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BETTY BUYER
‘TWEETS’
WITH
SAMMY SELLER
PAGE 20
BILL
HENDRICKSEN
& ROUNDTABLE
ON LOGISTICS
TECH
PAGE 60
LINDA BEAN
(OF LL BEAN)
GETS INTO THE
LOBSTER BIZ
PAGE 66
PETER PENGUIN
WITH THE
DATABANK
PAGES 10 & 18
DENISE
LEATHERS
IS PROMOTED!
PAGE 8
WHOLE FOODS:
RETAILER
OF THE YEAR .
C O V E R STO RY
WHY WHOLE FOODS IS
22
OUR RETAILER OF THE YEAR
Well, there are more reasons than you can shake a stick at.
Here’s what a cross section of competitors, vendors and
consultants have to say.
T H E D ATA B A N K
10-11 SymphonyIRI Group’s latest data, courtesy
& 18-19 of Peter Penguin and Bessie Bovine.
C AT E G O RY S P O T L I G H T S
LOGISTICS
GETTING PERSONAL
C
Sales Director, Managing Partner
an’t believe I suckered IRI or 15% will do $7.5 million. paul@fdbuyer.com
into letting me come to Gosh, this guy is smart. 913-481-5060
this conference Shoppers aren’t Tommy Howell
again as “press.” Why responding to Associate Publisher
does everyone look so loyalty programs as tommy@fdbuyer.com
young? Cops began well anymore, cuz 913-371-6811
looking young years they’re just disguised Joan Weinberger
ago, but now category discounts — nothing Advertising Manager
managers and exec like Amazon’s sug- joan@fdbuyer.com
212-254-4627
vps? gestions for you and
Club store growth all that. Got to break Randy Szarzynski
Art Director
will slow from today’s down the silos in our
randy@fdbuyer.com
5%-6% down to 1%. organizations and
Supers won’t do great. make sure everyone Jordan Beckley
Dollar and drug are do- talks to each other. Webmaster/Wizard
jordan@fdbuyer.com
ing best. Loyalty cards work okay if Retailers and manufacturers have to
you’re Kroger and put a lot of effort communicate better. Denise Leathers
into it, but most of us don’t know Executive Editor
much about our shoppers. THINGS DON’T CHANGE denise@fdbuyer.com
215-489-5090
Did I turn my cell phone off? Gee, I wrote about that 30 years ago.
Promo spending hasn’t paid Some things don’t change. Contributing Editors:
off; we oughta be spending more Whoa! Some guy from Walmart Len Lewis, Dan Raftery, Randal Con-
on building brand value, and less is saying that 52% of population stant, Mike Friedman, Morgan Little
and Betty Buyer.
on deep discounts, which aren’t growth in the U.S. over the next
productive. There’s a disconnect five years will be Hispanic. And this EDITORIAL ADVISORY BOARD
between FSIs, Catalina, and in-store lady from Univision is saying that Dan Raftery,
merchandising. It all seems kinda one in four babies born in the U.S. is Raftery Resource Network
random, with duplicate spending. Hispanic. Lots of similar data. Mes-
Todd Hale, The Nielsen Company
Is that blueberry muffin still in sage: don’t consider Hispanics as a
my briefcase? segment, but as part of the overall Bob Anderson, former vp of
private label, Wal-Mart
Shoppers, in a recent poll, said a consumer basis; include them in
price increase would impact spend- your marketing plan, don’t just tack Dr. Brian Harris,
ing, but their level of negativity them on at the end. The Partnering Group
wasn’t much affected by whether How can I write stories about Skip Shaw,
the increase was 5% or 15%. So, go all this when I go to the printer National Frozen & Refrigerated
Foods Association
for it. There are an average of 360 tomorrow? I know! I’ll just blog it,
items in consumers’ pantries today, in print…. Thom Blischok,
10% less than four years ago. Stores SymphonyIRI Group
with around 4,000 SKUs are doing Celebrity Chef Rick Tarantino
well now; you got too many SKUs? Published by CT Media Partners,
The camera that shows the Postmaster: Send address changes to
speaker also shows people in the CT Media Partners, 11472 S. Wilder St.,
front row, up on this big screen. Olathe, KS 66061
Wonder who that balding guy is, off Warren Thayer, Editor
to the left. Oh, my God… warren@fdbuyer.com
FASTEST CRANBERRY JUICE/CRANBERRY JUICE BLEND $739,126 771.4 208,885 907.0 3,655,686 312.8
DAIRY
POM Wonderful $682,639 * 193,721 * 3,099,541 *
GRAPE JUICE $1,833,587 545.4 579,522 245.9 30,590,420 774.3*
elch’s Healthy Start $1,690,680 * 493,069 * 29,091,090 *
Tropicana $103,256 (42.1) 71,465 (41.9) 857,586 (41.9)
Dollar sales of dairy products in U.S. SNACK CAKES/DOUGHNUTS $6,346,435 493.5 2,213,260 774.9 1,031,351 518.8
supermarkets reached almost $11.80 Pillsbury Sweet Moments $3,990,829 * 1,458,595 * 535,503 *
billion during the 12 weeks ended Feb. Jell-O Temptations $1,213,679 * 441,428 * 331,346 *
20, 2011, a 3.8% increase over the same Private Label $966,329 7.8 254,742 20.9 135,861 (3.0)
period a year earlier, according to JUICE/DRINK CONCENTRATE/SYRUP $666,683 43.0 44,433 42.0 1,822,590 25.3
Chicago-based market research firm Brownwood Acres $367,593 23.6 22,875 26.4 696,912 24.3
SymphonyIRI Group. Units expanded Cherry Ridge Juice $144,185 42.5 9,817 74.1 278,886 67.7
0.2% to 4.99 billion, but volume dropped Nature Blessed $91,575 366.7 4,036 370.2 129,167 370.2
1.8% to 39.83 billion. Percentage of PEANUT BUTTER $600,260 22.5 134,675 17.3 158,860 14.8
volume sold with merchandising support Parkers Farm $464,980 34.7 111,029 26.5 126,730 24.0
fell nearly 1.9 points to 40.0%. Private Label $115,036 (8.5) 19,877 (14.4) 28,361 (12.3)
For the 52 weeks ended Feb. 20, CAKES (NO SNACK/COFFEE CAKES) $24,374,070 21.2 3,218,874 23.7 5,333,235 27.0
dairy dollar sales jumped 2.8% to $47.92 Private Label $19,822,610 23.4 2,582,618 25.2 4,400,682 29.7
billion. Units were also up (+0.5% to 20.88 Dutch County $1,579,689 19.0 247,945 20.4 338,977 20.0
billion), but volume slipped 1.1% to 170.34 Creative Occasions $487,580 (2.1) 37,581 0.1 87,688 (3.9)
billion. Percentage of volume sold with Dutch Maid $347,818 (0.1) 38,642 (8.9) 73,227 8.8
merchandising support decreased 3.6 The Original Cakerie $243,405 49.0 39,045 47.0 36,700 56.7
points to 43.0%. Best $241,333 335.2 69,872 393.1 69,207 388.4
Our chart shows the fastest-growing Rich’s $117,678 115.9 7,381 167.3 18,384 110.8
dairy department subcategories with at Allen $117,081 12.4 9,045 (8.3) 20,866 2.3
The Muffin Mam $111,958 8.6 17,520 1.4 44,378 4.7
least $200,000 in sales over the past 12 Taste It $98,879 (7.1) 7,159 (7.3) 10,738 (7.3)
weeks. Data is for the brands as originally
trademarked and may not include line BUTTER $378,132,700 21.1 124,522,400 (0.0) 117,804,400 (0.1)
extensions. Brands with less than $50,000 Private Label $199,432,100 27.2 72,074,770 1.8 70,059,460 1.8
Land O Lakes $96,747,170 15.9 26,620,040 (2.5) 24,674,430 (2.5)
in sales are not listed. Challenge Butter $15,534,670 21.4 4,608,447 11.3 4,119,121 14.7
Breakstone’s $8,337,461 19.9 3,033,462 2.5 1,779,499 6.6
Keller’s $6,020,041 19.0 2,117,858 6.4 2,074,813 7.3
F A C T O I D S Crystal Farms $5,604,706 (3.3) 1,779,870 (30.1) 1,718,979 (29.7)
Tillamook $5,286,439 1.9 1,524,266 (14.3) 1,524,266 (14.3)
38.9%
Hotel Bar $4,735,724 37.2 1,844,834 22.5 1,753,748 25.1
Cabot $4,618,357 (12.1) 1,357,377 (35.2) 1,356,166 (35.2)
Darigold $3,578,317 19.0 1,202,604 3.1 1,183,276 3.6
Dollar gain by private label refrigerated GRATED CHEESE $32,205,260 20.3 9,204,698 22.1 4,574,439 26.7
pourable salad dressing (to $1,498,390), Private Label $15,687,190 (0.3) 5,261,475 0.6 2,509,480 1.0
highest by a store brand dairy product Kraft $4,935,467 * 1,482,969 * 815,633 *
with at least $1 million in sales over the Locatelli $3,210,761 11.9 420,492 11.6 209,925 13.4
Di Giorno $1,543,407 (23.5) 358,594 (22.7) 134,473 (22.7)
past 12 weeks.
Belgioioso $709,677 7.5 192,321 14.2 69,793 14.7
-21.6%
Crystal Farms $526,829 (1.6) 167,728 (5.0) 83,864 (5.0)
Milano’s $516,415 63.9 128,427 63.8 107,681 82.8
Bella Famiglia $491,743 156.9 142,863 190.5 71,432 190.5
Dollar loss by the private label-domi- Rienzi $432,849 7.9 76,562 22.9 38,281 22.9
Il Villaggio $421,920 (5.8) 77,711 (5.8) 33,999 (5.8)
nated refrigerated pastry/Danish/cof-
fee cakes segment (to $1,766,574), worst JUICE AND DRINK SMOOTHIES $51,884,860 18.4 15,903,890 14.9 317,181,200 8.4
by a dairy subcategory with at least $1 Bolthouse Farms $14,054,630 21.5 3,969,025 16.5 105,058,500 22.4
million in sales over the past 12 weeks. Naked Superfood $12,017,940 40.0 3,268,477 36.9 66,635,380 40.2
Naked $8,924,938 23.8 2,649,507 23.9 45,268,290 24.0
6
Odwalla $6,296,576 7.9 1,925,743 10.4 36,064,660 11.7
Bolthouse Farms C Boost $2,193,285 7.9 652,876 10.3 15,938,390 6.2
Naked Protein Zone $2,118,305 45.4 595,652 43.4 9,703,393 45.6
Number of no-hitters thrown in 2010, Odwalla C Monster $1,422,477 1.6 480,221 9.1 7,507,043 2.1
most in a single season since 1991 when Naked Energy $891,758 (44.9) 290,999 (45.2) 4,423,189 (45.2)
Odwalla Superfood $807,173 (11.2) 282,712 (9.1) 4,297,220 (9.1)
Major League Baseball saw a record
Del Monte $470,454 719.1 348,431 1,536.7 4,250,857 1,536.7
seven (same as the year before).
PROCESSED/IMITATION CHEESE-ALL OTHER $10,570,020 17.9 3,665,107 25.6 1,805,841 19.0
7.3
Private Label $2,844,948 4.0 1,350,304 2.5 770,833 1.3
Kraft $2,483,715 867.3 951,859 918.0 356,368 1,000.3
Hoffman’s $2,159,004 (6.2) 423,409 (8.7) 212,037 (8.6)
Increase in percentage of refrigerated Cabot $501,789 13.2 217,430 21.7 108,715 21.7
bagel/bialy volume sold with merchan- Galaxy Nutritional Foods Veggie $311,641 (11.1) 66,758 (15.3) 33,379 (15.3)
dising support (from 36.3% a year ago to Swiss Knight $196,758 2.7 43,554 5.7 14,847 (3.9)
43.6% today), the biggest jump by a dairy Shullsburg $180,538 5.7 62,956 1.9 33,917 1.1
subcategory with at least $1 million in LARD $1,235,312 17.9 321,259 1.7 783,619 (1.3)
sales over the past 12 weeks. John Morrell Snow Cap $1,014,302 25.7 227,687 2.3 684,242 3.3
Lundy’s $97,767 9.7 52,956 3.9 52,956 3.9
-3.3%
Dollar loss by the dairy department’s
Silk
Blue Diamond Almond Breeze
Silk Light
Silk Pure Almond
$43,718,380 (12.6) 13,109,110 (11.9) 52,985,930 (11.7)
$18,065,140 204.0 5,814,871 213.2 23,399,850 215.1
$14,432,050 (8.7) 4,550,991 (8.6) 18,203,950 (8.1)
$13,723,430 1,139.2 4,527,617 1,191.5 18,110,470 1,191.5
largest national brand, Tropicana Pure Private Label $12,431,870 (4.1) 4,591,915 (4.7) 18,172,940 (4.4)
Premium OJ. Despite its stumble and Lifeway $7,964,235 26.7 2,346,320 30.1 4,547,566 27.2
a 2.5% loss by No. 2 private label, the 8th Continent $4,112,636 (15.1) 1,363,301 (14.6) 5,453,204 (14.6)
subcategory managed a 1.8% gain, Silk Plus $3,192,155 (21.8) 947,858 (19.3) 3,791,431 (19.3)
thanks in part to No. 3 brand Simply FLAVORED SPREADS $85,861,110 15.5 25,397,750 15.7 15,899,390 15.4
Orange (+20.1%). Sabra $42,937,340 32.5 10,937,630 28.9 6,938,605 31.0
Kraft $9,844,975 5.2 3,505,467 18.3 1,765,361 19.9
8,000,000
Tribe $9,566,675 4.6 3,137,703 7.3 1,908,974 8.2
Cedar’s $6,214,023 (1.6) 1,865,616 3.8 1,296,864 (2.2)
Private Label $5,910,723 15.5 2,637,347 12.1 1,916,186 9.5
Estimated number of sparrows killed Garden Fresh $2,392,465 (4.7) 823,671 (4.1) 512,827 (3.9)
by Chinese citizens in 1958 and ‘59 at Joseph’s $1,854,858 (11.6) 586,088 (10.4) 392,786 (12.3)
the behest of Chairman Mao Zedong, Marzetti $750,543 (33.4) 226,887 (31.5) 155,985 (31.5)
who believed they ate too much grain. APPETIZERS/SNACK ROLLS $98,164,590 14.3 15,126,050 10.3 8,798,388 9.1
Ironically, their near-eradication trig- Southern Tsunami $41,777,830 0.1 6,313,161 (5.3) 3,839,135 (6.6)
gered a dramatic increase in the locust AFC $9,957,734 497.8 1,314,738 430.6 830,834 572.2
population, which led to widespread Hissho Sushi $6,581,516 50.0 1,071,024 46.5 465,601 46.7
Private Label $5,847,682 (2.8) 1,033,150 9.2 761,110 (1.5)
destruction of crops and a famine that
Kikka $5,068,051 8.8 832,578 8.4 324,809 8.7
killed nearly 30 million. Japanese Food Express $4,461,253 56.9 694,380 51.7 354,277 64.8
40.3%
Fujisan $3,665,240 (3.8) 567,644 (3.4) 410,801 (5.9)
Ace $2,483,118 (12.7) 395,184 (14.0) 189,219 (14.9)
Okami $2,478,343 11.6 392,107 2.9 292,818 27.5
Sushi Avenue $1,993,280 28.0 304,074 30.1 163,167 29.3
Dollar gain by cream cheese-all other
forms (to $175,984), best by a subcat- FRESH SOUP $37,267,660 13.9 9,378,304 16.4 12,074,340 17.4
egory not quite big enough to qualify Private Label $34,136,880 13.1 8,565,263 15.6 11,220,930 16.5
for our list. Top seller Kaukauna Harry’s $615,129 174.1 157,095 148.8 162,859 174.4
Legal Sea Food $380,362 35.1 57,565 38.7 71,956 38.7
Connoisseur (+276.4%) gets most of
Bob Evans $338,946 (0.0) 115,089 (6.2) 86,317 (6.2)
the credit. Soluppa $226,178 (11.2) 28,341 (12.8) 56,683 9.8
-16.9%
Hanover $190,730 64.3 116,557 69.6 136,954 69.6
Evolution $143,348 (9.2) 20,950 (12.3) 28,806 (12.3)
NATURAL CHEESE ALL OTHER FORMS $19,860,540 13.8 7,627,012 15.6 4,073,739 15.2
Dollar loss by refrigerated side dishes Private Label $11,195,820 25.1 5,922,826 21.5 3,042,241 20.4
(to $19,643,230), thanks mostly to the Kraft Snackables $2,235,877 (52.0) 507,236 (52.7) 285,320 (52.7)
departure of Shedd’s Country Crock Emmi $1,601,348 50.9 142,337 54.6 119,406 57.5
combined with private label’s poor Kraft $1,521,724 * 357,073 * 200,853 *
Kraft Cracker Barrel $546,604 * 167,081 * 104,426 *
performance. However, the potato
Gerber Swiss Knight $509,022 (12.4) 48,428 (16.3) 42,374 (16.3)
side dish subcategory, which includes Anoco $384,910 (16.2) 30,263 (16.7) 26,480 (16.7)
many of the same brands, saw its sales Swissrose $339,534 (17.4) 39,977 (18.6) 34,980 (18.6)
jump 8.5% to $70,804,670.
BREAD $1,433,803 11.8 443,411 9.4 355,583 11.0
10%
Mrs. Olson’s $480,741 4.9 126,876 (4.8) 93,143 (2.4)
Freddy’s $171,786 16.2 40,595 12.4 33,582 14.0
Countryside $137,028 16.5 56,806 18.9 21,408 18.5
Percentage of U.S. taxpayers who Laura’s $117,035 14.4 38,773 18.8 24,233 18.8
wait until April 15 to file their federal Nobrand $112,777 41.8 15,919 33.9 15,919 33.9
Mestemacher $107,231 15.1 31,470 21.8 34,617 21.8
income tax return. (Not surpris-
Baker’s Pride $91,838 10.5 65,294 12.3 81,617 12.3
ingly, most of them owe money.) This
year, however, they’ll have an extra MEAT SPREAD/SALAD $15,515,410 10.9 4,140,295 9.0 2,660,232 9.0
three days, as the filing deadline was Private Label $8,055,477 21.7 2,270,791 20.9 1,434,456 24.1
Reser’s Fine Foods Inc $1,113,422 4.6 366,964 0.8 261,602 (0.6)
moved to April 18 to accommodate
Pates & Quiches $890,839 19.5 104,596 28.0 46,536 24.1
Emancipation Day in Washington, D.C. B & H Foods $775,523 4.9 236,621 (4.5) 152,903 (5.0)
1.8%
Charterrie Tour Eiffel $704,109 5.6 123,932 5.5 41,080 (0.5)
Star Food $625,784 (2.5) 209,641 (10.5) 151,944 (5.9)
Willow Tree $321,054 (5.6) 50,898 (10.9) 37,983 (11.2)
Ballard’s Farm $294,783 (2.5) 94,805 (0.1) 71,103 (0.1)
Dollar sales gain by the dairy depart-
ment’s largest subcategory, refriger- PROCESSED/IMITATION CHEESE-SHREDDED $8,870,253 10.5 4,210,495 5.2 2,318,607 7.0
ated skim/lowfat milk — despite a Private Label $3,417,079 8.6 2,046,728 0.1 1,100,338 1.3
2.2% decrease in unit sales linked to Kraft Velveeta $1,869,635 9.9 746,506 7.1 373,253 7.1
Galaxy Nutritional Foods Veggie $1,430,751 3.1 424,352 5.7 182,620 5.3
rising retail prices. But No. 3 brand
Borden Ched-O-Mate $587,267 (2.4) 486,132 (0.1) 200,788 (0.5)
Horizon Organic posted double-digit Kraft $276,930 1,199.2 120,158 1,275.7 72,095 1,275.7
dollar and unit gains. American Accent $212,793 72.4 41,375 50.5 73,259 73.3
Whitehall Specialties $210,796 5.2 42,811 8.7 85,621 8.7
*Number is either not available, or very high, indicative of a recent launch working off a small base.
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NEW PRODUCTS
M
offers world-class merchandis- Carol Christison
ore than 8,000 attendees ing ideas and demonstrations with 9:20-10:20 a.m., Remarks by Dr. Condoleezza Rice
will be visiting the actionable ideas. For more info, call 10:20-10:40 a.m., Coffee Break
International Dairy-Deli- 608-310-5000 or visit www.iddba.org. 10:40-11:40 a.m., 2020: A Vision for Tomorrow,
Bakery Association’s (IDDBA) Dr. Lowell Catlett
47th annual seminar and expo, PROGRAM 11:40 a.m. -12:30 p.m., Spend Shift: Brands and the
Dairy-Deli-Bake 2011, June 5-7 in SUNDAY, JUNE 5 Post-Crisis Consumer, John Gerzema, author of Brand
Anaheim, Calif., at the Anaheim Bubble and Spend Shift
7:30-7:50 a.m., Non-denominational Worship Service
Convention Center. 12:30-5:30 p.m., Expo and the Show & Sell Center
8:00-8:30 a.m., Innovations: Marketing Tips,
The full-service “Show of Shows” Merchandising Pavilion Open
Technology Tricks, and Great Ideas (new research),
6:00-9:30 p.m., Wisconsin Milk Marketing Board
seminar and expo for qualified Jack Li
Sponsored Party
retail buyers and merchandisers fea- 8:30-9:15 a.m., The Supermarket Department
tures top speakers and 1,500 booths Manager: What Makes Them Tick; What Turns Them
TUESDAY, JUNE 7
with dairy, deli, bakery, cheese, on?, Harold Lloyd
foodservice products, packaging 9:15-10:10 a.m., Making an Impact, Captain Chesley 8:00-9:00 a.m., Great Leader or Great Manager: The
“Sully” Sullenberger One Thing You Need to Know, Marcus Buckingham
and services.
10:10-10:30 a.m., Coffee Break 9:00-10:00 a.m., Driving Performance Excellence: In
Speakers include: Dr. Condoleez- 10:30-11:30 a.m., From Daytime to Primetime – Sports, Business, & Life, Joe Montana
za Rice, Guy Fieri, Joe Montana, A Food Passion, Guy Fieri 10:00 a.m.-2:00 p.m., expo and the Show & Sell
Captain Chesley “Sully” Sullen- 11:30 a.m.-12:30 p.m., Weighty Issues: The World of Center Merchandising Pavilion Open
berger, Dr. Lowell B. Catlett, Harold Sinbad, Sinbad 6:00-10:00 p.m., Reception and Awards Banquet
Lloyd, Marcus Buckingham, Sinbad, 12:30-5:30 p.m., Expo and the Show & Sell Center (tickets required)
John Gerzema, Carol Christison, Merchandising Pavilion Open
T he International Dairy-Deli- —Communication channels con- from 2,000 respondents. The 2010 re-
Bakery Association (IDDBA), sumers use for meal planning, shop- sponses were compared with studies
Madison, Wis., has released ping, etc. done five, ten, and fifteen years ago.
a new deli benchmark study, —Saving money preparing food at Purchase behavior data are broken
Consumers in the Deli: Attitudes, home, entertaining at home. out by eating occasion and purchase
Buying Behavior, & Purchase Drivers. —Dietary concerns and how they and consumption locations. The
An update of the last study pub- influence food purchases. report analyzes consumption and
lished in 2004, it determines how —Fad or trend: retailers speak out purchasing data for 39 products and
much is actually a change in eating on 12 food issues. includes 143 tables.
behavior or taste and how much —Primary reasons for shopping Copies are $395 each for IDDBA
is influenced by economic factors. in-store service and self- members and $795 each for non-
Additionally, to validate how the service delis. members, plus shipping
economy continues to affect consum- —Importance of 18 and handling. For
er attitudes, some questions from last deli services and char- info on this and
year’s New Value Shopper study were acteristics. other studies, or to
asked again. —Buying more or order, call the IDDBA
The research identifies three less from supermar- Education Department
distinct shopper clusters based on at- ket delis than two at 608-310-5000 or visit
titudes and buying behavior. “Qual- years ago. www.iddba.org.
ity-Driven” customers, those who —Where prepared
are more “Convenience-Driven”, and food is bought that
is eaten at home The new report analyzes
“Health-Conscious.” Each cluster vis- consumption and purchas-
its the deli for different reasons and but not prepared ing data for 39 products and
the study helps identify their unique at home. includes 143 tables.
FROZEN
Happy Baby $382,596 199.7 182,863 361.8 38,677 341.3
Happy Baby Happy Melts $155,586 917.0 50,028 937.7 3,127 937.7
Happy Tot $82,572 * 68,242 * 18,002 *
COOKIE DOUGH $1,211,165 40.6 261,887 54.2 326,221 39.3
BY PETER PENGUIN Otis Spunkmeyer $374,972 429.9 98,076 471.4 100,054 419.9
Complete Recipe $321,251 15.3 77,586 20.6 97,559 20.4
Dollar sales of frozen foods in U.S. Gregory’s $188,280 28.7 23,095 27.3 57,611 25.6
Private Label $81,668 (12.4) 10,318 (21.8) 12,855 (24.6)
supermarkets topped $7.53 bil- Sweet Martha’s $80,798 (37.8) 16,648 (41.4) 24,972 (41.4)
lion during the 12 weeks ended French Meadow Bakery $56,642 659.2 8,851 743.4 7,468 743.4
Feb. 20 2011, a 0.1% increase WAFFLES $130,798,900 27.0 53,547,360 22.9 45,334,740 26.3
over the same period a year For brand listings, see our story on breakfast foods in this issue.
ago, according to Chicago- SOUP $7,743,312 18.7 2,267,772 29.0 2,284,306 18.4
based market research firm SymphonyIRI Tabatchnick $1,883,055 3.6 912,179 10.5 829,510 7.8
Group. However, units slipped 1.3% to 2.51 Stouffer’s Corner Bistro $1,147,653 * 360,812 * 225,508 *
billion, and volume was off almost 2.0% Phillips $804,722 (2.3) 169,352 3.8 147,284 2.0
Private Label $783,638 (7.1) 186,209 (2.1) 310,694 9.1
to 3.30 billion. Percentage of volume Boston Chowda $506,771 (16.7) 84,243 (6.7) 105,304 (6.7)
sold with merchandising support fell 0.3 Soup Supreme $405,613 18.3 27,860 14.3 89,664 16.7
points to 44.9%. The Original Soupman $301,040 28.7 79,144 49.5 49,541 (0.2)
Our chart shows the fastest-growing Kettle Cuisine $273,444 14.3 79,996 14.8 49,997 14.8
frozen department subcategories with at Goya $208,335 1.3 42,398 (3.3) 74,196 (3.3)
Reames $202,464 16.4 38,262 20.1 47,828 20.1
least $200,000 in sales during the most
recent 12-week period. Data is for the PIZZA CRUSTS/DOUGH $2,679,410 16.8 1,045,083 7.6 1,339,050 2.8
Kinnikinnick Foods $327,828 38.1 41,202 44.8 54,050 45.5
brands as originally trademarked and may Private Label $283,860 (3.2) 135,869 (6.3) 166,508 (6.1)
not include line extensions. Brands with House of Pasta $248,516 (7.0) 94,802 (7.3) 189,603 (7.3)
sales under $50,000 are not listed. Udi’s $242,248 376.3 46,336 353.9 23,168 353.9
Tiseo $171,559 7.5 100,647 3.6 100,647 3.6
Calise & Sons Bakery $164,196 1.3 109,743 1.1 109,743 1.1
Stefano’s $145,618 33.2 83,841 33.3 83,841 33.3
Rhodes $124,662 (5.9) 36,101 (6.2) 108,304 (6.2)
Cassone’s $115,173 8.2 60,215 1.0 60,215 1.0
F A C T O I D S Portesi $83,040 21.7 19,904 24.1 27,368 24.1
BREAKFAST HANDHELD $95,542,500 14.6 23,533,060 13.2 21,810,040 15.6
-5.0%
Jimmy Dean $43,660,620 18.5 7,813,897 20.0 9,808,492 21.3
Jimmy Dean D Lights $9,685,700 12.3 1,664,805 17.7 2,047,589 18.8
W. Watchers Smart Ones Mrning Express $5,118,721 (7.6) 1,868,664 (6.0) 934,332 (6.0)
Dollar loss by frozen drink/cocktail Odom’s Tennessee Pride $5,919,172 26.9 1,050,928 27.9 1,383,467 20.2
drink concentrate, the first decrease Hot Pockets $4,088,238 (18.8) 1,962,600 (18.5) 1,062,197 (19.3)
since subcategory leader Yoplait Bob Evans $3,821,075 48.1 841,987 43.4 820,878 44.3
Tennessee Pride $3,763,298 43.2 1,140,629 22.1 868,397 28.1
Smoothie debuted more than a year Lean Pockets $3,489,357 (11.9) 1,634,870 (11.8) 919,615 (11.9)
ago. Its sales edged up another 1.6% Private Label $2,997,942 13.6 800,892 10.0 757,082 8.7
over the past 12 weeks, but seven of Aunt Jemima $1,963,030 (36.1) 553,037 (37.3) 399,392 (37.7)
the eight remaining brands in
PROCESSED ALL OTHER POULTRY/
distribution more than a year saw POULTRY SUBSTITUTES $890,611 12.9 130,718 14.4 134,067 7.6
sales decline. Aidells $442,760 24.3 77,490 24.7 58,117 24.7
19.9
Maple Leaf Farms $344,689 11.0 37,728 9.3 27,810 11.6
Guilotas $72,974 17.4 12,508 15.8 43,777 15.8
TURKEY/TURKEY SUBSTITUTE $150,174,900 10.2 35,357,740 6.7 49,707,900 7.6
Percentage points separating the Jennie-O Turkey Store $41,526,120 5.4 9,120,457 2.2 11,675,890 2.4
increase in frozen pie unit sales Shady Brook Farms $25,300,780 (1.7) 5,444,899 (6.3) 8,485,666 (4.3)
(+20.4%) and dollar sales (+0.5%). Private Label $24,142,170 46.8 6,255,337 35.0 8,997,705 40.2
Portion-control and single-serve Honeysuckle White $17,741,440 8.2 4,753,878 7.7 6,573,705 4.7
Jennie-O $10,402,130 14.8 2,073,628 8.6 4,248,242 12.9
sizes contributed to the large gap. Foster Farms $9,911,849 14.9 2,191,835 14.3 2,756,127 14.2
9.17
Butterball $7,199,551 (1.4) 1,287,648 2.5 2,280,792 (1.2)
Perdue $4,056,174 1.2 1,399,954 1.2 1,467,197 0.2
Plainville Farms $2,487,067 32.2 572,300 33.5 571,980 33.5
Pounds of blueberry pie consumed Zacky Farms $1,953,766 (29.5) 576,441 (37.5) 791,207 (33.0)
in 8 minutes — hands-free, no less PREPARED VEGETABLES (SAUCE/CRUMBS) $72,327,570 9.5 38,746,560 10.4 27,621,420 10.9
— by world record-holder Patrick Green Giant $25,527,670 6.2 15,677,820 7.9 11,013,520 7.4
Bertoletti at the World Pie Eating Green Giant Valley Fresh Steamers $17,828,390 24.5 8,353,082 24.5 6,145,969 22.2
Championships July 28, 2007. Birds Eye Steamfresh $10,999,130 32.8 5,329,830 38.9 3,922,964 36.3
Green Giant Just For One $4,097,583 (4.8) 1,203,321 (3.0) 1,262,241 (2.9)
Bertoletti also holds world records Green Giant Simply Steam $3,184,898 6.0 2,298,521 8.5 1,284,456 8.9
for shoo-fly pie, key lime pie and Green Giant Healthy Weight $1,557,378 2.0 1,071,846 4.2 468,932 4.2
strawberry rhubarb pie eating. Birds Eye Steam & Serve $1,441,974 (42.2) 592,513 (40.9) 370,321 (40.9)
Private Label $1,426,840 (9.7) 909,334 (23.7) 624,614 (20.9)
*Number is either not available, or very high, indicative of a recent launch working off a small base.
-27.5%
Reames $4,338,146 13.8 1,621,921 10.1 1,468,467 12.1
Private Label $1,123,094 35.9 344,227 5.4 585,229 83.4
Grandma’s $774,776 (7.8) 235,385 (11.0) 200,240 (12.4)
Dollar loss by frozen bagels (to Boston Market $640,221 (17.2) 253,097 (21.2) 189,823 (21.2)
Celentano $314,212 (7.9) 134,948 (6.5) 134,948 (6.5)
$10,473,330), once again the frozen Seviroli $245,483 (1.7) 125,366 (4.7) 100,446 (22.0)
department’s biggest loser. One Andrea $228,893 (4.2) 106,146 2.4 122,405 7.2
bright spot: Bagels Forever, the sub- Mama Rosie’s $211,300 (0.3) 84,237 (0.1) 124,128 (3.8)
category’s sixth best-seller, whose
POT PIES $74,194,780 7.2 49,899,830 1.1 31,196,580 4.6
sales jumped 8.2% to $507,192. Marie Callender’s $37,085,580 13.7 13,638,450 16.6 13,416,710 16.3
413.7%
Banquet $20,716,210 9.5 28,393,430 7.8 12,422,130 7.8
Stouffer’s $5,127,731 3.4 1,893,059 1.7 1,491,384 2.1
Swanson $2,163,839 (30.6) 2,269,859 (34.2) 993,063 (34.2)
Dollar gain by private label frozen Willow Tree $1,503,201 3.2 278,833 (0.4) 414,747 (0.9)
Amy’s $1,389,737 8.4 406,561 7.3 192,317 7.3
other breakfast food (to $67,343), the Private Label $1,358,239 (46.1) 1,761,609 (57.9) 838,107 (55.8)
best performance by a store brand Claim Jumper $1,189,549 (7.7) 369,658 (10.0) 413,696 (10.0)
in the frozen food department.
Despite its success, subcategory dol- SAUSAGE $63,442,930 7.0 32,707,760 3.7 21,469,960 3.4
Banquet Brown ‘N Serve $26,253,200 7.7 18,574,010 9.2 8,476,378 9.4
lar sales fell 5.5%, thanks mostly to Hormel Little Sizzler $4,601,372 5.4 3,183,962 1.5 2,335,068 1.4
poor showings by Pillsbury’s Toaster Jones Golden Brown $4,374,926 5.2 2,112,530 1.7 905,240 (1.2)
Strudel and Toaster Scrambles. Private Label $4,238,959 (0.1) 1,691,680 (19.7) 1,666,854 (12.1)
23%
Jimmy Dean $3,387,333 1.9 924,861 (10.2) 991,241 (7.6)
Purnell Old Folks $3,344,920 34.9 470,980 32.6 1,089,085 22.5
Jones $2,595,961 (8.1) 815,245 (8.9) 602,977 (10.5)
Tennessee Pride $2,327,797 5.6 290,304 (7.4) 685,178 (7.8)
Number of photocopier breakdowns
reportedly caused by people attempt- MULTI SERVE DINNERS/ENTREES $324,121,000 6.4 58,234,940 7.1 115,588,400 4.9
ing to photocopy their backsides. Stouffer’s $107,930,900 2.8 16,045,190 5.2 46,631,690 4.8
Bertolli $28,435,970 (5.8) 4,099,504 (4.2) 6,166,405 (4.0)
-2.6%
Birds Eye Voila! $27,716,430 15.2 6,988,881 15.4 9,696,506 15.8
P.F. Chang’s Home Menu $21,181,420 * 2,583,558 * 3,552,392 *
Private Label $16,680,060 (14.0) 2,416,687 (12.4) 5,657,118 (15.1)
Dollar loss by the frozen depart- Marie Callender’s $13,023,410 131.7 3,157,740 90.1 4,937,744 83.3
ment’s largest subcategory, single- Wanchai Ferry $9,597,844 53.4 1,406,341 64.8 2,109,512 64.8
serve frozen dinners/entrees (to SPINACH $32,537,980 6.1 24,472,720 2.2 17,726,850 2.7
$767,486,500), all but canceling out Private Label $20,479,350 6.5 16,595,660 2.2 12,238,490 2.9
a 6.4% gain in the smaller multi- Birds Eye $4,215,944 (2.6) 3,171,768 (3.9) 2,011,464 (4.2)
serve segment. Green Giant Weight Watchers $2,346,148 * 1,561,420 * 878,299 *
Seabrook Farms $805,571 4.3 432,196 12.9 290,447 9.5
0
Pictsweet $741,030 (34.4) 398,070 (44.9) 476,533 (32.1)
Birds Eye C & W $668,190 2.7 306,215 1.8 274,450 4.1
Cascadian Farm $493,466 1.3 161,409 6.1 100,881 6.1
Number of frozen juice subcategories YOGURT/TOFU $37,992,380 4.2 10,215,620 2.5 26,873,800 4.3
to register dollar sales gains over the Private Label $8,320,049 14.8 2,387,858 6.4 9,093,115 5.1
past 12 weeks. Of the nine segments Dreyer’s/Edy’s Slowchurned $7,297,359 (10.3) 1,956,387 (9.1) 5,869,159 (9.1)
tracked by SymphonyIRI Group, only Ben & Jerry’s Lighten Up $3,309,536 (3.1) 888,512 (6.2) 888,512 (6.2)
other vegetable/fruit juice (-0.2%) Häagen-Dazs $3,260,449 (1.7) 896,732 (4.1) 784,640 (4.1)
came close to the plus side. Turkey Hill $1,851,988 1,417.9 618,020 1,468.0 1,854,061 1,380.6
Purely Decadent $1,757,461 28.1 349,744 22.8 349,744 22.8
$125
Kemps $1,670,307 12.0 474,993 10.8 1,424,979 10.8
Organic So Delicious $1,568,846 (11.5) 299,027 (14.0) 526,631 (12.9)
CHILI $3,310,733 4.1 1,073,265 (0.5) 1,028,320 1.6
Weekly salary of Terry, the dog who Skyline Chili $913,917 (3.6) 308,286 (5.9) 273,419 (6.1)
played Toto in . Not Gold Star Chili $560,537 0.3 229,046 (3.3) 150,323 (3.3)
bad considering the little people Dolores $478,010 11.6 118,342 10.3 148,139 10.1
who took on roles as Munchkins only Bueno $233,858 5.8 88,832 (0.7) 93,984 2.4
took home $50 a week. Bueno Autumn Roast $178,771 6.5 54,922 4.9 44,624 4.9
Baca’s $132,129 2.5 59,483 (5.7) 56,609 (3.1)
23.5
Tabatchnick $124,096 (8.5) 57,282 (9.0) 53,702 (9.0)
Manning’s $116,566 13.8 27,575 8.1 27,575 8.1
ALL OTHER POULTRY/
Increase in percentage of frozen POULTRY SUBSTITUTES $12,489,260 4.0 2,690,681 (2.5) 5,355,534 (2.4))
waffle volume sold with merchandis- Tyson $8,696,292 5.4 2,084,128 (0.9) 3,811,837 (3.8)
ing support (from 16.9% a year ago to Codornices Supremas $896,560 21.4 50,710 5.1 556,947 21.0
40.4% today), highest in the frozen Manchester Farms $567,435 (1.9) 55,446 (6.3) 64,428 (6.2)
food department. With a pair of Perdue Oven Ready $503,108 0.6 54,701 (9.8) 218,806 (9.8)
new products to promote and a 75th Patti Jean $434,269 (6.3) 185,032 (14.9) 231,290 (14.9)
birthday to celebrate, Kellogg’s Eggo Maple Leaf Farms $270,452 (0.1) 28,276 (7.6) 86,989 (2.6)
Perdue $245,033 46.7 80,392 51.9 111,015 51.4
is the primary driver. Perdue Chef’s Choice $193,470 20.9 82,498 51.9 103,122 51.9
*Number is either not available, or very high, indicative of a recent launch working off a small base.
BETTY&
sell. You take all my best items and Never any feedback from you!
copy for PL anyway. Sammy: You remind me all time that
you own shelves, so it up to you to
SAMMY
Betty: Why you do so many Power make sure work gets done, no matter
Pointless presentations? You think who does it. You expect me do it all!
‘TWEET’
sexy? You shuffle all data to make self
look good. Don’t believe you. Betty: You back out of most respon-
Sammy: God forbid you ever do own sibility for this years ago, and expect
research, Betty. You treat store like me do it all, and you not help half as
Back on April 1, my com- parking lot where you just collect much anymore. What up with that?
puter was mysteriously fees. All heavy lifting done by us. Sammy: Be nice to tell us when you
taken over by a couple plan category review or reset, so we
‘Tweeters,’ whom I Betty: LOL!! That why you make can present new items to you. Also
quickly recognized as Betty big bucks. I see your sales/profits up be nice if you stuck to schedule.
Buyer and Sammy Seller… twice as fast as ours, so why I cry for Betty: Things change quick some-
BY WARREN THAYER you? Nice car you drive, too. times. Can’t always wait while you
Sammy: Why you not put back tie shoelaces. You often one wants
Betty: To follow consumer my fast movers, ones you cut in exception to schedule, anyway.
trends, must I do all new items SKU irrationalization program? We
by self in private label? Why you both lose money on Stupid Killing Betty: Truth or illusion, Sammy; you
do no innovation, Sammy? Tired of of Units. don’t know the difference.
your me-toos! Sammy: No, but we must carry on as
Sammy: Tired of yr slotting and BS Betty: Get clue, Sammy. Fewer SKUs though we did.
fees, Betty! You still make all money mean more profit. Maybe you think Betty: Sammy and Betty. Sad,
when buy, not bad if retailers make profit? Your sad, sad.
“fast movers” do case every six years.
Sammy: You make us pay high for (with apologies
your demo people, but some of them to Edward
dead for years. No life. And you never Albee.)
order enuf product to support demo.
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milk. We’re always organic. Stirring, indeed. Visit www.organicvalley.coop
PHOTOS COURTESY OF
WHOLE FOODS MARKET
Why did we pick Whole Foods as our Retailer of the Year? Well, there are
more reasons than you can shake a stick at. Here’s what a cross section of
competitors, vendors and consultants have to say.
BY WARREN THAYER
Revolutionizing the phrase restaurant quality frozen ethnic cuisine, Tandoor Chef
is changing the face of vegetarian and vegan meal options. Not only does Indian
cuisine top the charts when it comes to increasing shopper demand, but the
segment is also growing thanks to its healthy attributes*... which means new
sales for you. Find out what unique Indian cuisine can do for your freezer door.
WHY THEY SHOP In our first example below, 47.9% of
shoppers say that product quality is
Publix
Wegmans
12.5%
29.1%
WHOLE FOODS a reason they chose their store. Only
35.3% of Walmart shoppers said they
Whole Foods
WF gap vs. avg
79.8%
72.1
Here are 10 key reasons why
Whole Foods shoppers choose chose Walmart because of the quality These numbers show the enormous
to shop there. of the products they carry. And so on. importance Whole Foods shoppers
At the bottom, you’ll see “WF gap vs. put on the stores’ offerings of organic
BY WARREN THAYER avg.,” which depicts the gap between and whole foods. Nearly 80% of them
Q
the Whole Foods’ shoppers’ response, say that the available selection of
uality, selection and the avail-
and the national average. See? It’s not these items is an important factor
ability of whole and organic
rocket science. in their decision to shop at Whole
foods are three key reasons
why Whole Foods shoppers shop Foods. By contrast, fewer than 8% of
1. PRODUCT QUALITY all shoppers surveyed see the pres-
where they do. And while price is a
Average 47.9% ence of organic and whole foods as an
primary driver for 74.5% of shoppers
Walmart 35.3% important factor in choosing a store.
in their store selection, only 13.3% of
Kroger 59.5% The 72.1 percentage point gap
Whole Foods shoppers see it as one of
Publix 74.5% between Whole Foods and the aver-
the top reasons to shop Whole Foods.
Wegmans 85.4% age shows just how different Whole
This story will take a look at the
Whole Foods 87.9% Foods shoppers are from the norm in
reasons why shoppers pick their
WF gap vs. avg 40.0 this regard. And despite all the hoopla
grocery store of choice, focusing at-
tention on not just Whole Foods, but Nearly 88% of Whole Foods shoppers about Walmart’s entry into the organic
Walmart, Kroger, Publix, Wegmans say product quality plays an important market, only 5.2% of its shoppers see
and national averages for all shop- part in their store selection. That’s 40 the presence of these foods as impor-
pers. It’ll tell you what’s important to percentage points above the average for tant factors in deciding where to shop.
whom, and why shoppers may migrate all shoppers, and it’s higher than any of
to different stores from time to time, the other retailers listed here. 4. FRESH PRODUCE
or stay very loyal. High quality is expensive, of course, Average 32.0%
The data you’ll see here comes from and shoppers at Whole Foods are Walmart 25.2%
last August’s Consumer Intentions clearly willing to pay for it. As we’ll Kroger 36.6%
and Actions Survey (CIA) put out by see a little later, price is not one of the Publi 47.8%
BIGresearch (www.bigresearch.com), reasons Whole Foods shoppers single Wegmans 73.5%
Worthington, Ohio. The national aver- out as important in store selection. Whole Foods 51.9%
ages are based on a BIGresearch survey WF gap vs. avg 19.9
of 8,201 adults — that sample size 2. SELECTION
Average 57.3% Whole Foods shoppers are significantly
provides a margin of error of +/- 1.1%.
Walmart 60.0% more likely than average to find fresh
Here’s a breakout of respondents who
Kroger 70.3% produce an important factor in store
chose different stores as their first-
Publix 72.0% selection. But Wegmans shoppers saw
choice grocery retailer: Walmart, 1,524
Wegmans 89.5% fresh produce as important more often
(margin of error +/-2.5%); Kroger, 586
Whole Foods 83.4% than any of the stores above. That’s
(margin of error +/- 4.3%); Publix, 340
WF gap vs. avg 26.1 possibly because Wegmans’ produce
(margin of error +5.5%); Wegmans, 59;
departments are larger (based on a
Whole Foods, 34. Good selection is another reason larger overall store footprint) and seem
Yes, those last two numbers are Whole Foods shoppers choose to shop to have more of a “wow!” factor when
too small to consider truly defini- there. On average, 57.3% of shoppers you enter. When I think of Wegmans, I
tive. Consider them directional and say selection is a key reason in their do think of their sprawling and beauti-
nothing more. I wouldn’t normally use store choice, but 83.4% of Whole ful produce departments, so perhaps
numbers that low, but the responses fit Foods shoppers see it as that impor- part of this is just association.
uncannily with the anecdotal reports tant. In the stores listed above, only
I’ve picked up within the market over Wegmans — another industry icon —
the past year or two, so I decided to tops Whole Foods. 5. UNIQUE PRODUCTS
include them, with the caveat here. Selection is a bit different from Average 6.0%
As the data is presented, you’ll “unique products,” at least to my mind. Walmart 4.8%
first see the national average of the It implies, for example, the ability to Kroger 6.0%
8,201 adults who cited the selected choose from more than a few brands, Publix 5.5%
attributes as among the reasons they flavors and sizes of ice cream — but not Wegmans 29.6%
chose their grocery store. Then you’ll necessarily that special unique item Whole Foods 39.0%
see what percentage of shoppers at, that no other store has. WF gap vs. avg 33.0
say, Walmart, said about attributes In this age of SKU rationalization,
that are important to them. The ques- 3. AVAILABILITY OF Whole Foods isn’t afraid to go out on
tion asked of consumers is: “What are ORGANIC/WHOLE FOODS a limb and offer unique products —
the reasons why you buy your grocer- Average 7.7% things you just can’t find anywhere
ies there?” From a list, they are asked Walmart 5.2% else. It helps create a treasure-hunt
to check all that apply. Kroger 7.8% atmosphere, and makes shopping fun.
Visit us at joseole.com
Follow us on &
SPOTLIGHT: SNACKS & APPIES
SNACKS
go-based market research
firm SymphonyIRI Group.
& APPIES
Shoppers are being more
picky as they look for options
with both great taste and
BACK
spokesperson for Heinz North
America (www.heinz.com),
Pittsburgh.
To meet this demand, Heinz
It’s been a soft year for the recently launched a variety of
category, but the most recent new frozen items, including
data shows an uptick. Bagel Bites with whole grain,
Ore-Ida sweet potato fries, and
BY MICHAEL FRIEDMAN new bowl products that are like
A
a burrito, but unwrapped without
s the economy goes, so goes the tortilla, under its Delimex brand. El Monterey appetizers require only one
the frozen appetizers/snack The new bowl items contain sea- minute in the microwave.
rolls category. While super- soned rice, strips of beef with creamy
market sales of the category were facturers that offer Hispanic and
chipotle sauce or white meat chicken
down in units and dollars for the Asian varieties. “It appears that both
with cheese sauce.
52- and 12-week periods ended Feb. of these food choices are becoming
20, there may be light at the end of more mainstream American. In ad-
the tunnel. Windsor Foods is dition, with the low price per ounce
for frozen burritos, coupled with
It’s important to look at the now more of a fac- current economic conditions, many
most recent four-week data, which
show category sales gains in units tor in the category families are purchasing them as a
‘center of the plate’ dinner or lunch
and dollars, points out Bryce Ruiz, with its acquisition of item, complementing rice and beans
president and CEO, Ruiz Foods, Inc.
(www.ruizfoods.com), Dinuba, Calif. Discovery Foods. as sides,” he says.
“Perhaps the economy has a brighter Houston-based Windsor Foods
horizon,” he says. (www.windsorfoods.com) is now
Timely displays and themed
more of a factor in the category
events can drive increases in sales
FOOD PRIORITIES with the completion in February of
and profits for retailers, according
Part of the reason for the softness its acquisition of Discovery Foods,
to Ruiz. “Similar to salty snacks,
in the category is that basic foods Hayward, Calif., manufacturer of
frozen snack and appetizer sales
have to come ahead of appetizers and frozen Asian snacks, appetizers and
are impulse buys. Displaying this
snacks in this economy, says Steph- category during a higher inci-
anie Hernan, owner, Yankee Trader dence of party/sporting event
Seafood (www.yankeetraderseafood. times (such as March Madness,
com), Pembroke, Mass. Super Bowl, Daytona 500) will
Frank Benso, vp, Great American help increase category sales,”
Appetizers (www.appetizer.com), he says.
Nampa, Idaho, also believes that
consumers are putting their atten- MORE MAINSTREAM
tion on the core staples. He says that Most manufacturers say that
the 12-week period ending Feb. 20 retail space for the category
includes the year-end holiday season, is about the same today as it
a time when budgets were tightest. was three years ago. What has
Category dollar sales in super- changed, according to Ruiz, is
markets were down 2.2% to $271.5 that more space is being dedi-
million and units were off 2.6% to cated to “international” manu-
75.3 million in the 12 weeks ended
Feb. 20 compared with the same Frozen Specialties recently introduced
year-ago period, according to Chica- three varieties of Mr. P’s Pizza Bites.
ALL E xt r ao r d i n a ry Ta s t e
ING
PAC K AG
And... some extraordinary additions to our
line including: 9oz. Buffalo-style Chicken
Spring Roll Bites, 9oz. Chicken Spring Roll Bites,
24oz. Beef Mongolian with Steamed Rice, and
26oz. Sweet Chili Chicken Tempura Nuggets.
Before
cheese and nitrate-free bacon under sizes to attract different buyers and
its DeeAmoré label and cheezy focused Hispanic marketing efforts.
taters, a 40-ounce club item that Consumers are looking for con-
has shredded potato on the outside venient, great-tasting snacks with
and cheese and bacon on the inside, minimal preparation and clean-up
under its Mr. Dee’s label. A jalapeno time, according to McQuinn. “They
sliced in half and stuffed with cream also want to see variety in flavors
cheese and wrapped in bacon in a and sizes. When kids come home
24- or 30-count bag is in the plan- from school they want a tasty, quick
ning stage. snack that they can prepare them-
Several manufacturers say that selves,” he says. n
they have seen a big increase in
the demand for private label ap-
Potato Skins from Mr. Dee’s are loaded petizers and snacks. Retailers are
with Monterey Jack, cheddar cheese wanting core items with a twist
and fully cooked, uncured applewood under their own labels, says Great
smoked bacon.
American’s Benso.
But Totino’s Pizza Rolls, the cat-
eno and buffalo chicken.
egory’s top-selling brand, contin-
Consumers are looking for higher
ues to score strong increases. Matt
quality products that contain real
McQuinn, marketing manager of
ingredients, says Patrick Conway,
the brand (www.totinos.com) of
president, Mr. Dee’s, Inc. (www.
Minneapolis-based General Mills,
mr-dees.com), Libertyville, Ill. The Cuisine Innovations suggests positioning
says that some of the factors driving
company is launching a 38-ounce appetizers as a fourth meal or anytime
Totino’s growth include strong con- food, noting that “The younger generation
potato skin club pack that has real
sumer investment, offering multiple has shifted to a grazing style of eating.”
Times Change.
Commitment Doesn’t.
In 1961, when the founders of
Zero Zone started the company
in a dairy barn in rural
Wisconsin, they focused on
three guiding principles: quality, responsiveness and innovation.
Today, 50 years later, these principles still structure the company’s
philosophy and unyielding commitment to customers.
Zero Zone: 50 Cool Years. Many More in Store.
OL YE
CO A
50
R
S
RE
MA
N
O
Y ST
MO
RE IN
CASE CLOSED
800-247-4496 | Zero-Zone.com
Copyright © 2011 Zero Zone, Inc. All Rights Reserved.
FROZEN APPETIZERS & SNACK ROLLS
Supermarket sales for the 12 weeks ended Feb. 20, according to change is versus the like period a year ago. Data is for the brand as
SymphonyIRI Group, the Chicago-based market research firm. Percent originally trademarked, and may not include line extensions.
APPETIZER/SNACK ROLLS
SUB-CATEGORY $255,131,000 (2.15) 69,101,140 (2.80) 66,087,020 (0.83)
Totino’s Pizza Rolls $63,360,390 7.11 20,374,440 9.32 22,417,140 6.87
TGI Friday’s $32,675,790 17.02 7,753,772 14.39 6,213,078 21.71
Private Label $20,673,310 (3.08) 5,965,362 (8.26) 5,630,922 (3.66)
Bagel Bites $19,094,490 (7.54) 5,566,477 (6.58) 4,058,470 (2.96)
Jose Olé $17,500,910 2.28 3,749,860 1.91 5,011,762 2.72
Farm Rich $12,108,380 16.10 2,218,594 (3.03) 3,457,105 12.12
El Monterey $9,156,034 (34.24) 1,602,718 (42.41) 2,376,334 (39.04)
Chung’s $7,031,698 2.04 2,222,360 1.72 1,712,399 1.26
Delimex $6,500,217 (17.27) 1,015,523 (17.69) 2,009,950 (16.09)
Foster Farms $4,395,840 (1.29) 779,895 (4.93) 1,314,619 (1.43)
‘HEALTHY
and subur- Roba Dolce sorbet-
ban areas,” he tos are all-natural,
fat-free and dairy-
says.
INDULGENCE’
free.
“People used
DRIVES ICE
to think it was
an Italian ice. Cake Gelato, which
was available for 12
CREAM $$$
Now they know
it’s a superpremi- weeks around the time
um but made with of Mardi Gras in New
half the butterfat and Orleans.
Brands outpace private label in both the finest ingredients in order to get This spring, the company
ice cream and novelties. Portion- that intense flavor. To retail buyers, will introduce GS Gelato minis,
control sizes gain momentum. gelato is no longer incremental busi- 3.5-ounce containers with a wooden
ness. It’s part of every planogram and spoon inside. “It’s a nice low-calorie
BY LEN LEWIS fast becoming a category of its own,” snack option and gives retailers the
opportunity to do a demo without
B
he says.
rands outperformed private Cynthia Harrison, national gro- a demo. Who wouldn’t want to at
label in both ice cream and cery account director, GS Gelato least try something new for $1?”
novelties in supermarkets (www.gsgelato. Harrison asks.
during the 12 weeks ended Feb. 20, com), Fort Walton Supermarket sales Meanwhile,
according to SymphonyIRI Group, Beach, Fla., agrees. of brands have been higher commodity
the Chicago-based market research “Everyone is costs are going to
firm. In both categories, “healthy pushing for things outpacing private have an impact on
indulgence” continues to grab pricing eventually.
increased attention and sales.
like gluten- and label in both the ice “We don’t have the
hormone-free or
“We believe dollar sales will just pushing for cream and novelties costs associated
continue to grow as the economy healthy in general. categories. with high butterfat
rebounds,” says Craig Hall, general People are looking products. But we do
manager of Mars Chocolate North closely at ingredi- import about 80%
America (www.mars.com), Hack- ents and what they put in their bod- of our ingredients
ettstown, N.J. ies. Gelato fits in perfectly,” she says. from around the world. So we have to
“But consumers are seeking more “It’s getting more shelf space be- deal with fuel and freight increases.
value for their money. We’re address- cause retailers understand they can We might take a little hit. But pro-
ing this by identifying ways to reduce offer a premium product without all grams are paid out for the year and
manufacturing costs without com- the trans fats and cholesterol.” there aren’t a lot of price changes this
promising quality.” He adds that the In fact, the company recently redid year. However, it might affect what
company has not moved away from its packaging and put gluten-free and we have to do in 2012,” she says.
ice cream to frozen dairy desserts, as trans fat-free symbols on the front to “The current state of our economy
some competitors have. take advantage of consumer health paired with rising commodity prices
concerns. “Anything a manufacturer will continue to challenge our in-
CHANGING TASTES can do to make it easier for consum- dustry, notes Veronica DeCristoforo,
Matt Olerio, president, Roba Dolce, ers is a bonus. It can really make a CEO, Lindy’s Homemade (www.
(www.robadolce.com), Warwick, R.I. difference in what they choose to buy lindyshomemade.com), Charlotte,
which is expanding rapidly for their families,” says N.C. “In order to stabilize the effect
in the U.S. and inter- Harrison. to our customers at the shelf level, we
nationally with both have partnered with retailers to find
branded and private IN-AND-OUTS a common resolution in promoting
label gelato products, The company is re- and selling product.”
also believes quality searching potential “Manufacturers strive to continue
is key as peoples’ tastes new products and finding efficiencies in their opera-
change. “Consumers are may consider in-and- tions. But that only goes so far and
different than they were out items like its King prices on the shelf will continue to
just four or five years ago. rise,” she says. DeCristoforo adds
You can see that in the that there is a need for both ‘healthy’
GS Gelato’s King Cake
thousands of gelaterias Gelato was available for 12
and ‘indulgent’ products on the shelf,
and cafes that have sprung weeks around the time of since consumers tend to alternate
up in thousands of metro Mardi Gras in New Orleans. between options depending on their
Looking for fresh sales? This Limited Edition treat has real potential.
Turkey Hill’s new Strawberry Shortcake Ice Cream Cake will give your
customers another reason to celebrate. This 6" mini cake with Vanilla
ice cream, strawberry swirl and shortbread pieces is sure to please.
Add it to your Turkey Hill Ice Cream Cake line today.
mood at the time. stores. At the same time, the com- we are presenting them with high
Joao Sousa, associate brand pany is continuing with its “hand- quality products that only use pure
manager, Stonyfield Farm (www. crafted” fruit bars. “We use big pieces ingredients,” he says.
stonyfield.com), Londonderry, N.H., of fruit in our bars and they won’t fit Ciao Bella, Florham Park, N.J.
says that although there has been through the nozzles of extrusion ma- (www.ciaobellagelato.com), which
concern about the price of cocoa, chines, and pouring keeps the quality has gelaterias as well as a retail line,
“We’ve hedged our consistent,” she says. has moved to products sweetened
position and so far Even the indulgent only with organic cane sugar rather
our supply chain segment is catering to than refined, says spokesperson Deb-
team says it’s not a the health-conscious. As orah Holt. The company is introduc-
big issue.” Gary Barron, president, ing three-ounce blueberry/passion
As to new items, Sheer Bliss (www.sheerblis- fruit sorbet bars in three-packs with
“People are mov- sicecream.com), Sunrise, a suggested retail of $3.99 to $5.29.
ing away from the Fla., notes: “We’re finding On the more indulgent side, the com-
typical 16-ounce pint that consumers for the most pany is introducing S’mores-flavor
towards novelties part are calorie-conscious. gelato made with Belgian chocolate.
and non-dairy items,” But they also want that quick
according to Sousa. fix of sweetness.” According- 90-140 CALORIES
In order to meet this ly, the company is expand- David Edelstein, director of sales,
trend, the company Rajbhog Foods is a small ing its Bliss Bites line, a bon Mister Cookie Face, Inc., (www.cook-
is launching two new batch manufacturer that bon that uses premium ice ieface.com), Lakewood, N.J., believes
novelties at Whole is gaining momentum cream dipped in gourmet the health-conscious trend of the
Foods — vanilla and with unique flavors and chocolate. New flavors past few years has helped the busi-
formulations.
chocolate fat-free yo- include dark chocolate and ness. “For many years, the industry
gurt bars. The items coffee and vanilla, dipped in has been aware of things like nu-
carry a suggested retail of $5.99 for milk chocolate. tritional content and
a six-pack, he said, noting that quart “Portion control calorie count. What’s
sizes will also be available for the is the key,” says
‘People are changed now is the
same price. Barron. ”People looking closely at focus on portion con-
want something trol and products that
NEW SWEETENERS to grab on the way
ingredients and may be only 90 to 140
Happy and Healthy (www.happy- out. They don’t what they put in calories, but enough to
andhealthy.com), Boca Raton, Fla., always have the satisfy people.”
with products that are gluten-free time or desire for
their bodies.’ Craig Hall of Mars
and have no artificial preservatives, a full-size novelty agrees. “We think the
is also using organic evaporated cane bar or a scoop from a pint. We’re not area of smaller portion sizes for real
juice as a sweetener, notes Rita Ham- in the health business. Our respon- with full flavor will continue grow-
mett, director of communications. sibility is to use the highest quality ing. We’ve had a lot of success
On the new product front, the ingredients available. But people with our 90-calorie Snickers, Twix,
company is looking at more Hispanic know more about what goes into Milky Way and 3 Musketeers
flavors like horchata, which is doing their bodies these days and I think miniature bars.”
well in both mainstream and ethnic that makes our job a lot easier since But the company is also adding to
ASSORTMENT IS KEY Fully 28% of consumers will leave they’d buy something from that set.
TO NOVELTIES: MARS the category and 11% will leave the The result was that consumers were
Proper assortment can boost sales store if a retailer doesn’t have what 27% more likely to buy from a cat-
of frozen novelties by as much as they perceive as the right assort- egory management set than from a
60% in convenience stores, accord- ment, according to Mars. manufacturer’s exclusive set.
ing to a recent study by Mars Researchers showed 18 different The study also notes that nov-
Chocolate North America (www. product sets to 500 consumers. The elty shoppers are valuable C-store
mars.com), Hackettstown, N.J. varied assortments incorporated consumers, as they shop these
The consumer research, which the 58 best-selling items in the small outlets an average of three or
included interviews with 900 country and included single manu- more times per week. Interestingly
consumers and the review of six facturer sets, random sets and sets they are more likely to be females
months of POS data from seven that represented a strategic mix of with a higher household income
retailers, provides hints at strate- best sellers. than the average C-store consumer.
gies and tactics that could work in As they reviewed each assort- Some 80% buy from these outlets
supermarkets as well. ment, consumers were asked if at least monthly.
FROZEN NOVELTIES
its regular pint line with Mars candy Supermarket sales for the 12 weeks ended Feb. 20, according to SymphonyIRI Group, the Chicago-
based market research firm. Percent change is versus the like period a year ago. Data is for the brand as
pints with Snickers Rocky Road, choc- originally trademarked, and may not include line extensions.
olate and marshmallow with chocolate
covered peanuts and chopped Snickers CATEGORY $ SALES % CHG UNIT SALES % CHG VOLUME % CHG
bar pieces; Milky Way, chocolate malt TOTAL CATEGORY $440,839,800 1.4 139,608,500 1.8 179,705,600 (0.7)
with caramel and chocolate chunks;
NOVELTIES $397,670,100 1.9 133,238,500 2.2 166,574,400 (0.8)
and Twix peanut butter. Private Label $55,706,940 (2.5) 21,516,380 (3.8) 38,978,200 (4.3)
Additionally, Mars is re-launching The Skinny Cow $31,937,620 5.8 8,897,202 27.8 8,791,196 (3.2)
Dove in 2011 with several new with Weight Watchers $31,435,230 0.2 7,168,163 (4.3) 8,837,205 (1.6)
several new items including a pea- Nestlé Drumstick $22,281,340 3.8 4,689,517 (6.3) 7,771,546 (1.0)
nut butter Dove bar and television Dreyers Edys $19,826,860 0.2 4,809,211 (6.6) 5,521,417 (8.7)
Häagen-Dazs $17,173,220 11.6 10,199,000 14.0 3,058,925 5.6
advertising for the first time in several Klondike $15,373,180 0.2 4,802,172 (1.2) 7,880,177 (1.5)
years, says Hall. Popsicle $12,426,020 0.2 3,361,297 (3.7) 6,874,283 (1.3)
Satisfying consumers also means Blue Bell $11,454,040 20.2 3,176,605 33.2 6,702,117 28.5
looking for new flavors catering to Klondike Slim-A-Bear $8,064,730 (11.8) 2,467,131 (11.0) 3,135,529 (10.0)
ethnic tastes. This is the path taken ICE CREAM/ICE MILK DESSERTS* $38,994,560 (3.0) 4,072,126 (10.7) 8,061,137 (2.2)
by Rajbhog Foods (www.rajbhog. Carvel $16,933,990 (8.6) 959,383 (7.5) 3,482,474 (7.9)
com), Jersey City, N.J., a full line Private Label $4,468,891 (6.4) 251,861 (27.9) 760,835 (15.0)
Jon Donaire $3,479,754 9.5 189,189 5.1 546,431 10.2
Indian food Friendly’s $3,324,154 (0.2) 391,190 3.7 1,214,490 4.1
manufacturer. Weight Watchers Smart Ones $2,769,839 (22.3) 1,229,902 (20.4) 415,443 (19.9)
It is introduc- Celebration Foods Oreo $1,817,874 132,327 386,522
ing flavors like Edwards Singles $1,108,066 (15.1) 382,864 (17.3) 197,111 (15.2)
coconut, car- ICE POP NOVELTIES* $4,175,131 (0.5) 2,297,898 3.6 5,070,039 2.0
rot, lychee, fig Del Monte Fruit Chillers $1,291,168 2.4 527,125 10.3 527,934 10.4
and mango to *Brands with sales over $1 million.
the American
market. ICE CREAM/SHERBET
“We’re a Supermarket sales for the 12 weeks ended Feb. 20, according to SymphonyIRI Group, the Chicago-
Mars small batch based market research firm. Percent change is versus the like period a year ago. Data is for the brand as
reports great success manufacturer, originally trademarked, and may not include line extensions.
with its 90-calorie Snick-
ers minis and several so we can do CATEGORY $ SALES % CHG UNIT SALES % CHG VOLUME % CHG
other recent launches. special formu- TOTAL CATEGORY $812,438,700 (1.4) 236,841,300 (5.8) 723,467,200 (6.1)
lations. All our
novelties are eggless. In the U.S., you ICE CREAM $739,886,200 (1.8) 213,800,900 (6.5) 668,311,200 (6.6)
Private Label $183,730,900 (3.9) 58,712,280 (12.0) 236,077,500 (10.6)
can be a vegetarian and eat eggs. But Breyer’s $74,952,670 (9.5) 20,769,320 (17.5) 62,144,760 (17.0)
in India, vegetarianism means that, Blue Bell $56,809,950 9.4 14,450,930 2.0 44,007,740 7.8
other than milk, no animal product is Dreyer’s/Edy’s Slowchurned $55,453,450 (2.4) 15,618,120 (1.0) 46,854,360 (1.0)
acceptable.” says Suzy Mody, vp, sales Häagen-Dazs $47,714,310 7.6 12,301,550 4.7 12,201,250 4.5
and marketing. Ben & Jerry’s $37,485,560 2.0 10,136,980 (2.1) 10,188,800 (1.9)
Dreyer’s/Edy’s Grand $27,695,530 3.5 8,189,277 4.5 24,381,930 4.7
“Reaction from buyers has been Dreyer’s/Edy’s Fun Flavors $27,348,700 22.3 7,860,310 22.3 23,580,930 22.3
pretty good and we’re gaining mo- Turkey Hill $25,754,430 4.4 9,190,620 7.2 26,305,040 5.7
mentum. But we’re a small batch Wells Blue Bunny $25,124,440 (0.8) 6,282,209 (10.5) 24,812,310 (9.9)
ethnic company and may not have FZ YOGURT/TOFU* $37,992,380 4.2 10,215,620 2.5 26,873,800 4.3
what they’re looking for in stocking Private Label $8,320,049 14.8 2,387,858 6.4 9,093,115 5.1
fees,” she says. “And the more we as Dreyer’s/Edy’s Slowchurned $7,297,359 (10.3) 1,956,387 (9.1) 5,869,159 (9.1)
manufacturers have to pay, the more Ben & Jerry’s Lighten Up $3,309,536 (3.1) 888,512 (6.2) 888,512 (6.2)
Häagen-Dazs $3,260,449 (1.7) 896,732 (4.1) 784,640 (4.1)
expensive the product has to be and Turkey Hill $1,851,988 1,417.9 618,020 1,468.0 1,854,061 1,380.6
we don’t want to price ourselves out Purely Decadent $1,757,461 28.1 349,744 22.8 349,744 22.8
of the market.” Kemp’s $1,670,307 12.0 474,993 10.8 1,424,979 10.8
Organic So Delicious $1,568,846 (11.5) 299,027 (14.0) 526,631 (12.9)
Len Lewis (lenlewis@optonline.com) is Wells Blue Bunny $1,325,092 270.6 320,972 253.1 1,123,404 253.1
Kemp’s Live Healthy $989,466 (1.0) 272,360 0.4 817,081 0.4
editorial director of Lewis Communi-
cations, Inc., and author of The Trader SHERBET/SORBET/ICES* $34,560,110 2.4 12,824,780 0.4 28,282,200 (2.1)
Joe’s Adventure-Turning a Unique Private Label $14,256,390 4.1 6,245,714 1.4 15,736,110 (2.1)
Häagen-Dazs $5,466,526 0.9 1,523,546 (2.0) 1,333,102 (2.0)
Approach to business into a Retail Dreyer’s/Edy’s $1,661,718 (15.2) 463,103 (10.4) 1,389,308 (10.4)
and Cultural Phenomenon. WholeFruit $1,398,925 22.9 516,995 33.4 516,995 33.4
Blue Bell $1,321,235 15.0 526,419 6.7 932,614 9.9
Kemp’s $1,188,152 3.3 425,718 4.7 1,236,355 3.6
46 www.fdbuyer.com APRIL 2011 *Includes brands with sales over $900,000.
SPOTLIGHT: ICE CREAM
STEADY
pears to be over, according to the show signs of slowing down, Mintel
company’s October 2010 report on says. “Much of this growth can be
I ce cream sales are expected to do premium versions of ice creams are healthier than ice cream, they
better this year than last, but don’t available, which offer the combina- lack a distinctive identity, accord-
expect meteoric growth from the tion of an attractive price point and ing to the research. “There seems to
category over the next five years. an indulgent treat.” be less marketing support for this
That’s the word from Mintel The research firm adds that the segment, as it is hard to define and
International Group, the Chicago- speed with which decadent ice position in the eyes of consumers.
based market research firm. It cream brands faded in popularity This lack of a strong brand presence
forecasts that that by the year “underscores the importance of helped private label generate $75
2015, sales will be slightly higher continuous innovation to identify million in 2010 FDMx sales, which
than 2008. Private label has lost the next big trend.” gives it a little more than 40% of the
momentum (and share) lately, and Frozen yogurt has grown by segment’s sales in these outlets,”
the surge for decadent brands ap- nearly 25% since 2005, and doesn’t according to Mintel.
BY ORDER OF #7-210 OF THE UNIFORM COMMERCIAL CODE OF THE STATE OF NEW YORK
-WAREHOUSEMAN’S LIEN-
THE FOLLOWING GOODS WILL BE SOLD AT
FROZEN
2.6%, again due mostly to
Jimmy Dean, whose Break-
fast Bowls and Skillets, the
BREAKFASTS
subcategory’s second- and
fifth-best sellers, respectively,
GAIN 10.4%
posted double-digit gains (sub-
category leader Aunt Jemima
saw its sales decline 14.9%).
Double-digit gains in waffles and Some retailers sell thawed-out Finagle a
handhelds heat up category. WAFFLES UP 27% Bagels via in-store bakeries. Signage can
But the category’s biggest advance direct shoppers to the frozen department
was registered by the surging waffles for a longer shelf-life alternative.
BY DENISE LEATHERS
segment, up a whopping 27.0% from
A lthough frozen breakfasts a year ago on the strength of Kel- fast items, which offer the hand-held
lost a bit to scratch cook- logg’s resumption of full-scale Eggo convenience so important to today’s
ing during the recession, the production. Interestingly, though, on-the-go consumers? “Shoppers are
category is rebounding nicely in while all three Eggo brands in the increasingly seeking out products
2010, thanks in part to the increas- top 10 posted double- or triple-digit that are high in protein, providing
ing availability of premium and gains, five of the seven remain- a better start to their day,” answers
better-for-you options. According ing brands registered advances as Reggie Moore, director of brand mar-
to a November well, thanks in part keting for Jimmy Dean convenience
2010 report from ‘Shoppers are to almost across- foods (www.jimmydean.com), part of
Now a deliciously
different way to waffle.
Celebrating
75 years!
SERVING
SUGGESTION
Serving Size
One Waffle
L
S
A E
RT G
IS A N B A
DELIVERY
evil,” delivery giants like Domino’s ing prices on many of its top-selling
“have taken an active and aggressive store brand products, including
stance against frozen pizza manufac- Wegman’s Bake & Rise Pizza, guar-
FROZEN
team at Bloomington, Minn.-based Pa.-based Acme, a Supervalu chain,
Schwan’s Consumer Brands North recently advertised its premium
PIZZA
America (www.freschetta.com). private label Culinary Circle frozen
The smear campaign, coupled with pizza at two for $9.
rock-bottom prices, represent a seri-
ous threat to frozen pizza’s growth, CREATING MEALS
Using cross-promotions, meal deals Brown says. Retailers can also build sales simply
and a slew of unique new items, But frozen pizza manufacturers by merchandising frozen pizza with
manufacturers hope to win back are fighting back. Some are courting complementary products that to-
consumers drawn in by rock-bottom delivery customers with make-at- gether create an entire meal. For ex-
prices for delivery. home options that include popular ample, says Peter Cokinos, senior vp
delivery add-ons like bread sticks of sales and marketing at Elk Grove
BY DENISE LEATHERS and pasta. The latest example comes Village, Ill.-based Little Lady Foods
from category (www.littleladyfoods.
VALUE MAINSTREAM
SEGMENT SEGMENT +0. 4 %
PREMIUM
SEGMENT
- 4.8%
-5.3%
There’s one brand of frozen pizza that continues to be a hot seller in the freezer section.
Palermo’s. With our restaurant-quality toppings, authentic Italian crusts and true pizzeria
flavor, it’s no wonder
we’re helping retailers
capture more pizza
occasions and increase
frozen pizza sales.
To find out how to share in this remarkable growth and fire up your category
sales, call Don Ostergren, our VP of Sales, at 800-800-7912.
Patents and
Option
Optional
onal
all Patents Pending
label/sign holder
An American Manufacturing Company Note: Product photography is taken in, or simulates, a retail environment and
is not meant to imply endorsement by any brand or manufacturer.
EXCEPTION REPORT:
FROZEN
and convenience make Delizza has been turn-
them ideal as entertain- ing in double-digit
gains in a category that
SWEET
ment items, he says. The
has been down almost
company’s products the same amount.
have been in distribu-
F
to help grow sales further. as web coupons, FSIs in select markets,
rozen sweet goods (not including The relatively high dollar ring and and retailer events to tie into their
cheesecakes) were down 9.8% margin have earned the brand extra holiday programs,” Liggero says.
in dollars and 12.4% in units facings, which have also helped the He adds that “We support private
last year, according to supermarket gains over the past year. Sympho- label but it should not be the only item
data from SymphonyIRI Group, the nyIRI Group supermarket data for on the shelf. Offer the consumer a
Chicago-based market research firm. the 12 weeks ended Feb. 20, 2011, choice and let them shop the dessert
Among the top 10 items in dollar show Delizza in fourth place for sales category. Most private label is priced
sales, eight posted declines. There within its category — up 28.6% dur- within a dollar of our brand.”
were two exceptions, however. Both ing the period while the category as a A recent study by Mintel Interna-
scored double-digit gains and both whole fell 9.6%. tional, Chicago, says 68% of frozen
were from Delizza Patisserie (www. To max out sales and profits for dessert purchasers buy the products
delizza.us), Sarasota, Fla. the category, Liggero urges retailers to have something on hand if they
to give it more space during holiday need it. Half the shoppers it surveyed
NO COINCIDENCE? periods. “We are supporting our prod- said frozen desserts are a good choice
Perhaps it’s no coincidence, but the ucts now with couponing during this for a reward or treat, and almost half
items (see chart) were the only ones timeframe, which draws the consumer say frozen desserts taste as good as
in the top 10 to have average retails to your sections. So why not put us freshly made alternatives. The mes-
about $5, when the average for the cat- on display during key time periods, sage here: demo, then demo some
egory was $4.05. So what gives? mixed in with your pies and cheese- more to build trial and win new users.
Fred Liggero, vp of sales at the cake displays? We have had some Other reasons shoppers buy frozen
company, says Delizza’s high-end retailers do this with almost five times desserts: 47% say the products don’t
products are differentiated in that the normal movement when featured spoil as quickly as refrigerated or
they are made with a European-style on displays.” RTE desserts; 47% also say frozen
recipe with real dairy cream, Belgian- Because Delizza’s dessert items are desserts are a good value. And 42%
style chocolate and Bavarian fillings. for entertainment events, the company believe frozen desserts are a good
They’re thaw-and-serve, so no offers promotional programs dur- choice for a special occasion, accord-
baking oven is needed. The quality ing the key holiday seasons: Easter, ing to Mintel research. n
N
may have shelf life, labeling, pallet
ew technology is driv- build, and other requirements. With
ing significant new advances in WMS technology, 3PLs
efficiencies at public can meet these requirements while
refrigerated warehouses, performing them at the most oppor-
enabling them to meet tune time. Since the requirement is
rapidly growing demands of food performed in the system, reports can
manufacturers and retailers. be generated at any time.
We discussed advances in ware- Henningsen: We’ve seen great ad-
house management systems, unload- vances in managing shelf life require-
ing/outbound efficiencies, pallets, fleet ments, which is very important in
utilization and other topics in a virtual perishable goods storage like dairy.
roundtable which included: We’ve also seen advances in task
—Jerome Scherer, vp national interleaving, access to information and
sales and marketing, government system alerts which makes the WMS
affairs, U.S. Cold Storage, a true management tool, not just an
Voorhees, N.J.
—Steve Tippmann, exec vp,
Tippmann Group/Interstate ‘Load-building and
Warehousing, optimization soft-
Fort Wayne, Ind. ware has enabled
—Pete Westermann, vp
general manager CPG
great strides
Industry Group, Ryder Sup- in maximizing
ply Chain Solutions, truck movement.’
Holland, Mich. —Scherer
— Mike Henningsen, Jr.,
chairman and president,
Henningsen Cold Storage Company, order processing and inventory man-
Hillsboro, Ore. agement tool.
—Harry Halpert, president, MTC Hendricksen: The Warehouse Man-
Logistics, Baltimore, Md. agement Systems today seem to be
—Michael McClendon, president, very intuitive, which helps reduce the
Richmond Cold Storage, learning curve with new associates. In-
Richmond, Va. ventory control advances that include
—Bill Hendricksen, CEO, Castle & count-back features, system generated
Cooke Cold Storage, Colton, Calif. cycle counts based on customer rules,
substitution rules, inventory adjust-
What advances have you seen in ments and line changes for missing
Warehouse Management Systems? or damaged product at the picking
Scherer: Wide implementation of level. The Integration with the many
the days-of-life remain- production date to ship.
ing by scheduling reports Scherer: Tracking has become very
‘We have started to be automatically run sophisticated with multiple meth-
using “fluid load- and sent to their e-mail. ods being employed on each SKU.
ing” to improve The systems are now set Production dates coordinated with
our efficiencies on so that when a product sell-by dates; the old method of first-
outbound loading.’ is reaching a set number in first-out has evolved to accom-
—Tippmann of days, the system can modate remaining shelf life limits
automatically place the without regard to arrival date. Days
product on several types, of remaining life can be customized
or stages of hold and send to meet the requirements of each
modules on the market place today, a notice out to the ware- consignee.
modules such as Voice Pick, Yard house and the customer.
Management, Engineered Standards, Henningsen: Modern WMS’s today What are managers doing to
Accounting Software, and modules offer greater flexibility to match cus-develop and implement new labor
that build a perfect pallet while re- tomer requirements when it comes standards?
ducing the travel time in a warehouse to guaranteed shelf life agreements. Henningsen: As the customer
while selecting an order. Advances Today we can configure the system profiles change, it is important to
that allow carriers or vendors to to assure that a ship to customer continually review the procedures
schedule delivery or pickup appoint- has a specified number of days until in place and adjust as required. The
ments through s web portal. expiration left on product based on tasks needed to develop and imple-
McClendon: Richmond Cold Stor- the customer, product or product ment new labor standards include:
age has recently transitioned to a family and transit time to delivery. Review current function (define pro-
new WMS that allows us to take The system will only allocate product ductivity and quality results), con-
ownership of the system regard- that matches the requirements. We duct brainstorming meetings with
ing customer driven modifications can also program the WMS to send your teams, identify/test improved
and customization. This is a change alerts if product is getting close to methods and procedures, document
from our previous WMS that re- expiration. An additional feature is and train on new methods developed,
quired us to go back to the provider the ability to assure that a customer perform then review new procedures,
for these services. This function never receives product that is older monitor production results and vali-
gives us tremendous flexibility as than product previously received. date, meet again with your team and
well as the ability to control the Halpert: It’s important not to mix agree to new methods and standard.
cost associated with customization. date codes on pallets – doing so adds Tippmann: With the advances of
In addition, the labor management cost to pick and increases chances of Warehouse Management Systems’
tools available assist our managers misrotation. Speak to the manufac- ability to manage/enforce customer
in increasing the efficiency of our turer to understand how they pal- requirements, the industry can
workforce. Also, customers today letize product from their production accurately report exactly what is
are much more interested in partici- line. Batch codes and midnight shifts being performed on the floor in the
pating in EDI. The newer systems may create exceptions. warehouse. This allows managers to
and technology allow us to build From a warehousing perspective, keep labor standards up to date while
the EDI processes at a lower cost especially in multi-deep environ- taking into account customer re-
compared to five years ago. ments, a warehouse operation is able quirements in many different areas.
Halpert: We’re seeing more auto- to maximize storage density by hav- Additionally, we now have accurate
mation. Also, contractors, material ing windows (i.e., 30 days) around a costing of any and all work per-
handling and IT companies are formed for our customers, thanks
collaborating much more than to this technology.
in the past. Hendricksen: Managers are
‘Dispatchers only continually identifying barriers
Can you describe a few best need an internet that disrupt production or in-
practices in expiration-date connection and crease indirect time. They do this
(days-of-life remaining, shelf through observation, feedback
a laptop to gain
life) management? from the associates, and review-
Hendricksen: With the advent access to all orders ing productivity data, and make
of the web based systems, the and routed freight.’ necessary adjustments to stream-
customer is now able to track —Henricksen line the overall production proc-
your system for that pal- how long product sits on the dock.
let (product code, batch, Hendricksen: From a WMS
‘Newer systems and quantity, etc.). We can use standpoint, inline quality checks,
technology allow a double pallet jack to pick automatic status adjustments speed
us to build the EDI up two pallets, scan them, up the overall receiving process.
processes at a lower and run them directly into Automatic door assignments based
storage without stopping on item codes and quantities being
cost compared on the dock. delivered as it relates to the assigned
to five years ago.’ Westermann: VMU – storage locations in the warehouse,
—McClendon Vehicle Management Unit which reduce travel time and po-
has improved efficiencies tential safety hazards. The Verti-
ess. Managers also realign customers, the most in recent years cal style hydraulic dock plate help
items, and pick lines based off of by leveraging the latest software and maintain the cold chain compliance
velocity reports or product move- applying it at the point of delivery. by allowing a better seal between
ment data extracted from the WMS, We’ve had success enabling the WMS the truck trailer and the dock door.
in order to reduce travel time in the to be applied at the point it is brought Electric/Hydraulic truck restrains in
warehouse. Once the barriers have into the warehouse and determining lieu dock chocks allow the receiver
been removed, and the productivity the best place to store the prod- to secure the truck without going
processed streamlined, crew averages uct. This is also applied as it goes outside while maintaining a safe
can be measured and compared to back out of the warehouse. We are work environment.
previous productivity numbers, thus also using new battery technology,
creating new reasonable expectancy both opportunity charge, as well as What about outbound efficiencies?
labor standards. fast-charge systems, which helps us Henningsen: I have not seen much
Scherer: Event-driven computer- reduce material handling equipment in this area as of late, the only items
ized tasking assignment is creating down time and increase productiv- that come to mind are double jacks
great efficiencies in labor manage- ity and efficiency. Other ways we and forklifts with multiple pallet
ment. Scan-by-scan capture of the leverage technology to improve dock transport capabilities
activities of the individual worker efficiencies include using “photo Tippmann: We have started us-
allows for performance evaluation eyes,” installed at the dock to prevent ing “fluid loading” to improve our
for all job categories. Order picking equipment from damaging doors and efficiencies on outbound loading.
by case or full pallet — put-away in controlling dock levelers,
the warehouse, shipping and receiv- which reduces down time
ing on the dock as well truck loading and helps control cost. ‘Removing unladen
and unloading are all measured. This Scherer: From a practical miles from routes
information can be used for more point of view, new-design
accurate cost assessment and pricing, dock doors provide for the
has always
as well as creation of fair work load ability to open doors after been a prior-
expectation standards. the truck is backed into the ity for an asset-
Halpert: Our managers are paying dock and the axle is locked based company.’
close attention to each step of an op- for safety. Thermal abuse of —Henningsen
eration, utilizing the WMS to times- product is avoided and the
tamp activity, and actively reviewing dock area does not become
the data with staff. infiltrated with warm humid air. Instead of runners bringing pallets
From the IT side, pending inbound out to the dock and then the loader
What new technologies are warehouse management systems handling them again, the loader
available to improve unloading enable advance documentation proc- uses a double pallet jack to take two
efficiencies? esses and space allocation planning pallets at a time from the freezer
Tippmann: ASN (advance ship for more efficient put-away. This directly to the truck.
notice) has had the most impact process works especially well when Hendricksen: From a WMS stand-
recently on our receiving efficien- combining outbound orders with point, door assignments relating
cies. When you get an ASN from cross-dock movements. Coordina- to the proximity of the staging or
the shipping point, you receive all tion of inbound and outbound loads picking locations of the outbound
the necessary information to be can be synchronized with product load. This reduces the travel time,
able to just scan the barcode on the availability and shipping and receiv- and reduces the time to complete the
pallet and everything is already in ing appointments. Order assembly loading process. Advance Shipping
and staging is timed to minimize Notice (ASN) tags being applied to
1-800-791-2653
www.henningsen.com
Oregon • Washington • Idaho
North Dakota • Oklahoma • Pennsylvania
LO G I STICS
outbound pallets, and being scanned cess to all of our available orders and significant increases in gainshare
to the door while loading. This routed freight. The improved visibil- dollars and visibility to available
insures that the load will be shipped ity allows collaboration between our loads. This is becoming even more
complete. The ability to live load a offices and warehouses. We are able critical with the recent increases in
trailer with multiple stops, with the to reduce deadhead miles by creating fuel prices.
system using logic to pick and load in continuous moves from our shipping Hendricksen: We are fortunate to
the proper order based on drops. and delivery points. The software have multiple customer and car-
also tracks a driver’s progress and e- rier relationships we work with on
What advances have you seen in mails alerts to appropriate staff. The transportation initiatives. For exam-
routing software and other ways to alerts allow us to manage potential ple, our drivers perform tempera-
improve fleet utilization? services issues and avoid excessive ture controlled deliveries for one
Westermann: We have seen ad- idle and dwell times at loading and of our retail customers. We send
vancements in both hardware and unloading locations. The TMS al- trucks to their stores in California,
software on routing technologies. lows us to hold drivers accountable Arizona, Nevada and Colorado.
Aside from advanced 2nd generation for arriving on time, loading and After the trucks are unloaded at
unloading, and reducing the stores those trucks are offered
fuel consumption all while to our customer base to use and ar-
adhering to hours of service range delivery back into our ware-
‘We are looking at and safety regulations. The houses or their production facilities.
hydrogen technol- TMS Optimizer are becom- In addition, we have customers
ogy for our material ing better and quicker. We with their own dedicated fleets. We
handling equipment, are using the optimizer as a negotiated ride share agreements
tool, along with our staff’s with our customers’ fleets so we can
but the ROI to date industry knowledge, to consolidate freight into pool loads
has been too low.’ improve our ability to create while they are loading and deliver-
—Westermann efficient loads by combin- ing into similar locations. These
ing service expectation with agreements are mutually beneficial
most cost effective routing. and they generate additional value
algorithms and the math engines Halpert: Software is opening up for to each organization.
they use, the applications are being system-wide views which provide a Our transportation division
rewritten from scratch to deliver broader planning horizon. has a passion for the business. The
enhanced efficiencies. Net archi- staff understands the effects of fuel
tecture and XML interfacing and What arrangements are being increases, tightening capacity and
to expand on the tools and features made to share unladen miles additional government regulations on
built into the flagship products over among various fleets (e.g., retailers, the industry. We are constantly look-
the years. These improvements allow vendors, yours)? ing for better and cost effective op-
for additional routing parameters to Henningsen: Removing unladen portunities to move freight. We have
be included yielding better and more miles from routes has always been a developed partnerships and designed
realistic routes. priority for an asset-based company. unique relationships to better serve
Scherer: Load-building and optimi- Shippers that have incentives to find our customers and carriers.
zation software has enabled great empty miles between divisions are Halpert: We created a transportation
strides in maximizing truck move- helping the environment as well as joint venture with one of our World
ment. GPS tracking is an important the bottom line. Programs between Group members and we utilize each
tool for keeping equipment moving. shippers to share lane information, other’s facilities to cross-dock in
Henningsen: Optimization algo- in an effort to help the carrier base order to maximize truck capacity.
rithms are more available in the in- control costs, have had only vary- Scherer: Collaboration is important
dustry to efficiently route multi-stop ing rates of success. 3PLs are in a here. Continuous movement is a
shipments, even with latest data. position to manage multiple clients’ good way to reduce dead head miles.
Henricksen: The use of technology distribution networks and gain effi-
and the internet are a vital part of the ciencies by filling unladen miles, and What is the coolest new equipment
transportation services we offer. Our reducing overall delivered costs. that you have seen for warehouses
Transportation Management Soft- Westermann: Most of our accounts or trucks?
ware (TMS) is a web-based model. have gainshare provisions in which Scherer: Automation in warehous-
The dispatchers only need an internet we are incented to fill empty miles ing is fun. I think automated guided
connection and a laptop to gain ac- where they exist. We have seen vehicles (AGV) lift trucks are pretty
L.L. BEAN
after the show, and asked her about and shortly after that I married and
her famed grandfather, and what’s had three sons. So in the early years,
SELLS
behind her dream. I was raising children. I ran a state-
wide weekly news journal for about
What are some of two and a half years, and I ran for
your memories of your Congress in 1988 and 1992. It was a
grandfather? big privilege just to run.
DELAWARE
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Medley (Miami)
Orlando
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Wilmington
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