Posts Tagged Costco

Riding the Popularity Bandwagon–The G-F Driver

Who could have imagined a year ago that Gluten-Free products would top the popularity charts. This is not a trend but a reality of marketing. G-F products, of course, are needed by those with celiac disease but have become a preferred choice for many other individuals who recognize how much better they feel when they eliminate the flours that cause distress. Grocers, restaurants, big chains, and even small cafes have figured out how they can capture some of this market.

The Bloomberg Businessweek issue for August 15-28 has a great cover shot for the “Popularity Issue” and inside awards its top spot to the Gluten-Free Diet which they say is being driven by those with celiac disease and the 15% of consumers who purchase these products and “help create a $2.6 billion market.” What has happened has occurred with an ease that often does not accompany most product rollouts which can be slow and focused on test markets. Now, big name manufacturers are vying for space alongside the stalwart G-F leaders such as Bob’s Red Mill and Udi’s. When you see 2 loaves of Rudi’s G-F multigrain bread at Costco you see a sea change, and a price drop. Let’s see, 2 loaves at the big box for about half the cost of a single one at the regular store!

The race is on.

More grocers are demonstrating their understanding of the growing numbers by integrating the G-F product line rather than isolating it into a small corner of the store. Sure shelves are often still marked with flip signs indicating a G-F product, but even that has somewhat lessened as consumers recognize the product labeling with the GF symbol. We’ve talked plenty about how obvious products are now quick to boast of their new popularity status. Lea & Perrin’s Worcestershire Sauce remains my best go-to example, but the Chex family should not get excluded from their big bold banners. Wait, now Rice Krispies has the bold banner.

If you think you’ve seen a lot of GF products at the grocers and been passed GF restaurant menus, you’ve barely scraped the surface. Who wouldn’t want to be part of this impressive marketing action?

Not a trend, but a lifestyle choice with a wide arena for traditional companies to make the jump into the G-F universe! Expect to see more such gotcha labels.

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Up, Up, and Away: Coffee and Everything Else

Time to start thinking about those pennies you’ve randomly tossed into the deli counter change dish. They will start to make a bigger difference when you tally your personal food costs. No matter how many times we’ve heard the expression, “food costs are going up,” we’ve seen the changes, but figured these would be short-term rises. Now the story is quite different. Everyone seems to be on the bandwagon announcing that food costs continue to spiral. Lots of finger-pointing about the whys, but the reality remains the same: Costs are up.

The USDA started the flood of announcements a few weeks ago. Today the UN’s food body chimed in on the seriousness of the escalation. Record highs being reported. Hardly need major groups to create headlines as we have little difficulty making those personal pronouncements within the confines of our own houses. Yet, there are some good news stories that deserve shout-outs.home_graph_1

About the same time frame as the USDA headliner, Wegmans said enough. As in enough: They will not raise prices through 2011 on the 40 most precious foods that all families need and use. YES, we applauded.

Today Costco reported its earnings and announced it would hold prices as long as possible before having to pass them on to the consumers. Does this mean we’ll need to build extra storage space to contain products that will inevitably spike?

No, I think a simple round of applause to both these companies and a heads-up to others. Join the price-stabilization train. Now.

Everyone needs help.

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A More Careful Fish Selection

Following on the heels of environmentally unfriendly containers, it’s time to have a good news story about a company that has taken the plunge. I’m talking Costco. They have decided to join the ranks of purveyors of socially acceptable fish. No longer will they sell those varieties that have been listed as overfished. They will instead continue to grow their farmed fish purveyor program and offer customers fish that meets the guidelines set forth by the World Wildlife Fund. Their further involvement with sustainability in the seafood arena will benefit us all.

The specifics are important. First of all they will stop selling (yes, first they have to finish their stock and commitment orders) the wild species they call at the greatest risk of being overfished. That list includes Atlantic cod and halibut, Chilean sea bass, halibut from Greenland, grouper, monkfish, orange roughy, redfish, shark, skates and rays, swordfish and bluefin tuna. They do not plan to reintroduce these fish into their lineup unless the sources are certified as sustainable by the Marine Stewardship Council (MSC). The Council identifies itself as “the world’s leading certification  and ecolabelling program for sustainable seafood.”image_small

Secondly, Costco has expanded its relationship with the World Wildlife Fund (WWF), a non-governmental organization that works closely on sustainable aquaculture issues. Costco has charged them with determining how well the Thailand-based companies that supply farmed shrimp are working to meet the defined standards for shrimp farming. That same approach is being studied with farmed Atlantic salmon. As any Costco shopper knows, Atlantic salmon is a majoone who visits a Costco knows is a major fish product for the company. Again Costco is working with suppliers and making certain that standards are being adhered.

What does this all mean for consumers? Maybe the first step is to applaud Costco’s decision (and other companies that are taking these bold steps) and follow that strategy into our own shopping, regardless of the marketplace. Similarly, when we dine out and find these overfished varietiess on menus, we need to question the establishment. Chefs have plenty of fish to work with that meet sustainability standards and can become beautiful center-of-the plate entrees.

Let’s applaud companies that have solid sustainability programs and likewise recognize restaurants that demonstrate responsible, sustainable performance.

We will all be better off with these actions!

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Private Label Trust v. Food Wars

It’s no surprise that Costco just reported blow-out earnings. Have you been there recently? The aisles are packed with shoppers stocking up on essential and non-essential goods. For the first time, the company reported it was moving to increasing its food offerings and expanding its private label, the Kirkland brand.kirklandnuts

Costco is one of those companies that exudes trust. When they make a change, consumers often just nod and go along. When a product is not to one’s liking, then the return line welcomes the customer and the product back. It’s that type of company, a consumer-friendly atmosphere, so when they say they plan to expand their food offerings, we say, bring them on. Consumer Reports just added to Costco’s accolades with positive remarks for multiple departments. The Kirkland label has been an impressive solution to deals that were harder for them to cut. Remember they had to play tough guy with Coca-Cola not too long ago and who wanted their products back on the shelves and bowed to pressure: Coke.

BTW, the July issue of Consumer Reports offers multiple shopping strategies. Saving money is still the preferred route.

As an aside to all this attention, food wars are kicking up. Wal-Mart decided it could get more play at the registers by increasing its price cuts (Rollbacks) on name brands to get more customers in the door. A few competitors responded immediately by matching Wal-Mart’s actions. No one wants to be left with high prices as consumers are still scrambling to find the best deals and prices.

Either approach: One winner–the consumer.

Smart shopping’s the buyword!

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Thanks, Costco and Coca-Cola

It wasn’t that long ago that Costco and Coke were at war. Costco pulled the brand until there was an improved pricing agreement, as in Coke needed to give Costco a better deal! That phase of a branding power war is over. Coke is back at Costco, and consumers have a new Coke product to cheer about!

I have heard plenty about the “Mexican Coca-Cola,” the non, high fructose corn syrup beverage. In other words, the original Coke, the one that had a unique taste without having to be sweetened up with all types of add-ons. I knew the product was available in many West Coast stores, but now it has taken the cross-country trek into the aisles of East Coast Costco stores. I’m not talking 6-paks or single liter bottles, but a case of 24 glass beauties!

As an added taste plus, the advantage of glass over plastic cannot be stressed enough. Freshness wins; no residual coating taste, no after-taste. That’s the beauty of glass containers!

Then there is the freshness factor as it applies to a product that goes back to its roots. People literally got excited when they saw my case in the basket. Checkers started a myriad of conversations which spilled over to customers in several lines. “Yea, yea, this is the real McCoy” was the consensus! I should point out that this product is not one of those in the bargain aisle. True taste does not come without a cost.

Guess what, they’re right. So if you are a Coke brand aficionado, then this is the way to go. You decide: High fructose corn syrup or sugar.IMG00684

Trust me. You’ll skip the others in favor of this more natural pleaser, if a soda can be called natural.

“Refresco” says it for me.

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Bye, Bye Hamburgers

burgersSad to see the all-American easy mainstay meal, the hamburger, disappear from the list of dinner possibilities: Grill nites or just hang-out why not have a burger nite! Simple answer: One more, maybe definitive story about the strong possibility of getting E.coli from ground meat. Just let me warn you: This investigative piece is not for the faint of heart!

Sure we could be butchers or grinders and take out our Cuisinarts and hope they were strong enough to wrestle a hefty piece of meat such as a chuck roast and grind it into a burger. That’s a big maybe. Or we could find a trusty, local butcher. Good luck on that, talk about a vanishing breed. Trust may be the bigger issue. While we’ve been reading labels on so many products and deciding whether to buy the 80-20 or 90-10 package, we’ve been ignoring the fearsome possibility of getting the ultimate bacterial infection with all its scary consequences.

What’s one to do? The US government site immediately refreshed its E.coli information link on its site. Sure we can manage the temperature part of avoiding the  scary consequence, but what do we know about meals we purchase or those we order in a restaurant? How comfortable are we about asking the necessary, detailed questions? Are we better off just moving away from the ground beef discussion? What about ground turkey or ground chicken?

In the lengthy, graphic New York Times piece, Costco seems to come out a winner. Another possible bright spot is Whole Foods with its policy about grinding the product fresh at each store. This is the type of information we need to feel safe. Then it is up to us to prepare it properly.

Cooked ground meat cannot sit around. Food safety demands strict adherence to temperature and holding guidelines. Yes, some of the onus is on us, but we need to know what we have. Manufacturers have to be honest about the process. The end result is far too scary. The burger may look good enough to eat; we just need to understand its history!

A veggie burger is gaining appeal!

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Saving Money the Old-Fashioned Way

The old-fashioned way: One penny at a time. It works and a grade-school mathematician can convincingly say it adds up.

Here’s a simple way to test the concept and put more money into the grocery bag: Buy some store brands instead of some national brands. According to a Consumer Reports blind taste test (October 2009 issue) of 29 food products, 23 store brands  tasted as good or better than the more expensive national brands. They found this to be true with Costco’s (Kirkland) Organic Salsa, Target’s Archer Farms Chewy Soft-Baked Cookies, and Wal-Mart’s Great Value Whipped Topping. These three store brands beat out Old El Paso, Pepperidge Farm, and Kraft respectively.

No need to be shy about trying the store brands– the savings can be impressive, and many grocery stores are confident in their in-house branding approach that they offer a money-back guarantee if customers are not pleased.

In another Consumers Reports study just released, they ranked and rated 18-high fiber cereals and found 7 distinct products noteworthy including Kirkland’s Signature Spiced Pecan Cereal (Costco) which cost 33 cents a serving and proved a flavorful fiber choice. Archer Farms (Target) High Fiber delivers 10 grams of fiber a serving, and Wal-Mart’s Great Value Raisin Bran is considered a strong choice for raisin bran purists.The others were all national brands: Kashi GoLean Crunchy, Kellogg’s Raisin Bran Extra, Post Shredded Wheat Spoon Size Wheat ‘n Bran, and Barbara’s Bakery Ultimate Organic. Cereal can be costly, but you should be able to find sales either in a store’s circular ad or part of the Sunday newspaper coupons. Now that you have the fiber list, you can clip or do online grocery coupon savings.

There’s money in these aisles. Especially when someone elseweg'sgrocery_large does the taste-test homework.

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I Love A Good Fight

It’s actually about time that grocers have taken off the gloves and decided to toss the barbs into an open ring. No more double and triple coupon challenges, they are onto the real thing: Lowering Prices. Yes, we’ve read about this type of strategy, but seldom experienced it. Seriously, what’s taken them so long?

It’s doubtful if shoppers will return to their anything goes routine anytime soon. Too many unanswered questions about income, health care, and overall cost of items: It’s still the economy. Even in the midst of increased at-home meal preparations, the focus remains on what is purchased. How much did it cost? Could you have gotten a store brand? Why are two products with identical ingredients so different in price? These are the issues driving consumers to find the lowest prices for the foods they want, and with the increase in store brands, some of this shopping strategy has become easier.

Look at Costco and its house-brand, Kirkland318459f. They’ve been strong contenders in private labeling for years and continue to expand the product line.

In the U.K., Brits are enjoying a real price war. Nothing like this has broken out to that extent yet in the U.S., but we do have multiple players making the same pitch: We have lowered prices on XXXX items (hopefully they mean more than 40 items)! Just this week Whole Foods continued its strong message that they are the go-to store for not just healthy foods, but foods that are reasonably priced. They added coupons to all their e-mail newsletters and have the Whole Deal Value Guide prominently displayed for shoppers to take advantage of immediate savings. They are also promoting “money-saving tips.” This is not the old Whole Foods. They heard. They’re onto something.

Safeway has new banner signs that proclaim they lowered prices on thousands of items. They also moved into personalized coupons, discounts on items you regularly purchase with savings automatically linked to your card. This is in response to Giant Foods earlier aggressive price-lowering strategy that proved successful.

What has taken grocers so long. Was their bubble one that projected things would be fine and everyone would be happy to live the good life again.

Not so fast. These cannot be temporary fixes. The situation has become a permanent lifestyle change. Listening does not end with tiny glimmers of hope.

Keep on lowering.

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Victory for This War

clubPackThe concept has come full circle, and a Mighty Circle it is! Remember when grocers scoffed at big box retailers/markets and said who needs a case of this or 15 rolls of toilet paper? Well, take a look around you, the case mentality has come to the grocer’s aisles and seems to have found a permanent home.

Grocers are saying “two can play this game.” Their logic is quite simple: Eliminate the big box discounters by playing their game of offering case value. Whatever it gets called, and commonly it seems to be “club pack/pak”, the consumer benefits handsomely from this type of turnaround. For those who want to limit their shopping trips (yes, gas is climbing way up there, again), they can postpone trips to the big discounters and use the same mentality to stock up at the grocers. At least that’s what grocers believe!

Most of the national brands have entered the coupon fray-field by doubling and tripling cents off, something not available at big boxers. The big guys like Costco understand the value of coupons and send out whole books of discounts, good for an approximate 4-week period. Some, like Sam’s Club, publish welcome ads in the newspapers (assuming people still buy newspapers) in the hopes of welcoming new members. 

Grocers, on the other hand, combine all the concepts to demonstrate the modern definition of one-stop shopping. The competition is good for all of us. Look at Wegmans, as you recall my favorite grocer. They now aggressively market savings with club packs, a sizable list of wines under $10, and price-cutting that does the math for you. (As in, if a two-pound bag of onions costs $1.69, that’s .85 a pound. Then the calorie info: 60 calories a cup and a large onion is 3 cups). Maybe they’ll find someone to accompany you down the aisles, and then you won’t have to think at all! 

They have large comparison shopping boards at the entrance and throughout the store that list 4-5 products and show how Wegmans beats the competition. Their newest strategy is the $6 meal–one entree and two sides–as in bbq chicken breast with roasted red potatoes and harvest vegetables, or…many options.

Some of the local farmers are starting to bring their product to market, and Wegmans has inked a number of deals. Locavores unite: It’s a shopping possibility.

All of this to convince us that we can live at one store; one that has morphed into a combo: Great retailer, smart discounter, great service and product, and a big boxer.

This is a match we win.

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Now We're Talking Good News

ciaobella_flash3Seems like the sweets are on the top of my radar. Yesterday it was donuts; today gelato. In my book, not just any gelato but Ciao Bella. The New York treat has made its way across the country and onto restaurant menus and in freezer aisles (Costco, Harris TeeterSafeway, and Whole Foods). YES.

What makes the gelatos and sorbets so delicious is the process (hand-made) and the intensity of  flavors. If it says espresso (triple), you’re talking about my favorite drink transformed into my favorite flavor. This is the real McCoy. Since a trip to Italy is off most agendas for this summer, we can just follow the Ciao Bella sampling tour where their Discover-Savor-Share 2009 travel mobile plans to hand out one million free samples of their favorite desserts. 
As long as you are on the East or West Coast, you may get a chance for this mouth-exploding taste sample. They started the tour-scoop promotion concept last year on the East Coast and managed to hand out 100,000 free scoops of gelato and sorbet. The cool part about their sample logic is customers get an individual serving in a fitted cup with the spoon tucked right under the lid. Saves time and demonstrates a practical approach to scooping.

Check the website for locations. The month of June has them moving North from North Carolina into southern Virginia. Plan ahead  as the promotion continues through September. If you can’t wait to greet the truck, then try out the pints or gelato bars at grocers or free-standing locations in New York City or California.

Let’s help them reach their one million scoop goal!

Ciao.

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