September 2023 Grocery Insight

Page 1

Grocery Insight

Inside
Report: NACS 2 • NFRA Preview 4 • NFRA
Juice 6 • NFRA Preview: Eggs 8 • NFRA
Butter 10 • Global Produce & Floral Show
Special
Preview:
Preview:
12 • Q&A Interview: Steve Mayer,
Preview: Apples
Bashas' 14

Special Report

NACS

TheNational Association of Convenience Stores (NACS) provides an opportunity for attendees to find the latest goods and services that convenience stores offer. The NACS Show features 400,000 square feet of exhibit space, divided into six categories: technology, candy/snacks, facility development and store operations, food equipment and foodservice programs, fuel equipment and services and merchandise. Exhibitors and attendees continue to prioritize NACS as it provides an unmatched experience to discover new products, meet with partners and stay ahead of consumer trends and preferences all while showcasing products.

Many NACS exhibitors noted that the show offers them the chance to showcase their latest innovations and products.

“Our priority at each NACS Show is to help retailers maximize sales and showcase our powerful product line of new snack innovations that will help convenience customers win. We wanted to showcase these new snacks that will be available to c-store retailers, along with our foodservice innovation,” said Ami O’Keefe, Sr. Commercial Strategy Manager with Kellogg Company.

“Kellogg Company is committed to helping retailers maximize sales through strategies that optimize assortment, merchandising, promotions and shelf enhancement,” O’Keefe continued. “We have a powerful product line of new innovations to help convenience customers win. Our innovation is based on consumer occasions—we are always paying attention to what the consumer wants based on the latest trends and data. We are confident our newest products fulfill these occasions, ensuring our brands continue to be a staple on c-store shelves.”

The upcoming NACS Show will be held in the Georgia World Congress Center from Oct. 3-6, 2023, with the conference running from Oct. 3-6 and the Expo from Oct. 4-6.

The Hershey Company recently outlined the company’s goals and expecta-

The four-day NACS Show general sessions focus on the role of inspiration and how it can be applied to devising a memorable experience for consumers, establishing stellar, cohesive teams and influencing new ideas and seeing how purpose and inspiration are symbiotic. The general sessions are scheduled for Oct. 3-6 throughout the NACS Show General Session highlights include:

• Oct. 3: Keynote speaker, Kevin Paul Scott, Co-Founder of leadership consultancy ADDO Worldwide, will address inspiration, a key theme for the week

• Oct. 4: “The Power of Road Trips” panel featuring Stuckey's Chairwoman Stephanie Stuckey; Reporter, News Producer and Founder of Gas Station Gourment, Al Hebert and Farmer, Restauranteur and Founder of Gas Station Tailgate Review, Stafford Shurden.

• Oct. 5: Two panel discussions centering on how inspiration can be applied to operations and innovation; “Redefining Your Workforce” and “Inspiring Innovation”

• Oct. 6: Actor, author, philanthropist and WWE superstar John Cena will discuss how inspiration can lead to incredible achievements and make an impact in everyday life. Cena works on behalf of several charitable causes; notably he is the only celebrity to grant nearly 700 wishes with Make-A-Wish.

tions for this year’s show.

“Visitors to the Hershey booth will see various new products and hear from experts in the convenience store space,” said Brandon Mayer, Senior Director, US Convenience, The Hershey Company. “Hershey continues to build on its vision to be a leading snacking powerhouse with both sweet and salty

snack offerings, to meet consumers across a variety of snacking occasions in a significant channel—convenience stores.”

“Hershey is continuously focusing on its top categories for convenience stores, which include Reese’s being the top-selling brand in this channel, along with the gummies, salty snacking and better-for-you categories,” said Mayer. “Hershey’s category management team will help retailers drive sales by sharing our latest insights on key c-store topics including foodservice, planograms and pack type strategies. Retailers and distributors should work directly with their Hershey sales representatives to schedule business meetings during the show. One-onone time with our retail and distributor partners drives joint success in the c-store channel.”

NACS not only provides a platform for companies and leaders within the space to showcase their latest products but also offers companies who have not entered yet into the c-store space the opportunity to do so.

“We were a first-time attendee, and as a company we are starting to break into the convenience store market, so we were very excited not only to get in front of people again after 18 months but showcase our company as an option for the c-store channel,” said Billy Reilly Jr., National Chain Account Manager with Catania Oils in a previous interview. “Our goals were to introduce Catania to the channel, get a sense of the specific needs of food service vendors, meet decision makers and network with top distributors. I feel that we were able to network and get a good feel for the demand for food service in the c-store channel. We are committed to serving the food service division for c-stores. In the last year, we’ve introduced new packaging designs with the convenience store space in mind, while still filling them with the same high-quality oils we offer for traditional retail and foodservice.”

Grocery Insight (ISSN 2330-1651), a monthly magazine, is published by Executive Insight Properties. Subscription rates $75 per year US, $100 Canada, all other countries $150. © 2023 Grocery Insight. All rights reserved. No item or portion may be reproduced without written permission from the Publisher. Postmaster: Send address changes to: Grocery Insight, P.O. Box 2067, Issaquah, WA 98027 PG 2 / GROCERY INSIGHT

NFRA Preview

TheNational Frozen & Refrigerated Foods Association (NFRA) Convention to be held in San Diego this October will celebrate the versatility, innovation and convenience of this grocery segment. Organizers are building on last year’s event with new eco-friendly and next-generation-focused initiatives to support the integrity of the event and the segment’s future.

“In 2022, the NFRA Convention noted record attendance. Industry leaders in the refrigerated and frozen categories welcomed the opportunity to reconvene in-person once again,” said Kate Landis, Senior Director of Marketing, NFRA. “As we approach this year’s event (Oct. 7-10 in San Diego), the momentum continues to build, with registration tracking ahead of last year’s numbers. Each year, this premier event creates a unique opportunity to bring the entire industry together under one roof and facilitates more than 5,000 business meetings between retailers and their trading partners over the course of three days. In addition to business meetings, the NFRA Convention showcases the latest product innovation in frozen and refrigerated dairy via our signature Taste of Excellence opening reception, as well as during the Café NFRA.”

The Taste of Excellence reception presents an opportunity for manufacturers to showcase their products that are prepared by the venue’s staff—this year being the San Diego Marriott Marquis & Marina. Similarly, companies can also take advantage of the audience expected to frequent Café NFRA, an informal venue and gathering place ideal for more casual meetings, to promote their snack products via samples.

Palermo’s Pizza will be among the featured manufacturers at Café NFRA. “Palermo Villa is a member of NFRA,” said Senior Director of Marketing John Leonardo. “There are numerous benefits we receive because of our membership. With an overall goal of promoting more frozen and refrigerated food consumption, we have been able to leverage some of the marketing assets the NFRA has provided especially centered around Frozen Food Month, which is held in March. Additionally, we have had key personnel from our team sit on the board which has provided the opportu-

nity to attend educational sessions and network with others in the industry. This has allowed us to gain insight into best practices.”

Specific to the NFRA Convention, “The NFRA show provides us with a unique opportunity to visit with many of our key customers over a few days,” said Leonardo. “Our goals are to make sure we are best servicing our customers’ needs by having dedicated time to understand any challenges or opportunities our retailer partners are facing and or seeking. Additionally, the NFRA show is also a great opportunity for us to share a sneak peek at some of the new items our team is working to commercialize. As a company, we regularly participate in the Taste of Excellence which allows our retail buyers to sample some of our newest innovation.”

“Hawaii's Own is excited to sponsor this year's Taste of Excellence Cocktail bars, allowing us to present the captivating flavors of our tropical juice through a range of alluring cocktails,” said company spokesperson Jamie Davis. “Our participation is not just about sponsorship; it's a commitment to engaging with industry peers and capturing their insights to continuously elevate our offerings.”

Manufacturers appreciate the opportunity to build their networks at the NFRA Convention, and Landis explained how the organization is making adjustments to the event to ensure it remains an environmentally viable as well as impactful and worthy investment of time and resources—particularly for upand-coming leaders.

“In an effort to reduce paper usage, attendees are encouraged to share materials digitally in their various business meetings. NFRA equips meeting rooms with the necessary tools and technology to conduct business efficiently. We’re also leveraging QR codes as a way to share information broadly with our attendees,” Landis said.

Meanwhile, the NFRA is also continuing to explore ways to engage with the future generation of industry leaders, she said. “This year’s roster of attendees includes student and adviser representatives from various food marketing programs around the country. Encouraging their attendance and offering op-

portunities to shadow current business leaders is a great way to showcase the value of events like the NFRA Convention, while also connecting attendees with prospective future business leaders,” she said.

Attendees should keep a few objectives in mind to ensure they maximize their time at the event, said Landis. “The NFRA Convention allows attending participants to save time, money and travel while conducting business all in one place, under one roof, with access to the entire industry. Maximizing these opportunities is one of the best ways to get the most out of their investment. Experiencing the Taste of Excellence opening reception, as well as the Café NFRA, offers attendees the ability to see, touch and taste the latest innovation in the categories, including many emerging brands you may not find at other events,” she said.

Sometimes, the timing of the show doesn’t work out for product introductions, but NFRA makes ample opportunities for promotions even outside the event. “Unfortunately, most of our innovation for 2024 are not available yet so we’ll be unable to showcase them for tasting,” said Janice Chopra, Chief Customer Officer, Traditional Sales with Tropicana Brands Group. “However, we are advertising our products in the NFRA newsletter and NFRA’s ReDiscover Dairy & Frozen Promotion in 2024.”

Just as important as business meetings, networking opportunities are extremely beneficial to attendees, Landis continued. “Whether it be the breakfast sessions, lunches or evening receptions, these functions are a great way to connect with industry peers, exchange information and find opportunities for collaboration. Lastly, we encourage attendees to recognize and celebrate excellence in the industry, via the presentation of our Refrigerated Hall of Fame inductees on Oct. 9, as well as the winners of the Golden Penguin merchandising competitions on Oct. 10.”

“NFRA offers an extensive list of opportunities to connect brands and retailers to consumers to drive the sales and consumption of frozen and refrigerated dairy through PR campaigns, Real Food Frozen and Dairy and Beyond and our annual promotions," she said.

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NFRA Preview

Juice

Exhibitors within the juice category are excited to attend this year’s NFRA show to trade ideas and objectives with retailers. Leading companies are eager to discuss how to increase basket rings and consumer traffic in the juice category.

“We at Tropicana Brands Group (TBG) look forward to connecting with our retailer partners during this time, to understand their key initiatives and share our exciting news for 2024,” explained Janice Chopra, Chief Customer Officer, Traditional Sales. “Since we have invested in our supply chain and have assurance of supply, we are excited about 2024 and beyond as we continue to nourish and delight our consumers.”

"For a company like Hawaii's Own, the prospect of engaging with existing and prospective customers, as well as industry peers, over a condensed period holds significant appeal," said company spokesperson Jamie Davis. "Experience has taught us the vital significance of face-to-face interactions, and NFRA excels in facilitating these interactions. The ability to meet personally, establish visual connections and cultivate new relationships, as well as reconnect with colleagues, is paramount. With the entire industry assembled under one roof, driven by the shared goal of continuous improvement and innovation, NFRA's appeal as a solid investment for Hawaii's Own becomes evident. The concentrated networking and focused discussions amplify the event's value, aligning perfectly with our aspirations as a company."

In preparation of the show, Tropicana Brands Group is looking forward to sharing its perspectives on how it is positioned to support its retailer partners. “In the pursuit of sustainable, profitable and mutual growth in the upcoming year and beyond,” Chopra said. “We hope to ignite customers’ imaginations about the relevance of the category for today’s shoppers and the role it—and specifically TBG’s brands—can play in enhancing their business. We know a powerful juice-based fresh beverage set has a halo effect on retailers’ own brands and their reputations as providers of these products. We know brands

like Tropicana are powerful basket builders and that they resonate with key shopper demographics, be they multicultural shoppers or shoppers with young families.”

“We have a great vision for the evolution of the chilled beverages case and the juice category’s role in it,” she continued. “This year, the OJ category has experienced volume challenges due to inflationary pressures of shoppers, but we view these as transitory as we respond with value offerings to drive transactions back into the category, innovation to premiumized and drive margin growth, occasion-based packages that better position our retail partners to capture the resumption of on-the-go traffic, and direct shopper messaging to counteract barriers to category participation. We have a great lineup of innovation, exciting shopper activations and creative support to put behind our flagship Tropicana Pure Premium orange juice and Tropicana Premium Drinks brands. We have new news with an incredible shopper value in our Dole Chilled brand—a brand with great consumer equity that signifies premium quality at an affordable price point, and an underleveraged value brand in Twister. We have security of supply on orange juice so our retail partners can have confidence in their surety of supply with us, and we are back with new capacity behind the powerhouse growth brand, Starbucks. All these reasons to believe mean we’re excited and poised for growth; we hope to exit the event having generated that same level of excitement amongst our retail partners.”

"Our primary objectives for Hawaii's Own at this year's event revolve around strengthening our presence and leadership in the juice category," Davis said. "We aim to deepen relationships with our valued retail partners, understanding their preferences and needs to align our offerings effectively. Additionally, we intend to seize the opportunity to expand our customer base by showcasing the distinctive flavors and nutritional benefits of tropical juices, catering to those seeking fresh and tropical options. Since our establishment in 1959,

we've been steadfast in underlining the significance of the category. The evolving landscape of the frozen segment has been remarkable, and we're proud to have thrived for more than six decades. As consumer preferences shift toward tropical flavors, our line of Hawaii's Own tropical juices perfectly aligns with this demand. We're dedicated to championing these flavors that consumers seek, reaffirming our commitment to innovation and growth."

TBG has been taking strategic steps to position the company towards growth opportunities and to continue to competitively perform. “Our new ownership structure really unleashes our maniacal focus on the growth and performance of this category,” Chopra said. “We’ve invested in new capabilities across insights, innovation and shopper marketing activations; we’re building out new ecosystems of innovation partners and have opened up cutting-edge R&D centers. We are bringing edge and cultural relevance to our consumer communications. We are the ‘OG’ of OJ—the original creators of the chilled RTD orange juice category—but we are not a stodgy brand or company. Quite the opposite. Our founder’s belief, vision, agility and history of experimentation—whether it is with new business models or product development—is in our DNA. We’re excited to bring the modern expression of that heritage to life with each and every retail partner as we collaborate in new ways to drive profitable growth.”

"Hawaii's Own has consistently demonstrated a commitment to innovation and product excellence," Davis said. "Our unique and refreshing tropical juice offerings are crafted using only the highest quality tropical and domestic fruits, sourced internationally and locally when possible. We understand that consumer preferences are evolving, and we pride ourselves on staying ahead of these trends. Hawaii's Own continuously conducts market research to identify emerging consumer preferences, allowing us to develop new flavors and product lines that resonate with our audience. This consumer-centric approach is a driving force behind our leadership in the juice category."

PG 6 / GROCERY INSIGHT

NFRA Preview

Eggs

Of all the categories to be showcased at the annual NFRA Convention, eggs would be the only unprocessed food that are also singularly dependent on the health of the hens that lay them. Therefore, leading egg suppliers are taking advantage of the opportunity to educate and promote the safe and ethical ways they care for their chickens in order to produce the most nutritious and highest grade eggs possible.

“In our industry, there is nothing more beneficial than the networking opportunities an event like NFRA provides,” said Eric Martin, VP of Sales at The Happy Egg. “Having the opportunity to see and meet with our retail partners in a different setting where we can be more laid back as we discuss current business needs is invaluable, and we always look forward to it.”

Vital Farms seeks to maximize its affiliation with the NFRA year-round.

“Being a part of the NFRA community provides unique opportunities to connect and build relationships with our customer stakeholders during the annual convention, the executive conference and June Dairy Month,” said Peter Pappas, Chief Sales Officer for Vital Farms. “We value the organization's forum for industry dialogue and promotion of products like Vital Farms eggs and butter.”

Pappas continued, “We are always laser-focused on working with retailers to be able to bring our ethically produced egg and butter offerings to even more tables across the country and continuing to invest in becoming a leader in each category.”

Martin with Happy Egg explained the company’s objectives for the show.

“Aside from having the opportunity to connect face-to-face with our partners and retailers, we hope that people walk away from this year’s event knowing that Happy Egg is doing things differently. We’re the No. 1 free range egg brand in the nation. We’re challenging the category and bringing the very best eggs to the market by treating our hens in the very best manner,” he said.

Specifically, “We’re coming out of

Highly Pathogenic Avian Influenza (HPAI) and as the category normalizes, outdoor access is a greater share of the entire category than it’s ever been before,” Martin said. “This

“Aside from having the opportunity to connect face-to-face with our partners and retailers, we hope that people walk away from this year’s event knowing that Happy Egg is doing things differently. We’re the No. 1 free range egg brand in the nation. We’re challenging the category and bringing the very best eggs to the market by treating our hens in the very best manner.”

— Eric Martin, The Happy Egg

means retailers may not know the best ways to pivot and provide consumers with the products they’re actually seeking, and we hope those retailers take the time to visit the Happy Egg team at NFRA so we can help them solve that.”

These egg leaders are eager to connect with partners during the convention and have much to offer.

“Vital Farms is anchoring our approach in consumer-led needs and strong category insights,” said Pappas. “Most of our SKUs have a higher velocity than the category average. We have core SKUs that are high performers relative to legacy SKUs in some of our retailers' current sets. As we continue to demonstrate to our retail partners that adding incremental Vital Farms SKUs to their assortment leads to better category performance, we are confident that we will add more SKUs to existing shelves in the coming years. This strategy provides the opportunity to drive growth at both newer and legacy retail partners; where product innovations like True Blues or Restorative eggs also add to our depth on the shelf.”

Months ahead, Vital Farms is already ramping up for the show.

“Our sales team is hard at work reaching out and scheduling appointments

now,” Pappas said. “We look forward to thoughtfully preparing for retailer meetings, so we'd love to hear any specific questions they have in advance so we can make the most of our short time together.”

“NFRA is a great time for us to remind our partners that we are here as a resource,” Martin with Happy Egg said. “We engage with the end consumer in a way no one else in our category does. Our insights and analytics team provides top-of-the-line category insights to help our partners assort their set in the most efficient and profitable manner based on how consumers are engaging at shelf. We’re easy to deal with and will provide challenge, but ultimately want to be partners that foster unique mutual solutions for a better shopping experience for the consumer. Whenever there is a need, we want to be their first call—and we’ll take it happily. Our name is ‘Happy Egg’ after all! We are a talented team filled with people who are genuinely eager to help our retailers and partners win with their shoppers.”

Fundamentally, “Consumers have come to expect a higher quality and better-tasting egg that can only be found through outdoor access,” said Martin. “The category is continuing to shift, and we look forward to engaging with folks to help them find better ways to assort their category and meet consumer needs. We’re a fun, energetic group that looks forward to meeting with anyone and everyone.”

While neither Vital Farms nor The Happy Egg Co. will be participating in the Taste of Excellence or Café NFRA to showcase products this year, Pappas with Vital Farms lauds the NFRA for providing those opportunities.

“It’s a great forum to highlight innovation and something we always consider when we announce a new product,” he said.

According to Kate Landis, Senior Director of Marketing for NFRA, Eggland’s Best and Pete & Gerry’s are participating in Taste of Excellence this year, while Eggs Unlimited will showcase products in Café NFRA.

PG 8 / GROCERY INSIGHT

NFRA Preview

Butter

Butter manufacturers find great value in their memberships with the National Frozen & Refrigerated Foods Association, specifically through participation in the NFRA Convention representing just a fraction of their total return on investment. Another major benefit would be the NFRA’s June Dairy Month which celebrates the innovations in the refrigerated dairy aisle. Category leaders are excited to take advantage of the networking opportunities at this year’s NFRA Convention to not only connect with existing and prospective partners, but also to tell their unique product stories, whether it’s about the versatility of butter or the ethical way in which it is produced.

Vital Farms will be showcasing both its eggs and butter offerings. “Being a part of the NFRA community provides unique opportunities to connect and build relationships with our customer stakeholders during the annual convention, the executive conference and June Dairy Month,” said Peter Pappas, Vital Farms’ Chief Sales Officer.

Epicurean Butter is likewise an NFRA member company. “We find value in the June Dairy Month Promotion kit and all of the programming around June Dairy Month,” said Chief Commercial Officer Niloy Phukan. “We also attend the NFRA executive conference where we are able to meet with executives from all the major retailers as well as other manufacturers.”

Points of discussion in these meetings vary; for Epicurean Butter, a priority is to promote butter as an item that goes beyond just the refrigerated dairy case. “Our goal at this year’s NFRA is to meet with other manufacturers that could use butter in value-added items that they sell in the refrigerated and frozen sets,” Phukan said. “Butter is an ingredient in so many items, and we hope to show our value as an addition to many of the manufacturers who are launching value-added items. Retailers also have an opportunity to pair butter with produce, raw or cooked proteins and their in-store meal kits.”

Phukan elaborated on some of the possibilities of value-added items that feature butter on the heels of the Sea-

food Expo in Boston, MA earlier this year. “Retailers are starting to see and understand the importance of premium butter to their set,” he said. “Boston Seafood [Expo] was great because our product works great with fish, and so we’re starting to see the value-added seafoods. Think of oven-ready trays with seafood and butter and skin packs where the seafood has the butter on top in a tight pack. Those are two ways we’re helping solve the value-added piece for seafood.”

Epicurean Butter has a place in this trend toward value-added in the grocery store. “All these companies are then turning around and selling these value-added items to retailers,” Phukan said. “From the meat and seafood and the deli and the grab-and-go, that convenience is the big trend. You see all these meal kits where people are ordering them to their house, now they’re getting them at the grocery stores as well because it’s less packaging. It’s the same convenience you’re getting from meal kits during the pandemic, but you can now get it at the grocery store, and you’re seeing that convenience is such a big trend. People are looking for ways to spend less time in the kitchen. This is a way with these value-added produce kits and seafood kits and meal kits and premium butter—flavored butter—just helps make that a little bit better. Makes it a lot more delicious.”

Fundamentally, Phukan said he wants to utilize the opportunity at the NFRA Convention to emphasize “that butter doesn’t just have to live in the butter set in the grocery store. We have seen retailers merchandise butter by seafood, steaks, produce and all over the perimeter of the store,” he said.

Vital Farms is likewise planning to use the NFRA Convention platform to collaborate with retail partners to increase distribution of the company’s ethically produced eggs and butter offerings, said Pappas.

Supporting the company’s messaging is its website that elaborates on its methods for the ethical raising of its animals and celebrates some of the family farms doing the work. “Vital Farms began with a single farm and a commit-

ment to animal welfare,” according to its marketing literature. “As we grew, we didn’t make that farm bigger; we found more like-minded farmers who put animals first. Today, these ethically minded family farms share our passion for animal welfare and sustainable farming practices.”

Vital Farms is guided by ‘The Five Freedoms’ pertaining to the raising of its dairy animals: freedom from hunger and thirst; freedom from discomfort; freedom from pain, injury or disease; freedom from fear and distress; and freedom to express normal behaviors. Vital Farms also has a FARM 4.0 certification from the National Dairy Farmers Assuring Responsible Management (FARM) Program.

While the self-policing of its production is admirable, Pappas said the company wants to emphasize with its partners that it is anchoring its approach in consumer-led needs and strong category insights. “Most of our SKUs have a higher velocity than the category average,” he said. “We have core SKUs that are high performers relative to legacy SKUs in some of our retailer's current sets. As we continue to demonstrate to our retail partners that adding incremental Vital Farms SKUs to their assortment leads to better category performance, we are confident that we will add more SKUs to existing shelves in the coming years. This strategy provides the opportunity to drive growth at both newer and legacy retail partners.”

Phukan said he hopes retailers can come to the NFRA Convention with an open mind on how to merchandise butter. “Consumers are looking for convenience and trying to spend less time in the kitchen while still serving delicious meals for their family. Flavored butter accomplishes all of those things when paired with meal kits, raw or cooked proteins and produce. Steamable bags with fresh cut veggies and a dollop of butter is a perfect example,” he said.

“It is a great way to taste new items amd innovations from many of the manufacturers at NFRA," he added. It is also a great opportunity to discuss trends in the industry and how these new items can help drive category growth."

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Global Produce & Floral Show Preview

Apples

Exhibitors are gearing up for the latest tradeshow, the International Fresh Produce Association's Global Produce & Floral Show, which has more than 19,000 attendees from more than 40 countries. The show is scheduled for Oct. 19-21, 2023, in Anaheim, CA. Exhibitors participating in the apples category have been working hard yearround and are excited to showcase their latest product developments. Leading exhibitors are looking forward to reconnecting with partners and retailers in the industry as well as presenting their new products and initiatives.

“We are looking forward to exhibiting at the Global Produce and Floral Show,” said Brianna Shales, Marketing Director of Stemilt Growers. “The timing of the show occurs during our apple harvest, and we will have good insights to share with retailers on the opportunities within the crop. The Washington apple crop is estimated to be up significantly over last year’s small crop. At Stemilt, we are excited to share that we’ve grown our volume of consumer favorites like Honeycrisp, Cosmic Crisp and SweeTango and organic apple volumes. We will feature new branded items at the show and will be making a big splash about our sustainable 4-pack for apples, called EZ Band. We have a full line of these packages that will help retailers sell bulk-sized organic apples in a paper-based packaging format.”

“Stemilt has gone through a period of both growth and change in the apple category, and we’re very excited about how the mix of varieties we have aligns with consumer preferences,” Shales said. “We’ve also been innovating with new varieties and packaging to help retailers grow their sales of apples.”

“We look forward to telling the tale of the upcoming 2023 crop,” said Starr Ranch Growers’ Director of Business Development Dan Davis. “Each crop presents unique challenges, and this show gives us the opportunity to discuss them in person with everyone at one venue.”

“Throughout the years, our core product has been apples,” said Tony Freytag, evp with Crunch Pak. “We are in the center of the apple world as far

as the US goes, but we use apples as a major component to also create more snacks. We have two relative customers: the youth of the US, which is purchased by their parents and then their parents are the other one. We have become the largest snack provider in the produce aisle today, when you come to single serves—3-ounce, 5-ounce, things like that—through our licensing programs with Disney and Warner Brothers. We just launched Minecraft, and that has a very large demographic because their demographics are from 4- to 5-yearolds and 24-year-olds and everything in between. So, apples are used in the game as part of the incentive to keep going. In essence, that is driving apple business overall—it is saying good things about apples.”

“We continue to broaden our assortment, whether it’s in a charcuterie tray that has a wide assortment of products, which is again more on the adult or occasion side versus a single serve snack. We see that as the future as we continue to grow,” Freytag said.

“It’s great to schedule a time to meet with those you want to meet with, and stopping by a company’s booth is a great way to chat with someone there or see what new opportunities they have,” Shales continued. “We have a magician at our booth, so we often find people staying longer than they planned. He’s that talented! I also highly recommend that people take time to walk through the Fresh Ideas Showcase to see what different exhibitors have on display. Lots of new ideas can be seen in one spot via that display outside the show floor.”

“We have a large booth and plan to use the show floor to introduce new packaging and merchandising ideas for apples,” Shales said. “We will put our branded products on display and will have two features in the Fresh Ideas Showcase. Finally, we will make the most out of the general sessions and Women’s Fresh Perspectives breakfast. Global Produce & Floral Show does a great job of bringing education and network opportunities together through those breakfast and lunch general sessions.”

Starr Ranch Growers has high hopes for the show as the company’s latest crop and harvest has exceeded expectations.

“We’re looking at new ways to calculate our crop at point of harvest,” said Davis. “The predictive data we’re generating in terms of size and grade at harvest are paying big dividends in the marketing of the crop for the full year.”

“It’s hard for retail to make it across this whole show in a meaningful way; it’s just grown so large that you can’t see it all in the time allowed,” Davis added. “It creates the need for the attendees to be focused on much of what they want to hit.”

“We most look forward to seeing our produce friends there. It’s hard to justify the investment in terms of time and finance honestly, but it presents much opportunity to see as many people as we can in a short period of time,” he said.

Crunch Pak has found new ways to evolve within the produce category, specifically within apples through the company’s new partnerships and developments.

“When it comes to the produce category, one thing we can do is be a major destination for the produce buyers to come by our booth to see the wide group of products that we have. Snacking has grown dramatically throughout the years, so from a produce standpoint, we see our abilities, and we have stores that have as many as 20 to 30 individual items containing apples in them as a snack, and a lot of people don’t see that,” Freytag continued. “We are installing our second robotics line where three compartment trays are packed with apples, grapes, cookies or cheese all untouched and packaged robotically. Each one is sealed and the finished box of six products or eight packs are then put on a pallet, and it hasn’t been touched by hand. So, everything is highly sanitary, and it is becoming automated. We are making major investments into the snacking category, into the rigid tray category where we can feature some of our licensed products, and we are going to continue to have more announcements just prior to the show.”

PG 12 / GROCERY INSIGHT
www.starranch.com We can’t wait to share our new 2023 apple & pear crop with you. A journey of taste, tradition and qualityContact us today!

IN CONVERSATION

development. Growing the company and growing our learning--and really teaching--is an important part of my job. We have so many things we work with our team members on. Growing the next batch of leaders is one of my primary responsibilities.

What led you to the decision to join Bashas’ in 2020?

I had previously lived in Arizona for 17 years and was very familiar with the Bashas’ brand. I’ve also been across the country working for other distinguished retailers, so I recognized the Bashas’ position as a great opportunity. I wanted to get back to Arizona, and being familiar with Bashas’ and knowing that it’s family-owned was very enticing for me. I’ve worked for both family-owned and public companies, and family-owned was more appealing to me. It was such a good opportunity for me that I couldn’t pass it up. What makes the industry and Bashas’ a good fit for you?

It’s certainly never the same day twice. It changes every single day. You get to meet and work with a lot of great people. You get to interact with a lot of people in the community. It’s a fun and exciting time. I really enjoy it.

We were talking with the team leaders, and one of the things we talked about is when you have a birthday party for kids, what’s in the picture? It’s the kids and the cake. The cake is something special. We happen to do baking from scratch, so that cake is just so important and our team members love getting to know our guests on a first-name basis and being a part of their family’s milestone moments. That connection is really important. It’s not just that, but that’s one good example of how we’re connected into the community. At this point in your career, what are your professional goals?

I think it’s a little bit bigger than about me. It’s really about the long-term growth of our team members here, and how we play an important part in their

We have internal training programs, we support college classes, we send folks away to USC development programs, just to name a few. We do so many things to help leaders grow their career. And that’s what happened to me earlier in my career. Getting an education is really important, and I enjoy helping provide that opportunity to folks. Whether they stay with us for a lifetime—which we hope they do—or they go to other places, they can take their degree with them. Developing people is an important part of what we do.

We have team members who have been here 30-40 years and have just done about everything in the company, and those folks are invaluable. They are mentors to team members who are coming up. Grocery is a great place to have a lifetime career.

The core of our culture is focused on servant leadership. It’s how we show up and how we help folks succeed and how we pull together. It’s a great experience and, culturally speaking, it’s very strong here and with our parent company. What aspects of your personal work ethic have helped you to become successful?

I’ve held a lot of different roles in retail. Getting in early and working hard has always been critical to our success and a piece of my personal work journey. I was in produce for a long time, where you come in early in the morning and make sure the trucks and the product are there, and that spills over into putting in the time and the work in every other position I’ve held. Those kinds of things--starting from being a dishwasher at Smitty’s and working my way up to different positions--taught me that everyone has to put in the time and the effort.

What makes the grocery industry progressive and electric?

Things change every day. Right now, it’s inflation and understanding how our guests need to feed a family on the

income that they have. Maybe last year they had $100 to spend, but now that same $100 is worth $90 or less. How do you feed a family? How do you be creative and not pass costs on so that you can help? It keeps changing all the time. We also learn more about health and more about wellness. We have to keep our eye on trends and what’s changing tosure we are relevant to our shoppers. What is the role of grocery retailers in the overall industry?

It’s really accessibility and affordability to food, which is essential. Everyone has to eat, and it’s critical that we serve guests in the way they want and need to be served. One of the things that I think has been powerful for us is we have four distinct brands, so we serve every customer in whatever trade area we’re in. We have Bashas’, which is mainstream grocery; we have Bashas' Diné Market, where we’re up on the Navajo Nation; we have three additional Bashas’ stores on tribal nations in eastern and southern Arizona, and that’s a different experience. It’s the product that we carry. It’s tailored to the market. We have AJ’s Fine Foods, which is more experiential, and then we have Food City, which is a Hispanic focused market. Anywhere you go in our trade area we have the ability to serve what you need, instead of just saying, “This is what we have, take it or leave it.” We have really flipped that to “What do you need?” and “How can we support you?” Are we a reflection of the community that we’re in? The answer is yes, because we have the ability to do that. It makes our job here a little bit more complex, but it’s the right thing to do. It’s probably the only grocery family of stores in the country where I’ve seen that. I’ve worked for some other places that were great operators, but it’s the same operation in every store. We’re different.

We want to put the guest in the center and be a reflection of the community we’re in. We listen to the community and react accordingly, and we do that with our selection. We have charities we work with extensively that are central to the community. Each community feels and acts differently, which they should, and the charities are very

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specific to the communities they’re in. We’re sensitive to making sure we are supporting them in the way they, and the community needs to be supported. What are the top challenges households are facing?

At the top is inflation. We still have a bumpy road in the supply chain; nothing as traumatic as it was several years ago, but now it’s more about how can I feed my family on what I’m making considering that inflation has been pretty high and how can I feed my family more healthily on the dollars I have. It’s twofold. We work very hard to look for ways to contain our costs so we don’t have to pass that cost on. Part of what has helped us quite frankly is now we are part of a larger company which means we can buy a lot st better prices – our buying power is greater. We’ve banded together with our sister operating company, Raley’s in Sacramento and they buy some similar things we do, and now we can buy those things more efficiently. We look for all kinds of ways to do that so we don’t pass on additional costs to the customer.

What do you attribute to Bashas’ continued success?

I think the biggest thing is we live and work in the communities we serve and we are focused on a purpose. We understand each community, and the people who work in our stores are members of that community. We are not a rubber-stamp, one-size-fits-all. There’s not an edict that comes in from somewhere else that tells us how to run our stores. We are definitely a reflection of the community we’ve been in and are still in. We are a family business, which is really important, so we’re all part of a family. We were that way before we sold to The Raley’s Companies, and we are even stronger that way now. That’s very important for us. When you go into

In Conversation: Steve Mayer, Bashas'

our stores, the experience you get is a neighborhood store where everyone knows you; they know your name, they recognize you. We’re really connected into the community. You’re not a number when you’re shopping in our stores. We know you. I’ve been in a few stores where there will be a line at the cash register because guests don’t want to go to someone else’s line because they know the cashier. That’s the connection we have with the community. It’s a very tight group that looks out for each other. That’s been beneficial for us. What are some of Bashas’ attributes that allowed the company to be resilient throughout the pandemic?

We’re beyond a lot of the serious issues we had years back when it was a challenge to get and keep things on shelf. But if you think about grocery stores in general during the pandemic, it’s the place where the community went. You have to eat, you show up to shop and feed your family and that was critical. Being part of ensuring people had the food they needed was rewarding. People were using words like “heroes” working in grocery stores, and it was good to see because those people worked hard and came in every day —and they’re still doing that. They’re still working hard and they’re still taking care of our shoppers. It was a group effort, and we all pulled together, and we’re still pulling tighter to take care of our guests.

What is the impression that Bashas’ would like for in-store staff to leave on consumers?

It’s the same thing it’s always been: even in the pandemic and even today, the guests always come first. Taking care of the guests and putting them in the center of what we do has been mission number one, and it will stay that way. That’s what I want: guests, when

they come in and leave, to feel like they’re part of the family. That’s crucial for us. Every decision we make, we start with the guest. And we work our way out from there.

How would you characterize the consumers who shop at Bashas’ locations? What are their key concerns and demands?

We have banners that reach across everybody, so every guest has a little bit of a different expectation, so we must make sure that we fulfill those. At the end of the day, all guests want to be heard, listened to and taken care of generally speaking, and if you do that—you do what’s right for them—then you become successful.

What are your goals and priorities for Bashas’ during the latter half of 2023? How are you preparing the company for continued success going into 2024?

For our guests, we want to keep food as portable as possible. Internally, our focus is developing the team and keep developing them while planning for the future. Team member development is a key to future growth and success. We need to ensure we are supplying the right training, the right coaching and the right opportunities. We have a class that we call the Tracker Program, supporting future leaders who want to grow into store team leader roles. They raise their hand and say, “I really want to learn, I want to be a store team leader.” We just concluded that inaugural class a month or so ago and of the 20 members, 15 of them are already moving into store leadership roles.

We need to stay focused on meeting guests where they’re at, which means making sure we keep costs down as best we can, and remaining nimble in the communities that we serve.

GROCERY INSIGHT / PG 15
Publisher/Editorial Director Davis Johnson djohnson@executiveinsightproperties.com Editor Katie Murdoch kmurdoch@executiveinsightproperties.com Circulation Director James Anderson janderson@executiveinsightproperties.com P.O Box 2607 • Issaquah, WA 98027 • 425-497-0950 Vol. 11, No. 9
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