Supermarket Perimeter - February 2022 - 6

the
WIRE
Kroger's trends
to watch in '22
The Cincinnati-base
Kroger Co. has identified
10 food trends to keep an
eye on in 2022.
Four flavors the retailer
sees gaining ground in
the year ahead include
umami, everything
seasoning, tequila and
nostalgic flavors that
deliver comfort.
The savory flavor
of tequila follows the
umami trend and leads
into the second section
of trends focused
on premiumization.
Consumers will upgrade
their meals in 2022 by
purchasing products
that deliver plant-based
eating, are local and that
deliver restaurant-quality
experiences.
An interest in
sustainability is
prompting some
consumers to consider
where their food comes
from. That interest is
leading to rising demand
for food and ingredients
grown and processed
locally.
Kroger also sees
consumers embracing
more premium products
as they seek to raise
the level of their dining
experiences at home.
This is leading to interest
in grass-fed beef burgers
and hot dogs, goat
cheese and bacon pinsa
crust style pizza, and
kimchi meatballs.
Behavioral shifts
Kroger sees in 2022
will be around health
and beauty, sharing
and a greater role for
charcuterie in meal
occasions. Demand for
products that contribute
to health and beauty will
continue in the coming
year as consumers seek
collagen-rich bone
broths, antioxidant,
probiotics and omega-3
fatty acids. Sharing at
meals has been a trend
for some time, but
Kroger sees family-packs
focused on specific
dietary needs like low
carbohydrate, plantbased
or vegan gaining
ground in 2022. Along
the same lines, Kroger's
trend researchers
predict charcuterie will
move from a sharable
appetizer to playing a
more prominent role at
breakfast and dessert.
Price index for
meats, poultry,
fish and eggs up
sharply in 2021
According to Bureau
of Labor Statistics of
the US Department of
Labor December 2021
numbers, the food at
home index rose 6.5%
over the past 12 months
compared to a 1.5%
annual increase over
the last 10 years. In
December, the consumer
price index rose 7%.
Compared to 2020,
the index for meats,
poultry, fish and eggs
was 12.5% over the entire
year. However, from
month to month, the
index for meats, poultry,
fish and eggs decreased
0.4% after rising at least
0.7% in each of the last
seven months.
During December,
poultry prices also ticked
up 9.5%.
The index for food
away from home rose 6%
over the last year. The
index for limited-service
meals increased 8%, and
the index for full-service
meals rose 6.6% over
the same period. Dairy
and related products
6 - FEBRUARY 2022
supermarketperimeter.com
increased 1.6% in
December, the smallest
increase of all the
grocery categories.
Amazon, H-E-B,
Market Basket tops
in dunnhumby
survey
Amazon, H-E-B and
Market Basket top
customer data science
specialist dunnhumby's
annual Retailer
Preference Index.
Market Basket climbed
three spots in the
rankings to take third
and was followed by
Wegmans in fourth place.
Amazon Fresh was fifth,
followed by, in order,
Aldi, Trader Joe's, Sam's
Club, Costco, Walmart
Neighborhood Market,
Target, Publix, Walmart,
BJs Wholesale and
Fareway.
" The pandemic has
massively accelerated
changes in how
customers buy their
groceries, and their
behaviors are continuing
to evolve, " said Grant
Steadman, president
of North America for
dunnhumby. " 2021 was
the year that grocery
retail became truly
omni-channel. Retailers
who delivered on their
customers evolving
needs in-store and
online performed best.
This was mostly the
larger players, who
used their advantages
to consolidate
their positions. The
challenges for most
other retailers are
significant, but a number
of mid-size grocers
gained momentum by
understanding their
customers better and
differentiating their
offering accordingly. The
report aims to provide
some direction on why
and how retailers can
best position themselves
to win with customers,
in this era of the Great
Reinvention. "
The rankings are the
result of a statistical
model that predicts
how retailer execution
on various customer
needs - preference
drivers - impact both
lasting emotional bonds
formed with customers,
as well as near-term
and long-term financial
performance.
KROGER, MARIA_SAVENKO - STOCK.ADOBE.COM
http://www.supermarketperimeter.com
Supermarket Perimeter - February 2022

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