Trading Partners

The New York Times spent some time interviewing college students, construction workers, c-store owners and others near the University of Maryland recently to study what it calls the “hottest drink category in the country” right now, energy shots.

The Grocery Manufacturers Association (GMA) yesterday pledged its support of the Affordable Food and Fuel for America Act co-sponsored by Joseph Crowley (D-N.Y.) and Mary Bono-Mack (R-Calif.) of the U.S. House of Representatives.

As consumers continue to tighten their wallets, product manufacturers are feeling the pinch. Add higher costs for health care, energy and raw materials to the equation, and many manufacturers are forced to cut costs to maintain sales and profitability. But if there is one overarching message for manufacturers, it’s this: do not pull back on innovation or marketing support. Nielsen research reveals that brands that continued to invest in these areas during a downturn performed significantly better than their peers once recovery takes hold.

A visit to the recent 55th Summer Fancy Food Show at the Jacob Javits Center in New York late last month left me in no doubt that there are more types of center store products than ever to tickle consumers’ fancies making it all the more important that smart retailers edit their assortments and product mixes judiciously, to avoid sensory (not to mention wallet) overload.

As the “great recession” continues and consumers hear conflicting messaging about when the U.S. economy will improve, shoppers from all income levels are increasingly seeking out and taking advantage of deals at the grocery store.

Grocery retailers haven’t been spared the devastating effects of the economic downturn. The March 2009 voluntary Chapter 11 filing by Bi-Lo, a 215-store grocery chain based in Mauldin, S.C., illustrates the extraordinary lengths to which grocery retailers must go to refinance debt and secure their operational positions.

This week FreshDirect is rolling out its Daily Seafood Rating System, which the Long Island City, N.Y.-based online grocer said will “[take] the guesswork out of choosing high-quality seafood and [eliminate] the need to speak with a fishmonger to find out what’s best that day.” The new program employs a star system similar to that used in its Daily Produce Rating System.

Their products have already joined the mainstream, but natural/organic baby food manufacturers keep upping the ante for consumers by introducing exciting new items to the segment.