Food Business News - February 9, 2016 - (Page 13)

newer companies will remain competitive as they leverage new technologies to earn consumer trust, and market success will be determined by those companies that can build purpose-driven competitive advantages. "Today's consumers have a higher thirst for knowledge than previous generations, and they are putting the assessment of that information into their value equation," said Jim Flannery, senior executive vice-president of operations and industry collaboration at the G.M.A. "There is no doubt that the consumer value equation has changed - as taste, price and convenience are now only the foundation with the need to leverage the emerging value drivers. Brands that win with consumers will likely be those that provide the information they seek, well beyond what is on the label." Demographics of traditional vs. evolving purchase drivers Of concern to larger food companies is the level of distrust consumers have for such businesses. A social media survey conducted by Deloitte in 2014 found that consumers are 3.4 times more likely to have negative perceptions about food companies than larger companies in other industries. "The tendency toward distrust appears particularly true of millennials," the report said. "According to a recent Mintel report, two in five U.S. millennials agree they do not trust large food manufacturers compared to just 18% of non-millennials. Concerns with trust were overwhelmingly reflected during our interviews with food and beverage industry executives who say the issue of trust represents a growing challenge." FBN Take the lead in transparency Fresh perimeter U.S. retail sales overall CHICAGO - Embracing antibiotic-free, organic and other claims associated with transparency nd may help supermarkets and her other retail outlets further imincrease profits in the perimhris eter of their stores, said Chris DuBois, senior principal for Information Resources, Inc., a Chicago-based market research firm. The Food Marketing Institute, Arlington, Va., recently commissioned I.R.I. to develop a retail report. Mr. DuBois February 9, 2016 grew 4.5% to $140 billion in the 52 weeks ended Nov. 29, 2015. Source: Information Resources, Inc. in a Jan Jan. 28 webinar gave details on how the transparency trend is leading sales growth in the store perimeter. He described transparency, which involves sharing information with consumers about where food is grown and how it is made, as being "very early" in its development. Fresh perimeter U.S. retail sales overall grew 4.5% to $140 billion in the 52 weeks ended Nov. 29, 2015, he said. Within the category, sales of meat without antibiotics grew 23% to reach $2.9 billion. Organ ganic meat sales grew 32% to rea reach $582 million. Organic pro produce, with sales growth of 13%, reached $4.5 billion. M More sales growth came fr from deli meat without anttibiotics (29%) and deli orgganic cheese (66%). Chicken without antibio otics, which accounted for 12 12% of total chicken sales, con contributed 67% of total chi chicken sales growth for the 52 w weeks ended Nov. 29, 2015. ""Are you going to make privat vate label chicken antibioticfree?" Mr. DuBois asked. "Yes or no?" Organic produce contributed 30% of total produce sales growth. Price gaps between organic produce and conventional produce are closing, Mr. DuBois said. In 2011, organic baby carrots on average sold for $1.45 per lb and conventional baby carrots sold for $1.26 per lb. In 2015, the average prices were $1.38 per lb for organic and $1.30 per lb for conventional. Some retailers might consider selling only organic baby carrots and dropping conventional baby carrots, he said. Mr. DuBois listed several other areas likely to grow in popularity: seafood sustainability, fair wages to field workers, non-bioengineered/ non-G.M.O. and animal welfare. Retailer/grower partnerships may become more common. Third-party certification may become more important in animal welfare. Also, he said consumers perceive local product as having better quality, although it may not, and consumers are interested in traceability. People want to use their phone in the supermarket to find out where the food originated. Apps such as HarvestMark are allowing them to do just that. FBN FOODBUSINESS NEWS ® 13

Table of Contents for the Digital Edition of Food Business News - February 9, 2016

Food Business News - February 9, 2016
Mondelez expects snack sales to slow
Starbucks ‘firing on all cylinders’ in C.P.G.
Beverage Business News - Boosting the nutrition profile of beverages
Table of Contents
Web Contents
Editorial - Trust and the rising bar for ‘achieving’ food safety
Survey finds natural labels may mislead consumers
‘The U.S. consumer has changed’
Take the lead in transparency
ChemChina to acquire Syngenta for $43 billion
A new venture for PepsiCo
Chipotle focusing on recovery, food safety
Coca-Cola takes stake in Nigerian business
SuperValu picks new president, c.e.o.
Madagascar 2 - Vanilla prices soar again
Nestle in talks to acquire Israel’s largest food company
Global challenges weigh on Hershey’s earnings
Court sides with Dannon, General Mills in yogurt case
Market Insight - Beef is bouncing back
Ingredient Trends - Plant protein applications evolving
Ingredient Innovations - Three considerations when choosing emulsifiers
Emulsion innovation extends beverage stability
New Food Products
Ingredient Market Trends - Ethanol fuels fireworks in the Iowa Republican caucus
Ingredient Markets
Supplier Innovations and News
Ad Index

Food Business News - February 9, 2016