Episode Transcript
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Phil (00:05):
Welcome to the Lempor t
Report IVE.
On today's broadcast (00:07):
Done on
these lists of the top grocers,
independent retailers, look intotheir crystal ball's and
there's some interesting pointsthere.
What started in the food courtsat malls now expands to
restaurants Food N ot Phones,Siggi's Challenge and, on the
(00:30):
bullseye, the marketing of foodsin the age of Ozempic, let's
get started.
So, Sally, when I look atDunnhumby's list and I'm curious
about this and I like the listand I agree they name HEB as the
top US grocery retailer andthey've got this is the eighth
(00:54):
year that they've done it theretailer preference index, and
what they do is they look atfive categories price promotion,
the rewards, quality, digitaloperations and then speed and
convenience as one category.
They look at the top 65 largestretailers that sell food and
(01:17):
HEB was number one.
Amazon was number two, whichwas very surprising to me,
costco number three and thenMarket Basket, Sam's Club,
wegmans, aldi, shoprite, walmart, neighborhood Market and then
Walmart itself.
So what I'm curious about andwe see these things from
(01:41):
consumer reports every year andUSA Today and everybody else
does all these lists howretailers can really learn from
these findings.
I think is so important and whatI object to and I love
(02:02):
Dunnhumby.
I think they're a brilliantcompany, but what I object to is
the fact that they're reallynot giving other retailers the
tools that they need to get intothe top 10.
You know, like, hey, be nicerto your customers, have record,
whatever.
So what do you think of thistop 10?
(02:25):
And you've spent time in Texas,you've been to H-E-Bs.
I know you're a Kroger shopper.
Kroger, by the way, has notdone really well in this survey
for a number of years, but whatdo you think?
Sally (02:44):
Yes, like you, I was
surprised to see Amazon as
number two, but I was notsurprised to see H-E-B on the
top of the list.
You know they receive a lot ofaccolades for the way that they
operate their business.
We love H-E-B.
My husband is from Waco, Texas,and we always go to the H-E-B
when we're in Waco.
You know people really likeH-E-B for one reason because of
(03:09):
the employees the employees thatmany of which have worked there
for over 30 years.
They seem to do really great atmaking their employees happy
and excited about their job andthey must offer some great
benefits so that they can keepreally good, dedicated employees
, and I think that that'ssomething that's coming up a lot
(03:30):
right now.
With self-checkout being anissue for some people, with
people moving away, some peoplemoving away from delivery and
wanting that human experience.
They want to be able to connectwith the people in stores.
I also think one of the reasonsthat H-E-B is doing so well is
(03:51):
one for value, but also theyhave a lot of unique offerings
and food products.
You know, one of the things welove about going to H-E-B is
that they make their owntortillas in the store and it is
a very exciting thing to go toa big retailer like that and
find homemade tortillas.
Phil (04:10):
And also what I love and
I'm so happy that you brought up
the tortillas, like what I loveabout it is it's not where it's
in the back room, it's you know, the H-E-Bs that I've been in.
It's usually near the deli,right in front, so it's like in
the middle of it.
You can't miss it.
You know there's somebody there, you know, just doing it.
(04:30):
I agree, I applaud H-E-B.
The other thing, and I thinkthat these surveys get too
complicated so Market Basket,Win Co and Aldi took the top
three spots as it relates toprice promotions and rewards,
and Wegmans maintains its topposition in the quality category
(04:53):
and it's held every year Of theindex since its inception.
So I think we just need to makeit simpler.
But we applaud HEB.
I'm totally in tune with you onthat.
Now, Whole foods magazine, whichhas nothing to do with whole
foods.
The supermarket chain um Did acolumn which I think is
(05:17):
interesting, where they surveyedindependent retailers about
what's going on now and thefuture.
What I don't like about thearticle is, first of all, they
don't need the retailers.
So they say, oh, southeastretailer, and the southeast
retailer says what's mostconcerning is not being fully
(05:38):
stashed.
Um, we benefited from socialmedia influencers pushing items
they wanted to restore.
In reading through all thesereports, all these retailers and
there's got to be 10, 12different retailer comments in
most of them were small sports.
Most of them have a health foodbent.
(06:01):
So there's a lot of thatvitamins and talking a lot about
supplements, things like that.
But you stand out.
For me is that number one theyare having a labor shortage, no
question about it.
Number two is that what they'refinding again, independent
(06:22):
retailers in all our stores thata lot of the major brands are
not Satisfying their needs.
They can't get product on, ifyou would on.
There's a couple of them thattalked about employees and
there's one that makes me laugh.
This is a southern retailer.
(06:43):
Wherever that might be, labor isalways our number one challenge
.
There's always attrition.
Okay, we know that we had sometoxic people that created.
What enormous stress.
They shut down the store duringcove it for a month.
Hiring to replace the crew tooka while, but we have good, nice
(07:06):
people now and good peopleattract more nice people.
To your point about each eb,you know, let's focus on the
employees, let's forget about Aoff.
I mean, some of these retailersare talking about a off thought
.
It comes down to the people,and you know Whole Foods
(07:27):
magazine.
Again, I think your concepthere was a good one, but name
the retailers.
Give us more specifics on whatpeople can really learn from
these retailers.
Sally (07:45):
I agree, I would love to
know who some of these retailers
are.
I would love to visit theirstores and see what's going on,
what's working, what's notworking.
But, yes, the main theme Iheard over and over throughout
reading about these differentsmall retailers in different
regions of the country was weheard about staffing and not
(08:06):
being able to get people thatwant to work, that are excited
about working.
We heard about focusing onbeing more efficient.
We had also heard about socialmedia influence.
Something interesting that Itook away from that was the idea
that they're talking aboutusing those social media
influencers but that it doesn'talways mean that we're posting a
(08:28):
bunch of pictures of food.
We're actually doing betterposting pictures of human beings
.
Here we are.
The 2024 theme is humanconnection.
We've been talking about this alot.
I love last week, Phil, theinterview that you did with Lisa
W.
Miller.
Lisa W.
Miller talked about investingin your employees and how
(08:51):
important that is right now.
I couldn't agree more that wewant people to go into our
stores and have that great humanexperience right now.
We're not long past being shutdown from the pandemic, but
we're out, that we're gettingout there and we're more into
(09:15):
meeting up with people andconnecting and having
conversations.
It is interesting to see thatthese small retailers are
talking about the same thingabout having employees that are
excited to work there and reallyinvesting in that.
Phil (09:30):
I agree with you.
Check out the story in WholeFoods magazine.
Again, it's not related toWhole Foods, the supermarket
chain.
And again, recommendation ofWhole Foods magazine Tell us who
these retailers are.
I can't believe that when Iread some of these comments,
(09:51):
that it's because they wantconfidentiality.
Because they're not.
Let's move on.
In Seattle there's an article inSeattle Times that Beth Ann
Clement wrote she's the SeattleTimes food writer that talks
about how some of the newrestaurants in Seattle, the
(10:14):
upscale, quality, chef-drivenrestaurants, are going to
counter service when basicallywhat you do is you go up to the
counter, you order at thecounter, they might give you a
number and then they bring youyour food.
It reminds me of when foodcourts first started in shopping
(10:36):
malls.
She really talks about the costsavings that are there.
But probably my takeaway, whichI really didn't think about,
because I think about McDonald'sor I think about Starbucks or I
think, in terms of counterservice like that, that what
(10:57):
these chefs are doing is they'rereally training their people at
the counter to be able toexplain about the food, to talk
about the food.
That this could be a new trendthat really connects the the
people who've got a restaurant,more with the kitchen than
having to go through.
(11:18):
You know you're a waiter To tocommunicate.
What do you think of this ideaand do you think that it has
legs and it's going to expand?
Sally (11:32):
I have mixed feelings
about this, phil.
You know it's it the the ideabehind it that you know some of
these restaurants ended up goingthis way because during the
shutdown, they had to just learnhow to make great takeout food.
What can they make that willtravel well from restaurant to
home and will be great.
(11:53):
So I can see where it, howthey've ended up here.
And you know, as we've beentalking so much about, about
staffing issues, you know, Ithink so these restaurants are
seeing, and this is anopportunity hey, let's focus on
making really great food, makingour food really.
That's what people are comingfor and you know we can.
(12:16):
We don't have to spend as muchmoney on the staffing.
Now, one of the issues I takewith it and I'm I just got back
from Baja in Mexico, and this isvery, very common place, where
I was almost every restaurantWas order at the counter, take a
number to your table, even invery nice restaurants, and then
(12:37):
you sit and wait and I find itto be a little bit frustrating
because I Don't.
I feel like I'm forgotten, Ifeel like, oh no, they're not
gonna find me.
I feel like it takes longer forme to get my food or to get a
refill on my drink, or you knowanother cocktail.
(12:57):
If I'm ready to have anothercocktail, I've got to go to the
counter in order again, ratherthan order from my server.
So you know, this to me is aslippery slope, just like
self-checkout is.
You know, peace.
Those people that don't want todo self-checkout, they want a
person at the grocery storehelping them through the process
(13:21):
of checking out their groceries, bagging them.
You know all of that.
They may feel the same wayabout going to a restaurant
where they don't have somebodyactually taking care of them.
Phil (13:32):
I think you bring up some
really good points and also in
this article she talks about thefact that I think it's an
average of a nice restaurant,not a really upscale restaurant
in Seattle on.
For two people.
Now, dinner for two and winecost you 150 bucks, so for $150.
(13:54):
Yeah, I want to wait her.
I'm somebody to agree and and Ilove your example of
self-checkout.
It's.
It's the same issue and and Ithink that While it is a
cost-saving certainly for a lotof restaurants to be able to do
this, I am concerned that itdrives more people away From
(14:17):
wanting to go to a restaurantbecause it's just a real in on
the ass To do it and to wait.
And and you know, I love yourobservation that you feel a
little lonely just sitting therewith your number and nobody's
paying attention to you.
You know, I think he could.
When we go to a restaurant,part of it is, you know, having
(14:39):
a community, part of it's beingseen, part of it's being, you
know, part of this whole bigthing in in a restaurant and if
you're just sitting there with alittle plastic number, it Takes
away, takes away.
So good point.
So, um, he's food, not phones.
I wanted, I want to talk aboutsome statistics here.
(15:00):
The average person spends 5.4phones, 5.4 hours on their
smartphone, every single day.
This comes from eco htm, and96% of Americans have at least
one cell phone.
71% have admitted they sleepnext to their phone.
(15:22):
I don't sleep next to G, sleepnext to your phone.
Selling.
Sally (15:26):
I do, because I use it as
my alarm, so I could get an
alarm clock, I guess.
Phil (15:34):
Yeah, okay, that's a good
point.
I yeah, I've trouble sleeping,so I don't need an alarm clock,
I'm just up all the time.
Also, what they, what they cite, is Experts like Nielsen, smart
insights, comm score and PewResearch Center that say that
more than half of that time isspent on social media Over the
(15:58):
course of a lifetime.
I found this fascinating.
You'll spend a year and sevenmonths on Facebook, more than a
year and ten months on YouTube.
Snapchat takes up 14 months ofyour time, eight months on
Instagram and 18 days on Twitter.
Not sure why it's only 18 daysof Twitter.
Maybe that's since Elon Musktook it over.
(16:20):
The average American spendsupward for 55 minutes a day
texting and the remainder of thetime checking email, browsing
the internet and using otherapps.
The average user, how manytimes would you say that you
picked up your phone every dayto look at it?
Sally (16:41):
Oh my goodness, um 20.
Phil (16:45):
Okay.
So the average user picks uptheir phone 58 times a day.
58 times a day, that's two anda half times every hour, and 82%
of people in the survey believethat they use their cell phones
less than the national average.
(17:06):
So we we really have a problemhere, but we're glad a yogurt
company who has always beencutting edge that's decided to.
And there's my cell phone goingoff talking to you right now.
I'm right now.
There's a good company.
(17:27):
We've always been ahead of thegame as it relates to yogurt,
icelandic yogurt, siggies.
What is siggies doing?
Sally (17:38):
This is really cool and
you know, phil, we're
particularly excited about itbecause, you know, in last
September hopefully people arestarting to know about it we
started a grassroots campaigncalled Food Not Bones, trying to
get more and more people onboard this idea that we need
less screen time.
And, once again, we need thathuman interaction, we need that
(17:59):
community.
We need that for our mentalhealth right now and for our
communities to thrive.
So I love this.
They're comparing it to dryJanuary, which has become very
popular, where people give upalcohol for a month to see how
they feel what that does forthem, and this is asking people
(18:19):
to do a 30-day digital detox.
Now they're gonna pick 10winners and they're gonna give
those winners $10,000.
You also have an opportunity towin a smartphone lockbox so you
can just lock that phone up soyou can't get to it, a good
(18:41):
old-fashioned flip phone, aone-month prepaid SIM card and
three months worth of siggiesyogurt.
So they've got some reallygreat prizes.
That $10,000 would be amazingto win and you just have to put
your phone down for a month soyou can go to their website and
I'll post in the comments thelink for the contest so you can
(19:06):
look at all of the rules.
But yeah, this is a great wayto spread the message here about
that.
We're spreading food, notphones, and let's just all start
thinking about limiting ourscreen time a little bit more.
Phil (19:19):
Absolutely.
And what I love about it and Ihope they publish this part of
submitting for the contest isyou have to write an essay on
why you need a digital detox inyour life and how it will impact
in a positive way.
So I'm just hoping and we'regonna reach out to siggies to
(19:41):
hopefully get some of thoseessays and we'll publish them on
food, not phones as well.
So great, great idea, siggies.
I wish more companies would doit, more food companies getting
behind it and, to your point,let's just relate to each other
(20:01):
versus just technology.
Thanks, ali, on the bullseyetoday, kim Severson, one of my
favorite writers at the New YorkTimes, has another notable
column that's a must read forall of us in the food world.
In the Ozympic age, has Cravablelost its selling power?
(20:22):
Since Ozympic has come on thescene, many, including us, have
written and talked about theimplications, both the good and
the bad, of this new drug.
Severson's column adds a newdimension, though Cravable for
food brands has long stood as abeacon for food developers to
(20:43):
produce products with qualitiesthat engender a desire,
sometimes a very intense desire,for more.
All too often these propertiesare sugar, salt and fat, and all
too often they can becomeaddictive and found front and
center in ultra processed foods.
(21:05):
Now, there's more to beingCravable than just those three
properties that seem to comeunder attack.
Creating Cravable foods is anart that involves a delicate
balance of flavor, texture,aroma and visual appeal, along
with the non to both the noveltyand tradition, and a touch of
(21:27):
emotional connection.
Let's remember that food is notjust sustenance.
It's comfort, celebration andits tradition.
Effective food brands shouldaim to create an emotional
connection through their foodofferings.
The crux of crevability lies inthe perfect balance of flavors
(21:49):
sweet, salty, sour, bitter andumami.
Each of these taste profilesplay a vital role.
Texture is often a secondthought to flavor, but it's a
critical component of foodthat's craved.
The contrast between crunchyand creamy or the satisfying
bite of a high-quality piece ofdark chocolate can elevate a
(22:13):
food from good to crave-worthy.
Then there's the aroma.
We've all walked into a bakeryand sensed the desire for a
piece of that warm, delicious,smelling crusty bread, or
walking through the producedepartment, where the aroma of
fresh citrus puts us, frankly,in a better mood.
Severson begins her column withthe memorable advertising from
(22:36):
Frito Lay's award-winning andpowerful TV ad, where actor Bert
Lahr told up a single potatochip and challenged us by saying
betcha can't eat just one.
She goes on to cite otherexamples of craveable foods and
how brands advertise them tolure consumers towards craving
(22:58):
them.
But the major focus of hercolumn and what we need to pay
attention to is posing thequestion to food marketers on
how they will have to respondwith new recipes, as drugs like
ozempic and would gov change theway people consume our foods.
Now these new drugs eliminatefood cravings.
(23:20):
They create a major challengefor food brands.
Our friend Marion Nestle toldher that these drugs aren't
existential threat to the foodindustry and certainly an
existential threat to theprocessed food industry.
Other experts aren't asconvinced as Nestle that these
(23:41):
drugs are game-changing.
I tend to agree with Marion anddo believe that the food world
is at a turning point, not justbecause of these drugs, but also
because consumers are fed upwith long lists of ingredients,
preservatives and artificialanything in our foods.
Yes, we're seeing more foodbrands investing in more
(24:04):
celebrities and influencers thanever before on TV and, of
course, on social media.
And yes, during the pandemic,we saw all generations gravitate
towards comfort and highlyprocessed foods to make us feel
good and better.
But the pandemic is over andwe're finally seeing increased
(24:26):
awareness and interest in thefoods that we eat.
As food inflation has reachednew heights, our shoppers paid
more attention.
We don't have to or want tolose cravability as an industry.
We just must work a bit harderto make better for you foods
non-ultra-processed foods, andseeking ingredients that are
(24:50):
more sustainable, and thencreate more natural foods that
are just as craveable as BurtLahrs' Challenge.
Thanks for joining us onLempert Report LIVE and we'll be
back and see you here same timenext week.
Sally (25:07):
Be sure to visit
SupermarketGuru.
com for the latest marketinganalysis issues and trends, and
don't forget to join us backhere next Tuesday at 2:30 pm
Eastern for more.