This month in Retail Health & Wellness (November, 2018)
Retail Health & Wellness @Label Insight
It's that time of the year again where research groups race to get out their 2019 predictions. It seems the reports keep getting earlier and earlier, in line with the holiday music and decorations. This year there are some notable trends that are worth exploring, among them the fact that cannabis is now being considered as a next frontier of health and wellness ingredient - from illegal drug to health product? Wow, things are changing quickly.
There continues to be a lot of movement in the health and wellness market. Most notable are the huge investments Albertsons has been making to take on health and wellness such as the Rite Aid merger which they believe will position them as one of the leaders in Health, Food, and Wellness. Lastly, health and wellness continues to make headlines in the store, particularly when tied to technology implementations such as the Kroger app.
To get the latest curated news on retailer health & wellness for November read on and enjoy.
Retail Health & Wellness 2019 trends
Krogerstories.com: Kroger top food trends for 2019
Kroger have published their top 5 food trends for 2019, and perhaps not surprisingly they are all health and wellness based.
The Top 5 Trends are: Regional Flavors, Plant-Based Foods, Eating Styles, Gut-Healthy Foods, and Low Sugar and Natural Sweeteners.
Investors.com: Self care trends (and cannabis)
"The wellness market grew out of the limitations of traditional medicine," said Beth McGroarty, VP of research and forecasting at the Global Wellness Institute. "You have amazing care after you get sick or after you get diabetes. But (the health care industry has) not focused on preventing diabetes or helping people make lifestyle changes."
Interestingly, cannabis makes an appearance as the next frontier of self care trends, as the article talks about it being almost mainstream giving the following example: The Standard Hotel in Hollywood announced this year what it called the country's first hotel-based cannabis dispensary. It includes Lord Jones' "chic weed gummies, chocolates and lotions with products that have the ideal CBD-to-THC ratio." "It's literally in the lobby of a four-star hotel," said McGroarty. "That's how mainstream it is."
Marketing-interactive.com: Top 5 retail trends in 2019
Among the top 5 retailer trends highlighted in this post, the "seamless shopping experience" in number 3 stood out as being interesting. In this callout, the author seems to be making the argument that physical stores are making a come back by leveraging their strengths and incorporating technology to make the consumer experience more effective. It would be interesting to see how this could change things in grocery.
"Seamless shopping experiences is key. Physical stores will offer a much more digital experience in 2019, by using technology to make it easier for customers to find items and gain more product information. This should lead to a faster shop for many, where searching aisles and shelves for the right item is replaced by an app that guides shoppers to where they want to be.
Pickard said: “Physical stores offer customers a more tangible shopping experience, where they can see products before they commit to purchase. This gives these spaces an advantage over online providers, and we are seeing stores begin to capitalize on that and add in extras to incorporate more of the benefits of online.”
I thought it would be interesting to add this somewhat objective view to the list of 2019 trends. Of note is their prediction that the top trends for 2019 will rely on food Security and trace-ability. Putting a lot of weight on the belief that blockchain solutions will make headlines in 2019.
Retail Health & Wellness Market Dynamics
Grocerydive.com: Why retailers are relying on dietitians more than ever
A 2017 Food Marketing Institute report showed that 81% of supermarket wellness programs are considered a growth opportunity, while 69% of retailers say providing comprehensive health programs are their responsibility. For many retailers, dietitians not only design these platforms but are the public face appearing in marketing materials and in store aisles.
- Most consumers (55%) see their grocery store as an ally in their wellness efforts — on par with health clubs, according to the Food Marketing Institutes's 2018 U.S. Grocery Shopper Trends report.
- In-store dietitians are providing a plethora of services from creating customized meals and meal kits to teaching classes, offering food demonstrations and providing community outreach.
As Rite Aid and Albertsons work through their merger, they are touting growth potential and the ability to compete with retailers Walmart, CVS Health, Walgreens Boots Alliance and grocer Kroger on a national level. Executives Tuesday said there is ample space in Albertsons grocery stores to expand health and wellness including Rite Aid’s RediClinics while tapping new markets for health and drug benefits, particularly for seniors insured by Medicare in California where both have strong brands.
Plated has come a long way. On Wednesday, the company announced it was acquired by Boise, Idaho-based national grocery store chain Albertsons Companies for $300 million. Taranto will stay on as chief strategy officer, and Hix will stay on as CEO. Their third co-founder, Elana Karp, who came on in January 2013 to lead the business's culinary efforts, will continue in that role.
Albertsons gets the technology and innovation of a meal-kit delivery service, and Plated gets the size, scale and resources of a company with 2,300 store locations across the U.S. and 35 million customers per week— this at a time when Amazon's purchase of Whole Foods threatens to make it harder for smaller grocery businesses to compete.
Forbes.com: Naturebox is betting that healthy office snacks will cut entrepreneurs' turnover and boost productivty
Healthy office snacks can be a boon to productivity and job satisfaction — but only if employees want to eat them. And understandably, entrepreneurs concerned about ROI don’t want to guess at workers’ tastes and risk losing valuable money.
Which office snacks tend to be team favorites? A study of 10,000 snacking professionals found that their top 10 favorites are, in order, dried fruit, nuts, protein bars, chips, dark chocolate, crackers, string cheese, trail mix, yogurt, and jerky.
tbcWellness is not a vertical product category — as it stands, it can pervade almost every aspects of a person’s life. There’s workplace wellness, wellness apps, wellness festivals and wellness retreats from SoulCycle and wellness hotels from Equinox. In fact, beauty, personal care, and anti-aging products within the wellness sector grew over 4 percent to nearly $1.1 billion in 2017, according to the Global Wellness Institute; the beauty supplements category, specifically, is expected to rise to $6.8 billion globally by 2024, up from $3.5 billion in 2016, according to Statista.
It is no surprise then that the wellness beverage industry is trying to tap into the beauty-from-the-inside-out market. Brands like The Beauty Chef and Moon Juice, which launched in 2009 and 2011, respectively, promised to give customers an “inner glow,” through powdered supplements or concentrated liquids, but now Dirty Lemon and Kusmi Tea are prominent players in the beverage market. Newer brands like Recess and Halo Sport, which launched Thursday, are also tangentially marketing themselves as beauty-from-within beverages.
Retail Health & Wellness In store
Businesswire.com: Raley's re-imagines the cereal aisle, with a focus on added sugar
Raley's is re-imagining the cereal aisle by moving cereals with 25% or more of the calories coming from added sugar will be moved to the bottom shelf.
Raley’s is committed to promoting transparency to help customers make better decisions for their personal wellness journey. Today’s consumer is taking a hands-on approach to their health. Americans are reading labels and following nutrition guidelines and are conscious of their sugar intake. According to Nielsen, 22% of households are restricting sugar intake, while 52% are actively trying to avoid artificial sweeteners.
[disclosure: Label Insight is a data partner of Raley's]
Chainstoreage.com: Hyvee's new store format blends grocery with health and fitness
The concept, called Hy-Vee HealthMarket, opened in West Des Moines, Iowa. The 15,700-sq.-ft. space features grocery and healthy lifestyle and personal care items, along with a full-service pharmacy, health clinic and hearing aid center, sports nutrition area, beverage station, and online pickup services. Hy-Vee expects to open two HealthMarket stores in 2018, in the Kansas City and Madison, Wisconsin, markets next year, with the potential for 50 to 60 locations in the future, according to a report by the Des Moines Register.
The new concept is an expanded version of the in-store HealthMarket shops located inside Hy-Vee’s larger stores. It carries many of Hy-Vee’s original store format products such as fresh produce, high-quality meat and seafood, dairy and frozen food items.
Thepacker.com: Kroger app enables self aware shopping
In a nutshell, OptUp gives every food product a score of 1 to 100 based on nutritional content, and every shopper gets a score of 1 to 1,000 based on the overall nutritional value of their recent purchases. To develop nutrition scores for individual items, Kroger crunched information from various giant databases.
One of the intersting differences with this offering is the fact that the app rates the shopper as well as the products. An interesting application of gamification.
The France-based European retail giant, Carrefour, announced on its official website that they will be using a blockchain-based solution for its Spain division to track the Calidad y Origen brand’s chicken products.
According to their official announcement made on November 20, 2018, Carrefour is implementing IBM’s Food Trust platform, a system based on Hyperledger.
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