Episode Transcript
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Phil (00:05):
Welcome to the Lempert
Report LIVE.
Hey, are you ready to put yourphones down?
Just a reminder tomorrow isFood Not Phones Day, so be sure
to #FoodNotPhones out beforeevery meal to let everyone know
that you're enjoying your mealwith friends and family and
won't be looking at social mediajust for a bit.
(00:26):
I hope you'll join us for thisvery important initiative and
project.
On today's broadcast, Carrefourleads the war with CPG price
hikes.
Buc-ee's is a c-store you haveto experience.
Acosta Group's new Omni-ChannelReport said some really
interesting light on those whoshop online.
(00:48):
A Walmart employee that you'vegot to meet, how Danone is
fighting climate change.
On Food Not Phones a friendshipinitiative that we should all
join in on.
And on the bullseye, themilkman is back.
Let's get started.
So, Sally, Carrefour in Paris,one of the world's leading
(01:10):
retailers, has decided to go onthe offensive as it relates to
CPG companies.
You know price increases.
What they're doing is they'reactually putting up signage to
put price warnings on productsfrom people like Link Chocolate,
Lipton iced Tea, nestle,pepsico, unilever, to really
(01:32):
force these consumer packagegoods companies to reduce
inflation ahead of theiranticipated contract box.
What they're doing is puttingstickers on products that have
gone through strength inflationbut cost more even though the
raw material prices have eased,to get the consumers behind them
(01:53):
.
And these negotiations startwith these major companies on
October 15th, and what Carrefouris saying is they want their
manufacturers to rethink theirpricing policy.
What do you think?
Sally (02:08):
Yes, this has been
something going on for a while.
The finance minister, BrunoLamar, and the CEO of Carrefour
have been working together totry and persuade these big
brands to come to relax on theirprices and their price hikes.
(02:29):
So it isn't surprising thatit's come to this, because we've
heard that they're not reallycooperating.
There are now 26 products inthe stores in France with these
labels reading that this producthas seen its volume or weight
fall and the effective price bythe supplier rise.
Now what's really interestingto me is some of the products
(02:51):
they're talking about seeingexamples of this happening.
Carrefour says a bottle ofsugar-free, peach-flavored
Lipton Ice Tea by PepsiCo shrankfrom 1.25 liters to from 1.5
liters, resulting in a 40%effective increase in the price
(03:11):
per liter.
So what's even scarier to me iswhen we see this happening with
Nestle, with infant formula.
An infant formula is amust-have for people with babies
that are not able to breastfeed, so that's a very, very
essential product for families,and to see the amount that's in
(03:33):
the container going down and theprice going up is very
disheartening for people thatare struggling with current food
prices.
Phil (03:41):
It is, and this morning,
as you know, I was on the Today
Show talking about breakfastcereals and whether it be
Kellogg's, General Mills or Post, they're all complaining that
sales are down.
Sales were obviously up duringthe pandemic, where people were
sitting at home and ate.
Their lucky charms hasnostalgia and make them feel
(04:04):
good.
But the reality is and wepointed it out on the segment
that one of the most importantfactors in addition to people
wanting healthier products forcereal is this shrinkflation Is
the fact that you can go into asupermarket and the box of
cereal can be bigger.
They've made it thinner frontto back but they've made it
(04:26):
taller, but they're down betweenan ounce and three ounces per
package.
We've talked about that before,both on Today, here and on
Inside Edition, and it's gettingworse.
I applaud Carrefour for doingthis and their finance minister,
and I just hope you knowfrankly, we do it here.
Now I know you're a fan.
(04:48):
I have never been to a Buc-ee'sconvenience store.
Tasting Table did a recap of 13or 14 C-stores around the
nation, but when we read it wesaid we've gotta talk about
Buc-ee's.
So let's talk about Buc-ee's.
What's a Buc-ee?
Sally (05:07):
Buc-ee's is an amazing
phenomenon.
That started in 1982 in NewBraunfels, texas.
Now they have expanded outsideof Texas.
Now these giant, massiveconvenience stores we have them
here in Tennessee Now I believewe have three, with one opening
up, another one opening up soon,but they can be as big as
(05:31):
74,000 square feet with 120 gaspumps and 22 electric vehicle
stations and a 250 foot car wash.
Now they boast award-winningrestrooms and they boast the
biggest car wash in the country.
Also, they don't allow thosesemi trucks to come to this
(05:56):
store, so this is just forpeople in their cars.
And what they're coming for,phil, is not just the gas and
the clean restrooms.
They're coming for an excitingarray of products, which is
everything from furniture tohome decor, to gas grills, to
(06:17):
Christmas ornaments Buc-ee'smerchandise.
And they're also coming for alarge array of food choices.
They're serving brisket,they've got a bakery, they're
serving all different kinds ofjerky, tacos, burritos, you name
it.
They've got it at Buc-ee's.
(06:38):
And this is a 24-hour store andit's kind of a tourist
attraction.
It's not just your regularconvenience store.
Phil (06:47):
So you know what other
claims to fame's are the Beaver
Nuggets?
Have you ever had a BeaverNugget?
Sally (06:56):
I have not tried one yet,
but they are very popular and
when you walk into the store atthe checkout lines there are
shelves full of them.
And this is a puffed corn withsome sort of sweet seasoning on
them, and there are differentflavors.
Phil (07:16):
So you know I don't think
we have the answer, but I would
love to know what anaward-winning restroom criteria
is, besides just being clean andmodern.
You know, hey, I've got anaward-winning restroom.
Hopefully I do.
So, getting back, this week isGrocery Shop.
Everybody knows that, as wellas Expo East, I'll be at Expo
(07:40):
East.
Can't do both at the same timebut what's coming out of Grocery
Shop, I think is very important.
Acosta Group has released theresults of its annual online
grocery shopping study and youknow they've got a proprietary
shopper community that theytalked about, and what they
found over the last year is 55%of grocery shoppers buy online
(08:05):
groceries, at least some of thetime.
Frequent online grocery shoppersare up to 50%, and also, what's
most important, is they're nowpurchasing perishables,
including breads, pastries,dairy produce and frozen, which
to me, really signifies the factthat grocers are getting better
(08:25):
at picking produce and meats.
In the beginning of onlinedelivery, that was the number
one complaint that these pickersjust didn't know how to do
produce, and I think, as theseretailers are moving away from
Instacart and they're doing itmore themselves, their staff is
better prepared for it.
(08:45):
49% of online shoppers are nowstarting at a retailer's website
or app, not a third party, and85% are using digital coupons,
and I think that one of the keytakeaways that Acosta Group has
is that online grocery shoppers,especially millennials, are
(09:07):
highly likely to purchase andtry new items and are very
likely to buy on impulse.
What do you think?
Sally (09:16):
Yes, our younger shoppers
are really taking advantage of
all different styles of shopping.
They're shopping online,they're getting delivery,
they're getting pickup andthey're going in stores.
What I also thought was veryinteresting is that the study
found that, for grocery pickupshoppers, 80% will also go into
the store when they're pickingup their order.
(09:38):
Now, this would be me, Phil,because I would get there and I
would realize that I forgot toput something on the list and so
I needed to go in.
Or I might see some beautifulplants sitting outside and think
, oh, I want that plant, I'vegot to go in and get that.
So this is great news for theonline world and for people that
(09:58):
are still wanting to mix thatwith the in-store shopping
experience.
Phil (10:03):
Yeah, and I think it's a
great opportunity and I'm so
happy that Acosta Group includedthat finding on that question
in their survey because, to yourpoint, this is a great
opportunity for, you know,impulse shopping and even those
stores that might have somebodythat brings out your groceries
to your car where you pull up.
(10:25):
That's a great opportunity forsignage to get you to get out of
your car, go inside, pick upthat planter or something else
that you forgot.
I really think it's a greatidea.
So you know, for years we madefun of the Walmart greeters.
They don't exist anymore.
Usually these were retiredpeople in those vests who would
(10:48):
be at the front of the store towelcome you to Walmart.
It was a nice thing that,obviously not only during the
pandemic but before the pandemicWalmart had to get rid of.
I wish they would bring thosegreeters back.
But there's one guy matter offact, Douglas McIntyre who's
(11:09):
been at Walmart for a while.
Tell us about him.
Sally (11:13):
Yes, we are talking about
an 82-year-old Navy veteran
working at Walmart, and now hewas approached by Rory McCarty,
who was inspired and wanted tounderstand why this man, at 82
years old, was working atWalmart, and so he made a TikTok
(11:34):
video talking to him and thenset up a GoFundMe account to
raise $100,000 so that he couldretire from Walmart, which is a
wonderful thing to do.
And we are hearing more abouthow people are not retiring and
they are continuing to workbecause they can't make ends
(11:54):
meet on their social security orthey don't have the retirement
funds.
Maybe they had to use it forsomething else, or it was poor
planning.
Whatever the reason, it's hardto make ends meet now as an
older American.
In fact, the Bureau of LaborStatistics says that the only
age group whose labor forceparticipation rate is projected
(12:18):
to rise are people 75 and older,and that's gonna go from 8.9%
in 2020 to 11.7% in 2030.
So that's a lot of people thatare older that are still
continuing to work.
Now I have two thoughts aboutthis.
One, I do feel that we need totake care of our elderly people
(12:43):
and that people should be ableto retire comfortably when that
time comes, but then I alsothink there are older people
that do want to continue to workbecause it's out being in the
community, it gives them purposeand something to do, and so
they wanna continue to work.
So if that is the case, thenlet's think of some jobs that
(13:05):
are appropriate for people atthis age that they can do.
Maybe it's shorter hours.
Think about what we're payingthem, what benefits they're
getting.
So if we are gonna haveemployees that are this age,
then let's make those good jobsfor them.
Phil (13:21):
Yeah, I can think of some
right off the top of my head.
Senator, congressman, president, that's all for people over 80.
Sally (13:31):
Well, that's up for
debate right now.
Phil (13:33):
Exactly exactly, but it's
true if you look at the average
age.
It's been talked about in theSenate and in Congress.
I mean there's a lot of oldpeople there that maybe it's
time to open it up and let theyounger generation come in.
And these old senators hey, Ican call Doug McMillan.
(13:54):
I can get him a job at Walmartbeing a greeter From Washington
DC Senator to Walmart.
Why not?
Okay, Danone is really attackingthe climate crisis and food
insecurity in a big way,probably more than any other
large company.
They are the largest Bcorporation that's there, and
(14:17):
what their chief research andinnovation officer has said,
their task is is we're a foodand beverage company fully
reliant on nature.
Without cows, there's no milk.
Without fruit and vegetables,there's no baby food.
Without almonds or soybeans, wecannot produce our plant-based
beverages and yogurts.
We have to make sure that weprotect the planet and slow down
(14:39):
climate change so that we candeliver our mission of health
through food.
So Danone has been at this for awhile.
They launched theirregenerative agriculture program
back in 2017.
And when you take a look atthis story that's in Quartz,
it's really an in-depthinterview that this is something
(15:03):
that every CEO of every CPGcompany should be reading,
paying attention to and copying.
And what they say Danone saysis the issue of food
accessibility is as important inAmerica as healthcare and jobs.
So now they're working withmore food banks, with more food
(15:24):
deserts and so on to make surethat we can get their healthy
products out there.
They've got three pillarshealth, nature and people in
communities and I just give thema big hat's off.
What do you think?
Sally (15:41):
I agree 100%, Phil.
You know, recently we've beenhearing about how we're doing
report cards on how we're doingas far as our our goals,
globally, to reduce emissionsand to take care of the planet,
and that has not been veryencouraging what we're hearing
back, but this is encouraging tosee a company like Danone
(16:03):
really taking responsibility.
They started their regenerativeagriculture program in 2017 and
their goal was to turn 100,000acres into healthier soil.
Sorry, but they surpassed thatsoil.
Can't say it.
Okay all the dirt, it's dirtregenerating 250,000 acres, so
(16:29):
that's 150,000 more than theyset their goal for.
And what I really like aboutwhat they're saying here is that
you know that it's veryimportant to them to reduce
methane emissions.
They know how important it is,but they also feel like dairy is
an important nutrient for humanbeings.
(16:49):
So let's find a way for thosetwo things to coexist.
Together, we can take care ofthe planet and we can have these
foods and these nutrients thatwe want.
Phil (17:01):
Absolutely so on FoodN ot
Phones today we turn to NPR.
I happen to love NPR, I'm ahuge fan of it, and it's because
of stories like this theyuncovered something which I had
never heard of before, calledthe Friendship Project, Sally.
What's the Friendship Projectand why should we care?
Sally (17:24):
The Friendship Project is
a wonderful program in
Massachusetts, and how I thinkof it, Phil, is it's like a Big
Sister/B ig Brother program, butfor adults, and they're
primarily focusing on adultswith disabilities, adults with
Down syndrome, adults withautism.
But these are people that wouldlike to connect with a companion
(17:48):
that isn't someone that is paidto work with them.
So what this organization isdoing is they are taking
volunteers, they're doing fullbackground checks and vetting
all of the people that apply todo this and then they're
matching them up with someonewho is experiencing loneliness
and needs a connection, and theydo things like go out for
(18:10):
coffee or go bowling or go andexercise together, take a walk,
and it's a wonderful program,and the reason that this program
has been - one of the reasonsthis program was born - is
exactly what we've been talkingabout is our epidemic of
loneliness that we heard aboutin the public statement from the
(18:30):
Surgeon General this year, andthat we are an isolated society
and that this contributes to ourmental and physical well-being
and can cause serious illness.
So this is a wonderful way toconnect people together and, as
(18:50):
we're doing tomorrow with FoodNot Phones, we want to encourage
people to put down those phoneswhen they're sharing meals
together and make thatface-to-face contact and really
start having conversations witheach other, not through our
phones but face-to-face.
Phil (19:08):
And really be able to have
a battle with this war on
loneliness and for us to win itall.
Thanks, Sally.
On Lost in the Supermarket, Ispoke with Elizabeth Pigg, chief
Marketing Officer of That's It,one of the nation's leading
plant-based snack makers and oneof the partners in Food Not
(19:28):
Phones.
For the complete interview,just log on to SupermarketGuru.
com.
Here's what she had to say.
You're on the advisory boardfor #Food Not Phones, which is
right around the corner onSeptember 19th.
Why are you participating andwhy should other people care?
Libby (19:49):
Sure.
So thank you so much forinviting me to be a part of that
.
I'm super excited about it.
Food Not Phones, September 19th.
It was already obvious to methat putting your phone down
during meal time is arespectable, respectful,
courteous thing to do.
It obviously builds connectionwith other people, right.
(20:13):
What I had no idea about is thatthe surgeon general issued an
advisory that there's anepidemic of loneliness and
isolation, and being on yourcell phone all the time,
especially during meal time, isa contributing factor to that.
So that blew my mind, and thenI started thinking about this
(20:35):
vacation that I went on with mymom about 14 years ago on a
cruise ship, and this is backwhen the internet wasn't so
reliable and wasn't soaffordable.
So we opted not to have itduring our cruise ship, and I
always had my phone out duringmeal time with my mom, not to be
rude, but we played trivia, youknow, like guess how old this
(20:57):
actor is or what city this wasin, and when I didn't have the
opportunity to have my phone out, we just had to have a
conversation from our minds andour hearts and looking back now,
those are some conversationsthat I remember more than any
other.
So this year we're going to becreating some really fun content
(21:19):
on our channel, and when it'smeal time we're saying that's it
, phone's down.
Phil (21:25):
On the Bullseye today,
it's the return of the milkman.
Does this mark a new era,possibly for increased sales for
milk?
Well, as many of you know, mygrandfather and father had a
dairy farm and were milkmen, soI'm thrilled at this latest
trend that could begame-changing for the industry.
In a turn of events reminiscentof yesteryear, cities across
(21:47):
the nation are witnessing thenostalgic resurgence of the
milkman.
This evokes memories ofmornings that are greeted by
fresh milk bottles on thedoorstep, with the clanking of
glass echoing down quietsuburban streets.
Remember that as it makes itsway back into the urban
landscape.
The Lempert Report takes a deepdive into the implications for
(22:10):
consumers and the milk industry.
So here are some benefits tobringing back the milkman.
Number one, very important, issustainability.
Glass bottles are reusable and,when managed properly, have a
lower carbon footprint thanplastic.
Remember that all that glass isis sand and water under
(22:30):
pressure.
The return of the milkmanindirectly promotes a
sustainable approach topackaging, with these bottles
being collected, cleaned andreused multiple times.
For example, here's one of mygrandfather's milk bottles
that's still around, close toprobably a hundred years later.
Local Supporting local dairiescan boost local economies.
(22:54):
The direct-to-doorstep modelenables these smaller dairy
businesses to thrive and tocompete against large
corporations, ensuring a fairmarketplace.
Direct delivery often ensuresfresher milk, with reduced time
spent in transit and storage.
Milk delivered to doorstepstends to be fresher than what
(23:18):
you'd find in a supermarket.
When I buy milk in asupermarket, it's co-dated for
45 days ahead.
Fresh (23:24):
The milk delivery
service often extends upon just
milk.
Direct delivery allows dairiesto build strong relationships
with their consumers, to gatherfeedback and tailor offerings
accordingly and, mostimportantly, it brings human
contact back to our doorsteps.
(23:44):
Yes, there's no question thatbringing back the milkman will
increase the cost to thecustomers.
Frankly, it's not for everyone,but for those customers who opt
for the service, it will be astrong and recurring business
model.
The door-to-door delivery modelalso opens up a new channel of
revenue for these local dairies,in many cases who are
(24:07):
struggling, which is especiallyvaluable during these times when
traditional retail ischallenged.
The rebirth of the milkman modelspeaks to a deeper desire among
all of us consumers, a yearningfor simpler times, more
personalized service,sustainable choices and, as
Sally said before, more humancontact.
(24:29):
However, it's not without itschallenges.
For the model to be successfulin today's world, it must be
blended with modern convenienceslike online ordering, flexible
delivery windows and a diverseproduct range.
A great example is Dan andDebbie's Creamery in Ely, Iowa,
(24:50):
coining the slogan 'spilled milkyou'd cry over' to accompany
their vintage-style logo, andblack-and-white imagery has
solidified their brand by makingit authentic and relatable to
consumers.
Their community sees thosewords on the side of their
classic white delivery truck asit drives down the road.
(25:12):
After Dan and Debbie grew thedelivery service, the dairy told
Dairy Herd, people felt aconnection to us as a family,
even more so than our products.
Over the last three years,customers have signed up for our
weekly milk subscriptionprogram and that day of the week
has become their favorite day.
(25:33):
It's bringing back thosemoments of their childhood.
People are at the door waitingand greeting us by name.
Dan and Debbie's Creamery,Dairy Heard reports, chooses to
not only talk about their valuesthrough their keywords on their
website, but exemplifies themin their customer experience.
(25:54):
The Creamery does not ding anddash when they deliver like your
Amazon driver does.
They make a point to thank eachand every customer.
Josie Rosam, Dan and Debbie'sdaughter, who's the director of
operations, told Dairy Heardthat, in terms of food and
farming, consumers arequestioning everything.
(26:18):
The unique opportunity forfarmers is the ability to share
their why and potentially builda relationship with the consumer
.
It's good for the dairy, goodfor the consumer and good for us
all, Sally.
Any questions or comments today?
Sally (26:38):
We have a great comment
from John Pandol, as always, he
says.
At the Raleigh State FarmersMarket Restaurant, a diner at
the counter mentioned how niceit was to see no one using their
devices.
The waitress said theyspecifically don't have Wi-Fi to
encourage fellowship whileeating.
True, the only one using adevice was me.
(26:59):
Put it down, John.
Put it down.
Put it down and have had a nicechat with this gentleman down
the counter, and then he leaveshis comment with #FoodNotPhones.
Thanks for the hashtag, John.
Phil (27:12):
Thank you, John.
And Kyle, thanks for the shoutout as well.
Thank you all for joining us.
Make sure that you visitSupermarketG uru.
com during the week for moreupdates and don't forget
tomorrow, September 19th #foodnotphones.
Put down the phone duringbreakfast, lunch, dinner, even
snacks.
Hashtag it out to all yourcontacts so that they know to
(27:35):
leave you alone to enjoy yourfood.
And we'll be back here nextweek.
Sally (27:41):
Be sure to visit
SupermarketGuru.
com for the latest marketinganalysis issues and trends, and
don't forget to join us backhere next Monday at 2.30 PM
Eastern for more.