Power of Meat 2018
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The Power of Meat 2018 An in-depth look at the Meat at Retail through the shoppers’ eyes Presented by: Anne-Marie Roerink | 210 Analytics Rick Stein | FMI Made possible by: 1 FMI is the trade association that serves as the voice of food retail. We assist food retailers in their role of feeding families and enriching lives. The Association: Our members are food retailers, wholesales and suppliers of all types and sizes FMI provides comprehensive programs, resources and advocacy for the food, pharmacy and grocery retail industry CONSUMER & FOOD SAFETY GOVERNMENT INDEPENDENT CENTER STORE COMMUNITY AFFAIRS & DEFENSE RELATIONS OPERATOR PRIVATE BRANDS SUPPLY CHAIN TECHNOLOGY ASSET COMMUNICATION EDUCATION FRESH FOODS HEALTH & WELLNESS INFORMATION RESEARCH SUSTAINABILITY WHOLESALER PROTECTION SERVICE Fresh @ FMI FMI is committed to the growth and success of fresh companies and their partners. FMI provides resources and networks that support the interests of member companies throughout the global, fresh produce supply chain, including family-owned, private and publicly traded businesses as well as regional, national and international companies. Emphasis on fresh • Produce Rick Stein • Meat Vice President, Fresh Foods • Seafood Food Marketing Institute • Deli/In-store, fresh prepared foods and [email protected] Fresh Foods assortments 202.220.0700 • Bakery • Floral FMI Fresh Foods Research and Education Networking Advocacy In-depth information, trends and Share ideas, explore best Understand what is going on in insights to foster innovation, practices and develop business Washington and make your take advantage of new relations voice heard opportunities and help develop winning strategies FMI Fresh Excutive Committee (FEC) John Ruane (Chair) Dan Koch Nick Carlino Emily Coborn Ahold USA Associated Wholesale Grocers, Inc. MDI Distributors Coborns Rick Steigerwald (Co-Chair) Brett Bremser Jerry Suter Jerry Goldsmith Lund Food Holdings, Inc. Hy-Vee Meijer, Inc. Spartan Nash Fresh Foods Tom DeVries John Haggerty Geoff Waldau Mike Papaleo The FEC is.. Giant Eagle, Inc. Burris Logistics Food Lion C&S Wholesalers John Beretta Mark Hilton John Grimes Pat Brown Comprised of FMI Member Albertsons, LLC Harris Teeter LLC Weis Markets Albertsons LLC companies, Retailers and Wholesalers Dave Bornmann Christopher Lane Richard Cashion Terry Murphy Publix Super Markets, Inc. Wakefern Food Corporation Healthy Home Market Wakefern Scott Bradley Geoff Wexler Eric Leiberman Scott Evans Target Corporation Wakefern Food Corporation Walmart Price Chopper/Mkt 32 Jerry Chadwick Koen Vermeylen Mark Doiron Nicole Wegman* Lancaster Foods, LLC Brookshire Grocery Company Fresh Thyme Wegmans Food Markets, Inc. Alex Corbishley Dan Murphy Jim Lemke * Silent members Target Corporation SuperValu CH Robinson Fresh Buddy Jones Pat Pessotto Steve Howard MDI Distributors Longo Brothers Fruit Markets Inc. Bristol Farms/Lazy Acres FMI Fresh Foods Leadership Council John Ruane (Co-Chair) Jeff Oberman Robb MacKie John Dunne Ahold USA United Fresh Produce Assoc. American Bakers Assoc. Acosta Rick Steigerwald (Co-Chair) Janet Riley Jim Huston Scott Aakre Lund Food Holdings, Inc. North American Meat Institute Johnsonville Hormel Foods All- FEC Members Galit Feinreich Chad Gregory Sally Lyons-Wyatt FMI Fresh Executive Council Ready Pac Foods, Inc. United Egg Producers IRI Chris Dubois Tom Super Joe DePetrillo Wendy Reinhardt Kapsak IRI National Chicken Council Earthbound/White Wave Produce for Better Health (PBH) Michael Eardley Patrick Fleming Shawna Lemke Abby Prior International Dairy-Deli-Bakery Assoc. National Pork Board Monsanto Bright Farms Bridget Wasser Joe Watson John Knorr Michael Lang National Cattleman's Beef Association Produce Marketing Assoc. Phillips Seafood Invatron Sarah Schmansky Joe Weber Mike Celani Tom Daniel Nielsen Perishables Group Smithfield Foods Inc. Wonderful Sterilox/Chemstar Paul Mastronardi Art Yerecic Chandra Macleod Randy Evins Mastronardi Produce Yerecic Label Aqua Star Seafood SAP David Sherrod Brad Roche Jeff Thompson Tom Windish SE Produce Council Hill Phoenix Trident Seafood Cargill Greg Livelli Emily Blair Hussmann Miliken Made possible by: The Power of Meat 2018 An in-depth look at the meat department through the shoppers’ eyes Presented by: Anne-Marie Roerink 8 The Power of Meat 2018 . Consumer survey among 1,500 shoppers . 13 years and running . Updates on long-standing trend lines . New topics to address emerging trends . Real-life overlay . For the industry by the industry Annual Meat Conference | The Power of Meat© 2018 | Picture: 210 Analytics 9 Study taskforce Annual Meat Conference | The Power of Meat© 2018 10 2017: A different world yet again Need to change routines, the shoppers’ and our own Dollars Volume 2015 +4.5% +0.7% 2016 -2.8% +3.1% 2017 +0.6% -0.3% Source: IRI, MULO, 52 w/e 12/31/2017 | | Picture: 210 Analytics * Fresh meat 11 Accomplishing growth while mitigating risk 1. Identifying megatrends that are proven sales generators throughout the store, including fresh 2. Optimize how meat plays into those trends to grow: . Penetration . Trips . Basket size Annual Meat Conference | The Power of Meat© 2018 12 Hard data on hot trends How can meat best capitalize on proven, sales-generating megatrends? One-size-fits-me Value-seeking People Shopping Upskill power reinvented Brand Ethical premiumization living Healthy Buying Improved living time shopping Annual Meat Conference | The Power of Meat© 2018 13 Competitive forces, demographic shifts and mega trends are reshaping the food retailing industry, and meat along with it — requiring targeted branding, marketing, merchandising and advertising ONE-SIZE-FITS-ME Annual Meat Conference | The Power of Meat© 2018 | Picture: 210 Analytics 14 Price rules the meat purchase, hand-in-hand with appearance Meat purchasing decision tree Price/pound Appearance/quality Total package cost Nutrition Prep. knowledge Prep. time/ease 35% 26% 17% 10% 8% 4% Annual Meat Conference | The Power of Meat© 2018 | Ranking scale 1-6 | % of shoppers who ranked factor 1st 15 Different meat shoppers have different approaches in each stepping stone of the path-to-purchase Outside Inside Meat Product At home the store store dept. choice Annual Meat Conference | The Power of Meat© 2018 16 Food for thought . One-size-fits-all must make room for one-size-fits-me . Personalization throughout the path-to-purchase . Curated assortment . Package size variety . Information and education . Product/production attributes . Promotional outreach (message, platform, item, etc) Annual Meat Conference | The Power of Meat© 2018 | Picture: 210 Analytics 17 Food for thought . One-size-fits-all must make room for one-size-fits-me . Personalization throughout the path-to-purchase . Curated assortment . Package size variety . Information and education . Product/production attributes . Promotional outreach (message, platform, item, etc) Annual Meat Conference | The Power of Meat© 2018 | Picture: 210 Analytics 18 One-size-fits-me most clearly manifests itself in shoppers’ money-saving measures, that remain important as the price continues to dominate the meat decision. VALUE SEEKING Annual Meat Conference | The Power of Meat© 2018 | Picture: 210 Analytics 19 As price rules, promotional research remains big Check frequently + every time Millennials Boomers Across stores 41% 42% 34% At the main store 57% 42% 57% Across items 64% 57% 64% Across packages 74% 79% 70% Annual Meat Conference | The Power of Meat© 2018 20 Digital touch points gain, along with in-store signage 57% 51% 41% Circular at In-store Circular home promotions in-store 36% 15% 22% Digital Store Email/ circular app website 11% 2% Year-over-year: Decline Social Text Growth media specials No change Annual Meat Conference | The Power of Meat© 2018 | Promotional vehicles used for meat research 21 Digital touch points gain, along with in-store signage 57% 51% 41% Circular at In-store Circular home promotions in-store 36% 15% 22% Digital Store Email/ circular app website 11% 2% Year4-year-over CAGR:-year: Decline Social Text Growth media specials No change Annual Meat Conference | The Power of Meat© 2018 | Promotional vehicles used for meat research 22 The Millennial way is very different, except for in-store Millennials 18-Xx26 26Xx-37 Top resources BoomersXx 37% 53% Paper circular pre-trip 64% 55% 50% In-store promotional signage 53% 35% 40% Paper circular in store 41% 37% 41% Electronic circular 29% 19% 18% Store app 9% 21% 27% Meat promotion email/web 17% 13% 20% Social media deals 2% 5% 2% Text specials 0.3% Annual Meat Conference | The Power of Meat© 2018 | Promotional vehicles used for meat 23 Food for thought . Consumers research meat across stores, items and packages, are you making it easy? . Don’t just have the hottest ad, have the most relevant ad on the most relevant platforms . Target promotions/messaging in fragmented market . Right product, right price, right messaging, right timing, right platform . Leverage technology to include education, tips, list generation, ordering, etc. to move beyond price Annual Meat Conference | The Power of Meat© 2018 | Picture: 210 Analytics 24 To grow, the industry needs to look beyond price and volume. Much can be gained by enhancing shoppers’ meat skills and affinity to drive a greater variety of items purchased and prompt people to cook with meat more often. UPSKILL Annual Meat Conference | The Power of Meat© 2018 25 How can we inspire people to one more home-cooked meal with meat? Three inputs to the puzzle… 1 Meat knowledge Variety