MARKET WATCH
SECTION ONE
SECTION TWO
 |
2017 Quri Bowl Reviews the ‘MVPs’ of In-Store Merchandising
While a battle on the gridiron took shape Sunday, February 5, in Houston that will certainly go down as one for the ages, Quri was focused on the competitive action taking place in hundreds of stores across the country. This year in honor of the Superbowl, Quri tracked the in-store merchandising performances of 11 different beer brands as they strove for perfect on-shelf availability and display excellence, all in the hopes of capturing sales during one of the biggest drive periods of the year.
Quri tracked merchandising conditions in 800 Walmart and Kroger stores for the 14 days ending Monday, February 6, 2017. The full list of brands tracked were Bud Light, Shock Top, Michelob Ultra, Samuel Adams, Modelo, Guinness, Fat Tire, Corona, Blue Moon, Sierra Nevada, and Miller Lite.
When it came to display location, Quri said Shock Top and Bud Light rose to the occasion to take MVP honors with 40 percent and 65 percent of their respective displays located outside the home aisle. Sam Adams and Bud Light scored major points for their overall display presence, with Sam on display in 27 percent of all stores and Bud Light on display in a whopping 93 percent of all stores. As for the number of displays per store, Bud Light and Blue Moon came through in the clutch, with 1.4 and 0.2 displays per store. And top honors for on-shelf availability went to Miller Lite and Blue Moon with stellar performances of 100 percent and 98 percent, respectively.
To see a more detailed view of the final results, go to http://bit.ly/2k3SmCL and download the eBook.
Beech-Nut Benefits from New TPM Solution
Beech-Nut, the nutrition company, is giving thumbs up for its new trade management solution from AFS Technologies.
As the AFS services team worked with Beech-Nut and reviewed their short- and long-term goals for managing TPM and functional gaps, they quickly identified that TPM V3 would be a better fit for their business requirements. Their sister company, Signature Brands, currently uses the V3 application and uses the same SAP server as Beech-Nut, which also enabled a smoother integration cycle.
Bob Little, Director of Sales Planning and Development at Beech-Nut, said, “AFS worked closely with the Beech-Nut project team from beginning through go-live to ensure that our organization was set up for success. Their incredibly knowledgeable team helped us build the system from the ground up resolving issues along the way to anticipate and avoid post implementation pitfalls.”
Pam Kiess, Senior Project Manager at AFS reports that “feedback has been very positive and the team has started to enter Q12017 promotional plans. We have had several Executive Steering Committee calls and the Beechnut Executive Sponsors continue to say that this was by far one of the smoothest implementations they have experienced, and that our team have done an excellent job in all areas because of their expertise and knowledge in the space. They trust in the fact that we have guided and positioned them well for their future growth and feel the solution will provide them great benefits.”
New Initiative to Reduce Consumer Confusion on Product Date Labels
In a new industry-wide effort to reduce consumer confusion about product date labels, grocery manufacturers and retailers have joined together to adopt standard wording on packaging about the quality and safety of products.
Currently, there are more than 10 different date labels on packages, including Sell By, Use By, Expires On, Best Before, Better if Used By or Best By. They can result in confused consumers discarding a safe or usable product after the date on the package.
The new voluntary initiative streamlines the myriad date labels on consumer products packaging down to just two standard phrases:
- BEST If Used By describes product quality, where the product may not taste or perform as expected but is safe to use or consume.
- USE By applies to the few products that are highly perishable and/or have a food safety concern over time; these products should be consumed by the date listed on the package and disposed of after that date.
The new initiative for common phrasing is led by the Food Marketing Institute (FMI) and the Grocery Manufacturers Association (GMA), the two major trade associations for retailers and consumer products manufacturing.
Trading partners are encouraged to immediately begin phasing in the common wording with widespread adoption urged by the summer of 2018. Broad industry adoption of this new voluntary standard will occur over time so companies have flexibility to make the changes in a way that ensures consistency across their product categories.
“Our product code dating initiative is the latest example of how retailers and manufacturers are stepping up to help consumers and to reduce food waste,” said Pamela G. Bailey, GMA president and CEO.
Leslie G. Sarasin, FMI president and CEO. Said, “The shopper remains the most critical audience in our industry, and as the associations representing major food brands and retailers, we want to encourage a consistent vocabulary so that our customers clearly understand they are purchasing products that are of the highest quality and safety possible. While we all need nourishment, both retailers and manufacturers also want consumers to have the best experience possible in their stores and consuming their products.”
Product date labeling changes may result in reduced consumer food waste, say the FMI and GMA executives, but clearing up this confusion is just one of several ways to combat the issue moving forward. About 44 percent of food waste sent to landfills comes from consumers, and statistics show that addressing consumer confusion around product date labeling could reduce total national food waste by just 8 percent.
How to Win the CPG Zero-Sum Game
CPG companies can gain short- and long-term growth opportunities by identifying and capitalizing on dynamic consumer trends, particularly those that can command a premium in a certain niche.
The playbook is contained in a new report from IRI. “Winning the CPG Zero-Sum Game by Uncovering Hidden Growth Pockets” details three potential key strategies — “Buy, Borrow and Build” — for participation in category sub-segments of rapid growth.
“How a company decides to participate in selected growth pockets is highly dependent on overall strategy, existing core competencies, risk appetite and merger and acquisition budget,” said Jamil Satchu, partner and practice leader of Growth Consulting for IRI Strategic Analytics. “Ultimately, the level of attractiveness of a growth pocket will depend on an assessment of external variables, as well as target candidate internal assessment variables.”
IRI identifies three potential key strategies for participation in growth pockets that are significantly outperforming other segments:
Acquisition: “Buy” into them - How the company decides to absorb its acquisition can vary from “full integration” of the target’s capabilities into the organization (changing the target’s brand to that of the company’s), allowing complete independence of the target’s operations (letting it continue to grow organically but under new ownership).
Renovation: “Borrow” ideas and inspiration - A company may seek to learn from a target candidate to renovate its existing business.
Innovation: “Build” them - A company can choose to build the capabilities directly and thus gain participation into the growth pocket.
Virtual Shopping to Expand Quickly: New Research
The internet is quickly becoming the virtual grocery store for many U.S. consumers with 52 million currently grocery shopping online, says a new study from The NPD Group, a global information company. According to the report, 20 million consumers who are current, lapsed, or new to online grocery shopping plan to increase their virtual shopping for food and beverages over the next six months.
“Food and beverage manufacturers should monitor the quickly changing landscape with respect to grocery delivery services and online retailers to ensure their products are part of the assortment where it matters,” said Darren Seifer, NPD food and beverage industry analyst.
“Brick-and-mortar retailers also need to adjust to ensure they’re not losing out with younger tech-savvy consumers. Now is the time to start developing e-commerce programs or to expand your current services. Whether a manufacturer or retailer, now is the time to act while shoppers are experimenting and there is significant growth on the horizon.”
SECTION THREE
