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Kroger: Answering call for simplicity helping win natural share

Kroger’s share of natural and organic foods is growing faster than the category nationwide, company officials said Wednesday, citing responsiveness to changing consumer tastes and an expanding selection.

Kroger supermarkets stock some 17,000 to 20,000 natural and organic SKUs (of 70,000 overall) today.  As the category has gone “mainstream” Kroger has been changing shelf tags so as to point out product attributes like GMO Free and USDA Organic that are helping to drive the growth, Jill McIntosh, VP of natural foods for Kroger, said in a presentation at the retailer’s investor conference in Cincinnati, Wednesday. 

“It used to be that people looked at the nutritional panel to see if a product was good for them,” McIntosh said. “Now, more and more, consumers are looking at the ingredient list to see if its short, simple and actually inludes things they can pronounce before they want to eat it. This is a food revolution driven by the millennial customer.”

Mike Donnelly, SVP of merchandising for Kroger, said customer data indicates that two of every five households buys natural foods today. And though their level of engagement varies, “through insight we can see that journey, and that gives us the opportunity to take targeted offers and really refine them to those customers’ needs as they go forward.”


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Customers, Donnelly added, “believe they can manage their health through proper nutrition, and that has a lot of ramifications at the shelf.” This is particularly evident in Kroger’s natural and organic private brand, Simple Truth, which is riding customer demand for ingredient simplicity  to explosive growth, Donnelly said.

Gil Phipps, Kroger’s VP of corporate brands, in a separate presentation said the brand had growth by 30.7% in unit sales through the first half of the fiscal year behind 97 new items. He said the brand is on-track to reach $ 1 billion in sales this year, less than two years from its founding.

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Consumer Goods Forum Issues Call to Action

PARIS — The Consumer Goods Forum (CGF) here issued a call to action to the CPG and retail industry to address two “megatrends” — digitization and resource scarcity — identified in a new report.

The report, “Future Value Chain 2022: Industry Initiatives Address Challenges of the Digital World and the Fight for Resources,” asks the industry to implement “critical initiatives to safeguard the future and drive change across the industry.” It was published today jointly by CGF and Capgemini here and is a product of CGF’s Future Value Chain program, established over the past seven years with a focus on extensive industry research and analysis.


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“Digitization is changing consumers’ lives and shopping behavior. At the same time, global demand for resources like food, water and energy is rising rapidly with the potential for demand to outstrip supply in the next decade,” said Thomas Storck, member of the Management Board, merchandising and multi-channel retailing officer, Galeria Kaufhof, a subsidiary of Metro Group, and co-chair of The Consumer Goods Forum’s Emerging Trends Steering Committee, in a statement. “The industry must work together to develop concrete milestones to respond to these megatrends and build an action plan to move these from theory to reality.”

More news: CCF Tapes Boer, Bulcke as Co-Chairs

The report identified three initiatives to address the upcoming industry challenges:

Consumer Engagement Protocol, which will focus on establishing guidelines for digital engagement with consumers. It will examine the power of user-generated and social media technology platforms, including the need to mitigate risks from privacy invasion. “Increasingly, companies recognize the requirement to be proactive vs. being regulated in this area, but currently there is no voluntary global commitment concerning this in the consumer goods and retail industry,” said CFG.

Next-Generation Product Identification, which will focus on providing the industry and the consumer with accurate product information by using new technology capabilities for product identification to replace the current bar code.

Sustainable Packaging Coalition, which is designed to establish a coalition of companies to work together on non-competitive topics to improve the sustainability of packaging across the different value-chain stages.

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Consumer Goods Forum Issues Call to Action

PARIS — The Consumer Goods Forum (CGF) here issued a call to action to the CPG and retail industry to address two “megatrends” — digitization and resource scarcity — identified in a new report.

The report, “Future Value Chain 2022: Industry Initiatives Address Challenges of the Digital World and the Fight for Resources,” asks the industry to implement “critical initiatives to safeguard the future and drive change across the industry.” It was published today jointly by CGF and Capgemini here and is a product of CGF’s Future Value Chain program, established over the past seven years with a focus on extensive industry research and analysis.


CONNECT WITH SN ON TWITTER

Follow @SN_News for updates throughout the day.


“Digitization is changing consumers’ lives and shopping behavior. At the same time, global demand for resources like food, water and energy is rising rapidly with the potential for demand to outstrip supply in the next decade,” said Thomas Storck, member of the Management Board, merchandising and multi-channel retailing officer, Galeria Kaufhof, a subsidiary of Metro Group, and co-chair of The Consumer Goods Forum’s Emerging Trends Steering Committee, in a statement. “The industry must work together to develop concrete milestones to respond to these megatrends and build an action plan to move these from theory to reality.”

More news: CCF Tapes Boer, Bulcke as Co-Chairs

The report identified three initiatives to address the upcoming industry challenges:

Consumer Engagement Protocol, which will focus on establishing guidelines for digital engagement with consumers. It will examine the power of user-generated and social media technology platforms, including the need to mitigate risks from privacy invasion. “Increasingly, companies recognize the requirement to be proactive vs. being regulated in this area, but currently there is no voluntary global commitment concerning this in the consumer goods and retail industry,” said CFG.

Next-Generation Product Identification, which will focus on providing the industry and the consumer with accurate product information by using new technology capabilities for product identification to replace the current bar code.

Sustainable Packaging Coalition, which is designed to establish a coalition of companies to work together on non-competitive topics to improve the sustainability of packaging across the different value-chain stages.

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Directors reiterate call to end Market Basket spat

Independent directors of Demoulas Super Markets on Wednesday said they have still received no response to their offer last week to put ousted Market Basket president Arthur T. Demoulas and protesting associates back to work, saying the nearly month-long job action was “a no-win situation.”

The statement also applauded Massachusetts Gov. Deval Patrick, who in a press event Wednesday reportedly encouraged workers to return to work as soon as possible.

The directors last Friday said they had invited Arthur T. Demoulas and his senior staff to return to the company to work collaboratively with current management while he completes negotiations to acquire shares in the chain from majority shareholders. Demoulas has so far rebuffed that offer while employees — who have demanded his return to office — have continued staying away from jobs at Market Basket’s headquarters and warehouse.

That job action, along with an associated consumer boycott, has crippled sales at the chain.

Separately, new management has told some 200 employees to report to work by Friday or they would be considered to have abandoned their jobs and removed from the company. Such messages went out with a Monday deadline to additional workers Wednesday, reports said. 

“Today, we applaud Governor Patrick’s statement encouraging all associates to return to work as soon as possible,” the independent board member statement said. “We, as independent board members, cannot force any shareholders to buy or to sell, nor can we control the timing of their decisions. All we seek is to get our Associates back to work earning a steady income so our customers can go back to shopping. In return, we can’t offer a resolution to the deal negotiations, but have and will continue to offer a way to return to normal while negotiations continue. Playing with fire that will hurt us all – associates, customers, and communities – is a no-win situation, and we all need it to end.


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“It’s well past the time when anyone can frame the crisis as ‘us vs. them,’ or a ‘family feud.’ There are too many families being impacted by this. Rather, for good or ill, many are being asked to sacrifice their pay, their jobs, and their ability to shop at affordable prices in their own neighborhoods, against the hope that it will help one side achieve a preferred business deal rather than another. No one should ever hold 25,000 associates, 2 million shoppers and our local economies as leverage in a business negotiation.

“It is time to get everyone back to work. It’s been five days since we last proposed a solution that would work toward getting everyone back and bring the crisis to an end. That’s five days too long, and now time is running out.”

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Directors reiterate call to end Market Basket spat

Independent directors of Demoulas Super Markets on Wednesday said they have still received no response to their offer last week to put ousted Market Basket president Arthur T. Demoulas and protesting associates back to work, saying the nearly month-long job action was “a no-win situation.”

The statement also applauded Massachusetts Gov. Deval Patrick, who in a press event Wednesday reportedly encouraged workers to return to work as soon as possible.

The directors last Friday said they had invited Arthur T. Demoulas and his senior staff to return to the company to work collaboratively with current management while he completes negotiations to acquire shares in the chain from majority shareholders. Demoulas has so far rebuffed that offer while employees — who have demanded his return to office — have continued staying away from jobs at Market Basket’s headquarters and warehouse.

That job action, along with an associated consumer boycott, has crippled sales at the chain.

Separately, new management has told some 200 employees to report to work by Friday or they would be considered to have abandoned their jobs and removed from the company. Such messages went out with a Monday deadline to additional workers Wednesday, reports said. 

“Today, we applaud Governor Patrick’s statement encouraging all associates to return to work as soon as possible,” the independent board member statement said. “We, as independent board members, cannot force any shareholders to buy or to sell, nor can we control the timing of their decisions. All we seek is to get our Associates back to work earning a steady income so our customers can go back to shopping. In return, we can’t offer a resolution to the deal negotiations, but have and will continue to offer a way to return to normal while negotiations continue. Playing with fire that will hurt us all – associates, customers, and communities – is a no-win situation, and we all need it to end.


CONNECT WITH SN ON TWITTER

Follow @SN_News for updates throughout the day.


“It’s well past the time when anyone can frame the crisis as ‘us vs. them,’ or a ‘family feud.’ There are too many families being impacted by this. Rather, for good or ill, many are being asked to sacrifice their pay, their jobs, and their ability to shop at affordable prices in their own neighborhoods, against the hope that it will help one side achieve a preferred business deal rather than another. No one should ever hold 25,000 associates, 2 million shoppers and our local economies as leverage in a business negotiation.

“It is time to get everyone back to work. It’s been five days since we last proposed a solution that would work toward getting everyone back and bring the crisis to an end. That’s five days too long, and now time is running out.”

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Directors reiterate call to end Market Basket spat

Independent directors of Demoulas Super Markets on Wednesday said they have still received no response to their offer last week to put ousted Market Basket president Arthur T. Demoulas and protesting associates back to work, saying the nearly month-long job action was “a no-win situation.”

The statement also applauded Massachusetts Gov. Deval Patrick, who in a press event Wednesday reportedly encouraged workers to return to work as soon as possible.

The directors last Friday said they had invited Arthur T. Demoulas and his senior staff to return to the company to work collaboratively with current management while he completes negotiations to acquire shares in the chain from majority shareholders. Demoulas has so far rebuffed that offer while employees — who have demanded his return to office — have continued staying away from jobs at Market Basket’s headquarters and warehouse.

That job action, along with an associated consumer boycott, has crippled sales at the chain.

Separately, new management has told some 200 employees to report to work by Friday or they would be considered to have abandoned their jobs and removed from the company. Such messages went out with a Monday deadline to additional workers Wednesday, reports said. 

“Today, we applaud Governor Patrick’s statement encouraging all associates to return to work as soon as possible,” the independent board member statement said. “We, as independent board members, cannot force any shareholders to buy or to sell, nor can we control the timing of their decisions. All we seek is to get our Associates back to work earning a steady income so our customers can go back to shopping. In return, we can’t offer a resolution to the deal negotiations, but have and will continue to offer a way to return to normal while negotiations continue. Playing with fire that will hurt us all – associates, customers, and communities – is a no-win situation, and we all need it to end.


CONNECT WITH SN ON TWITTER

Follow @SN_News for updates throughout the day.


“It’s well past the time when anyone can frame the crisis as ‘us vs. them,’ or a ‘family feud.’ There are too many families being impacted by this. Rather, for good or ill, many are being asked to sacrifice their pay, their jobs, and their ability to shop at affordable prices in their own neighborhoods, against the hope that it will help one side achieve a preferred business deal rather than another. No one should ever hold 25,000 associates, 2 million shoppers and our local economies as leverage in a business negotiation.

“It is time to get everyone back to work. It’s been five days since we last proposed a solution that would work toward getting everyone back and bring the crisis to an end. That’s five days too long, and now time is running out.”

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Directors reiterate call to end Market Basket spat

Independent directors of Demoulas Super Markets on Wednesday said they have still received no response to their offer last week to put ousted Market Basket president Arthur T. Demoulas and protesting associates back to work, saying the nearly month-long job action was “a no-win situation.”

The statement also applauded Massachusetts Gov. Deval Patrick, who in a press event Wednesday reportedly encouraged workers to return to work as soon as possible.

The directors last Friday said they had invited Arthur T. Demoulas and his senior staff to return to the company to work collaboratively with current management while he completes negotiations to acquire shares in the chain from majority shareholders. Demoulas has so far rebuffed that offer while employees — who have demanded his return to office — have continued staying away from jobs at Market Basket’s headquarters and warehouse.

That job action, along with an associated consumer boycott, has crippled sales at the chain.

Separately, new management has told some 200 employees to report to work by Friday or they would be considered to have abandoned their jobs and removed from the company. Such messages went out with a Monday deadline to additional workers Wednesday, reports said. 

“Today, we applaud Governor Patrick’s statement encouraging all associates to return to work as soon as possible,” the independent board member statement said. “We, as independent board members, cannot force any shareholders to buy or to sell, nor can we control the timing of their decisions. All we seek is to get our Associates back to work earning a steady income so our customers can go back to shopping. In return, we can’t offer a resolution to the deal negotiations, but have and will continue to offer a way to return to normal while negotiations continue. Playing with fire that will hurt us all – associates, customers, and communities – is a no-win situation, and we all need it to end.


CONNECT WITH SN ON TWITTER

Follow @SN_News for updates throughout the day.


“It’s well past the time when anyone can frame the crisis as ‘us vs. them,’ or a ‘family feud.’ There are too many families being impacted by this. Rather, for good or ill, many are being asked to sacrifice their pay, their jobs, and their ability to shop at affordable prices in their own neighborhoods, against the hope that it will help one side achieve a preferred business deal rather than another. No one should ever hold 25,000 associates, 2 million shoppers and our local economies as leverage in a business negotiation.

“It is time to get everyone back to work. It’s been five days since we last proposed a solution that would work toward getting everyone back and bring the crisis to an end. That’s five days too long, and now time is running out.”

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