News Briefs

Grocery delivery sales are making a comeback, according to new findings from insights firm Incisiv and digital commerce and fulfillment provider Wynshop. Their Grocery Doppio "State of Digital Grocery Performance Scorecard for H1 2023" reflects the latest analysis of shopper orders.

The report found that in Q2 2023, 49.1% of all digital orders were fulfilled via home delivery, reversing a trend towards store pickup amidst record high temperatures. This compares to 48.5% in Q1.

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Home delivery continues to dominate shopper preference at small grocers, claiming 66.7%. That compares to 48.6% at large grocers.

Meanwhile, total grocery sales in Q2 were $226.1 billion, up from $215.4 in Q1. About $29.5 billion of all grocery sales were digital in Q2, slightly down from $29.9 billion in Q1. 

Grocery sales through third parties fell from $5.4 billion to $5.1 billion, representing a 5.6% reduction between Q1 and Q2 2023.

"We've reached a new level of maturity in digital grocery," pointed out Charlie Kaplan, chief revenue officer of Wynshop. "As shoppers continue to demonstrate their preference to buy direct, grocers have clear opportunities to satisfy shoppers' fulfillment preferences, run digital holiday promotions, and otherwise personalize the customer journey."

The monthly "State of Digital Grocery Performance Scorecards" are built around data analysis of 1.9 million shopper orders and survey results from more than 32,500 shoppers and 3,148 U.S. grocery executives. 

While overall inflation ticked up 0.2% in June, new data from the U.S. Census Bureau showed that the Consumer Price Index (CPI) for food at home was unchanged. The 0.0% rate comes after a slight 0.1% bump in May and consecutive decreases in March and April.

Within the grocery sector, prices fell across several categories, including meats, poultry, fish and eggs (-0.4%), dairy and related products (-0.3%) and nonalcoholic beverages (-0.1%). Foods that fall into the “other” category also experienced a sales dip, down 0.2% in June.

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The CPI in two of the six major grocery categories did go higher during the first month of summer. Fruit and vegetable prices rose 0.8% and cereal and bakery products went up 0.1% for the month. On a year-over-year (YoY) basis, the CPI for food at home is up 4.7% over 2022, compared to 7.7% for food away from home.

On that note, consumers continue to shell out more at foodservice locations, as the CPI for food away from home climbed 0.4% in June. That continues a trend, as the restaurant sector has yet to post a CPI decline or even a 0% rate in 2023.

The increase in the overall inflation rate was driven by higher prices in shelter, new vehicles, transportation and electricity. As summer travel season kicked off, gas prices edged higher again in June by 1% after falling 5.6% in May.

Smoked meat company Godshall's is strengthening its production and distribution capability with the acquisition of a processing plant in Emmaus, Pa. Godshall’s bought the 53,000-square-foot plant from Clemens Food Group and plans to add new smokehouses, ovens and packaging lines, with a planned reopening in mid-2024.

This is the latest expansion from Godshall's, which broadened its 150,000-square-foot facility in Lebanon, Pa., last year. Through the additional plant, Lebanon operation and distribution center in Souderton, Pa., the company reported it can better meet supply and demand needs in its market. The processor is also future-proofing its business with access to 10 acres of adjacent land in Emmaus.

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“Our brand continues to grow in both retail and foodservice and the new addition of this facility allows us to continue expanding. Geographically, the purchase will provide Godshall’s with three production facilities and a centralized distribution center all within a two-hour drive of Philadelphia and the northeast corridor,” explained President Ron Godshall. “Additionally, the Emmaus area has a large pool of experienced workers and we are eager to retain many for the Godshall’s team.”

Established in 1945, Godshall’s is the third largest turkey bacon brand in the U.S. and became an employee-owned company in 2017. Earlier this year, the processor added all-natural Angus beef and turkey sausages to its protein portfolio.

Snack maker Utz Brands, Inc. has named Jennifer Bentz EVP of insights, innovation and marketing services. In this role, she will oversee those key functions and enhance the company’s e-commerce marketing capabilities.

She brings more than 30 years of marketing experience, including digital marketing, to her latest position. Most recently, Bentz was EVP of applied technology and insights at CLIF Bar & Co., where she created a commercial analytics program using first-party data and deployed marketing strategies based on tailored consumer insights. Bentz also served as chief client officer at Mintel and held senior marketing jobs at Tyson Foods and Kraft Foods. She earned a B.S. degree in marketing from Indiana University.

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Bentz will report to CEO Howard Friedman. “I believe that Jen's influential leadership, strategic agility, and drive for results make her an excellent fit for Utz. Her expertise in insights, innovation, and marketing services will be instrumental in propelling our growth and enhancing our understanding of consumers, and it’s a privilege to have Jen join our team,” he said.

In other news, Utz announced that its Zapp’s Sinfully Seasoned Voodoo Pretzel Stix won best pretzel product in People magazine’s food awards for 2023. The company continues to roll out other innovative products, such as its Mike’s Hot Honey potato chip (pictured) launched in May.

The Kraft Heinz Co., Canada’s largest food and beverage company, has moved its Canadian headquarters to the historic Queen’s Quay Terminal in downtown Toronto, replacing the company’s longtime North York, Ontario, location. The new site accommodates more than 350 employees.

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Features of the new headquarters include:

• An on-site state-of-the-art culinary center of excellence to develop and test new products, recipes and social content while building a venue to collaborate with retail and foodservice customers and colleagues worldwide.
• More than 600 work, meeting, breakout and collaboration spaces with technology optimized for hybrid meetings.
• The Crunchy and Smoothy Café, named after Canada’s beloved Kraft Peanut Butter Bears, which includes a coffee bar and micro-market space featuring Kraft Heinz products and grab-and-go items.
• Murals and artwork throughout the office created by local artists and celebrating food, diversity and community

Teams based at the Toronto headquarters location include the Canada marketing, sales and away-from-home functions, as well as team members from the North America digital, people and performance, finance, communications, growth, IT, and operations functions.

Chicago-based Kraft Heinz has been a member of the Canadian business community for more than 100 years.

Filipino-American grocery chain Island Pacific Supermarket has appointed Christine Peebles its new chief marketing officer. Peebles brings to her latest role an extensive background in strategic brand building and the consumer packaged goods industry.

She previously worked for such CPG businesses as The Hershey Co., PepsiCo, Nestlé and Avery Products, where her achievements ranged from driving revenue and profit growth to developing and executing comprehensive brand strategies. She also implemented systems and processes to optimize operations and ensure the seamless execution of marketing initiatives.

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Peebles was born in the United States, but lived in the Philippines from the time she was an infant until the age of 4. She went on to earn an MBA from the Kellogg School of Management at Northwestern University. 

“We are thrilled to welcome Christine Peebles to the Island Pacific Supermarket family as our chief marketing officer,” said Nino Jeff Lim, the company’s founder. “Her exceptional background in strategic brand building, proven track record in the CPG industry, and passion for our mission make her the ideal leader to propel our marketing efforts forward. We are confident that under her leadership, we will achieve unparalleled growth and continue to be the preferred destination for Filipino-American grocery shopping.”

City of Industry, Calif.-based Island Pacific Supermarket offers a wide selection of authentic Filipino food products and a diverse range of groceries to the Filipino-American community and beyond at 18 locations across California and Nevada.