November 2023 Grocery Insight

Grocery Insight November 2023

The 2023 Category Catalysts Series

Inside • Special Report: BJ's Wholesale Club 2 • Special Report: NACS Takeaways 4 • 2023 Category Catalysts: Soups 8 • 2023 Category Catalysts: Surimi 14 • 2023 Category Catalysts: Dessert Decorations 18 • 2023 Category Catalysts: Licorice 20

Special Report BJ's Wholesale Club

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ith 238 clubs and 168 BJ’s Gas locations in 19 states, BJ’s Wholesale is presently the leading operator of membership warehouse clubs in the eastern United States. The company shows no signs of slowing down, announcing its plans to expand its retail footprint into its 20th state, Alabama in March. Tennessee was its 19th state with the first club location that opened in Nashville in June. Along with physical growth, the company continues to invest in better efficiencies in its operations and give back to its communities.

History: The company began in 1984 as a discount department store chain known as Zayre. While the name BJ’s was purportedly named for Beverly Jean Weich, the daughter of Zayre owner Mervyn Weich, BJ’s Wholesale Club in its current iteration came about after a number of changes including resignations, sales, spin-offs and consolidations before it was acquired by Leonard Green & Partners and CVC Capital Partners in 2011 and then returned to public markets in 2018.

Members today can take advantage of a number of member pricing discounts on home items along with assorted special services like car rentals and vacation packages. BJ’s touts that members save up to 25 percent off grocery store prices, they can shop risk-free with a money-back guarantee, and BJ’s is the only warehouse club that accepts manufacturers’ coupons. BJ’s locations feature name brand items along with the company’s own private label brands: Berkley-Jensen and Wellsley Farms.

Given the changing shopping landscape of recent years, BJ’s Wholesale has stayed on par with peers in offering many convenient options including buy online, in-club pick up, curbside pickup, same-day delivery and digital coupons.

When shopping in-club, members also have access to ExpressPay through BJ’s mobile app, a service that allows shoppers to scan products as they go and avoid the checkout line at the end of their trip.

Expansion: While BJ’s currently operates 238 clubs in the US, the company has set its timeline to open its 244th club early next year in Goodlettsville,

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TN. The Goodlettsville location marks the third BJ’s location in Tennessee; the first opened in La Vergne this spring and the second was expected to open in Mt. Juliet by year’s end.

“We’ve seen tremendous demand in Tennessee for the unbeatable value and member benefits our BJ’s model delivers and are thrilled to continue to bring BJ’s incredible savings to more families within the state,” said Bill Werner, evp Strategy and Development, BJ’s Wholesale Club. “We’re excited to open our club doors and welcome the Goodlettsville community in early 2024.”

The company’s ambitions in Tennessee hint at its overall expansion plans for 2023. In March, BJ’s had already announced plans for a new club in Madison, AL; Johnson City, NY; Lewis Center, OH; and North Jacksonville, FL. These are on top of the two clubs that had already opened in Davenport, FL and McDonough, GA in February. The Davenport location marked BJ’s 36th location in the state, and this year’s growth puts BJ’s in a total of 20 states.

“We are always striving to bring our BJ’s membership model to new markets and even more smart-saving families,” said Werner. “We have seen tremendous success with our newest openings. Our expansion into Tennessee and Alabama shortly thereafter is a great example of our efforts to meet the demand for the value, convenience and assortment that BJ’s has to offer its growing member base.”

Leadership: Current President and CEO Bob Eddy assumed his position in April 2021 following the unexpected death of then CEO Lee Delaney. Eddy first came to BJ’s in 2007 as Senior Vice President of Finance. He was serving as evp Chief Financial and Adminstrative Officer when the company board appointed him interim CEO and then permanent CEO following Delaney’s passing. This May, the board also appointed Eddy as Chairman of the Board. He followed Chris Baldwin, who remains on the company's board of directors.

Recent hires to BJ’s leadership team include the addition of Anjana Harve as Chief Information Officer in September.

Harve previously served as Global CIO

at Fresenius Medical Care where she led information technology, privacy assurance, cyber, digital and data security across key business units. She also held various CIO and technology leadership roles at Hill-Rom, Novartis and Shire, along with other senior management positions.

Meanwhile, Laura Felice is Chief Financial Officer for the company. She previously served as Senior Vice President Controller. Felice held senior positions at Clarks Americas, prior to coming to BJ’s Wholesale Club. Paul Cichocki is evp Chief Commercial Officer overseeing merchandising, assortment planning and allocation, membership, marketing and analytics. Jeff Desroches is Chief Operations Officer and leads all operations, club team members, regional field staff, asset protection and transportation and logistics at the company’s clubs, distribution centers and fuel stations.

Outreach: BJ’s is a longtime partner of Feeding America and the Feeding America network of food banks, and through the course of its partnership has provided more than $8.5 million in grant funding and more than 122 million meals to local families. In 2023, BJ’s Charitable Foundation has committed more than $1 million to supporting Feeding America’s mission to end hunger in the US. For more than a decade, BJ’s Charitable Foundation’s funding has supported food insecurity programs, Covid response and emergency relief efforts.

Additionally, BJ’s clubs and distribution centers have provided millions of meals to local families in need with donations of unsold fresh food through BJ’s Feeding Communities program. According to the USDA, 1.2 pounds of food is equivalent to one meal.

From improving efficiencies to committing to inclusion and diversity by establishing a structure of corporate governance to support the achievement of its goals, BJ’s is demonstrating a stalwart resolve to be a 21st century company, guided by mindful and sustainable growth to meet the needs of today’s customers as well as those of future generations.

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Special Report NACS Takeaways

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ACS has become the foremost worldwide trade association devoted to promoting convenience and fuel retail services. According to the NACS, there are more than one million convenience stores in the world with 150,174 in the US. The association allows for leaders within the industry to meet face-to-face to share insight, strategies and product offerings. Looking at some leading companies that participated in this year’s event, many outlined each of the company’s goals for the tradeshow.

“Our goal at NACS 2023 was to heighten awareness and win new business for Bake’n Joy’s new premium quality, no labor, thaw-and-serve muffins!” said Jayne Kearney, Director of Marketing with Bake’n Joy Foods. “They were a big hit! These 5 oz muffins are sized for the convenience channel and require no labor, for the ultimate in convenience!

They are available in four popular flavors and come with toppings already applied: blueberry with sugar topping, double chocolate with chocolate chips, cinnamon coffee cake with cinnamon streusel and chocolate chip topped with chocolate chips. There are 24 muffins per case. In addition to showcasing these new, high quality baked muffins, we also featured our large, 6.25 oz predeposited muffins and 4.25 oz predeposited PanFree lines as well. The sturdy PanFree liner keeps the muffin’s shape during baking so there is no need to buy—or clean—muffin pans!”

“Treat Planet continues to educate c-store retailers on the immense opportunity for pets in their locations,” said President Doug Martin. “70 percent of their customers have a dog and are looking for quality grab-and-go treats.

Retailers walked away from the Treat Planet booth understanding the options available to them to capture a piece of this multi billion-dollar industry.”

“At NACS, Fiorucci Foods was excited to introduce several new flavors in their single-serve and on-the-go snacking assortment," said Shawn Munck, Director of Marketing at Fiorucci Foods. “With more stores gravitating toward elevated convenient snacking, Fiorucci Foods' offerings are a perfect fit. We’ve invested

a great deal in understanding the convenience, on-the-go-focused shopper and tailoring our assortment to their demands. Fiorucci features a variety of solutions to make on-the-go snacking more convenient, without losing the premium approach that consumers are demanding.”

“This year was the first year Kenny’s Candy & Confections has gone to NACS with a new product soft launch!” said a spokesperson with Kenny’s Candy & Confections. “Our new Wiley Wallaby Minis in our Classic Red and Watermelon flavors, along with our Sourrageous Drops were presented in Share and Count Good Sizes. With the show's intense focus on convenience stores, we knew this would be the perfect place to share these offerings. The new retail points and caddies for these SKUs allowed us to expand conversations with buyers who may not have had the space for Wiley in the past. We’re also confident that these items will drive trial and incremental sales without jeopardizing the larger soft and chewy offerings from Wiley Wallaby.”

“We had clear goals going into this year’s event,” said German Reyes, Director of Sales National/International Accounts at Rudolph Foods. “We really wanted to highlight the brand portfolio that we have. We wanted to show we have a product that fits every consumer demographic out there. So, when we set up our booth, we wanted to highlight the variety of flavors and brands Rudolph Foods brings to the table. That was a major focus and goal of ours.”

As the NACS hosts this annual event, the association has been able to find the best way to support its exhibitors and attendees. “NACS does a great job each year hosting this very large industry event. The foodservice segment seems to be growing exponentially each year, which is supported by Technomics which found foodservice visit frequency returning to pre-pandemic levels,” said Kearney. “Also, consumption of prepared foods versus home cooked meals is believed to be more of a shift in consumer purchase behavior versus a trend, particularly among younger de-

mographics, making them the segments to watch when it comes to product innovation. Savvy convenience store operators came to the show to find novel products that will keep customers coming back. A bakery program featuring premium quality muffins from Bake’n Joy, whether no-labor, fully baked or freezer-to-oven simplicity, were on the mark at this year’s event!”

“I think the NACS did well,” said Reyes.

“I would say that over the years, it has been like an accordion as it relates to attendees. One year it’d be really strong, the other year it’s not so strong, but they have done a good job to try to connect us with the retailers that go to the show and vice versa. So, I will say that I’ve been impressed with NACS and how they’ve supported us with our goals.”

Moving the lens closer to gain a better perspective of the first-hand experiences companies had at the show, these leaders mentioned what they took away from the event and where they see the convenience store industry is headed.

“As a manufacturer of premium baked goods, the perfect +1 to any beverage program, it was exciting to see such a wide array of beverage equipment innovations, particularly in the coffee segment, whether hot, cold brewed, iced or frozen. Having a counter full of air pots seems to be a distant memory as one piece of coffee equipment can seemingly make any size, type and style of brew at the push of a button or two!

Bake’n Joy will continue to develop bakery innovations that meet consumer demand for great taste and high quality across all snacking dayparts,” said Kearney. “Foodservice sales within the convenience channel are well poised for growth due to consumers having less disposable income to dine out, compounded by significant restaurant price increases and an overall desire to make fewer stops. In this economic climate, ‘convenience’ wins.”

“C-store customers today continue to meet the needs of convenience and healthy products that today’s consumers desire. Dog treats has grown 18 percent in c-store this year meeting these needs,” said Martin with Treat Planet.

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.

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Insight's annual Category Catalysts 2023 Grocery series honors exceptional suppliers who have been driving incremental growth in Category their categories. These remarkable companies are working with their retail to deliver solutions that fill a void Catalysts partners and resonate with shoppers. This year,

suppliers further demonstrated their commitment and loyalty to retail partners by providing open communication and ensuring consumers could find what they need in stock. Their product lines help to enhance physical and digital aisles in addition to improving the shopping experience both in-store and while shopping those retailers’ company websites.

Recovery Beverages: Electrolit

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n response to increasing demands for better-for-you options in the fitness and recovery beverages category, Electrolit leads the category by integrating pharmaceutical, quality-grade ingredients across its flavor portfolio. While water is the tried and true remedy to prevent dehydration, Electrolit is teaching consumers there are fast-acting, impactful solutions to replace electrolytes and nutrients that are lost during exercise. Another perk is how recovery beverages don’t undo consumers’ hard work with superfluous carbohydrates.

“Specifically, we use real glucose—a simple sugar—as the vehicle to rehydrate the body’s cells faster,” Sr. Marketing Director Jake Sloan previously explained. “But, the added benefit of using real glucose is that it assists with the absorption of electrolytes and is less of a strain on the body’s digestive systems.

This is the foundation that sets us apart and consumers know that the product they are getting is quality and the hydration will be reliable.”

“In addition to our heritage of using pharmaceutical quality-grade ingredients as a way to create a better-for-you

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product, we are also answering consumers’ demands for the use of less sugar by offering three zero-sugar options,” he added. “There are numerous other powerful consumer demands out there that we are actively researching in order to develop the most premium answer to consumers’ hydration needs.”

Electrolit credits itself for creating the “rapid hydration” subcategory of sports drinks. “We have re-energized growth in the sports drinks category as a whole,” Sloan said. “Right now, we are the fourth largest dollar volume contributor to the sports drinks category. We have consistently posted double-digit growth, year-over-year, in the past five years—something that nearly no other top-five sports drinks

brand can say. To put it simply, we are the consistent growth leaders and have no plans on slowing down or stepping out of this leadership position for many years to come.”

“The recovery beverage category is trending toward products that work effectively and fast,” said Sloan. “Even more, the quality of ingredients and flavor of our products are not sacrificed for that fast and reliable efficacy. Simply said, consumers want their products to work fast, taste great and be better for them. That is Electrolit’s promise and why we have risen to become a top five dollar volume brand in the category with the most consistent dollar volume growth over the past five years.”

“We will continue to see an evolution towards even more targeted and specialized offerings that deliver tangible benefits,” he continued. “In addition, demand for functional beverages and instant hydration is no longer just coming from athletes or sports personalities.

Performers, artists, party-goers and everyone in between want scientifically formulated hydration that they know is going to be effective and good for them.”

Scientifically formulated to work faster.

2023 CATEGORY CATALYSTS

Soups: Blount Fine Foods

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ne of the many reasons Blount Fine Foods leads the soups category is the company’s stance that quality doesn’t end with its products. Rather, the company measures levels of standards as it applies to its customer service with retail and foodservice partners, providing partners with insights and guidance to help them make sales and holding the line where ingredients are involved.

“I’ve been saying the same thing selling soup for 35 years: quality wins,” said evp of Sales and Marketing Bob Sewall.

“If you continue to produce great quality products, you’re going to have great quality sales. Our focus has always been on the best ingredients, the best cooking procedures, the best chilling procedures so you get the most shelf life and also we are good because we are a deli fresh food supplier; we are very good at getting the soup to our customers.

Quality comes in a lot of different ways.

It’s not only the quality of the actual product, but it’s the quality of your cus-

tomer service, it’s the quality of your logistics. Our customers rely on us to increase their sales. A lot of people call that pressure; to me, I call that good business. They have the ability to dial up your cell phone to say: What’s next?

What’s going on? How do I win? That’s a good problem to have.”

“I told my customers all the time, if we’re just shipping you soup, we’re not doing our job,” Sewall said. “That’s step one. Our relationships are three decades old. Whether it’s Wegman’s, H-E-B, Publix, Walmart, it’s multi-decade relationships. As you know in the food world, you’re only as good as what

you’ve accomplished lately. We’re pretty proud of our customer service, our relationships with our customers.”

He also attributes the changing seasons and chillier temperatures in the transition to fall that motivates consumers to crave bowls of hot soup—either savored on its own or paired with a complementary sandwich, salad or pot pie. Another growth driver, naturally, is flavor and packaging innovation.

“Our Blount Family Kitchens and Blount Clam Shack soups are offered in our 24 oz and is also adding to the incremental growth,” Sewall said. “We launched a Mexican sweet corn Panera Bread soup in 16 and 32-oz so that’s been a welcome addition to the line. The category is going to grow another 55 percent over the next four years. This is a great category to be in.”

There is still a runway to raise awareness and promote the category. “Only 32 percent of shoppers even know fresh soup exists in stores, so the upside is tremendous,” Sewall said.

sights informally and formally [through] suppliers summits,” she said. “That enables us to come to the table with solutions that resonate with their customers.”

Increasingly, those solutions hover around supporting healthier lifestyles.

“Consumers have access to more information than ever before,” Owens said.

“That allows them to pay close attention to their diets, balancing macronutrients to meet their specific lifestyle and what works for their bodies. They are looking for snacks that balance flavor, texture and nutrition. Our strategy is to start from a healthy base like low

carb pork rinds, non-GMO tortilla chips and high volume/low density puffed snacks, each of which speak to a particular lifestyle. Then, generously season our snacks with delicious flavors so our consumers don’t have to sacrifice taste for health.”

Benestar Brands’ resolve to continue delivering tasty and better-for-you snacking options has been tested with pricing challenges in recent years, but the company is guided by strong leadership, she said. “Our CEO Bruce Myers has created a culture based on D.N.A. —decisive, nimble and aggressive,” Owens said. “He expects all employees to act as business owners. The result is an organization that is pulling in the same direction when it comes to innovation, quality and a sense of urgency. Our mission is simple: to provide a great return for our shareholders while bringing to market snacks that are delicious and help our consumers feel good about what they are feeding themselves and their family.”

Salty Snacks: Benestar Brands

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hips, pretzels and assorted nuts along with crackers may have long dominated the salty snacks segment of grocery, but there remains much potential to expand the category. Benestar Brands is securing its position as a leader in salty snacks by continuing to identify and pursue opportunities to bring novel, widely appealing and increasingly better-for-you choices to consumers.

“Our strategy to creating incremental growth is to identify whitespace in the category,” said CMO Shundrikka Owens.

“Then develop outstanding products and packaging that close the gap. One example is the launch of Las Ricas. Las Ricas is a line of puffed wheat, corn and potato snacks, richly seasoned with flavor profiles that Hispanic consumers love but appeals to all consumers.”

Keeping a clear line of communication with retail partners open and active is crucial to the brand’s innovation strategies. “Our retail partners do an incredible job of sharing their vision, goals and consumer in-

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24 OZ

GRAB & GO CUPS

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2023 CATEGORY CATALYSTS

Sausage: Pederson's Natural Farms

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ooking at category growth through the course of 2023, Pederson’s Natural Farms has outlined the company’s strategy for creating incremental growth both within the sausage category and for its retail partners.

“As folks move more toward natural and humanely raised foods, we try to promote our standards along with entering a new category of snack meats with our pickled sausage,” said Ben Warren, Retail Marketing Manager for Pederson's Natural Farms. “Some of our partners have provided critical data and wider exposure for our products, which has helped us make more informed decisions on targeted marketing and possible partnerships.”

The company’s ability to continue to provide solution-based products to support and meet consumers' needs has been a key reason Pederson’s consumers remain loyal to the company.

“As the economy continues to struggle, we find people recede back to their old standbys and move away from the

more exotic flavors. If people are going to pay a premium for their products, they want it to be versatile and easy to work with. That's why we continue to see growth in breakfast and smoked sausages,” said Warren.

Looking at some of the challenges many companies have encountered this year, Warren acknowledged the various ways the company has been able to overcome them.

“The economy and the related buying decisions of consumers keep us on our toes. Being a steady partner that's vertically integrated allows us to be flexi-

ble and helps us ensure our partners’ shelves are full,” said Warren. “With the integration of [CA] Prop 12 and MA Question No. 3 our quality standards and integrity have become more important than ever. The consumer and lawmakers are telling us that standards are important to them, which keeps us motivated.”

As economic challenges have been impacting companies throughout the course of the year, Warren previously mentioned, “With the current economic situation, the conversations focus around keeping costs low and keeping consumers interested in a premium product. Additionally [we are] streamlining shipping to keep that cost down as well. As is the entire natural consumer packaged goods world, we are trying to find creative ways to keep input costs low while keeping our product and mission’s integrity. Our vertical integration allows us to minimize cost increases that are passed on to customers and consumers.”

mini cup!” said Murray. “This delicious, better-for-you item is made of real Hass avocados, chopped hard boiled eggs and lightly blended with Everything Seasoning. These avocado and egg mini cups are perfect for those who want the health benefits of avocado and egg without all of the work. There are three flavors: Everything Seasoning, Spicy— Crushed Red Pepper and Spinach, Onion, Tomato. We are launching these items in January throughout the Southeast region of Costco.”

Meanwhile, Yo Quiero! is continuing to maximize the opportunity within the popularity of avocados. “Avocado

consumption continues to rise, so we see that consumers are continuing to look for convenient ways to enjoy avocados,” Murray explained. “Yo Quiero!’s guacamole is the perfect blend of Hass avocados, veggies and spices, and the product is always ripe and ready to eat.

Also, we’ve seen consumers' tastes are trending toward spicy, so we took our popular Chunky guacamole and made a spicy version called Chunky Spicy. This flavor is flying off the shelves,” she said.

Yo Quiero!’s successes this year have led to some growing pains, which Murray admits “is a great challenge to have.

Our products are resonating with consumers and retailers, and we look forward to continuing our sales growth with the introduction of our Avocado & Egg as well as other items we have in the pipeline,” she said.

Moving forward, Yo Quiero!’s growth strategy remains rooted in its mission to bring freshness and great taste to consumers. “We strive to innovate and bring to market excellent products that make us proud,” she said.

Guacamole: ¡Yo Quiero!

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vocado consumption overall continues to rise along with consumers’ desire for better-for-you food options. As an innovator in the guacamole space, Yo Quiero!’s vision goes beyond mashing avocados to reinventing the dips category; it is about marrying fresh ingredients and outside-the-box thinking in order to keep selections exciting for consumers and sales ringing for retail partners throughout the year.

“Yo Quiero!’s brand strategy this year and beyond, is to develop innovative avocado and guacamole products that will create excitement at retail,” said Tara Murray, VP of Marketing. “As leaders in the dip category, we feel it’s necessary to continue to innovate and provide consumers and our retail partners with delicious, better-for-you options. We’ve spent the last year monitoring trends and doing extensive consumer testing on a new product that will revolutionize the avocado category and drive incremental growth.”

The latest from the company: “Yo Quiero! has developed an Avocado & Egg

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2023 CATEGORY CATALYSTS

Produce Snacking: Naturipe Farms

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s health trends sweep through the industry, snacking may have been deemed unhealthy for a period of time, but recently, snacking has been taken to new heights thanks to companies like Naturipe Farms. The company has been able to drive growth to retailers and throughout the category.

“Our growth strategy has been to continue to invest in research and development—we’re always trying to create exciting new products that create incremental growth for the produce category,” said Steve Ware, VP and General Manager, Value-Added. “We feel like we have a unique opportunity to create great tasting snacks that feature fresh berries. Specifically, we are focused on refrigerated fresh snack options for kids and will be launching products that will steadily increase demand for fresh produce in snacks.”

“This category is retail-driven, and we depend on our partners to help build it. Some retailers have had a real focus on produce snacking, creating a

snacking destination section and driving consumers to it with both promotions and variety. This category is not a zero-sum game. The more variety and selection retailers give to it, the more sales dollars they create with building a destination. It does not happen overnight, so the retailers that excel understand it is like a "Field of Dreams" philosophy—‘if you build it, they will come,’” Ware explained.

In the attempt to encourage new shoppers to enter the produce snacking category, the company has been using initiatives to help engage consumers.

Drink Mixes: Jel Sert

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rink mixes provide consumers with the opportunity to stay hydrated while also getting a delicious taste and possibly a quick and easy pick-me-up during the day. Jel Sert has been able to provide great tasting drink mixes to consumers year after year, which helped build the company’s reputation and a loyal customer base.

“For nearly a century, Jel Sert’s legacy has been defined by our resilience and adaptability in the face of challenges.

This year was no exception, but overall, our strategic approach allowed us to thrive,” said Jeff DeLaere, Vice President of Marketing and Digital Commerce.

“We navigated supply chain disruptions, inflationary pressures and a shifting economic landscape by optimizing our operations, ensuring product availability and consistently delivering value-driven products that didn't compromise quality. We also focused heavily on anticipating consumer needs at a time when many felt the financial pinch and adjusted our offerings accordingly. For instance, as more consumers

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sought value and added functionality without compromising quality, we developed products capable of delivering on all fronts. We’ve always felt an ethical responsibility to our consumers.

For us, it’s never just about providing products; it's about delivering exceptional products at a price that’s accessible to all.”

The company has maintained a strong relationship with its partners and consumers through its marketing strategies as well as keeping a close eye on trends and data. “As retailers enhance their digital capabilities, Jel Sert is perfectly positioned to collaborate and

“Naturipe’s grower-owners are always working behind the scenes on exciting new varieties. This summer, the Berry Blue breeding program from Naturipe owner, MGB Marketing, is rolling out Envoy and Keepsake, northern highbush varieties that Naturipe and its growers are viewing as a game-changer. They both have improved texture, better taste, longer shelf-life and many more ideal qualities. Our volumes of these outstanding new varieties will continue to ramp up over the next few years.

We’re currently projecting that both will produce more than three times the amount of pounds per acre than other legacy varieties in Michigan alone,” Jim Roberts, President of Sales said.

Despite the external factors that are impacting categories, Naturipe remains focused on its mission and objectives.

“Our top priority is producing fresh and good-for-you berries, and we put the utmost care into making sure every single berry that we package for customers is of the highest quality,” said Ware.

build content for their platform. Whatever the opportunity for collaboration in this area, we're primed to leverage it, boosting our brand's visibility on their channels. Increasingly, consumers are becoming aware of products in the digital realm, specifically on retailer websites. This digital awareness and our competitive price point encourage trial purchases. Consumers are more willing to try our products, knowing they're getting value for money and reassured by the plethora of positive taste reviews,” said DeLaere.

As people have come to recognize the importance and simplicity of remaining hydrated throughout the day, Jel Sert has used this growing trend to educate and spread awareness of the benefits of its products.

“Additionally, we've seen hydration has emerged as a prominent trend.

There's a growing awareness of the benefits of staying hydrated. Our products not only aid in hydration but also add flavor and function to water, enhancing the overall drinking experience."

2023 CATEGORY CATALYSTS

Frozen Fruit: Wawona Frozen Fruit

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awona Frozen Foods has been using the opportunity to drive growth to the category through listening to their customers. The company has a strong presence in the foodservice industry and has been making large strides to further enter into retail stores outside its already established foothold at within the club channel.

“What we continue to look at is getting closer to the customer,” explained President and CEO Bill Smittcamp. “So, we freeze three to four different commodities, primarily peaches, strawberries, blueberries and pears. And being a commodity, we’re not in the driver’s seat. The folks that are doing something with our commodity are really driving our sales. We are making products much more user-friendly, getting them closer to grab-and-go. We’re looking at c-stores and single-serve applications.”

Under its Clover Farms label, the Wawona Frozen Foods team has developed smoothie bags that are pre-mea-

sured into six servings, making preparation time faster and more convenient for households. Rather than spending time cleaning, peeling and chopping fruit before blending it into a smoothie, these smoothie bags address consumers’ expectation to save time during meal prep. “That’s kind of where we’ve been going, and then we’ve been looking at some wild specialty fruits to blend with our products,” he continued.

“That’s our real goal: to value add, share it with our cause. With the exception of Costco, we are not a well branded name, but we are here, and we

Surimi: Louis Kemp

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rident Seafoods’ brand Louis Kemp has been intent on introducing consumers to surimi, particularly younger shoppers who might not be aware of the benefits the sea-based protein has over land-based proteins.

“With the Louis Kemp brand, our strategy focuses on bringing new users into the category,” said US Value Added General Manager Kent Harrison.

“The current surimi consumer is aging, and it is integral to our success that we can build that next generation of surimi consumers. Communicating the value proportion to the Millennial and Gen Z consumers is so crucial for Louis Kemp’s future, and we are dedicated to sharing the many wonders of surimi with them. Surimi is a versatile and sustainable protein source that offers key benefits over land-based protein.”

Trident Seafoods’ retail partners have supported the surimi category by making room for surimi behind the glass. At a time when consumers are stretching their dollars, retailers are guiding them to surimi, an option that is approach-

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able in terms of price. “Retailers continue to be committed to surimi and its place among proteins,” Harrison said.

“During this time of economic uncertainty, they know the importance of a product that offers value in the form of price.”

Content creators and influencers on social media have played a compelling part in introducing younger consumers to the surimi category—the same younger generation of shoppers Trident Seafoods has been connecting with to catch up to the already established and loyal Gen X and Boomer shoppers.

“We have seen an uptick in organic so-

do much more foodservice and private label retail than we do as a branded grocery store program,” Smittcamp said.

Wawona has educated consumers about the benefits of frozen fruit over fresh. The company is also leading the frozen fruit category by doing its part to reduce food waste. “A strong advantage to continuing that education as the American Frozen Food Institute is continuing to get that message out through social media, print and any other [way] that frozen is better than fresh,” Smittcamp said. “The article we were reading the other day said, volume is down but consumption isn’t. So, how do you get that? Volume of sales of frozen and refrigerated products are down, but consumption isn’t. The consumer is making better choices on what they’re buying and not letting it all go to waste.”

“Young minds are cognizant of being socially minded, not wasting food and being good stewards of everything that we do,” he added.

cial conversation on surimi, especially on TikTok,” Harrison said. “This past summer, Millennial influencer @naughtyfork posted a crab rangoon melt on social and received more than 150,000 likes on Instagram alone. Content like this fuels demand and is vital to growing the surimi category."

Through its Louis Kemp brand, Trident Seafoods has a staunch loyalty to responsible and transparent business practices. “Our company’s vision is to make people’s lives better,” Harrison said. “We do this by bringing what we consider to be the perfect protein to consumers; the health benefits alone are amazing. And then there’s our mission: we responsibly share wild Alaska seafood with the world. The key word here is ‘responsibly.’ Alaska has worldclass fisheries management, and we’re proud to be part of it. We also invest significantly in our environment, social and governance activities to ensure we have a transparent supply chain where our people and our products are treated with dignity and respect."

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Three frozen fruit blends offer healthy fruit flavor combinations

2023 CATEGORY CATALYSTS

Greeting Cards: Designer Greetings

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n addition to keeping its selection fresh and resonant with today’s consumers, leading greeting card manufacturers like Designer Greetings ensure they continue to be a steadfast and reliable partner for their retailers, arming them with eye-catching tools to entice purchases both on the floor and online, as well as behind-the-scenes sales data to make the most informed marketing decisions to support growth.

President Steven Gimbleman said Designer Greetings’ strategy in creating incremental growth has been multifold. “Designer Greetings is one of the few greeting card companies that analyze pocket performance with our partner retail stores,” he said. “If we see a pocket not performing, we refresh the design with a new, better-performing design. This allows us to maximize performance. Another significant way we create incremental growth is through strategic outposts and small fixtures in the floral department or at the checkout lane. Lastly, through the past few

years, we acquired additional publishers with very creative product that greatly enhance and increase our greeting card departments.”

Gimbleman explained that Designer Greetings’s focus on specializing its offerings to its assorted retailers is a key to success. “A greeting card department must have a planogram that suits the retailer’s needs in that location,” he said. “We spend a lot of time analyzing the population in that location by age groups, ethnicities and diversity. We are one of the only greeting card companies that spends the time to customize the planogram for that specific location.”

Conversely, Designer Greetings has also reaped the benefits of its retail partners’ promotional efforts. “Many retail partners are promoting greeting cards on their website and through circulars offering specials throughout the year. Outposts in floral and next to the checkout lane helps support the marketing and merchandising of our product,” he said.

Designer Greetings’ careful growth strategy has ushered in enough growth this year that it requires further expansion, he said. “With our state-of-theart fixture displays, superior product mix and dedicated merchandisers and sales team, we have experienced more growth than in any previous year. We are just finalizing our expansion of more than 200,000-square-feet, which will be ready in May 2024.”

“As a family-owned business, we have always been grounded in putting the customer first. Conservative growth focused on the independent grocer is our primary focus,” he said.

mate Omega and Algae Omega supplements available to shoppers. "This is an important step for us to join forces with Sam’s Club stores and provide their shoppers with our premium high-quality omega-3 supplements," said Brian Terry, Director of US Retail Sales. "This partnership not only expands our retail footprint but also aligns perfectly with our mission to make quality omega-3 supplements more accessible and affordable."

Nordic Naturals similarly took part in Walmart’s May Wellness Days, its campaign to showcase health and wellness products, to introduce Ultimate

Omega, Algae Omega and its Omega-3 formula to Walmart stores nationwide.

“The majority of Americans don’t know they need omega-3 supplements, don’t have access to quality omega-3s and certainly don’t have the grocery budget to afford the minimum omega-3 requirements sourced through food,” said Terry. “Everyone should have access to affordable, high-quality omega-3 supplements, which is why our partnership with Walmart is so important to our mission.”

Nordic Naturals has a long-standing belief in the science of omega-3s, and the company channels that enthusiasm toward education about health, the spokesperson said. “As many people are new to fish oil supplements, whether for themselves or their family, they naturally have questions about the efficacy and benefits of fish oil. We continue to prioritize education about omega-3 fatty acids so customers feel confident they are making a smart choice when they purchase our fish oils,” they said.

Supplements: Nordic Naturals

W

hile fish oils are no longer the new ‘it’ item on supplement shelves, legacy brands like Nordic Naturals continue to identify and pursue new opportunities for growth. Nordic Naturals this past year has expanded access to its portfolio of products through additional distribution points at Walmart and Sam’s Club. This gesture is an effort to reach families who don’t yet use fish oil supplements and educate them on the importance of omega-3s in a well-balanced health and wellness regimen.

“The fish oils category is well established, but there is still a huge number of US households who do not yet purchase fish oil supplements, so in that regard there’s still plenty of room for growth,” a Nordic Naturals spokesperson said in May. “In terms of supplement companies, there are always newcomers to the category, but few legacy brands like Nordic Naturals.”

Along those lines, Nordic Naturals this fall began a partnership with Sam’s Club stores nationwide to make its Ulti-

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At Designer Greetings, we strongly believe that the practice of sending greeting cards will always be entrenched in our culture; that sending a handwritten greeting card will always have a far greater emotional impact than an emailed message or social media post.

Learn more about our cards, including our store-in-a-store and department solutions.

www.DesignerGreetings.com • 800-654-6960 • Code: GI-1123 @DesignerGreetings

2023 CATEGORY CATALYSTS

Dessert Decorations: DecoPac

T

he dessert decorations category is enhancing options for aspiring bakers. With the right decorating tools, they are imagining and bringing their creative ideas to life with baked goods as their canvas.

“Retailers are looking for the perfect combination of innovation paired with operational efficiency,” said John Gardner, DecoPac’s VP of Global Marketing. “Incremental growth is achieved when the cake/dessert category can delight consumers, while simultaneously saving bakery staff time.

Trend-driven product lines that reduce labor are proving to be a huge hit with bakeries, like our recent introduction of Edible Glitter in convenient spray bottles or small jars. Finally, an easy solution to apply edible gold, silver and brightly colored glitter to a cake or dessert with a simple press of a button.

Our focus on innovation and operations doesn’t stop with our products—it’s a part of providing training/design resources, delivering time-saving technology for cake decorating and efficient

shipping methods to ensure that our customers have the right product at the right time.”

DecoPac’s retail partners operate as a team and discuss trends and how to drive traffic and sales to the in-store bakery. “Our retail partners are amazing collaborators,” Gardner said. “Often, we discuss the ways in which a bakery program can be communicated to consumers effectively. These collaborations result in the ability for us to partner directly with them in marketing efforts through a variety of channels. We bring to the table the strength of our licensing partners, communicating to fans of top movies, television and streaming content the joy of cake celebrations at our retailers while simultaneously working with retailer marketing departments to cross-promote those products both in-

Vegan Snacking: Frooze Balls

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egan snacking options have come a long way from the average fruit or vegetable tray. Companies like Frooze Balls have remained focused on providing consumers with delicious and convenient snacking solutions that keep their interest, helping them maintain their lifestyle preferences. Based out of New Zealand, the company produces 100 percent plant-based snacks that are made with real and natural ingredients.

“We are continuing to launch new flavors and formats to keep things interesting for our consumers,” said Frooze Balls Founder Cherie Jackson. “We are also undergoing a significant packaging refresh to increase shelf shout and overall appeal. Not resting on our laurels and keeping our end consumer as the focus of our efforts is essential for retaining relevance."

Frooze Balls has acknowledged the various ways its retailer partners help ensure their partnerships are long-lasting. “Offering different packages for emerging brands that can be tailored to

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meet our budget is super helpful,” said Jackson. “We had one major buyer walk their store with us, pointing out what he thought would be valuable for success in his stores. Being able to meet again in-person is also tremendously valuable.”

Based on what the company has seen at tradeshows and through industry communications this year, Frooze Balls has been able to identify what consumers are gravitating toward in the vegan snacking category. “Consumers want real food,” she said. “They want recognizable ingredients that are reimagined to taste amazing. Nostalgic flavors

store and online.”

Desserts are typically the centerpiece of social gatherings, and it’s the food item people tend to remember the most, allowing for consumers to create magic and be the center of a positive memory. “Our mission is to spark joy-filled and memorable celebrations by providing the ‘wow’ for cakes, treats and desserts,” Gardner said. “And our vision is to always be an essential component of celebrations everywhere. The principles are the essence of what we do every day. We never lose sight that the most important thing that we do is to make a celebration memorable. The cake is the centerpiece of the celebration; it’s the part of the party that will be remembered, potentially for a lifetime! So, while operating a business is a tremendous endeavor that takes a team to be successful, we know that our true success stems from the very idea that we were founded on—and we’ll continue to provide that ‘wow’ for years to come!”

like PB&J provide an easy reference point that invites them to explore new brands.”

Frooze Balls has recognized what has been the biggest key player in the company’s ability to continue to provide solution-based products to support and meet consumers' needs within the category. “Getting a place at the table,” she said. “When retailers are willing to meet with small brands like ours and simply give us a go, it is game-changing.

We do not have the budgets or backing of the big multinationals in our competitive set, so being in partnership with the trade is essential. This enables continued innovation and fresh ideas that keep customers coming back.”

The company has been able to stay grounded in its mission amidst challenges that come with operating a business. “I personally love reading the reviews and e-mails that come in from our end consumers,” she said. “Learning about how we impact them keeps our mission at the forefront.”

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© 2023 CelebrationIQ. © 2023 PhotoCake. All rights reserved. CelebrationIQ™ is owned and operated by DecoPac, Inc. and is patented and protected by DecoPac patents.

PhotoCake® is a registered trademark of DecoPac. www.decopac.com/intellectual-properties/

2023 CATEGORY CATALYSTS

Charcuterie Meats: Fiorucci Foods

F

iorucci Foods has emerged from the challenges of the last few years with renewed vigor, embodying its “Old World for the Modern Age” motto this year with fresh product innovations.

Alongside innovation, the company established a national media campaign celebrating the flavors of Italy while helping American consumers find ways to bring that heritage into both special occasions and everyday life.

Shawn Munck, Director of Marketing, European Brands & Foodservice for Sigma USA, which oversees Fiorucci Foods, explained the media campaign entitled “Life Tastes Beautiful,” launched in October in tandem with Italian Heritage Month and will run through the end of the year, typically when Fiorucci Foods sees its peak sales.

“We’re able to present the Fiorucci brand through more modern world scenarios,” he said. “That’s going to resonate more with today’s audience so Italian heritage isn’t a thing of the past.

That’s our goal behind the brand, the campaign and everything we’re doing

now is taking that old world craftsmanship and artisanship but applying it to the modern age with the types of products that we have: charcuterie, on-thego snacking, on-the-go prepared meals.

Everyone is busy. How do we help simplify people’s lives at that level of convenience? We’re really trying to elevate the everyday with Fiorucci.”

A large part of the everyday for Americans is snacking, and Fiorucci Foods expanded its snacking-focused Paninos line with a new pizza flavored Panino that pairs its new pizza salami with mozzarella cheese along with a new Pepperoni Pepperjack Panino. More

Licorice: Kenny's Candy

K

LN Family Brands’ Kenny's Candy is in a prime spot in the licorice category. In addition to offering retailers and households its flavorful and appealing Wiley Wallaby line, company leaders continuously evaluate what’s missing in its product repertoire and the overall category.

“Throughout the last handful of years Kenny’s Candy & Confections, specifically our Wiley Wallaby brands, has grown through increased brand awareness and retailer acceptance and of course, delicious licorice,” said Director of Marketing and Product Development Jadi Anderson. “That growth continues to propel us forward but, we also took the time in 2023 to really dive into our portfolio and outline what we felt was missing. This internal look lead us to uncover that while we have great product options and are growing in every channel, we were missing a smaller pack size. Further research showed that 62 percent of non-seasonal confections sales in the convenience channel were

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made up of product sized at 4 oz or less.

And, while we do have a Wiley Wallaby 4 oz offering, we knew that wasn’t enough.”

“Armed with this knowledge, our product development team ideated to fill this void, allowing us to launch our new Wiley Wallaby Minis at NACS in October,” she continued. “The team presented Wiley Wallaby Minis in our Classic Red and Watermelon flavors, along with our Sourrageous Drops, in Share- and Count Good Sizes at the convenience show. Ranging from 1.7-3.5 oz, these six new SKUs will be available in 18 ct caddies—allowing for multiple

broadly at grocery retail, the brand also launched its specialty salami line with four flavors in particular: a calabrese salami, a finocchiona fennel salami, the aforementioned pizza salami and a charcuterie salami.

“The calabrese takes the flavor profiles from the Calabria region of southern Italy,” explained Munck. “The finocchiona takes inspiration from the Tuscan region of Italy where finocchiona and fennel are quite popular. The pizza flavor salami has a proprietary flavor profile that our R&D team developed. And the charcuterie salami, which I know sounds kind of odd, but we’ve gotten a lot of feedback from consumers that they’re not quite sure what type of salami or meat to put on a charcuterie board, so we actually launched one called a charcuterie salami. It’s a mix of dry cured pork—all pork—and it follows the same dry cured methods as our prosciutto, and then it’s processed like our salamis, so it’s similar to a sopressata.”

placement options and driving trial and incremental purchases across our retail network.”

Kenny's Candy stays grounded in its goals and mission by putting actions behind the company’s values. “As a third-generation family-owned and operated business, our mission, vision and values statements aren’t just words on a plaque,” Anderson said. “Often, we’ll hear our leadership talk about 'People First,' which is one of our core values.

It means that first and foremost, we’ll treat them as people and not as cogs in a wheel. It means that we’ll provide them great benefits that allow them to take time off and make sure they’re prioritizing things like their mental and physical health. And, it means that when we make a profit, we’ll do two things: We’ll share some of that profit with the team members who made it possible, and we’ll continue to re-invest in our businesses so that we can continue to grow and be the desired place to work in our community.”

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 CATALYSTS

Hummus and Dips: Lantana Foods

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onsumers have embraced hummus as a food and dip, especially as they opt for better-for-you, plant-based options to satisfy a craving. Lantana Foods aims to keep the category fresh with bold and attention-grabbing flavor pairings, appealing to consumers who also want to see where they can take the traditionally chickpea-based food. The company’s innovation strategy also builds from this plant-based foundation, having recently entered new segments with dips, salsas and salads.

“The hummus category and the instore environment continue to shift, and new brands are entering the market,” said Maggie Carey, President of US Business. “Consumers need to know what your brand is about and what you can offer that appeals to them. With hummus continuing as our core product, we took this as an opportunity to re-ground in what’s important to Lantana—offering our consumers crave-worthy snacks that happen to be made from plants—and then extended the brand into multiple segments. Beyond hummus, consumers can now find Lantana in dips, salsas and salads, all of which have carried across our core messaging in consumer channels as well.”

Part of that messaging is that Lantana’s product portfolio suits a variety of occasions, from the everyday to the

holidays. “At Lantana, we’ve identified incremental occasions for our dips beyond the typical everyday hummus

purchase,” Carey said. “For example, we’ve introduced an on-the-go version of our popular Chocolate hummus that includes a snack-size portion plus pretzels to satisfy a craving for something sweet. We’re also focused on entertaining, especially as we’re in the midst of sports and holiday seasons, which gives party hosts the opportunity to delight guests with a variety of snacks. With that in mind, we debuted a Party Tray that combines our top selling hummus varieties—Classic Hummus, Roasted Red Pepper, Black Bean and Carrot Sriracha—in one easy purchase!”

Lantana Foods has also been focused on dynamic flavors. “Overall, we’re seeing con- s u m e r s — e s p e c i a l l y younger shoppers—gravitate toward flavor experimentation,” she said. “Fortunately, Lantana was founded on a belief that hummus and dips can and should be flavor-forward, with unique and crave-worthy options. We recently introduced a number of new items across both segments to meet these consumer trends, including bringing

back Hatch Chile hummus and adding some distinct flavors including Cauliflower Pizza Crust and Dill Pickle. Both flavor-forward and plant-based trends informed how we chose to launch the brand into dips, including an unbelievably delicious take on a dairy-free French Onion dip, plus dairy-free takes on other top selling flavors like Chipotle and a beanbased Spicy Poblano Corn Dip.” The task of communicating Lantana Foods’ offerings to consumers largely falls to its retail partners, but there are ample avenues through which they can put the products in front of shoppers.

“All of our retailer partners have a sophisticated suite of offerings that we can participate in via shopper marketing programs that target key consumption periods for hummus, dips and salsa,” said Carey. “These programs include events that feature plant-forward products and/or tap into heavy snack consumption periods such as the start of football season, among other offerings. Additionally, we tap into digital offers that allow us to customize messaging across products and the consumer shopper ahead of their shopping trip. It is important to us as a brand that our partnerships align with our mission and vision of bringing more plant-forward options to consumers nationwide.”

Grocery Insight again congratulates all our featured suppliers on a fruitful year marked by your creativity and tenacity in navigating this ever-changing market.

We appreciate you sharing your thoughts and insights on your successes, providing a sense of optimism and a way forward in your respective categories and for the greater industry at large.

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Stupidly delicious plants.

a got a re n g ! a h t c t s y – e n j oy i u d tl o l pr p o r ta n u f r vo m With e, f la most i v i t a Lantan a Foods, you’ll always get innov g , and – to - n o - b ra in e din r for snacking , dipping , sprea

3 in 5 Americans seek plant-forward products 1

#1

Most important purchase driver for all food choices: TASTE 2

With Lantana, you never have to compromise!

For more info, visit LantanaFoods.com 1- Source: Plant Based Foods Association 2021 2- Source: Seurat Group Qualitative Research 2022

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