Deli Trends - IMCEA · Growth in deli prepared foods 3.Consumer trends drive which deli to shop...

13 September 2012

Deli Trends

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Contains confidential and proprietary information of Nestlé Professional.

NESTLÉ PROFESSIONAL™ and STOUFFER'S® are trademarks of Société des Produits Nestlé S.A., Vevey, Switzerland.

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Industry Trends

1. Value= price, quality, & freshness

2. Retailers are “un-storing” – alternative draw to POS

3. Restaurant trends

4.Slowed new product development

Consumer Trends

1.Demand for low prices/value

2.Health & well-being

3.Convenience

4.Sustainability

5.Food Safety & Quality

6.Eating at home – looking for restaurant quality

Deli/Bakery Trends

1.Seeing impact of recession

2.Growth in deli prepared foods

3.Consumer trends drive which deli to shop

4.Manufacturers creating more healthful items

5. Store brand bakery items

6. Consumers want: local, healthful, all-natural, organic but not willing to pay

Restaurant Trends

1.Depression continues

2.Special Deals

3.Innovation & Experimentation

4.Regional/Ethnic

5.Smaller Portions & Family style (for 2 or more)

6. Upscale children’s offerings

Menu Trends

1.Comfort Food

2.Fresh food

3.Artisan ingredients & local sourcing

4.Mediterranean food

5.Positive messages: Health Benefits, Origins, Prep Methods

According to a 2010 estimate by the International Dairy Deli Bakery Association (www.iddba.org), prepared food sales at U.S. supermarkets are approximately $5.7 billion

and increasing at about 7% annually (Technomic).

Consumers are looking for value in their shopping experience. Shopper’s definition of value = price, quality, & freshness.

The future value chain will focus on “personal value propositions” - giving customers product they want, not what supplier wants to sell (IDDBA What’s in Store 2010)

*IDDBA – What’s In Store 2010

Deli Industry Overview

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Shopper Profile Spending Habits Food Purchase Drivers

All consumers have specific needs they're seeking to satisfy, along with particular occasions they're shopping for A key to maintaining customer loyalty to a retailer's brand is to connect with them by anticipating their needs

*IDDBA – What’s In Store 2010; NPD; Progressive Grocer

Deli Industry Shopper Overview

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Deli Food Trends

Entrees 6% of total deli sales Frozen entrees & refrigerated entrees saw volume decrease at food stores

Sides 3.7% of deli prepared sales Important considerations: Taste, Ingredients, Store Reputation, & Past Experience with Brand

Appetizers 13.2% of deli prepared sales; 6th largest category About 29% of consumers said they sometimes make a meal out of appetizers

Breakfast .4% of deli prepared sales Focus on “convenience, price, & speed of service; provide area sit and relax on the weekends

Comfort Food Financial instability has lead consumers to seek consistency in other areas of life; driving demand for iconic deli foods

Pizza 8th largest deli prepared category Families with children gravitate towards take- and-bake; up-scale consumers prefer specialty

Chicken & Rotisserie 14.2% - more sales than all other entrees Popular take-home meal for the families on the go – Rotisserie has moved beyond just chicken

Sandwiches & Wraps 12.7% of deli prepared sales More sandwiches featuring ingredients low in fat, reduced sodium, or fewer nitrates

Salads 21.4% of deli prepared sales Gourmet salads will take on Asian appeal such as Chinese, Japanese, & Thai.

Dips/Spreads/Hummus 8.7% of deli prepared sales Booming sales of refrigerated spreads are a big contrast to sales of spreads & dips in grocery aisle

Soup 1% of deli prepared sales Consumers are looking for restaurant quality soups at their supermarkets including exotic varieties

*IDDBA – What’s In Store 2010

Bakery 7.7% of total perishable sales; + 4.3% Whole grains, organic, gluten free, natural; Single serve, bite size trends

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What is Not Working Rice dishes, red pasta dishes

Anything cumbersome to create

Local sources of supply

Limited sku assorted and variety

What is Working Hot Case – bundled meal re-packs;

chicken & wings, pizza

Meal solutions such as salads & sides in a kit

Providing customers variety

Seasonal items & Holiday Meals

Moving to kits

Hot bar expansion

Eating right (organic)

Re-model with stations

Fresh, to go, healthy options

Providing a great shopping experience

Superior merchandising

Improvement of cold case product offerings

Strengths Pizza makes the deli a go to department

Loyalty cards

Well established bakery/deli departments

Strong sandwich programs

Healthy, unique, & exciting variety

Chicken sales

Weaknesses Labor issues to support the hot case – moving to

more grab n go

Lack of space or skill level for anything but chicken

Lack of PD group and formal procedures

Limited hot/cold case offerings

Poor price/value messaging

National Deli Account Feedback

Direction Support of rotisserie chicken & wings

Limited sku with stable core

Seasonal items

Moving to kits

Hot bar expansion

Eating right (organic)

Re-model with stations

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• 3 Items:

– Pizza Stix™

– Taco Stix®

– Buffalo-Style Chicken Stix

• Product Information:

– Bulk format

– 3oz. size

– 48 pieces/case

Pizza Stix™ Pepperoni flavored pizza topping paired

with marinara & mozzarella.

Taco Stix® Zesty seasoned beef taco filling & cheese

sauce, with a hint of chili powder.

Buffalo-Style Chicken Stix Diced chicken in a fiery Buffalo-style

sauce.

HOT POCKETS® STIX

• Snack Category:

– Snacks are up 168% over the past 3 years1

– Fast food chains, like KFC and McDonald’s, have expanded their snack offerings.

• Features & Benefits:

– Portable, on-the-go, mess-free snack

– Great price/value for the consumer

– Developed for fryer & ovens

– 4 hour hold time in warmer case

1Mintel- Menu Snacking

Innovation, May 2010

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Tender pasta made from enriched semolina and whole wheat flour. Blended with real New York Cheddar and Cheddar Club cheeses, and sea salt.Creamy and sharp. Indulgent and irresistible.

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STOUFFER’S® Whole Grain Mac & Cheese

Product Specifications

4 / 64 oz Pouch

GTIN# : 0-00-13800-55875-6

Globe Code: 12154155

Operational Benefits:

Whole Grain Mac & Cheese

• Distinguish menu with a unique, innovative offering

• Versatile flavor profile that will appeal to adults and children

• Meet demand for more whole grains

1 IFIC Foundation, 2010 Food & Healthy Survey 2 Datassential, 2010 3 Shopping for Health, Food Marketing Institue and Prevention Magazine, July, 2011

Whole Grain Opportunity:

• 72% of Americans are trying to increase their consumption of whole grains1

• The menu incidence of whole grain/whole wheat pasta at restaurants has doubled over the past four years2

• Consumers look more for healthy ingredients than avoid bad ones: fiber and whole grains are the most sought.3

Mac & Cheese Opportunity:

Growth Trend

• Mac & Cheese menu incidence has doubled since 2005

• Appears on 20% of all restaurant menus

• Category growth = 4.8%*

• Comfort Gourmet…

Health & Wellness: A closer look

• Dietary fiber from whole grains, as part of an overall healthy diet, helps reduce blood cholesterol levels and may lower the risk of heart disease.*

• Fiber-containing foods such as whole grains help provide a feeling of fullness with fewer calories, and so may help with weight management.*

• The 2010 Dietary Guidelines for Americans recommends consuming at least half of all grains as whole grains.**

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LEAN CUISINE® Whole Grain Lasagna with Meat Sauce

Home-style meat and tomato sauce, layered with whole grain rippled lasagna noodles, low-fat Ricotta and

Asiago cheese filling and part-skim mozzarella shredded cheese topping.


4 x 96oz Trays

1-00-13800-55365-2-00

Features and Benefits:

• Made with 51% whole grain pasta.

• Zero grams of Trans Fat per serving.

• Good source of Calcium, Fiber and Vitamin A.

Whole Grain Opportunity:

• 72% of Americans are trying to increase their consumption of whole grains

• The menu incidence of whole grain/whole wheat pasta at restaurants has doubled over the past four years

• Consumers look more for healthy ingredients than avoid bad ones: fiber and whole grains are the most sought.

Menu Applications:

• Center a serving of baked lasagna over a small portion of piping hot Marinara Sauce; garnish with crisp greens and fresh fruit.

• Microwave thawed lasagna to order; serve in individual ramekins.

• Complement with buttered Italian vegetables and warm garlic toast.

• Excellent with fried eggplant slices and chilled fruit salad.

Health & Wellness: A closer look

• Dietary fiber from whole grains, as part of an overall healthy diet, helps reduce blood cholesterol levels and may lower the risk of heart disease.*

• Fiber-containing foods such as whole grains help provide a feeling of fullness with fewer calories, and so may help with weight management.*

• The 2010 Dietary Guidelines for Americans recommends consuming at least half of all grains as whole grains.**

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STOUFFER’S® Mac & Cheese

Improvements:

• Improved Cheese Flavor

– Thru superior, aged cheese

• Improved Color

• Improved Texture

• Improved NHW

– Lower sodium, fat, and sugar

• Improved Preference

• Improved Holding

– Flavor holds up better

Insights:

• Consumers want real food, not processed food

• According to consumer research the top quality claim in terms of generating purchase interest for Mac & Cheese is ―Made with 100% Real Cheese”*

• In ad testing a “No preservatives/100% Real Cheese” advertising claim generated the highest persuasion score ever achieved**

• 100% Real Cheese

• No Preservatives

• Now…improved cheese flavor

• Freshly made pasta

Claims

• Made with Sea Salt

• Excellent source of Calcium

• No artificial flavors

• 0g Trans Fat per serving

*Prepared Foods Division Claims Testing 2004-2008 **Prepared Foods Division ASI Copy Testing 2005


4 / 76 oz Tray; 4 / 98 oz Tray 4 / 80 oz Pouch

Globe # 11000349; 11003987; 11007505

GTIN/UPC 1-00-13800-30340-7; 1-00-13800-30342-1;

1-00-13800-30695-8

Operational Benefits:

• Delicious real cheese flavor that will have guests coming back for more

• Better NHW for consumers that operators will feel better about serving

• Reduce waste—ability to hold without losing cheese flavor. Multiple pack options to best meet operational needs

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NESTLÉ PROFESSIONAL™ and STOUFFER'S® are trademarks of Société des Produits Nestlé S.A., Vevey, Switzerland. 10

STOUFFER’S® Chili with Beans


4 / 64 oz Pouches

Menu Applications: • Enhance cheese enchiladas by topping them with hearty chili • Combine chili with STOUFFER’S Mac & Cheese to form a cheesy

chili mac-n-cheese • Serve with cornbread • Use chili as a topping on hot dogs and hamburgers, as an

ingredient in an entrée and as a topping on appetizers

Tender ground beef simmered in a zesty tomato sauce, seasoned with chili powder, cumin and ground pepper.

Combined with kidney and pinto beans, green bell peppers and diced tomatoes. A hearty classic, always in demand.

Key Insights Chili comes in a pouch format capitalizing on the growth of pouch

format • Frozen pouch category is growing at 8.5% annually- at a rate

faster than foil tray format1 • 58% of operators want to purchase fully prepared frozen

entrees, sides and chilies in a pouch format2 • One in three operators prefer entrees in a frozen pouch format • 46% of operators prefers chilies in a frozen pouch format Chili has high menu penetration • Chili appears on 43% of the commercial restaurant menus • According to both commercial and non-commercial operators,

chili plays a key role on the menus

Operator Benefits Flexibility • Can be prepared in multiple cooking platforms- water

bath/boiling water and steamer giving operators the flexibility to choose the preferred method

• Pouch packaging frees up oven space Efficiency • Clear pouch with pre-printed bilingual cooking instructions • Pouch decreases clean up time and waste Quality Perception • Pouch has a higher perceived quality and freshness vs. frozen

tray and other packaging formats • Lower trash volume vs. foil tray and other packaging Food Cost • Pouch format provides 100% yield to help manage food cost

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STOUFFER’S® Pot Pie Mix

Sliced Carrots, Celery, Onions, Potatoes and Green Peas in a rich, thickened Chicken Broth with real cream. Hints of Thyme and Parsley. A dash of Sherry.


4 x 80 oz Pouches

Features:

• Versatile & unique

• Convenient, labor-saving dish

• Zero grams of trans fat and no preservatives

Operational Solutions:

• Versatile speed-scratch solution: Use as a component/filling to pastry/bread bowl, customize with proteins or additional vegetables, or heat & serve as is

• Frozen pouch format for A) easy prep in boiling water or steamer B) easy prep in oven when poured into tray or hotel pan, and C) for lower waste quantities

• Can be heated, chilled, portioned & sold in to-go packaging with 5 days refrigerated shelf life after baking – with sauce and vegetables maintaining their color quality

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STOUFFER’S® Vodka Cream Mix

Diced and fire-roasted tomatoes, tossed with al denté twists of rotini pasta in a tomato-based vodka sauce with real cream.


4 x 80 oz Pouches

Operational Solutions: • Versatile speed-scratch solution: Use as an entrée or

side, customize with proteins or additional vegetables, or heat & serve as is


• 3. Can be heated, chilled, portioned & sold in to-go packaging with 5 days refrigerated shelf life after baking – with sauce and vegetables maintaining their color quality

Features:




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STOUFFER’S® Pasta Primavera Mix

Perfectly-cooked broccoli, rotini pasta, julienned carrots and onions in an Alfredo sauce with real cream, aged Parmesan, Asiago and Romano cheeses, and a splash of Chablis.


4 x 80 oz Pouches

Operational Solutions: 1. Versatile speed-scratch solution: Use as an entrée or


2. Frozen pouch format for A) easy prep in boiling water or steamer B) easy prep in oven when poured into tray or hotel pan, and C) for lower waste quantities

3. Can be heated, chilled, portioned & sold in to-go packaging with 5 days refrigerated shelf life after baking – with sauce and vegetables maintaining their color quality

Features:

1. Versatile & unique

2. Convenient, labor-saving dish

3. Zero grams of trans fat and no preservatives

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STOUFFER’S® Cacciatore Mix

Chunky fire-roasted tomatoes, mushrooms, red peppers, onions, Asiago cheese, green peppers and spinach with red wine, roasted garlic, vinegar, paprika and traditional spices & herbs.


4 x 80 oz Pouches





Features:




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STOUFFER’S® Jambalaya Mix flavored with Andouille Sausage

A Creole-style sauce of diced and crushed tomatoes and smoky, spicy andouille sausage simmered with red and

green peppers, celery and onions, roasted garlic, paprika and a touch of hot sauce.


4 x 80 oz Pouches





Features:




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STOUFFER’S® Chicken & Noodles


4 / 64 oz Pouches

Menu Applications:

• Serve over corn bread and add scallions for garnish

• Serve in a baked bread bowl

• Top with flaky pie dough and bake until golden brown for a scrumptious pot pie

• Add andouille sausage, blackening spice and green bell peppers, for a Cajun inspired noodle soup

• Add garden peas and steamed diced potatoes for a tasty chicken and vegetable stew

• Spoon over cornbread squares and garnish with crisp bacon pieces

Tender cooked chicken with wide egg noodles in a creamy sauce complimented with julienne carrots and sliced celery

Features:

• 0 gr. trans fat

• Excellent Source of Vitamin A

• Good source of Calcium

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STOUFFER’S® Tortilla Mix


4 x 80 oz Pouches

Mexican dish reminiscent of "comida casera" or home cooking with the richness of chicken, authentic spices,

tomato, masa, and the boldness of chilies.

Menu Solutions:

• Combine STOUFFER’S® Tortilla Mix with pulled pork, fire roasted yellow corn, black beans, diced tomatoes, and shredded carrots. Top off the finished soup with a dollop of sour cream and chopped cilantro.

• Blend with shredded cheddar cheese, diced jalapeños, and cooked chopped chorizo meat and serve as a hot dip for freshly fried tortilla chips.

• Make your favorite enchiladas using pulled rotisserie chicken meat and shredded cheese wrapped in a corn tortilla topped with STOUFFER’S® Tortilla Mix.

• Combine a baked potato diced green and red peppers, black beans, Mexican cheese blend and fresh cilantro. Mound this back into the shells, bake until cheesy and hot, and top off with Stouffer’s® Tortilla Mix. Serve topped with a dollop of sour cream and fresh cut chives.

• Combine Stouffer’s® Tortilla Mix and Mexican seasoned shredded beef, roll into enchiladas. Take a pan of these and smother with more tortilla mix and top with crumbled queso fresco and bake until bubbly, gooey and delicious! Serve with yellow rice studded with carrots, peas and corn.

• Heat whole black beans, fresh roasted yellow corn and cilantro thoroughly with Stouffer’s® Tortilla Mix, and blend with a warm Mexican Con Queso. A plate of fresh fried tortilla triangles, seasoned with coarsely ground lime zest and cumin could be served as side.

Deli Trends - IMCEA · Growth in deli prepared foods 3.Consumer trends drive which deli to shop...

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