Starbucks: Marketing Mission

With more than 1,000 layoffs, 600-plus store closings, competition from new concepts discounters the likes of McCafe, what is the future for the Iconic American Caffeine Giant Starbucks Coffee Co.?

After a two day, fast track immersion in Coffee College  - bean brainwash, and learning all about the “Starbucks Way” -   my perception of what I once may have referred to as the “over roasted , over priced, omnipotent (I mean, who else would be so bold as to have two stores, identical twins,  on opposite street corners?)”  have made a complete reversal.

As a self-professed Java Junkie, I felt my senses were assaulted when I walked into Starbucks. They have always seemed to have a flavor profile that wasn’t of my liking. It is hard to believe that this Goliath of business and marketing never really got its message across. And I don’t know if it’s the caffeine speaking here or the influence of the smiling Starbucks partners I’ve been hanging with this week – but I have to say that the true story, the background, the brain child of Howard Schultz and his ultimate philosophy needs to be told. So many good deeds and practices should not be a secret.

 

 

 

 

 

 

(Starbucks' Coffee College graduating class)

 

 

 

 

 

 

 

 

 

After hours of classroom, numerous charts, way too much coffee, lots of slides and discussions with buyers, agronomists and a chance meeting with the man, Howard Shultz, there are four parts or rules or philosophies in the Starbucks business model:

1)      Buy and produce the best quality coffee possible

2)      Be socially aware of all those who are affected in the process

3)      Be environmentally conscious in the growth, development, production and process of the coffee business

4)      Make a profit

I believe I have these in descending order of importance. Rarely, was profit a tagline or bench mark in any discussion, the coffee was always the goal.

The bean, it’s always Arabica, is Starbucks’ quality choice. Of the two commercially produced varieties, Arabica and Robusta (normally favored by Italians), the Arabica is generally considered to produce a better cup of coffee, more complex and less harsh. Still, by no means does that mean that there are no good Robusta or bad Arabica.

 

The best Arabica beans, a Gardenia Evergreen tree, not bearing fruit before 4-5 years of age are grown in higher altitudes, steep slopes in varying degrees of shade and sun. All the beans are hand picked and purchased from established partners, trusted farmers and CO-OPS, that are monitored and follow a strict line of growing, harvesting and processing practices. These CAFÉ practices (rules) for all Starbucks partners are insured by the SCS, an independent third party. The CAFÉ (see more at STB.com) practices also establish labor policies that the partners must

adhere to, to include no child labor. Once these “cherries” (coffee fruit) are picked they can be processed in three ways: washed, semi washed or natural.

 

The washed process involves forcing the “cherries” thru a mill, manual or mechanical, to remove the shin and pulp. The green beans, which are still covered in a silver skin husk, are washed, strained and then left to “ferment in concrete pools for 12- 36 hours, at which point the greens beans are spread out to dry on tables, racks, mats or any flat, sundrenched area available. During the ferment, the contact of the beans to one another creates a reaction that softens the silver skin, containing the bean and also develops the “acid”’ a good thing, in the green coffee beans. I also learned some coffee vernacular, being a chef of 25+ years; ferment and acid are rarely good, unless speaking of citrus, kimchi or wine! The ferment, along with drying times is determined by each farmer and coffee variety.

 

The semi- washed method is like the washed, save the fermentation step. After milling and washing, the fruit goes directly to drying. The Natural/ Sundried method is like raisin farming, the fruit is left on the tree completely ripen brown and wrinkle. The raisin like cherries are then picked and laid to dry in the sun. This method was thought to be reserved for the lesser quality coffees, but is now gaining popularity with specific regions and varieties. Some of the most expensive, single variety, robustly fruited flavor coffee, such as Ethiopian Yirgacheffe, is processed, or less processed, in this manner.

 

Starbucks, with its highly trained, minimalist team of tasters and blenders - determines the quality of the bean and roasts all of their coffee. All coffees, before commercially roasting and blending begins, are test-roasted and tasted at Starbucks, then test-roasted on-site at the farm/COOP and test-roasted again at delivery, to insure the quality.

 

Part of the philosophy is to build trust with the farmers, conduct business ethically and support the partners to extraordinary lengths. Starbucks routinely pays the highest price to farmers, ensures the stability of the land and peoples thru programs for health, education, land management, monetary loans and progressive farming techniques. Starbucks Farmers Support Centers, made up of scientists and agronomists, who work to increase product knowledge, quality and business viability of small scale coffee farmers. This support, not previously available, is a step towards ensuring the sustainability of coffee, its producers and environments. The coffee regions, generally third world or developing countries, who in the past have been taken advantage of, How can we help them grow more coffee without cutting more forest, how can we pick more coffee without abusing their labor force? These questions and many others are asked and addressed by the Starbucks Philosophies. I was amazed that the support is offered, at no charge to all farmers, not only those that are “partners”.

A specialty coffee giant, Starbucks purchases 3% of the world’s coffee under its own CAFÉ guidelines, much of which is Fair Trade. Considering that the U.S. is the number one consumer of coffee (Brazil is second), Starbucks doesn’t seem so big. Coffee is also the second largest traded commodity in the world, though quite far behind the No. 1 – which is oil. The company purchases more than 385 million pounds of green coffee beans annually (40 million pounds of which is Fair Trade) for its 16,000-plus outlets and retail CPG programs. These daunting numbers provide another perspective when you consider what has Starbucks given back, over and above, as of fiscal 2006 (according to its 2008 company fact sheet):

 

1)      $36.1 million in cash and product donations

2)      Volunteered 383,000 hours in communities

3)      Quadrupled their renewable energy purchase to equal 20 % of the energy used to operate stores in the US and Canada Plus many other improvements and innovations to better manage their business footprint and impact on local communities and the world.

 

Back to the cup at hand – the Seattle tasters – a 15 member team, incessantly cupping, a marathon “spit fest”, taste 400 cups of coffee a day, to determine the best roasts, and blends for the Starbucks line. These coffee aficionados, taste titans, determine the flavor profiles and then rely on the Starbucks bevy of master roasters to duplicate the sample quarter-pound batch the tasters create, into a master 800 to 1,000 pound quantity. Sumatran, Ethiopian, Kenyan, Hawaiian, the list goes on.

As a person who professionally tastes things, it is an intimidating task. My palate and head were wiped after a little four variety tasting. Even the taking the simple math of five coffees, the bevy of combinations that can be blended matched with the innumerable roasting variations, the most pivotal point of the entire exercise, from plant to cup, is mind boggling. Starbucks feel that the tasters decide the coffee, but the roasters make it. The point at which the green beans turn yellow to orange to brown to black is where the ultimate flavor is found. This ideal of the best resource, the best bean, the best practice, the best coffee is all for naught, without the best roast. And yes, it is a dark roast, on purpose.

 

With their new Pike and 1^st street store open, a LEED certified space that is the epitome of energy and water efficiency, it was created with  99% reclaimed materials and still boasting those famously comfortable chairs and atmosphere.  Starbucks is getting back to its heritage and working on letting the public know its true message. They are a coffee company with a mission – and it’s not to take over the world. It is a mission of ethical sourcing, quality roasting and the high-quality standards of freshness in Starbucks' coffee beans.

 

The new ‘heritage’ store is one of three new ‘palettes’ Schultz’ says are in development with designers. The new Seattle model boasts new in-store machines with added efficiency while producing the “perfect” cup. Like a wine cruvinet, the new CLOVER machine, produces small batch, single region/varietal coffees in individual cups. The use of ceramic “For Here Ware” mugs for in-house consumption and chalkboard menus add a local relevance. For me, the new-old store adds to the neighborhood, coffee shop feel, a gathering spot, a comfortable place to relax.

 

I certainly have a new found respect for Starbucks and the man behind them - Starbucks' chairman Howard Schultz. He is the “no I in team” type, his social awareness and business ethics invigorate the company. When he came into the room for our Coffee College graduation, he said, “There are no zealots here.”

I would respectfully disagree. The Seattle eadquarters is packed with zealots. And coffee college may have produced a few more.

Schultz, who built the global empire from just a handful of branches in Washington state, has an infectious, laid back style that exudes comfort. Even when pressed by us reporter types, looking for some “dirt”, proposing tough questions, Schultz smiled, gave a slight laugh, pensively committing to answer, never seeming vague. In the end, Starbucks’ record is clear; the respect which is shown for their employees and partners, their commitment to the environment and their steadfast vision to put people before profit, which in turn will sustain the bottom line is smart and admirable.

In this day of “haves and have-nots”, thoughts of The Great Depression, Global Warming and of running ourselves to extinction, a “Big Player” is making the right move and has been, since 1971. Apparently, we just didn’t know it.

                     

Easy Drinking: France’s Georges Duboeuf Gets a Make-Over

Spring and Summer time often bring me to drink white and rose wines although I confess that reds are my real favorites. I drink large amounts of Italian wine but the real truth is that I was a Francophile long before I became a die-hard Italophile. In my home, everything French was considered to be superior, from the wines to the food to the art and much of the literature. When I was young, I remember my father always talking about how life was so much better in France. We went to France often as I was growing up and I felt very at home in that culture. Returning to the States, we could always bring a little of France home by going to the store to some buy some chevre and  a bottle of Beaujolais by Georges Duboeuf, a name synonymous with the Beaujolais region for decades. I was a French major in college and lived in Dijon in Burgundy for eight months but I rarely have had a wine from Georges Duboeuf in the ensuing years. That is, until a tasting in late April. Boy was I missing out. The tasting was held in the swank Astor Center and was the pre-release of their 2008 Beaujolais Cru with stylish flower labels as part of the new Georges Duboeuf campaign called Style and Substance, officially launched on May 1, 2009. Many activities are planned throughout the year to re-introduce Georges Duboeuf wines to the U.S. market. This make-over of Duboeuf is interesting as he is the premier producer of Beaujolais in the the world, controlling 20% of the market. He works with 20 cooperatives and over 400 growers and his wines are distributed in 120 countries. Georges Duboeuf started early in the business, bringing his wines around to chefs in his region by bike at a young age. He became a negociant in 1964. French wines have taken a back seat for the first time in a decade to Italian wines in terms of exports to the US. Perhaps Duboeuf will lead the way in garnering more attention for medium priced French wines. The Duboeuf wines retail anywhere from $12.99 to $17.99, a favored price point during this ongoing recession.

 Beaujolais is in the southern portion of Burgundy. The soils vary in terms of the hillside and the valleys. The cru wines come from the hillier regions with schist soil while the area where Beaujolais and Beaujolais Village come from tends to have more clay and limestone.  Georges Duboeuf and his son Franck said at a press conference in April that this year was the smallest harvest since 1995 but that they grapes were very healthy thanks to considerable sorting in the vineyards. In a press release, they said, that it is their impression that “due to smaller yields, the structure of the 2008 vintage has resulted in perfectly balanced and fuller bodied wines.”

We tasted many of the 10 cru wines of Beaujolais as well as a few white wines from Macon-Villages and Pouilly-Fuisse. I was pleasantly surprised by all of the white wines and enjoyed the Chardonnay both from Macon-Villages and Pouilly-Fuisse thanks to its ovely minerality and lively acidity. My favorite though, was the Saint-Veran with its clean citrus notes and white flower aromas. It was persistent and had a long finish as well. The whites were all in the $12-$24 dollar range. At $15.99, the Saint-Veran seemed to call out to me,

The big guns at the tasting were undoubtedly, the red wines of the Beaujolais crus. Ten in all, we tasted seven of them from the Georges Duboeuf portfolio. All Beaujolais whether it be Beaujolais Nouveau, Beaujolais, Beaujolais Superieur, Beaujolais Villages or a Beaujolais Cru is made 100% from the Gamay grape, a thin skinned grape which tends to produce a lively and fruity wine, Beaujolais is made using a technique known as carbonic maceration where whole grapes are pressed and CO2 is added to the tank to create a hermetic fermentation period. Gravity is used to aid in pressing the grapes and the weight of the top level of whole bunches of grapes eventually draws out the juice in the lower level of grapes. The ones that haven’t turned into juice are eventually lightly pressed and the wine that results in light and fruity, often with a strawberry, banana aroma.

The crus of Beaujolais, include Saint Amour, Julienas, Chenas, Fleurie, Moulin-a-Vent, Chiroubles, Morgan, Regnie, Cotes du Brouilly and Brouilly, are made using traditional red-winemaking techniques not carbonic maceration but longer fermentation periods. Each cru is renowned for a different aroma and it is said that Moulin-a-Vent and Morgon are the most long lived. George Duboeuf said that each year one of the cru stand out and that this was the year for Brouilly.  Many people prefer Brouilly and Morgon to the other crus. I found all of the wines delicious, some more elegant and feminine than others. I was quite partial to the Chiroubles with its red fruit flavors, minerally, elegance and finesse and to the Fleurie which had a spectacularly long finish and aromas of black fruit, violets, dried roses and cassis. We tried two different Fleurie, the Georges Duboeuf 2008 Fleurie and the Georges Duboeuf Clos des Quatre Vents Fleurie 2008, which was slightly more expensive at $16.99. This wine had very fine tannins and was nicely round on the palate. The Morgon and the Moulin-a-Vent were also lovely but needed a bit more time. They were slightly bigger wines than the delicate Fleurie and Chiroubles to which I am so partial. All in all, the event was lovely and felt like a bit of Spring in France despite the New York streetscape. Georges Duboeuf was presented with a huge birthday cake  for his 76th by the members of a Beaujolais society, les Campagnerons du Beaujolais, an organization that promotes Beaujolais.

Reflections on an Icon

Celebrating a wedding anniversary can be a tricky thing. People always ask, what are doing to celebrate, as though anything less than picnicing on the Great Wall or flying to Paris for dinner at Taillevent would be a testament to infidelity. We missed last year's anniversary, our tenth, when I suffered a back injury that laid me up for several weeks and even forced me to miss an important trade show. I had made reservations at Chez Panisse, a world-class restaurant, an icon of gustatory marvels, that happens to be a local eaterie for us, albeit one that finances only allow us to indulge in once in a while. I kept insisting as I lay grimacing in pain that I would be alright and could make dinner, refusing until the very last to call and cancel our reservation. My back healed, I made a reservation again, intending to recreate what would have been last year, and it was a resounding success. The dinner was perfect as it so often is at Chez Panisse, and it got me to musing on the nature of this famous restaurant, why it's so special, and more importantly, why so many people still don't get it.

Some foodies who make a pilgrimage to Berkeley to eat at Chez Panisse have come away disappointed because they expected tall, architectural dishes, stacked food with a myriad of ingredients coaxed into a perfect state of succulence by a chef who is part Jacques Pepin, part Dumbledore. In fact, thefood tends to be quite simple in both preparation and presentation. Not that the cooks at CP are not highly skilled. Quite the contrary with cooks venturing from all over the country to gain experience cooking there. The simplest way to put it is that CP is all about the ingredients. With close ties to the many farmers, ranchers, bakers and cheesemakers within a hundred mile radius of Berkeley, foods are delivered to CP at their best and peak of ripeness, whether it's a radish or a piece of soft-ripened cheese. My dish, made with handmade pasta (CP makes all their pasta by hand every day) with what was described as a chicken ragu. The sauce was light as could be and the spring peas were still sweet from the field as thought ey had been picked only minutes before. We both began with something I had never seen on the CP menu before, iceberg lettuce with a buttermilk dressing with chervil. Of course, it was the finest iceberg lettuce I had ever had (I can't remember the name of the farm since when I got home I realized I had taken the dessert menu instead of the dinner menu!) and the dressing was ethereal, so good that after the salad was gone I mopped up every bit of dressing with the exquisite Acme levain that is ever present on CP tables. My wife had a spring vegetable stew with Indian spices that was sublime. Every ingredient on each of our plates was as close to perfection as it could be without having dinner in the middle of the garden. For dessert there was no spun sugar fantasies, but rather a bowl of "Churchill-Brenneis Orchard Pixie tangerines and Rancho de Lux Medjool dates". Perfect and delicious. We broke down and shared the "Twin Girls Farm cherry tart with vanilla ice cream" that was intoxicating (or was iit the chilled Bandol rose wine we shared for the meal?). This to me is the essence of what I love about the food world. Pristine, organically grown foods, lovingly prepared and served in an atmosphere that is at once warm, inviting and stimulating. I hope everyone gets to try it one day.

Where Local Products Draw Crowds

Local products are getting lots of attention nowadays as consumers look for value and are concerned about safety of imports.  The "localvore" movement has captured the public imagination so I was pleased when I walked into a gourmet food shop recently and was given an invitation to a local product sampling event, which included farmers, and regional specialty food companies that would be in attendance talking about how they grow or make their offerings.

 

The idea got lots of coverage by the local news and 150 people came to the party on a Tuesday night.  They even had an amateur-cooking contest where customers could prepare dishes from select local ingredients.  The entrees were voted on by the crowd who paid $10 to eat and judge the plates.  The winner got $100 and the balance of the money went to a food bank charity.

 

This grass roots marketing promotion borrows from ideas people see on the Food Network and in the news.  So get creative and host your own local sampling event and add a Fondue Takedown or Risotto Challenge.

Failure to Success

Challenges Foster Innovation, Specialty Poised Benefit from Change

"Innovation is so much more than new products. Innovation is part of the whole business, that's the way we fight our way out of this," Nielsen’s President/CEO, North America John Lewis explained during The Nielsen Company's Consumer 360 Conference in Orlando.

So what is the true root of innovation?

 

Yesterday, I quoted David Bowie in my post about changes the industry faces. Today, author Malcom Gladwell [Tipping Point, Blink and Outliers: Why Some People Succeed and Others Don’t] stepped onto the stage and began talking about Fleetwood Mac.

 

Fleetwood Mac is often referred to as a band that became an overnight success. Instead theirs is a story of a band that went from failure to success. It is their effort that brought them success, not mere chance. Rumors was their 15^th album.

 

“I had assumed this was an overnight success. But it took 10 years for them to get to the top,” Gladwell said, adding that to achieve mastery you have this long period of gestation - the 10,000-hour rule.

 

“It is impossible to master any cognitively complex activity without spending 10,000 hours of practice on that activity,” he explained.

 

That’s 10 years of practice.

 

“I wonder, while we were in the last 10 years of this bubble where things seemed to be happening magically, whether we have fallen into the trap that effort isn’t in the center of mastery,” Gladwell questioned. “When you ask American kids what it takes to be good at math, they’ll tell you it is something you are born with, it’s innate not learned…Is this a problem confined to mathematics? I don’t think so.”

 

Gladwell illustrated his point with American Idol which fosters the idea of the overnight sensation, become a star in the next 10 minutes.

 

“It is so profoundly false and so profoundly toxic. And I cannot help but thing that this is a behavior that is seeping into our business culture,” he exclaimed.

 

There are two very different learning strategies. The first is Capitalization, where you build on your strengths and grow toward success. The second is the Compensation strategy, where you compensate for your weaknesses.

 

“You are given a series of disadvantages and overcome them to build on your value,” Gladwell explained. “This is the more valuable strategy. You see a very different quality coming from people or businesses that follow the compensation strategy.”

 

People who are willing to work harder to overcome their limitations succeed. In illustrating his point, Gladwell noted that one-third of the most successful entrepreneurs have been diagnosed with a learning disability. They have acquired, while overcoming their disability, a set of skills critical to the business world - leadership, problem-solving, oral communication, and delegation.

 

 “The Compensation strategy is a better route to greatness than the Capitalization strategy… We are at a moment when compensatory strategies are all we are left with. They are not obstacles to creativity, they are highways to creativity,” Gladwell concluded.  “I worry we have lost sight of the notion that the root to achieving something of value requires failure along the way. There is no way that Fleetwood Mac could have made it today. We would never wait 15 albums for success. We would not even wait one album to see promise. And I cannot help but wonder…Is that kind of attitude costing us of all sorts of genius and innovation?”

 

As this industry faces a new set of challenges – of disadvantages – those ready to harness their energy, their teams and work harder to meet the demands of consumers and the new social structure of the shopping environment are on a track for success.

Changes: Consumer Perspective

Collaboration is the theme vividly painted at The Nielsen Company's Consumer 360 morning kick off, as attendees found themselves consumed in data illustrating a continuously changing consumer mindset, fed by an ongoing shift in consumer psychology. And the message was clear from the start: collaboration at the retail-vendor level will be key the successfully navigating this challenging, changing landscape.

 

The grocery industry, indeed all of retail, is caught in the turmoil described in David Bowie’s 1971 classic “Changes.” Ch-ch-changes...turn and face the strain…Ch-ch-changes…just gonna have to be a different man. And while Bowie may have focused on the compulsive nature of artistic reinvention, the retail industry is focused now on its own reinvention – and that of today’s consumer.

Almost as if echoing Bowie’s own theatrical presentations, The Nielsen Company collaborated with Infinia Group to create a multi-media experience, entitled “Consumed: The Economy Hits Home.” The dynamic learning platform brings guests into the minds of consumers with a series of video screens – streaming messages, visions, pictures, thoughts and observations, and of course, cutting-edge Nielsen data -- combined to paint an exhibit of Mark Leiter [President, Professional Services] and John Lewis’ [President & CEO, North America of Nielsen Consumer, North America] analysis Consumer or Consumed: Achieving Clarity in an Uncertain World.

 

 

Viewers of Consumed literally walk through Nielsen’s data and the consumer mind, sharing the latest perspective on how macro forces in today’s unpredictable economy are shaping consumers’ attitudes and behaviors. The fact is that today’s consumer is stressed, but the fact still remains that consumers are still actively shopping, buying and using a wide range of essential products. How the industry chooses to move ahead in the most productive manner is critical.

 

“Navigating through this new landscape requires bold leadership coupled with a sophisticated, analytical edge, one that allows you to see around the next corner and spot the many new options for growth as quickly as possible.”

 

Consumed spotlights nine chapters or elements to navigate– Contrast, Changes, Coping, Challenges, Channels, Choices, Competition, Clarity and Curiosity. In a blitz of media messages, the participant’s vision becomes clear - change is inevitable and welcome. The mission now is to get close to our consumers as an industry, understand and service their needs.

 

Key points include:

• The American dream is enduring, although that dream was just heavily edited.
• Most Americans can still afford the essentials: food, clothing and shelter.
• Living a healthier lifestyle isn’t a passing fad or fashion
• Consumers are creatively redefining the media landscape.
• Long-term demographic forces will continue to created unprecedented growth opportunities.
• The home is quickly becoming the centerpiece of eating, entertainment and work.
• Discount shopping has become a full contact sport.
• Trading across (or out) of categories are today’s most important consumer decisions.
• Trading down (or over) to private label brands continues to gain momentum.
• Value messaging loses its meaning if everyone adopts the same positioning.
• Consumers may be ready for fewer, simpler and more meaningful choices.

Manufacturers and retailers need to keep focused on what’s changing and just as importantly what’s not changing. For exampled, in the world of private label, Nielsen reports that 62% of consumers agree private label is just as good as national brands and 90% say they are comfortably served by those private label options. Still, national brands continue to serve the consumer.

Beyond the flashing screens of the Consumed exhibit, Lewis reinforced these visions in  his opening remarks, noting the industry must focus not only on their own “micro-wars” of local competition but on the “macro-war”  being waged in other economic spheres such as restaurants and spas. As consumers shift discretionary dollars from outside dining experiences and salon treatments, how is the grocery industry responding?

“What are you doing to make this an opportunity for you?” Lewis questioned. Finding clarity in the challenges ahead will make this an industry that leads change rather than one consumed by it.

Consumed – the video experience - will be available on Nielsen.com in the coming weeks. Stay tuned.

 

 

Changes: Consumer Perspective

Collaboration is the theme vividly painted at The Nielsen Company’s Consumer 360 morning kick off – as attendees found themselves consumed in data illustrating a continuously changing consumer mindset, fed by an ongoing shift in consumer psychology. And the message was clear from the start: collaboration at the retail-vendor level will be key the successfully navigating this challenging, changing landscape.

 

The grocery industry, indeed all of retail, is caught in the turmoil described in David Bowie’s 1971 classic “Changes.” Ch-ch-changes...turn and face the strain…Ch-ch-changes…just gonna have to be a different man. And while

Bowie

may have focused on the compulsive nature of artistic reinvention, the retail industry is focused now on its own reinvention – and that of today’s consumer.

 

Almost as if echoing Bowie’s own theatrical presentations, The Nielsen Company collaborated with Infinia Group to create a multi-media experience, entitled “Consumed: The Economy Hits Home.” The dynamic learning platform brings guests into the minds of consumers with a series of video screens – streaming messages, visions, pictures, thoughts and observations, and of course, cutting-edge Nielsen data -- combined to paint an exhibit of Mark Leiter [President, Professional Services] and John Lewis’ [President & CEO, North America of Nielsen Consumer, North America] analysis Consumer or Consumed: Achieving Clarity in an Uncertain World.

 

Viewers of Consumed literally walk through Nielsen’s data and the consumer mind, sharing the latest perspective on how macro forces in today’s unpredictable economy are shaping consumers’ attitudes and behaviors. The fact is that today’s consumer is stressed, but the fact still remains that consumers are still actively shopping, buying and using a wide range of essential products. How the industry chooses to move ahead in the most productive manner is critical.

 

“Navigating through this new landscape requires bold leadership coupled with a sophisticated, analytical edge, one that allows you to see around the next corner and spot the many new options for growth as quickly as possible.”

 

Consumed spotlights nine chapters or elements to navigate– Contrast, Changes, Coping, Challenges, Channels, Choices, Competition, Clarity and Curiosity. In a blitz of media messages, the participant’s vision becomes clear - change is inevitable and welcome. The mission now is to get close to our consumers as an industry, understand and service their needs.

 

Key points include:

 

• The American dream is enduring, although that dream was just heavily edited.
• Most Americans can still afford the essentials: food, clothing and shelter.
• Living a healthier lifestyle isn’t a passing fad or fashion
• Consumers are creatively redefining the media landscape.
• Long-term demographic forces will continue to created unprecedented growth opportunities.
• The home is quickly becoming the centerpiece of eating, entertainment and work.
• Discount shopping has become a full contact sport.
• Trading across (or out) of categories are today’s most important consumer decisions.
• Trading down (or over) to private label brands continues to gain momentum.
• Value messaging loses its meaning if everyone adopts the same positioning.
• Consumers may be ready for fewer, simpler and more meaningful choices.

 

Manufacturers and retailers need to keep focused on what’s changing and just as importantly what’s not changing. For exampled, in the world of private label, Nielsen reports that 62% of consumers agree private label is just as good as national brands and 90% say they are comfortably served by those private label options. Still, national brands continue to serve the consumer.

 

Beyond the flashing screens of the Consumed exhibit, Lewis reinforced these visions in  his opening remarks, noting the industry must focus not only on their own “micro-wars” of local competition but on the “macro-war”  being waged in other economic spheres such as restaurants and spas. As consumers shift discretionary dollars from outside dining experiences and salon treatments, how is the grocery industry responding?

 

“What are you doing to make this an opportunity for you?” Lewis questioned. Finding clarity in the challenges ahead will make this an industry that leads change rather than one consumed by it.

 

Consumed – the video experience - will be available on Nielsen.com in the coming weeks. Stay tuned.

 

 

 

 

Dim Sum Days Continued

My wife, who recently added Chinese cuisine to her ever expanding culinary prowess, decided to put on a dim sum feast to celebrate our daughter's engagement. The 2 test runs went well as did the excursion to 99 Ranch (or Ranch 99, I'm not sure which), an Asian supermarket in the Pacific East Mall located in the adjacent town of Albany. 99 Ranch is a cook's fantasyland, with aisle after aisle of exotic foodstuffs including an entire aisle devoted to noodles in every form imaginable (Italy's got nothing on China) and a fresh seafood department that looks like the Monterey Aquarium with all kinds of strange and familiar fish - big and small - swimming in tanks, and as many again lying out on ice appearing as thought they had been caught that morning. And so we gathered rice vinegar, bean pastes, preserved beans, sesame oil, wonton wrappers, rice paper wrappers, water chestnuts, and so on, enough to make Marco Polo's head spin.

Yesterday (Sunday) was the big day and so, armed with several towering bamboo steamers, a brand new wok, and a bevy of beauties assisting her in the kitchen, Sydney turned out an array of delicious and beautifully wrought dim sum throughout the afternoon, much to the delight of the three dozen or so guests whom I meanwhile plied with sangria in the garden (sangria? with dim sum? believe me it worked). There were steamed pork ribs, siew mai dumplings, steamed Shanghai dumplings, flower dumplings, pot stickers, steamed barbecue pork buns (with her own whole wheat pastry flour dough that she adapted - fabulous), spring rolls, Crispy wonton-wrapped shrimp, amazing steamed rice balls, a giant salad made of mung bean sprouts, peppers, herbs and I don't know what else. She put our son Alfie in charge of making several sauces for dipping, including sweet cilantro dip, ginger soy dipping sauce, chili sauce, plum sauce, and an exquisite lime fish sauce. There was dessert as well. Adapting a mango pudding recipe, she used some sample products that I had received for review to marvelous result. I had been sent 8 different flavors of fruit puree from Perfect Puree of Napa Valley and these were used in place of fresh fruit, but not so you would notice. And so in addition to the traditional mango flavor we had strawberry, passion fruit, peach, blood orange and pomegranate, along with a topping she devised, a raspberry whiped cream. When it was all over and the last guests departed I found my self wondering if they really eat this well in China. Someday I'll have to go to China and find out, but for now I'll be quite happy with our Berkeley-style dim sum. Now, what will we do for the wedding!?

  

Discovering Seasonal Beers

"We could not now take time for further search . . . our victuals being much spent, especially our beer." 
- Diary entry from the Mayflower

I think America's earliest settlers would have enjoyed the wide variety of beer we have in this country today. I know I do.

Anheuser-Busch is well known for our world famous Budweiser and Bud Light beers, two of the best-selling beers in the world. But one of the great pleasures of being an Anheuser-Busch brewmaster is the opportunity to experiment with new recipes and beer styles.

Most recently, we’ve been able to create a seasonal beer line – special batches of beer crafted to complement the changing seasons. I want to introduce you to two seasonals from our Michelob Brewing Co. – Hop Hound Amber Wheat for spring and Beach Bum Blonde Ale for summer.

Hop Hound Amber Wheat

An unfiltered amber wheat ale, Hop Hound has a slight caramel sweetness and refreshing citrus note.  It’s brewed with Cascade and Willamette hops from the Pacific Northwest and imported Hallertau hops from southern Germany. The amber wheat ale gets its tawny hue from its blend of caramel, wheat and pale barley malts.

I think that a tall, wide mouthed glass is the best way to serve Hop Hound. It opens up the aroma of the beer and best showcases its long-lasting head of white foam. Hop Hound’s full texture helps it stand up to spicy foods, such as Thai noodle salads and Cuban sandwiches.

Beach Bum Blonde Ale

Beach Bum Blonde Ale is brewed with Cascade hops from the Pacific Northwest as well as  Hallertau hops from Bavaria.  It’s the hops that give it its slightly spicy, light citrus note that makes it pair perfectly with summer dishes.

To brew this beer, we also use a technique called dry-hopping. Normally when you brew a beer, hops are added only to the brew kettle. Dry hopping a beer involves adding extra hops to the cold aging tank. This increases the hop aroma of the beer.

I recommend a traditional style pub glass for serving this beer. This style of glass helps open up the fruity, citrus hop aromas of the beer and showcases its beautiful golden color. Beach Bum’s bitterness and citrus note match well with citrus foods such as fresh salads with vinaigrette dressing or a light grilled fish with fresh squeezed lemon.

We all know that beer is a great, refreshing beverage, particularly in warmer weather. A lot of beer styles work well in the spring and summer months, but these are two of the best. Give them a try and let me know what you think. I’d also be interested in your suggestions for what type of food would pair well with these two seasonal beers. Email me at askthebrewmaster@anheuser-busch.com

Cell Phone App Can Increase Sales By Curious Shoppers

It looks tantalizing, but how do I cook it?

A free app from epicurious.com lets gourmet shoppers check how to use ingredients they find in stores with the editors at Bon Appetit, Gourmet and assorted chefs with a few clicks on a cell phone.  There are 25,000 recipes available with searches by ingredient and/or skill level of the cook. By referencing the recipes, shoppers can also create a shopping list on the spot for other ingredients they will need to prepare the dish.

Customers now have a tool they can use when they are strolling the store aisles and end the frustration they feel when confronted by a product they never tried before.  Check it out at epicurious.com

Ron Jakubisin

jakubisin.com