FreshIncite July 2016

What We’re Seeing

Peapod and Whisk partner to turn recipes into shopping lists Top

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US online pioneer Peapod has partnered with Whisk.com to turn recipes into online grocery orders. In an attempt to simplify online and harness the array of recipes available online, Peapod and Whisk have combined to create smart shopping lists, from any online recipe across the web. The customer selects a recipe and the ingredients needed are automatically added into their ‘smart’ shopping list. 

This expands Peapods reach and new order generation into being just one click away for all browsers of online recipes.

Whisk was developed in UK with goals centred on connecting consumers with their desired food as quickly and as easily as possible. The partnership with Peapod is just one of their partnerships with a range of retailers. 

This is another example of the technology leverage available to those in online channels where they can rapidly increase sales without dependence on building more infrastructure.

The Food Consumer

Mushroom & Cauliflower steaks at Tesco Top

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The new mushroom and cauliflower steaks available at Tesco are targeting vegetarian consumers attending barbecues. The product launch signifies the UK’s first ever vegetable BBQ steaks. The products are made entirely of vegetables and the cauliflower steak comes with lemon and garlic drizzle, while the Portobello mushroom steak comes with peppercorn sauce.

These new vegetable products bring change to what has been a protein centred meal occasion and the product naming and style presents them as direct alternatives to meat steaks. Tesco are servicing their consumers, many of which are now vegetarian but still likely to enjoy a barbeque.

The Mealpulse panel responses reveal that 14% of Australian household food buyers try to eat mostly vegetarian, which remains unchanged from the previous year. Expanding the meal occasions for cauliflowers can only help generate growth for the Australian retail cauliflower category, which is valued at more than AUD$125m.  

As vegetables enjoy the limelight of a healthy lighter image, these new products expand their involvement in a wider range consumption occasions. 

Retail

Vegetables target the $9.33B Australian snacks market Top

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The widespread snacking behaviour in Australian households has drawn interest from the fresh vegetable producers and marketers. HIA funded research undertaken by Freshlogic has revealed this $9.33B market has a limited range of vegetable snacks on offer and yet there is clear consumer demand for more healthy snacks.  

A core challenge is making these healthy snacks available where the need for snacking arises. This challenge requires a distribution capacity to handle the fresh vegetable product form. Consumers are now buying snack food in new places like their gym and with vending machine technology advancing the distribution options are expanding.  

It is also clear that consumers are seeking ready to eat healthy snacks that require no preparation.

While the size of the prize is substantial it appears the major gains won’t be captured until the capacity to handle fresh product is there.

Technology Frontier

Ad blocking may strangle the newsTop

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The increased adoption of ad blocking software is poised to limit advertising income for the providers of general news. 

The adoption of ad blocking is stronger on mobile devices where the intrusive impact of unwanted adverts is more disruptive to the reader. Therefore the impact is further magnified by the increased use of mobiles for all things internet. This has sparked the free speech champions to propose government funded news services, that haveindependence similar to our legal court system.

If this advertising income from digital media dries up, given the paper version is already facing financial challenges, it could potentially erode the business model that funds the daily news.  

The ad blocking momentum is difficult to arrest, but it seems unlikely that today’s informed consumer will tolerate more layers of spin.  Are we headed toward new ways of keeping informed? 

 

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Freshincite is a publication prepared by Freshlogic

Freshlogic is a specialised provider of food market insights and analysis, with deep expertise in the dynamics of fresh foods. We deliver a range of services to industry and corporate clients, which aim to interpret market and supply chain conditions, or address challenges faced in food supply chains associated with changes in the preferences of consumers, supply dynamics, and economic settings.

For more information on any of our products and services, please contact us on phone (03) 9818 1588 or email info@freshlogic.com.au