Posts Tagged grocery coupons

‘Tis that Time: Food Trend Outlook

The best part about early December articles is watching everyone trip over himself trying to figure out the “definite” food trends for the coming year. Today we look at two such lists, and then we’ll have plenty of time to revisit and watch. Maybe we should start with a startling fact: Eating out is now cheaper than cooking at home. Think about that a little and you’ll understand the issues facing all food purveyors. Food costs have skyrocketed, over 6%, but most restaurants are afraid to spike prices. They favor a little less food on the plate. Hey, not a problem, we have the obesity issue to contend with anyway. So watch your dollars and follow the trends.

According to Andrew Freeman, (Andrew Freeman & Co) a great food guru with a major hospitality background, this is the year of  the potato. No complaints from me as potatoes have been my friend for years. He says expect to see menus wrapped around the food such a:

–French Fry Menus: Choose Your Cut, Color, Sauce (like the French Fry Menu at Jasper’s Corner Tap & Kitchen in San Francisco)
–Mashers with Mix-ins
–Custom Cut Chips and You-Pick Dips

Or, Grilled Cheese, which he calls the next burger as in:

–Signature Sandwiches
–Gourmet Interpretations, Creative Variations, Old-Time Classics
–Artisan Ingredients (or Not), or:

Produce-ing Desserts, Vegetable Desserts

–Experimentation with Flavors
–Innovative Creations Combine Savory and Sweet

They, of course, have numerous additional ideas and let you look back at prior food trend lists to see how well they did!

Supermarket News approaches the food trend list from an entirely different perspective and lists the number 1 trend which will impact everything as food prices. They do not believe prices will lessen much as production costs continue to increase, but they see grocers coming up with clever ways to entice the consumer including bonus points getting used toward lay-away programs for bigger purchases as coupon use continues. They expect to see more grocers joining the “farm to fork” philosophy as food origin has become an important factor in purchasing. Likewise, they expect grocers to cater more to the largest population of shoppers, the baby boomers, 76 million of them, “will control 52% of the total $706 billion spend on groceries by 2015 – making them the largest food influencers and purchasers.”

Regardless of which approach you follow, that of a marketer or that of a purveyor, in looking at upcoming trends, be certain that food issues will continue to dominate headlines.

 

 

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2010: The Year of Baby Steps

For many people in the food industry, 2010 was a year of Maybes: Maybe the economy will improve, Maybe we can do better this year than last, Maybe..

Merriam-Webster Dictionary selects a word of the year each year, and “Austerity” headed this year’s list. “Pragmatic” came in at second place. Interesting choices since I believe that 2009 was in many ways a harder year for food and beverage survival; a year where we practiced austerity for the first time and became more pragmatic about our decisions.

This year was the follow-up season which may have truly separated the straphangers from those with a seat at the table. Many restaurants, long-standing restaurants, are no longer in business as we close out the books on the year. Whether the blame falls on the landlord who believes he has figured out a better rental arrangement or on the still slow nature of the business, hard to come out with a precise formula. Many businesses that had become dining landmarks are now headed for historic obliteration.Step+N'+Store+Stool+in+White

What made 2010 so difficult for many was that consumers had changed. After a frightful 2009, food shopping and dining out decisions were different. Consumers had become smarter and businesses had to adapt. Grocers who never ran specials were now tripping over themselves with coupons, weekly deals, and daily offers. Restaurants chimed in with their own promotions as happy hours returned to the scene–if you drink for cheap, maybe you’ll stay for dinner. That strategy worked for some. Half-price wine became a more steady fixture and one not solely limited to traditionally, slow Monday nights. Some higher-end restaurants even relaxed their corkage fees to entice guests to empty their specialty wines and buy a wonderful multi-course meal to help the wine shine!

As we look back, it’s relevant to study what worked and why it worked. Will it continue into 2011 or will the glimmers of improvement, such as greater retail holiday spending, mean that restaurants and grocers can eliminate the programs that worked and go back to their old ways? I hope not. I hope we are all smarter. Tomorrow we’ll look at some of the trends of the year and make a guess about what foods and drinks we’ll see in abundance in ’11.

It’s all about strategy and most prominently, survival strategy. One step at a time.

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Food Blues

On the positive side of “Food Blues,” we could be talking about the freshest crop of blueberries. (Yes, they are beautiful). Instead, we are looking at the latest reports that indicate consumers are not yet believing they are out of the woods on their finances. They exercise caution in their grocery shopping and their restaurant expenses.blueberry

Meal planning, according to the NPD Group study, will remain on the thrifty side. Consumers have learned how to make better meals with less and are not ready to jump from the calm ship and break out the foie gras. The study reports that consumers do not see their situation improving over the next 12 months and plan to continue strategies they employed during the earliest days of the Recession. This information is almost in direct contrast to several economic market indicators pointing in a more positive, upward trajectory.

Examples of thriftier behavior from the report include decreasing spending on groceries, using coupons for food and beverage items, and stocking up on foods when they are on sale. The list also includes shopping for less expensive brands and making use of online coupons.

These are all consumer behavioral strategies that grocers can address to make shopping a better, more positive experience. Matching coupons, doubling or tripling those from circulars, and offering good, solid sale prices on a large variety of products will keep customers loyal returnees. It sounds as if little has changed for the consumer no matter how hopeful everyone wants to remain.

Restaurants have a lot to learn from this report and from the Nielsen Company’s latest research. Some of these findings could spell doom for a number of restaurants that have been hanging on and waiting for customers to increase their dining out events and cash outlays. After surveying 7,500 alcohol beverage consumers, they found almost 60% reducing their trips to casual restaurants and a similar number reported they were going less frequently to more expensive restaurants (fine-dining). An additional find was that 47% said they frequent bars and clubs less often. This translates into changed behavior patterns across the age demographics. The report underlies the belief that consumers learned new ways of entertaining and continue to exhibit uncertainty about the extent of the recovery.

Another interesting tell-all concerns alcoholic beverage purchases. More than 75% of those interviewed said they have not changed their beverage purchases because of price, but 25% of those say they are making fewer purchases. So even in this category, consumers have adjusted their behavior, and they are more conscious of their decisions.

Yes, these reports do NOT put a smile on the face of anyone in the food and beverage universe. They give great pause and increase the likelihood of more promotions rather than assuming that the diner of yore, as in 2-3 years ago, is lining up to get in the door.

Free-wheeling dining and shopping has not returned, and it appears to be stuck in fear. Hopefully, someone is listening.

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Grocery Shopping: A Two-Tiered Approach

Just the sound of that phrase makes some people quiver, but there can be fun ways to fill the larder. After touring a new Whole Foods store, I now understand how the company survived so handsomely during this past, difficult year. They signed onto the sale and coupon philosophy and figured out how to communicate their new strategy. Customers no longer needed to quake at the mere thought of entering a store; instead, they have learned how to shop and what to buy with each visit.wholefoods

Basically, Whole Foods learned how to offer sizable price reductions in each of the major departments. For the consumer, the translation is quite simple: Buy strawberries when they are on sale; not when they are back to their old prices. A basic example. You can plan your menus easily around the sales. This week you’ll buy one type of fish and next week it may be a whole different flavor profile. This type of  shopping’s much easier: You buy the freshest foods with the biggest reductions and you leave the store a much wiser, healthier individual. Those are the products you want to plan your meals around. Nothing foreign about this concept. This is how chefs shop for restaurants. What looks good, what just came in, and what about the price point are considerations when they tour the markets.

At this new store, there was a product innovation that is sure to interest the curious and captivate the regulars. Some shoppers will continue to create their own salad/main course meal from the cold and hot selections which are sold by the pound, and then there are the newbies. Individuals who will want the $7.99 box with 3 compartments of items stuffed to the gilder-sterns as long as the lid closes: One price, one huge possibility!

The healthy focus has certainly helped drive their business as more consumers are focused on purchasing healthy foods for their families. Combine that strategy with the emphasis on finding producers of local foods, and you have a pretty good understanding of how the company has made such major strides across the grocery aisle.

Innovations are great as long as the price point stays in the center of the radar. Competition will remain strong, as at the other end of the spectrum is major competition in the form of Wal-Mart. Here’s a company that has made significant strides in its food line this year and just announced plans to continue to increase the depth of possibilities–they call it the aggressive Rollbacks program. We are talking about a major retailer that has reworked its aisles and departments to limit some selections in favor of increasing the overall breadth of food selections. This is where to shop for the basics that every household needs: It’s a win-win situation: You fill your house with great price-point savings on pantry essentials.

Everybody else in between plans to continue its coupon-driven enticements. The consumer has become a more savvy shopper after this past year of economic upheaval and has learned how to save shopping dollars. Markets cannot return to their old ways.

Shopping need not be Guerrilla warfare. I am more a believer than ever.

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I Like When YOU Listen–Thanks, Grocers

After a truly tough year fighting the economy, mounting bills, and the increased costs of  some basic foods, grocers have responded in a variety of ways. We’ve seen triple coupons, dollar-off opportunities with a minimal purchase, and aisles filled with signs shouting out “lower prices”. We’ve had deals, great deals, new deals, and you name it, but somehow we are still left with a few questions.

What’s the real deal? Why were prices so high in the first place? The honest answer is: Because they could be. People were more flush with money, they had jobs, bills were getting paid, and high grocery prices were an almost accepted fact of life. Now with all the additional coupons from grocers and manufacturers, we are in a different world. The worry is that economic signs are improving and grocers will return to their old ways.

First, you need to be a member. Membership loyalty cards, those pesky things that are all over your keychain, are often necessary to get the savings. Most chains let you type in your phone number rather than make you carry the 500-lb assortment of ways you are trying to save. Whether a club card, card saver, or whatever it’s calledeVic_logo, it is the modus operandi of the shopping universe.

Wegmans came up with a response to consumer anxiety this past Sunday when their senior vice president of consumer affairs Mary Ellen Burris turned her weekly column into a road map of good economic strategies. She recognizes they have seen changed buying habits, house-brand shopping, and greater focus on less expensive prepared foods. They stress they are committed to maintaining their prices and remain focused on how many items are less expensive now than they were in ’08.

A new volley was tossed out today, food circular Wednesday, as Giant Food introduced its new point-based savings plan: Each dollar is a point, 250 points is 5 % off a future order (800 points earns a 20% off reward). They call it the Holiday Reward Coupon of Your Choice.

The gloves are off. May these strategies serve as the model for other grocers as we are far from being out of the woods. The holiday’s are coming, and we all appreciate that beef, pork, chicken, bread and dairy are less expensive than they were.

We are different diners, shoppers, and cooks. We will not go back to those spendthrift, carefree days of accepting high prices. We need the incentives to continue, and the grocers to recognize that the early part of the decade exhibited behavior we no longer can afford to stomach.

Price spikes need to stay off the shelves.

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Bits and Bites

I love when the news focuses on ideas that get a second look. We comment about something and address its key issues, but when it gets further inspection, then we have accomplished a great deal.

Here’s a good one: The Connecticut Attorney General is investigating the Smart Choices program. This program received initial high praise, but after further inspection, there were questions. This is the product group that affixed so-called healthy nutrition information on packs giving certain foods the go-ahead. Foods like Froot Loops and mayonnaise roused the CT office. Yes.

How about all the attention on Starbucks and its high pricing policies. They came out of that tunnel and are now aggressively promoting the nationwide launch of their instant, yes, instant, paks of coffee. Via has already been positioned on the end caps at Costco. Expect big sales numbers for this product from that marriage: The Big Box and the Instant Darling.

Maybe the best news is the direction the government has taken in the realm of food safety. With one focused site we have half a chance of knowing what’s gone wrong within minutes of the first reports. No longer do we have to search for hours. foodsafetybasics_lgThey have food storage charts and food handling information: All pertinent data to insure food safety. As long as the site remains as it’s intended: A proactive information service, we will all be in a better place.

All the bits and bites come together with two final thoughts for now. The success of various cities’ restaurant weeks has spawned an offshoot: Delivery Week in New York City (Oct 19-31). Imagine other cities with strong neighborhood food delivery services will consider the concept. The price is certainly right for the appetizer, entree, and dessert: Lunch, $12.09; Dinner, $20.09.

Grocery stores continue to find strategies to keep prices in competitive balance as new markets open and challenge the old standbys. Grocery wars whether between Amazon and Wal-Mart or locally-based shops help consumers meet their budgets. Specials, double coupons, and affordable recipes need to continue.

Even on this the 4th straight day of dark, cold, gloomy, depressing rain, there are some positive newsworthy items to digest.

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The Smarter Grocery Store

It seems like we’ve been telling grocers that things have to change, and they have just realized we mean business, in every sense of the phrase. Prices were too high; deals were limited. Now we’re being inundated with mailings from every market within miles of our zip code telling us their prices have come down and whoa did we see the special offers!

These marketing changes are a direct result of what they’ve learned from surveys and studies. In a recent study fresh_salsait was found that consumers believe they have cut back effectively but still not enough. They plan to spend even less on groceries this coming year. Price remains the strongest determinant of a purchase. In a poll of over 6, 000 people, almost 40% said they spend less at the grocers than they did 12 months ago and almost 80% said they would happily switch products for a better price.

In a survey conducted by Wegmans, they learned that almost a third of respondents said they are preparing more meals at home and relying less on take-out and restaurant meals. To help shoppers figure out the actual cost per serving, the East Coast grocery chain added that information to their list of readily available recipes.

Whole Foods continues to add coupons and specials; concepts that were less prevalent a year ago. They’ve even added a section called “Three Under $3.” Pretty impressive.

More coupons, more specials, more discounts: Welcome to the grocer who plans to survive!

We’ll keep talking.

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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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Don't Forget Me

reusable_shopping_bagsYou can almost hear the shout–”me, too, me, too.” That’s the grocery stores trying to grab headlines and let us know that they have plenty to offer and plan to reward us for our patronage. It all started with frequent buyer clubs that give us a keycard to scan when we shop. That way stores know what we buy and can generate specific coupons to tailor savings to our needs. Invasive? Maybe once, now it’s insignificant. They know. Oops, sorry, meant to say that helps them “honor” their frequent shoppers and tell us how much we’ve saved.

Don’t mark it up so much and then you won’t talk to me about these fictitiously large savings numbers. That’s really not a complaint. Am happy to be a member and be a saver. Honestly.

Aggressive tactics are taking over. Harris Teeter knocks off $10 for  a minimum $50 purchases. Not so sure how long that’s going to last, but we call that 20% savings. Safeway occasionally gets in on that game but seems to prefer the coupon route. There was a new one today: Giant Food had a $1 doubler coupon–you know all those $1 off coupons that you find–now if you spend $15 this week, you can magically turn a $4 savings into $8–that should make people run out and buy more newspapers–this is an impressive insert. May be in response to Harris Teeter’s coupon tripling effort last week! Stores cannot afford to invent their own value game.

High-end grocers have been nibbling at the edges but Balducci’s decided to jump in with daily specials, e.g. Sunday, 1/2 price bagels. They even put a toe in the water with 5% off coupons each week this month. Hey, it’s not 20%, I get it, but I recognize that no one wants to be left out of the discount game.

As with restaurants, many of these discounts are limited to “members.”

Sign up and save.

You’ve got little to lose, they already know all about you!

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