The analysis revealed several common considerations for how shoppers think about value, both for the food and beverages they buy and the stores and channels they choose to shop, as inflation, while slowly edging downward in April, persists. Emerging dimensions of value regarding quality, relevance, experience and convenience are bucking the long-held definition of value being measured by a simple equation of higher quantity at a lower price.

“Understanding how dramatically grocery shoppers are expanding their definition of value is imperative for the food industry as consumers adjust their purchasing patterns and habits amid continued economic uncertainty,” said Leslie G. Sarasin, president and CEO of FMI.

“This report highlights that price is not necessarily the be-all-end-all when it comes to shopper perceptions of value, and also that the notion of value itself has become an increasingly more complex, subjective and even personal calculation.”

While shoppers say that getting good value is a priority across all income and demographic levels, younger shoppers are clearly driving the shifting definition of value toward a more holistic measurement that goes beyond the traditional price-to-quantity ratio.

Demographic explorations within the report revealed, for example:

• At 62 percent, Millennials increasingly say they prefer to minimize food waste by buying only what they need, a strategy that speaks to relevance.
• Convenience and a pleasing shopping experience are also key drivers of value for younger shoppers: 47 percent of Millennials say that they are willing to spend more money to avoid shopping at multiple stores, while 50 percent say they would spend more to shop at more pleasant stores, compared to just 16 percent of Baby Boomers who express those sentiments.
• Younger shoppers are also more willing to buy the best quality items regardless of price. Fifty-two percent of Millennials and 42 percent of Gen Z-ers express that sentiment, compared to just 22 percent of Baby Boomers.

Among the 75 percent of shoppers expressing concern with rising food prices, two strategies are being utilized across all income levels – increased deal seeking and 41 percent of shoppers who are purchasing more store brands.

“There is a perception that shopping in-store is the best method for getting good value,” Sarasin said. “This belief is shared across all generations, although younger shoppers are more flexible and more likely to see value in both online and in-store shopping, depending on the situation.”

FMI – The Food Industry Association works with and on behalf of the entire industry to advance a safer, healthier and more efficient consumer food supply chain. FMI brings together a range of members across the value chain — from retailers to producers to companies supplying critical services — to amplify the collective work of the industry.

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The study also shows that pandemic habits persist with 68 percent of respondents indicating that they are shopping more online, with delivery speed and flexibility being the No. 1 factor (85 percent) driving where they shop.

The report, “Post Pandemic, New Recession: 2023 Global Guide to Consumers,” provides insights on what is driving shoppers to buy online in the midst of higher prices, rising layoffs and continued worry about a possible recession.

This survey of more than 6,000 shoppers from the U.S., France, Germany, Great Britain and Australia found that despite current economic uncertainties, product quality is more important to consumers this year than discounts, with 81 percent saying product quality is the No. 1 factor that keeps consumers loyal to the brands they love.

“The pressure is on this year as consumers become much more selective about their purchases. While price is a key factor in purchasing decisions, it’s not the only thing that is swaying these careful consumers,” said Cara Wood, head of research at Salsify.

“Product quality is under much greater scrutiny, and more than half of consumers said they wouldn’t buy a product with bad product content that doesn’t include enough information or includes low quality images. In fact, strong product content is so important that shoppers are more likely to purchase products from unfamiliar brands or those with bad reputations than those with missing or bad information.”

Additional insights from the study revealed the following trends:

Private-label products winning likes from consumers

As companies develop premiumization strategies with specialized products and services to drive higher revenues, consumers equate some cost savings with store-brand or private-label products, with 63 percent choosing private labels because of their low prices. Shoppers are also willing to buy the store brand product in most categories, so commodities like groceries and cleaning supplies brand names are often the most vulnerable to being replaced.

The new U.S. shopping war is parents versus non-parents

While brands have long engaged in marketing to parents for kid products, U.S. brands may be missing an opportunity to tap into how differently parents think about purchases across categories.

Brand trust matters to the majority, but it holds slightly less clout with parents. Fifty-six percent of parents compared to 65 percent of non-parents say they spend more when it’s a brand they know. However, ethical standards matter more to parents (34 percent of parents versus 23 percent of non-parents).

Shopping and social issues differ by income and gender

As brands work to win over careful consumers, they cannot ignore social issues such as climate change. The survey showed how these issues are impacted by income and gender.

Income may inherently play a role in a lower carbon footprint. Low-income homes are the least likely to return products. Eleven percent said they never return items bought online vs 2 percent of those higher-income homes.

The survey also showed that 24 percent of men research a company’s sustainability practices before buying, compared to 17 percent of women. Men are also more likely to research a company’s public stance on social or political causes with 21 percent doing so, versus 16 percent of women.

For more merchandising news from The Shelby Report, click here.

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Shah will be responsible for merchandising strategy and analytics for the overall merchandising business. He will also lead promotional planning, shelf technology, category management and merchandising data analytics.

“Arpen is an astute and people first merchandising executive who has a strong background in category management and analytics,” said Bennett Morgan, SVP and chief merchandising officer. “His expertise and relentless innovative drive will accelerate our customer-led merchandising transformation.”

Shah joins SpartanNash from Essendant, where he served as senior director of merchandising enablement. Prior to Essendant, Shah held roles at U.S. Foods, United Stationers and Canon.

The hiring of Shah showcases SpartanNash’s investment in its merchandising transformation – discussed at the company’s Investor Day – which involves leveraging data and insights to drive enhanced category planning, promotional effectiveness and customer-focused innovation.    

SpartanNash has a diverse group of national accounts, distributing grocery and household goods, including its Our Family portfolio of products, to locations in all 50 states, in addition to distributing to the District of Columbia, Europe, Cuba, Puerto Rico, Honduras, Iraq, Kuwait, Bahrain, Qatar, Djibouti, Korea and Japan.

To support its distribution business, it operates a network of distribution facilities and a nationwide transportation fleet. In addition, the company owns and operates 147 supermarkets – under the banners of Family Fare, Martin’s Super Markets and D&W Fresh Market.

For more information about the distributor, visit spartannash.com.

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Kelso brings more than 23 years of experience at B&R Stores, having joined the company as a clerk in Omaha and steadily rising through the ranks. He has demonstrated his competence, professionalism, leadership skills and commitment to the company’s core values throughout his career.

His time at B&R Stores includes various leadership roles, including store director and district manager for the Russ’s Market and Super Saver groups of stores. He has been instrumental in implementing initiatives, such as computer-assisted ordering, and he played a role in the acquisition of C&R Markets in Missouri.

“I am deeply honored and grateful for this opportunity to serve as VP of store operations for the company,” Kelso said. “I am committed to upholding B&R Stores’ values and leading our extraordinary team of employees to deliver exceptional experiences for our customers.”

Mark Griffin, president of B&R Stores Inc., expressed his confidence in Kelso’s capabilities, stating, “I am proud to say Nick is fully qualified to take on additional leadership responsibilities for the company. As the embodiment of a servant leader, Nick knows in his heart, it is the company’s people who matter the most. Nick is a true motivator of people who inspires those he leads to perform at their best.”

B&R Stores Inc. was founded in 1964 by Russ and Anita Raybould. The family-owned company has grown to include several supermarket banners, including Russ’s Market, Super Saver, Apple Market, Allen’s, Cash Saver, C&R Markets and Joe’s Market located in Nebraska, Iowa and Missouri.

For more information about Kelso’s promotion, click here.

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Food will always be consumers’ priority in tough and good economic times, whether eaten at or away from home, according to Circana food and beverage and foodservice industry analysts speaking at the company’s Growth Summit March 20-22 in Las Vegas.

When faced with higher prices, consumers will use multiple tactics to reduce or reallocate at- and away-from-home food spending, like trading down to private label, buying in bulk, using more leftovers or choosing a quick service restaurant over a full service restaurant.

Higher food costs have had an impact on discretionary spending. David Portalatin, Circana food and foodservice industry advisor, told Growth Summit attendees that some of the declines in discretionary retail spending last year were due to the need to fund higher spending on food and beverage. 

At- and away-from-home food and beverage sales grew 8 percent in 2022, exceeding historical norms. At-home food spending remains a larger portion of the food and beverage sales, 61 percent, which corresponds with the 86 percent of annual eating occasions sourced from grocers and other retail outlets, said Cara Loeys, principal, of CPG client engagement at Circana, presenting with Portalatin on the “Complete Food & Beverage Consumer” at the summit.

Retail (at home) food and beverage sales were up 9 percent and reached $931 billion in the 52 weeks ending December, and direct consumer foodservice spending was up 6 percent with $606 billion in sales. With higher food costs and a return to many pre-pandemic routines, consumers have shifted their eating and spending behaviors.

However, consumers are likely to get “frugal fatigue” and start to acclimate to the current pricing situation, indicating there is no need to race to the bottom of the price ladder. While 2022 was about value pricing to manage budgets, Portalatin explains that 2023 will be about the other attributes that play into value.

“Price will always be important, but consumers define value differently. For example, consumers who visit a restaurant aren’t necessarily looking for the cheapest meal,” Portalatin said. “They’re looking for the menu items they crave or foodservice outlets that offer quality and variety and enable them to treat themselves.”

Portalatin and Loeys expect consumers to manage high food costs in 2023 with the same behaviors they used last year, like trading down, shifting to value retail channels or from full service to fast casual restaurants. They advised the Summit audience to stay focused on consumer needs. Targeted approaches in delivering convenience and value, innovation and using digital to alter consumer interaction with brands are ways for food manufacturers, retailers and foodservice operators to win in 2023. 

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Topco is seeking suppliers to help expand its supplier partnership portfolio and sourcing capabilities to provide member-owners with an assortment of products and offerings. This includes identifying new, regional and/or certified diverse suppliers that also align with macrotrends the industry is leveraging, such as changing economics, food as medicine and transparency. These trends cater to the wants and needs of the cooperative’s 64 million collective shoppers, spanning 15,000 retail locations and online throughout the country.

“Considering the landscape of the industry, we’re experiencing a notable shift in interest towards our own brands, especially as those items become more of a point of differentiation than merely a value proposition,” said Dan Glei, K-VA-T Food Stores’ EVP of merchandising and marketing, who also serves as the Topco Operations Team co-chair.

“By leveraging Topco’s collective volume to provide additional paths of supply, it helps us ensure these items are available to our shoppers.”

Through March 28, prospective suppliers can apply through RangeMe by clicking the link here. Approved suppliers will meet with Topco category and sourcing teams to discuss their capabilities utilizing the ECRM Connect platform. This opportunity could give suppliers access to the cooperative’s member-shoppers.

“We are continuously seeking innovative ways to support the membership and reiterating the value that commitment to Topco programs can provide,” said Christine Heffernan, Topco’s SVP of center store sourcing and supply chain.

“Working with RangeMe on this effort is another avenue we can utilize to provide member-driven solutions to ensure ample supply to support our members.”

Topco Associates is a privately-held, member-owned company that provides aggregation, innovation and knowledge management solutions for its food industry member-owners and customers, including grocery retailers, wholesalers, food service and pharmacy companies.

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Natural product sales continue to climb, and interest and usage has increased across all age groups, particularly with Gen Z and Millennial shoppers. These customers also tend to be more affluent, placing a higher emphasis on leading a healthy life, being ecofriendly and concerned for animal welfare. 

“When we ask natural and organic shoppers of all ages the most important influence in their product choices, the top response is their focus on being healthier, including the avoidance of chemicals, pesticides and processed foods,” said Kathy Risch, SVP of consumer insights and trends at Acosta Group.

“These shoppers place nearly equal importance on ingredients as they do on price, while conventional shoppers place more importance on price alone.”  

However, the study also found that when natural/organic shoppers are asked to explain the difference between natural and organic, many find it challenging, responding that the two are “similar” or that they are “unsure.” 

“This knowledge creates an exciting opportunity for brands and retailers to further educate both natural and organic and conventional shoppers,” Risch said.  

Other key findings and implications from the study include: 

• With natural/organic product sales on track to reach an estimated $300 billion in 2024, according to New Hope Network, a selection of natural/organic products will be expected across the omnichannel store. This will be relevant to Gen Z shoppers, who will have more spending power over the next decade.
• The demand for increased label and ingredient transparency by manufacturers and retailers will rise and be a critical factor in purchase choice.
• For non-natural and organic shoppers, 73 percent list price as the primary barrier to purchase, with 47 percent saying that conventional products are “more practical” and 44 percent expressing skepticism about the “hype” around the products.  

“This study clearly shows the tremendous opportunity for brands and retailers to find new ways to engage with the next generation consumer that is stimulating the natural and organic category,” said John Carroll, president of digital commerce and advanced analytics for Acosta Group.

“To support further growth with these shoppers, a critical component is bridging the physical and digital shelf with an omnichannel strategy that will drive conversion and brand preference.”

Acosta Group’s Natural and Organic online survey was conducted Oct. 26-Nov. 4 with 816 primary household shoppers, ages 18-76, from Acosta’s proprietary shopper community.

For more information, visit acosta.com.

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The Product of the Year seal is a mark that allows shoppers to identify the top trendsetting products on the market, voted on by 40,000 fellow consumers, while also serving as a marketing tool for brands to build awareness, especially among competitors within their respected spaces.

“Product of the Year is more valuable now than ever. The level of access consumers have to products today is unprecedented – far beyond retail aisles, they have DTC options, grocery delivery in the palm of their hands, and they can watch their favorite influencer review items they’re considering purchasing in real time,” said Mike Nolan, Global CEO of Product of the Year Management.

“Product of the Year is an established and increasingly relevant resource for CPG companies, helping their products stand out, and be understood and trusted by their customers. Entirely new 2023 categories of Product of the Year award winners further demonstrate the ever-evolving trends we are seeing in the U.S. market, and as a company we’re thrilled to be at the forefront of recognizing these products for top performing function, design, packaging, or ingredients.” 

Some of the 36 winners of the 2023 Product of the Year Award include:

• Auto dish care – Cascade Platinum Plus – Procter & Gamble
• Bread – Aldi-exclusive Specially Selected French Baguette – Aldi
• Breakfast – Quaker Puffed Granola – PepsiCo
• Cheese – Aldi-exclusive Emporium Selection Feta Block Assortment – Aldi
• Coffee creamer – Lactose-Free Flavored Creamer in French Vanilla and Sweet Cream – Organic Valley
• Convenience meals – Hot Pockets Deliwich – Nestlé USA
• Entrée – Pasta-Roni Heat & Eat – PepsiCo
• Frozen dessert – Aldi-exclusive Sundae Shoppe Gelato – Aldi
• Home essentials – Ziploc Endurables – S.C. Johnson & Son
• Meal solution – Bob Evans Mashed Cauliflower – Bob Evans Farms
• Non-chocolate – Haribo Berry Clouds – Haribo of America Inc.
• Premixed drink – Aldi-exclusive Zarita Margaritas – Aldi
• Soft drink – Nitro Pepsi – PepsiCo

The winners were revealed at the annual awards show on Feb. 16 at the Current Pier59 in New York City. The celebration began with a red carpet, followed by a night of entertainment with Saturday Night Live alums, Rachel Dratch and Alex Moffat, hosting the show, as well as a performance by Tony Award-winning actress and singer, Beth Leavel.

For further information about the winners, visit productoftheyearusa.com.

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The report highlights trends among the activity of U.S. and international buyers on the product discovery platform, including keyword and certification searches, most visited collections and engagement with products and brands.

“The products buyers are searching for now are those that will be on the shelves in the coming months and years,” said Nicky Jackson, founder of San Francisco-based RangeMe. “By analyzing the buyer activity on RangeMe, we get a look at what will be trending next in the fast-moving consumer goods arena.”

Coffee was the most popular keyword for buyers in 2022, garnering 19.4 percent of all searches, which reflected new trends in the category including cold brew, fair trade, functional coffee and coffee accessories. Just behind coffee, representing 18.4 percent of keyword search terms was candy, a category that includes some of the top performing brands on RangeMe based on overall buyer activity and engagement, including views, saves, sample requests, purchases and direct messages. 

The keyword “mushroom” is an interesting case. With 18.3 percent of search volume, it was searched in the context of several different categories across the food and beverage and health and beauty care categories, such as “mushroom coffee” and “mushroom supplements.” Known for its versatility, availability and health benefits, RangeMe is seeing mushrooms as a meat alternative and as an ingredient in beverages, snacks, and nutritional supplements. It’s also an item growing in popularity in the foodservice segment, where it’s used in a variety of menu items.

Other popular search terms included toys, water, pet, sunscreen and candles.

Top searches in international markets

Search terms varied among the international markets analyzed, with popular U.K. RangeMe search terms including porridge, tiles, makeup and baby. For APAC buyers, salad dressing was the most popular search, followed by bacon, wet wipes and acne. In the Netherlands, lozenges topped buyer searches at 41.5 percent, followed by sun care, keto and dog cookies.

Top searches in certifications

USDA organic remains the most popular search term among certifications, representing 64 percent of search volume, with USPAACC getting 20 percent and Certified Women’s Business Enterprise at 14 percent. 

Trending collections on RangeMe

RangeMe’s Collections are groups of brands and products that fit a particular theme. “Trending on RangeMe” and “Startup Brands” are two new collections on the platform in 2022, created to showcase which brands and products are receiving the most engagement from buyers on RangeMe, and which are new to the CPG market. Since their creation, they continue to be among the most visited collections on the platform. The “sustainability” collection, which saw visits drop during COVID-19, is among the most visited as buyers are prioritizing sustainability efforts. Among international collections, the “brands from Japan” collection was most visited by buyers in the United Kingdom and the Netherlands.

To view the full report, click here.

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This latest report also offers retailers and marketers strategies for finetuning an omni-channel marketing approach to deliver relevant and valuable incentives to help shoppers make the most of their dollars during challenging economic times. 

“Inflation continues to be a big concern globally this year, with some nations’ economies impacted more than others, largely due to increases in the food and energy sectors thanks to lingering supply chain disruptions caused by the COVID-19 pandemic and the war in Ukraine,” said Sean Murphy, chief data and analytics officer.

“While inflation rates may vary across borders, shoppers have a universal appreciation for getting the greatest value for their money, which Catalina is well positioned to deliver in partnership with our retail and brand customers.”

Grocery shoppers face continued price hikes in key categories

In the U.S., the Catalina Shopping Basket Index measured a 15 percent increase in prices compared to the same quarter in 2021, posting sharper increases in most categories than the U.S. Bureau of Labor Statistics Consumer Price Index. Prices for food enjoyed at home rose 13 percent over the 12 months ending Sept. 30, and the food index overall increased 11 percent percent, according to CPI. The aggregate basket average was up 5 percent from Q1 2022.

Price increases in the basket were led by yogurt (21 percent), closely followed by cereal at 20 percent, hand and bath soaps 19 percent and soft drinks and water 18 percent. At the other end of the spectrum, the basket’s average price posted more modest increases in paper products at 9 percent and soaps and detergents at 6 percent. 

Strategies for marketers in inflationary times

“Insights about traditionally price sensitive and value-seeking shoppers apply to more consumers now. This is an opportunity for brands to fine-tune their omni-channel approach to deliver relevant offers and valuable incentives to help shoppers make the most of their dollars in these inflationary times,” said Murphy, who advises brands to consider strategies that are designed to combat inflation:

• To drive sales lift and build loyalty, build omni-channel campaigns that include multiple digital channels and in-store point-of-sale offers.
• Maximize dollars by developing targeted shopper cohorts, built from finely tuned audience segments.
• Use a real-time feedback loop to measure and continuously adjust campaign performance to stretch marketing budgets farther.

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