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 The Hartman Group is the premier food and beverage consultancy in the world. Companies and brands across all segments of the food and beverage industry benefit from our unparalleled depth of knowledge on consumers, culture, trends and demand-side market strategy. www.hartman-group.com
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