Industry Trends
CONSUMERS SEE SUNDAY AS FOOD DAY: SURVEY
(Progressive Grocer)
According to 2010 Sunday in America, a survey from Parade magazine, the majority of Americans (64 percent) like Sunday the most of any day of the week — perhaps because of the opportunity it affords them to shop for, prepare and enjoy food.
A recent Progressive Grocer article says the survey found that Sunday is likely spent shopping for groceries (72 percent of respondents), cooking or preparing a meal (89 percent) and eating at home (breakfast, 91 percent; dinner, 86 percent). Additionally, 69 percent of respondents said they’re also apt to eat out at restaurants on Sunday, while 59 percent often have guests over.
Unsurprisingly, while women usually do more of the cooking than men (94 percent vs. 83 percent), men are almost as likely to shop for groceries (70 percent vs. 74 percent) or make trips to mass merchandiser/club stores (45 percent vs. 49 percent).
When they’re not shopping, cooking or eating on the first day of the week, Americans are making plans regarding food:
- Seventy-three percent of survey respondents say they plan which grocery items to purchase for the upcoming week
- Seventy-two percent of Americans read the Sunday newspaper on a weekly basis and consider it a major shopping resource
- Ninety-four percent search the paper for sales information in their communities
- Ninety-two percent depend on the publication for money-saving coupons
Minneapolis-based MORI Research conducted the survey in October 2009 among a nationwide sample of 1,266 respondents.
FARM TO SCHOOL PROGRAM HAS THIRD-GRADERS SCRAMBLING TO THE SALAD BAR
(The Christian Science Monitor)
The Christian Science Monitor indicates a national initiative supports schools' efforts to serve locally grown produce and educate students in sustainable ways of eating.
Sharon Elementary (Vermont) third and fourth graders know where the veggies in their soup come from because they've visited the farms. They know the nutritional value of the carrots, onions, and cabbage because they've studied them in class, and they know how they're grown because they've nurtured them in raised beds out back.
According to the article, the 105-student school is part of the National Farm to School Network, aimed at getting healthier meals into school cafeterias, teaching kids about agriculture and nutrition and supporting local farmers.
About 40 states have farm-to-school programs, but Vermont is a leader in incorporating all three missions into its programs. The state also has backed the farm-to-school effort with funding to help schools buy equipment to chop or process the local food and buy meat from a local farmer. What started as a handful of pilot programs has grown into 45 Vermont schools getting grants and about 60 with farm-to-school activities. The funding is expected to dry up next year with budget cuts.
The article notes that Sharon Elementary used its $13,500 grant to buy a potato chopper and a food processor, and also bought a salad bar, which has been a huge hit with the kids. The number of students buying hot lunch has jumped by 50 percent since the school added the salad bar, says Food Service Director LinAnn Perry. The salad bar is also used for tacos and stir-fries.
The students take part in lunch room taste tests to see what they like. Harvest soup, also known as cabbage soup, with and without beef, got rave reviews. The third and fourth graders who chopped up vegetables for the soup also tried to sell other kids on the meal. They hung up posters in the cafeteria that advertised the nutritional value and cancer-fighting properties of the ingredients, which they learned about that morning.
“The students are learning to eat healthier, and the focus on agriculture, local food and nutrition is paying off in the classroom,” says Principal Barrett Williams. “Kids are interested and teachers are given more diversity in the curriculum — they can work the food angle in science, reading and health classes.”
DIGITAL COUPON REDEMPTION VALUE BEATS NEWSPAPERS
(MediaPost)
A MediaPost article notes that according to statistics from Coupons.com, the Grocery iQ smartphone app grew 170% in value during 2009 to more than $858 million. By comparison, growth measures for newspaper coupon value last year ranged from 8% (per TNS Media Intelligence) to 16% (estimate from retail consultant Inmar.) The report notes that as a result, redemption values on its digital offering outstripped the increase in newspaper-based coupons by more than 10 to 1.
The company cited other research to underline the strong growth of the digital coupon sector in 2009. For example:
- Coupons/ rewards was the fifth fastest growing internet category last year, according to online metrics firm Nielsen.
- Google searches for the terms "printable coupons" and "online printable coupons" grew 186% and 178% respectively during the year.
- Yahoo said "coupons" ranked first on its list of economy-related search queries-followed by "unemployment", "stimulus plan", "cash for clunkers" and "student loans".
According to the article, internal data from Coupons.com found that ready-to-eat cereal was the most popular product category for digital coupons last year, by a wide margin, followed by yogurt, just as they were in 2008. But the rest of the coupon favorites list showed some shakeup. For instance, the previous year, salty snacks filled the third slot; this year sweet snacks took that honor, and the salt goods dropped to number five.
Also new to this year's list: refrigerated dough, nutritional snacks, condiments and pizza.
The report says the addition of non-CPG categories quick-service restaurants / casual dining and entertainment to the 2009 top list indicates a growing interest on the part of non-grocery brands in offering online discounts.
FOOD SHOPPERS WHO DON’T SPEND IT ALL
(The New York Times)
A New York Times article indicated that researchers have noticed that more than half of purchases are unplanned, but shoppers are still able to predict near-perfectly beforehand the amount they will spend. This comes from a new study, soon to be published in the Journal of Consumer Research, which examines this phenomenon.
According to the article, the study authors approached 175 people entering grocery stores, asking them what items they planned to buy and how much they planned to spend. The average shopper could name items totaling $41.11, but reported a total budget for the trip of $58.46, a near-perfect prediction of spending. That leaves $17.35 that was mentally committed to the shopping trip but not put aside for any particular item.
Karen M. Stilley, a postdoctoral fellow at the University of Pittsburgh’s business school, and one of the study’s authors, said that shoppers who looked in every aisle tended to use up this mental reserve; those who limited themselves to strictly needed aisles left some of the money unspent.
WHAT MAKES CONSUMERS TRY NEW PRODUCTS?
(Progressive Grocer)
According to a Progressive Grocer article, Market Force Information, Inc. conducted a New Brand Trial survey in January 2010 among its network of 300,000 independent mystery shoppers and merchandisers to see which new brands consumers preferred and why.
Those surveyed were asked what made them buy a new product in the categories studied (beverages, snacks, and cleaning products), four in 10 said “they saw it on the shelf or display.” Promotions such as coupons were mentioned as influencing factors by another three in 10. “Referrals by friends” was the next most popular reason behind new product purchases, while advertising was noted by just eight percent. (See the graph above for the breakout.) There were some differences by category: cereals were the most responsive to promotions and couponing, and snack purchases were influenced most by merchandising.
HEALTH AND WELLNESS PRODUCT DEVELOPMENT
(Prepared Foods)
According to a Prepared Foods article, the last year can certainly be heralded as a year of change. Significant transformations were felt by many, from the spiraling economy, to politics, to proposed healthcare reform, the environment and scientific advances, all of which can influence consumers’ outlook and decisions to purchase certain foods and beverages. While the country continues to recover from one of the most detrimental economic situations in decades, many consumers have embraced the idea of change, not as a choice, but out of necessity.
As such, the International Food Information Council (IFIC), as an organization that monitors food and nutrition trends, including changes in consumers’ perspectives, has observed some interesting shifts that may give insight into where the area of health and wellness is headed in the future.
Traditionally, having “good health” is about managing a disease or reducing the risk of developing a specific condition, or improving overall well-being. Functional foods, or foods that can provide benefits beyond basic nutrition, fit nicely into the “health and wellness” product category. Still, defining “health” has become rather hazy in the minds of many consumers today.
While it still holds true to tradition, the thinking behind what makes a food healthful appears to have expanded to now include factors ranging from environmental concerns (i.e., “How is my food grown?” and, “How does it make its way to point-of-purchase?”) to penny-pinching (i.e., “How can I save money for myself and future generations by taking control of my health today?”). This expanding definition of health may elicit exciting changes in how food products are developed.
According to the article, consumer research allows us to consider what consumers know today about foods and beverages that promote health, as well as the reported actions they are taking to make improvements to their diet. It also provides a glimpse into how products can be designed with greater consumer appeal. The latest edition of IFIC’s survey, released in August 2009, reflects more than a decade of insights evaluating consumer attitudes toward foods and food components that can promote health.
General Attitudes Toward Health
The majority of U.S. consumers remain confident they have a “great amount” of control over their health.
Food is Still First
A belief that foods can provide benefits remains part of mainstream consumer thinking.
A Strong Foundation from Which to Grow
The article states that many market researchers estimate the functional foods market in the billions. And consumer attitudes toward foods and beverages with added health and wellness benefits remain highly positive.
Americans Consuming Foods for Specific Health Conditions
Consumers were asked, on an aided basis, whether they are aware of certain food components, their corresponding food sources and their associated health benefits. The most recognizable food and health pairings continue to be those related to bone health, cardiovascular disease, cancer and benefits associated with fiber.
Inside the Aisles
The International Food Information Council Foundation Food & Health Survey, which has been conducted annually since 2006, sheds light on what consumers are looking for when they shop for health in the grocery store. The survey is designed to provide ongoing consumer insights into how consumers view nutrition and health, their efforts to improve their diet and their understanding of the various components of their diets.
Putting It All Together
Findings from these surveys suggest that Americans believe they have control over their health, and foods and beverages can have positive health impacts. They are most interested in foods and beverages that provide benefits associated with their top health concerns, including heart health and weight management.
Fresh Food Trends: ‘Food With Benefits’ Ranks Among 2010’s Top 10 Trends -- Industry
(Progressive Grocer)
The Food Channel (foodchannel.com) released its top 10 for ’10 at year’s end. Among the spotlighted trends seen recently in Progressive Grocer:
Keeping It Real
Today’s “real” refers to determining the essentials and stocking the pantry accordingly with “pure, simple, clean and sustainable” ingredients that make a deliberate shift from convenience foods to scratch cooking.
Experimentation Nation
New concepts around “fresh” and DIY (Do It Yourself) are expected to do well. Experimentation is a trend in and of itself, so it won’t be unusual to see concepts come and go, including those among grocers.
More in Store
Continued private label prominence is expected to continue, now that no-name generics have morphed into exclusive go-to brands.
American, The New Ethnic
A new “global flavor curve” is hitting its stride. Part comfort, part creativity, the latest flavors are coming from the great American melting pot.
Food Vetting
Sourcing or simply transparency about the origins of food, the need for further assurance that food is safe and pure will continue to intensify.
Mainstreaming Sustainability
According to The Food Channel, in 2010, we’ll see people and companies becoming sustainable for authentic reasons.
Food with Benefits
The trend toward beneficial foods is growing at a quick pace. Expect to see more nutrient-added and free-from products (gluten-free, allergy-free) making their way into the market.
I Want My Umami
Today’s foodies have settled into a more universal designation of one who loves and celebrates good food and experimentation and a willingness to try new things are on the rise.
Will Trade for Food
Bartering is expected to come into play with consumables.
I, Me, Mine
While sharing has come into its own in restaurant concepts, there’s a separate but equal trend toward individuality with small-batch cheeses, at-home meat smokers and homemade specialty desserts. Expect more attention to the individual, not just in portion size, but also in food that reflects personality.
KIDS LIKE VEGGIE CHOICES, BUT MAY NOT EAT THEM
(Reuters)
According to a Reuters article, offering young kids a vegetable choice at dinner may not prompt them to eat more of these healthy foods. This comes from a Dutch study.
Dr. Cees de Graaf, at Wageningen University in the Netherlands, and colleagues compared whether offering 4 to 6 year old children their choice of a vegetable before or at dinner, or no choice, might alter the amount of vegetable the kids actually ate.
The researchers first determined which of 8 commonly served vegetables (carrots, peas, cauliflower, broccoli, red cabbage, beets, French beans, and spinach) were favored by each of 156 boys and 147 girls attending Dutch primary school. Then, during a restaurant meal with their parent, 110 of the kids had a pre-meal choice between equal amounts of one of two vegetables they previously said was "okay" to eat. Another 97 had a similar choice as the meal was served, while 96 had no choice and simply found a vegetable of their liking on the plate.
According to a report in the American Journal of Clinical Nutrition, the researchers failed to see any noteworthy differences between the groups in veggie intake.
PERISHABLES SALES BOOMING AT RETAIL
(Marketing Daily)
After steadily shaking up consumer habits in the supermarket, the recession has produced some clear winners -- and research from Nielsen shows that most of them are on the edges of your local grocery store.
Stores’ perishable departments -- the bakery, fresh meat, deli and produce that line the perimeter -- are becoming more productive as consumers become used to eating out less, and focus more intently on the quality of the meals they prepare at home, says Jeff Gregori, VP of Nielsen’s solution consulting, based in New Jersey.
“With 46% of consumers saying that their families eat out less often, value-priced meals at retail are posting double-digit increases,” Gregori reports. “This ‘return to the home’ has been a common theme, frequently displayed in the last year. But with this research, what’s surprising was the movement of foods sold on the perimeter.”
“Among the many consumers who have cut down on dining out, there’s been a much greater awareness of what’s for dinner,” he says. “They are spending about 6% more in supermarkets and supercenters as a result, Food Network viewership is going through the roof, and online food research is up dramatically.” Smart retailers are also taking advantage of this new what-to-serve anxiety, with chains like Meijer and Whole Foods Market offering food-planning content through iPhones.
The article suggests that just because these shoppers are willing to pay extra for foods that are more convenient doesn’t mean they aren’t focused on getting them at a good price: Nielsen finds that 51% of meat and seafood is purchased when it’s on sale, and 41% of shoppers notice those prices in store circulars. And while supercenters and warehouse clubs have made a concerted effort to enhance their perishables, supermarkets are still stronger, with a 70% market share of meat and seafood, and 50% of deli business.
AFFLUENT SHOPPERS WILL PAY MORE FOR SAFE, HEALTHY FOOD: SURVEY
(Progressive Grocer)
According to a Progressive Grocer article, a new national survey (“Beyond Organic -- How Evolving Consumer Concerns Influence Food Purchases,) of more affluent consumers has found that most respondents are highly concerned about the safety of the food they buy and would pay more for food they believe to be safer or healthier. The research also found that assurances about what a food doesn’t contain, such as pesticides or antibiotics, matter a great deal to these consumers, along with ethical claims that reinforce quality and safety perceptions.
The article states that when asked to evaluate a range of food quality claims often found on food packages or at point of sale, respondents said that the claims they found most meaningful had to do with items not found in the foods, including pesticides, antibiotics, mercury and artificial hormones. Consumers rated claims such as “organic,” “free-range” and “grass fed” as less important. The survey didn’t ask about nutritional claims.
Other findings:
- 57 percent of respondents were “definitely” or “very concerned” about the safety of the U.S. food supply
- 39 percent of respondents were “slightly” or “somewhat” concerned
- Four percent of respondents had no concerns about food safety
- Ethical claims are also important, although, alone, they may not impel most shoppers to buy a food product
- 70 percent of respondents said that whether a company or brand acts ethically influences their decision to buy a product
48 percent said they stopped buying a brand when they found out the supplier acted in a way they deemed socially irresponsible or unethical
NPD Finds Moms' Eating Habits and Nutritional Knowledge Influences What Their Kids Eat
(Business Wire)
A news release on Business Wire indicates healthy eating is on the minds of many moms, but it's their eating habits and nutritional knowledge that have the most bearing on what their children eat, according to The NPD Group, a leading market research company. Recent NPD food industry market research finds that in households with kids, when the adult female has a good Healthy Eating Index (HEI), a measure of diet quality similar to federal dietary guidance, the majority of kids in the household are eating just as well.
According to the NPD report, "What's on the Minds of Moms and How Are They Coping," three-fourths of new moms and 65 percent of experienced moms say they actively seek out foods with nutrition benefits. The study finds, however, that moms are less likely to actually eat foods with nutrition benefits.
Moms also give themselves high marks when it comes to nutritional and healthy eating knowledge. The NPD study, reports that 67 percent of moms feel they are extremely or very knowledgeable about nutrition and eating, and 81 percent of moms feel they are the primary source for nutritional education for their children. Yet when moms are asked to assess their children's level of nutritional knowledge few ranked their children extremely or very knowledgeable, a little over half of children 6- to 17-years old were considered somewhat knowledgeable. One-fourth of moms considered their children 6- to 12-years old not very knowledgeable.
A NEW WORLD FOR GROCERY SHOPPERS
(Adweek)
Downturn or no downturn, people still need to eat, and supermarkets have not become retail ghost towns. But that's not to say the country's eating and grocery-shopping habits have been untouched by the economy. According to an Adweek article, in the grocery store as elsewhere, people have become more focused on getting the most mileage for their spending, with a whole shopping basket of consequences for this market.
In Search of Cheapness
Given the urgency they feel to economize at the supermarket, many people are looking askance at the prices they find there. In a Synovate report released in October 2009, based on July polling, 65 percent of U.S. respondents said they think grocery items are overpriced and should be cheaper. Seventy-eight percent agreed that they will switch food brands if they find a cheaper alternative. Such steps have included a broad-based shift toward private-label goods, reflected in the headline this summer on a Mintel report about Americans' supermarket habits: Private-label products not just for penny-pinchers.
Cooking is no Alternative
Harry Balzer, NPD's vice president and chief industry analyst says Americans have been microwaving their way through the recession. "Americans are eating in their homes," he says, "but they're microwaving, not cooking." He adds that the increase in microwaving was entirely in frozen foods and not in any use that would qualify for the term "cooking." According to the article, microwaving had been flat for the previous 20 years, but it surged last year as the recession prompted consumers to shift from takeout foods to less-expensive microwaveable products -- say, frozen pizza rather than pizzeria pizza.
Healthy Eating as Casualty
As The NPD Group puts it, healthier eating has been one of the big casualties of the recession. Price is an obvious factor, since, as Balzer notes, healthier foods tend to be more expensive. In any case, consumers' oft-proclaimed intention to pursue a healthier diet could be fragile. "I think they want to eat healthier, but they don't," he says. "We eat healthier versions of a food we shouldn't be eating at all," says Balzer.
That's in sync with the view of Mark Berry, Synovate's executive vice president of shopper-insights research. Mothers see themselves in a nurturing role for the household and want to provide healthy foods. But with the recession imposing financial constraints, their choices are influenced by the need to be efficient acquirers for the household, he says.
Convenience is still crucial to consumers, as increasing use of the microwave testifies. But the recession has elevated the relative importance of what things cost. "The investment of our money has become a little more important than the investment of our time," says Balzer.
Price is not the only Factor
While you'd expect the decline in restaurant dining to be somewhat offset by a rise in grocery purchases, a large minority of Synovate's U.S. respondents -- 39 percent -- said they've been spending less on food and other supermarket items than 12 months ago. On the simplest level, people may see that they've got plenty of food in the pantry and decide to use it up before buying more, Berry says: "I can use up what I have." Conversely, they may stock up in a fashion designed to economize: 58 percent said they "buy grocery items in bulk to help save money."
Above all, Berry says, "brands need to stress innovation. With many consumers thinking about price/value, marketers have to create impactful innovation more than ever." That dovetails with Balzer's observation that the downturn has not squelched consumers' interest in innovation in supermarket goods. "I don't think the recession has stopped us from wanting new and novel things," says Balzer, even if the bad economy has led marketers to cut back on new-product launches.
On to the Recovery
What further shifts can we expect to see in consumers' supermarket behavior when the economy finally recovers? The article points to a number of categories that suffered during the recession but could enjoy a reasonable recovery, including bagged salad, refrigerated foods/ready meals, organic/natural food and beverages, functional foods and premium-brand alcohol.
The aging of the U.S. population, meanwhile, portends growth for "better for you" foods, notes Balzer. "The health trend generally ends up centering around older consumers," he says. Older people are the ones who care about health, he says, so they'll drive the increase in use of healthy foods.
AT-HOME MEALS REMAIN POPULAR AMONG U.S. CONSUMERS
(The Gourmet Retailer)
An article by The Gourmet Retailer states the hot new dining spot for Americans continues to be their own kitchen, according to a survey released Tuesday by McIlhenny Company, parent company of Tabasco brand products. The study, conducted by Wakefield Research, found that more than a third (38.2 percent) of U.S. consumers changed their dining habits, now eating at home more, since the start of recession.
Survey findings:
- Over half (57.1 percent) said their dining habits haven't changed at all
- 3.9 percent say they now eat at home less
- Consumers most frequently reported preparing meals at home between four and seven nights of the week (83.2 percent)
- 16.4 percent eat at home zero to three nights per week
- The majority of consumers (89.5 percent) plan to continue their current level of at-home cooking after the economy recovers
According to the article, more time at home has likely produced greater interest in cooking and at-home entertaining and that brands that cater to these simple pleasures are likely to benefit.
But "Supermarket Guru" and columnist for The Gourmet Retailer and Progressive Grocer, Phil Lempert believes that the gain would be better attributed to recent improvements, such as fewer ingredients and better packaging, in food manufacturing. "I think that the food world has really stepped up very rapidly to produce better-quality products than they have just a short period of time ago," he said. "And I think people discovered that it's not as difficult as they thought (eating at home and preparing at home)."
The recession also seems to have reignited consumers' taste for certain food staples as well as new flavors. Respondents reported that since the start of the recession they are now consuming more of the following:
- meat (39.2 percent)
- salads (27.8 percent)
- pasta (25.5 percent)
- eggs (18 percent)
- soups (13.4 percent)
- casseroles (12.2 percent)
- seafood (8.2 percent)
In terms of preparation, 75.5 percent of consumers felt that a single sauce or ingredient could affect the enjoyment of their overall meal, and tended to keep their homes stocked with a few essentials. Ketchup (57.6 percent), garlic or garlic powder (46.2 percent), and mustard (41.7 percent) were household favorites, followed by barbecue sauce (29.6 percent), soy sauce (23.4 percent) and hot sauce (22.6 percent).
The article states that almost half (47.8 percent) expressed a willingness to experiment with new food options this year. Mexican (44.8 percent) was the most popular cuisine, followed by Chinese (33.1 percent), Southern (23.1 percent) and Cajun/Creole (19 percent). Least favorite were Thai and Indian foods, at 14 percent and 11.6 percent, respectively.
ENTRÉE SALADS HIT THE SPOTLIGHT
(Food Product Design)
The classic entrée salads have morphed into appealing combinations of local, regional and seasonal ingredients, and globally inspired flavors. As Americans try to eat more healthfully and want more fresh ingredients, salads play an even more prominent role as entrées.
Choosing greens
Heads of iceberg lettuce are now sharing the spotlight with a variety of leafy, non-bitter lettuce varieties, such as loose-leaf, butter, romaine and crisphead, and a civilized dose of bitterness from chicories and endives that patrons are eager to try. The subcategory of microgreens is also growing.
Microgreens include the leaves and stems of plants, such as:
- Arugula
- Celery
- Radish
- Fennel
- Spinach
- Kale
Ethnic meets traditional
According to the Food Product Design article, Caesar salad is waning, but the opportunity for successful sales is still strong in casual-dining and quick-service restaurants. It can be easily sold as a to-go salad entrée topped with grilled meats. It can also take on a Mexican flair by replacing croutons with tortilla strips and swapping Cotija cheese for the Parmesan.
Ongoing demand for spice and heat paves the way for salads inspired by Latin American, Middle Eastern and Asian cuisines. Ethnic salad components:
- Latin American: jalapeño, avocado and fruits like grapefruit or mango. Chipotle vinaigrette works well on a taco salad with shredded lettuce, cheese, peppers and avocado.
- Middle Eastern: sesame seeds, sumac, thyme, za’atar spice blend, chickpeas, olives, tomatoes and olive oil. Asian: ginger and wasabi in the dressing.
Dressing the salad
One important aspect of creating an effective—and delicious—entrée salad is matching the salad dressing with the characteristics of the greens (bitterness, size of cut, etc.) and with the other salad ingredients. For instance:
- Tiny-diced romaine: less of the same dressing than the amount used with large cuts.
- Bitter greens: sharper, fruitier vinaigrettes.
- Iceberg lettuce types: dressings based on yogurt, buttermilk and mayo, along with herbs and vegetables like carrots and beets.
- Butter types: richer vinaigrettes with wine or champagne vinegars, mustard and aromatic herbs.
- Romaine: emulsions such as Caesar, ranch, aioli, etc.
Fruit-based dressings are a good way to test the waters when it comes to new flavors and they appeal to younger diners and help introduce them to healthier eating patterns.
Protein options
Meats and cheeses are common salad components. Seafood has generally been used either in a hot or cold state on salads; an example of hot seafood with salad is deep-fried calamari with Asian greens and julienne red pepper.
Meats commonly incorporated into Caesar salads:
- grilled steak
- deep-fried or poached chicken
- braised short ribs
- shrimp
In addition, cheese often serves as the star protein on salads, whether pan-roasted, nut-encrusted or oven-baked.
Fruitful combinations
Common salad fruits include unique pear and apple varieties, pomegranate seeds, açaí berries, blueberries, grapes, mango, papaya, kiwifruit, and strawberries. Fresh fruit adds refreshing flavor and texture and contrasting color to salads.
SAUCES ARE SIMMERING
(Food Technology)
According to a recent Food Technology article, consumers are cooking from scratch more frequently, sending sales of basic ingredients including sauces and seasonings soaring.
Historically, there have always been some categories that win in a down economy. And with in-home cooking fast approaching a 25-year high, according to the NPD Group, consumers continuing to cut back on restaurant visits, and an unprecedented demand to prepare restaurant-style foods at home, spice blends, sauces, marinades, and seasonings might well top the list in the current recession.
In previous recessions consumers turned to prepared meals and frozen entrees to economize; this time they are doing more home cooking. In an effort to sample a world of flavors at home and build flexibility into their meal routines, consumers are looking for products that assist with flavors, e.g., marinating sauces or rubs, the Hartman Group’s 2008 Reimagining Convenience Food report notes.
U.S. consumers are most likely to look for American regional flavors in their sauces and marinades. Roper GfK reports that 66% of Americans enjoy Tex-Mex flavors, 45% enjoy Southern, and 21% Cajun/Creole. Expect sauces coupled to international regional cuisines such as Brazilian churrasco sauces and Argentinean chimichurri sauces to be the next wave.
With 80% of consumers making an effort to eat healthier in 2008, it’s not surprising that sauces lower in "negative" ingredients like sodium and sugar are the fastest-growing sauce segment. One-third of the high-spending 60- and 70-somethings, who are currently the heaviest users of homemade marinades, are interested in buying better-for-you sauces and marinades, according to Mintel.
Top 10 list of claims on new cooking-sauce product launches, according to Mintel.
- Kosher
- all-natural
- convenient
- no additives/preservatives
- organic
- premium
- microwaveable
- gluten-free
- low/no/reduced-allergen
- low/no/reduced-fat
With half of adults grilling at least three times a month during barbecue season and 39% grilling year-round, in 2008, according to Harris Interactive, use of grill-specific marinades, sauces, and rubs is at an all-time high. While steak tops the list of Americans’ favorite foods prepared on the grill, followed by burgers, it is appetizers, potatoes, and skewered meats prepared on the grill that are the hottest new trends and might benefit from the addition of bold, saucy companions.
Additional findings in the Reimagining Convenience Food report:
- When asked directly, our consumers left little doubt as to where they would like the most assistance. It’s in the preparation of the key flavoring and seasoning ingredients.
- 59% of households only want the convenience of having pre-packaged flavorings and seasonings in order to make new dishes.
- Consumers do not feel confident in playing chef when it comes to Asian seasonings and sauces.
- Consumers who want help on fresh cooking occasions primarily want help with flavors and seasonings. And categories that offer this kind of help are a key opportunity, such as: rubs, ethnic sauces and marinades.
- The key demographic group willing to experiment is Millennials.
FRUITS, VEGGIES, FISH RANK AS TOP FOODS FOR HEALTH: SURVEY
(Progressive Grocer)
According to new International Food Information Council (IFIC) Functional Foods/Foods for Health Consumer Trending Survey, 89% of Americans agree that certain foods have benefits that go beyond basic nutrition, and may reduce the risk of disease or other health concerns, a significant increase from just two years ago.
The Progressive Grocer article says that according to the 2009 survey, the top "functional foods" named by consumers are:
- fruits and vegetables
- fish, fish oil, seafood
- dairy (including milk and yogurt)
- meat and poultry
- herbs/spices
The research further shows that people are increasingly associating these foods and their components with specific health benefits such as: calcium and vitamin D for bone health; whole grains for reduced risk of heart disease; antioxidants for protection against free radical damage; probiotics for digestive and immune health; and omega-3 fatty acids for cognitive development, especially in children.
According to the article, while consumers say they want to eat foods for these benefits, the data suggest they are struggling to follow through and incorporate them into their diet.
STUDY: WATER-RICH FRUITS, VEGETABLES HELP SHED FAT
Whole Grains, Water Rich Foods Can Help Trim Belly Fat Faster
(WCCO.com)
In a recent wcco.com article, WCBS-TV reported that more than any other part of the body, belly fat is especially dangerous because of its close proximity to the heart.
According to the article, belly fat leads to high blood pressure, heart disease, diabetes and other illnesses at higher rates than fat elsewhere in the body. And to add insult to injury, a new study says tummy fat creates more fat. Samantha Cassetty, nutrition director at the Good Housekeeping Research Institute said that belly fat creates a hormone that sends a signal to your brain that tells your brain it's hungry.
But research from The Journal of Clinical Nutrition shows whole grains and water-rich foods can help you lose belly fat faster. Such foods include barley, bulgur, quinoa, oats, as well as tomatoes, cucumbers, lettuce, oranges. The article indicates water-rich fruits and vegetables, like spinach, broccoli, apples, and blueberries, are thought to take more energy to break down in the stomach than their caloric worth, resulting in negative calories.
FIRE UP THE FLAVOR OF VEGGIES ON THE GRILL
(USA Today)
In a recent article, USA Today encourages readers to consider grilling vegetables to liven up a backyard barbecue.
The article states that according to the NPD Group, a market research firm, veggies are ranked low on the list of popular grilled foods; burgers are #1, followed by steak, chicken, hot dogs, pork chops and potatoes.
That's too bad, because grilling vegetables adds pizzazz to a meal, cooking experts say. According to the article, the grill brings out the best qualities of nutrient-rich vegetables by intensifying their natural flavors. And if you brush sauce or marinade on the top of them before, during or after cooking, you have three different opportunities to add even more flavor, interest and complexity.
Vegetable grilling tips offered in the article include:
- Toss asparagus with olive oil, salt and pepper and grill about six minutes.
- Grill corn on the cob in the husk with olive oil, salt and fresh herbs.
- Skewer zucchini with lemon wedges, and then when it's done, squeeze the lemon over the zucchini.
- Cook harder, denser vegetables, including potatoes, carrots and celery root, inside until just barely tender, then put on the grill.
- Use a grill basket for cooking cut-up vegetables outside, but pay close attention because they cook quickly.
- Make grilled veggies into a salad.
- Throw some lettuce on the barbecue.
- Set up a kebab table with meats and veggies and a variety of sauces and marinades for guests to make their own unique creation.
HEALTHY EATING STUDY FINDS ONGOING OPPORTUNITY FOR PRODUCE
(Progressive Grocer)
According to Progressive Grocer, while fresh fruits and vegetables tend to have a "health halo" with consumers, a new study finds there are still many opportunities for the fruit and vegetable industry to be more aggressive in connecting these products to healthy eating and healthy aging. Sponsored by the Produce Marketing Association (PMA), "Healthy Eating Trends 2009" from Bellevue, Wash.-based The Hartman Group offers a comprehensive look at the attitudes and preferences that guide the food choices consumers make on a daily basis.
The article states the study is particularly interesting because it is not constrained to specific fresh food departments, channels, store formats or even retail-vs.-foodservice food purchases and the implications of the trends identified in the research will really help produce companies focus their health marketing and messaging in the future.
To make the most of the research, PMA commissioned Steve Lutz of the Chicago-based Perishables Group to develop an overview of key findings and potential implications from the perspective of the fresh food industry.
Key findings of the study:
- Healthy eating is largely about healthy aging and appeals to all groups, but much more so for older age groups
- There are some interesting links between consumer perception and knowledge about nutrition and health. Consumers think of ingredients as good and bad, but also think of foods more holistically.
- The term 'fresh' carries an especially strong message for consumers, and potentially more persuasive power than specific content claims made by processed food products.
- Although consumers determine the healthfulness of food through nutrition labels, they have a limited understanding of nutrients and healthy compounds prevalent in many fruits and vegetables.
- To the casual consumer, nutrition labels on raw fruits and vegetables probably do not present a particularly compelling story when compared to the labels on many processed health foods. More holistic messages regarding the broader health benefits of fresh fruits and vegetables are potentially more powerful.
- Traditional supermarkets and restaurants may be at a disadvantage perception-wise when it comes to health-conscious consumers. Farmers’ markets and natural/health food stores score higher and outperform traditional food channels when consumers are asked about where they shop for the healthiest food.
- Healthy eating away from home is primarily connected with finding healthy alternatives that don’t appear to compromise the quality food experience.
"Retailers and suppliers should be identifying opportunities to work together to better communicate the freshness and overall health messages for their products in conventional retail stores," said Lutz.
Multicultural Marketing: Cinco de Mayo is Just the Start
(Progressive Grocer)
According to Progressive Grocer, the famed quinceanera party is the most expensive birthday celebration an average Hispanic American family will plan and carry out. Parents will spend from $10,000 all the way up to $80,000, to see that their daughter's 15th birthday is the social event of the year. As such, this event is significant in Hispanic social life.
For some families this can easily become a financial hardship, so extended family members pitch in to assure that the party is an unforgettable success. There's also a potential key role for grocers in this celebration as well, since food is central to the quinceanera. It's a prime opportunity to develop your Hispanic strategy beyond the Cinco de Mayo basics.
Progressive Grocer stated that currently, in the United States, quinceanera is celebrated from coast to coast, including in cities that aren't widely considered large Hispanic population centers. The quinceanera includes elaborate components such as stretch Humvees, rented reception halls, formal wear, live music with a DJ (or mariachis, if you're Mexican), friends and family, possibly a church service--and, of course, plenty of food and beverages.
The centerpiece of the party is the cake, and not just any cake. In Los Angeles, for example, some mainstream grocery stores sell the quinceanera cake for up to $750. It's a great ticket for a grocer, but the icing on the cake, so to speak, is the cross-shopping that benefits the store with other purchases such as meat, dairy, beverages, produce, paper products, party favors, and even invitations.
Hispanic strategy for retailers should be two-fold: how to increase spending of non-Hispanics who are crazy for Latino food, and Mexican food in particular, and how to maximize the basket size of Latino shoppers.
Sustainability Sustains Consumers’ Product, Store Choices: Study
(Progressive Grocer)
Half of U.S. consumers say they consider at least one sustainability factor when selecting brands to buy or stores to shop, according to a recent Information Resources Inc., (IRI) survey.
In the study, 22,000 U.S. consumers were asked to determine the impact of four key sustainability features in their product and store selection: organic, eco-friendly products, eco-friendly packaging and fair treatment of employees and suppliers.
According to Progressive Grocer, one-fifth of those surveyed were determined to be "sustainability driven," taking at least two sustainability factors into account when making their selections.
Key findings highlighting the evolution of sustainability factors in consumer decision-making include:
- Approximately 30% of consumers said they look for eco-friendly products and packaging in their brand selection.
- Up to one-quarter of those surveyed consider fair trade practices along with eco-friendly or organic designations in selecting a shopping destination.
- Nearly 40% of consumers search specifically for organic products.
The survey also underscored the significance of sustainability across every consumer age group. Though contrary to assumptions that the focus on sustainability is a more youth-oriented phenomenon, IRI data shows that older consumers are actually the more likely audience to weigh multiple sustainability factors in their purchases.
The Evolution of Salads
(Supermarket News)
According to Supermarket News, Mintel researchers have found that salads remain a healthy meal with a little creativity. Salads remain a standard on restaurant menus as some morph into interesting combos.
The survey noted that Hispanic influence was evident in the types of salads that have shown growth on restaurant menus. In its research, Mintel found that Mexican-type salads were the only variety to show growth (10%). Other salads, such as Greek, traditional American and Italian, decrease slightly. Mintel also saw a 7% drop in entrée salads on restaurant menus, but a 7% increased in side salads.
Researchers concluded that the future of salads on restaurant menus is stable, but the face of the category is changing. For instance, items such as tri-color beet salad with sirloin are making an appearance. The wedge salad has made a comeback and more varieties of lettuce, like radicchio and arugula, are commonly used.
Serving New Tastes
Salad’s image as a health food has helped the category to grow quickly, with seafood, Asian, Southwestern and Mediterranean particularly popular.
(Prepared Foods)
Salads have been extremely popular this year, as consumers’ growing desire for foods with a “fresh” and “healthy” profile stimulates operators to find creative ways to fill those needs. High on the list of favorites are: seafood salads, Asian-influenced salads, Southwestern salads and Mediterranean and Greek salads.
Technomic’s research shows today’s consumers want salads they cannot easily make themselves at home, so offering a salad with a wide variety of ingredients, or a “create your own” salad, can be the perfect opportunity to provide something customers perceive as unique and special.
Consumers who say they are trying to “eat healthy” tend to purchase salads more frequently. Perhaps this is because purchasing a salad lets them eat something viewed as “good for them,” or because it guarantees a full serving of vegetables.
Forty–three percent (43%) of consumers indicate they are likely to purchase a salad if it is unique or new to them and sounds appealing, according to Technomic’s “Salad Category Report.”
Full Service Salads
While interest in seafood on the part of American consumers is at an all-time high, it may be that the price premium commanded by these salads could, to some extent, limit their growth potential in the large chains.
Ethnic, Emerging and Niche Trends
Pasta and noodles were incorporated into salads at the Top 250 FSRs (full-service restaurants) and limited-service restaurants but not in the independent restaurants and emerging chains. As consumer interest in fresh produce and low-carb choices accelerate, interest in pasta salad is declining.
Among the most striking ethnic trends, Mediterranean-influenced (particularly Greek) salads are gaining the spotlight.
The rise of Southwestern salads coincided with the decline of Cajun blackened meats, which completely disappeared from Top 250 salad menus in the past year. Buffalo seasoning also became less prominent. This may indicate that consumers with a taste for spice and heat may be substituting such items with more Mexican/Southwestern-oriented flavors.
Greek and other Mediterranean cuisines continue to be popular, and there are numerous other traditional Mediterranean salads still to explore, such as Tuna Nicoise (from the French Riviera).
Salad-centric Concepts
At restaurants, salads work to grow the customer base by offering something for just about everyone. In addition, they are a cost-effective way to introduce trendy, ethnic flavor profiles. Something as simple as a cucumber-wasabi dressing or Asian peanut dressing capitalizes on the growing appeal of Asian flavors—one of the most important taste trends of the past year.
The salad category is fiercely competitive, and competition comes from many segments. The major chains and other emerging salad operators will continue to compete, particularly in the quick-casual realm, by focusing on what makes a salad appealing in the first place: high-quality ingredients, interesting flavors, fresh, globally-inspired dressings and a commitment to speed and convenience for the customer.
Salads and Salad Dressings
(Prepared Foods)
Salads are one of the most easily customized food choices around and can easily be “dressed” to anyone’s liking. And dressings aid in the personalization aspect. But they also stand well on their own, enhancing everything from cold veggies to cooked meats to sandwiches and wraps. Salad dressing adds flavor and character to every food it touches.
The Market for Salads and Salad Dressings
Some new trends in salad dressings include a rise in ethnic flavors and spritzers that allow consumers to better control the amount of dressing they add to their greens. With health and convenience benefits firmly on its side, bagged salad has enjoyed popularity with American shoppers in recent years. Pre-packaged salads are easy to use and offer people a reliable way to fit fresh, healthy vegetables into their diets. Mintel reported that in 2006 sales of bagged salads exceeded $3.3 billion in FDM channels, excluding Wal-Mart, a 5.6% increase from the $3.1 billion in sales in 2004.
Although salad dressings is strongly associated with bagged salad, sales are not. Mintel reported that from 2004-2006 salad dressing sales fell 5.2% to $1.6 billion in FDM channels, excluding Wal-Mart. Sales of salad dressing have fallen every year since 2001 due to competition from other salad toppings such as bacon and cheese.
Together, total sales of bagged salads and dressings increased 42% at current prices from 2001-2006, with bagged salads carrying the market during those years. Mintel predicts that sales for the bagged salad ad dressing market will reach roughly $10 billion by 2011, a rise of 38% in current dollars.
Market Challenges
Though bagged salad sales have been strong, 2006’s widely publicized E. coli case for bagged spinach greatly affected the market. In FDM channels, excluding Wal-Mart, total bagged salad sales dropped 4% in current terms from 2005-2006. Bagged spinach sales fell nearly 20% during this time, undoubtedly the effect of consumer fear.
Organic and All-natural
As consumers demand less processed, more natural foods, food companies have quickly responded. In 2007, “organic” was the second top claim featured on new salad and salad dressing products, according to Mintel GNPD. “No additives/preservatives” ranked third and “all-natural” fell close behind for both salads and salad dressings. As such, research from Mintel shows that 13% of bagged salad buyers say they “only buy organic greens.”
Premium Positioning
As people are paying more attention than ever to the foods they are eating, product “premium-ness” has become a prime concern. Consumers are always looking to elevate the status of their salads, whether by buying fancier greens or more luxurious dressings. This premium trend has played out well in the salad dressing world. While overall salad dressing purchases have fallen in recent years, sales from the store refrigerated section have risen. Consumers want premium and fresh and find these options easily on the labels of refrigerated dressings.
Convenient Health
All bagged salads and prepared dressings have one thing in common – convenience. Bagged salad makers have focused more on convenience, attempting to make salad even easier to use and enjoy than it already is. “Convenient” was the top claim for new U.S. salad products in 2007, according to Mintel GNPD.
Weight Management
In addition to being linked to health and nutrition, salads are associated with weight management.
More Adventurous Flavors and Ingredients
The entire point of salad dressing is to add flavor to any salad. And dressing manufacturers continue to develop innovative and exciting new dressing flavors. The U.S. Hispanic population continues to grow as does its influence on dressing flavors - such as mango and jalapeno. Asian cuisine also influences dressing flavors – sesame and ginger. Beyond ethnic trends, another food trend of note in America lately has been that of the super healthy “superfruits”. Pomegranates, blueberries, and acai berries have been noted for their antioxidant content and have added a punch to many products including vinaigrettes.
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