Last week saw news come across the internal wire that seemed to paint a picture of the symptoms related to disruption across the CPG industry. The first article, by Google, discusses the need for Brick and Mortar retailers to embrace online grocery. The second article, explores a new partnership between Budweiser and Coleman Natural to brand fresh meat with the Budweiser logo - just in time for spring. And the third article talks about the challenges of Organic Farms as a result of loose labeling standards. All three of these posts can be linked back to fundamental changes in the CPG Food & Beverage vertical. The rest of the week in news focused on developments in the personal care and beauty product types, both articles indicating the changes in that vertical that seem to be following behind, although in some cases leading, the changes and disruption taking place in the Food & Beverage vertical. Enjoy the news and have a good week. How grocers should embrace online shopping - thinkwithgoogle.com The grocery category is on the precipice of major change. Today only 3% of U.S. grocery shopping occurs online, but e-commerce penetration is projected to triple over the next 10 years.1 This will create a major shift in how consumers spend grocery dollars as they embrace digital and expect grocers to do the same. Traditional grocers have a unique opportunity to capitalize on this shift. Their deep relationships with shoppers and ability to meet critical, frequent needs position them to shape new behaviors in grocery. (curated by @nicolemeyerson)
The video this week is an introduction to some of the challenges around shelf space. It's indicative of the hidden complexity in the grocery industry that is a real barrier to disruption, potentially protecting the incumbent players from some of the early digital disruption taking place in other industries. “behind each freezer door is a secondary market that determines what you have the option to buy." Phil Edwards, author There are pros and cons associated with slotting fees, but no matter which side of the fence you are on, there is no doubt that they have a significant influence on what products end up on the shelf. Not a new video, but a good one to think about when reflecting on how the industry may evolve as digital disruption and transparency take hold. Hope you have a good end to your week.
Alot of news came across the internal news channel this week. Starting off with a little self promotion, the first three posts refer to content published by ourselves last week. The first of these being a study on consumer purchasing choices. The second is an opinion peice we published in wholefoodsmagazine, and then the third is an article about watermelon in the beatuy aisle that we worked with Good Morning America on. The rest of the week in news was represented by some interesting peices relating to the adoption of wellness icons in Publix and Target's new "Clean" symbol. This is followed by an op ed about the impact of Aldi on shopping in the UK, and then the curated news is wrapped up with an interesting article about AI and digital disruption and a final article about Kind Bar petitioning the FDA for more regulation - both following on from narriatives we've covered over the last few weeks. The industry continues to evolve at an astonishing pace. We very much enjoy following this change. Have a good week. Survey: 53% of consumers motivated to purchase by 'natural' claim - fooddive.com An online survey from Label Insight showed 53% of U.S. consumers would be prompted to buy a product sporting a label claim of "natural." The January survey of 1,000 adults aged 18 and older asked which loosely regulated claims would be most likely to influence consumers' purchasing choices. (curated by @nicolemeyerson)
Quite an interesting news week this last week. We kick it off with an article talking about the challenges of executing a custom retail health and wellness program without experienced support - in this case across the ditch in the U.K. We then jump in to a couple of articles related to A.I and the impact this technology is going to have on the shopping experience. We then wrap up the curated list with a marketing battle between Clif Bar and Kind Bar that had the team entertained throughout the week. And then finish off the list with some of the new trends coming out of Expo West where we had a team collecting product images and product data. It's interesting how each week has a slightly different flavor. Have a good week. enjoy. Supermarket misleading shoppers on healthy food, say nutritionists - bbc.com.com Products high in salt and saturated fats are being marketed as healthy by leading supermarkets, BBC Radio 5 Live Investigates has found. The British Dietetic Association said stores including Tesco, Morrisons and Sainsbury's were being "unhelpful" and "confusing" customers. The Royal Society for Public Health called for an independent supermarket regulator. Supermarkets said they were committed to "promoting healthy eating". (curated by @brookebright)
This week we had a team representing at the Category Management and Shopper Insights Conference in Las Vegas. It was an exciting conference with lots of talk of innovation and creative ideas about how to leverage technology across the category management process. It was great to be reminded, at the core, what a fundamental role Category Management plays in the growth of the industry. “Strategic choices made by suppliers across the 4 P's will usually affect the 4 P's for the retailer," – Sue Nicholls, Category Management Knowledge Group The video below highlights the 4 P's of Category Management: Product, Placement, Price & Promo. Given all the exciting talk of technology and innovation at the conference among industry leaders, we thought it relevant to keep our feet firmly based in the fundamentals of the discipline. We also liked the fact that this video demonstrates how inherently collaborative the category management process needs to be. Hope you have a good end to your week.
A lot of news came across our shared news channel this week. And so we've curated some of the items we found most interesting below. To start with there were two pieces of Amazon news that were intriguing. One was a re-statement of the announcement to close the Whole Foods small format stores, and the other was Amazon's launch of their own private label milk products. Aside from that there's some continued news around challenges large brands are facing due to the disruption taking place due to transparency as well as an interesting announcement from Target about how they will offer up an online marketplace for suppliers to sell their products - interesting news considering Kroger and Microsoft's announcement last week about their foray in to Retail as a Service (RAAS). Hope you all have an excellent week. enjoy. Whole Foods to re-brand existing 365 stores - grocerydive.com Amazon owned-Whole Foods has announced plans to re-brand all existing Whole Foods 365 stores as regular Whole Foods stores before the end of the year. Whole Foods will discontinue its 365 small-format stores. Since Amazon took over the banner in 2017, nine 365 stores have opened and enthusiasm for the format has waned. Some stores that were intended to open as 365 locations have opened as standard Whole Foods stores instead, Yahoo reported. (curated by @nicolemeyerson)
I loved this new video. Malcolm Gladwell brings his engaging story telling to the story of customer preference clustering 1.0 which took place in the food industry several decades ago and gave rise to the explosion of SKU's across every category that we now see today. A must view for anyone who has a curious mind. “There's no perfect Pepsi, only perfect Pepsi's " Howard Moskowitz This story highlighted how clustering of early customer preferences lead to a revolution in how we as an industry sold and marketed products. We, at Label Insight, believe we're experiencing the beginnings of a new type of revolution led by clustering 2.0 that will take place in relation to the new attribute driven market. Good video and exciting times.
We start this weeks curated list of news with a poignant comment on a post that was produced a while back. The idea of potentially inverting the category decision tree as a response to an attribute driven market is something we've talked alot about and so it was great to see Stephanie Halley, a senior Category Advisor for Mars Chocolate North America talking the same language. Aside from that, there was some news about the future of meat, and the future of scanning for allergies and another development in the Kroger and Microsoft partnership. We wrap up this last weeks curated list with a study about the impact the "women owned" attribute is having on female-led companies - we provided data for this exciting peice. Have a productive week. Product Attributes become key to unlocking growth - bricksmeetsclicks.com a comment on the article: "We are also realizing that laying out a particular category’s aisle based on the purchase decision tree (backward looking as the aisle is laid out today) isn’t putting enough pressure upstream in major CPGs to innovate against shopper NEEDS— occasion based shopping. To effectively meet future consumer demand, we need to innovate and shelve products based on how people use the product. This is the way of the future to be a thought leader with retailers." (curated by @antonxavier)
I previously posted a video on the new Kroger shelf tags here. The previous post was an "early impressions" video with some consumer interviews. This latest video comes from Geekwire via a forbes article and is a deeper dive in to the potential of the technology based on recent showing at NRF's Big Show 2019. “So, wait, you mean you can help me locate the groceries I want to buy with personalized signals of where they are on a shelf as I walk by?” some asked The emphasis in this silent video (i spent 20 minutes trying to fix the audio on my computer before realizing it's silent) is on the potential to interact with consumers in personalized ways and to deliver personalized information. Tieing together the shelf experience, with your personal hand held device and /or a shopping scanner also helps to bring the online and in-store experience together as well. We're very excited to see how this will evolve the shopping experience going forward.
A busy week of curated news came flooding in this last week, with much of the following news posted on Monday. A lot of regulatory news this week, with announcements from the FDA as well as content relating to sulfates in cosmetics. Some interesting news in the e-commerce space, with a large funding, some news about e-commerce growth. The news week finished up with an article about Kroger and Microsoft partnering around exciting new shelf tag technology, and then an opinion piece relating to the role of advertising in CPG and retailer relations. The year is starting to warm up!! Have a great week everyone. FDA targets illegally marketed dietary supplements - cnn.com The US Food and Drug Administration is taking new action against dietary supplements, sending warning letters to companies who claim, without proof, that their products can prevent or treat Alzheimer's, diabetes and cancer, the agency announced Monday. The FDA vowed to update its policies on dietary supplements, promising "one of the most significant modernization's of dietary supplement regulation and oversight in more than 25 years," according to a statement by FDA Commissioner Dr. Scott Gottlieb. (curated by @elizabethvitale)