Cross-Merchandising Gives Consumers Solutions Millennials crave healthy but interesting snack combinations By Bob Johnson display their foods in combination rackers and cheese, bread and deli cross-merchandising, items C with related items. wine, and more recently hummus that make for a quick but nutri- "Our field team consistently and pita go together in consumers’ tious snack satisfy the Millennial looks for opportunities to improve eyes, in the deli display. in us. our customers' ring size and Many new and interesting The Millennials are snacking overall profitability by cross-mer- mixes can be effectively merchan- because they don't have time, and chandising with pre-packed deli dised together in the deli if they if they're going to snack, they meats and cheeses, sliced and combine to answer a question. want healthier snacks," says Paul dried meats, hummus, spreadable "The most effective cross-mer- Cipolla, president of Plocky's Fine cheese and various dips: says Eric chandising is a presentation that Snacks in Hinsdale, IL. "The trend Van De Wal, vice president of provides a complete pairing the last four or five years has been marketing at The Snack Factory in solution to the customer," says toward the healthier snacks." Princeton, NJ. Cara Figgins, vice president at High nutritional value and clean Industry experts recommend Partners, a Kent, WA-based labels matter in the eyes of the displaying a variety of interesting cracker company "With effective generation setting the standard in items that can be quickly and cross-merchandising the retailer the deli. easily assembled into an exciting could increase from selling just Plocky's chips are gluten free, meal. one of the items in the pairing to kosher, non-GMO, and have no selling all three items. When it is trans fats. "They have made easier for the consumer, they good-for-you ingredients and the "The latest trend is putting are much more likely to buy the Millennials like that. They a meal solution together," whole combination." merchandise best over a refrigerat- ed case where hummus is says Sharon Olson of Olson Because exciting answers to Communications, Chicago. consumer questions sell, the displayed." operative word here is solution. Protein and produce items can "The consumer can have the "The main thing to keep in be part of the cross-merchandising satisfaction of putting a meal mind when merchandising deli program because they help fill out together and they can get it crackers and cheeses is that the a nutritionally balanced snack. all in one place instead of consumer is always looking for a "There are many things in the deli that lend themselves to being going all over the store." presentation solution, and if the She suggests the deli take retailer creates that solution, the cross-merchandised — meats consumer is very likely to buy it," and cheeses, vegetables and fruits a cue from the trend in which says Figgins. with cheese spreads," says companies deliver ingredients Jenni Bonsignore, marketing for healthy, seasonal dinners to Combine Tasty and Healthy manager at Valley Lahvosh While high-end ingredients a patron's door weekly, to be Baking in Fresno, CA. assembled in their kitchen. that combine into a gourmet Some producers make a point of meal excite the connoisseur in helping retailers effectively Similarly "the supermarket can us, and can be the holy grail of showcase all the items for an amazing meal together," says Olson. MERCHANDISING REVIEW Promotional Prices Optional Many producers believe that discounted prices add to sales, but are not essential for an effective cross-merchandising program. "Promotional prices are not needed, but it sure does help," says Gerard. "Customers want deals and even a small discount will encourage adding that additional item and increasing the ring.” Providing information about how to use two or more items together can help increase sales at least as much as offering a price break. "Promotional prices are always helpful but I think it's more important to let the consumer know what to do with the items being cross-merchan- Because some consumers crave Kracker's Robustica Flats are a dised," says Bonsignore. "It's always gourmet meals at home, but are distinctive offering that doesn't use helpful to provide serving sugges- starved for time, this sort of solution flavoring agents, but the actual tions or recipes that use the items has the potential to significantly ingredients like real cheese. being featured." increase deli revenues. Flat-breads are a growing part of the Creative pairing can seal the deal "When you combine a couple of category and have especially enjoyed without a discount, in particular, products together you can increase a real success in the deli.” when cross-merchandising for your sales," says Eric Gerard, vice New varieties of higher protein holidays or special events. president of sales and marketing at chips will make a first public appear- "I think the need for promotional Van Holten's pickles in Waterloo, WI. ance late this spring. pricing depends on whether it is "Depending on the item retailers can "We have some different flavors during a time that people would be easily boost the average ring 10 we're going to introduce at the Fancy most likely to be entertaining or if percent, and sometimes a whole lot Food Show at the end of June," says you are presenting it to an everyday more when they are pushing a full Diane Cipolla, vice president for shopper," says Figgins of Partners. meal solution." sales at Plocky's Fine Snacks, Hins- "I think an everyday shopper would The largest number of consumers dale, IL. "In the deli we had the be more likely to purchase the coming to the deli, however, will three-ounce hummus chips in 900 pairing if at least one of the items continue to be looking for healthy Publix stores and did very well. We was on promotion. and interesting snacks they can eat also have an 8-ounce package of If it is a busy holiday entertaining on the go. hummus chips. They do very well season, I think just providing the A number of companies are with hummus." solution to the customer could be unveiling new products specifically There will also be new snacks sufficient." targeted toward this hurried but targeting a growing number of Retailers and producers find some health conscious demographic. consumers trying to avoid gluten. items can be effectively cross-mer- Dr. Kracker launched Robustica "We have recently launched chandised through displays outside Flats on February 1, says Bob Gluten-Free Pretzel Crisps Minis in the deli, in other areas of the store. Obenberger, a partner in the Plano, many of our retailers nationwide," "I think stores can use themed TX company. "These products are says Van De Wal of the Snack displays in other areas of the store great for pairing with dips and Factory. "It comes in two flavors, with recipes and coupons for deli hummus, or as a carrier for cheese or Original and Salted Caramel. We're items that will direct their consumers other proteins. So far about half of excited to be able to provide consum- to the deli," says Bonsignore. "For the stores have placed them in the ers sensitive to this allergen more example, in one store chain for deli, and half in grocery. Dr. choices and variety." Valentine's Day, our Heart Lahvosh MERCHANDISING REVIEW was displayed in the back aisle of the as well as brands such as Nutella. A didn't even know about our Crisp- store with wine and serving sugges- typical point of distribution can add a breads." tions for cheeses and spreads." minimum ofone case or 12 bags of At least a few producers and retailers Some baked goods do well to stake incremental volume per store. Couple are taking a second look at what out familiar space near, but not in, that with Nutella and the average items are best merchandised in the deli department. ring goes from $3.49 to $7.00." deli, and what do better elsewhere in "We are primarily right next to deli Some items that can be displayed the store. in the bakery," says Michael Girkout, in deli are better displayed in other "Some retailers are moving more president of Alvarado Street Bakery sections of the store where consum- deli snacks and crackers into the in Petaluma, CA. 'We are usually ers are used to finding the category. grocery department, because of a merchandised with organic cream "We made the decision to move desire to manage the entire category cheese, almond butter or that sort of our Crispbreads to grocery a few under one department," says Oben- thing because we make organic years ago, where consumers are used berger. "You're seeing limited dry bread." to finding Crispbreads," says Dr. goods selections in some delis while Alvarado Street also makes what Kracker's Obenberger. "The competi- others are doing a good job of Girkout calls "kids bread," which is tion is merchandising in the grocery presenting a large variety of items to merchandised with peanut butter and department so we found our sales complement their cheeses, proteins jelly to make an inviting display for increased by moving there, with Dr. and dips. We're always !coking more easy, healthy school lunch items. Kracker being the only organic in depth at the question of bringing The produce department, too, can offering. When we were in the deli items to the market that merchandise serve as a display destination for deli some people shopping the category and grow sales in the deli." DB foods that pair well with fruits.