Progressive Grocer Product

Fall 2014

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Produce/ Fresh Fall 2014 / Progressive Grocer Products Showcase 25 Produce/Fresh +4.6% (IRI) Key Trends 4 Healthier eating 4 Protein and low-carb diets 4 Breakfast as "most important meal of the day" 4 Portability/on-the-go satiation 4 Quick and easy solutions CATEGORY GROWTH SALES Refrigerated Meat +18.7% $4.0B Refrigerated Spreads +14.3% $0.9B Breakfast Meats +11.3% $5.8B Refrigerated Coffee/Tea +10.2% $1.1B Refrigerated Salad/Coleslaw +9.6% $4.5B Source: IRI, Chicago What's New and What's in 'Em Chicago-based Mintel tracks new product introductions and product attributes through the firm's Global New Products Database (GNPD). Analysis of product introductions and the important attributes those products deliver illustrates how shelf assortment is changing and what consumers seek in product assortment. In a search of new food and drink products launched in the U.S. from January 2014-October 1, 2014, Mintel reports: 4 Fruits and vegetables accounted for 3.4 percent of launches. Source: Mintel gnpd In tracking product attributes/claims, Mintel reports that the top three claims in new fruit and vegetable products between January 2014 and October 1, 2014 are: Fruit and vegetable products 4 Microwaveable 4 Kosher 4 Ethical – environmentally friendly packaging Source: Mintel gnpd Like much of the store, fresh items and produce experience similar demands from consumers, as key trends have spanned most retail outlets and certainly most consumer-packaged-goods categories. Por- tability and on-the-go consumption trends have spurred packaging changes in pro- duce, keeping lunchboxes and commutes in mind with single-serve portions, as well as in-package preparation. Reports indicate that nearly a third of the average produce department today is prepackaged, washes, ready-to-go items, a huge difference from even a decade ago. The desire for quick and easy solutions in produce spawned microwaveable packaging, and now full-meal planning guidance and creative cross-merchandising are often spot- ted in produce and fresh meat departments. An overall interest in healthy eating has impacted the fresh and produce categories as shoppers shop the perimeter more intensely and center-store sales lag. Healthy snacking drives new snack segments in the produce and fresh sections of the store where "snack- ing" once didn't exist. Part of this behavior is generated by diet trends that focus so heavily on smaller meals/snacks throughout the day and a particular focus on protein. Increased interest in consuming foods higher in protein at the expense of more pro- cessed, packaged foods and snacks has long been a trend that is now the norm. Also, as a growing portion of consumers shy away from gluten and carbs, snacking and dining more healthfully have benefted fresh departments. Further, the renewed commitment to the "most important meal of the day" in a higher- protein way has driven fresh sales, including fresh meats, as well as some portions of the dairy case. PGPS

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