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Specialty Retailers

Neilsen Report Explores Strategies for Appealing to Multicultural Shoppers

With the rapid growth of multicultural households in America and their unparalleled influence on the marketplace, there is a strong need for retailers to revise their in-store strategies to include a wider range of fresh food products and flavor profiles that cater to the multicultural consumer set.  With this in mind, Nielsen has released a comprehensive report to help retailers understand the influence multicultural consumers wield across the meat, produce, seafood, deli, and bakery categories.  The report entitled, “A Fresh Look at Multicultural Consumers,” reveals strategic insights for retailers looking to leverage new growth opportunities across the perimeter, over the next several decades.

Multicultural consumers are the fastest growing segment of the U.S. population and the growth engine for fresh food categories within the grocery space.  According to the latest Nielsen report, multicultural households spend a higher share on fresh food as a percentage of their total food spend compared to non-Hispanic white households. In fact, multicultural consumer shoppers make 3 percent more trips to the store containing fresh items and spend 4 percent more per year on fresh items, resulting in a $2.2 billion opportunity for retailers.  For many multicultural families, fresh is a dietary staple.  The multicultural preference for fresh comes from cooking and eating norms that centrally reflect the unique cultures of African Americans, Asian Americans, and Hispanics.  That said, the allure of multicultural flavors and desire for fresh are influencing a wider range of shoppers, and becoming a key driving force for fresh growth.

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“In order to tap this critical market, retailers need to rethink their delivery and assortment strategies of fresh products being offered to today’s increasingly multicultural shoppers,” said Courtney Jones, Vice President of Multicultural Growth & Strategy at Nielsen.   “To be successful, retailers must understand the importance that culturally relevant, fresh offerings play in the multicultural shopper landscape.  Retailers must also embrace the many layers of multicultural consumers and the undeniable ‘halo effect’ that those consumers are having on mainstream non-Hispanic white shoppers. The multicultural consumer covers a broad spectrum, from multi-generational families to Millennials, to Asian American, African American, and Hispanic subgroups that have been influenced by distinct global culinary traditions. Retailers must consider the multi-ethnic tastes of their current and desired customers and recognize that the palates that favor multicultural flavors are influencing the taste preferences of non-Hispanic whites and society at large.”

KEY REPORT FINDINGS

  • INSIGHTS FROM THE DELI DEPARTMENT:
    • Multicultural flavors are “mainstream” in the deli and continue to grow.
    • Non-Hispanic white shoppers are inspired by the ethnic flavors found within the deli.
    • Multicultural consumers are taking advantage of the quick and easy meal solutions and meals for large families within the deli department.
  • INSIGHTS FROM THE PRODUCE DEPARTMENT:
    • Multicultural produce excites all kinds of shoppers.
    • Social media influencers and popular restaurant flavor trends are infiltrating the produce aisle. For example, the growth of habañero, with items popping like habañero grilled vegetable and even habañero margaritas.
  • INSIGHTS FROM THE MEAT + SEAFOOD DEPARTMENT:
    • Multicultural consumers spend more in meat and seafood departments than any other fresh department.
    • Within the seafood department, multicultural households spend $62 a year compared to non-Hispanic white households at just $43.
    • Multicultural consumers are less willing to purchase branded fresh meat and seafood items; instead there is preference towards made-to-order, unbranded meat products, typically prepared behind the counter.
  • INSIGHTS FROM THE BAKERY DEPARTMENT:
    • The bakery offers the biggest opportunity for multicultural consumers, who spend only 9.8 percent of their fresh dollars on bakery items.
    • The bakery’s proximity to the deli should be leveraged to create strong cross-department connections for multicultural shoppers across multiple entertaining categories.

Larry’s Market: Surviving and Thriving on the Power of Lunch

By Lorrie Baumann

Photo by Uriah Carpenter

Photo by Uriah Carpenter

When Larry Ehlers started working at his local grocery store in Brown Deer, Wisconsin after his return from World War II, it was the kind of neighborhood grocery that sold everything that the neighborhood families really needed from day to day in about 3,000 square feet of selling space. Then times changed, local roads gave way to superhighways, the small village of Brown Deer became a suburb of Milwaukee, and big box stores entered into the grocery marketplace.

Larry’s Market changed with the times by evolving into a specialty grocer. Its produce and meat departments have been eliminated in favor of prepared foods that cater to the lunchtime needs of the workers employed in the nearby office buildings, a highly regarded specialty cheese market makes the store a destination for tourists looking for the best of Wisconsin cheeses, and a busy catering department now provides more than half the store’s revenue.

“It’s an old, old grocery store, but it’s a charming building,” said Patty Peterson, the Manager of Larry’s Market and the daughter of Larry himself. “We’re not on the highway. We’re on the byway…. We don’t have a thousand people walking in front of our store each day.”

After his return from the war, Larry Ehlers worked for the store for years before he finally bought it in 1970. His son, Steve Ehlers, bought the store from him in the late 1980s, and Steve’s wife became the owner upon Steve’s death in 2016.

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Steve carried on that romance with French cheeses as he traveled in Europe in the 1970s for his own version of the Grand Tour once made by Victorian gentlemen to broaden their horizons as they started out on their lives as independent adults. “He loved France,” Peterson said.

i-54V7VWv-XLSteve and his father decided to start carrying artisanal American cheeses in the store after Mike Gingrich of Uplands Cheese won the American Cheese Society’s Best of Show Award for Pleasant Ridge Reserve, and today, the cheese counter with its 200 to 300 cheeses in it is a destination for travelers who come to Larry’s Market just to buy their cheese.

Most of the business rung up by the store’s 15 full and regular part-time employees, though, comes either at lunchtime or through the store’s catering business. The regular Friday grill-out events are also huge draws that bring 250 to 300 people into the store over the course of a couple of hours.

All told, the deli and catering departments represent about 60 to 70 percent of the business today. “We do a lot of corporate catering, so on any given day, we’ll have five people out delivering, and we can do 400 to 500 people for lunch, just catering,” Peterson said.

The typical lunchtime purchase for the 100 to 150 people who usually come in then is about $12 to $15, although customers will frequently spend $40 to $50 at a time if they’re also buying groceries and cheese. Among the most popular offerings are killer brownies, Wisconsin artisan cheeses and fresh soups, including the turkey chili that’s a particular favorite among Larry’s regulars. “We sell a ton of soup, summer and winter,” Peterson said. “Our local health inspector comes in for lunch quite often.”

Kroger and Murray’s Cheese Announce Merger

The Kroger Co. has purchased the equity of Murray’s Cheese, as well as its flagship location on Bleecker Street in New York City, to form a merger of the two companies.

“For cheese lovers and connoisseurs, it doesn’t get more authentic than Murray’s,” said Rodney McMullen, Kroger’s Chairman and CEO. “Our customers are excited to buy the unique offerings of Murray’s Cheese right in our stores, and we’re excited to ensure this iconic cheese shop will remain a part of the Kroger family for many years to come.”

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New York’s most iconic cheese shop, opened in 1940, Murray’s has been delivering the finest selection of cheese, meat and specialty food items to New Yorkers, chefs and cheese lovers nationwide through a robust online business. Since the two companies formed a unique partnership in 2008, Murray’s has offered the same fine foods and cheese expertise to the Kroger family of stores.

“When the Kroger and Murray’s relationship started in 2008, we wanted to figure out how to bring the finest cheese and charcuterie to more people,” said Daniel Hammer, Kroger’s Vice President of Culinary Development and Deli/Bakery Merchandising. “Today, we have more than 350 Murray’s Cheese shops in Kroger locations from coast to coast – and that is thanks to the incredible passion and commitment of the team at Murray’s to empower associates to share their love of cheese with customers. We look forward to learning from the very talented team at Murray’s and working together to grow the business and build the iconic Murray’s brand.”

Murray’s former Owner and President, Rob Kaufelt, will remain affiliated with the business as a strategic adviser. Nick Tranchina will continue to lead the Murray’s Cheese team in New York and will report to Daniel Hammer at Kroger.

“Rob’s dedication to his craft has placed Murray’s on the map among the culinary elite while also making specialty cheese more accessible to mainstream consumers,” said McMullen. “We look forward to Rob’s continued influence on the business, helping to tell the Murray’s Cheese story and building its brand.”

“It has been my honor and privilege to work with so many tremendous, talented people over the course of my 45-year career in food retail, especially the last 25 years at Murray’s here in New York City,” said Kaufelt. “When I set out on this journey, my goal was simply to run the best cheese shop in Greenwich Village. I’m proud that we’ve been able to maintain the spirit and service of a mom-and-pop neighborhood shop amidst our growth into the national market. I am pleased to pass the torch to our able staff, who will carry Murray’s into the future.”

Murray’s Cheese shops in Kroger stores replicate the same experience customers enjoy at its Greenwich Village flagship store. Each shop carries hundreds of cheeses, charcuterie, olives, crackers and specialty food items from all over the world. Murray’s is deeply involved with product selection, staff training and development, merchandising and promotions.

Other highlights of the special partnership between Murray’s Cheese and Kroger include:

  • In December 2016, Kroger and Murray’s Cheese opened their 350th store location in Bloomington, Indiana. At the time, Kaufelt said, “This is an exciting milestone for Murray’s and the specialty cheese industry. In 2008, we pioneered a store-within-a-store concept at a handful of Kroger stores. Between 2008 and 2012, we opened 38 stores, and in 2016 we opened nearly 100. This partnership has exceeded our wildest expectations.”
  • Murray’s staff has trained thousands of Cheese Mongers and Certified Cheese Professionals through its relationship with Kroger. Between the two companies, the American Cheese Society named as Certified Cheese Professionals 29 team members in 2016, 20 in 2015, and 13 in 2014.

Financial terms of the merger were not disclosed.