State of the Consumer through the eyes of
Steve Tursi
Produce Merchandise Manager, Wal-Mart Stores Inc.
December 7, 2006
Consumer InsightsTime is a scarce commodity
• 70% moms still working • 53% of all dinners prepared by
mom• Hours spent with kids up 19%• Take-out becoming best source
of in-home dinner
Health & Wellness
• Increase in older, empty nester households driving increasing health concerns
Multi-Cultural Population Growth
• By 2050, one out of four persons will be of Hispanic origin
• Ethnic food growth is 7% (vs. 5% for TTL Food)
The Gen Y Mom Dynamic
Dinnertime experiences differ vs. Boomer moms
• More dinners eaten away from home
• Less extensive meal repertoire
• Less savvy in the kitchen
• Less time preparing evening meals
Time is a scarce commodity
Convenience is a lifestyle now
What is the definition of Cooking in 2006?less scratch prepared mealsfewer side dishesfewer fresh itemsmore frozen, ready to eat items
Versions of Convenience
Elements of Convenience:
Food On Demand
New Options for At Home Meals
Meal Planning Simplified
Where are Consumers purchasing Food?
New Options:
• Non-traditional retail
• Making Meals
• Farmer’s Markets
• Take Home Meals
53.0
41.9
39.1
34.5
34.0
1. Requiring little effortor easy
2. That takes little/noplanning
3. Made with foods thatare on-hand
4. Everyone would like
5. Easily cleaned up
Make It Easy, Make It Fast!
dinner time is dilemma time
Day Before20%
Day Of80%
Dinner is a Last Minute Decision!
80% of consumers plan meals the same day they
are consumed
Eating at Home- Taken from Restaurant
“New” is key customers willing to pay :TasteConvenienceNutrition
Be “first to market”
New items will differentiate & drive loyalty
Baking in 2006
Warm Delights
Just add water & Microwave
Ready in 3 Minutes
Health & Wellness
Trends-Fads-Lifestyle changes in eating
Consumers are making an effort to eat healthy
Childhood Obesity
Selling in a Multi Cultural Society
• First Generation Customer
•Being sold bulk or packaged
•Correct Assortment
•Bi lingual Packaging
Key Selling Attributes
Locally Grown
Organic
Sustainability
Locally GrownAre you telling a growing message?
Packaging-ExteriorOn the actual unit-
Bag or PLU sticker
How involved in industry group or state department of Agriculture?
Featuring Locally Grown
The Organic Adoption Cycle
First Phase“Gateway Products”
ProduceDairy
Non-dairy Beverage (Soy)Baby Food
Second PhaseJuice
Single Serve BeveragesMeat/PoultryCold Cereal
Snacks
Third PhaseFrozen Foods
BreadsPasta Sauces, Canned
Tomatoes, Salsa
Fourth PhaseCanned Goods
Bulk Goods
Source: Hartman 2003
Why are consumers purchasing organic foods?
Source; Hartman Group – Organic Consumer Evolution 2003.
66%
38%
30%
26%
0% 10% 20% 30% 40% 50% 60% 70%
Environment
Food Safety
Taste/Quality
Health/Nutrition
Source: NBJ/Spin Organic Foods Report 2003
4.1 4.9 5.97.1 8.5
10.212.3
14.717.2
0
5
10
15
20
25
1998
1999
2000
2001
2002
2003
2004
E20
05E
2006
E20
07E
$20B!
Total U.S. Organic Food Sales
The Definition of Sustainability
Sustainability is simply about actions that support the quality of life now and for generations to come.
EnvironmentalSocietalFinancial
Sustainability in Produce
Is there a message to tell with your product?
If so how are you going to tell it?
All® Small & Mighty
Less Gallons of water Save Gallons of diesel in shippingReduces actual # of trucks neededPlastic resin reductionReduces # of out of stocks- since greater shelf capacity
Consumer Insight- ASSORTMENT
Do You know who is the End User?
Do You know what drives decision at shelf?
Do You know which skus are substitutable?
Do You understand demographic shifts?
Do You know where else they shop and why?
Are you matching these insights to SOTC?