Fresh Top Trends in
Holistic Health February 23, 2017
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Thank you to IRI and Burris Logistics For making this webinar possible
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FMI is the trade association that
serves as the voice of food retail.
We assist food retailers in their role
of feeding families and enriching
lives.
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ASSET PROTECTION
EDUCATION RESEARCH
FOOD SAFETY & DEFENSE
GOVERNMENT RELATIONS
SUSTAINABILITY
SUPPLY CHAIN
HEALTH & WELLNESS
PRIVATE BRANDS
FRESH FOODS INFORMATION SERVICE
CENTER STORE CONSUMER &
COMMUNITY AFFAIRS INDEPENDENT
OPERATOR
COMMUNICATION WHOLESALER
TECHNOLOGY
The Association:
Our members are food retailers, wholesales and
suppliers of all types and sizes
FMI provides comprehensive programs,
resources and advocacy for the food, pharmacy
and grocery retail industry
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Fresh @ FMI
Fresh Foods
Emphasis on fresh
• Produce
• Meat
• Seafood
• Deli/In-store, fresh prepared foods and
assortments
FMI is committed to the growth and success of fresh
companies and their partners. FMI provides resources
and networks that support the interests of member
companies throughout the global, fresh produce supply
chain, including family-owned, private and publicly
traded businesses as well as regional, national and
international companies.
Rick Stein Vice President, Fresh Foods
Food Marketing Institute
202.220.0700
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FMI Fresh Executive Committee John Ruane (Co-Chair)
Ahold USA
Rick Steigerwald (Co-Chair)
Lund Food Holdings, Inc.
Tom DeVries (Past Chair)
Giant Eagle, Inc.
John Beretta
Albertsons, LLC
Dave Bornmann
Publix Super Markets, Inc.
Scott Bradley
Target Corporation
Jerry Chadwick
Lancaster Foods, LLC
Alex Corbishley
Target Corporation
Chris Darling
Albertsons, LLC
Dan Koch
Associated Wholesale Grocers, Inc.
John Grimes
Weis
John Haggerty
Burris Logistics
Mark Hilton
Harris Teeter LLC
Chris Lane
Wakefern Food Corporation
Mike Malone
Brookshire Grocery Company
Dan Murphy
Unified Grocers, Inc.
Pat Pessotto
Longo Brothers Fruit Markets Inc.
Jerry Suter
Meijer, Inc.
Geoff Waldau
Delhaize America
Brett Bremser
Hy-Vee
Jim Lemke
Robinson Fresh
Emily Coborn
Coborns
Mark Doiron
Schnuck Markets, Inc.
Geoff Wexler
Wakefern
Steve Howard
Bristol Farms
Buddy Jones
MDI
Nick Carlino
MDI
Richard Cashion
Healthy Markets
Blaine Bringhurst*
Price Chopper Supermarkets
Nicole Wegman*
Wegmans Food Markets, Inc.
The FEC seeks to • identify areas of
collaboration across all
fresh foods
departments
• promote understanding
and cooperation
throughout the industry
and with sister fresh
associations
• maximize common
learning’s between
fresh categories and to
create a vision of
leadership for the
entire fresh category
Fresh Foods
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FMI Fresh Foods
Research and Education
In-depth information, trends and
insights to foster innovation,
take advantage of new
opportunities and help develop
winning strategies
Networking
Share ideas, explore best
practices and develop business
relations
Advocacy
Understand what is going on in
Washington and make your
voice heard
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2017 Top Trends
in Fresh Foods
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Today’s Discussion
Our Study
Trend Overviews
Holistic Health Deep Dive
3 – 5 Year Projection/Implications
2017 Education Series Rollout
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Our study focused on finding the keys to high performance
Objective
industry interviews primary data analysis secondary research
Inputs
Define the major trends that are driving Perimeter sales outperformance and
will directly impact long-term success of retailers and suppliers over the next 3-
5 years
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Perimeter outpacing other F&B departments over last 4 years
0.5%
1.1%
2.3% 2.6%
1.4%
1.8%
3.8%
Frozen General Food Refrigerated Beverages Total Food Total F&B FreshPerimeter
4-YEAR CAGR DOLLAR GROWTH
2.7X
Source: IRI FreshLook POS data, MULO, 52 weeks ending 10/30/2016
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Perimeter
department sales
$6.4B
$2.8B
$6.3B
$11.3B
$48.2B
$62.5B
$4.7B
Source: IRI FreshLook POS data, MULO, 52 weeks ending 10/30/2016
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2016 Major Perimeter Highlights
Meat
Deflation
Seafood
Strength
Deli Prep
Growth
Produce
Churn
Bakery
Softening
Deli Cheese
Strength
Deli Meat
Stable
Source: IRI FreshLook POS data, MULO, 52 weeks ending 10/30/2016
2.3%
3.8%
5.3%
6.2%
5.0%
4.8%
1.1%
1.3%
0.5%
3.8%
5.3%
3.1%
3.2%
-3.0%
DOLLAR
VOLUME
DOLLAR
VOLUME
DOLLAR
VOLUME
DOLLAR
VOLUME
DOLLAR
VOLUME
DOLLAR
VOLUME
DOLLAR
VOLUME
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2017 Emerging Top Trends in Fresh
Holistic
Health
Atomization of
Personalization
Social &
Cultural
Alignment
Hyper
Localization
RETAILER RESPONSE:
Customization
to New
Consumerism
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We want to know…
Which of these would you say is most critical
to taking care of your overall health?
a
b
c
d
Diet
Exercise
Vitamins
All of the above
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For the Executive Agenda
Trends still in early stages
Embracing these trends drives
sales outperformance
Forms foundation for next generation
of success
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Holistic Health
New consumer-based
definitions of health
and wellness that
drive growth
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In the midst of healthcare premiums rising…
PREMIUMS HAVE SOARED
Average annual health insurance
premiums for family coverage
$2,937 $5,277 $8,508 $12,865
2006 2016
2006 2016
WORKER SHARE EMPLOYER SHARE
Source: Kaiser/HRET Employer sponsored health benefits survey - 2016
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and chronic diseases rising…
230M by 2023
42% increase in
chronic diseases
Source: Milken Institute: “An Unhealthy America: The Economic Burden of Chronic Disease”
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TREAT PREVENT
Over the Counter Products
Prescription Medication
Alt. Medicine & Services
Dietary Supplements Devices
Natural Products Food & Beverages
Home Remedies
…Consumers are adopting Holistic Health/Self Care which involves a 360° approach
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Lifestyle, Including Diet and Exercise, Play a Critical Role
WHICH OF THESE WOULD YOU SAY IS MOST CRITICAL TO TAKING CARE OF YOUR OVERALL HEALTH? Average % Importance, N=4500
Question numbers: Q3
Source: IRI NCP custom survey, February 2014, N=4500
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Consumers have been
leveraging different programs
to assist them
with their Diet and Exercise
activities, along with other
Holistic Health activities
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Consumers’ desires to
manage or prevent disease
states has not only driven
growth in personalized
medicine but also
personalized nutrition
"individualising" advice and
support leveraging technologies as
individual fitness trackers, DNA
testing and calorie counting apps
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Several options available today and evolving for consumers to
own their personalized nutrition programs/platforms
From
calorie
counting
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Including wearable technology and their platforms
To
integrated
platforms
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In addition, consumers
have been reaching out
to various services to
assist them reaching
their lifestyle goals
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We want to know…
Do you buy any of these for specific health
issue(s) or just for recipe needs? (please click
all that apply)
a
b
c
d
Garlic
Brussels Sprouts
Broccoli
All of the above
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Dollar trends are positive across the fresh categories correlating to the diet trends…
36
20
19
12
8 4 2 100
Pharmacist
consultations
Alternative
therapies such
as home
remedies
Total Self-
Care
Vitamins/
Supplements
Over-the-
counter
products
Prescription
medicines
Doctor/
Lab visits
Lifestyle (diet,
exercise, etc.)
Source: IRI NCP custom survey, February 2014, N=4500 Source: IRI FreshLook POS data, MULO, 52 weeks ending 10/30/2016
Meat
Deflation Seafood
Strength Produce
Churn
Bakery
Softening
Deli Cheese
Strength Deli Meat
Stable
Deli Prep
Growth
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…and increase in vitamin/supplement trend…
36
20
19
12
8 4 2 100
Pharmacist
consultations
Alternative
therapies such
as home
remedies
Total Self-
Care
Vitamins/
Supplements
Over-the-
counter
products
Prescription
medicines
Doctor/
Lab visits
Lifestyle (diet,
exercise, etc.)
Source: IRI NCP custom survey, February 2014, N=4500 Source: IRI POS data, MULO, 52 weeks ending 12/26/16
+1.1% UNIT SALES
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…and even home devices too
36
20
19
12
8 4 2 100
Pharmacist
consultations
Alternative
therapies such
as home
remedies
Total Self-
Care
Vitamins/
Supplements
Over-the-
counter
products
Prescription
medicines
Doctor/
Lab visits
Lifestyle (diet,
exercise, etc.)
Source: IRI NCP custom survey, February 2014, N=4500 Source: IRI POS data, MULO, 52 weeks ending 12/26/16
+6.8% UNIT SALES
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Fresh delivers against different consumer needs
Search for foods
that can prevent
& manage
disease states
Foods that
deliver positive
nutrition like
protein
Antioxidants
Nutritional Benefits
Meats for iron,
zinc and
selenium
Detox Protein
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Consumers state they are eating
more Fresh Fruits and Vegetables
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Evident with large growth in several categories
Total Fruit Total Vegetables +3.8% dollars
+0.3% unit
+5.7% dollars
+2.0% unit
25.6% 19.7% 9.8%
6.9% 7.4% 9.3%
8.2% 16.1% 12.6%
6.9% 14.7% 6.2%
Kiwi Tangerines Variety Packs
Apricots Limes Mangoes
Bagged Salad Brussels Sprouts Asparagus
Tofu Beets Squash
Source: IRI FreshLook POS data, MULO, 52 weeks ending 10/30/2016
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Evident with large growth in several categories
Total Fruit Total Vegetables +3.8% dollars
+0.3% unit
+5.7% dollars
+2.0% unit
21.8% 13.6% 12.4%
9.1% 6.5% 5.4%
15.8% 14.8% 10.0%
9.3% 8.6% 7.1%
Kiwi Tangerines Variety Packs
Apricots Limes Mangoes
Bagged Salad Brussels Sprouts Asparagus
Tofu Beets Squash
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In addition, there has been an increase in foods that can prevent/ manage
disease states – e.g., heart conditions
Tomatoes
3.1%
Beans
8.5%
Citrus fruits
9.4%
Garlic
11.8%
Berries
7.6%
Poms and Apples
4.4%
Broccoli and Asparagus
9.8%
Kale and other green leafy veggies
9.7%
Raisins
N/A
Green Tea
N/A
Dark chocolate
N/A
Whole Grains and Lentils
N/A
Nuts and Flax Seeds
N/A
Source: IRI FreshLook POS data, MULO, 52 weeks ending 10/30/2016
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Non-Starch Vegetables
6.7%
Sweet Potato
6.4%
As well as…
Cancer Diabetes
Garlic
11.8%
Beans
8.5%
Green Tea
N/A
Flax Seeds
9.3%
Walnut
N/A
Turmeric
14.5%
Tomatoes
3.1%
Berries
7.6%
Broccoli
6.7%
Whole Grains, Barley and Lentils
N/A
Kale and other green leafy veggies
9.7%
Nuts and Flax Seeds
N/A
Citrus Fruits
9.4%
Fin Fish
4.3%
Tomatoes
3.1%
Broccoli
6.7%
Berries
7.6%
Beans
8.5%
Poms and Apples
4.4%
Source: IRI FreshLook POS data, MULO, 52 weeks ending 10/30/2016
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Cold press juices actually
describe their benefits
based on the ingredients
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Juicing and smoothies
made at home have
fueled growth across
several fruit and
vegetable categories
2.1%
4.5%
5.0%
6.7%
7.6%
8.2%
9.2%
Source: IRI FreshLook POS data, MULO, 52 weeks ending 10/30/2016
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Research has shown that Seafood has numerous
health benefits and consumers are buying
Can decrease the risk of heart attack,
stroke, obesity, and hypertension
High in vitamins and minerals
High-protein food that is low in calories,
total fat, and saturated fat
TOTAL
SEAFOOD
+3.8% $ % CHG
FINFISH
+4.3% $ % CHG
SHELLFISH
+2.3% $ % CHG
OTHER
+12.3% $ % CHG
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Research has shown that Seafood has numerous
health benefits and consumers are buying
Can decrease the risk of heart attack,
stroke, obesity, and hypertension
High in vitamins and minerals
High-protein food that is low in calories,
total fat, and saturated fat
TOTAL
SEAFOOD
+5.3% LB % CHG
FINFISH
+3.7% LB % CHG
SHELLFISH
+7.8% LB % CHG
OTHER
+3.1% LB % CHG
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Superfoods like Salmon for help in
prevention and management of many
conditions and needs
Protein-rich Great for Brain & Heart Functioning
Reduced Cancer-risk For Healthy, Stronger Joints
Fights Asthma Prevents Alzheimer’s Disease
Fights Diabetes Reduced Rheumatoid-Arthritis
Prevents Multiple-
Sclerosis Rich in Vitamins and Minerals
Reduces Depression Rich in Micronutrients +8.4% $ % CHG
+8.5% LB % CHG
Source: IRI FreshLook POS data, MULO, 52 weeks ending 10/30/2016
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Meat also contributes to Holistic Health needs
Protein is said to improve
the overall health and
well-being of one’s body
Rich in iron, zinc
and selenium
Vitamins A, B and D
Skin health maintenance
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ALL Meat Beef Chicken Pork Turkey All Other
5.0B (+5.8%)
5.2B (+3.3%)
2.5B (-0.8%) 1.3B
(-0.9%)
14.7B (+2.8%)
Leading to
growth in Beef
and Chicken
pound sales
0.9B (-0.4%)
Source: IRI FreshLook POS data, MULO, 52 weeks ending 10/30/2016
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Multitude of meat claims leading to consumer confusion
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However, consumers are
gravitating towards ABF,
Organic, & Grass Fed meats
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BEEF
29.9% 5 yr dollar
growth
15.2% ABF share of
protein
CHICKEN BEEF
12.7% 5 yr dollar
growth
3.7% ABF share of
protein
ABF Dollar Sales and Share
6.1% ABF share of
protein
TURKEY
11.7% 5 yr dollar
growth
PORK
32.2% 5 yr dollar
growth
3.5% ABF share of
protein
Leading to large five-year dollar growth rates for ABF
Source: IRI FreshLook POS data, MULO, 52 weeks ending 10/30/2016
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BEEF
31.3% 5 yr dollar
growth
4.1% Organic share
of protein
CHICKEN BEEF
46.4% 5 yr dollar
growth
0.8% Organic share
of protein
Organic Dollar Sales and Share
1.1% Organic share
of protein
TURKEY
55.8% 5 yr dollar
growth
PORK
29.3% 5 yr dollar
growth
0.1% Organic share
of protein
And stronger Organic growth rates
Source: IRI FreshLook POS data, MULO, 52 weeks ending 10/30/2016
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Even Grass Fed beef
has also seen a
significant increase
BEEF
53.5% 5 yr dollar
growth
1.6% Grass Fed share
of protein
Source: IRI FreshLook POS data, MULO, 52 weeks ending 10/30/2016
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We have seen retailer H&W programs accelerate as a
result of consumer demands
Nutritionists – classes,
1:1 consultation, etc.
Chef specialties
Online resources
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Some expanding to assist holistically
Tying in
with fitness
programs/
wearables
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Chain restaurants are also
driving awareness with their
Organic/ABF options
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Retailer online and in-store initiatives have continued to evolve
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We are seeing more and more omnichannel approaches
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That are providing a seamless Holistic Health shopping experience
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Signage/labels are also assisting consumers with Holistic Health needs
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These in-store resources & signage educate consumers along their journey
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In addition, manufacturers competing in fresh use their packaging
as a billboard to inform consumers of their benefits
HEART HEALTHY DIGESTIVE
IMMUNITY/ANTIOXIDANTS BRAIN HEALTH
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“The train has left the station”
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Opportunities to explore today
• Develop and/or enhance your strategy to assist consumers
with their Holistic Health goals
• Continue transparency efforts
• Expand distribution of fresh foods meeting the needs for
Holistic Health initiatives
• Engage with consumers in and out of store (e.g., digital,
online, etc..)
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3-5 Year Outlook
• Holistic Health will increase benefiting the Industry
• Retailers will expand and increase nutritional services to
assist consumers with their Holistic Health approach
• Manufacturers/Retailer partnerships on innovative
approaches assisting consumers with their lifestyle goals
• Innovative ideas and solutions will be essential to
maximize growth
• Education via signage, programs (e.g. Nutritionists) and
online resources will evolve due to their importance for
shoppers
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More than 25% of Americans are adopting
Holistic Health activities with rapid growth
We are projecting
that by 2025,
+50% of Americans
will be living
”Holistic” lifestyles
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2017 Individual Trend Launches + Education Plan
Feb 23 Mar 23 Apr 27 June 1 July 13 Aug-Sept
Holistic
Health
Social and
Cultural
Alignment
Personal -
ization
Retail
Response
Chris DuBois Chris DuBois
Integrated
White
Paper
Summary
Presentation
Sally Lyons Wyatt
Webinar Webinar Webinar Webinar Webinar
Hyper
Localization
Webinar
Steve Ramsey Sally Lyons Wyatt
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Thank you to IRI and Burris Logistics For making this webinar possible
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Thank You! Sally Lyons Wyatt
EVP, Practice Leader
(312) 285-7319
Rick Stein
VP, Fresh Foods
(301) 377-2779