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GOURMET NEWS DECEMBER 2018 www.gourmetnews.com NEWS & NOTES 1 1 Online Retailers Continue to Make Inroads in Grocery Almost half (48 percent) of consumers in the U.S. now do some or all of their grocery shopping online, while 59 percent are plan- ning to do so in the future, according to KPMG's 2018 Grocery Retail Consumer Perception Survey. "As the online grocery business is expo- nentially taking off, grocery retailers and consumer packaged goods companies (CPGs) alike need to adapt to factors that are important to online shoppers such as convenience and choice," said Mark Lar- son, National Leader of KPMG's consumer and retail practice. "Already operating in low margin environments, winning retail- ers and CPGs should consider innovative approaches in strategic revenue manage- ment, as well as digital and merger and ac- quisition strategies to remain competitive in the online market shift." The survey of more than 2,000 grocery shoppers also indicated that product as- sortment (26 percent) and product qual- ity (25 percent) are of primary importance to heavy online shoppers, outpacing price (18 percent) as a critical factor. However, price still remains rele- vant to online grocery shoppers as price transparency makes less price-sensitive customers more price savvy. "There is increasing pressure to better understand the evolving buying habits and expectations of the growing number of on- line grocery shoppers, but also those cus- tomers that remain in store," said Katherine Black, U.S. Consumer and Retail Strategy co-Lead, KPMG LLP. "This knowl- edge will help grocery retailers and CPGs to successfully find new options to meet their customers' needs." According to the survey, CPGs are also expected to face pressures on trade terms from grocery retailers. As customers are turning to online, retailers would need to invest in creating better customer experi- ences while offering competitive prices – passing such costs on to CPGs. "Online grocery retailers and CPGs need to leverage technologies to simplify and di- versify their supply chain and build their digital brands," Black said. "Implementing multiple digital strategies to accommodate the key shopper segments, from online pi- oneers to the in-store crowd, can improve customer profitability and drive margin growth." GN Natural Grocers Customers Raise Funds to Support Organic Agriculture Natural Grocers customers raised $94,500 for the Organic Farmers Association in Sep- tember to celebrate Organic Harvest Month. The Organic Farmers Association is an organization that represents U.S. farmers in organic farming policy matters in Washington, D.C. and provides grants and research in the field. Natural Grocers shoppers across 19 states made in-store contributions and exceeded a $50,000 tar- get goal by 88 percent. "Organic Farmers Association feels so fortunate to have fostered a partnership with Natural Grocers in preserving oppor- tunities for certified organic family farm- ers," said Kate Mendenhall, Director of the Organic Farmers Association. "This fundraising effort will greatly elevate the national voice of certified organic farmers – ensuring that their policy priorities are heard in Washington and they receive the policy and regulatory support they need to focus on farming good, healthy food." The funds raised will also help provide scholarships to organic farmers to travel to Washington, D.C., where they will receive training for effectively communicating the challenges they see on their farms and those of their fellow organic farmers to federal rep- resentatives and senators. Scholarship recip- ients will have the opportunity to personally meet with their local elected officials. "Our relationship with the Organic Farmers Association is an extension of Nat- ural Grocers' commitment to providing consumers with access to high-quality nat- ural and organic foods at affordable prices. When you purchase organic food, you're supporting local, organic farmers and fos- tering a healthier environment," said Kem- per Isely, co-President of Natural Grocers. "We are proud to partner with the Organic Farmers Association to help amplify the voice of certified organic farmers." There are more than 18,500 certified or- ganic farmers in the United States, and 96 percent of them are small businesses. "In- creasing the numbers of real organic farm- ers entering the halls of Washington makes a large impact and helps keep the needs of real farmers at the center of sustainable food and agriculture policy," said Mendenhall. GN

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