Thanks to the recent peanut butter recall, U.S. consumers are growing more aware of issues regarding food safety, according to a new study.

The study, from New York-based Burson-Marsteller and Washington, D.C.-based Penn, Schoen and Berland Associates, reported that more than nine in 10 U.S. consumers have recently read or heard reports of food safety issues and recalls, and nearly a quarter of Americans said the recalls will change their long-term food purchasing behavior.

But consumers appear less likely to hold retailers responsible. Maury Donahue, senior associate at Burson-Marsteller, told PL Buyer that when consumers were surveyed as to who they think has the greatest responsibility for protecting them from food contamination, only 1 percent of them cited retailers. Although consumers place little blame on retailers, Donahue does not see this as a sign that retailers can let their guard down.

“We’ve seen anecdotally in some product recalls that if a retailer does not swiftly and accurately execute a recall on behalf of a supplier, consumers can become concerned,” she stated. “The bottom line for retailers is that they play a vital role in this process, and if you are not prepared to play your role well and effectively communicate your actions to consumers, you can be drawn into someone else’s crisis.”

Donahue said retailers could be taking initiative to protect their store brands by recognizing a few important points about crisis communication.

“First, people clearly are paying a lot of attention to recalls, perhaps more than they ever have before,” she noted. “So, in future recalls, it is safe to assume there will be an increasing appetite for information and more demand than ever for quick action.”

And as with any other crisis, retailers need to learn from their mistakes and move forward.

“Ask yourself today about the kinds of questions that consumers will ask you tomorrow if something goes wrong,” Donahue said. “And educate your consumers today about the actions you are taking to keep their food safe.”

Last, Donahue suggests that retailers should check up on their food-safety-issue communications plan, making sure it is in tip-top shape and employees are ready to respond to an emergency at the drop of a hat.

“Are you prepared to reach all of your stakeholders with the right message on very short notice,” she asked, “at a time when you will have so much else to worry about?” – R. Hofbauer

A permission-based e-mail — a non-spam communication for which consumers register or sign up to receive — has the power to strongly influence consumers’ offline purchasing decisions, according to new research from Epsilon, a Dallas-based marketing services firm. In a nationwide Epsilon survey, 62 percent of respondents indicated the permission-based e-mails they received from CPG companies (including retailers) have a direct impact on offline activities tied to shopping and purchasing habits.

Kevin Mabley, senior vice president for Epsilon Strategic Services, noted that these consumers represent some of retailers’ highest-value customers, and that targeted e-mails could positively influence their behavior around store brands.

“These are people who are hand-raisers for your program, so it’s important to take care [in terms of] of what you’re communicating,” he added.

The research found that e-mail is an effective channel for retailers to convey information about new products and services, Mabley said. Moreover, it found that consumers also want brands and retailers to use e-mail to communicate with them to understand their preferences and past behavior patterns.

“The channel has matured to the level where you can use historical data, profile data and even infer people’s preferences based on how they’re responding to you,” Mabley said.

E-mail also represents a cost-effective means to reach beyond a retailer’s fan base of subscribers.

“There were many actions [people] said they were taking beyond simply clicking and opening e-mails or going to a Web site,” Mabley noted. “They were forwarding to friends, so you have that viral or pass-along impact.” — K. Canning

A new study contends that retailers and consumer packaged goods (CPG) companies are benefitting from consumer-centric data and analysis — whereby shopper data are used to develop insight as a driver for decision-making — but have opportunities for additional investment and improvement. Conducted by IDC Global Retail Insights for San Carlos, Calif.-based DemandTec and Precima of Toronto, “Being Consumer-Centric: A Retailer and Manufacturer Update” found that 75 percent of retailers and 58 percent of CPG manufacturers rank consumer centricity as a top-three success factor.

Although 80 percent of retailers and 67 percent of manufacturers surveyed said they expect an increased focus on consumer centricity in 2009, 37 percent of retailers and 43 percent of manufacturers pointed to limited availability of team resources as an impediment to success here.

“As expected, this research clearly demonstrates a continued trend toward consumer-centricity as a critical business strategy, said Brian Ross, Precima’s general manager. “What is surprising, however, is that we find that many of the core obstacles such as limited team resources are unsolved as barriers to success. This is a clear call to both retailers and manufacturers that getting the fundamentals in place — including the right data, the right people and the right tools — is critical to a winning consumer-centric strategy.”

Marc Dietz, vice president of marketing for DemandTec, told PL Buyer that the value for retailers and private label programs really lies in segmenting customers.

“If you’re only looking in aggregate, you’re either making program or pricing decisions for the average, and there’s no such thing,” he said. “But the opposite end of the spectrum is that every customer might be a little different, and you’re obviously not going to have different assortments or specific items on the shelf for individuals.”

Segmentation might differentiate a retailer’s “foodies,” for example, from its “budget families.” And that segmentation can help retailers get a clearer picture of specific customer shopping behavior within the store, Dietz said.

“What categories are they shopping?” he added. “Are they stocking up on promotion and not buying more later? What is the switching behavior or loyalty of a particular segment for given categories or brands?”

Retailers that dedicate the appropriate people and technical resources will create “points of differentiation” in their product offerings that not only will help retain existing consumers, but also attract new ones, said Leslie Hand, research director for IDC Global Retail Insights. — K. Canning

Americans are waging a war on wrinkles, stocking up on anti-aging remedies despite the economic downturn. According to a new report from Mintel International Group Ltd., a Chicago market research firm, sales of anti-aging facial skincare products reached more than $1.6 billion in 2008. The report, “Anti-Aging Skincare — U.S. — April 2008,” also notes that 2008 marked the first time sales of anti-aging facial skincare products surpassed those of facial cleaners.

And the category appears to be recession-proof.

“Anti-aging won’t fall to the recession,” said Kat Fay, senior beauty and personal care product analyst. “Looking young is extremely important to many women, especially baby boomers, and it’s not an issue they’re willing to compromise on because of tightened budgets. Many women see anti-aging skincare as a reasonably priced investment in their appearance and well-being.”

Fay told PL Buyer the consumer buying base actually extends slightly outside the baby boomer arena, with Mintel’s data showing that women 35 and up are avid buyers of anti-aging facial skincare products. Fay also pointed to a trend away from department store purchases of anti-aging skincare items to drugstore brands such as Olay and Neutrogena, and said the category represents a potentially exciting opportunity for private label. — K. Canning

NSF International, Ann Arbor, Mich., announced that “NSF/ANSI 305: Made with Organic Personal Care Products” was adopted as an American National Standard. Developed based on balanced participation from manufacturers of organic personal care products, trade associations, regulators, organic program administrators, retailers of organic products and other key stakeholders, the standard is the only consensus-based standard for made-with-organic personal care products, NSF said.

The new standard establishes materials, processes, production criteria and conditions specifically for made-with-organic personal care products, NSF added. Products that achieve certification to the standard may make a “made from organic claim” and bear the NSF 305 personal care logo.

Meanwhile, Quality Assurance International (QAI), San Diego, said it is able to certify personal care products made with organic ingredients to the new standard.

“Consumers are demanding certified organic products beyond food and beverage as they see the link to protecting the environment and improving their health,” said Joe Smillie, QAI senior vice president. PLB

Robinson Pharma Inc. — a soft gel encapsulator, contract manufacturer of nutritional products, and private label vendor based in Santa Ana, Calif. — said it kicked off a “season of celebration” in honor of its 20th anniversary with a wine and cheese reception on March 6 at the Natural Products Expo West.

“Despite a challenging economy, Robinson Pharma enters its 20th year with significant plans to foster continued growth,” said Kenn Israel, vice president of marketing.

 

Eco Lips, a manufacturer of national brand and private label organic lip care products, said it moved back into its manufacturing facility at its downtown Cedar Rapids, Iowa, headquarters. The company was forced to set up a temporary manufacturing location when the Cedar River flooded in June 2008.

 

Sovena USA, Rome, N.Y., said it achieved a rating of “Excellent” on its first Safe Quality Food (SQF) 2000 Level 2 Certification, becoming the first olive oil company in the world to do so. Sovena is a supplier of both branded and private label olive oil and other edible oils.

 

Valencia, Spain-based Natra and Barry Callebaut, Zurich, Switzerland, announced the signing of a memorandum of understanding whereby Barry Callebaut would transfer its consumer chocolate division, Stollwerck, to Natra. Natra, a supplier of private label chocolate products, would become a significant private label chocolate maker in Europe as a result of the transaction, the companies said. Barry Callebaut, meanwhile, would focus on its core business with industrial and artisanal customers while becoming a minority shareholder of Natra.

 

American Universal is a new company that said it will be offering all sizes and types of batteries, as well as cell phone accessories and automotive products, under a unique private label and direct import program with no upfront costs. Headed up by Gene Cox and Bobby Woods, both of whom have roots in the battery industry, American Universal will offer the option of prepaid shipments of $2,500 on an as-needed basis, from one of four U.S. warehouses. For more information, contact Cox at 949-582-3077, genecox1@cox.net; or Woods at 678-947-3946.

 

Waukegan, Ill.-based American Blending and Filling, a Visual Pak company that manufactures liquid, cream and gel products in tubes, bottles and jars, announced the integration of new high-speed equipment to expand its capabilities for the blending and filling of shampoo, conditioner and household products. The company said the equipment has raised production levels to more than 200 million fills per year, with fill sizes ranging from one-third of an ounce to a gallon. The company offers contract manufacturing services and more.

 

Independent Can Co., Belcamp, Md., said it is celebrating its 80th anniversary this year. The company supplies both standard and promotional metal packages to a wide range of industries.

Bi-Lo LLC, Mauldin, S.C., said it named Michael Byars president and chief executive. Byars, who most recently served as president and CEO of Coppell, Texas-based Minyard Food Stores, replaced interim CEO Randall Onstead. Onstead will continue his role as chairman.

 

Walgreen Co., Deerfield, Ill., said it named George J. Riedl, formerly head of the company’s merchandising division, senior vice president of pharmacy innovation and purchasing in the pharmacy services department. Walgreens said Bryan Pugh will replace Riedl as vice president of merchandising. Pugh had been vice president of store format development for Walgreens. The company also said it promoted Thomas J. Connolly, formerly a divisional vice president, to vice president of facilities development.

 

Raley’s, West Sacramento, Calif., said it named Don Ball senior vice president and chief financial officer. Ball most recently served as chief financial officer for IKEA.

 

BJ’s Wholesale Club, Natick, Mass., announced the election of Christine Cournoyer, president and chief operating officer of Wakefield, Mass.-based Picis Inc., to its board of directors.

The Arlington, Va.-based Food Marketing Institute announced the promotion of Jennifer Hatcher to group vice president, government relations. Hatcher will direct all of the institute’s federal and state public affairs outreach work.

 

Toronto-based Cott Corp., the world’s largest private label soft drink supplier, announced its appointment of Jerry Fowden as CEO. Fowden joined Cott in 2007 to lead its UK business. In April 2008, he was appointed president of international, and in June 2008, he was asked to assist in rebuilding relationships with Cott’s U.S. customers while also taking on leadership of the Canadian business. The company said former CEO David Gibbons will remain as active chairman.

 

Wilton, Conn.-based Sun Products Corp., a supplier of national brand and private label laundry detergents and fabric softeners, announced the appointment of Beth P. Hecht as senior vice president, general counsel and secretary. Hecht will be responsible for Sun Products’ worldwide legal affairs. She most recently was executive vice president, general counsel and secretary of MedPointe Inc., Somerset, N.Y.

 

S.T. Specialty Foods Inc., a Brooklyn Park, Minn.-based manufacturer of dry dinners and side dishes for the private label industry, announced the promotions of two members of its executive team. Mark Welken, who joined the company in 2000 as director of research and development, was promoted to vice president, R&D/quality. Kevin Kollock, who joined the company in 1997 as national account manager, was promoted to senior vice president, sales and marketing.

 

Mizkan Americas Inc., a Rolling Meadows, Ill.-based manufacturer of flavored vinegars and other liquid condiments, announced the promotions of three executives: Mark Majewski to executive vice president and chief financial officer (from senior vice president); Matthew Moore to senior vice president of food ingredients (from vice president); and Zia Mir to vice president of technical services (from director).

 

Lakeside Foods Inc., a Manitowoc, Wis.-based producer of private label food products, said it hired Gwen Anschutz as accounts payable supervisor at its corporate office. Anschutz previously was employed by Sun Cleaning Systems of Milwaukee as controller.

 

Holland, Ohio-based Plastic Technologies Inc., a developer of PET containers and more, announced the promotion of Craig S. Barrow to president. Barrow had been vice president and chief operating officer of the company.

 

Surefil LLC, a Grand Rapids, Mich.-based contract manufacturer of liquid-fill products in the personal care, oral care, homecare and medical industries, announced the addition of three employees: John Ciotola as director of sales, Jessica Gaddis as marketing assistant, and Bob Piellusch as customer service analyst.