U.S. Consumer Trends May 3, 2013 – version 1

U.S. Consumer Trends May 3, 2013 – version 1
Over the past five plus years of recession and recovery, economic, demographic, and other influencers created fundamental changes in the way retailers and manufacturers meet shopper demand. We’ve seen some excellent innovation from U.S. retailers and manufacturers as they looked to seize the moment and “drive the recession wave” rather than “ride the recession wave.” We will explore examples of those in this presentation. Todd Hale SVP, Consumer & Shopper Insights May 3, 2013

Table of contents Demographic Trends (3)
Generational (6) The Growth Majority (21) Convenient Consumer Solutions (51) Health & Wellness (85) Sustainability (109) Media Trends (114) Summary & Closing Thoughts (132) Topics covered in this report include: Demographic trends providing growth opportunities for U.S. manufacturers and retailers with focus on generations and multicultural segments Convenient consumer solutions Health & wellness Sustainability Media Trends Summary and closing thoughts

Demographic Trends Let’s take a look at key demographic trends with respect to generational consumer segments and multicultural segments.

Changing face of the American Consumer
Urbanization & Industrialization foster … Declining birth rates … Which lead to an aging population With important implications on the future … Immigration & Growth in Ethnic Families Declining % of HHs with Children Older Consumers with New Needs Most of the demographics shifts we will see over the next 10 years are the result of a cycle of economic growth, followed by decreased fertility and household size, and finally an aging population. Globally we see this cycle playing out, but it is important to realize that each country is in a different place in the cycle. For example, many Western European countries, the US, and Japan are in the final stages of this cycle with aging populations increasing. On the other hand, many African and Middle Eastern countries are in the earlier phases of economic growth and decreased fertility rates. As a result of this cycle, we see five implication areas emerge: Uneven Population Growth by Economic Status Declining % of Households with Children Older Consumers With New Needs Changes in Per Household Spending Immigration & Growth in Ethnic Families Changes in Per HH Spending Uneven Population Growth

“Recession Big Factor as Birthrate Falls”
The annual number of births per 1,000 women ages 15 to 44 dropped 8% in the U.S. from 2007 to 2010… Yet the rate for foreign-born women dropped 14%... compared with a 6% decline for U.S.-born women Recession Big Factor as Birthrate Falls Updated November 29, 2012, 6:29 p.m. ET A steep decline in births among immigrant women hard hit by the recent recession is the driving force behind the record low U.S. birthrate, according to the Pew Research Center. The annual number of births per 1,000 women ages 15 to 44 dropped 8% in the U.S. from 2007 to 2010 to 64 births per 1,000, according to a report released Thursday by the nonpartisan Pew center. The U.S. birthrate peaked during the baby boom, at in 1957. Immigrant women, both legal and illegal, still have a higher birthrate than the U.S. population as a whole. Yet the rate for foreign-born women dropped 14% between 2007 and 2010, to 87.8 births per 1,000 women ages 15 to 44, compared with a 6% decline for U.S.-born women, to 58.9 births. The birthrate plunged 19% for immigrants of Hispanic origin during that period; among Mexicans, the largest group among Hispanics, the rate plunged 23%. FULL STORY: U.S. Birth Rate Falls to a Record Low; Decline Is Greatest Among Immigrants by Gretchen Livingston and D’Vera Cohn Released: November 29, 2012 Overview: The U.S. birth rate dipped in 2011 to the lowest ever recorded, led by a plunge in births to immigrant women since the onset of the Great Recession. Pew Research Center: CDC Birth Data: FULL STORY: The Wall Street Journal, Nov. 29, 2012 Source: The Wall Street Journal & Pew Research Center

Generational Trends In terms of generational trends …

Census: Whites no longer a majority in US by 2043
A lot of stats on how quickly this country is changing in terms of diversity across multicultural populations. But there are some amazing stats on the size and importance of the aging population. And my guess is that the 85 year old of the future might just behave differently than many of today’s 85 + consumers. Census: Whites no longer a majority in US by 2043 By HOPE YEN, Associated Press Published: Dec 12, 2012 at 3:36 PM PST WASHINGTON (AP) — White people will no longer make up a majority of Americans by 2043, according to new census projections. That's part of a historic shift that already is reshaping the nation's schools, workforce and electorate, and is redefining long-held notions of race. The official projection, released Wednesday by the Census Bureau, now places the tipping point for the white majority a year later than previous estimates, which were made before the impact of the recent economic downturn was fully known. America continues to grow and become more diverse due to higher birth rates among minorities, particularly for Hispanics who entered the U.S. at the height of the immigration boom in the 1990s and early 2000s. Since the mid-2000 housing bust, however, the arrival of millions of new immigrants from Mexico and other nations has slowed from its once-torrid pace… …By 2060, multiracial people are projected to more than triple, from 7.5 million to 26.7 million — rising even faster and rendering notions of race labels increasingly irrelevant, experts say, if lingering stigma over being mixed-race can fully fade. The non-Hispanic white population, now at million, is projected to peak at 200 million in 2024, before entering a steady decline in absolute numbers as the massive baby boomer generation enters its golden years. Four years after that, racial and ethnic minorities will become a majority among adults and wield an even greater impact on the "youth vote" in presidential elections, census projects. FULL STORY: Source: USA TODAY (Feb. 4, 2013)

Older more trips; younger bigger baskets
Total Retail Channels Millennials Gen X Boomers Greatest Gen Millennials Gen X Boomers Greatest Gen We do see diverse shopping patterns across the generations. The older generations shop more often, but younger offset less trips with bigger baskets. The biggest annual spenders are the boomers and generation X consumers – those more likely to have larger families. Younger households, those who have felt the greatest pain during our soft economy are more mindful about buying on deal. Greatest Generation: Prior to 1946; Boomers: , Gen X: , Millennials: Millennials Gen X Boomers Greatest Gen Millennials Gen X Boomers Greatest Gen Millennials more deal prone Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, excludes gas only or Rx only trips; *UPC-coded products

trip capture among younger is paramount
Shopping Trips Per Household Younger generations are less frequent shoppers in the grocery, supercenters and drug channels, but they are on par with older generations in mass merchandisers. The younger generations are less frequent shoppers in club, dollar and convenience/gas too. With fewer trips, trip capture is paramount among the younger generations. Greatest Generation: Prior to 1946; Boomers: , Gen X: , Millennials: Trip capture among younger generations is paramount Except in mass, younger make fewer trips Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, based on total basket ring, excluding gas only or Rx only trips

Young offset less trips with > trip spend
Basket Ring $ Per Trip But the younger generations offset fewer trips by spending more per trip – even in the Mass channels where they are on par with older generations in terms of shopping frequency. So what categories and brands are best at filling the baskets of the younger generations? Greatest Generation: Prior to 1946; Boomers: , Gen X: , Millennials: What categories & brands are best at filling the baskets of younger generations Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, based on total basket ring, excluding gas only or Rx only trips

Target has > relative appeal among younger
Shopping Trips Per Household Total Basket Ring $ Per Trip While Walmart banner stores capture many more shopping trips than Target or Kmart, we see that Target has greater relative appeal among younger populations. Unlike Walmart and Kmart, younger populations shop Target more frequently than the older segments . Greatest Generation: Prior to 1946; Boomers: , Gen X: , Millennials: But Walmart still captures more trips Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, based on total basket ring, excluding gas only or Rx only trips

> Walmart trips among lower income
Shopping Trips Per Household Total Basket Ring $ Per Trip And Target shows greater relative strength among more affluent households, but here again, Walmart wins overall in terms of number of trips. More Target trips from affluent Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, based on total basket ring, excluding gas only or Rx only trips

Generational store mix is paramount
Where is your category or brand driving sales? Annual $ Per Household Among Category Buyers Greatest Gen Boomers Gen X Millennials Baby Food 38 48 89 119 Carbonated Beverages 93 131 127 104 Cereal 63 70 86 88 Detergents 46 52 57 47 Hair Care 28 39 49 40 Ice Cream 42 35 Pet Food 215 233 173 120 Vitamins 132 82 69 Wine 129 125 100 The generations also exhibit diverse category spending levels. Some of the differences are driven by diverse household composition (i.e., baby households within younger generations), while others are driven by diverse preferences (i.e., ice cream, pet food, vitamins and wine among older generations). Where is your category or brand driving sales? How can you help your retail partners create generational store sets. Read as: Greatest Generation wine buying households spend $129 annually on the wine category. Greatest Generation: Prior to 1946; Boomers: , Gen X: , Millennials: How can manufacturers & retailers collaborate on generational store sets? Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, UPC-coded products

50% 10-15% The divide Boomer CPG $ Spend Ad Dollars Aimed at 50+ Years
….Perhaps because boomers are not fully understood as they enter this new phase of their lives or… perhaps because the world simply has not caught up with them - they are also under-communicated to …. Consider this compelling fact… Despite representing roughly 50% of CPG spending, advertising dollars continue to be spent elsewhere… Why is this? and how can we help unlock the opportunity that Boomers represent? _______________________________________________________________ The other slide we got from an article - Boom Time For Boomers by Charlene Weisler, TV Board for Tuesday, Jan. 29, 2013 Boomers represent the single largest consumer group in America, yet only 10-15% of advertising campaigns are focused on the 50+ consumer group. Evidence suggests that those 55+ (and especially 65+) – are the most under represented. Boomer CPG $ Spend Ad Dollars Aimed at 50+ Years Source: TV Board & Nielsen

BOOMERS DRIVE THE TOP TV SHOWS
16 out of 25 However the reality is that these Heavy viewers drive all top TV programs We compared the top 25 shows, for 18-34, 35-49, & 65+ Boomers, the age demo, are dominating 6 of the top 10, and 16 out of top 25 TV shows. When you add in 65+ consumers,…. aging consumers dominate 21 of the top 25 shows Source: Nielsen

Redefining senior audience & focus
AARP: Get a Donut with purchase of a L or XL Hot Coffee If you're 55+, you can save an additional 10% on your food bill (less V.I.P savings, taxes, and coupons) the first Wednesday of every month. Kroger: Seniors receive a 10% discount OFF of your total purchases on the first Wednesday of every month. All Seniors, 60 years and older are eligible! (southern Illinois, southern Indiana, select KY & Nashville, TN area stores Only!) Lot’s of retail reward programs for seniors (what about the young who have struggled the most during this economic climate) and AARP does a great job of differentiating age groups. Source: AARP, Walgreens, Kroger, Fry’s, Harris Teeter

Grocery call-in service for elderly & disabled
Roche Bros. Launches Call-In Service Mar 16, :25 PM, By SN STAFF WELLESLEY HILLS, Mass. — Roche Bros. Supermarkets, an 18-store operator here, recently started a call-in service allowing shoppers to phone in an order and have it delivered. The service aims to help shoppers who have compromised health and mobility issues that affect their ability to conduct everyday tasks like grocery shopping. Roche Bros. launched an online shopping and delivery service in 2005 but found that the elderly and disabled often did not have access to a computer or the knowledge needed to place online orders. FULL STORY: NEWS RELEASE: Roche Bros. Supermarkets March 7, 2011 BREAKING NEWS!! Roche Bros. Supermarkets Just Launched Our Call-In Delivery Service! No Computer? No Problem! Just Call Us & We’ll Create Your Account, Place Your Order & Deliver It Right To Your Door! Call-In Days Are Monday & Wednesday from 9:00 am – 5:00 pm. Ready To Get Started? Have Your List Ready & Just Call ! Additional Call-In Fees Apply! Source: Source: Roche Bros.

Health & Beauty Care senior focus
Most of the focus is on health & beauty – what are food & beverage manufacturers waiting for? Updated: Aug. 8, 2012 Sources: MultiAd Kwikee & company websites

Smaller portion sizes, but what else?
Here are some great examples of meals for two or one to serve the senior or smaller household population, but what else? How about larger font-size on package labels? Vitamin/Mineral fortified foods targeted against the older population? How about targeted coupon drops & trial packs in senior communities? Updated: Sept. 12, 2012 Source: MultiAd Kwikee

Grandparents multiplier effect
U.S. Grandparent population will grow by 11% from 69.6 million in to 77.1 million by 2015 And while the 11% growth rate between 2010 and 2015 is an impressive number for retailers and manufacturers looking to drive growth, just think about the “multiplier effect” of grandparents when you consider the number of children and grandchildren they have the potential to spend against. The millennial age segment has been called the most “loved” generation of all time and that has been driven by baby boomers who spent a lot of dollars trying to buy that love! What is the multiplier effect for your banner or brands? Source:

The Growth majority At our annual Nielsen client conference, our CEO, Dave Calhoun, stated that “companies need to devote 65% of their time against multicultural”. If you look at the changes in the composition of our U.S. population base, it is easy to see why more focus needs to be placed on taking advantage of the growth majority from multicultural populations segments.

Census: Whites no longer a majority in US by 2043
A lot of stats on how quickly this country is changing in terms of diversity across multicultural populations. But there are some amazing stats on the size and importance of the aging population. Census: Whites no longer a majority in US by 2043 By HOPE YEN, Associated Press Published: Dec 12, 2012 at 3:36 PM PST WASHINGTON (AP) — White people will no longer make up a majority of Americans by 2043, according to new census projections. That's part of a historic shift that already is reshaping the nation's schools, workforce and electorate, and is redefining long-held notions of race. The official projection, released Wednesday by the Census Bureau, now places the tipping point for the white majority a year later than previous estimates, which were made before the impact of the recent economic downturn was fully known. America continues to grow and become more diverse due to higher birth rates among minorities, particularly for Hispanics who entered the U.S. at the height of the immigration boom in the 1990s and early 2000s. Since the mid-2000 housing bust, however, the arrival of millions of new immigrants from Mexico and other nations has slowed from its once-torrid pace… …By 2060, multiracial people are projected to more than triple, from 7.5 million to 26.7 million — rising even faster and rendering notions of race labels increasingly irrelevant, experts say, if lingering stigma over being mixed-race can fully fade. The non-Hispanic white population, now at million, is projected to peak at 200 million in 2024, before entering a steady decline in absolute numbers as the massive baby boomer generation enters its golden years. Four years after that, racial and ethnic minorities will become a majority among adults and wield an even greater impact on the "youth vote" in presidential elections, census projects. FULL STORY: Source: Associated Press

Ethnic will be majority by 2050
Distribution of the U.S. Population 54% 35% Uneven population growth & economic development will spur unprecedented numbers of international immigrants . Countries in the more developed regions have already started to compete for immigrants, especially skilled ones. The more developed world will need millions of immigrants to fill the labor force gaps left by their aging populations. By the year 2050, ethnic households will be the majority in the U.S., driven mostly by the growth in Hispanic households. Source: U.S. Census

White Non-Hispanic skews much older
U.S. Population Age by Ethnicity The hidden effect is how immigration impacts the ethnic makeup of families with children and younger consumers. It is primarily younger persons who become migrants, either bringing their families along with them or starting families in their new homes. The impact of large numbers of young immigrants entering a population is faster growth in ethnic populations among families with children. They become more ethnic more quickly than middle aged and older parts of the population. In the U.S., Hispanics make up a much higher share of households with children than total households. By 2025, the majority of U.S. households with children will be multi-cultural – less than half will be non-Hispanic, native-born white. This same effect will appear throughout the more developed world forcing marketers to think about different tastes and perhaps different languages when selling to this group. Source: U.S. Census

Multicultural behind growth in large metros
% U.S. White Population The Brookings Institute released some interesting findings from the 2010 Census. For example: “Non-whites and Hispanics accounted for 98 percent of population growth in large metro areas from 2000 to 2010.” The large metro areas represented the top 100 metros. Shifts in White population were greatest in the large metros where the percentage of White population dropped from 71% in 2000 to 57% in There were less severe downward shifts in small metros and in non-metro areas, but White population is the clear majority in those areas. Large metros Small metros Non-metro areas Source: State of Metropolitan America - Brookings

Factoids to drive multicultural engagements
% U.S. White Population “Asians even more concentrated with 1/3rd living in just three metros: Los Angeles, New York, & San Francisco” “42 of 100 largest metros lost white population & 22 are “majority minority” populations” “Nearly half of Hispanics live in just 10 large metros, but those accounted for only 36% of Hispanic growth” “Atlanta, Dallas & Houston led all metros in Black population gains, while populations dropped in New York, Chicago & Detroit” And some other amazing factoids to drive your multi-cultural engagements: “42 of 100 largest metros lost white population & 22 are “majority minority” populations” “Nearly half of Hispanics live in just 10 large metros, but those accounted for only 36% of Hispanic growth“ “Asians even more concentrated with 1/3rd living in just three metros: Los Angeles, New York, & San Francisco” “Atlanta, Dallas & Houston led all metros in Black population gains, while populations dropped in New York, Chicago & Detroit” Large metros Small metros Non-metro areas Source: State of Metropolitan America - Brookings

Fastest growth in diverse suburbs
“Residents of suburbs in the 50 largest U.S. metropolitan areas who live in diverse areas – where the population is 20% to 60% non-white – outnumber those who don’t.” % change 2000–2010 +31% +72% -23% Suburbs of big metropolitan areas increasingly diverse By Haya El Nasser, USA TODAY Updated 7/20/ :38 AM—The traditional image of suburbia as America's hub of white affluence is fading fast: Most suburbanites live in racially diverse areas. Diverse suburbs (20% to 60% non-white) are the fastest-growing slice of metropolitan America — expanding faster than their mostly white counterparts, says research out Friday. Racially diverse suburbs are on the cutting edge of social and political change because they tend to be bipartisan and more economically mixed. "The country is really changing," says Myron Orfield, director of the Institute on Metropolitan Opportunity at the University of Minnesota Law School, who co-wrote the report with Thomas Luce. "These places in their present status are a model for what multiracial America should be like.“ The report shows that the number of diverse suburbs in the nation's 50 largest metropolitan areas increased to 1,376 in 2010, a 37% jump since More than 30% of the people in these metros live in diverse suburbs, up from 26% in 2000. During the same period, the share of metro residents who live in predominantly white suburbs (more than 80% white) slipped from 26% to 18%. By 2010, 17% of suburbanites lived in predominantly non-white suburbs (more than 60% non-white) — communities that were once integrated but are now more troubled. FULL STORY & GRAPHIC: Source: Myron Orfield and Thomas Luce, Institute on Metropolitan Opportunity at the Univ. of Minnesota Law School

Hispanic buying power $1.7 trillion $1.5 trillion $1.2 trillion $1.0 trillion $488 billion $210 billion Release Date: Tuesday, May 1, 2012 WRITER: Matt Waldman, , CONTACT: Jeff Humphreys, , Hispanic consumer market in the U.S. is larger than the entire economies of all but 13 countries in the world, according to annual UGA Selig Center Multicultural Economy study Athens, Ga. — According to the Selig Center for Economic Growth at the University of Georgia’s Terry College of Business, the buying power of minorities in the U.S has grown into a diverse and formidable consumer market in the last decade. The rise of minority buying power in the marketplace has generated a demand to learn why these gains are taking place as well as how to tailor products, advertising and media to each market segment. “The numbers are impressive,” says Jeff Humphreys, director of the Selig Center and author of the Selig Center’s annual Multicultural Economy report. “For example, in 2012, the $1.2 trillion Hispanic market is larger than the entire economies of all but 13 countries in the world.” NEWS RELEASE: Hispanic consumer market in the U.S. is larger than the entire economies of all but 13 countries in the world UGA Selig Center Multicultural Economy study, May 1, 2012 Source: Selig Center for Economic Growth, University of Georgia, Athens

Fewer Hispanic trips, BUT bigger spend
Total Retail Channels Both Spanish-preferred and English-Preferred Hispanic households shop slightly less often than White Non-Hispanic households. However, they are bigger per-trip and annual spenders. Very similar deal purchase levels across the three groups. Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, excludes gas only or Rx only trips; *UPC-coded products

Blacks shop often; spend less & less deals
Total Retail Channels African American households shop more often, but they spend less per-trip and annually. They are also less deal prone. Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, excludes gas only or Rx only trips; *UPC-coded products

Asians shop often, spend less & into deals
Total Retail Channels Asians shop more often, spend slightly less per trip and are more deal prone. There greater frequency makes them big annual spenders. Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, excludes gas only or Rx only trips; *UPC-coded products

English-preferred w/like trips as white pop
Shopping Trips Per Household With the exception of the grocery channel, English-preferred Hispanics exhibit similar trip behaviors as White non-Hispanics. Spanish-preferred are less frequent shoppers in supercenters and c-stores, but they measure up well to White non-Hispanics and English-preferred Hispanics in the other channels. Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, excludes gas only or Rx only trips

Hispanics offset less trips with big baskets
Basket Ring $ Per Trip Hispanics offset less frequent shopping by spending more per trip. Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, based on total basket ring, excluding gas only or Rx only trips

African American SMALL FORMAT PREFERENCE
Shopping Trips Per Household African Americans show preference to small formats as they are more frequent shoppers in drug stores, dollar stores & c-stores. Is this a real preference or a function of format availability? Are > small formats trips a preference or a function of format availability? Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, excludes gas only or Rx only trips

African Americans spend less per trip
Basket Ring $ Per Trip African Americans spend less per trip in all most all major retail channels. Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, based on total basket ring, excluding gas only or Rx only trips

Asian channel-specific preferences
Shopping Trips Per Household Asian households are more frequent shoppers in grocery, drug, mass-merchandisers and club stores, but they are less frequent shoppers in supercenters and small formats. Asians more frequent shoppers in drug, mass & club Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, excludes gas only or Rx only trips

Asians spend less per trip in most channels
Basket Ring $ Per Trip But Asians spend less per trip in almost all channels. Interesting given shopping habits in Asian countries where smaller homes and apartments leads to more frequent shopping too. Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, based on total basket ring, excluding gas only or Rx only trips

Walmart drives more trips & bigger baskets
Shopping Trips Per Household Total Basket Ring $ Per Trip Target generates almost as many trips from Asians and per trip spending as Walmart does. But Walmart drives more frequent trips and per trip spend among White Non-Hispanic and multicultural households. Target has greater relative appeal among Asians Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, based on total basket ring, excluding gas only or Rx only trips

> spend on foodstuffs, beauty care & babies
Hispanic Dollar Index Edibles Non-Edibles Vegetables & Grains – Dry 230 Men’s Toiletries 175 Baby Food 171 Fragrances – Women 160 Shortening/Oil 145 Children’s Cologne 153 Juices/Drinks – Shelf Stable 131 Hair Care 149 Prepared Foods-Dry Mixes 129 Disposable Diapers 142 Eggs-Fresh Baby Needs 134 Juices & Drinks-Refrig Sanitary Protection Pkg’d Milks & Modifiers 128 Cosmetics Bottled Water 125 Grooming Aids Gum 122 Personal Soap & Bath Needs 127 When we examine categories with high development among Hispanic households, we see that they spend disproportionately more on basic food ingredients within edible categories. And, within non-edibles, Hispanic households spend more on beauty care and categories for babies. Source: Nielsen Homescan, 52 Weeks Ending 12/29/2012, UPC-coded; Purchase index: share of Hispanic $ sales divided by U.S. household $ share X 100

Language preference tied to category spend
Share of Hispanic dollars by preferred language We also observe large differences between acculturated versus un-acculturated Hispanic households (based on language spoken at home). English-preferred households spend more on general population categories. English-preferred households spend more on general population categories Source: Nielsen Homescan, 52 Weeks Ending 12/29/2012, UPC-coded products

> spend on basic foods, personal & beauty
African American Dollar Index Edibles Non-Edibles Unprep Meat/Seafood-Frz 170 Ethnic HABA 934 Vegetables & Grains-Dry 158 Feminine Hygiene 185 Juices & Drinks-Refrig 157 Fresheners/Deodorizers 174 Spices/Seasonings/Extract 154 Personal Soap/Bath Needs 164 Shortening/Oil Fragrances – Women 153 Juices/Drinks – Shelf Stable Family Planning 142 Sugar/Sugar Substitutes 145 Children’s Cologne 140 Gum 136 Sanitary Protection 133 Fresh Meat (UPC) Insecticides Repellents 131 Soft Drinks-Non Carb Detergents 129 African American households spend more on basic foods as well as personal care and beauty care. Source: Nielsen Homescan, 52 Weeks Ending 12/29/2012, UPC-coded; Purchase index: share of African American $ sales divided by U.S. household $ share X 100

> spend on food, baby, personal & beauty
Asian Dollar Index Edibles Non-Edibles Vegetables & Grains –Dry 278 Baby Needs 268 Baby Food 176 Film & Cameras 213 Juices & Drinks-Refrig 150 Skin Care Preparations 212 Meal Starters-Shelf Stable 136 Family Planning 211 Nuts 134 Disposable Diapers 178 Yogurt 131 Sanitary Protection 161 Fresh Produce (UPC) Oral Hygiene Pasta Hair Care 137 Bottled Water 128 Vitamins Fruit-Dried 126 Kitchen Gadgets Asian households spend more on foods that are associated with their dietary habits. With higher birth rates that average U.S. households, baby food is purchased at a higher level too. Asian households also spend more on baby categories and personal and beauty care. Known for their interest in photography, look what is second from the top on the list! Source: Nielsen Homescan, 52 Weeks Ending 12/29/2012, UPC-coded; Purchase index: share of Asian $ sales divided by U.S. household $ share X 100

Appealing to diverse tastes
Facebook, September 13 via Dominick's ( Dominick's now features over 1,000 international items! What will you try? Source: Dominick’s

Bilingual décor, made-to-order Cuban café
November 15, :02 AM Eastern Time Fresh, New Shopping Experience Awaits Guests at Winn-Dixie Coral Way Store MIAMI--(BUSINESS WIRE)--Winn-Dixie Stores, Inc. (NASDAQ: WINN), today celebrated the completion of its seventh state-of-the-art transformational store and the first to have a bilingual décor package. The newly renovated store, located at 3275 SW 22nd Street in Miami, provides guests solutions and services to make shopping easier and fun. Features specific to the newly remodeled Miami Winn-Dixie include: New bilingual store décor package with a cleaner, modern and more attractive setting including a new store façade with entrance leading into the store’s expanded produce department that features a wide selection of the season’s freshest fruits and vegetables A made-to-order Cuban café and cozy sitting area with free Wi-Fi that is fully equipped to serve authentic Cuban favorites including Cuban coffee and a variety of freshly-prepared sandwiches and pastries NEWS RELEASE: Source: Winn-Dixie

Catering to neighborhood demographics
Revamped Pathmark Store Reflects Area’s Diversity Mar 16, 2012 The Great Atlantic & Pacific Tea Co. Inc. (A&P) has completed the renovation of its Pathmark store at 4100 Park Ave. in Weehawken, N.J., which now features more than 1,400 new items in the dairy, frozen food and grocery departments, including foods from Mexico and Central and South America, in addition to an updated layout and new wall treatments and fixtures. The overhauled 55,000-square-foot location now offers a larger selection of products reflecting the local community’s Hispanic population, as well as other preferences of area customers. “Our remodeled Weehawken store shows our steadfast commitment to serving our customers in the community through a neighborhood store that continually offers shoppers products that match their needs and cultural preferences,” said Sam Martin, president and CEO of Montvale, N.J.-based A&P. “With more diverse offerings and a friendlier, more modern atmosphere, this renovation is a prime example of our goal to enhance our customers’ shopping experience.” More than 20 new associates have been added to the store’s workforce. Both new and existing employees underwent special training to enable them to better assist customers in every department of the store. Further, now 60 percent of the location’s associates are bilingual. Hispanic products available at the Weehawken Pathmark include fresh beef hearts, oxtails, mutton and pig ears in the 36-foot meat case that debuted last month; Cuban and Puerto Rican breads, concha rolls, marranitos and povloron cookies, and a new Hispanic pastry case, featuring such delicacies as pastelitos and empanadas, in the bakery; fried plantains, taquitos, empanadas, Cuban and Dominican tamales, and Columbian corn cake at the deli hot-food bar; pulled pork sandwiches, hot Cuban sandwiches, Spanish ham & Muenster sandwiches at the specialty-sandwich bar; El Dorado espresso, café especial, colada, café latte or cappuccino at the new full-service espresso bar; and fresh yucca, yautia, malanga, name and batatas in the produce department, which has doubled in size. FULL STORY: NJ.COM STORY & PHOTOS: Our remodeled Weehawken store…offers shoppers products that match their needs and cultural preferences…With more diverse offerings and a friendlier, more modern atmosphere, this renovation is a prime example of our goal to enhance our customers’ shopping experience. Progressive Grocer, Mar. 16, 2012 Source: Pathmark, Progressive Grocer & NJ.com

Connecting thru Hispanic Heritage Month
In honor of Hispanic Heritage Month, Macy’s partners with Vanidades magazine to honor Rock and Roll Hall of Famer Carlos Santana as Macy’s 2012 Icon of Style Macy’s Celebrates Hispanic Heritage Month In honor of Hispanic Heritage Month, Macy’s partners with Vanidades magazine to honor Rock and Roll Hall of Famer Carlos Santana as Macy’s 2012 Icon of Style NEW YORK--(BUSINESS WIRE)--Sep. 18, This fall, Macy’s (NYSE:M) partners with Vanidades, the nation’s first-ever, Spanish-language, women’s lifestyle magazine, to celebrate Latino-Americans in honor of Hispanic Heritage Month. With special events nationwide, Macy’s is set to commemorate Hispanic American contributions to fashion, culture and music embodied by Rock and Roll Hall of Fame legend, entrepreneur, philanthropist and fashion designer, Carlos Santana. News Release: Photo: heritage Macy’s Source: Macy’s

Manufacturer Hispanic websites & apps
And what about your websites? Do you provide language options for your customers? Here is an example of two manufacturers (Unilever and Nestlé) who provide Spanish language options on their web sites. You will find more manufacturers with Spanish language options than retailers or restaurants. For example, Kroger, Safeway, Target and Walmart do not offer Spanish language options on their web sites. HEB has Spanish options for their HEB stores in Mexico, but not their U.S. stores. There are no Spanish language options for Burger King, McDonald’s or even Taco Bell. However, you can order online at Domino’s and Pizza Hut and use a Spanish language option. Unilever launched a new Hispanic web site in August of Nestlé provide shoppers choice of English or Spanish language options. Unilever: Nestlé: Updated: Sept. 11, 2012 Source: Company websites

P&G’s Gain expanding to reach Hispanics
P&G aims new Gain dish soap at Hispanic shoppers By DAN SEWELL, The Associated Press August 2, 2010, 10:37AM ET Procter & Gamble Co. is focusing this month's launch of Gain dishwashing liquid on U.S. Hispanics, a growing population attracting increased attention from household products makers. The company's first new hand-dishwashing brand in some four decades will soon debut with a marketing campaign led by a Hispanic ad agency. The campaign underscores that while P&G builds business in emerging economies overseas, it's also courting a growing market at home. Analysts say P&G and competitors such as Clorox and Colgate-Palmolive are looking at the numbers -- the Hispanic population is growing faster and is younger than the population as a whole. Hispanic buyers helped build Gain laundry detergent into a billion-dollar brand in annual sales. FULL STORY: Updated: Sept. 11, 2012 Source: P&G Gain

Ethnic diversity impacts general population
The growth of various ethnic groups is also having an impact on what mainstream America buys—with strong growth in various ethnic foods. Updated: Sept. 11, 2012 Source: MultiAd Kwikee

Bilingual packaging – what about ads?
And some brands serving up bilingual packaging, but should there be more? What about putting more diversity in your print, online, radio and television ads? Updated: Sept. 12, 2012 Source: MultiAd Kwikee

Convenient consumer solutions
So let’s look at some convenient consumer solutions being served up by U.S. retailers & manufacturers.

Convenient meal options
Manufacturers have been involved in creating convenient consumer solutions for some time, from TV dinners to Jiffy Pop popcorn to these examples of convenient solutions for breakfast, lunch and dinner. Updated: Sept. 14, 2012 Source: MultiAd Kwikee

Restaurant meals & snacks at home!
And restaurant brands available for at-home meals and snacks. Source: MultiAd Kwikee

Convenience foods steam up!
A number of examples over the past couple of yeas around in-package steaming food before serving. Updated: Sept. 12, 2012 Source: MultiAd Kwikee

Convenient solutions for cleaning
Even in cleaning solutions, we see consumers gravitating to solutions that can help them get through the day faster. Source: MultiAd Kwikee & company websites

Pre-measured Pre-measured packs to simplify our lives.
Source: MultiAd Kwikee

More than one brand/product in package
More than one brand or product in a box. Source: MultiAd Kwikee

“On-the-go” & “travel packs”
And travel packs for on-the-go activities. Source: MultiAd Kwikee

E-Commerce steadily gaining share
Talk about convenient consumer solutions on steroids, just look at the growth curve in e-commerce sales. While share of total sales is just around 5.4%, $59.5 billion in the4th quarter of 2012 is a huge number and the growth trajectory is very promising. FOR IMMEDIATE RELEASE | FRIDAY, FEBRUARY 15, 2013, AT 10:00 A.M. EST QUARTERLY RETAIL E-COMMERCE SALES | 4th QUARTER 2012 The Census Bureau of the Department of Commerce announced today that the estimate of U.S. retail e-commerce sales for the fourth quarter of 2012, adjusted for seasonal variation, but not for price changes, was $59.5 billion, an increase of 4.4 percent (±2.8%) from the third quarter of Total retail sales for the fourth quarter of 2012 were estimated at $1,106.8 billion, an increase of 1.4 percent (±0.4%) from the third quarter of The fourth quarter 2012 e-commerce estimate increased 15.6 percent (±1.4%) from the fourth quarter of 2011 while total retail sales increased 4.0 percent (±0.5%) in the same period. E-commerce sales in the fourth quarter of 2012 accounted for 5.4 percent of total sales. Root directory: Data Source: News Release: Quarterly Retail E-Commerce Sales Scheduled Release Dates INTENTION TO REVISE: Quarterly Retail E-commerce estimates will be revised to reflect the introduction of a new sample, new seasonal factors and results of the 2011 Annual Retail Trade Survey. Revised adjusted and not adjusted estimates are scheduled to be released on May 31, 2013. Source: U.S. Census Bureau

Amazon bigger than next ten combined
Top 20 excerpt from "Internet Retail Top 500 List" How are companies selected? The Top 500 ranks business-to-consumer retailers in the U.S. and Canada, based on online sales, including retail chains, catalogers, web-only merchants, brand manufacturers and digital content sellers. The Top 500 research team gathers information about retailers from a variety of sources, especially the merchants themselves. If you would like to be considered for inclusion, please contact the Top 500 research team. What sources are used when compiling the Top 500 data? Researchers contact each retailer several times over the course of data collection to compile, collect and fact-check each merchant's information. If the merchant did not provide full financial, operations and web site summary information, Internet Retailer used metrics from that retailer's category--as well as analyst interviews--to formulate estimates. Additional data is supplied to the Top 500 from these information partners: comScore Inc., Compete Inc., Compuware Gomez, Conductor Inc., ForeSee, Experian Hitwise and Silverpop Systems Inc. In all instances where an estimate is used or the data is supplied by a third-party, the figure is footnoted. Retailers were given multiple opportunities to review and respond to estimates and metrics provided by third-party research firms. Do the rankings change each year? Yes. Some retailers such as Amazon.com will be in each annual issue. But each year as the web retailing market grows in size, new and bigger web retailers are added to the rankings while some smaller companies drop off. In the 2012 edition, the company ranked as No. 500 had annual web sales of $14.8 million while the cut off in 2011 for No. 500 was $11.6 million. Source: Amazon revenue jumped to $61.1 billion in 2012 Source: Internet Retailer Top 500 List

Going after regularly scheduled buys
And take a look at what Amazon is bringing to the U.S. – allowing consumers to subscribe and save by agreeing to regular deliveries of CPG products and get a 10% discount. As a manufacturer, are you engaged with Amazon today? As a retailer, do you know how Amazon is impacting your business today and in the future? Source: Amazon.com

Savings thru Subscription services
Underwear, soup, etc.: Subscription services abound Oliver St. John, USA TODAY10:08a.m. EST January 13, 2013 Better get a bigger mailbox. Subscription services have become such a hot trend that you can get a regular delivery of just about anything, from monthly underwear to weekly fresh-made soup. Even Walmart is testing the waters with a monthly box of gourmet snacks, launched in November. Repeat customers come naturally to subscription services. Why? It can be more work to cancel the service than just keep paying. The services' goal: become the next Birchbox, the trial-size makeup subscription service that ships more than 300,000 boxes a month, according to founder Katia Beauchamp. She says most subscribers later purchase full-size versions on the Birchbox website. But critics say subscriptions are just another business fad. Remember all the daily deals sites that used to exist? What's in the box: • Fancy food. Despite not often being described as artisanal, gourmet or organic, Walmart is sending out boxes of fancy munchies for $7 a month under the brand Goodies Co. "They're products that can't generally be found on a Walmart shelf," says Walmart representative Shernaz Daver. • Budget-friendly razors. Cutting smoothly into the national spotlight with a video that went viral, Dollar Shave Club sends out a month's worth of razor blades to members starting at $1. • Dog toys. Most dogs love to play with toys, but for many dogs, "play" can mean "rip to shreds." Laurel Walsh, founder of dog toy subscription service Toys4Tails, says subscribers who renew year after year are doing so to satiate their poochie pals' bloodlust for all that is squeaky and chewy. "It's definitely customers who want to distract their dogs from furniture," says Walsh. Prices start at $8.95 a month for a 12-month subscription. • Underwear. Jonathan Shokrian founded MeUndies underwear subscription because he thought it made "more sense than getting a pair of shoes every month." Underwear subscriptions go for $16 a month. • Soup. Soupergirl, founded by Sara Polon in the Washington, D.C., area, delivers a different fresh-made soup each week to hungry subscribers. Sorry, that's "soupscribers," says Polon, whose prices start at $70 a month for two different soups hand-delivered weekly. The soup is both vegetarian and kosher and gets cooked up the morning before delivery. • Who knows? Mystery Box Shop sends out monthly boxes of, well ... it's a surprise, says founder Brandon Becsi. The value of the Mystery Box will always be more than the $29 monthly, fee, though, he adds. Who subscribes? "Anybody who really likes surprises." FULL STORY: Undercutting Startups, Walmart Launches Food Subscription Service, Goodies.co, For $7 Per Month By Sarah Perez Wednesday, November 14th, 2012—Walmart’s experimentation with subscription-based commerce continues today, with the public launch of Goodies.co, a food subscription service featuring boxes of sample-sized treats shipped monthly. The service is the latest to emerge the retailer’s Silicon Valley-based innovation lab focused on quickly building, launching, and testing new business models that may or may not make their way to Walmart.com or Walmart stores at a later date. FULL STORY: Source: USA TODAY & company websites

Amazon offers fountain of youth
Amazon Launches 50+ Active and Healthy Living Store Featuring Hundreds of Thousands of Items In One Single Destination... Our goal is to offer great prices on a vast selection of items and a robust Resource Center filled with tips on everything from boosting brain power to care-giving. Amazon Launches 50+ Active and Healthy Living Store Featuring Hundreds of Thousands of Items In One Single Destination; Customers ages 50+ can find nutrition and wellness items, exercise and fitness equipment, medical supplies, personal care and beauty products, entertainment suggestions and more; Thousands of items available for free Super Saver Shipping, Amazon Prime Two-Day Shipping and Subscribe & Save April 15, :00 AM Eastern Daylight Time--SEATTLE--(BUSINESS WIRE)--(NASDAQ:AMZN)—Today, Amazon announced the launch of its 50+ Active and Healthy Living Store ( featuring hundreds of thousands of nutrition, wellness, exercise and fitness, medical, personal care, beauty, entertainment items and more – all in a single destination for customers in the 50+ age range. In addition to offering items for fast, free shipping through Amazon Prime and Super Saver Shipping, customers can also sign up to receive thousands of items – including everyday essentials like vitamins, incontinence care products and shampoo – delivered automatically to their home and at a discounted price via the Subscribe & Save program. The store will feature detailed product information, images, customer reviews, best sellers, recommendations and a Resource Center with tips on beauty, healthy eating, caregiving and various other topics to help customers discover products that are right for them. NEWS RELEASE: Amazon Apr. 15, 2013 Source:

Amazonsupply.com for businesses
Amazon Adds Lab, Industrial Goods Via Web By BEN FOX RUBIN And STU WOO April 23, 2012, 7:35 p.m. ET—Amazon.com Inc. has already won access to individual shoppers' wallets. Now it's courting business and industrial customers with a new website and opening a battlefront against traditional retailers like Home Depot Inc. and Staples Inc. On Monday the Seattle-based online retailer launched AmazonSupply.com, a site that sells such products as radiation detectors for environmental testing, industrial cutting tools, janitorial and sanitation materials and office supplies. "We're excited to offer a wide range of items, from basic supplies like drill bits and automatic hand dryers to hard-to-find parts like laboratory centrifuges and miniature polyamide tubing, enabling business and industrial customers to streamline their buying processes," said Prentis Wilson, vice president of AmazonSupply. Customers can use their existing Amazon accounts at the site. No online retailer has become the clear leader in selling to business and industrial customers, said David Selinger, a former Amazon executive who is now chief executive of RichRelevance, which helps online retailers analyze data. He said Amazon must figure out how to sell to such customers, who are much different than individual shoppers. The business-to-business industry, as it is called, relies on unique price negotiations and preferred vendors, he said. AmazonSupply, which the company calls a beta site, is the retailer's latest push to grab more of the online-retail market it already dominates… In January, Amazon said that its fourth-quarter earnings dropped as the company pushed ahead with heavy spending and a dramatic expansion at the expense of margins. The company is expected to report 2012 first-quarter results on Thursday. FULL STORY: Source: The Wall Street Journal & AmazonSupply.com

Walmart tries to catch up with Amazon
Amazon and Walmart's e-commerce division are expanding and starting programs to allow customers to order items online and then pick them up from lockers stationed at brick-and-mortar retailers. Amazon, Walmart experiment with lockers; Lockers designed to add convenience to online shopping APRIL 3, 2013 | BY ALARIC DEARMENT NEW YORK — Amazon and Walmart's e-commerce division are expanding and starting programs to allow customers to order items online and then pick them up from lockers stationed at brick-and-mortar retailers. Amazon has been running such a program for a couple of years in a few major cities, including installing the lockers at Rite Aid stores in cities like New York… According to reports, Amazon has lately expanded its program into other markets, such as northern New Jersey, while Walmart announced last week that it would test a similar system starting this summer at about 12 stores, though the locations of the stores were not disclosed. FULL STORY: Wal-Mart steps up its online game with help from stores By Jessica Wohl and Alistair Barr SAN BRUNO, California | Tue Mar 26, :51pm EDT (Reuters) - Wal-Mart Stores Inc is ramping up plans to combine its physical stores with online technology, testing the use of lockers to hold goods ordered on the Internet until shoppers pick them up, as the world's largest retailer tries to catch up with e-commerce leader Amazon.com Inc. LOCKERS COMING THIS SUMMER FULL STORY: Staples lets Amazon use stores as package pickup points; The office supplies merchant says it’s testing Amazon Lockers. Allison Enright , Editor | November 8, 2012 FULL STORY: AMAZON LOCKER WEBSITE: Short video of how it works from SlashGear.com: Photo source: Drug Store News Apr. 3, 2013 Source: Amazon, Reuters, Drug Store News

Adds 30,000 clothing & shoe items
E-conomy Beat By Kevin Coupe, MorningNewsBeat.com May 17, 2012—Amazon-owned Diapers.com said yesterday that it has launched a new Clothing & Shoe Shop online "with more than 30,000 clothing and shoe items, 100+ brands and sizes ranging from newborn to 5." The company said that "the shop makes it easy for parents to find everything they need to keep up with baby's growth. As with all Diapers.com orders, parents will continue to enjoy fast, 1-2 day delivery*, free shipping on orders $49+, and free, no-hassle returns.“ FULL STORY: Source: diapers.com

.com meets brick & mortar
Mattel, Walmart test virtual pop-up store in Canada Tags: Digital Merchandising, Marketing, Merchandising, Point-of-Purchase / POP November 6, 2012—To help Torontonians celebrate the holiday season, Mattel and Walmart Canada have launched the first pop-up virtual toy store in Canada, providing a QR code-based shopping experience for commuters and gift-givers. Located in the PATH, Toronto's underground walkway, the virtual toy store will run for four weeks and provide the ultimate ease in shopping for the next generation of gift-givers, the companies said in a press release. FULL STORY: NEWS RELEASE: Mattel and Walmart Canada have launched the first pop-up virtual toy store in Canada, providing a QR code-based shopping experience for commuters and gift-givers. RetailCustomerExperience.com, Nov. 6, 2012 Source: Walmart

Same-day delivery pilots
Walmart, eBay face challenges with same-day delivery By Heather Somerville, San Jose Mercury Newsmercurynews.com Posted: 10/20/ :00:00 PM PDT; October 21, :27 PM GMT Updated: 10/21/ :27:45 AM PDT Retailers testing same-day delivery service in the Bay Area may soon find that giving customers what they want as fast as they want it is trickier -- and costlier -- than they bargained for. In their scramble to keep pace with online giant Amazon, Walmart and eBay (EBAY) this month announced plans for same-day delivery in selected parts of the Bay Area. Some analysts caution that same-day delivery -- the latest holy grail for retailers -- is a financial risk and logistical nightmare to most anyone but Domino's Pizza and the local florist. …Amazon and Walmart promise customers that for just a few dollars extra their online purchases will be dropped at their front door within hours of ordering -- or in eBay's case, in less than an hour. …eBay spokeswoman Lina Shustarovich said the company's goal is to deliver in an hour, "but we can't control for unusual circumstances." eBay does not offer concessions for late deliveries. If Walmart botches a same-day delivery, it will deliver the package on the next day for free. FULL STORY: Wal-Mart Delivery Service Says to Amazon: 'Bring It' By Shelly Banjo—Updated October 9, 2012, 8:20 p.m. ET— In its latest bid to take on Internet powerhouse Amazon.com Inc. this holiday season, Wal-Mart Stores Inc. is promising same-day delivery in some cities for orders placed online. Called Wal-Mart To Go, the service costs $10 regardless of the size of the order. The products will be shipped from the company's stores, not from a warehouse or distribution center. Wal-Mart began testing the same-day service last week in Philadelphia and northern Virginia. It added Minneapolis on Tuesday and will add San Jose and San Francisco later this month. The trial will last through the holidays. Wal-Mart also has been trying to compete with Amazon's prices inside its stores. FULL STORY: Same-Day Delivery Test at Wal-Mart, By Stephanie Clifford, Published: October 9, 2012 New York Times: Wal-Mart tests same-day delivery for holidays, Anne D'Innocenzio, The Associated Press, 7:33 PM EST October FULL STORY: Source: Company websites

App to magically find perfect gift for friends
The site includes improved product recommendations; expanded selection from over 100 sites, including Disney, Nordstrom and Think Geek; and birthday reminders WalmartLabs Can Figure Out Gifts Your Facebook Friends Want 11:49AM Stuck trying to find a gift for your mother-in-law, or that 16-year old niece? Social Genome to work. Go to facebook.com/shopycat and download a small application to your computer. It will review your Facebook friends and look at their hobbies, interests and activities and create a list of gift suggestion. You can search for recommendations by name or by interest, review the suggestion and click to buy a gift. (Two drawbacks for the Facebook skeptics — it also puts your name, hobbies and gift wishes out there for friends to see, and you get enrolled in Facebook’s Timeline.) On his blog, Anand Rajaraman, senior vice president at Walmart Global eCommerce, explains: “For example, Shopycat notices that my friend Joe keeps posting about the Red Sox, and infers that he is a Red Sox– and therefore, a baseball — fan. Shopycat analyzes likes and shares to infer tastes as varied as Harry Potter, running, Angry Birds, sushi, yoga, and parenting to recommend gifts. “The second step is to search across a large universe of products to find the one “wow” gift that doesn’t break the bank. Shopycat matches users’ interests to a giant catalog that includes products from Walmart.com, Walmart and sites including Barnes and Noble, RedEnvelope, ThinkGeek, and Hot Topic.” Rajaraman said Walmart understood it didn’t necessarily have the best selection of potential gifts, so it partnered with other retailers. FULL STORY: Walmart Unleashes Shopycat Holiday Gift Sprinkles Social Pixie Dust to Help Shoppers Discover Ideal Gifts SAN BRUNO, Calif. – Dec. 1, 2011 – Walmart (NYSE: WMT) today announced the launch of Shopycat NEWS RELEASE: Walmart Launches Shopycat, A Social Gift Finder Built On Top Of Facebook By Sarah Perez. TechCrunch Nov. 30, 2011—Walmart isn’t the first to use Facebook’s social signals to make gift recommendations, of course. The homemade goods outlet Etsy launched its Gift Finder recently, also on top of Facebook data, and eBay’s latest acquisition, Hunch, which is known for building a “taste graph” of recommendations by asking questions, released its own Facebook app back in However, as the world’s largest brick-and-mortar retailer, Walmart’s foray into social commerce can’t be overlooked. FULL STORY: Source: Walmart

online bulk purchase center
Dollar General Supply Center Source: Source: Dollar General (July 18, 2012)

Virtual shopping & pick-up spots
Peapod offering virtual supermarkets at 100+ commute train stations; also testing grocery pickup Peapod Expands Virtual Stores Sep. 28, 2012 Mark Hamstra -- CHICAGO — Online grocer Peapod here has expanded its virtual grocery-store billboards to more than 100 commuter rail stations in the markets where it operates in Chicago and the Northeast. FULL STORY: Peapod targets shoppers on the move September 28, 2012 | By Robert Channick, Chicago Tribune reporter Launched at a Chicago "L" station last spring, Skokie-based online grocer Peapod is expanding its virtual supermarkets to 17 CTA and Metra stations beginning Friday… The interactive billboards, which allow commuters to scan and buy grocery items on the fly using a free smartphone app, will pop up at nine CTA and eight Metra stations… Virtual shelves will also go up over the next week at dozens of stations in Boston, Connecticut, New York, New Jersey, Philadelphia and Washington, according to a Peapod spokeswoman… FULL STORY: Peapod to test 3 area grocery pickup sites; Locations in Palatine, Schaumburg and Deerfield will expand online service September 11, 2012|By Mary Ellen Podmolik, Chicago Tribune reporter Peapod LLC, the Internet-based grocery retailer, will open three Chicago-area locations this year where customers can pick up their orders rather than waiting for home delivery. FULL STORY: Stop & Shop website: Source: Peapod, Stop & Shop, Supermarket News

FreshDirect expands to Philly suburbs
Philadelphia Delaware Chester Montgomery Bucks Mercer Burlington Camden FreshDirect Expands to Philly Suburbs NEW YORK (January 16, 2013) — Online grocer FreshDirect said it has begun expanding its grocery delivery availability to eight counties in suburban Philadelphia. FreshDirect launched service in Center City Philadelphia in October, and said demand for its service in the surrounding suburbs prompted a faster rollout than originally anticipated. FreshDirect said service to parts of Philadelphia, Montgomery and Delaware counties began Jan. 14, about two weeks ahead of schedule. On Jan. 28, FreshDirect will add zip codes in Chester, Bucks, Camden, Burlington and Mercer counties. FULL STORY: MAP: FreshDirect.com Groceries Arrive at Philadelphia’s Door Step, October 1, 2012; Virtual Store Front and Registration Available Beginning September 25th PHILADELPHIA (September 25, 2012) – FreshDirect, a leading online retailer of fresh foods and grocery items, announced today that the company will officially launch in Philadelphia, Pennsylvania on October 1. Serving the New York Metro area for the past decade, FreshDirect’s 10th birthday marks the expansion of the company’s service footprint into the City of Brotherly Love. Beginning October 1, Philadelphians can enjoy FreshDirect’s signature farm-fresh produce, custom-cut meat, seafood and deli items, bakery-fresh pastries and breads, local foods, all-natural and organic foods, coffee, and freshly made meals. FreshDirect’s catering products will also be available for parties and events located in the delivery area. FULL STORY: Source: FreshDirect, Select Greater Philadelphia & Delaware Valley Regional Planning Commission

Walgreens adds convenient options
Q: What is Web Pickup and how does it work? A: Web Pickup is a Walgreens pilot program where customers can order items online from their selected store's inventory for pickup in store or for curbside pickup (at select Web Pickup locations) in as little as an hour. Q: What does it mean that Walgreens Web Pickup is a pilot program? A: Walgreens is rolling out the Web Pickup program to select stores initially, so not all customers will be able to take advantage of this service immediately. Source (Updated 9/12/2012): Order Online, Pick Up In Store Convenience Comes to Walgreens Stores Throughout Chicagoland with Rollout of New Web Pickup Service; More than 480 stores in Chicago and surrounding suburbs to offer new service, with curbside delivery coming soon to select locations DEERFIELD, Ill., June 27, Walgreens (NYSE:WAG)(NASDAQ:WAG) has combined the convenience of online shopping with its neighborhood stores, introducing its new Web Pickup service at locations throughout the Chicago area. Chicago is the first full market rollout for Web Pickup, which enables consumers to shop online at Walgreens.com and pick up orders at a Walgreens store in as little as an hour. The service is also currently available at 27 stores in San Jose, Calif. Currently, Web Pickup is available at nearly 300 locations in the Chicago metropolitan area. Full market rollout (480 stores) is expected to be complete in August. Most non-prescription items found in-store are available online through the service. NEWS RELEASE: Order Online, Pick Up in Store Convenience Comes to Walgreens Stores Throughout Indianapolis Area with Rollout of New Web Pickup Service; More than 70 stores now offering new service, with curbside delivery available at select locations DEERFIELD, Ill., Nov. 29, Walgreens (NYSE:WAG)(NASDAQ:WAG) has combined the convenience of online shopping with its neighborhood stores, introducing its new Web Pickup service at locations throughout the Indianapolis area. NEWS RELEASE: Updated: Sept. 11, 2012 Source: Walgreens

Nordstrom invests in e-commerce growth
Nordstrom Inc. plans to ‘spend almost $1 billion over the next five years to continue to support its e-commerce infrastructure’ E-conomy Beat By Kevin Coupe, MorningNewsBeat.com February 22, 2012—Internet Retailer* reports that Nordstrom Inc. plans to “spend almost $1 billion over the next five years to continue to support its e-commerce infrastructure, chief financial officer Michael Koppel told Wall Street analysts on the company’s recent year-end earnings call.” SOURCE: * Internet Retailer, Feb. 20, 2012 Source: Nordstrom’s, MorningNewsBeat & Internet Retailer

“Shoppers … spend about 10% more”
Fresh & Easy Testing Shopper Scanning Device By Michael Garry Feb. 6, :44pm—BURBANK, Calif. — Fresh & Easy Neighborhood Market, El Segundo, Calif., is testing a “Scan As You Shop” handheld device at a store here that allows shoppers to scan products during their shopping trip and keep track of what they are spending. The system is intended to speed up the checkout process, in part by enabling shoppers to avoid unloading their goods at the checkout. “We are always looking at innovative ways to make our customer’s shopping trip even easier,” said Brendan Wonnacott, a spokesman for Fresh & Easy. FULL STORY: Check Out the Future of Shopping; Shaving Time Off the Weekly Grocery Run To Keep Consumers in Stores and Spending By ANN ZIMMERMAN May 18, 2011—A device that looks like a smartphone is making supermarket shoppers—and stores—happier. Perched on the handle of the shopping cart, it scans grocery items as the customer adds them to the cart. Shoppers like it because it helps avoid an interminable wait at the cashier. Retailers like it because the device encourages shoppers to buy more. Shoppers who use the Scan It system spend about 10% more than the average customer, says Erik Keptner, Ahold's senior vice president for marketing and consumer insights. He attributes this to targeted coupons and the control consumers feel while using the Scan It (actually, Ahold calls it "ScanIt!") device. FULL STORY: Shopping Cart Photo: Philip Montgomery for The Wall Street Journal Fresh & Easy Neighborhood Market, El Segundo, Calif., is testing a ‘Scan As You Shop’ handheld device at a store here that allows shoppers to scan products during their shopping trip and keep track of what they are spending. Supermarket News, Feb. 6, 2012 Source: Stop & Shop; iTunes; WSJ/Philip Montgomery (in-store photo); Quote by Erik Keptner, SVP marketing & consumer insights, Ahold

“stores mapped in a mobile application”
“aisle411 connects shoppers, retailers and brands where ‘X marks the spot’, the location where over 70% of purchase decisions are made, in-store and in-aisle.” Aisle411 store map app now directing consumer traffic in all Walgreens stores July 17, 2012 — PALO ALTO, Calif. — Aisle411, a mobile retail navigation service, on Tuesday announced that its virtual mapping and navigation smartphone application is available to use in all of Walgreens' 7,907 drug stores nationwide. With Aisle411's in-store mapping platform, customers can use their smartphones to view maps of any Walgreens store, allowing shoppers to locate products down to a particular section of each aisle. Walgreens is the first national retailer with all of its stores mapped in a mobile application, Aisle411 stated. "Retailers are constantly looking for solutions to enhance their customer's store visits and improve convenience," stated Nathan Pettyjohn, CEO of Aisle411. "Aisle411 allows retailers to empower their shoppers by providing information, such as product locations, right in customers' hands, making the shopping experience more convenient and fun." Nearly 84% of shoppers have difficulty finding products on store shelves, and more than 20% of shoppers leave the store without their full purchase intent, Aisle411 discovered in a recent consumer survey. The Aisle411 app is available for free from the iPhone App Store and the Google Play store. SOURCE: Walgreens App Finds Any Product in Any Store - A Catalyst for Growth Author: Ed Valdez; Published: July 18, 2012 at 11:01 am Walgreens' announcement this week helps them move a step closer to the Apple Store experience (customer delight). However, while Apple (NASDAQ: AAPL ) employees are empowered with their iPads to assist with any customer questions, Walgreens users will be able to help themselves with the intelligence from their own smartphone application. SOURCE: Source: Retailing Today & aisle411.com; *National survey commissioned by Aisle411

Arming associates w/mobile POS devices
Nordstrom Sees Sales Boost From Mobile POS Devices 10:29PM --Retailers like Apple and Home Depot recognized the need to eradicate this wait several years ago, providing employees with mobile POS devices that enable them check out customers from anywhere within the store if the customer is paying with a debit or credit card. Employees at Apple’s retail stores have been armed with iOS devices for several years, enabling consumers to easily make purchases without waiting in line. In early 2011, Home Depot introduced their “First Phone” to allow customers to check out from anywhere within the store, also without having to wait in line. Now, Nordstrom, the Seattle-based fashion and beauty retailer offering apparel, shoes, makeup and other beauty products, is rolling out mobile point-of-sale (POS) devices throughout their full-line stores, as well as in some of their Nordstrom Rack stores. These mobile POS devices, which is a modified iPod Touch with a merchandise scanner and credit card slider, allow employees to check out customers from anywhere in the store. The app on the device also provides Nordstrom’s sales staff access to the company’s entire inventory, which is useful when helping customers check if an alternative size or color is available elsewhere, without needing a register to look up that information. Nordstrom has deployed over 6,000 of these devices throughout their 117 full-line stores, and at some Nordstrom locations, there are more mobile POS devices than regular registers. Colin Johnson, a spokesperson for Nordstrom, says that these devices are part of a larger plan for Nordstrom to help “provide a more technology enabled store experience.” FULL STORY: Lowe’s replaces scanner guns with iPhones in-store By Chantal Tode September 12, 2011 Lowe’s is deploying approximately 42,000 iPhones in its stores to make it easier for employees to help shoppers and complete transactions. Several retailers are arming store associates with mobile devices, including Lowe’s competitor Home Depot, which started giving employees handheld Motorola devices last year. Lowe’s strategy calls for the devices to eventually enable mobile calling, ing, text messaging and the processing of credit and debit card transactions, according to reports. FULL STORY: Nordstrom has deployed over 6,000 of these devices throughout their 117 full-line stores, and at some Nordstrom locations, there are more mobile POS devices than regular registers…. these devices are part of a larger plan for Nordstrom to help ‘provide a more technology enabled store experience.’ Forbes, Apr. 6, 2012 Source: Forbes & company websites

100 million+ transactions since 01/2011
Starbucks Offers Square Wallet Beginning Today; Starbucks extends mobile payment choice and convenience to its customers at participating U.S. stores SEATTLE, November 07, Starting today, Starbucks Coffee Company (NASDAQ:SBUX) will begin accepting Square’s mobile payment application, Square Wallet, in participating U.S. company-operated locations. With Square Wallet, Starbucks is giving customers another way to enjoy a quick, seamless payment experience at approximately 7,000 Starbucks stores. With Square Wallet people can pay at Starbucks and explore nearby businesses, browse menu information, store hours and transaction history, all on their phone. Square Wallet is in addition to Starbucks own mobile payment applications on iOS and Android™, which are used by Starbucks customers more than 2 million times each week, and are fully integrated with the Starbucks Card and My Starbucks Rewards™ programs. We look forward to continuing to create amazing connections with our customers – both in our stores and outside of our stores and offering our customers choices in how they want to pay. Starbucks was the first national retailer to offer its own mobile payment technology combined with a world-class loyalty program in January 2011, and we have seen a tremendous response from our customers with more than 100 million mobile transactions occurring in our U.S. stores since its launch,” said Adam Brotman, Starbucks chief digital officer. “Starbucks believes in the values and vision of Square, and just three months after announcing our partnership with Square, we are thrilled to make the convenience of paying with the Square Wallet app available to our customers starting today.” NEWS RELEASE: PHOTOS: quick, seamless payment experience at approximately 7,000 Starbucks stores. Square Wallet is in addition to Starbucks own mobile payment applications…which are used by Starbucks customers more than 2 million times each week Starbucks News Release, Nov. 7, 2012 Source: Starbucks

“Remembers past purchases”
Economy Beat By Kevin Coupe, MorningNewsBeat.com January 14, 2013 • The Rochester Business Journal reports that Wegmans has introduced "the latest version of its mobile shopping application for iPhone and iPad, with updated features that "include a database of past purchases linked to a user’s Shoppers Club account and a function that organizes shopping lists by aisle using the store’s layout. It also displays Wegmans recipes, more nutritional information and has the ability to scan barcodes using a camera phone.“ SOURCE: Speed Shopping! With the New Version of the Wegmans App You Can Zip Through the Store ROCHESTER, NY - 01/10/ Ready for an app that revs up grocery shopping, makes sure you don’t forget anything and estimates what you’ll pay at checkout? Then try out the newest version of the Wegmans app. From Wegmans Food Markets, it can be installed free of charge with a visit to the device’s app store. “Ever since we released the first version of our app a couple of years ago, we’ve been listening to customer feedback and making improvements based on what we hear,” said Jason Wehle, director of internet marketing for Wegmans. “One of the most common requests we received was for compatibility with Android devices. We’re excited that this new version delivers on that request, and it will soon work with Kindle Fire and Barnes & Noble Nook too. Those who have already been using our iPhone app told us they wished their experience could be more personalized. With that in mind, we included past purchases to this new version of the app. We’ve added other features too, from more nutrition information to estimating what it will cost to buy the items on your list.” Here’s a rundown on several time-saving features of the updated app… NEWS RELEASE: Source: Wegmans

Recipes based on contents of basket
Hellmann’s Mayonnaise, São Paulo, have created a campaign that offers shoppers personalized recipes based on the contents of their shopping cart – generating a 44% sales increase in just one month. Their innovative software, which identifies individual food items, was installed into 100 supermarket cash registers. If someone buys a jar of Hellmann’s Mayonnaise, the software picks a Hellmann’s recipe that combines other products purchased and prints it on the back of the customer’s receipt – providing timely culinary inspiration. IMAGE: If there's Hellmann's in your shopping cart, there's a recipe on your receipt. By Ogilvy & Mather Brazil, Published on May 21, VIDEO: IMAGE: Source: Ogilvy Brazil via coloribus.com

“Apps emerge as Key Walmart Strategy”
Walmart plans to launch Print Plus, a mobile app that brings its print ads to life… The app, to be launched this year, allows shoppers to view content — such as recipes and product information — when they scan a Walmart ad with their smart phones. Additionally, the company is testing Scan & Go, an iPhone app that lets shoppers use their phones to scan the bar codes on items in-store, and complete the purchase at a self checkout. The retailer is also exploring mobile payment. Apps Emerge as Key Walmart Strategy By Carol Angrisani Apr. 9, 2013 — SCHAUMBURG, Ill. — Walmart plans to launch Print Plus, a mobile app that brings its print ads to life, an executive of the chain said during an educational session on day two of the Shopper Marketing Summit. The app, to be launched this year, allows shoppers to view content — such as recipes and product information — when they scan a Walmart ad with their smart phones. “We’re working on bringing liquid content off of our print pieces,” Ken Mantel, Walmart’s senior director of marketing, said. The move comes at a time when mobile apps are increasingly appealing to Walmart. “Every time a new smart phone into marketplace, it changes the way we market,” he said. Among other mobile app efforts, Walmart’s traditional mobile app lets users view local ads, scan store rollbacks, check prices and more. The app has had 7 billion downloads. Additionally, the company is testing Scan & Go, an iPhone app that lets shoppers use their phones to scan the bar codes on items in-store, and complete the purchase at a self checkout. The retailer is also exploring mobile payment. FULL STORY: Supermarket News Apr. 9, 2013 Source: Supermarket News & Walmart (

Campbell’s meal-planning app contest
Campbell's Soup Invites Developers to 'Hack the Kitchen‘ By Kate Freeman January 11, 2013—Campbell's Soup wants to give you new resources for your smartphone and the web to find meal ideas. The company is inviting developers to "Hack the Kitchen" and create web or mobile apps that make people's lives easier when it comes to finding recipes and cooking. The contest begins on Monday, Jan. 14th and the deadline to submit entries is February 1st. "The solution can be a web experience, mobile app, something for the XBOX or even an in-car app experience that leverages the new SDKs announced at CES," Adam Kmiec, director of global digital marketing and social media at Campbell Soup Company, told Mashable. "We haven’t set a requirement; it's a blank canvas. We know that consumers are looking for ways to answer the question, 'What’s for dinner?' and we've developed our own API to help guide the development process." It's not a requirement that Campbell's products be part of the app. "With the 'Hack the Kitchen' effort, we want to make the entire dinner process easier -– from choosing what to eat and how to prepare it, incorporating pantry items and understanding the health benefits of various meal options. We are hoping to see ideas that incorporate these key elements," Kmiec said. FULL STORY: CAMPBELL’S HACK THE KITCHEN WEBSITE: Source: Campbell’s

Innovation in vending machines
Oops! Forgot the diapers and formula Buy a Pepsi, "gift" a Pepsi Oops! Forgot the diapers and formula Buy a Pepsi, "gift" a Pepsi Source: We Go Babies & PepsiCo

Interactive self-serve fountain dispenser
Touch screen enables consumers to select from 100+ brands Coca-Cola Freestyle® is an interactive self-serve fountain dispenser that is touch screen operated, enabling consumers to select from more than 100 regular and low-calorie beverage brands – including many varieties of waters, fruit-flavored beverages and sparkling beverages that have never before been available in the U.S. other than on Coca-Cola Freestyle. Coke's Freestyle Machines Will Help Expand Its Dominance Over Pepsi By Chris Katje December 15, 2011—Recently Forbes magazine named two products to its coolest products of the decade*. The two products were the iPhone from Apple (AAPL) and the Coke (KO) Freestyle Machine from Coca-Cola. Last week Coca-Cola made the announcement that the Freestyle machines would be added to all company owned Burger King restaurants. The 850 added restaurants represents an increase of 50% to the current total of 1,772 locations with Freestyles. The Burger King deal will put the machines in place by April of Along with company owned locations, the company will be recommending all franchisees to add the Freestyle to locations as well. Prior to the Burger King deal, Coca Cola’s Freestyle machines were present at restaurants like: Subway (Select Locations), Firehouse Subs, Five Guys Burgers & Fries, AMC Theaters (Atlanta and Select Locations), Pei Wei (owned by PF Changs). FULL STORY: *FORBES: Source: Coca-Cola Company

Health & wellness Now let’s turn to growth opportunities in the areas of health & wellness. This tough economy took a toll on organics as consumers chose between higher-priced better-for-you products and those with better price or value that may not be as healthy. While leading a healthy life is on the minds of many, getting a better price was on the minds of more. In 2006, 2007 and into the 3rd quarter of 2008, organics’ 4-weekly growth rates were strong (averaging between 18% and 30% plus). After the September 15, 2008, financial crisis, growth rates for organics dropped dramatically. However, organic growth returned at the end of 2009 and throughout Now that we are seeing high gas prices and rising produce prices, growth has leveled off in 2011, but is still at strong levels versus total store trend.

Evolution of USDA dietary guidance
2011 2005 1992 First Lady, Agriculture Secretary Launch MyPlate Icon as a New Reminder to Help Consumers to Make Healthier Food Choices WASHINGTON, June 2, 2011 – First Lady Michelle Obama and Agriculture Secretary Tom Vilsack today unveiled the federal government’s new food icon, MyPlate, to serve as a reminder to help consumers make healthier food choices. MyPlate is a new generation icon with the intent to prompt consumers to think about building a healthy plate at meal times and to seek more information to help them do that by going to The new MyPlate icon emphasizes the fruit, vegetable, grains, protein and dairy food groups…. For more information, visit Additional resources include: and For the MyPlate Graphics Standards (terms of use), click here: NEWS RELEASE: Source: United States Department of Agriculture (USDA)

Opportunities & Challenges w/ Personal H&W
NMI’s Health & Wellness Consumer Segmentation WELL BEINGS® 17% FOOD ACTIVES® 18% MAGIC BULLETS® 24% FENCE SITTERS® 19% EAT, DRINK & BE MERRYS® 22% Most health pro- active Market leaders & Influencers Highest organic usage Use some supplements Use many health modalities Most Green Mainstream healthy Basics, balance and control Desire inherently healthy foods Most influenced by physicians Least eco-friendly Price sensitive Conveniently healthy Heavy pill usage – supplements OTC, Rx Health managers vs. preventers Weight managers Least likely to cook at home Least likely to exercise ‘Wannabe’ healthy Most likely to have kids Stressed out, want help and control More health kicks but no clear goals Receptive to eco- friendly Active weight loss High social media usage Least health active Unconcerned about prevention Focused on taste Most price driven Younger Here are the Natural Marketing Institute's (NMI) health & wellness segments which have been coded onto the Nielsen Homescan consumer panel. This allows NMI and Nelsen to collaborate on client research projects which combine the unique consumer and shopper understanding tools that both companies possess. Source: Natural Marketing Institute (NMI), U.S. General Population

Those most engaged in H&W shop and spend
Total Retail Channels Well Beings Food Actives Magic Bullet Fence Sitters Eat, Drink & Be Merrys Well Beings Food Actives Magic Bullet Fence Sitters Eat, Drink & Be Merrys Well Beings Food Actives Magic Bullet Fence Sitters Eat, Drink & Be Merrys The households most engaged in health & wellness (the Well Beings) are an attractive segment as they are those most engaged in shopping and spending too – they make more annual shopping trips, spend the most per trip and annually, while exhibiting about average deal purchase behavior. Those least engaged (Eat, Drink & Be Merrys) make fewer trips, spend less per trip and annually. WELL BEINGS are active shoppers & spend the most annually Source: Natural Marketing Institute (NMI), Health & Wellness Segmentation, Total U.S. – 52 weeks ending 12/29/2012

multiple retail channel connection points
Shopping Trips Per Household The retail channel shopping trip behavior of the segments are not that different and provide multiple retail channel connection points for both retailers and manufacturers. Relative to the other segments, the Well Beings make more trips to grocery and club stores, while trips by the Eat, Drink & Be Merrys are higher in supercenters, dollar stores, and convenience/gas. Well Beings make more grocery & club trips Source: Natural Marketing Institute (NMI), Health & Wellness Segmentation, Total U.S. – 52 weeks ending 12/29/2012

Broad access to diverse groups
Shopping Trips Per Household And like we saw at the retail channel level, all segments can be reached across many different retailers. The one huge exception is how the Well Beings make two plus to three times as many trips to Whole Foods. Only in Whole Foods do we see extreme trips from Well Beings Source: Natural Marketing Institute (NMI), Health & Wellness Segmentation, Total U.S. – 52 weeks ending 12/29/2012

Diverse Category demand across segments
Well Beings Food Actives Magic Bullets Fence Sitters Eat, Drink & Be Merrys Beer 86 89 102 105 118 Wine 136 103 84 93 Candy 91 106 97 98 Carbonated Beverages 75 112 Bottled Water 117 95 92 Fresh Produce 143 90 80 Vitamins 119 114 108 94 48 Tobacco & Accessories 66 82 113 $ Buying Rate Index And we see diverse category demand across the NMI health & wellness segments – particularly at the extremes. In terms of annual category spending across the segments, we see the segments behaving as they are named. That is, the Eat, Drink & Be Merrys show above average spending per household on beer, carbonated beverages and tobacco & accessories. On the other end of the health & wellness spectrum, the Well Beings show above average category spending on wine, bottled water, fresh produce, and vitamins. How can your category or brand be used by retailers to meet shopper demand? $ Buying Rate Index calculation: annual dollars per household spent on category within an individual segment divided by the annual buying rate for all households times 100. Where is your category or brand connecting? Source: Natural Marketing Institute (NMI), Health & Wellness Segmentation, Total U.S. – 52 weeks ending 12/29/2012, UPC-coded

Healthy claims range from $66M to $70B
Dollar Sales (billions) Nielsen LabelTrends: Label claim information is captured in detail by Nielsen’s Dictionary Product Control group. This includes claims that are called out on the product packaging, but does not include any claims listed in the nutrition facts panel. Annual dollar sales for products with label claims range from a low of $65.6 million for Sterol claims to a high of $69.6 billion for products with Fat claims – keep in mind that low “light/lite” beer claims falls into the largest group. Notes on some Health & Wellness Claims: Caffeine Presence: Caffeine Free; Reduced Caffeine; Calcium Presence: Calcium Free; Calcium Presence; Comparative Calcium Claim; Excellent Source of Calcium; Good Source of Calcium; No Calcium Claims Calorie Presence: No Calories; Reduced Calories Cholesterol Presence: Cholesterol Free; Lowers Cholesterol; Reduced Cholesterol Fat Presence: Absence of Specific Fat; Fat Free; Low Fat; Reduced Fat Fiber Presence: Comparative Fiber Claim; Excellent Source of Fiber; Fiber Presence; Good Source of Fiber Grain Type: Bran; Germ; Sprouted Grain; Whole Grain High Fructose Corn Syrup: High Fructose Corn Syrup Free Hormone Presence: Hormone Antibiotic Free Iron Presence: Excellent Source of Iron; Iron Presence Lactose Presence: Lactose Free; Lactose Reduced Oil Presence: Absence of Specific Oil; Oil Free; Oil Presence; Reduced Oil Omega Presence: Comparative Omega Claim; Excellent Source of Omega; Good Source of Omega 3; Natural Source of Omega; Omega 3 Presence; Omega 6 Presence; Omega Presence; Preservative Presence: No Preservatives Added; Preservative Free; Protein Presence: Comparative Protein Claim; Excellent Source of Protein; Good Source of Protein; Protein Presence; Reduced Protein Salt or Sodium Presence: Low Salt or Sodium; No Salt or Sodium; No Salt or Sodium Added Sweetener Presence: Less Sugar; No Sugar Added; Sugar Free For more information on Nielsen LabelTrends contact: Crystal Rollins. Source: Nielsen Scantrack & Nielsen Label Trends, Total U.S. - All Outlets Combined, 52-weeks ending 03/16/13 (vs. year ago), UPC-coded

Organic growth is back Dollar Trend
This tough economy took a toll on organics as consumers chose between higher-priced better-for-you products and those with better price or value that may not be as healthy. While leading a healthy life is on the minds of many, getting a better price was on the minds of more. In 2006, 2007 and into the 3rd quarter of 2008, organics’ 4-weekly growth rates were strong (averaging between 18% and 30% plus). After the September 15, 2008, financial crisis, growth rates for organics dropped dramatically. However, organic growth returned at the end of 2009 and throughout Now that we are seeing high gas prices and rising produce prices, growth has leveled off in 2011, but is still at strong levels versus total store trend. For more information on Nielsen LabelTrends contact: Crystal Rollins. Source: Nielsen Scantrack & Nielsen Label Trends, Total U.S. - All Outlets Combined, 4-week increments (vs. year ago), UPC-coded

Some label claims struggling
Unit Trend Some label claims have struggled, as 12 label claims have witnessed a decline in unit volume, with the highest losses associated with Probiotic. For more information on Nielsen LabelTrends contact: Crystal Rollins. Source: Nielsen Scantrack & Nielsen Label Trends, Total U.S. - All Outlets Combined, 52-weeks ending 03/16/13 (vs. year ago), UPC-coded

Winning label claims Unit Trend
Many others continue to show growth, with Low Glycemic, GMO Free, and Plant Sterol topping the list. For more information on Nielsen LabelTrends contact: Crystal Rollins. Source: Nielsen Scantrack & Nielsen Label Trends, Total U.S. - All Outlets Combined, 52-weeks ending 03/16/13 (vs. year ago), UPC-coded

Room to enhance LABEL understanding
How well do you understand the nutritional information panels/labels on food packaging? We see a lot of room to enhance consumer understanding of nutritional information on products more than four in ten understand them in part or not at all. Source: Nielsen Global Online Survey – Q1 2011; Base: All respondents n=998

Few label claims 100% believable
Do you believe/trust that these food labels claims on packages are accurate & truthful? And only a few (a third or less) consumers find label claims 100% believable. Source: Nielsen Global Online Survey – Q1 2011, U.S. results; Base: All respondents n=50

Retailer health & wellness solutions
Retailers are stressing health & wellness messaging in their store lay-outs, product assortment and advertising. Safeway’s Eating Right and O Organics are examples; they are licensing these lines to other retailers and serving up brand quality packaging and advertising. Over 1,600 grocery stores including Hannaford, Food Lion, Kings Super Market, Homeland Stores, Bloom, Sweetbay and more are using the Guiding Stars program which helps their shoppers with a simplified process to understand what is healthy or not. The NuVal program is available at some of the country’s leading chains, including Big Y, Meijer, Price Chopper, HyVee, Mariano’s, Tops, King Kullen and more! SuperValu is using nutrition IQ – color-coded tags help point out important nutrition content in qualified items throughout the store. H-E-B to Expand ‘Healthy at H-E-B’ Initiative Jan. 3, 2013—In an effort to introduce more ways to help customers eat and live healthier than ever before, H-E-B has launched a nutrition labeling system and a weekly newsletter filled with healthy tips, recipes and coupons. ( FULL STORY: Walmart Unveils "Great For You" Icon; Icon to appear on hundreds of food items and provide simple way to make healthier food choices; Update on progress made over past year WASHINGTON, D.C., Feb. 7, 2012 – A year after pledging to develop a front-of-pack label that would give its customers an easier way to identify healthier food, Walmart, the nation’s largest food retailer, unveiled the “Great For You” icon at an event today in Washington, D.C. The icon, part of the company’s healthier food initiative, is an effort to implement a transparent, summary icon for its private label brand products backed by rigorous nutrition criteria. NEWS RELEASE: GREAT FOR YOU WEB PAGE: A&P Rolls Out Shelf Tags Julie Gallagher, Jan. 13, :23pm Source: Company websites

Safeway focused on high-growth segments
“Health and wellness, organics, open nature, eating right fits into that” Safeway is repositioning its grocery stores as lifestyle destinations with store brands as a foundation. ‘Today, we're a supermarket company. We're a grocer selling wellness services and wellness products…in 10 years' time, we (will be) more of a wellness company selling food. This should be the highest growth piece of our business for the next 10 years, and…Safeway can own the wellness space.’ Safeway's CEO Hosts 2013 Investor Conference (Transcript) Safeway Inc. (SWY) | March 06, :00 am ET Diane M. Dietz - Chief Marketing Officer and Executive Vice President: Today, I want to talk a little bit about where we're focused on differentiated offering. Obviously, we're focused on high-growth segments: Health and wellness, organics, open nature, eating right fits into that. We have efforts underway on Hispanic. Because we're trying to be brief and focused here, I'm not going to get into that. But we actually have a powerful idea that we're working again within our private-label business in addition to the assortment efforts I talked about earlier. We have repositioned the Safeway brand kind of on 4 key pillars: care, kitchen, farm, home. TRANSCRIPT: Safeway Calls Private Label the Pillar in Lifestyle Strategy March 19, 2013—Safeway is repositioning its grocery stores as lifestyle destinations with store brands as a foundation. “Today, we're a supermarket company. We're a grocer selling wellness services and wellness products,” said CEO Steven Burd during a conference call with investors. “I think in 10 years' time, we (will be) more of a wellness company selling food. This should be the highest growth piece of our business for the next 10 years, and I think Safeway can own the wellness space.” Safeway executives outlined this strategy at their 2013 Investor Conference. The company is focused on refreshing the center store, noting shoppers view this area as undifferentiated. “We have repositioned the Safeway brand on four key pillars: care, kitchen, farm, home,” said Diane Dietz, chief marketing office and executive vice president. “It’s about creating unique brands that our shoppers want to come to our store for, because they can't get the brand anywhere else,” said Dietz. “And so we are very focused on innovation. We are about true innovation versus replication.” Safeway is developing brands that cross categories and particular those that are focused on health and wellness, and organics. Dietz also hinted at new initiatives in private label targeting the Hispanic market. FULL STORY: Store Brands Decisions Mar. 19, 2013 Source: Safeway; SeekingAlpha (SWY); Store Brands Decisions

Martin’s adds healthier check-out lane
The Healthy Ideas check-out lanes contain both national and Martin’s brand perishable and nonperishable healthy food items Martin’s Food Markets partners with local Richmond community to provide healthier options in the check-out lane Aug. 17, 2012 — Richmond, VA – How many of us have had the impulse to grab a candy bar or other unhealthy snack while waiting in line at the grocery store? Martin’s Food Markets, Richmond City Health District and Greater Richmond Fit4Kids are partnering on a new project to encourage customers to think healthy at the check-out with the launch of Healthy Ideas check-out lanes at eight Martin’s stores in Richmond. This project is designed to promote healthy eating by increasing the availability of healthy food choices in grocery store check-out lanes… The Healthy Ideas check-out lanes contain both national and Martin’s brand perishable and nonperishable healthy food items. While the exact selection of products vary by aisle and store, among the items offered include: fruit , nuts, individual snack packs from Martin’s exclusive Nature’s Promise natural and organic section, nutrition bars, and 100% fruit juice. News Release: Martin’s Food Markets partners with local Richmond community to provide healthier options in the check-out lane Source: Ahold

Help diabetes patients save
Walmart introduced… the low-cost ReliOn Prime meter and blood sugar test strips…Walmart will provide increased savings on a variety of items to help patients ease the cost of diabetes management. Walmart Launches Effort to Save Diabetes Patients Up to $60 Million Annually; Retailer Introduces New ReliOn Prime Meter and Blood Sugar Test Strips, Lowers Prices on Variety of Items to Help Patients Better Manage Their Diabetes BENTONVILLE, Ark. – July 24, 2012 – Walmart today launched an effort to save diabetes patients in the U.S. up to $60 million annually with Walmart’s exclusive ReliOn brand of diabetes products. ReliOn products provide an affordable, high-quality option to help the nearly 26 million individuals who live with diabetes in the U.S. better manage their disease. In particular, Walmart introduced today the low-cost ReliOn Prime meter and blood sugar test strips. The retailer will offer the ReliOn Prime meter for $16.24 and ReliOn Prime blood sugar test strips at $9 for 50-ct strips, or 18 cents per test. People with diabetes use meters and blood sugar test strips daily to test their blood sugar levels and determine when they need to take insulin… Walmart will provide increased savings on a variety of items to help patients ease the cost of diabetes management. ReliOn items that will see reduced prices include gloves, lancets, syringes and more. Walmart also offers ReliOn insulin products at the everyday low price of $24.88 per bottle… people with diabetes spend as much as $1,000 each year on blood glucose monitoring test strips alone, regardless of whether they have insurance. Switching to ReliOn Prime test strips can save each diabetes patient as much as $784 a year. Complete News Release: Walmart expands ReliOn brand, announces price reduction for items JULY 24, 2012 | BY ALLISON CERRA BENTONVILLE, Ark. — Walmart has launched an effort to help diabetes patients save on their disease management products. Drug Store News: Source: Walmart (U.S.)

Getting associates & shoppers moving
About Walk with Walgreens: Walk with Walgreens is a free and easy program that rewards you simply for walking. It's a fun way to track your progress, meet new people and achieve some goals along the way. Get rewarded: Walk with Walgreens rewards you simply for walking. Receive an instant reward simply for registering. Check back often for valuable coupons and exclusive surprises. Source: Hy-Vee Steps Out for Healthiest State Walk; Oct. 1, 2012—More than 100 Hy-Vee stores will take part in the second Healthiest State Walk this Wednesday, part of the effort to make Iowa the healthiest state in the nation. FULL STORY: WALK PHOTO: Ready, Set, Move! Challenge PHOTO: H-E-B Community Challenge PHOTO: Happy Feet At HEB; By Kevin Coupe, MorningNewsBeat.com; Feb. 10, 2012—Craig Boyan, the CEO at HE Butt Grocery Co., has sent all of his employees the following memo: “I was inspired by the many creative events that our stores hosted for the last Second Saturday screening in January. So inspired in fact, that I would like for all stores, Partners and H-E-B Leaders to participate in a Valentine’s Flash Mob at our next Second Saturday Screening event, Saturday, February 11th. FULL STORY: FLASH MOB PHOTO: Source: Walgreens, Hy-Vee, H-E-B, The Mexia (TX) News Online

Insurance provider encourages consumers
Consolidates coupons for healthier products Coupons available on the Cigna Everyday Healthy Values site are for products that meet the minimum health guidelines based on the U.S. Department of Agriculture’s and the Food and Drug Administration’s recommendations. Cigna Launches Healthy Coupons Site Dec. 10, :57pm BLOOMFIELD, Conn. — To encourage consumers to purchase healthy products, insurance provider Cigna has launched Cigna Everyday Healthy Values ( a customized online community, supported by Coupons.com, that consolidates coupons for healthier products. Coupons available on the Cigna Everyday Healthy Values site are for products that meet the minimum health guidelines based on the U.S. Department of Agriculture’s and the Food and Drug Administration’s recommendations. FULL STORY: Supermarket News, Dec. 10, 2012 Source: Cigna, Coupons.com, Supermarket News

More than 500 gluten-free products
About Gluten Freely GlutenFreely.com is a community and e-commerce site developed and owned by General Mills, Inc. Offering lifestyle tips, recipes, and over 500 products in our online store you can find Everything You Need™ to live gluten-freely. Updated: Nov. 15, 2012 Source: LiveGlutenFreely.com

“Better for you” items Better for you items can be found throughout food retailers – for both humans and pets. Source: MultiAd Kwikee

“Better for you” items Better for you beverages through vitamin or mineral fortification; low calorie Gatorade; drinks from fruit & vegetables with high nutritional value. Source: MultiAd Kwikee

Indulgent products can still be winners
But don’t forget that indulgent products can still be winners. Source: MultiAd Kwikee

Invests more in snacks & frozen foods
[ConAgra] is trying to grow its snacking and frozen foods businesses as it tries to capitalize on food shoppers' greater willingness to spend on wants rather than basic needs… [CEO] Rodkin said that while shoppers are ‘trying to squeeze every nickel they can’ on pantry staples, they are willing to indulge on products like desserts ConAgra Investing More In Snacks, Frozen Foods Published February 21, 2012 Dow Jones Newswires BOCA RATON, Florida -(Dow Jones)- ConAgra Foods Inc. (CAG) is trying to grow its snacking and frozen foods businesses as it tries to capitalize on food shoppers' greater willingness to spend on wants rather than basic needs, Chief Executive Gary Rodkin said in an interview Tuesday. The shift is evident in the latest products that ConAgra has ready to hit supermarket shelves. ConAgra is bolstering its snacking portfolio with line extensions to its Slim Jim meat products and also debuting ready-to-eat Orville Reddenbacher's popcorn next month, moving the brand beyond its microwave popcorn. ConAgra will also introduce a frozen Greek yogurt product under its Healthy Choice brand in June which will be marketed as a portion-controlled snack. ConAgra's strategy underscores how food manufacturers are trying to expand into growing categories to overcome little growth in the packaged food space. ConAgra is looking for acquisitions for growth as well, looking for deals in private-label food space, adjacent branded categories and in international markets. FULL STORY: Dow Jones Newswire, Feb. 21, 2012 Source: Dow Jones Newswire

sustainability Manufacturers have been focused against sustainability to reduce costs and enhance margins, but more and more are also looking to sustainability to drive differentiation among consumers.

Sustainability in corporate messaging
Use of sustainability messaging in corporate advertising and company publications (annual reports and websites) is more commonplace. Updated: Sept. 13, 2012 Source: Company websites

Online green products “People buy about 320 million cleaning products in trigger bottles each year. If just 20% of those were refilled, each year it could save 7 million pounds of plastic - the weight of 1,170 minivans.” Source: Screen capture: Source: S.C. Johnson

Strong sustainability messaging
Starbucks introduces the EarthSleeve; correlates to a savings of nearly 100,000 trees New Starbucks EarthSleeve™ Blends Performance with Environmental Sensibility SEATTLE, July 19, Today, Starbucks Coffee Company (NASDAQ:SBUX), LBP Manufacturing and Henkel announced the availability of EarthSleeve™, a new hot-cup sleeve that integrates proprietary technology that enables a reduction in overall material usage while at the same time increasing the post-consumer content. These adjustments correlate to a savings of nearly 100,000 trees. NEWS RELEASE: Coca-Cola, Ford Motor Company, H.J. Heinz Company, NIKE, Inc. and Procter & Gamble today announced the formation of the Plant PET Technology Collaborative (PTC); Five Global Companies Demonstrate Their Strong Commitment to Sustainable Innovation Atlanta, GA – June 5, The Coca-Cola Company, Ford Motor Company, H.J. Heinz Company, NIKE, Inc. and Procter & Gamble today announced the formation of the Plant PET Technology Collaborative (PTC), a strategic working group focused on accelerating the development and use of 100% plant-based PET materials and fiber in their products. PET, also known as polyethylene terephthalate, is a durable, lightweight plastic that is used by all member companies in a variety of products and materials including plastic bottles, apparel, footwear and automotive fabric and carpet. The collaborative builds upon the success of The Coca-Cola Company's PlantBottle™ packaging technology, which is partially made from plants and has demonstrated a lower environmental impact when compared to traditional PET plastic bottles. Currently, Heinz licenses the technology from Coca-Cola for select Heinz ketchup bottles in the U.S. and Canada. SOURCE: Updated: Aug. 16, 2012 Source: Company websites

Cutting store energy & informing shoppers
Kroger Honored for Efficiency, Diversity Oct 05, 2012—The Kroger Co. has been honored for its efforts to reduce its energy consumption as well as broaden the diversity of its supplier base. Kroger received the Alliance to Save Energy’s top award, the “Galaxy” Star of Energy Efficiency, at the organization’s recent annual awards dinner. “This is a real tribute to Kroger's 339,000 associates who bring our energy saving programs to life every day,” said David B. Dillon, Kroger’s chairman and CEO. “We will continue to work tirelessly in all areas of our business to reduce energy consumption.” FULL STORY: NEWS RELEASE: FULL REPORT: Source: Kroger 2012 Sustainability Report

Media trends We’ve all seen great examples of how manufacturers & retailers are leveraging the Internet and other forms of media to deliver great marketing content, but we thought a quick update on this area would be of interest.

News sources continue shift to online
Released: September 27, 2012 In Changing News Landscape, Even Television is Vulnerable; Trends in News Consumption: Daily and Regular News Consumption The long-term trends in regular news consumption are generally similar to trends in where people got news yesterday. Among television news sources, the percentage saying they regularly watch local TV news has dipped below 50% for the first time (48%). And the percentage watching cable news channels has fallen five points since 2010 and 2008, from 39% to 34% currently. The regular audience for nightly network news, which declined markedly through the 1990s, has changed little in recent years. Currently, 27% say they regularly watch the nightly network news on CBS, ABC or NBC. This percentage has not varied by more than a point or two since 2006. As in previous news consumption surveys, more say they regularly read a newspaper than say they read a newspaper yesterday. Nearly four-in-ten (38%) say they regularly read a daily newspaper, which is largely unchanged since 2010 (40%) but down eight points from 2008. The proportion of Americans who get news online at least three days a week has leveled off, after a period of dramatic growth. Currently, 46% say they get news online or on a mobile phone or device at least three days a week, unchanged from 2010 (when the question only asked about getting news online). About a third (32%) of the public gets news online every day. FULL STUDY (web): FULL STUDY (pdf): GRAPHIC: Source: Pew Research Center

Newspapers reaching older & affluent
Percent subscribing to local newspaper delivered to home Top 10 Bottom 10 Newspaper subscription for at-home delivery is skewed to the older & more affluent. Do you subscribe to a local newspaper that is delivered to your home? Average for all households: Yes = 39.6% No = 60.4% Note: Greatest Generation: Prior to 1946; Boomers: , Gen X: , Millennials: Source: Nielsen Online Views Survey (Aug/Sep 2012)

Sales from non-subscribers significant
All-Outlet Dollar Market Share of the Top 10 demographic groups who do or don’t subscribe to local newspaper home delivery In segments with high at-home newspaper delivery subscription rates, sales from non-subscribers can be significant – ranging from a low of 35% of sales among households with a female head of 65 + to a high of 57% of sales among households with incomes between $40,000 and $49,999. Home newspaper delivery does attract deal buyers. We do see higher deal purchasing in the segments with the highest subscription rates. Do you subscribe to a local newspaper that is delivered to your home? Average for all households: Yes = 39.6% No = 60.4% Note: Greatest Generation: Prior to 1946; Boomers: , Gen X: , Millennials: N = 35,375 Source: Nielsen Online Views Survey (Aug/Sep 2012)

More so in segments w/low subscriptions
All-Outlet Dollar Market Share of the Bottom 10 demographic groups who do or don’t subscribe to local newspaper home delivery In segments with the lowest at-home newspaper delivery subscription rates, sales from non-subscribers are very significant – ranging from a low of 57% of sales among Hispanic households to a high of 71% of sales among households with incomes less than $20,000. And attraction of deal buyers is true among the segments with the lowest subscription rates and this is most evident among the younger segments with the lowest subscription rates. At a time where younger shoppers are feeling greater economic pain, those is need are planning their buys to manage their budgets. From previous Nielsen research, we know that younger consumers are more likely to use digital means when looking at information about the products & sales available at a store. But like older consumers, they also told us that they weren't ready to give up printed circulars in the future. So the question is, would retailers be better served by reaching out to these shoppers via digital means or a combination of paper and digital? Do you subscribe to a local newspaper that is delivered to your home? Average for all households: Yes = 39.6% No = 60.4% Note: Greatest Generation: Prior to 1946; Boomers: , Gen X: , Millennials: N = 35,375 Source: Nielsen Online Views Survey (Aug/Sep 2012)

Newspaper delivery attracts deal buyers
% Dollar Volume on Deal of the Top 10 demographic groups* who do or don’t subscribe to local newspaper home delivery Home newspaper delivery does attract deal buyers. We do see higher deal purchasing in the segments with the highest subscription rates. Do you subscribe to a local newspaper that is delivered to your home? Average for all households: Yes = 39.6% No = 60.4% Note: Greatest Generation: Prior to 1946; Boomers: , Gen X: , Millennials: N = 35,375 *Sorted by % Dollar Volume on Deal Source: Nielsen Online Views Survey (Aug/Sep 2012)

Especially among younger
% Dollar Volume on Deal of the Bottom 10 demographic groups* who do or don’t subscribe to local newspaper home delivery And attraction of deal buyers is true among the segments with the lowest subscription rates and this is most evident among the younger segments with the lowest subscription rates. At a time where younger shoppers are feeling greater economic pain, those is need are planning their buys to manage their budgets. From previous Nielsen research, we know that younger consumers are more likely to use digital means when looking at information about the products & sales available at a store. But like older consumers, they also told us that they weren't ready to give up printed circulars in the future. So the question is, would retailers be better served by reaching out to these shoppers via digital means or a combination of paper and digital? Do you subscribe to a local newspaper that is delivered to your home? Average for all households: Yes = 39.6% No = 60.4% Note: Greatest Generation: Prior to 1946; Boomers: , Gen X: , Millennials: N = 35,375 *Sorted by % Dollar Volume on Deal Source: Nielsen Online Views Survey (Aug/Sep 2012)

Target simplifies online ad
How it works: Scroll over item in the ad, click on “add to quicklist”… When done shopping, send list to your mobile Target has been one of the more innovative retailers when it comes to delivering online ads via digital means. Shoppers can flip through the pages of the online circular like you can in paper mode. But shoppers can customize the view of engagement with Target (in terms of categories of interest) and they can also view the circular by page or by category on the device of their choice. Shoppers can easily add items to a shopping list and send the list to a mobile device. Source: Source: Target

Retailers link to “how to” videos w/features
For at least three years I have been talking about how Hy-Vee continues to engage shoppers with an innovative and evolving web site. They have used online videos for their own chefs to do online cooking instructions, with links to recipes and ads featuring ingredients in the recipes. That has also been expanded to include wine tips. They’ve been using social media for some time and providing shoppers the means to share their Hy-Vee shopping experiences with others. And now they have partnered with a celebrity chef to “celebrate food, family and fun”. Source: HyVee

Aldi turns the page; improves technology
Aldi improves their digital connection with shoppers with an enhanced web site where shoppers can turn pages on their site and they’ve create a free smartphone app. Updated: Aug. 9, 2012 Source: Aldi

Enhancing online & newspaper circulars
Family Dollar Stores Management Discusses Q Results - Earnings Call Transcript Family Dollar Stores (FDO) Q Earnings Call June 28, :00 AM ET To help communicate these merchandising initiatives, we are optimizing and expanding our marketing efforts. Our circulars are becoming more relevant as we improve the assortment and value in our ads. And we are making them easier to shop for our customers. We are also adding new avenues of communication. Beginning next month, Family Dollar ads will be in Sunday newspapers in most major markets. We will continue to reach select customers by shared mail where the newspaper just doesn't have the reach. Our customer is clearly using the Sunday newspaper for the coupons and to plan her shopping trips for the upcoming week. As we expand our assortment, it's crucial that we effectively communicate the improvements to our customers, and let her know that she can complete her shopping trip at Family Dollar. EARNINGS CALL TRANSCRIPT: Updated: Aug. 9, 2012 Source: Family Dollar

General Mills online cooking solutions
Here is a great example of a manufacturer providing consumers with cooking solutions well beyond the products they sell. General Mills is enabling consumers to purchase kitchen and cooking solutions online via their “Betty Crocker Store.” SOURCE: Updated: March 13, 2013 Source: General Mills

Humor, narrative & sentimental ads resonate
Advertising Performance Index Since 2006 What we did: Selected a list of major CPG & Retail advertiser brands to include in the analysis Categorized ads (4000+) by creative approach: humor, narrative, sentimental, product, promotional & value Evaluated the “effectiveness” of each creative approach throughout the recession (from 2006 through 2011) among Adults 18+ How We Defined “Ad Effectiveness”: Ad effectiveness was evaluated using our Net Likeability metric (the percentage of viewers who recalled the ad AND recalled the brand AND liked the ad) Key findings: Humorous ads have consistently resonated best among viewers from 2006 through people always like to laugh. The performance of Narrative & Sentimental ads has improved since 2006, suggesting a consumer interest in harkening back to better times Ads focused on product features and promotion/price do not resonate with viewers even during tough economic times Viewers respond to ads that make a connection. Advertisers should focus on creating ads that engage audiences with humor, sentimental/family themes, and relatable/engaging storylines over those that tout price/promotion/product features 2006 – 2007 Pre-recession 2008 – 2009 Recession 2010 – 2011 Recovery Source: Nielsen Ad Solutions

Innovative products & communications
Photo Caption: “The actor Terry Crews interrupting a commercial for Charmin Freshmates to pitch Old Spice body spray. While cobranding isn't new, one real commercial commandeering another may be.” So the previous examples illustrate the strong innovation focus from brands and why retailers need to really put some good science behind the development of their private brands offerings to stay relevant with their shoppers. Private brands can also take some lessons from national brands on how to reach shoppers via traditional media or new media vehicles. Procter & Gamble brought their Old Spice brand back to life with a mix of good innovation and the use of both traditional and new media to create brand advocates and grow the brand. Few retailers can afford large TV budgets for their private brands, but many can leverage new and lower cost digital and social media to follow in the successful footsteps of brands. A Brand Too Strong to Stay in Its Own Ad By ANDREW ADAM NEWMAN Published: January 31, 2012 The ads are by the Old Spice agency, Wieden & Kennedy in Portland, Ore., and are directed by Tim Heidecker and Eric Wareheim, of “Tim & Eric Awesome Show, Great Job,” on Adult Swim. The ads will be introduced on Facebook and YouTube on Thursday and on television on Feb. 6. Old Spice, Bounce and Charmin are Procter & Gamble brands, and in marketing parlance this is co-branding. But how co-branding for P.& G. typically works is exemplified by Febreze, the brand of scented deodorizers: some varieties of Swiffer dusting cloths and Mr. Clean cleaning solution are marketed as having Febreze scents. Here, though, Old Spice and the products co-starring in its commercials are not collaborating on any formulations — there will not, of course, be a Bounce with the scent of Old Spice. FULL STORY: Source: The New York Times, Facebook & YouTube

“Target … puts groceries in the spotlight”
Target ad campaign puts groceries in the spotlight January 4, 2013, 6:04 PM – NEW YORK Is Target's (TGT) grocery aisle ready for its close up? Target is pushing its food, laundry detergent and other groceries in a national ad campaign that pokes fun at high-fashion advertising by featuring models interacting with everyday products. In one ad, a model in a white dress and high heels struts by blueberry muffin and cake mix boxes that explode in different colors. Then she crushes an egg with her hand… The campaign is part of a larger move by Target, better known for its cheap-chic clothing and home goods, to focus more on its grocery-store aisle. Walmart (WMT) and other Target competitors also have been expanding their selection of groceries to lure more customers into stores. For its part, Target has been expanding its grocery selection, particularly with investments in its "P-Fresh" fresh-food section. Out of its 1,782 stores, about 1100 have an expanded fresh food layout and more than 250 have a full grocery store. AP PHOTO CAPTION: This screen grab provided by Target shows an advertisement from the company featuring a model interacting with baking products Target's groceries have become fashionably fresh; The retailer's holiday fashions didn't sell well, but its grocery business has become a big deal Article by: STEVE ALEXANDER , Star Tribune; Updated: January 7, :12 PM …The retailer has been expanding its grocery selection, particularly with investments in its "P-Fresh" fresh-food section. Out of its 1,782 stores, about 1,100 have a vast fresh-food layout and more than 250 have a full grocery store… In addition to TV spots and newspaper inserts, the campaign will include three radio ads and digital short films that will run as banner ads online. Target's chief marketing officer, Jeff Jones, said that using fashion models to sell groceries, "combines the design ethos and fashion credibility that Target has with the idea that it also has great grocery items at a great price." FULL STORY: Source: Target & Associated Press

Whole Foods online lifestyle magazine
Whole Foods To Launch New Online Lifestyle Magazine By Kevin Coupe, MorningNewsBeat.com March 9, 2012—Whole Foods announced that it is launching a new online magazine called Dark Rye, which the site says “brings together pioneers of unconventional ideas to explore the edges of the creative life. It’s leisure storytelling steeped in a vision of a sustainable, decadent, and curious life.” In the announcement of the venture, Whole Foods says the site will feature “compelling people and content through storytelling with video, photography, recipes and articles. Dark Rye celebrates the movers and doers of our time and aims to motivate and inspire people to take a bite out of life.” FULL STORY: DARK RYE WEBSITE: Source: Whole Foods’ Dark Rye Online Magazine

Walmart Canada unveils multiplatform magazine
Rogers Media and Walmart Canada Unveil Walmart Live Better Multiplatform Magazine - Walmart's Live Better magazine hits market today; free publication available in print at Walmart Supercentres, online, through mobile devices and iPad app - - Top Canadian editors offer latest in food, entertaining, health, beauty and fashion tips - TORONTO, April 8, 2013 /CNW/ - Walmart Canada and Rogers Media Inc. today unveiled the country's newest magazine, Walmart Live Better, a multiplatform lifestyle brand with a one million print circulation. Walmart Live Better combines the premium content Rogers is famous for with Walmart's commitment to everyday low prices and one-stop shopping experience. Top Canadian editors and contributors, including Walmart Live Better's Editor-in-Chief, Sandra Martin, offer readers the latest in food, home, beauty and fashion trends and tips. Available for free at Walmart Canada Supercentres in English Canada, the magazine is also published in digital formats for online, mobile and iPad users. "Canadians want to be inspired by new ideas and stay on budget. With Walmart Live Better they don't have to make a choice. Our team of experts provide great ideas on how to make dollars go farther with style," said Martin. FULL NEW RELEASE: Free publication available in print at Walmart Supercentres & online Source:

Less trust in online & mobile ads
To what extent do you trust the following forms of advertising? From a global online survey conducted in the third quarter of 2011, we see how consumers trust recommendations from people they know; online consumer opinion posts; newspaper editorials, and s they sign up for over traditional ads. A watch out is the lower trust in online and mobile ads. Base: All respondents n=501 Source: Nielsen Global Online Survey – Q (Percentage of U.S. respondents)

Closing summary & thoughts
So here is a summary of the U.S. consumer trends share din this deck.

Consumers share enduring themes
Health & wellness Value Convenience Comfort & enjoyment Green Demographics Connected Nielsen research has consistently demonstrated that consumers everywhere are embracing common, enduring trends, such as health and wellness … value … convenience … and comfort and enjoyment. And demographic shifts toward aging, ethnic and low income consumers will be with us for many years. Health & Wellness: What are your opportunities to elevate messaging/marketing around dark chocolate & health benefits Value: How are you looking to value packs or lower-unit-priced bars & packs to drive value? Our caution: don’t market on value alone! Convenience: Is your messaging inclusive of the convenience aspect of your category versus other indulgent snacks? Comfort & Enjoyment: We’ve seen some work on the back-to-home movement. How are you marketing against comfort & enjoyment? Green: Have you explored opportunities to include green messaging in your corporate ads or in how you market your products. Demographics: We’ve shown you how your categories have universal appeal, but what are you doing to connect with fast growing segments? Connected: advertising must shift to where consumers go after their informatio0n

Are you acting on enduring themes?
How do you innovate & execute against opportunities that are evident to others & come out ahead? How do you identify opportunities where you can provide unique solutions? Are you acting on enduring themes and how do you innovate & execute against opportunities that are evident to others & come out ahead? And, how do you identify opportunities where you can provide unique solutions?

Come See What’s Next at Consumer 360
Join us on June 3 – 5, 2013 in Phoenix, AZ Agenda Speakers Sessions Collaborate

Contributing authors Kelly Pirrera Mary Ellen Ryan Sandy Smith
Bonnie Dykstra-Losoff Dave Howland Diane Johannes Gail Ehrenberg James Russo Kathy Mancini Katie Sheehan Kelly Pirrera Mary Ellen Ryan Sandy Smith Shannon Murphy Sue Mommaerts Todd Hale @ToddHaleNielsen Victoria Stevens Many thanks to the Nielsen associates who provided input into this document.

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U.S. Consumer Trends May 3, 2013 – version 1

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U.S. Consumer Trends May 3, 2013 – version 1

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