Progressive Grocer Product

Summer 2015

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3 4 Progressive Grocer Products Showcase / Summer 2015 PERISHABLES • Produce makes up 44% of perimeter dollar sales • Total Produce up 3.3% dollars • Flat in volume, 0.2% • Deli Prep makes up only 7% of Total Perimeter • Dollar up 8.4% • Pounds up a notable 8.6% Source: IRI/FreshLook - 52 weeks ended 4/19/15 and same period year ago; based on dollar sales percent change versus year ago; perimeter department Merchandising Matters While meat and dairy categories garnered the largest share of promotions, seafood is the only non-produce category that had products among the top 10 most promoted over the past year, with fresh salmon fillets, cooked shrimp and raw shrimp making the list according to Solon, Ohio-based ECRM Data Ad Comparisons analysis. In addition to having the most promoted products making the top 10 list, produce also received the most premium ad placement – not only compared to the seafood products, but to most other top-promoted products in other departments studied, as well. Produce ads appeared in premium positions on the circular (front, back and wrap pages) from 66% to 71% of the time. This is likely from retailers positioning themselves as leaders in fresh produce offerings as consumers demand more of these products. PGPS Price Point 73.7% Save $X 1.6% BOGO 1.6% Other 0.3% Save X% 0.3% X-For 22.4% Source: ECRM All U.S. Retailers, Circulars Only, Effective Ad Block Count Offer Type Share The perimeter is home to many of the most specialized and often store-specific and unique sections. In-store bakeries, produce, deli-prepared foods and meat sections often feel similar, but most often offer unique features in product assortment, function and even décor. The Value-Added Meat (VAM) segment of the perimeter is of particular interest as it appeals to many levels of consumer demand today – fresh, healthy and convenient – and it also allows retailers to differentiate to some degree. By definition, VAM includes items in the service meat case or overwrapped meat case that have used at least one step of further preparation. Chicken, beef and pork account for more than 90% of VAM, according to IRI/ FreshLook. In 2014, sales of VAM were approximately $4 billion, up 8% versus 2013. Compared to total fresh growth of 4.6% and 5.6% for all other meat, VAM is out-performing by a wide margin and has been out-performing for several years now. Key benefits include: • Convenient meals • Ease of prep • Portion control • Flavor exploration • Special occasions Special FocuS: Value added Meat (VaM)

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