Welcome to The Lempert Report LIVE
Welcome to The Lempert Report LIVE
Welcome to the Leper Report, live on today's broadcast. Giant's approach to food waste is a winner, a new food security test in Europe. The global water crisis is very real. A hunger effort that's steeped in fraud. California leads the way in banning harmful ingredients, and on the bullseye, we take a trip to Denny's. Let's get started. So, Sally Giant Supermarket, um, has this program, it's now three years old, keep Pennsylvania beautiful, and it's focus this year. Every year they have a different theme. It's focused this year on food waste. What's it all about?
Speaker 2:Yes. The, the program is called, um, healing the Planet. And, um, what they're doing is they're giving grants to different companies to become in, to get involved with, um, solving our food waste problem. Um, it involves things like, um, diverting food and, and teaching people how to compost. They have funded, uh, already in the past two years, 82 projects at, at a total of$800,000. So if you are a nonprofit, um, it's not just in Pennsylvania, it's in a couple of other states as well, where you can, you can apply for this grant and you have until April 13th to do that.
Speaker 1:And I think what Giant is doing is so cool. Um, and, you know, basically what they're doing at the cash register, you round up. So, you know, your bill comes to a dollar 98, you round up to$2, and that's how that money is being raised. Um, they've got some great stats here that should be very scary. Uh, the US spends more than 162 billion, uh, growing processing and transporting food that is never eaten over 1 billion worth of food is wasted in our schools and supermarkets, um, waste about 15 billion a year in unsold fruits and vegetables. Um, all according to the U S D A. So kudos for Giant. Um, and again, as Sally said, you know, if you're a nonprofit, you know, register for it, maybe you can get some funding. It's$2,500, 5,000, 10,000 or$20,000 grants, uh, that they're giving out. Um, so in Europe, uh, there's a test that's going on a beta test, um, in two cities that think of it as social security for food. Uh, basically what they're trying to do is feed obviously people who can't afford, uh, food. It's, uh, in France and in Brussels, and, you know, they have only food products that meet certain certifications, uh, such as organic fair pay for farmers and workers, short supply chains. Those are the only only foods that you can buy. And basically every citizen receives a monthly allowance that enables them to buy food that meet certain environmental and ethical criteria. Um, it's testing right now in these two cities. They're gonna expand it to other cities as well. And again, I think this is a really cool idea. Um, what do you think, Sally?
Speaker 2:I think this is an interesting program, and I'm very excited to see after 12 months, um, what the assessment of how it worked and, um, you know, if people liked the program, if people liked, um, giving money to the program because it, it's set up two different ways and I, I believe in Belgium, um, there is a required amount that you, that, that citizens give, um, as in like a tax form to, um, to, to the program. Um, in, in France, the program, it's voluntary. So you can, you have to give at least a dollar, but you can give anywhere from a dollar to a a dollar 50 to the program. But everyone gets to receive this money every month. And what I do love about it is that it is going to, um, certain types of products that might normally be out of reach for people who have food, food insecurity that can't afford these fresh foods or these organic foods or these fair trade foods, these foods that support our environment and support our communities.
Speaker 1:And back, um, on this side of the pond in North Carolina, blue Cross and Blue Shield of North Carolina have launched a six month food delivery and health coaching pilot program, um, among low income members with type two diabetes. As a proof of concept, uh, participants receive$60 in groceries delivered to their home twice a month. Um, and what they have found so far is when for those people who have complete participation in the program, they have reduced healthcare costs by$139 per member per month, and an increase of$8 in pharmacy costs. And they say that's the reason it's going up is there's greater, greater medication adherence. Um, so it's educating people, feeding people, and changing behaviors, which is what it's all about.
Speaker 2:Yes. And you, you know, we have been talking about and, and, and testing out food as medicine in this country now for a while and seeing great results in programs like this, this program is showing results that, you know, that they're, for one, they're de decreasing food insecurity, but they're also seeing, um, uh, an in an increase in physical health and mental health and, um, and obesity rates actually going down in those that are receiving these, this fresh, healthy food.
Speaker 1:Yeah. We all, all have to work on this together. If we're gonna solve, um, our, our impending health disasters, uh, that are gonna come up, um, especially as it relates to the quality of food and processed food, um, that people are eating. Um, here's a, here's a UN report that again, is scaring me. Uh, water use has increased by about 1% a year for the last 40 years. Uh, by 2050, the number of people in cities that will face water scarcity is projected to nearly double from 930 million people in 2016 up to 2.4 billion people. Um, so we really need to focus, I mean, here in California there's always been a focus on water right now because we've had so much rain, it's eased up a little bit, but we have a global water price, uh, crisis, don't we?
Speaker 2:Yes, it appears that we do based on this UN report. Um, I, I am surprised, um, a little bit be that we don't, that we don't hear about it more. I know you do in California. Um, but here in Tennessee, I feel like the message is not out there about the water crisis. So hopefully, um, this report will, um, will educate us more on how to, uh, decrease our water use or how to responsibly use water. Um, I know in this report that agriculture alone is using 70% of the world's water supply, so hopefully there's going to be some advancement, um, some ways in agriculture that we can conserve water as well.
Speaker 1:Absolutely. Um, here's a sad story. Um, there's, there's this organization, um, a nonprofit called Feeding Our Future. Their premise is to feed people who are hungry, people that are in schools. And so far there have been 60 people charged, um, for milking our federal money to the tune of 250 million. Um, the, the first wave of indictment started in September. Um, the government has seized back about 66 million, um, in property. And just to give you some idea, I mean, there, there're people who say they serve 1.46 million meals to children. Um, that didn't happen. Um, here's somebody else who allegedly claimed to serve 2,500 meals every day. Um, there's someone who bought, who took the money and bought real estate, a Tesla and an Infinity. S U v, someone else bought a laundromat. Um, you know, the list goes on and on and, you know, it's, it's terrible when anybody steals, but when you steal food from kids, it's gotta gotta be 10 times worse.
Speaker 2:Yes. I, I'm not sure how you sleep at night, uh, taking food from children. Um, the money that they received through this program came from the Federal Child Nutrition Program. So this is federal money that has been designated to, um, to feed children and make sure that they are not living in food ins, in food insecurity. Uh, so, um, hopefully justice will be served and other people will think about this before they do that.
Speaker 1:<laugh>. Yeah. And, you know, our, our government is doing a lousy job. Um, I've gotta say that, you know, to, to waste 250 million without any kind of oversight mm-hmm.<affirmative> to make sure that these things don't happen. I mean, our senators and our congressmen in Washington better start getting their act together and really worrying about important things like this versus the nonsense that, that they're focused on. Mm-hmm.<affirmative>, um, here in California, um, there's a, a bill being proposed that will ban some food products, um, that, you know, food products like Skittles, peas, um, those products, a lot of candies that have harmful additives, um, food dyes. Um, and, and there's a big, um, there's a big concern and a big debate going on because these companies don't use these artificial ingredients outside of the us. It's like, you know, outside of the US you can't buy a product of high fructose corn syrup. Um, the other countries don't allow it. But here, uh, for our population, and we have just as we spoke about the obesity levels, the diabetes levels, all going through the roof, you know, we feed our kids and ourselves, um, all these ingredients, and finally, you know, California's gonna try, uh, to ban this. Do you think they'll be successful
Speaker 2:<laugh>? Well, I don't have high hopes that they will, because I think that the, the, the feeling in this country, you know, for so long has been having the freedom of choice, uh, over those, those things. Um, but as well, you know, the, the food companies that make these products have a lot of influence. And so, you know, what I hope comes from this, um, if they are not banned, um, because we know that these companies can make these products and can make them taste good without using ingredients like brominated, vegetable oil, potassium, bromate, um, those, those dyes, red dye number three, and the yellow dyes that we know cost learning issues in children and hyperactivity and are linked to all kinds of diseases, we know that these companies can make those products without those ingredients. So we as consumers have to, um, show them our power by not buying these products and creating the, that have those ingredients and encouraging them to give us the, the healthier product, and then we'll buy
Speaker 1:It. Yeah. Because they're selling these healthier products or these products without these, uh, dangerous ingredients mm-hmm.<affirmative> to other countries. Mm-hmm.<affirmative>, you know, especially in, in Europe,<affirmative>. Um, so we know to your point, that it can be done. Um, also there's a, there's a new study that has come out about obesity that's come from the George Institute for Global Health, the University of New South Wales, and the University of North Carolina at Chapel Hill. And what they found is 60% of food in America contains unhealthy additives, 60%. Um, that's artificial additives, preservatives, sweeteners, coloring flavor agents, and it represents a 10% increase, uh, since, uh, the year 2001. Um, and what, what they did, which was really interesting, the, these researchers worked with Nielsen, Nielsen Home scan, uh, panel data to analyze the proportion of products that purchased by US households, um, and they found<laugh> 60% of what we're eating, um, and good for us.
Speaker 2:Yes. And, and to be honest with you, Phil, I was surprised that there has been an increase in the additives because I thought over the last couple of decades that we were moving towards consumers, you know, asking for more transparency and wanting to know what's in, in their food and wanting to, wanting to buy more natural ingredients. Um, however, you know, there, there are a lot more products available that are, um, more natural and don't have these terrible additives in them, but they're priced at a level that not everybody can afford. Um, so a lot of shoppers, uh, are are forced to buy these foods that have additives in them in order to feed their families. Um, I think this is a, a, a great concern that we all in the food industry and as consumers should have.
Speaker 1:Absolutely. Thanks, Sally. How are you? As a category manager planning to win in 2023, you can hear from industry vet Reg Regina Bailey of Manasha on her recommendations for the four Ps over the next six to nine months, members of the CMA can access the full replay of the webinar in the resource library. Non-members, please visit catman.global to contact the association about membership. Here's what they had to say.
Speaker 3:How are you planning to win? So, um, in, in very basic category management terms in the product, you know, are you reviewing your category status and seeing early signs of change or trends, especially the trade down, we'll caution you very, very, very big about the trade down and then placement, you know, um, if we wanna make sure you've got everything on shelf, always in full, you know, avoiding fines, et cetera, you know, how are you gonna be updating your forecast to understand that shopper impact over the next six months? And then focus on what those supply chain implications could be. And then price, you know, don't forget about those key thresholds, you know, these are the, the currency thresholds we were talking about. And then also make sure you're looking at that price gap, the private label. Um, make it where if you are branded, you really can give them a reason not to switch. And if you're on the private label side, obviously those gaps are really important to your success. So promotions, um, can't, we cannot stress enough call to action features and benefits, making sure people understand that aspirational view or that inspirational view of how to use a food item. And then real critical as we see what we think is coming, um, aligning your digital messaging to your in-store messaging
Speaker 1:On today's bullseye, Denny's wants to be the diner for a new generation. The chain has spent over 25 million to upgrade its kitchens, and along with that has redesigned its menu offerings. Technology is playing a key role in the form of augmented reality that is designed to bring the brand to life. The idea is to create a journey. As we turn the pages of their menu, just scan it with your phone and there's interactive games as well as exclusive deals, not to be out done by other food service chains. You can also, of course, go to dinner drip.com to buy Denny's merchandise, a rolling pin hats, t-shirts, tote bags, playing cards, loungewear, even a sleep mask, and an original Levi's trucker jacket. Anything you can imagine except for the food, for food, you have to go to denny's dot com. I do wonder that if, if this is all about building the brand, why didn't they just call the website denny's diner.com? Diner drip just doesn't make it for me. The Denny's team also gets a uniform refresh. Denny's is clearly out to get our dinnertime meals and expand their image beyond a place for breakfast or lunch. It's a smart strategy, especially as the cost of eating out is more affordable than making dinner at home these days. The menu features two new sections, dinner Classics plus and savory dinners spotlight. So what's on the menu? Well, according to their press releases, red, white, and blue pancakes, fluffy blueberry pancakes made with real buttermilk and their top with fresh strawberries and cream cheese icing for the ultimate bite. Morning, noon, or night served with two cage free eggs, crispy hash browns, plus two pieces of bacon or two sausage lengths. Doesn't sound like dinner to me. Spicy moons over my hammy. A bold new take on a fan favored stacks, savory ham, spicy Teresa, and scrambled eggs with Swiss and American cheese. Plus pickled jalapenos on perfectly grilled artisan bread sandwiches served with crispy hash browns on the side, still not dinner. Very strawberry cheesecake milkshake. Strawberry and rich cheesecake bites are blended with premium hand dipped ice cream and topped with real whipped cream. Maybe for lunch, I don't know, mac and brisket, sizzling skillet, slow smoked brisket bursting with flavor is served on a bed of creamy oven, baked mac and cheese and top with three beer battered onion rings and a drizzle of barbecue sauce that packs a punch dinner. Finally, oven baked lasagna. A savory four cheese and seasoned beef combination that's wrapped in a traditional pasta shell and smothered in Italian sausage and beef meat sauce for a taste of home. It's topped with Wisconsin pavone cheese and served with classic dinner bread. Then they also have oven back, mac and cheese and strawberry pancake puppies, bite-sized pancake rounds made with strawberries and white chocolate chips and sprinkled with powdered sugar and served with cream cheese icing back to breakfast. Denny's Instagram page has 271,000 followers. Now that's great, but they only have posted 253 times Facebook. They have over 1.4 million followers on Twitter. Over 430,000. TikTok not so robust with only 32,000 followers. If in fact, Denny's wants to expand their customer base, they need to have a stronger social media presence. Obviously people sign up for it, but they're not giving them what they want on most of their pages. They only post about once a week. They set up a great promotion in New York City for daylight savings time, bottom list, free coffee on tap bar from 6:00 AM to 2:00 PM Their YouTube video has only 455 views. Now, don't get me wrong, I like Denny's, especially their cheese omelet. They're doing a lot, right? But if they're gonna be successful for dinner, especially with millennials and Generation Z, they're gonna have to do a lot more on social media and on their dinner menu offerings. Timing is right with the economy. Forget about selling Denny's merch. Focus on the food. The Lemper Report is all about inspiring ideas, making our industry think and challenging each other. Sally, talk about challenging each other. Do we have any comments?
Speaker 2:We do. Phil, uh, today, John Pal's got a couple of comments for us. Um, the first one, he says, after a few decades of increasing quantities and assortment of fresh produce, we now see fresh, decreasing and frozen increasing. Is the food waste discussion pushing folks to the freezer or is it something else? I e seasonal prices. The new frugality shoppers don't know how to buy fresh others.
Speaker 1:John, I I hear you loud and clear, and I think it's a combination. Uh, for those of you that don't know, John, uh, grew up in the produce world. Uh, so he knows better than anybody else. And I definitely think that part of it has to do with waste. Um, when you have fresh vegetables and fruits, um, you do waste more of them frozen and the cost is a factor. No question about it.
Speaker 2:And then he has another comment for us, um, about feeding fraud. When the government workforce is remote and does, doesn't even go to the office, let alone do site visits to evaluate projects, it is easier for the fraudsters in all areas of government spending.
Speaker 1:You're here,<laugh>. Well, to all of you, I hope you'll come back to join us on next week's installment of Leper Report Live. When we focus on the biggest and best insights and the things that really matter, be sure to visit supermarket guru.com for the latest marketing analysis issues and trends. And don't forget to join us right back here next Monday at 2:30 PM Eastern for more.