August 11, 2011

 IGA Retailer Best Practices Perspective

Crossroads IGA Stores Join Forces for One Exceptional KidsFest Carnival!

A message to the IGA Alliance from...
Shannon Hunt
Marketing Coordinator
Houchens Industries
Bowling Green, KY
LDC: Associated Wholesale Grocers, Inc.

IGA's second community marketing event of the year, IGA Hometown Fest, is going on through the end of August. IGA stores across the U.S. are taking part in this summertime event by hosting carnivals to celebrate their local kids. Today, Houchens' Shannon Hunt shares how four Crossroads IGAs leveraged a relationship in their community to create an exceptional KidsFest event.

There are four Crossroads IGA stores in the Bowling Green area, and for years now those stores have been joining together to hold one large KidsFest carnival. The community has always looked forward to it, so when this year our regular venue didn't work out we knew canceling wasn't an option. We started looking into other venues, including the local Beech Bend amusement park. We've sold tickets to the park in our IGA stores for a while now and we sponsored some renovations of the park last year, so we thought it couldn't hurt to ask.

We had a meeting where we pitched the idea with the director of the park, and she loved it. She was so excited she offered us a place to set up in the park at no charge, and also arranged for half price admission for kids 12 and under on the day of the event. After that we were totally sold and started planning.

Each of the four Crossroads IGAs formed a five or six person team, then everyone got together to work out the activities. They had lots of great ideas, and eventually landed on things like a dunking booth, face painting, karaoke with a local celebrity and a scavenger hunt.

The team members all had specific assignments, and when they got there an hour before the gates opened the day of the KidsFest they were able to jump right in. We organized a buddy system so that there were two people stationed at each activity, and boy were we glad we did that when we saw how many kids were there. We knew Beech Bend was a popular amusement park, but we assumed that we would end up having around 300 or so kids because most people would be visiting other areas of the park. We actually ended up with thousands of kids, and our IGA employees were working double time to keep things organized!

In the end we really couldn't have asked for better IGA advertising. We had IGA Red Ovals all over the park—and even better—we made sure that every one of those thousands of people would end up in one the Crossroads stores by handing out store coupons. It was a great event, and it certainly reinforced how important it is to build relationships in your local community!

Thanks,

Shannon Hunt

 


Retail News

Recent economic turmoil may prompt companies holding cash to curb spending and bolster their holdings further, according to The Wall Street Journal. Cash held by non-financial firms in S&P's 500-stock index are up 59% from the third quarter of 2008 to some $1.2 trillion. Full Story (WSJ Subscription Required) Meanwhile, small businesses are also taking action, noted The Journal. The owner of Finz seafood restaurant in Salem, MA expects customers will opt for lower priced wines with dinner and has put off spending $50,000 to enclose a porch area until at least next year. Full Story (WSJ Subscription Required)

Americans' favorite ice cream flavors are: chocolate (28%); vanilla (26%); and cookie dough/cookies and cream (22%), according to a Harris Poll conducted by Harris Interactive. Other top choices are: butter pecan/Swiss almond (19%); mint chocolate chip (15%); strawberry (12%); and rocky road (11%). Full Story

Grocery square footage in Chicago's food deserts increased 11% over the past two years, though the areas remain underserved, according to a study by Mid-America Real Estate Corp. The West Side grew approximately 18.7% increase in grocery square footage, largely due to a proposed 60,000-sq. ft. Pete's Fresh Market that will open next summer. While the number of food retailers in Chicago and its suburbs increased 8.8% since 2009, growth was largely due to discount and gourmet retailers. Full Story

Worldwide mobile payment users will surpass 141.1 million in 2011, up from 102.1 million in 2010, according to Gartner. Mobile-payment volume is forecast to total $86.1 billion, up from $48.9 billion last year. Subway's VP of global marketing sees the "opportunity to integrate not just payments but social media, search, location, GPS (and) mobile offers," reported USA Today. Full Story

Some 97% of moms shopping for back-to-school supplies plan to look for sales or specials, while 72% claim price is the No. 1 factor, according to a survey released by Parago. Approximately 63% of moms shopping for school supplies this year will use coupons. In addition, 41% of shoppers will visit retailer websites to print out coupons, versus 33% last year. Full Story

New Store News: Family Dollar opened its 7,000th store in Memphis, TN. Full Story ... Sheetz opened a location in the Pittsburgh, PA-area. Full Story ... Pret A Manger is in talks to open its first suburban location in Evanston, IL, reported Chicago Tribune. Full Story (Free Registration Required)

FoodLink added Price Chopper Supermarkets to its online commerce platform for sourcing and managing perishable goods, and will serve 128 stores in Connecticut, Massachusetts, New Hampshire, New York, Pennsylvania and Vermont. Full Story

Chicago-based four store grocery chain Moo & Oink Inc. will either be sold or face liquidation following declining sales and poor economic conditions, noted Austin Weekly News. The company attempted to sell the business in 2010, but the owners were unable to find a buyer interested in purchasing the retail meat company. Full Story

River Vale, NJ-based Vero Farms & Marketplace boasts meat, charcuterie, cheese, seafood and bakery departments as well as produce, prepared foods and shelves of imports. A cheese selection includes fresh mozzarella made in the store and burrata, a specialty mozzarella filled with cream, reported The Record. Full Story

Kmart launched the YouTube eight-part original Spanish-language miniseries Madres y Comadres, which focuses on two Hispanic mothers. The webisodes are styled to resemble a mock 'telenovela,' and are accompanied by 12 video interviews with Hispanic moms from Mexico, Peru, Guatemala and Colombia describing the nuances of raising American children in a traditional Hispanic household. Full Story

Manufacturer News

Food recalls in the U.S. increased during the second quarter of the year, according to the quarterly ExpertRECALL Index. Undeclared allergens were the most common cause, accounting for more than 45% of all food recalls. Salmonella was the second leading cause of food recalls during the quarter. Full Story

About 40 million American households purchased a Velveeta product within the last year, according to Nielsen data cited by Kraft. The company is launching Velveeta Cheesy Skillets, a line of just-add-meat pasta dinner kits, in four varieties. Velveeta spent $7.6 million on advertising for all its products in 2010, up from $4.2 million the year prior, according to the Kantar Media unit of WPP, reported The New York Times on the Web. Full Story (NYT Subscription Required)

Overhill Farms, Inc. entered into a sales, distribution and co-manufacturing agreement with Bellisio Foods, Inc. Under direction of Overhill Farms, Bellisio will provide sales management services for the Boston Market frozen food line. Bellisio will also manufacture approximately 50% of the Boston Market products. Full Story

William Ackman's Pershing Square Capital Management raised its stake in Fortune Brands Inc. to 13.5% from 10.9%, according to a regulatory filing. Pershing Square now holds 20.82 million shares of Fortune Brands, reported Reuters. Full Story

New Product News: Win Schuler Foods launched refrigerated Original Garlic Spread and Five Cheese Garlic Spread in Schnucks, Dierbergs Markets and Shop 'n Save stores. Full Story ... The FRS Company introduced Healthy Protein and Healthy Energy beverages in recyclable bottles. Full Story

Foodservice News

The Top 400 restaurant franchise companies generated an estimated $33 billion in sales in 2010 and accounted for almost 10% of the total commercial restaurant industry's $361 billion sales. Total units from the Top 400 came to 27,117, comprising nearly 5% of the commercial restaurant industry's units, according to the 2011 Top 400 Restaurant Franchise Company Report, produced by Technomic in conjunction with Restaurant Finance Monitor. Full Story

Health News

Eating red meat, especially processed products, increases the risk of type 2 diabetes, according to a study published in American Journal of Clinical Nutrition. Individuals can lower their diabetes risk by replacing red meat with proteins such as nuts, whole grains or low-fat dairy products, reported HealthDay. Full Story

Washington News

Florida dairy farmers will oppose a proposed new federal dairy support program that would penalize them for overproduction when farm prices fall below a profitable level, reported The Lakeland Ledger. Full Story (Free Registration Required)

Dr Pepper Bottling Company of Dublin, Texas issued a response to a federal lawsuit filed against the company. The company will pursue using its local label. Full Story

Global News

Canada's federal government will stop inspecting provincial meat plants. The end of the federal inspections will affect about 100 provincial facilities where the Canadian Food Inspection Agency has had an arrangement for decades to inspect provincial slaughterhouses and processing plants on their behalf, reported Montreal Gazette. Full Story

Ontario issued approximately $1.5 million in grants to increase the amount of local food served across a variety of taxpayer-funded institutions, including municipalities, postsecondary schools and a northern native reserve. Some of the money will go to support small distributors who specialize in forging local food connections, reported The Globe and Mail. Full Story (Free Registration Required)

Darden Restaurants, Inc. entered into a formal area development agreement with CMR to develop and operate Darden's Red Lobster, Olive Garden and The Capital Grille brands in Mexico. The agreement calls for CMR to initially develop a minimum of 37 restaurants in the country over the next five years. Full Story

Hormel is positioning Spam as a premium product in China, reported Bloomberg Businessweek. The company altered Spam's formulation to make it "meatier" for Chinese tastes. Spam's overseas revenue doubled in the past five years. Full Story

Nestle SA plans to double dairy output in Pakistan by spending $413 million over the next three to four years as it looks to fend off local rival Engro Foods Ltd. The investment will be used to build new milk factories. The money will also help boost the juice, yogurt and noodle businesses of Nestle Pakistan, whose market value doubled in the past year, reported Bloomberg.com. Full Story

Tesco threatened legal action after being hit with a $16.1 million fine from the Office of Fair Trading following an inquiry into the price fixing of dairy products, reported BBC News. Full Story

Now Available! The Food Institute and Willard Bishop presented a one-hour webinar, The Future of Food Retailing 2011, which provided unique and unparalleled insights into retailer strategies, identified specific actions that Walmart and others are taking and detailed intended and unintended consequences of retailers' actions. To learn more and purchase, click here.

Market News

Corn production is forecast at 12.9 billion bushels, up 4% from 2010. If realized, this will be the third largest production total on record for the U.S. Peanut production is forecast at 3.61 billion-lbs., down 13% from last year. Area for harvest is expected to total 1.12 million acres, down slightly from June and 11% lower than 2010. Meanwhile, U.S. dry edible bean production is forecast at 20.5 million cwt for 2011, down 36% from last year. USDA Crop Production

U.S. wheat supplies for 2011/12 are lowered 30 million bushels this month as higher forecast winter wheat production is more than offset by lower area and production for durum and other spring wheat. Soybean supplies for 2011/12 are reduced as lower forecast production is only partly offset by higher beginning stocks. WASDE Report

Shippers of Northwest pears expect strong demand and aggressive promotions when a big crop of high-quality fruit begins shipping in volume in September, a week to 10 days later than normal. An estimated 19.2 million boxes of pears will ship from the Northwest this year, reported The Packer Online. Full Story

Potato yields should be light in some areas of Colorado's San Luis Valley this season, but volumes should be promotable. Over half of the crop marketed by Aspen Produce LLC could have average or below-average yields due to smaller sets, stated the company's marketing director, reported The Packer Online. Full Story

Poultry farms that transitioned from conventional to organic farming have significantly lower levels of antibiotic-resistant bacteria than conventional poultry farms, according to a study published in Environmental Health Perspectives, reported HealthDay. Full Story

DuPont's Pioneer Hi-Bred completed a $1 million expansion project at its corn research center in New Holland, PA. The project consisted of a 9,600-sq. ft. equipment storage and maintenance facility with a new corn dryer. Full Story

APHIS will authorize the importation into the U.S. of fresh papaya fruit from Malaysia. Based on the findings of a pest risk analysis, APHIS found that the application of one or more designated phytosanitary measures will be sufficient to mitigate the risks of introducing or disseminating plant pests or noxious weeds via the importation of fresh papaya fruit from Malaysia. Full Notice

APHIS prepared a pest risk analysis associated with the importation into the U.S. of fresh Cape gooseberry fruit (Physalis peruviana L.) with husks from Chile, and is making the analysis available to the public for review and comment. Full Notice

The Department of Commerce is extending the time limit for the final results of the administrative review of certain frozen warmwater shrimp from Vietnam. The review covers the period Feb. 1, 2009, through Jan. 31, 2010. Full Notice

 

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