To give us the perspective of a grocery chain buyer, we are hosted a discussion with Kelsea Taylor, Manager of Perishables at Hy-vee, a 250 store grocery chain. She is in charge of the sales and profit of the health market department which includes plant-based meat, dairy, and frozen products. She also follows a plant-based diet and related the consumer side with the business side of the category.
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We discussed price sensitivity in plant-based foods and the opportunity for private label to drive the growth in the category further. Hy-vee has run a 10% promotion in the category (highlighted below) that has seen outsized results. End-cap promotions with simple, yet visually appealing shelf placement have also been highly effective in driving sales to consumers trialing the category (also seen below).
Some of the other topics we discussed included the following:
- What trends in plant-based foods have open ended growth opportunities, and what are destined to be niche products?
- Where are the shelf space gains for plant-based foods coming from?
- What is the role price plays in the category?
- What role does private label play in the category?
- How does shelf placement and price points impact sales?
- Which products are the future winners and losers?
- Will there be a reshuffling of market share in milk?
- How did COVID-19 impact plant-based meat and are the shelf space gains sustainable?
- Insights into the promotional and competitive dynamics of the categories.