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Fancy Food Show fancy food show 2 MONDAY DAILYOFFICIAL JANUARY 20, 2020 ROUNDUP 8 • SAN FRANCISCO FOOD SCENE 10 • TODAY’S LINEUP 14 • FLOORPLAN 20 HAPPENING TODAY Specialty Drivers Vary in 2020 9 – 9:45 a.m. By Julie Gallagher “Specialty food and beverage sales account for 16 Be Your Own Trendologist: Beverages, snacks, and plant-based foods are percent of all food and beverages so the fact that it’s Understanding the Specialty approaching 20 percent is a major milestone,” said Food Trend Landscape standouts in the specialty segment which, despite Main Stage approaching maturity, continues to outpace the growth David Browne, senior analyst, Mintel, who produces of conventional, according to research presented the research with SFA. 10 a.m. – 5 p.m. Helping spur sales is the rise in popularity of Exhibit Floor Open yesterday during the SFA's State of the Specialty Food (Esplanade Exhibits and What’s Industry session, 5 Key Drivers in Specialty Food. specialty beverages, which hold 18 percent share of all NEXT in Food open at 9:30 a.m.) specialty products and account for $12 billion in sales. The fastest growers are ready-to-drink tea and coffee 10:15 – 11:15 a.m. (19 percent), water (15 percent), and refrigerated juices Science Saves the Food: Solving Waste, Building the Future and functional beverages (7 percent). Main Stage “Rising trends include functional drinks that boost energy, mental focus, relaxation, and microbiome 10:30 – 11:30 a.m. The Fate of Food: What We’ll Eat health,” said Browne. in a Bigger, Hotter, Smarter World Boding well for specialty is the fact that Big Idea Stage, Front of Aisle 1800 consumers are making snacking part of their daily 11:30 a.m. – 12:30 p.m. routine with everyday snacking appealing to close to Big Idea Talks half of specialty food consumers. High-protein and Big Idea Stage, Front of Aisle 1800 See DRIVERS p. 3 1:30 – 2:30 p.m. Expanding Your Plant- Experts Provide Updates on Regional Cuisine, Tea, Based Options in Retail Main Stage Regulatory Challenges Noodles Among Day 1 Trends By Arielle Feger By Denise Purcell 2:15 – 3:15 p.m. CBD in Foods and Beverages– “It’s been an extremely busy year for regulatory updates Early picks from the SFA Winter Show Trendspotter Full Speed Ahead in a in the specialty food world,” observed Ron Tanner, panel point to new regional cuisines emerging in the TBD Legal Climate vice president of education, government, and industry mainstream, and global flavors and recipes driving Big Idea Stage, Front of Aisle 1800 relations, during yesterday's session, Policy Spotlight: categories like teas and instant noodles. 5 – 6:30 p.m. Key Issues for Your Specialty Food Business. The The SFA Trendspotter panel, made up of buyers, Front Burner Foodservice panel session, moderated by Tanner, included Tom chefs, and industry watchers, are reporting daily from Pitch Competition Main Stage Gellert, president of Atalanta Corporation; Bob Bauer, the show. Here are some examples from Day 1 and president of the Association of Food Industries; Jeni more can be found throughout the exhibit halls. SFA Members Updated Lamb Rogers, JD, MS, partner at PSL Law Group LLC, Emerging Regions in Global Cuisines: and Sophia Castillo, JD, partner at Downey Brand LLP. Southwestern Asia and the Caribbean on New Programs Members of the panel addressed the following: Regional cuisines around the world continue to gain By Julie Gallagher Retaliatory Tariffs mainstream interest, with foods from southwestern Specialty Food Association Last year, France passed a measure to tax companies Asia and the Caribbean in the spotlight at the Winter Co-Chairs Trish Pohanka and like Amazon and Google that aren’t headquartered in Show. Two companies in Incubator Village are offering Becky Renfro Borbolla briefed SFA the country but make money on its citizens. Viewing traditional Persian recipes. Niloofar makes Persian members on increasing member this as an attack on U.S. companies, the U.S. threatened Trail Mix, or ajil, and roasted Persian-style almonds, benefits, listening to the voice of to retaliate with 100 percent tariffs on French cheese, and Oyna Natural Foods offers kuku, a Persian-style the SFA community, and improving wine, cookware, handbags, and other consumer goods. frittata. Tortuga Rum Cake Company showcases a new member services, during last night’s “This would be devastating to French suppliers,” said rum cake made with mamajuana, a native beverage Member Update Meeting. Gellert. The U.S. is also keeping close watch on Turkey from the Dominican Republic that contains rum, wine, and Italy, which have passed similar laws. honey, herbs, and tree bark. See MEMBER UPDATE p. 3 See POLICY UPDATE p. 4 See TRENDS p. 4 JETRO WFFS 2020_AD_10.50×13.50.pdf 1 2019/12/18 11:47 C M Winter Fancy Food Show 2020 Y CM Moscone Center South Hall MY CY CMY K 850-869, 950-965 FOLSOM STREET ⬇ ▲ S ⬇ ⬇ Hwy SOUTH ⬇ 80 JAPAN PAVILION HALL FOLSOM STREET FOURTH STREET South Hall Entrance Moscone Moscone South West THIRD STREET BART/Muni THIRD STREET Powell St Moscone Station North MISSION STREET BART/Muni Montgomery St Station Powell-Hyde Line Powell-Mason Line FOURTH STREET NORTH HALL MISSION STREET SHOW NEWS DRIVERS continued from p. 1 low-sugar options are helping lead the way in the category that accounts for led by all natural, with 68 percent of specialty food consumers buying these $18 billion in sales and holds 27 percent of specialty food and beverage share. foods; organic (55 percent); and non-GMO (45 percent); locally sourced Jerky and meat snacks were the fastest sellers in the segment, experiencing (41 percent) and eco-friendly (40 percent); ethical (37 percent); fair trade 10 percent growth, followed by chocolate and other confectionery (9 (36 percent); plant-based (34 perent); gluten-free (27 percent); and sustainable percent), and juices and functional beverages (7 percent). (25 percent). Plant-based foods are not only becoming mainstream, but innovations “One-quarter to one-third of all purchases are coming from each of in the segment are driving growth in several of the top 10 specialty food those,” said David Lockwood, director of Mintel Consulting. categories, which are led by shelf-stable creams and creamers (37 percent), Also driving specialty food growth are generational preferences with plant-based meat alternatives (36 percent), and refrigerated creams and trial peaking between ages 25 and 34, number of categories purchased creamers (20 percent). peaking within the 45 to 54 age range, and spending on food at home According to Browne, one-third of specialty food consumers have peaking between ages 35 and 44. purchased plant-based products, and preliminary findings from the research “Gen Z is most likely to spend the largest percentage of their food budget show the vast majority of committed plant-based consumers (90 percent), are on specialty,” Lockwood said. “Millennials spend the most per week on food specialty food consumers. prepared at home, and Gen X purchases the most categories since they may Ecommerce is a key channel for purchasing these products with 41 have young children and older children at home.” percent of shoppers buying at least some of their groceries via the channel. Specialty food consumers are also seeking specialty foods to fit into “We feel confident that online specialty sales will double to $6 billion in sales special diets that they are following, with many taking an a la carte approach within the next few years,” said Browne. to these lifestyles, Lockwood said. Specialty food consumers currently follow The top 10 online specialty categories achieved purchases from 10 4.5 diets vs. 3 diets for non-specialty food consumers. The most popular are percent to 15 percent of specialty food consumers in 2018, with some low-sugar, high protein, and low carb. emerging for the first time, including water and sparkling water, with 15 “Dieting has changed since younger adults are following more than one percent of specialty food consumers purchasing; nuts, seeds, trail mix, and diet at the same time,” said Lockwood. “There is an enormous amount of dried fruit, with 11 percent purchasing; soda and carbonated beverages, 11 opportunity here.” percent; bars, 10 percent; and juice, 10 percent. Altruism also continues to influence the specialty food space. While Another channel holding promise for specialty food makers is foodservice, consumer support for transparency and traceability is significant, it hasn’t said Browne. While specialty foods only account for 4 percent of all food in the changed much in the past five years, according to Lockwood. What has, are $32 billion channel, it holds great potential, he said, but warned that it can be companies’ willingness to make these things part of their long-term goals. “a tough nut to crack,” for those looking to break into the space. “Specialty companies are changing from looking strictly at innovation to Positioning claims in the specialty food space draw dedicated consumers, considering what they can do to change the world,” Lockwood said. MEMBER UPDATE continued from p. 1 “We’ve spent the last two years updating our membership policy with the The SFA has invested more in serving its members, he said. In addition goal of having a more robust and engaged SFA,” said Renfro Borbolla. “We to growing its membership team by five, it plans to assign a specific want to welcome all segments of the industry into our community.” consumer specialist to each member company, an enhanced Learning Center, The new policy enables startups to access SFA benefits at an earlier and, beginning Feb. 3, a help desk staffed Monday through Friday during stage; expands the influence of the SFA community; encourages more buyers business hours.
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