Milling & Baking News - April 21, 2009 - 20

Industry Activities

Consumer shopping behavior changing,
former supermarket executive says
AMELIA ISLAND, FLA. - Broad
changes in how consumers shop at
supermarkets have become evident
as the economic picture has darkened,
said Norm Rich, who recently retired
as president and chief executive officer of Weis Markets, Inc., Sunbury, Pa.
Mr. Rich, who is vice-chairman of the
Food Marketing Institute, discussed
shopping trends in a wide-ranging
presentation that launched the general
session of the American Bakers Association annual meeting April 6 at the
Ritz-Carlton hotel in Amelia Island.
While most of his career was spent
in the supermarket business, Mr. Rich
told the A.B.A. of his roots in baking,
beginning with his grandfather who
baked bread and rolls in Germany. His
father was a baking apprentice there
during the 1930s and fled to the United
States, where he took jobs in various
New York pastry shops. He opened
his own business, and it was there that
Mr. Rich began his work life.
"I cleaned pans," he recalled. "Talk
about the bottom of the ladder!"
Discussing baked foods at Weis Markets, Mr. Rich said wide-ranging opportunities for cross merchandising exist.
Beyond offering deli-style rolls next to
the deli section, he said English muffins
and pies are offered in the dairy section
and bread is sold in the cookie aisle.
Another innovation Mr. Rich identified in baked foods is the continuing
effort to satisfy consumers looking for
single or smaller portions. For families
with one or two members, Weis offers
a half pie, a 4-inch pie, single muffins
and a range of similar configurations.
"At the end of the day, it's all sales,"
Mr. Rich said.
The weaker economy has offered

supermarkets opportunities for growth
in the snack business, Mr. Rich said.
"More and more people are bringing snacks to work from home, rather
than going to vending machines," he
said. "People are cutting down on
junk foods generally. Healthier foods
are doing well, like probiotic cookies.
Fiber rich bread and rolls are really
taking off.
"All this tells me that
there is less impulse
buying going on than
before. Shopping habits
have changed. I see more
people using shopping
lists. People are taking a
more sensible approach Rich
to shopping, asking the
question, 'What do I really need'?"
Mr. Rich said well considered couponing offers a powerful opportunity
to reach these customers. Discounts
on gas, based on how much customers
spend at supermarkets, have been an
effective method at Weis, he said.
With the increased focus on value, attention naturally turns to private label,
Mr. Rich said. He cited data in which
two-thirds of consumers believe private
label offers good quality and value, but
that consumers have greater confidence
in national brands. Like other retailers,
Weis has a three-tier private label program, offering about 125 products under its Big Top value brand.
"Big Top helps reduce leak to dollar and limited assortment stores," Mr.
Rich said.
Weis Quality, the retailer 's national brand equivalent, has achieved
25% penetration, and more recently the company has introduced
premium private label products.

"We've noticed other supermarkets
with premium lines, but we're doing it
differently," he said.
In its Five Star Signature private label lines, Weis has opted to co-brand
its products with manufacturers. For
instance, Utz Quality Foods, Hanover,
Pa., is partnering with Weis on its
snack products. Under the program,
Weis continues to offer the regular
branded product of its partners, who
also include Brent & Sam's (Lance,
Inc.) for cookies and Magnum Coffee
for its Signature coffee line.
Signature facsimiles of Weis executives Robert F. Weis, chairman, and
Jonathan Weis, vice-chairman and secretary, appear on each package.
Returning to baked foods, Mr. Rich
said Big One bread is the value offering from Weis and is placed on the
lowest shelf together with what he
described as a "full complement" of
private label variety bread choices.
The supermarket has been merchandising different products with "shelf
talkers," call-out signs to shoppers
alerting them of savings or that prices
have been frozen on select items.
Mr. Rich, whose experience was in
quality assurance at Weis before going
into general management, concluded
his presentation with a discussion of
food safety.
He said fundamental HACCP (hazard analysis and critical control point)
is proactive.
"If you control your facility, end product will be under control," he said.
Weis has one employee fully dedicated to HACCP, an expenditure Mr.
Rich said "has paid dividends" to the
company.
He sympathized with the bakers
over the challenge they face in tracking ingredients, noting that a single
Continued on Page 23

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Milling & Baking News - April 21, 2009

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