IGA Global Rally Perspective

The New Normal

A message to the Alliance from:
Todd Hale
SVP Consumer & Shopper Insights
The Nielsen Company

Look to The Independent View in the coming weeks to learn more about the presentations, panels and learning sessions that will take place at the IGA Global Rally this April. Today, The Nielsen Company's Todd Hale shares insights from his workshop, "The New Normal – Insights into the Post-recessionary Consumer."

As we work through one of the most challenging U.S. economic downturns on record, U.S. consumers are making significant shifts in what they buy and what they watch. Shoppers have pressed the reset button and habits have fundamentally changed. Planning is the new mantra as they turn to shopping lists and coupons, and value remains the mainstay. Many have traded down across categories and brands, and others reduced spending on away-from-home meals and entertainment in favor of at-home options.

The point is, not all consumers are responding the same, so manufacturers, retailers and wholesalers must look to consumer segments and consumer trends to get a grasp on real growth opportunities. Future success will come to those who understand the impact of consumer behaviors and attitudes along with promotion response and media consumption on category and retail sales.

Please join Nielsen at the IGA Rally where our learning session – "The New Normal"– explores the key consumer behavior trends that will affect U.S. Retailers and manufacturers in 2010 and beyond.

We look forward to seeing you there!

Todd Hale

Retail News

Walmart placed highly in the 2010 COLLOQUY Retail Loyalty Index in many categories, including Grocery, demonstrating that low prices drove consumer loyalty during the recession. Costco had the highest customer loyalty ratings in three of five Mass Merchant regional categories, while Kroger was the loyalty leader in the Midwest. In the Southeast, Publix moved up to first place from second-place in 2008, and in the Southwest H-E-B ranked first. Full Story

SUPERVALU and Remke Markets entered into an agreement for the sale of six Cincinnati bigg's stores to Remke. The transaction is expected to close this spring. SUPERVALU plans to close its five remaining bigg's stores before the end of May. Full Story New! The Food Institute's comprehensive Food Business Mergers & Acquisitions 2009 provides detailed analysis on the 263 mergers and acquisitions recorded in 2009. Organized into over 25 categories, the Food Business Mergers & Acquisitions 2009 guide is a valuable resource for examining individual deals as well as exploring larger trends in specific industries or international markets. To order and for more information, click here.

Safeway and SUPERVALU will exit their partnerships with Daymon Worldwide, opting to bring corporate-brand-building responsibilities in-house. SUPERVALU will end its relationship with Daymon on May 14 and Safeway will exit on May 28, reported Supermarket News. Full Story

Store brands represented 21.8% of unit volume in 2009 while only comprising 10% of items in stores for the 52 weeks ended Dec. 26, 2009, according to The Nielsen Co. In contrast, economy national brands made up 21.3% of sales, while taking up 29.7% of items in stores. Europe is the future of store brands, Nielsen predicts, as some European retailers already report over 40% of store sales coming from store brands, according to Europanel. Full Story

Some 54% of U.S. adults cite cash as their preferred form of payment, according to Packaged Facts' Consumer Payment Trends in the U.S., which incorporates data compiled by Experian Simmons' Spring 2009 adult consumer survey. Meanwhile, 68% of American adults have a debit card in their wallet and 67% have a credit card. Last year, 27% of U.S. adults, 61 million people, paid their bills online. Full Story

Executives on the Move: Dollar General Corporation promoted John Flanigan to EVP of the global supply chain and Bob Ravener to EVP and chief people officer. Full Story ... The Coca-Cola Company appointed Brian P. Kelley to lead the integration of The Coca-Cola Company's and Coca-Cola Enterprises' North American operations. Full Story

Manufacturer News

New Product News: Weston Bakeries introduced Wonder Smartwhite, with the fiber of 100% whole wheat bread. Full Story ... Bueno Foods introduced Buenatural New Mexican Style Green Chile Chicken Stew and Posole Stew with Red Chile and Chicken. Full Story ... Red Bull is launching a 19.2-oz. size in April, reported CSP Daily News. Full Story

Food fraud and misrepresentation is estimated to affect 5% to 7% of the U.S. food supply, but could possibly be greater, according to John Spink, an expert on food and packaging fraud at Michigan State University. However, recent developments of high-tech tools, including DNA testing, makes it easier to detect fraud that might have gone unnoticed a decade ago. DNA can be extracted from cells of fish and meat and from other foods such as rice and coffee, then compared to a database of samples, reported MSNBC. Full Story

Mars' Snickers, now a $2 billion-plus brand, differentiated itself by selling the product as a filling, premium-quality snack, but needs to focus on its core audience: baby boomers, according to supermarket consultant Phil Lempert, reported Advertising Age. Full Story (Free Registration Required)

The North American Olive Oil Association (NAOOA) launched a quality-control program to recognize and promote olive oils that measure up to industry standards. A voluntary testing process is available to all NAOOA members, and a seal of quality is granted to NAOOA members in good standing with oil that meets or exceeds the International Olive Council standard. Full Story

Alcoa dedicated a $24 million expansion of aluminum can recycling capacity at the company's Tennessee operations, which will increase recycling capability by nearly 50%. Full Story

Bergenfield, NJ-based Two Guys Jersey Tomato Sauce is rolling out in New Jersey. New flavors are being developed, and new products will be introduced when tomato season begins in July. The product is sold at Paramus, NJ-based Fairway Market and will be stocked at Whole Foods Market in two weeks and ShopRite later this year, reported The Record. Full Story

MillerCoors is rolling out its Miller Vortex bottle, which swirls beer as it pours, later this month. The company is also planning to launch Miller Home Draft, reported Chicago Breaking Business News. Full Story

Foodservice News

Brinker International Inc. will focus on improvements for its Chili's Grill & Bar chain, including a $100 million kitchen re-engineering program, set to increase speed of service and food quality. Chili's is working to complete a store refurbishment program in the U.S., as 40% of its restaurants are 10 years or older. The chain is looking to perhaps double its international restaurant count and plans to increase the number of countries in which it is doing business from 28 to 35, reported Nation's Restaurant News. Full Story (Free Registration Required)

More restaurant chains are rolling out tapas-like small plates of shareable items that typically are less expensive than appetizers to draw in customers, often placing these plates on separate menus. For example, small plates at Houlihan's fetch from $3 to $10, and in the key test market of Kansas City, small plates accounted for 28% of items sold, noted CEO Bob Hartnett, reported USA Today. Full Story

Health News

Individuals who ate half a bar of chocolate a week had lower blood pressure and a 39% lower risk of heart attacks and strokes, according to a study published in the European Heart Journal, reported BBC News. Full Story

Getting crucial nutrients from food, when possible, is better than taking supplements, according to nutrition experts, reported HealthDay. Full Story

Washington News

EPA will look to add bisphenol A (BPA) to EPA's list of chemicals of concern and require testing related to environmental effects. Full Story

No stationary sources will be required to get Clean Air Act permits that cover greenhouse gases before January 2011, stated EPA. Full Story

Walgreens received regulatory clearance from FTC to acquire Duane Reade. Walgreens expects to complete the acquisition in early to mid-April. Full Story

Pacific Ethanol, Inc.'s wholly-owned subsidiary Pacific Ethanol Holding Co. LLC filed a Plan of Reorganization and related draft Disclosure Statement with the U.S. Bankruptcy Court in Delaware. Full Story

Perfect Candy & Packaging Co. initiated a voluntary recall of its Whole Black Peppercorns as they may be contaminated with Salmonella. Full Story

Modern Products, Inc. initiated a voluntary recall of various seasoning products in relation to the Hydrolyzed Vegetable Protein recall from Basic Food Flavors. Full Story

FDA will hold a public meeting to provide information to individuals and groups interested in nominating or serving as voting and nonvoting consumer representatives to FDA advisory committees and panels. The public meeting will be held on Apr. 30 in Rockville, MD. Full Notice

USDA awarded the Application Transformation and Modernization System Integrator Blanket Purchase Agreement contract to SRA, International. Full Story

Global News

Yum! Brands aims to more than quadruple the total number of Pizza Hut, KFC and Taco Bell stores in India over the next five years to 1,000 restaurants, with Taco Bell expected to grow to between 50 and 100 branches during that time, according to Graham Allan, president of Yum!'s international division. Yum! Brands Inc.'s first Taco Bell restaurant, opened Mar. 16, attracts an average of 2,000 to 2,500 customers daily, reported The Wall Street Journal. Full Story (WSJ Subscription Required)

McDonald's Corp. may boost investment in Asia by at least 20% this year as consumer spending recovers. The company will invest $415 million in Asia, the Middle East and Africa this year to add 520 restaurants, stated Tim Fenton, head of the chain's regional business. Spending in the region was about $350 million in 2009. McDonald's may "aggressively start expansion" in South Korea, where comparable sales growth has been "double-digit" in the past four years, noted the executive, reported Bloomberg.com. Full Story Meanwhile, McDonald's Inc. opened the first Hamburger University in China to train new managers in the company's fastest-growing global market. The school, located in Shanghai, aims to have 5,000 graduates over the next five years, reported The Associated Press. Full Story

Market News

Sanderson Farms, Inc. plans to open a new $94 million poultry complex near Goldsboro, NC. The project will consist of an expansion of the feed mill for the company's Kinston, NC plant; a hatchery; a processing plant with capacity to process 1.25 million chickens per week; and a waste water treatment facility. Full Story

An initial six-week mission to catch Asian carp near the Great Lakes turned up none of the fish, suggesting few if any have eluded an electric barrier designed to block their path to Lake Michigan, officials stated, reported The Associated Press. Full Story

Cargill plans to install remote video auditing technology in its four turkey operations later this year, according to a presentation at the American Meat Institute's Animal Care & Handling Conference, reported Meat & Poultry. Full Story (Free Registration Required)

USDA will release its Agricultural Prices report on Mar. 30 at 3:00 p.m. EST. View Report

The Federal Crop Insurance Corporation finalized the Common Crop Insurance Regulations, Basic Provisions, Small Grains Crop Insurance Provisions, Coarse Grains Crop Insurance Provisions and others to provide revenue protection and yield protection. The amended provisions replace the Crop Revenue Coverage, Income Protection, Indexed Income Protection, and the Revenue Assurance plans of insurance. The action is intended to offer producers revenue protection or yield protection within one Basic Provision. Full Notice

The Federal Crop Insurance Corporation also finalized the Common Crop Insurance Regulations concerning Florida Avocado Crop Insurance Provisions to convert the Florida avocado pilot crop insurance program to a permanent insurance program for the 2011 and succeeding crop years. Full Notice