Hamilton Seale

AB InBev has reported a rise of 2.6% in first-quarter sales, in line with forecasts, but the impact of a roughly year-old U.S boycott of key brand Bud Light continued to hurt the brewer. AB InBev also sold slightly more beer than anticipated, with volumes falling 0.6% versus the 1% anticipated by analysts. Own beer volumes declined by 1.3%, while non-beer volumes rose by 3.5%. Read more https://lnkd.in/dCKmtukA

7

One in five consumers who purchase frozen food items usually buy a store-brand product, and that figure is growing, according to “The Power of Frozen 2023” report from the American Frozen Food Institute (AFFI) and FMI- The Food Industry Association. The big factor turning the eyes of consumers toward private label products, unsurprisingly, is price. While private label and national-brand frozen products each saw unit share erosion in 2023 — down 3% for private label and down 5.4% for national brands — both segments saw dollar sales grow 7.7% during the prior year. Also notable is the rather weak brand loyalty that consumers have within frozen food despite the category’s having some long-standing national brands. The AFFI report found that 20% of consumers usually purchase private label frozen food products, while 16% said that they prefer national brands. Nearly four in 10 said that brand preference varies by item, and 26% had no brand preference. | Progressive Grocer https://lnkd.in/gFZEj_j3 #retail #supermarkets #frozenfoods #storebrands #privatelabel #consumers

8

🚨FOOD INDUSTRY NEWS🚨 PepsiCo has reported quarterly earnings and revenue that beat analysts’ expectations, despite weaker U.S. demand caused by Quaker Oats recalls and backlash to higher prices for its drinks and snacks. Shares of the company fell more than 2% in morning trading. Earnings per share: $1.61 adjusted vs. $1.52 expected. Revenue: $18.25 billion vs. $18.07 billion expected. 🥤 #pepsico #earnings #inflation #foodindustry #newsletter

Kroger is the largest seller of Sushi in the United States, and it isn’t particularly close. Most consumers and many in the industry don’t fully understand the forces driving this business model. The “Sushi Model” in retail grocery is simple: outsource the supply chain and execution to a 3rd party who are experts in their field, and set the program to the closest thing to “autopilot” as possible. Retailers typically take in between 18%-30% of all sales on this model, with no exposure to labor, shrink/spoils or supply expenses. In other words, the gross margin and the net contribution margin are almost exactly the same. This Cost Certainty is worth its weight in gold to a retail grocer. When I was CMO at Lucky Market (before we were majority acquired by Kroger) Sushi was the most profitable category we had on a percentage CM basis, and we didn’t even manage it. We were one of the first retailers to try and actively push for more of this business by promoting $5 sushi Tuesdays and a variety of other dynamic pricing deals. With the rising cost of labor, we’re going to see more and more of this “consignment” model proliferating through retail grocery. In the near future there will be outsourced grab and go “concessions” of salads, wraps, sandwiches, and a wide range of other offerings. We’re also going to see collaborations between retail grocery and restaurant chains in this space, especially with better-for-you product. The likes of Sweetgreen etc. have a huge win-win growth opportunity with the right retailer partners #innovation #sushi #cpg Pod Foods Business Insider Dirty Hands

34

3 Comments

I am continuing to track this transaction! I remain confident that the enhanced divestiture package will continue to add value. I anticipate improvements in pricing discipline, enhanced customer responsiveness, and, ideally, a more diverse product mix achieved through new market penetration. The deal appears advantageous, and I am optimistic that post-merger, we will witness: "lower prices and more choices to more customers [to] secure the long-term future of unionized grocery jobs." The Shelby Report #kroger #albertstons #divestitures

18

4 Comments

Go check out this VinePair article highlighting Czechvar as one of the Most Underrated Macro Beers according to experts: https://lnkd.in/eh3akBEm

11

1 Comment

Is Hormel Foods prepared to tackle the challenges of inflation, supply chain disruptions, and shifting consumer preferences? Jim Snee, CEO of Hormel Foods, offers insights on the company's strategies to navigate these issues. Learn how they are adapting, building partnerships, embracing sustainability, and leveraging technology in this volatile landscape. #FoodIndustry #SupplyChain #ConsumerPreferences

1

This study sheds light on the evolving consumer drinking habits over the past four years post-COVID-19. The research highlights the profound influence of health and wellness concerns on altering drinking behaviors across all age groups. For more cohort-specific insights, check out the study here: https://lnkd.in/gJ5ED32f

5

1 Comment

I am excited when Walmart innovates. The launch of their new Better Goods food brand is bringing innovation, a new private label brand, and new price points to their shelves. This is a smart move at a time when shoppers are changing stores to save money. I know people who have said they would not buy private-label food from Walmart. With this new launch of more than 300 products, there will be many new interesting and tasty products for shoppers to try. This is worth watching. #foodstrategy #foodandbeverage #foodinnovation

9

1 Comment

Uncle Nearest, the renowned U.S. whiskey producer, is expanding its portfolio by acquiring Square One Organic Spirits and stepping into the vodka market. This marks another significant milestone following its venture into Cognac last year with Domaine Saint Martin. Founder and CEO Fawn Weaver will lead Square One, with Allison Evanow staying on as an ambassador and innovation leader. This move highlights Uncle Nearest's commitment to authenticity and cultural resonance in its products. Uncle Nearest plans to rebrand Square One’s vodka and introduce a new line of organic vodkas made with corn, available across all 50 states this summer. Production will also move from Virginia to Tennessee. As Weaver stated, "By entering the vodka market, we’re not just expanding our portfolio; we’re responding to a consumer call for transparent, culturally connected brands.” This acquisition is a testament to the power of strategic growth and the importance of preserving authenticity in business. Source: Just Drinks #LiquorLawyer #Entrepreneurship #LegalServices #Law #DrinksIndustry #Regulations #AlcoholCompliance #WineIndustryAdvisor #AlcoholIndustryAdvisor #BeverageIndustry #SpiritsIndustry #AlcoholIndustry #UncleNearest #SquareOne #Vodka #OrganicSpirits

12

1 Comment

In the CPG industry it's not about how many doors/stores you get into it's about the quality of stores you get into. I look forward to building relationships with every retailer/buyer. Even though you may not be in a large bix box store at the moment focus on building relationships with independent retailers first then go from there. Building a personal brand helps out a lot in business. This is crucial to let buyers know about you and your products and why you started your business. #retail #growth #business #sales #mindset #businessgoals #businessrelationships #connection #integrity #cpg #startup

44

17 Comments

I hear a lot of talk about the pricing of premium non-alcoholic beverages these days and I feel like a lot of it misses the mark by a large margin. (Shocking, I know, that I disagree with a lot of folks.)There is a definite need for some hard conversations around pricing and value in the NA space, for sure. The disconnect I see is precisely around the “value” question. Nearly all of the criticism coming from the legacy bev-alc world revolves around the fact that, well…there’s no alcohol there. THAT’S THE ENTIRE POINT! For someone that is choosing not to consume alcohol, regardless of the reason, whether it is pregnancy, recovery, moderation or whatever, THERE IS NO PERCEIVED VALUE WHATSOEVER TO THE ETHANOL CONTENT OF A BEVERAGE! Pegging the value of a non-alcoholic beverage to an alcoholic analogue is a fundamental category error.

37

11 Comments

Check out this week's Consumer Report where we cover news surrounding Dollar Tree Stores and Krispy Kreme! Dollar Tree plans to sell its struggling Family Dollar brand, fast-food chains are considering limited-time value meals to boost short-term sales, and Krispy Kreme is adding four new doughnut dot flavors to compete with rivals like Dunkin'​ ahead of its McDonald's’s partnership. Also, comment your email address to be a part of our mailing list! Analysts: Sheil Patel

4

How many of you, at least on occasion, shy away from intimidating things? Admit it. We’ve all been there. I’ve been there. It’s simply human nature to prioritize things that come easy to us. To do otherwise, to push yourself outside your comfort zone, takes determination, focus, often with a goal in mind, and perhaps even some serious grit. Cathy Huyghe (CEO at Enolytics) wrote a truthful, transparent piece about how wine and data both fall into this “intimidation camp”. They’re scary to many because they’re unknowns. They’re going to take time and effort to get to a general baseline understanding, and only then can you really mature in your comprehension to where it starts bringing you value and joy. As a winemaker turned technologist, I am already an outlier. The importance of data-driven winery operations was always painfully obvious to me. In the early years of InnoVint, I was perplexed by how many modern wineries were resistant to even have a conversation with me about technology. “Why would someone leave winemaking to start a software company?” I was an anomaly. They were shocked by the career decision. The sentiment was that wine producers “don’t speak data.” Why would they need to? Today, those that are winning in wine absolutely do, and honestly, it’s an easier language to learn than ever before. During the last 10 years running InnoVint I’ve seen progress, albeit not as much as I’d like to see for the sake of our industry. There's so much good wine these days, so how do you stand out and continue to grow? You need to put data to work for you - to drive business efficiencies, to target and woo consumers in ways that have shown repeatable success, to accurately understand your financial health, and so much more. Don’t shy away. Lean in. Cathy agrees by saying “I am concerned what will happen if we as an industry continue to procrastinate around applying the most up-to-date technologies to our business challenges.” You simply can’t afford to be left behind. Put forth the time and effort to get over the first big learning hump. I promise the view from the top is quite nice, and you’ll really enjoy the pick up of pace cruising down the other side passing others by. https://lnkd.in/g_6rS8rS

37

8 Comments

Instead of always thinking Optimum Nutrition needs to be the "clear winner" in every protein category format for Glanbia Performance Nutrition (GPN), maybe ISOPURE is the better RTD protein beverage offering to compete against the likes of market leaders…Premier Protein, Fairlife/Core Power, and Muscle Milk. But you might be wondering why hasn’t ISOPURE been successful to those massive levels yet after ~26 years in market? - packaging swap needed - marketplace timing patience needed - retail/distribution strategy shift needed - protein technology advancement needed These internal/external factors could be converging together quickly...but will Glanbia be aggressive enough to take full advantage of it? #strategy #trends #markets #fmcg #cpg #sportsnutrition #supplements #protein #beverages #innovation #nutrition #health #wellness #productdevelopment #marketing #retailing #retail #grocery #merchandising #business #businessintelligence #entrepreneurship #consultants

20

3 Comments

Fresh Foods are still anchored in "stack 'em high, watch 'em fly" strategies- and yet we know sales growth is being outpaced by center-store items and retailers' continuing to do traditional commodity tactics are losing market share to more niche and relevant competitors. This article from WSJ shows the broader business world- as well as a many shoppers- want fresh foods marketed better. While I know we have better evidence of branded and marketing successes in Circana data, the point is there. We can't keep getting outmarket-ed when fresh foods are in demand! https://lnkd.in/gY-fyPQu #freshfoods #produce #bigdata #marketing

25

Distilled spirits lead American alcohol sales. In 2023, spirits sales (42 percent of market share) outpaced beer sales (41.9 percent of market share) for the second straight year. Newer products like spirits-based hard seltzers and ready-to-drink cocktails have fueled growth, while also blurring the lines of a categorical tax system. The result has been a spirited competition throughout the alcohol industry for market share, including calls to reform tax policy. Distilled spirits face the stiffest tax rates of all alcoholic beverages. These high tax rates are a combination of greater alcohol content in spirits than wine or beer and higher tax rates applied per alcohol content to spirits. A one-ounce shot of 40 percent alcohol-content spirit (0.4 oz of alcohol) carries greater taxes than an identical 12-ounce beer with 4.8 percent alcohol content (0.4 oz of alcohol). Read more: https://hubs.ly/Q02ypyNY0

7

1 Comment