The shopping environment suppliers and retailers built prior to COVID-19 took years to develop. Only a few weeks have changed that drastically. The new visit to a food store is very different, however it is reality and there will be opportunities for suppliers who figure out how to be successful.

You need to change your mindset

It has been very challenging for everyone in the food industry and we still do not know how long this will be the environment in which we operate. The experts are indicating the changes implemented in stores will be with us for a while. One of the biggest challenges is the uncertainty.

I will admit; I have been frustrated. 

2020 was going to be a great year for my speaking business. I had a plan, the first quarter was busier than ever and events were starting to shape up for the rest of the year. I have come to the realization these plans will not happen and I have to change my business model. It is frustrating because I really enjoy sharing food industry insights with live audiences. It is unfortunate, but it is reality. Sound familiar?  I am sure you had some great plans for 2020 as well.

It was important for me to change my mindset. I had to shift from why is this happening to what can I do about it? You need to do the same with your food products.

The first priority needs to be continuity of supply. Despite what retailers say in public, they are very focused on going category by category to assess the level of supply they will get from producers and processors. There are a lot of uncertainties such as labour, ingredients, packaging and many more. You need to go through every component of your business to ensure you have the ability to produce your products.

Once you have some assurances you will be able to produce your products you need to shift your focus to how do I sell them? This is what I did in my business as well. I still have the insights into the industry but it is a different industry today so I have been diligent to watch and learn over the last few weeks. Now I am able to go out and share what I know, in a different format.

You need to think about how to generate sales given the following:

1)    Demos are not an option. This is an interesting one for me as I believe people over-use demos and rely on them too much. The biggest reason to invest in demos is to remove the risk for consumers. They try before they buy so they spend money on something they like.

Find other opportunities to remove the risk. Find influencers who will sample your products and share how great they are. These can be online or traditional mass media. One great example for me would be asparagus. What better sign of spring and a new growing season is there than asparagus? Take some to a radio station and get them talking about it or take some of your best spears to the right bloggers. If you are too busy on the farm hire someone to do this. If these people try the product and talk about it they can be as powerful as an in-store demo. The other part of removing the risk is to guarantee your product. Most people would do this now but they do not talk about it. Remove the risk for the consumer in their mind at the point of purchase. We have to think differently.

2)    Ads will probably be a part of the retailer’s strategy but there is a real chance item count will be less to reduce the complexity and cost of the programs. Ads do a few things for your products but they also cost money, which you might be able to save or reinvest.  Retailers will still run ads to drive traffic with front-page items. The inside blocks that are designed to drive execution in store, create awareness with consumers and deliver value will be reduced. We need to find alternatives to deliver in-store merchandising, build demand and deliver value.

Discuss merchandising plans with your customers and try to get them to agree on what it will be. They are stretched in store as well but the conversation is shifting from surviving this to operating in it. You also need to create awareness in different ways. Perhaps you have to invest some of your ad pricing in more traditional forms of advertising or social media. Delivering value can be accomplished with loyalty programs or in-store specials. You can’t invest more but you might have to reallocate your spend. 

3)    Consumers want to know more about your products. There has been a desire to support more Canadian products and I believe the current situation accentuates this. You need to tell your story even better and make sure people know your roots. Consumers are looking for good news stories. Share some insights into what you company is doing and tie it to your brand. Some people might say you shouldn’t take advantage of the situation but I would argue if your employees are doing good/great things, celebrate them and they will benefit when your product sells more. The story of your product, your brand and your people can influence sales now more than ever.

4)    People are home and they are cooking/baking more. Find uses for your product and help them figure out what to do. Many times I would hear producers and processors talk about “if people only knew how to cook” or “how can I get them to use the products?”  Now is the time, they are home and doing things differently. Comfort food is making a comeback so help them figure out how to make those recipes. You can deliver recipes on pack, on your website, via social media or even mass advertising. Many producers and processors have done recipes, now those who do it really well can sell more products.

5)    Remember the people in the store. You can't visit the store like you used to. Retailers are asking you to stay out of the stores unless you are in there to deliver product. You can still communicate with the people in the stores. A simple note in your case of product to say “thanks for going to work and putting our product out on the shelf” will go a long way. Think about the changes people working in retail have had to endure so it would be a great time to send a message to them in your cases of product. You never know they might give you some extra space! We have to find different solutions to deliver the objective.

There are many more opportunities out there. It is important to shift the mindset first and ask “how do we drive sales in this environment?”

If you have any questions about driving sales in the new environment please give me a call at (902) 489-2900 or send me an email at peter@skufood.com.   

WHAT’S IN STORE?

Limits

It is common in stores right now to see retailers limiting quantities on certain items. This is something we have not experienced, aside from deep discount ad items. They are limiting purchases to allow more consumers to have a chance to purchase products. The supply chain is very volatile right now so if you see a product with a limit and you know there is a lot of supply, think before you take action. The appropriate action is to contact the person, perhaps that is you, who has the direct relationship with the retailer. Explain the situation and try to find a solution. Do not post it on social media and contact your member of parliament. This is the time to build relationships, not break them down.