Food Business News - March 31, 2020 - 9

Shoppers adapt to new normal
created by pandemic

Sales of dried beans
rose 231% for the
week ended March 14
when compared to the
previous four weeks.

©SIMONE - STOCK.ADOBE.COM

©VALYA82 - STOCK.ADOBE.COM

Some food categories have
experienced significant growth
as consumer purchasing patterns
shift.

KANSAS CITY - Altered consumer purchasing
behaviors in the wake of the spreading
coronavirus outbreak has food and beverage manufacturers as well as retailers
scrambling to keep pace with the changes.
While much focus has been on cleaning
and personal care products, some food
categories have experienced significant
growth, and market researchers see
consumer shopping patterns shifting to a
new normal.
Staples like dried beans saw sales
rise 231% for the one-week period ended
March 14 when compared to the previous four weeks, according to the market
research company Nielsen. Canned meat
sales spiked 188%, rice 166%, chickpeas/
garbanzos 157%, powdered milk products
245% and water 99%.
Nielsen has organized consumer
response to the coronavirus outbreak into
six categories - proactive health-minded
buying, reactive health management,
pantry preparation, quarantine living
preparation, restricted living and living
a new normal. In an article published
March 16, the market researcher placed
the United States squarely in category 5 -
restricted living - and Canada in category
4 - pantry preparation.
Within the restricted living category,
there are mass cases of the coronavirus
and communities are ordered into lockdown. At this stage, consumers severely
restrict shopping trips, online fulfillment
is limited, and price concerns rise as

March 31, 2020

limited stock availability impacts pricing
in some cases.
Food delivery, click-and-collect,
online shopping and home delivery are all
expected to increase as consumers avoid
going to areas where there may be large
gatherings, according to Information
Resources, Inc. (IRI), Chicago. The market
research company said click-and-collect
and home delivery must be every retailer's
business priority.
Within the supply chain, IRI said the
number of product choices consumers
have going forward may be limited as
manufacturers focus on production of
top stock-keeping units to meet demand.
Food and beverage "stockable" items IRI
predicts will continue to be popular are
shelf-stable and frozen food items, sports
drinks and water.
The Center for Food Integrity (CFI),
Kansas City, sees isolation and social
distancing brought on by the coronavirus
as causing unprecedented changes in
consumer behavior.
"Buying patterns have shifted dramatically as people stock up on supplies,"
said Carl Persson, senior director of global
cross-category consumer insights at
PepsiCo, Inc., Purchase, NY. "In addition to
hand sanitizers and toilet paper, shoppers
are passing over fresh items to fill their
carts with canned and frozen foods.
"It really is a reversal of everything
we learned about shopper trends over the
past decade or so. I imagine there'll be a

great awareness of the notion of preparation and of keeping a supply."
The CFI's Consumer Insights Trust
Council has been meeting monthly since
December to identify the early signals of
emerging trends. At the March meeting
the group saw an acceleration in consumer "homing" that has been building during
the past few years.
"The world is a bit of a scary place,"
said Susan Schwallie, executive director
of the NPD Group's Food and Beverage
practice, Chicago. "The home has been a
very comforting spot where we can get all
of our entertainment and we can get just
about anything delivered to us. Your home
is your sanctuary."
A factor driving the homing trend
is millennials who see food as a social
occasion and like to gather in their homes
with friends, Ms. Schwallie said. Meal
delivery and video streaming also make
it possible to eat restaurant food at home
and means consumers don't have to go out
to be entertained.
"That notion of cocooning and the
search for safety, that's been a long-term
trend, and the more chaotic the world
gets, people search for these notions of
what they know and trust," Mr. Persson
said. "My hunch will be that this (coronavirus outbreak) just reinforces that."
On March 15, President Donald
Trump met with executives from food
manufacturing and retail to discuss the
state of the supply chain. A result of the
meeting was consumers were urged by the
White House and other officials to reduce
the level of panic buying that has occurred
in some parts of the United States.
The CFI noted that as the situation
around the world changes, so will the
potential impact on the food system.
"It's going to take us a little bit to see
how this evolves and whether this does
lead to fundamental changes in culture,"
said Ujwal Arkulgud, founder of MotivBase, an ethnographic search engine
from MotivIndex, Inc., Toronto, and a
member of CFI's board of directors. "We
know things are going to get worse. We
just don't know the degree to which that
will happen. Culturally and in terms of
the impact on businesses, it's a wait-andwatch game." FBN
Food Business News

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Food Business News - March 31, 2020

Table of Contents for the Digital Edition of Food Business News - March 31, 2020

Food Business News - March 31, 2020 - 1
Food Business News - March 31, 2020 - 1
Food Business News - March 31, 2020 - 2
Food Business News - March 31, 2020 - 3
Food Business News - March 31, 2020 - 4
Food Business News - March 31, 2020 - 5
Food Business News - March 31, 2020 - 6
Food Business News - March 31, 2020 - 7
Food Business News - March 31, 2020 - 8
Food Business News - March 31, 2020 - 9
Food Business News - March 31, 2020 - 10
Food Business News - March 31, 2020 - 11
Food Business News - March 31, 2020 - 12
Food Business News - March 31, 2020 - 13
Food Business News - March 31, 2020 - 14
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Food Business News - March 31, 2020 - 56
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