Welcome to the December Edition of Important Trends 2009,
ADS’ online source for timely consumer and important trend information.

“Holidays are an expensive trial of strength. The only satisfaction comes from survival.”

This issue includes trends in: consumer behavior, flavor predictions for 2010, perishables retail sales, and consumer coupon use as well as a look at December’s Recipe of the Month.

"Consumer commitment to green living is very stable," says Tim Kenyon, senior analyst for GfK's consumer trends division. “But if products are too expensive, they will find other ways to express that commitment. They may buy fewer green products, but they’ll do things like cut their energy costs or reduce consumption.” The study finds 60% of people now believe green products are too costly, a six point increase from 2006.

According to the article, through the recession consumers have moved from environmental philanthropy to a more practical approach with green purchases likely to be driven by the desire to save money, be healthier, or get more value. They’re also measuring the worth of their time differently, with 28% saying they are “too busy” to do what it takes to be green.

For marketers, that means it’s essential to focus on green innovations that consumers will regard as both easy and affordable. And although shoppers are expressing a greater interest in environmental purchases, consumers are more conscious of picking and choosing, and beginning to make trade-offs.

To read more, click here.

Mintel Predicts 2010’s Trendy Flavors
Marketing Daily, November 18, 2009

Cardamom and sweet potatoes will lead the list of trendy flavors used in food products next year, according to Mintel.

A Marketing Daily article says the research firm expects the intensely aromatic Indian spice cardamom to crop up not just in ethnic fare, but many kinds of foods. Mintel also predicts sweet potatoes will become “the new functional food” because of their high fiber, beta carotene and Vitamins C and B6 content and their preparation versatility (they can be candied, fried, baked or boiled).

Other key flavors in the year ahead will include hibiscus (expected to become a common ingredient in beverages beyond tea, now that the USDA has said that it can help lower blood pressure); cupuacu (the “next big superfruit,” offering more than 10 vitamins and antioxidants); rose water (becoming a common flavor in ethnic foods); and Latin herbs and spices such as cilantro.

To read more, click here.

Perishables Sales Booming At Retail
Marketing Daily, November 4, 2009

After a year of steadily shaking up consumer habits in the supermarket, the recession has produced some clear winners -- and new 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.

To read more, click here.

More Shoppers Search for Coupons Online
USA Today, December 2, 2009

According to a USA Today article, the unsteady economy is contributing to a rush by millions of online shoppers to a decidedly low-tech business: coupons. The number of people scouring the Internet in search of coupons that they can print and present to retailers, or codes that provide them with discounts on retail sites such as Amazon.com, is up sharply.

The article states that leading coupon websites reported record traffic on Cyber Monday. RetailMeNot had 1.1 million visitors, up 57% from a year ago. CouponCabin was visited 400,000 times, up 65% from a year ago. And BradsDeals.com said traffic was up 174%, to 16,000 visitors per hour.

What’s driving coupon use is not surprising: 42% of consumers intend to spend less online this Christmas than they did in 2008, says Nielsen analyst Maya Swedowsky, who surveys shopper attitudes.

“Any merchant without an aggressive coupon strategy is at a clear disadvantage,” says Loren Bendele, CEO of Savings.com, which works with more than 4,000 major retailers, including Apple, Gap and Home Depot. Coupon-related purchases at his site have doubled to $136 million this year vs. the same period in 2008. As a matter of fact, one-third of all U.S. Internet users in October visited a deal-oriented site such as RetailMeNot and CoolSavings.com.

The article suggests it’s not just the recession driving the growth of online coupons. Internet use continues to grow. Smartphones in particular are booming and adding a high-tech dimension to the phenomenon. Shoppers can use their phone cameras to scan a product’s bar code and instantly find and retrieve a coupon to lower the price.

And social-networking sites including Facebook and Twitter are joining the ranks of destinations that offer coupons. Coupons.com, the largest Internet coupon distributor, is available on Facebook and Twitter, as well as 5,000 sites – most of them for grocers and manufacturers – and through iPhone apps.

To read more, click here.

ADS Recipe of the Month – Tangy Orange & Salmon Salad
Click here to check out the December recipe of the month, which showcases ADS’ 2009 Dressing of the Year, Tangy Orange Citrus Dressing by Litehouse, Inc. Congratulations to Litehouse!

You too can show off your company’s culinary genius and products! Contact Traci Gibson to submit your recipe of the month.