously, and so having the brand now offer an in-home experience is really exciting to capture another occasion where families are enjoying pizza.”

What’s most notable about Chuck E. Cheese’s frozen pizzas is that they’re not complex. “Cheese and pepperoni,” said Patterson. “That’s your block and tackle. That’s your North Star. That’s what kids want to buy. And kids 4 to 14 years old represent the No. 1 and No. 2 age group by consumption.”

While there are potentially new toppings options coming down the pipeline, Patterson noted the Chuck E. Cheese formula works for families and for grocery alike.

“When you look at Chuck E. Cheese, it’s a fun brand, it’s inspirational, it represents diversity," he said. "It also represents family values. Those are important for consumers today. And when you have a brand as powerful as Chuck E. Cheese, we’ve seen consumers will pay more for a brand and they’ll be more loyal to a brand that they identify with or believe in.”

Frozen pizza makers are hoping retailers are taking notice of consumer spending evolving to ensure their frozen pizza offerings can meet demand.

“As consumers are more and more budget conscious in the current economy, we want retailers to consider their frozen pizza sets,” said Fallucca with Palermo Villa. “Consumers can get high quality frozen pizzas that are often better than pizzerias or carryout for a fraction of the price. That is a benefit to retailers, keeping dollars in their stores versus consumers choosing to spend their dollars in restaurants and for carryout.”

PG 8 / GROCERY INSIGHT
Exclusive Licensee for Chuck E. Cheese Frozen Pizzas info@flatlanderfoods.com INSPIRED BY THE WORLD-FAMOUS PIZZA ...to be enjoyed by familes at home! © 2023 CEC Entertainment Concepts, L.P. All Rights Reserved.

Category Analysis

Seafood Soups

Nothing quite hits the spot on a cold, blustery winter’s day than a piping hot cup of chowder. According to some category leaders, the seasonal appeal of seafood soups this year is further compounded by the fact that as household budgets tighten due to continued economic uncertainty, consumers are foregoing pricier luxuries like meats in favor of meal solutions featuring hearty and nutritionally balanced soups. Factor in the perceived extravagance of ocean-fresh seafood—at least from the perspective of most landlocked consumers—and seafood soup suppliers have a win-win situation on their hands to grow the category, assuming Mother Nature plays along.

“In difficult economic times, soup has a halo effect,” said Bob Sewall, Blount Fine Foods’ evp of Sales and Marketing. “It’s healthy, it’s comforting, and it also fills you up, so in these tough economic times you’ll find that people will skip the more expensive proteins and buy soup and salad, soup and sandwich, those kinds of things to feed their families, so it really grows during these tough economic times.”

Blount Fine Foods’ history stretches back more than 100 years and presently, its wholesale operations are diverse. The company also carries two of its own lines for retail: Clam Shack and Blount Family Kitchen. In assessing the category of seafood soups, Sewall said Blount helms the direction of the category. By virtue of its history, “we created that demand, so obviously because of our other brands like our Panera Bread soups, our private label business we do, as well as our own Clam Shack and Blount Family Kitchen brands, we’re typically the category manager, so that’s really been very helpful, and we’re helping our customers sell more soup.”

Presently, a lot of that help comes as bundling to help consumers find more value in their purchases.

“Buy this, get this,” explained Sewall. “We’re bundling our products together to create a family meal, so we’re trying to help our customers put two or three items in the basket versus just selling more on sale. I believe that’s what

consumers are looking for. We typically work with our customers to sell soup and salad, or soup and sandwiches. Consumers are looking for great quality and great value.”

This is a strategy that is also embraced by Boston Chowda, a brand under Plenus Group, Inc. Though Plenus has expanded its repertoire of value-added specialty frozen foods since its founding in the late 80s, it traces its origin to its New England clam chowder first served at Boston’s famous Faneuil Hall Marketplace. In its protocols and procedures distributed to customers of its hot soup program, the company advocates this method of upselling: “Have your counter people inquire if the customer is interested in trying the soups. Once they’ve tried it, you can be sure that they will tell their friends. Cross merchandise with other items. What goes better with a soup than a nice sandwich, and vice versa?”

Meanwhile on the retail end, Blount continues to offer options for value-hunting shoppers.

“We have two seafood lines, both under the Clam Shack brand, and one is a frozen item which is a bag and a cup that is primarily sold in seafood departments—seafood markets, and so forth—and that’s new this year for us,” Sewall said. “And also, we have a fresh 30-oz. bag and a cup which has been out for two plus years. Our Clam Shack brand is the third largest soup brand in the country—not just seafood but any soup. That’s a pretty good achievement.”

Consumer appetite for good quality seafood soups has never wavered, but they are typically hard to create at home, which is another advantage that these manufacturers have in ensuring a returning consumer base.

“In today’s landscape, it’s hard to find food you can trust,” said Liam McClennon, CEO of Kettle Cuisine. “Rare to find impeccably sourced ingredients, slow-simmered bone broths, delicately sautéed meats and vegetables and a commitment to finding that just-right taste. Kettle Cuisine’s business has been built upon a belief in honest, quality

products and an unwavering commitment to the artful process of making real food that our customers can feel proud to serve to consumers. Our kitchens have gotten bigger, our teams have grown, and our product offerings have expanded. What hasn’t changed is the privilege we feel in delivering truly artisan products at scale, providing wholesome, honest food to tables across the country.”

More practically, “[Home cooks] typically don’t have the ingredients to make them at home,” Sewall said. “Not a lot of people have lobster bodies laying around to make their base, and it’s pretty hard to get fresh sea clam meat, things like that, so we take all the guess work out of it for them. That, and quality. Most of our customers will tell us, even in food service, they can’t make their seafood soup as good as we do.”

It’s an enviable position to be in to have that built-in demand, but manufacturers like Blount remain vulnerable to supply side interruptions, even with a company mission to source only from North American waters.

“Our seafood suppliers are the last of the hunter-gatherers,” said Sewall. “So diesel costs, labor shortages, so forth and so on, have made it very difficult for them but we’ve been working closely with them to make sure we have the supply. We’re pretty proud of our association with these vendors because they’ve not had it easy.”

Everyone also has one force to contend with, beyond any economic indicator’s control: Mother Nature.

“Weather is something you always struggle with,” Sewall said. “These guys are fishing so you hope for nice, mild winters and not-too-windy springs and summers, but it’s been good. It’s something you don’t take for granted anymore. You work closer and harder and make sure you have the ingredients.”

In the end, Blount Fine Foods keeps its eye on a fundamental truth about seafood soups, said Sewall.

“The basis of a successful soup program for our customers is just quality, providing their customers with great quality and a fair market price.”

PG 10 / GROCERY INSIGHT
Proudly manufactured by Blount Fine Foods Land o sea, We got you covered. To learn more visit blountfinefoods.com

Category Analysis

Greeting Cards

Amidst the TikToks, memes and YouTube shorts that are able to convey all nuances of mood, reactions and humor—and so easily shared with a simple swipe of the finger—the lowtech act of choosing a meaningful card, hand-writing a heartfelt note and sending it to someone with a purposeful intent to form a connection may seem downright tedious. Yet consumers are proving they value the timeless tradition of putting pen to paper—or card —and conveying well wishes, condolences and all manners of sentiment in this way that requires no internet connection. Greeting card styles have clearly evolved in modern times thanks to category leaders that are putting resources toward understanding today’s most influential demographics so that they can keep options current, appealing and well-aligned with the values of modern-day shoppers.

“Hallmark knows it’s imperative that we evolve to meet the diverse needs of today's consumers,” said Amy McAnarney, VP and General Manager, Strategic Accounts and Business Development. “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 multicultural and multi-generational consumers.”

Among Hallmark’s initiatives are the inclusion of themes surrounding the importance of faith, family and home, said McAnarney. “Timely and topical content is an expectation, especially for African-American and Hispanic-American shoppers who see themselves as an early adopter of trends,” she said. “Younger generations are looking for messages that reflect their own values—kindness, generosity, inclusiveness, importance of making a difference and putting good out into the world.”

Younger generations are also often pop culture enthusiasts, and Hallmark’s extensive portfolio of licensed properties are an advantage. “Hallmark is leaning into cards and collections that help people connect based on characters, stories, interests, and identities they have in common through pop culture,”

said McAnarney. “We’re incorporating trending characters and shows, like Schitt’s Creek, Ted Lasso and Stranger Things.”

Meanwhile, “Humor is a popular style that connects across generations,” McAnarney added. “Hallmark Shoebox, the No. 1 humor brand, is introducing new, timely designs and subject matter, including infographics, fresh lettering, meme-inspired photos, 3D papercraft, and more.”

The continued innovation in greeting card styles and messages is possible because there is a sustained demand. “The most exciting thing about the industry is that it is still thriving!” said Designer Greetings CFO Dawn Garvey in December. “While many people are streaming their media and the world seems to be pointing in a more digital direction, greeting cards remain a tactile purchase that people gravitate toward. People spend time browsing and selecting the perfect card—a gratifying break from scrolling feeds on their digital devices. Designer Greetings is always updating our existing product with fresh, new designs to stay on top of the latest trends. From an innovative and creative team of designers to reliable shipping and distribution practices, we don’t foresee a shortage of cards anytime soon!”

Designer Greetings has done the work to ensure it will remain a reliable supplier for its partners. “With more than 23,000 Everyday and Seasonal greeting cards, as well as our acclaimed giftwrap and stationary lines, we pride ourselves in always having the perfect card for every occasion,” Garvey said. “Having the forethought to stock a full warehouse ready to ship to our retailers kept our company driving forward, even in uncertain times. To further navigate any outside challenges, we broke ground on a new warehouse complex next to our headquarters, now encompassing more than 200,000 square feet, ensuring that we will continue as the reliable gold standard of service in the greeting card industry.”

Supporting the industry is the Greeting Card Association (GCA), which has been doing so for more than 80 years, according to Executive Director Nora

Weiser. “Recognizing grocery as an important retail outlet for greeting cards, GCA has actively included grocery buyers as partners in our community. For example, each year GCA’s Pitch Program gets brands in front of buyers for a Shark Tank-style opportunity to pitch their cards, and in 2022 Meijer participated. In addition to Meijer, we’ve also invited grocers like Wegmans and H-E-B to participate in our events.”

GCA drives growth in the category by providing members with the tools they need to innovate and grow their businesses, Weiser said. “As the industry’s nonprofit trade organization that means offering education, keeping members abreast of trends, celebrating creativity through our annual Louie Awards program, and giving members a chance to get in front of buyers and retailers at *Noted: The Greeting Card Expo and through our *Noted Villages at leading industry events like the Atlanta Market and NY NOW. Covid’s closure of non-essential businesses led to the dramatic growth of greeting card sales in the grocery channel during the peak of the pandemic. GCA has been educating members on how this has created opportunities to retain those higher levels of sales by partnering with grocery merchants with new merchandising, product, and marketing solutions.”

The organization has also opened new networking opportunities. “Keeping greeting cards front and center for retailers is key, and one way we do this is by inviting them to attend *Noted: The Greeting Card Expo,” Weiser said. “In 2020, we also expanded our association’s membership to welcome retailers as members, allowing them direct access to makers and their products through networking, events, and educational offerings. Consumers look to social media for trends, so we maintain an active Instagram presence as do our members, to display the vibrancy of the greeting card industry. Our annual Thinking of You Week event raises awareness of the value of sending cards and encourages consumers to send cards during a time of year when that otherwise might not be top of mind.”

PG 12 / GROCERY INSIGHT

INDUSTRY CALENDAR

Upcoming Grocery Industry Events

1. Natural Products Expo West March 7-11, 2023

Anaheim Convention Center Anaheim, CA www.expowest.com

2. Sweets & Snacks Expo

May 22-25, 2023 McCormick Place Chicago, IL www.sweetsandsnacks.com

3. IDDBA Show

June 4-6, 2023

Anaheim Convention Center Anaheim, CA www.iddba.org

4. Natural Products Expo East Sept. 20-23, 2023

Pennsylvania Convention Center Philadelphia, PA www.expoeast.com

5. NFRA Convention

Oct. 7-10, 2023

San Diego Convention Center San Diego, CA www.nfraconvention.org

6. The Global Produce & Floral Show

Oct. 19-21, 2023

Anaheim Convention Center Anaheim, CA www.freshproduce.com

7. PLMA Private Label Trade Show

Nov. 12-14, 2023

Donald E. Stephens Convention Center Chicago, IL www.plma.com

PG 14 / GROCERY INSIGHT
Publisher/Editorial Director Davis Johnson djohnson@executiveinsightproperties.com Editor Katie Murdoch kmurdoch@executiveinsightproperties.com Circulation Director James Anderson janderson@executiveinsightproperties.com P.O. Box 2067 • Issaquah, WA 98027 • 425-497-0950 February 2023 4 6 2 1 3 7 5
NATURA SWEE ATURRA W E E ALLY ET T d o try it in c ebr h f ll s an a a a e ee or t offe y st an akfa ot jus s n It’ e d f e weeten l s atural-n e...ymor or st fo andon WWW va pes a eci e r Mor nicecreamforthe W.ANDERSONSMAP . ble at: ail ae. perfectsun e PLESYRUP.COM
you’ve
over
in
Since 1928
When
spent
90 years
syrup... tradition tends to stick.
MAY 22-25 2023 MCCORMICK PLACE Chicago, IL SweetsAndSnacks.com Actionable INSPIRATION It’s About More Than New Products. At the Sweets & Snacks Expo, inspiration goes way beyond exciting new product debuts. The show brings together leading industry experts to offer big-picture insights that help attendees predict shopper trends and stay one step ahead of their competition.

Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.