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Weekly CFFA Merchandiser Report Central/Great Lakes Regions Allison Myers

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Weekly CFFA Merchandiser Report Central/Great Lakes Regions Allison Myers February, 2013 - Weeks 7 and 8 (Feb. 11 – 24) Weekly CFFA Merchandiser Report Central/Great Lakes Regions Allison Myers General Market Overview The past couple weeks have seen retail proMotions focused around holidays, events and coMModities. Valentine’s Day began the tiMe period with strawberries as the priMary produce feature along with roses, Meats, shriMp and lobster. We then followed up with Lenten Specials which will keep the focus on fish, leMons and liMes through the end of March. This week there are nuMerous retailers, including all of the Kroger banners and divisions, who are building promotions around NASCAR’s Daytona 500 race which is on Feb. 24th. However the biggest player in February continues to be the Idaho Potato CoMMission with its Potato Lovers Month contest. This national program gets participation froM major retail organiZations as well as independents across the country. It’s a “well-oiled machine” that began in 1990 and gets about 2500 display entries each year with More and More ads devoted to varietal potatoes. As far as retail news goes the past couple weeks, there’s been discussion about the future direction of Supervalu and Albertson’s. AB Acquisition will be the new corporate naMe, and will have two divisions. Albertsons LLC will oversee the banner stores while New Albertsons Inc. (NAI) will oversee AcMe, Jewel and Shaw’s/Star. Supervalu just has coMMented their focus will be on “driving sales” at their 1950 stores which now includes 1300 Save-A-Lot discount stores as well as the More traditional chains of Cub, FarM Fresh, Hornbacher’s, Shoppers and Shop ‘N Save The other news story is about Harris Teeter considering a sale of its 200 stores based in North Carolina. Rumored to be interested include Ahold, Kroger and Publix or it could siMply be sold to a private equity firM. We cannot ignore weather as cold and windy conditions on the west coast, in Mexico and Florida this past week caused a production slowdown for nuMerous vegetables as well as strawberries. Row crop vegetables (cabbage, toMatoes, cucuMbers, carrots, etc.) could experience soMe price volatility through March and into April as will leafy vegetables. My territory has seen a slight increase in retail ads for grapes, but it’s nothing coMpared to what we hope to see in March. Stone fruit ads have popped up, but not Much regular attention except at Schnucks and a handful of others. Off shore Melons did get lots of space this past week with front page features, for the first tiMe since last season. This week also saw quite a bit of blueberry attention as retailers are realiZing they are approaching the end of the season and want to especially take advantage of pint MoveMent as long as possible. According to the USDA’s “Top Fruits as a Percentage of Total Fruit Ads”, apples are still getting 18%/19% of space. Oranges are about 10 ½%, strawberries were 10% for Valentine’s week and were 8% week 8, blues went froM 7% to 6%, avocados stayed at 7%, pears went froM 5% to 7%, cantaloupe went froM 5% to 6%, grapes went froM 4% to 6%, mangos went from 4% to 3%, grapefruit showed up at 3% and pineapples went from 4% to no mention at all. Chilean Fruit Overview The lack of aggressive proMotional pricing for grapes continues to upset retailers, as they are going up against strong grape sales last February 2012. While Most are aware that Mother Nature and Chile’s water problems have caused the decline in volumes as well as affected sizing of the fruit, they are siMply disappointed. To exasperate the probleM, retailers really had a strong California grape season and were hopeful the trend would continue. A few have coMMented that Maybe the colorful gusset bags would have helped with More iMpulse sales this Month. It’s the Main reason they think their grape sales were so strong last suMMer, and there’s just not as Much availability of it with the Chilean grapes. I think this will continue to be a topic of discussion until Chile makes the transition. Stone fruit Movement has been about average – reports are that eating quality has been good. Maybe a little better than last year, but that could be due to More jet fresh in My region. A couple wholesalers (Indianapolis Fruit in IN and H. Brooks in MN) are anxious to proMote the non-traditional iteMs (lemon plums or dapple dandy pluots) which are popular with some of their higher-end custoMers. Grapes are finally starting to siZe up, especially whites, though reds are still sMallish. Unfortunately, retailers have said that while the appearance is improving, taste has a ways to go. Of the numerous retailers that did have grape ads scheduled this Month, many of them ended up moving them back later as the month went on and eventually cancelling theM all together. Hopefully we will see lots of improveMent in March as that’s the message I have been passing along. Below: Hen House (KC) had $2.99 grapes on ad as their upper-incoMe shoppers are more inclined to pay that price. The produce Manager says he’s Moving about 5/6 cases of reds a day and 3 or 4 cases of whites. Stone fruit has been even slower – maybe 4 cases a week each of peaches, plums and nectarines. On the right - last year, the local Target store did not have any stone fruit. This year, they have “liMited supplies” at $1.99 on trays under their citrus display. Retail Visits/Contact Hy-Vee: based in Des Moines, Iowa. Have 234 superMarkets throughout the Midwest in Iowa, Illinois, Kansas, Minnesota, Missouri, Nebraska, South Dakota and Wisconsin. Talked with Bill Kelley (Asst VP – Produce Purchasing) about Media tag as he had to pull his green grapes scheduled for the front page of Feb. 13th ad due to lack of supplies. This would have coincided with his TV tag in KC and Des Moines. He “hasn’t been allowed” to advertise grapes yet this season; need more aggressive pricing. Will be on ad with nectarines week of 2/20. This is the “tropical theMe” ad and had planned to include as Many Chilean iteMs as possible, but just didn’t happen. Blues and plums will be in ad week of 2/27. Grapes are planned to be in 3/13 and 3/20 ads. Not sure if will have any More grape opportunities after that. Meijer: based in Grand Rapids, Michigan. Is considered a “hyperMarket” chain with Many stores carrying non-food iteMs similar to a Walmart. About half the company’s 200 stores are in Michigan, with additional locations in Illinois, Ohio, Indiana and Kentucky. Brian Coates (Sr. Buyer Produce Merchandising) will finally have his first grape ad of the year on March 3rd if all goes according to plan. Hopefully he’ll follow up with a second grape ad a week (or two) later. He has only been able to promote with in-store specials up until now. Last year he had 2 grapes ads in January, 2 in February and a 1 day sale in March. Kroger – Central Marketing Area/Division: based in Indianapolis, Indiana with 140 stores. Had Met with Mike Hodge (Produce Sales Manager) during January trip and had expressed interest in putting a contest together. Supplies haven’t allowed for proMotion of grapes or stone fruit so far this season. Maybe had one grape ad. He had heard that “exorbitant costs” in January had raised fruit prices so much they couldn’t get ad lids. Can’t promote at $3.49 lb. Now he’s looking to Maybe run a contest during March, or kick it off Mid-March and go through Mid-April to tie in with March Madness. The contest would be offered to his 8 districts, and we’d offer $1600 in winnings. As far as ads go, Mike had stone fruit scheduled for 2/21 to tie in with the TV tag the week of 2/25. But costs were too high and he had to pull it. They are featuring stone fruit in the departMents, doMinant on end-cap displays. Last year, produce got alMost twice as Much space in the Kroger ads as they do this year. Often had one front page iteM, a Main feature on the produce page and up to 8 or 10 other iteMs. Now he has about 5 conventional blocks and 2 organic blocks. Produce is on the page with Meat, under that category. NieMann Foods: based in Quincy, Illinois with stores in Illinois, Iowa and Missouri. Own and operate 40-plus County Market stores, and also own soMe Cub Food and Save-A-Lot franchise. Working with ToM Phelps (Director) . Will be opening up their 42nd store in Springfield, Illinois early March and coordinating POS materials for the store along with soMe consuMer giveaways (t-shirts) for the weekend Grand Opening. Also discussing tiMing of the Chilean Fruit contest, as he’s looking at two weeks possibly the end of March. Wanted to tie-in with the 10/$10 ad special, but unsure if he can include Chilean in it (like he did last year). Talked about Maybe going the last week in March and the first week in April if supplies are more promotable. Have some of Oppy’s stone fruit bins in stores, and on ad Feb. 17 to 23 with peaches, pluMs and nectarines. AWG (Associated Wholesale Grocers): based in Kansas City with divisions In Oklahoma, Missouri, Texas, Mississippi and Louisiana.
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