Dairy·Deli·Bake Digest

September 2008

FREE "PODCASTS" FROM IDDBA

"Tell me and I forget; show me and I remember; involve me and I understand." IDDBA offers free downloadable podcasts on selected topics (bakery, meat, cheese, food safety, etc.). View them on your laptop computer, your desk computer, handheld devices, or video phones. These short (5 minute) segments cover a single topic and offer quick and easy learning options to train retail in-store staff or sales people. Each program features a Subject Matter Expert who offers training ideas and talks about a product or category's attributes. To download them, go to www.iddba.org and click on "podcasts." Topics include: Whole Grains, Food Safety/Security, Tasting & Food Sampling, Cheddar Cheese, Deli Turkey, Deli Ham, and others.

AMERICAN CAKE DECORATING MAGAZINE OFFERS TIPS, TRICKS, & PIX

For all of the cake decorators out there who want to learn from the best, get new ideas, and develop their skills, we encourage you to subscribe to the magazine that's just for cake decorators. In addition to enhancing your decorating skills, you can also practice your art and, if you work in a supermarket, enter the IDDBA's Cake Decorating Challenge (our 14th is coming up June 7-9, 2009 in Atlanta). We get lots of requests for tips on how to create winning cakes, come up with new ideas, and how to execute production cakes that attract the consumer's attention. A subscription to American Cake Decorating magazine includes clear, easy-to-follow directions with full-color photographs for step-by-step execution. Articles feature professional as well as amateur decorators. A one-year subscription is $28. Subscribe by calling 800.490.5671 or visiting www.americancakedecorating.com.

DIETARY TRADE-OFFS: THE "SWAP-OUT" FACTOR

Although consumers admit to not always choosing the most diet-friendly option, many are amenable to healthier choices. The swaps that consumers say they would make: 1) Healthier alternatives in the same product category, for example, those with less fat or fewer calories. Consumers reported they would purchase healthier salad dressings (41%), potato chips (36%), and ice cream (27%). 2) 100-calorie packs of cookies — 23% said they would purchase this over any other alternative — but 20% of cookie-eaters would not change their habits at all. 3) Drink less soda —- 29% of consumers choose this alternative — but 28% would not change their consumption. And, when it comes to shopper dieting, more than one in three shoppers (38%) said they had started a diet in 2007. Two-thirds (66%) of these shoppers were still on a diet by November 2007. More than half of dieters (57%) said they are on no specific diet regimen; they are merely watching their calories. The 2008 Shopping for Health survey of America's supermarket shoppers is the 16th in an annual series conducted by FMI and Prevention with the support of Men's Health and Women's Health magazines. The survey examines shoppers' interests and attitudes regarding health and nutrition, their efforts to manage diets, and the ways in which health and nutritional concerns play out in buying decisions at the supermarket. To buy the study, go to www.fmi.org/store or call 202.220.0723.

CHECK OUT THE NEW SQUARE MILK JUGS

The milk jugs being introduced at some supercenters and club stores will give many consumers a chance to trade convenience to save money (and the environment). The new squared-off packages give retailers significant savings, the chance to stock more milk in less space, and the chance to reduce the number of deliveries. For consumers, the advantages come with disadvantages. The jugs are harder for kids and adults to pour, and result in lots of spilled milk during the learning process. As long as the retailers continue to promote the lower cost and smaller eco-footprint of the square jugs, consumers will probably come to accept them, as they came to accept shelf-pricing in place of item pricing when UPC codes and scanners made pricing the individual items a labor intensive and merchandising mess that retailers desperately wanted to eliminate. In these difficult times, getting milk for less is almost as appealing as getting gas for less. At the same time, the retailers' determination to force their customers to accept this packaging provides opportunity for branded suppliers to provide more convenient packages that are easier and friendlier for both kids and adults to carry and pour without spilling.

NPD FINDS MORE CONSUMERS BROWN-BAGGING LUNCH

The brown-bagged lunch is becoming an increasingly popular workplace accessory these days, according to a new study from The NPD Group. NPD reports weekday lunches carried from home reached a new high point in 2007. Adults 18 and older carried some 8.5 billion brown bag lunches last year. More than half of these lunches are consumed at the workplace, and most often at the eater's desk or workstation. According to the NPD report, entitled, What's in the Bag and Why Is It in There?, the majority of consumers said they carry their lunch from home more often due to financial reasons, mostly because it's cheaper than other options. Health and nutrition concerns ranked second as a reason to brown bag, followed by convenience, taste, diet, quality, and environmental concerns. Among consumers who typically brown-bag, nearly half said they are doing so more often.

"Consumers are definitely in a cost-cutting mode, and brown-bagging saves them money," says Harry Balzer, vice president, The NPD Group, and author of Eating Patterns in America. "Making lunch at home and putting it in a bag also enables them to have full control over what goes into the bag as many are concerned about eating better." The NPD study finds that adult males carry more brown-bagged lunches than others, yet quite often, females are the preparers. Brown-bagging is more common among 35- to 54-year-olds, white collar consumers and professionals, and more affluent consumers. What goes in the brown bags varies, but typically, it's fruit, chips, and some type of sandwich, but these items differ by gender and age, reports NPD. Cookies replace the chips in kids' lunches. Women are more inclined to opt for healthier choices like yogurt and veggies. Among the total population, peanut butter and jelly sandwiches are the most popular sandwich type and carbonated soft drinks are the dominant beverage choice.

% of Brown-bagged Weekday Lunches (click for image)
Source: The NPD Group/National Eating Trends (2 years ending November 2007)

"We're seeing yogurt and frozen entrees gaining in popularity in carried lunches, and lunchmeat sandwiches, chips, or ham sandwiches declining," says Arnie Schwartz, who heads up The NPD Group's food and beverage unit. "Over the last several years, leftovers are increasingly a part of brown-bagged lunches." According to the report, brown-bagging is a planned behavior. Nearly half of consumers decide they want to brown-bag the day before or earlier, and two out of three brown-bagged lunches are prepared the morning of the same day. Over a third of consumers who brown-bag lunches do so three times a week or more, and in the middle of the week rather than on Monday or Friday. "Brown-bagging is an extension of Americans now preparing and eating the majority of their meals at home," says Balzer. "Home is not only where the heart is, it's where the food is too." For more information, visit www.npd.com.

THE UN-COMFORT ZONE: WINNERS OR LOSERS?

Sometimes motivation is forced upon us. We are thrust into the Un-comfort Zone. And, whether we sink or swim depends on how we respond to the situation. Here are the stories of two men who faced a crisis late in life and how they dealt with it. One was a restaurant owner, the other was a janitor. The former went into bankruptcy at an age when most people retire, and the latter was fired from a job he'd had for nearly 20 years.

STORY ONE: The restaurant owner enjoyed a successful business in a small town at the edge of the Appalachian Mountains. It was a great location on U.S. Route 25. And, because he offered the best food and service around, his eatery was jammed from sunup to sundown. Over the course of 26 years, he was honored by for his recipes and was praised by famous restaurant critic, Duncan Hines, in his column "Adventures in Good Eating." Then, in 1956, the new super highway by-passed the little town. It's amazing the difference just a few miles can make. Two years later the restaurant was closed and the property auctioned off to pay creditors. At age 64, the restaurant owner was broke and unable to afford the cost of opening another restaurant closer to the highway. All he had left was his knowledge and the delicious recipes that made his food so popular. So, he got into his car. Town by town, he drove, stopping at every restaurant along the way. He told the owners they would be more successful if they served his secret recipes under his brand name and paid him a royalty. Two years later, in 1960, he had 400 restaurants serving his food. By 1963 he was making a profit of $300,000 per year. And, in 1964, Colonel Harlan Sanders sold Kentucky Fried Chicken to investors for $2 million, plus a lifetime salary of $75,000 per year.

STORY TWO: The janitor started his job at St. Peter's Church in London as a teenager. Over the years he married and raised a family and enjoyed a perfectly predictable profession with solid job security. That is until the new vicar came along. It was around the turn of the twentieth century when the new vicar, a stickler for decorum, took over St. Peter's Church. When he learned that the janitor could not read, he gave him three months in which to learn. Quite depressed by the news, the man thought he'd feel better if he smoked a cigarette. As he walked home, he searched for a tobacco shop. He walked block after block without finding one. By the time he reached his house he knew exactly what he was going to do. With his meager savings, he opened a tobacco shop near the church. It was an immediate success. His profits went to open a second, then a third and before long he had thriving tobacco shops all over London. Ten years later, he met with his banker about investing his earnings. The banker gave him some papers to sign. The man asked the banker to read the papers to him, explaining that he didn't know how. Shocked, the banker exclaimed, "You are so successful, just think where you'd be today if you could read!" Albert Edward Foreman smiled and sighed, "I'd be the janitor at St. Peter's Church." (Based on a true story by Somerset Maugham). Source: Robert Wilson www.jumpstartyourmeeting.com.

PRODUCT RECALL PILOT STUDY

The FMI, GS1 US, and other groups are promoting an industry pilot to test a product recall system. According to the FMI, there have been 900 recalls in the last 18 months (50 a month; 12 per week). The new system would use the Internet to assist with recalls and to notify users about problems and procedures. Two pilot studies have been completed and a Recall Notification Form has been created based on the input from more than 25 manufacturers and retailers involved in the pilot. The Product Recall Portal would offer a direct and secure relationship offering these benefits:

• Standardized form and process to ensure greater effectiveness and compliance
• Ensure that only authorized recalls are issued
• Ensure that only targeted retailers receive recalls
• Ensure that recalls are immediately issued to retailers
• Continuing integration of GS1 Keys (Global Item Identification)
• Provide self-registration for subscribers (including payment)

The system includes notification, product handling instructions, department of recall, retail classification, product codes, government agencies involved, original distribution area, distribution, reimbursement instructions, product photos and image attachments, etc. If you want more information or want to participate in the pilot study, please contact Tim White at GS1 (Tim.White@gs1ca.org) 416.510.8039 x2122 or Karen Brown at FMI (KBrown@fmi.org) 202.220.0650 or Tamara Kenney at GS1US (Tkenney@GS1US.org) 937.428.3789. Call by September 9.

CONNECTING TO WHAT SHOPPERS WANT AND HOW THEY SHOP

Last month's Dairy-Deli-Bake Digest carried a feature story on the new Unilever report on winning shoppers in turbulent times. This month's issue carries ideas on how to capture their attention and sales. The first section looks at what shoppers want and the second section offers promotional strategies to fill those wants and needs. Use this list as "talking points" for your next strategic planning session or team meeting.

Shoppers want VALUE & SAVINGS

• Are savings consistently offered in key categories?
• Does your value proposition go beyond dollars and cents?
• Is value communicated at every contract point with the shopper?

Shoppers want WELLNESS

• When shoppers are thinking of good-for-you food, are they thinking of you?
• When they think good-for-you beyond food, is your store on their radar?
• Do you offer special services or events that stretch their wellness dollar?

Shoppers want A LITTLE EXTRA HELP

• Do you have the personnel and programs to help shoppers make smart shopping decisions?
• Do you merchandise meal and home solutions that de-stress and simplify their shopping?
• Do you help them save money or make it convenient traveling to and from your store?

Shoppers want SOME FUN

• Do you stores have a "personality" that helps shoppers forget their daily challenges while they shop?
• Do you encourage shoppers to treat and take care of themselves while thinking of others as they shop?
• Do you offer the occasional surprise reward for their big basket?

10 PROMOTIONAL STRATEGIES TO CONNECT TO HOW SHOPPERS ARE SHOPPING

1. Circular tactics built around whole meals will resonate with the growing number of shoppers carefully budgeting and planning their menus.
2. Sales across multiple quality levels within a category help maintain your store appeal with both brand loyalists and shoppers now more willing to trade down.
3. Increased sampling of product across the store can encourage shoppers – especially low income – to make a purchase they had not intended.
4. Shoppers are already skipping aisles and may do so even more – tempt them to shop all aisles with featured super-low prices on attractive items in every aisle.
5. With savings-minded shoppers increasingly buying big or small, let them know about the different product sizes you offer.
6. As shoppers of all types become more proactive in their planning, attract them with bonus promotions – buy a bagged salad, save on your favorite dressing.
7. Cross-promote right at the shelf to stimulate sales in categories consumers are ready to abandon in tough times – for example, coupons for cookies in the milk section.
8. With bulk buying for sharing on the rise, showcase "friends and family" specials of your economy sizes.
9. Tag products that have a high wellness quotient – two-thirds of adults say health drives their food selections.
10. Position yourself as a complete one-stop shop for essential categories to draw shoppers cutting back on trips due to high gas prices.

SOURCE: Winning Shoppers in Turbulent Times (A Unilever Trip Management Report). www.unileverusa.com

IDDBA's WHAT'S IN STORE 2009 GOING ON PRESS

If you've ever needed hard data, sales info, consumer trend info, or related material for long range planning, a sales presentation, or special report, then this is the book for you. At some 200 pages, it includes data on dairy, deli, bakery, and cheese sales and trends (for the last 10 years), new product information, marketing strategies, and demographic data. The membership contact person of each IDDBA member company receives one copy as part of their membership dues. Additional copies may be ordered by members at substantial savings ($99 each for one copy, bigger discounts for 3 or more copies until September 5). Non-members may order the book for $399 each (plus S&H). Call Jeremy Johnson at 608.310.5000 to order. The book will be shipped in late September. Mention Order Code #1814.

THE 25 GLOBAL CONSUMER TRENDS FOR 2008

According to Euromonitor International's new global strategy briefing, the current state of the world's economy is causing the development of a consumer concept called "my economy." Troubled by a cloud of uncertainty, consumers in 2008 are filled with a sense of anxiety and gloom. To combat this, consumers are focusing on ways to stay financially stable during times of economic instability. According to the report, the home comes first to the consumer; for some, this could mean a return to renting as repossessions rise. Food and clothing are also important. With food, drinks, and personal care products, the chances are that people will trade down particularly in areas that are less important to them. Convenience and comfort are still essential, particularly when it comes to technology. For info, contact Melanie.Perez@Euromonitorintl.com. Highlights of the trends report include: Identity and self-expression; a sustained love affair with celebrities; signaling status through simplicity and connoisseurship, with shopping as a competitive sport; a more critical evaluation of the work-play balance; creativity and DIY; partisanship; a focus on health and well being as obesity rates continue to rise; connectedness and technology as a strongly prevalent influence; and the mobile phone's continued ascent as the most widely accessible form of technology and the possible Internet platform of choice.

NEW PRODUCTS

This month's product introductions focused on expediency, portion control, and, yet again, functionality. On-the-go expediency claims were visibly apparent, catering to time-starved consumers. More 100 calorie packs are continuing to emerge, coming increasingly from smaller snack manufacturers. EDITOR'S NOTE: This information is taken from Mintel Global New Products Database, an online product monitoring worldwide product innovation in consumer packaged goods markets. For a free demo contact Mintel at 312.932.0400.

Bakery

Kroger Super Kids Enriched White Sandwich Bread, Kroger, Cincinnati, OH. Contains 150% more DV of calcium than enriched white sandwich bread; low in fat.

Vita Muffin Vitalicious Golden Corn Muffins, Vitalicious, New York, NY. 100 calories, wholegrain, contains 6g fiber, 4g protein, is low sodium, is fat free, and 15 vitamins and minerals. Less sugar and more vitamins and minerals than an apple. This product is kosher certified.

FlatOut Light Wraps, Flat Out, Saline, MI. 100% stone ground whole wheat, 6 carbohydrates, 9g of fiber, and 90 calories per serving. They are free from trans fats and sugars and also contain 8g or more whole grains per serving.

Mrs. Frehsley's 100 Calorie Mini Chocolate Cupcakes, Flowers Foods Specialty Group, Thomasville, GA. Creme filling, kosher certified.

Bauli Mini Croissant with Apricot, Bauli, Verona, Italy. Also available in Chocolate and Custard.

Organic Euro Flax Bread, European Breads Bakery, Vancouver, BC. The bread contains flax seeds which have been shown in studies to lower total cholesterol and LDL cholesterol levels, organic, rich in fiber. Also in Poppy Roll.

Dairy

Blue Cheese, Kerrygold, Dublin, Ireland. The 100% natural blue cheese features a cheddar base for a golden color and a creamy, rich flavor. This product is retailed in a 10-lb. wheel wrapped in cloth and gold foil.

Cabot 50% Reduced Fat Cheddar Cheese With Omega-3 DHA, Cabot Creamery, Montpelier, VT. Fortified with omega-3 DHA, It contains life'sDHA brand DHA, which is certified kosher and halal and is non-GMO.

Fresh Mozzarella Snack Cheese, Mozzarella Fresca, Concord, CA. Contains less fat, fewer calories, and nearly half the sodium of other snack cheeses.

Ice Cream Parlor Kit, Xcell International, Burr Ridge, IL. Kit contains Vanilla Ice Cream Mix, Chocolate Ice Cream Mix, and four sprinkle toppings and is suitable for all ice cream makers.

Kaukauna Extremely Creamy Spreadable Cheese, Bel Brands, Kaukauna, WI. Three new flavors: Chipotle, Italian Pesto Blend, and Three Cheese Italian. The cheeses are both spreadable and "dippable".

Wild Wood Organics Probiotic Soymilk, Pulmuone Wildwood, Fullerton, CA. Pomegranate flavored, with live beneficial non-dairy cultures to strengthen the immune system and promote digestive health. Low in fat, heart healthy, and provides a good source of fiber, protein, iron, calcium, and vitamins A, B2, B12, and D. It features seven live and active cultures and is free from dairy, cholesterol, and saturated fat. The kosher certified product is fermented for enhanced absorption of beneficial soy nutrients with omega-3 for heat and brain health. The soymilk is retailed in a 10-fl. oz. bottle. Also available in Vanilla and Blueberry.

Astro Biobest Smart Growth Probiotic Yogurt, Astro Dairy Products, Toronto, ON. Made with natural DHA milk, probiotic cultures, and prebiotic fiber, naturally sweetened and free from artificial flavors and preservatives. Flavors: blueberry and peach; strawberry and vanilla; and raspberry and banana.

Dairy-Deli-Bake Digest is a trademark of the
International Dairy-Deli-Bakery Association
Copyright 2008. May be reprinted if source given.
Carol L. Christison, editor