The Lempert Report LIVE

Jack in the Box & Weed, Walmart+ New Moms, #FOODMO

May 01, 2023 Phil Lempert Episode 76
The Lempert Report LIVE
Jack in the Box & Weed, Walmart+ New Moms, #FOODMO
Show Notes Transcript

Welcome to the Lempert Report LIVE. On today’s broadcast:

Phil:

Welcome to the Lempert Report Live. On today’s broadcast Walmart+’s brilliant marketing, the rise of violence in Brik& Mortar, are French Fries making you depressed, the answer is yes, Coca-Cola’s latest misstep, most fear losing out on the latest food trend and on the Bullseye, Jack in the Box commits to weed. But first, this Friday is Cinco de Mayo, and while many think of Margaritas to celebrate, few actually know why. Cinco de Mayo is a yearly celebration commemorating the anniversary of Mexico's victory over the Second French Empire at the Battle of Puebla in 1862, let’s raise our glasses and toast. You can go to@DonJulioTequila on Instagram and get a$5 digital Cincos coupon each day between May 1– 7 to celebrate at your favorite bar or restaurant. It's a really smart promotion. Starting this month, we will give you advance notice of the Aldi Find that we think is extraordinary. If you like women’s sneakers that celebrate Mickey Mouse, you could go to Desigual and pay$159 for this one with studs– or go to Aldi and get this one, sans studs for just$14.99. That’s a find. Let’s get started.. Sally, Walmart+ has come up with this new program for the month of May, where they're giving away 2 0,000 Walmart+ memberships to moms, new moms that give birth in hospitals. Now, the interesting thing a bout M ay is we give birth, not we, but women give birth, i n the US 3. 6 million b abies a year. That averages about 30 5,000 a month. May is not the biggest month. August is actually the largest month for births. but that's three. Let's say it's an average of 30 0,000 a month, but they're only giving out 20,000. And I think that this promotion is so strong, and I know it's their money, not my money, but this is a great way to get more members for Membership Plus. And you know that when you're a new mom, you've gone through this, all of a s udden you're buying a lot of new things, diapers and baby formula and things like that. And if Walmart+ can get you at that moment in time, you're probably go nna s tay with Walmart+ for the time that your kids are growing up. What do you think?

Sally:

Yes, Phil, I 100% agree this is a fabulous campaign. It is something that new mothers absolutely need. They're calling this campaign the Mother of All Savings memberships campaign, and it's a perfect time to do it because Mother's Day is coming up on May 14th. And they've also enlisted some really great personalities to provide content with Ultimate Motherhood Hacks. And, and those celebrities a re Cardi B, Stephanie Beatriz, J anelle James, and J enny Slate. And they bring a lot of humor into being a new mom, and they give these really great tips with a lot of jokes. So, i t's a really fun watch to see these videos. But yes, they're giving away 20,000. It is a membership that is worth$98 an d they're promoting the benefits being that you get free diaper delivery, y ou can get free gas to baby well checks, and they're also promoting, fr ee streaming of shows while you're doing those late night feedings, of yo ur baby.

Phil:

Yeah, it's really smart. Hats off to the folks at Walmart+ for pulling this together. A story of concern. There's a rise of violence in brick and mortar retail workers nationwide are scared to go into work during potential hostile situations. In a business.org survey of 700 small businesses last year, 5 4% report a rise in shoplifting. 2 3% said they were robbed. Every day CVS has told Congress t hat shoplifting was up 300% over pre-pandemic figures. Retail theft reports up 52% over 2021 in Philadelphia, in New York City, there w as 45%. Now what's interesting to me about th is s tory is in New York, th ere were 327 people, that's it, 327 people who were arrested and rearrested in more than 6,000 instances. So what it really is talking about is how this crime is very organized. Prosecutors' Alliance of California estimates that 500 billion worth of stolen or counterfeit goods are sold every year through online marketplaces, including Amazon. But probably the mo s t im portant thing they show how are these retailers gon na co pe wit h ha v ing emp loyees tha t re ally, frankly just don't wan t to co m e to wo r k be cause they're afraid.

Sally:

Yes, it is a huge concern. And we saw this really start ramping up when the shutdown happened, when Covid happened, and people that were just going into these retail stores weren't in great moods because our lives were in turmoil from this situation. And now with prices up on food, people are frustrated when they go shopping. And so there is a tendency for more hostility and anger. In this study, 33% revealed that their retail store had experienced a violent situation ranging from robberies to physical altercations. Now what the conversation is like how do you prepare your employees to deal with hostile customers? Should our employees be security? Should they be monitoring and catching thieves? I'm not so sure that that's really their job. And I wonder if the answer is having hi gher ti ghter security or maybe those checkout lanes, having so many of those isn't the best idea. After all, if people are going through with a clerk if they have to check out their groceries with th e c lerk, then they're less likely to steal.

Phil:

Absolutely. And I've seen people at the self scane steal things, it's really relatively easy. And I think to your point, we don't w anna put employees or teachers in the position of really being a policeman, but I think we have to do what Hy-vee has done. And it's unfortunate to say, but what Hy- v ee has done i s hired retired police officers, either retired or folks that don't w ant t o be police officers anymore, that are armed, that are wearing a bulletproof shield a police issue bulletproof shield to monitor all the stores. And I think if you've got people like that in the stores, you're gonna have less of these flash mobs that come in and just steal whatever they want. Tell me about some new research about french fries. I happen to like french fries. I'm not a huge french fry consumer, but there's a new research study that came out that said that people the frequent consumption of fried foods, especially fried potatoes, was linked with a 12% higher risk of anxiety and 7% higher risk of depression in people that don't eat fried foods. But there's a controversy about this study as well, right?

Sally:

Yes. Well, when we look at this study, like you said there's a 12% higher risk of anxiety and a 7% higher risk of depression in people that are eating fried foods now. But that there's a 2% increase on top of that is risk of depression, w hen you're eating potatoes as opposed to fried meat. So that is one part of this study that we're looking at, but also we've seen such an increase in anxiety and depression over the last few years. In fact, the World Health Organization says that 5% of the global population, Phil, is depressed. That's a lot of people worldwide. And now we also hearing about these studies, ov er this chemical that occurs when you are frying carbohydrates. And that is acrimilide. And we have talked about this on SupermarketGuru.com for years, bec au se this issue came up you know, I believe about a decade ago, maybe more. But this ch emical occurs when you fry carbohydrates. It also occurs when you roast beans in coffee. So it ca n come up there. But thi s chemical has been linked to causing depression.

Phil:

And it's been linked by a number of agencies. for example, EPA has said that acrimalide is a human carcinogen, that also leads to all these cancers that we're talking about. Dr. David K atz who's probably one of the smartest medical guys that I know, especially as it relates to nutrition, i s saying that there's two ways to look at this. The human component may indicate that higher intake of fried food increases the risk of anxiety and depression, but he also says the other side, the causal pathway could be just as ready to go to the other way. People with anxiety and depression tu rn t o comfort food with increasing frequency for some semblance of relief. So we've gotta look at both of them. Lots of caution about this study but certainly it raises the question that we need to find out whether or not acrimilide wh ether it is f ri ed foods, do es have an impact on depression. And if we look at the stats from the American Psychological Association, depression is continuing to go up, especially in kids. And if we look at our, our kids and our teens, their incidents of french fries, are probably a lot more than our incidents of french fries. So it's definitely worth having some more work done and more studies done. Coca-Cola, in my opinion, my opinion only, has made another misstep. And we've talked a lot about Coke probably in the past three or four months as they continue to raise prices. So now what they've decided to do is license two of their brands sSimply and Minute Maid to add to fruit. Frutura is the Global Fruit Sales Company which will distribute fresh grapes and citrus bearing these Coke logos on it. Now, we've tried this before. We tried it with Disney, which I think is probably even a stronger brand to connect produce to kids than it is Minute Maid. But to me, this is just a cheap shot to try and make some money. Licensing the brands that you've got if you walked in and saw a Minute Maid Orange, would you be more likely to buy that orange?

Sally:

I'm not sure what the messaging is that they're going for here, Phil. They're going to be distributing fruits like Clementine's, lemons, limes, oranges, and mandarins, as well as red green and black seedless grapes. And so, I'm not sure what message that is going to send to people when they see those logos in the produce department. Do people connect Minute Maid to the Coca-Cola company? I'm not sure if they make that, if shoppers make that connection. But yes, I agree it could be a misstep for this company.

Phil:

Yeah, and also, I didn't have the opportunity to check, but my belief is that most of the oranges that's used in Minute Maid come from Brazil anyway. It's from concentrate, so I'm not sure if there's a disconnect. I think it's a major disconnect. There's another new poll that's come out. This survey was conducted by one poll on behalf of NVTM apples, and they found that social media plays a significant role in the recipes that people are drawn to make. On average, people feel the need to p o st t heir meal on social six times per month, and nearly a qu arter o f them say they us e Y ouTube and Facebook the most when it comes to finding trendy food inspiration. But there's a new term for these, th ree in four Americans. Tell us about that.

Sally:

Well, we're looking at first of all the most alarming statistic I read out of this study, Phil, which surprised me, and I don't know why, is that the average American spends four hours of their day on social media, four hours they do, and that the average person follows at least 10 food related accounts on social media. I was so surprised by that. This is such a great opportunity for the food industry to capture the attention of these people. And 67%, s aid that they want to be a snack influencer themselves if they ha d t he chance. So these people that are sharing recipes and sharing what they're eating, ar e really popular on social media. And we're also seeing that 73% admitted that they spend extr a time preparing their meals just to make them more beautiful for social media. So there's also that feeling of accomplishment, of bei ng able to share what you made, and I guess get some bragging rights from that.

Phil:

So we've gone through yuppies, yuffies and now there's Foodmo, right? Fear of missing out on Food trends. How sad is that? Oh, well. So don't, don't feel bad. Don't miss out on food trends. Come to SupermarketGuru.com and you'll be able to see the latest in food trends. Thanks, Sally. As many of you know, I started my career working for my dad as a food broker, so I was thrilled to welcome John Carroll, president of Digital Commerce and Analytics of Acosta to Lost in the Supermarket, to see just how food brokerage has evolved. For the complete episode, just go to SupermarketGuru.com. Here's what John has to say. When we take a look at what's going on. 2023 is certainly gonna be an interesting year. We're coming o ut of hopefully the pandemic. we've had major supply chain issues, we have major price increases going on. And so I guess my, my question is, will 2023 be year of choice chaos opportunity? What's in your crystal ball?

John:

I think a little bit of everything you just mentioned Phil, I I like to say that the last five years in retail have been the most progressive and disruptive than in the last 50 years. and it's all driven by really three things. Number one, the changes in technology, without a doubt, c onsumers needs for convenience and a f ocus on convenience. An d, and then also the pandemic. you know, it really brought retail, which I always said was a little bit fine behind from a technology perspective. I, I think it really forced the industry to make the massive changes that were necessary to keep up with the consumer. So I do think there's gonna be a little bit of everything. I think the economy is still uncertain. Inflation is, is a bit uncertain. I think it's a bit of a ta le o f two cities from a consumer perspective. You have people that are doing fine from an economic perspective. You have people that are making more money based on what happened from a pandemic perspective in the labor shortage, but you have people that are still struggling based on all the price increases in inflation from an economy standpoint. So I think it's gonna be an interesting year. I think what we've all learned through the pandemic in the last few years with the advent of technology is that we have to be agile as a C P G company, as a fast consumer, fast moving consumer goods company. And as retailers we have, we have to make sure that we understand that there's always gonna be changes, and those changes are really gonna be led by the consumer and the shopper

Phil:

On today’s Bullseye– Jack in the Box just announced a partnership with Weedmaps. Weedmaps is an online platform that helps users find legal cannabis dispensaries, delivery services, doctors, and deals in their area. It was founded in 2008 and has become one of the most popular resources for those seeking information about cannabis products and services. Users can search for specific strains of cannabis, read reviews from other users, and locate dispensaries that carry the products they're looking for. The platform also provides information on cannabis laws, news, and events related to the industry. They have over 10 million active users globally as of 2021. The media partnership makes sense– Jack in the Box has always promoted itself as part of cannabis culture– from its Munchie Meals to Wakey Bakey Hash to Snoop Dogg’s Merry Jane platform. Jack has set up a storefront on Weedmaps promoting its Pinneaple Express Milkshake and pineapple Red Bull– they mark the first food brand to make a media buy on the site. The reason? Well,“Some brands dip their toes into 4/20 with a lighter execution—something with a wink and a nod,” Ryan Ostrom, Jack in the Box’s CMO, told Adweek.“We want to put a stake in it and own the moment for quick-service restaurants.”. It was all about 4/20, also known as"Weed Day," the unofficial holiday celebrated by many cannabis enthusiasts around the world. The holiday takes place on April 20th each year and has become a popular time for people to gather together to celebrate and consume cannabis. 4/20 has become a significant cultural phenomenon, with many people attending cannabis-themed events and parties, and some cannabis dispensaries offering special deals or promotions on this day– following the likes of other themed created days that have nothing to do with heritage or religion. Ostrom says that“We understand what’s going on culturally in various states and nationwide, and we’ve done a lot of research with our guests. For a certain segment, 4/20 is an important holiday, and historically we’ve been there.” There is little doubt that this is great news for Weedmaps– breaking down the barrier to major advertisers should spur significant growth. What does it do for Jack in the Box? Adweek writes that the chain is continuing to lean into its late night clientele, which drives a significant amount of their business and no doubt, they write, overlaps with weed aficionados. Here in LA, Jack is offering a pineapple-chicken sandwich for a limited time to further their brand with this market. If you are not in LA, no worries, there are links on Weedmaps with recipes on how you can make what Jack is calling their Edible Assortment at home– onion rings, popcorn chicken, mini tacos and mini pancakes. Back to the pineapple tie ins. Pineapple is often used as a symbol of cannabis culture, appears on clothing, jewelry, and other accessories. Some cannabis strains also have"pineapple" in their names, which can indicate a fruity or tropical flavor profile. Pineapple has become a popular symbol of hospitality and friendship among cannabis enthusiasts, and it's often used as a way to indicate that a person or place is welcoming to those who consume cannabis. It’s like a secret handshake to enter a secret club. So, Sally, any questions this week?

Sally:

Yes, we have a comment from John Pandol, about our security and our retail violence and security story. He says, no question, the cost of security damage and losses, both physical and cyber is part of the reason we have price inflation. It's sad to see areas suffer from stores closed due to crime and the cities that no longer have the sales tax revenue.

Phil:

Yeah, John, as always, very insightful and you bring up a point that we didn't, that bottom line is it also forces store closures. So if you look at different cities across the nation like Buffalo because of the crime, they closed d oors. We reported last week o r the week before about thats Sper W hole F oods in San Francisco t hat closed its doors after one year because of the amount of crime. So store closures is really an important point. John i s always thanks for bringing that up. 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.