PRIVATE LABEL on the BRINK Yes, Dollar Share Is Up, but Store Brand Unit Share Remains at 21.1%
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ASIAN FOOD u JUICE u MEXICAN FOOD u BREAD & DOUGH u LOGISTICS NOVEMBER 2015 PRIVATE LABEL ON THE BRINK Yes, dollar share is up, but store brand unit share remains at 21.1%. Industry insiders say future growth hinges on innovation. JOHNNY HARRIS TODD HALE SUSAN SENTELL SARA AGNELLO ON THE DISAPPEARANCE ON BUYING HABITS ON DIGITAL ON RAISING OF RELATIONSHIPS OF YOUNG AND OLD COMMUNICATION MICHAEL ANGELO’S PAGE 18 PAGE 22 PAGE 26 PAGE 46 www.frbuyer.com TABLE OF CONTENTS COVER STORY PRIVATE LABEL ON THE BRINK 28 Yes, dollar share is up, but store brand unit share remains at 21.1%. Industry insiders say future growth hinges on innovation. T H E D A T A B A N K T H E F R O N T E N D 10 The latest and greatest sales OUT Warren’S Way data from IRI, courtesy of 4 Is it still ‘Private Label?’ Or Peter Penguin, Bessie Bovine Own Brand? Or Corporate and Delano Deli. Brand? Or Store Brand? (Why Bessie’s photo credit: would anyone care?) © Can Stock Photo Inc. / phototrekker Peter’s photo credit: © Can Stock Photo Inc. / Clivia NEw PRODUCTS FDR’s photo credit: 6 © Can Stock Photo Inc. /bberry In case you missed it, we’ve got lots of new items from last month’s NFRA Show. CATEGORY SPOTLIGHTS JOHNNY’S COLUMN ASIAN FOOD POISED TO POP 34 18 Business lunches and golf But only if price wars are replaced games are becoming scarce. with true innovation and smart People change jobs like marketing. undershirts. And trade relations are worse than ever. HEALTHY JUICES RULE 38 Hmm… Some traditional segments are struggling, but up-and-comers like COOL INSIGHTS smoothies, functional beverages 22 Todd Hale discusses and vegetable juice cocktails continue to gain ground. differences in the buying habits of Millennials and MEXICAN FOR THE ‘MORE GENERATION’ 40 Boomers. New forms and formats, premium ingredients and bold flavors aimed at the Millennial crowd are pushing the category to new UPFRONT heights. 26 Guest columnists Susan Sentell and Jeff Bulger hold BREAD RAKES IN MORE DOUGH 42 forth on trends in digital Units were down slightly, but frozen bread and dough dollar communication and quick- sales rose 1.3%, thanks in part to the introduction of value- response demand forecasts, added, microwavable alternatives. respectively. LOGISTICS 44 Used racking brings new headaches, Henningsen earns SHARP certification, and TQL expands. GETTING personal NFRA SHO w 46 A VISIT wITH ‘MOM’ SARA 37 CONVENTION CAMERA Sara Agnello recalls raising Scenes from last month’s National Michael Angelo’s, along with Frozen & Refrigerated Foods Asso- sons Michael and Anthony ciation convention in Dallas. Renna. NOVEMBER 2015 www.frbuyer.com 3 OUT wARREN’S wAY Clarence Birdseye was a pup. So all of a sudden we’re supposed to IS IT STILL start calling it Own Brand, or OB? I expect to see “GYN” after OB, with VOLUMe 7 ISSUe 4 ‘PRIVATE LABEL?’ a little dash in the middle. Or CB? warren Thayer Citizen’s Band radio? Editorial Director, Managing Partner Or Own Brand? Or Corporate Why in heaven’s name is there a [email protected] Brand? Or Store Brand? (why movement afoot? Is it because we’re 603-252-0507 would anyone care?) afraid the word “Private” has been Paul Chapa co-opted by the NSA, and shop- Sales Director, Managing Partner pers are going to think private label [email protected] hilst standing inno- 913-481-5060 cently at the bar await- products might have embedded wing my usual glass of chips and spy on them while hiding Denise Leathers chocolate milk (up) at the National in the refrigerator? Editor [email protected] Frozen and Refrigerated Foods This same brand of paranoia took 215-489-5090 Convention last month in Dallas, root with Health and Beauty Aids a someone — I’ve forgotten who — generation ago during the AIDS ep- Janet Matz Art Director tapped me on idemic. Otherwise intelligent peo- [email protected] the shoulder. ple actually thought that consumers “I hope you would associate deodorant, eye Michelle Jones-Silva guys aren’t shadow and nail polish with AIDS. Sales Manager going to call So the category became Health and [email protected] 913-701-8524 ‘Own Brands’ Beauty Care, or HBC. Phew! Sure ‘Private Label’ glad we dodged that one! And no- Contributing Editors: in your next body would have bought Band Aids Johnny Harris, Todd Hale, Dan Raftery, Mike Friedman, issue,” he said. anymore. Nobody. Ever. Chef Rick Tarantino, Adrienne “Well, our Brokers have had their own little Nadeau, and Keilly Witman. next issue battles here, too. Someone decided gets passed out at the Private Label that the term “broker” was outmod- Editorial Advisory Board Manufacturers Association conven- ed and somehow not reflective of Dan Raftery, tion. Are they calling themselves their advanced intellectual holiness Raftery Resource Network the ‘Own Brands Manufacturers today. So darned if the National Bob Anderson, former vp of Association now?” I asked. Food Brokers Association didn’t be- private label, Wal-Mart “You know they won’t change come the Association of Sales and Johnny Harris, that. But seriously, nobody calls it Marketing Companies. Rolls right Johnny L. Harris Consulting off the tongue, doesn’t it? ‘Private Label’ anymore.” Skip Shaw, National Frozen Well, shoot. When you Google & Refrigerated Foods Association ‘Private Label,’ you get 17.8 million DON’T ASK, DON’T TELL Ellen Schmitz, IRI hits. All this makes me think of I used to get chastised for saying Yogi Berra’s explanation of why he “broker” again until a year or two Kraig Naasz, didn’t like a certain restaurant. ago, when a truce was apparently American Frozen Food Institute “Nobody goes there anymore,” he declared. Both terms are now at Corey Rosenbusch, said. “It’s too crowded.” least acceptable to most people. But Global Cold Chain Alliance But I’m told there is a jihad it’s a bit like the military’s old rule Published by CT Media Partners, against using “Private Label” any- of “Don’t ask, don’t tell.” It’s just not Postmaster: Send address changes to more. Warring tribes are insisting polite to ask people if they prefer CT Media Partners, PO Box 1564, Norwich, VT 05055 on Own Brand, Corporate Brand, to be called brokers, or sales and Store Brand, or perhaps even Brand marketing company professionals. U.S. subscriptions $40 per year. X, although I wouldn’t recommend So I just mumble and get through it that one. somehow. What is this fixation we have Good luck to private label, or with rearranging the Titanic’s whatever it decides to call itself. I deck chairs? I mean, I have better remain an infidel. things to worry about, like Donald Trump’s hair. Or Bernie Sanders’ hair, gosh, who’s his barber? Fact is, we’ve been calling it Warren Thayer, Editorial Director Private Brand, or PL for short, since [email protected] 4 www.frbuyer.com NOVEMBER 2015 14-4602_FDBAd2012_fp.pdf 1 September/21/12 2:11 PM C M Y CM MY CY CMY K T. Marzetti Company 1105 Schrock Rd. P.O. Box 29163 Columbus, OH 43229-0163 614-846-2232 Fax 614-842-4186 www.marzetti.com www.sisterschuberts.com NEw PRODUCTS Berry-Banana Blend Marinated Tofu Cutlets Milbridge, Maine- House Foods (www. based Wyman’s house-foods.com), of Maine (www. Garden Grove, Calif., wymans.com) adds introduces ready-to-eat a “first-of-its-kind,” Marinated Tofu Cutlets red, white and blue made with organic tofu blend to its line of produced from 100% U.S.- frozen berries. Of- grown soybeans. Designed fered in resealable to be used right out of 3-pound bags, the the package with minimal fresh frozen mixture includes wild blueberries, strawber- prep, the gluten-free, Non GMO ries and bananas. SRP is $10.99. Project-verified cutlets come in three MSG-free flavors, each Fresh Frozen Fruit Snacks offering 14 grams of protein per Boulder, Colo.-based Cool Frootz (www.froozer.com) serving: Teriyaki, Asian BBQ and debuts fresh frozen fruits and veggies in a tube. Of- Spicy Garlic. Served hot as a burg- fered under the Froozer er replacement or cold in a salad, the kosher-certified, brand name, the Non GMO vegetarian cutlets come in 6-ounce packages packed six Project-verified, soft-serve to a case. SRP is $3.49 to $3.99. snacks are made with whole fruit, not purees — Premium Frozen Yogurt and no added juice, water St. Paul, Minn.-based Kemps (www.kemps.com) expands or sugar. They’re available in its super-indulgent Frozen Yogurt Shop collection three nutrient-rich flavors: with four new, on-trend flavors: Strawberry Cheese- Organic Strawbanana Bliss (grapes, strawberries and bananas), Blue Aloha (pine- apples, grapes, bananas, blueberries and carrots) and Organic Tropical Sunset (mangoes, grapes, pineap- ples and bananas). Free of fat, gluten, cholesterol, artificial colors and sweet- eners, preservatives and sodium, the 35- to 40-calorie, 2-ounce tubes come in six-count, 12-ounce packages that cake, Chocolate Hazelnut, Cinnamon Spice Cookie and can be merchandised vertically or horizontally. SRP is Chocolate Lovers. Denser and more “scoopable” than $4.99. The snacks can also be sold singly for $1.29 apiece. traditional packaged frozen yogurt, the premium line features rosettes, revels and unique toppings designed Asian Appetizers to create more visual impact. Clear packaging — “a Kahiki Foods (www. frozen yogurt category first” — lets consumers kahiki.com), Gahanna, see what’s inside the container before they Ohio, launches a line of buy. SRP is $5.49 for 30 ounces.