|
Jaime Zaguroli,
Senior Category Manager
(800) 935-2362,
Ext 677
Special Interest Articles:
- Freeze-Dried Fruits
- All-Natural Bacon Jerky
- More Space Given to Consumables
- Chocolate can benefit the elderly
- Expanded food, beverage mix drives customer traffic
- Strong candy sales expected to hoist Easter spending
- Chocolate-covered raisins, peanuts from Dove
- Chocolate’s popularity keeps on growing
- Have you ordered enough for Halloween?
- Consumables in Drug Stores Growing
|
|
Energy Drink Popularity Tempered
MMR |
|
| NEW YORK – Energy drinks and shots remain one of the most rapidly growing segments of the beverages category. And with sales having increased by 60% between 2008 and 2012, this still-small portion of the category is expected to maintain that momentum in coming years, market forecasters say.
According to a recent report from Packaged Facts, domestic sales for the energy drinks and shots market amounted to more than $12.5 billion last year; by 2017 sales are projected to grow to $21.5 billion.
Packaged Facts’ report, “Energy Drinks and Shots: U.S. Market Trends,” notes that marketers of energy shots and drinks are vying for consumers’ dollars in an intensely competitive beverages category, where they are going head to head with sports drinks, coffee, teas, enhanced waters and other subcategories that tout their functional attributes. |
Despite their remarkable growth in recent years, energy drinks have the lowest consumption rates of any ready-to-drink beverage – a fact that market watchers say is a result of the segment’s relative infancy and a sign of its strong growth potential.
According to the Packaged Facts report, energy drinks usage among adults rose from nearly 13% in 2006 to 17% in 2012.
The rising popularity of energy drinks and shots has caught the attention of many in the medical community who warn that over-consumption of these beverages can be dangerous.
Last month, for instance, a group of 18 physicians, researchers and public health officials urged the Food and Drug Administration to take action on energy drinks to protect adolescents and children from the possible risks of consuming high amounts of caffeine. |
“There is evidence in the published scientific literature that the caffeine levels in energy drinks pose serious potential health risks,” the group wrote in its letter to FDA Commisioner Margaret Hamburg.
The doctors, researchers and public health officials contend that energy drink makers have failed to meet the regulatory burden placed on them to show that the ingredients used in their beverages are safe, specifically where children, adolescents and young adults are concerned.
As a result, the group urged the FDA to restrict caffeine content in the products and also to require that manufacturers include caffeine content on product labels.
Questions? Contact Jaime Zaguroli at zaguroli@chaindrug.com or (800) 935-2362 x673. |
|
|
|
|
|
Freeze-Dried Fruits, Veggies Are All-Natural
Candy & Snack Today| January/February 2013 |
|
| Crunchies freeze-dried all-natural snacks are vegan-friendly and non-GMO, and are made by placing individually frozen fruits or veggies into a vacuum chamber that removes up to 97 percent of the moisture while still retaining all nutrients, enzymes and flavor, the company claims. |
Crunchies comes in 12 vegetable flavors, 10 fruit flavors, five organic flavors and six flavors of fruits in single-serve Munch Paks. The selection includes cinnamon apple, blueberries, strawberry/banana, BBQ corn and edamame.
The veggie products come in 2.25 to 3.25 ounce recloseable bags, while the fruit products come in one to 1.5 ounce recloseable bags. |
Each has a SRP range of $4.99 to $5.99. Single serving Crunchies come in 0.33 ounce bags with a SRP range of 99 cents to to $1.49, and organic Crunchies come in 1.5 to 2.25 ounce recloseable bags with a SRP of $5.99 to $6.99.
Questions? Contact Jaime Zaguroli at zaguroli@chaindrug.com or (800) 935-2362 x673. |
|
|
|
|
|
All-Natural Bacon Jerky Now Available
Candy & Snack Today| January/February 2013 |
|
| Oberto Brands adds bacon jerky meat snacks to its line of Oh Boy! Oberto all-natural jerky. The meat snacks include only real strips of bacon, water, sea salt and sugar, |
have no preservatives, and are cooked and smoked, the company says, claiming they contain 20 percent less fat than pan-fried bacon. |
The product has a SRP range of $5.99 to $6.49 and ships eight 2.5 ounce packs per case.
Questions? Contact Jaime Zaguroli at zaguroli@chaindrug.com or (800) 935-2362 x673. |
|
|
|
|
|
More Space Given to Consumables
MMR| December 10, 2012 |
|
| BOSTON – Retailers across a range of trade classes are devoting more space to consumables, a study released last month says.
According to “Know Your Space 2012,” a new report from Kantar Retail and the sales and marketing services company Crossmark, over the past few years there has been pervasive growth in retail space dedicated to consumables and a corresponding reduction in nonconsumables, with hard lines being the hardest hit.
The study, conducted at more than 700 stores in the fall of 2011, marks the second time Kantar and Crossmark have looked at space allocations. The initial study was done in 2009.
In the current study researchers looked at stores operated by such retailers as Walmart, Target Corp., Costco Wholesale Corp, Kroger Co., Safeway Inc., Supervalu Inc., CVS/pharmacy and Dollar General Corp. |
According to the latest findings, the shift in space is occurring at retailers in all three mass merchandising trade classes.
“This study is invaluable to companies that need to know where old opportunity has gone and where new opportunity lies within the U.S. retail landscape,” says Rachel Donovan, director of retail insights at Kantar Retail and the study’s lead author. “Assessing the amount of space devoted to a department and facing the shopper, and the resulting shopper impact, is critical to anyone interested in aligning to retailer strategies.”
According to the study, a growing number of retailers are willing to attempt to meet multiple shopper needs with a portfolio of stores, rather than a single box repeated as often as possible. |
Overall, dry grocery, alcohol, frozen, dairy, meat/seafood, service deli, produce, and health and beauty aids saw slight increases from 2009 to 2011 in the space allocated to these departments.
This added space, the study found, came from nonfood, bakery, hard lines, soft lines, cosmetics and pharmacy, with hard lines being hit the most.
“Know Your Space 2012 provides key trends and insights across major channels and retailers, with implications for merchandising, category management, and shopper marketing,” Crossmark vice president of business insights Alex Siskos says. “It provides valuable information for manufacturers to understand evolving store formats and shifts in product range and space allocation, as well as for retailers interested in their competitive landscape.”
Questions? Contact Jaime Zaguroli at zaguroli@chaindrug.com or (800) 935-2362 x673. |
|
|
|
|
|
Chocolate Can Benefit The Elderly
MMR | September 17, 2012 |
|
| GERMANTOWN, Md. – Senior chocolate lovers have some good news from a study conducted by an Italian university and Mars Inc. The research, performed by researchers at the University of L’Aquila and in Mars’ research and development department, provides evidence that regular consumption of dietary cocoa flavanols may imporve cognitive function in elderly people with early memory decline. |
The study, which has just been published in the online version of the journal Hypertension, significantly advances understanding of the benefits of flavanols. Previous research suggested that their benefits could extend to the brain, but those studies were either short term or did not demonstrate a consistent cognitive benefit. |
Other research has shown that consumption of cocoa flavanols helps support healthy circulation.
Questions? Contact Jaime Zaguroli at zaguroli@chaindrug.com or (800) 935-2362 x673. |
|
|
|
|
|
Expanded food, beverage mix drives customer traffic
Chain Drug Review |
|
| NEW YORK — The consumables category continues to be bountiful for chain drug retailers.
Drug chains are reaping plentiful sales and profits for segments ranging from beer to milk to snacks, with much of the business linked to the stores’ wellness positioning.
Among the chains where consumables have taken center stage is CVS/pharmacy. The chain’s “food convenience cluster” was rolled out to 4,000 stores over the course of nine months, starting in 2009. Outlets in the cluster were remodeled to have double the grocery space of previous stores.
The change resulted in a 12% lift in trips, CVS/pharmacy president Mark Cosby noted at winter’s outset.
The retailer’s urban cluster units, which can be viewed as general stores in areas where there is limited food competition, have also thrived.
“The cluster focuses on expanded grocery,” including fresh on-the-go food items, Cosby said. “The results have been impressive, as our sales went up 8% and our profits went up 9%.” |
CVS expects to have 450 urban cluster outlets by midsummer.
Walgreen Co., meanwhile, has taken food and beverage retailing to a new level at the chain’s new two-story flagship location at State and Randolph streets in Chicago’s Loop.
The store’s Upmarket Cafe has a barista preparing fresh-brewed premium coffee, including the exclusive State and Randolph brand, while a bakery serves a range of fresh-baked bread and pastries daily.
A juice bar features fresh fruits and vegetables and made-to-order smoothies. Chocolate malted milk shakes (invented by a Walgreens soda fountain manager in 1922) are also available. And customers may also opt for self-serve frozen yogurt.
A wide variety of fresh hand-rolled sushi and sashimi is prepared daily, as are hundreds of fresh food items, including produce and such on-the-go meals as wraps, sandwiches and salads made fresh daily. And a machine dispenses 130 varieties of Coca-Cola fountain drinks. |
“This unique urban retailing concept raises the bar for drug store retailing and sets us apart in our industry,” said Joe Magnacca, Walgreens’ president of daily living products and solutions. “As we transform from a traditional drug store to a retail health and daily living destination, this store demonstrates how we are a central part of life for many who live and work in this dynamic and thriving community.”
The consumables category is also flourishing at small chains. Food and beverages “continue to be a strategic strength” for Navarro Discount Pharmacy, says chief operating officer Jim Thatcher. “And we are always looking for opportunities to expand on our price and assortment leadership position.”
Aggressive promotions are “consistently delivering sales increases that are running positive to the prior year and positive to total company sales trends,” he adds.
Questions? Contact Jaime Zaguroli at zaguroli@chaindrug.com or (800) 935-2362 x673. |
|
|
|
|
|
Strong candy sales expected to hoist Easter spending
Chain Drug Review
April 9, 2012 |
|
| WASHINGTON – Candy sales were expected to boost Easter spending this year by 11%, according to the National Retail Federation’s (NRF’s) holiday spending survey, conducted by BIGinsight.
The poll found that Americans would shell out an average of $145.28 on candy and food as well as apparel and decorations this year, up 11% from $131.04 in 2011. Total spending was expected to reach $16.8 billion.
“Though the price of gas is on everyone’s mind, Easter is one of the few holidays in which some consumers are willing to stretch their budgets, especially because many children look forward to treats and new outfits on Easter morning,” |
said NRF president and chief executive officer Matthew Shay, adding that retailers can be expected to offer plenty of promotions on candy and food for eager holiday shoppers.
According to the survey, those celebrating Easter have a hefty appetite for candy. Almost nine in 10 (89.3%) said they planned to head straight to the candy aisle, where they would shell out more than $2 billion on such traditional favorites as chocolate eggs and jellybeans. The average person planned on spending $20.35, up from $18.55 last year. |
Americans were also set to fork over more on their Easter meals, with the average person expected to spend $44.34, up from $40.05 last year for a total of $5.1 billion.
Drug chains expected to do well their e-commerce sites. Nearly two in five survey respondents (18.7%) said they were going to shop online, up from 14.8% last year and just 11.1% in 2008,
“Beautiful weather conditions coupled with a slight lift in consumer confidence will likely be a boon to the Easter holiday this year,” commented BIGinsight consumer insights director Pam Goodfellow.
Questions? Contact Jaime Zaguroli at zaguroli@chaindrug.com or (800) 935-2362 x673. |
|
|
|
|
|
Chocolate-covered raisins, peanuts from Dove hitting store shelves this spring
Drug Store News; January 16, 2012
By Allison Cerra |
|
| The NEW Dove Raisins and Peanuts will be available for order at CDMA’s 86th Annual Trade Show next week! Just stop by the Mars booth.
HACKETTSTOWN, N.J. — Dove is pairing its chocolate with a new bite-sized candy that combines taste and texture. |
New Dove chocolate-covered raisins and peanuts is the latest “hand to mouth” candy from the brand, which will debut on store shelves this spring for a suggested retail price of $3.49 for a 5-oz. bag. |
The launch will be supported by a creative, multifaceted marketing campaign, including print, broadcast, online/social media, consumer promotions, in-store and shopper marketing.
Questions? Contact Jaime Zaguroli at zaguroli@chaindrug.com or (800) 935-2362 x673. |
|
|
|
|
|
Chocolate’s popularity just keeps on growing
Chain Drug Review
September 26, 2011 |
|
| NEW YORK – Sales of chocolate bars soared more than 15% in drug stores in the three months ended August 7 as consumers saw the confections as affordable indulgences during tough times.
Among the stronger performers in the category was 3 Musketeers, which saw volume jump more than 17% and has been relaunched with a new recipe to deliver more chocolate taste. |
To spotlight the new taste, manufacturer Mars Chocolate North America surveyed Americans on their likes and dislikes. The 3 Musketeers “More or Less” survey delved into what else Americans want more – and less – of.
The poll found that over 90% of Americans want more chocolate. Debra Sandler, chief consumer officer for Mars Chocolate North America, says, “The updated 3 Musketeers bar still has the same fluffy personality. But now the bar is packed with even more chocolate taste that consumers love.” |
Chocolate Growth
Questions? Contact Jaime Zaguroli at zaguroli@chaindrug.com or (800) 935-2362 x673. |
|
|
|
|
|
Have you ordered enough for Halloween?
Great news! Consumers are expected to spend more celebrating Halloween this year; which means retailers may need to stock up on a bit more than they did last year. The attached article, from Drug Store News, reports that the average consumer is expected to spend $6.03 more this year on Halloween themed merchandise That $6.03 increase per consumer is huge when you consider that total spending for the holiday is estimated to equal $6.86 billion this year.
This anticipated increase in spending must have you thinking…did you order enough merchandise for Halloween?
Halloween Candy Stock Up |
|
Consumables in Drug Stores Growing Quickly
|
|
| Consumables are a quickly growing category among drug stores. A recently released study conducted by AlixPartners shows that 5% of all grocery trips are made to drug stores, and that number is still on the rise.
The article quotes Russ Jones, director in AlixPartners’ Global Retail Practice, is saying “Shoppers are more willing than ever to try new venues – and, unfortunately for traditional grocery store, many shoppers are finding a better fit elsewhere.” |
How can drug stores take advantage of this growing market? They can start by carrying a small variety of impulse consumables, like candy and chips, if they do not already. Next, they can add in shelf stable basics, like peanut butter, jelly, jarred fruit and canned soup. Once they are ready to expand further they can add cereal, granola bars, boxed meal kits and even non-consumable grocery items like tin foil and paper plates.
|
Read the article from Chain Drug Review here.
Looking for consumables for your store? Questions? Contact Jaime Zaguroli at zaguroli@chaindrug.com or (800) 935-2362 x673.CDMA members can also login and visit our order guides here. |
|
