CHICAGO, IL - How do you determine shoppers’ favorite grocery stores? Is it by price? Is it by convenience? Is it by quality? I could go on, but a recent study by dunnhumby suggests that all these factors and more must be taken into account to accurately rank consumers’ favorite retailers. What sounds like a no-brainer is a unique and exhaustive study measuring customer preference by a Retailer Price Index (RPI). It looks like the code for favorite grocery store has been cracked!
The RPI rankings are the result of a statistical model that predicts how retailer execution on various consumer needs impact emotional bonds and financial success. Data for the statistical model was gathered from publicly available financial data and a customized, online survey of around 7,000 households. The statistical model addressed financial measures of size (grocery market share), efficiency (grocery sales per square foot), and recent growth (grocery sales growth), as well as emotional measures of trust, intensity of attachment, satisfactions, and recommendation. These measured criteria create a different way to look at retail preference.According to the study, “The main differentiator between our approach and other approaches to rank retailers is that our ranking results from a combination of financial success, emotional bond, and performance on preference drivers. Other lists typically produce simple ranks of retailers on just one of these dimensions. The result of using only one of these dimensions is that the industry has conflicting accounts of which retailer is ‘best,’ and those lists often don’t associate what retailers do (preference drivers) with resulting emotional connections and financial performance.”
The study focuses on determining how shoppers prioritize needs, coming up with several “pillars” of emotional bond and financial performance. These pillars include: perceived prices (lower than the competition); quality (right items, clean store, etc.); digital access (simple and easy ways to shop online); operations (out-of-stocks and pricing consistency); convenience (location, one-stop-shop-ability); discounts and rewards; and speed (get in and out quickly)
Taking all factors into account, dunnhumby came up with the following rankings for top grocer:
- Trader Joe’s
- Costco
- Amazon
- H-E-B
- Wegmans
- Market Basket
- Sam’s Club
- Sprouts Farmers Markets
- WinCo Foods
- Walmart
- Aldi
- Peapod
- The Fresh Market
For more news about important retail studies, keep reading AndNowUKnow.
GLENNVILLE, GA - Vidalia onion season may be months away, but many in the produce community are already beginning to plot out programs and hotly anticipate the some of the sweetest, mildest onions around. How is the market for sweet onions shaping up as we round into the homestretch of winter? To answer that, I turned to Bland Farms’ President and Owner Delbert Bland, who told me that the sweet onion market is making for a strong spring and summer season.
“The onion market is getting pretty good right now,” Delbert explained. “The onion market out of Mexico is going to be in the low-20s right now. In turn, Texas has not got a huge crop; they’re down in acreage, and supply is going to be somewhat limited. Vidalia is down in acreage, and all indications, right now, suggest it’s going to be a pretty strong market through the spring and the beginning of the summer.”
While Vidalias are a ways away, Bland Farms is currently transitioning from its Peruvian import season to its Mexico operations—supplying out of both countries for the next few weeks until the company transitions completely into Mexico during the second half of March.
Delbert also noted that, due to a shortage in Mexico, demand for sweet onions in the U.S. will most likely continue to outpace supply, and the company is in a unique position growing out of the Tampico, Tamaulipas, area.
“Sizing and quality is good at this point, but supplies are limited down there. The only volume you’re going to see coming out of there is out of the Tampico area; that’s where we grow our crop at,” Delbert explained. “Overall there’s still a shortage of onions in Mexico, so a lot of the onions that would normally be coming across to the States are staying in-country, where consumption of onions per household is tremendous compared to the U.S. market. When they’re in short supply that’s a big deal.”
Vidalia fans will have to wait until the middle of April till Georgia begins shipping, but Delbert told me, though acreage is down, the quality of the crop looks to be good.
“Usually a very strong Texas and Mexico deal sets the pace for Vidalia to be pretty good,” Delbert added.
For more fresh produce news, keep reading AndNowUKnow.
GRAND RAPIDS, MI - In the name of the retail game, you have to set your eyes on the prize, and SpartanNash is doing just that. The retailer reported in its Fourth Quarter and Fiscal Year 2018 Financial Results that over the next year or two it will be doubling down on long-term strategic growth—including acquiring new businesses.
“As we look forward over the next couple of years, we believe the landscape will continue to provide us with growth opportunities through acquisition, new customers, and expanded programs with existing customers,” said David Staples, President and Chief Executive Officer, in a recent press release. “That said, we still expect the operating environment to remain challenging during fiscal 2019. Our top five objectives for fiscal 2019 are: achieve mid-single digit sales growth; drive adjusted operating earnings and adjusted EBITDA growth over the prior year; realize $15 million of savings over the next 24 months from Project One Team, strengthen our management team, systems, and supply chain operations to further position the company for future growth; and reduce our debt levels and financial leverage ratios to facilitate achieving our strategic objectives.”
SpartanNash has been making several moves toward its goals over the past fiscal year. The retailer freed itself up for additional growth through acquisition by amending its current credit facility. Further, SpartanNash hired both a new Chief Merchandising and Marketing Officer, Lori Raya, and a new Chief Information Officer, Arif Dar. In December, the retailer executed ‘Project One Team,’ a company-wide initiative to drive growth while increasing efficiency and reducing costs.
“We are excited to see this initiative empowering our associates at all levels to drive sustainable improvements in our business as we take full advantage of the growth opportunities we expect to see over the next one to two years,” Staples said of Project One Team, though he did concede that the program is still very early in its deployment.
When looking at the rest of SpartanNash’s report for the fourth quarter and full year 2019, financial results seem to be mixed. Consolidated net sales for the fourth quarter increased $11.3 million, or 0.6%, to $1.90 billion from $1.89 billion in 2017’s Q4. Consolidated net sales for the fiscal year increased $100.8 million, or 1.3%, to $8.06 billion from $7.96 billion in 2017. However, SpartanNash did fall short of Wall Street’s expectations for both Q4 and Fiscal Year 2018.
To see a more in-depth look at SpartanNash’s most recent financial results, view the company’s press release here.
And for more on retail affecting fresh produce, AndNowUKnow will continue to report.
SALINAS, CA - TMD Creative has been making produce look pretty darn good, and now its been awarded for its efforts! Several award competitions have honored the international marketing and design firm for its work with fresh food and ag companies, including Ocean Mist Farms, Taylor Farms, the California Agriculture Leadership Foundation, Del Rey Avocado, Berry People, and Olinday Farms.
“We are incredibly proud to be one of the few firms in the country to represent the agriculture community and showcase their hard work in providing quality products that feed the world,” stated Nick Pasculli, President and CEO, in a recent press release. “TMD has always been rooted in agriculture and always will be.”
The following marketing, digital, and communication award competitions recgonized TMD for excellence:
Marcom Awards
- Berry People - Packaging
- Del Rey Avocado - Website
Davey Awards
- Berry People - Packaging
- Del Rey Avocado - Website
Summit International Awards
- Olinday Farms - Logo Design & Website
VMA Showcase Award
- Cal Ag Leadership Foundation - 2017-17 Annual Report
Vega Digital Awards
- Del Rey Avocado - “Fair Trade” Video
- Ocean Mist Farms - “Cut to Cool” Video
- Taylor Farms - E-Blast Campaign
- Organic Produce Summit - Collateral
“From day one, TMD has been integral in establishing a strategy for the launch of Olinday Farms, allowing me to focus my time on developing relationships with my own customers,” said Marc Metzer, President of Olinday Farms. “From our company name and logo design to retail packaging and video production, the TMD team has brought nothing but positive attention to Olinday Farms and the values we stand for."
Thank you to TMD Creative for continuing to make ag look so darn good!
WENATCHEE, WA - Pear season is afoot, and Stemilt continues to work towards pear improvement with its Operation Flavor program and a new announcement. In a move aimed at the consumer, the company will cease the use of any anti-ripening agents on any pear variety that comes through Stemilt’s doors, effective the 2018/19 crop year.
“We have tested and decided that this season, all of our winter pear varieties will no longer be receiving anti-ripening treatments,” stated Roger Pepperl, Marketing Director. “We will continue to focus on providing the customers with an amazing eating experience by focusing on Operation Flavor’s only mission: flavor.”
Though it sounds like some sort of espionage mission, Operation Flavor is a retail-trade-based program that was launched by the company in 2017. Throughout the program’s inaugural year, Stemilt’s team of pilots and promoters collaborated with various groups—from picking to packing—to create a plan to elevate pear flavors. 2018 was a year for action, as the company implemented improved pear practices to ensure full-flavored pears that are ready to eat as soon as they reach retail level.
“Pears can often present a challenge for the retailer as they are not ripe when the consumer is ready to make the purchase,” said Pepperl, in a press release. “When consumers go to the store, they expect the fruit to be ready to eat as soon as they get home—not a week down the road. We found that anti-ripening agents contributed to a product that never reached its potential flavor and was not delivering the consumer with an amazing eating experience.”
Anti-ripening agents are intended to slow down the fruit’s ability to age quickly, but can impact flavor. Stemilt’s Operation Flavor team discovered that after opening their rooms to pack, the pears were not waking up to start the ripening process, even after warming and gassing procedures. Dry pears were the unfortunate result, so the team tested and ultimately decided to pull anti-ripening agents entirely, and instead place a larger emphasis on ripening rooms to achieve maximum flavor.
Within the Operation Flavor program sits the company’s RipeRite™ Ready-to-Eat Pear Program, which uses Thermal Tech Tarpless® ripening rooms to ripen pears through the use of ethylene gas—a catalyst to kick-start pear ripening. The process helps ripen pears (a similar process is used to ripen bananas and avocados) and increases flavor enzymes to keep fruit close to their preferred pressures.
“Our RipeRite program helps the ripening process and allows us to pull anti-ripening agents entirely so we can provide customers with a flavorful Rushing Rivers® pear from Stemilt,” said Pepperl. “From this point forward, the consumer can recognize the brand and trust it, knowing they purchased a beautifully ripened, juicy, buttery-smooth pear.”
Pepperl went on to explain that Stemilt’s retail partners are now beginning to separate themselves from the market data of the competition's pear programs.
“Pear sales growth is needed to maintain the category,” commented Pepperl. “Ready-to-eat dessert-quality pears not only makes sense but are long overdue. Flavor is the only solution for pear retailers to succeed.”
According to the press release, Rushing Rivers Pears are grown in two of the best pear locations in the world, the Wenatchee and Entiat River Valleys. The majority of Stemilt’s pears are grown in those two heritage growing regions. The two river valleys—running parallel to each other in eastern Washington State—are well known for their nutrient rich soils, cooler temperatures, and great airflow.
“Rushing Rivers will always be a trustworthy brand for the consumer,” said Pepperl. “Between that trust and our consistent work and effort to fulfill Operation Flavor’s mission, we will provide an amazing eating experience for the consumer.”
Will this bold new direction in pear-growing pay off for the company? AndNowUKnow will keep you updated on how everything shakes out.
SAN FRANCISCO, CA - “We need to change what people think and feel.” While Valda Coryat, Director of Marketing for the National Mango Board (NMB), was addressing the NMB’s journey to revitalizing its brand’s story, this sentiment carried over across the entirety of this year’s BrandStorm™. The fourth annual United Fresh event was very much a three-day process of marketers locking arms with each other for the greater purpose of growing together as an industry and as individuals, and I, despite being a marketing newbie, felt as if I had not only glimpsed where marketing is headed, but just what the produce industry’s best and brightest are putting forth to keep fruit and veg a major contender in foodservice, retail, and beyond.
While we use the phrase “peeking behind the curtain” a lot at ANUK, the intimacy of BrandStorm 2019 truly felt like a peek behind the curtain—and I almost don’t want to share what secrets I had the privilege of uncovering…almost!
“This year’s BrandStorm has been full of energy! Our speakers brought their A-game and did an excellent job keeping the audience engaged and interacting with new and familiar peers," Mary Coppola, Vice President, Marketing Communications, for United Fresh, said to me. "We’ve covered a lot of content that has motivated attendees to get back to the office to start implementing new ideas and strategies that will advance their brand marketing initiatives.”
Whether your first day of BrandStorm was Wednesday’s tour of Viansa Sonoma or Thursday’s opening keynote session with Tamsen Webster, the event kicked off with a bang.
“This year’s tour on Wednesday was exceptional," Mary continued. "Hosted at the picturesque Viansa Sonoma vineyard by brothers Jon and Chris Sebastiani, attendees learned about the many brands Jon and his company, Sonoma Brands, have created, invested in, and driven to market on impressive time tables with success.”
Church Brothers Farms’ Vice President of Marketing & Product Development Kori Tuggle had the pleasure of attending both the tour and the keynote.
“I attended the tour, which was fantastic. It was great to see what’s happening with branding outside of produce. As for Tamsen Webster, she was fantastic, too!” Kori shared with me. “With each BrandStorm, we learn more. It’s nice to see this tradition grow for our marketing community.”
Following the keynote session, this year’s attendees—which included over 270 industry marketers—dispersed to take notes during some hard-hitting breakout sessions. Ed Hoffman, Padilla Food and Beverage Practice’s Senior Vice President, introduced foodservice as the next produce marketing frontier and challenged the marketers in attendance to remember that while produce continues to top menu trends, there is always work to be done and consumer preferences to keep in mind to maintain its place. Jennifer Tillman, Insight Specialist with Sonoco, then walked attendees through packaging faux pas as a means of emphasizing the best ways to grab shoppers’ attention in a split second. Valda Coryat teamed up with Weber Shandwick’s Chief Food and Nutrition Strategist Janet Helm to highlight key strategies produce marketing can utilize to stand out in an ever-growing crowd, emphasizing values, culture, and emotional connection as ways to wield brands’ unique stories.
“Produce marketing is a challenging, unique, and exciting sector within our industry and BrandStorm provides attendees the opportunity to collaborate and engage in a way not possible at any other industry event!” Julianna St. Geme, Associate Marketing Manager for Mission Produce, told me after a day of breakout sessions.
While the breakout sessions left me dizzy with knowledge—I seriously condensed all that I learned in that last paragraph, believe it or not!—it was the X-Change Sessions that I think were where the money was, so to speak. The X-Change Sessions opened the floor up to attendees to ask questions and engage in dialogue with each other, proving that while produce is only as strong as its weakest link, the community our industry has in place doesn’t allow weak links to remain that way for long. The sessions were led by DMA’s MacKenzie Wortham, T&G Global’s Brock Nemecek, Moxxy Marketing’s Karen Nardozza, Mann Packing’s Kim St George, Duda Farm Fresh Foods’ Elena Hernandez, and more!
“I think the energy level at this year’s conference has really stood out to me as something special,” MacKenzie Wortham, Account Director for DMA Solutions, shared with me. “United has done a great job creating an atmosphere where we feel encouraged and comfortable to interact with each other to gain ideas and inspiration. It’s a great setting to relax and get to know our fellow produce marketers with fewer distractions that we may feel at a larger trade show event.”
The last day of the event concluded with a few experts, like Pure Flavor’s Chief Marketing Officer Chris Veillon outlining the recipe for a successful marketing campaign and Avocados From Mexico’s President Alvaro Luque detailing how to get in front of the world during one of the biggest events of the year: the Super Bowl.
For more in conference and expo updates, stay tuned to AndNowUKnow.
SELAH, WA - Rainier Fruit Company has paired with hungry pear shoppers and some of the nations most beloved retailers—including Harris Teeter, Wegmans, and Lunds & Byerlys—to make a big difference in local communities; in partnership with these retailers, the fruit company recently donated more than 20,000 pairs of socks to five charitable organizations.
“As growers, our first priority is to grow and sell high quality fruit. Our success affords us the opportunity to make a difference in a variety of platforms that include health and wellness, as well as community giving,” said Mark Zirkle, CEO of Rainier Fruit, in a press release. “It’s thanks to the work of our dedicated team members that ideas like Pears for Pairs take on a life of their own. In this case it allowed us to shine a light on the growing problem of homelessness and at risk populations and we look forward to growing this program and other cause marketing ideas that support our retail partners and allow them to give back in their local communities.”
According to that press release, the company’s donations were the culmination of the seasonal cause marketing program Pears for Pairs—a program providing in-store marketing to retailers with a portion of the proceeds of all Rainier Fruit pear sales being donated to the Hanes Charity Sock Drive.
Participating retailers were able to select the local charity of their choice and direct donations to where they were needed most. Rainier Fruit representatives joined retail representatives and local media at charity locations during the weeks beginning weeks of January 28th and February 4th. Rainier Fruit and its retail partners made individual donations of 2500 to 5000 pairs of socks per each of the following location:
- The Men’s Shelter of Charlotte, NC
- The Salvation Army of Winston-Salem, NC
- St. Stephens Human Service of Minneapolis, MN
- Victims Resource Center of Wilkes Barre, PA
- Schulykill Women in Crisis of Pottsville, PA
“As a family company, we’re committed to making a difference in the communities we serve, and always appreciate an opportunity to partner with like-minded companies, like Rainier Fruit, to make a bigger impact,” said Linda Lovejoy, Wegmans’ Community Relations Manager. “The Pears for Pairs program is a great example of how communities thrive when we all work together.”
In addition to the donation of socks, participating local charities were also able to share more information on their programs and services with local TV and print media. And Rainier Fruit noted, the donations came at a critical time, with the polar vortex delivering frigid temperatures throughout the U.S. and putting additional stress on the resources of charities that support the homeless and at risk populations—a group of more than 3.5 million individuals.
“The grocery business centers around food—not just feeding people, but also feeding neighborhoods which nourish vibrant communities,” Danna Robinson, Communications Manager at Harris Teeter, remarked. “Harris Teeter is grateful for generous partners like Rainier Fruit that allow us to make a difference through contributions to local organizations which provide help where help is needed.”
In addition to donating 20,000 pairs of socks, the Pears for Pairs program saw participating retailers drive high double-digit increases in year over year volume sales.
For more fresh-focused news, keep reading AndNowUKnow.
JACKSONVILLE, FL - Just shy of a year after announcing Chapter 11 bankruptcy, Southeastern Grocers will close an additional 22 stores over the next month, the company shared. In total, the retailer said it will close 7 Winn-Dixie, 13 Bi-Lo, and 2 Harveys locations on or before March 25, according to a report by the Post and Courier.
“We realize that the closure of an underperforming store in your community can be challenging,” said Joe Caldwell, Senior Manager, Corporate Communications and Sports Partnerships, in a statement to multiple outlets. “We do not take these decisions lightly and only make this tough choice after careful consideration of its impact on our associates and our customers has been made.”
In March of 2018, Southeastern Grocers announced it was declaring bankruptcy and closing 94 stores across South Carolina, Alabama, Georgia, North Carolina, Mississippi, Louisiana, and Florida in the process. At the time, President and CEO Anthony Hucker said the move was in efforts to “...put our company in the best position to succeed in the extremely competitive retail market in which we do business.”
And that competitive environment still hasn’t slowed, despite Southeastern Grocers’ best efforts to remodel existing locations and open new stores catered to specific local demographics. Publix, Sprouts, Lucky’s, and more have all made efforts to expand in areas where Southeastern Grocers has strongholds.
AndNowUKnow will continue to follow the ups and downs of retail as it affects fresh produce, so stay tuned for the latest.
BRAMPTON, ON - Loblaw reported its 2018 fourth quarter results Thursday, as well as its 2018 Annual Report. Although its overall same store-sales left a little to be desired, it noted that a shifting pricing strategy for its non-food merchandise kept fourth quarter gains from rising too high.
According to a report from The Globe and Mail, the strategy, known as everyday-low pricing, successfully improved the retailer’s profit margins and drew in loyal customers. This strategy also had the benefit of weeding out those non-profitable customers who were only purchasing discounted items, President Sarah Davis said in a conference call to analysts. She also explained that general merchandise was excluded and only food was taken into account, same-store sales grew 1.8 percent.
“Q4 brought a fitting close to 2018, a year in which we set thoughtful but ambitious financial targets and then followed through on them,” Davis continued. “We saw strength in the underlying food and drug results, delivered through strong sales, core growth margin expansion based on data-driven margin decisions, and SG&A disciplines with new process and efficiency wins. In turn, we intensified investments in the right strategic areas.”
Highlights from the quarterly report include:
- Revenue was CDN$11.21billion (US$8.52 billion), an increase of CND$226 million (US$172 million), or 2.1%, compared to the fourth quarter of 2017
- Retail segment sales were CDN$10.98 billion (US$8.33 billion), an increase of CDN$181 million (US$137 million), or 1.7%, compared to the fourth quarter of 2017
- Food retail (Loblaw) same-store sales growth was 0.8%
- Operating income was CDN$445 million (US$338 million), an increase of CDN$388 million (US$295 million), or 680.7%, compared to the fourth quarter of 2017
“We are pleased to deliver strong operational performance again this quarter, achieving our full year financial targets in a challenging year,” stated Galen G. Weston, Executive Chairman, in a press release. “Our strategy has momentum, and we are accelerating our investments to deliver customer and shareholder value over the long-term.”
For the entirety of Loblaw’s financial report, click here.
NEW ROCHELLE, NY - All good things must come to an end, but luckily for us in produce, there’s always another season right around the corner. With a successful Moroccan clementine season behind it, LGS Specialty Sales is now predicting a robust W. Murcotts season up ahead. LGS is currently expecting a steady supply of W. Murcotts through the end of April.
“For nearly 30 years, LGS has sought the best growing regions that meet a rigorous set of standards to provide the best fruits to the U.S year-round,” said Luke Sears, President and Founder. “The fruit we import from Morocco, along with other countries, meets all ‘Darling specs’ for the highest quality in color, flavor, and overall crop health. The W. Murcott originated in Morocco and is also referred to as a Nadorcott.”
Born from Morocco’s dry summer and wet winter climate, Murcotts have a bright color, and rich, sweet flavor, according to a press release. Sears noted that the addition of the W. Murcott season allows LGS to offer shoppers enough supply to meet a growing demand of easy-peel citrus.
“It has been a smooth transition from our early winter Moroccan clementine crop as the Murcotts are anticipated to produce 20% more volume this year,” added Sears.
LGS inspectors monitor the crop throughout the season to make sure it meets the company’s Darling brand standards and maintain quality control. The company said its advisors are currently making the rounds to its off-season citrus farms and observing and advising on growing practices that improve product taste and yield.
Moroccan W. Murcotts are available in 2 lb, 3 lb, and 5 lb bags or 5 lb boxes and can be ordered by retailers now! Make sure to hop on your chance to offer this beauties before the season wraps up in the end of April.