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shopper demographics Within the deli prepared chicken category, rotisserie chicken accounts for 43.1% Trendspotting: Rotisserie Chicken Costco sells 60 to 70 million rotisserie chickens every year by maintaining a low-price leader position at $4.99 apiece. But price is just the starting point. Increasingly, deli shoppers are buying rotisserie chickens to assemble their own convenient meals out of chicken. Savvy instore merchandisers are promoting creative meal ideas that start with rotisserie chicken by bundling with salads, specialty cheeses and other add-ons. Lunch or dinner menu ideas include chicken potpie empanadas, Cobb salad with balsamic vinaigrette, chicken tacos, and roast chicken with grape and blue cheese salad, according to Real Simple magazine. On-trend deli products promise innovative flavors reflecting regional, ethnic and restaurant-inspired cuisine, according to the International Dairy-Deli-Bakery Association. Deli department menus need to highlight small plate ideas, add-ons, time-saving options, sides and other tie-ins to home meal solutions, and customizable options. Within the deli prepared chicken category, rotisserie chicken accounts for 43.1 percent of sales, followed by fried chicken and chicken wings. Instore operators such as Costco are driving big sales out of the fresh foods arena, thanks to the growing popularity of its rotisserie chicken program. Fresh food accounts for 13 percent of sales at Costco, which reported net sales for the 2014 fiscal year of $110.21 billion, an increase of seven percent from the previous year. Costco opened 30 new warehouses in 2014, including 17 in the US and three in Canada. The club store operator continues to build a stronger base across the country. 18 * JAN + FEB 2015 * instore Increasingly, deli shoppers are buying rotisserie chickens to assemble their own convenient meals at home. Costco currently operates 671 warehouses, including 474 in the United States and Puerto Rico, 88 in Canada, 34 in Mexico, 26 in the United Kingdom, 20 in Japan, 11 in Korea, 10 in Taiwan, seven in Australia and one in Spain. Costco also operates electronic commerce web sites in the U.S., Canada, the United Kingdom and Mexico. The average annualized sales of the 30 new warehouses opened during 2014 were Costco's highest ever - coming in at $108 million per location. Average annual sales of all (663) warehouses also reached an all-time high - at $164 million per warehouse, and 165 locations generated annual sales greater than $200 million. Of these, 60 warehouses exceeded $250 million in annual sales, including two with sales in excess of $400 million. Sustainability is another component of Costco's innovation in its rotisserie chicken program. "As we continue to grow our global business, we remain mindful of both the opportunity and the responsibility to conduct our business in a sustainable manner," Costco said in its 2014 annual report. "We have further reduced the amount of waste we send to landfills through the use of additional recycling and composting measures, and have expanded the grease recovery systems in our rotisserie chicken operations. We also have a warehouse program where meat scraps and rotisserie chicken grease are recycled by third parties to make animal feed, biodiesel fuel, soaps, and other products. Our grease recovery systems, now in most of our warehouses, annually divert millions of pounds of grease from the waste stream."

Table of Contents for the Digital Edition of instore - Jan + Feb 2015

instore - Jan + Feb 2015
Editor's Note - Unlocking the Door to Profit
What's Ahead
Table of Contents
News - On Our Radar
Shopper Demographics - Trending Cake
Trendspotting: Fondant Cakes
Trending - Deli Prepared Chicken
Trendspotting - Rotisserie Chicken
Consumer Insights - Millenials
Diet Trends - Gluten-free
Merchandising - The Haggan Experience
Seasonal Promotions - Summer Occasions
Specialty Foods - Health + Flavor
Cakes - Step to the Head of the Class
Foodservice - Stop & Shop Redefines Dining
Specialty Cheese - Snacking Cheese Ideas
Packaging - Safety & Convenience
Product Trends
Product Showcase
Next Up/Ad Index

instore - Jan + Feb 2015