Snacking Opportunities

Snacking Opportunities
Building Better Snacks
October 2015
Snacking Opportunities: Building Better Snacks
Table of Contents
Executive Summary
3
Shifting Eating Culture
6
Emergence of a Snacking Culture
7
Key Trends in Snacking
9
Snacking Occasions and Fresh Perimeter Categories
12
Actionable Ideas
15
Bakery ▪ Dairy ▪ Deli & Prepared ▪ Specialty Cheeses
Appendix: Objectives and Approach
19
2
Snacking Opportunities: Building Better Snacks
Executive Summary
In 2014, IDDBA contracted The Hartman Group to conduct proprietary research for its
membership. The report, Engaging the Evolving Shopper: Serving the New American
Appetite, highlighted shoppers of fresh perimeter categories through the lens of
Millennials, modern eating, health + wellness, and digital engagement. This white paper
leverages insights from that study, along with other Hartman work in consumer food
trends, to spotlight snacking opportunities in Bakery, Dairy, Deli, Prepared Foods, and
Specialty Cheese.
Overview
Our culture is changing – who we are, what we do, where we live, and what we value are
all morphing. These macrodynamic shifts are impacting how we eat. Shifting eating
behaviors are causing snacking to play an increasingly important role. Today, half of all
eating occasions are snacking occasions. With lines between snacks and meals blurring,
consumers have increasingly been shifting their snacking behavior, opting for healthier
choices and better portion control.
Snacking occasions, behaviors and needs are characterized by highly flexible rules and
structures that are shaping how shoppers think about fresh perimeter categories.
Compared to meals, snacking generally happens alone, freeing the consumers to flex
their decisions around their individual needs and desires.
Source: Hartman Group, Modern Eating Study, 2013
Copyright 2015 IDDBA, in partnership with The Hartman Group
3
Snacking Opportunities: Building Better Snacks
Executive Summary - continued
With anywhere from 60% to 90% of snacking occasions taking place at home, depending on
the time of day, supermarkets are well positioned to leverage contemporary snacking
trends. But they are also vulnerable to missed opportunities.
While the majority of at-home occasions involve
food sourced from retailers, this landscape is
undergoing rapid change and today’s
supermarkets must pay attention to
opportunities to increase their relevance to a
greater number of eating occasions in a way
that fits how consumers now approach those
occasions.
Afternoon Snacking Occasions*
Adults who do it:
63%
Share of snacking occasions:
27%
Taking place at home:
70%
Sourced from Grocery stores:
54%
Consumers increasingly can fill their snacking needs in a variety of ways. There is a gap
between snacking occasions taking place at home (70% in the example above) and the
share of those sourced from traditional Grocery retailers (54% in the example above).
Convenience, Mass, Drug, Club and Food Service channels have all dialed up efforts to
capture a greater share of the consumer’s snacking dollar. But it is not only these channels
that supermarkets must take into consideration when building forward looking strategies.
The “Roadside Pantry Effect” is a symbol of the new reality that
consumers can find food everywhere, including while they’re shopping for
furniture (Ikea), sporting goods (REI) and suits (Brooks Brothers in New
York). Consumers now navigate a world of 360-degree food availability.
They can eat on a whim, which makes food exciting and fun. They can
choose to not only bypass the grocery store, but to stop at any number of
locations. Even when they do have a plan for shopping and eating, they
can abandon it at the last minute. They can shop from their mobile
phone, for tonight’s dinner, or even subscribe online to an ever-changing
discovery of snacks, delivered direct to home or office.
There is an opportunity for retailers to engage more with
consumers on snacking opportunities in the fresh perimeter
area of the store. In the UK, retailers such as Marks and
Spencer and Waitrose provide some best in class examples
as they guide consumers towards relevant trends in
snacking occasions through signage, packaging and pricing.
Copyright 2015 IDDBA, in partnership with The Hartman Group
*Source: Hartman Group, Eating Occasion Compass, 2014
Graze.com
UK Retailer Focuses
on Fresh Less processed
Snacking
4
Snacking Opportunities: Building Better Snacks
Executive Summary - continued
Consumers continue to look for ways to balance healthy, nutrient-dense, purposeful
snacking with their desires for indulgent and emotionally satisfying snacks. For many
consumers, both can be part of an overall wellness lifestyle, especially when indulgent
snacks are of higher quality. Discovery, new experiences and global flavors can often be
the catalyst for consumers to discover new and healthier approaches to snacking. Fresh
perimeter departments are well positioned to be that catalyst.
As retailers invest in the fresh perimeter and seek to meet consumers’ evolving snacking
needs, a focus on higher quality, ‘fresh, less processed’ options should take center stage.
Hartman has identified key ways retailers can elevate snacking experiences across
Bakery, Dairy, Deli, Prepared Foods, and Specialty Cheese to meet consumers’ evolving
needs:
53%
1) Customizable, convenient, scalable portion
sizes along with mix ‘n’ match options.
of consumers are now
opting for smaller
snacks.*
47%
2) Combinations of familiar and new foods, for
safe discovery and global exploration.
3) Consumer engagement via category
specialists, tapping into notions of authentic,
fresh, less processed foods.
say they really enjoy
anything new and
different or trying new
kinds of ethnic cuisine.**
61%
of consumers are
now opting for
healthier snacks.*
Snacks are serving more intentional, specific roles in our food lives, particularly as 90% of
consumers snack multiple times throughout the day.*** Retail departments need to
work together to speak to these diverse needs. We believe it is a critical time for fresh
perimeter departments to see snacking occasions as opportunities to become more
relevant and connected and to captivate and delight customers who are increasingly
seeking out fresher, healthier, higher-quality snacking experiences.
* Source: Hartman Eating Occasions 2013, n=624. “In what ways has your snacking changed in the past five years?”
** Hartman Syndicated Study on Millennials, 2014*** Source: Hartman Compass 2013, n=21,163. 0-3 meal occasions, more than 1
Copyright 2015 IDDBA, in partnership with The Hartman Group
snack occasion.
5
Snacking Opportunities: Building Better Snacks
Shifting Eating Culture
WHO WE ARE
Who, What, Where…
Modern eating culture in the U.S. is characterized by a
fragmentation of traditional food and beverage
consumption. Gone are the days of ‘three planned
meals a day.’ Instead, demands of modern life have
created an eating culture where flexibility, immediate
consumption (IC), alone eating, and snacking are the
name of the game.
Nontraditional family structures
(+ women in workplace)…
has diffused food management,
resulting in last-minute decisions,
desire for flexibility
Who we are, what we do, where we live, and what we
value
are
morphing.
Acknowledging
these
macrodynamic shifts is essential to understanding
eating culture influencing eating occasions today.
rising work demands and
perception of harried-ness…
has led to de-prioritization of
food planning and prep
On-the-go Lifestyle…
Food and beverage companies, along with food service
establishments, are increasingly creating an offering
tailored to this ‘on-the-go’ lifestyle. These include
‘grab-and-go’\‘portable’ products that cater to the
need for convenience as well as immediate
consumption and impulse snacking.
WHAT WE DO
WHERE WE LIVE
a diverse retail mix,
particularly variegated food in
metro areas… has made food
available any place, any time
WHAT WE VALUE
Culinary Engagement…
We are in the midst of a genuine Cultural
Revolution…and food – including growing, distributing,
eating, preparing, and sharing – is at the core of it. This
contemporary fascination with food has us watching as
other people cook and eat and, as such, food has
become omnipresent across all platforms, media, and
palates in America. Our palates are changing as we
embrace raw fish (sushi), funky flavors (kimchi), and
new textures (seaweed and pig’s ear).
Customization…
Appreciation for personal, customized food has
privileged the fulfillment of personalized desires:
Whatever you want, whenever you want it.
Smaller offerings of many different kinds of meals and
snacks are an easy and convenient way for consumers
to piece together their eating occasions.
appreciation for personal,
customized foods…
has privileged the fulfillment of
personalized desires: whatever you
want, whenever you want it
fresh revolution and interest in
less processed offerings…
has led some consumers to shop
more frequently in an attempt to
get the freshest, perishable
offerings and avoid highly
preserved products
appreciation for global cuisine (+
culturally diverse population)…
is expressed in use of restaurants
that allow people to try innovative
foods despite not having the
6
skills to prepare them at home
Copyright 2015 IDDBA, in partnership with The Hartman Group
Snacking Opportunities: Building Better Snacks
Emergence of a Snacking Culture
Meals Are Rigid — Snacks Are Flexible
Meals have culturally defined rules passed
down from generation to generation. These
rules tell us when meals should happen,
who should be there, how we should act,
and what we should eat.
Meals have traditionally helped structure
the day, providing focal points, marking
beginnings, endings, and transitions. They
are more than just about eating —
nourishment is provided, relationships are
built, and decisions are made. You can say
that, ultimately, meals have a lot of cultural
baggage.
Snacks exist outside of these boundaries in a
more fluid space where rules can bend and
shift according to the needs of the
individual, the context, and the social space.
Snacks can be anywhere and anything, and
are playing an increasingly diverse role in
people’s food lives and food culture.
Purposeful Snacking – Delivering Energy, Satiety, Even Indulgence
Snacking today has become much more
purposeful. As the line between meals and
snacks blurs, snacks need to fulfill a wider
range of needs than in the past.
How We Use Snacks…
73%
of snacking is driven by the desire to
fulfill unsatisfied needs
(27% of snacking is aimless)
Traditional meals are becoming increasingly
fragmented and harder to achieve, and
snacks are shouldering a greater proportion
of the physical, emotional, social, and
cultural desires consumers have around
food.
As a result, snacks are serving more
intentional, specific roles in our food lives
and food culture more broadly. Retailers
need to be speaking to these diverse
needs.
Copyright 2015 IDDBA, in partnership with The Hartman Group
Source: Hartman Compass 2013, n=6,741.
“Which of the following statements do a good job of representing your
feelings while you were deciding what to have on this occasion?” (note: drivers are not mutually exclusive).*
7
Snacking Opportunities: Building Better Snacks
Snacking Behaviors Are Changing to Meet More Diverse Needs
Consumers are making changes in their snacking behavior, opting for healthier choices and
better portion control.
How snacking behaviors have changed
Less Often
More Often
Fresh fruits and
vegetables
64%
61%
61%
Healthier choices
53%
Smaller snacks
Larger snacks
48%
Indulgent snacks
47%
Snacking when bored
Exploring/sampling new
foods/beverages
28%
46%
Snacking as a reward
Avoiding carbs
27%
44%
Consuming nontraditional snacks
Source: Hartman Eating Occasions 2013, n=624. “In what ways has your snacking changed in the past five years?”
Modern Snacking
Most Snacking Occurs When
We are Alone*
7%
19%
10%
30%
20%
21%
54%
39%
Meals
Alone
Snacks
Couple
Family
Friends
“I kind of eat all day. I don’t
let myself get hungry. I used
to eat a big junky meal and
then eat candy and soda
throughout the day.
Now it’s more
split up, and it’s
different food. I’m
hungry all the
time, so I eat
all day.”
~Joe, 27, Seattle
90% of
Consumers snack
multiple times
throughout the day
7% of these
consumers forego
meals altogether in
favor of all-day
snacking**
Copyright 2015 IDDBA, in partnership with The Hartman Group
* Source: Hartman Compass 2013, n=6,741.**Source: Hartman Compass 2013, n=21,163. 0-3 meal occasions, more than 1 snack occasion.
8
Snacking Opportunities: Building Better Snacks
Key Trends in Snacking
Central Symbols of
Fresh, Less Processed In Snacks:
Fresh, Less Processed
The desire for fresh food is growing, as is the
rejection of industrial food. Consumer concern
with cues including minimally processed,
recognizable ingredients, locally grown, and
shortest ingredient lists has accelerated in
recent years. Ingredients that consumers
associate with being ‘industrial,’ ‘processed,’ or
‘chemical’ are becoming justification for
rejection. HFCS is now tied with sodium as an
ingredient to avoid. Consumers are also
avoiding artificial sweeteners as well as growth
hormones and hydrogenated oils.
Fresh, less processed has become a greens fee
for legitimacy in wholesome snacking.
Nutrition/Sustained Energy
Absence of Negatives
No trans fats, hydrogenated oils, HFCS, artificial
ingredients, growth hormones
Presence of Positives
Organic, local, seasonal, whole grains
Short Ingredient List
≤ 5 ingredients
Perishable or Short Shelf Life
Refrigerated, expiration date
Known Processing Method
“Something I could make at home”
Artisanal or Traditional
Minimal Packaging
Recyclable materials, simple graphics
Quality Cues
Artisan, production and sourcing narratives
Energy and weight management continue to be two key aims of snacking today. The
consumer interest in sustained energy and weight management is as much aspiration as it
is need. Sustained energy and weight management can be addressed with protein and
complex carbs. Dairy, Deli, Specialty Cheese, and Specialty Meats are well positioned for
protein snacks, while Bakery can fill whole grain/high fiber complex carb snack needs.
Quality Calories
Consumers expect snacks to do more for them
—quality of calories, nutrition density, mealbridge, energy, and better-for-you indulgence.
Food retailers are the primary source for snacks.
Shoppers, especially Millennials (who snack
more), are looking beyond center-store snack
aisles to fresh, real food choices in fresh
perimeter categories. They are looking at the
quality of calories (nutritional density), rather
than counting calories, and are seeking quality
ingredients, rather than greatest quantity for
less money.
Stacy’s Pita Chip Sales Growth
Demonstrates Interest in Healthy
Deli Snacks
$500
(U.S. $ Sales, Millions)
$400
$300
$200
+ 20%
$100
CAGR
2009-2014
$2005
2008
2011
2014
Source: Euromonitor, 2015; Hartman Analysis
Copyright 2015 IDDBA, in partnership with The Hartman Group
9
Snacking Opportunities: Building Better Snacks
Global & Reimagined Flavors
Snacks provide a perfect, low-risk way to try
out new cuisines and ways of eating;
consumers appreciate being given the
opportunity to have a moment of excitement
and discovery of authentic flavors in their
day. Global foods also carry a health halo for
consumers as, if done authentically, they cue
cleaner, fresher, and higher quality.
Today, food producers are borrowing from
the flavor palette of ethnic cuisines to
freshen up and contemporize familiar
offerings. Inclusions tend to be more forwardleaning flavors (chili lime, teriyaki, tzatziki)
than familiar base snacks. For example, snack
cheeses use aromatic woods and flavors from
particulates and alcohol; ready-to-heat,
packaged appetizers (nuggets, fries, pizza)
use spices to add flavor; and packaged
snacks, such as popcorn and nuts, are ideal
vehicles for any savory seasoning.
New snack types and forms emanating from
regionally global cuisines are meeting desire
for novelty and exposing consumers to the
health benefits of lesser-known ingredients
and preparations.
Current Taste Preferences*
•
•
•
•
56%
54%
52%
The food I grew up
with
25%
35%
45%
Anything new and
different
Common
(Americanized) ethnic
foods (e.g., Tex-Mex,
Italian-American,…
51%
52%
44%
Trying new kinds of
ethnic cuisine
31%
34%
41%
Fast food
31%
36%
41%
Boomer
•
73%
68%
54%
Classic American
cooking
Gen X
Millennial
Growing trends to watch
Reimagined concession-type
snacks—e.g., pretzels, churros,
samosas
Lesser-known fruits and vegetables
in both fresh and dried formats
Greater use of sea vegetables in
their whole form
Traditional snack mixes
Intersection with diet trends such as
gluten free, raw, vegan
Source: *Outlook on the Millennial Consumer, 2014. Q33.
How would you describe your CURRENT TASTE
PREFERENCES? I really enjoy… (Please select all that apply).
Base: Millennials (n=1,438); Gen X (n=422); Boomers (n=295)
Copyright 2015 IDDBA, in partnership with The Hartman Group
10
Snacking Opportunities: Building Better Snacks
Telling Stories: where snacks come from / how they’re made
As consumers look for higher quality and fresher snacks, the narrative around the product
becomes particularly important. Key areas which fresh perimeter departments can focus
on to help tell the story include:
What’s in it: Consumers seek out simple ingredients and flavors that connect to real foods.
Ensure that ingredient panels convey clean and simple.
How it’s made: Keep product offerings/displays as close as possible to their “earthly”
source, so that shoppers feel products demonstrate that they are minimally processed.
Who made it: Provide a passionate narrative about the key
people behind the product: farmers, chefs, etc., alongside
stories of care and pride in the quality of the product.
How it’s packaged: Packaging is a strong indicator of quality
and helps convey that snacks are minimally processed.
Providing smaller-sized packaging that is also clean,
transparent, and as minimal as possible cues a strong
connection to fresh, less processed foods and beverages.
Variety Seeking: multi-channel snack sourcing, including online
There was an explosion of online food delivery companies in 2014. These companies are
rapidly appearing to fill every possible market niche within food delivery, from fully
prepared meals and snack foods to ingredients. Common threads among these digital
newcomers include higher-quality ingredients, skilled techniques, and transparency in
sourcing and production, which may pose a competitive threat to the fresh perimeter.
However, it is important to
remember that online snack
sourcing (particularly for fresh
perishables) is still a developing
area (with 0.7% market share of
the total packaged food market,
growing at 7.1% 5 Yr CAGR*).
While online is farther out on the horizon as a competitive
threat to Dairy, Deli, and Bakery departments, any channel
that offers opportunities for more variety, be it higher
quality, specialized ingredients, new combinations of foods,
local sources, or other new experiences, is competition.
Feelings About Channels
Has unique items I can’t
find elsewhere**
(describes me well/somewhat)
Specialty
Online
Club
Grocery
91%
84%
74%
54%
*Source: Euromonitor 2014, Internet Retail share of value RSP, 2009-2014; Online Retailers show the strongest 5
Yr CAGR of retail sales % distribution among all other retail channels; Hartman Analysis.
11
Copyright 2015 IDDBA, in partnership with The Hartman Group
**Source: Hartman Group Shopping In America, 2014
Snacking Opportunities: Building Better Snacks
Snacking Occasions and Fresh Perimeter
Categories
Perceptions of Dairy, Deli, Bakery, Specialty Cheese, Specialty Meats for snacking:
Consumers turn to these areas of the store across all Healthy and Indulgent Snacking
Occasions.
The approach to healthy snacks varies, however. Millennials prioritize Dairy (driven by
intentional Health & Wellness priorities, such as digestion and immunity as well as a
source of protein for energy and satiety), while Boomers look to Specialty Cheeses
(driven by a more balanced approach to Wellness, such as focusing on a combination of
disciplined nutrition and indulgence).
For Indulgent Snacks, Bakery, and Specialty Cheese are the areas
most sought out by consumers. Bakery has always been seen as a
place for indulgence, and this perception, combined with
continued ‘carb-fatigue’ and growing preferences for gluten-free
products with healthy wheat alternatives, means that Bakery
departments should assess how they can best serve shoppers.
Consumers are seeking out products that convey ‘permissible
indulgence.’ Rather than having to ‘deprive themselves,’ they
seek reward through smaller, or ‘mini,’ naturally sweetened or
even ‘less-sweet’ snacks. In Specialty Cheese, consumers can
explore new and interesting flavors at the same time as having a
healthy, less processed snack.
While consumers also look to Deli, Prepared Foods, and Specialty
Meats for snacking, there is still significant opportunity to
develop these areas further as ‘go-to’ sources of snacking:
focusing on small, pre-portioned pack sizes, mix and match,
alongside freshness and quality.
Would the (Area/Department) at (Your Preferred Store) Be a Good Source for
Your Needs When It Comes to Getting Something Quick to Prepare or Eat for…?*
Bakery
Dairy
Deli
Prepared
Specialty
Cheese
Specialty
Meats
Healthy Snacks
28%
52%
28%
28%
44%
28%
Indulgent or Interesting
Snacks
42%
27%
23%
25%
39%
22%
Occasion
*Source: IDDBA, Engaging the Evolving Shopper 2014. Responded to category questions n=405 – Bakery; n=460-Dairy; n=372Deli; n=356-Prepared; n=318-Specialty Cheese; n=325-Specialty Meats. Highlighted percentages indicate top categories for
Copyright 2015 IDDBA, in partnership with The Hartman Group
each daypart.
12
Snacking Opportunities: Building Better Snacks
Key Drivers on Snacking Occasions for Fresh
Perimeter Categories
Time
As consumers continue to feel that their
lives are busy and time-compressed,
retailers need to focus on providing them
with quick, yet exciting, new and relevant
food for modern lifestyles. Now, more than
ever, consumers are recognizing and valuing
higher-quality ingredients and meaningful
authenticity.
As consumers approach these areas of the
fresh perimeter for snacking occasions,
their expectations for fresh, less processed
are high, as demonstrated by the fact that
many consumers, while time-pressed, are
still willing to leave their primary store for a
specialty store in search of better
alternatives.
quickly so they can get back to the family.
And empty nesters, on the other hand, may
think of convenience in snacking as allowing
them easily to explore new foods. The Dairy,
Deli, Bakery, and Specialty Cheese areas are
all well-positioned to deliver on these
notions of convenience, without the tradeoff on quality and freshness that consumers
may perceive in center-store-focused
categories.
Convenience
The notion of convenience comes to the
forefront for most consumers and is highly
connected to a perceived lack of time or
energy to do something. In the retail
setting, consumers often see a trade-off
between convenience and freshness. Focus
on quality cues that help indicate fresh, less
processed, such as made-on dates, local
sources.
In eating, a desire for convenience can mask
powerful unmet consumer needs, which are
important for the retailer. For example,
young, single consumers are often insecure
about their cooking/snack prep skills:
convenience means eliminating the risk.
Young families, alternatively, may think of
convenience as helping them to make food
Health/Freshness/Protein
Consumers are increasingly tuned into their
stores for healthy and inspired snacking. For
snacking ideas, a quarter of consumers look
to in-store nutritionists, and 13% look to
chefs, indicating that consumers are seeking
out both healthy and inspirational snacking
ideas in the fresh perimeter.*
Protein continues to be top of mind for
consumers, particularly in relation to
satiety, weight management, and sustained
energy (51% of consumers express seeking
out protein in their daily diet**). There is an
opportunity to expand the range of items in
Deli, Dairy, Specialty Cheese, and Bakery by
focusing on combinations with other
protein sources (such as nuts and grains).
*Source: IDDBA, Engaging the Evolving Shopper 2014 (n=869 U.S. adults).
Copyright 2015 IDDBA, in partnership with The Hartman Group
**Source: Hartman H&W Study, 2013.
13
Snacking Opportunities: Building Better Snacks
Key Drivers on Snacking Occasions for Fresh
Perimeter Categories
Exploration
Consumers continue to eat for discovery and
exploration (47% of consumers say they really
enjoy anything new and different or trying
new kinds of ethnic cuisine*). The fresh
perimeter area provides an opportunity for
consumers to explore, while at the same time
enables desires for highly personal and
customized choices.
Indulgence
Pret a Manger’s single-serve chilled, seasonal soups
(Sweet Pea & Mint, and Gazpacho) focus on
freshness, indulgence, and seasonal ingredients.
Consumers are seeking out both healthy and
indulgent snacking, and are no longer willing
to make trade-offs. The fresh perimeter can
address both of these needs simultaneously
through global flavors and formats, texture
variety, and even by expanding upon savory
flavors (e.g., a seasonal-vegetable singleserve chilled soup in the summertime).
British Retailer
Waitrose combines
global exploration and
snacking with its
‘Warming and Savoury
Black Bean
Chimichangas
Portion Control
Consumers are making changes in their
snacking behavior, opting for healthier
choices and better portion control. The fresh
perimeter offers a unique opportunity for
consumers to buy smaller-sized fresh items
that can be eaten either individually as a
small snack or ‘mix and match’ for more of a
‘mini meal.’
Pre-portioned Deli items, perfect sized
“I usually buy little grazing things. That whole section in the deli is
good for me — things like pickles, antipasto, small sandwiches.”
~Susan, 58, Seattle
*Source: The Hartman Group syndicated study on the Culture of Millennials, 2011, n=2,674.
Copyright 2015 IDDBA, in partnership with The Hartman Group
14
Snacking Opportunities: Building Better Snacks
Actionable Ideas – Bakery
While most shoppers will admit to (at least
occasionally) enjoying treats from their
store’s Bakery department, an analysis of
shopper profiles and preferences in Bakery
reveals that retailers and manufacturers face
unique challenges in terms of matching
product offerings with evolving consumer
preferences.
•
Provide mix and match options,
allowing consumers to buy smaller
portions and try new, interesting
flavors.
•
Create opportunities for shoppers
to customize and personalize, for
example, with an in-store bread
slicer.
There is an increasing opportunity to deliver
on key wellness priorities, particularly in
snacks, focusing on fresh, whole grain, and
gluten-free products.
Key Actionable Ideas for Retailers:
•
•
Deliver on freshness. Consider a tortilla
press stand in the bakery, allowing
consumers to perceive both the high
standard of freshness and how the
product is made.
In-Store Bakery Bread Slicer for
Shoppers
Focus on petite, smaller-portions of
indulgence. While freshness is a focus
in the Bakery area, permissible
indulgence is also a key driver, as
consumers still seek out small ‘treats’
but without the feeling of regret (e.g.,
cake pops, macaroons, petit fours).
These would include products made
from real sources of sugar/sweetness
(e.g., maple, honey, real fruit) and
‘good fats’ (e.g., real butter, coconut
oil, olive oil).
In-store bread
slicers allow
consumers
customization
and optimal
freshness
when slicing
bread.
Bulk Cookies in the Bakery
For photos of snacking ideas and innovations,
view the 2015 IDDBA Show & Sell Albums at
https://www.flickr.com/photos/iddba/albums.
A bulk cookie option allows customers to mix
and match flavor varieties rather than
buying entire packages of one flavor.
Copyright 2015 IDDBA, in partnership with The Hartman Group
15
Snacking Opportunities: Building Better Snacks
Actionable Ideas – Dairy
Shoppers seek Dairy as a key place to find
healthy snacks – an ever-more important
meal occasion. Dairy department
shoppers are the most pervasive of all the
fresh perimeter category shoppers 1, so
there is a significant opportunity to reach
a large number of customers with new
ideas in snacking. Tap into snacking trends
by focusing on emerging quality
distinctions in the category.
Key Actionable Ideas for Retailers:
•
Focus on the opportunity for
discovery in Dairy, emphasizing new
types of products, such as snack-size
Dairy, for both yogurts and Dairy
beverages, including drinkable
yogurts, kefirs and alternative milks
offering a quick and healthy pick-meup, an introduction to global and
culinary flavors alongside clean
sources of protein and energy.
•
Alternative milk/yogurt options
made by small manufacturers,
emphasizing local, clean, and fresh,
less processed.
•
For Millennials, Dairy is a food; for
Boomers, Dairy is still a beverage.
Ensure that Dairy provides snackable
options for both food and beverage.
Consider cross-departmental cheese
and meat grab n’ go options
1 - Source: IDDBA Engaging the Evolving Shopper, 2014.
Drinkable Dairy such as Siggi’s (drinkable
Icelandic yogurt), Dahlicious Lassi (Organic
Turmeric flavor provides global flavor
exploration), and Califia Farms Almondmilk
with Protein (drinkable alternative milk protein
snack) provide a quick, healthy snack through
Dairy and alternative Dairy beverages.
Mini Greek Yogurt
Culture Yogurt’s Mini
Greek Yogurt with
Vermont Maple
Topping, focused on
small-batch, local
ingredients and flavors
grab ’n’ go Fresh Cheese and
Meat Snack
Small-portioned grab ’n’ go
cheese and meat snacks
offer a quick protein kick
and a Deli/Dairy crosscompartmental offering.
For photos of snacking ideas and innovations, view the
2015 IDDBA Show & Sell Albums at https://
www.flickr.com/photos/iddba/albums.
Copyright 2015 IDDBA, in partnership with The Hartman Group
16
Snacking Opportunities: Building Better Snacks
Actionable Ideas – Deli and Prepared Foods
In Deli and Prepared, there are many familiar
foods that consumers encounter across any
grocery Deli area. So inspire consumers as
they approach the Deli by creating stronger
links between the Deli area and unique
restaurant-inspired foods. Describe the
foods/ingredients much as a restaurant may
on a menu, citing local and special ingredients
(free range, grass fed, Walla Walla sweet
onions, Michigan cherries). Format
innovations will also be key to deliver on
snacking: packaging and preparation methods
that allow products to be flexibly stored,
prepared, or consumed in any number of
ways, for any number of people, needs, or
occasions.
Key Actionable Ideas for Retailers:
•
Deliver restaurant-quality snacking.
Sushi is a strong performing category in
the Deli area, often because sushi is a
“manned theater”, with Japanese chefs
“on stage” preparing the food, indicating
its ‘restaurant-quality freshness.’
•
Glean inspiration from other cultures’
small-plate eating traditions (tapas, dim
sum, mezzes). US consumers are
increasingly seeking “real food” in lieu of
chips and crackers as a way to fuel
themselves. Continue these notions into
other categories of Deli-prepared foods
so that consumers can see the product’s
connection to both fresh, less processed
and the globally inspired snacks.
Copyright 2015 IDDBA, in partnership with The Hartman Group
•
Create in-store Deli destinations,
where consumers can find product
solutions and ideas for the needs and
desires emerging from our modern
eating culture. For example: endcaps
featuring an array of component-like
products that inspire consumers to
flexibly build baskets for snacks
(and/or meals).
grab ’n’ go deli
Zupan's Markets
Create a destination of discovery and pragmatism in
the Deli. Feature complete solutions to partial
components; fully cooked to partially prepared; snacklike appetizers to traditional entrées.
The Deli as a Destination for Discovery and Inspiration
Offer small portions
of pre-sliced artisanal
salamis that
consumers can mix
and match with
cheese and crackers.
Small Portions for Snacking at
Zupan's Markets cheese department
17
Snacking Opportunities: Building Better Snacks
Actionable Ideas – Specialty Cheese
Focus on the experience. Shoppers often
turn away from their primary stores when
purchasing specialty cheese (only ½ of
Specialty Cheese purchases occur at
shoppers’ primary stores*); they are
signaling a low level of satisfaction.
departments. For example, cheese &
antipasto, or cheese & fruit grab and go
(such as Starbucks’ Protein Bistro Box),
which also provides the consumer with
an opportunity to be creative and mix
and match snackable ingredients.
Meet consumer needs by ensuring that
there are fresh, interesting and unique
items. There is an even greater opportunity
to fully engage with consumers by bringing
in cheese specialists, so that consumers can
learn more about the product and get new
snacking ideas directly from the ‘experts.’
Key Actionable Ideas for Retailers:
•
Bring the Specialists in: Bring the
cheesemonger in-store. An in-store
kiosk across many stores allows
consumers direct access to the cheese
specialists, providing an opportunity to
learn about products from a healthy
snacking and indulgence perspective.
•
Focus on Flavor Discovery: Small
portions of bite-sized, snackable, global
cheeses.
•
Offer fresh, less processed, local
options that are also easy to snack on
(pre-cut/pre-portioned), such as
Beecher’s cheese curds.
•
Cross-departmental Dairy and Deli
offerings. Snackify products by
combining petite-sized and moderately
priced components from different
In Store Cheese Kiosk
In-store cheese cave — Bringing
the Specialty store to the Grocery
Consumer.
Protein Bistro Box
Play with the idea of a mix and
match bento box: Crossdepartmental Dairy and Deli
offerings: snackable cheeses, meats,
bread, eggs, and fruit.
*Source:
IDDBA Engaging the Evolving Shopper 2014. Responded to category questions n=405- Bakery; n=460-Dairy;
n=372-Deli; n=356-Prepared; n=318-Specialty Cheese; n-325-Specialty Meats.
Copyright 2015 IDDBA, in partnership with The Hartman Group
18
Snacking Opportunities: Building Better Snacks
Appendix: Objectives and Approach
Objective:
The objective of this white paper was to provide members a better understanding of
cultural, wellness, and eating trends driving consumer snacking behavior today and to
provide actionable ideas for leveraging snacking opportunities in fresh perimeter
departments.
Approach:
This work leveraged IDDBA’s 2014 consumer study, Engaging the Evolving Shopper:
Serving the New American Appetite in addition to The Hartman Group’s extensive
syndicated study database and trends work.
Hartman Intellectual Capital:
We mined our extensive cache of Health & Wellness and Food Culture intellectual
capital for insights into the tensions, drivers, and trends influencing consumers’
snacking behavior in the Deli, Dairy, Bakery, and Specialty Cheese departments.
Hartman Syndicated studies and reports highly influential in this analysis are:
»
Ideas in Food, 2015
»
Modern Eating: Cultural Roots, Daily Behaviors, 2013
»
Wellness Syndicated Study, 2013
»
The Culture of Millennials, 2011
»
Hartman’s Eating/Drinking Occasions Database, which contains a total of 54,000
eating/drinking occasions. Using the database, we analyzed occasion-level trends
in snacking.
For photos of snacking ideas and innovations, view the 2015 IDDBA Show & Sell Albums at
https://www.flickr.com/photos/iddba/albums.
Copyright 2015 IDDBA, in partnership with The Hartman Group
19
International Dairy-Deli-Bakery Association
636 Science Drive, Madison, WI 53711-1073
608-310-5000; iddba.org
IDDBA is a nonprofit membership organization serving the dairy,
deli, bakery, cheese, and supermarket foodservice industries.
Member companies enjoy many benefits and services including
the annual seminar and expo, leading-edge research, training
programs, management tools, and an annual trends report.
ABOUT THE HARTMAN GROUP
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www.hartman-group.com