Category: Supermarkets & Hypermarkets

Dive Brief:

• The U.S. Department of Agriculture’s Economic Research Service reported 47.4 million people lived in food-insecure households last year, an uptick of 3.2 million compared to the year prior, according to the department’s latest Household Food Security report. 
• There were 18 million food insecure households in 2023, an increase of 1 million households over 2022 and up more than 4 million from 2020, the USDA reported.
• Grocers have made strides to help improve food access by expanding the acceptance of SNAP and EBT amidst rollbacks and by partnering with third-party e-commerce providers to enable online access.

Dive Insight:

The USDA’s findings show that 13.5% of households were food insecure for at least some time last year, a significant uptick from the 12.8% of households that were food insecure in 2022. 

The spike in the number of food insecure individuals was likely driven by inflation and the discontinuation of COVID-19 relief efforts like SNAP emergency allotments and free school meals for all students, Crystal FitzSimons, interim president for the USDA’s Food Research & Action Center (FRAC), said in a statement about the report. 

FitzSimons, as well as Agriculture Secretary Tom Vilsack, placed blame on Congress and other lawmakers for not prioritizing federal nutrition programs aimed at addressing poverty.

Food-secure households spent 16% more on food than the typical food-insecure household of the same size and composition, the report found, adding that food insecurity negatively impacts dietary quantity and quality. Low-income, food-insecure households purchased fewer calories overall and had lower nutritional food purchases than low-income, food-secure households. 

More than half (58%) of food-insecure households reported receiving assistance from one or more of the nation’s largest federal food and nutrition assistance programs, with 42% participating in SNAP. 

Since the end of SNAP emergency allotments in February 2023, grocers have bolstered their efforts to expand SNAP accessibility and reach food-insecure households. 

In June, Albertsons partnered with Uber to launch a white-label delivery service that donates surplus food from its banners to local nonprofits and food banks. 

The USDA made SNAP online purchasing available nationwide in June 2023 and, since then, grocers including Kroger, Albertsons and e-grocer Thrive Market have added the capability to their online ordering platforms.

CHICAGO — Circana’s annual report on “Eating Patterns in America” reveals consumers are switching up where, when and what they eat in response to changes in their daily lives.

The Chicago-based market research company said 86% of eating occasions are sourced from home. People also are eating breakfast earlier, and snacking away from home is becoming more popular, the report found.

Emerging trends in eating patterns are “really driven by the disruption of our daily routines,” said David Portalatin, senior vice president and industry adviser, food and foodservice, Circana. He said because of shifting home and work habits, lunch in the restaurant industry is permanently disrupted and has been 15% lower than it was in 2019.

“People pack their days with meetings, and then they look up and it’s 2:30 and they say, ‘What are we going to do about lunch?’ and dinner is at 6:30,” Portalatin said.

Snacks are more often filling the gaps left by foregone meals, he added, with some snacking happening in mid-morning, some in the afternoon and some at night.

“Two things that we’ve seen steadily increase over the years are the consumption of snack items during mealtimes — and sometimes in replacement of a main meal — and the increase of time between mealtimes,” he said. “It’s the ‘snackification’ of our mealtimes.”

In response, consumer packaged goods companies increasingly are developing foods and beverages offering the convenience, ingredients and value consumers want.

“For CPG companies, it’s thinking about crafting eating flexibility for consumers in three ways: price points, portion control and portability,” Portalatin said.

The trends are especially evident among younger people who have more flexibility, he said.

“They throw a collection of items in their backpack, maybe string cheese snacks, salty snacks for satiety, a bottle of water or juice for pleasure, and just have a snack and save some for later,” he said. “In any case, (the items) are packaged to go where the consumer goes.”

The 86% of eating occasions being sourced at home is up about 3 percentage points from pre-pandemic years, according to Portalatin. The eating trend is part of the overall shift in consumer behaviors that includes more people working at home and investing more time and effort in their kitchens.

“That doesn’t mean we’re all going to become Michelin Star chefs,” he said, adding, “We’re seeing more heat-and-eat options and more meals thrown into an Instant Pot.

“As a food manufacturer, if you can bring that kind of architecture to the home from items in the pantry or the refrigerator, those are the kinds of things consumers are looking for. We still want culinary exploration, and we still want to try global cuisine, so manufacturers are still developing items in response.”

As CPG companies continue to innovate, consumers continue to want to experiment by trying new products, Portalatin said. This trend is unlikely to wane, especially if new products are overlain with functional aspects and offered so that budget-conscious consumers perceive value.

“The consumer is under pressure right now,” he said. “It’s the cumulative effect of inflation and debt causing people to rationalize their spend across categories. They’re focusing in on the value equation and not just the cheapest item.” 

As the court battle continues between federal regulators and Kroger and Albertsons over their proposed merger, the divestiture plan with C&S Wholesale Grocers has proven to be a key argument topic for both sides.

Kroger and Albertsons have pointed to C&S’s strong track record and said the plan gives C&S the assets to effectively compete in the grocery space, while the Federal Trade Commission has argued that C&S is ill-equipped to quickly transform into a major supermarket operator. 

During the trial this week, C&S’s CEO Eric Winn confirmed that the wholesaler had written a letter to the FTC last fall saying that it would be able to “compete more effectively” if it could obtain the exclusive rights to one of the grocers’ well-known banners or Albertsons’ distribution centers rather than a mix of assets from both companies, the Los Angeles Times reported.

“Kroger gave us their worst chains,” Alona Florenz, C&S’s head of corporate development, said last November, according to documents shared during the trial, the publication noted.

Instead, under the current divestiture plan C&S would acquire four banners — QFC, Mariano’s, Carrs and Haggen — and get access to license the Albertsons banner in California and Wyoming and the Safeway banner in Arizona and Colorado. 

Winn declined in court to say whether C&S asked for specific banners and said Kroger selected which assets it would divest, the paper reported. Analysts have suggested that divesting a more substantial or cohesive set of assets could help satisfy regulators’ concerns — and now it seems like C&S had hoped for a better deal, too. A key question for Judge Adrienne Nelson to consider is: How strong can C&S be without controlling a well-known banner like Safeway?

In case you missed it

Grocery price trends differ by state

Prices for groceries have fallen over the past year in some states even as they have gone up in others, according to a Datasembly report cited by Philadelphia TV station WTXF. New Jersey saw the sharpest decrease, at just under 1%, followed by Connecticut and Pennsylvania, which each logged a decrease of about half a percent. Maine, New Hampshire and Illinois each saw prices go up by close to 2%, while prices in Hawaii went up 2.2% and Vermont saw an increase of nearly 3%.

Publix continues Kentucky expansion

The supermarket chain has signed a lease for a new store in Owensboro, Kentucky, adding to its growing presence in the Bluegrass state, the Louisville Courier Journal reported. The new store will join Publix locations slated for Kentucky cities including Louisville, Lexington and Walton. Publix opened its first Kentucky location in Louisville’s Terra Crossing Shopping Center in January.

Natural Grocers looks to fund regenerative organic agriculture

The specialty grocery chain is asking shoppers to help it raise $100,000 during September for Rodale Institute, a nonprofit organization that supports organic farming research and helps farmers transition to growing organic crops. Natural Grocers plans to collect the funds through donations from shoppers when they pay for purchases as well as from the sale of themed reusable shopping bags and zip pouches.

Impulse find

Calling all pumpkin lovers!

If you enjoy fall-themed food, personal finance website FinanceBuzz might have just the ticket for you. The site is hoping to find someone to test and rate all of the fall-inspired Pumpkin Palooza foods at Trader Joe’s — and will pay that person $1,000 to complete the job. FinanceBuzz will also give its “Pumpkin Spice Pundit” a $500 Trader Joe’s gift card to cover the cost of the foods they evaluate.

MISSION VIEJO, CALIF. —   The Hass Avocado Board (HAB) reported record-breaking sales highs from Cinco De Mayo, Memorial Day and Father’s Day celebrations in the second quarter.

According to HAB, the sales from the three holidays combined reached 154.6 million units, generating $191.6 million in sales. This was a $32.4 million increase in sales compared to 2023.

HAB shared three main highlights from its Avocado Holiday Retail Recap:

• “Cinco De Mayo sales and units soared, reaching four-year highs in both dollars and units. Avocado units reached 59.8M, a +2% increase versus the prior year, while dollar sales soared +22% to $68.5M. Small avocados (4046) drove unit growth during the holiday, contributing an additional +3.1M units to the category.”
• “During Memorial Day, avocado dollars climbed +18% to $61.5M in sales while units fell -2% to 47.5M units. The average holiday selling price reached $1.29/unit, a +20% increase compared to the prior year.”
• “Father’s Day avocado dollar sales secured $61.6 in sales, a four-year high and a +22% increase from the prior year while unit sales declined -1% to 47.3M units. Large avocados promotions performed well during the holiday generating the highest promotional volume lift at +20%.”

You can download and read the full report here.

Dive Brief:

• Aldi US announced Wednesday that it plans to hire more than 13,000 store and warehouse employees.
• The discount grocer will also raise its national average hourly pay for associates with starting wages for store and warehouse roles being $18 and $23 per hour, respectively, based on market and position. 
• The hiring surge comes ahead of the holiday season and store openings the discount grocer has in the pipeline, according to the press release.

Dive Insight:

Aldi currently employs more than 49,000 associates and operates just shy of 2,400 U.S. locations. 

As part of its hiring push, Aldi noted that all employees working more than 30 hours per week have access to healthcare insurance and paid time off, the announcement noted. 

The grocer added that it aims to set up its associates for long-term employment and success. Seventy percent of Aldi’s assistant store managers and more than 30% of store managers started as store associates for the company, and all of its executive leaders began their Aldi careers in one of the discounter’s stores, according to the press release. 

Interviews for the open positions will take place during National Hiring Week, which runs from Sept. 9-15. 

Aldi has seen rapid growth stateside this year, starting with an announcement in March that it plans to open 800 new stores in the U.S. by the end of 2028 as part of a goal to increase its U.S. footprint by 30%. This news followed Aldi’s announcing in August 2023 plans to acquire Winn-Dixie and Harveys Supermarket from Southeastern Grocers

During its inaugural supplier event in May, Aldi executives announced that the discounter is adjusting how it typically works with supplier partners in preparation for its store expansion plans.

KANSAS CITY, MO. — Supermarket consumers are ready to embrace artificial intelligence (AI) and other innovative, cutting-edge technologies coming to their grocery stores, according to a study commissioned by Supermarket Perimeter and conducted by Cypress Research.

In an upcoming, free webinar on Sept. 11 at 4 p.m. EST, three industry experts will go over the data from the Supermarket Tech Trends and the Consumer study and break down how supermarket retailers and their supply chain partners can use the new consumer insights.

The Supermarket Perimeter study shows the growing importance of technology for consumers and grocery shopping, especially as it relates to supermarkets offering technology that helps shoppers save money and directly impacts their ability to spread their finances further in this inflationary environment, said Brian Numainville, principal of The Feedback Group.

Meet the speakers for the 2024 Study: Supermarket Tech Trends and the Consumer webinar:

Andy Nelson

Andy Nelson, managing editor of Supermarket Perimeter, joined Sosland Publishing in 2017.

A veteran editor, reporter and freelance writer, he has also worked for Vance Publishing and The Kansas City Star.

Marjorie Hellmer

Marjorie Hellmer, president of Cypress Research, helps organizations grow by leveraging data-driven insights.

Now in its 22nd year, Cypress Research translates insights into actionable strategies for food manufacturers and the supply chain organizations that support them, conducting research with a focus on trends that drive industries, and benchmarking brand, customer and employee experiences with businesses.

Rob Hill

Rob Hill joined Instacart as general manager, Order Ahead in August 2021 as part of the FoodStorm acquisition and leads the cross functional teams enabling order ahead retailer solutions as part of Instacart’s Connected Stores strategy.

As the CEO of FoodStorm, Hill led the strategic direction and global growth of the business and is particularly passionate about driving business impact through technology.

Hill is a graduate of Swinburne University of Technology’s Bachelor of Information Technology scholarship program and an alumnus of Harvard Business School.

Check out a preview of some of the data the webinar will cover:

• 46% of shoppers lean on grocery technologies to enhance their shopping experiences.
• 92% of boomers shop in physical grocery stores. Just 75% of millennials do.
• The majority of shoppers pick up at the store after website/app/personal shopper purchase.
• 38% get delivery from retailer; 29% from an independent online grocery shopping company.
• 34% have used fresh perimeter grocery ordering through independent online grocery shopping companies.

To register for the free 2024 Study: Supermarket Tech Trends and the Consumer webinar, click here.

Chicago-based convenience-store chain Foxtrot Cafe & Market, which closed unexpectedly in April under former parent company Outfox Hospitality and is being revived by its co-founders, will reopen its first location Thursday at 23 W. Maple in Chicago’s Gold Coast neighborhood.

The location will offer an expanded coffee experience and reimagined food offering that will span all stores, the company said.

“Foxtrot Cafe & Market is taking its cafe experience to the next level with an expanded, full-day menu featuring delicious breakfast, lunch and afternoon offerings,” Foxtrot said. “Its signature breakfast tacos will remain a beloved staple, and the new menu introduces made-fresh-daily panini sandwiches, salads and bowls for lunch, alongside an assortment of freshly baked, delicious cookies.”

Foxtrot is offering promotions to celebrate the grand opening. From 6 to 10 a.m. Thursday, customers can enjoy a free coffee along with complimentary samples of new cookies and berry chai refresher.

On Friday, there will be a happy hour starting at 3 p.m. that features $4 local draft pours and $7 wine pours until close.

Coffee offerings include exclusive blends The Milk Man Blend and Early Train Espresso, crafted specifically for Foxtrot cafes. Foxtrot will continue to offer retail bean and consumer-packaged goods (CPG) selections from longtime Chicago roasters and partners including Metric and Kyoto Black.

“Our new coffee and food menus are a true reflection of Foxtrot’s founding principle: taking the ingredients we’re passionate about, partnering with the best purveyors and making them a special part of our day—and yours—every day,” said Foxtrot Chairman Mike LaVitola.

Foxtrot stores, more of which are scheduled to reopen in Chicago and Dallas through 2025, also will reintroduce customer favorites such as their gummies and gummy mixes, along with its “highly curated market featuring the best new products from small and local makers, alongside the most innovative brands in CPG—offerings that have set the brand apart from traditional convenience stores throughout its decade in business,” the company said.

Some brands that are returning include: All Together Now, Barbet, Bawi, Better Sour, Big Fat Cookie, Bon Bon, Chai, Cookies, Courtside, Dad Grass, Do-Rite Donuts, Fishwife, Frankies 457, Freeman House, French Squirrel, Gelato Boy and Gemma Foods.

Also, Heywell, Hop Butcher, Hopewell, Joggy, JOM, Jumbo Times Wine, Kyoto Black, La Boulangerie, Laoban, Leisure Water, Lexington Bakes, Life Raft Treats, Mama Teav’s, Marz, Mercado Famous and Metric Coffee. 

Foxtrot was founded in 2014 as a delivery company selling snacks, beer and wine, and grew into a corner store-restaurant hybrid that featured high-end package goods, prepared foods, coffee bars and wine bars. The chain, once billed as the “convenience store of the future,” raised more than $160 million to fuel its growth over its lifetime.

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This story was originally featured on CSP Daily News, a sister publication of Supermarket News.

Scottish wholesaler Dunns Food & Drinks has renewed its commitment to the charity Aware Scotland for the second year in a row.

Aware Scotland’s mission is to help young people who have faced challenges achieve their potential by offering training, self-development and fulfilling experiences.

The commitment has seen Glasgow-based wholesaler Dunns partner with Queen’s Park FC to launch a programme open to youths from secondary school age up to 19. It will will include providing 50 free match tickets and exclusive access to the team’s training sessions and press conferences. One participant will also be chosen as the club’s mascot, to be featured by Queen’s Park on social media.

“We are incredibly grateful for the support of Queen’s Park and Dunns Food & Drinks,” said Aware Scotland founder Chris Glancey.

“This partnership provides invaluable opportunities for young people who have faced challenges. By offering experiences like this, we can help build confidence, resilience, and a brighter future.”

Dunns operations director Julie Dunn said: “We are proud to partner with Queen’s Park to support such a worthy cause.

“Our company has a long history of giving back to the community, and this initiative aligns perfectly with our values. We look forward to seeing the positive impact this partnership will have on the lives of young people.”

MADISON, WIS. – With labor challenges persisting in the dairy processing industry, the Wisconsin Cheese Makers Association (WCMA) aims to bring professionals together and generate more solutions.

WCMA announced that its Sept. 12 workforce and education committee meeting will focus on connecting those in the industry to share their thoughts in an effort to forge actionable strategies.

Rebekah Sweeney, WCMA’s senior director of programs and policy, said she anticipates a day of insightful discussions and emphasized that all interested professionals in the dairy processing industry are welcome to attend the hybrid meeting.

“Hearing directly from WCMA members about the workforce challenges they face each day is critical to crafting meaningful advocacy strategies and useful tools,” Sweeney said.

The trade association shared that the meeting will feature an expert panel, including Jeff Pertl, secretary-designee for the Wisconsin Department of Children and Families; and Rebecca Giroux, community and economic development officer at the Wisconsin Housing & Economic Development Authority.

In-person attendees for the meeting, hosted at the Novonesis corporate headquarters in Milwaukee, may also get a tour of the facility, as well as a human resources discussion from the company’s leaders.

The hybrid session will offer presentations on the labor outlook and address barriers to employment, such as childcare, housing access and affordability, immigration restrictions, and workforce training challenges. The agenda also calls for small group discussions to identify necessary tools and policy changes.

Registration information and a detailed agenda are available on WCMA’s website.

Supply-chain tech firm GrubMarket acquired FreshGoGo, an online Asian grocery and specialty food platform, GrubMarket announced Wednesday.

Details of the transaction were not disclosed.

The move strengthens GrubMarket’s position in online grocery delivery, the San Francisco-based company said in a statement.

FreshGoGo was founded in 2017 in Plainview, New York, and now sells nearly 6,000 products, including fresh vegetables, meats and seafood, as well as dry goods, snacks, and Asian dishes from local restaurants.

FreshGoGo’s portfolio includes a 50,000-square-foot central warehouse in New York; satellite dispatch centers in New Jersey, Boston, Washington, D.C., Chicago, and Atlanta; a fleet of temperature-controlled vehicles; and a network of more than 200 pickup locations.

FreshGoGo operates in 25 states on the East Coast and in the Central U.S., and has more than 200,000 customers, GrubMarket said.

FreshGoGo’s existing leadership team will remain in place.

“FreshGoGo is a pioneer in the Asian grocery delivery market,” GrubMarket CEO Mike Xu said in a statement. “The company has built a strong brand and an exceptional online platform that aligns with our vision for digitally transforming the food supply chain in America…With this acquisition, GrubMarket strengthens its position as a leader in the online grocery market and reinforces its commitment to bringing fresh, affordable food to diverse communities nationwide.”

The acquisition will allow FreshGoGo to use GrubMarket’s suite of proprietary tech solutions, including an AI-powered platform that offers financial management, sales support, online ordering, inventory management, lot traceability, growing accounting, automated routing and logistics, and more, GrubMarket said.

GrubMarket was founded in 2014 and has become the largest private food-tech company in the U.S. by revenue.