Jose Llop

February 1, 2015

2015 - by Jeff Gelski

Jose Llop

February 1, 2015

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Donut innovation gains momentum

1/14/2015 - by Jeff Gelski

Spotlight on Hispanic trends instore, 1/22/2015 by John Unrein

Jose Llop

January 28, 2015

Hispanic grocery stores report that business is steadily improving over the past three years, as consumer confidence and spending continues to improve. Hispanic bakeries and other Hispanic businesses are playing a key role in the recovery.

A study recently released by Geoscape and supported by the United States Hispanic Chamber of Commerce reveals that Hispanic businesses are a fast-growing and critical part of the U.S. economy. During the past decade, the number of Hispanic-owned businesses doubled, growing from 1.6 million in 2002 to a projected 3.2 million in 2013. This year, the projected combined annual revenue of these businesses is over $468 billion, marking an increase of over $100 billion in the past six years. Hispanic business owners are 86% more likely to have household incomes between $100,000 and $149,000.

Well-established Hispanic grocery stores like El Rey Food Markets, which opened its first store in 1978, are bolstering their customer appeal with the use of eye-catching promotions and innovative product lines. “We run weekly specials through our local newspaper where flyers are distributed to individual households in the neighborhoods where our stores are located,” says Villarreal of El Rey Food Markets. “Our main festival of the year is Fiesta Mexican at the Summerfest grounds. We have a booth there of only our bakery products. Also, during the year, if there are different events in the morning, we are always asked to donate fresh bakery for the events.”

Wedding and quinceañera cakes also represent a growing part of El Rey’s business because, as Villarreal explains, of the convenience factor. “The people want to order from a reputable bakery and business that they are familiar with,” he says. “We can make simple one-tier cakes to cakes with up to five tiers and all kinds of other attractions on such as swans, water fountains and so on. The people are able to pick their batter, their filling and their frosting, as well as the decoration, of course.”

The majority are customers who shop El Rey are of Hispanic origin, especially at their location on Cesar E. Chavez. “Our stores and products are what matters to all of our customers,” he says. “We still have to maintain our Hispanic heritage in our products, which is our calling card. But we are also always adding products that might appeal to a cross-section of customers.”

Carlos Jacobo of Jacobo’s Grocery agrees that shoppers will come back to your store when they understand your passion for excellence. That is one of the most important lessons he’s learned in 37 years at Jacobo’s. “Being able to build a strong customer base takes time,” he says. “But when you have great pride in what you are doing, the customers really appreciate your products. That’s the reason the customers come back for more.”

Lunch is key day-part

Following a Hispanic cultural tradition US Hispanics have their largest meal of the day at lunch and consume more of these meals in the home than away-from-home. As a result, this large population group is influencing overall growth in the food categories they typically consume at lunch, reports The NPD Group, a leading global information company.

Seventy-three percent of U.S. Hispanics’ lunch meals are prepared and consumed in-home compared to 62 percent of non-Hispanics, according to NPD’s NET (National Eating Trends) Hispanic, which is a year-long study of US Hispanics’ eating behaviors. Spanish-language dominant Hispanics represent just 29 percent of total lunch traffic at restaurants compared to 34 percent for non-Hispanics, and total Hispanics represent 32 percent of foodservice lunch visits, according to NPD CREST Hispanic, which continually tracks how US Hispanics, by level of acculturation, use restaurants.

With lunch being the largest meal of the day for US Hispanics, there is a greater diversity of foods prepared by Hispanics compared to non-Hispanics. For example, while sandwiches are the top items for Hispanics, they are only present at 18 percent of afternoon meals (38 percent for non-Hispanics), finds NPD.

Sandwiches are very closely followed by soup and rice as top dishes during the afternoon meal. In fact, 13 percent of Hispanics’ afternoon meals include rice, compared to just one percent for non-Hispanics. There is also evidence that many of these rice dishes are either homemade or partly homemade, as they are often prepared using cooking oils and spices as opposed to heat-and-eat or pre-flavored offerings.

Rice is an example of US Hispanics’ rising influence on overall consumption trends. Rice is included in about 2 percent of in-home meals across the US population, according to NPD’s NET information. However, NET Hispanic shows rice consumption rises to 8 percent when looking specifically at the US Hispanic population.

“As Hispanics become an even greater influence on our culture and society, marketers would be wise to engage them in a manner that reflects their behaviors,” says Darren Seifer, food and beverage industry analyst. “For example, rice is currently thought of as a dinnertime item, but perhaps it’s time to rethink this given the ways it is consumed among Hispanics.”

Hispanic flavors

Hispanic flavors are enhancing key product categories at Hispanic grocery stores, as they expand their bakery product offerings with flavors and toppings such as coconut flakes, mango, guava and pineapple fillings, or dulce de leche. Bakery shoppers are increasingly on the lookout for new twists on traditional bakery products. Mango cream donuts are one example of a donut that is gaining in popularity because of this trend. La Victoria in Stockton, CA, uses coconut flakes on one variety of its glazed donuts to add appeal for customers looking for different flavors.

Adding new flavors to donuts can be a simple way to appeal to a broader range of customers. Offering four or five standard flavors every day, as well as promoting a seasonal flavor of the month, can prove beneficial to increasing your overall donut sales. In many cases, donuts are being seen as more than a breakfast item. Creating a donut filled with dulce de leche, for example, can transform a traditional donut into an indulgent dessert item.

Cookies are another bakery item where flavors and toppings can add greatly to customer appeal. La Perla Tapatia in Chicago offers dozens of cookie flavors, including ginger, almond and strawberry. Cookies can be easily decorated to match seasonal occasions and holidays throughout the year. They can also be formed into creative shapes such as pretzels and lips, resembling a kiss.

Mil hojas, a traditional Hispanic pastry, is a popular dessert that is sold in individual slices at Alicia’s Bakery, one of Salt Lake City’s most popular Hispanic bakeries. Alicia Martinez, whose father Ezekiel owns the bakery, explains that mil hojas is quite popular because it consists of three flaky layers of pastry stacked with various fillings inside. The fillings can be fruit, chocolate or dulce de leche, depending on the recipe. Alicia Martinez says that she always preferred mil hojas over other types of cakes for her birthday cakes growing up.

Fondant cakes

Until recent years, rolled fondant cakes were not traditionally common in Hispanic bakeries, but that is changing – as tastes have evolved and Hispanic bakery shoppers have grown more acculturated. Gladys Rodriguez of Paco’s Bakery in Houston points out that Hispanic and non-Hispanic customers love their fondant cakes equally. “We have customers from everywhere,” she says. “It’s doesn’t matter where they are from, they know our cakes are good.”

One of three cake decorators at Paco’s Bakery, Rodriguez specializes in fondant cakes. Her designs are stunning: One recent cake featured a cowgirl theme for a girls’ second birthday that included a decorated bandana and a cowgirl hat on top. Another of her birthday cake designs incorporated strawberries and polka dots into the vibrant decorations.

“We use a lot of vibrant colors – hot pinks, neon and greens – for birthday cakes for girls,” Rodriguez says. “We did a first birthday baptism cake that was a three-tier cake with decorated cupcakes and cookies. They had planned out a whole table-scape.”

Current color trends in cake decorating designs include animal prints like zebra and giraffe, she says. And their cake designs keep getting bigger and bolder. “We do fondant cakes not only for birthdays, but for baby showers,” she says. “Baby shower cakes have grown to the point where they are almost as big as wedding cakes, because baby showers are so much bigger than they were a few years ago.”

Hispanic holidays
Día de los Muertos, or Day of the Dead, is celebrated Nov. 1-2 by many US Hispanics and in Mexico and Central America. Traditionally, it is a day to celebrate and honor one’s ancestors. Traditional Day of the Dead breads are formed into the shapes of skulls and bones. This occasion is based on the belief that there is interaction between the living world and the world of spirits. On the Día de los Muertos, the spirits of the dead are said to come back for family reunions. Many celebrate setting up altars in their homes to honor the memory of deceased loved ones and to welcome their visiting souls.

Pan de muerto can take many different forms. It is commonly shaped as a domed skull decorated with bones and tears made from dough, but sometimes it is made as a cross, tombstone or a human body. Bakeries cater to Hispanic populations with large displays of pan de muerto. It is common to make pan de muerto with anise- and orange-scented yeasted wheat-flour bread that is sprinkled with multi-colored sugar crystals. Some Hispanic supermarkets donate loaves of pan de muerto to schools, where they are used to educate children on Mexican culture and religion.

In early January, Hispanic grocery stores plan for the celebration of Epiphany by preparing for a surge in customer demand for rosca de reyes. This Hispanic tradition takes place 12 days after Christmas on the sixth day of January, Epiphany Day, or the appearance of the three wise men. Stores will sell hundreds of rosca de reyes during this time.

Jose Llop

January 26, 2015

How consumers will shop in 2015 1/22/2015 - by Monica Watrous

Jose Llop

January 26, 2015

LONDON — In today’s retail environment, convenience is a commodity, and shoppers are willing to spend more for it.

“Post-recessionary consumers are prepared to pay for products that simplify their hectic on-the-go lives,” said Daphne Kasriel-Alexander, consumer trends consultant for Euromonitor International, a London-based market research company. “Technology plays a big part in attaining convenience, and omnichannel shopping options creates a seamless link between virtual and ‘real world’ shops with wide consumer appeal.”

In its Top 10 Global Consumer Trends 2015 report, Euromonitor shared prevalent drivers behind the buying habits of today’s shopper. A rise in collaborative consumption and a new culture of sharing has sparked growth in such endeavors as community gardening, grouped workspaces and crowdfunding.

“In 2015, the sharing economy is growing and disrupting the way in which individuals think of space and ownership,” Ms Kasriel-Alexander said. “Consumers are increasingly preoccupied with access to goods rather than owning them outright.”

Shoppers are willing to pay more for convenience.

The value of convenience

More consumers are willing to purchase products that help them save time. Convenience stores and small neighborhood markets are thriving in many countries, as shoppers opt to buy less more often in a style Euromonitor called “top-up” shopping. The firm forecast sales in convenience stores in the United Kingdom to rise 2.5% this year, compared with a 0.2% increase at grocery retailers.

Malls in community mode

On-line shopping may be reshaping consumer spending habits, but 9 in 10 shoppers still prefer to buy in a brick-and-mortar store, according to a survey last year from management consultants A.T. Kearney. Malls are adopting a new focus on community and experience and remain revered social hubs in emerging markets, where international brands lure shoppers.

Consumers around the world also are showing favor for smaller, centrally located shopping centers over suburban megamalls.

Paying for privacy

Brands increasingly may promote personal privacy as a selling point in the wake of consumer anxiety over on-line data theft. Shoppers may be leery about location-based or targeted advertising linked to previous on-line searches, but others enjoy the tailored and personalized experience some web retailers offer. Companies may become more transparent in their use of data to ease concerns.

Consumption for a cause

In the rise of “conscious consumption,” brands are aligning with social causes, from environmental sustainability to female empowerment. As an example, an enterprise in Lisbon, Portugal, is collecting and selling less-than-perfect produce to address food waste.

Under the influence

Social media has provided a platform of expression for everyday consumers, who use video blogs and social networks to tout brands and trends.

“Ordinary consumers are already airing their purchasing grievances and joys via the ‘on-line megaphone,’” Ms. Kasriel-Alexander wrote in the report. “Consumers notice on-line reviews and trust them, and this is influencing buying decisions.”

Millennials are driving a sharing economy, wherein consumers are more interested in access than ownership.

Sharing is caring

The concept of lightweight living has given rise to a sharing economy, in which consumers increasingly are interested in access rather than ownership.

Collaborative consumption is less about saving money and more about convenience, innovation, community and environmental values, Euromonitor noted. Consumers are downsizing possessions and embracing a “pay-as-you-live” lifestyle by renting everyday items and purchasing media digitally.

Living in a millennial world

The overstimulated, oversharing generation known as millennials is more socially conscious and less brand-loyal than older consumers. Though immersed in consumer culture, this group of savvy shoppers buys fewer big-ticket items and uses technology to find the best prices and learn about trends.

Brands are responding to the habits of millennials. PepsiCo, for example, launched its Mtn Dew Kickstart caffeinated fruit juice beverage for these consumers, who exercise more than their parents did and consume energy drinks for breakfast.

Shopping the globe

More on-line shoppers are using overseas retailers to sidestep higher local prices. The trend has translated to real-world shopping, with consumers purchasing cheaper goods while traveling abroad to avoid tariffs. Brazilians flock to U.S. cities to save money on luxury items, and tech-savvy travelers are researching foreign shopping options on such platforms as Weixin, also known as WeChat, a mobile messaging service based in China.

Virtual reality

An insatiable appetite for technology has blurred the lines between e-commerce and brick-and-mortar shopping. The flexibility of multi-channel retailing may enable purchases of products not available in local stores.

Brands that are bonding with consumers on-line through contests and offers are expected to benefit from larger sales. Additionally, more products are incorporating digitally themed elements to appeal to on-line users.

Wired wellness

Consumers are approaching health and wellness on a digital level, from tracking fitness and food intake to researching symptoms on-line. Health monitoring is spilling into social media, with users sharing and competing with friends on platforms from such brands as Nike and Adidas.

“Connected health is working for consumers in other ways, with social media and blogs seen as megaphones to pressure the food industry and others into greater transparency and into altering product formulations,” Ms. Kasriel-Alexander wrote in her report. “In an on-line environment, consumer complaints can become magnified.”

For example, when Renee Shutters, an American mother, created an on-line petition highlighting the negative effects synthetic food dyes in candy had on her son, such brands as Mars committed to exploring natural alternatives.

Jose Llop

January 26, 2015

Food companies make Global 100 sustainability index 1/23/2015 - by Jeff Gelski

Jose Llop

January 26, 2015

TORONTO — Five food and beverage companies were recognized in a 2015 Global 100 sustainability index released Jan. 21 by Corporate Knights, a Toronto-based media and investment advisory company. Tim Hortons was rated No. 11 among the top 100 corporations. Following the restaurant chain were Unilever at No. 22, Coca-Cola Enterprises at No. 26, General Mills, Inc. at No. 49 and Campbell Soup Co. at No. 77.

Tim Hortons, based in Oakville, Ont., and Unilever, based in London, both made sustainability progress in palm oil. Tim Hortons has committed to source 100% of the palm oil it books in 2015 from sources verified as supporting sustainable production.

Unilever in November 2014 said 58% of the palm oil it uses is now traceable to known mills. In its sustainable living plan released in 2013, Unilever said its vision is to double the size of its business while reducing its environmental footprint and increasing its positive social impact.

Twenty companies in the 2015 index are based in the United States, which marked the country’s best showing in the 11-year history of the Global 100 index. Atlanta-based Coca-Cola Enterprises, a Coca-Cola bottler, moved up to No. 26 on the index after placing No. 78 in 2011 and No. 43 in 2014.

“It’s a fantastic recognition of the progress we have made towards our sustainability plan, including reducing our carbon footprint and our water use, using more recycled materials in our packaging, and becoming a more diverse company,” said Joe Franses, director of corporate responsibility and sustainability at Coca-Cola Enterprises. “We aim to improve our position even further next year, as we continue our journey towards becoming a low-carbon, zero-waste business.”

Minneapolis-based General Mills by 2020 plans to sustainably source 100% of the following ingredients: vanilla, palm oil, cocoa, sugar cane, oats, dry milled corn, U.S. wheat, dairy (fluid milk), U.S. sugar beets and fiber packaging.

Campbell Soup Co., Camden, N.J., made the index for a third straight year.

“Campbell’s corporate responsibility and sustainability strategies are integrated into every aspect of our business and culture,” said Dave Stangis, vice-president, public affairs and corporate responsibility for Campbell. “Having our performance and disclosure recognized by the Global 100 for a third consecutive year is evidence that Campbell employees continue to make progress in our commitment to being good stewards, as well as advancing our performance.”

Biogen, a biotechnology firm based in Cambridge, Mass., ranked No. 1 in the Global 100 index.

Corporations must pass through four screens to be considered for the Global 100 index. The first screen eliminates companies that are not keeping pace with sustainability reporting trends in their specific industry, such as energy productivity in the automobiles and components industry group. The second screen features a pass-fail test in such financial areas as net profit and long-term debt.

The third screen eliminates companies with an industry classification equal to tobacco. Also, a company is eliminated if it derives a majority of revenue from its defense business, such as weapons manufacturing, for example. The fourth screen looks at the dollar amount companies have paid out on a trailing one-year basis in sustainability-related fines, penalties or settlements.

Jose Llop

January 23, 2015

Embracing consumer spending habits, 1/15/2015 by John Unrein

Jose Llop

January 23, 2015

Instores are responding to changes in consumer spending habits in a wide variety of ways, including embracing new technology tools, reshaping business structure and expanding into new markets.

Brookshire Grocery Company, a 150 store chain based in Tyler, TX, recently completed rollout of ADC's P-Cubed In-Store Fresh Production Planning module in all stores. The P-Cubed In-Store Fresh Production Planner takes much of the guesswork out of fresh food production planning. With the software, Brookshire Grocery Company now has educated in-stock information on availability in their fresh food departments.

“All 150 of our stores are now running production planning in four departments ( deli, bakery, chef prepared and produce). On average, we run around 1,000 production plans per day per department across our 150 stores," says Jonathan Key, fresh item management coordinator at Brookshire Grocery Company.

Brookshire Grocery Company implemented the software in phases to enable rigorous training in each store. "The first stores to start using the software reported that the production numbers were incredibly accurate. One store director reported that they have had their best quarter ever, with more sales and less shrink," Key says.

Brookshire Grocery Company also tracks how the stores comply with the production plan. "With management oversight and support, we are seeing, on average, a 97% compliance rating across our stores," he says.

As more than 2 million Meijer shoppers now subscribe to the Michigan-based chain’s free mPerks program, Meijer has made significant investments to make digital savings easier for its customers. The retailer now has free Wi-Fi capability in all 204 stores, making it easier for customers to access their mPerks accounts and the Meijer mobile app.

“Our customers are relying on digital tools more than ever as they shop, which is why we’re constantly providing them with resources to enhance their shopping experience,” says Michael Ross, vice president of customer marketing and emerging technology.

The retailer’s open Wi-Fi network gives its deal-seeking mPerks subscribers the opportunity to easily review and clip digital coupons while in the store. Growth in the retailer’s mPerks digital coupon program has been steep, surpassing 2 million subscribers last month – just one year after hitting the 1 million subscriber milestone. In December alone, the program generated more than 129,000 new members, nearly 31 million clipped offers, and $12.6 million in savings issued to customers. The program has a redemption rate up to four times higher than the national average.

Corporate structure is another key component of keeping pace with changing consumer habits. As part of a new structure for 2014, Supervalu’s independent business will consolidate from three regions to two regions, forming new East and West teams. The new East and West independent business regions will be located in Mechanicsville, VA and Hopkins, MN.

With this new independent business organization, Supervalu will streamline the organization and reduce operating costs while continuing to drive sales growth with its current and prospective customers. The changes also take into consideration the company’s ongoing commitment to delivering excellent value, service and customer programs and offerings that meet the rapidly changing needs of its independent grocery store customers nationwide.

Other chains are embracing the expansion trail to capture higher sales in new markets. Hy-Vee, Inc., with 235 stores in eight states, this spring announced plans for a major expansion of its Minnesota operations into the Twin Cities market. Hy-Vee has been a fixture in Minnesota communities since 1969 and currently has 17 employee-owned stores statewide with approximately 5,100 employees.

“Our commitment to excellent customer service, health and wellness, and culinary expertise is unlike anything in the market to date,” says Randy Edeker, chairman, CEO and president of Hy-Vee, Inc.

The proposed expansion would add several new stores to the Twin Cities market per year, over the next several years. Each store opened will be approximately 90,000-square foot, with an investment of approximately $14-16 million, creating anywhere from 400-550 new jobs.

Jose Llop

January 23, 2015

Top grocery chefs to compete at FMI showdown, 1/22/2015 by Staff

Jose Llop

January 23, 2015

Fifteen top grocery store chefs from around the country will compete to be named the Grand Champion of the 2015 Supermarket Chef Showdown during the annual FMI Connect conference in Chicago, June 8-11.

“One of the most exciting areas in the supermarket today is the fresh prepared case,” said Rick Stein, vice president of fresh foods at the Food Marketing Institute. “FMI started this competition as a way to recognize the talented chefs who work behind the scenes there, and to let consumers know what terrific prepared foods they can purchase at their local stores, and at good values.”

Supermarket chains and their chefs have until February 28 to submit recipes to the Showdown in one or more of the following categories: Breakfast to Go; Holiday Party Platters; Ethnic Dishes; Affordable Family Meals; and Desserts. Professional recipe evaluators and testers will narrow the field of entries to three from each category. Those 15 chefs will win a trip to Chicago to prepare their winning recipes at the 2015 Showdown, to be held June 10 at McCormick Place.

The winning store chef will receive an expense-paid trip for two to the Italian Culinary Institute in Calabria, and five additional category winners will each receive a $1,000 cash prize. All finalists will win a trip to FMI Connect to take part in the competition.

“We are pleased to offer classes at the Italian Culinary Institute to one of America’s top supermarket chefs,” said Stein. “This opportunity will expand the chef’s professional knowledge and further develop skills to inspire more and more creativity in the prepared foods case. Food shoppers will be the ultimate winners.”

Supermarket chefs or their corporate representatives can enter the 2015 Supermarket Chef Showdown at www.supermarketchefshowdown.com.

Winners of the 2014 Supermarket Chef Showdown include Rachael Perron, Kowalski's Markets; Keoni Chang, Foodland Super Market; Andrew Kintigh, Hy-Vee, Inc; Erin Horton, Orchard Fresh; and Michael Brady, FRESH by Brookshire's Grocery.

The FMI Supermarket Chef Showdown is made possible by sponsors, including McCormick & Company, Campbell Soup Company, The Hershey Company, Hillshire Brands Company, The J.M. Smucker Company, Mondelez International and The Pictsweet Company.

Jose Llop

January 23, 2015

Embracing consumer spending habits instore, 1/15/2015 by John Unrein