Supermarket Perimeter - March 2019 - 14

SEAFOOD, DAIRY
SEE OPPORTUNITY

Almond milk
sales jumped

The categories that Nielsen identifies as having
premium potential are diverse, including
electronics and clothing. But seafood and
dairy are among the best-performing areas
when it comes to upgrading.

250%

from 2010 to 2015
while the total milk
market shrank.

Seafood is cited most often in developed
markets and is among the top five categories
for which shoppers will consider trading up in
multiple regions.
Thirty-percent of global respondents
said they'd consider paying more for
dairy products. Nielsen data from
between 2014 and 2016 backed up those
claims, noting that premium milk sales grew 52%, driven by milk alternatives such as almond milk.

Location, location, location

Artisan breads, high-end snacking
Within the instore bakery, the snacking category is the one most
associated with premiumization, according to McClellan.
"Premiumization helps give consumers a reason to indulge because
food is now more accessible," he says. "Baked goods and snacking
applications that are made with whole grains and real ingredients can
be used in marketing to justify premium pricing."
Corbion has also seen a push for premiumization within artisan
breads. Instore bakeries can differentiate themselves with more
innovative, unique and nostalgic baked goods made with premium,
local ingredients.
McLellan says that consumers perceive premium breads, such as
artisan breads, to be healthier. Others, meanwhile, simply like the
taste more than standard white or wheat bread and will select a
finished application made with premium, artisan-style bread over
traditional bread.

The "where" of a product can be just as important as the "how" when it
comes to premium perception.
Arlington, Virginia-based Food Marketing Institute reports that
consumers are shopping with a new mindset, seeking connections and
transforming simple commodities to emotional shopping experiences.
Consumers want to feel connected to those faces and farms behind
fresh and perimeter offerings. It helps give the shopping experience a
new dimension.
FMI says hyper-localization revolves around connections to the land,
the producers and the food itself. It requires retailers to source products
closer to stores, deliver food that comes from local farmers and comes
with stories, transparency and added value.
Volpi has found success in tying in those local production stories with
their meats.
The company has partnered with several family farms around its
home base of St. Louis to bring back sustainable farming techniques
as well as heritage breed hogs. That has resulted in Volpi's Heritage
Prosciutto launching locally in December 2018. It is building toward a
national rollout later this year.

According to research from
Jacksonville, Florida-based
Acosta, xennials (in the age
range from 34-40) and millennials (22-36) are far more
apt to search for bargains than
those in Gen X (37-52).
14 - MARCH 2019

But that doesn't mean
xennials and millennials aren't
willing to spend their hardearned money on higher
quality goods. IRI, based in
Chicago, says millennials are
generally more optimistic

about the future and are willing
to pay more for things that
matter most to them.
IRI data found that a higher
percentage of millennials say
they will pay a premium for
things like environmentally

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friendly packaging or food
items with added vitamins or
nutritional benefits. They are
also more likely to pay more
for organic, natural, sustainably and locally sourced
products.

Thrifty, but willing to spend

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Supermarket Perimeter - March 2019

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