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LOGISTICS SNACKS ICE CREAM BREAKFASTS PIZZA APRIL 2011

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 .

Why it succeeds so well.


To learn more, visit on-cor.com
Exclusive partnership with
Every Day with Rachael Ray

Inspiring, unique and helpful tips, tools and


special offers at the new on-cor.com

Quality ingredients create timeless, wholesome


frozen family size entrées everyone can agree on.
TABLE OF CONTENTS

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.

THE FRONT END

6 Out Warren’s Way


STREAM OF UNCONSCIOUSNESS
12 New Products
Two pages of unique, delicious items sure
Random thoughts and notes taken to sell like hotcakes! Please don’t charge
while attending the SymphonyIRI them slotting!
Group Summit in Miami last month.
20 BETTY BUYER
8 Who Said That?
When Does POS Become Clutter?
Betty Buyer & Sammy Seller ‘Tweet’
their usual love story.
And, Denise Is Promoted!

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

36 SNACKS & APPIES BOUNCE BACK


It’s been a soft year for the category, but the most recent data shows an uptick.

42 ‘HEALTHY INDULGENCE’ DRIVES ICE CREAM $$$


Brands outpace private label in both ice cream and novelties. Portion-control
sizes gain momentum.

50 FROZEN BREAKFASTS GAIN 10.4%


Double-digit gains in waffles and handhelds heat up category.

54 DELIVERY CHILLS FROZEN PIZZA


Using cross-promotions, meal deals and a slew of unique new items, manufacturers
hope to win back consumers drawn in by rock-bottom prices for delivery.

58 EXCEPTION REPORT: FROZEN SWEET GOODS


From time to time, we take a look at brands doing particularly well when the
category as a whole is down.

LOGISTICS

60 TECHNOLOGY SPEEDS GAINS IN LOGISTICS


Rapidly advancing technology is helping logistics providers
become ever-more efficient. Here’s a look at how leading-
edge companies are putting it to good use.

GETTING PERSONAL

66 L.L. BEAN SELLS LOBSTERS!


Okay, so we mean Linda Lorraine Bean, but that “other” L.L.
Bean happened to be her grandfather. Here’s a look at some
of Linda’s memories, and her hopes for the future.
OUT WARREN’S WAY

STREAM OF Only 1% of 150,000 new items


wind up doing $7.5 million a year.
UNCONSCIOUSNESS Shoppers care about products
VOLUME 2 ISSUE 8
Warren Thayer
Random thoughts and notes taken that improve their lives, that their Editor, Managing Partner
while attending the SymphonyIRI families will love, that will save time warren@fdbuyer.com
Group Summit in Miami last and provide good value. We launch 603-252-0507
month. too many SKUs. Better off adding Paul Chapa
25,000 new items, and maybe 10%

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

6 www.fdbuyer.com APRIL 2011


RETAILWIRE

to create connections. Not just the for understanding shoppers (nearly


typical “shouts” that occur in-aisle. everyone does) is ridiculous to those
—David Zahn, owner, who have actually, you know, MEAS-
ZAHN Consulting URED shopper behavior throughout
the store. So...millions of shopping
In-store advertising is amazing. They trips studied on a second by second
build stores with wide aisles for ease basis, wouldn’t be of interest?
of shopping and then fill the aisle —Herb Sorensen, Ph.D., TNS
up with displays that block access Global Retail & Shopper Practice
to products on the shelf and impede
the flow of traffic. They place elabo- Retailers ought to remain firmly in
rate signs on the displays but cannot control of POP ads. Obviously, the
keep accurately priced signs on the standards should vary by brand, and
shelves. The American grocer is the there should be a maximum accepted
very worst offender and leads the level given the brand’s standards.
pack when it comes to poor merchan- Within that, though, significant POP
dising practices. This is due in most ought to be tested, with the mantra
part by the fact that good marketing that if you can’t prove it works, it
and merchandising long ago gave shouldn’t go in the store.
way to “who will pay the most” to be —Jonathan Marek,
advertised and displayed. Applied Predictive Technologies
—Ed Dennis, president,
WHEN DOES POS Dennis Enterprises Sign work that is over the top gets
BECOME CLUTTER? Shoppers are NOT moved by price.
lost, messages make no sense after
a while and credibility even at times
The topic on RetailWire Mostly, they buy what comes conven- becomes in question if you cannot
(www.retailwire.com) recently was iently to hand. The shopper’s autopi- make the backup for the claim stick
signage, POS and in-store clutter. lot doesn’t interrupt the shopper and in every situation. Make the message
Here are a few of the comments we say, “Oh, look! Here’s something with meaningful, timely and where you
found most interesting… the price marked down.” Shopping really have the story to tell.
is NOT a highly cognitive process, —Charlie Moro, president,
What I think is needed is more focus and those of you who walk through a CFS Consulting Group
on educating the shopper as to how store, carefully evaluating, are prob-
products can be used to meet the ably self-delusional. The objective
shopper’s needs (health concerns, fact is that you don’t even understand
recipes, preparation tips, etc.) and how you shop yourself. The fact that
more “storytelling” type messaging you are using a self-referential base

LEATHERS IS OUR journalism


from Penn
play Texas Hold ‘Em.
“My favorite frozen food is
NEW EXEC EDITOR State and a Stouffer’s Lean Cuisine Chicken
Denise Leathers has been promoted master’s in Florentine Lasagna, which I hope
from contributing editor to executive rhetoric and they never, ever discontinue. I’m
editor of Frozen & Dairy Buyer. The communica- still mourning the loss of Sara Lee
veteran business journalist edited tion from the Chocolate Brownies a decade ago,”
Private Label Buyer (then Private La- University of she says.
bel News) for five years and has since Virginia. She “I’m thrilled to have Denise tak-
written extensively for that magazine, has two chil- ing on additional responsibilities
as well as for Refrigerated & Frozen DENISE LEATHERS dren, Tate (10) at our magazine as it grows,” notes
Foods Retailer, when it was edited and Shayne (8), and is “an honest- Thayer. “She’s a diligent, hard-
by Warren Thayer, now the editor of to-goodness soccer mom.” She is working and creative writer who
Frozen & Dairy Buyer. preparing to run (OK, mostly walk) has already built a good following
Denise has a bachelor’s degree in her first 5K in May and she loves to within our industry.”

8 www.fdbuyer.com APRIL 2011


International Women’s Certified Organic Certified GFSI Manufacturer Category Colonels,
Business Enterprises Certified Organic Certification via the BRC Standard Audit Excellence In Private Label
Trade Association Partnership Programs.
THE DATABANK

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

10 www.fdbuyer.com APRIL 2011


KEFIR/MILK SUBSTITUTES/SOYMILK $129,473,800 16.8 40,770,780 18.8 153,483,100 18.8

-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.

APRIL 2011 www.fdbuyer.com 11


NEW PRODUCTS

Non-Dairy Flaxseed Milk All-Natural Turkey Burgers


Flax USA (www.flaxusa.com), Tamaqua, Pa.-based Koch’s Turkey Farm (www.kochs-
Goodrich, N.D., debuts “the first turkey.com) expands its line of frozen turkey burgers
and only” dairy-free beverage made with the addition of an all-natural variety made from
with flaxseed. Available exclu- free-range turkeys fed a vegetarian diet free of hor-
sively at Walmart until October, mones, stimulants and antibiotics. Low in saturated
all-natural Flaxmilk delivers 1,100 fat, sodium
mg of Omega-3 per serving and as and calories,
much calcium as dairy milk. Also free the rosemary-
of both gluten and soy, the low-cal flavored
kosher drink comes in both Original burgers are
and Vanilla flavors. Suggested retail designed to
price is $3.30 per half gallon. go directly
from freezer
Pizza for the Grill to skillet —
Sidney, Ohio-based MaMa Rosa’s (www.mama-rosas. no thawing
com) presents a new line of pizzas designed to cook required. Ready to eat in just 7 minutes, they come in
on the grill in their four-count, 16-ounce boxes with a $5.99 suggested
own packaging. retail price.
Made with 100%
real cheese and New Ice Cream Flavors
sauce “from edge Turkey Hill Dairy (www.turkeyhill.com),
to edge,” Pizza Conestoga, Pa., adds a pair of new flavors to its
Grillers come premium ice cream collection. Originally a lim-
in four flavors: ited edition variety that was so well-received
Four-Cheese, the company decided to make it permanent,
Pepperoni, Italian Double Dunker features mocha ice cream
Sausage and mixed with chewy cookie dough and crunchy
Grilled Chicken chocolate cookie swirl, while Homemade
with BBQ Sauce. Vanilla boasts a more
Shipped frozen, they can also be thawed and sold traditional flavor
fresh alongside burgers, hot dogs and other sum- that harkens back
mer grilling fare. Each three-serving, 13-ounce pie is to the company’s
expected to retail for between $4.99 and $5.99. roots. Both varieties
come in rectangular
Organic Baby 48-ounce containers
Food and carry a $3.99 sug-
Miami-based gested retail price.
Nature’s
Select Food Gluten-Free
Group (www. Soft Pretzels
naturesselect- Chicago-based Kim & Scott’s Gourmet Pretzels (www.
foodgroup. kimandscotts.com) rolls out its first gluten-free
com) intro- soft pretzel. The all-natural, hand-twisted product
duces a new is made from a blend of 5 “ancient grains,” includ-
line of minimally processed, certified organic frozen ing sorghum flour, millet flour, quinoa flour, ama-
baby food made with high quality Glatt kosher meats ranth flour and teff flour. In addition to rice flour,
and poultry. Recently named “Best New Organic these ancient grains offer more fiber and therefore
Product” by Kosherfest, the microwaveable Petite a healthier soft pretzel. Given that this gluten-free
Select line includes gluten-free Shepherd’s Pie, Pasta twist is free of dairy and made in a nut-free facil-
Bolognese, Beef Barley and gluten- ity, consumers with many
free Mango Jambo. Prepared in dietary constraints can
small batches without added now enjoy a delicious soft-
sugar or salt and then flash frozen baked pretzel. Suggested
to lock in freshness, each 8-ounce retail is between $5.99 and
package includes two 4-ounce $6.99 per 8-ounce 2-count
servings in individual BPA-free package.
plastic containers. Suggested retail
price is $5.99 to $6.99.

12 www.fdbuyer.com APRIL 2011


Our chefs create it. You brand it.
Your customers enjoy it.

Thai Green Curry Rice with Fire Roasted Pineapple

Convenient microwaveable
steam pouches available from
Haliburton International Foods.
For more information about our innovative flavors
and private label products, e-mail us today at
info@haliburton.net

2539 East Philadelphia Street, Ontario, California 91761 | 1.877.980.4295 | www.haliburton.net Equal parts food, science and taste.
NEW PRODUCTS

Raspberry Lemon meats and cheeses


Italian Ice atop a thin, crispy
Lindy’s Home- crust, Freschetta
made (www. Simply...Inspired
lindyshomemade. is offered in eight
com), Charlotte, varieties. Hawaiian
N.C., introduces Style, Farmers Mar-
a new raspberry ket Veggie, Harvest
lemon flavor to Supreme, South-
its Italian ice line. ern BBQ Chicken,
This new flavor has a blend of red and black raspberry Rustic Pepperoni
with a hint of lemon. The products are fat free, low in Pomodoro and Clas-
sodium, gluten free, and only 100 calories per cup. The sic Bruschetta plus limited-edition Tuscan Farmhouse
packaging is made of recycled material that the com- and Chicken Bianco. All come in the company’s new
pany is testing as a sustainable option. Each box has six Fresch-Taste Seal packaging, which locks in flavor while
single-serve cups with six fluid ounces. eliminating the need for an outer cardboard carton.
Ready in 12 to 14 minutes, each 11.5-inch pizza has three
Frozen Meatballs to four servings. Suggested retail price is $6.79.
Norwood, Mass.-based Home
Market Foods (www.cookedper- Recipe-Ready Frozen Beef
fect.com) launches a collection of Wooster, Ohio-based Certified Angus Beef (www.
frozen meatballs flame-broiled to certifiedangusbeef.com) partners with Tyler, Texas-
sear in natural flavors and juices. based John Soules Foods (www.johnsoulesfoods.
Offered under the Cooked Per- com) to create the first line of frozen products
fect sub-brand, the fully cooked offered under the Certifed Angus Beef brand. The
0.5-ounce meatballs come in fully cooked, recipe-ready collection includes
both Homestyle and Four Cheese Carne Asada, Flame-Broiled Steak Strips and
flavors. Homestyle meatballs Thinly Sliced Beef Steaks, all of which are cooked
are available in 16-ounce ($2.50 on real flame broilers, not steam cookers. The
SRP), 38-ounce ($5.99 SRP) and gluten- and MSG-
80-ounce ($10.99 SRP) packages free beef comes
while Four Cheese meatballs in resealable
come in 24-ounce ($5.99 SRP) packages. The meatballs 16-ounce, five-serving
can be prepared in microwaves or conventional ovens packages that feature
or on the stove top. cooking instructions
and meal ideas. Sug-
Turkey Burgers gested retail price is
Butterball LLC $8.75 per package.
(www.butterball.
com), Garner, Coconut Milk
N.C., introduces WhiteWave Foods
“grill-ready” Fro- (www.whitewave.com),
zen Turkey Burg- Broomfield, Colo.,
ers designed to go a subsidiary of Dean Foods, expands its dairy-free
straight from Silk line with the introduction of Silk Pure
freezer to flame — no thawing or sea- Coconut coconut milk. An excellent source
soning required. Offered under the Butterball of vitamins D and B12, the plant-based al-
Every Day sub-brand, the bun-size burgers ternative to dairy milk contains 50 percent
contain 70% less fat than burgers made from more calcium than cow’s milk. Produced
beef and two-thirds the recommended daily without the use of GMO ingredients and
allowance of protein. Each 24-ounce box verified by the Non-GMO Project, it’s
contains six one-third pound patties packaged available in two lactose- and cholesterol-
in resealable stay-fresh inner bags. free flavors, Original and Vanilla, which
contain just 80 and 90 calories per serving,
Super-Premium Thin-Crust Pizza respectively. Suggested retail price is $3.39
Bloomington, Minn.-based Schwan’s Con- per half-gallon.
sumer Brands (www.freschetta.com) adds a
new super-premium sub-brand to its Fres-
chetta frozen pizza lineup. Featuring large-cut Got a new product you want featured?
vegetables, distinctive sauces and blends of Tell Warren Thayer, at warren@fdbuyer.com

14 www.fdbuyer.com APRIL 2011


IDDBA SHOW Mark Rudy, and Jack Li.
One of many popular features of
MONDAY, JUNE 6

IS JUNE 5-7 the show is “Show and Sell,” which


8:00-8:20 a.m., Merchandising for Impact, Mark Rudy
8:20-9:20 a.m., Rock Star Food, Themes, & Trends,

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

DELI CONSUMER purchase drivers. Here are just a few


areas covered in the full report:
The survey assessed demographic
and economic data for 4,000 re-
STUDY RELEASED —Consumers and their pocketbooks:
price/value and price perceptions.
spondents and specific deli shopping
behavior and preference information

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.

16 www.fdbuyer.com APRIL 2011


/4/11
B Y 5
P
I G N U
S

Watch your sales


stack up.
This summer, pile on the excitement and sell more milk,
with everyone’s favorite combination, milk and OREO cookies.
It’s our exciting June promotion, with consumers winning
free milk and cookies every hour online, all month long.
And it’s your chance to remind moms that milk helps kids get
the essential nutrients they need. To sign up or learn more,
call your processor or ADA representative, or call the
MilkPEP Hotline at 800-945-MILK.

© 2011 America’s Milk Processors.


got milk?® is a registered trademark of the California Milk Processor Board.
© 2011 Kraft Foods
THE DATABANK

FASTEST BABY FOOD/JUICE/SNACKS $683,957 240.2 317,773 440.0 65,663 298.4

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.

18 www.fdbuyer.com APRIL 2011


ALL OTHER PASTA/NOODLES $9,140,889 7.4 3,453,128 1.9 3,445,616 10.2

-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.

APRIL 2011 www.fdbuyer.com 19


BETTY BUYER

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.

Betty: If our demo people dead, why


we run out of product? You can’t have
both ways. Your forecasting bad.
Can’t even predict dark at night.
Sammy: Why your store execution
stink? No signage on displays. Items
missing or short-faced. New items
not on shelf in time. Cost us both big.

Betty: Why your store support stink?


Used to send in entire Army to do re-
sets, now just two retirees on oxygen
for whole chain. I miss old days.
Sammy: You not work with us on
definition of compliance or imple-
mentation. No clear lines of responsi-
bility. Never any feedback from you!

Betty: You not work with us on defi-


nition of compliance or implementa-
tion. No clear lines of responsibility.

20 www.fdbuyer.com APRIL 2011


New New

YUM!
SOY FAIR TRADE

NEW! ORGANIC
CREAMER
FRENCH VANILLA

SOY
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New

FAIR TRADE
ORGANIC
HALF & HALF
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VANILLA NEW! REAL

S T IR U P Y OUR DAIRY CASE.


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want to tamper with farmer-owned pasture perfection, so we left the
©Organic Valley 2011-10006

original alone and added two new flavors to complement your favorite
brews using authentic, organic flavors: real Hazelnut and French Vanilla
(Fair Trade, of course). While we were at it, we decided to introduce
the world’s first certified organic non-dairy creamers in original and
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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

W hole Foods Market is our


Retailer of the Year for so
many good reasons it’s
hard to know where to begin.
I’ve always been a huge fan of the
count in identical stores, and a 2%
hike in basket size — mostly from
customers putting more items in
their baskets. The chain became one
of only 13 companies ranked con-
company because it is truly “the secutively for 14 years on Fortune
consumer advocate,” having earned magazine’s list of the 100 Best Com-
the trust of its panies to Work For. And Whole
loyal shoppers by Foods has adopted a 5-Step Animal
genuinely look- Welfare Rating System.
ing out for their Well, all these factoids could eas-
interests. That’s ily get tedious, strung together like
rare. But let’s this, so I’ll stop now. There are plenty
start with some of more reasons I could cite, but I felt it
the quantifiable little best to turn it over to all of you. Over
factoids that popped the past month, I beat the bushes
up during the com- asking competitors, consultants,
pany’s first quarter manufacturers and brokers for their
conference call thoughts on Whole Foods.
with securities You’ll note that 97.4% of it (give
analysts on Feb. 9. or take) is highly complimentary.
RETAILER OF THE YEAR Whole Foods had
just posted a 14%
Believe it or not, I didn’t censor any
criticism whatever. So approximately
increase in sales, and a 15% increase 2.6% is devoted to things people
in gross profit. It also reported its don’t like about Whole Foods. Hey,
fifth consecutive quarter of accel- to my mind, that just makes it all
erating identical store sales growth real. And just for the record, very few
on both a one- and a two-year basis. retailers ever get off this easy.
Identical store sales rose 9.1% — the
highest result in four years. Average ‘A GAME CHANGER’
weekly sales per store for all stores Comments from a
increased 9% to $621,000, for average competing retailer:
sales per square foot of about $856. Whole Foods has proven to be a
Hey, aren’t we in a recession? game changer in the retail food busi-
Well, there’s more. Whole Foods ness. They have become the national
logged a 7% increase in transaction brand for products that people be-

22 www.fdbuyer.com APRIL 2011


Natural light via a sky light from the
Austin landmark store’s plaza illuminates
the frozen food offerings, below left. At
right is the original Whole Foods store, in
a 1980 photo.

cover all of the food retailers.


I think they have a stronger loyalty
from their customers than almost
any food retailer in the country. I
also think this loyalty is based upon
the ‘trust’ that their customers have money where they can so they can
in them to provide the type of foods/ spend money on what they want.”
products that they are looking for.
Their customers even seem to like it
‘WEATHERED THE STORM’
more when they move toward a more Don Stuart, president of
‘militant’ stance. Kantar Retail, Wilton, Conn.:
The wellness/organic/natural Operationally, they have a strong
consumer is a real challenge to fit distribution network, excellent serv-
into traditional demographic profiles. ice and in-stock levels, and strong
They have participants in every de- supplier relationships. They weath-
mographic segment. Their customer ered the economic storm better than
is just as likely to be a high-income expected (fell early/rebounded early)
person driving up in their Mercedes and have responded well to customer
as it is to be a young adult riding a sensitivities over pricing.
bike and spending a third of their Pricing remains a concern, along
limited income on the products that with widespread availability of
Whole Foods provides. healthier, natural options and contin-
The recent TV program that aired ued weakness in organics. Much of
about “The Big, Bad, Crazy Grocery their success (or weakness) depends
Store” turned out to provide Whole on the founder and visionary.
Foods a platform that they could not
have bought. They came across great. ‘PRICE BECOMES
lieve are better for you: organics, nat- (Notice that the founder was not on SECONDARY’
ural, HBC, wellness in general, fresh the program — the board doesn’t Manufacturer:
seafood, etc. They charge a premium trust him to keep his mouth shut.) Whole Foods seems to have staked
and they have taken a lot of heat for As industry observers, we stand out and fully exploited the upper tier
their prices. It is interesting to note back and say Whole Foods is way too consumer. The stores invite impulse
that in most cases I have observed expensive for the average household, sales as most of the proprietary
they are less expensive than many of their products are too specialized, products are romanced for margin
the independent or small chains of or that they will get customers for enhancement and to make the con-
organic retailers. Which, when you some things not available elsewhere sumer feel good about the purchase.
think of it is really their competitor, but they will not get customers to Price becomes secondary, and that,
not traditional retailers. buy a full basket. To all of us with in this economy, is no small feat.
Similar to the impact Walmart has that perspective I suggest two things. Many consumers will “treat”
on the industry, when Whole Foods First, spend more time in their stores themselves with a visit to Whole
says it will not buy a certain product to see how wrong your basic assump- Foods. Paying for quality can be a
or products with certain ingredients, tions are. (Careful though, you likely value many consumers can live with.
it sends a ripple through that entire will see some of your customers and I think Trader Joe’s has become the
supply chain. Relative to their seg- you need to be prepared.) And sec- poor man’s Whole Foods and the
ment of retail, they may own more ond, go ahead and move into the 21st market has embraced both brands.
total share than Walmart does versus century — consumers are loyal to Price is, as always, the key driver and
the traditional channel. This is a themselves first and then loyal to the even more so today, but retailers can
point I do not see reflected since they retailer that allows them to be loyal learn from both these competitors —
have a relatively low number of stores to themselves. The CEO or President that offering quality products, fairly
and the people that ‘cover’ them in from CVS had a recent quote that I priced, will be judged as a value.
the trade and financial press also really like: “Customers want to save My guess is, where price compari-
APRIL 2011 www.fdbuyer.com 23
‘BEST IN CLASS’
Manufacturer:
Being one of the first natural/organic
food chains they have remained the
best in class. They went through
a tough merger where they had
employee issues but have worked
through them. They’ve done a good
job with their private label organic
offering, but could be a bit sharper
on price. It will be interesting to see
if they can continue to get younger
shoppers versus the 60’s and 70”s
Volvo shoppers. They are miles ahead
of say, a Sunflower, or any other mul-
tiple store organic chain.
Broker:
They are definitely best in class when
Whole Foods’ 365 Organic line pioneered Foods to build in their area, to spark it comes to organic, natural, good for
the trail for private label organic offerings economic development and improve you and wellness types of products.
by other retailers. the area’s image (somewhere in DC They are high priced for sure but
area, I think). if you took the segment down just
sons are easily made, Whole Foods And remember the “boycott” talk to the organic side of the business
may suffer. But in private label and after (founder and chairman John) and compare apples to apples, they
regional brands, where comparisons Mackey’s Wall Street Journal op-ed are not any higher than the major
are more difficult, the Whole Foods piece on health care? It had no im- retailers that stock like items. In
environment carries the day. pact, and nobody remembers it. And most cases they do not have the same
The prevailing wisdom was, that was the second time Mackey items as most retailers so they cannot
“Whole Paycheck” would wither was a distraction — his chat-board be compared directly.
under the weight of the recession, but anonymous comments about the
the opposite has happened. GENIUS!! stock price episode also faded away.
Every product recall helps Whole On a note related to the brand,
Foods. Every crop shortage helps in my experience the store environ-
Whole Foods. Every food related ment is really distinct; if somebody
health scare helps Whole Foods. Peo- blindfolded you and led you into a
ple believe Whole Foods helps them Whole Foods, took the blindfold off,
live healthier, more fulfilled lives — you’d know what store you’re in im-
put a price on that, if you can. mediately. There is no Whole Foods
Is Whole Foods for everyone? No. where we live (Savannah, Ga.) but
But for a growing number of seniors, every time I visit one while traveling
active adults, and parents wanting to I’m impressed how consistently that
provide better alternatives for their store design/look/feel is executed.
kids, Whole Foods has become at
least part of the answer. IF THE CONSUMER WERE
A SEARCH ENGINE
‘A VERY STRONG BRAND’ Manufacturer:
Rob Walker, New York Times If the consumer were a search en-
Magazine contributing writer, gine, whenever one entered “natu-
and author of Buying In: ral/organic foods,” the item with the
Despite the “Whole Paycheck” rap it most hits by far would be Whole
sometimes gets, and other occasional Foods. I don’t think you could ask
criticisms, I think it is a very, very for more as a niche retailer. There’s
strong brand. In general it’s perceived a lot to be said for knowing who you
as being a far bigger chain than it are and having been able to com- When Whole Foods won’t stock items
actually is. I remember reading at municate that to the customer well with certain ingredients, the refusal has a
least one article about a neighbor- enough that they clearly know who ripple effect on the entire ‘healthy foods’
hood group trying to get Whole you are also. supply chain, says a competitor.

24 www.fdbuyer.com APRIL 2011


‘TOO DECENTRALIZED’ ‘BE CAREFUL ON own brands well, for Whole Foods
Manufacturer: ANIMAL WELFARE’ outside the store and 365 inside the
We find them challenging to work Manufacturer: store. I agree with everything others
with as they are very decentral- They are internally managing their have said. You’ve got a terrifically ac-
ized, have a lot of different dairy new animal welfare program with curate portrait here. I’d emphasize,
distributors (versus just one or two) supplier input to guidelines rather however, the comments made about
and distribution centers typically than having independent third-party the difficulties presented by their
have a small number of stores. All audits based upon a scientific advi- regional decision making.
this makes achieving minimums on sory board. They should be cautious
specialty items difficult. The decen- about how they handle this program. ‘CHANGED HOW WE
tralization and multiple distributors RUN OUR BUSINESS’
make achieving consistent pricing ‘THEY GIVE Alicia DePatsy, marketing
and distribution tough. CONSUMERS VALUE’ director, Pineland Farms
If they ever get enough mass per David J. Livingston, DLJ Natural Meats,
distribution center to buy more items Research, Waukesha, Wis.: New Gloucester, Me.:
direct and thus become more cost- Whole Foods always seems to find First I would like to say that person-
competitive, they could really be- a way to make consumers want to ally, Whole Foods has changed the
come a force that traditional grocers spend more money. However they way I buy groceries for my family.
need to worry about. are obviously giving the consumers Professionally, it has changed how
I have never seen so much em- value for their money. Otherwise we run our business. Education
ployee loyalty and their enthusiasm they would not be doing so well. I’m and consumer awareness for how
seems to run off on their consum- impressed with their sales per square to shop smarter and eat healthier
ers, driving amazing loyalty among foot and with their site selection. You is at the forefront of their business
those who can afford or are willing to can’t accuse them of over-expanding. model — especially knowing where
spend extra to shop there. They have grown slowly and me- your food comes from and how it’s
thodically. During the recession they raised, grown and transported to
‘THE INDUSTRY CADILLAC carefully backed off but now it seems Whole Foods. This constantly con-
(OR LEXUS?)’ they are right back on track. nects the consumer to the products
Broker: in the store.
Whole Foods is the Cadillac (or ‘PREMIUM NICHE Unlike other large retailers, it’s not
maybe now it would be the Acura POWERHOUSE’ confusing to walk into the store and
or Lexus of Supermarket Class of Manufacturer: find the “healthy” products because
trade). Their stores are magnificent Whole Foods is a premium niche the consumer knows and trusts that
examples of “feels good for your powerhouse. They’ve built their Whole Foods has investigated, tested
grocery shopping.” They give a and stands behind its vendors.
consumer a feeling of confi- In some regions they also have
dence that you are doing the Vendor All Access shows where
right thing for you and your they invite vendors to come and
family. display their products for em-
They have also embraced the ployees of Whole Foods Market.
concept of “keeping it local” The average Whole Foods em-
by knowing and dealing with ployee is energetic, helpful and
the community their stores are well informed about products
located in. Whole Foods will and the mission of the Whole
work with local vendors to be Foods Market shopper experi-
sure they make the consumer ence. Each store has its own
feel like Whole Foods is the lo- marketing coordinator who in
cal grocer. turn works within that immedi-
The Whole Foods associ- ate community connecting the
ates are very knowledgeable on consumer to products, causes
the products they sell and why and the locality of where their
you should buy them. They food comes from. Each buyer
definitely show loyalty to the we deal with is 110% invested in
company and what it stands “who we are” as a company and
for, and are very down to “how we raise/grow our prod-
earth, making consumers feel ucts”. These buyers often visit
Whole Foods’ prices aren’t any higher than the major
at home while shopping. retailers that stock the same items, says a manufacturer. the farms, talk to producers, see

26 www.fdbuyer.com APRIL 2011


the animals and totally subscribe to
the GAP mission. They even offer
grants for local farmers. It’s a class
act through and through!

‘THEY WON TRUST


& RESPECT’
Mona Doyle, The Consumer
Network, Philadelphia:
Whole Foods won the trust and
respect of consumer thought leaders
primarily by refusing to carry soft One thing to note about store lo- Whole Foods is rarely out of stock on
drinks. For many years, consumers cations — Whole Foods has been in items important to their customers, says
who found out that soft drinks were urban areas for a long time. We are Mona Doyle.
the biggest sellers in most supermar- just now seeing other retailers re-
kets were shocked into thinking that entering the “food deserts.” It will be everything in between all joined
something was wrong with the way interesting to see how they compete. together under the common goal of
Americans shopped. finding a healthier, more delicious
Shopping at Whole Foods was a ‘THE RIGHT LEVERS’ way of life? They successfully tackled
way to change that, to make the kind Doug Adams, president, the monumental task of raising our
of change that millions of consum- Prime Consulting Group, awareness about impact of the deci-
ers want (and still find difficult) to Bannockburn, Ill.: sions we make every day.
make. The fact that many millions of News stories about product recalls, What I find most fascinating
consumers are making that choice is crop safety, organic and even obesity about Whole Foods is the how
confirmed by the news that Subway help Whole Foods. They are asso- they have changed their customer’s
store locations have surpassed Mc- ciated with all things wholesome, perception of value. A traditional
Donald store locations. healthy and natural. They have grocery store is going to have a hard
There are two other things that strong loyalty from their core and time selling Gala Apples at $2.99
shoppers tell me set Whole Foods for the less loyal they are the store a pound, but WFM can get that
apart from many supermarkets. One where you ‘treat’ yourself. A good price by telling the story behind the
is that they are rarely out of stock on friend of mine, who runs a large di- apples. Grown locally, free from pes-
items that are important to their cus- vision of a very well respected grocer ticides, and, to top it all off, you get
tomers. Another is that they are very once said, “Price is the lever I pull to see a picture of the farmer and his
good operators with stores that are when I can’t get anything else right.” or her family. And, if you are there
almost always squeaky clean — they Well Whole Foods has figured out at the right time, you get to meet the
pay close attention to the aesthetics other marketing levers. producer sampling their product in
of their merchandising. Produce at Selection is not the largest, but it’s the store. The “theatre” of shopping
Whole Foods may be pricey, but it plenty in the right categories. Ever at Whole Foods has a value, and
almost always is a pleasure to look at. been in a Whole Foods with a large their customers are willing to pay.
salad bar at lunch time? It’s as busy Will Whole Foods be a victim
‘SOLID CORE OF as a good McDonald’s! They staff of its own success, educating its
EMISSARIES’ extra registers to speed you to a very customers right back to the local
Dan Raftery, president, Raftery tasty lunch of your choosing. Across farmer’s market and natural food
Resource Network, Antioch, Ill.: some of the perimeter departments co-operative? Or, will the giants of
I interviewed several Whole Foods there is a good bit of mystery and the grocery retail industry figure out
store managers a few years ago discovery (i.e. fresh baked bread, how to recapture their lost custom-
and came away impressed with the deli, sushi bar and salad bar). It’s not ers, realizing not all will respond to
amount of autonomy they have and prepared — it’s fresh. the blunt instrument of low price
the way that they focus on the neigh- but to the elusive concept of “ex-
borhood. I believe that they operate ‘THEY MAINSTREAMED perience?” Will natural, specialty,
as neighborhood stores as well as any NATURAL’ and organic products become so
retailer and better than most. Manufacturer: ubiquitous that there will no longer
The Whole Foods employee is the Whole Foods Markets has taken be a need for specialization? Maybe
best Whole Foods customer, which natural products from the small, lo- Whole Foods will continue to inno-
means a solid core of emissaries. cal co-operative grocer to the main- vate to forever capture the imagina-
Best Buy and Apple are other retail- stream. Where else do you see soccer tion and delight of folks looking to
ers where the demographics of the moms, foodies, Goth kids, lawyers, check grocery shopping off their
staff and best customers match. college professors, and, frankly, weekend list of “to do’s.” n

28 www.fdbuyer.com APRIL 2011


s
u l ate d
n g rat Name
o
h e f C Being ar!
o o r C s on he Ye
d od ft
Tan le Fo iler o
o a
Wh Ret

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.

30 www.fdbuyer.com APRIL 2011


Some 39% of Whole Foods shoppers — 7. LOCATION my mind all of the others above do a
33 percentage points above the average Average 71.1% really good job in these departments.
— say unique products are important Walmart 69.0% Perhaps it’s worth mentioning that a
in their choice of where to shop. Kroger 83.8% fair number of Whole Foods shoppers
Publix 83.5% are likely to be vegetarians, or vegetar-
6. TRUSTWORTHY RETAILER Wegmans 69.2% ian wanna-be’s. Those folk are likely to
Average 21.0% Whole Foods 32.4% care a lot less than average about meat
Walmart 15.1% WF gap vs. avg 38.7 and seafood departments.
Kroger 24.2% Whole Foods stands kind of alone here.
Publix 39.6% For most retailers, having a convenient 9. SERVICE
Wegmans 53.1% location is a big deal to shoppers. But Average 28.6%
Whole Foods 35.8% Whole Foods customers don’t see it Walmart 17.3%
WF gap vs. avg 14.8 that way. What I take from this: Whole Kroger 33.4%
My initial reaction on seeing these Foods shoppers are very loyal, and find Publix 58.5%
numbers was to be somewhat upset other unique attributes so much more Wegmans 61.6%
that Whole Foods didn’t get a higher important that they don’t mind having Whole Foods 30.8%
score. For many years, I’ve held the to drive out of their way to get to one of WF gap vs. avg 2.2
chain up as an example of trustwor- the stores. One of the first things that comes to
thiness — very much the consumer mind when you think of Wegmans
advocate. But then I remembered 8. MEAT/SEAFOOD DEPARTMENT or Publix is service. Sure, service at
that this data is just a listing of what Average 24.6% Whole Foods is good, but it’s not
customers of different retailers see as Walmart 17.3% what really differentiates the chain.
important in their own store selection. Kroger 27.2% Shoppers at Whole Foods care a bit
In other words, it’s not a ranking of Publix 34.3% more about service than the national
“most trustworthy.” So, Whole Foods Wegmans 53.0% average, but they don’t see service as a
shoppers just see other attributes as Whole Foods 30.9% prime reason to shop there.
more important in their store selec- WF gap vs. avg 6.3
tion. Perhaps they take it for granted Here, Whole Foods is much closer to
that Whole Foods is trustworthy. I do. the average. Nobody will be surprised
at the number for Walmart, but to

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10. KNOWLEDGEABLE EMPLOYEES I knew this would come up. Okay, as AND CUSTOMER LOYALTY?
Average 11.1% you can see, price is NOT one of the We all know that Whole Foods shop-
Walmart 5.5% prime reasons people shop at Whole pers are extremely loyal, but there’s one
Kroger 14.2% Foods. But despite all the jokes (you final set of numbers not yet cited here.
Publix 27.4% know which one, but I thought I’d give That’s the Net Promoter Score (NPS).
Wegmans 38.4% John Mackey a break this time) Whole Respondents were asked to rate, on
Whole Foods 20.4% Foods’ prices are a lot more in line a scale from 0 (not at all likely) to 10
WF gap vs. avg 9.3 with competition the past year or so. (extremely likely), the probability they
It’s a pretty sad statement that only But I don’t expect them to get credit would recommend their store of choice
11.1% of all shoppers surveyed said that for that for awhile, and I do expect to friends.
having knowledgeable employees was you’re going to think I’ve swallowed the 10 and 9 responses indicate Promot-
among the key reasons they chose their Whole Foods Kool-Aid for saying that. ers, 8 and 7 responses are Passives and
store. My guess is that a lot of people Whatever. 0 through 6 are Detractors. The NPS is
have just given up on the idea. This at- calculated by subtracting the percent-
tribute is quite important to Wegmans WHAT ABOUT FREEBIES? age of Detractors from the percentage
and Publix shoppers, and a little less so Whole Foods doesn’t have double of Promoters.
for Whole Foods shoppers. As noted, coupons, gas rewards, or a frequent Here’s how it all worked out for the
quality, selection, and availability of shopper card. So its shoppers obviously stores listed here, along with the aver-
organic and whole foods is most impor- don’t say they shop at Whole Foods age score. For what it’s worth, Whole
tant to them. because of them. Shoppers at Kroger Foods’ net promoter score of 80.3 is
and Wegmans see the loyalty card as extremely high.
a big deal, and no wonder, considering
HEY! WHAT ABOUT PRICE? how well those retailers make use of Average 29.9%
Average 74.5% them. Interestingly, 1.7% of Walmart Walmart 24.5%
Walmart 92.6% shoppers said one reason they shop Kroger 35.4%
Kroger 81.3% Walmart is because of its frequent Publix 58.3%
Publix 61.8% shopper card. I’ll have to tell the boys Wegmans 71.5%
Wegmans 68.7% in Bentonville about this, as I bet they Whole Foods 80.3%
Whole Foods 13.3% didn’t know Walmart even has a fre- WF gap vs. avg 50.4
WF gap vs. avg 61.2 quent shopper program.

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(1) Source: IRI, Dollar Sales, Total U.S. Supermarkets, 52 w/e 12/5/10 vs. 52 w/e 1/2/00, Frozen Mexican Food Brands
(2) Source: IRI, Dollar Sales, Total U.S. Supermarkets, 52 w/e 12/5/10, Frozen Mexican Food Brands (Premium Burritos/Chimichangas exclude low-priced burritos with retail prices below $0.15/ounce) © 2011 Windsor Foods
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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

BOUNCE a better-for-you nutritional


profile, says Tracey Parsons,

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.

36 www.fdbuyer.com APRIL 2011


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ALL E xt r ao r d i n a ry Ta s t e
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26oz. Sweet Chili Chicken Tempura Nuggets.

Before

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SPOTLIGHT: SNACKS & APPIES

entrees under the Ling Ling this mentality to home living,”


and Tai Pei labels. says Adams.
“We are excited about this Cuisine Innovations recently
strategic transaction, which introduced kosher assorted gour-
expands our presence in the met snacks in a 48-count pack-
Asian frozen food market,” age under its Cohen’s brand and
says Greg Geib, CEO of Wind- a 32-count non-kosher package
sor Foods. under its Simply Cuisine brand.
Laura Grenmyr, brand Ric Alvarez, president and
manager, Kahiki Foods, Inc. CEO, Frozen Specialties, Inc.
(www.kahiki.com), Gahanna, (www.frozenspecialties.com),
Ohio, encourages retailers Holland, Ohio, says that con-
to consider Asian doors to sumers are looking for foods that
cross-merchandise Asian-style Kahiki recently will satisfy their hunger until their
snacks such as spring rolls launched spring roll bites in two next regular meal and foods that
and egg rolls with Asian sin- flavors — chicken and buffalo-style chicken. they can enjoy when they relax and
gle- and multi-serve entrees. have fun.
The company recently intro- begun to merchandise frozen ap-
duced spring roll bites in two flavors petizers/snacks accordingly. “Instead ONE-STOP SOLUTION
— chicken and buffalo-style chicken. of focusing on party items for the Because retailers have so many prod-
“Ideas often filter down from holidays, retailers have begun focus- uct options they are strategically
restaurants to retail and consumers ing on appetizers/snacks that can be working with their customers to be
are open to foods they are seeing sold year-round as meal alternatives viewed as their one-stop solution
in their favorite restaurants,” says or meal solutions,” he says. for frozen appetizers and snacks,
Honey Konicoff, vp-marketing, Phil- Many consumers have opted for says Alvarez. Some of the ways that
lips Foods, Inc. (www.phillipsfoods. small gatherings rather than large retailers are doing this is by reduc-
com), Baltimore. get-togethers, ing duplication in the category,
“Flatbreads are maintaining proper segment space
a perfect exam-
‘Retailers have begun according Michele Ad-
to
allocation, remaining committed
ple of this — a focusing on appetizers ams, marketing to long-term private brand develop-
product that has director, Cuisine ment, and driving category aware-
been proven in
/snacks that can be Innovations LLC ness and profitability by promoting
restaurants across sold year-round as (www.cuisinein- products during times of increased
the country. It is novations.com), purchases, such as “March Madness”
invading the gro-
meal alternatives.’ Lakewood, N.J. and the Super Bowl.
cery stores now in “The traditional Frozen Specialties recently in-
many departments from pizza to the 100-count assortments that cost troduced three Mr. P’s Pizza Bites:
bread aisle and now to seafood,” she $17.99+ are not only expensive but cheese, combination (sausage and
notes. Phillips launched three sea- too many pieces for today’s party pepperoni), and pepperoni, as well
food flatbread varieties in February size. As a result, the lower-price, as two new private label Pizza Bites
— bourbon BBQ shrimp, Chesapeake smaller-count assort- flavors — nacho jalap-
crab, and asiago and artichoke crab. ments are more attrac-
tive,” she says.
DOWNSIZING TREND “Retailers should
“Small plates continue to be popular position appetizers as
in foodservice settings and consum- a fourth meal or any-
ers are looking for the same type of time food. The younger
variety at home, instead of a large generation has shifted to
meal consisting of an entree and a grazing style of eating.
side items,” says Chris Collias, CEO, At the same time, small
Goodwives Hors D’Oeuvres (www. bite-size versions appeal
goodwives.com), Wilmington, Mass. to lone diners and couples. There is Three
Collias believes that retailers are a fine line between appetizers and seafood flat-
recognizing the shift towards small entrees. Today’s consumers eat ap- bread varieties debuted
plates and smaller meals and have petizers as meals and have adapted from Phillips in February.

38 www.fdbuyer.com APRIL 2011


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SPOTLIGHT: SNACKS & APPIES

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
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RE
MA

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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.

CATEGORY $ SALES % CHG UNIT SALES % CHG VOLUME % CHG

TOTAL CATEGORY $271,503,800 (2.16) 75,289,840 (2.61) 72,009,150 (0.94)

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)

PRETZELS SUB-CATEGORY $11,653,900 (2.32) 4,580,309 (0.07) 3,805,285 (3.95)

BREADED VEGETABLES SUB-CATEGORY $4,718,870 (2.37) 1,608,389 (1.55) 2,116,851 1.12

Congratulations Whole Foods


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SPOTLIGHT: ICE CREAM

‘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

42 www.fdbuyer.com APRIL 2011


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SPOTLIGHT: ICE CREAM

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.

44 www.fdbuyer.com APRIL 2011


SPOTLIGHT: ICE CREAM

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

GROWTH “Spoonable Desserts.” attributed to consumers’ interest


in eating better. Compared to ice

AHEAD FOR NOT ENOUGH DIFFERENCE


Mintel warns that branded compa-
cream, frozen yogurt allows them
to do this while still enjoying an ice

ICE CREAM nies must be wary of private label


trial, since “Oftentimes, shoppers
do not see a big enough difference
cream-like taste experience. Also,
younger consumers grew up with
refrigerated yogurt, which makes
Yes, growth will be steady, but it between the two and will stick with them more comfortable with the
will also be slow. Frozen yogurt, private label even after the economy idea of frozen yogurt than older
sorbets and sherbet will show improves. Contributing to this is shoppers,” Mintel explains.
faster growth, Mintel says. the fact that private label has more While sorbets, sherbets and ices

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

PUBLIC AUCTIONTUESDAY MAY 3, 2011, 10 AM SHARP


107 drums (23,764 pounds) of wild blueberries (field run)
135 drums (62,006 pounds) of blueberry syrup
129 drums (50,504 pounds) of blueberry puree
119 drums (29,393 pounds) of cranberry pomace puree
2,034 drums (742,355 pounds) of cherry puree
(CERTIFICATES OF ANALYSIS WILL BE AVAILABLE UPON REQUEST)

AUCTION WILL BE HELD AT:


HOLLEY COLD STORAGE FRUIT & PRODUCE CO., INC.
16677 ROUTE 31, HOLLEY, NY 14470
AUCTION WILL BE ADMINISTERED BY, AND INFORMATION AVAILABLE AT:
SCOTT PERRY & COMPANY, 2019 RIVER RD, NIAGARA FALLS, NY 14304 -PHONE 716-283-7653

48 www.fdbuyer.com APRIL 2011


ICE CREAM SALES & FORECAST
Total U.S. sales of ice cream, 2006-15, in food/drug/mass
channels, excluding Walmart.*
Year Sales % Chg Index

2006 5,714 1.8 101
2007 5,693 -0.4 101
2008 5,812 2.1 103
2009 5,839 0.5 104
2010 (est.) 5,632 -3.5 100
2011 (fore.) 5,668 0.6 101
2012 (fore.) 5,718 0.9 102
2013 (fore.) 5,767 0.8 102
2014 (fore.) 5,813 0.8 103
2015 (fore.) 5,862 0.8 104

SOURCE: Mintel/based on SymphonyIRI Group InfoScan® Reviews;


U.S. Census Bureau, Economic Census
*Sales are at current prices, in millions of dollars. % Change is versus
the prior year. Index is based on the year 2010, where 2010 is 100.

YOGURT SALES AND FORECAST


Total U.S. sales of frozen yogurt, 2006-15, in food/drug/
mass channels, excluding Walmart.*
Year Sales % Chg Index

2006 241 1.9 82
2007 259 7.3 88
2008 284 9.8 97
2009 291 2.2 99
2010 (est.) 294 1.2 100
2011 (fore.) 308 4.7 105
2012 (fore.) 322 4.5 109
2013 (fore.) 336 4.4 114
2014 (fore.) 350 4.2 119
2015 (fore.) 364 4.1 124

SOURCE: Mintel/based on SymphonyIRI Group InfoScan® Reviews;


U.S. Census Bureau, Economic Census
*Sales are at current prices, in millions of dollars. % Change is versus
the prior year. Index is based on the year 2010, where 2010 is 100.

SORBET, SHERBET & ICES SALES


AND FORECAST
Total U.S. sales of sorbet, sherbet and ices, 2006-15, in food/
drug/mass channels, excluding Walmart.*
Year Sales % Chg Index

2006 257 2.1 99
2007 259 0.7 99
2008 267 3.2 102
2009 268 0.4 103
2010 (est.) 261 -2.7 100
2011 (fore.) 265 1.4 101
2012 (fore.) 270 2.0 103
2013 (fore.) 275 1.9 105
2014 (fore.) 280 1.8 107
2015 (fore.) 285 1.8 109

SOURCE: Mintel/based on SymphonyIRI Group InfoScan® Reviews;


U.S. Census Bureau, Economic Census
*Sales are at current prices, in millions of dollars. % Change is versus
the prior year. Index is based on the year 2010, where 2010 is 100.
SPOTLIGHT: BREAKFASTS

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

10.625 " Live


Chicago-based the-board increases Downer’s Grove, Ill.-based Sara Lee.
Mintel International, increasingly seek- in merchandising But consumers want more than just
dollar sales of frozen ing out products support, as manufac- protein, he continues, citing growing
and refrigerated that are high in turers fight to hang demand for a wide array of better-

10.875 " Trim


breakfast entreés on to share points for-you attributes, from reduced fat
and sandwiches protein, providing wrestled from Kel- and calories to added fiber and other
jumped 8.1% across a better start to logg’s over the past essential nutrients.
channels last year, their day.’ year. One to watch: To meet that need, the com-

11.125 " Bleed


to more than $800 Orrville, Ohio-based pany introduced the better-for-you
million. However, J.M. Smuckers’ new D-Lights sub-brand in 2007, and
the research company expects some Snack’n Waffles (www.smuckers. it continues to expand at double-
deceleration between 2011 and 2015, com), a pre-sweetened product — digit rates. The newest addition, the
as competition from foodservice no syrup required — whose sales D-Lights Ham Bowl, contains just
operators, particularly fast feeders, jumped 1,688.1% off a small base 220 calories and 7 grams of fat plus
heats up. Thus far, however, there’s over the past 12 weeks. a whopping 21 grams of protein
little evidence of a slowdown. While the top half of the break- per serving.
According to Chicago-based fast category outperformed the rest This past summer, continues
market research firm SymphonyIRI of the department over the past 12 Moore, Jimmy Dean rolled out yet
Group, frozen breakfast dollars in weeks, the mostly meatless bottom another sub-brand, kid-friendly Jim-
U.S. supermar- half didn’t fare nearly as well. Frozen my D’s, that combines wholesome
kets shot up Other Breakfast Food, turkey sausage with French toast
10.4% during the dominated by Pillsbury and pancakes. Ready to eat in less
12 weeks ending Toaster Strudel and than two minutes, all four varieties
Feb. 20. Led by Toaster Scrambles, contain 230 or fewer calories and 7
the subcategory’s saw its sales fall 5.5% or more grams of protein.
No. 1 and No. 2 while the Frozen Bagel
brands, Jimmy segment posted a BETTER-FOR-YOU
Dean and Jimmy 27.5% decline. Only the The better-for-you trend is also be-
Dean D-Lights, Vitamuffin-controlled ing felt in the frozen waffle category,
the handheld Frozen Muffin sub- where consumers are focusing on
segment posted a category generated any “broad health and wellness con-
14.6% gain, while good news, registering a cerns,” not just weight loss, reports
the Breakfast Items from Jimmy Dean have 22.4% jump. Michael Hunter, vp of frozen food
Entree sector saw helped drive serious gains in the Why the shift away sales strategy at the Kellogg Co.,
sales advance frozen breakfast category. from bread-based break- Battle Creek, Mich. (www.leggomy-

50 www.fdbuyer.com APRIL 2011


e w !

®, TM, © 2011 Kellogg NA Co.


®

Now a deliciously
different way to waffle.

Celebrating
75 years!

SERVING
SUGGESTION
Serving Size
One Waffle

Ask your Eggo® product representative about our in-store programs.


SPOTLIGHT: BREAKFASTS

eggo.com). To complement its Eggo (www.finagleabagel.com). Ac-


Nutrigrain lineup, whose sales shot cording to owner and president
up 118.0% over the past 12 weeks, Laura Trust, “Our product is
says Hunter, Kellogg recently debuted a true hand-boiled and baked
two flavors of Eggo FiberPlus Waffles, bagel that will appeal not only
which offer 35% the daily recom- to the (frozen bagel) customer
Kellogg recently debuted Eggo FiberPlus Waffles in
mended value of fiber plus either cal- but also to consumers who buy Buttermilk and Chocolate Chip varieties.
cium (Buttermilk) or key antioxidants fresh bagels at their local bagel
(Chocolate Chip). To help promote shop or in the bakery.” But, she products by type or need (better-for-
the new items and celebrate Eggo’s admits, it won’t be an easy sell. you, kid-friendly, etc.) and then brand
75th birthday, he adds, the company “Nothing new has happened in blocking within those segments.
is planning its first new television ads the frozen bagel category for a very But first you’ve got to get consum-
in three years. long time,” she explains, adding that ers to visit the frozen food aisle in
Another key trend driving product many buyers have called the segment the first place. To make the frozen
development efforts is the continu- “stale.” But she’s confident that an department a “destination,” says
ation of a recession-era shift toward all-natural, premium-quality product Moore, retailers can utilize second-
eating at home, says Hunter. “While like Finagle a Bagel can do for the ary displays, cross-promotion and
they’re not going to restaurants,” he category what high-end brands like in-store demos (a great way to dispel
continues, “consumers still want full- DiGiorno and Freschetta did for the the notion that microwaveable frozen
flavor, restaurant-quality meal op- flagging frozen pizza segment years foods don’t taste as good as fresh) to
tions.” As a result, Kellogg’s recently ago. “It’s not about price,” she adds. drive shoppers to frozen breakfasts.
introduced Eggo Thick and Fluffy “It’s about quality.” One particularly effective strategy
Waffles, which more closely approxi- is tying frozen breakfast to comple-
mate the type of waffles shoppers ONLY 41 SECONDS! mentary products in more heavily
enjoy at their favorite eateries. On average, says Jimmy Dean’s trafficked areas of the store that are
Another frozen breakfast manu- Moore, consumers spend only about aimed at the same target consumer
facturer hoping to grab sales from the 41 seconds in front of the chilly (higher-income, suburban families
foodservice side, which Mintel says frozen breakfast door vs. 58 seconds with kids headed by working moms).
“will become a more serious competi- in other, more temperate areas of the For example, he reports, “We includ-
tive threat to (frozen food) manufac- supermarket. Since the window of ed a small advertising piece on gal-
turers...as the economy improves,” is opportunity is small, he continues, lons of milk highlighting our Jimmy
SJB Bagel Makers of Boston, manu- it’s important to make the section as Dean breakfast products.”
facturer of the Finagle a Bagel brand easy as possible to shop by organizing Similarly, says Trust, several of
Finagle a Bagel’s customers are
FROZEN BREAKFASTS selling mixed-variety four-packs of
Supermarket sales for the 12 weeks ending Feb. 20, according to SymphonyIRI Group, the its thawed-out bagels via in-store
Chicago-based market research firm. Percent change is versus the like period a year ago. List bakeries where shoppers are much
includes only brands with at least $500,000 in sales during the most recent 12 weeks. Data is more likely to see them. Simple
for brand as originally trademarked, and may not include line extensions.
signage directing consumers who
CATEGORY $ SALES % CHG UNIT SALES % CHG VOLUME % CHG liked the fresh version to the frozen
BREAKFAST FOOD $375,930,200 10.4 134,944,200 7.3 110,598,100 9.5 department for a longer shelf-life al-
ternative is all that’s needed to build
WAFFLES $130,798,900 27.0 53,547,360 22.9 45,334,740 26.3
awareness.
Kellogg’s Eggo $68,159,790 43.1 26,067,820 49.7 23,916,150 57.0
Private Label $25,951,240 (7.6) 12,784,850 (13.9) 10,955,610 (13.1) When they finally get to the frozen
Kellogg’s Nutri Grain Eggo $14,626,030 118.0 5,021,123 127.1 3,860,239 127.1 breakfast section, continues Kellogg’s
Aunt Jemima $7,608,324 (27.7) 4,369,284 (24.0) 3,365,271 (24.0) Hunter, consumers expect to find
Van’s $4,253,344 10.5 1,376,310 16.2 733,652 16.1 their favorite products in stock. As
Kellogg’s Eggo Minis $2,497,951 843.9 1,070,849 1,114.3 729,573 876.3
a result, retailers need to make sure
Van’s Organic $1,125,786 13.8 375,714 19.7 194,477 19.6
Krusteaz $901,854 14.7 303,836 1.5 281,809 13.9 they’re giving adequate space to the
Smuckers Snack’n Waffles $892,133 1,688.1 325,719 1,850.8 162,860 1,850.8 right products, a decision that should
Nature’s Path Flax Plus $622,796 62.3 204,058 71.8 95,662 71.8 be based as much on growth trends
BREAKFAST HANDHELD $95,542,500 14.6 23,533,060 13.2 21,810,040 15.6 as past sales. He concludes, “While
BREAKFAST ENTREES $90,752,220 2.7 33,520,210 (1.1) 25,643,510 (1.9) it’s important to have a wide variety…
OTHER BREAKFAST FOOD $40,552,480 (5.5) 17,090,950 (5.6) 12,190,230 (4.0) the freezer can become crowded
BAGELS $10,473,330 (27.5) 5,429,793 (26.9) 4,517,950 (25.7) if too many brands that don’t offer
MUFFINS $7,210,549 (7.8) 1,634,612 (9.6) 859,622 (16.7)
something unique in terms of taste,
EGG SUBSTITUTES $600,267 (3.8) 188,166 0.0 242,026 1.7
quality and quantity are offered.” n

52 www.fdbuyer.com APRIL 2011


• A ll N •

ARTI SAN BAGELS

L
S

A E
RT G
IS A N B A

CONTACT US AT: WWW.FINAGLEABAGEL.COM • 617-213-8428


SPOTLIGHT: PIZZA

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-

CHILLS turers,” reports Mary Brown, senior


director of the Freschetta business
anteed to sell for just $3.99 through
the remainder of 2011. And Malvern,

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.

F ueled by the recession and an ‘Frozen pizza is


leader DiGiorno com), “Soda displays
influx of higher-quality, pre- (www.digiorno. built near freezer cases
mium options that more closely com), which always on deal. and bundled with pizza
approximate restaurant fare, frozen recently debuted You don’t build would create the same
pizza expanded a whopping 26%
across channels from 2004 to 2009,
Pizza & Boneless
Wyngz and Pizza
a lot of loyalty pairing currently offered
by many pizzerias.”
according to a January 2010 study by & Cookies. that way.’ Even if products can’t
Chicago-based Mintel International. A new advertis- be merchandised to-
Over the past year, however, ing and social me- gether, adds Brad Sterl,
growth slowed as the economic re- dia campaign in support of Schwan’s founder and president of Pittsfield,
covery began to take hold and quick Red Baron brand (www.redbaron. N.H.-based Rustic Crust (www.
serve restaurants (QSRs) worked com) will highlight the hidden costs rusticcrust.com), they can still be
overtime to woo back consumers — hefty up-charges for additional cross-promoted. For example, his
lost to frozen. This year, it appears toppings, delivery fees, tips, etc. — company is looking to partner with a
their efforts are starting to pay off. In associated with delivery, “which bagged salad manufacturer for cross-
fact, reports Chicago-based market can turn a $5 or $6 pizza into a $14 promotion deals, and Spartanburg,
research firm SymphonyIRI Group, or $15 pizza pretty fast,” Brown S.C.-based Spartan Foods of America
frozen pizza dollar sales in super- reports. Scheduled to begin later this (www.mysticpizza.com), purveyor of
markets fell 4.9% month, the cam- the Mystic Pizza brand, is seeking a
to $742.8 million paign will also partner in the wine industry, accord-
during the 12 underscore differ- ing to Tom Baliker, founder and CEO.
weeks ended Feb. ences in product But pizza isn’t just for mealtimes.
20. Units dropped quality, including During the first week of March Mad-
by 7.2% and volume many chains’ use ness, many Safeway banners featured
sold with mer- of “pizza cheese” DiGiorno’s Pizza & Wyngz at $5.99,
chandising support while frozen plus two other new frozen snack
slipped 0.4 points brands like Red foods from Nestlé in a section of its
to 59.3%. Baron contain weekly flier titled “Game Day Party
only 100% real 3-Pointer: 3 new ways to score big
‘ROOT OF cheese. points at your next party.” And Read-
ALL EVIL?’ For their part, ing, Pa.-based Redner’s Markets had
Spouting slogans retailers are using a coupon for a free Red Baron pizza
like “Inspired pizza their store brands with the purchase of three 12-packs
comes from an to battle delivery of Pepsi and two bags of Doritos
oven, not a freezer,” products. Roches- or Tostitos. Many other retailers,
and “Frozen pizza Freschetta By-the-Slice comes with a ter, N.Y.-based including A&P-owned Superfresh,
is the root of all patented susceptor tray. Wegman’s is freez- Montvale, N.J., which included three

54 www.fdbuyer.com APRIL 2011


Still the hottest part of
the freezer case.

2010 Frozen Pizza * + 13. 2 %


GROWTH

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.

Visit us online at stockpalermos.com

© Palermo Villa Inc. 2011


*Source: Nielsen Total U.S. Food for the 52-weeks ending 12/25/10
SPOTLIGHT: PIZZA

ing to Brown, “Many people category average ($3.04 per unit).


are leaving frozen pizza (i.e. And the three top 10 brands with
becoming light or lapsed users) the lowest average price per unit,
because they no longer want including private label, all registered
only cheese, pepperoni and dollar sales losses.
meats. Instead, they’re spend-
ing their money in restaurants CUT ‘ME-TOO’S’
where they can get toppings To find room for new flavors, Brown
like chicken, shitake mush- suggests cutting duplicate items.
rooms and feta cheese.” During one recent store visit, “We
To help meet this demand, found ten pepperoni and cheese piz-
Schwan’s recently rolled out zas all from one brand,” she reports,
a Freschetta line under the noting that rationalizing SKUs in
Simply...Inspired sub-brand cases like this would help bring back
with flavors like Hawaiian “flavor seekers” who left the frozen
Style, Farmers Market Veggie, category in search of better selection.
Harvest Supreme, Southern Sterl believes it makes sense to mer-
BBQ Chicken and Rustic Pep- chandise premium items together
Palermo’s Hand Tossed Style pizza comes in six peroni Pomodoro. Freschetta so they can be found more easily by
flavors and features a ‘unique pizzeria-type crust.’ isn’t alone. Mystic Pizza plans shoppers seeking them. It would also
to add two distinctive new cut down on sticker shock if pizzas
different brands in a “Pizza Party flavors to its lineup, which costing, say, $12, weren’t merchan-
Headquarters” section of its weekly already includes both Mediterra- dised next to belly fillers.
flier, offered multiples pricing during nean and Buffalo Chicken varieties, A special area could also be
the same week. later this year. set aside for products ready in 15
To compete with pizzerias, Red Other manufacturers are carving minutes or less, adds Cokinos, citing
Baron introduced frozen slices more out a niche in the better-for-you seg- another of frozen pizza’s advantages
than a year ago. The concept caught ment, an area where many local pizza over delivery.
on among those who prefer slices to parlors fall short. Rustic Crust, for In terms of promotion, Sterl
“personal size” mini pizzas, lead- example, recently introduced its first prefers programs that promote trial
ing to the recent introduction of a vegan pizza. — sampling, high-value coupons,
similar product under Schwan’s Fre- SymphonyIRI figures suggest that BOGO offers, etc. — over simple
schetta label. Freschetta By-the-Slice increasingly confident consumers TPRs. Particularly with premium
comes with a patented susceptor tray are willing to shell out more money items that cost a little more, he
designed to deliver oven-baked taste for higher-end frozen pizzas. In fact, explains, it’s important to prove
from the microwave. both category leader DiGiorno and to consumers that the product is,
number-three brand Red Baron, indeed, worth the price. He adds,
PIZZERIA-TYPE CRUST two of only three top 10 brands to “The frozen pizza category is always
Another manufacturer going after post dollar sales gains over the past on deal. But you don’t build a lot of
the pizzeria customer is Milwau- 12 weeks, sell for more than the loyalty that way.” n
kee, Wis.-based Palermo’s (www.
palermospizza.com). It recently
introduced hand-tossed style frozen
FROZEN PIZZA
pizzas that boast a “unique, pizze- Supermarket sales for the 12 weeks ending Feb. 20, 2011, according to SymphonyIRI Group,
the Chicago-based market research firm. Percent change is versus the like period a year ago.
ria-type” crust, reports CEO and Data is for the brand as originally trademarked, and may not include line extensions.
president Giacomo Falluca. Available
in six flavors, the new addition to the CATEGORY $ SALES % CHG UNIT SALES % CHG VOLUME % CHG
“middle-thickness” segment, which FROZEN PIZZA $742,812,700 (4.9) 244,154,900 (7.2) 240,520,500 (4.2)
has been largely ignored by manu- Di Giorno $160,236,000 2.0 30,252,660 2.3 47,364,580 6.7
facturers focusing on the rapidly Private Label $68,803,460 (9.4) 28,323,430 (11.3) 27,455,570 (10.1)
expanding thin and ultra-thin sector, Red Baron $73,802,700 14.0 20,047,580 17.9 24,365,230 19.9
Tombstone $62,507,850 (10.2) 18,309,330 (7.2) 25,044,410 (7.2)
is more like what you can find at your Freschetta $39,946,810 (1.9) 7,558,889 (2.7) 10,609,060 (5.0)
local pizza parlor, he explains. Totino’s Party Pizza $37,714,590 (6.0) 28,913,190 (6.2) 18,864,420 (6.3)
New products featuring high-end Jack’s Original $32,145,010 3.4 12,182,630 3.9 12,996,860 3.8
toppings and sauces in unique com- Tony’s $28,224,930 (31.2) 14,373,600 (38.0) 12,043,140 (35.9)
binations are helping draw consum- California Pizza Kitchen $27,105,090 (23.9) 5,104,209 (24.8) 3,753,025 (29.8)
Stouffer’s $19,333,940 (1.4) 7,157,561 2.0 5,372,528 1.4
ers back to the freezer case. Accord-

56 www.fdbuyer.com APRIL 2011


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Organize Chaos Into
Merchandiser Increased Sales
Built-in manual Disheveled displays don't sell.
feed forwards Tame your unruly product areas with
and faces AMT ™ Merchandiser technology
product and improve sales
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Patents and
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onal
all Patents Pending

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with easy-facing manual feed...
AMT™
Adjustable Merchandising Tray
• Designed for yogurts, ice cream, instant
soup cups, tubs, bottles, and many other
difficult to organize products. Small size
adjusts from 211⁄16" to 35⁄16" wide for
4-6 ounce yogurt cups or similar products.
Large size adjusts from 4" to 45⁄8" for
pint, 11⁄2 pint and similar containers.
• Built-in manual feed allows trouble-free
forwarding and facing of products for
increased sales and profit.
• Trays lift out as a single unit with easy-grip
handles to allow quick re-stocking of dated
product or cleaning of shelves.
• Optional plain-paper label/sign holder
provides a protected home for product
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promotional opportunities.
• Two breakaways in 2" increments allow
easy shortening in the field. (Standard 22" MANUAL FEED
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• Durable, easy-clean plastic construction
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REAR LOADING ORGANIZE CHAOS, INCREASE SALES
shelving, table top, and specialty display.

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-

GOODS tion for over 10 years, so


consumers are familiar
with their quality, pricing and promo-
Mother’s Day, June
graduations, Fourth of
July, Thanksgiving, Christmas and
From time to time, we take a
look at brands doing particularly tion, Liggero adds. Recently, the com- New Year’s. “Of course the last quarter
well when the category as a pany came out with a new packaging is show-time for our items so we tend
whole is down. design, marketing programs and items to go with some marketing events such

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

FROZEN SWEET GOODS (NO CHEESECAKES)


Category sales in supermarkets for the 52 weeks ended Dec. market research firm. Percent change is versus the like period
26, 2010, according to SymphonyIRI Group, the Chicago-based a year ago.

PRODUCT $ SALES % CHG UNIT SALES % CHG UNIT PRICE


TOTAL SEGMENT $194,875,100 (9.8) 48,099,460 (12.4) $4.05
Sara Lee Butter Cake Regular 16 oz $13,089,760 (7.2) 2,874,465 (6.8) $4.55
Pepperidge Farm Three Layer Cake
Coconut Cake Regular 19.6 oz $11,503,250 (6.1) 3,479,555 (7.8) $3.31
Sara Lee Butter Cake Regular 10.75 oz $10,642,470 (11.5) 3,008,804 (12.6) $3.48
Pepperidge Farm Three Layer Cake Frozen
Chocolate Fudge Cake Reg 19.6 oz $9,671,961 (8.0) 2,889,591 (10.2) $3.68
Delizza Belgian Chocolate Pastry Regular 14.8 oz $9,551,500 17.0 1,881,591 20.7 $5.08
Pepperidge Farm Regular Pastry 12.5 oz $8,803,686 (5.8) 2,684,011 (9.1) $3.27
Delizza Belgian Pastry Regular 13.2 oz $7,357,829 12.0 1,455,200 15.9 $5.05
Pepperidge Farm Lemon Cake 19.6 oz $4,024,620 (17.8) 1,269,578 (19.3) $3.17
Mrs. Smith’s Peach Cobbler Regular 32 oz $3,859,777 (14.0) 823,723 (20.1) $4.69
Pepperidge Farm Three Layer Cake
Golden Cake Regular 19.6 oz $3,776,806 (9.2) 1,191,067 (6.6) $3.17

58 www.fdbuyer.com APRIL 2011


LO G I STICS

TECHNOLOGY RF bar code scanning, zoning in


the warehouse, computer directed

SPEEDS GAINS put-away, integration with transpor-


tation management systems and the
IN LOGISTICS movement toward paperless systems.
All-important recall systems have
become very advanced with on-hold
Rapidly advancing technology is capability to the SKU level through
helping logistics providers become customer online access 24/7. The
ever-more efficient. Here’s a look at timeliness is essential.
how leading-edge companies are put- Tippmann: One that comes to mind
ting it to good use. is the ability to effectively and effi-
BY DAN RAFTERY & WARREN ciently meet customer requirements.
THAYER As new customers are set up, each

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-

APRIL 2011 www.fdbuyer.com 61


LO G I STICS

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

62 www.fdbuyer.com APRIL 2011


What was your logistics company doing in 1923?
Our business was founded on these four principles, and
they have been the mainstay of our company ever since.

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

64 www.fdbuyer.com APRIL 2011


neat. They can be laser guided and cated fleets. Trailers can ‘Contractors, mate-
work completely on their own, like be started from a com-
rial handling and
a robot. The latest models of cross puter based on ambient
country trucks are amazing, big and temperatures, cool down IT companies are
shiny. They haul huge loads, maintain requirements and load- collaborating much
minus 20 degree F temperatures and ing times. It saves many more than in the
are equipped with high tech com- hours of yard manage- past.’ —Halpert
munications and gadgets includ- ment and is the data is
ing music and plasma TVs in mini captured and recorded for
bedrooms for the long haul. They are later reference.
truly home away from home. Henningsen: The completely au- on I can see this technology fit into
Tippmann: Crown just came out tomated warehouse the military is several of our applications, but the
with the new RM which is a Mono- experimenting with, utilizing robotic entry cost into this market is still
Lift Mast Reach Truck. The lift forklifts that are not only able to pick cost prohibitive — we expect it to
capacity on this truck is about 1,000 and put pallets in the warehouse, but come into play in the next several
pounds more to its highest level can also load and unload trucks with- years. The Unmanned MHE technol-
than forklifts of the past. For the out human oversight or control. ogy is also coming into its own and
forklift driver, it offers much bet- Also, fuel-saving technologies will offer up new ways to control
ter visibility and greatly improved such as wings for underneath the productivity, damages and work place
ergonomics. All of these things trailers, and battery-powered APUs injuries, and the unit can work round
combined make the forklift safer (Auxiliary Power Unit). the clock, 24/7. n
and easier to maneuver pallets. Westermann: We are looking at
Hendricksen: The coolest thing I hydrogen technology for our material Next month: Our roundtable partici-
have seen recently is the automated handling equipment, but the ROI to pants discuss ways to reduce use of
trailer cool down software for dedi- date has been too low. As time goes electricity in the cold chain.

21700 Barton Road, Colton, CA 92324 Phone: 909.433.3100 Fax: 909.433.3177


WWW.CASTLECOOKECOLD.COM
GETTING PERSONAL

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.

LOBSTERS! He loved to leave his office window


open and just talk to people out on
the street. And I remember he was a
How’d you get involved in
the lobster business?
Okay, so we mean Linda Lorraine very active Red Sox fan, and listened I’ve always had a strong interest
Bean, but that “other” L.L. Bean to all their games. By the time I was in agriculture, and now that I’m
happened to be her grandfather. knowledgeable about the business, living on the coast in a fishing vil-
Here’s a look at some of Linda’s he was fairly elderly — he died in lage, I’ve developed a big interest
memories, and her hopes for 1967 at the age of 94. in Maine lobster and the guys fish-
the future. ing in small boats. They don’t ask
Did you get to spend a the government for help, and they
BY WARREN THAYER lot of time with him? are the last bastion of rugged in-
Well, he loved family picnics, but dividualism as I see it in our state.
iked her famed grandfather, But the cost of just owning a boat
Linda Bean is an entrepreneur he was very busy all the time. It has gotten so high that many are
on a mission. wasn’t really common to do things
with him. He leaving the business. Maine has
Leon Leonwood a good and sustainable supply of
Bean founded his was always in
motion, and lobsters, but not enough demand.
iconic L.L. Bean I thought it would be wonderful to
company with the he had a big
booming voice. help them pass on their business
idea that people to their kids and grandchildren,
would appreciate I remember
he had a bevy but I knew we needed to develop
quality hunting the market for lobster.
boots that didn’t of assistants
leak. Linda in his office,
Lorraine Bean always typ- What steps are you taking?
believes people ing labels for
I’m trying to get more processing
will appreciate orders from
of lobster here in Maine rather
quality Maine lob- the mail order
than in Canada. The industry
ster meat if she business. He’d
needs to be vertically integrated
makes it easy to Linda Bean has plans to make had a tough
here, from the boat to the ta-
find, easy to eat Maine lobsters easy to find, easy life — he was
ble. We own and operate three
and affordable.
to eat and affordable. orphaned as a
wharves now, and have a process-
So in 2007 boy when both
ing plant in Rockland, Maine. We
she founded Linda Bean’s Perfect parents died within four days of
were the first to come out with a
Maine (www.lindabeansperfect- each other, so he and his brothers
Source Identification Tag Program,
maine.com) up in Port Clyde, and sisters were farmed out to dif-
which identifies the exact waters
Maine and went to work. Now ferent relatives.
where the lobsters were caught by
with restaurants and a retail line Maine fishermen using sustainable
of seafood that drew big crowds What were your early practices. People want to know
at the recent International Boston years like? where their seafood comes from
Seafood Show, her dream is work- I grew up in Freeport and Yar- and that it’s handled in ways they
ing its way into a reality — Wal- mouth, Maine, then went off to can trust. We’re working to bring
mart is already on her company’s Antioch College in Ohio and Maine lobster to people through
list of blue chip customers. majored in business administration. the grocery store, sandwich shops
We had a chat with Linda shortly I worked a job throughout college, and the Internet. n

66 www.fdbuyer.com APRIL 2011


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