Delivery and Pick Up to Propel Online Grocery in 2019    

U.S. consumer spending online for groceries is forecasted to grow 15% versus the prior year, increasing the overall share captured by online in 2019 to 6.3%. However, providers that offer delivery and pickup are expected to grow their online sales between 25% and 30%, according to Brick Meets Click, a research consultancy.
 
The forecast indicates that a larger share of online spending for groceries will shift toward the brick-and-mortar retailers offering these services. But the gains will not be evenly distributed as winning more sales depends largely on how well providers are improving the shopping experience.

“Increasing the number of households who have access to online grocery shopping services with home delivery or pickup could add almost two points to the percentage of U.S. households who buy groceries online, pushing the 2019 monthly rate past 25% at the national level,” explained David Bishop, partner at Brick Meets Click. “At the same time, this will offer a meaningful boost to particular providers in those market areas, as we expect that most of the sales generated by new households going online for groceries will flow toward the brick and mortar delivery or pickup providers.”


GMOs on Food Labels by 2022

U.S. manufacturers must label food and beverages containing genetically engineered ingredients by 2022, says the US Department of Agriculture (USDA).

The implementation date is Jan. 1, 2020, except for small food manufacturers, whose implementation date is Jan. 1, 2021. The mandatory compliance date is Jan. 1, 2022. Regulated entities may voluntarily comply with the Standard until Dec. 31, 2021.

The Food Marketing Institute applauded the new rule for labeling bioengineered foods. “We look forward to working with the Department to promote consumer understanding of the terminology in this rapidly emerging field,” said Leslie Sarasin, President and CEO of the supermarket trade association.


Simplified Food Expiration Dates Available

Consumer confusion over the expiration dates on food packages may be over.

Date labeling work by the Grocery Manufacturers Association and the Food Marketing Institute narrowed the array of ten label options to: “BEST if Used By” and “USE By.” The former means that, after the date on the label, the product may not taste as expected, but can still be eaten. The “USE By” date, applying to perishables, means the product should be eaten by the date on the package and thrown away afterwards. Nearly nine of ten food products (87%) now use one of these two labels. 

In a survey of 1,002 U.S. adults this month, GMA found that 88% think the “Best If Used By” and “Use By” definitions are clear. Another 85% of these consumers said that the use of just those two labels would be helpful.

Benefits of simpler labeling cited by consumers included feeling safer about the foods they eat, throwing away less food, saving money by discarding less food and greater confidence in the products they use.


New Guide to Generating Growth via AI

A new book about AI provides a unique and practical guide for generating growth and customer loyalty.

AI for Marketing and Product Innovation is co-authored by Andrew Appel, president and CEO of IRI; A.K. Pradeep, CEO of MachineVantage’ and Stan Sthanunathan, executive vice president of Consumer & Market Insights for Unilever.

The book highlights the potential for AI, such as drastically improving the success rate for new product introductions — which currently hovers in the 10 percent range — and eliminating millions in wasted advertising spends due to ineffective planning and targeting.

It continues by digging deep into the math behind AI and the types of data incorporated to achieve dramatic improvements in critical areas of brand management and retail, ensuring readers and authors are on the same page when addressing specific ways AI improves decision making.


‘GMO-Free’ Claims Replacing ‘Natural’ on Food in Canada
 
A “free-from” revolution for Canadian food and drink has been inspired by confusion over what “natural” means.
 
Research from Mintel Global New Products Database (GNPD) reveals that there was a 366 percent increase in “GMO-Free” claims on natural food/drink launches in Canada from 2007-17, while “No Additives/Preservatives” claims grew 21 percent. Meanwhile, relatively less specific claims such as “All Natural Product” declined 62 percent in the same time period.

“Natural claims are evolving to provide greater clarity about the benefits of these products as consumers increasingly demand total transparency from food and drink companies,” said Joel Gregoire, Associate Director, Canada Food and Drink Reports, at Mintel. “Focusing on “free-from” positioning appears to be a more direct means to communicate the inherent value of natural/organic products.”
       

























































































































































































 











































































































































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CPG MARKET WATCH
                                                                         Early January 2019
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