Supermarket Perimeter - March 2019 - 12

GOING
PREMIUM
Shoppers are looking for the high-end
products that retailers use to increase profits
BY RYAN ATKINSON

What makes a
product premium?
Nielsen defines a premium product as one that costs at least 20%
more than the average price for that specific product's category.

12 - MARCH 2019

Smaller companies lead the way
Premiumization is chugging along, but larger companies haven't always
been as successful as smaller players across all price points. According
to New York-based Nielsen, the 25 largest food and beverage companies drove just 3% of the total category growth from 2011 to 2015.
Companies below the top 100, meanwhile, drove an impressive 49% of
the growth.

49+25+233B
3%

23%

49%

25%

*
*
*
*

Uniqueness
Exotic origin
Particular processing
Design

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SHARE OF CATEGORY GROWTH
for U.S. food and beverage manufacturers
Small manufacturers (top 101 and below)
Mid-tier manufacturers (top 26-100)
Retailers (via private label)
Large retailers (top 25)
Source: Nielsen

* Unusual application or use
* Extraordinary packaging
* Channel of distribution/sale
Source: Specialty Food Association

HATFIELD, VOLPI

S

upermarkets as a whole are becoming more premium. With
a focus on the fresh perimeter, modern store design and
instore dining, today's grocery store is substantially more
high-end than that of yesterday.
It only makes sense, then, that consumers are increasingly shopping
for premium products. While there will always be a place for bargain
goods, value lunchmeat and plain, white bread, retailers can get a more
premium price out of more premium products.
"Consumers are craving high quality products now more than ever,"
says Deanna Depke, marketing manager for St. Louis-based Volpi, a
producer of artisan cured meats and snacks.
Part of that is the rise of foodie culture. Part of it can be attributed
to shoppers simply putting more stock in higher quality ingredients,
production and sourcing.
"Consumers relish the opportunity to consume the highest-quality
products, including baked goods," says CJ McClellan, global marketing
manager for Lenexa, Kansas-based Corbion. "In general, premiumization typically signals better quality or a higher degree of value that
motivates consumers to indulge in a product they want or need."


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Supermarket Perimeter - March 2019

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

Supermarket Perimeter - March 2019
Editor's Note - Ready to rumble
Contents
The Wire - Supermarket customer satisfaction sinks
Nearly half of consumers to increase organic consumption
United Fresh unveils plans for 2019 convention
Corbion ingredient receives innovation award
To serve or not to serve?
GOING PREMIUM
Thrifty, but willing to spend
Getting up to speed
Bakery - Branded goods
Bagels - What makes the perfect bagel
Deli - Meal kits 2.0
Hot entrees
Meat & Poultry - Heat-and-eat meats
Beef - Confident consumers, better quality drive big gains at retail
PRODUCE - PREVENTING SHRINK
Produce - Blueberries
Seafood - Poke power
Food Safety - Tamper-evident delivery
COMMISSARY INSIDER - Fresh-cut fruit
PACKAGING - FUNCTIONAL DESIGN
OPERATIONS - ORGANICS
FOOD SAFETY - INCREASING SHELF LIFE
Product Showcase
Advertisers
FRESH TAKES
Supermarket Perimeter - March 2019 - Supermarket Perimeter - March 2019
Supermarket Perimeter - March 2019 - Supermarket Perimeter - March 2019
Supermarket Perimeter - March 2019 - 2
Supermarket Perimeter - March 2019 - Editor's Note - Ready to rumble
Supermarket Perimeter - March 2019 - Contents
Supermarket Perimeter - March 2019 - 5
Supermarket Perimeter - March 2019 - Corbion ingredient receives innovation award
Supermarket Perimeter - March 2019 - 7
Supermarket Perimeter - March 2019 - To serve or not to serve?
Supermarket Perimeter - March 2019 - 9
Supermarket Perimeter - March 2019 - 10
Supermarket Perimeter - March 2019 - 11
Supermarket Perimeter - March 2019 - GOING PREMIUM
Supermarket Perimeter - March 2019 - 13
Supermarket Perimeter - March 2019 - Thrifty, but willing to spend
Supermarket Perimeter - March 2019 - 15
Supermarket Perimeter - March 2019 - Getting up to speed
Supermarket Perimeter - March 2019 - 17
Supermarket Perimeter - March 2019 - Bakery - Branded goods
Supermarket Perimeter - March 2019 - 19
Supermarket Perimeter - March 2019 - 20
Supermarket Perimeter - March 2019 - 21
Supermarket Perimeter - March 2019 - Bagels - What makes the perfect bagel
Supermarket Perimeter - March 2019 - 23
Supermarket Perimeter - March 2019 - 24
Supermarket Perimeter - March 2019 - 25
Supermarket Perimeter - March 2019 - Deli - Meal kits 2.0
Supermarket Perimeter - March 2019 - 27
Supermarket Perimeter - March 2019 - 28
Supermarket Perimeter - March 2019 - 29
Supermarket Perimeter - March 2019 - Hot entrees
Supermarket Perimeter - March 2019 - Meat & Poultry - Heat-and-eat meats
Supermarket Perimeter - March 2019 - 32
Supermarket Perimeter - March 2019 - 33
Supermarket Perimeter - March 2019 - Beef - Confident consumers, better quality drive big gains at retail
Supermarket Perimeter - March 2019 - 35
Supermarket Perimeter - March 2019 - 36
Supermarket Perimeter - March 2019 - 37
Supermarket Perimeter - March 2019 - PRODUCE - PREVENTING SHRINK
Supermarket Perimeter - March 2019 - 39
Supermarket Perimeter - March 2019 - 40
Supermarket Perimeter - March 2019 - 41
Supermarket Perimeter - March 2019 - Produce - Blueberries
Supermarket Perimeter - March 2019 - 43
Supermarket Perimeter - March 2019 - Seafood - Poke power
Supermarket Perimeter - March 2019 - 45
Supermarket Perimeter - March 2019 - 46
Supermarket Perimeter - March 2019 - 47
Supermarket Perimeter - March 2019 - Food Safety - Tamper-evident delivery
Supermarket Perimeter - March 2019 - 49
Supermarket Perimeter - March 2019 - 50
Supermarket Perimeter - March 2019 - 51
Supermarket Perimeter - March 2019 - 52
Supermarket Perimeter - March 2019 - COMMISSARY INSIDER - Fresh-cut fruit
Supermarket Perimeter - March 2019 - 54
Supermarket Perimeter - March 2019 - 55
Supermarket Perimeter - March 2019 - PACKAGING - FUNCTIONAL DESIGN
Supermarket Perimeter - March 2019 - 57
Supermarket Perimeter - March 2019 - OPERATIONS - ORGANICS
Supermarket Perimeter - March 2019 - 59
Supermarket Perimeter - March 2019 - 60
Supermarket Perimeter - March 2019 - 61
Supermarket Perimeter - March 2019 - FOOD SAFETY - INCREASING SHELF LIFE
Supermarket Perimeter - March 2019 - 63
Supermarket Perimeter - March 2019 - Advertisers
Supermarket Perimeter - March 2019 - FRESH TAKES
Supermarket Perimeter - March 2019 - 66
Supermarket Perimeter - March 2019 - 67
Supermarket Perimeter - March 2019 - 68
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