Southfield, MI - Each year Joe Sarafa, president of Associated Food Dealers of Michigan (AFD), predicts the changes you can expect in your neighborhood supermarket. Here are his predictions for 1998:
Boomers age and grocery stores accommodate -- With the 76 million baby boomers beginning to turn 50, there are many changes in store. Look for the biggest in the health and beauty section. Products designed to help us look and feel younger will gain shelf space. Hair replacement creams, hair removal products, post cosmetic surgery products, vitamin and mineral supplements and natural herbs that promise to rejuvenate will all be hot.
Retailers continue to categorize -- Consumers want variety, service and value. Based on the success of stores like Home Depot and Office Max, you'll see more category-specific operations. Some will prosper, many will die in this highly competitive market.
Co-branding will be big -- Look for manufacturers to team up when introducing new products. Figuring the success rate will increase with name recognition, large manufacturers will double their odds by launching products with two famous names on the label.
Organic food sections grow -- In 1997 legislation was introduced that will help determine what foods can be officially called "organic." In 1998 look for produce sections to designate areas specifically for pesticide free, organic foods.
Advertising on apples -- Apples with coupons for lunch meat and ads on bananas for peanut butter will be coming to your neighborhood store soon. This cross-selling is looked at by the produce manufacturers as an additional revenue source and by the potential partners as a good way to align their products with healthy, popular fruits and vegetables.
Gourmet-to-go -- Currently, 47 percent of U.S. culinary school graduates are being grabbed up by supermarkets, which are turning toward providing prepared meals. After all, the restaurant industry took away many supermarket customers during the 1980s. Now food retailers are wooing them back with home meal replacement options and grab-and-go carry-out sections.
Kids with a conscience -- As children continue to learn more about the environment in school, efforts to recycle will increase. You will see more stores devoting space to paper and plastic bag recycling. Partnerships between stores and schools will also increase recycling efforts.
Founded in 1916, the Associated Food Dealers of Michigan is the voice of Michigan's food and beverage industry, representing more than 2,700 retailers, wholesalers, distributors and manufacturers throughout the state. The AFD's executive offices are in Southfield, with branch offices in Lansing, Clare and Clarkston.
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