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Holiday socializing 2.0: Eat, drink and be wary

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With the constant uncertainty and change that is prominent in a COVID-19 environment, it is vital that we look towards the face of this new reality and consider how we might adapt upcoming fall and winter celebrations.

Undoubtedly, foods and beverages will remain at the centre of these celebrations, particularly during the upcoming treat-focused Halloween 2020 season and into the myriad of winter social occasions. But, how might COVID-19 crisis-inspired habits impact treat choices?

It’s challenging at the moment to forecast too far ahead.

However, barring any dramatic progress, it is likely that far fewer kids will be heading out on the evening of October 31st to gather goodies throughout their neighbourhoods, particularly as public health officials continue to promote necessary social distancing and warn of probable infection resurgences.  

These notifications and warnings have led to a third (34%) of Canadian parents reporting (as seen in the Ipsos Path Forward Study) cautiousness towards permitting their children to participate in group activities of any kind, even after the pandemic restrictions ease.  

Screen Shot 2020-10-19 at 1.42.08 PMNotably, even before our lockdown confinement in mid-March, Ipsos FIVE data had revealed that trick-or-treating activities and consumption rates of seasonal favourites at Halloween were already on the decline in 2019—almost a 10% drop in eating rates from Halloween 2016. 

Given this trend, which has likely accelerated during COVID-19, perhaps there is opportunity to re-invent or modernize Halloween and other holiday rituals.

Online celebrations

More than half of Canadian parents (54%) report that they intend to continue to meet with friends and family virtually even when COVID-19 related closures and restrictions end—Zoom socializing has been met with tremendous positivity.

These virtual sharing events open up opportunities to prepare, decorate and engage with other family and friends within safe distancing protocols, while still enjoying activities, games, crafts and, of course, food.  For instance, in order to elevate the fun factor, individual treat baskets could be assembled and shared for kid (and adult) participants.

Stock up on baking supplies

Although increased baking rates that were front and centre during the early-lockdown days receded somewhat by summer, still more than a third of Canadians (37%) now report that they will continue to bake more often than they did during the pre-pandemic period, motivated by the following benefits:

  1. More time to bake
  2. Baking gives me a sense of accomplishment
  3. I like the taste of home-baked goods
  4. Baking makes me feel comforted
  5. I like the smell of home-baked goods
  6. Fun activity for my children

Given the discovery (or the re-discovery) of the joys of baking, there is a significant opportunity to capitalize on this renewed behaviour by creating Halloween-inspired baking fun through the establishment of programs and promotions that include great-tasting recipes, activities and fun kid-driven preparation and decorating ideas. These same strategies, with the right seasonal twist, can be applied also to the winter holiday season, including Diwali, Christmas and into Valentine’s Day.

Small gatherings to centre on favourite foods

Screen Shot 2020-10-19 at 1.41.49 PMEvening celebrations offer an opportunity to decorate the inside of the house and, in the case of Halloween, for instance, host a ‘dinner in the dark’ celebration with one bubble or circle of family and friends.

Parents can have kids participate in the dinner preparation and ensure that it includes their favourite dishes. C-stores can help by stocking the right products for busy families.

 

Undoubtedly, given the gravity of the current COVID-19 environment, it is inevitable that Canadians will be forced to re-think the many components, habits and traditions of our holiday rituals. Of course, we might also want to reflect on what parts of the old ways of celebrating did not necessarily work well, and use this as an opportunity to innovate and change.

Our current forced societal limitations have not squashed our unending spirit and collective creativity, just the reverse.  It is the challenges that we face that spark necessary change and often force us to think outside the box.  It is precisely that mindset that both inspires us and keeps us moving forward. 

Screen Shot 2020-01-16 at 3.49.27 PMKathy Perrotta is a vice-president with Ipsos Market Strategy and Understanding, working with the Food & Beverage Group Syndicated Services.  Data sources within this group include, Ipsos FIVE and Foodservice Monitor (FSM). Ipsos FIVE is an ongoing daily tracking of consumption behaviour, attitudes, situational dynamics, health statuses, preparation and shopping habits that influence item choice for more than 20,000 individuals annually across all dayparts, categories/brands and venues. Ipsos FSM is a daily tracking of purchases, habits and motivations at all foodservice segments and at branded operators among more than 36,000 individuals annually. 


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Mondelēz unveils racial equity initiative

Mondelēz International. Inc is amping up its efforts centered on diversity and inclusion (D&I) through a new multiyear commitment.

As part of the new dedication, the candy and snack manufacturer will elevate its existing D&I initiatives to make meaningful impacts in the area of racial equity economic empowerment around the world. The plan is designed to accelerate the company’s existing D&I efforts following extensive consultations between company leaders, colleagues and experts through listening forums and educational sessions focused on diversity, inclusion and belonging.

“Mondelēz International is committed to building a more diverse, inclusive and equitable world, both socially and economically,” said Dirk Van de Put, chairman and CEO of Mondelēz International. “As a global company, we know that diversity in all its forms is a driver of innovation and growth and we must reflect the diversity of our consumers to deliver stronger business performance as we lead the future of snacking.”

Over the next three years, the company will address local and global opportunities to advance racial equity and economic empowerment by expanding its D&I initiative across three key areas:

Colleagues

For instance, to ensure the diversity of its colleagues at all levels represent the communities, customers and consumers Mondelēz serves, the company has committed to double Black representation in U.S. management by 2024.

To enable this goal, it has implemented a series of actions across its business, including increasing the presence of underrepresented candidates on interview slates, doubling investment in early career programs, including with historically Black colleges and universities, and establishing new mentoring and leadership development programs for people of color.

In addition, Mondelēz will increase the strategic impact of D&I within the organization by appointing a Global D&I Officer.

Culture

Mondelēz will invest in building cultural competences for all employees and will include D&I performance metrics in business units and functional goals as part of the company’s effort to strengthen its culture and continue to cultivate an inclusive, bias-free and equitable workplace that enables all colleagues to be themselves and achieve their full potential, the company stated.

It also plans to mobilize its consumer-facing brands and leverage its partnerships with agencies and advertising platforms to drive change, equity and inclusion. To foster reflection and service in its U.S. Business Unit, for instance, the company will honour Martin Luther King Jr. Day as a paid U.S. Holiday and recognize Juneteenth with a U.S. day of service.

Communities

Across every business unit, the company will foster partnerships to support underrepresented communities. Efforts include:

  • Committing $1 billion to minority and women-owned businesses globally by 2024 to drive economic inclusion for underrepresented communities;
  • A new multi-year signature partnership with Boys & Girls Clubs of America to help close the opportunity gap for youth; and
  • Establishing a signature multi-year college scholarship program for underrepresented youth in the United States.

“In a world that can seem more divided than ever, our business and our brands have the power to bring people together and take a stand on this important issue,” said Glen Walter, executive vice president, and president, North America. “We are confident that we can make a true and meaningful impact over the short and long term, and we will continue to evolve and refine our plans to ensure we are driving, positive, lasting and much-needed change on the issues of racial equity and inclusion.”

Mondelēz will report its annual progress against its D&I goals in its Snacking Made Right Report, alongside other purpose-focused activities and KPIs.

Based in Chicago, Mondelēz International empowers consumers to snack right in more than 150 countries globally. Its net revenue was approximately $26 billion in 2019.

Originally published by Convenience Store News. 


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Insights and lessons from pandemic snacking trends

Increased home time, family time, leisure screen time, stress and near 24/7 access to our pantries, have all translated into a rise in snacking, as Canadian consumers reach for treats and comfort foods

Screen Shot 2020-08-10 at 4.30.51 PMOther than checking my bathroom scale, there are broader metrics to demonstrate that consumers like me increased snacking during the lockdown.

In order to quantify these kinds of shifts in consumer spending in the United States as a result of the COVID-19 pandemic, market tracking company IRI recently launched its CPG Demand Index to measure weekly changes in consumer purchases, by dollar sales and channel.

IRI tracked an increase in total core snacking of +40% year-over-year (YOY) for the week ending March 15, and +34% for the following week. For the week ending April 5, snacking sales modulated, but still grew +7 YOY.

Results from a broad survey of consumers in the United Kingdom, conducted by supermarket chain Waitrose, revealed that nearly 40% of consumers reported an increase in snacking during lockdown. 

In turn, the Frito-Lay Snack Index, released at the end of May, found 85% of respondents said eating their favourite snack makes them feel normal, while 83% said their favourite summer snacks remind them of good times and nearly half (48%) said eating their favourite snack makes them feel happy. 

Bottom line is that increased home time, family time, leisure screen time, stress and near 24/7 access to our pantries, have all translated into a rise in snacking, as Canadian consumers reach for treats and comfort foods. 

 

Stocking up

In the third week of February 2020, the Dow Jones average was nosing 30,000 for the first time: This was the end of the longest bull market in recorded history. However, by the third week of March, the Index had lost more than one-third of its value, essentially wiping out the cumulative gains of 2017, 2018, 2019, and Q1 2020. As of this writing, markets have recovered somewhat to levels of early January 2018.

There have been some exceptions to this general trend. Shopify is a Canadian multinational e-commerce company, offering a proprietary software platform that facilitates retailers selling their products online and in stores. Shopify’s stock value has flourished during COVID-19, as most retailers scrambled to up their online presence. Between January to mid-March 2020, Shopify stock was up about 5%. Between March and May, Shopify’s stock value doubled, surpassing RBC as Canada’s most valued stock. 

Despite a precipitous drop in foodservice channel sales during the global lockdown, a number of large food companies have seen success. Mondelez, PepsiCo and Kellogg’s are all examples of bucking the trend and boats rising in a down market.

Mondelez reported organic sales growth of more than +6% for the first quarter of 2020, beating Wall Street estimates. Mondelez CEO Dirk Van de Put attributed the performance to the rapid growth in snacking due to shelter-at-home behaviours.

PepsiCo reported nearly +8% net revenue growth in Q1 2020, as consumers stocked up on beverages, salty snacks and other food items for at-home consumption. Key observations during COVID-19, include:

o   Shift to at-home consumption – growth in snacking during the day

o   Increased usage of large-format pack sizes

o   Shift away from immediate consumption

o   Increased purchase “basket size”—fewer shopping trips with a higher value

o   Increased use of e-commerce sourcing

The company is leaning into the changes in consumer behaviour and has developed a game plan, with an emphasis on snacking. While PepsiCo expects gradual improvement in sales at convenience and gas channels as people return to work, the company is also embracing an e-commerce strategy, launching two U.S.-based direct-to-consumer sites to capitalize on the growing appetite for snacks. Snack.com offers more than 100 Frito-Lay snack products, while PantryShop.com features multi-product bundles of Quaker and other brands to meet specific day-part and lifestyle needs

At Kellogg’s, North America financial reporting for the first quarter of 2020 showed organic sales rose 6%, with volumes up 5%. This largest driver for this growth was the company’s snacks segment, according to Amit Banati, senior vice president and chief financial officer.

Kellogg’s cracker sales jumped almost 40% versus a year earlier, while salty snacks and wholesome snacks rose nearly 30%.

“This consumption growth has been broad-based across our portfolio of brands,” Banati said. “From an occasion standpoint, we have seen less lift for on-the-go items and more growth for pantry packs”.

Opportunity to take share

Traditional convenience and gas non-fuel sales have been oriented towards impulse consumption—providing products that are consumed within an hour of purchase. Legislated changes to consumer behaviour have impacted the convenience channel significantly. 

The convenience business model is built on and grounded in consumer mobility, social activity and time scarcity. In a pandemic, virtually overnight, this evolved into immobility, isolation, CPG scarcity and boredom. Rather than getting from point A to B as fast as possible, fuelled by an on-the-run meal or snack, consumers’ priorities shifted to limiting retail trips, avoiding crowds, and eschewing public transit.

The great news for the convenience channel is that proximity plus offering consumers a streamlined retail experience have never been more important. As working from home and home schooling/daycare become entrenched as a kind of new normal for consumers, there is an expanded role for the convenience channel to play as a provider of pantry staples, meal kits, fresh produce, non-food cleaning/hygiene products and even office supplies.  

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Use your smarts

Symphony RetailAI, along with partner ROC Associates, use technology to optimize performance for gas/convenience, foodservice and grocery, drawing insights from their pool of retailers: Their findings are representative of thousands of stores and millions of households globally. 

Trusha Pandya, account director at Symphony RetailAI noted a number of trends emerging across the convenience channel as the effects of the COVID-19 pandemic unfolded.

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Data showed that, overall, c-store sales tracked improving week-over-week performance. At the outset of the lockdown, Symphony “recommended that convenience store retailers stock up on frozen and canned fruits and vegetables.” As the market gradually transitions into a new phase of the pandemic, Symphony is advising convenience retailers to renew their “focus on better-for-you and fresh options, (which should) also translate to snack categories.”

 Be a camel

In an article in The Globe and Mail, venture capitalist Alexandre Lazarow called for Silicon Valley to create a new model for a post-pandemic world. 

He notes that the tech world has spent the past 20 years trying to find the next “unicorn” startup. Unicorns are companies having seemingly unlimited potential, capable of growing from zero to more than $1-billion valuation in short order. 

Our current harsher, less stable market environment calls for a different approach. Instead of unicorns, the future will be “camel” startups that prioritize sustainability and resiliency.

Lazarow writes that the camel, “adapts to multiple climates, survives without food or water for months, and has humps to protect itself from the desert’s deprivations. Unlike unicorns, camels are not imaginary creatures… camels are survivors.” 

There will be bumps and impediments in the road ahead. As always, the ability to adapt to changing circumstances, and sustain your business through emerging challenges, will enable you to survive and flourish. Put simply, just like all of us in the face of COVID-19, be prepared to do what you need to do to live to fight another day.

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Darren Climans is a foodservice insights professional with close to 20 years’ experience partnering with broadline distributors, CPG suppliers, and foodservice operators. His practice is to understand issue-based decisions by taking a data-driven approach to strategic decision making.

 


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Celebrate good times, come on!

Changing consumer behaviour is affording c-stores a unique opportunity to help customers mark special moments, from family moving nights to Halloween, but it starts with the right product mix

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COVID-19 restrictions may have put a kibosh on Easter gatherings this year, but Canadians still sought out chocolate and candy. Fortunately for the sector, more shoppers than usual found their treats at c-stores.   

Easter confectionery in the convenience and gas channel reached $3.8 million nationally and grew 13% over 2019, according to Nielsen MarketTrack for the season ending April 25th, 2020. 

It has given c-stores reason to be bullish about their role in helping customers celebrate other calendar milestones amidst a new normal of social distancing and shifting shopping behaviours. 

The Civic Holiday, Labour Day, Back to School, Thanksgiving and Halloween are all upcoming opportunities for the convenience industry. 

Maintaining traditions

“Quality time with family is important and Canadians are still looking to maintain their traditions even if they can’t celebrate like they once did,” says Julie Sirois, VP of sales at Mondelez Canada, adding “these moments during the year are providing a sense of normalcy for our turbulent times.”

After 17 years with PepsiCo Foods Canada where she led sales for its Frito-Lay portfolio, Sirois joined Mondelez in late March—at the peak of the pandemic. She believes it has set up the c-store to become a favoured destination of seasonal and holiday goodies.

To help consumers capture the essence of summer, Mondelez has introduced limited-time varieties of its Cadbury Dairy Milk chocolate bars—Fireworks, S’mores and Rocky Road—as well as summer-themed flavours of its Maynards gummies, called Tropical Swedish Berries, and Sour Patch Kids gummies, Sour Patch Kids Crush. 

Size matters

It has also partnered with key c-stores on larger take-home sizes of its candy and gum brands. “Historically, single-serve confectionary has been a big part of the convenience business, and it still is. However, we are seeing larger packs growing faster than anything else in this channel,” notes Sirois. 

At the start of the COVID outbreak, that was attributed to pantry loading. Now she says consumers are wanting “to avoid long grocery store line-ups” and are picking up staples like bread and dairy at their local c-store. While there, they are adding treats to their shopping baskets that can be enjoyed multiple times or shared at home. 

This includes for special occasions, but also moments with loved ones like during a BBQ on the patio or a movie night with the kids. 

To that end, promotional bundles like a bag of milk with a pack of Oreo cookies could work really well, says Sirois, especially given people are watching every dime they spend. 

Halloween highlights

Or, once October hits and the weather turns cooler, a hot beverage with a king-sized chocolate bar, since “after trick-or-treating, the next big driver of Halloween treat consumption is to give yourself a treat,” says Sirois.  

As for trick-or-treating, “we don’t know what it will look like, but people are still going to want to celebrate Halloween with their kids. They will just do it differently,” she says.  “We are working with retailers to ensure we bring products that customers desire.” 

Retail analyst Ed Strapagiel agrees candy packs could do very well for c-stores this October. 

“The main supermarkets have gone into bulk-sized boxes of Halloween treats, but right now nobody knows what the turnout is going to be for trick-or-treating, except that there will be less kids going out. The question is, how much less?” says Strapagiel. “Parents are going to be concerned about how the candy was stored, cared for and handled, and so households may only need to give out a small amount.”  

It is easy to imagine a scenario where trick-or-treaters go door-to-door only to the homes of friends and family, for instance, rather than the entire neighbourhood.

C-stores might also want to invest in felt masks with Halloween designs, adds Strapagiel. 

Seasonal displays

Screen Shot 2020-07-15 at 1.48.28 PMRussell Large, senior business development manager in Ontario for the Continental Store Fixture Group (and former VP of retail services for Hugh Large & Associates Inc.), advises clients to feature a seasonal wall or display for kids, especially if their store is located on the way to cottage country. 

In the summer, that might mean displaying quality water toys and colouring books, and during back-to-school time lunch snacks and supplies, such as pens, pencils and markers. In the lead-up to Halloween, the assortment could change again, to not just masks but also make-up, pumpkin carving kits, costumes and candies. 

“Consumers are looking for c-stores to replace their trip to Toys ‘R’ Us Canada and other big stores, but the onus is on convenience owners to carry quality product,” says Large. “People are willing to pay a higher price for quality, especially if they don’t have to drive around and expose themselves.”

The allure of fireworks

Screen Shot 2020-07-15 at 1.48.19 PMAnother way c-stores can deliver a bang in seasonal/holiday sales? Fireworks! 

With the cancellation of fairs, festivals and other public gatherings, expect more households to put firework displays on in their own backyards. 

After Victoria Day and Canada Day, Blast-Off Fireworks, the largest fireworks importer and distributor in Western Canada, cites the Civic long weekend and Labour Day as big purchasing occasions for fireworks. Halloween is also popular, especially in British Columbia, and Diwali, the Hindu festival of lights that starts Nov. 14, is becoming a popular time for fireworks. 

Blast-Off has focused on new products in two categories—finale cakes, which produce a display with a single ignition, and family packs, which provide high-quality fireworks, ignition tools and firing instructions in one box.

“Fireworks can do very well for c-store owners, delivering profit margins of 50% or more,” says Matt Bialek, president of Blast-Off, which works with retailers to navigate city by-laws. In Calgary, for example, consumer fireworks are banned, while most other cities across Canada lift fire bans during key times.

“With those margins, in a year like this, it can help c-store owners make up lost dollars from other categories,” adds Bialek. “Remember, people still want to celebrate moments even if they are stuck at home.” 

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This article originally appeared in the July/August issue of Convenience Store News Canada. 


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Canadians’ quarantine cuisine unveils new habits and opportunities 

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The COVID-19 health pandemic, and associated lockdown, has had a profound impact on consumer behaviour.  Locked away in our homes, unable to visit restaurants to grab a coffee or socialize over dinner, we adopted new habits in response to our new circumstances.

Quarantine consumption priorities

Key themes driving Canadians’ homebound choices include a return to the kitchen, with consumers eating together more often while socializing at the table or watching evening Netflix.  With many having more time, this renewed focus on social engagement together has also prompted a host of new behaviours, including more home cooking and baking. The requirement for options that meet sharing, nurturing and mood bolstering needs is also on the rise.

As consumers continue to balance their needs for emotional well-being with physical and metabolic requirements, they are increasingly prioritizing health and wellness.  Calories and fat concerns, which were on the decline in the pre-COVID environment, re-emerge as top priorities, as does sugar. Increasing concerns over intake management re-focus efforts on weight control (perhaps to thwart the much talked about ‘quarantine-15’ weight gain). 

Finally, uncertain economic headwinds will no doubt continue to factor heavily into future consumption choices. While we may continue to stockpile for a variety of reasons, at-home eating will undoubtedly be the benefactor of a financial downturn, even when dining out returns.

Return to traditional eating regime

We skipped fewer meals in April than at any other time during the past five years.  This renewed focus on a traditional meal regime that includes three squares a day, plus snacks, has had a beneficial impact for many food and beverage manufacturers.

Breakfast traditions surface

Shifting choices at breakfast include rising consumption of toast, cereal and fruit, while orange juice and hot tea are also being consumed more often during our first meal of the day.  Consumers, no longer fraught with daily commutes and the pressures of getting kids off to school, are eating breakfast. Early morning eating between 7:00 and 9:00 a.m. (-5% vs. Feb 2020) has given way to eating later on both weekdays and weekends.

Coffee consumption declines when compared to February’s pre-confinement drinking rates (-1.3%). A drop in pod consumption contributes to overall coffee softness, perhaps due to at-home occasions that may be better served by brewing a pot. 

Light lunches together

Lunch has regained the dubious honour of being the most skipped meal of the day. However, consumers are increasingly eating together and sharing options more often while at home. Choices are more likely to be a light gap fill than a gut fill, led by cheese, fruit, vegetable dishes, fresh cut vegetables and dips. Eat rates of both soup and salad increase when it comes to eating lunch at home.

Rise of dinner on the grill

Dinner remains the meal most often consumed with others. However, while we eat together more often, we are increasingly consuming our own options (+4% vs. March 2020), as opposed to sharing.  Scratch cooking has increased at dinner when compared to February 2020 habits (+1.7%) and meal kit usage has also increased (+2.7%).

While the stovetop remains the top appliance used at dinner, the barbeque is the fastest rising appliance, with an increase of 3.7% vs. April 2019.  Given our chilly weather across the country in April, we should expect a monstrous grilling season in 2020 to meet summer flavour, convenience and experience needs.

While the ‘lessetarian’ trend (those committed to eating less meat on a weekly basis), continues at pre-COVID rates, meat choices increased in April, led by rising consumption of chicken, beef and pork.

Canadians pave a pathway to the pantry at snack

Overall snacking has increased on a monthly basis, led by strong growth at both afternoon and evening occasions.  

Food choices at snack are a mix of healthy and indulgent options.  Health needs continue to dominate early day preferences, while more indulgent or treat-oriented options drive our evening choices.  Afternoon snack, the largest snacking daypart, remains the battleground daypart, where neither health nor indulgence trumps options consumed. Fresh fruit, cheese, chocolate, potato chips and cookies top our daily snack food choices. 

The fastest rising needs driving home snacking choices include options that relieve boredom and stress, while supporting the need to graze and treat oneself.  Nostalgia is also a rising driver, which has contributed to the rekindling of relationships with storied brands that provide cheer and happiness.

The increased beverage choice at snack more often includes carbonated soft drinks, hot tea, sparkling water and a host of alcoholic beverages, led by beer and wine.

As consumers prioritize eating and drinking as rituals that define our homebound routines, needs and habits will likely continue to evolve, particularly as we normalize our behaviours with the recognition that we may be at home for some time to come.

With change continuing to abound around us, it will be critical to continue to evaluate consumption habits to determine which shifts will actually stick in our new normal environment. 

Originally published in the July/August issue of Convenience Store News Canada.


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PepsiCo snacks, breakfast foods get a boost during COVID-19 quarantine

Unknown-1PepsiCo, which makes Frito Lay chips and Quaker cereals, is getting a boost as more consumers eat breakfast and snack at home.

The company said its organic sales – which don’t include acquisitions – grew 7.9% in the first quarter. Shoppers bought more than usual during fewer grocery trips. They also bought more online; PepsiCo said e-commerce sales jumped 45% in the quarter.

Pepsi said its SodaStream business – which lets users make carbonated drinks at home – also saw revenue jump 20% in the January-March period.

“In most developed markets, we’ve moved beyond the preparation and prevention phase and appear to be in the later stages of confinement, in which shelter in place and social distancing have become a new way of life,” Pepsi Chairman and CEO Ramon Laguarta said in a prepared statement.

But the company is losing highly profitable sales at gas stations, movie theatres, stadiums and other venues as fewer people leave their homes. Pepsi’s North American beverage profits fell 24% in the first quarter.

Chief Financial Officer Hugh Johnston said Pepsi expects organic revenue to fall in the second quarter because of continuing restrictions. Consumers in developing markets may also have less discretionary income to spend on snacks and beverages, the company said.

Rival Coca-Cola Co. said last week that its sales volumes are down 25% in April.

Johnston said Pepsi is withdrawing its financial outlook for this year.

For the first quarter, Pepsi reported a profit of $1.34 billion, down 5% from the same period a year ago. Earnings, adjusted for non-recurring costs and restructuring costs, came to $1.07 per share.

The results surpassed Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $1.02 per share.

The food and beverage company posted revenue of $13.88 billion in the period, also surpassing analysts’ forecasts.


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Mondelez report dives into the ‘State of Snacking’ 

Global snacking is on the rise as more consumers opt for snacks over meals to fulfill evolving needs, and that is helping lead the future of food.

Screen Shot 2019-11-20 at 11.14.40 AMAccording to Mondelēz International’s first-ever State of Snacking report, six in 10 adults worldwide (59%) said they prefer to eat many small meals throughout the day, as opposed to a few larger ones, with younger consumers especially leaning into snacks over meals as that number rises to seven in 10 among millennials (70%).

State of Snacking is a global consumer trends study examining the role snacking plays across the world in meeting consumers’ evolving needs: busy modern lifestyles, the growing desire for community connection and a more holistic sense of wellbeing. It reveals the rise of global snacking, underscored by regional parallels demonstrating how snacks are helping lead the future of food by delivering on the spectrum of needs that exists in our day-to-day lives.

The report, developed in partnership with consumer polling specialist, The Harris Poll, complements Mondelēz’s global snacking knowledge estate with new research conducted among thousands of consumers across 12 countries, according to the company.

Key findings from the report include:

THE RELATIONSHIP WITH FOOD IS FUNDAMENTALLY CHANGING.

  • People are more commonly considering how smaller bites/snacks effect their emotional wellbeing, as well as their physical health.
  • For more than eight in 10 people, convenience (87%) and quality (85%) are among the top factors impacting snack choice.
  • 80% of consumers are looking for healthy, balanced bites, while 71 of adults say snacking helps them control their hunger and manage their calories throughout the day.

MOMENTS OF INDULGENCE CONTINUE TO HAVE A ROLE IN DAILY ROUTINES.

  • 80% of adults acknowledge the need for balance by appreciating the option of both healthy and indulgent snacks depending on the moment of need.
  • 77% of consumers agree there is a time and a place for a healthy snack, and a time and a place for an indulgent one.
  • The majority of people say snacks are just as important to their mental (71%) and emotional (70%) wellbeing as their physical wellbeing.

SNACKING IS ABOUT SO MUCH MORE THAN WHAT WE EAT.

  • 71% said snacking is a way to remind themselves of home.
  • Seven in 10 adults make an effort to share their favorite childhood snacks with others (70%).
  • Around the world, more than eight in 10 parents use snack time as a small way to connect with their children (82%).
  • 76% of parents use snacks to pass cultural snacking rituals on to their children.
  • More than three out of four parents (78%) say the snacks they choose for their children reflect who they are as a parent.

“As the snacking market continues to grow globally, we’re living our purpose to empower people to snack right by constantly learning about the many different ways consumers around the world are snacking and evolving their relationship with food,” said Dirk Van de Put, chairman and CEO of Mondelēz International. “We see that the average global adult now eats more snacks than meals on a given day, driven by a number of evolving demands largely associated with how we live today, including a growing need for convenience, yearning to share nostalgic and cultural experiences, expanded wellbeing preferences and the desire for choices that range from wholesome to indulgent.”

Screen Shot 2019-11-20 at 11.14.21 AMMondelēz launches the State of Snacking report a year after it announced a new business strategy and purpose. Over the last year, the company made strong progress on its mission to offer consumers the right snack, for the right moment, made the right way. This includes developing an ever-deeper knowledge estate of the demands that motivate people to reach for snacks while continuing to meet people’s more holistic understanding of wellbeing by focusing on sustainably sourced essential ingredients, evolving its product portfolio to a broader range of options and inspiring mindful snacking habits.

“We embrace the fact that snacking habits around the world are as diverse as the consumers who enjoy them,” continued Van de Put. “However people snack, they should not have to choose between snacking and eating right, or to worry about the impact their choices have on the world and their communities. That’s why we’re committed to empowering people to snack right.”

The State of Snacking report is available here.

Originally published at Convenience Store News.