Food Business News - June 28, 2016 - (Page 37)

TreeHouse Foods profiles the changing private label consumer CHICAGO - Consumer perceptions about private label products have been shifting from a strictly value alternative to name brands to one that incorporates quality and added value. Consumer research conducted by TreeHouse Foods, Inc., Oak Brook, Ill., has identified different segments of retail shoppers, and the company is using it to unlock greater opportunity in the market for private brands. To better understand what drives consumer attitudes toward eating, toward brands and the choices consumers make when they are in the retail store standing in front of a shelf making a decision, TreeHouse Foods commissioned research to identify different shopper segments. From the data, the company said it identified five segments of consumers. "The first, representing about 9% of total private label spend, are the brand loyalists," said Rachel R. Bishop, chief strategy officer, on June 14 during a presentation at the William Blair Growth Stock Conference in Chicago. " ... These are the people who pick the brand. They don't look at the private label. They buy private label if the price gap is very, very large or if their brand is out of stock." She called the second segment the "detached habitualist," which she said also make up approximately 9% of spending. "This person buys out of habit," Ms. Bishop said. "They buy the same thing every time. They go to the same store; they have the same shopping list. They are not engaged, you can't interrupt them during their shopping trip because they have already decided what they are going to get, and they are not trying to look and see what the different choices are out there." The "value optimizer" is a very traditional private label shopper, Ms. Bishop said. These consumers are comparing prices and looking at the national brand June 28, 2016 equivalent. They most likely shop with a list and are likely to use coupons. " ... They have a budget," she said. "They are trying to spend under a certain amount of money and they are choosing private label in order to feed their family for less. This makes up about 30% of the population." Rounding out the final two segments were consumers Ms. Bishop categorized as "premium shoppers." "One we called the 'solution seeker,'" she said. "And so the solution seeker tends to be a millennial mom who is very open to try new things as we saw before, very brand agnostic, but she is looking to save money. And if she can save time as well, she is quite happy to do so. " ... She is looking for the apple sauce squeezers instead of a spoon apple sauce. She is looking for something that she can throw on the kids lunch be it a granola ASK US HOW GNT CAN HELP. Rachel R. Bishop, TreeHouse Foods, Inc. bar or a fruit snack, something like that, and she is incredibly open to private label. She makes up almost 25% of total private label spend." The second premium shopper identified by the TreeHouse research is what the company dubbed the "quality purist." "This is a person that knows what they want," Ms. Bishop said. "They are reading the literature. They understand what types of products they believe have the best health benefits for their family, and when they pick up a product, they read the label first on the back and then they look at the label on the front. They tend to be affluent, they tend to be pretty price insensitive, but they take great pride in knowing more than the brand or the retailer in More and more food manufacturers count on EXBERRY®, the no. 1 natural color brand. EXBERRY® is not an additive, but simply a concentrate of edible and fully traceable fruits and vegetables. Which makes it the perfect match for your cleanlabel consumer strategy. Learn more about colors from fruit and vegetables. GO TO GROWING COLOURS FOODBUSINESS NEWS ® 37

Table of Contents for the Digital Edition of Food Business News - June 28, 2016

Food Business News - June 28, 2016
What will Brexit mean for U.K. food and agriculture?
Obesity rate rises as sweetener use declines
Beverage Business News - Protein on trend in R.-T.-D. beverages
Table of Contents
Web Contents
Editorial - Market fragmentation intensifies C.P.G., retail competition
Coca-Cola invests in organic aloe water beverage maker
Dunkin’ Donuts evolves with expansion of beverage portfolio
Philadelphia passes tax on caloric, diet beverages
Post said to be considering combining with Lamb Weston
Teasdale adds to private label portfolio with purchase of Mesa Foods
CVS to expand selection of healthier foods, will add to private label line
Monster moving beyond energy beverages with debut of Mutant, Hydro
Coca-Cola changing its soft drink strategy to focus on ‘shaping choice
McDonald’s to relocate corporate headquarters
Smucker earnings soar on coffee sales, pet food acquisition
A squeeze on pectin
Picking out pectin alternatives
Kellogg launches $100 million venture capital fund
Kellogg adds Pure Organic to Kashi portfolio
TreeHouse Foods profiles the changing private label consumer
Martha Stewart enters meal kit market with delivery subscription service
B&G Foods ready to ‘fight back’ in frozen food aisle
Washington - Audit finds F.D.A. must improve food recall process
Snack Trends - Key trends unveiled at Sweets & Snacks 2016
Crispy, convenient and gluten-free
When gluten-free orders get serious
Company profile - WhiteWave Foods eyeing $3 billion in additional U.S. plant-based foods sales
WhiteWave’s Earthbound Farm brand set to soar in fresh and frozen
Industry Images - Record attendance at 2016 Purchasing Seminar
New Food Products
Ingredient Market Trends - Post-eleventh hour compromise on G.M.O. labeling
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - June 28, 2016