September 2024
The Global Produce & Floral Show
October 17-19 • Atlanta, GA
• Special Report: Hy-Vee 2 • Global Produce & Floral Show Preview 4 • NFRA Convention Preview 8 • Global Produce & Floral Show Preview: Sweet Potatoes 14 • State of the Category: Meat Case 16 • State of the Category: Greeting Cards 18 • Special Report: Innovation in Deli Snacking 20 • Q&A Interview: John Fieldly, Celsius 22
Special Report
Hy-Vee
Since its founding, Hy-Vee has become an integral part of the grocery industry as a powerhouse for innovation and affordability through many initiatives, which include opting to select its own inventories and prices since its beginning. The company started with the vision of providing “good merchandise, appreciative service and low prices, which has continued throughout its history and has been ingrained and reflected within all the company has done.
History: In 1930, Charles Hyde and David Vredenburg opened a grocery store in Beaconsfield, IA. The store was called Hyde & Vredenburg, and by the beginning of 1938, the founders partnered with around 14 people to integrate 15 Iowa and Missouri stores under the company’s banner.
Following his father’s footsteps, Dwight Vredenburg became the company’s first president. Alongside this, the company continued to grow its inhouse operations as it incorporated and operated an office, warehouse, mill and meat plant as well as a bakery.
The following years were filled with several endeavors that continued to expand the company and pave the way for Hyde & Vredenburg to become the successful vanguard it is now.
Hy-Vee has been known to be handson with every development, and this was initially shown through one of the company’s new locations shortly after its inception. In 1940, in Centerville, IA, Vredenburg took the position of the new store’s manager. The company was an innovator and ahead of its time by facilitating consumers with their shopping through several new concepts: shopping carts, self-service and a frozen food case. Around this time, the company reached $2 million in sales and in 1945, the grocer purchased Chariton Wholesale Grocery. In 1949, Hyde & Vredenburg had 29 locations.
Becoming the well-known grocer that it is today, in 1950, the company officially merged the two last names of its founders coming up with the name Hy-Vee. In 1957, the first official instore bakery opened along with several other departments. These expansions continued and by 1959, the company
had 37 stores and 1,200 employees. Looking further at the company’s commitment to its employees, in 1960, the Employees’ Trust Fund was created, which allowed employees to have some ownership of Hy-Vee. In 1963, the company changed its name to Hy-Vee Food Stores and three years later, took part in its first multi-store acquisition, which added four locations.
Through the course of the next decade, Hy-Vee continued to bring forth new grocery concepts to ensure consumers’ shopping experiences were enhanced and remembered, which inevitably brought them back to the store, creating a loyal bond between consumers and the company.
The 70s were filled with landmarks, as Hy-Vee continued to enter new states, adding electronic cash registers and floral departments to its locations. By 1983, the grocer had 150 locations and four years later, entered Kansas, its seventh state. Throughout the 80s, the company expanded on several services, which catered to consumers’ needs to ensure that they were getting everything out of one trip to any of their local Hy-Vee locations.
Toward the end of the decade, the company began operating several convenience stores known as Heartland Pantry. Entering the 90s, Hy-Vee began purchasing numerous subsidiaries such as Lomar Distributing, which aimed to supply more gourmet items.
On the executive side of operations, The Meyocks Group, an advertising agency, was acquired in 1994 in the effort to prioritize and handle advertising and public relations for the company. This was eventually sold in 2008, and later the company adopted Hy-Vee Weitz Construction to become the company’s personal contractor. There were many initiatives set in place of this nature through the course of the following years, which in turn, added to the reputation that Hy-Vee was establishing. Of a similar vein, the company launched its online presence in 1996 and two short years later, opened avenues to allow for consumers to online grocery shop. Being able to grocery shop online at this time was not a common practice, also
setting Hy-Vee apart from its competitors.
As Hy-Vee has been very attuned to its consumers, the company acknowledged the variety of its clientele and their unique characteristics. “Because of our regional footprint, we have a very diverse and broad customer base with different needs and lifestyles based on their geographic location,” said Tina Potthoff, SVP of Communications at HyVee. “That is an important reason why our stores have autonomy—so they can provide a selection of products to fit the needs and lifestyles of customers who live in their communities. What every customer is continuing to look for these days is value, whether it’s low-priced items, or a service that provides value.”
Recent News: Hy-Vee has always strived to provide ample opportunities for consumers and employees to maintain healthier lifestyles and take care of themselves through not only high-quality, better-for-you food options but also clinic access. “While Hy-Vee is primarily a retail grocer, we also operate a number of subsidiaries and divisions that span across multiple industries including health care, banking, supply chain and more. In addition to growing our core grocery operations, we’re also driving forward growth strategies in other areas of our business,” said Potthoff. “Right now, we are hyper-focused on increasing access to care while also lowering costs and bringing more transparency to health care pricing. This year, we became a joint owner of a direct primary care medical practice called Hy-Vee Health Exemplar Care, which operates using a fixed monthly membership fee. This allows us to control patient and employer costs while providing the highest level of care.”
Hy-Vee has demonstrated through the years its dedication to providing consumers with the resources and tools to adopt and maintain healthier lifestyles. Since the start of the company, Hy-Vee has been a trend setter, innovator and influencer within the grocery industry. This pioneering spirit, which remains at the company’s core, continues to play a key role in its solidified position in the industry.
Special Report
Global Produce & Floral Show Preview
Key Takeaways
• Suppliers aim to strengthen relationships, expand market reach and highlight unique product differentiators.
• Long-standing exhibitors view the Global Produce & Floral Show as a crucial platform for networking, showcasing innovations and discussing industry trends with retailers.
• Anticipated discussions include consumer trends, sustainability practices and the impact of rising costs.
Produce exhibitors at this year's Global Produce & Floral Show plan to showcase the tantalizing varieties of their fruits and vegetables. They are eager to continue supporting this tradeshow as some exhibitors have been attending for decades, and the conversations they expect to have with retailers is a huge draw. Producers are looking forward to discussing how they differentiate from other category players, how their programs are disrupting the produce segment and what their plans are to continue to elevate the produce space through highlighting flavor profiles, making retail a destination and designing packaging which reflects the brands' portfolio and mission.
California Giant Berry Farms has been exhibiting at the Global Produce & Floral Show for 37 years, back when the show was originally the PMA Fresh Summit. “The Global Produce & Floral Show offers California Giant Berry Farms with unparalleled networking opportunities, a platform to showcase our products and innovations, meet with our trade partners, develop new business opportunities, find valuable educational resources and discover insights into industry trends, making it an essential event for us to attend,” said VP of Sales Tim Youmans.
“We’re proud to say we’ve been supporting the Global Produce & Floral Show for 30 years,” said Monica O’ Reilly, Sales Coordinator for NatureSweet. “Much like our business, the event has had significant growth during the last several decades, and we’re proud to witness it and be a part of it. IFPA allows our team to network with customers and others in the industry, which has led to successful partnerships and business relationships for NatureSweet to further its mission of transforming the
lives of agricultural workers in North America.”
Nature Fresh Farms has been exhibiting at the Global Produce & Floral Show for 12 years. “As the largest and most influential tradeshow in North America in our industry, it offers great opportunities to connect with peers, industry leaders, existing partners and potential new clients,” said SVP of Sales and Marketing Matt Quiring. “The show allows for vital discussions on emerging consumer trends, sustainability practices, transportation challenges and government relations and serves as a platform to explore the latest advancements and innovations within the industry. It’s an opportunity that we as a business have always viewed as a must.”
“This will be year three of learning and expanding our presence and participating,” said Dan Davis, VP of Business Development for Washington Fruit Growers. “We have a lot of staff who have been involved longer, but for Washington Fruit Growers this is just our third year.”
“It’s the size and the scale,” Davis said of what continuously draws Washington Fruit Growers to return to the Global Produce & Floral Show year after year. “It’s absolutely the amount of attendees,” he continued. “It really presents an opportunity in one spot to get most of our customer base engaged and they’ll be in the same spot at the same time, so bringing our staff there to them encompasses a lot all in one large week.”
Fresh Innovations has been exhibiting at the Global Produce & Floral show since 2019. “Our products are sold in the produce and deli departments of most retailers so this show allows us to introduce new products and packaging to the industry and share the innovation we are developing to help produce
retailers create engaging dip displays within their departments,” said VP of Marketing Tara Murray with Fresh Innovations. “This is the largest produce and floral show in the US, which means the top buyers in the industry walk the show and look for what’s new. We attend because we want to be front and center while they’re considering and looking for new items to accentuate their current department.”
"The Global Produce & Floral Show is the largest trade show of the year, so you get to see many industry innovations and marketing styles on display at once," said Brianna Shales, Marketing Director for Stemilt, which has been sending teams to the show for more than 20 years. "Our favorite aspect of the show is meeting a lot of our partner retailers and industry contacts we don’t see every day. Because the show follows just after harvest of apples and pears, it’s a great opportunity to align on promotions and the season ahead. It’s also our chance to show them what’s new and exciting at Stemilt and share that with retailers. Another important reason we like attending the show is the chance to visit with retail dietitians about educating consumers about the produce they eat and where it comes from. Stemilt has certifications with the Equitable Food Initiative and sustainability practices in place that help us deliver a great tasting, nutritious piece of fruit to consumers, so it’s a great opportunity for dietitians to learn about this and take it back to consumers."
At the California Giant Berry Farms booth, the team will showcase its conventional and organic berry offerings— all in pack sizes to meet its customers' individual needs. “Our friendly and
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Special Report: Global Produce & Floral Show Preview
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professional sales, marketing and sustainability teams will be on hand to provide information and answer questions," Youmans said. "Plus, our booth is a welcoming space designed to give you a comprehensive introduction to everything California Giant Berry Farms has to offer. We invite you to stop by, meet the team and enjoy all things fresh berries.”
At this year's show, NatureSweet is proud to showcase its new booth which underwent a makeover to display the company's increasing capabilities and updated logo. "The NatureSweet portfolio of products has expanded during the years," O’Reilly said. "We're not just tomatoes; we also have cucumbers and sweet peppers. Our logo changed to reflect that and so did our signage at the booth. We also debuted our ‘Eat Your Sweets’ campaign this year that adds a fun, colorful vibe to delicious and nutritious snacking. To complement the signage, we’ll be showcasing our unique products that celebrate holidays and seasons, and consumers can’t get enough of them! Our Dia de Muertos 10oz is a medley of cherry tomatoes tucked inside packaging that pays tribute to the famous Latin American holiday and our snacking line of Cherubs and Constellation To Go will also be available—these are our washed and ready-to-eat snacking tomatoes packaged in a palm-sized container that is convenient and crush-proof. The perfect grab and go option for school lunches, gym bags or backpacks. Our booth will highlight the innovation and creativity that makes NatureSweet the leader in produce.
“Our booth will be showcasing an array of culinary samples that highlight the exceptional flavor and quality of our award-winning produce,” Quiring said. “We’re excited to introduce a selection of new products, which will be prominently featured alongside our innovative packaging designs. While we’ve only been marketing our produce for the past 13 years, we’ve quickly become known for our taste and eating experience. This year, we will be elevating our brand's look to help bring out some of those experiences you get when eating
our produce.”
Attendees who visit Washington Fruit Growers’ booth are in for a combination of visuals and samples and equally important, “it’s about who we’ve got there; we are bringing all of our key staff, we are making sure everybody is equipped and enabled to engage and having everybody present available and ready to have every discussion possible,” Davis said.
He added, “The timing always works out well for us in that it is right in the middle of our harvest window, so we’ve got a lot to talk about as far as apples and pears and it gives us a unique opportunity to talk about that with quite a bit of fruit in the barn and knowing a lot of what is on the tree.”
“Since we have such a delicious line of products, we bring it all to the show to allow customers the chance to taste what’s new as well as some of their old favorites,” Murray with Fresh Innovations said. “Our booth is always a destination for buyers due to the flavor and fun we bring to the show.”
This year is a special one for Stemilt at the Global Produce & Floral Show because Stemilt celebrating its 60th anniversary. "The Stemilt booth will feature content from a campaign we’ve been working on all year called World Famous Fruit by World Famous Families where we recognize the families within Stemilt who have helped us reach this milestone alongside the founding Mathison family in a series of short videos," Shales explained. "This is also the year of the Cosmic Crisp apple because it’s grown year over year in volume. It’s the perfect swap for Honeycrisp since it is down in volume by 30 percent . We’ll be showcasing other Stemilt exclusive varieties like Happi Pear, Aura apples, Lil Snappers and SweeTango apples. We’ll have lots of our organic 4-pack packaging, EZ Band, on display. David the magician will be joining us again to put on a show of wonder as he performs magic tricks with apples, pears and cherries. We’ll also have samplings of Aura and Happi Pear available for attendees to try! Make sure to stop by because we might have other surprises up our sleeve."
Exhibitors vigorously prepare and plan months in advance to present at-
tendees with a well rounded experience when visiting each companies’ booth.
Youmans said: “As a longtime exhibitor at the Global Produce & Floral Show, our primary goals and objectives are: 1) Strengthening industry relationships. We aim to deepen our connections with existing trade partners and industry stakeholders. By engaging in meaningful conversations and building trust, we hope to build and nurture long-lasting and vital partnerships—something California Giant Berry Farms prides itself on. 2) Expanding market reach. We seek to identify new business opportunities by showcasing our year round supply of conventional and organic strawberries, blueberries, raspberries and blackberries. 3) Highlighting our differentiators. We want to showcase what sets California Giant Berry Farms apart including our commitment to providing the highest quality, freshest berries available and our commitment to sustainable farming practices, i.e. Fair Trade certified strawberries, Bee Better certified blueberries, etc."
He continued: “We hope that attendees will walk away from our booth with: a deeper understanding of our company's commitment to quality and sustainability; a positive impression of our brand and a desire to do business with us and valuable insights into industry trends and future opportunities.”
After engaging with NatureSweet during the show, attendees should ideally recognize NatureSweet is transforming the agriculture industry, O’Reilly said. “We invest in our people, and they are the reason why we are the No. 1 snacking tomato brand," she explained. "We have been transforming the lives of agricultural workers in North America for more than 30 years! To demonstrate our commitment, we have put our money where our mouth is, striving to become better and earning prestigious certifications such as EFI, Fair Trade and B Corp."
Suppliers and retailers who have been visiting this show for years look at the Global Produce & Floral Show as a premiere industry tradeshow. They agree this show that sets the stage for building relationships, introducing innovative products and packaging and sharing ideas about industry trends.
Special Report
National Frozen & Refrigerated Foods Convention Preview
Key Takeaways
• The NFRA Convention's unique format, centered around prearranged strategic meetings, attracts both new and returning suppliers.
• Key topics at the convention are expected to include the growing demand for global flavors and convenience, sustainability in packaging and ingredient sourcing, and adapting to economic changes impacting consumer behavior.
• This approach allows for efficient use of time, enabling direct engagement with key decision-makers and fostering meaningful business relationships compared to booth-based tradeshows.
This year's NFRA Convention is attracting suppliers, both new to the show and returning companies, due to the show's atypical format. Suppliers say that while where is a place and purpose for traditional food tradeshows that are anchored around individual booths, the upcoming NFRA Convention, which is driven by prearranged strategic meetings, offers a novel way for decision makers across the show spectrum to use their time efficiently while ensuring they have they face time they're seeking with old and new partners alike.
“This year marks MyForest Foods' first appearance at the NFRA Convention, and we couldn't be more thrilled to be part of such a dynamic event,” said Deb Battista our Chief Customer Officer. “Our flagship product, MyBacon, has quickly become a hit with both retailers and consumers, boasting incredible velocities that outpace the category by 300 percent. The NFRA Convention presents a unique platform for us to introduce an entirely new food to the industry: organic oyster mushroom mycelium. Our meatless bacon is made from farm-grown oyster mushroom mycelium and just four other simple and clean ingredients – it's incredible. We’re excited to showcase this groundbreaking innovation at the Taste of Excellence event on the first night of the conference and share our story at the many meetings we have scheduled. As the only truly new food innovation in meat alternatives on the market, we believe MyBacon will reignite excitement in the plant-based category—not just for dedicated plant-based eaters but also for anyone seeking healthier options.
We can’t wait for attendees to try it because we know that tasting is believing. The opportunities to connect, share and taste MyBacon at NFRA make this event a perfect launchpad for us, and we’re eager to see how MyBacon will inspire the industry.”
Synear Foods, a leader in the frozen Asian merchandising category, first attended the NFRA Convention in 2023. “Though we are relatively new to the NFRA, the convention has already proven to be an essential part of our strategy to connect with key industry players and grow our brand in the North American market,” said Judy Zhu, VP Sales and Marketing. “The NFRA Convention stands out for its focused and collaborative environment, bringing together leading retailers, suppliers and distributors in one place. It’s not just about showcasing products, but also about building strong business relationships, discussing industry trends and creating strategic partnerships that can drive long-term success. The ability to directly engage with decision-makers who are actively seeking innovation in the frozen and refrigerated sectors makes the NFRA unique. For Synear Foods, the opportunity to present our authentic Asian frozen products to such a targeted audience is invaluable. We’re able to gain insights into shifting consumer preferences and market demands, which helps us refine our product offerings and stay ahead of industry trends.”
American Halal Co., parent company of Saffron Road, has been attending the NFRA Convention for 11 years. The oneon-one meetings with category managers during the convention is a major draw for Saffron Road. “It allows time
to discuss new items, promotional and growth plans, pricing strategies, category trends and overall store programming,” said SVP of Sales Todd Tolboe. “Every retailer has different needs and goals, and these collaborative sessions are some of the best in the industry.”
This is the first year Jar Joy Desserts, a leader in the refrigerated desserts category, is attending the NFRA Convention. Dan Taylor, President of Sales at Jar Joy Desserts, said the Jar Joy Desserts team is looking forward to having collaboration engagements with accounts to discuss industry trends and business-relevant needs to our categories in addition to having direct conversations with key account decision makers. “I've heard from many close network connections that if you’re going to be successful in these spaces—you need to attend this annual event for quality engagements with key decision makers,” Taylor said. “I believe there's value in being efficient with our partners to seek new growth opportunities that are valuable in person versus being more digitally based. There's always room for balance to enable face-to-face conversations of mutual benefit for ultimately delivering great products and execution to the consumer market.”
Jar Joy Desserts decided to attend this year’s NFRA Convention to take advantage of the opportunity to get in front of decision makers in person. “I realized the value in effectively reaching key decision makers one on one versus video calls, as a more personal tactic when having newsworthy products launching,” Taylor said.
This year is the right time for Jar Joy
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The best meatless bacon you’ll try at NFRA! So good, you’ll double-check the label to make sure it isn’t meat.
MyBacon is made from organic oyster mushroom mycelium, grown in indoor vertical farms, harvested in slabs and sliced (just like pork belly), not extruded, pressed or shaped. Made from 5 simple ingredients (Organic Oyster Mushroom Mycelium, Organic Coconut Oil, Organic Sugar, Natural Flavor and Salt). It’s the true bacon experience taste, texture sizzle and aroma of the real deal! Learn More at: MyForestFoods.com
Special Report: NFRA Convention Preview
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Desserts to attend NFRA because “Our business is growing and poised for a record performance in the coming months,” he explained. “Our most exciting partnership is with a new line of individually packed treats featuring extremely well known Mars Wrigley Candy Inclusions.”
Coming up on its third year attending, Jus-Rol has found that NFRA is the perfect place for Jus-Rol to showcase its innovative dough and frozen pancake bite products portfolio—this year its products will also be available for sampling at the NFRA Café, said Camille Vareille, VP of Marketing and Business Development—Cerelia USA Bakery. “With unparalleled access to new retailers and the opportunity to deeply connect with our current retailers, NFRA allows us to cast a vision for each category," Vareille said. "The NFRA has helped us make connections allowing us to tell retailers about the dough category in Europe and demonstrate a great case for carving out space in the refrigerator section for doughs not typically found in that set in the US, like our puff pastry. We look forward to sharing our latest vision for both refrigerated and frozen categories as we’re the fastest growing national brand in retail dollar and unit sales and units in the puff, pizza and pie subcategories for the last 52 weeks.”
This is Jaju Pierogi’s first year since joining the NFRA about six months ago. “It sounds very different from any other food show we’ve been to in the past,” said Co-Founder and Partner Casey White. “Kind of exciting; kind of a breath of fresh air in a sense because you’re not setting up a booth, going two days early, having thousands of people walk by and having 30-second conversations that you’re not sure will go anywhere after those 30 seconds. It’s just a lot of business cards being handed back and forth. We’re most excited about the organization, the speed meetings, getting to the point; we know who is going, we have direct contact lists—we’ve had them since June—so it’s exciting to be able to plan ahead and know what the few days are going to look like so you can prepare for the meetings, which is great. That’s what we’re most excited
for is the different format and it’s a format that you can conclude the ROI on more so than the other shows.”
This is the right time for Jaju Pierogi to attend because “Coming off of Covid we’re at a point where we are expanding our distribution and becoming more mature. We’re learning. We’ve been in this for about eight years,” White explained. “Last year we asked: How do we get more involved whether it’s in networking groups or CPG founder groups? NFRA reached out to us via email, and I thought this sounds great. I saw who is already a part of the group, and I thought this is another opportunity to meet more people, especially in the frozen space. There are a lot of other frozen suppliers that we have wanted to talk to or meet as peers. After I saw the list I thought this makes sense. I saw value immediately understanding what this show means. This format is unlike any other. I have a good feeling about it.”
This is Farmhouse Butter’s first year attending. “For the NFRA, we are looking at getting into more of the specialty or mid-sized retailers,” said President Barry Murphy. “More across the Midwest and out East. Our butter is best sold in perhaps the medium-sized specialty stores. Even some of the retailers out this way the West Coast, primarily California where the company is headquartered and up in Seattle even, we are targeting more of a broad scale. But we start typically with the upscale stores. Stores that will carry something a little more unique or different. We’ve seen a movement back in the past 20-something years, probably more or less 25 years, we’ve seen a huge movement in the US towards the yogurt industry in terms of growing the yogurt category. We’ve seen a lot of specialty cheeses come on the market. It’s not just cheddar and jack anymore or mozzarella; it’s all kinds of cheeses from all kinds of places. The butter business is probably at the beginning of this. There probably wouldn’t be as much versatility in butter as cheese, but we do see a growth in the specialty butter category and an interest. This whey cream butter is completely different than anything that is on the market in the category, just from an ingredient basis. It’s an upcycled ingredient. We used to just dump
it out with some other ingredients and dispose of it anyway we could. We didn’t know what to do with it. It’s a very interesting cream source. It’s not wildly different to sweet cream butter, but it has very unique properties. The only way to assess any of that is to taste it. You can taste the difference in it with these mild nutty cheesy notes at the end of the taste profile. At room temperature, it has a softer, fluffier texture. It’s not wildly different say like bleu cheese and cheddar. But it would be something that came to perhaps cheddar or monetary jack versus a gouda. There is a difference that is notable and engaging and exciting. That’s what we are after. Our job is to get people to taste it.”
Goals and Objectives
“Our goal for this year’s NFRA Convention is to excite and inspire retailers and attendees about MyForest Foods and our groundbreaking product, MyBacon,” Battista said. “We plan to showcase our innovative offering through engaging trials and share compelling market data that highlights the strong consumer demand for our product. We hope that attendees will leave with a renewed sense of excitement about the plant-based category and a clear understanding of the unique value MyBacon brings to the table. Our aim is to wow buyers by demonstrating that there’s much more to the category than ever before and to be part of the momentum and enthusiasm we have brought to this space. We want retailers to be enthusiastic about carrying our product and to spread the word. Additionally, we look forward to educating everyone about our unique farming process. This results in a product superior in taste and sustainability to anything extruded, molded or mushed together with bonding agents. It’s a whole new food! Ultimately, we want to share our meatless option that delivers the traditional bacon experience, all while being a better choice for both people and the planet.”
The NFRA Convention's untraditional format is a huge draw for both new and returning suppliers. This approach makes room for effective time management and one-on-one with key decision-makers. Suppliers and retailers agree this format facilitates long-lasting business partnerships.
Special Report
NFRA Convention Preview: Vegetarian Merchandising
Key Takeaways
• Anticipated discussions at the convention include the future of meatless products, consumer preferences for clean and seed oil-free foods, the rise of frozen snacks, challenges in the pizza category and strategies to address inflationary pressures in the market.
Suppliers within the vegan space are looking forward to arriving at this year’s National Frozen & Refrigerated Foods Convention (NFRA) to showcase their latest snack and meal solutions that appeal to those who have adopted vegan diets in an effort to eat clean and potentially relieve inflammation. Manufacturers are practicing what they preach and abiding by diets void of ingredients that can cause weight gain and provoke joint inflammation. Eating cleaner diets and adopting healthier lifestyles are at the root of these suppliers’ mission, and they are eager to converse with category peers and educate those who are new to vegan diets.
This will be Actual Veggies second year attending NFRA. “This show is amazing because you can schedule time ahead with your key retailers and really talk about your business or potential business together," said Hailey Swartz, Co-CEO and Co-Founder of Actual Veggies. "It is less about operating a booth, which also can be fun, and more about having productive conversations. Additionally, for the retailers that you are not in, there are speed meetings. These 7-minute matchmaking meetings are a fantastic way to meet new retailers and quickly introduce them to your brand.”
“Amy's has been a long-standing participant at NFRA, attending for nearly two decades,” said Defne Crowe, Consumer Communications Manager at Amy’s Kitchen. “After a brief hiatus, we're thrilled to have resumed our attendance in the last two years, marking our renewed commitment to this important industry event.”
The NFRA Convention equips companies with a space to share innovation and ideas and facilitates efficient yet impactful meetings with key buyers. “NFRA offers us a variety of opportunities: first, providing a meaningful platform for us to showcase to our partners
Amy's value to the frozen category, from our commitment to quality, organic ingredients, dietary inclusivity and homestyle cooking methods,” Crowe said. “Second, facilitating focused, action-oriented discussions with key industry stakeholders in one location and third, offering excellent sampling and networking opportunities across various parts of the business, including retail, manufacturing, logistics, etc.”
"This year will be our fifth year at NFRA, and my second year," said Jenn Newman, VP of Sales for Strong Roots. "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. I found that even with shorter speed meetings, there were quality interactions, vs 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."
Nutcase Vegan has decided to attend the NFRA Convention for the first time this year after heeding advice from an industry peer and advocate. “We were at the Summer Fancy Food Show two years ago, and we had a booth and then a fellow vegan came by and was sampling and she loved the product,” recalled Dr. Monica Randles, Founder of Nutcase Vegan. “She was there working a friend’s booth, and she said she does frozen foods, and she doesn’t work in that industry any longer, but she said ‘give me a call and I’ll help you navigate some of the stuff.’ She had recommended it. This year we signed up for it under ‘an industry leader’s recommendation.’ It’s great to make some connections and reach out to people and network; we’re excited about that.”
Suppliers’ goals and objectives for the show are to introduce their latest prod-
ucts to garner reactions and feedback from trusted retailers and other manufacturers who understand the challenges other suppliers rise to.
“My goals this year are to share our 2025 innovation with our current retail partners and gather feedback on our existing partnership; meet buyers from retailers we are not currently working with; introduce people to our awesome new VP of Sales, Niloy Phukan; and, most importantly, hang out and drink beers with people in the industry,” Swartz said.
“Our objectives for this year's show are to gain insight into our retailers' upcoming priorities and ensure Amy's meets their expectations,” Crowe said. “We want to strengthen our retailer partnerships and collaborate on growth strategies for the overall frozen category. Additionally, we will introduce our latest innovations, network and have some fun.”
"We’re excited to have the opportunity to meet with both new and existing retailers," Newman said. "We have a great balance of more in depth meetings with a few speed meetings as well. I have several new team members that will have the opportunity to connect face to face with retailers at this year’s show. 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."
Suppliers are eager to share their dedication to quality meal solutions made with actual organic ingredients to help push this rapidly moving category into mainstream meal planning at grocery stores. These companies are eager to talk about relevant issues including the growth trajectory of meatless products, shoppers’ preferences for clean ingredients and how best to offer competitively priced snack and meal solutions.
Special Report
Global Produce & Floral Show Preview: Sweet Potatoes
Key Takeaways
• The event allows growers to interact with retailers, share their advancements in technology, and discuss trends while preserving their traditional farming practices.
• The upcoming Global Produce & Floral Show provides a crucial platform for growers, including family-run farms, to showcase their commitment to quality and innovation.
Sweet potato growers have been engaging in ongoing dialogue covering top of the line technology to remain relevant and keep up with rising demand while also abiding by strict food safety initiatives. Many sweet potato suppliers hail from a long lineage of family farms and growers who have made a name and reputation for themselves as trustworthy and professional. Retailers immediately recognize the value in working with these generation-run farmers and the upcoming Global Produce & Floral Show presents an opportune time for farmers and retailers to connect and share synergistic ideas that preserve generations of tradition while keeping farmers aligned with category and shopping trends and technology.
“Our team members will be taking advantage of every opportunity that The Global Produce & Floral Show has to offer,” said Robin Narron, Marketing Director Sales Support for Nash Produce. “First and foremost, Nash Produce will be an exhibitor 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. 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,” she continued. “These seminars will allow team members to further their knowledge about the industry and make connections with other successful industry experts. A few seminars that we have interest in include ones about supply chain, sustainability, and the women’s fresh perspectives breakfast.”
The Nash Produce team encourages show attendees to stop by and visit their
booth “to reconnect and learn more about our sweet potato operation,” Narron said. “Members of our team will be available to not only talk about who we are and what we can offer, but also show a sample of the quality of sweet potatoes you can expect from our facility. We will be bringing the Mr. Yam family to the show, which includes bagged, individually wrapped, petite steamable pouches, and loose North Carolina grown and hand harvested sweet potatoes.”
The Nash Produce team’s top goals for the Global Produce & Floral Show include, “Interacting with current customers and potential new customers makes this show a success regardless if we pick up a new customer or not,” Narron said. “Having a presence there is a huge deal, because we eventually might work with a customer down the road even if it’s not immediately. Being able to network and make connections throughout the industry is a huge part of how we have the business that we have today. We want customers to know that we take this show serious and we are there to cater to their needs.
Another category leader, Scott Farms, has been instrumental in driving growth and visibility to sweet potatoes. One of sweet potatoes enduring and appealing traits is its versatility. “It’s one of the healthiest vegetables that you can eat, it’s very nutritionally dense, and that is no longer a secret,” Jeff Thomas, Director of Marketing previously said. “Sweet potatoes continue to grow in consumption and in use too. It’s no longer a holiday type item because you can go into any retailer or restaurant throughout the year and find some dish that can be made with sweet potatoes. We still see many things being done with them, especially on the retailer side from your fresh cut categories, to value-added products, the preparation of them and
being incorporated in with other items. It is no longer a stand-alone side dish or dessert, it is being incorporated into being a complementary item served with many proteins and really anything you would like to pair it with.”
“Sweet potatoes continue to find their place on consumers' plates in various capacities,” Eric Beck, Wada Farms’ Director of Marketing previously said. “Given the health benefits yielded from Sweet Potatoes, I anticipate we will see more social influencers highlighting various ways to incorporate into a healthy everyday diet.”
Nash Produce is determined to show retailers and consumers how seriously the company takes sustainability measures and its commitment to discovering new ways to apply environmentally-friendly practices to its farming operation. “With sustainability becoming a major topic within the industry, Nash Produce is trying to stay ahead of the curve,” Narron said. “While there is a lot more to continue to learn, we are actively trying to play our part and become more sustainable. We have shifted some of our cardboard packaging to recyclable plastic crates. Also, we have cut down on the thickness of plastic on a few of our bagging material items. With all of these transitions into more sustainable practices, Nash Produce is committed to becoming a more sustainable partner.”
The highly anticipated Global Produce & Floral Show presents an important platform for sweet potato growers, particularly family-run farms. During the show, suppliers can promote their commitment to quality and innovation. Further, the show facilitates interactions between growers and retailers to discuss trends and their advancements in technology while preserving their traditional farming practices.
State of the Category
Meat Case
Key Takeaways
• There is increasing consumer demand for sustainably sourced and ethically raised meats, as evidenced by a significant rise in sales for better for you items.
• The price gap between better-for-you and commodity proteins has narrowed due to fluctuating meat prices and inflation, making premium options more appealing to budget-conscious consumers.
Meat product prices fluctuate easily due to a number of natural and manmade factors. In recent months, the needle has moved so often that the price gap between commodity beef and the better-for-you (BFY) beef category has closed noticeably, which has ushered in more consumer attention on what sets better-for-you meat products apart. Companies within this space are not squandering the opportunity, keeping their prices stable and assertively educating retail partners and consumers on the environmental and health advantages to consuming premium beef.
Nicole Schumacher, Chief Marketing Officer for Pre Brands, explained, “The prices of meat products are known to be highly volatile, influenced by factors such as feed costs, livestock weather conditions and global trade policies. The recent surge in feed costs and inflation has led to a spike in meat prices, underscoring the need for adaptability in the industry. Pre is structured in a way to minimize the impact of the above variables to continuously steward our product and prices to consumers. Our products are 100 percent grass-fed and finished beef, which allows our pasture-raised cattle to feed on lush green grasses year-round. Our cattle are never fed corn and grains, which eliminates this variable cost.”
In contrast, commodity meats can’t enjoy that immunity. “We have seen pricing increases across the entire meat category, significantly decreasing the gap between Pre’s premium, case-ready offering and commodity meat at the grocery counter,” she said. “During this time when inflation has impacted groceries across categories, Pre has been mindful of the above considerations and has not increased pricing in the past 18 months.”
The closing price gap presents a gateway for better-for-you meat companies to appeal to typically budget-conscious
consumers with unique value propositions that they may not have prioritized before. “Consumers are still price-sensitive but willing to invest in their health and sustainability. We’ve redesigned our packaging to promote product benefits and sustainable sourcing details to proactively communicate our company’s values,” Schumacher said.
Ben Warren, Retail Marketing Manager for Pederson's Natural Farms, shared, “We start with a set of principle sand standards that we don’t compromise on and then we try to fill needs. Over the last couple years we have launched several new and unique product such as clean label and humane standard pickled sausage and ranch and pastrami bacons. We are the only game in town with these kind of things. On the fresh pork side we continually grow our herd size by getting new farms online without any loosening of the humane standards.”
Verde Farms has similarly noted the uptick in demand for better-for-you beef. “The refrigerated fresh meat, poultry and seafood category is surging with impressive momentum,” said Katelin Parrish, Verde's Head of Category and Insights. “Over the latest 12 weeks, ending July 14, 2024, this category has seen a strong 5.2 percent increase in units sold and 7 percent growth in dollar sales compared to the previous year,” she said. “This acceleration underscores a growing appetite among shoppers for more protein-rich options in their diets.”
Parrish drilled down: “Fueled by the powerhouse better-for-you beef segment, which encompasses products labeled organic, grass-fed and free from antibiotics and hormones, fresh beef is accelerating at an impressive pace. Yet, better-for-you beef is growing at an even faster pace and seeing dollar sales climb by 11.5 percent and units by 7.8 percent, outpacing the beef category.”
The broader forecast for the domestic beef supply is expected to be limited with higher prices for the next several years due to both macroeconomic factors as well as drought conditions in the past couple of years, said Parrish. “Verde Farms has built its foundation throughout the past 20 years sourcing from a trusted, global network of family farms,” she said. “This strong, trusted relationship ensures our quality supply of delicious organic, 100 percent grassfed, humanely and regenerative raised beef keeps up year-round with the growing demand we’re experiencing.”
Pre Brands is banking on its wide variety of offerings to support its growth. “The key to Pre Brands' growth lies in offering our complete lineup of 100 percent grass-fed and finished beef products to our retailer partners which includes our extensive line-up of steaks, ground beef, burgers and roasts,” said Schumacher. “While the market for ground beef offerings is quite saturated, many consumers begin their journey to BFY products through ground beef. This is an important entry point into the category that we are focusing on growing.”
Tangentially, this has also been a central strategy for category leaders. “We see an opportunity for bison by expanding fresh bison offerings in the meat case,” said Cory Schmeling for Great Range. “It is sometimes hard for consumers to find cuts besides ground bison. The more we can utilize the whole carcass—steaks, roasts and other whole muscle cuts to achieve better carcass utilization the more the category will grow and as a result the industry will grow in a sustainable way.”
With the price gap closing between better-for-you meat and commodity products, suppliers are taking advantage of the opportunity to turn more consumers, who maybe previously had not prioritized ethically sourced proteins, on to premium meat options.
State of the Category
Greeting Cards
Key Takeaways
• Companies are responding to consumer demands for high-quality,affordable cards by offering customizable options and tailoring products to enhance market growth.
• There is a notable shift towards more innovative and personalized greeting cards, such as pop-up cards and customizable designs, as companies like Designer Greetings adapt to evolving consumer preferences with embellished and luxury options.
Greeting card makers foresee continued strong sales as September typically marks the start of a series of autumnal celebratory occasions before entering the full-fledged holiday season. While digital technology has superseded so many facets of modern communication, an e-mail still plays second fiddle to the experience of receiving a hand-written message on a physical card that was thoughtfully selected by someone who wanted to make a genuine connection. Nonetheless, card makers know today’s consumers want fresh options marked by innovation and contemporary messages and designs.
“The greeting card market remains strong, with traditional cards still holding a significant share, especially for major holidays and life events,” said Designer Greetings President Steven Gimbelman. “However, there's a noticeable shift in consumer preferences toward more innovative and personalized options, such as pop-up cards and customizable designs. To stay ahead, Designer Greetings continuously refreshes our offerings, adding new, creative styles that align with current trends and customer preferences.”
Gimbleman said they’ve seen a growing trend toward more embellished cards featuring handmade designs with jewel gems, sequins, glitter and more. “Consumers are increasingly seeking to give the very best to their loved ones. Our Premier Boutique line highlights these handmade cards, offering a touch of luxury for every special occasion,” he said.
Additionally, “The most exciting aspect of the greeting cards category is a more personalized and customizable experience. We are able to provide full customization with The Greeting Card Shop, where consumers are able to order customizable cards online,” said Gimbelman. “Our Locally Yours line
gives retailers a chance to sell cards specific to their geographic location.”
This year, Hallmark continues to play with straddling the line between giving a physical card and going online to share a gift through its Hallmark + Venmo Cards. This past June, the company released a new collection designed specifically for the class of 2024. “The new Hallmark + Venmo Cards are an innovative way to send money to our graduates,” said Kyle Monson, greetings merchant director at Hallmark. “Graduation is a milestone moment that deserves recognition, and whether it’s high school or college, graduates always appreciate a little help in funding their next steps.”
While companies’ approaches might differ, greeting cards remain rooted in the purpose of fostering connections and serving as a touchstone for big moments in life. “Thanks to our dynamic and ultra-creative maker community, there’s a card to perfectly suit any occasion or recipient,” said Greeting Card Association (GCA) Executive Director Nora Weiser. “While there are always countless designs to celebrate people observing circle-of-life milestones like birthdays and retirements with the love and attention they deserve, greeting cards today often do a lot of heavy emotional lifting around more difficult situations in life. They can initiate difficult conversations regarding challenges like divorce, sobriety, grief, identity and illness and enable us to support each other in a more permanent way than spoken words.”
The GCA is a trade association that supports the category in various ways. On the advocacy front, the GCA this year partnered with Keep US Posted, Hallmark and the American Forest & Paper Association to celebrate Mother’s Day on Capitol Hill in May. GCA members provided 750 cards for members of Con-
gress and staff to mail to their mothers, to raise awareness of the value of greeting cards, the power of a hand-written note and USPS’ planned rate increases.
The GCA’s built-in network also serves as a continued resource for members. “By connecting our maker members with a range of service suppliers, members can benefit from their expertise and innovations, as well as negotiate for the best services and pricing to meet the needs of their brands, so they can offer the best value to consumers,” said Weiser.
Value continues to dominate what consumers are looking for, said Gimbelman.
“We've received feedback from our retailer partners that consumers are increasingly seeking high-quality greeting cards at a great price. In response, Designer Greetings has been focusing on developing innovative designs that feature multiple embellishments while still maintaining an attractive retail price. This input has significantly influenced our product development process, ensuring we deliver on the expectations of both our retailers and their customers,” he said.
The growth opportunities in the greeting cards category lie in adapting to market needs, said Gimbelman.
“For Designer Greetings and our retail partners, this means offering cards in multiple languages, recognizing specific regional holidays and catering to the unique age demographics of each market. By tailoring our products to local preferences, we can better meet consumer demand and drive sales growth.”
Industry watchers note a shift toward more innovative and personalized greeting cards as a response to consumer demands for high-quality and affordable options that even reflect regional and demographic preferences to enhance market growth.
Special Report
Innovation In Deli Snacking
Key Takeaways
• Companies are innovating within the category to provide healthier, convenient options that cater to evolving consumer preferences.
• The trend towards grab-and-go and high-quality snacks is evident.
Consumers are increasingly seeking better-for-you options that don’t compromise on taste.
• Companies are navigating economic challenges by maintaining product prices despite rising costs, focusing on strong retailer partnerships and direct consumer feedback to enhance their offerings.
The snacking category has evolved through the years to include healthier, more desirable options that cater to individual needs and preferences. Leaders in the deli snacking category have been innovating to give consumers more options that are better for you and can replace meals while maintaining taste and boasting clean labels.
“Since August of last year, we’ve gained new retail distribution due to the product innovation we’ve launched in the marketplace,” said Tara Murray, VP of Marketing with Fresh Innovations. “Our new Yo Quiero! Avocado & Egg has opened new doors in the Midwest, Northwest, Southeast and Northeast. Besides the Avocado & Egg, we continue to develop and innovate products for our Dip Destination line-up. We’ve created a delicious black bean dip, a hatch chile guacamole and a corn salsa with tomatoes and whole black beans. Yo Quiero!’s line-up of products allows retailers to create amazing dip sets in their departments and allow consumers a wide selection of items.”
“Don’s Prepared Foods has achieved growth in a challenging economy, as consumers continue to work remotely and eat more meals at home,” said Carl Cappelli, SVP of Sales and Business Development. “Areas of growth are in dips and traditional deli salads. Consumers are snacking more and America has gone ‘dip crazy.’ We also launched four new salads in May of this year–high-quality, value prices, nostalgic salads.”
“I think back to a year ago today, last August, and we had just started the commercialization process of our newest brand,” said Samuel Kestenbaum, CEO and Co-Founder of 7 Mile Brands. “And back in April, we successfully launched our newest brand PRETZELIZED—On
a Mission to PRETZELIZE the World, Starting with Your Favorite Snacks and Crackers. Launching with two unique products in two established categories certainly had its challenges with all new equipment with new supply chain partners, but being able to launch the scale we did at national retailers like Kroger and Whole Foods, it was really a privilege to have led that and been a part of it. Our first launch was our new PRETZELIZED pretzel crackers and then market it as the first pretzel snack in the cracker set that provides you with all of the velocity of a salty snack but the use and versatility of a cracker. As we were talking about from a deli perspective, our PRETZELIZED pretzel pita chips are really the first change to a pita chip as we transform those pita chips into pretzels. So, no longer does the consumer have to choose between the pretzel and the pita, the subcategories or deli snacking, but now can have two favorite snacks in one.”
Fratelli Beretta attributes its success to the company’s innovation within the category.
“It’s always about innovation and catering to the needs of our customers and consumers. Every year we see a shift in what they need. A few years ago, it was an item we could put on our board. Now, it’s about portability and they want to make things easier. We want to make our customers’ lives easier,” said Kimberly Parrales, Marketing Manager with Fratelli Beretta. “You can get creative too because they include fruit and chocolate or wrapping prosciutto around breadstick crackers.”
Looking at what makes the company a solid partner for its retailers and distributors, “There are many different things, so first we are really hands-on with our retailers and our partners,”
said Parrales. “We have our sales team and a team that goes into the stores to make sure the product is displayed properly to see if something goes wrong. We are very involved with that and involved in the food shows. We want to be more involved in their side of the business as well to better understand the consumer. There is so much we can get from a buyer, but those numbers are actual people and behaviors. When we are at stores, we get feedback directly from consumers. When we do events, we get to do that; people are liking this, people aren’t liking that. The final consumer is the final say. They are the ones who will say they like it or not. We are very involved, and we are very personalized. It’s important to have a connection with the person who is really involved in the production of the product.”
Consumers are gravitating toward healthier options that don’t sacrifice taste and quality to get there.
“Don’s not only offers more clean, edgy, globally inspired grain salads, we also offer some clean traditional Grab n’ Go salad cups in Artisan Deli,” said Cappelli. “The biggest recommendation for Deli Departments is to carry Don’s Seafood Salads. Consumer traffic is higher in deli than seafood departments given the higher cost of protein for seafood vs. Deli Departments.”
Whether it’s a busy schedule coupled with the need for convenience or just the simple craving for a good snack, the deli category has grown through adding various options to satiate consumers while providing easy and tasty meal solutions. Innovation in the deli snacking category has made room for healthier options that households can enjoy at any given time without having to sacrifice flavor profiles or lifestyle habits.
IN CONVERSATION
John Fieldly, Celsius, President and CEO
Tell us how your career path led you to the consumer packaged goods (CPG) industry and joining CELSIUS?
I started my career off at Eckerd Drugs; I worked at the store level for over eight years. I actually developed into almost a special forces team, where we would educate store personnel, teach them about shopper marketing, plan-o-grams, pricing and really pairing the right product for the right aisle for the right consumer, and also create impulse purchase strategies. So I learned a lot about consumer products, especially about consumers—their shopping patterns and how to maximize that over eight years at Eckerds.
During Eckerds, I really wanted to have a career there based in the Tampa market. They were based out of Clearwater, FL and my goal was to get my CPA license and join their corporate headquarters to help them improve efficiencies, especially at the store level with the financial knowledge and background. Unfortunately, I was going around increasing the performance at these underperforming stores with this task force, and they wound up selling the business to Rite Aid, Boots and CVS. That got dissolved. I wound up getting my CPA license, and I joined Lebhar-Friedman in B2B publishing. I worked there as a staff accountant and worked my way up to being the business manager of their consumer products division. I worked with a lot of great people in the B2B publishing space at Lebhar-Friedman.
Then I got my experience working at a consumer biotech company where we launched a new age dietary supplement probiotic mint. I learned a lot there pri-
or to joining CELSIUS in 2012. I joined CELSIUS as the CFO in January 2012 when the company was just doing $7.6 million in revenue. I wound up taking over as CEO in 2017 when we did $36 million that year, and last year, we achieved $1.3 billion, which is truly amazing.
Professionally, what makes the CPG industry a good fit for you?
What’s fascinating to me about this industry is that I get to work for a brand that consumers enjoy every day. I get excited to this day every time I see CELSIUS on the store shelf or in the checkout cooler. I see fans drinking it on the streets on their way to work in the morning. It’s great to work for a brand that consumers enjoy. That’s one of the great benefits of working for CELSIUS.
And it’s also the people; I’ve learned at CELSIUS over the years, especially in consumer products and beverages, what’s interesting about beverages versus a dietary supplement, is that a beverage is almost an extension of who you are. It’s like the fashion industry. Nike, for example, is an iconic brand. You feel something when you wear Nike. Same thing with Louis Vuitton and Gucci. It’s a status. What’s fascinating is that in consumer products, especially in beverages, you can create the same emotional connection with consumers. That’s what is great about CELSIUS; we’re all about living fit and living life to its fullest. Our mantra is LIVE FIT, and we hear this from a lot of our consumers, that it says something about yourself. When you show up to a meeting with a CELSIUS, it’s an extension of who you are, which is just fascinating.
What makes leading CELSIUS a good fit for you in terms of your professional goals and values?
When you look at traditional energy drinks, they present a narrow and specific need state or usage occasion. The older energy drink brand generation uses an aggressive tone. But we’ve been able to disrupt and expand the category, with an inclusive, aspirational and LIVE FIT message. Without CELSIUS disrupting the status quo, the category wouldn’t grow. The most recent year-to-date SCAN data from Circana, shows that if you pulled CELSIUS out
the category would not be growing so far this year.
CELSIUS aligns with a broader, healthy halo of fitness lifestyle trends, which is really universal. Yes, we were born in the gym, The Vitamin Shoppe, GNC and Gold’s Gym as a pre-workout drink. But fitness lifestyle has expanded; look at athleisure wear as an example. Ten years ago, that used to be called “gym clothes” or “workout clothes.” Today, athleisure is a multi-billion dollar industry and people wear “workout clothes” to work and to the movies and the grocery store. It’s just an extension of who we are these days. These mega health and wellness trends are fascinating, and we’ve been able to harness that. We’ve positioned the brand now for this fitness lifestyle position which resonates with a broad swath of consumers and is bringing new consumers to the energy drink category. They’re looking for something that aligns with their health and wellness goals and CELSIUS achieves that.
One thing we really take pride in is our flavor profiles; we want to be the most refreshing drink in the world. We’re doing a great job; the team works really hard. We have a Cosmic Vibe, which is a sparkling fruit punch filled with great flavors. We just launched Watermelon Lemonade, Kiwi Strawberry and Cherry Cola. It’s one thing to have a functional product, but it’s another to have one that tastes great and makes you feel good.
In food and beverage, we see three mega trends. Everyone wants better for you, but they don’t want to sacrifice flavor and taste. CELSIUS has over seven essential vitamins, so we’re on that better-for-you trend. The second mega trend is we want our food and beverages to do more. We want it to do more than just quench thirst. We want it to do more than provide energy. CELSIUS does that because we have additional thermogenic properties in the product to help you achieve your health and wellness goals. The third mega trend is fitness. It’s cross generational and everyone is aspiring to have a fitness lifestyle and to live better. CELSIUS supports consumers pursue their fitness
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goals.
How has the fitness beverages category evolved in recent years?
When I started, CELSIUS was mainly sold in the sports nutrition or diet nutrition sets at grocery stores, such as Kroger, Harris Teeter and HEB and at convenience stores including 7-Eleven. We were not really perceived as a beverage that belonged in the energy category. We would get messages from buyers when I started here that CELSIUS was a fitness drink, and we belonged in the sports and diet and nutrition set. It took a long time to break through, and as health and wellness trends continue to got stronger, we were able to move into the beverage set.
We were still what’s called a newage product; they usually put you in the lower bottom corner of any plano-gram during that time. But as fitness and wellness trends continued to get broader and CELSIUS continued to build more brand awareness within the fitness community, we’ve been able to position the brand where we are today with an 11 share in the energy drinks category playing at the highest level. We have Pepsi as our national distributor in North America. We have a 20 share on Amazon. We have over a 15 share in the energy category in 12 major U.S. markets. Thirteen years ago, getting to 1 share in the energy drinks category seemed nearly impossible. Here we are today with an 11 share nationwide. The changing of the tides and trends have driven the category bringing in new consumers. It’s a really exciting time. Given the highly competitive nature of the fitness beverages category, what is CELSIUS’ strategy to stand out from the crowd? And beyond that, can you speak to the share that CELSIUS is developing in energy drinks as a whole?
It’s really difficult, especially in the beverages industry. I was at BevNET, and they were talking about how there are over 5,000 brands that come to market every year and less than 10 percent of those will make it to $10 million in sales. And of those 10 percent that make $10 million in sales, 10 percent of those will make it to $100 million. And
Q&A Interview: John Fieldly, Celsius
of those 10 percent,1 percent of those will make it to $1 billion in revenue. It's highly competitive. We have to continuously differentiate ourselves as truly this fitness lifestyle brand which provides this better-for-you, essential energy for life inside and outside the gym. It’s inspiring people to achieve their goals by being the most refreshing energy beverage on the market. As a brand that has a 98 percent ACV, it’s a really important attribute as we continue to move forward within the category. What makes CELSIUS a category and industry leader?
Early on, some people didn’t believe in CELSIUS. However, the consumers believed, and when consumers believe, retailers will react to consumption trends. What we’re seeing now within the category is that CELSIUS is leading this new age world of energy. Consumers want more. They’re demanding more from the foods and drinks they have. Going back to those three mega trends, consumers see that in CELSIUS. We’re hitting on the flavor profiles, we’re hitting on the functionality, we’re hitting on that fitness lifestyle which is so important especially to all of us in a postCovid world. And we’re inclusive; we’re not aggressive. We’re universal. You can have a CELSIUS on the back nine of the golf course; you can have a CELSIUS before your next hard-core workout at your Gold’s Gym. You can have a CELSIUS before your job interview at work; it really fits multiple facets. We’re big in universities and hospitals as well; we’re helping college students study, we’re helping first responders to get through their late night shift. The product is really resonating with that broader consumer base more than ever before. What’s also interesting is that since we joined with Pepsi, we are now in Jersey Mike’s and are starting to expand within fast casual dining.
We are growing the consumption occasions for energy drinks with our great-tasting, refreshing products. You see it a lot at the office; people are drinking CELSIUS with their salads, their sandwiches and their lunch. And that’s unusual for our category. What we’re seeing with CELSIUS is that it crosses into other categories including food service. There’s a bigger, broader play here,
and it shows that we are differentiating in the category, reaching new consumer segments and usage occasions. This year, what are your top two to three priorities, or areas of focus, in your role as President and CEO?
We are building out our sales and marketing teams around the country. We’re investing in our teams to be the best, most valuable partner to our retail customer.
We’re also focused on activating our big bet marketing investments with our consumers. For example, we partnered with the Scuderia Ferrari Formula 1 team and their driver Charles Leclerc. We have also partnered with Major League Soccer which is a big bet for us in reaching Gen Z, especially with anticipation building around the World Cup. We’re leveraging properties with a big retail marketing program push around the US to drive consumer excitement. One of our strategies this year is further activating retail and really leveraging the targeted retail marketing program. Another area of focus for us is in innovation. Our great innovation has really transformed and helped grow the energy drink category by bringing in new consumers who are drawn to our fruit-forward, refreshing, wide variety of flavors. This year we launched a space-themed trilogy, including Cosmic Vibe, Galaxy Vibe and Astro Vibe. Flavor innovation is important as well as the retail marketing activation. Those are our two big bets this year.
This year, what are some of the messages CELSIUS is conveying to its retail partners and consumers?
Our message for the retailers is: Carry more CELSIUS. CELSIUS is growing the energy drink category by bringing in new consumers and driving incrementality. Without CELSIUS, the category wouldn’t have growth this year so far. We’re really proud about that. We’re customer-focused here at CELSIUS, and we’re partnering with our customers to activate at retail and bring new consumers into their stores. Our message to consumers is: we are the most refreshing energy drink in the world, providing the essential energy that gets you through your day and helps you live an active lifestyle, to live fit.
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