PPI 2018 Annual Meeting: Hot Topics and Trends Affecting the Pickle Industry Don Goodwin, President
Learning about trends o Work with 15 companies o From seed to retail o Working extensively with our clients o Learning culture within our company o Forward-thinking meetings 2
Channel Trend: #1 Direct to Consumer/Online Shopping US online grocery sales were estimated at $14 billion in 2017. 3
Trend: Direct to Consumer/Online Shopping o Home delivery o Click and collect o Phone, tablets or laptops 4
Projected online grocery market share in the United States from 2015 to 2020 Current data shows 5.5% of total grocery sales Nielsen projects 20% of all grocery sales will be online by 2025 5
Trend: Direct to Consumer/Online Shopping By 2025, Amazon plus Whole Foods could be a $70 bil billion company o Today, they would be the #3 retailer o Amazon Fresh sales are up 35% since buying Whole Foods o 3000 Amazon Go Stores by 2021 6
Trend: Amazon and Whole Foods o Amazon has rolled out free 2-hour delivery from most Whole Foods to Prime members o Amazon Prime Now and Amazon Fresh have merged o Amazon Prime rewards are now available at Whole Foods 7
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Implications o Shelf space now becomes screen space o Reduction in impulse sales o Promotion strategies have changed o Reviews matter 11
Deep-Dive: : Millennials on Food Millennials like… o S ocially responsible options o Dining out o “GMO free” and "local” o Organic o Transparency o Customization o Convenience o Snacking o Unique and bold flavors 12
Trend: Organics o Organic sales continue to outpace conventional sales o Over half of organic shoppers are millennials with children o As millennials buying power expands, organic sales will accelerate 13
Trend: Focus on Millennials o Hyper convenience o Strength, energy and physical performance o Next generation natural products o Digestive Health 14
Trend: Snacking is Hot o Snacking is the fourth meal occasion o The shift to wellbeing (portion control) o Time compression and increasing urbanization o Bifurcation in income distribution o The digital revolution o Evolving retail channels 15
Hot Nutrition Topics o Fermented foods continue to be hot o Gut health (microbiome) o Inflammation o Cognitive health o High Performance 16
Implications o How do you become the next kale? Avocado? o Are you promoting your item as a snack? o Will some categories become 100% organic? o How do you make your product hyper-convenient? 17
Technology Disruption - Amazon Go 18
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Trend: Retail Technology Amazon Echo o Voice-based tech will dismantle retail and destroy brands o Best value only o Automatic replenishing 22
Trend: Retail Technology Voice Activated Purchasing o Duracell brick-and-mortar market share is 40% o Over 90% of batteries bought online are purchased on Amazon o Amazon Basic - 31% share o Duracell - 24% share 23
Implications: The Amazon Effect o Will Amazon dominate online grocery? o Is your product a commodity or brand? o Will amazon bypass the marketer? o Will Amazon contract directly with the grower? 24
Trend: Meals at Home More than 80% of meals are being prepared at home. In 1975, 75% of meals were prepared at home. Meals prepared at home Blended Meals: include: • Eating out Purchasing part of a • Meals from scratch • Dining at restaurants meal, adding in some • Meal kits at-home preparation • Home delivery/takeout 25
Trend: Meal Kits now available at… + now available at… 26
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Implications: o Long lead time to sell o They want something different o Healthy is important 28
Trend: Urban Agriculture 50% of all leaf lettuce will be grown in some urban agriculture solution by 2030 Private equity is bringing in billions of dollars o Greenhouse technology o Aquaponics o Hydroponics o Converted warehouses o Vertical farming o Micro-farming 29
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Disruption o Any and all crops now have urban agriculture potential o Food miles will be more of an issue o Land values o Local will become more prevalent 31
Implications: o Will the pickle category be disrupted? 32
Precision Diets 33
Habit – Personalized Nutrition 3 step process o 1 – Take the habit nutrition test o 2 – Review your test results o 3 – Get to know your nutrition plan 34
Implications: o What is the nutritional perception of your product? o Are all varieties equal? 35
Don Goodwin don@goldensunmarketing.com Phone: 612-805-2057 36
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