Consumers looking to return to the grocery store (KR)
A survey from ChaseDesign shows that about half of grocery shoppers utilized online ordering for store pickup during the pandemic restrictions. Still, only half of those customers will continue to shop that way in the future. 54% of respondents said they preferred to pick items in-store, and 40% said they wanted to shop in brick & mortar stores. Nearly half said they would not purchase meat or seafood online for pickup. In addition, 40% said they avoid purchasing dairy, produce, and frozen products online. Consumers also experienced issues with the service. 40% of respondents said they waited 10 minutes or more for their orders. 90% of respondents said they still go inside the supermarket when picking up their orders. Online grocery shopping quickly gained popularity during the pandemic, but many shoppers would like to have their lives return to “normal.”
The growth in grocery delivery providers and their convenience ensure that the share of online grocery will not return to pre-pandemic levels. We are hosting a black book today at 10 AM ET on DoorDash, one of the online delivery companies. CLICK HERE at the time of the event for the webcast and materials.
South Africa’s 4th ban (BUD)
South Africa instituted its fourth alcohol ban on Sunday night. The sale of alcohol for both on-premise and off-premise is now banned. The current restrictions are set for 14 days. The country is one step below full lockdown as it seeks to stem the surge in Delta variant COVID-19 cases. The President said the move was necessary to ease pressure on hospitals from emergency measures related to drinking. South Africa has had bans on alcohol from March 27 - June 1, July 12 - August 17, and mid-December – February 2021. According to Euromonitor, South Africa’s illicit alcohol industry has grown at a CAGR of 17% since 2017 and has reached 22% of total market volumes. South Africa is the 12th largest beer consumer globally, and AB InBev has nearly 90% of the formal market share. South Africa also had the most COVID-19 infections and deaths on the continent.
Greenhouse acreage growth (APPH)
For the past decade, U.S. consumers have increased their demand for year-round produce. From 2009 to 2014, the greenhouse area to grow peppers increased 186%, while the space for cucumbers increased 83%. The amount of greenhouse area dedicated to cucumbers declined 42.4% from 2014 to 2019. The area for peppers declined 29.6%. In comparison, the area dedicated to tomatoes increased 23.4%, while for lettuce, the area increased 27.7% over the same time period. What happened between 2014 and 2019 was significant growth in imported greenhouse-grown produce. The increased supply has led to pressure on domestic prices.
Consumers have grown accustomed to producing delivered year-round instead of by season. Greenhouses are a way to grow produce out of season, as is importing from warmer climates. Of course, farmers in warmer clients can also utilize greenhouses and lower labor costs.
