According to IDDBA’s What’s in Store 2002™ Commercial Dairy Product Demand Expected to Grow

March 25, 2002 - Madison, WI — Many store designers envision smaller stores that will focus on perishables, according to the International Dairy•Deli•Bakery Association’s™ (IDDBA) trends report, What’s In Store 2002. Dry goods will be ordered and delivered or picked up at the store or a satellite location. For many of these products, consumers know what they want. They will want to continue to be involved in the selection of perishables.

Consumers are willing to try self-checkouts. The advantage to retailers includes saving labor hours. Consumers believe the advantages to them include shorter lines, ease of payment, no chatting with cashiers/baggers and accuracy. Handheld scanners are a variation on the self-checkout scanner. Using a store-issued ID card, customers pick up the small scanners and scan items as they shop. When customers are finished shopping, a bar-coded ticket is dispensed. Customers take this ticket to an express lane and pay for their groceries. Not only does this help decrease time waiting in line, the scanners keep a running total of groceries in the cart — thus shoppers have more control of their spending.

One future extension on this technology is the possibility of one-to-one interactive marketing. Combined with loyalty programs, shoppers can be notified of special offers, discounts or coupons. The scanner can also notify shoppers that their deli or bakery order is ready for pick-up.

The rapid development of technologies such as personal digital assistants, cell phones, and digital networks has given rise to a new way of conducting business — mobile commerce or m-commerce. It’s possible for a retailer to notify a customer within a mile radius of the store about a special offer. A deli manager could alert a customer via a test message on his cell phone that his order is ready. One distinct advantage of m-commerce is the built-in billing system. Many charges are simply added to the monthly cell phone bill, or deducted from a bank account.

Wireless communications and personal digital assistants merge to assist customers and increase sales. Customers can access detailed information and reviews of products while in the store. In addition, orders can be placed for out-of-stocks. Retailers will be able to gain valuable information about shoppers and provide one-to-one marketing through the devices.

In-store kiosks build sales through streamlined service department ordering and cross-merchandising. But, like other kinds of in-store technology, consumers are unwilling to embrace kiosks unless they see a definite benefit. Kiosks which help consumers make choices such as which wine goes with which cheese, or which vitamin supplements would best suit a customer’s life-style, tend to be popular. Perhaps one of the most beneficial kiosk applications gives meal options and then prints out a shopping list, all based on previous shopping history.

E-marketing offers interactive TV advertising and paperless coupons. Customers are recruited on-line and in the store. Participants in the program receive special offers based on purchase history and behavior.

The Uniform Code Council is testing a new bar code system for variable weight items. The new technology, called Reduced Space Symbology (RSS), uses an omnidirectional bar code with space for up to 14 data lines. The additional data can be used to track sell-by dates, weight, and supplier information. RSS is expected to provide retailers with improved inventory shrink controls, reduced out-of-stocks, incremental sales from improved product mix, production scheduling, targeted promotion, improved profitability for better category management practices, syndicated data (which is virtually nonexistent for random weight items), computer-assisted ordering and improved risk management involving tracebacks, recalls, or customer returns.

Wireless store systems will allow retailers to track accurate, real-time information from scales, scanners, and computers and store it in a central database. Information on price changes can be sent to labelers and scales chain-wide from a central location. The end result is chain-wide data integrity. As items sell, a signal can be sent back to the central commissary, central kitchen or in-store kitchen to regenerate and reorder.

B2B exchanges link trading partners through e-commerce. In general, there are two types of B2B exchanges: vertical and horizontal. Vertical exchanges are industry-specific marketplaces. Retailers may buy products through auctions or by requesting bids from suppliers associated with the site. Industry-specific sites may link ingredients, equipment, packaging and training supplies. Horizontal sites provide general services needed by all business such as office supplies.

UCCNet, a not-for-profit subsidiary of the Uniform Code Council, is working to facilitate B2B e-commerce by developing industry standards and data synchronization. To carry out effective e-commerce transactions, trading partners need to use the same language and product information.

Scan-Based Trading (SBT) offers retailers and manufacturers a glimpse of the potential of a fully integrated supply chain. In a scan based trading system, suppliers maintain ownership of their products until they are actually sold to the end consumer. Retailers benefit because they spend less time and paperwork receiving merchandise. Shelves can be replenished by suppliers even after normal receiving hours. Consumers benefit because there are fewer out-of-stocks.

One copy of What’s in Store 2002 is provided free to members of IDDBA. Additional copies can be purchased for $99 plus shipping and handling. Non-members of IDDBA may purchase the book for $399 plus shipping and handling. For information on IDDBA membership or to order the trends report, call the IDDBA Education Department at 608-238-7908.

Visit the International Dairy•Deli•Bakery Association’s Web site, www.iddba.org, or call 608-238-7908, for the latest information on IDDBA’s research, education, public affairs, and other industry activities. Now in its 38^th year, IDDBA specializes in promoting the dairy, deli, and bakery industries. Member companies enjoy many benefits and services including the annual seminar and expo, leading-edge research, video and CD-ROM training programs, management tools, an annual trends report, and a member directory of key industry contacts.

One of the strongest findings in this study is that older consumers want more information. They want more information about the health benefits of various foods. They want to know more about what types of food fit in with their dietary restrictions. They want to know what food safety practices are being carried out.

Most fifty-plus consumers live in small one- or two-person households. They are less likely to buy large quantities of a product. They want to have the option to buy smaller portions. They want to buy half loaves of bread, two cupcakes, a quarter pound of sliced cheese, etc. They also want packaging that is easy to read, easy to open, re-sealable, spill-proof, and environmentally friendly.

Of the 15 services the research survey asked about, the three most important to respondents were large overhead signs telling consumers where to find things, senior citizen discounts, and senior citizen parking. On the second tier of importance were places to sit throughout the store so that people can rest, electric sit-in shopping carts, a pharmacy, and breaks in the middle of the aisle so customers don’t have to walk down the entire aisle.

The fifty-plus population is brand-loyal, service-oriented, value-seeking, and waste-adverse. The study recommends keeping these values in mind when advertising to this population. The mature population is known to be avid newspaper readers. Sixty-four percent (64%) say newspaper advertisements help them make their food purchasing decisions. Advertising, signage, and labeling needs to be clear and easy to read since there is nearly always some loss of near vision and color as one ages. Brightly colored labels may attract attention, but annoy customers when the colors make it difficult to read the information.

The research also found that some supermarkets around the country are trying innovative techniques to improve the shopping experience for older Americans. These techniques include shuttle buses between stores to nearby senior centers, healthy cooking classes, senior rewards card programs, and extra efforts to make the shopping environment safe.

The full report is available from IDDBA. The cost is $395 for IDDBA members and $795 for non-members.

For information about membership or to order the research report, call IDDBA at 608-238-7908.

Visit the International Dairy·Deli·Bakery Association’s Web site, www.iddba.org, or call 608-238-7908, for the latest information on IDDBA’s research, education, public affairs, and other industry activities. Now in its 38^th year, IDDBA specializes in promoting the dairy, deli, and bakery industries. Member companies enjoy many benefits and services including the annual seminar and expo, leading-edge research, video and CD-ROM training programs, management tools, an annual trends report, and a member directory of key industry contacts.

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Madison, WI — The International Dairy·Deli·Bakery Association’sÔ (IDDBA) What’s In Store 2002 annual trends book reports a continued growth rate for in-store bakery sales.

March 18, 2002 - Studies show a decrease in the number of service bakery employees at a rate about identical to the year before. However, hourly sales per employee increased 10% in 2000, according to a Progressive Grocer survey. Average sales per square foot also increased, from $4.26 to $4.38. Full-service, in-store bakery employees spend half their hours in baking and prep.

The percentage of supermarket shoppers who "always" or "frequently" shop the in-store service bakery department posted an increase to 38.9% in 2000, up from 34.5% in 1999. Bakery shoppers tend to spend more money in supermarkets than average shoppers. Frequent bakery department shoppers spent a weekly average of $88.92 in the supermarket in 2000, a big leap from $81.69 in 1999.

For retailers still having trouble getting their meal solutions to reach their potential, here’s some advice: include the in-store bakery in your plans to the fullest extent possible. Retailers managing 10 stores or less are in a more competitive situation because they have a better chance to differentiate themselves at unit level through signature processes and customer service.

Labor shortages continue to make finding and retaining employees for supermarket bakery operations very difficult. Turnover is a large and costly issue for all retailers. Often, it’s the newest workers who leave, just after completing orientation and training. Learning to understand and motivate new workers, as well as following a structured program that begins immediately, will vastly increase retailers’ chances of keeping good employees. New employees not only need training to be productive, but should be given an understanding of bakery and store goals and mission.

Equipment manufacturers are pleased to see bakery ovens become featured at the front of stores instead of buried in the back room. Supermarkets are becoming much more theatrical in showing customers behind the scenes by bringing bakery ovens into full view. Customers can watch their bread being made.

In an IDDBA survey of 50-plus shoppers, Boomers and Beyond: Marketing Food to the Over-Fifties, 75% of participants agreed they would like to see supermarket bakeries provide see-through, self-serve bags so that cashiers would not have to open their bags to count their selection. The American Bakers Association has urged the Food and Drug Administration to amend its regulations that limits the use of "fresh" labeling to foods that are unprocessed, not frozen and have not been thermally treated or otherwise preserved. At this time, baked products cannot be "fresh" labeled. Paul C. Abenante, president of the ABA, has said that the FDA should expressly permit the use of "fresh" claims for foods containing preservatives or that are processed using other new technologies, both thermal and non-thermal.

One copy of What’s in Store 2002 is provided free to members of IDDBA. Additional copies can be purchased for $99 plus shipping and handling. Non-members of IDDBA may purchase the book for $399 plus shipping and handling. For information on IDDBA membership or to order the trends report, call the IDDBA Education Department at 608-238-7908.

Visit the International Dairy·Deli·Bakery Association’s Web site, www.iddba.org, or call 608-238-7908, for the latest information on IDDBA’s research, education, public affairs, and other industry activities. Now in its 38^th year, IDDBA specializes in promoting the dairy, deli, and bakery industries. Member companies enjoy many benefits and services including the annual seminar and expo, leading-edge research, video and CD-ROM training programs, management tools, an annual trends report, and a member directory of key industry contacts.

March 18, 2002 - Madison, WI — Americans fifty and older are spending an average of $75.24 a week on groceries. The median expenditure is $65, according to Boomers and Beyond: Marketing Food to the Over-Fifties™ consumer research done by The International Dairy•Deli•Bakery Association’s™ (IDDBA).

Almost two-thirds like grocery shopping; 35% do not. As one get older, one is more likely to say they like grocery shopping. It follows that retirees are more likely to say they like grocery shopping than workers, because of the social interaction that grocery shopping can bring.

Most older Americans prefer to shop at big chain supermarkets. Twenty-two percent (22%) prefer smaller neighborhood markets. Only 18% prefer the superstores. Focus group participants commented that the superstores were simply too large given the difficulties they have getting around.

This is also reflected in findings that consumers want easy-access to the products. They want wider aisles and breaks in the middle of the aisles so they don’t have to walk the entire aisle.

More than eight in ten (86%) drive to the grocery store; 11% have someone else drive; 2% walk; and 1% use public transportation.

The level of physical mobility of older shoppers is an important factor in the enjoyment of the supermarket shopping experience. Managers need to be aware of the physical limitations of their customer population and be willing to perform some little "extras" for them, such as offering to search for products, using motorized carts, carrying groceries to cars, calling a taxi, etc.

The fifty-plus population goes to the grocery store an average of 2.1 times a week. Most shop either in the morning (39%) or the afternoon (28%). They are more likely to shop for groceries during the week than on the weekends.

To encourage more frequent supermarket shopping, stores could consider a "frequent shopper" program where purchases over a certain dollar amount might carry a "bonus" of some sort. Such a program could also be used to encourage shopping during the less busy evening hours.

Almost four in ten (38%) of the fifty-plus population use the Internet. Of those who use the Internet, 20% spend less than an hour a week on-line; 45% spend between one and five hours on-line each week, 17% spend six to ten hours on-line, 8% spend between 11 and 15 hours on-line, and 9% spend more than 15 hours on-line.

Books, music, travel and entertainment, and clothing are the main things purchased on-line by the fifty-plus population who use the Internet. Food is less likely to be purchased on-line: 15% have purchased non-perishable foods and only 6% have purchased groceries on-line. Among the entire fifty-plus population this percentage converts to just one percent who have ordered groceries on-line and only 3% who have ordered non-perishable foods on-line.

Concern for privacy is the primary reason given for not ordering anything on-line, mentioned by 44%. Fifty-six percent (56%) say their grocery store does not offer Internet shopping; 29% don’t know if it does and 15% say their store does offer Internet shopping.

For now, grocers will have a difficult time bridging customer reluctance to order groceries over the Internet. Those over age 65, in particular, express little enthusiasm for on-line purchases and even less for on-line grocery shopping. Shopping in traditional "brick and mortar" stores provides a cost-saving and tactile interaction that remains extremely important to consumers.

The full report is available from IDDBA. The cost is $395 for IDDBA members and $795 for non-members. For information about membership or to order the research report, call IDDBA at 608-238-7908.

Madison, WI — The International Dairy-Deli-Bakery Association’s™ (IDDBA) What’s In Store 2004 reports strategic trends for the retail dairy department, including the growth of the “Tweeniors” (adults 55- to 70-years-old) as an important life-style segment for future dairy case sales. This market will grow from 32 million to 62 million by 2020.

Tweeniors (Adults 55- to 70-years-old)

Tweeniors are the fastest growing, most affluent U.S. population segment. They spend the most per capita on dairy products. The report recommends positioning dairy product marketing to appeal to this segment’s strong interests in good nutrition, vitality, well being, and convenience. This group is less price-sensitive if they find value in the products.

Functional Dairy Products

According to Nutrition Business Journal, in 2001, approximately $17.7 billion (compared to a little over $16 billion in 1999) of functional foods were sold in the United States. More research and consumer awareness will increase the availability and use of functional dairy products, the report adds. Dairy’s future functional benefits will address health concerns like hypertension, weight control, cardio care, colon cancer, and cosmetic needs. Incorporating dairy products as functional ingredients in other foods is another important area for dairy sales. Probiotics research is making tremendous strides. Retailers should champion the use of probiotics, like inulin, in foods to help prevent illness and diseases, according to the What’s In Store report.

Women and Kids

Women and kids are critical niche markets for the dairy department. Dairy products influence calcium intake and may positively affect body mass index. With problems like osteoporosis, women are looking at ways to add calcium and vitamin D to their diets. Retailers are encouraged to develop special sections in their cases for products that address women’s health and convenience needs (e.g., soy proteins for heart health, low-fat items for weight control, fortified dairy case products as meal replacements, organic and natural products to meet “clean label” needs).

Develop a separate section in refrigerated cases for kid-friendly products (flavored milks, yogurt in small cups and tubes featuring kid-preferred flavors, dairy drinks, single-serve cheeses, puddings, and gelatins). Use demos to introduce the parents and kids to new dairy case products.

Ethnic Influences

Ethnic influences will be big business, especially Latino. According to IDDBA research cited in What’s In Store 2004, Hispanics are prevalent shoppers of the dairy case with an average of 2.2 visits a week, and over 67% prepare their meals from scratch. Cheese, yogurts, multi-pack products, and fruit flavors are important to Latinos. Retailers are developing signage that is multilingual, hiring multilingual staff, and catering to kids by doing demonstrations and sampling foods. These things add a personal touch so intrinsic to this culture.

Repositioning Milk Products as Convenient

Today, retailers are repositioning milk products as convenient beverages and pushing flavored milks, in convenient single-serve sizes, in deli department, bakery departments, at coffee bars, at the front checkout in beverage doors, in sit-down foodservice areas, etc. Marketing milk with more colorful, eye-catching graphics, is another trend

Many products are positioned in the dairy department to meet consumers’ convenience needs: single-serve, no-fuss, resealable, cup holder-style packaging, and extended shelf life. Dairy products are the number one snack meal replacement for all three major eating occasions. By developing and promoting convenience features retailers can capture a bigger share of meal replacement business.

Growth of Soy, Natural and Organic Foods

The dairy department is a key department in the progression of the organic consumers. In 2001, about $760 million in organic dairy products were sold at retail. The milk category ranks as the fourth highest selling organic group. Wellness attitudes and concerns for safe food will encourage the growth of soy, natural and organic foods. Retailers are determining what it takes to get certified to sell organic dairy products.

The full report is available from IDDBA. The cost is $99 for IDDBA members and $399 for non-members, plus shipping and handling. For more information, or to order, call the IDDBA Education Department at 608-238-7908 or visit their Web site, www.iddba.org.

Additional information on IDDBA’s research, education, public affairs, and other industry activities is also available on the Web site, www.iddba.org, or by calling 608-238-7908. Now in its 40^th year, IDDBA specializes in promoting the dairy, deli, and bakery industries. Member companies enjoy many benefits and services including the annual seminar and expo, leading-edge research, video and CD-ROM training programs, management tools, an annual trends report, and a member directory of key industry contacts.

Madison, WI — The International Dairy-Deli-Bakery Association’s™ (IDDBA) new original research, “The Sandwich Study: Consumer Attitudes, Buying Behavior and Purchase Drivers,” reports that taste, freshness, and quality ingredients are the top three factors influencing sandwich purchases. Quick service is also an important factor for consumers considering a sandwich purchase.

The Influence of Taste

Seventy-three percent (73%) say taste has a great deal of influence on their sandwich purchases, 21% say it has some influence, and 5% say it has little or no influence. In every demographic group, an overwhelming majority says that taste greatly influences their sandwich purchases. The results do show that women are more likely than men to say taste has a great deal of influence (76% versus 62%). Since taste is the number one factor affecting purchases, the study recommends highlighting language in marketing materials that stresses the taste. Offer samples to ignite taste buds.

The Influence of Freshness

Freshness comes in second when it comes to factors that influence consumer purchases on sandwiches — 66% say this has a great deal of influence on their purchase decisions, 27% say it has some influence, and 7% say it has little or no influence. As with taste, a majority of every demographic group says freshness greatly influences their sandwich purchases. The results also show that women are more likely than men to say freshness has a great deal of influence (69% versus 55%). Freshness, like taste, greatly influences consumer sandwich purchases. The study recommends highlighting language in marketing materials that stresses that the sandwiches are fresh. Let consumers know what you are doing to ensure freshness.

The Influence of Quality Ingredients

Quality ingredients are correlated to taste and freshness, so it should come as no surprise that this ranks third in terms of factors that influence consumer purchases — 59% say this influences their purchases a great deal, 30% say it has some influence, 8% say it has little influence, and 2% say it has no influence. Those more likely than the average 59% to say quality ingredients have a great deal of influence on their purchases are:

  v    Women more than men (61% versus 51%)

  v    Age 50 or older (63%)

  v    Non-Caucasians (63%)

  v    Those earning $75,000 or more (67%)

  v    Those living in the suburbs (64%)

The Influence of Quick Service (Easy to Order)

Thirty-nine percent (39%) say the speed of service influences their purchases a great deal, 46% say it has some influence, 11% say it has little influence, and only 3% say it has no influence. Those significantly more likely than the average 39% to say it influences their purchases a great deal are:

  v  Women more than men (40% versus 34%)

  v  Those employed outside the home more than those who are not (41% versus 34%)

  v  Non-Caucasians (53%)

  v  Those earning between $35,000 and $49,999 (44%)

  v  Those in the Midwest (44%)

  v  Those living in large cities (43%)