Saturday, November 28, 2009

Capico News of The Week

Some 45% of consumers that earn at least $75,000 a year are purchasing more private label grocery items, according to a HealthFocus International (HFI) study. Almost half cut coupons more for grocery shopping, up from 15% from HFI's April study. Full Story

Mashed potatoes could prove profitable for operators looking to add flair to their starch selections for Thanksgiving and all year long. Examples include Culver City, CA-based Gyenari, which adds kimchee to its buttermilk-mashed potatoes. Le Bec-Fin, Philadelphia, PA, adds toasted-hazelnut puree to riced potatoes and Charles Court at The Broadmoor, Colorado Springs, CO, serves white-truffle mashed potatoes, reported Restaurants & Institutions. Full Story

7-Eleven may expand its worldwide private label products to include non-alcoholic beverages, reported Convenience Store News. Full Story

Various retailers reduced turkey prices more than usual this year due to the weak economy, according to The Dallas Morning News. Full Story (Free Registration Required)

About 47% of parents with children ages 3-12 claim they have a difficult time feeding them nutritious, healthy foods. Older moms (ages 45-54) have the hardest time (57%), according to the Ronzoni Smart Taste Family Table Survey conducted by Harris Interactive. Dads find it slightly more difficult than moms to interest their children in healthy meals (49% vs. 45%). Some 26% of parents reported that it was very easy to feed their kids healthy meals. Full Story

Restaurant Roundup: Baskin-Robbins is offering seasonal ice cream cakes, including Apple Pie a la Mode. Full Story ... Dunkin' Donuts will offer Peppermint Mocha Lattes through late December. Full Story

Cracker Barrel Old Country Store, Inc. expects to open seven new Cracker Barrel units during its Fiscal 2010. Full Story

Tetra Pak agreed to carry out a limited trial to source green plastic from Braskem SA for use in its carton packaging, reported Food Production Daily. Full Story

New Store News: Canada-based Coffee Culture will open its fifth U.S. location on Dec. 4 in Batavia, NY, reported Business First of Buffalo. Full Story (Free Registration Required) ... Caribou Coffee is now being served at Akron-Canton Airport in Ohio, reported QSR Magazine. Full Story

California's super-high-density olive sector is a young but vibrant industry, well positioned to develop olive oil into one of the state's major agricultural commodities in the coming years, according to a survey by the UC Davis Olive Center. The survey found that 12,127 acres of super-high-density olive trees were planted in California as of the end of 2008, with 78% of the acreage planted between 2005 and 2008. Most of the growers reported that they decided to venture into this sector because it offered "favorable income potential." Full Story

The UK convenience sector is set to continue to outperform the UK grocery market and is projected to increase to £41.4bn in value in 2014 from £30.3bn currently, according to IGD's UK Grocery Retail Outlook 2009. The UK's online grocery channel will almost double over the next five years from £3.7bn to £7.2bn in 2014. Full Story

Drinking a cup of Brazilian mint tea has pain relieving qualities to match those of commercially available analgesics, claims a study published in the journal Acta Horticulturae, reported BBC News. Full Story

Sunday, November 22, 2009

Capico News of the Week

Cardamom, sweet potato, hibiscus and rose water are among Mintel's flavor trends for 2010. Hibiscus is expected to become more popular in the tea sector and rose water will be incorporated into various ethnic foods. Full Story

Whole Foods Market Inc. will only consider smaller acquisitions that will not attract antitrust scrutiny, according to CEO John Mackey. "Mom-and-pop-type chains will be the type of acquisitions we do in the future. I don't anticipate any large acquisitions," stated the executive. Meanwhile, the company needs to develop a working store model for the UK before it will look to expand in other European countries, according to the executive, reported Full Story

The world's airlines buy about 4.3 million gallons of wine annually, and some spend at least $15 million on wine each year, according to airlines and wine experts. "Service cutbacks and the recession have not affected airlines' wine-buying policies," stated Lori Lynne Brundick, president of Intervine, an airline wine supplier. The airlines claim the wines they serve uphold their reputations and instill brand loyalty in their highest-paying customers, reported USA Today. Full Story

New Product News: Gilroy Foods and Flavors released a range of ready-to-use vegetables, reported Food Navigator USA. Full Story ... The Travel Retail group of Hershey launched a range of travel retail exclusive products including Hershey's Kisses, Hershey's Nuggets chocolates and Reese's and Hershey's Miniatures, reported Food Navigator USA. Full Story

Tavern in the Park will be the new name of Tavern on the Green if New York City does not win its trademark lawsuit against the restaurant's current operators, reported Crain's New York Business. Full Story (Free Registration Required)

Willamette Valley Vineyards will open a facility in McMinnville, OR that will highlight various premium wines and sustainable agricultural practices, reported Full Story (Free Registration Required)

Including whey proteins in the batter for fried chicken may reduce the fat of the finished product by up to 30%, claims a study published in the Journal of Food Science, reported Food Navigator. Full Story

The Future Group-owned Pantaloon Retail is looking at acquiring small food companies in India. The company plans to more than double its private label business in foods, reported The Times of India. Full Story

Food and beverage manufacturers are driving sustainability in the supply chain, claims Dr. Lea Borkenhagen, head of Oxfam's Sustainable Livelihoods Strategy. However, they face more risks in catering to demand for ethically-produced products than retailers, reported Food Navigator. Full Story

Long-term moderate drinking decreased the risk of heart disease by up to one-third in men and to a lesser degree in women, according to a study published in Heart. The type of alcohol consumed did not make a difference, reported HealthDay. Full Story

Adding resistant starch to breakfast and lunch meals may reduce the amount of calories consumed over a 24-hour period by about 10%, claims a study published in the British Journal of Nutrition. Consumption of 48 grams of resistant starch intake may also cut the insulin response after a meal, reported Food Navigator. Full Story

Wednesday, November 18, 2009

Consumer Packaged Goods Trend Predictions for 2010

What will the breakthrough new products of next year be? Most likely something recognizable...with a twist. The trend experts at Mintel release their 2010 global consumer packaged goods (CPG) predictions, saying next year’s new products will recreate the familiar.

“Post-recession, we don’t expect manufacturers to reinvent the wheel. Instead, we predict 2010’s new products will give shoppers something familiar paired with something new to better satisfy their needs,” states Lynn Dornblaser, Mintel’s leading new products expert. “On retail store shelves, we expect today’s familiar megatrends--health and wellness, convenience, sustainability--to get a fresh, new makeover for 2010.”

Next year, Mintel predicts seven core trends will impact global new product development as manufacturers try to pique interest in new launches while keeping shoppers comfortable.


Symbol overload: Consumers are hungry for nutrition facts (pun intended). In the US, nearly half of adults say having caloric information on the front of packages would help them reduce their intake. However, people feel confused and skeptical about different companies’ nutrition symbols. In response, more manufacturers will opt for clean, clear facts on front-of-pack statements in 2010.


Sodium reduction: Poised as the next major health movement, sodium reduction is finally ready to take hold. The key difference, says Lynn Dornblaser, is that “sodium reduction is being pushed by food companies and health organizations, not by consumers.” This could mean slow adoption of the “less salt” mantra by shoppers, even as the food industry moves ahead.


Local gets stretched: Let’s get real...for many shoppers, buying only local goods is a pipe dream. However, people still want products with recognizable origins and those that haven’t been shipped too far. In the UK, for example, nearly half of shoppers buy British-made products when they can. For 2010, the definition of “local” will expand, becoming more practical for major companies to use and for mainstream shoppers to purchase.


Simple made special: Ready to get a kick out of buying “ordinary” products like soap and juice? Well in 2010, chic packaging and premium positioning will make today’s grudge purchases more enjoyable. The recent trend towards boutique-inspired packaging highlights how manufacturers will make the mundane a little more special next year.


Color coding for convenience: Cluttered retail store shelves make it hard to find your favorite cereal flavor or shampoo variety? Not anymore. To help shoppers make faster choices, more manufacturers will color-code their products in 2010. Nearly two-thirds of Americans (64%) say they want color-coded packaging and 45% of Brits claim to compare products by their labels. Color coding also helps brands stand out on the shelf.


Iconic budget brands: Private label “brands” are starting to look a lot more like brands (sans quotes). As consumers cut spending because of the recession, smart marketers ramped up promotions for their private label lines. Many shoppers now equate private labels with national brands and value them as such. In 2010, low cost, high quality private labels will thrive.


Gen Y cleans up: The generation that grew up with Swiffer, Febreze and Tide to Go is calling out for grown-up cleaning products of their own. Gen Y--born between 1977 and 1994--constitutes one-fifth (21%) of the global population. While there aren’t a wealth of Gen Y-focused cleaners on the market now, expect that to change in 2010. New products will highlight simplicity of use and quick, easy results to appeal to Gen Y shoppers.

Mintel forecast 14 additional consumer packaged goods trends for 2010. To receive the complete list, contact or call Mintel’s press office at 312-628-7946.

Mintel estimates global new product introductions for 2009 will reach 2008 levels. In the US, where many niche players were hurt by the recession, Mintel does not expect 2009 totals to match 2008.

Friday, November 13, 2009

Women ages 20 to 30 represent a $54 billion marketing opportunity for CPG companies

Women ages 20 to 30 represent a $54 billion marketing opportunity for packaged goods companies, but their needs and values are vastly different from the generation before them, a new report from Information Resources found.

“Winning With Millennial Women Shoppers” outlines this growing consumer demographic’s key behaviors. Compared to the preceding generation, women born between 1979 and 1989 tend to shop less, buy more during each trip, and frequent supercenters and Walmart more. The economy has also forced these shoppers to cut back on indulgent food categories like frozen poultry, chewing gum, salty snacks and frozen pizza, the report said.

The findings are inline with marketers’ latest attempts to understand this age group, which, in the next few years, are expected to surpass baby boomers in consumer packaged goods spending. Women in their 20s and 30s are just now buying homes, thinking about marriage, parenthood and career development. All these factors spell plenty more marketing opportunities for food and non-food manufacturers going forward, per IRI.

The study also found that:

• Though Millennial women may mirror Generation X households in their purchase of non-food items (hair care, suntan products, household cleaners, for instance), their acceptance of private label is much higher. Seventy percent of Millennials perceive store brands to be of “excellent quality,” IRI said, challenging the general belief that private label acceptance evolves over time. This suggests that traditional advertising media, such as TV and print, may not be as effective as they once were in reaching younger consumers, and marketers should turn to more nontraditional means, said Sean Seitzinger, IRI’s svp of thought leadership.

• Millennial women are seeking retailers that can provide better-for-you and healthy options, though the health factor becomes less important when purchasing beverages.

• Compared to their elders, Millennials tend to use less coupons and circulars. They are also more likely to shop without a budget and make impulse grocery purchases. Due to their quick purchasing decisions, these women are also less likely to stock up while deals and bargains last. Marketers, Seitzinger said, have better luck reaching these women via the right in-store messaging and packaging size. Such behaviors derive from the fact that these shoppers are both time strapped and aren’t as savvy as older shoppers when it comes to looking for deals.

“They may be time and money compressed, but they live in this 24-hour 'on' lifestyle, and so, for most Millennials, it’s more about getting it done rather than getting the best deal,” Seitzinger said. “They’re asking, ‘Hey, do I have enough to [get] what I need to [get] right now, and if so, I’m just going to do it.'"

Millennials also value characteristics, such as a store’s “value proposition, location, user-friendly layout and variety” when it comes to deciding where they’ll shop, according to Seitzinger. Features such as checkout counters and loyalty shopping cards are less important, as are the location and space devoted to high-traffic departments such as fresh meat and produce. So the connection is twofold, Seitzinger said. On the one hand, they are expecting retailers to help them save money, oftentimes via functional, high quality store brands; on the other hand, there’s also an “emotional attachment to where they shop, [rather than] just the category solutions they’re buying,” he said.

So what is the lesson here for marketers? Packaged goods companies need to think outside of the box when marketing to this group. Seitzinger said: “The same old, same old is probably not going to create a lot of success” with Millennials given that their spending and shopping habits are different.

Saturday, November 07, 2009

Capico News of the Week

Whole Foods Market expects to open 16 new stores in their fiscal 2010, 10 of which are expected to open in the first half of the year. Full Story

Tea sales are staying positive as the beverage is seen as a healthy product and an affordable luxury, according to Packaged Facts' Tea and Ready-to-Drink (RTD) Tea in the U.S. report. Tea market trends examined include superfruit flavors, hybrid products designed to compete with other beverage categories including bottled waters, energy drinks and sodas and new RTD spins on green tea and emerging segments including yerba mate and Kombucha. Full Story

The resurgence of the environmental movement caused an upswing in the demand for environmentally friendly packaging, according to the Trends Report from the Foodservice Packaging Institute, reported QSR Magazine. Full Story

Despite the economic downturn, Southern Nevada-based Pies Unlimited increased its business by 40% to 50% since it opened in 2006. Much of the specialty bakery's revenue, which offers a selection of made-from-scratch pies, cheesecakes and cakes, comes from retail walk-in business, reported Las Vegas Sun. Full Story

Portland, OR-based Townshend's Tea Co. secured a $48,000 loan from Whole Foods Market, which will allow Townshend's to open a Southeast Portland factory for making kombucha, a type of fermented tea. The company's kombucha is available at about 15 Oregon locations, including Whole Foods, reported Full Story

DNA Beverage Corporation's wholly owned distribution company Grass Roots Beverage Corporation added VPX/Redline to its growing portfolio of food, beverage and supplement companies. The company will initially distribute the RTD, Extreme, Princess and Meltdown lines. Full Story

Starbucks is targeting approximately 100 net new stores in the U.S. and approximately 200 net new stores in international markets for fiscal 2010. Both the U.S. and international additions are expected to be primarily licensed stores. Full Story

Seattle's Best Coffee signed an agreement to serve freshly brewed Seattle's Best Coffee as part of Subway restaurants breakfast offerings. By the end of 2009, more than 9,000 Subway restaurants in the U.S. will feature Seattle's Best Coffee, with plans to expand into more restaurants during 2010. Another agreement will also bring Seattle's Best Coffee to more than 800 Subway restaurants in Canada before 2010. Full Story

Children's television networks show 76% more food commercials per hour than other networks, and most are for high-fat, high-sugar foods, according to a study published in the Journal of Nutrition Education and Behavior. Nearly a third of commercials on children's networks were for food, compared to a fifth during programming for a general audience. Some 70% were for foods that were high in sugar or fat, reported Food Navigator USA. Full Story

Jamba, Inc. will develop a line of Jamba-branded trail mixes after signing a licensing agreement with Johnvince Foods. The Jamba-branded trail mixes will be available in select Jamba Juice stores and other retail outlets in early 2010. Full Story

technique that reduces 25% of the salt in food products, does not lose taste or need additives was developed by Dutch scientists. The "smart salt distribution" technology works by blending a high salt fraction with a low salt fraction, creating different layers with different salt content, reported Food Navigator. Full Story

Innovative Beverage Group Holdings, Inc. entered into an agreement with Pure Beverage Co. to distribute drank throughout Indiana. Full Story

Cadbury is switching to square, recyclable cardboard boxes instead of metal tins for its holiday packaging. The change will lead to a 45% reduction in packaging weight and savings of more than 200 tons of steel, reported Food Production Daily. Full Story

New Store News: Trader Joe's opened a location in Minnetonka, MN, reported Minneapolis / St. Paul Business Journal. Full Story (Free Registration Required) ...Freddy's Frozen Custard & Steakburgers is opening a location in Derby, KS, reported QSR Magazine. Full Story ... Rochester, NY-based DiBella's Old Fashioned Submarines is building a location in Latham, NY that will open in late spring or early summer 2010. All of the bread is baked on the premises, and the chain has 15 locations, reported The Business Review (Albany). Full Story (Free Registration Required)