Grocers work to revamp deli counter as fresh, prepared food boom continues

Take a look at FMI Connect, a trade show for food retailers, at McCormick Place in Chicago on June 21, 2016.

Samantha BomkampContact ReporterChicago Tribune

Grocers are taking a closer look at the deli case as consumers, especially younger ones, demand more fresh, prepared meals on-the-go.

The deli case, which traditionally has included meat and cheese but now increasingly offers prepared salads, sandwiches and rotisserie chicken, is the fastest growing segment in grocery stores, according to research firm Datassential. Millennials, in particular, are buying more prepared meals for convenience, but they're also demanding more fresh, healthy options.

While the trend toward healthy, grab-and-go fare has been developing for some time, there are ways for grocers to stake out a larger piece of this market, and possibly even snag some business away from quick-service restaurants, Datassential Director Colleen McClellan said Tuesday at FMI Connect, a trade show for food retailers being held this week at McCormick Place.

MiniMeals 2Go by FiveStar Gourmet Foods are displayed June 21, 2016, at FMI Connect, a trade show for food retailers at McCormick Place in Chicago. (Phil Velasquez / Chicago Tribune)

Consumers tend to gravitate to items with restaurant brands, such as Panera-branded soups, in grocery stores, McClellan said. Focusing on restaurant-branded goods while also expanding online or kiosk-based ordering and other technologies that enhance food delivery will give grocers a leg up, she said.

Grocers also can incorporate items already sold in their stores into plates that can be purchased for a quick lunch or dinner, she said.

The trend toward fresh prepared foods was evident among exhibitors at FMI Connect. Fresh Origins, a producer of micro-greens and edible flowers, has been in fine-dining restaurants for two decades but only recently started to expand its grocery offerings, according to sales manager John Freitas. Freitas said the company also is trying to expand its business into groceries' prepared food cases, as consumers grow more aware of unique produce.

A colorful array of spices from Fresh Origins are shown June 21, 2016, at FMI Connect, a trade show for food retailers at McCormick Place in Chicago. (Phil Velasquez / Chicago Tribune)

FiveStar Gourmet Foods, which makes prepared salads, is set to expand into the Chicago market through a deal with Costco on July 11, said Steve Fleckenstein, FiveStar's vice president of sales and marketing. Costco will carry two items from the Ontario, Calif.-based company: a Santa Fe-style salad and a hummus snack pack. Fleckenstein said the company sees many customers stock up on the salads for lunch or dinner all week long while they're shopping for other staples.

And Mann's Packing Co., a vegetable grower from Salinas, Calif., recently launched "nourish bowls" — a mix of grains, greens, toppings and sauce in four varieties — to jump in on the healthy, portable food trend.