Manufacturers of packaged goods, beware! According to a Wall Street Journal story, grocery store chains around the U.S. are building new stores that have more space for fresh foods and in return are downsizing the center aisles traditionally allotted for shelf-stable products. Add to that the increased competition from private label and boutique brands, and you have a forecasted decline in sales numbers. According to the global market research firm Nielsen, sales volumes for packaged goods dropped by 2.4 percent in the first quarter of 2017. With more and more consumer food preferences shifting to healthier and fresher options and paying closer attention to nutritional labels, and with falling food prices that make fresh items more accessible to the general consumer, a lot of mainstream packaged food products could be in danger. Even drugstore chain CVS plans to upgrade hundreds of its stores to offer healthier products. Although it may be a small drop in numbers now, it looks like it could become a steady decline. According to Nielsen analyst Jordan Rost, “It’s death by a thousand cuts.”
You don’t have to tell Ahold USA to get on the fresh bandwagon. The retailer hosted its annual Locally Grown produce vendor meeting late last month at is Carlisle, PA headquarters. The meeting, which gathered the area produce vendors for both the Carlisle and Landover divisions, did an overview of what the area’s grocery leader is currently doing to promote local produce, their successes and their missteps, and a road map on how they intend to improve the marketing and presentation of these items to their customer base. The emphasis was on strengthening their brand by offering customers “a world class ‘Buy Local’ program that is relevant in each specific geographic location” in which they operate. Several objectives were talked about, all with the intent of making the Giant the retailer of choice for locally grown produce by successfully promoting and selling the attendees’ products. Also discussed were three pillars needed to improve customer experience: help them to save money, save time and eat well. Brian Fleming, AUSA’s category director of vegetables, presented the core of the presentation with support provided by Kris Sechler, produce merchandiser, and Mark Minns, produce buyer. David Lessard, VP of produce merchandising, and John Ruane, senior vice president of perishables, were also there to show support during the presentation, which was full of great information but still moved succinctly. The importance of collaboration was highlighted throughout the meeting, with the retailer continually emphasizing their commitment to putting the spotlight on local producers. Also presented was a Thunder III update and the different produce area formats for the stores based on their location and customer demographics. To close out the morning gathering, the retailer recognized the Local Growers of the Year for the two area divisions. Lester Garber and Laban Garber of Country Acres were honored for their service to the Carlisle division while the corresponding award for Landover was presented to Curt Fifer of Fifer Orchards. It was a very successful meeting in my opinion with all attendees feeling not only encouraged by the support offered by Ahold but also secure in the strength of their partnerships with the retailer.
Bozzuto’s announced a record breaking donation of 56,000 pounds of food to the Connecticut Food Bank this month. The generous donation is a result of charitable contributions given at the leading food distributor’s annual Independence Retailer Conference that was held in March. “Thanks to the ongoing support and generosity of our valued customers and suppliers, we were able to implement some exciting changes this year which led to our largest Food Show donation in the company’s history,” stated Steve Heggelke, executive vice president of merchandising. “This momentous food donation translates to 47,340 meals for Connecticut residents in need.” The two-day conference, which this year switched to an invitation-only format, hosted 658 vendors.
Another regional wholesaler engaging in philanthropic endeavors is C&S, which this year is celebrating 10 years of partnership and sustainability leadership with The Conservation Fund.
“We’re proud to be among the supporters of The Conservation Fund, one of the nation’s most respected and effective environmental organizations,” said Richard B. Cohen, chairman and CEO of C&S Wholesale Grocers. “Working together to plant trees and protect working forests is part of our aim to be a more sustainable enterprise. Our partnership with them enhances our investments in recycling, energy efficiency, and logistics technology.” To commemorate this anniversary, the wholesaler made a donation to the environmental non-profit’s Working Forest Fund which will offset the forest footprint of approximately 20,000 wood pallets used to transport and store the food and goods that C&S distributes to its customer base. Since 2005, C&S has contributed to the planting of nearly 100,000 trees across more than 250 acres in six national wildlife refuges in states where the company has operations and employees. These trees will trap an estimated 75,000 tons of carbon emissions as they mature. C&S has worked with The Conservation Fund each year to measure the carbon footprint of its corporate headquarters buildings, several of its distribution centers, and the estimated round-trip commute of its employees. The Conservation Fund plants native trees in wildlife refuges across the country to offset the carbon emissions. Over time, these trees will trap carbon dioxide, filter pollutants from waterways, and provide habitat for a variety of wildlife species.
For the second year running, Safeway Eastern offered healthy eating tours for diabetics in partnership with area registered dieticians at several of its locations. The 90-minute guided tours, which took place starting at the end of March and throughout the whole month of April, focused on three primary areas: healthy eating choices; reading and understanding labels; and finding healthier alternatives. The tours offered those diagnosed with diabetes and pre-diabetes the opportunity to receive dietary and medication counseling from both a registered dietician and a pharmacist as part of the retailer’s Eating Heathy with Diabetes program. I took the tour at the Boston Street Safeway in Baltimore and, although I am not diabetic, I found it to be very educational, with information that I could apply to my everyday grocery shopping. The dietician was very knowledgeable and fielded all of the questions asked with ease and confidence. The consensus among the attendees was very positive, who as diabetics found it very helpful. I also think Safeway did an excellent job of promoting the program, since all of the attendees learned about the tours in different ways – some saw it in the retailer’s circular, a couple of people heard about it through the store’s overhead speakers during a shopping trip, one was referred by the store pharmacist, and another person found out about it at a local clinic through distributed flyers. Overall, I was very impressed with the program and I hope more people take advantage of it when it is offered again next spring.
And lastly, it is with a heavy heart that I must report on the passing of Supervalu’s senior vice president of merchandising, east region, Manda Johns. The talented, vivacious Johns was taken away far too soon after her battle with cancer. She was beloved by all those she met (even briefly) and will be missed. I will remember her as always having a shining bright smile on her face. In lieu of flowers, it has been requested that an honorary donation in Manda’s name to the National Cancer Institute at the National Institutes of Health and aid their effort to cure and treat cancer. Director National Cancer Institute, Building 31 Room 11A-16, 9000 Rockville Pike, Bethesda, MD 20892, https://www.cancer.gov/about-nci/overview/contributing.
Until next month…