From The Fall 2004 Issue of Natural Grocery Buyer

Trendspotting

Hot Time in the Old Store
Serrano chiles may be hotter than you thought. They’re among the foods predicted to be trendy for Fall 2004. Other food/ingredient trends for fall include:

• Green tea (as a cooking ingredient)
• Exotic grains, such as black rice and faro
• Heirloom produce and micro-greens
• Sweet savory foods
• Hispanic beverages (aqua frescas)
• Lemongrass
• Miso

By Winter 2005, customers may be clamoring for these foods:

• Coconut milk
• Serrano ham
• Ethnic condiments (sambal, chutneys) and seasonings (galangal, garam masala)
• Tortas
• Exotic fruits
• Piquillo peppers

Keep in mind most trends make their appearance in restaurants and magazines before consumers start asking their retailers to carry them.

Source: Packaged Facts/Center for Culinary Development, Culinary Trend Mapping Report: A Quarterly Journal of Food and Ingredient Insight

—L.B.

Organic and Gourmet Fare Well at Kroger
Kroger Co. has reopened several of its supermarkets as Fresh Fare stores, offering shoppers items such as sushi, gourmet takeout food, organic produce and an extensive selection of fine wines and cheeses. Kroger operates 20 of its Fresh Fare stores in California under the Ralph’s name and is currently testing the concept in five Michigan locations.

At a time when many people buy their toilet paper at Wal-Mart, their Cheerios at Kroger and their apples at Whole Foods, the Fresh Fare concept is an attempt to guide people towards one-stop Kroger shopping. “They’re looking for the crossover shopper,” says Dexter, Mich.-based food industry consultant Tim Redmond. “They want to keep people from going to Trader Joe’s, Whole Foods and Wild Oats.”

Kroger is not going after the customer who shops exclusively at those upscale, natural foods chains, says Redmond, but rather the customers who already shop Kroger but might travel to Whole Foods for things like vegetables, meats and prepared foods.

Kroger’s Fresh Fare concept is yet another sign of the increasing amount of money spent on gourmet and organic foods—and of conventional grocery markets’ ongoing attempts to capture those dollars. With third-quarter sales at Whole Foods rising 22 percent to $917 million, it’s clear that the demand for this kind of food is high.

“The trend towards consumer awareness and the movement towards organic food purchases are increasing, and Kroger knows that very well,” Redmond says. “They know they need to capture as many shoppers as they can.”

—O’rya Hyde-Keller

Health Clinic Farmers’ Markets a Hit
Kaiser Permanente has taken nutrition education beyond weight-loss classes and food diaries, bringing organic farmers’ markets to the parking lots of California clinics.

The weekly farmers’ markets started in May 2003 in downtown Oakland, Calif., where Kaiser is headquartered. The flagship market now attracts 1,000 people a week to browse and buy organic produce, dairy, bread and flowers.

The concept has since expanded to 10 other California cities and Hawaii, and will launch in Oregon and Washington, D.C., in 2005. Many of the new markets are in urban neighborhoods where access to fresh organic produce has been limited.

“It links up with how we think of ourselves, as a healthy organization,” Loel Solomon of Kaiser told the San Francisco Business Times. Kaiser also is considering sourcing organic and locally grown food for its hospital cafeterias, foodservice and business meetings, the paper said Aug. 6.

Kaiser Permanente has 8.2 million members and 136,000 employees in nine states and the District of Columbia.

“We’re bringing the food to where the people are,” said John Silveira of the Pacific Coast Farmers’ Market Association, which runs the markets for Kaiser.

—L.E.

Food Fears Fuel Organics Sales
Food safety is still on the minds of your customers, and threats of everything from toxic chemicals to mad cow disease motivate shoppers to try organics, according to new research from Mintel.

Overall, the organic food and beverage industry grew 81 percent between 2001 and 2004 to more than $5.3 billion. About half of respondents to the Mintel survey said they were “highly concerned” about food safety and this concern led them to purchase organics.

Among the statistics from Mintel’s report, published in August:

• The market for organic fruits and vegetables grew 65.5 percent over the past two years.
• Forty-four percent of Americans said they purchased organic foods “at least occasionally,” up from 37 percent in 2002.
• Half of respondents worry about genetically modified foods.
• All age groups were at least as likely to buy organics in 2004 as they were in 2002, but the largest increases were seen among young adults, ages 18 to 24 (49 percent versus 34 percent two years ago), and 55- to 64-year-olds (45 percent, up from 25 percent).
• Ten percent of consumers are devoted enough purchasers to be described as “organic obsessed,” while 34 percent are “occasionally organic.”

—L.E.

Expo Showcases Best of Organic, Natural

Expo photo: Thom Westergren

The New Product Showcase will feature more than 600 new products, and the show floor will offer 1,700 booths. Stop by the annual New Product Showcase Awards exhibit—booth 4241 in Hall A—to check out the 30 new products deemed best in show and vote for your favorites.

To learn about the latest industry trends, attend some of the 70 educational seminars, including “Hot New Products and Natural Products Trends of 2004,” “Is Organic Healthier? The Science Supporting Organic Foods” and “Organic Basics—From the Ground Up.”

For a look at international organic food trends, visit exhibits from 12 countries in the Organic Products Expo-BioFach America exhibit hall.

Sample the latest low-carb products in Expo’s Low Carb Café, which will focus on a healthy, whole foods approach to low-carb eating.

If you can’t spare four days away in D.C., Expo has a solution with new one-night packages for East Coast retailers. Arrive either the morning of Friday, Oct. 15, or Saturday, Oct. 16, for two full days to accomplish everything: seminars, networking and buying. To plan your itinerary, use the online Expo Planner at www.expoeast.com. Preview the show floor layout, request specific vendor appointments, check out new products and get a preliminary look at show specials.

For more details on the packages or to plan a personalized itinerary with an Expo customer service rep, call 866.458.4935.