Quick summary of Californian Retail. Summer 2016
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- Christina Tyler
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1 Quick summary of Californian Retail Summer 2016
2 Overview - Fresh Produce Fresh Produce=11.4% of total grocery sales Shoppers spend more money in the store if Fresh Produce is included in the transaction - Av transaction $62 (with FP) vs $41 58% of trips to the Grocery store do not include Fresh Produce All Poppable products on the rise (Berries, Grapes), other more traditional products in decline (Bananas, Apples, Stonefruit).
3 Purchasing Habits Total # of household trips to purchase all groceries is trending down, down by 1.3% in 2015 Although, total # of household trips to purchase Fresh Foods has been trending upwards, up by 1% in 2015 Higher income and socially conscious foodies are driving demand in the US, preferences include Organic, Prepared, Flavor and Local Well Being/ Healthy Mindset consumers on the rise
4 Fresh Produce - Strongest Trends - Prep and Organics US Fresh Cut product is on the rise. Prep Fruit up 7.8% YoY, Prep Salad up 9.2% YoY, Prep Veg up 8.7% YoY Inflation of circa 1% across the category Strong Organic Fresh Produce growth, Veg up 14% & Fruit up 16% Inflation in Veg (0.7%)and deflation in Fruit (-5.5%) Many Brands involved in driving strong performance. Organic Retailers giving Organic Produce good PR with strong presence of Branded Goods- Erewhon, Lassens ( Follow your Heart (
5 Store Formats Stores with a Hospitality Core eg. Farmshop ( Brentwood, LA. Very Premium, Organic, Health Focused Celebrity hotspots eg. Erewhon ( Health took centre stage at many of the upmarket retailers. Other CA retailers to look out for - Local Co-op Stores, Follow your heart, Lassens, although many other independents are interesting. Similar Health & Produce focused NYC retailers to look out for - Morton Williams, Kings Food Markets, 3 Guys from Brooklyn, Urban Market of Williamsburg Costco on a large scale, refrigerated rooms for Fresh Produce, across US. In store Tastings - very popular. I could have had a whole meal in
6 Smoothie Bars Sunlife Organics ( Erewhon ( Juice Served Here ( Broad spectrum of ingredients including Goat Colostrum, Maca, Hemp, magosteen extract, dha omega oil, cocunut meat, nut butters. Coconut ingredients, oil, meat, milk, water all major ingredient Lots of Tonics getting a lot of advertisement and publicity. Shots also popular eg. Chlorophyll, Ginger, Turmeric, Kimchi. Shots now also sold in larger quantities to store in the fridge to use throughout the week. Trend of drinking warm chicken stock. Available at many smoothie and health food stores. Cold Brew Coffee getting prime retail space with displays being made out of it brewing in glass at the counter.
7 Fresh Produce - Prepared Salads Innovative dressings eg. Green Matcha dressing Protein Salad kits including cheese and nuts Micro greens, large pack size including micro Broccoli and micro sunflower greens Family size (Party size) Prep Salads (Costco + others) XL Crudites packs including brassica/ peppers Prep Jicama (in Prep Fruit fixture generally)
8 Fresh Produce - Prepared Veg Shredded brassica mixes Sliced broccoli stalk (utilising waste) Chopped/ Crumbled cauliflower Broccoli slaw Konaberry noodles (seaweed based) Kimchi (chilled, fresher looking than Ambient Kimchi) Chopped individual packs of chopped celery, onion, tomato, peppers etc. etc. Salads including cut veg, pulses and beans e.g. Nourish Brand (
9 Fresh Produce - Prep Fruit Larger/ Family Platters seen often made in store Peeled Apple Slices Selection of non browning varieties and new flavor profiles, Opal appears it is popular for future use Jicama Sticks (which I have seen in Prep Veg and Fruit fixture) Frozen prep fruit and smoothie ingredients given generous space including prep pomegranate frozen.
10 Fresh Produce - Veg Taste and Shake Potatoes in a pot (semi prep) Fresh Stevia as a herb Turmeric a trend alkie UK Nasturtium Pods (with herbs, often pickled, horseradish flavor) Pati Pan in good distribution (including costco), sold in bigger, cheaper packs, not as premium as in UK. Theatre and presentation of the produce most noticeable difference Kohl Rabi, alike Europe sold in many retailers
11 Fresh Produce - Salad Shishito Peppers Purple Japanese Peppers Edible flowers popular in high end LA retail
12 Fresh Produce - Fruit Key Limes sold in nets Good variety of melons including Hami melon, Casaba, Crenshaw. Hami and Casaba could be variations of cantaloupe and honeydew. Kiwano Melon (can t see this one being a biggie ) Red Bananas in wide store distribution Exotics surprisingly well represented Specific Ripe Banana packs that could be packed in store
13 Fresh Produce - Horti Refrigerated displays were the most significant opportunity/ difference. Mix and Match flowers then prepped in store seemed popular across Wholefood stores Home, Non Food extras including vases given specific areas adjacent to Horti in some stores Many stores catering for specific local events eg. Graduation.
14 Food to Go Chilled healthy snacks often free of dairy, gluten, refined sugar, sometimes raw. Many healthier alternative snacks, including - Perfect Bar, Hail Merry snacks (chilled)meat based protein bars eg. Epic bar/ Paleobar (Bacon, Egg and Coffee bar) Transparency of ingredients becoming a trend - RX bar And Vita brand Probiotic Tonic Drinks. Gut Shots popular.kombutcha (massive trend), Keifr of various flavors and consistency Protein Boxes including carrots, broccoli, dip, cheese and almonds. Patties offered as Sandwich alternative. Vegan wraps eg. Wrawp bread made with a base of courgette, apple and flax.
15 Deli and Counters Innovative Salads on the counter including - Green Mango Salad, Hot and Sour Sweet Corn salad, Kale and Golden Beetroot, Asparagus Artichoke and Tomato Salad. Innovative Ingredients including - Sprouted Almonds, Sprouted Hummus, Apple Cider Vinegar, Rawmesan, Grated Turnip, Tahini, Jicama, Cashew Cheese, Tempeh Acai Bowls very popular, including ingredients - Coconut water, coconut nectar, nut butters, cacao, various fruits. Combo deals encouraging trade up and creating alternative to FTG lunch Fresh Pasta and Ravioli also on counters Halva Bar, Chelsea Market, NYC
16 Healthy Snacking (Ambient) Kale Chips with every seasoning possible also with blends added to the Kale eg. Kale chips with Cashew and Cheese Dehydrated, Raw snacks eg. Brads brand Seaweed thins with flavors and additions eg. Almonds Protein Bars are massive including, RX Bars, Perfect Bar, Dried Meat based bars, Paleobars, see FTG pictures. Dried Fruit with Chili on (from the Tajin seasoning used in Mexico as fresh fruit seasoning) Dried Veggies including exotic ingredients Powdered Raw Caco very popular as in the UK Powdered Protein Powders of every shape, size and ingredient. Matcha Tea Powder & Mate tea
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