All the noise in the grocery business right now is about new delivery systems, meal kits and online ordering. In reality, the brick and mortar stores are still where the action is. Only 16% of consumers order groceries online, and according to eMarketer Retail, that number has actually declined for all age groups except 18-29 year olds. In fact, ecommerce represents only about 5% of US grocery sales.
The subscription model for meal kits is also faltering, with Chef’d ceasing operations and Blue Apron reporting that they have lost 24% of their customers in the past year. In response, the meal kit companies have tied in with traditional supermarkets. This lowers their overhead and allows consumers to pick up meal kits when they feel like it, instead of being forced to sign up for a subscription. Blue Apron is available at Costco, Albertsons acquired Plated, Kroger is buying Home Chef, and Hello Fresh is partnering with Giant and Stop & Shop.
Because of the ongoing strength of traditional supermarkets, California walnuts is continuing to implement retail programs that generate display and impulse purchases. In 2019 we will repeat the successful retail tie-ins conducted this past February in celebration of American Heart Month, going into several new markets. The 2018 effort increased sales lifts by over +18%.
California walnuts also tied in with several produce brands this summer to ensure display in the high traffic produce departments of several chains, while encouraging healthy eating. Here is a snapshot of our summer produce partnerships:
Jewel and Martin’s signed up to feature California walnuts with Lil Snappers apples this summer. They ran features in their circulars in July and built displays. Produce for Better Health partnered with California walnuts and Jewel Registered Dieticians to conduct demos and hand out recipe cards.
Harp’s 90 stores featured California walnuts and Naturipe strawberries together for two weeks in late July and early August, including a recipe in their ad block and on in-store signage around displays.
California walnuts worked with Produce for Better Health to run back-to-school promotions at Coborn’s and Schnucks.
California walnuts paired with Avocados from Peru to conduct demos at thousands of Walmart, Costco and Sam’s Club’s this summer.
