Weekly Roundup – Week of 2.20.2023

February 24, 2023

Robots, private label brands, and coffee innovation have taken over this week’s roundup which highlights the latest food and beverage-related news curated by our team of strategists and food enthusiasts:

Robots Take Over Restaurants

Rising food, labor, and operational costs along with labor shortages have pushed restaurants to continue seeking ways automated technology can help streamline operations and fill human voids. Robots are currently being used for more menial jobs such as chopping ingredients, making drinks, and helping with repetitive tasks at fry stations and making sushi; however, restaurants are considering robots in other capacities. Both Richtech Robotics and Bear Robotics have developed robot runners to deliver food from kitchen to table by using technology that programs the robots to the restaurant’s floor plan. This takes the burden off staff and allows servers to have higher-touch customer service. Learn More.

Private Label Brands Set Records In Sales & Unit Shares

According to the 2023 Private Label Report presented by the Private Label Manufacturers Association (PLMA) and IRI Unify, store brand sales climbed steadily throughout 2022 with an overall increase of 11.3%, setting an annual record of $228.6bn. The report indicates that sales jumped by double-digit rates in nine departments with beverages, deli prepared, refrigerated, and liquor categories leading department sales. American shoppers made more thoughtful choices and shifted to private label brands for a few reasons: increased focus on innovation, quality improvements, and of course, lower prices. PLMA President Davies reflects, “We have every reason to believe that this favorable dynamic will continue well into 2023.” See Full Report.

Manufacturers and Retailers Battle Against Raising Prices

Reuters published an article this week that supports the above rationale on why private-label brands will continue to gain ground in 2023. Many national brand manufacturers are considering additional price hikes this year but are now weighing consumer demand against the threshold of costs consumers are willing to absorb – especially in categories where shoppers are already purchasing more store brands. Retailers are also pushing back against price hikes, asking manufacturers to reduce sales prices to the retailer so they can, in turn, drop their shelf prices. Most manufacturers are unwilling to take price cuts as many “big brands” feel consumer loyalty will outweigh price increases. Read Article.

Grocery Loyalty Programs Score Big With Consumers

Newsweek and Statista partnered to find America’s best loyalty programs across eleven different industries, and supermarkets held the highest number of top-rated rewards programs. Shoppers have increasingly found value in participating in loyalty programs and have used store rewards to help reduce grocery bills on food and household items. According to Progressive Grocer Editor-in-Chief Gina Acosta, “Food retailers that deliver authentic, meaningful value to shoppers by prioritizing personalization, customized deals, and timely offers will win loyalty in this — or any — competitive environment.” Find The Full Report Here.

Coffee Corner

Coffee consumption is experiencing a two-decade high according to data released by the National Coffee Association with Americans consuming nearly half a billion cups each day. Innovation is a key focus in fueling the category and two big brands are leading the way. Blue Bottle Coffee, the Nestlé-owned brand, is launching a single-origin, small-batch coffee in minimal quantities to satisfy the demand for ultra-specialty coffee. This rare coffee is sourced from a region in Yemen known for its 7,500-foot elevations and dry climate. Starbucks is also staking a claim in innovation by announcing the debut of Starbucks Oleato – a new platform that infuses Starbucks arabica coffee with Partanna cold-pressed extra virgin olive oil. The company maintains that Oleato delivers a velvety smooth, delicately sweet, and lush coffee. Three Oleato beverages will start to be available in select U.S. stores beginning this spring.

 

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