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Communication front of mind for Don Greg Wooller, Head of Grocery Sales at Don, says communication is a key opportunity for the smallgoods category in both the deli and dairy case. “Whether it’s around signalling the key elements of the category (ie, breakfast, sandwich, snacking or entertaining) or helping shoppers navigate the different types of cuts and sources of meat, communication will continue to play an important role,” he said. “The best delis across the market are engaging and provide real theatre. The staff’s knowledge of their products and ability to upsell and/or cross-sell are crucial in delivering the experience. With a higher cost to serve (labour, electricity, refrigeration) the deli needs to deliver a higher dollar per kg return than the dairy case.” To improve the shopability of the pre-pack smallgoods category, says Mr Wooller, understanding the key occasions of the category is important. “The category is dominated by the breakfast (bacon) and sandwich fillers (sliced ham/salami) occasions,” he said. “Bacon is the traffic driver of the category, due to its high household penetration, and with its versatility in cooking usage it should be blocked together and positioned adjacent to meal makers (diced bacon, shredded ham, pancetta, chorizo). “Everyday sliced meats encompasses sliced ham, poultry, beef and pork. These should be positioned next to sliced salami, as they’re also used in sandwiches, which then flows into snacking/entertaining (salami sticks, prosciutto and platters). “POS signage at-shelf supporting the occasion-based layout encourages usage versatility of the category and can therefore drive growth to the category.” Bertocchi drives growth with quality and innovation Indications imply that serviced deli in Woolworths and Coles is “relatively flat or in decline”, says Bertocchi Marketing and Merchandise Manager Tony Rapone. “However,” he said, “our new Bertocchi Continental products are generating category growth in Woolworths.” Mr Rapone also notes that while ham and bacon are both tracking “slightly below” last year, Bertocchi’s Double Smoked Leg Ham off the Bone is demonstrating “positive growth”. He adds that the dairy case chiller’s range of Bertocchi Gold Bacon packs are performing “extremely well”, which reflects consumers demanding premium quality, traditionally produced products. Mr Rapone suggests customers are becoming more discerning, so it’s important, he says, that retailers resonate with them in offering more premium quality products and innovation. “Fresh, healthy, ready-to-cook ingredients or meal combinations are becoming increasingly popular with time-poor consumers seeking convenience and ease of putting meals together, whether for the family or just for a single person,” he said. “Organic products \\\[also\\\] offer a key point of differentiation as consumers look not only at how the food source is grown but from a social and environmental perspective, too, which in turn can help increase the sales value at a retail level.” Bertocchi can support retailers, says Mr Rapone, by providing them with improved point of sale and in-store tastings in an effort to improve staff and consumer product education. “Offering more appetising serving suggestions \\\[and\\\] recipe ideas for all seasons, and smarter planograms suggestions, are other measures being offered,” he said. With so many different products available for purchase in the marketplace from a multitude of channels, Mr Rapone says product innovation and differentiation are important. “Understanding and incorporating the consumer needs and wants,” he said, “will drive Bertocchi’s product development into new and exciting food groups.” Primo’s consumer centric approach Primo is the market leader in total smallgoods, holding a 31.7 per cent value share in the latest quarter (IRI Scan up to 1/3/20, supplied by Primo). Primo’s vision, according to Catgeory Director Michael Herriot, is to be the smallgoods company of choice, providing a great range of quality products in Australia. “Being the market leaders in smallgoods, Primo is determined to follow a consumer centric approach and has paved a way for developing new innovative products,” he said. “It’s committed to provide high quality products, even during challenging times. Also, aligning with its core mission and vision, Primo is developing more sustainable and environmentally friendly options across the range of products, catering to the recent trends in shopping behaviour.” Noting the decline in overall smallgoods volume, Mr Herriot says this is “majorly” due to a decline in deli consumption. “About a third of the total shoppers exclusively shop the deli, which mostly TO PAGE 42 DELI & SMALLGOODS “Fresh, healthy, ready-to- cook ingredients or meal combinations are becoming increasingly popular with time-poor consumers seeking convenience and ease of putting meals together.” In addition, Mr Rapone says, “there’s increasing demand \\\[for retailers\\\] to provide a theatre of education for their staff and consumers”. “Retailers should generate innovative ‘themes’ and work more closely with manufacturers to make food an enjoyable experience and not just to be eaten,” he said. MAY, 2020 RETAIL WORLD 41