Supermarket Perimeter - December 2022 - 9

C
onvenience. Health and wellbeing. Transparency. They're all
huge trends in themselves. Put them together, and you have a
force to be reckoned with - and a vision for the grocery fresh
perimeter that's very bright indeed.
" We see all of these converging in the world of fresh, " said Rick Stein,
vice president of fresh for Arlington, Va.-based FMI - The Food Industry
Association.
The rise of Generation Z is one big reason why, Stein said. As older
Gen Zers start to make their own purchasing decisions, grocery retailers
are starting to take notice, and adjust not only their fresh SKUs but the
entire fresh perimeter experience.
" That segment is really going to drive a lot of fresh departments over
next five to ten years, and our members seem to know that, " Stein said.
" They talk about investing in fresh, about how that's the area of the
store that's really being the decision maker for these folks. "
The differences between Gen Z and their immediate generational
predecessors, the Millennials, are larger than many people think. Stein
recalls Millennials rolling their collective eyes at he and his fellow Baby
Boomers. Now, he said, many Gen Zers have a similar reaction to much
Millennial behavior.
" The Millennials were very cynical about what you told them. If you're
green-washing or being disingenuous, you lose them completely. And
they rely heavily on social media or friends " to get their information and
form their beliefs, Stein said.
Gen Zers, by contrast, are more likely to make up their minds for
themselves. They're not as cynical - but they're also much more
demanding.
" We'll have to explain where their food comes from. Social
responsibility, animal welfare, sustainability and climate are very
important to Gen Z. "
The path is clear, but that doesn't mean it will be easy to navigate. The
youngest shoppers are committed to convenience, health and wellbeing
and transparency, but they don't always know how to translate those
wants and needs into real world activities like buying groceries.
" They don't know how to engage with fresh, " Stein said. " What we'll
see in the next few years will be new ways to communicate with them.
Electronic recipes. Information on where product comes from, farm to
shelf, ingredients and nutrients. "
Challenges - and opportunities
While the fresh food industry has stabilized since the peak COVIDrelated
disruptions, the challenges of supply chain, labor, and record
inflation will continue to impact the industry for the near future, said
Whitney Atkins, vice president of marketing for the Madison, Wis.-based
International Dairy Deli Bakery Association (IDDBA).
" These challenges can make predicting the future five to ten years
seem impossible, but what we can do is use the data and consumer
behavior trends we have to look forward, " Atkins said.
One trend IDDBA is tracking closely is the increase in at-home dining,
which bodes well for the perimeter dairy, deli and bakery departments.
" Rotisserie chicken, sandwiches and pizza sales from the deli
continue to grow, " for instance, Atkins said, citing IDDBA data.
" Consumers are seeking restaurant equivalent at retail and looking for
complete meal options. "
New ideas on meals
Meal solutions will continue to play a huge
role in the fresh perimeter of the future,
but they will definitely look different from
today's solutions, said Rick Stein, vice
president of fresh for Arlington, Va.-based
FMI - The Food Industry Association.
For instance, the notion of the " meal kit "
will likely change entirely - if not become
altogether obsolete.
" Meal kits, in my opinion, the concept is
spot on, but operationalizing it has been
very difficult, " Stein said.
One of the main problems: it's hard to
convince consumers to buy unless they're
fans of all of the ingredients in the kit. If
they're not - the protein and carb are
fine, but they're not asparagus fans -
they're likely not going to buy it.
" There's too much shrink, and it's hard for
retailers to make money on them. Meal
kits aren't nearly as big as they were five
years ago. "
But that doesn't change the fact, Stein
said, that the idea behind meal kits from
the fresh perimeter - helping consumers
meet their needs for convenience and, at
the same time, for flavor and healthfulness
- is an excellent idea, one of the best.
" The concept resonates with consumers.
It doesn't necessarily have to be a kit. It
can be an ideation. The retailer gives you
the concept and ideas, and you collect the
items on your own. "
DECEMBER 2022 - 9
VECTORFUSIONART , RICKA_KINAMOTO - STOCK.ADOBE.COM
Supermarket Perimeter - December 2022

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