Category: Supermarkets & Hypermarkets

Dive Brief:

• Kroger posted $33.9 billion in sales during the second quarter, a level that was essentially flat compared with the same period in 2023, the grocer reported Thursday. Identical sales growth excluding fuel came in at 1%.
• The company recorded a profit during Q2 after generating a loss during the second quarter of 2023 stemming in part from an opioid settlement. Kroger said it now expects same-store sales growth for 2024 to fall in the range of 0.75% to 1.75%, up from its previous guidance of 0.25% to 1.75%
• The earnings report likely represents the final public look at Kroger’s financial performance before a federal judge rules on the Federal Trade Commission’s bid to block the company’s planned merger with Albertsons.

Dive Insight:

Kroger made the case in its earnings release that its ongoing efforts to lower prices are propelling a virtuous cycle that helps shoppers save money while also enabling investors to make a profit. Reducing costs for consumers helps the company improve efficiency while also boosting its alternative profit businesses, which rely on data and traffic from its retail operations, according to the grocer.

 “This flywheel enables Kroger to deliver exceptional value for customers and investing in our associates, and by doing so, we are well-positioned to generate attractive and sustainable returns for shareholders,” Chairman and CEO Rodney McMullen said in a statement.

The company has presented its goal of bringing down costs for shoppers as a central tenet of the merger plan, and McMullen reiterated that point on Thursday as he presented an air of confidence about the company’s ability to see the embattled transaction through to completion. Kroger and Albertsons have been facing off against regulators since late August in a trial expected to wrap up in the coming days.

“As the preliminary injunction trial with the FTC nears its conclusion, we are confident in the facts and the strengths of our position,” McMullen said Thursday during an earnings call. “As I have said before, we remain committed to closing the merger, because it will provide meaningful and measurable benefits for customers, associates and communities across the country, and we look forward to bringing these commitments to life.”

McMullen also nodded during the call to the possibility that the judge could grant the FTC’s request for an order to halt the merger. “Regardless of the outcome of the trial, Kroger is operating from a position of strength, and we are optimistic about our future. Our business is more diverse than ever, and our value creation model provides us with multiple ways to drive sustainable growth,” he said.

Kroger has seen shoppers become tighter with their spending in recent months, and the company has responded by taking steps to keep prices down, McMullen said. Customers have been buying lower-cost cuts of meat and concentrating more on essential goods as they struggle to manage their budgets, he noted.

Revising the lower end of its identical sales guidance underscores the strength Kroger feels it has in reaching price-conscious shoppers. Over 90% of households that made purchases from Kroger during Q2 bought private label products, McMullen said. The grocer added 223 new private label items to its assortment during the quarter, in part by expanding its Smart Way line of budget-priced products, according to the earnings release.

While Kroger’s quarterly sales barely budged year over year and same-store sales moved up only incrementally, the company was able to bounce back from the earnings shortfall it posted during the second quarter of 2023. During that period, the company took a $1.4 billion charge related to opioid claims and dealt with the impact of its decision to stop working with pharmacy benefits manager Express Scripts. 

Kroger brought in an operating profit of $815 million during its latest quarter, which ended Aug. 17, compared with a $479 million quarterly loss a year ago.

Kroger’s e-commerce sales rose 11% during Q2, led by 17% growth in delivery, Interim CFO Todd Foley told investors. Pickup sales grew 10%, he said. The company has used artificial intelligence to improve its ability to fulfill online orders, which has helped reduce costs, Foley added.

SHELTON, CONN. — Inline Plastics has rolled out two new Safe-T-Fresh Rounds featuring the line’s tamper evident design.

Along with tamper protection, the design includes a leak resistant seal and anti-migration lids. The rounds also have rigid stacking rails for more stability and better use of shelf space, the company said.

The platters are available as 54-ounce and 104-ounce rounds with four compartments around a central dip holder. 

“These platters are space-saving, sales-boosting superstars that will have your consumers coming back for more,” Inline Plastics said. “These aren’t just any platters — they’re culinary canvases designed to showcase and secure contents, keeping appetizing spreads party-perfect.”

Dive Brief:

• Online grocery prices dropped by nearly 4% in August compared with the previous month, according to data released Tuesday by Adobe Analytics.
• Grocery e-commerce prices were up last month by 0.5% year over year, Adobe said.
• Adobe’s figures come as annual grocery inflation dropped below 1% in August to its lowest point in more than three years.

Dive Insight:

The 3.7% monthly decline in online grocery prices Adobe recorded last month through its Digital Price Index was the largest drop in that metric since the company started monitoring e-commerce prices in 2014. By comparison, the second-biggest month-over-month drop in online grocery prices Adobe recorded was in July 2019, when prices moved down by 1.8%.

On an annual basis, online grocery prices were up modestly in August, compared with a more than 4% year-over-year increase in July and a spike of over 14% in September 2022, when inflation was surging, according to Adobe.

Overall, prices for goods sold online have declined on an annual basis for 24 months in a row, with a 4.4% drop coming in August, Adobe said.

Adobe’s data about online prices reflects an analysis by the company of more than 100 million SKUs across 18 categories, which include books, computers, toys and office supplies in addition to groceries. Adobe’s research reflects the U.S. Bureau of Labor Statistics’ Consumer Price Index.

The BLS said Wednesday that food-at-home prices were up by 0.9% in August compared with the same period in 2023. By comparison, grocery prices saw a 1.1% year-over-year increase in July. Grocery inflation last came in below 1% in June 2021, when overall inflation was en route to the four-decade high it recorded in June 2022. Grocery inflation was flat on a monthly basis in August, the BLS reported.

Overall inflation came in at an annual rate of 2.5% in August, down from a 2.9% increase in July, the BLS said.

CHICAGO — Sixty-seven percent of US adults and 76% of US consumers younger than 18 play video games, according to the Entertainment Software Association, Washington, and many identify as “esport” athletes or gamers. While product developers have long recognized the nutritional needs of those who compete in physical sports differ from the average person, esport players also have unique nutritional needs.

For example, they need to stay focused and energized to enhance performance. Satiation assists with staying online for long periods of time, and proper hydration, along with such nutrients as lutein, zeaxanthin and omega-3 fatty acids, keeps eyes healthy.  

“Gaming is massive and it’s only getting bigger,” according to Jutta Jakob, head of consumer insights at Newzoo, an Amsterdam-based market researcher. “It is one of the world’s most popular pastimes, and consumers are engaging with games in more ways than ever before.”

Some food and beverage companies are recognizing the size of the esports market and developing products for gamers’ unique nutritional needs.

Researchers in sports nutrition at the University of Pittsburgh Medical Center (UPMC), Pittsburgh, Pa., recommend esports athletes focus on a lean and high-protein diet with lots of fruits and vegetables. They should avoid processed carbohydrates (simple carbohydrates such as candy and soda) and even heavy carbohydrates such as pasta and potatoes.

Esports athletes also should incorporate omega 3s, such as fatty fish, nuts and seeds, into their diet for the perceived brain health benefits, according to UPMC. It’s also important to maintain good electrolyte levels, which impact coordination and muscle contractions. Potassium and magnesium, often found in nuts, fruits and vegetables, play a role in reflexes, coordination and muscle function.

While caffeine may be considered a go-to source for mental alertness, too much caffeine can have opposite effects of jitters, overstimulation and delayed reaction time. When an esports athlete is playing a game for hours, it is better to have stable and sustained energy throughout rather than a simple sugar- or caffeine-induced peak followed by a crash, according to UPMC.

“Dynamine, also known as methylliberine, is a purine alkaloid that is found naturally in botanicals like coffee beans and green tea,” said Jaime Underwood, co-owner, Edible Chemistry Consulting, Schaumburg, Ill. “It is a nootropic stimulant that acts like caffeine without the crash and provides longer-term sustained focus. Dynamine can help gamers maintain high levels of focus and concentration through long gaming sessions.”

L-theanine is an amino acid found in green tea and some mushrooms. It is associated with boosting mental clarity and alertness, and, at the same time, keeping you calm.  

“L-theanine evens the effects of caffeine by reducing the overstimulation of neurons,” Underwood said. “In addition to helping control the jitters and anxiety that can come with too much caffeine consumption, L-theanine also helps with relaxation, concentration and feelings of anxiety during high-stress situations.”

She also recommends esports athletes include ashwagandha in their diet.

“Ashwagandha contains compounds called withanolides,” Underwood said. “These compounds are steroidal lactones that have neuroprotective properties against oxidative stress, inflammation and support cognitive function. Withanolides work by reducing cortisol in the body. Reducing cortisol can reduce stress, improve mental focus and clarity and improve mental endurance. These properties can be beneficial for gamers during long sessions.”

Protein, specifically dairy proteins, is gaining traction in the esports food and beverage space. A study on esports athletes published in the May 2023 issue of Frontiers in Nutrition showed that sufficient protein intake is associated with improved cognitive performance in gaming.

New York-based G Fuel jumped on it. As the company’s name suggests, it is focused on providing fuel for gamers. Its most recent product – G FUEL Energy + Protein Formula – is a zero-sugar mix that combines 140 mgs of caffeine with 15 grams of whey protein. The powder formula mixes with the consumer’s preferred milk choice.

“The combination of caffeine from coffee and premium whey protein is a potent way to initiate thermogenesis, effectively turning up your metabolic engine to burn more calories,” said Bryan Crowley, chief executive officer. “Plus, protein has been shown to promote satiety, have minimal effect on blood sugar and improve cognitive functions such as attention and memory.”   

Arla Foods Ingredients, Denmark, has launched a high-protein concept for gamers who want to improve their nutrition. Progamer is a ready-to-drink solution formulated to meet the needs of esports enthusiasts seeking benefits for their health as well as gaming performance. The concept features energy-boosting ingredients along with a specialty whey protein isolate that is clear, provides a refreshing taste and is high in essential and branched-chain amino acids.

“There’s a stereotype of gamers binging on unhealthy snacks and guzzling down energy drinks, but a new, nutrition-focused generation is emerging,” said Cido Silveira, marketing and business development manager at Arla Food Ingredients-South America. “They want to maintain their energy and concentration levels over marathon sessions, but they also want the many benefits that high-protein products offer.”

 A 310-ml can of the Progamer beverage prototype features 15 grams of protein, along with taurine, magnesium, zinc, caffeine and vitamins A, B3, B6 and B12 to support concentration and vision.

In the US, the Milk Processor Education Program (MilkPEP), Washington, which is funded by the nation’s milk processors and focused on educating consumers and increasing the consumption of fluid milk, is working to get milk marketers to integrate milk into the gaming space as the “performance drink of gamers,” especially with younger consumers. Milk consumption may be challenged as youth gain more freedom to choose their own beverages. By reaching them where they are, producers and processors hope milk can stay top of mind and remind gamers of the unique benefits of milk in a way that resonates with their interests and daily activities.

“Milk is the ultimate gaming beverage, providing the nutritional foundation for optimal gaming performance with 13 essential nutrients, including high-quality protein, calcium, zinc, selenium and vitamins B12 and D,” according to MilkPEP. “These nutrients are important for brain health and can help support focus, plus protein and B vitamins help provide sustained energy during long gaming sessions. Milk’s electrolytes also help gamers stay hydrated, even better than water.”

Dive Brief:

• Amazon announced Tuesday three updates to its Amazon Fresh brand, including the launch of Amazon Saver, a new value-focused private label line, and more discounts for Prime members shopping in-store and online. 
• The grocer also revamped its online storefront to make navigating and accessing features like repeat items and recurring reservations easier. 
• These moves are the latest in a slew of updates Amazon has made to its grocery operations — particularly Amazon Fresh — over the past year.

Dive Insight:

Amazon’s newly launched “no-frills” private label line along with its expanded Prime savings opportunities highlight the company’s efforts to be an affordable grocery shopping destination. 

Amazon Saver includes items aimed at helping “grocery budgets go further,” according to the announcement, and includes crackers, cookies, canned fruit, condiments and other grocery essentials. Most items are priced under $5 and Prime members can get an additional 10% off. 

Amazon started the rollout of Amazon Saver with several products and plans to add more than 100 additional items to the brand over time, the press release noted, but did not specify a timeline. 

Amazon also expanded Prime savings to more than 3,000 grocery items sold in-store and online at Amazon Fresh. 

The Prime discounts include: 

• Up to 50% off a weekly rotation of eight to 15 grocery items, including fresh produce, proteins and pantry staples.
• 25% off over 1,200 rotating Prime-exclusive grocery and household items. 
• 10% off all Amazon private brands, including Aplenty, Amazon Fresh, Amazon Kitchen, 365 Whole Foods Market, Happy Belly and Amazon Saver. 

Along with bolstering its ways for customers to save, Amazon Fresh also debuted a simplified online storefront that highlights convenient shopping features.

The newly revamped online marketplace makes it easier for shoppers to use its repeat items feature, which allows customers to select their frequently purchased items to get automatically added to their carts, as well as the recurring reservations tool that enables shoppers to set their preferred day and time windows for weekly grocery pickup and delivery. 

Amazon also created “intuitive shopping zones” that group products by themes, from exclusive Prime deals to seasonal favorites. The grocer also has dedicated digital aisles for grocery items by category. 

Throughout 2024, Amazon has worked to make its grocery offerings stand out, focusing primarily on affordability. The company debuted two new grocery subscriptions for Prime members and customers using EBT this year, with the monthly subscription option focused on “flexibility and lower upfront costs” and the annual plan offering “the best savings,” according to Amazon.

Spooky season is haunting the summer months. As we slowly transition from the heat of the current season to the cooling of the next one, people are showing their readiness for Halloween. This early preparation is known as ‘summerween’.

Yelp finds that consumers are already planning for Halloween festivities, with searches for popular costume chain Spirit Halloween up 83 percent, and searches for Halloween events up 130 percent, corn mazes up 30 percent and pumpkin patch up 24 percent.

Last month, we saw the pumpkin spice latte debut earlier than ever, and now people are planning their costumes months in advance and filling their calendars with Halloween activities like watching the newly-release Beetlejuice Beetlejuice in theaters.

This unofficial holiday season has inevitably led to an increase in spending. According to the National Retail Federation (NRF)’s research, last year’s total Halloween spending was expected to reach a record $12.2 billion, exceeding 2022’s record of $10.6 billion.

In 2024, the trend has really taken off in popularity thanks to platforms such as TikTok and Instagram. Retailers can look to take advantage by introducing limited time offers (LTOs) earlier than ever.

Another trend in the food and beverage world this month is multi-colored matcha. From orange matcha to blueberry matcha, vibrant hues are the latest craze for tea lovers. Yelp data shows combinations such as orange matcha (595 percent), strawberry matcha (240 percent) and blueberry matcha (176 percent) are heavily on the rise.

Target didn’t always play music, and Georganne Bender remembers the day that changed at her local store when it reopened following a remodel.

When the music came on, “it was night and day. It was a more comfortable feeling. … It changed the atmosphere,” she said.

A retail store without music is like a scary movie with the music turned off, said Bender, who is a retail consultant: “It doesn’t feel as good or as scary or as impactful.”

Music might be in the background in grocery stores, but it’s far from an afterthought. The music and messaging customers hear are part of how groceries establish and solidify their brands and encourage sales, sources said. With increasing interest in retail media, grocers are figuring out how to add in-store messaging to the mix.

Customers have high expectations for in-store audio. The best playlists are even getting attention on social media, where influencers say grocery stores are the hottest club in town, with only a hint of irony. Or show up on Spotify or YouTube, where customers upload playlists from local supermarkets. 

Sources weighed in on how grocers can select the right music for customers and determine the appropriate mix of marketing and music. 

The perfect playlist

Music can help set the tone for a shopping experience, grocers say, and the playlist should change based on who your audience is and the vibe of the store.

Customers at Heritage Grocers Group stores hear music based on what’s popular in that region and with the grocers’ mainly Hispanic customers. The group’s store banners include Tony’s Fresh Market and Cardenas Markets. 

“Although we’re 115 locations, we do believe in that whole local approach,” said Adam Salgado, Heritage’s CMO. “Our customers, although mostly Hispanic, they vary by location and region. So perhaps in Nevada, where there’s more of a Central American and Caribbean presence, there’s a little more salsa and more Merengue playlists.” 

“If you look at the heart of NorCal, where there’s the farm growers and the pickers, et cetera, that’s more regional Mexican music, so you may go in, and you may be hearing Mariachi music,” Salgado continued. “Tony’s in Illinois is a little bit more English-speaking forward. So, probably a little bit of top 40 hits.”

In general, grocers can’t go wrong with classic music from a few decades back, Bender said. And don’t discount disco. “We like to say disco is the sound of money,” she said. 

Albertsons considers dayparts when creating store playlists, said Angela Moore, the grocer’s director of sales, planning, and business integration. “Music during the day tends to be more mellow, whereas music at night is modified to be more upbeat,” she said. 

When SiriusXM starts working with a brand, Radhika Giri, SVP of emerging business, begins with a survey to understand the environment a retailer wants to provide for their customers.

“Could a high-tempo audio increase the speed at which people shop in the store when there is a lot of traffic in the store?” she said. “Or are there certain times of the day they want to have folks meander around and walk the aisles of the store?” That might call for mellower music. 

When creating a brand’s playlist, SiriusXM, which works with retailers like ShopRite, considers the weather, time of day and what’s on display. For example, Giri said Christmas music should “align” with when a store sets up its holiday displays.

Some grocers have also begun to recognize that some customers react negatively to music and other in-store noises and have implemented sensory-friendly hours.  At New Seasons Market, a chain in the Pacific Northwest, stores refrain from making announcements and playing music during sensory-friendly hours, and they reduce the volume of walkie-talkies. At Walmart, in-store TVs are turned off, and when available, lights are lowered during sensory-friendly hours. 

While music tastes differ and there are plenty of companies to work with to create playlists and other audio options for grocers, grocers and industry experts agreed on one thing — the importance of licensing music. Because of laws that protect artists, retailers can be fined for playing copyrighted music without permission. 

Mixing messaging with music

As retail media becomes increasingly important to grocers’ bottom lines, in-store audio has become another way to communicate ads.

RockBot, which works with retailers like Walmart, aims to provide in-store audio that combines music with marketing. 

“We have a full production team that can both advise on the scripting and create the scripting of messaging and do end-to-end audio production, such that we would work with that grocers marketing team,” said Jon Cassell, COO of RockBot.

Cassell views audio as part of a larger in-store retail media solution from grocers, which includes digital signage and in-store TV screens, which RockBot also offers retailers. 

Albertsons also offers in-store audio marketing options to vendors and brands as part of their omnichannel promotional packages. The grocer is part of Stingray’s Audio Advertising Network, which “enables us to secure incremental support from national brands,” Moore said.

Stingray also helps schedule audio messaging for Albertsons. “We strive to have two to three songs play before an ad and try not to have two ads running back-to-back if possible. On average, we have 50 minutes of music and 10 minutes of messages per hour,” Moore said.

Audio can reach employees, too

Music and messaging can also be an important way to build company culture. Employees are an “often overlooked audience for in-store media, music included,” Cassell said. 

At New Season, each store’s operations team chooses the music. “This musical independence is very much a part of the New Seasons Market culture,” said Amy Wolf, the company’s director of operations.

Consider how often songs are replayed, and give employees the ability to increase the volume of music when the store is closed and employees are restocking. These are great ways to use audio to benefit employees, Cassell said. Audio announcements, like highlighting an employee’s great work over the loudspeaker, can foster comradery. 

“Employees are working eight hours — whereas a shopper might be there for a 15-minute, 30-minute or 45-minute experience. They’re sort of living their life in this environment. And the employees play a huge role in the impact on the customer,” Cassell said. “And so even incrementally changing how your entire in-store workforce feels on a day-to-day basis makes a huge difference.”

Mondelez International sees cakes and pastries and baked snacks as key categories for growth and potential acquisitions, top executives said at the Barclays Global Consumer Staples Conference in Boston.

Dirk Van de Put, chairman and chief executive officer, told investors in a Sept. 4 session at the event that Mondelez’s strong market share in the chocolate and biscuit categories — and its recent acquisitions in the baked snacks arena — offer a springboard for expansion into soft baked treats like cakes and pastries.

“If you imagine the biscuit aisle, which is probably crackers and sweet biscuits in Europe, particularly a little bit less in the US, across from that aisle, you will find a whole space with softer offerings — cakes and pastries, basically,” Van de Put said. “It’s a natural extension of the biscuits space. It’s a space that’s very fragmented. It’s about an $80 billion market globally, slightly smaller but not a lot than chocolate and biscuits. But in certain markets, like China, where chocolate is $4 billion and biscuits is $8 billion, cakes and pastries is a $30 billion market.”

Offerings in the cakes and pastries segment are “sometimes quite basic products,” presenting expansion opportunities for Mondelez’s chocolate and biscuit brands, said Van de Put.  

“For us to come in with high-value brands with innovations that premiumize that category gives us the right to play,” he said. “So we’re quite excited. It’s a category that’s growing well in line with the biscuit category globally, a higher net revenue per kilo than biscuits. These are all the reasons why we like this space.”

As an example, Van de Put cited Mondelez’s January 2022 acquisition of Chipita Global SA, described at the time as a “high-growth leader” in the Central and Eastern European croissant and baked snack markets. Mondelez noted that Chipita offers expansion possibilities for its Cadbury and Milka chocolate brands in croissants and 7Days packaged croissants and bake rolls brand in baked snacks.

“It’s largely a packaged croissant,” he said of Chipita’s offering. “It’s more of a meal replacement snack, a mid-morning snack with a coffee, at an acceptable price point, (with) very high penetration in middle- and lower-class consumers. The opportunity there is to innovate with some of our chocolate brands, have a higher distribution in the existing countries and then extend worldwide. We’re testing several countries around the world. But even before we bought the company, they were already having success in Mexico, Malaysia and Saudi Arabia, and they’re doing well in India. We see this as an item that could go worldwide.”

Mondelez’s April 2020 acquisition of Give & Go, a North American maker of sweet baked foods, including the brands two-bite (brownies) and Create-A-Treat (cookie and gingerbread decorating kits), also plays in a promising growth space — the in-store bakery, said Van de Put. US and European in-store bakeries have been shifting to “freeze-and-thaw” models in which finished cakes and pastries are shipped frozen to stores, thawed during transport and presented fresh to consumers in the bakery department, he explained.

“That is very interesting for the retailer, because if they have to make it in-store, that has a lot of labor related to it, a lot of waste,” Van de Put said. “So we see a shift gradually over time toward that freeze-and-thaw approach. Give & Go, the company that we bought, was about a $400 million company four years ago. It’s already a $700 million company now. It’s the biggest player in this space in North America. We’re the same thing in croissants, brownies, biscuits and so on. It’s what you find in the bakery space.”

Mondelez already has been branching into the in-store bakery area via extensions of its popular packaged snack brands, such as Oreo cupcakes and muffins.

“That is a high-value-added, high-net-revenue-per-kilo segment that spikes the interest of the retailers,” Van de Put said. “We’ve started to bring in our brands, Oreo and so on. We think that’s going to be a development space globally in cakes and pastries.”

Eyes open on the acquisition front

Luca Zaramella, chief financial officer, said at the conference that Mondelez would consider acquisition opportunities in markets where it’s at-scale by adding high-potential assets and in markets where it could boost scale by building out its brands. He cited the company’s April 2022 purchase of the Ricolino candy and confections business and its August 2022 acquisition of energy and snack bar maker Clif & Co.

“We like mostly bolt-on acquisitions of the likes we have done in the last few years, if you think about Clif, Ricolino, Give & Go,” Zaramella said. “The way we look at this is, in markets where we don’t have enough scale, we are not necessarily obsessed with acquiring biscuits, chocolate or baked snacks. In the case of Ricolino, for instance, it was a presence in the candy sector. But again, that would allow us to go and distribute Oreo and to make Oreo much bigger in Mexico. So, in these markets where we don’t have enough scale, we are looking at our core categories, but not necessarily. We are looking at adding scale and making sure that we can get revenue synergies to our core categories.

“In markets where we are at scale, we are looking for assets that are chocolate, biscuits, and importantly, in cakes and pastry. We keep on being very excited about cakes and pastry. It is a massive category. It is a category that grows very fast. It is a category that allows branded products that we have in our portfolio to really thrive. So that’s really the focus.”

Zaramella also pointed to snack bars as a growth opportunity, but likely less so on the acquisition front given its purchases of refrigerated nutrition bar brand Perfect Snacks in July 2019 and then Clif three years later.

“As a category, we are looking at snack bars,” he said. “At this point in time, between what we acquired through Clif and what we have with other brands like Grenade and Perfect Snacks, I think we have, in our set of brands, enough platforms that we could roll out geographically and expand, given that the category is nascent in many places. But it is still quite a big opportunity in our eyes.”

Grocery distributors and food manufacturers have their processes down to a science. But like any good scientist, they also know it’s crucial to keep improving and make their processes even more effective. Every pallet touch point is important, as is every square foot of space in a facility and, above all, the well-being of every employee.

This is why manufacturers, distributors and retailers must evaluate their equipment choices with a critical eye. “It can be tough to make a change from your last buying cycle, or even your last two or three buying cycles,” says Kurt Spyke, director of national accounts and strategic product for Big Joe Forklifts. “But operators and managers know their day-to-day challenges, and with the right partnerships and equipment, they can meet those challenges and do their jobs even better.” 

Food industry leaders who value continuous improvement should take a closer look at Class 3 walkie equipment for their facilities. These walk-behind vehicles improve multiple business functions, and while they may not always seem like the obvious solution, what you don’t know may surprise you.

Class 3 walkies increase operational efficiency

Vehicle downtime is a significant issue for grocery distributors, food manufacturers, and any warehouse moving goods from place to place. Whether it’s a forklift, motorized cart or anything in between, vehicles need to remain in service with minimal maintenance so operations run efficiently. This is where Class 3 walk-behind vehicles have a distinct advantage over many forklifts. Class 3 models such as Big Joe’s PDSR are powered by a lithium-ion battery, which outperforms vehicles powered by combustion.

“Few things have changed the material handling industry more than lithium-ion batteries,” says Spyke. “Big Joe’s Class 3 products outperform gas powered vehicles, as they require little to no maintenance, and their cost and charging time have come down now that the technology has matured.”

Not only do battery-powered walkies stay in operation longer, they also increase the available space in a facility. “You’re literally buying back real estate because you no longer need eyewash, washdown or safety areas that are required for lead-acid battery users,” Spyke explains. Class 3 walkies operate longer, have fewer components and make better use of space, meaning they are extremely efficient in any warehouse setting.

Walk-behind vehicles save money

Those efficiencies translate to cost savings, as well. Battery-powered vehicles, of course, save on fuel, but they also have lower maintenance costs by the nature of their long-lasting batteries. “Imagine a pie chart showing the ownership cost of a vehicle — 80% of the cost is parts and labor maintenance,” says Spyke. “

These savings are particularly valuable for small and midsized locations where a Class 1 forklift is unnecessarily large and expensive. Class 3 walk-behinds provide the same picking and stacking capabilities, but with a smaller footprint. The PDSR, for example, features a pantograph mechanism for lifting and lowering products, and it can reach up to 189 inches in height. With standard power steering it’s easy to maneuver and less costly than a larger vehicle with the same functions. 

Class 3 vehicles solve labor challenges

Another crucial advantage of a Class 3 walkie is that these vehicles do not require operator certifications. Even new employees can quickly be trained to operate these vehicles safely. As labor shortages persist in the grocery and manufacturing sectors, walk-behind stackers like the PDSR or Big Joe CB 30/35 can enhance warehouse productivity, even when certified forklift operators aren’t available.

These battery-powered walk-behind vehicles also create a safe environment for workers because they move at lower speeds and have no particulate emissions from fumes or exhaust creating a cleaner environment. As midsized coffee roaster Baronet Coffee found, these vehicles provide safety and efficiency in a 50,000-square-foot facility, and since they’re easy to learn to operate, most employees can run them. 

Operable in small spaces yet able to reach high, side shift and maneuver heavy loads, Class 3 walk-behinds offer the best of both worlds — heavy-duty capability plus simple, safe operations.

Do what you do — but better than before

In an industry where margins are tight, labor is constrained and failure is not an option, operators and managers must explore all available solutions to find the right one for their business. By reducing downtime and maintenance costs while increasing facility space usage and workforce capabilities, Class 3 walk-behind vehicles tackle multiple challenges facing the food industry. “These vehicles are like a Swiss army knife for moving product,” Spyke says. They allow industry leaders to keep doing their jobs but to do them even better.
Learn more about Big Joe’s Class 3 walk-behind solutions for your operation

When it comes to technology and consumers, retail giant Albertsons Companies is focused on providing its shoppers with connected, digital experiences that align with the company’s purpose to inspire well-being and bring people together around food, according to a spokesperson.

“The company’s mobile app is one of the best examples of how we’re using technology to create a fast and easy digital shopping experience.”

Albertsons was voted the ‘People’s Voice’ winner for best shopping and retail app in the 28th annual Webby Awards earlier this year.

The app has more than 10 million active visitors each month and boasts a 4.8 rating in the app store, according to the spokesperson.

Features of the Albertsons app include:

Shoppable Meal Plans and Recipes Tool

Designed to provide customers with culinary inspiration throughout the week while saving time and money, the meal plan feature includes a budget tracker, an expanded library of more than 9,000 exclusive recipes, shoppable ingredient lists and hands-free cooking mode with step-by-step timer. The tool also boasts an artificial intelligence-powered “Scan Your Own Recipe” feature that allows customers to snap a photo with their phone of grandma’s handwritten, not-so-secret recipe, for instance, and transforms it into a digital version saved in the app. Recipes are instantly turned into shoppable ingredients and are added to shoppers’ carts for quick, convenient checkout.

In-Store Mode

This feature acts as a personalized remote control for the store, providing customers with quick access to store-specific deals, aisle locations, wayfinding and more, directly from their smartphones.

Schedule and Save

A subscription service that allows customers to automate their weekly grocery shopping, ensuring they never run out of their favorite items.

Personalization

Features like ‘Buy it again,’ ‘Don’t forget to add’ and ‘Quick start cart’ offer a tailored shopping experience, making it easier for customers to repurchase their favorites and discover new items.

Albertsons has leveraged other technologies to make shopping easier than ever, according to the spokesperson.

One of them, Flash 30-Minute Grocery Pickup and Delivery, allows customers to receive their DriveUp & Go™ and delivery orders in as little as 30 minutes.

Available at more than 2,000 Albertsons Cos. locations through its websites and mobile apps, shoppers can select up to 35 of their favorite items for either Flash pickup or for delivery.

In addition, the retailer’s Simplified for U Loyalty Program has been revamped. Albertsons’ 38 million loyalty members now enjoy a single points-based system, double the time to earn points and a new automatic cash off option for more convenient savings, among other benefits.

“The program retains all the benefits customers love with exciting enhancements to celebrate their loyalty and create customers for life,” according to the spokesperson.

Supermarket consumer insights:

• 2 in 10 shoppers purchase groceries online ‘often’ or ‘always’
• Another 25% shop online half the time
• Two-thirds of online grocery shoppers are driven by time saving and effort, 52% by convenience, and 1/3 report it’s “easier to find items I need”
• 56% of online shoppers find online offers/promotions/coupons
• 4 in 10 like to read product reviews before buying
• 46% of online shoppers are driven by the scheduled delivery feature
• 45% like the ability to track order/delivery progress online.
• More than 6 in 10 consumers prefer to select perimeter items in-store vs. purchasing online

Source: 2024 Supermarket Tech Trends and the Consumer study commissioned by Supermarket Perimeter and conducted by Cypress Research

This article is an excerpt from the August 2024 issue of Supermarket Perimeter. You can read the entire Technology and the Consumer feature and more in the digital edition here.