GLG News by Grocery Store Experts: Food and Beverage Consultants

Daniel DurickPresidentEmerging Food Technologies

Premium Steak House Guests can now have DNA-Assurance of their Steak's origin

May 27, 2011

DNA-based traceability is now available for Beef and Pork, particularly the cuts served by High-End/Fine DIning establishments. Animal DNA is proof positive of the source of each steer, and the standards of quality established by the Grower.

Daniel DurickPresidentEmerging Food Technologies

RONALD McDONALD is here to stay !

May 26, 2011

Analysis of:McDonald's under pressure to fire Ronald | online.wsj.com

Rumors of McOpCo fazing-out Ronald McDonald is pure fallacy. The Ronald character is the cornerstone of McDonald's concept and truly admired by their kid's consumers. The notion that Ronald is associated solely with 'bad-for-you' menu and food selections is hideous. The Ronald character is simply an identification with, and for, the McDonald's brand.

Leland DakePresidentStrategic Sourcing Partners

What is the Future of Traditional Grocery Stores in the Mass Attack?

February 8, 2011

What is the future of the traditional Supermarkets when Walmart (WMT) already owns 33% of the Grocery Channel and Target (T) is on fire with their PFresh format?  Some will say Target in the next 10 years will gain 20% Market Share of the Grocery Channel.  If you couple that will Walmart's current 33% and projected 40% in 10 years which retailers will survive the squeeze and which won't?. Who will be the next to fall,  will it be Kroger (KR)? Will it be Safeway (SWY)? Will it be Supervalu (SV)?

Rick SheaPresidentShea Marketing Consulting Inc.

Kellogg's Leadership in the Cereal Market Under Attack

October 28, 2010

We are what you would call a heavy user household for the cereal category .With 4 teenage and junior high school kids what could be easier on those busy Monday through Friday mornings than a quick bowl of cereal. It’s convenient, nutritious and tastes good. The adult brands like Special K and Fiber One also work well for Mom and Dad.

Rick SheaPresidentShea Marketing Consulting Inc.

Coffee Market Competition Remains Hot

October 20, 2010

Americans love their coffee and despite rising prices the love affair continues. Americans consume over $45 Billion dollars worth of coffee every year. Retail coffee shops like Starbucks drive most consumption but foodservice locations (offices, hotels, schools, restaurants) and the supermarket and grocery channel also drive strong sales. Despite a fickle and price sensitive consumer, coffee consumption continues to grow. As one would expect competition remains intense with ever growing crossover of retail brands (Starbucks, Dunkin Donuts, Caribou, Peets) into the home and foodservice channels.

Rick SheaPresidentShea Marketing Consulting Inc.

Food Industry Mergers To Rise In 2011

September 7, 2010

Analysis of:Food Industry Mergers To Rise in 2011 | seekingalpha.com

Competitive activity remains intense,interest rates are ridiculously low and shoppers are more price sensitive than ever before. These factors will lead to further food industry consolidation in 2011. This is the first of a series of articles on potential merger or acquisition candidates for the supermarket industry. Think of it as fantasy football for the food industry. Some players go for a high value others are acquired on the cheap.In this part we will tackle the food retailers. Folks like Walmart ,Target and Kroger get the most news but many smaller retailers will need to continue to drive cost savings through mergers. The food retailing industry remains driven by actions of the consumer and the consumer is telling them they want better costs with great quality. This has led to food products being sold in all channels of trade. The food industry major retailers are classified into eight major types:Traditional Supermarkets: Kroger,Safeway,Super ValuMass Merchandisers: Walmart,Target,MeijerClub Stores :Costco,Sam's,BJ'sDollar : Dollar General, Dollar Tree,Family DollarDrug : CVS,WalgreensConvenience : 7-11,WawaNatural and Organic : Whole Foods,Trader JoesExtreme Value : Aldi,Save A-LotOne of the leaders in growth has been the dollar store industry with its ever expanding selection of food and consumer packaged goods. This has put pressure on traditional supermarkets like Kroger along with discounters like Walmart. Expect further consolidation in both traditional supermarkets and dollar stores.

Rick SheaPresidentShea Marketing Consulting Inc.

Nestle Is The New 800 Pound Gorilla In Frozen Food

May 31, 2010

Nestle's recent acquisition of the Kraft frozen pizza division makes them the dominant player in frozen foods. With the acquisition, they add such well known brands as DIGiorno, Tombstone and California Pizza Kitchen to their already powerful frozen entrees and snacks brands (Stouffers,Lean Cuisine,Hot Pockets) With sales of more than $5.6 B in frozen foods they are more than triple their next major competitor Conagra with sales of $1.8B.

Leland DakePresidentStrategic Sourcing Partners

Frozen Pizza Category Dynamics

May 28, 2010

The Frozen Pizza Category is going through a lot of CPG changes with Kraft selling their Pizza Brands to Nestle and Schwans changing their selling organization.  Yet, the Category is performing well, lead by both the Value and Premium segments.

Leland DakePresidentStrategic Sourcing Partners

Pet Food Category Continues to prove to be Recession Proof

May 24, 2010

Do you know which Categories in the Supermarket Industry has held up the best during these tumultuous times the past couple years? Pet Food has proven again on a 52 week Nielsen recap to be recession proof. Year over Year Sales of the Pet Food Category have grown in not only dollars but also in Units. Nestle Purina as well as Private Label continue to lead this growth for this Category.

Leland DakePresidentStrategic Sourcing Partners

Wal-Mart and the impact of their price Rollbacks on other Supermarkets

May 24, 2010

Wal-Mart has definitely shaken up the Grocery Industry again with their latest Rollback Price Program. Coming off of their unsuccessful Project Impact Program Wal-Mart needed to make a bold move. What better than to go with their old bread and butter Rollback Pricing Program. What Wal-Mart has been able to accomplish with Rollback Pricing on key items in key Categories has been amazing. We will see large Market share gains by the CPG vendors that Wal-Mart has selected as Rollback items.

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