Supermarket Perimeter - October 2022 - 13

The ISB perspective
According to the August IDDBA Trends Recap,
both the fresh perimeter and aisle bakery
delivered growth in July, though that was
predominantly driven by price inflation rather
than unit sales, said David Wagstaff, vice
president of North America for Manchester,
UK-based premium brioche category leader St
Pierre Bakery.
However, there are certain subsectors that
bucked the trend including bagels, croissants and
specialty desserts.
" These are areas where premium products
stand to do well and subsectors in which St Pierre
operates, " Wagstaff said. " Coffee shop products
are enjoying significant growth and July has
a major holiday which always boosts more
premium sectors of bakery since so much of
buying in ISB is occasion-led. "
The trend for premiumization, Wagstaff said, is
here to stay. Previously, shoppers were elevating
their meals at home because they couldn't travel
or dine out in the pandemic. Now that the cost of
living is on the uptick, consumers are still looking
to treat themselves well at home.
" Eating better quality food and entertaining
guests at home is still more cost effective than
going out, " he said. " Anything that's saving
shoppers time and provides an easy solution for
entertaining at home is doing well throughout
the store - not just in the bakery. "
There's a real opportunity, he added, for
retailers to inspire shoppers and provide
affordable luxuries, working with brands like St
Pierre to ensure basket spend at a time when
shoppers are economically-speaking, more
discerning.
It's all about delivering " perceived " value,
Wagstaff said. Most shoppers don't assess
value just from the price tag - especially in
food purchases. They look at the quality, the
authenticity, and the versatility of products
across different meal occasions.
When it comes to inflation, Wagstaff said, what
happens when consumers start to feel the pinch
is not that they spend less money necessarily, but
that they become more discerning with where
and how they spend that money.
That means that brands and suppliers offering
quality goods have an opportunity. The financial
difference for consumers between buying 'good'
or 'best' is marginal, therefore, shoppers are more
likely to opt for the better quality, or premium
offering.
" It's different if you're talking about cars or
high-value purchases, but everyday grocery
brands are subject to a different purchase
journey - and savvy brands - and retailers - will
be ready to highlight quality goods to shoppers, "
he said. " This also creates an opportunity for
St Pierre specifically; because we win out in
independent taste tests on taste, texture and
flavor, we understand that driving trial is key.
While inflation might create a more risk averse
consumer, perceived quality is so important. "
Inflation is being felt across the board, in every
sector, Wagstaff said. That creates two camps of
shoppers: those who spend a little extra knowing
they're getting a better quality and become
brand loyal; and those who don't spend the extra,
but don't have an experience that keeps them
coming back.
An omnichannel perspective
The keys to marketing and merchandising
premium products rests in having a strong
omnichannel strategy that centers on product
attributes and cooking usage, Moberly said.
As 56% of food shoppers say they are willing
to pay more for products that fit their lifestyle,
retailers must elevate premium product attributes
through effective in-store signage, along with
callouts on product display pages within the
digital shelf.
" Consumers are shopping across in-store and
online channels looking for full meal solutions,
making it imperative for retailers to elevate
not only their marketing strategies but their
merchandising strategies as well, " Moberly said.
" For instore, this includes cross-merchandising
items such as meat with marinades, seasonings
and fresh sides, promoting complete private
brand meal solutions. "
For online shoppers, retailers must strategically
incorporate complimentary items at the digital
shelf, providing an opportunity to cross-promote
premium purchases with fresh private brand
additions, he said.
Finally, the more retailers use their in-store
and online platforms inclusive of social media
channels to promote recipes, usage tips, and
full meal imagery, the further they can induce
premium purchases.
Within grocery fresh, prepared foods are
coming into focus with year-over-year unit
growth of 11% as of June, with heat-and-eat
options becoming a strong segment, according
to Daymon.
supermarketperimeter.com
OCTOBER 2022 - 13
75%
of consumers ranking
inflation as the most serious
economic problem
Nearly
70%
of consumers say private
brands are a better value
for their money
56%
of food shoppers say they are
willing to pay more for products
that fit their lifestyle
Deli prepared foods
year-over-year sales are up
11%
(Source: Daymon)
http://www.supermarketperimeter.com
Supermarket Perimeter - October 2022

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