Welcome to The Lempert Report LIVE
Welcome to The Lempert Report LIVE
Welcome to the Lempert Report Live. On today’s broadcast New York Attorney General aims to do something about corporate profiteering, Albertsons new healthy food campaign, a dangerous precedent for weight loss, Black Americans are leading the vegan movement, the new fight against hunger starts just when we need it the most, and on The Bullseye, Starbucks follows Bulletproof down a drizzly path. But first, Whole foods is now accepting applications for its 2023 Local and Emerging Brands Accelerator Program. It’s a great opportunity for brands to learn from Whole Foods experts, get financial support and hopefully get on the shelves in Whole Foods. It’s a 6 month program– check for the link just below the video on YouTube, Facebook and LinkedIn to apply. https://www.wholefoodsmarket.com/company-info/information-potential-suppliers Good luck! Check out Food News Today on SupermarketGuru.com for the most up to the minute newsfeed courtesy of our partnership with Cision. Let’s get started. So, Sally, some good news for consumers, maybe. Le ticia J ames of New York Attorney General fame, ha s proposed rules to protect US consumers and sm all businesses from corporate profiteering. In particular, one of the things that she's against is dynamic pricing. Dynamic pricing being the fact that whether you'd be a restaurant or even a grocery store, that you would change prices based on activity. Whether it's a shortage of product, whether it's you're busy or not so busy. So what do you think about this?
Sally:Well, Phil, I mean, dynamic pricing is something that a lot of us are accustomed to with purchasing flights or hotels. We know that those numbers can fluctuate at different times that you look them up. Our food is something that we absolutely need. This is an essential good. And so, i t can feel like to consumers, I believe that this is inequitable. This is contributing to an inequitable food system. Allowing for those high demand times, those prices to go up, that only some people can afford. And then at those times when people are not buying or o rdering food as much, that price coming down.
Phil:Capterra has a new report, new study, the 2023 Dynamic pricing in restaurant survey. And what they found is 81% of consumers check menu prices always, or often before they choose where to eat. 51% have stopped patronizing a preferred restaurant due to recent price increases. And 65% of consumers say t hat dynamic pricing would make the decision of where and when to eat more difficult. 6 3% says it makes it harder to budget they're spending on restaurants. To your point, I think it's absolutely absurd. I'm all for fairness to consumers. I think that dynamic pricing, and we're hearing more and more about stories like this, it's just a way to rip off people. I'm not sure what advantage consumers really have. So goo d fo r Let icia Ja mes. Talking about supermarkets, Albertons has a new brand campaign called Sincerely Food. They're saying it's one more way we're connecting with our customers as we create a more personal, engaging customer experience that embodies our values as a longstanding neighborhood grocer. That's according to their E V P and Chief Merchandising Officer. Jen Saenz, to me, I don't get this. I just really don't. I mean, what they're doing is they're going across all their banners. They're trying to make it more local. They're trying to build a more emotional connection with customers. Certainly the timing is suspect for me as we're seeing this Kroger Albertson's merger pr o ceeding. I just don't think, and maybe I'm missing something, but I just don't think that this campaign is gonna do much for them or consumers. They're talking about having each banner has a unique history. And also Albertson's has Safeway, Tom Thumb, Pavilions, Acme Randalls, Hagan, you kn ow, some other banners. Well, but, you know, one of the campaigns they have is The Art of Fresh. So th ey have a little girl with raspbe r ries on top of her fingers, and it says, we're sweet on you too. Si n cer ely Berries. What they're doing is they're having their food talk. And I just think it's like really weird. I'll say one more thing, they have one quote, sincerely, convenience. So the food talks and it says,"Hey, there, it's me food. Whenever you need me, I'm ready for you." What am I missing here?
Sally:Well, you know, I actually really like this campaign. And the reason I like this campaign for them is that I think, they are really going for showing more lifestyle and the shopper's reaction to the enjoyment that food gives them. And if we follow trends in digital media and video, our modern consumers seem to enjoy this human component, you know, with all the emotions in the fields. I think about the dog food ad that ran for the Super Bowl and how people responded so positively to that because it called on their emotions. So maybe that's what they're going for. Whether or not people will pick up on that, it will affect them that way, I guess, i s to be seen.
Phil:Yeah, I mean, they have another one called, Sincerely Food. S hows a variety of foods, strawberry, steak, a store ma de c ake, seafood, and an entree, vo icing their thoughts on their important, again, the food is talking on the video to store associates, shoppers and customers. And I'll quote,"Hey, it's me food. I'm so much more than just what we eat." Okay, we'll see what happens. And to your point about social media, Inmar, they're 202 3 Spring trends guide that just came out last week or so ago finds that 52% of shoppers surveyed find gro cery purchase inspiration on social media. To your point, ne ar ly the same percentage as those saying in-store displays prompt their purchases. So, I could be wrong on this, but I think it's a lame campaign. Albertsons, you should do better. Talking about something that's very serious and a very serious concern. There's this trend, certainly here in California, but it's going throughout the entire country that now in order to lose weight, c elebrities and non-celebrities are using these diabetes drugs, in particular Ozempic. And that costs, o n the open market about$900 a month, on the bla ck ma rket about$625 a month. It lowers blood sugar levels, so that's great for diabetics, b ut also it cuts your appetite so you don't eat and drink as much. And there's this trend that all these people are trying to get, oz em pic so that they can lose weight. some of the side effects, nausea, vomiting, diarrhea, and constipation. And there's one person who was qu ote d in this story, in t he cut.com. It's kind of like being on a very low dosage of Adderall without that crack feeling. I mean, come on. And probably, and there's a couple other diabetes drugs that are doing the same thing. And it just doesn't make a lot of sense to me, especially since when you stop taking it, your hunger comes back. So you're talking about a l ifelong drug, t o lose 10 pounds or 15 pounds, or 20 pounds. And how this has gotten this kind of traction, Komodo He alth, wh o tracks he althcare d ata for 330 million patients, notes an uptick in people with no prior record of diabetes receiving these drugs, a fourfold increase here in California alone. What do you think?
Sally:Phil, I I think this is very upsetting. We have come a long way with body positivity and our culture becoming more attuned with health rather than the size of our bodies. This is reckless on the part of the drug maker, those who prescribe it and those who are taking the drug. It could create supply issues for diabetics that really need it. The cost of the drug is an issue. We already have a really high cost of diabetes drugs in this country for people who really need it. So, you know, I think this is a major issue. And those in the food world, th at have already been tal k ing about body positivity and health and using people like plus size wome n like Lizzo to represent Instacart. I encourage them more to stay on that trend, you know, to help those people learn how to eat healthy with actual food and not taking drugs like this.
Phil:And changing your behavior. I mean, the funny thing when I read this story is, whenever something happens, t here's another effect that you wouldn't expect. So in New York, t he re's this dermatologist, Dr. Paul Jarrod Frank who has coi ned the phrase Ozempic face, me aning the aging effects that sudden weight loss can have. So basically what Dr. Frank is doing is treatments to smooth and con tour the newly wrinkled and the use of injectable fillers to re-plump the newly sunken face. So, you know, besides losing the weight and spending 900 bucks a month, wh at you're also gonna have to do is get plastic surgery because you look like hell. So, I, I don't know. I agree with you. I think it's totally antithetical to what we're trying to do as it relates to health and wellness. Food is me di cine. It just doesn't make sense. And for a lot of these people to be taking this just to lose weight. And yes, I understand we're in a social media world where everybody wants to have great pictures of themselves on Instagram and Facebook and so on, but this is dangerous stuff. There is a new trend that really I'm excited about. You know, veganism is not new, but the fact that black communities are leading the vegan revolution, i s really great. What I find is the average life exp ectancy of a black Ame rican si x years lower than the overall population, which is driving a lot of the black Americans to a vegan diet. And over the past 10 years, repo rts sho w that black Americans were nearly three times more likely to follow a vegan diet. 31%, according to Gallup, of non-white respondents cut back their meat consumption, in 20 21, as c om pared to 19% of white respondents. So the fact is that, historically, black A mericans have had a more o f a vegan diet to begin with. It's ramping up. And this is kind of cool in my mind. What do you think?
Sally:I think this is wonderful. P articularly considering all of those things you said, there is a health crisis in the black communities with heart disease that is related to poor diet, and that is also related to accessibility. But it is great to see that black Americans are embracing this type of diet, and it's really great to see that it's coming from a long time from celebrities, ea rly hip-hop culture. We've seen it with celebrities, celebrity athletes like Venus Williams. And so there are a lot of leaders in that community that are using their platform to promote this type of healthy eating. And you don't have to be full vegan to sometimes eat vegan and to eliminate, and not eat as much meat.
Phil:So whatever happened to that Snoop Dogg commercial for Dunkin' Donuts when they were pushing that plant-based, breakfast sandwich? I haven't seen that around for a while.
Sally:I haven't seen that either. I don't know. But Snoop is always involved in the food world and making an impact for awhile.
Phil:Yep. Martha Stewart and Snoop are an unlikely pair, but I love what they did. Let's talk about hunger. So Publix, one of, in my opinion, one of the best retailers, grocery retailers in the nation and they're hosting their first Hunger summit. This is to address growing food insecurities. They ar e r eally saying that in the southeast part of the country, th ey're m ore than 7 million people who are food insecure. Over the past decade, they ha ve d onated 46 million to nonprofits for hunger. This Hunger Summit is bringing together US re presentatives, three dozen food bank organization, USDA, Publix's experts, and the Florida Agriculture Commissioner, t o have an open dialogue to share the best practices, to talk about how we can all work together to help hunger in our community. This is great, but it just doesn't stop there. There's more hunger stories. Tell us about that.
Sally:There are and there are a lot of, once again, we're seeing celebrities get involved with the United Nations World Food Program, which is really bringing a lot of awareness to global food insecurity. The Weeknd, Kate Hudson, Michael Ko rs a re all high le vel s upporters, and most recently I read about Eitan Be rnath, who has partnered with the United Nations World Food Program program to help raise money. And he's got 10 million followers on his s o cial media accounts. And he's so interesting because, I b elieve he was on the show Chopped when he was 11 years old. So young to be on a show and to succ eed, be succeeding at such a young age in the food world. So it's really great to, once again, see these celebrities and these influencers using their platform for a great cause.
Phil:Absolutely. And he's only 20, and can you imagine what he's gonna accomplish by the time he's 30? Yes. If he's got 10 million followers now, it's great. We need more people like him, like the Weeknd to really be pushing and prevent hunger. Certainly, what we've seen, as w e've seen from the administration really trying to get behind solving the hunger problem. Over by 2030, I think they've said, th ey have major retailers who have embraced it. They're giving more food to food banks. They're really doing a great job. And part of that is also the new food code. I shouldn't say new. The food code actually started in 1934, so it's not new, but it comes out every two years. And what's interesting to me is what they wan t to do is they wan t to el iminate waste. They want to have standards, if you would, on how retailers and restaurants can give food, whether it's food banks or other communities. The problem that I've got with this, it is actually 663 pages. So we've put a link in the chat, so if you wanna download all 663 pages, you can, but when we have that, it becomes overwhelming, in my opinion, whether it's a retailer or a restaurant, to be able to comply with this. I mean, how do you read 663 pages? I started going through it. I mean, th ey're b asics like holding temperatures, how to cook, no t undercook to eliminate contaminated equipment, food that comes from unsafe sources, poor personal hygiene. My concern is that I don't think it's written in a way that people can understand it and accept it. I mean, you need to be a scientist to read these 633 or 663 pages to get through it. I'd really much rather see, and I know the government has to do this stuff, and they've gotta really make sure all the facts are correct and so on. I'd like them to come up with a cheat sheet that's maybe two or three pages that they can give to supermarkets and to restaurants on how to comply. Because otherwise, you know, you look at this and you go, who a, t his is gonna take a lot of work to do.
Sally:Right? And then they're too afraid to donate that food because they're afraid that they're not complying and that they might be liable for some situation. So yes, we do need to make it easier for producers of food, people who sell food in different types of business to donate that food whenever they can. So it does not go to waste.
Phil:Yeah, 40% of all of our food is wasted. We need to curb that. No question. A lot of people are hungry,especially now with the rollback o f the SNAP benefits. We're under more pressure than ever before to ease that burden of hunger. And I applaud what the Biden administration i s doing, but let's make it a little bit easier for p eople. Thanks Sally. On today’s Bullseye– right across from our offices on Main Street here in Santa Monica, Dave Asprey opened the first Bulletproof Coffee store. You might remember the story. Asprey was hiking in Tibet, weak as can be and was given Yak butter in tea by an old Tibet woman and was, supposedly, instantly refreshed. He came back to the States and developed his recipe for Bulletproof coffee: low-mold coffee, grass-fed butter or Ghee and coconut oil. The hype promised everything from raising your IQ, increasing your energy, burning away the fat around your middle and of course– increasing your libido. The Bulletproof café has closed since there were hardly any customers going there after all the hype settled. I tasted it when it first opened and frankly, being a black coffee drinker, I practically gagged and thought it tasted awful– even if it could raise my IQ. So you might think that Howard Schultz of Starbucks fame would be smart enough to retire this time(he says this time its for real) without having his legacy further decimated by introducing“Oleato”– extra virgin olive oil infused coffee drinks. He said in a press release that the idea came to him on a recent trip to Sicily as he was sipping a teaspoon of olive oil every morning, alongside his cup of coffee. He said that“in both hot and cold beverages, what the[combo] produced was unexpected. Velvety, buttery flavor that enhanced the coffee and lingers beautifully on the palate”. There is a Oleato latte with oat milk and olive oil, a Oleato ice shaken espresso with oat milk, hazelnut flavor and olive oil and the Oleato golden foam cold brew. It’s already being sold in Italy and will be introduced here in Southern California, the UK, Middle East and Japan starting this Spring. Starbucks EVP and chief marketing officer Brady Brewer told CNN that they are“betting that people will hear about the concoction and try it because they want to know what it tastes like”. Seriously? That from a Chief Marketing Officer? He’s been at Starbucks for 22 years, before that, tech with Microsoft. I’m sure he’s accomplished much at the company, but consumers, especially coffee drinkers, aren’t stupid, and with the price of coffee about double what it was in February 2020 I don’t think that there will be an onslaught of people trying it just because they want to know what it tastes like. Ask Dave Asprey. When Schultz came back to the company for the third time as CEO, he said it was temporary and that the Board expected to have selected a new leader by the Fall of 2022. No word yet, but as Schultz is faced with company lawsuits about discrimination, harassment and union busting I guess dreaming up Oleato takes his mind off of more important issues that Starbucks needs to face. Tune into next week’s TLR Live to hear an interview with a Starbucks employee that is one of the union organizers in Massachusetts to hear what he has to say. Sally, do we have any comments?
Sally:We do, Phil, we've got a couple of comments from John Pandol today that I would like to share with you. one of the things is he talks about the, H a rt H o use, which is a vegan fast fo od p lace near you. So, m ay be you should check that out, Phil.
Phil:Kevin Hart, and that's, that Kevin Hart. Yes. The comedian Kevin Hart, w hen he first opened up, we talked about it. I hav e no t gotten there yet, John. I will. Good reminder.
Sally:Yes. And then, and then one of other, one of John's other comments that I wanted to share with you is he talks about how we use pharmaceuticals to treat other types of addiction like smoking. So why should we push back at using a prescription for weight loss? He says, more weight loss drugs, please.
Phil:Well, John, you know, I, I think if I look at, smoking, a nd the patches and so on, they're temporary to get you off of smoking. I don't think, and I could be wrong, not being a smoker, that you've gotta wear those for life. My concern about these drugs is you've gotta have'em for life. And also, we don't know the side effects. You know, we talked a little bit about the side effects that some people are having, but they haven't done any studies for people who are not diabetic taking these drugs. And I think that before we roll them out, we n eed to have more studies that says, okay, here's a normally healthy person that just wants to have, you know, 10 po unds or 15 or 20 pounds off. What's the long-t erm side effects? And to Sally's point earlier, I'd rather us and John, you, t he produce business. I'd rather us, you know, change our behavior by eating more produce and, and really, you know, understand what we're eating versus taking, you know, a miracle pill that also costs$11,000 a year. That's a lot of money. And if we look at obesity and now a bout 70% of our population are either obese or overweight, a lot of that population can't afford 11 or 12 gr and a year for this drug for the rest of their lives. So this time, Jo hn, I'm go nna d isagree with you. Thanks. The Lempert Report is all about inspiring ideas, making our industry think and challenging each other. Let’s think about“being the shopper” and how we can bring our supermarkets and restaurants closer to meet their needs. I hope you’ll come back to join us on next week’s installment of The Lempert report LIVE when we focus on the biggest and best insights– and the things that really matter. Be sure to visit SupermarketGuru.com for the latest marketing analysis, issues and trends and don’t forget to join us back here next Monday at 2:30pm Eastern for more.