FMI Awards Trading Partner Excellence,
Innovation and Statesmanship

Irene Rosenfeld, Chairman, Mondelēz International, headed up a handful of award recipients who achieved excellence in in trade relations, entrepreneurial spirit and statesmanship. FMI President and CEO Leslie G. Sarasin presented the awards recently at the Midwinter Executive Conference in Miami.

Rosenfeld received the William H. Albers Award that recognizes a commitment to trade relations and consumer service.

Oscar Gonzalez, Co-President and COO, Northgate Gonzalez Markets, received the Robert B. Wegman Award for providing entrepreneurial leadership with his company, the largest chain of Mexican supermarkets in the U.S.

Jerry Garland, Former President and CEO, Associated Wholesale Grocers, accepted the Sidney R. Rabb Award, which recognizes a commitment to the consumer, community and the industry. As the former FMI board chairman, he helped the association navigate the Food Safety Modernization Act, the biggest change to the food safety system in 70 years.

“Our industry is rooted in a commitment to people and communities,” Sarasin said. “It shines through the food, the service and the support we provide. Visionaries who blazed new trails in their day established a noble legacy – a legacy that thrives and continues in the work of today’s esteemed industry leaders.”

Most Consumers to Grocery Shop Online by 2024

In as few as five-seven years, 70 percent of consumers will be grocery shopping online. An estimated $100 billion in purchases, which is equivalent to every U.S. household spending $850 online for food and beverage annually, will occur by 2022 or 2024.

That is one of the findings from the “Digitally Engaged Food Shopper,” a study from the Food Marketing Institute (FMI) and Nielsen, released at the FMI Midwinter Conference in Miami recently.

Building on the joint research findings issued in 2017, this second set of insights also examine what CPG manufacturers and brick-and-mortar retailers need to do to ready themselves for the rising digital grocery landscape.

Key findings from this year’s study show that omnichannel shopping has passed the tipping point with online grocery shopping on an accelerated path to industry saturation. The first year of research predicted that consumer online food and beverage spend could reach $100 billion by 2025. FMI and Nielsen now contend that the pace of change and adoption has far exceed initial predictions and could cut the timeline by as much as half.
Two crucial parts of the research were the FMI-Nielsen Digital Readiness Assessment Survey and in-depth interviews across many operational functions of grocery retailers and manufacturers. That work revealed the following six organizational imperatives that can help trading partners accelerate their omnichannel success:
  • 1. Align Organizational Structures for Omnichannel Success: Integrate digital offerings in parallel with brick-and-mortar operations.
  • 2. Address Discrepant Data Sets: Scrub master data files for discrepancies; strength in data and accuracy is a critical component to successfully support online sale efforts.
  • 3. Integrate Forecasts to Increase Operational Efficiencies: Integrate online and offline forecasting so the right amount of inventory is available to meet orders through either channel.
  • 4. Optimize Shopper Insights: Bring retailer and manufacturer shopper information together into a single, comprehensive view of customer insights.
  • 5. Improve Marketing and Promotions: Optimize the management of omnichannel marketing and promotions.
  • 6. Merge Digital and In-Store Shelf Capabilities: Manage the physical shelf and its digital counterpart to create a seamless shopping experience, where consumers see the same information both on or offline.

“People, process and technology are the trifecta for a true omnichannel collaboration model,” said FMI Chief Collaboration Officer Mark Baum. “No matter the maturity stage, food retailers and their CPG business partners will find value in leveraging these six organizational imperatives as they respond for a more digitally engaged consumer.”

CPG Supply Chains Can Adapt to Disruption in Grocery

Online shopping, new digital technologies, and increasing channel fragmentation are intensifying the pressures on US consumer packaged goods (CPG) supply chains. Clear steps that CPG companies must take to prepare for this disruption are contained in a new report authored by The Boston Consulting Group (BCG) and commissioned by the Grocery Manufacturers Association (GMA).

Among the issues addressed in the report: e-commerce sales growth, service-level performance, channel proliferation, network design, and cash management trends.  The report is based on the 2017 Supply Chain Benchmarking Study, a study of the US units of more than 30 leading CPG companies conducted jointly by BCG and GMA.

“It’s been a turbulent couple of years for the grocery industry, with major disruption and dislocation in the retail landscape,” notes Daniel Triot, senior director of the Trading Partner Alliance of GMA. “Despite the important performance gains in the supply chain in the past two years, CPG companies cannot be complacent. This report aims to provide guidance for CPG companies looking to harness new digital technologies and trends to support continued growth."

P&G Wins Five Product of the Year Awards
Five products from Procter & Gamble were among the 31 winners of the 2018 Product of the Year USA Awards, billed as the world's largest consumer-voted awards for innovation. A national study of 40,000 consumers conducted by research firm Kantar TNS determines the winners each year with the aim to help consumers best identify the top new consumer products.

The winning P&G products were: Febreze ONE (in the Air Care category), Cascade Platinum (Dish Care), Tide PODS Plus Downy (Laundry Pacs), Gain Botanicals (Liquid Laundry), Cascade Platinum (Dishwasher Cleaner).

Each year, Product of the Year takes entries from new consumer products launched within the previous year that demonstrate advancement within their industry. Product nominations are placed into categories including beauty, personal care, household essentials, car care, food and beverages, pet care, and are assessed on seven key measures. One product is named the winner of each category, based on the results of the consumer study.

The other 26 winners were:

  • Bakery: Duncan Hines Perfect Size for 1 - Pinnacle Foods
  • Beauty: Schwarzkopf Gliss Ultimate Repair Anti-Damage Mask - Henkel
  • Beer: Heineken COOLERPACK - Heineken USA
  • Better-For-You Snack: ALDI Elevation by Millville High Protein Bars – ALDI
  • Breakfast: Sandwich Bros. Breakfast Sandwiches - Sandwich Bros. of Wisconsin
  • Candy Bar: Oreo Chocolate Candy Bar - Mondelez International
  • Car Care: Valvoline Easy Pour Bottle - Valvoline
  • Convenience Meal: Imagine Super Soups - Hain Celestial
  • Cooking: Copper Chef Deep Square Pan - Tristar Products
  • Feminine Care: U by Kotex Fitness - Kimberly Clark
  • First Aid: CURAD® SoothePLUS - Medline Industries
  • Frozen Entrée: Cooked Perfect Fire Grilled Chicken - Home Market Foods
  • Frozen Side: Green Giant Veggie Tots - B&G Foods
  • Health & Wellness: Pure Protein Super Food - The Nature's Bounty Co.
  • Home Cleaning: PURELL Multi Surface Disinfectant - GOJO Industries.
  • Ice Cream: Skinny Cow High Protein Packed Low Fat Ice Cream - Nestle
  • Laundry Booster: Purex Crystals Botanicals - Henkel
  • Men's Hair Care: Just For Men Control GX - Combe
  • Pain Relief: PROcure Epsom Salt Gel – PROFOOT
  • Personal Care: Nature by Canus Fresh Canadian Goat Milk Soap – Canus – A Canadian Soap Company
  • Pet Care: Turtle Wax Power Out! Carpet & Mats Heavy Duty Cleaner - Turtle Wax
  • Ready-to-Drink Cocktail: Smirnoff Spiked Sparkling Seltzer - DIAGEO
  • Snack Cup: ALDI Friendly Farms Greek Yogurt Tilts – ALDI
  • Spreads: ALDI Little Salad Bar Guacamole – ALDI
  • Sugar Confections: Toffifay - Storck U.S.A L.P.
  • Women's Grooming: Finishing Touch Flawless – Ideavillage Products Corp.

New Data Insights for Influencer Marketing

A new suite of analytic solutions using first-party shopper data along with various data science applications provides insights that inform every step of the influencer marketing process. PrescriptiveIQ from Collective Bias, an Inmar subsidiary, determines what kind of content will perform best for campaigns, when to run campaigns, and how well the brand is doing across the category – ultimately leading to more consumer purchase occasions.

“Data science is helping us address key brand and shopper challenges and create smarter, more informed influencer campaigns,” said Irving Turner, Vice President, Analytics, Inmar’s Collective Bias. “The biggest evolution in marketing is going to come from the use of new data and their application to content strategies, targeting and more. By not only offering a range of data measurements to report accurate metrics on a variety of categories, but also actionable insights from this data, marketers will be able to strategically measure the effectiveness and true impact of their campaigns.”

The solutions include:

  • Shopper Intelligence: Brands can use sales data to understand the seasonality of the brand and to time the use of influencers. Machine learning algorithms recommend both the optimal number of influencers to use and the influencers that best match their campaign.
  • Context Intelligence: Through analyzing social trends data and general lifestyle indicators, brands can uncover ideas for content and tap into trending ideas to drive engagement.
  • Brand Intelligence: The data can uncover basket affinities, which can identify not only the likelihood of co-purchase opportunity, but also the relative size of opportunities for segmentation and targeting.
  • Loyalty/Segmentation: Using purchase data, households are segmented across an entire category to determine brand loyalty of shoppers against competitive products.

New Solution to Accelerate New Product Success

A new tech solution is designed to give brands the ability to predict, track and accelerate the sales performance of new products across a scaled network of national retailers.

Catalina’s New Product Accelerator, debuted at the Food Marketing Institute’s Midwinter Executive Conference, aims to increase the success rate of new product launches with an end-to-end solution combining real-time forecasts of new product sales potential, real-time reporting of actual sales results, and the ability to efficiently target and activate shoppers with omni-channel media to accelerate sales performance.

Based on the analysis of over 15,000 previous new product launch campaigns, the solution provides marketers instant visibility to understand buyer profiles and view the behaviors that are driving sales, track distribution and consumption, predict full-year performance results, and enable the activation of course-correcting media to ignite sales with the right shoppers.


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                                                                         Mid-February 2018
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