Transcript Rise of Healthy Marketing

Rise of Healthy
Marketing
Katie Martin, Editor-in-Chief, Progressive Grocer Independent
Today’s Food Shopper
Source: SupermarketGuru National Potato Council Survey, 2015
Today’s Shopper
How much of an impact do the following have on your decision to buy foods and beverages?
(% Rating 4 to 5 on 5-point scale, from No Impact to A Great Impact)
85%
88%
84%
87%
86%
87%
87%
89%
73%
71%
90%
83%
79%
72%
70%
74%
73%
73%
68%
64%
65%
58%
55%
62%
55%
48%
61%
52%
64%
60%
56%
51%
35% 36%
52%
35%
2007
2008
2009
2010
2011
Source: International Food Information Council, 2016 Food and Health Survey
2012
2013
2014
2015
Taste
Price
Healthfulness
64%
Convenience
Sustainability
52%
41%
38%
2006
71%
71%
58%
66%
58% 61%
56%
52% 53%
84%
2016
What Does Healthy Mean?
How do you define a healthy food? (Open-ended response)
Does not contain (or has low levels
of) certain components
35%
Good for you
18%
Contains certain
foods/components
No artificial ingredients
or additives
17%
14%
DOES NOT CONTAIN CERTAIN COMPONENTS
Low/no fat
19%
Low/no sugar
13%
Natural
10%
Unprocessed/
unadulturated
Simple/few
ingredients
10%
Low/no carbs
2%
7%
Low/no cholesterol
1%
Organic
7%
Other
Fresh
6%
Nutritious
5%
Other
Don't know/Refused
17%
8%
Source: International Food Information Council, 2016 Food and Health Survey
Low/no calories
9%
Low/no sodium
8%
3%
Today’s Shopper
Today’s Shopper
67% paying close attention to ingredients
28% want minimal processing
25% want local
25% want short list of ingredients
Source: Phil Lempert, Supermarket Guru
Today’s Shopper
Health attributes that are influencing food purchases
62%
Made from
vegetables/
fruits
Source: Nielsen
61%
High in
fiber
57%
57%
Portion
control
Whole
grain
Biggest & Fastest Growing Claims
500
450
400
350
300
250
200
150
100
50
0
CAGR
Source: Nielsen; period ending Dec. 26, 2015
New Items
Consumers Focus on Health
25%
feel like
supermarket
helps them
manage
personal health
concerns
50%
agree
primary
supermarket
helps them
do this
63%
are trying to
eat healthier
Source: Catalina
Consumers Focus on Health
87% of Americans doing one of the following:
24% Wearable Fitness Devices
18
5 3
75% Vitamins or Supplements
11% Acupuncture
62
5
51% Meditation or Prayer
20
5 2
27
9
23
66% Following Specific Diet
17
55
10%
Be Healthy
25
49
52
0%
6
89
66% Following Specific Exercise
Source: Nielsen
76
20%
5
17
30%
40%
Manage Condition
50%
Other
34
4
60%
Not Doing
70%
34
80%
90%
100%
Consumers Focus on Health
Read food labels to make healthier
choices
have gotten health information online
Source: Nielsen
Consumers Focus on Health
“Dr. Google” Phenomenon: Internet No. 1 source for nutrition information.
Where else are they turning:
Source: Phil Lempert
Conditions Managing: Obesity
37.7% of adults are obese; 7.7% are severely obese.
17.0% of children and adolescents are obese; 5.8% are severely obese.
14.9% of low-income preschoolers are obese; 2.1% are severely obese.
Disparities exist based on race-ethnicity, gender, age, geographic region, and
socioeconomic status.
Conditions that can result from obesity include: heart disease, stroke, type 2
diabetes and certain types of cancer, some of the leading causes of
preventable death.
Source: Food Research Action Center
Conditions Managing: Diabetes
From 1980 through 2014, the number of Americans with diagnosed diabetes
has increased fourfold (from 5.5 million to 22.0 million).
Number of new diabetes cases went from 1.7 million in 2009 to 1.4 million in
2014. May indicate that methods for getting the disease under control -weight loss, better eating habits -- are beginning to pay dividends.
U.S. still has highest diabetes rate among the 38 developed nations.
Source: CDC
So, What Can Retailers Do?
Retailers Focus on Health
2016 Progressive Grocer Retail Dietitian Study
Retailers Focus on Health
2016 Progressive Grocer Retail Dietitian Study
More than 50% employ retail dietitians
12.5% of single-store operators
47.3% of 2-50 store operators
Retailers At Work:
B. Green Co.
2 Food Depot,
2 Green Valley Marketplace
locations in Baltimore
region
B. Green
"Southwest Baltimore has a lot of health challenges. How can anybody stand by and watch? I want
to play whatever role we can play,” Benjy Green, owner/CEO.
Frederick Ave. store located in poorest zip code in Baltimore and has the
youngest mortality age.
How do you get them to choose salad and apples over ramen and chips?
Eat Right, Live Well -- partner with Johns Hopkins Center for a Liveable Future
and partnered with the city of Baltimore in the Food Desert Retail Strategy
B. Green - Eat Right, Live Well
Center trained and collaborated with Food Depot staff
Shopping Matters tours for customers to identify and locate healthy food
choices
Community outreach workshops to let the community know
As part of the partnership, the research team reached out to community
organizations, groups and schools; participating in parents’ night at schools,
community festivals and local church events
Devote a lot of square footage to produce
B. Green - Eat Right, Live Well
Shelf labels and storewide promotions to draw attention to foods that are low in fat, low in sugar,
and low in salt, and the promotions include sales for healthier choices.
B. Green - Eat Right, Live Well
Dietitian on staff
who samples
healthier options
during peak SNAP
day to introduce
customers to
healthier, affordable
options
B. Green - Eat Right, Live Well
Results of the original research:
28% of “high fidelity” foods in the intervention store compared to a 6% increase in control store.
Food included fruits, vegetables, snack foods, desserts and condiments.
Conversely, low fidelity foods like grains and dairy rose 1.7% in the intervention store and 7.5% in
the control store
Study conclusion: store based interventions, especially high fidelity labeling, can increase
promoted food sales.
B. Green - Eat Right, Live Well
Green Valley Marketplace
Focus is on organic, free-from
products, non-GMO, glutenfree
Holistic nutritionist
Added essential oils
Andronico’s Market
Fit Market: Mission to bring
“healthy back”
Fun, accessible, educational
and inspirational health
coaching tips from leaders
Focused on how customers
shop, cook, eat, exercise
and re-charge
Andronico’s - Fit Market
Guidance from health coaches,
nutritionists, food writers, chefs and
fitness professional throughout the store
and on the website
Provided shopping list focuses on mostly
fresh and minimally processed foods that
maximizes nutrients while minimizes
calories, suggests buying organic when
possible and eating a well-balanced diet
of meat/seafood proteins and produce,
seeds and grains.
Andronico’s- FitBank
FitBank: available to both customers and employees
Partnered with a fitness app
Workouts earn them credit, which the app stores
Customers can use the credits for store gift cards and
coupons for free products, including health and fitness
products
Employees credit also can be used for an extra day paid time
off or a gift card for the equivalent of one day’s pay
Andronico’s - FitBank
The “Sweat” goal is to achieve 16 workouts in a four-week period
Reward: $100 worth of free produce, dispersed $25 per week
for four weeks
FitBank is funded through sponsorships with healthy food product
manufacturers/suppliers, who supply the coupons
Brown’s ShopRite
Recognized by national media and White House for efforts to expand access
to healthy food in food deserts.
Low income stores, but pay attention to merchandising/marketing: stacks
produce in pyramids because it’s attractive and creates less bruising.
Hires butchers, fishmongers and in-store chef to show customers healthier
options.
Sells fire-grilled chicken rather than fried
Collard greens made with smoked turkey instead of pork
Brown’s ShopRite
Effort expands beyond food -- opened
an in-store clinic for customers to
receive medical care
Part of a federal program for funding - supermarket receives rent and
prescriptions are often filled in the
store pharmacy
Times Supermarket
Partnered with DOCNow Virtual Healthcare
Centers
Covered by most insurance; or introductory
price of $49
Monitors located next to pharmacies, customers
choose a doctor for video visit
Prescriptions sent directly to the Times Pharmacy or
any pharmacy of the customer’s choice
Treat minor and urgent (not life-threatening)
problems for both adults and children
Harmons
Dietitians Choice
Products that have the stamp of approval
from the company’s dietitians.
Approved items usually include whole grains,
fruits and vegetables and high amounts of
fiber while are low in sodium, saturated fat
and added sugar.
Products that include trans fat, hydrogenated
oils, artificial sweeteners and high fructose
corn syrup are not approved.
Helps take the guesswork out of shopping.
Harmons
Introduced Healthy Check Out Lanes in every
store in 2013.
By 2015, each of the 16 stores had two lanes
Idea inspired by parents who wanted healthier
options for children at the check out
Items selected by six staff dietitians with focus on
fruits/vegetables, whole grains and healthy fats
like nuts instead of saturated fat, added sugar,
excessive sodium and questionable ingredients.
Weis Markets
Healthy Bites: nutrition and wellness
education program
Family-friendly, easy-to-prepare meals
Accurate wellness news
Answers to food/nutrition questions
Healthy Living Videos
Recipes, cooking techniques, practical nutrition tips
Weis Markets
Cooking Demonstrations:
Great influence on customers’ habits
Focus on healthy cooking that still tastes
good and is easy to make
Showcase recipes with a variety of
nutritional benefits
Wakefern/ShopRite
Weekly culinary workshop classes with chefs for both adults and children
Digital outreach, including instructional videos and e-newsletters
Family Meal campaign
Children get better grades in school
Make better food choices
Maintain healthier weights
Less likely to do drugs
What Can I Do?
Provide ready-to-eat/pre-cut fruits and vegetables at a good value
Devote promotional shelf space to healthier snacks
Use shelf talkers to provide guidance on healthier options
Place healthier options at eye-level on the shelf or display them on endcaps
Stock healthier option in high traffic areas, like checkouts
Use promotional strategies like coupons, contest and BOGOs
What Can I Do?
Provide printed nutrition educational materials at point of purchase and targeted areas
like the produce department
Provide healthy recipes, information about specific nutrients and/or health conditions,
tips for shopping and how to select and store fresh produce
Offer tastings of easy to prepare healthy foods along with related materials and
promotions
Coordinate store tours that highlight the healthier options
Offer free nutrition classes to teach customers how to shop for healthier foods. Topics
could include reading food labels, shopping on a budget, shopping for specific health
concerns, etc.
What Can I Do?
Colors influence on buying decisions:
Red: This is appetizing
Yellow: This will make you happy
Green: This is natural and healthy
Orange: This will satisfy you
Blue: This brings back good memories
Katie Martin
Progressive Grocer
Independent
[email protected]