IGA Exclusive Brands Perspective

Secure Exclusive Brands Sales through Strong Merchandising

A message to the IGA Retailers from...
Dave Bennett
Senior Vice President
Procurement & Exclusive Brands
IGA USA

Shopper demand for private brands is growing briskly, as is the sales potential for IGA Exclusive Brands. Today, IGA's Dave Bennett uses findings from a recent white paper report developed with consulting company Willard Bishop to share how strong merchandising can positively affect IGA Exclusive Brand sales.

During the last few weeks I have passed along insights from the Willard Bishop study on maximizing sales with your weekly ad, strategic pricing, and POP material and signage. Today, in Part Four of my five-part Perspective series, I introduce another best practice from the study: the use of merchandising to drive awareness and sales of IGA Exclusive Brands.

IGA's independent retailers are some of the most creative merchandisers in the business, but it never hurts to have a reminder about merchandising best practices. And with IGA Exclusive Brand's vibrant new label, there's no better time to showcase your IGA products across the store to generate attention for your IGA offering. Consider these merchandising tactics:

• End-Caps
  While end-caps are typically devoted to the week's strongest sale prices, it's important to periodically allocate end-cap space to highlight your IGA Exclusive Brands—whether on sale or at regular price—to increase awareness of IGA product offerings.
• Floor Displays
  Floor Displays featuring Exclusive Brands should be sprinkled across the store to reinforce the broad variety of IGA products.
• Wall of Values
  Dedicating a "wall of values" to IGA Exclusive Brands, either some or all of the time, reinforces the fact that IGA Brands products have an everyday low price. Consider the scenario from one IGA Retailer: "We transitioned our wall of values from a mix of national brands and private label to full IGA Exclusive Brands a couple of years ago. Doing so has provided strong support for our IGA value equation."

Yes, these merchandising best practices are simple, but they're also highly effective. And remember, today's best practices on merchandising are only a small part of the insights offered in this study. Check out the full white paper report for more, and be sure to watch The Independent View for next week's Perspective on securing trial of your IGA products.

Thanks,

Dave Bennett

Retail News

C&S Wholesale Grocers, Inc. formed a long-term agreement to provide procurement and distribution services for all 97 Marsh stores across Indiana and Ohio. Full Story

About three-quarters of Odom's Tennessee Pride Sausage Inc.'s business is retail, with the rest devoted to foodservice. Annual sales total about $188 million, and the company is second in size to Jimmy Dean across the U.S., according to Odom's president, reported Meat & Poultry. Full Story (Free Registration Required)

New Store News: Fred's Inc. will open a 16,000-sq. ft. Fred's Super Dollar store in Pleasant Grove, AL on Aug. 26, reported Birmingham Business Journal. Full Story (Free Registration Required) ... Roundy's Supermarkets will open its first Mariano's Fresh Market in the Chicago market on Aug. 30, reported Chicago Tribune. Full Story (Free Registration Required)

Raley's is expanding its online shopping system to an additional 15 stores in the Sacramento, CA area, reported The Sacramento Bee. Full Story (Free Registration Required)

GPM Investments, LLC closed a $50 million credit facility that will allow the company to invest in new capital improvement projects and remain focused on improving operational efficiencies. GPM operates 212 convenience stores under the Fas Mart and Shore Stop brand names. Full Story

A St. Louis Park, MN-based Supervalu location will close at the end of next month due to competition from a nearby Rainbow Foods that opened nearby two years ago, reported Minneapolis / St. Paul Business Journal. Full Story (Free Registration Required)

Manufacturer News

Mars Chocolate North America broke ground for a manufacturing facility in Topeka, KS. The 350,000-sq. ft. plant is the first Mars Chocolate site built in the U.S. in 35 years and will pursue LEED Gold Certified designation. Full Story

Emerging markets delivered 45% sales growth for the H.J. Heinz Company , driven largely by acquisitions including Foodstar in China in November 2010 and the Quero brand in Brazil in April. The company recorded 13% organic sales growth in emerging markets, which set a record at 23% of total company sales, up from 18% a year ago. Total organic growth also reflected higher net pricing (3.8%), primarily in the U.S., UK and Latin America. Full Story

New Product News: Win Schuler Foods launched refrigerated Lia Marie's Original Garlic Spread and Five Cheese Garlic Spread in stores throughout the Milwaukee and Green Bay areas. Full Story ... Aunt Jemima Frozen Breakfast rolled out Oatmeal Pancakes. Full Story ... Baker's Pride, Inc. will introduce new products in the "better for you" category and expand manufacturing capabilities to service its private label, regional and national supermarket chain business. Full Story ... To Go Brands launched VitaRocks children's vitamins in 78 H-E-B stores in Texas. Full Story

Louisiana Food Co. signed a letter of intent to acquire a small, independent South Louisiana-based specialty food manufacturer with distribution in approximately 100 grocery stores. Full Story

General Mills was awarded with the 2011 CPG Award for Innovation and Creativity by the Grocery Manufacturers Association and its Associate Member Council. General Mills won the Division B category for finding an innovative, sustainable use for the 80,000 tons of oat hulls that are left over from the milling process of making Cheerios each year. Full Story

Foodservice News

Anthony's Coal Fired Pizza's CEO plans to expand the chain in Florida and the Northeast from its current 25 locations. Revenue grew from $19.1 million in 2008 to $39.7 million last year, reported Miami Herald. Full Story (Free Registration Required)

Quiznos is under financial pressure due to sharpened competition, waning sales and debt issues. Analysts claim the company is struggling to pay its debt and could be headed for a reorganization. "If they are successful in renegotiating their debt, they need to reinvent themselves with something that their competition does not offer," according to the president of National Restaurant Consultants, reported The Denver Post. Full Story

Executives on the Move: O'Charley's Inc. named David Head interim Concept President. Full Story ... The Dannon Company, Inc. made several appointments, including naming Eric O'Toole SVP, Foodservice & Restaurant Business Unit. Full Story

Health News

Some 15% of Americans stated soy is "good for women," compared to 3% in 2010, according to the 2011 Consumer Attitudes about Nutrition survey conducted by the United Soybean Board. Full Story

Washington News

FDA Deputy Commissioner Michael Taylor visited farms on a listening tour for 18 months, seeking to allay farmers' concerns. The first draft of farm rules mandated by the Food Safety Modernization Act is due early next year, and the agency is currently in the process of writing rules that are expected to address basics like hand-washing stations for field workers, tests of irrigation water and measures to protect fields from wild animals, reported The New York Times on the Web. Full Story (NYT Subscription Required)

USDA rejected a proposal from Mayor Michael Bloomberg to exclude sugar-sweetened soda from food stamp eligibility in New York City. Full Story

FDA is proposing a study to analyze differences in the knowledge, attitude and behavior toward food label use, nutrition and health among Spanish-dominant Hispanics, English-dominant Hispanics and English-speaking non-Hispanics, and the role that demographic and other factors may play in any differences. The proposed study will use a web-based survey to collect information from 2,400 adult members. Full Notice

Andronico's Community Markets is in negotiations with Renovo Capital to obtain Debtor-in-Possession financing and sell the company to the investor group as part of a Chapter 11 filing. Currently, Andronico' operates seven locations in California. Full Story

Reformulations in flavored milks served in schools are projected to result in fat free and low fat chocolate milks with 38% less added sugar, according to the Milk Processor Education Program. New milk products aim for 150 calories and fewer than 22 grams of total sugar (or 10 grams of added sugars) per 8-oz. serving. Full Story

USDA's Natural Resources Conservation Service is investing nearly $22.5 million in innovative conservation technologies and approaches that address a broad array of existing and emerging natural resource issues. Full Story

Global News

Swiss supermarkets are planning further price cuts in response to the soaring Swiss franc, which is driving food shoppers to Germany and France. Retailers like the cooperatives Migros and Coop and discounter Denner already cut prices of food, drinks and household and personal care items by up to 20%, and plan further reductions in the coming weeks. Migros is cutting the price of 500 branded products by 10% to 20%, while Coop is cutting the price of 700 items by up to 20%, reported The Wall Street Journal. Full Story (WSJ Subscription Required)

Increased localization of food sourcing, production and distribution is being used to build sales in emerging markets and address increasing costs for ingredients like milk, sugar and cocoa by global food companies. Nestle SA is looking to reduce its reliance on imports from Australia, New Zealand and the U.S. and double the company's local milk production by investing in local cooperatives, improving water supplies for cattle and building barns for local farmers in Indonesia. Local manufacturing of milk-based products cuts the need for transportation and expensive packaging, which can account for as much as 30% of the cost of goods sold, reported The Wall Street Journal. Full Story (WSJ Subscription Required)

UFood Restaurant Group Inc. is launching an expansion strategy to develop the brand in Europe and the Middle East. Full Story

African grocery retailer Shoprite is spending $416 million on upgrading and expanding its distribution centers. The company plans to open 24 new stores by June 2012, reported Reuters. Full Story

Only Lindt & Sprüngli's UK subsidiary failed to meet market expectations in the first half of 2011. Meanwhile, the increased costs of raw materials, namely for cocoa beans, are expected to remain extremely volatile. Full Story

A research agency in Japan's Fukushima Prefecture began testing about 110 varieties of rice in a search for strains that absorb less radioactive cesium from the soil, reported The Japan Times. Full Story

Market News

Corn futures in Chicago rose nine cents on Aug. 22 to close at $7.20 a bushel for September delivery. Corn futures rose amid speculation that the recent rains in the Midwest will not be enough to ease drought conditions and boost farmers' yields, reported The Los Angeles Times. Full Story (Free Registration Required)

Canadian bean and canola producer Legumex Walker Inc. will develop the first canola-crushing plant in Washington state in 2012. The $110 million plant will make food-grade canola utilizing expeller pressing technology. When complete, the plant will process 1,100 metric tons of seed a day and will produce 142,000 metric tons of oil yearly, reported Puget Sound Business Journal. Full Story (Free Registration Required)

Total frozen fruit stocks were up 22% from last month but down 15% from a year ago. Total frozen vegetable stocks were up 12% from last month but down 11% from a year ago. Total frozen poultry supplies on July 31 were up 2% from the previous month and up 10% from a year ago. USDA Cold Storage Report

Oregon's peppermint crop was worth close to $35.6 million in 2010 with roughly 21,000 acres in production. Peppermint oil is Oregon's 23rd most valuable commodity, and spearmint oil is 82nd, according to Oregon State University's Extension Economic Information Office, reported OregonLive.com. Full Story

Stone fruits account for 14% of total fruit production in Turkey, the third most significant after deciduous and citrus fruits. Cherry production was greatly affected by unfavorable weather conditions in 2011 and production decreased significantly down to 370,000 metric tons (MT). Peach production was also slightly affected by the harsh weather conditions and production decreased about 8% to 500,000 MT in 2011. FAS Report

USDA estimates 2011/12 Greek peach and nectarine production at 630,000 metric tons, with 340,000 metric tons going towards processing. Meanwhile, according to industry estimates, MY 2011/12 Greek apricot production is expected to decline 43% due to heavy frost during flowering in March. FAS Report

APHIS is amending regulations to allow the importation of commercial shipments of peppers from Panama into the U.S. without treatment, under certain conditions. Conditions of entry to which the peppers will be subject include trapping, pre-harvest inspection and shipping procedures. The rule is effective Sept. 22. Full Notice

APHIS seeks to reinstate the National Animal Health Monitoring System's Swine 2012 Study, which will be used to describe current U.S. swine production practices including general management practices, housing practices, productivity, disease prevention and mortality for five phases of production: gestation, farrowing, nursery, grow/finish and wean-to-finish. Full Notice