Friday, September 30, 2016

The US is currently in the third wave coffee movement, but what exactly are these “waves?” Below, Mintel’s expert Food & Drink and Foodservice analysts share a brief history of the different coffee waves in America and their predictions on what’s to come.

WAVE #1: COFFEE GETS HOT

The First Wave coffee movement dates all the way back to the 19th century. Coffee itself was a pure commodity, with virtually no information on point of origin or roast. Due to advances in packaging and brewing technologies, coffee was making its way into homes across the US, with  the goal of  having it available to all Americans. This was the very beginning of retail coffee with brands like Folgers (founded 1850) and Maxwell House (founded 1892) becoming key companies.

WAVE #2: NEW COFFEE VARIETIES APPEAR

The Second Wave is characterized by the growth of coffee houses and a more specialized view of coffee that these coffee houses provided by introducing Americans to European espresso beverages, like lattes and cappuccinos. The prime example of second wave coffee is when Howard Schultz bought Starbucks in 1987 and aggressively grew the brand throughout the 90s to present day. Coffee shops became known for their ambiance, and the coffee itself became nuanced as locations began featuring coffee from specific locations, such as Sumatran coffee and Costa Rican coffee.
The birth of single-cup, which offered brewed coffee with convenience, variety and easy preparation, also appeared during the second wave. Single-cup ultimately sparked the decline of instant coffees as the taste of brewed coffee largely became preferred over that of crystalized or powdered forms.

WAVE #3: IT’S ALL ABOUT THE COFFEE

The Third Wave is all about the coffee itself as it is now less of a commodity and often features detailed tasting notes. While second wave coffee may mention the country of origin, third wave coffee alwaysprovides the country of origin – sometimes even the specific farm – where the coffee was grown. Third wave coffee shops almost always serve single-origin coffee varieties that are typically either small-batch roasted or roasted on site. Third wave coffee is also marketed as being fair to farmers or grown using sustainable practices, falling in line with Mintel Trend Moral Brands, which notes how consumers are increasingly turning to brands that highlight their humanitarian efforts.
The Third Wave coffee movement created renewed focus on coffee brewing methods, as well. While it can be prepared in a regular drip brewer, it is often brewed via the pour-over method using a Hario V60 or Chemex. Some artisan locations and at-home coffee connoisseurs even use laboratory-like brewing equipment such as the vacuum pot, areopress, or a moka pot. Cold brew, nitros, and ready-to-drink (RTD) coffees available on tap also entered the space during the Third Wave, creating premiumized brewing methods for cold coffee varieties.

WAVE EVOLUTION: WHAT’S NEXT?

The next wave will bring greater attention to the treatment of the coffee bean.
Whether there is a Fourth Wave that marks the beginning of a “utopia coffee culture” – where coffee transcends above any commodity designation and is something savored and celebrated by all – or, rather, another evolution into a more sophisticated and complex cup of coffee remains to be seen.
We find that while the beginning of the Third Wave highlights a greater emphasis on sourcing and specialty/artisan brewing methods, the next wave will bring greater attention to the treatment of the coffee bean. This includes further emphasis on sourcing, growing and work conditions for farmers, individualized craftsmanship, and complex or artisanal roasting methods, such as aging and smoking. The nuances currently appreciated in the spirits and craft beer categories, like barrel type and age time, will also be highlighted and, in turn, will create greater complexity and more parallels between the coffee and alcoholic beverage categories.
This is not to say that innovation with coffee preparation will dissipate. The category will continue to see more experimental brewing methods wax and wane in popularity as coffee continues to ride the Third Wave, which likely brings new coffee pairings and cross-over products within both the alcoholic and non-alcoholic drink spaces.

While physical grocery stores have long been king in Europe, it seems like Millennials are now leading the online grocery shopping revolution on the continent, as they increasingly opt for the stress-free and time saving convenience of online shopping.
Indeed, new research from Mintel finds that almost half (45%) of Germans aged 16 to 24 have shopped online for groceries from a retailer with physical stores in the six months prior to the survey*, compared to only 31% of Germans overall.
Albeit not on the same scale, this divide is mirrored in other key European markets. In Spain, 46% of consumers aged 16 to 24 have shopped online for groceries from a retailer with physical stores, compared to 40% of consumers overall. In Poland, 44% of 16 to 24 year olds, compared to 41% overall, in France 33%, compared to 29%.

online grocery shopping-EN

When asked about the reasons for doing their grocery shopping online, avoiding stress seems to play a major role for Millennials. According to the research, 36% of German, 31% of French, 29% of Spanish and 28% of Italian shoppers** aged 16 to 24 find online shopping less stressful than shopping in-store.
While avoiding stress is a priority, saving time is also one of the top reasons why Millennials choose to shop for groceries online. Around a third of German (34%), Italian (33%), French (29%), Polish (28%) and Spanish (27%) shoppers aged 16 to 24 agree it takes less time to do a shop online compared with in-store.
Moreover, one out of three German (30%), French (29%) and Polish (27%) shoppers aged 16 to 24 finds it easier to stick to a budget when shopping for groceries online.
Regina Haydon, Food & Drink Analyst at Mintel, says:
“Outside of the UK market, Europe’s online grocery market is still in its infancy, but it is growing fast as young consumers increasingly opt for the stress-free and time saving convenience of online shopping. More and more retailers and speciality players are pushing into the channel to stay connected with the younger generation, promising a bright future for the online market at a time when connectivity and on-demand are playing an ever more important role in youth culture.”
However, many Millennials in key European markets are still harbouring doubts about the quality and freshness of groceries bought online. In fact, when asked about the reasons for not using online services when shopping for groceries, 51% of Polish and 50% of German  shoppers*** aged 16 to 24 say they are concerned about the quality or freshness of products.
This view is supported by Millennials in other key European markets: 41% of Spanish, 39% of Italian and 30% of French shoppers aged 16 to 24 voice similar concerns.
Not being able to select the products in person is also barrier for online grocery shopping, as 62% of Spanish, 49% of Italian, 48% of Polish and 41% of German shoppers aged 16 to 24 don’t like the fact that they are not able to choose products in person.

MINIMUM AMOUNT AND DELIVERY TIME THE BIGGEST HURDLES IN GERMANY

Spending extra money seems to be a problem in particular for thrifty Germans, as 47% of German shoppers aged 16 to 24 say they don’t like having to spend a minimum amount, while only 33% of Spanish, 25% of Polish, 23% of Italian and 19% of French consumers of the same age group agree.
Germans also seem to be the most impatient with home delivery, as almost two out of five (37%) German shoppers aged 16 to 24 say they currently aren’t shopping for groceries online as they don’t like having to wait for delivery. In comparison, only 21% of Polish, 19% of French, 18% of Spanish and 16% of Italian 16 to 24 year olds see this as a problem.
“Online grocery has had a tough start in Germany, which is owed in part to the country’s particularly high density of food stores and the dominance of discounters Aldi and Lidl, who have little incentive to push high-cost deliveries considering their already thin margins. However, consumers are growing accustomed to the benefits of digital in other retail settings and are beginning to expect them in grocery as well.” Regina adds.
But overall habit remains the biggest reason why European Millennials don’t shop for groceries online. According to Mintel research, over half of Polish (55%), Italian (55%), German (53%), Spanish (51%) and French (50%) shoppers aged 16 to 24 say they don’t shop for groceries online as they prefer to shop the way they are used to.
This is one of the reasons why physical stores are still so popular among European Millennials, with 97% of German, 97% of Italian, 95% of Spanish, 94% of Polish and 87% of French shoppers aged 16 to 24 having shopped in-store at a supermarket for groceries in the six month period prior to the Mintel survey.
Similarly, 95% of German, 92% of Polish, 90% of Spanish, 79% of Italian and 71% of French 16 to 24 year olds have shopped in-store at discounters such as Aldi or Lidl.
“While Europeans are gradually embracing online grocery shopping, there are still a significant number of consumers across major European markets who prefer to shop the way they are used to. The freshness of the products and lack of ability to choose products themselves is an important factor behind consumers not choosing online grocery shopping. This needs to be addressed by retailers by putting extra efforts into delivering the freshest products and possibly cutting delivery time.” Regina concludes.
*Took place in May 2016
**Who have shopped for groceries online in the six months prior to the survey
***Who have not shopped for groceries online in the six months prior to the survey
Online Food Startups Face Massive Competition, Three More Shut Down
It's been a rough few weeks for online food businesses. E-commerce presents a huge opportunity for retailers and foodservice establishments, but it's not always so simple to implement. Even the most promising ideas can have trouble getting off the ground in the super saturated online food space.
Three separate online food companies shut down in the past few weeks, mainly due to cash flow issues. Online farmers market Farmigo ceased its retail operations, saying it can no longer operate sustainably, reported Supermarket News. Farmigo offered online ordering and delivery of fresh food and groceries from small suppliers, much like a CSA (community supported agriculture) program. It operated in New York, New Jersey, Seattle-Tacoma and San Francisco.
The company does plan to continue to operate as a provider of software for farmers participating in CSAs while seeking partners to take over its logistics and delivery operations. It also posted a list of the manufacturers and farmers it worked with to encourage shoppers to continue supporting them.
It raised $26 million in funding since its founding and was operating in 350 neighborhoods with more than 150 producers. Its sales increased by 500% in 2015 and it was projected to triple again within six months, but obviously that never came to fruition.
Gourmet meal delivery service The Fresh Diet also shut down its business, somewhat abruptly, without informing most employees and clients, reported Miami Herald. The company was sold back to its founder Zalmi Duchman in March 2016, but, according to his general counsel Daniel Gielchinsky, it was too late to turn the business around. Gielchinsky noted that the previous owner, Innovative Food Holdings, took on too many employees and grew the company too quickly without a set expansion plan. The company is now filing for an assignment for benefit of creditors, the equivalent of a bankruptcy within Florida.
Lastly, restaurant delivery company Take Eat Easy ceased its operations and plans to file for "juridical restructuring" after it failed to raise a Series C round and has run out of money, reported TechCrunch. The Brussels-based company could still find a buyer, but funding did not come soon enough in an incredibly crowded restaurant delivery market. It began its Series C round in October 2015, but by March 2016 it had already been turned down by a whopping 114 VC funds.
A "French, state-owned, logistics group," thought to be GeoPost, the delivery subsidiary of Le Groupe La Poste, was in talks to invest $33 million in Take Eat Easy, but that deal fell through and CEO Adrien Roose noted, "there was no plan B."
Over the past year, Take Eat Easy reached 30% monthly growth and scaled its customer base from 30,000 to 350,000. Its service was strongest in France, as well as its home country of Belgium.
Innovative food startups may still be considered a popular investment for venture capital firms, but with the sheer enormity of the online food market today, every single business can't possibly get the funding they need. A unique idea and a good business plan is sometimes just not enough to compete in the uber-saturated industry, and companies may have to get a little more financially creative to come out on top
How Millennials Shape All Generations' Eating Habits
Posted on September 27, 2016 by Jennette Zitelli
Millennials in America now add up to about 75 million people, which is definitely a sizable chunk of the consumer market. They (myself included) are a notoriously fickle bunch, that place a lot of importance on sustainability, traceability and creativity. While we have noted that too much emphasis may be put on appealing to Millennials, when there are other demographics that are just as influential, it is important to still keep track of what Millennials are buying and what might keep them as loyal customers.
America's Millennials are now purchasing organic products more than any other demographic, according to the Organic Trade Organization's (OTA) U.S. Families' Organic Attitudes and Beliefs 2016 Tracking Study. Fifty-two percent of U.S. parents that buy organic products are Millennials, and they often purchase a lot of such products. Generation X parents buying organic products only totaled 35% of the total, while Baby Boomers accounted for only 14%.
Laura Batcha, CEO and Executive Director of the OTA, notes. “Our survey shows that Millennial parents seek out organic because they are more aware of the benefits of organic, that they place a greater value on knowing how their food was grown and produced, and that they are deeply committed to supporting a food system that sustains and nurtures the environment.”
OTA surveyed more than 1,800 households across the country with at least one child under the age of 18. The study found 82% of U.S. families say they buy organic sometimes, with only 18% noting they never buy organic.
Millennial shoppers aren't just shaping organic food buying, but food shopping overall. Three-quarters of shoppers buy deli items in their regular supermarket, while 77% of people buy dairy items and 59% buy bakery items, according to the Private Label Manufacturers Association's (PLMA) How America's Eating Habits Are Changing. One third "always or frequently" purchase heat-and-eat food from the supermarket, 29% buy pick up prepared or ready-to-eat food, and 27% buy grab-and-go prepared food items.
These eating habits are being driven by Millennials, according to PLMA, who are shaping the way grocers operate by introducing a distinctive way of eating. Eating is largely unscheduled for the generation, and they look for on-the-go food items. They are known to be nibblers and experimenters, so in-store sampling and demonstrations are popular. Millennials are also more loyal to stores than previous generations, with 90% doing their regular grocery shopping in only one or two stores.
These trends aren't limited to America, either. Millennials are leading online grocery shopping sales in Europe as they increasingly opt for the stress-free and time saving convenience, according to Mintel. Almost half of Germans aged 16 to 24 shopped online for groceries from a retailer with physical stores in the six months prior to the firm's survey, as did 46% of those in Spain, 44% of those in Poland and 33% of those in France. Millennial shoppers find online grocery shopping to be less time consuming, and they also find it to be easier to stick to a budget when shopping online.
However, there are some concerns among the age group about the freshness of online foods, with 51% of Polish and 50% of German shoppers aged 16 to 24 saying they are concerned about the quality or freshness of products when using online services. Minimum spending amounts are also a turn-off, as well as waiting for delivery.
While companies should make sure to keep all demographics in mind when marketing and designing products and services, Millennials are a huge cohort and an influencer of other generations' habits, so it is still important to keep their needs in mind when introducing new ideas.

Thursday, September 29, 2016

Pusateri's

From right to left: Ida Pusateri along with her brother Frank Luchetta, and her children Sam, Rosanna, and Paolo, at the Saks Food Hall by Pusateri’s at Sherway Gardens, Toronto.
PUSATERI’S FINE FOODS
All in the family.http://nuvomagazine.com/wp-content/themes/nuvo/assets/images/mail.svg
·         Writer Deirdre Kelly
·         Photographer Jaime Hogge
It’s just before lunch, and the family that owns Pusateri’s Fine Foods is about the only one not eating. A photographer has commandeered Ida Pusateri and her brother Frank Luchetta to pose for a portrait with Ida’s three grown children—the next generation to run the family-owned Toronto business—inside the food hall they opened at Saks Fifth Avenue at Sherway Gardens in March. The sparkling white marble-and-glass emporium measures 18,500 square feet, and almost every inch of it is a foodie’s delight, from the jars of FunkyChunky pretzels and more than 22 varieties of olives to the lineup for Pingue Prosciutto at the meat counter. Ida watches the flow of customers contentedly filling up their carts, her eyes moving silently. She doesn’t miss a thing.
Ida, who turns 58 in October, talks in plain terms about how the business has gone from being a mere fruit stand in 1963 to a luxury grocery chain. Then as now, the company’s success depends on keeping it fresh. “We travel all the time, to Europe and the U.S., to see what’s new and exciting out there and what we feel is the next big thing,” comments Ida, ordering an antipasto platter to begin the afternoon’s long-overdue meal. No one is going hungry at Pusateri’s, not if Ida can help it. “From the beginning, it’s been all about bringing the best to consumers and giving them choices,” she continues, carefully chewing her words. “We offer betterchoices. That’s what we stand for.”
Toronto’s beloved gourmet food emporium began as a fruit stand in 1963. Their distinguishing attribute, then and now? Stocking the best stuff.
Pusateri’s, to use a food term, is rising. The Sherway Gardens location is just the first stage of an expansion plan that will see the owners make significant changes in how they run their business. Currently there are three Pusateri’s Fine Foods locations: Yorkville, Bayview Village, the newly opened Oakville Place (July), and that number will grow to four once the Avenue Road location reopens. Another Saks Food Hall by Pusateri’s will also open this fall in the Eaton Centre, measuring 25,000 square feet. With the new Oakville location (measuring 18,500 square feet), the Avenue Road rebuild, and additional expenses, total estimates are said to cost $45-million. “It’s pretty much 80 per cent funded by our family,” Ida says. (The remaining 20 per cent was not disclosed.) Besides a full-service grocery store with an on-site bakery, the Saks Food Hall by Pusateri’s concept includes Pusateri’s Café, with coffee, tea, and fresh-baked goods; seating for sit-down meals; and an undulating bar serving cocktails and Veuve Clicquot. The food hall is fully licensed and shoppers can buy their beef tenderloin medallions and boxes of salted crackers with a drink in hand, if they feel so inclined. It merges with the Saks retail space, so presumably one could also be sipping bubbly while buying an item of clothing. The mix of food and fashion, first realized with the opening of the Bayview location, was Ida’s brother’s idea.
“I called out of the blue and said, ‘I could build you the Harrods of North America,’ and Richard Baker [governor and executive chairman of HBC, the company that owns Saks] totally got it,” says Frank, a genial man who, as company president and CEO for the past 20 years, has been working closely with his sister and her children to move Pusateri’s forward. “Pusateri’s has an incredibly strong following in the Toronto market and Saks is new here,” Frank continues. “We can help draw the people in. We cater pretty much to the same clientele, so it made sense for Saks to align with us. We hope to follow them next into Saks stores in the U.S. It’s a new relationship for us, but I think it’s working.” Baker seconds that opinion. “Frank and his team have created a world-class gourmet food destination with Pusateri’s. When we were thinking about adding food halls to our Saks Fifth Avenue stores, we knew that Frank would deliver an exciting experience for our customers and help us create unique destinations.”
The food hall merges with the Saks retail space, so presumably one could also be sipping bubbly while buying an item of clothing.
The family dynamic and relationships are key to understanding Pusateri’s and how the company works. Frank is Ida’s younger brother, by 17 months. There’s an older sibling, but he did not provide Ida with an alibi when, as a young woman finishing up at Nelson A. Boylen Collegiate Institute in Toronto, she began to be courted by Cosimo Pusateri, a man six years her senior. That was in 1979, and Ida had just turned 20. She worked the register at a jewellery store in Corso Italia, the area in Toronto that was home to the city’s wave of Italian immigrants that arrived in the 1950s. Ida is a daughter of some of those immigrants, ones from Calabria to be precise, raised in a strict working-class Catholic family where her dad was a labourer and her mom was a homemaker whose Italian staples—including homemade meatballs, lasagna, and roasted peppers—launched the prepared foods division of Pusateri’s in the 1980s. Cosimo had spied Ida in Corso, where he was running the family fruit stand, and was taken in by her large brown eyes, long dark hair, and slender frame, asking a mutual friend to set them up. Ida immediately rejected his request, delivered in person, to go out with him. “I said, ‘I’m Italian. I don’t go out.’ And he said to me, ‘I am Italian too, and I have a sister. I get it. But you’re still going out with me,’ ” recalls Ida, animatedly describing the first time she laid eyes on her future husband. “He wouldn’t take no for an answer.”
Together they schemed about how they could see each other without Ida catching hell from her parents. The plan involved her brother Frank. Ida would tell her parents she was accompanying her kid brother on a walk to the park or the corner store—anywhere—so as to get out of the house unsupervised. Frank went along with the ruse. When Ida and Cosimo married in 1980, she gained an adoring spouse—Cosimo is on record as calling Ida “the perfect wife”—while Frank got a trusted brother-in-law with whom he had bonded during the many late afternoons he spent hanging around, watching the two fall in love. Just before dying in 1995 of colon cancer, Cosimo asked Frank to guide the business forward, and to take care of his family. “We were very close,” says Frank. “And he asked me to take over and see through the plans we used to talk about together. He always wanted Pusateri’s to be a great store, and I said I wouldn’t let him down.”
“We offer better choices. That’s what we stand for.”
That was more than 20 years ago, but Cosimo’s presence still looms large at Pusateri’s today. Listening to Frank and Ida talk so passionately about him leaves the impression of a pioneering food industry entrepreneur whose creativity was as boundless as his work ethic. The oldest son of Sicilian immigrants Salvatore and Rosaria Pusateri, Cosimo was also born in Sicily, moved to Canada at the age of eight, and left school when he was 14. His non-English-speaking father needed a translator to help him with the family fruit stand; Cosimo was it. He learned on the job, waking early to accompany his father on 3 a.m. visits to the Ontario Food Terminal, where the goal was to be first in line in order to get the freshest produce. Important relationships—that word again—were forged with distributors this way. This is also what distinguished Pusateri’s (which began as that fruit stand in 1963) from other mom-and-pop grocery stores: they had the best stuff. In the mid-1980s, when the Italian immigrants who were the store’s original customers started moving out of Corso to more upscale neighbourhoods, Cosimo had the idea to follow the money. He purchased a 6,000-square-foot building at the corner of Lawrence and Avenue Road and in 1986 began creating his own food empire. The location, since expanded to 15,000 square feet of retail space, catered to upper-class non-Italians, who were drawn to the store’s deluxe and imported offerings like $100 cans ofcaviar and $62 bottles of rare balsamic vinegar. Cosimo’s gamble paid off.
Within a decade, Pusateri’s was selling $25-million in groceries a year, a number that had doubled by 2008. Cosimo had wanted to expand, and not even his death was going to interfere with his ambition. In 2003, Ida and Frank, working in tandem with Cosimo’s sister Toni Trozzo and her husband, Sam, opened a new $5-million location in Toronto’s posh Yorkville. And then the problems started. First, the Trozzos took Ida and Frank to court in a bid to take over the business. But Cosimo’s 52 per cent interest, passed down to his wife after his death, enabled Ida to get the upper hand in that highly publicized battle. In 2006, she won a court-appointed auction for possession of Pusateri’s, buying out Cosimo’s sister. She and her in-laws have rarely spoken since.
In 2010, Ida and Frank opened a Pusateri’s Fine Foods at the Bayview Village Shopping Centre, demonstrating their resolve to go forward. But then more difficulties followed in 2011, when the Avenue Road flagship was forced to close after Toronto Public Health uncovered an infestation of rodents and cockroaches. The story was widely reported on, with Pusateri’s suffering yet another bout of bad publicity. Ida and Frank, along with then-general manager John Mastroianni—a store veteran with more than 25 years of service who now serves as vice-president of merchandising—attributed the breach to human error during machine maintenance and cleanup, and vowed to fix it. They hired an inspector from Public Health to work with them to ensure their facility was cleaner than clean and then reopened. The Avenue Road location shut down again in August 2015 when a devastating fire tore through the building, causing millions of dollars in damage. The family has been rebuilding the store with a reopening date later this fall; the new look will include a licensed upper level restaurant where the company’s head office once was, as well as an open kitchen where chefs cook for customers. “From a bad thing, we’ve gone to a good thing,” says Ida, who chooses to see the difficulties of the past few years as a blessing in disguise. “It’s taken us to a different level.”

Helping to grow the business upwards are Ida and Cosimo’s children, Sam, Rosanna, and Paolo Pusateri—who are adults now. During the conversation, they sit respectfully, listening to the heads of the family business speak about the past, the present, and their plans for the future. Rosanna, who oversees the design of the new stores, says her contribution will be to “visually bring a new aesthetic to the business, a more modern look and feel that will also speak to our heritage.” Meanwhile, Paolo is focusing his attentions on the marketing side of the business and is using digital media to give Pusateri’s an online presence to complement what is on offer in the stores. “Marketing wasn’t a part of our business before. We relied more on our reputation,” Paolo says. “But now we want to make sure we have a voice, and we are working really hard to make sure that voice is speaking to our objectives and love of food.” “But it’s not a corporately run store, it’s still a hands-on business,” interjects Frank. “It always goes back to our roots,” says Ida, getting the final word.

One of the world's largest candy makers is hiring meteorologists to deal with climate change

It turns out, climate change could have an impact on the world's supply of chocolate. But one candy maker is already hard at work trying to prevent anything bad from happening. 
In fact, Mars Chocolate, the maker of candy brands like M&M, Snickers, and Dove, employs a small team of meteorologists who are dedicated to analyzing the impacts of the weather on the chocolate business.
"Our meteorologists conduct analysis of weather patterns around the world to help Mars make decisions when it comes to the supply chain and sourcing of some of the ingredients for the world’s most beloved chocolates," Katie Johnson, a senior manager on the commercial applied research team, told Business Insider.
Creating chocolate candies involves many ingredients. The Mars meteorologists are tasked with examining current weather patterns, then working with other departments to examine how these patterns could impact suppliers of all of these ingredients. They take note of upcoming events that could create problems, like a storm that could delay shipping, as well as larger issues like climate change.
"Weather has a much larger, longer-term impact on business that isn’t getting the attention it deserves," says Greg Harnish, Mars Chocolate North America's commercial vice president.  
Take almonds, for example. Most Mars almonds are grown in California, Harnish says, despite the state's dry summers and almonds' sizeable water requirements. Meteorologists study El Niño and La Niña weather patterns to predict whether the almonds will get the water that they need.
While much of the Mars meteorologists' jobs is to focus on near-term weather forecasting, they also look months and years in the future, examining issues such as global warming.
"Global  threats like climate change affect us all, and we want to help foster a planet that is healthy and thriving," says Johnson.
The ability to analyze California rainfall allows meteorologists to predict things such as almonds' quality and supply. Climate change threatens to cloud that analysis, as weather patterns become more unpredictable. 
Mars, chocolate, M&Ms, office spaceCourtney Verrill
"If climate conditions in these growing areas begin to change over time, it may influence both the supply and quality available of an ingredient that we use in our products," Johnson says. "Anticipating what the climate will be like 10, 20, or even 100 years from now is difficult, though the better we can understand what the different climate scenarios and risks to our supply chain are, the more prepared we can be in the future."
Beyond creating problems in predicting weather, climate change could be "devestating" to the chocolate business, according to the nonprofit Rainforest Alliance. Cocao farmers face a higher risk of disease, flooding, and landslides as a result of climate change. C limate change could render areas that were once optimal for growing cocao unusable, Climate.gov reports.
Johnson says that Mars is working to combat climate change by reducing carbon emissions, with a pledge to cut all greenhouse gas emissions from operations by 2040.
Despite the fact that companies love to blame the weather for poor sales, customers often forget how much long-term weather trends impact every aspect of the candy business, from almond harvesting to delivery at grocery stores. So, next time you pop an M&M into your mouth, remember — meteorologists helped make the candy a reality.
Grocery Prices Are Plunging

September 27, 2016 — 5:01 AM EDT

·         Wal-Mart effect combines with deflation to eat away at margins
·         Two-for-one sirloins? How about a nice deal on a wagyu steak?
Call it the Great Grocery-Store Giveaway of 2016.
In Austin, Texas, Randalls slashed prices for boneless beef ribs by 40 percent, to $3.99 a pound. Not to be outdone, the H-E-B grocer down the street charged $1 a pound less. Not long ago, Albertsons advertised a deal you don’t normally see on your finer cuts of meat: “buy 1 get 1 free” specials on “USDA Choice Petite Sirloin Steak.”
And what does $1 buy these days? In North Bergen, New Jersey, you could pick up a dozen eggs at Wal-Mart. OK, the price was actually $1.14. A mile away, check out Aldi, the German supermarket discounter, which can actually break the buck -- 12 eggs for 99 cents. A year ago, you would have paid, on average,three times that price.
In a startling development, almost unheard of outside a recession, food prices have fallen for nine straight months in the U.S. It’s the longest streak of food deflation since 1960 -- with the exception of 2009, when the financial crisis was winding down. Analysts credit low oil and grain prices, as well as cutthroat competition from discounters. Consumers are winning out; grocery chains, not so much. Their margins and, in some cases, their stock prices, are taking a hit.
Eggs and beef have have grown especially inexpensive, and it isn’t only an American phenomenon: In England, Aldi recently offered its prized 8-ounce wagyu steaks from New Zealand for about $6.50 -- a little more than the price of a pint of beer.
“The severity of what we’re seeing is completely unprecedented,” said Scott Mushkin, an analyst at Wolfe Research who has studied grocery prices around the country for more than ten years. “We’ve never seen deflation this sharp.”

Mushkin, who researches local markets, recently found that prices of a typical basket of grocery items in Houston, had fallen almost 5 percent over the past year.
He credits, in part, the discerning behavior of shoppers like Manny Sinclair. On a weekday lunch break, the 43-year-old contractor stopped by a Wal-Mart in Secaucus, New Jersey, to pick up turtle food and paper towels.
Patient Shoppers
Sinclair typically buys groceries at his local ShopRite but has recently noticed the steals he now finds at discounters. He glanced at the meat case, where a 12-pack of “Angus steak burgers” fetched $15.82 and grass-fed ground beef could change hands for $4.96 a pound.
Sinclair was intrigued but, in the classic logic of a shopper in an age of deflation, figured he might find even lower prices elsewhere. Along with two Wal-Marts, a Target and an Aldi, the area even offers a Family Dollar that features a small refrigerated section.
“Wherever I find the good deals -- that’s where I’m at,” Sinclair said.
At first, falling prices helped grocers. Low-cost commodities pushed down the tab for meat and packaged food and boosted profits. Now, deflation has turned ugly for the industry. Led by Wal-Mart, retailers are pushing down prices, eating away at their profit margins.
‘Irrational Pricing’
“It starts to border on irrational pricing,” said Jennifer Bartashus, an analyst at Bloomberg Intelligence. “People are lowering prices just to draw traffic, without thinking about their margins.”
Supermarkets are facing competition not just from Wal-Mart Stores Inc. and Aldi but also dollar stores and online retailer Amazon.com Inc. It could get worse. Lidl, one of Aldi’s German competitors, is building three distribution centers on the East Coast and plans to open U.S. stores by 2018. Even Whole Foods Market Inc. -- famously derided as “Whole Paycheck” -- is trying to compete on price through digital coupons and promotions on items such as beer and produce.

Bottom of Form
In recent years, Kroger Co. -- the largest grocery store chain in the U.S., with nearly 2,800 stores -- cut prices to compete with Wal-Mart and managed to increase its market share and sales. But deflation has been hard on the supermarket chain. The company’s stock has lost more than a quarter of its value this year, as price cuts weighed on profits. Chief Executive Officer Rodney McMullen expressed frustration that many customers don’t even notice.
CEO’s Lament
“The other thing that’s always hard is getting your message out, because it’s fascinating – in our research, most people are saying their basket of goods costs more money,” McMullen said on a call with analysts this month.
The likely reason for McMullen’s lament: Food, on average, makes up only about 15 percent of a consumer’s budget. Except for gas and other energy-related items, prices for most other goods are going up, if only modestly.
At the same time, restaurant food can still be pricey. The situation makes for some strange contrasts: In Chicago, a pound of Dunkin’ Donuts coffee sells for $4.99 at a Jewel-Osco store, less than the cost of a venti pumpkin spice frappuccino at Starbucks. Albertsons Cos. owns Jewel-Osco, as well as Randalls, home of the cheap Texas ribs.
Elena Rosa, a 63-year-old retired health aide, was blasé when she steered her shopping cart past the refrigerator case at Aldi in North Bergen, New Jersey. She paused, noting a dozen eggs for less than $1 -- one of the great food deals of recent memory.
“That’s a good price,” she said, before moving on without buying a carton.


Wednesday, September 28, 2016

Which natural food trends are poised to succeed in the mainstream?

by Monica Watrous
Share This:
Search for similar articles by keyword: [Natural], [Organic], [Probiotics]
Expo East natural trends: grass-fed beef and compostable packaging
Grass-fed meat and compostable packaging have potential to succeed in the mainstream.
BALTIMORE — The ideas, innovations and values born out of the natural products industry are resonating with mainstream consumers, said Eric J. Pierce, director of business insights at New Hope Network.
Eric Pierce, New Hope
Eric J. Pierce, director of business insights at New Hope Network
“Increasingly we’re finding shelf space for our products in conventional retailers,” Mr. Pierce said during a presentation at Natural Products Expo East, held Sept. 21-24 in Baltimore. “We’re finding more conventional shoppers, more mainstream shoppers finding relevance in our products.”
The challenge for manufacturers, retailers and investors is predicting which product concepts will expand to gain mainstream acceptance. To identify these opportunities, New Hope Network tested more than 680 product concepts with 1,000 consumers representative of the U.S. population — not just the Whole Foods shopper, Mr. Pierce said. Two primary metrics were analyzed: purchase intent (“how likely am I to buy this product?”) and market prediction (“how likely are others to buy this product?”). Based on the metrics, eight trends emerged as having the greatest potential to succeed in the mainstream.
Among them are grass-fed meat and dairy, compostable packaging, probiotics and prebiotics, and mission-based brands. Of the latter trend, Mr. Pierce said, “These are the brands that work to stand out in the marketplace by standing for something, standing for a purpose.”
Expo East natural trend: cognitive health
Steaz Organic Energy sparkling beverages and Hemp2o water fall into the "brain health" trend.
Another trend gaining favor among mainstream consumers is brain health, a concept coming on the heels of an increased interest in heart and gut health.
“As we experience an aging population and more stress in our lives, many are finding themselves looking for more energy or mental agility or acuity,” he said. “So the idea of cognitive health and support is something that is growing in terms of attention. There is an array of different products that fit into this topic of brain health.”
Examples include Steaz Organic Energy sparkling beverages with green tea extract, associated with reduced inflammation and increased mental alertness, and Hemp2o water infused with hemp seed extract, which is linked to improved cognitive function.
Expo East natural trend: hidden vegetables
Hidden vegetables are a theme among Veggie Fries, MadeGood granola bites and Good Health Veggie Pretzels.
Hidden vegetables is another product concept shown to resonate with conventional shoppers. Examples at Expo East included Veggie Fries, a line of frozen french fries blended with broccoli, carrots and chickpeas; MadeGood granola bites with a hidden serving of vegetables; and Good Health Veggie Pretzels, made with spinach, broccoli, carrots, tomatoes, beets and shiitake mushrooms.
“I think what’s powerful here is to recognize that fueling this is a growing consumer desire to consume more plants in their diets and to eat more healthy and plant-based foods,” Mr. Pierce said.
The rise of paleo-positioned products also has the potential for mainstream success, but, Mr. Pierce said, “I’m not suggesting that CrossFit gym memberships are about to skyrocket.”
Expo East natural trend: Paleo
Paleo-positioned products such as Cappello’s grain-free pasta, Hu Chocolate bars and Three Jerks Jerky are on the rise.
Rather, mainstream consumers are identifying with the values of the paleo lifestyle, which emphasizes whole, minimally processed foods, no refined sweeteners and an avoidance of grains.
“These things are resonating with consumers, even if they aren’t a strict adherent to a paleo diet or even truly understand what the paleo diet is,” Mr. Pierce said, citing as examples Cappello’s grain-free pasta made with almond flour, Hu Chocolate bars featuring almond butter and puffed quinoa, and Three Jerks Jerky, made with simple ingredients and no MSG or nitrates.
Local sourcing represents another trend gaining traction beyond the natural segment, with such brands as Community Seafood and Three Twins Ice Cream touting locally sourced ingredients.
Expo East natural trend: companies with a mission
Local sourcing is a growing trend, with such brands as Three Twins Ice Cream touting locally sourced ingredients.
 
“When you talk to consumers about the local movement you might find a much broader array of issues that are important to consumers — supporting local communities, knowing where your food comes from, having that more intimate connection to your food,” Mr. Pierce said. “It’s this idea of telling the story where your food comes from and having sourcing be local to your manufacturing, despite the fact that you may have outgrown your initial local distribution footprint. Companies can scale and in many ways remain local.”