Supermarket Perimeter - January 2019 - 15

YOUTH MOVEMENT
Millennials and Gen Z drive perimeter innovation
BY ANDY NELSON

A natural fit for the perimeter

WEGMANS

The next generation of consumers is digitally astute,
extremely diverse demographically and very interested in and aware of the type of foods they put in their
bodies, says Neil Stern, a consultant with Chicago-based
McMillan Doolittle.
Millennials - now entering their 30s - have more
disposable income and are starting to gravitate towards
meal kits and other meal solutions, he says.
Gen Z, on the other hand, is more health-driven
- more likely, for instance, to follow a plant-based diet
- and more adventurous when it comes to trying foods
from around the globe.
When it comes to shopping the fresh grocery
perimeter, younger Americans are a natural fit, Stern
says. They're driven more by fresh - they're more
likely, for example, to avoid preservatives and processed
foods - and more inclined to use the produce department as a source of center-of-the-plate solutions. Being
more health-aware, Stern says, is "simply driven by their
upbringing."
But so much of the shopping done by Millennials and
Gen Zers is online. Will they still go to grocery stores?
"Yes, they will still go to grocery stores, though with
less frequency than boomers and older generations,"
Stern says. "This is the main concern for grocers -
making sure they can entice these customers to come
more often."

Younger Americans will continue to do more and
more of their shopping online. But Stern believes that
the vast majority of the grocery business will still be
conducted through physical stores.

Follow the (young) leader
Younger people set the trends older Americans later
adopt, says Lauren Scott, chief marketing officer of
the Newark, Delaware-based Produce Marketing
Association (PMA). One thing marketers can count on:
with millennials and Gen Z, "change is going to happen
very rapidly."
The top millennial and Gen Z trend PMA is tracking
- one that's been building major momentum the past
two years - is transparency, Scott says.
"People want to know what's in their food, how
it's grown. Younger Americans are hyper-sensitive to
that now."
That's good news for "raw materials" like fresh fruits
and vegetables, but also for other foods in the fresh perimeter, Scott says. Foods that are labeled "made instore"
or "prepared instore" or some variation thereof have a
distinct advantage when it comes to attracting millennials and Gen Z.
The two demographics have much in common,
Scott says. Both place social justice and corporate
responsibility at or near the top of their lists of things
they're looking for in the producers of their foods. But
they're by no means identical, she says. Gen Zers have
more of an individualistic and entrepreneurial bend
- and marketers of grocery fresh perimeter products
would be wise to tap into it.
The most important thing to remember when it
comes to marketing grocery perimeter items - or most
anything, for that matter - to younger consumers is that
they are determined to find easier ways to shop, says Bill
Bishop, chief architect and co-founder of Barrington, ILbased Brick Meets Click.
"And their definition of 'easier' is not the same" as
older generations' definitions, Bishop says. "They're happy to leverage their digital skills to look for ways to shop
more easily. They don't necessarily need to go to the
store, and in some respects that's unnerving and scary.
'Why go out when I can order it and get it delivered this
afternoon?'"

Likelihood
of buying
groceries
digitally:

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W

ho can crack the millennial and Gen Z code?
Today's youngest consumer classes
demand transparency and freshness from
their foods, and they want them to come from companies that share their ethical values.
And that's just for starters. Millennials and Gen Zers
also crave convenience and ease, particularly when it
comes to giving them a meal solution for that very day
they're going shopping.
And while the fresh perimeter has a distinct advantage when it comes to luring younger Americans into
brick-and-mortar stores, retailers must still work hard
to come up with the kind of experiences that will keep
them coming back.
Not an easy task. But one that's crucial to ensuring
fresh perimeter viability in the 21st century.

www.supermarketperimeter.com

Millennials
more often

55%

about the same

43%

less often

2%

Boomers
more often

43%

about the same

54%

less often

3%

Source: Retail Feedback
Group's 2018 U.S. Online
Grocery Shopping Study

JANUARY 2019 - 15


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Supermarket Perimeter - January 2019

Table of Contents for the Digital Edition of Supermarket Perimeter - January 2019

Supermarket Perimeter - January 2019
Editor's Note - More of a good thing
Contents
The wire
Ready to run
YOUTH MOVEMENT
From passion to profits
Bakery - Natural ingredients
Pastries
Deli - Seasonal merchandising
Snacking cheeses
Meat & Poultry: Dietary callouts
Flavor enhancers
Produce: Brand power
Leafy greens
Seafood: Sustainable gains
Food safety - Equipment innovations
Commissary Insider
FOOD SAFETY - FACILITY DESIGN
PRODUCT CATEGORY SPOTLIGHT - SANDWICHES
PACKAGING - SINGLE-SERVE PACKAGING
R&D - CLEANING AND SANITIZING
Product Showcase
Advertisers
Fresh takes
Supermarket Perimeter - January 2019 - Supermarket Perimeter - January 2019
Supermarket Perimeter - January 2019 - Supermarket Perimeter - January 2019
Supermarket Perimeter - January 2019 - 2
Supermarket Perimeter - January 2019 - Editor's Note - More of a good thing
Supermarket Perimeter - January 2019 - Contents
Supermarket Perimeter - January 2019 - 5
Supermarket Perimeter - January 2019 - The wire
Supermarket Perimeter - January 2019 - 7
Supermarket Perimeter - January 2019 - 8
Supermarket Perimeter - January 2019 - 9
Supermarket Perimeter - January 2019 - 10
Supermarket Perimeter - January 2019 - Ready to run
Supermarket Perimeter - January 2019 - 12
Supermarket Perimeter - January 2019 - 13
Supermarket Perimeter - January 2019 - YOUTH MOVEMENT
Supermarket Perimeter - January 2019 - 15
Supermarket Perimeter - January 2019 - 16
Supermarket Perimeter - January 2019 - 17
Supermarket Perimeter - January 2019 - 18
Supermarket Perimeter - January 2019 - 19
Supermarket Perimeter - January 2019 - From passion to profits
Supermarket Perimeter - January 2019 - 21
Supermarket Perimeter - January 2019 - 22
Supermarket Perimeter - January 2019 - 23
Supermarket Perimeter - January 2019 - Bakery - Natural ingredients
Supermarket Perimeter - January 2019 - 25
Supermarket Perimeter - January 2019 - 26
Supermarket Perimeter - January 2019 - 27
Supermarket Perimeter - January 2019 - Pastries
Supermarket Perimeter - January 2019 - 29
Supermarket Perimeter - January 2019 - 30
Supermarket Perimeter - January 2019 - 31
Supermarket Perimeter - January 2019 - Deli - Seasonal merchandising
Supermarket Perimeter - January 2019 - 33
Supermarket Perimeter - January 2019 - 34
Supermarket Perimeter - January 2019 - 35
Supermarket Perimeter - January 2019 - Snacking cheeses
Supermarket Perimeter - January 2019 - 37
Supermarket Perimeter - January 2019 - 38
Supermarket Perimeter - January 2019 - 39
Supermarket Perimeter - January 2019 - Meat & Poultry: Dietary callouts
Supermarket Perimeter - January 2019 - 41
Supermarket Perimeter - January 2019 - 42
Supermarket Perimeter - January 2019 - 43
Supermarket Perimeter - January 2019 - Flavor enhancers
Supermarket Perimeter - January 2019 - 45
Supermarket Perimeter - January 2019 - 46
Supermarket Perimeter - January 2019 - 47
Supermarket Perimeter - January 2019 - Produce: Brand power
Supermarket Perimeter - January 2019 - 49
Supermarket Perimeter - January 2019 - 50
Supermarket Perimeter - January 2019 - 51
Supermarket Perimeter - January 2019 - Leafy greens
Supermarket Perimeter - January 2019 - 53
Supermarket Perimeter - January 2019 - 54
Supermarket Perimeter - January 2019 - 55
Supermarket Perimeter - January 2019 - Seafood: Sustainable gains
Supermarket Perimeter - January 2019 - 57
Supermarket Perimeter - January 2019 - 58
Supermarket Perimeter - January 2019 - 59
Supermarket Perimeter - January 2019 - Food safety - Equipment innovations
Supermarket Perimeter - January 2019 - 61
Supermarket Perimeter - January 2019 - 62
Supermarket Perimeter - January 2019 - 63
Supermarket Perimeter - January 2019 - 64
Supermarket Perimeter - January 2019 - FOOD SAFETY - FACILITY DESIGN
Supermarket Perimeter - January 2019 - 66
Supermarket Perimeter - January 2019 - 67
Supermarket Perimeter - January 2019 - PRODUCT CATEGORY SPOTLIGHT - SANDWICHES
Supermarket Perimeter - January 2019 - 69
Supermarket Perimeter - January 2019 - 70
Supermarket Perimeter - January 2019 - 71
Supermarket Perimeter - January 2019 - PACKAGING - SINGLE-SERVE PACKAGING
Supermarket Perimeter - January 2019 - 73
Supermarket Perimeter - January 2019 - 74
Supermarket Perimeter - January 2019 - 75
Supermarket Perimeter - January 2019 - R&D - CLEANING AND SANITIZING
Supermarket Perimeter - January 2019 - 77
Supermarket Perimeter - January 2019 - 78
Supermarket Perimeter - January 2019 - 79
Supermarket Perimeter - January 2019 - Product Showcase
Supermarket Perimeter - January 2019 - Advertisers
Supermarket Perimeter - January 2019 - Fresh takes
Supermarket Perimeter - January 2019 - 83
Supermarket Perimeter - January 2019 - 84
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