Progressive Grocer Product

Summer 2016

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NON-FOODS 2 6 Progressive Grocer Products Showcase / Summer 2016 cutlery and plates, plus everything necessary for clean-up. Complementing growth in food and beverage, the accoutrements for cooking and entertaining at home, such as storage and utensils, have seen positive trends. Though the economy has somewhat recovered, many recession-induced behaviors became habits, and thus self-reliant health and personal care have become hallmarks of the non-foods market. These conservative behaviors have boosted sales across a number of segments and continue to do so. Most shoppers are actually buying non-foods quite conservatively, getting just what they need, making trade-ofs and price shopping. Most notable was a more than 25 percent boost in sales of cold/allergy/sinus liquids, according to Chicago's IRI. Non-food overall brought in $284.4 billion in multi-unit plus convenience sales for the 52 weeks ending Feb. 21, 2016, IRI reports. Growth overall was 3.5 percent in sales and 1.4 percent in units, with much credit given to innovation in more powerful and longer-lasting results. High-growth categories include: • Culinary (+3.3%; +8.2%) • Cold/Allergy/Sinus Liquids (+25.1%; +8.1%) • Adult Incontinence (+8.4%; +7.9%) • Kitchen Storage (+4.3%; +6.7%) • Weight Control (6.9%; +6.5%) Source: IRI, multi-unit plus convenience sales for the 52 weeks ending Feb. 21, 2016 In response to consumers doing things at home and taking entertaining and healthcare into their own hands, a number of new or renewed products made some ripples in the market this year. Culinary tools, for example, have done well thanks to consumers experimenting when they eat or entertain at home. Veggeti earned IRI's New Product Pacesetter status this year thanks to great year-one performance. The product "spirializes" vegetables for easy prep and a higher-end look. In the healthcare arena, often switches from prescription to over- the-counter bolster the market. But recently marketers have pushed new, powerful and effective products to market, winning over the stuffy heads of consumers. According to a recent Times & Trends report from IRI, "Cold/allergy/sinus liquids soared during the past year, getting a huge lift from powerful new products, such as Nasacort Allergy 24HR and DayQuil/NyQuil SEVERE, that last longer and work harder than earlier solutions. These brands also sell at a significant premium as compared to traditional cold/allergy/sinus solutions, thereby contributing to a 22.7 percent increase in average price per volume sold and driving dollar sales in a northerly direction." e-Commerce Effects e-Commerce plays a significant role in how consumers approach shopping at retail and online. IRI reports that three-quarters of all shopping trips begin online with planning, research and price comparisons. In non-foods such as personal and healthcare, e-Commerce can make an impact. But for retailers with a brick-and-mortar presence, it takes some dedication to capture those sales. As compared with other CPG categories, shoppers of consumer healthcare products, which include over-the-counter (OTC) medications, dietary supplements and personal care products, are among the most active online prior to an in-store purchase and are among the most likely to purchase products online, according to IRI's Digital Path to Purchase Study. Many shoppers use e-commerce to easily attain products that are consumable and used as part of a regimen. With online auto replenishment, shoppers may not even come to physical stores to meet these needs. This trend impacts many crucial non- food categories, such as OTC medications, vitamins and minerals, personal care and baby care. While these categories used to be trip drivers, buying them online has become easy and affordable. According to Chicago's Market Track, many retailers have focused some marketing and promotion on driving consumers to their websites. Email, mobile and website promotions have become something that are growing in frequency. While total transactions in the space remain a small portion of the overall retail pie, the influence and impact of a strong digital and online strategy is critical to success. Whether shoppers choose to spend money on retailer websites or in store, they are influenced by online properties as they research and seek out information on products and brands. PGPS

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