Tom M. Novak’s Post

Prices at restaurants and grocery stores are officially 30% higher than they were five years ago and, to one's disbelief, consumers are very upset about it. While one does have to take into account inflation, there's no ignoring how the new prices are creating new challenges for consumers and companies. With consumers buying fewer products, companies have to put more effort into what they produce, what they look like, taste like, and more. #Innovation #CX #BusinessGrowth #MarketGrowth #FutureOfFood

This is such a great article by Errol Schweizer, a former Head Merchandiser at Whole Foods Market. If you ever wanted to know how grocery prices are set, this is a great read. One note, consumers often look at a price and assume the brand is getting 50% or 60% of that price. The reality is the price on shelf it typically 3, and sometimes 4x what the brand sold it for, because of the multiple levels it goes through before getting on shelf. Keep that in mind next time you think brands are gouging you with pricing. And be sure to subscribe to The Checkout, Errol's highly insightful newsletter on the grocery industry. https://lnkd.in/ghspEwgK #grocery #inflation #cpg #foodprices https://lnkd.in/getCKZaW

Interesting research on consumer behavior in the inflationary grocery market. According to the recent survey of 1,000 shoppers, a third of them report they are currently engaged in that behavior as a way to cut their overall bill. More than four in 10 said they would consider doing that as a way to manage their grocery costs. Larger and bulk packages, including family-sized items and products from club stores, tend to be lower in price per unit. Accordingly, some shoppers are getting into their own personal distribution process. Advantage Solutions’ data shows that 78% of those taking part in this practice are doing it with family members, while 42% are divvying up purchases with friends and neighbors and 12% are getting into the habit with roommates. Many bulk and large items lend themselves to such a divide-and-conquer approach to grocery shopping. The survey found that fresh meat and seafood are tops among such purchases, with 44% of consumers mentioning those products, followed by pasta and rice (43%), beverages and snacks (39% and 38%, respectively). About a third of respondents said they buy and split cereal and breakfast foods, fresh produce and frozen foods. https://lnkd.in/esvm2PUG

𝗜𝘀 𝘀𝗵𝗿𝗶𝗻𝗸𝗳𝗹𝗮𝘁𝗶𝗼𝗻 𝗵𝗲𝗿𝗲 𝘁𝗼 𝘀𝘁𝗮𝘆? From cereal to orange juice, products are shrinking while prices hold steady—or rise. Experts say this cost-cutting tactic is becoming permanent, leaving consumers to fight back with smarter shopping. Some brands, like Tropicana, have already seen sales drop due to frustrated buyers. Is this the new normal, or can consumer behavior push back? https://lnkd.in/ekgzDu_B #inflatoin #foodnews #foodprices #foodandbeverage

𝗜𝘀 𝘀𝗵𝗿𝗶𝗻𝗸𝗳𝗹𝗮𝘁𝗶𝗼𝗻 𝗵𝗲𝗿𝗲 𝘁𝗼 𝘀𝘁𝗮𝘆? From cereal to orange juice, products are shrinking while prices hold steady—or rise. Experts say this cost-cutting tactic is becoming permanent, leaving consumers to fight back with smarter shopping. Some brands, like Tropicana, have already seen sales drop due to frustrated buyers. Is this the new normal, or can consumer behavior push back? https://lnkd.in/ekgzDu_B #inflatoin #foodnews #foodprices #foodandbeverage

🦃Grocery retailers: is your pricing in place for the #thanksgiving rush? With holiday meal planning in full swing, grocery shoppers are more price-conscious than ever. As your competitors adjust thousands of prices daily - from turkey and cranberries to everyday essentials - smart pricing intelligence can give you the edge this #holidayseason. Check out this detailed blog that reveals how DataWeave's #pricing intelligence helps grocery retailers stay competitive by: • Eliminating pricing inconsistencies across product sizes and variations that confuse customers and hurt sales • Preventing revenue leakage by monitoring competitor prices on critical items that drive store traffic https://lnkd.in/ge-66frv #grocery #retail #CPG #BlackFriday2024 #dataanalytics

Such interesting insights. 62% of shoppers read labels (meaning that what’s in the food and how it’s made matters). Also, the idea of value has shifted. “During the recession in 2008, consumers would switch to a private label or opt for a cheaper brand when they didn’t have the money. Now, they aren’t as willing to do that if the brand doesn’t align with their expectations and fit to their taste, according to Albright.” So knowing that many folks ARE switching to PL and PL’s share of wallet is increasing, does this mean that PL is winning on price and taste now? I remember when we used to call the PL brand “generic.” Not any more. Kroger’s label diversification in the 2000s (that is still carrying on now) has really upped the game for PL. How can name brand items compete? How do they show their customers prospective consumers that they’ve got the better product (showing value for the cost/taste ratio)? #consumertrends #kroger #privatelabels #ingredient #betterforyou #value #cpg #groceryretail #walletshare #price #inflation

🌟 Explore the changing dynamics of the food and beverage industry! 🚀 Discover the key elements for customer attraction and retention, driving growth and success in this dynamic market.

During pandemic product shortages, when consumers couldn't find their favorite foods or brands on the shelves, many of them tried new brands and products -- and discovered that they liked them even better. And now it's not only happening again as consumers are fed up with high prices, but innovative brands are there to welcome those shoppers and diners with open arms. Last week I stopped into Walmart to check out their new private label Bettergoods brand, picking up some cinnamon honey butter for breakfast the next day. But, in addition to the new items like cold brew coffee ice cream and campfire salsa, I was surprised to see how many interesting items are coming out of their core Great Value brand: blueberry pie breakfast cereal, lemon creme oatmeal, Raising Cane's-style chicken finger dipping sauce, etc. I even ended up checking out their Walmart+ membership program now that Amazon is raising prices and their streaming service has ads. In Menu Matters LLC's 2024 Consumer Need States Report, nearly 30% of consumers said they are buying more private label goods now. I've also had multiple conversations with people over the past few weeks who have tried Chili's again after hearing about the $10.99 "3 For Me" deal, which comes with unlimited drinks and chips plus an entree (including a new chicken sandwich and smash burger). "It was cheaper and better than my last fast food burger," one colleague told me. These moments when consumer purchasing patterns are in flux can be painful, but they can also be an opportunity for many brands. “It’s not that I can’t afford it now,” one consumer said in this article after quitting his coffee habit because of pricing. “It’s the frustration that the same meal now costs nearly double what it did.” So which brand will be there to welcome him to his new coffee ritual -- or even an entirely new category? https://lnkd.in/gnBUWj-m #prices #economics #value #consumers #cpg #restaurants #brands #walmart #pricing #inflation #innovation #menumatters

As we get further into 2024, the landscape of grocery stores continues to evolve, with new trends emerging constantly. For food manufacturers, it is crucial to be informed and adapt to these grocery store trends to stay relevant and meet the changing demands of consumers. See what trends we’re keeping an eye on this year on our blog. https://ow.ly/vTiJ50R5osc