PMA FRESH CONNECTIONS RETAIL Philadelphia, Pennsylvania April 8-9, - PowerPoint PPT Presentation

PMA FRESH CONNECTIONS RETAIL Philadelphia, Pennsylvania April 8-9, 2015 Brian Numainville Principal, Retail Feedback Group

Welcome Panelists Mary Rita Baby Boomer Jerry Baby Boomer Stephanie Gen X Kate Millennial Antoinette Millennial PRODUCE MARKETING ASSOCIATION

Generations Represented on Panel Today Baby Boomers: Born Between 1946 – 1964 (51 to 69 in 2015) Generation X: Born Between 1965 – 1980 (35 to 50 in 2015) Millennials: Born Between 1981 – 1997 (18 to 34 in 2015) Sources: Pew Research Center PRODUCE MARKETING ASSOCIATION

Generation Who: How Do They Research and Make Purchasing Decisions? PRODUCE MARKETING ASSOCIATION

Generation Who: How and Where Do They Shop? PRODUCE MARKETING ASSOCIATION

Generation Who: What Do They Expect From Retailers? PRODUCE MARKETING ASSOCIATION

Putting It All Together: Getting Inside Consumer’s Minds PRODUCE MARKETING ASSOCIATION

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The Greatest Generation Born Before 1928 (88 to 100 in 2015) PRODUCE MARKETING ASSOCIATION Sources: Pew Research Center; Tom Brokaw – “The Greatest Generation”

The Silent Generation Born Between 1928 – 1945 (70 to 87 in 2015) PRODUCE MARKETING ASSOCIATION Sources: Pew Research Center; Time magazine

The Baby Boom Generation Born Between 1946 – 1964 (51 to 69 in 2015) Sources: Pew Research Center; Photo – Hudson Valley News Network (hvnn.com) PRODUCE MARKETING ASSOCIATION

Generation X Born Between 1965 – 1980 (35 to 50 in 2015) Sources: Pew Research Center; Photo credit – governing.com PRODUCE MARKETING ASSOCIATION

Millennial Generation Born Between 1981 – 1997 (18 to 34 in 2015) Sources: Pew Research Center; Graphica PRODUCE MARKETING ASSOCIATION

Gen Z Born 1998 and later (17 and younger in 2015) PRODUCE MARKETING ASSOCIATION Source: Pew Research Center

Generations are Unique PRODUCE MARKETING ASSOCIATION

Generations Have Differences in Values VALUES IN… BUILDERS BOOMERS XERS N-GEN MOTHER Homemaker Working Mother Single Mother Single Mother/ Father FAMILY Close Family Dispersed Family Latchkey Kids Looser Family Structure MARRIAGE Married Once Divorced/ Remarried Single Parent Undetermined HAIR Short Hair Long Hair Any Style Hair Bleached/ Spiked CLOTHES Formal Casual Bizarre Anything Goes MUSIC Big Band/ Swing Rock 'n' Roll Alternative, Rap Very Diverse MONEY Save It Now Buy It Now Want It Now Get It Now (online) PURCHASING Purchase w/ Cash Purchase w/ credit card Struggling to Purchase Purchase Online MARKETING Ford Marketing Concept GE Marketing Concept Ignored Market Interactive Global Market HIGH-TECH Slide Rule Calculator Computer Internet WORK STYLE Team Work Personal Fulfillment Tentative/ Divided Loyalty Networking WAR Win a War Why a War? Watch A War Winless War MORALS Puritan Ethics Sensual Cautious Tolerant Source: “Boomers, Xers and Other Strangers” - Dr. Rick & Kathy Hicks PRODUCE MARKETING ASSOCIATION

Population Trends by Generation Source: Pew Research Center PRODUCE MARKETING ASSOCIATION

Population Trends by Generation Source: New York Times (nytimes.com), August 21, 2014 PRODUCE MARKETING ASSOCIATION

Population Trends by Generation PRODUCE MARKETING ASSOCIATION Source: Nielsen – “Millennials: Breaking the Myths”, January 27, 2014

Multicultural Population Growth Source: Nielsen – “The Multicultural Edge: Rising Super Consumers, 2015” PRODUCE MARKETING ASSOCIATION

Food Shopping & Generations PRODUCE MARKETING ASSOCIATION

Average Monthly Grocery Spend & Trips Millennials: ¡$252.60 ¡ Silent: ¡$263.70 ¡ Gen ¡X: ¡$323.10 ¡ 4.1 ¡ Trips ¡ 3.6 ¡ 3.9 ¡ Trips ¡ Trips ¡ 3.6 ¡ Trips ¡ Boomers: ¡$295.50 ¡ Source: July 2013 Acosta/AMG Strategic Advisors Report – “Four Generations in the Aisle” PRODUCE MARKETING ASSOCIATION

Channel Preference - Making More Trips To: Baby Gen X Millennial Boomer Silent Drug ¡ ¡ Grocery ¡ ¡ Grocery ¡ ¡ Club ¡ & ¡ ¡ & ¡ ¡ & ¡ ¡ & ¡ Dollar ¡ Club ¡ Dollar ¡ Drug ¡ Source: July 2013 Acosta/AMG Strategic Advisors Report – “Four Generations in the Aisle” PRODUCE MARKETING ASSOCIATION

Cost Consciousness of Generations Select Steer Clear Products of Certain Buy Brands Choose to Create Aisles on Sale Products Meals to Avoid Rather than Based on at Lowest Unplanned Preferred Loyalty Card Cost Purchases Brand Discounts 45% 39% 37% 35% 33% 32% 27% 27% Gen ¡X ¡is ¡a ¡cost ¡ 25% 22% 22% 20% 19% conscious ¡generaGon ¡ 16% 15% and ¡careful ¡about ¡ 11% their ¡purchases, ¡just ¡ slightly ¡less ¡than ¡ Millennials. ¡ ¡ Seniors Boomers Gen X Millennials Source: SymphonyIRI Press Release – October 23, 2012 PRODUCE MARKETING ASSOCIATION

% Buying More Store Brands to Save Money Silent ¡GeneraGon ¡ 26% ¡ Baby ¡Boomers ¡ 36% ¡ Gen ¡X ¡ 41% ¡ Millennials ¡ 42% ¡ Private ¡Label ¡Growing… ¡ Source: July 2013 Acosta/AMG Strategic Advisors Report – “Four Generations in the Aisle” PRODUCE MARKETING ASSOCIATION

Boomers & Grocery Spending “As a result, younger Boomers outspend Millennials by nearly $8,000 annually and the typical consumer by $5,000, with spending occurring across most categories. Boomers will control more than half of all dollars spent on grocery foods this year, with a particular focus on health and wellness.” – Progressive Grocer, March 18, 2015 Sources: Fung Business Intelligence Centre (FBIC) publication: “Profiting from a Graying America”; PRODUCE MARKETING ASSOCIATION Quote - Progressive Grocer

Gen X – Smart About Researching 55% of Gen-Xers download recipes off websites and other online sources 52% download coupons from manufacturer websites 51% download coupons from retailer websites 51% download coupons from couponing sites, such as SmartSource 38% research products online 35% visit deal sites, such as Woot and Groupon 31% use social media sites, such as Twitter and Facebook, to get coupons 23% look for updates from retailers/manufacturers via email/text message 18% research products on blogs 7% purchase groceries online and have them delivered Source: SymphonyIRI Press Release – October 23, 2012 PRODUCE MARKETING ASSOCIATION

When is the Supermarket Shopping List Made? 32% 37% Milennials Millennials are 29% 46% more likely to Gen X make their list 50% 27% right before Boomers 59% 21% shopping versus Matures the other generations who 0% 50% 100% build list during their lists during Right Before Going to the Store the week. Throughout the Week in Between Trips as Items Run Out Some Other Time Source: Food Marketing Institute: “U.S. Grocery Shopper Trends, 2014” n=2116. PRODUCE MARKETING ASSOCIATION

Generations and Shopping List Inspiration Planning ¡for ¡a ¡ Checking Checking Planning Checking Stock Specials Meals Recipes shopping ¡trip ¡for ¡ Millennials ¡centers ¡ on ¡planning ¡meals ¡ 70% 68% and ¡checking ¡recipes ¡ 67% 66% versus ¡other ¡ 50% 47% generaGons ¡more ¡ 43% 42% 35% 36% 37% likely ¡to ¡check ¡ 34% 31% 31% specials ¡and ¡stock ¡ 21% 18% up. ¡ Matures Boomers Gen X Millennials Source: Food Marketing Institute” “U.S. Grocery Shopper Trends, 2005-2014” - 2014 n=2116. PRODUCE MARKETING ASSOCIATION

Fresh Foods on Growth Trajectory According to NPD's "The Future of Eating: Who's Eating What in 2018”: Fresh foods – such as fruits, vegetables, meat, poultry, fish and eggs – will play an even more central role in all three main meal occasions over the next five years. The consumption of fresh foods grew by 20 percent to more than 100 billion from 2003-2013, a trend driven primarily by Generation Z and Millennials, The NPD Group found. Source: Progressive Grocer, December 9, 2014 PRODUCE MARKETING ASSOCIATION

Millennial Taste for Fresh Foods Note ¡the ¡rank ¡and ¡ self-­‑reported ¡ increases ¡for ¡fresh ¡ fruits/vegetables, ¡ organic ¡food ¡and ¡ natural ¡products ¡in ¡ the ¡next ¡twelve ¡ months. ¡ ¡ Source: The Atlantic – “How Millennials Spend” - September 8, 2014 PRODUCE MARKETING ASSOCIATION

Natural/Organic Food Products: Millennials versus Boomers Source: www.eMarketer.com & original sources PRODUCE MARKETING ASSOCIATION