The second day of livestream coverage from the Winter Fancy Food Show in Las Vegas included a tour of the Diversity Pavilion, and interviews with keynote speaker and author Paco Underhill and SFA President Bill Lynch.
Sheree Williams, publisher of Cuisine Noir Magazine, brought viewers inside the Diversity Pavilion, which highlights exhibitors that include ethnic minority, women, veteran, and LGBTQ business owners that are certified as such. Companies from (included) CPG, a membership collective for BIPOC executives in CPG who are dedicated to one another’s success and commit to amplifying BIPOC voices and brands in the industry, were among the Diversity Pavilion exhibitors.
“I’m loving the creativity this year. So many are so passionate about the ingredients they’re using,” Williams said.
At the Wonder Monday booth, co-founder Candace Wu introduced her high-protein, low-carb, low sugar portion-controlled cheesecakes, “They taste like the real deal,” she said, and are available in five flavors with four new varieties launching soon. Wu who previously worked at WW [Weight Watchers] said, “I’m excited about helping people make healthy habits.”
Urja, a Chelmsford, Massachusetts.-based company debuting cold-crafted, ethically-sourced, 100 percent coconut water was also highlighted. Owner Justin Andrews said Its pink color assures consumers that it’s the real deal from Kerala, India, where he grew up. “Urja has half the sugar of other brands, is a single ingredient, and 100 percent pure, Andrews said.
Susan Choi, veteran TV journalist and FI’s director of digital media, hosted the livestream which is the result of a partnership between FI and SFA.
Choi spoke to Paco Underhill, the Fancy Food Show keynote speaker and author of the best-selling book “Why We Buy: The Science of Shopping.” He shared with Choi details about the specialty food consumer from his latest book “How We Eat: The Brave New World of Food and Drink.”
“One of the things that makes retail interesting is that it’s a reflection of the changes in us. So what makes a good store in 2010 and what makes good store in 2023 are different. And they are a reflection of the evolution of us.” Underhill noted.
He’s been tracking six concepts. “First is our relationship to screens has shifted the connection between our eyes and brains. And the fact that there is no more separation between the physical and cyber world.
“Second is the evolution of gender. Meaning that historically we sold you [women] food, cosmetics, and apparel, but today you are one of the most important buyers of technology. And if I go to a technology store, there’s often a direct relationship between the success of that location and the number of women working on the floor.”
Third is generational. “And while those differences existed, those differences are even more extreme today between Gen Y, Gen X, and even aging Baby Boomers like me,” he said.
The next issue is time. “Through the 20th century we’ve designed stores to hold people for as long as we could. And today almost everybody has a clock ticking inside their head. And that clock ticks at a varied degree of loudness,” depending on the day.
The fifth issue is what is global and what is local. “Particularly in the food industry, the way someone consumes in Austin, Texas, and the way they consume in Duluth, Minnesota, are different.” He points out that one of the challenges is figuring out what works everywhere and what needs to be adjusted for local.
His final point is poignant. “Money has gotten younger. While there is an aristocracy out there, which understands why one product costs one price and a similar one cost three times as much, what we need to do today is educate,” he advised. “Getting us to consume seasonally, consume locally, getting us to understand processed foods, is one of the ways we get healthier.”
Choi asked whether it’s harder for stores and brands to reach the consumer today. Underhill believes fervently that modern day management has gotten obsessed with screens, and they’re making decision sitting down based on spread sheets. “One of the keys to retail,” he stressed, “is getting to the front lines.”
His primary piece of advice for industry stakeholders is to spend at least one weekend a month on the floor of the store. “Watch your troops work, talk to them, see what they do. And that will help you make your decisions over the course of the month.”
When it comes to the importance of automation, AI, and robotics, Underhill is certain: “Collecting data in the 21st century is really easy. Your success is not the scale of the pile of data that you collect but what you’re able to do with it.” He went on to say, “Some of the romance of technology is disappearing. It’s time we brought in a reality check. We need to collect data that affects positive change.”
Consumer Buying Trends
To dig into other consumer behaviors, Choi interviewed Jonathan Deutsch, director of Drexel University Food Lab, who said, “One of the themes we discussed at the Summer Show was that COVID was getting people cooking at home. We still see those products but they’re a little more convenience-oriented than last time with heightened flavors.
“We didn’t have the inflationary pressures and budget pressures at the Summer Show. So even though specialty food can be expensive, compared to a restaurant meal it’s affordable. So we’re seeing things you use sparingly that really heighten home cooked meals. I saw some really interesting sea salts and flavored salts, where a pinch will take something boring and make it interesting,” he said. “And products that make cooking one step easier, like diced pancetta, high-end croutons really make a difference and you feel like you’re indulging.”
Deutsch also noted a lot of movement in sustainability and upcycling. “There are over 300 certified upcycled products, and lots of upcycling happening in ways that isn’t explicit, like chicken skin chips, and fish jerky made from fish tails. They’re sustainable but not beating you over the head saying ‘we’re sustainable.’”
In another interview, Choi spoke to David Lockwood about his findings from the SFA’s Today’s Specialty Food Consumer report. “The real top line is that you’ve probably seen news reports saying that online shopping has had trouble this year. Not at all true with specialty foods: In 2019, 47 percent of people were buying specialty foods online; 67 percent in 2022. It’s grown tremendously because of the pandemic and people have gotten so much more comfortable buying foods online,” said Lockwood.
And while the news is saying people are cutting back, he said, “In our surveys I found that almost half of people said that they haven’t changed their buying habits at all. Of the half that have, roughly half say they’re buying less of a given category and roughly half say they’re trading down to similar items.”
He warned, “Now that there’s more inflation, it will start to bite. I like to say that 2022 was the year of the faux recession; 2023 is going to be the real recession. So we’ll see more of that behavior play out.”
Why people buy specialty foods has not changed for seven to eight years. “They’re still looking for food that is interesting and different in the flavor. They want clean simple ingredients. Below that is superior quality and superior taste and authentic ethnic is the fifth. The one that’s creeping up is better for the environment,” he noted.
As for what they’re buying, five of the top 10 items are beverages, and salty snacks and anything plant-based are strong contenders, he said.
SFA President Bill Lynch concluded the livestream coverage. “This is about the members—it’s our members moments to shine,” said Lynch.
“I am most happy for our SFA staff, who work incredibly hard to pull this off. There’s a lot of behind the scene details. They’re the heroes.”
And as the association emerges from pandemic challenges, things look bright for the industry. Lynch shared, “This past year, we had the most member companies join in a one year. We had 1,000 member companies join the association. It’s been a banner year.”
“What we’re doing is resonating with them. They’re seeing the value of taking part in the Shows. And the beauty of the SFA is because we’re a not-for-profit trade association, we work with members year round. What’s even more amazing is this community of members, who are so helpful to each other.”
SFA President Bill Lynch concluded the livestream coverage. “This is about the members—it’s our members moments to shine,” said Lynch of the Show.
“I am most happy for our SFA staff, who work incredibly hard to pull this off. There’s a lot of behind the scene details. They’re the heroes.”
And as SFA emerges from pandemic challenges, things look bright for the industry. Lynch shared, “This past year, we had the most member companies join in a one year. We had 1,000 member companies join the Association. It’s been a banner year.”
“What we’re doing is resonating with them. They’re seeing the value of taking part in the Shows. And the beauty of the SFA is because we’re a not-for-profit trade association, we work with members year-round. What’s even more amazing is this community of members, who are so helpful to each other.”
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