Grocery Insight
October 2024
H-E-B's expansion plans throughout the Dallas-Fort Worth Metroplex are progressing at an uninterrupted and sustainable pace. This year H-E-B, along with its banners, broke ground on new construction, modernized existing infrastructure and opened a fulfillment center while simultaneously taking care of shoppers in the neighborhoods H-E-B serves with attainable and cost-effective groceries.
• Special Report: H-E-B 2 • Show Coverage: NFRA & Global Produce & Floral Show 6 • Category Analysis: Pierogies 8 • Category Analysis: Maple Syrup 10• Category Analysis: Protein Bars 12 • Category Analysis: Seafood Merchandising 14 • Category Analysis: Freeze-Dried Candy 16 • Category Analysis: Cucumbers 18 • Special Report: NACS Show 20 • Special Report: PLMA Show Preview 24
Special Report
H-E-B
For H-E-B this year has been filled with successes and progress at a steady clip. Notably, a swell of breaking ground on new development, store openings, investing in distribution facilities and staying connected with the community in times of celebration and during natural disasters when neighbors can’t easily access groceries, have demonstrated the character and depth of generosity the community has come to expect from the company and its leadership team.
With a footprint of 435 stores and sales of $43 billion, H-E-B is a force to reckon with throughout Texas and Mexico. For more than a century, H-E-B has dutifully served community members notably during hurricanes and consistently introduces the latest snacking and meal solutions to shoppers. With headquarters in San Antonio, H-E-B provides jobs for more than 160,000 associates in Texas and Mexico and serves more than 300 communities. In addition to H-E-B stores, the company is home to banners Central Market, Joe V’s Smart Shop and Mi Tienda throughout the Southwest. Outside of brick and mortar, H-E-B operates Favor Delivery, a delivery service that provides service to hundreds of communities within Texas.
Central Market
In March, Central Market, a division of H-E-B, publicized its intentions to undergo a major renovation at one of its storefronts in San Antonio. The location opened in 1951 as an H-E-B store and has since expanded its footprint, undergone updates and changed to reflect the tastes and culture of the neighborhood. After 50 years, the location was rebranded as Central Market in 1999.
The project entailed reviving and updating the store to upgrade the shopping experience for loyal consumers and the atmosphere for H-E-B associates, including refreshing the store’s exterior and an immersive revamp of the inside of the store.
Phase one involved renovating the parking lot and building a produce loading dock in addition to safety improvements such as new sidewalks, walking paths and parking lot signs. These projects were scheduled to begin in the
May: H-E-B opens e-commerce fulfillment center in Cibolo, providing increased capacity, greater efficiency and enhanced convenience to better serve digital and in-store shoppers.
June: The Mansfield store, the 6th H-E-B store in the DFW Metroplex, offers curbside and home delivery and has several energy efficient features.
August: The 2nd Frisco location opens; a 130,000-square-foot store with a True Texas BBQ. It's also the 7th store H-E-B opened in the DFW Metroplex.
September: H-E-B begins construction on 112,000-squarefoot store in Georgetown; the third location in this city.
H-E-B's expansion projects during the second half of 2024.
June: Joe V’s Smart Shop opens its 1st location outside the Houston area. Joe V’s Smart Shop reduces costs and passes savings on to its Smart Shoppers.
June: Crews break ground on future location of Rockwall store, set to open in 2025; another step in H-E-B's expansion plans throughout the DFW Metroplex.
August: H-E-B acquires property in Irving with the intent of opening its first store in the Las Colinas community in late 2026.
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Special Report: H-E-B
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spring with completion by the end of 2024.
The second phase of the project proposes reorganizing departments, increasing energy efficient fixtures, adding seating at the café and enhancing the breakroom and offices for associates and administration. If approved by city officials, these projects are scheduled for completion in mid-2026.
“For decades, at the corner of Broadway and Patterson, a special relationship has been built between our store, this community, and our partners,” said Stephen Butt, President of Shareholder Relations and Central Market Division. “With a commitment to strengthen that bond well into the future, we are announcing plans for a significant re-investment in Broadway Central Market. This major project will take time to complete. When our work is finished, the newly renovated Broadway Central Market and our friendly Partners will be well equipped to continue serving our customers with the freshest and best specialty products the world has to offer, for many years to come.”
Joe V’s Smart Shop by H-E-B
In March, Joe V’s Smart Shop by H-E-B officially broke ground on its second location in Dallas, at the corner of Buckner Blvd. and Samuell St. This move is part of ongoing expansion plans to take Joe V’s Smart Shop outside of the greater Houston area and expand into the Dallas-Fort Worth metropolitan area. As of June, work had already begun. The location is planned to open in spring 2025.
Joe V’s Smart Shop by H-E-B offers a state of the art price format that provides shoppers with an unmatched selection of community focused products and fresh foods at competitive prices.
“We’re excited to continue our growth in the Dallas area and eager to serve customers in the metroplex with top-quality service and the freshest products at the lowest prices in the marketplace,” said Roxanne Orsak, Chief Operating Officer. “We look forward to bringing this proud H-E-B brand to more Texans.”
Joe V’s Smart Shop debuted in 2010 and employs more than 2,000 associates in 10 stores in the Houston area.
Consumers have come to realize the shopping experience at Joe V’s Smart Shop is like shopping at H-E-B because they have access to a vast produce department with locally grown items and ready-to-serve produce; a collection of H-E-B private label items; an assortment of in-store cut proteins, handmade sushi, a bakery offering in-store made tortillas, bolillos, pastries and breads to reflect its shoppers' cultural tastes and preferences.
The 55,000-square-foot store is another example of H-E-B’s devotion to investing in communities throughout Texas and driving the local economy with jobs and career opportunities. In fact, this recent opening is expected to provide 200 jobs.
In June, Joe V’s Smart Shop opened its first Dallas location at the corner of W. Wheatland Rd. and Highway 67. This marks the first location outside the Houston area. In December 2023, company leaders announced they were breaking ground on this store.
“We’re thrilled to open our first Joe V’s Smart Shop in Dallas, allowing us to serve more Texans with our commitment to quality and friendly customer service,” Orsak said. “Along with our dedicated partners, we are excited to provide this community an incredible shopping experience with an emphasis on offering the freshest products delivered daily at the lowest prices in the marketplace.”
The Wheatland location is expected to hire more than 250 associates, with most of these hires living locally or in adjacent neighborhoods.
News
At the end of April, H-E-B finalized a land deal as part of a plan to cultivate a distribution campus in Hempstead, TX. The terms of the land deal were not disclosed. The campus will eventually house facilities to reinforce supply chain operations. This is one step of a multi-rung plan to house a handful of distribution facilities on 500 acres in Waller County.
Phase one of construction is slated to begin in late 2024.
“The land purchase is the first step in the development of this strategically planned campus, a project that will position H-E-B to better serve our cus-
tomers well into the future,” said Chief Supply Chain Officer, Carson Landsgard. “The investment demonstrates H-E-B’s commitment to communities across Texas and will give us the opportunity to create more jobs in the Hempstead area in the coming years.”
In mid-May an e-commerce fulfillment center opened in Cibolo, TX and promised to bring greater capacity, heightened efficiency and extra convenience to consumers regardless of if they shop in-store or online.
As demand for curbside and home deliveries continues to rise, the 55,000-square-foot facility is designed to help H-E-B keep up with demand. The facility addresses curbside and home delivery orders in Cibolo, New Braunfels along with surrounding cities in the San Antonio area. This infrastructure will allow for H-E-B to keep up with serving consumers.
While Hurricane Beryl battered the Gulf Coast, H-E-B stepped up to aid neighborhoods and communities with commodities that are often taken for granted:groceries. In July, the grocer provided deep discounts on frozen foods and offered support to help the community overcome the impacts of Hurricane Beryl.
Outside of its stores, H-E-B donated to nonprofits and surrounding areas impacted by Hurricane Beryl and provided aid with cooling centers, water, ice, snacks and other necessities. Further, the company donated eight truckloads of ice for survivors in Houston. One area severely impacted by Hurricane Beryl was Sargent, TX, which backs up to the Gulf Coast. H-E-B sent its H-E-B Mobile Kitchens to Sargent to feed residents and first responders. The H-E-B Mobile Kitchen was equipped to serve up to 21,500 warm meals.
So far, 2024 has presented H-E-B with one opportunity after another which the company has ambitiously seized hold of. Whether it's breaking ground on development, renovating and modernizing existing infrastructure or expanding its footprint in bustling metropolitan areas, H-E-B is intent on keeping locally grown, fresh groceries accessible to consumers within their communities.
Tradeshow Coverage
The NFRA Convention
With this year’s NFRA Convention having just concluded, suppliers are busy turning the substance of their many meetings with partners—both prospective and existing—into actionable plans for the near future. This year’s event provided attendees no shortage of opportunities to make meaningful connections while also sampling many innovative offerings at Café NFRA and the Taste of Excellence events.
Amy’s Kitchen was among the more than 50 companies sharing samples of their latest products during the opening Taste of Excellence grand opening event. Amy’s Kitchen has been a longtime participant at the NFRA, Gerald Hulse, Vice President of Sales, said prior to the event. Understanding how to best utilize the unique format of the yearly event, the company appreciates the variety of opportunities it provides.“We hope potential or existing partners leave with an appreciation for Amy’s great-tasting, high-quality food, a sense of trust and value in our partnership and a stronger connection with both
Amy's as a company and our dedicated team members,” Hulse said. These opportunities also kept Strong Roots coming back, with this year being the company’s fifth year at NFRA. “What I really enjoyed about the format last year was that the focus was on meetings between suppliers and retailers versus a sea of supplier booths,” said Jenn Newman, VP of Sales USA. “I found that even with shorter speed meetings, there were quality interactions, versus other trade shows where it’s easy to miss a retailer amongst other suppliers stopping by to sample products. NFRA gives everyone the opportunity to sample at the Taste of Excellence and leaves the days for interacting with retailers.” Newman was especially looking forward to those interactions. “We have a great balance of more in-depth meetings with a few speed meetings as well,” she said prior to this year’s event. “We’re excited to show the progress that Strong Roots has been making and identify ways we can partner with retailers to contribute to incremental
sales for our targeted shoppers.”
Relative newcomer CAULIPOWER was also making use of the NFRA opportunities to showcase its newest innovations, with this year being the company’s second year at the event.
“CAULIPOWER continues to lead the category through innovation while some brands have cut back,” said Founder Gail Becker. “The number of new product launches within the frozen space has decreased significantly over the last couple of years. CAULIPOWER, named on Fast Company’s Annual List of the World’s 50 Most Innovative Companies in 2022, bucked this trend by doubling down on the innovation of new products to continue to drive growth for the company and the industry.”
Becker had a clear strategy for the event. “Our goal is to share our tremendous innovation with our retail partners and detail how we have, once again, disrupted categories by dramatically expanding formats and day parts,” she said prior to the event.”
The Global Produce & Floral Show
Anticipation is mounting for this year’s IFPA Global Produce and Floral Show. While exhibitors are polishing up their plans and presentations with old and new partners, organizers are looking to steer the collective conversation toward examining the transformative future of produce and floral. Anchoring that conversation is IFPA CEO Cathy Burns’ keynote address on the morning of Oct. 17, the first day of the show. “The produce and floral communities are facing challenges and transformation from all fronts,” said Burns. “We’ll be exploring new developments in—and implications of— technology, sustainability, workforce dynamics and more. Overlying each of these topics is advocacy—an essential component of our efforts to grow a healthier world, a thriving industry, and our members’ businesses. Whether it’s public or government affairs, public relations, or consumption growth, advocacy is how we get the job done.”
Meanwhile, companies like Shuman
Farms are taking advantage of the show taking place in their home state to showcase all that a Georgia grower is capable of. “This year's IFPA Global Produce & Floral Show is particularly exciting for Shuman Farms, as we bring our passion for produce and football together in the heart of Atlanta, GA and our home state,” said President and CEO John Shuman. “We're excited to be host to a unique tailgate right in the middle of the show floor, a celebration that ties into our brand as the official sweet onion of tailgating. We’re especially looking forward to showcasing our partnerships with the University of Georgia (UGA) and Georgia Southern University (GSU), which help us reach the next generation of consumers. By aligning with these iconic Georgia schools, we’re driving the message of healthy eating and increased produce consumption among college students and sports fans alike.”
Sweet potatoes also have a place in the healthy eating conversation, and
Nash Produce intends to take advantage of the opportunities presented at the show. “This is an important opportunity for us since we will be able to interact with current customers and also potential new customers,” said Robin Narron, Marketing Director and Sales Support. “Relationship building is an important part of the business and it is something we take pride in here at Nash Produce. Being an exhibitor will not only allow us to maintain current relationships but also cultivate new ones. Additionally, our team members will be participating in events throughout the week. These seminars will allow team members to further their knowledge about the industry and make connections with other successful industry experts.”
Key players across all facets of produce and floral can look forward to an informative event with ample opportunities to connect. “I invite everyone to join us in Atlanta to be part of something bigger than themselves,” Burns said.
Lakeview Farms has dips for every occasion and every consumer. Lakeview Farms crafts fresh refrigerated dips, spreads, hummus and salsa designed to delight the most discerning taste buds while providing exceptional value. Not to mention consistent performance for those who stock them. Discover what partnering with Lakeview Farms can do for you at LakeviewFarms.com or contact your Lakeview Farms representative.
From savory to sweet to layered & Spicy, and even, seaworthy.
Special Report
Pierogies
Key Takeaways
• Brands aim to replicate the home-cooked taste of traditional pierogies, using simple ingredients and delivering on flavor and comfort in a big way.
• Mrs. T’s Pierogies, with over 70 years in the industry, holds an 80% market share and focuses on quality and consumer engagement in addition to high quality standards.
There isn’t much that can compare to a good, hearty home cooked meal or dish. The flavor profile of authentically cooked meals deliberately made with fresh ingredients and care have remained unmatched. Although, leading pierogi producers recognize the importance of providing consumers with pierogi options that satisfy those cravings and meet expectations while striking down the ideas that authentic pierogies can’t be enjoyed unless made at home.
Leaders like Jaju Pierogi drive this point home with their hands-on production process that uses fresh ingredients daily.
“Last quarter of the year tends to be the busiest because pierogies are huge around Christmas time,” said Co-Founder of Jaju Pierogi Casey White. “We have been at it for about eight and a half years, and that is one of the only consistent things, is the last quarter because people are looking at and paying attention to pierogies. People of Polish descent typically celebrate with Christmas and Christmas Eve—it’s a big pierogi fest. So, we are hyper aware of that. From a manufacturing standpoint, we always make sure, especially this year, all of our raw ingredients, there are no supply issues there, so we are reaching out to vendors and confirming things such as the cheese and the potatoes since we typically do roughly 40 percent of our revenue during this time; it’s three to four times what we normally do on a regular basis."
"We also make sure that our co-manufacturing can deal with the volume," she continued. "We still have plenty of capacity; we are a growing company, but we are still on the smaller side so there is capacity on the production line at our manufacturer so we know we can produce even 20 times the volume. We
could get through an order the next year. It’s really important to not have all your eggs in one basket, so we are looking for and evaluating a second co-manufacturing facility in the Midwest because we are based in Massachusetts.”
Supreme Pierogies, which started in the basement of a small Mississauga, Ontario home, has been family-owned and operated since 1991, upholding the phrase “humble beginnings.” Joseph
there want to be at a lower price point; we are a premium product so we don’t want to just fill our product with potato flakes or fake cheese—anything that wouldn’t be of the highest quality. We are committed to that. So, that is kind of what we do differently.”
“We are proud to be a legacy brand, with more than 70 years of history and a name that resonates with so many,” said Alyssa Panzarella, Director of Marketing
“As the trusted brand of pierogies, we carry 80 percent share of the pierogi category. Looking at trends, we see innovation and private label options coming in to meet growing consumer needs and interest in pierogies. We know that our main barriers to purchase for new consumers are understanding what a pierogi is and how to use them. And our current consumers just need reminders. As the category leader, we are committed to continuing to grow our brand advocates, and we are pierogi advocates in general.”
— Alyssa Panzarella, Mrs. T's Pierogies
Wilk is the Founder and Owner of the company and made it a goal to reflect and preserve traditional Eastern European flavors. The company produces 19 different frozen pierogi options that live up to authentic taste and flavor profiles while offering versatility at a reasonable price point.
Authenticity has become a focal point of the category.
“We are the only pierogi brand doing what we are doing from a quality standpoint,” said White. “We want our pierogi even at scale to taste like your grandfather or grandmother took it off the stove top and made it themselves. So, we use very simple and straightforward ingredients, little to no preservatives wherever we can. We still boil our potatoes every single morning when we produce and we hope to continue to do that. A lot of other competitors out
at Mrs. T’s Pierogies. “We can see the joy that comes from gathering around the table with loved ones as consumers enjoy Mrs. T’s Pierogies: Stuffed with the Stuff You Love. Our mission is built around delivering quality products that bring smiles to our consumers. We’re dedicated to inspiring our consumers to explore new and exciting ways to enjoy our pierogies, whether it’s through creative recipes, diverse usage occasions or unique preparation methods.”
As many consumers may not always be able to or have access to making pierogies at home, leaders in the category have produced pierogi products that are true to the category’s roots and authenticity. This category has been a comfort meal and dish for so many and remains this way due to the leading companies staying true to high-quality ingredients and recipes.
Special Report
Maple Syrup
Key Takeaways
• The 2024 season yielded a high-quality crop, with Vermont experiencing a 19% growth compared to 2023.
• Suppliers prioritize partnerships with retailers, focusing on category growth, to ensure mutual success and consumer satisfaction.
Maple syrup producers are relishing a fruitful production year looking ahead to the holiday season and the new year. They continue to hang their hats on the quality of maple syrup and care for natural resources that come from working with small family farmers, which enable them to deliver premium products and enticing brand stories to their retail partners. In working with partners to teach consumers about the versatility of maple syrup as well as innovate value-added options, these category leaders continue to carry the mantle of ensuring the maple syrup becomes a staple ingredient in more consumers’ kitchens than ever before.
“The 2024 maple season resulted in a high quality and high yield crop, with Vermont experiencing +19 percent growth over the 2023 maple crop,” said Emma Marvin, second generation owner of Butternut Mountain Farm. “We expect the industry to be in good supply for the rest of this year and ready for the busy fall and holiday periods. Butternut Mountain Farm continues to make continuous improvement investments in our manufacturing infrastructure with a focus on quality, safety and efficiency for both our maple syrup and our value-added products such as maple butter and maple sugar.”
The pure maple syrup category has returned to steady growth in retail markets and is gaining share from breakfast syrups, Marvin elaborated. “We’re excited to see industry trends where consumers are reaching for organic syrup with more frequency, especially as we make it more accessible with nationwide distribution of our second-generation mess-free, family friendly 12 oz squeeze bottle.”
Seemingly minor details like the usability of a bottle illustrate the all-encompassing care that Butternut Mountain Farm puts into conceptualizing how best to support its retailers and
end consumers. “Our team is knowledgeable and passionate about our products, offering engaging education to our consumers through our website’s blog and social media channels,” said Marvin. “We utilize these platforms regularly to educate consumers on everything from how to use maple in cooking beyond breakfast to the health benefits of maple to the positive environmental impacts when consumers choose this natural, wholesome sweetener.”
Coombs Family Farms’ Director of Sales and Marketing Arnold Coombs, likewise, reported a good crop, though prices haven’t really improved over the previous year because the Quebec Maple Syrup Producers sets the floor price and they raised their price this year, he said. “So, pricing hasn’t really changed, but there will be plenty of syrup.”
The increasing cost of groceries are hard to ignore, but for Coombs, the focus of its partnerships is not on price. “We’ve looked at it differently in that we try not to compete on price,” said Coombs. “We’re competitive pricewise, but we’re trying to grow the category for the retailers. If you go in and beat a competitor on price and you get on their shelf space, you’re not really helping you or the retailer. Instead, you’re just a different slice of that pie. What we’re trying to do is grow the pie so that everyone has a larger slice. We’re doing special promotions and deals, which are somewhat price related, but it’s not just trying to be dirt cheap all the time. Because if you’re dirt cheap all the time you don’t have a quality product. We’re also promoting maple in a way that demonstrates to consumers it’s not just for pancakes. It’s a great ingredient to use in the kitchen.”
Anderson’s Maple Syrup, similarly, endeavors to pursue innovative ways to reach consumers about maple syrup’s versatility while continuing to operate with reliability, honesty and integrity
in their retail partnerships, “even when the retailer is not with us,” said President Steve Anderson. “We do what we promise to do—we hear there are a lot of other companies that promise the world but don’t follow through. We make sure we do everything we have promised the retailer.”
Furthering their appeal to environmentally aware consumers, Anderson said the company is also transparent in its production.
“Maple in general is a very sustainable category,” he said. “We added solar power here at the plant and a careful recycling system to reduce waste under the very watchful eye of our food safety coordinator. We trend well in consumer satisfaction and sustainability, and in the end, what else really matters?”
Coombs explained the company’s been prioritizing efficiency as well. “Certainly in production, we’re trying everything we can,” he said. “In the production on the farm, making the syrup, we probably have one the most efficient operations there is. Just to make sure there is no energy lost and we maximize all of our efforts, we installed lines to know if there are leaks deeper in the forest so we can deal with that promptly, to reverse osmosis which allows us to save a lot on fuel, to having solar panels on top of our buildings to really provide more than 75 percent of our electricity throughout the year.”
Meanwhile, Butternut Mountain Farm’s recent innovations serve to move the category beyond just breakfast, said Marvin. “We have been working on making value-added favorites such as spreadable maple butter and granulated maple sugar more accessible for consumers outside the Northeast.”
By emphasizing the versatility of maple syrup beyond breakfast, suppliers continue to prioritize their retail partnerships by helping to grow the category all around.
Special Report
Protein Bars
Key Takeaways
• Brands are emphasizing higher quality, lower sugar and fewer additives in their products. There's a shift towards bars that provide nutritional benefits without relying on powders and pills.
Protein-packed snacks have been gaining favor with consumers who are reaching for fuel that tastes great and can be enjoyed while double tasking at work or school or en route to the next appointment or to the gym. Protein snacks—in the form of bars, balls or beverages—allow for consumers to feel satiated and keep blood sugar levels steady preventing sharp hunger pangs and rapidly swinging blood sugars. With decadent or juicy flavors, protein snacks prove you can indulge without guilt or undoing efforts to eat and live healthier.
“The nutrition and protein bar category is well-saturated at this point and both the economic and retail landscapes are ever-changing,” said Grace Erickson, CEO of Zing Bars. “I see store locations and planogram layouts changing in the future to accommodate a busier shopper. Consumer education is driven by increased use of QR codes as well as delighting consumer palates with familiar flavors in new formats or offerings. At Zing we try to have ample blog content that promotes a healthful lifestyle and looks to educate the consumer on why our products are made the way they are.”
“The protein bar category continues to grow and is expected to hit 4.88 billion in 2024, and grow to 7 billion by 2030,” said Jacqueline Smith, President of Go Energy Foods, parent company of E3 Energy Cubes. “E3 is in the refrigerated section of that space, where the category was pioneered by one major brand. They did a great job creating a space for a healthier choice for consumers. This refrigerated space continues to grow rapidly.”
“Competition is always good for the consumer end,” Smith said. “Studies have shown that when a consumer has a choice between two or three brands, they will choose one of them, rather than making no purchase if there is only one brand to choose from.”
“The protein bar market continues
to evolve and grow,” said Scott Levine, Co-Founder of Scott’s Protein Balls. “You are seeing a better quality of product coming into the market now, lower sugar, fewer additives. Our product is refrigerated because it doesn't have any preservatives and is very low in sugar; half our line has no added sugar. We like to think we are at the forefront of this shift, while still maintaining a product that tastes great. Moving forward, we expect to add a functional line of products to our mix. The consumer is tired of taking pills to get their nutrition or supplements. Further, taking a pill is wholly
cleaner, more transparent ingredients. Consumers are becoming more educated, and they demand products that not only taste great but also align with their health goals. Sugar alcohols, for example, have been prevalent in almost every protein bar on the market for the last few decades. Consumers are now learning that many of these 'natural' sugar substitutes including erythritol and xylitol have been shown in studies to drastically increase the risk of heart attack and stroke in otherwise healthy people. A protein bar is typically consumed to make strides towards a healthier you.
“We are working on having a high standard for ingredients. We want consumers to be educated in what they are putting into their bodies, and we want people to stop being afraid of certain macro nutrients because they are all important. We’re also trying to push refrigerated protein bars out of the dairy section of grocery stores and into a grab-and-go section. Our biggest message is we want to show that food is what is fueling our lives, and we want people to be more aware of the quality of the ingredients they are eating. We want them to do a little bit more due diligence to see what kind of foods they are putting into their bodies. We especially want to push that carbs are good for you, and that fats are good for you and proteins are good for you they’re all good for you at a balance. Our product is that balance, and we want consumers to feel comfortable eating again. We want to show that healthy food can taste good.”
—
Jamisyn Smith, VP of Marketing, E3 Energy Cubes
unsatisfying. We will continue to innovate and lead the shift in the market to provide customers with more of what they are looking for from their food, rather than pills. We will continue to educate our consumer through the recent introduction of a certified nutritionist as our website and e-mail expert.”
“The protein bar category has expanded significantly, but with that growth, many brands have settled for mediocrity in quality,” said Peak Protein President Tom Chinery. “Many brands are content with being just 'good enough' in terms of quality, but we’ve played a key role in pushing the category toward
Peak Protein has been instrumental in setting the bar higher by showing that you don’t need to compromise—you can have a clean, high-protein product that doesn’t taste artificial or use junk ingredients that may harm your health.”
Protein bars manufacturers are enhancing the category with clean ingredients and working with retailers to increase product exposure throughout grocery stores. Manufacturers’ educational outreach has involved dispelling misconceptions about ingredients and emphasizing to consumers they can enjoy their food again.
REAL FOOD BELONGS IN THE FRIDGE
Category Analysis
Seafood Merchandising
Key Takeaways
• Retailers are attracting consumers through targeted promotions, signage and educational events that simplify meal preparation. The rise of value-added products, like pre-marinated seafood, aims to meet consumer demand while addressing inflation concerns.
Agrowing number of consumers are seeking out creative and appetizing ways to incorporate seafood into their diet. Seafood suppliers are fully aware and have been working with retailers to keep their assortment full and cost-effective. This year, retailers have executed viable programs that drive category growth through targeted promotions, attractive signage, and educational events. Organizations that promote and advocate for not only seafood but sustainably and safely sourced product are taking the category further through enligthening consumers and unifying seafood suppliers.
“While all seafood boasts nutrition benefits, and we know that consumers are looking for inspiration and cooking tips, the dialogue around Alaska seafood specifically should focus on key differentiators: its wild guarantee, sustainability and quality,” said Amy Dukes, Head of Retail Marketing, Alaska Seafood Marketing Institute (ASMI). “Given that 74 percent of consumers are more likely to choose seafood when they see the Alaska Seafood logo, with Millennials associating it with sustainability (77 percent ), it's beneficial for retailers to highlight that asking for Alaska is a guarantee you’ll get wild-caught and sustainable seafood every time.”
She continued, “For all seafood, continuing to educate consumers on the health benefits, including rich omega-3 content and high-quality protein, can be a strong purchase driver. We’re also seeing more interest in cooking tips and recipes that help consumers incorporate seafood into their diets more often.”
The ASMI is already laying the groundwork for educational programs scheduled to launch next year, which are designed to advocate for and support the seafood category. “In 2025, ASMI will continue to work with retailers and foodservice operators by providing support, training and materials to help drive sales,” Dukes said.
“We will also be executing a large scale consumer and media campaign to educate and inspire consumers on why to 'Ask for Alaska.' Recent research shows 74 percent of consumers wish they ate seafood more than they do, and 66 percent noted that cooking guidance would help them cook it more often. ASMI’s consumer-facing efforts in 2025 tap into those desires to inspire regular seafood consumption and reinforce seafood from Alaska as the highest quality, wild-caught, sustainable option.”
Retailers in particular are drawing consumers towards Alaskan-sourced seafood through attractive signage, educational events and promotions prepared to make meal prep simpler. “Retailers are spotlighting Alaska seafood through targeted promotions, in-store events, and by prominently displaying source info such as the Alaska Seafood logo,” Dukes said. “Research shows that 65 percent of consumers find 'Alaska salmon' more appealing than 'Atlantic salmon,' which helps drive sales. Grocers are also capitalizing on the demand for pre-marinated and frozen seafood options, making it easier for customers to prepare seafood at home and limiting waste for both retailers and consumers.
The emphasis on storytelling around Alaska's sustainable fisheries further connects consumers to the product’s authenticity and quality.”
Seafood suppliers play an integral role in responsibly and sustainably sourcing seafood and propelling the seafood category forward through maintaining a trustworthy reputation for offering safe and fresh seafood products and working with retailers to draw consumers to products in store. Aquamar who has been concentrating on making sure the company can keep up with growing consumer demand for products and value. “Aquamar sources from a diverse set of suppliers, enabling greater service reliability and more consistent quality,” said CEO Daryl Gormley. “This
sourcing strategy also provides flexibility for greater efficiency from season to season and from one geography to another, which is important as we work to provide the best price-value to our customers. Price-value has always been important, but it is uniquely important now in a post-inflationary environment in which customers and consumers are looking for value. Important considerations of the price-value equation are quality, price and convenience.”
“Our category is uniquely affected by macroeconomics and spending power, so the challenging economic realities have impacted our category across all species and offers,” said Jeff Welbourn, President – Trident Seafoods’ Trident USA business unit. “Year to date, we are starting to see some bright spots in the market driven by offerings focused on value. This, paired with the recent executive order banning Russian fish from entering U.S. markets, as well as the slowly improving macroeconomics, give us a more positive outlook towards the end of the year and going into 2025.”
“We are committed to maintaining operational excellence while we dynamically adapt to the ever-changing dynamics of the seafood industry,” Welbourn continued. “Investing in our operations has always been critical for us, and we will continue to do so. Our Fleet to Fork operational model allows us to ensure peak quality, from primary processing to customers and consumers worldwide, and we’ll continue to focus future investments on strengthening and optimizing our overall operations. This will allow us to continue delivering the best Wild Alaskan seafood in the world."
Demand for seafood is on the rise and lately, consumers are becoming better educated on how they can incorporate seafood. Industry associations and retailers are supporting seafood suppliers through educating consumers and promoting seafood within their stores.
WE DON’T FISH!
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Category Analysis
Freeze-Dried Candy
Key Takeaways
• The market is booming, driven by innovative flavors, eye-catching packaging and a strong presence on social media, attracting both younger consumers seeking novelty and health-conscious shoppers looking for lighter alternatives.
Freeze-dried candy manufacturers are delivering on consumers’ demands for a sweet or tangy indulgence that they’ve never tasted or experienced before. This year, the freezedried candy category rapidly gained momentum. The combination of catchy packaging with unconventional but still approachable flavor profiles and consistency drew in curious shoppers who were craving something they had never experienced before.
“The freeze-dried market has only continued to surge in popularity, thanks in part to social media and the appeal to younger consumers who crave novelty snacks,” said Astro Freeze spokeswoman Melinda Johnson. “But we’re also seeing attention from health-conscious buyers who are drawn to the category for lighter alternatives to traditional candies. The category is also impacted profoundly by e-commerce platforms like TikTok Shop or Meta Shop gaining popularity. These purchase platforms increase visibly to the category and promote impulse purchasing and organic reviews. At Astro Freeze, we’re propelling the category forward by pushing flavor boundaries and continuing to engage with our loyal customer base through creative marketing strategies. We’re exploring bold offerings, like spicy and sour flavors, all while remaining committed to using only high-quality ingredients that set us apart as a leader in the category. Our exciting branding and the unique universe we’ve created around Astro, our brand mascot, also give us the perfect opportunities to educate and engage with our customers, positioning freeze-dried candy as a can’t-miss snack. This perspective inspires both consumers and competitors, further expanding the freeze-dried category.”
This year, Astro Freeze nurtured partnerships at retail and launched campaigns to interact with consumers on several platforms. “There are so
many exciting things happening at Astro Freeze that will absolutely further elevate the category,” Johnson said. “In addition to the innovations surrounding manufacturing capabilities and new product lines, we’re looking to incorporate limited-edition collectibles inspired by the adventures of Astro, our Astro Freeze mascot, making the brand even more appealing. We aim to continue educating consumers through these collectibles and other engaging campaigns, launching content that educates and excites consumers, thus promoting the freeze-dried category overall. We’re also leaning heavily into our brand collaborations and retail partnerships, which will broaden the reach and visibility of freeze-dried candy. We’re also very excited to be developing key sustainability practices and packaging solutions, which we’ll be sharing more about soon!”
“Astro Freeze is making its mark by offering more than just candy,” Co-Owner Sonny Westmoreland said. “Our family-friendly mascot, Astro, excites kids and adds a fun, space-age feeling to our brand, suggesting that anything is possible. Our eye-catching packaging and unique branding create an imaginative universe, turning everyday snacking into extraordinary adventures! Consumers are just now starting to see Astro’s mission, and we have many thrilling new concepts featuring him and his journey around the candy-verse that are sure to captivate and delight!”
“Because there were already many brands before Pocas launched freezedried candy, Pocas' differentiation strategy was to create a good package design, sell products with good taste and quality at a low price, and provide aggressive marketing support to wholesale and retail partners,” Marketing Team Leader Allen Chuang said. “In addition, we plan to take the lead in the competition against other brands by launching a new product, freeze-dried
ice-cream, soon.”
Kanpai Foods stands out for merging sweetness with innovation. Its freezedried candy promises to deliver “an unforgettable taste experience.
“The freeze dry process removes all moisture from our candy, leaving behind a deliciously perfect crunchy treat,” according to the company website.
The company’s name, “Kanpai,” represents celebration and joy which doubles as the company’s mission to offer both attributes when consumers indulge in Kanpai Foods’ freeze-dried candy. “At Kanpai Foods, we believe in the magic of innovation and the power of a well-made candy,” according to the website. “Our collection of freezedried candies is not just a product but a celebration of creativity, quality and the sweet moments in life. Crafted with love, our candies are a testament to our journey—from a shared dream in a kitchen to a thriving company. We're proud to offer a unique taste experience that transcends the ordinary, inviting our customers to join us in a world where candy is not just food but an adventure.”
Pocas’ pursuit of driving category growth boils down to figuring out how to outshine and stand apart from other freeze-dried candy brands on the shelf. “It is very basic to sell better products than other brands at a better price and in nicer packaging,” Chuang said. “Our growth strategy is differentiation from other brands, product diversity and licensed product development.”
The freeze-dried candy category has progressed past the experimental phase and presents exceptional opportunities for retailers to drive category growth. Category leaders spent this year introducing consumers young and old to its out-of-the-box, unconventional flavors and textures while appealing to the light-hearted, universal snacking experience candy brings to people of all ages.
Special Report
NACS Show
Key Takeaways
• Companies emphasized the importance of quality interactions with retail and distributor partners, measuring success through new distribution points and the quality of leads generated during the show
The NACS Show brought together a diverse mixture of leaders representing categories that are particularly successful within the convenience channel. Exhibitors were hopeful that retailers noticed product launches and plans to expand distribution of select products. Other companies were eager to witness cutting-edge trends and engage with retailers to help them have a deeper understanding of their company’s mission and the value their products bring to convenience retailers. Discussions that permeated the tradeshow floor touched on the growing number of consumers trying GLP-1 medications, particularly the brand Ozempic, and how the side effects could impact their shopping needs and decisions, along with how consumers are responding to rising costs and whittling their budgets in the face of economic and employment insecurities. Overall, those who attended NACS were afforded the opportunity to engage with peers and swap observations and insights on what’s new and how to adapt pricing and shopping experiences to consumers’ frugal budgets.
“While NACS provides us the opportunity to feature new marketing materials and concepts, it is also very much
we also use the time to continue to build relationships.”
This year marked Super Coffee’s fifth year at the NACS Show. “The primary key metric for the show is number of quality interactions with our retailer partners,” Chief Revenue Officer Jake DeCicco for Super Coffee explained. “Second metric is number of quality interactions with
we’ve had our own booth and in others, we’ve participated by partnering with our brokers and showcasing key products in their booth(s),” explained Jadi Anderson, Director of Marketing and Product Development. “Each year our team reviews the leads and conversations developed at each show. We also assess our branded product portfolio to
“Retailers are getting more aggressive with pricing and leaning on their suppliers for innovation and support to grow sales. We’re working together to find new ways to test and win. Our retailer partners are asking how their feedback is influencing Rudolph Foods’ product development and want to participate in the flavor development. They also want our input on the state of the category and what we’re seeing from consumers.”
— German Reyes, Rudolph Foods' Southern Recipe Small Batch
our distributor partners. Third metric as a follow-up to the show is number of new total distribution points gained.”
“We’ve been exhibiting at the NACS show for at least 15 years,” German Reyes, Director of Sales and Strategy for Rudolph Foods, which manufactures the Southern Recipe Small Batch brand, said. “There are many metrics that we
“We've been really encouraged by convenience retailers starting to lean into a future growth mindset. You can really see the difference in the retailers who have separated themselves from the pack and fall in that ‘Customers Favorite’ category have really prioritized the future needs of customers and put an emphasis on investing in tomorrow.”— Jake DeCicco, Super Coffee
a selling show,” explained Jeff Gabler, COO and EVP Sales and Marketing for Smokey Mountain Snuff. “One of our true measures for the show is how many of our retail partners visit our booth and/or join us for after-show dinners and events. Those face-to-face meetings are very important to us, as
use to gauge participation at the event, such as retailer touch points and the connections we make with potential customers. The quality of leads is also a very important metric.”
Kenny’s Candy has exhibited at NACS for about 10 years. “Our participation has varied in the past—some years
ensure that if we’re going to participate, we have offerings that speak to the attendees and can help solve a key need for their shoppers.”
Smokey Mountain Snuff was proud to feature its best-selling caffeinated pouches. “It is such a compliment to continue to hear from our industry partners that we have the best tasting pouch products on the market,” Gabler said. “We are, and will always be, America’s original smokeless tobacco alternative, and our evolution to meet consumer preferences is something we are very proud of. One of our main speaking points is to inform retailers that what was once a niche market that we created, is now a category. SMC has numerous competitors now, and we welcome that, as it is validation that consumers do indeed want alternative products. What’s the saying—‘imitation is the sincerest form of flattery?’ We envision growing the pie for everyone.”
One notable goal for the Super Coffee
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Special Report: NACS Show
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team was to expand distribution on its 15 oz Super Coffee XXTRA. “I hope attendees walk away very excited about our Super Coffee innovation and feel energized for thoughtful and strategic conversations about how together we can serve customers in the future of this dynamically evolving channel,” DeCicco said.
“Our primary goals are to capture innovation trends and establish key relationships with buyers,” Reyes said. “We hope that attendees walk away with a better understanding of the pork rind category—the amazing taste, the quality of our pork rinds and a sense of our upcoming product innovation.”
“For NACS 2024, the Kenny’s team is looking to continue to grow our relationships in the convenience channel and support those that we currently work with,” Anderson said. “In addition, our Wiley Wallaby grab-and-go offerings will be a key focus for the team during the show. These items are an excellent addition to our lineup, offering a variation to our standard Soft & Chewy Candy but maintaining the quality everyone associates with the Wiley Wallaby brand. The new format, sizing, and price point don’t negatively impact sales of existing items but offer a new way to experience the Wiley brand. We also continue to introduce customers and consumers to our popcorn brand, Sweet Chaos. Offering both savory and sweet popcorns, this brand is sure to have a flavor for every consumer. Most of our products are also offered in two sizes: 1) An immediate consumption offering, allowing shoppers to grab and go without committing to a larger size, and 2) A pantry, or road-trip ready offering with multiple servings.”
DeCicco anticipated NACS Show attendees would engage in discussions around the overnight hit Ozempic and ongoing changes to what consumers expect and demand from their shopping experience. “I believe one of the biggest hot topics will be the widespread impact of GLP-1 drugs like Ozempic and the shifting landscape of customers’ needs,” he said.
“A hot topic that we hear about a lot is inflation and how it’s impacting sales
and in store traffic,” Reyes said. “Many retailers are reporting less foot traffic and smaller basket sizes due to rising costs.”
Relating to the convenience and fuel retailing industry, one ongoing conversation Kenny’s Candy expects to hear at the show will center around inflation and the expected questions people will have. “Our industry has already started to see conversations centered around inflation. How does inflation impact manufacturing costs? Are those costs being passed on to retailers and consumers? Are consumers going to continue to bear the increases on impulse purchases or will they focus their dollars on pantry necessities? With recent uncertainties around imports, conversations around domestically sourced products are also sure to be a focus for some,” Anderson said.
Manufacturers are keeping an eye on ongoing category trends to see how they unfold and how these trends and consumers’ subsequent expectations could influence their product innovation and packaging. These trends run the gamut from acknowledging clean eating and preventing health problems to keeping products accessible through value-driven prices.
“One big trend that we are following closely is the damaging effects of high sugar and high prices,” DeCicco said of the category trends Super Coffee is addressing. “For the first time, I believe we are really starting to see the impact of inflation hurting both dollars and units in most categories. Mainly the legacy brands with high category share, high sugar and now high price points are dragging down their respective categories.”
“One of the latest trends in the snack food aisle is how brands are offsetting rising costs by using promotional programming to increase sales,” Reyes said. “The biggest trends in flavor are spicy and honey. Two things that we offer! Several of our Southern Recipe Small Batch flavors have a kick such as our Sweet BBQ and Spicy Dill. We even have a Hot Honey flavored pork rind!”
“Consumers are looking for a fun, permissible indulgence that fits their dollar,” Anderson said of the latest category trends. “They’re not necessarily
looking to downgrade the quality of their snack but they also don’t want to see monumental downsizing either. It will be key for the industry to mitigate costs in the best way possible. We also see better-for-you as a trend that will remain a high priority for consumers. Over the past few years, we’ve seen better-for-you become an individualized trend with some consumers searching for the right ingredients, others looking for certain certifications, and others still looking for specific numbers in the nutritional panel. We expect this to continue to evolve and are looking forward to seeing how each brand interprets how better-for-you fits for them.”
“Is caffeine the new nicotine?” Gabler rhetorically asked of one of the developing trends which Smokey Mountain Snuff has been dedicating time and attention towards. “Because of their popularity, caffeinated pouch products are growing and expanding throughout different departments in the stores. Category managers are still deciding where these products belong. There’s a bit of an internal struggle, I believe, but we’ll get past that soon. SMC was the first to move our pouch products from behind the counter, and we will continue to guide our partners to make these products more visible.”
Super Coffee has been inspired by convenience channel retail partners that are motivated to rise above competitors and are disciplined to hold their position as a destination for consumers.
“We've been really encouraged by convenience retailers starting to lean into a future growth mindset,” DeCicco noted as one of the most compelling developments in the convenience and fuel retailing industry in recent months."
The NACS Show provides convenience retailers and manufacturers with a robust setting to explore solutions, better understand consumers’ demands and uncover ideas and trends retailers can implement in their stores and manufacturers can apply to their products. The show gives attendees and exhibitors space and resources to conduct business and achieve their goals in a targeted and streamlined place where everyone has like-minded standards and values.
Special Report
PLMA Show Preview
Key Takeaways
• The show offers exhibitors and attendees a unique environment to connect with key retail decision-makers, fostering potential business relationships through in-person interactions.
• Attendees can expect discussions on pressing topics like supply chain challenges, pricing and emerging trends in private label products, highlighting the evolving landscape of the industry.
For the exhibitors and attendees who plan and make use of the online and published resources the PLMA offers to its members, this year’s PLMA Show guarantees an opportunity to learn, network and excel amongst trusted industry peers. A testament to the caliber of companies in attendance and the opportunities the show presents to exhibitors and attendees, this year’s PLMA Show is sold out and those who apply will be waitlisted.
“Our show is not like any other,” said PLMA President Peggy Davies. “We truly are unique in everything that we do. Our show provides a unique opportunity for our members to connect with either a category manager, a buyer or a senior executive at a retailer to meet and talk about the things they produce. The retailer the kind of products they are looking for. It’s a unique business networking setting that allows not quite the same setting as sitting across the desk from a buyer or a category manager because there is a lot more buzz for sure and it’s just a different atmosphere that hopefully creates a different conversation. And can create an interesting business relationship over time. I would also say that it’s not only a one-stop sourcing event for retailers because we have been honored as one of the largest trade events in North America but I think all those things bundled together make us unique and within that defines a bit of a role of our specific tradeshow.”
She added, “As much as we tried to do online shows during the pandemic, it was a real relief to us and a pleasure that people wanted to come back to in person and feel, smell, taste and experience everything that goes along with being in person.”
Mondiv Food Products has been exhibiting at the PLMA’s Private Label Trade Show for a quarter century. Even though Mondiv Food Products doesn’t have benchmarks in place to deter-
mine whether the team had a successful show, it’s a given that the company will be in attendance each year, which is something potential and existing partners can depend on. “We don’t necessarily have a metric each year; we are the PL leader in our category so attendees pretty much can expect us to be there,” explained Rob Wagner, Vice President –U.S. Sales for Lassonde Specialties.
The goal for Mondiv Food Products is to launch at least one product at the show and to spend time garnering feedback from retailers. “Each year we introduce at least one innovation and this year is no exception; we have been in the New Product Showcase multiple time over the years; our goal is not only to showcase new products but also listen and respond to opportunities brought forth from customers,” he said.
To help PLMA members prepare for the show, a great place to start is with the PLMA’s online events. “To think about how to get ready for this year’s show, something we started last year, is a live online events under our Lunch and Learn banner called Meet the Retailers,” Davies said. “We have two retailers scheduled right now for next month, we always do this on a Thursday so Oct. 10 will be one of the ladies from Giant Eagle and then on Oct. 17 some people from Topco will be presenting.”
“The reason we started this relates back to how do you prepare? So by our member manufacturers and exhibitors listening in to this 40-45 minute discussion with these retailers, they can understand what the retailer is looking for, what trends they have in their focus, how efficient they want to be during the show and try to keep our exhibitors with a focus on how to have productive conversations,” she continued. “We have a propriety program called Show Navigator which we have had for many years, it launches next week. It enables exhibitors to see which retailers have
registered to date and it’s constantly updated and it allows retailers to find exhibitors, find products and if they want to set up a meeting with an exhibitor, they can use within Show Navigator our function called Matchmaker where they can set up meetings. It’s efficient. We keep Show Navigator open until the end of January, so if there is follow up after the show or networking is required in December or January, we leave Show Navigator open for a good two months after the show.”
Each year the PLMA publishes its program guide hand to refer to. “We know people also use that as a way to refresh what they might be looking for,” Davies said. “It’s just a wealth of information broken down by exhibitor in alphabetical order, broken down by category, food and nonfood separated so there’s lots of advantages to keeping our program guide handy.”
The PLMA is committed to achieving its longterm goals. “One of the reasons our long term goals have been realized is the fact that we are now at almost 5,000 members with significant growth since the end of Covid,” Davies said. “Our members I trust find value in being a member and try to get the most of out of the membership through our professional development programs, business networking opportunities and all of the different ways we offer that they can successfully conduct business.”
Exhibtors and attendees have come to count and expect an unparalleled experience when they attend the PLMA Show. The PLMA show provides them with the opportunity to interact with decision-makers and cultivate partnerships with companies that want to see your category flourish. Conversations at this year’s PLMA Show will likely cover issues that are informing consumer spending such as supply chain obstacles, competitive pricing and category trends.
