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Snacking OpportunitiesBuilding Better Snacks

October 2015

Snacking Opportunities: Building Better Snacks

Table of Contents

Executive Summary 3

Shifting Eating Culture 6

Emergence of a Snacking Culture 7

Key Trends in Snacking 9

Snacking Occasions and Fresh Perimeter Categories 12

Actionable IdeasBakery ▪ Dairy ▪ Deli & Prepared ▪ Specialty Cheeses

Appendix: Objectives and Approach

15

19

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Executive Summary

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In 2014, IDDBA contracted The Hartman Group to conduct proprietary research for itsmembership. The report, Engaging the Evolving Shopper: Serving the New AmericanAppetite, highlighted shoppers of fresh perimeter categories through the lens ofMillennials, modern eating, health + wellness, and digital engagement. This white paperleverages insights from that study, along with other Hartman work in consumer foodtrends, to spotlight snacking opportunities in Bakery, Dairy, Deli, Prepared Foods, andSpecialty Cheese.

Overview

Our culture is changing – who we are, what we do, where we live, and what we value areall morphing. These macrodynamic shifts are impacting how we eat. Shifting eatingbehaviors are causing snacking to play an increasingly important role. Today, half of alleating occasions are snacking occasions. With lines between snacks and meals blurring,consumers have increasingly been shifting their snacking behavior, opting for healthierchoices and better portion control.

Snacking occasions, behaviors and needs are characterized by highly flexible rules andstructures that are shaping how shoppers think about fresh perimeter categories.Compared to meals, snacking generally happens alone, freeing the consumers to flextheir decisions around their individual needs and desires.

Source: Hartman Group, Modern Eating Study, 2013

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Copyright 2015 IDDBA, in partnership with The Hartman Group


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With anywhere from 60% to 90% of snacking occasions taking place at home, depending on the time of day, supermarkets are well positioned to leverage contemporary snacking trends. But they are also vulnerable to missed opportunities.

Executive Summary - continued

Afternoon Snacking Occasions*

Adults who do it: 63%

Share of snacking occasions: 27%

Taking place at home: 70%

Sourced from Grocery stores: 54%

While the majority of at-home occasions involve food sourced from retailers, this landscape is undergoing rapid change and today’s supermarkets must pay attention to opportunities to increase their relevance to a greater number of eating occasions in a way that fits how consumers now approach those occasions.

Consumers increasingly can fill their snacking needs in a variety of ways. There is a gap between snacking occasions taking place at home (70% in the example above) and the share of those sourced from traditional Grocery retailers (54% in the example above). Convenience, Mass, Drug, Club and Food Service channels have all dialed up efforts to capture a greater share of the consumer’s snacking dollar. But it is not only these channels that supermarkets must take into consideration when building forward looking strategies.

The “Roadside Pantry Effect” is a symbol of the new reality that consumers can find food everywhere, including while they’re shopping for furniture (Ikea), sporting goods (REI) and suits (Brooks Brothers in New York). Consumers now navigate a world of 360-degree food availability. They can eat on a whim, which makes food exciting and fun. They can choose to not only bypass the grocery store, but to stop at any number of locations. Even when they do have a plan for shopping and eating, they can abandon it at the last minute. They can shop from their mobile phone, for tonight’s dinner, or even subscribe online to an ever-changing discovery of snacks, delivered direct to home or office.

Graze.com

*Source: Hartman Group, Eating Occasion Compass, 2014

There is an opportunity for retailers to engage more with consumers on snacking opportunities in the fresh perimeter area of the store. In the UK, retailers such as Marks and Spencer and Waitrose provide some best in class examples as they guide consumers towards relevant trends in snacking occasions through signage, packaging and pricing. UK Retailer Focuses

on Fresh Less processed Snacking

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Consumers continue to look for ways to balance healthy, nutrient-dense, purposeful

snacking with their desires for indulgent and emotionally satisfying snacks. For many

consumers, both can be part of an overall wellness lifestyle, especially when indulgent

snacks are of higher quality. Discovery, new experiences and global flavors can often be

the catalyst for consumers to discover new and healthier approaches to snacking. Fresh

perimeter departments are well positioned to be that catalyst.

As retailers invest in the fresh perimeter and seek to meet consumers’ evolving snacking

needs, a focus on higher quality, ‘fresh, less processed’ options should take center stage.

Hartman has identified key ways retailers can elevate snacking experiences across

Bakery, Dairy, Deli, Prepared Foods, and Specialty Cheese to meet consumers’ evolving

needs:

Snacks are serving more intentional, specific roles in our food lives, particularly as 90% ofconsumers snack multiple times throughout the day.*** Retail departments need towork together to speak to these diverse needs. We believe it is a critical time for freshperimeter departments to see snacking occasions as opportunities to become morerelevant and connected and to captivate and delight customers who are increasinglyseeking out fresher, healthier, higher-quality snacking experiences.

Executive Summary - continued

1) Customizable, convenient, scalable portionsizes along with mix ‘n’ match options.

2) Combinations of familiar and new foods, forsafe discovery and global exploration.

3) Consumer engagement via categoryspecialists, tapping into notions of authentic,fresh, less processed foods.

* Source: Hartman Eating Occasions 2013, n=624. “In what ways has your snacking changed in the past five years?”** Hartman Syndicated Study on Millennials, 2014*** Source: Hartman Compass 2013, n=21,163. 0-3 meal occasions, more than 1snack occasion.

53%of consumers are now

opting for smaller snacks.*

61%of consumers are

now opting for healthier snacks.*

47%say they really enjoy

anything new and different or trying new

kinds of ethnic cuisine.**

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Shifting Eating CultureWho, What, Where…

Modern eating culture in the U.S. is characterized by afragmentation of traditional food and beverageconsumption. Gone are the days of ‘three plannedmeals a day.’ Instead, demands of modern life havecreated an eating culture where flexibility, immediateconsumption (IC), alone eating, and snacking are thename of the game.

Who we are, what we do, where we live, and what wevalue are morphing. Acknowledging thesemacrodynamic shifts is essential to understandingeating culture influencing eating occasions today.

On-the-go Lifestyle…

Food and beverage companies, along with food serviceestablishments, are increasingly creating an offeringtailored to this ‘on-the-go’ lifestyle. These include‘grab-and-go’\‘portable’ products that cater to theneed for convenience as well as immediateconsumption and impulse snacking.

Culinary Engagement…

We are in the midst of a genuine CulturalRevolution…and food – including growing, distributing,eating, preparing, and sharing – is at the core of it. Thiscontemporary fascination with food has us watching asother people cook and eat and, as such, food hasbecome omnipresent across all platforms, media, andpalates in America. Our palates are changing as weembrace raw fish (sushi), funky flavors (kimchi), andnew textures (seaweed and pig’s ear).

appreciation for personal, customized foods…has privileged the fulfillment of personalized desires: whatever you want, whenever you want it

fresh revolution and interest in less processed offerings…has led some consumers to shop more frequently in an attempt to get the freshest, perishable offerings and avoid highly preserved products

appreciation for global cuisine (+ culturally diverse population)…is expressed in use of restaurants that allow people to try innovative foods despite not having theskills to prepare them at home

WHAT WE DO

WHO WE ARE

Nontraditional family structures (+ women in workplace)…

has diffused food management, resulting in last-minute decisions, desire for flexibility

rising work demands and perception of harried-ness…

has led to de-prioritization of food planning and prep

WHERE WE LIVE

a diverse retail mix, particularly variegated food in metro areas… has made food available any place, any time

WHAT WE VALUE

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Customization…

Appreciation for personal, customized food hasprivileged the fulfillment of personalized desires:Whatever you want, whenever you want it.

Smaller offerings of many different kinds of meals andsnacks are an easy and convenient way for consumersto piece together their eating occasions.

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Emergence of a Snacking Culture

Meals have culturally defined rules passed

down from generation to generation. These

rules tell us when meals should happen,

who should be there, how we should act,

and what we should eat.

Meals have traditionally helped structure

the day, providing focal points, marking

beginnings, endings, and transitions. They

are more than just about eating —

nourishment is provided, relationships are

built, and decisions are made. You can say

that, ultimately, meals have a lot of cultural

baggage.

Snacks exist outside of these boundaries in a

more fluid space where rules can bend and

shift according to the needs of the

individual, the context, and the social space.

Snacks can be anywhere and anything, and

are playing an increasingly diverse role in

people’s food lives and food culture.

Source: Hartman Compass 2013, n=6,741.“Which of the following statements do a good job of representing your feelings while you were deciding what to have on this occasion?” (note: drivers are not mutually exclusive).*

Meals Are Rigid — Snacks Are Flexible

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Snacking today has become much morepurposeful. As the line between meals andsnacks blurs, snacks need to fulfill a widerrange of needs than in the past.

Traditional meals are becoming increasinglyfragmented and harder to achieve, andsnacks are shouldering a greater proportionof the physical, emotional, social, andcultural desires consumers have aroundfood.

As a result, snacks are serving moreintentional, specific roles in our food livesand food culture more broadly. Retailersneed to be speaking to these diverseneeds.

Purposeful Snacking – Delivering Energy, Satiety, Even Indulgence

73% of snacking is driven by the desire to

fulfill unsatisfied needs (27% of snacking is aimless)

How We Use Snacks…

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Consumers are making changes in their snacking behavior, opting for healthier choices andbetter portion control.

Snacking Behaviors Are Changing to Meet More Diverse Needs

How snacking behaviors have changed

64%

61%

53%

28%

27%

Fresh fruits andvegetables

Healthier choices

Smaller snacks

Exploring/sampling newfoods/beverages

Avoiding carbs

61%

48%

47%

46%

44%

Larger snacks

Indulgent snacks

Snacking when bored

Snacking as a reward

Consuming non-traditional snacks

Source: Hartman Eating Occasions 2013, n=624. “In what ways has your snacking changed in the past five years?”

More Often Less Often

8* Source: Hartman Compass 2013, n=6,741.**Source: Hartman Compass 2013, n=21,163. 0-3 meal occasions, more than 1 snack occasion.

“I kind of eat all day. I don’t let myself get hungry. I used to eat a big junky meal and

then eat candy and soda throughout the day.

Now it’s more split up, and it’s

different food. I’m hungry all the time, so I eat

all day.” ~Joe, 27, Seattle

39%54%

21%

20%30%

19%10% 7%

Meals Snacks

Most Snacking Occurs When We are Alone*

Alone Couple Family Friends

Modern Snacking

90% of

Consumers snack multiple times throughout the day

7% of these

consumers forego meals altogether in favor of all-day snacking**

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Stacy’s Pita Chip Sales Growth Demonstrates Interest in Healthy

Deli Snacks(U.S. $ Sales, Millions)

Key Trends in SnackingFresh, Less ProcessedThe desire for fresh food is growing, as is therejection of industrial food. Consumer concernwith cues including minimally processed,recognizable ingredients, locally grown, andshortest ingredient lists has accelerated inrecent years. Ingredients that consumersassociate with being ‘industrial,’ ‘processed,’ or‘chemical’ are becoming justification forrejection. HFCS is now tied with sodium as aningredient to avoid. Consumers are alsoavoiding artificial sweeteners as well as growthhormones and hydrogenated oils.

Fresh, less processed has become a greens feefor legitimacy in wholesome snacking.

Central Symbols of Fresh, Less Processed In Snacks:

Absence of NegativesNo trans fats, hydrogenated oils, HFCS, artificial ingredients, growth hormones

Presence of PositivesOrganic, local, seasonal, whole grains

Short Ingredient List ≤ 5 ingredients

Perishable or Short Shelf LifeRefrigerated, expiration date

Known Processing Method“Something I could make at home”Artisanal or Traditional

Minimal PackagingRecyclable materials, simple graphics

Quality CuesArtisan, production and sourcing narratives

Nutrition/Sustained EnergyEnergy and weight management continue to be two key aims of snacking today. Theconsumer interest in sustained energy and weight management is as much aspiration as itis need. Sustained energy and weight management can be addressed with protein andcomplex carbs. Dairy, Deli, Specialty Cheese, and Specialty Meats are well positioned forprotein snacks, while Bakery can fill whole grain/high fiber complex carb snack needs.

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Quality CaloriesConsumers expect snacks to do more for them—quality of calories, nutrition density, meal-bridge, energy, and better-for-you indulgence.

Food retailers are the primary source for snacks.Shoppers, especially Millennials (who snackmore), are looking beyond center-store snackaisles to fresh, real food choices in freshperimeter categories. They are looking at thequality of calories (nutritional density), ratherthan counting calories, and are seeking qualityingredients, rather than greatest quantity forless money.

$-

$100

$200

$300

$400

$500

2005 2008 2011 2014

+ 20%CAGR

2009-2014

Source: Euromonitor, 2015; Hartman Analysis

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Global & Reimagined FlavorsSnacks provide a perfect, low-risk way to tryout new cuisines and ways of eating;consumers appreciate being given theopportunity to have a moment of excitementand discovery of authentic flavors in theirday. Global foods also carry a health halo forconsumers as, if done authentically, they cuecleaner, fresher, and higher quality.

Today, food producers are borrowing fromthe flavor palette of ethnic cuisines tofreshen up and contemporize familiarofferings. Inclusions tend to be more forward-leaning flavors (chili lime, teriyaki, tzatziki)than familiar base snacks. For example, snackcheeses use aromatic woods and flavors fromparticulates and alcohol; ready-to-heat,packaged appetizers (nuggets, fries, pizza)use spices to add flavor; and packagedsnacks, such as popcorn and nuts, are idealvehicles for any savory seasoning.

New snack types and forms emanating fromregionally global cuisines are meeting desirefor novelty and exposing consumers to thehealth benefits of lesser-known ingredientsand preparations.

41%

41%

44%

45%

52%

54%

36%

34%

52%

35%

54%

68%

31%

31%

51%

25%

56%

73%

Fast food

Trying new kinds ofethnic cuisine

Common(Americanized) ethnicfoods (e.g., Tex-Mex,

Italian-American,…

Anything new anddifferent

The food I grew upwith

Classic Americancooking

Current Taste Preferences*

Boomer Gen X Millennial

Growing trends to watch• Reimagined concession-type

snacks—e.g., pretzels, churros,samosas

• Lesser-known fruits and vegetablesin both fresh and dried formats

• Greater use of sea vegetables intheir whole form

• Traditional snack mixes• Intersection with diet trends such as

gluten free, raw, vegan

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Source: *Outlook on the Millennial Consumer, 2014. Q33. How would you describe your CURRENT TASTE PREFERENCES? I really enjoy… (Please select all that apply). Base: Millennials (n=1,438); Gen X (n=422); Boomers (n=295)

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Telling Stories: where snacks come from / how they’re madeAs consumers look for higher quality and fresher snacks, the narrative around the productbecomes particularly important. Key areas which fresh perimeter departments can focuson to help tell the story include:

What’s in it: Consumers seek out simple ingredients and flavors that connect to real foods.Ensure that ingredient panels convey clean and simple.

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Variety Seeking: multi-channel snack sourcing, including onlineThere was an explosion of online food delivery companies in 2014. These companies arerapidly appearing to fill every possible market niche within food delivery, from fullyprepared meals and snack foods to ingredients. Common threads among these digitalnewcomers include higher-quality ingredients, skilled techniques, and transparency insourcing and production, which may pose a competitive threat to the fresh perimeter.

How it’s made: Keep product offerings/displays as close as possible to their “earthly”source, so that shoppers feel products demonstrate that they are minimally processed.

Who made it: Provide a passionate narrative about the keypeople behind the product: farmers, chefs, etc., alongsidestories of care and pride in the quality of the product.

How it’s packaged: Packaging is a strong indicator of qualityand helps convey that snacks are minimally processed.Providing smaller-sized packaging that is also clean,transparent, and as minimal as possible cues a strongconnection to fresh, less processed foods and beverages.

However, it is important toremember that online snacksourcing (particularly for freshperishables) is still a developingarea (with 0.7% market share ofthe total packaged food market,growing at 7.1% 5 Yr CAGR*).

While online is farther out on the horizon as a competitivethreat to Dairy, Deli, and Bakery departments, any channelthat offers opportunities for more variety, be it higherquality, specialized ingredients, new combinations of foods,local sources, or other new experiences, is competition.

*Source: Euromonitor 2014, Internet Retail share of value RSP, 2009-2014; Online Retailers show the strongest 5Yr CAGR of retail sales % distribution among all other retail channels; Hartman Analysis.**Source: Hartman Group Shopping In America, 2014

Feelings About Channels Has unique items I can’t

find elsewhere**(describes me well/somewhat)

Specialty 91%Online 84%Club 74% Grocery 54%

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Snacking Occasions and Fresh Perimeter Categories

Would the (Area/Department) at (Your Preferred Store) Be a Good Source for Your Needs When It Comes to Getting Something Quick to Prepare or Eat for…?*

Occasion Bakery Dairy Deli PreparedSpecialty Cheese

Specialty Meats

Healthy Snacks 28% 52% 28% 28% 44% 28%

Indulgent or Interesting Snacks

42% 27% 23% 25% 39% 22%

Perceptions of Dairy, Deli, Bakery, Specialty Cheese, Specialty Meats for snacking:Consumers turn to these areas of the store across all Healthy and Indulgent SnackingOccasions.

The approach to healthy snacks varies, however. Millennials prioritize Dairy (driven byintentional Health & Wellness priorities, such as digestion and immunity as well as asource of protein for energy and satiety), while Boomers look to Specialty Cheeses(driven by a more balanced approach to Wellness, such as focusing on a combination ofdisciplined nutrition and indulgence).

*Source: IDDBA, Engaging the Evolving Shopper 2014. Responded to category questions n=405 – Bakery; n=460-Dairy; n=372-Deli; n=356-Prepared; n=318-Specialty Cheese; n=325-Specialty Meats. Highlighted percentages indicate top categories foreach daypart.

For Indulgent Snacks, Bakery, and Specialty Cheese are the areasmost sought out by consumers. Bakery has always been seen as aplace for indulgence, and this perception, combined withcontinued ‘carb-fatigue’ and growing preferences for gluten-freeproducts with healthy wheat alternatives, means that Bakerydepartments should assess how they can best serve shoppers.Consumers are seeking out products that convey ‘permissibleindulgence.’ Rather than having to ‘deprive themselves,’ theyseek reward through smaller, or ‘mini,’ naturally sweetened oreven ‘less-sweet’ snacks. In Specialty Cheese, consumers canexplore new and interesting flavors at the same time as having ahealthy, less processed snack.

While consumers also look to Deli, Prepared Foods, and SpecialtyMeats for snacking, there is still significant opportunity todevelop these areas further as ‘go-to’ sources of snacking:focusing on small, pre-portioned pack sizes, mix and match,alongside freshness and quality.

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Time

As consumers continue to feel that theirlives are busy and time-compressed,retailers need to focus on providing themwith quick, yet exciting, new and relevantfood for modern lifestyles. Now, more thanever, consumers are recognizing and valuinghigher-quality ingredients and meaningfulauthenticity.

As consumers approach these areas of thefresh perimeter for snacking occasions,their expectations for fresh, less processedare high, as demonstrated by the fact thatmany consumers, while time-pressed, arestill willing to leave their primary store for aspecialty store in search of betteralternatives.

Convenience

The notion of convenience comes to theforefront for most consumers and is highlyconnected to a perceived lack of time orenergy to do something. In the retailsetting, consumers often see a trade-offbetween convenience and freshness. Focuson quality cues that help indicate fresh, lessprocessed, such as made-on dates, localsources.

In eating, a desire for convenience can maskpowerful unmet consumer needs, which areimportant for the retailer. For example,young, single consumers are often insecureabout their cooking/snack prep skills:convenience means eliminating the risk.Young families, alternatively, may think ofconvenience as helping them to make food

quickly so they can get back to the family.And empty nesters, on the other hand, maythink of convenience in snacking as allowingthem easily to explore new foods. The Dairy,Deli, Bakery, and Specialty Cheese areas areall well-positioned to deliver on thesenotions of convenience, without the trade-off on quality and freshness that consumersmay perceive in center-store-focusedcategories.

Health/Freshness/Protein

Consumers are increasingly tuned into theirstores for healthy and inspired snacking. Forsnacking ideas, a quarter of consumers lookto in-store nutritionists, and 13% look tochefs, indicating that consumers are seekingout both healthy and inspirational snackingideas in the fresh perimeter.*

Protein continues to be top of mind forconsumers, particularly in relation tosatiety, weight management, and sustainedenergy (51% of consumers express seekingout protein in their daily diet**). There is anopportunity to expand the range of items inDeli, Dairy, Specialty Cheese, and Bakery byfocusing on combinations with otherprotein sources (such as nuts and grains).

*Source: IDDBA, Engaging the Evolving Shopper 2014 (n=869 U.S. adults).**Source: Hartman H&W Study, 2013.

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Key Drivers on Snacking Occasions for Fresh Perimeter Categories

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Key Drivers on Snacking Occasions for Fresh Perimeter CategoriesExploration

Consumers continue to eat for discovery and exploration (47% of consumers say they really enjoy anything new and different or trying new kinds of ethnic cuisine*). The fresh perimeter area provides an opportunity for consumers to explore, while at the same time enables desires for highly personal and customized choices.

Indulgence

Consumers are seeking out both healthy and indulgent snacking, and are no longer willing to make trade-offs. The fresh perimeter can address both of these needs simultaneously through global flavors and formats, texture variety, and even by expanding upon savory flavors (e.g., a seasonal-vegetable single-serve chilled soup in the summertime).

Portion Control

Consumers are making changes in their snacking behavior, opting for healthier choices and better portion control. The fresh perimeter offers a unique opportunity for consumers to buy smaller-sized fresh items that can be eaten either individually as a small snack or ‘mix and match’ for more of a ‘mini meal.’

*Source: The Hartman Group syndicated study on the Culture of Millennials, 2011, n=2,674.

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Pre-portioned Deli items, perfect sized

“I usually buy little grazing things. That whole section in the deli is good for me — things like pickles, antipasto, small sandwiches.”~Susan, 58, Seattle

Pret a Manger’s single-serve chilled, seasonal soups (Sweet Pea & Mint, and Gazpacho) focus on freshness, indulgence, and seasonal ingredients.

British Retailer Waitrose combines

global exploration and snacking with its

‘Warming and SavouryBlack Bean

Chimichangas

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Actionable Ideas – BakeryWhile most shoppers will admit to (at least occasionally) enjoying treats from their store’s Bakery department, an analysis of shopper profiles and preferences in Bakery reveals that retailers and manufacturers face unique challenges in terms of matching product offerings with evolving consumer preferences.

There is an increasing opportunity to deliver on key wellness priorities, particularly in snacks, focusing on fresh, whole grain, and gluten-free products.

Key Actionable Ideas for Retailers:

• Deliver on freshness. Consider a tortillapress stand in the bakery, allowingconsumers to perceive both the highstandard of freshness and how theproduct is made.

• Focus on petite, smaller-portions ofindulgence. While freshness is a focusin the Bakery area, permissibleindulgence is also a key driver, asconsumers still seek out small ‘treats’but without the feeling of regret (e.g.,cake pops, macaroons, petit fours).These would include products madefrom real sources of sugar/sweetness(e.g., maple, honey, real fruit) and‘good fats’ (e.g., real butter, coconutoil, olive oil).

A bulk cookie option allows customers to mix and match flavor varieties rather than buying entire packages of one flavor.

Bulk Cookies in the Bakery

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In-store bread slicers allow consumers customization and optimal freshness when slicing bread.In-Store Bakery Bread Slicer for

Shoppers

• Provide mix and match options,allowing consumers to buy smallerportions and try new, interestingflavors.

• Create opportunities for shoppersto customize and personalize, forexample, with an in-store breadslicer.

For photos of snacking ideas and innovations, view the 2015 IDDBA Show & Sell Albums at https://www.flickr.com/photos/iddba/albums.

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https://www.flickr.com/

https://www.flickr.com/photos/iddba/albums


Actionable Ideas – DairyShoppers seek Dairy as a key place to find healthy snacks – an ever-more important meal occasion. Dairy department shoppers are the most pervasive of all the fresh perimeter category shoppers 1, so there is a significant opportunity to reach a large number of customers with new ideas in snacking. Tap into snacking trends by focusing on emerging quality distinctions in the category.


• Focus on the opportunity fordiscovery in Dairy, emphasizing newtypes of products, such as snack-sizeDairy, for both yogurts and Dairybeverages, including drinkableyogurts, kefirs and alternative milksoffering a quick and healthy pick-me-up, an introduction to global andculinary flavors alongside cleansources of protein and energy.

• Alternative milk/yogurt optionsmade by small manufacturers,emphasizing local, clean, and fresh,less processed.

• For Millennials, Dairy is a food; forBoomers, Dairy is still a beverage.Ensure that Dairy provides snackableoptions for both food and beverage.Consider cross-departmental cheeseand meat grab n’ go options

1 - Source: IDDBA Engaging the Evolving Shopper, 2014.

Small-portioned grab ’n’ go cheese and meat snacks offer a quick protein kick and a Deli/Dairy cross-

compartmental offering.

Drinkable Dairy such as Siggi’s (drinkable Icelandic yogurt), Dahlicious Lassi (Organic

Turmeric flavor provides global flavor exploration), and Califia Farms Almondmilk

with Protein (drinkable alternative milk protein snack) provide a quick, healthy snack through

Dairy and alternative Dairy beverages.

Culture Yogurt’s Mini Greek Yogurt with Vermont Maple

Topping, focused on small-batch, local

ingredients and flavors

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Mini Greek Yogurtgrab ’n’ go Fresh Cheese and Meat Snack


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Actionable Ideas – Deli and Prepared Foods

In Deli and Prepared, there are many familiar foods that consumers encounter across any grocery Deli area. So inspire consumers as they approach the Deli by creating stronger links between the Deli area and unique restaurant-inspired foods. Describe the foods/ingredients much as a restaurant may on a menu, citing local and special ingredients (free range, grass fed, Walla Walla sweet onions, Michigan cherries). Format innovations will also be key to deliver on snacking: packaging and preparation methods that allow products to be flexibly stored, prepared, or consumed in any number of ways, for any number of people, needs, or occasions.


• Deliver restaurant-quality snacking.Sushi is a strong performing category inthe Deli area, often because sushi is a“manned theater”, with Japanese chefs“on stage” preparing the food, indicatingits ‘restaurant-quality freshness.’

• Glean inspiration from other cultures’small-plate eating traditions (tapas, dimsum, mezzes). US consumers areincreasingly seeking “real food” in lieu ofchips and crackers as a way to fuelthemselves. Continue these notions intoother categories of Deli-prepared foodsso that consumers can see the product’sconnection to both fresh, less processedand the globally inspired snacks.

Create a destination of discovery and pragmatism in the Deli. Feature complete solutions to partial

components; fully cooked to partially prepared; snack-like appetizers to traditional entrées.

Small Portions for Snacking at Zupan's Markets cheese department

Offer small portions of pre-sliced artisanal

salamis that consumers can mix

and match with cheese and crackers.

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grab ’n’ go deli Zupan's Markets

• Create in-store Deli destinations,where consumers can find productsolutions and ideas for the needs anddesires emerging from our moderneating culture. For example: endcapsfeaturing an array of component-likeproducts that inspire consumers toflexibly build baskets for snacks(and/or meals).

The Deli as a Destination for Discovery and Inspiration

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Actionable Ideas – Specialty Cheese

Focus on the experience. Shoppers often turn away from their primary stores when purchasing specialty cheese (only ½ of Specialty Cheese purchases occur at shoppers’ primary stores*); they are signaling a low level of satisfaction.

Meet consumer needs by ensuring that there are fresh, interesting and unique items. There is an even greater opportunity to fully engage with consumers by bringing in cheese specialists, so that consumers can learn more about the product and get new snacking ideas directly from the ‘experts.’


• Bring the Specialists in: Bring thecheesemonger in-store. An in-storekiosk across many stores allowsconsumers direct access to the cheesespecialists, providing an opportunity tolearn about products from a healthysnacking and indulgence perspective.

• Focus on Flavor Discovery: Smallportions of bite-sized, snackable, globalcheeses.

• Offer fresh, less processed, localoptions that are also easy to snack on(pre-cut/pre-portioned), such asBeecher’s cheese curds.

• Cross-departmental Dairy and Deliofferings. Snackify products bycombining petite-sized and moderatelypriced components from different

departments. For example, cheese & antipasto, or cheese & fruit grab and go (such as Starbucks’ Protein Bistro Box), which also provides the consumer with an opportunity to be creative and mix and match snackable ingredients.

*Source: IDDBA Engaging the Evolving Shopper 2014. Responded to category questions n=405- Bakery; n=460-Dairy;n=372-Deli; n=356-Prepared; n=318-Specialty Cheese; n-325-Specialty Meats.

In-store cheese cave — Bringingthe Specialty store to the Grocery

Consumer.

Play with the idea of a mix and match bento box: Cross-

departmental Dairy and Deli offerings: snackable cheeses, meats,

bread, eggs, and fruit.

Protein Bistro Box

In Store Cheese Kiosk

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Appendix: Objectives and Approach

Objective:

The objective of this white paper was to provide members a better understanding ofcultural, wellness, and eating trends driving consumer snacking behavior today and toprovide actionable ideas for leveraging snacking opportunities in fresh perimeterdepartments.

Approach:

This work leveraged IDDBA’s 2014 consumer study, Engaging the Evolving Shopper:Serving the New American Appetite in addition to The Hartman Group’s extensivesyndicated study database and trends work.

Hartman Intellectual Capital:

We mined our extensive cache of Health & Wellness and Food Culture intellectualcapital for insights into the tensions, drivers, and trends influencing consumers’snacking behavior in the Deli, Dairy, Bakery, and Specialty Cheese departments.Hartman Syndicated studies and reports highly influential in this analysis are:

» Ideas in Food, 2015

» Modern Eating: Cultural Roots, Daily Behaviors, 2013

» Wellness Syndicated Study, 2013

» The Culture of Millennials, 2011

» Hartman’s Eating/Drinking Occasions Database, which contains a total of 54,000eating/drinking occasions. Using the database, we analyzed occasion-level trendsin snacking.

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ABOUT THE HARTMAN GROUP

The Hartman Group is the premier food and beverage consultancy in the world. Companies and brands across all segments of the food and beverage industry benefit from our unparalleled depth of knowledge on consumers, culture, trends and demand-side market strategy. www.hartman-group.com

International Dairy-Deli-Bakery Association636 Science Drive, Madison, WI 53711-1073608-310-5000; iddba.org

IDDBA is a nonprofit membership organization serving the dairy, deli, bakery, cheese, and supermarket foodservice industries. Member companies enjoy many benefits and services including the annual seminar and expo, leading-edge research, training programs, management tools, and an annual trends report.

http://www.hartman-group.com

snacking opportunities - iddba · consumers on snacking opportunities in the fresh perimeter ......

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