Category: Supermarkets & Hypermarkets

MINNEAPOLIS — As part of C-suite executive changes, Target Corp. has named a new chief merchant to lead its food business.

Plans call for Lisa Roath, currently chief marketing officer, to become chief merchandising officer for food, essentials and beauty in early 2025, Target said. With her appointment to that role, Roath will take over from Rick Gomez, who is being promoted to chief commercial officer — overseeing all of Target’s merchandising — effective July 7. Also on that date, chief growth officer Christina Hennington is slated to begin an expanded role as chief strategy and growth officer.

Minneapolis-based Target said Roath will continue to serve “in full capacity” as chief marketing officer and report to Cara Sylvester, chief guest experience officer, until she starts in her new post early next year, at which time she will report to Gomez. In the meantime, Target said it will launch an external search for a new CMO.

Food and beverages accounted for 23%, or about $24.33 billion, of Target’s fiscal 2023 sales, up from 21%, or $22.59 billion, in fiscal 2022.

Roath has been executive vice president and chief marketing officer at Target since July 2023. She was elevated to the CMO post after three years as senior vice president of food and beverage merchandising, a role in which she oversaw all buying for the grocery business and led the mass retail chain’s rapid digital expansion in food, Target noted. 

Prior to that, she was vice president of essentials merchandising, supervising the baby, health and household commodities divisions, and established a new capability for optimizing pricing and promotional strategies, according to the company. She also served as lead architect in the transformation of Target’s merchandising organization, blending physical and digital buying functions, the retailer said.

Joining Target in 2006, Roath also has held director roles in merchandising strategy, household commodities and own-brand food and served as senior buyer for the bakery and garden categories.

“As we execute our 2024 plans and look to the future, we’re putting key leaders and capabilities in place to sustain profitable growth over the long term,” said Brian Cornell, chairman and chief executive officer. “Today’s announcement builds on our January appointment of Michael Fiddelke to chief operating officer and will further accelerate progress on our growth initiatives.

“As Rick takes on full oversight of merchandising, Christina will be dedicated to keeping our strategy consumer-centric, differentiated and future-focused. Lisa will be an important addition to Rick’s leadership team when she moves into her new role in 2025, bringing her prior experience and accomplishments leading our food and essentials businesses. In the meantime, we’ll conduct a thorough search for a top brand marketer to succeed Lisa and build on our strong marketing foundation.”

Gomez has been executive vice president and chief food and beverage officer at Target since February 2021. As chief commercial officer, he will report to Cornell and lead merchandising for Target’s apparel and accessories, home, hardlines, food, essentials and beauty product categories, as well as private brand sourcing and design and merchandising planning and capabilities.

Coming to Target in April 2013, Gomez spent nearly four years as senior vice president of marketing before becoming senior vice president and chief marketing officer in February 2017 and then chief marketing, digital and strategy officer in January 2020. He joined the retailer after years of managing multibillion-dollar consumer packaged goods brands at MillerCoors, PepsiCo and Quaker Oats.

Phil Schmidt started skinning deer and cleaning up a local meat market at the age of 17. Twenty years later the young man emerged knowing everything from how to properly clean the facility, how to run the sausage kitchen, how to cut meats and had a head loaded with management knowledge.

He came away with one other idea: building and running his own meat plant.

Phil and his wife Vicki talked about it and then followed through on the concept of leasing space at a mall near Greenville, Wis., to create this enterprise which would bear the name The Meat Block.

“It took everything we had to do it, but we started out with five employees, 1,500 square feet of retail store space and 1,900 more square feet for production and one smokehouse,” Phil recalled. “We didn’t pay ourselves when we were trying to get things going. We lived on credit cards, which we had never done before. Those days were all about having a meat business that shared our family values.”

Steady growth

That was the year of 2010. Within four years, the couple and their business partner Clyde Weycker and his wife Hollie, saw their new specialty meat shop grow to 15 employees, 2,700 square feet of retail space, a 5,700-square-foot production area, two smokehouses and a catering kitchen. In 2014, the Schmidts, understanding that many families were just too busy or unable to cook, opened a section of their retail store under the banner “The Chef.” In this sector they featured heat-and-serve meals to go, offering everything from pizzas, soups, homemade pot pies and even shredded meats that customers could take home, heat and eat. They also offered salads, sides, sauces and salsas. They even have a local bakery that operates a stand featuring their baked breads and rolls.

“Our tag line is ‘from our family to your table.’ For us it’s all about bringing families back to the dinner table,” Phil, now 50, said. “It’s where we get to know each other and how our day went. These moments are priceless. It was in our book of family values that families should have the fare that enabled them to have meals together. We didn’t just feel that we had to offer the best meats, but also help enable those who should eat together and spend family time together to do just that.

“Also in 2014, one of our employees asked if we might be interested in buying his family’s barbecue and grill sales shop nearby. We thought about it long and hard and realized that the grilling and outdoor eating season in Wisconsin is only a few months long. If someone couldn’t succeed in that business for a few months a year, they would be losing money during all those other months. We agreed to purchase that shop’s existing inventory and sell those type of items at the limited space we still had at The Meat Block space in the mall.”

That wing of the business operates as BBQ Pits ‘n Spits. For the Schmidts, you don’t just offer something for sale…you do it right. That section of The Meat Block doesn’t just sell grills and charcoal; they are a virtual barbecue nation under one roof. This branch of The Meat Block has blossomed into a division that designs complete outdoor kitchens, cooking grills and supplies, refrigeration, gas, electrical and charcoal systems and even storage areas.

When queried about whether any of The Meat Block’s force of 85 employees work at more than one division, Phil’s enthusiasm lights up:

“Absolutely yes,” he said. “You can buy a grill through the mail. But at BBQ Pits ‘n Spits, we have qualified people there to make sure you know how to use it on day one. I’m not just talking about how to turn it on, but how to use it properly for meats, poultry, seafood…you name it. Our people are experts, and we want to give [customers] recipes and teach them how to bring out the best in the meats they are making. Making them look good makes us look good.”

Closing circle

If it appears that the rainbow showed up for the fledgling business in 2014, you are spot on. Not long after that, things grew even rosier for Phil and Vicki.

Before establishing The Meat Block, Phil had spent 20 years working at a nearby meat company. That business was Haen Meat Packing in nearby Kaukauna, roughly 18 miles away from Greenville. Haen Meat Packing was a standout processing house that took home awards for their meat products in state and national competition seemingly by the truckload.

Tim Haen, one of the four brothers who operated that company, explained that the brothers felt they had taken the company as far as they wanted to grow, and it was up for sale. Tim, who served as president of the American Association of Meat Processors (AAMP) from 2013-14, was described by Phil as his life-long mentor. In 2021, The Meat Block bought the Haen business with its renown product line-up, it’s slaughtering facility, retail shop and custom processing operation. The plant manager at the former Haen facility is none other than Tim Haen.

When The Meat Block bought Haen Meat Packing Co., they also bought a vacant house adjoining the property. That space is now dedicated to a new 5,000-square-foot retail area in Kaukauna and is the location for the expanded BBQ Pits ‘n Spits.

Top-notch quality 

If it seems like Phil and Vicki were dealt nothing but aces, take a moment to read those cards closely. They have seven children including a 21-year-old son Logan who manages the grilling wonderland and daughter Taylor who has constantly updated the company website themeatblock.com, Facebook and other social media platforms. She does this remotely while attending college and updates the screens in the retail area showroom. Read it this way: it’s about family.

“We have serious family values and want our customers to feel them,” Phil said. “It pervades everything we do.

“Our beef is sourced from the 1855 Beef program. This is an elite line only offered to elite chefs, restaurants and meat markets. Only the very best USDA Choice and Prime Black Angus is used in this line, offering natural marbling and an incredibly rich beef flavor. It comes from Nebraska and Pennsylvania family ranchers and only 13% of all cattle qualify for the 1855 brand.

“Our poultry is all natural, antibiotic and growth hormone free,” Phil added. “We offer this from Gold‘n Pump and Gerber Amish birds and offer gourmet stuffed chicken breasts, marinated breasts and heart healthy chicken sausage products.”

The Meat Block is no slouch when it comes to the over 100 different products the company makes in the sausage and cured meat cuts areas, and they employ three Master Meat Crafters in the Fox River Valley to oversee that operation. Phil estimates the company’s five truck smokers will grow to 15 within the next year or so. The company also supports local agriculture through sales of maple syrup, honey, frozen fruits and other produce.

Phil has just finished serving on the board of directors of the Wisconsin Association of Meat Processors for the past 12 years and readily shares how it all happened:

“I’m old school and there is no pass for not getting it right. You have to create and accept the culture of today. Be proud of your products in the knowledge you’ve made them the best they can be and treat all employees and customers like they are family. And don’t be afraid to charge enough for your product…that’s easier when your customer knows they are getting the best.”

Phil adds that the firm is undergoing a rebranding to put all its products under The Meat Block brand and is having success in its early efforts to private label meats for livestock producers and co-pack for other small processors.

“We are actively looking to develop new business relationships and grow our business,” Phil said. “I couldn’t have done this without the support of my beautiful wife; thanks to her believing in me and my crazy dreams, we have been able to accomplish great things and we are not done yet.”

DENVER — Private equity firm Manna Tree announced on July 23 that it assumed controlling interest in Boston, Mass.-based Verde Farms, a beef company specializing in organic and grass-fed products. Manna Tree’s first investment in the company was in early 2020. Financial terms of the new transaction were not disclosed.

“At Manna Tree, we believe that by investing in the next generation of health-and-wellness-focused companies, we will empower consumers to live better, longer lives, and Verde perfectly delivers that vision,” said Steve Young, managing partner of Manna Tree, who also is a Verde Farms board member. “Through its organic, grass-fed, regeneratively farmed beef, Verde offers consumers a more nutrient-dense protein option, and we believe the company is well positioned to serve the growing demand for cleaner, more sustainable food choices by today’s consumer. We are strong believers in the opportunity for Verde and look forward to working closely with its highly experienced management team to scale the company in a meaningful way.”

According to Nielsen data, the better-for-you beef segment is valued at $4.4 million and has grown by 14% year-over-year, while organic beef has grown at an annual rate of 22%, making it a prime target for the private equity firm.  

“Since our initial investment into Verde Farms, we have been continually inspired and impressed by its commitment to sustainability and more environmentally conscious protein options,” said Gabrielle Rubenstein, co-founder and managing partner of Manna Tree. “We have worked very closely with the company to further strengthen its team and go-to-market strategy, and we’re excited to leverage our expertise and network to help Verde expand its reach and impact in the better-for-you food space.” 

Brad Johnson, chief executive officer of Verde Farms, said Manna Tree will provide new opportunities for growth for Verde, which was founded in 2005. 

“Our commitment to providing the purest form of beef aligns perfectly with consumer demand for healthier, more sustainable protein options,” Johnson said. “With Manna Tree’s strategic support, we’re well-positioned to scale our operations, innovate our product offerings and expand our market reach. I’m particularly excited about building on our recent successes, including our strong velocities and significant increases in store count and distribution points.”

SOUDERTON, PA. — Godshall’s announced on July 26 the launch of its first branded pork bacon product, a Hickory Smoked Uncured Pork Bacon.

“Our turkey and beef bacons have shown tremendous growth and success, so it was the right time to take the next natural step in our innovation pipeline and introduce Hickory Smoked Uncured Bacon,” said Ron Godshall, president of Godshall’s Quality Meats. “We’re thrilled to expand the Godshall’s presence in the bacon category, as it’s a name that our consumers know and trust. We’re looking forward to Fresh Thyme shoppers being among the first to taste this new product.”

The hickory wood smoked bacon is made from all-natural, small-batch and seasoned pork bellies, the company said. Godshall’s uses seven simple ingredients in its new product. After undergoing a long maturation process, the pork bellies are slowly smoked to create a balanced, deep flavor and firm finish with no added nitrates or nitrites.

With a pink color and a caramelized smoky edge, the bacon can be fried, baked or cooked in the air fryer.

The new pork bacon product debuted at Fresh Thyme and other retail locations across the Midwest this summer. It is also available for purchase through Amazon.com.

According to the company, Godshall’s is currently the market leader in beef bacon and America’s third-largest turkey bacon brand.

WESTMINSTER, COLO. — Coleman All Natural Meats launched ground pork sausage, now available in five flavor varieties — mild sweet Italian, hot Italian, chorizo, mild breakfast and hot breakfast.

“We’ve seen the ground pork category grow over the years because of its convenience, affordability and versatility in recipes,” said J.D. Enrici, vice president of sales and marketing at Coleman All Natural Meats. “The expansion of our ground pork line to now include on trend sausage flavors gives consumers another protein option when seeking to create easy delicious meals they feel good about serving to their families.”

Coleman’s ground sausage is made from Heritage Duroc pork, known for its abundant marbling.

“When we surveyed consumers in 2023, 76% said they may choose a brand of fresh pork if it has Heritage Duroc labeling,” Enrici said. “Our commitment to high standards and quality is one of our brand pillars that reinforces our premium positioning.”

The sausage is prepacked in 1-lb packages, featuring Coleman’s new branding that highlights its claims to no antibiotics ever, no added hormones, all vegetarian diet and humanely raised by local US family farms.

The new ground sausages are available for order now and will begin to be stocked on shelves in the next few months. The product ships frozen with the option for “Slack and Sell” refrigerated merchandising, the company noted.

ROEBUCK, SC. — Knockout Butchery held a groundbreaking ceremony for its new beef processing facility near Roebuck, SC, on July 29.

Owners Travis and Misty Howard currently operate a facility in Pauline, SC. With the added beef plant, they will quadruple their processing capacity. After the new Knockout Butchery facility opens, they plan to convert their existing facility into a pork processing operation, where local producers can bring their sows to process for resale.

Located off Walnut Grove Road in Spartanburg County, the new facility will be able to process up to 35 head of cattle per week and create between seven and 10 jobs. Knockout Butchery intends to become a USDA-inspected facility.

“This facility is being built by farmers, for farmers,” Travis Howard said. “Our customer base has stood behind us for the past seven years, and that gave us the strength and trust to go forward with all of this.”

The owners invested $2.6 million in the facility, which was supported by a $600,000 grant from the South Carolina Department of Agriculture. It was one of seven beef processing projects to receive funding from the agency in a round of $3.4 million in grants in March 2023.

Knockout Butchery will offer beef cuts as well as custom smoked products, including summer sausage, snack sticks and jerky. The facility will feature a storefront in addition to a venue for butcher and agriculture education.

“Our goal is to keep the younger population interested in where their food comes from, and in farming and agriculture in general,” Misty Howard said. “We’re very excited for what the future holds for us, as well as the hard work we’re willing to put in to give the best service to our farmers and our customers.”

GARNER, NC. — Butterball LLC released its Togetherness Report: Capitalizing on Consumer Appetite for Shared Meals, which examines the impact of consumer shopping behavior on preparing shared meals beyond the holidays.

Butterball defines a shared meal as a planned meal prepared and eaten at home with other people. This could include immediate family meals, casual meals with family or friends, and special occasion meals.

“For 70 years, Butterball has helped new and seasoned hosts prepare the perfect Thanksgiving centerpiece to foster togetherness through food; however, there are numerous opportunities and a strong desire for people to gather over shared meals throughout the year,” said Kyle Lock, Butterball’s vice president of retail and international marketing. “We examined the changing dynamics in human connection, and by sharing these insights, Butterball hopes to shed light on opportunities for grocery retailers to create a tailored shopping experience for consumers. Butterball believes in the power of food to bring people together and anticipates this trend will continue to grow, bringing additional moments of impact for grocery retailers.”  

In May, Butterball conducted a survey of among a sample of 2,127 US grocery shoppers aged 24 and up.

The survey found that, while Americans want to gather for meals, they find that busy schedules are the top barrier holding them back from doing so as frequently as they would like. Other barriers include limited hosting space, insufficient time to plan and prepare meals, limited cooking abilities and lack of new recipe ideas.

Nearly 70% of consumers expressed a desire to increase their frequency of shared meals despite their busy schedules. The report added that 80% of those who have increased shared meals over the past two years say their lives are very rewarding, compared to only 60% of those who have shared meals less often.

When having a shared meal, 87% of consumers prefer shopping in store for food items rather than using time-saving options like ordering online for pickup or delivery.

Expense is not a major concern for consumers when it comes to shared meals. Younger generations — Generation Z and Millennials — in particular are willing to spend significantly more on groceries for shared meals.

With consumers claiming some grocery stores to be more preferable than others when shopping for shared meals, Butterball highlighted opportunities for retailers to help attract more of these kinds of shoppers. As one piece of advice, Butterball suggested providing digital options like publishing recipes online and in-app ingredient lists. Retailers could adapt to other shopper preferences by making recipe bundle kits or updating store organization for an easy, in-store shopping experience, noted Butterball.

Dive Brief:

• Vice President Kamala Harris promised a federal ban on food price-gouging as part of proposed economic policies she revealed in a Friday speech for her presidential campaign.
• Harris said her “first-ever” federal ban would include “new penalties for opportunistic companies that exploit crises and break the rules.” She did not provide further details. 
• FMI – The Food Industry Association took aim at price-gouging claims while the National Grocers Association called for stronger enforcement of the Robinson-Patman Act, an antitrust law that prohibits price discrimination in commerce.

Dive Insight:

Harris said that a grocery price-gouging ban would help the food industry become more competitive, adding that, if elected president, her administration would support smaller food businesses “that are trying to play by the rules and get ahead.”

“We all know that prices went up during the pandemic when the supply chains shut down and failed, but our supply chains have now improved and prices are still too high. … Many of the big food companies are seeing their highest profits in two decades, and while many grocery chains pass along these savings, others still aren’t,” Harris said.

In July, food-at-home prices rose at a 1.1% annual rate while inflation increased 2.9% — its lowest level on an annual basis since March 2021, according to Consumer Price Index data released Wednesday by the U.S. Bureau of Labor Statistics. Even as grocery inflation has slowed in recent months, consumers have continued to worry about food costs. 

Harris pointed to her previous experience as California’s attorney general prosecuting companies for illegal price hikes: “So believe me, as president, I will go after the bad actors.” The grocery price-gouging ban is one of several economic policies, including increased construction of new housing, expanded child tax credits and lowered drug costs, Harris is proposing. 

The NGA, which has led a crusade against what the group says are “unfair and discriminatory tactics” by large food retailers and suppliers that hurt independent grocers, criticized Harris’ proposal. 

“The proposal calling for a ban on grocery price gouging is a solution in search of a problem,” NGA President and CEO Greg Ferrara said in a statement.

The NGA said that instead of proposing new legislation, the government should more strictly enforce the Robinson-Patman Act, lower swipe fees and “rein in excessive and burdensome regulations.”

Amid numerous news reports last week that Harris would share a proposed grocery price-gouging ban Friday, FMI released a statement Thursday saying there are misconceptions about food price inflation and industry practices.

“It is both inaccurate and irresponsible to conflate an illegal activity like price gouging — a defined legal term in which specific violations of trade practices law occur — with inflation, which is a broad, macroeconomic measure of increases in consumer prices over time,” FMI President and CEO Leslie G. Sarasin said in the statement.  

FMI said that food retailers’ profit margins are tight — 1.6% last year — and that the industry has worked to keep prices “as low as possible” while grappling with increased labor costs, volatile energy prices, more severe weather events, more regulations and supply chain issues. 

Earlier this year, the Federal Trade Commission released a report claiming that revenues have outpaced costs for food and beverage retailers in recent years, suggesting the grocery industry is using inflation to increase profits at the expense of consumers. The FTC also said that large grocery retailers took steps to shield their market power in the face of supply chain disruptions during the COVID-19 pandemic that put smaller retailers at a competitive disadvantage. 

The report used publicly available data and responses the agency ordered in late 2021 from nine grocery companies, including Kroger, Walmart, Amazon and C&S Wholesale Grocers.

A White House analysis published at the start of the year found that grocers have maintained the higher profit margins they saw during the pandemic while other types of retailers, like apparel stores, have seen margins slump. 

Dive Brief:

• Food Lion has finished a $365 million campaign to upgrade supermarkets it operates in North Carolina and Virginia, the grocery chain announced Monday.
• The Ahold Delhaize-owned chain plans to hold ribbon-cuttings at 167 refreshed stores in Mecklenburg County, Virginia, as well as the greater Raleigh-Durham, North Carolina, area on Wednesday.
• The renovation project follows Food Lion’s completion last year of renovations to dozens of stores in other parts of North Carolina.

Dive Insight:

The store improvements Food Lion is showing off this week include e-commerce capabilities, upgraded lighting and refrigeration, and an expanded assortment of locally grown produce.

Food Lion noted that the upgraded produce selection available in the renovated stores will include about 25 seasonal items, such as cucumbers, melons and berries. The grocer said the investment also includes an “extensive product assortment” built around affordable meal solutions that are ready to eat, cook or heat. In addition, almost all the stores covered by the renovation effort gained self-checkout technology, Food Lion said.

The upgrades also include LED lighting as well as refrigerated cases with doors to save energy.

“Enhancements were made with our customers in mind. They’ll discover a refreshed look and feel, and more convenient grab-and-go items that make life easier,” Food Lion President Meg Ham said in the announcement.

Food Lion’s completion of the renovation project comes amid continued strong performance by the chain, which operates more than 1,100 stores across 10 states in the Southeast and Mid-Atlantic. The chain has posted comparable-store sales growth for 47 quarters in a row, Ahold Delhaize President and CEO Frans Muller said during the grocery company’s second-quarter earnings call last month.