This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Sozzi: 10 Awesome New Foods Invading U.S. Supermarkets

NEW YORK (TheStreet) -- The supermarket industry is notorious for having virtually no profit margins. Just think for a second from an executive's standpoint. All of that work selecting the assortment, store layout, and weekly promotions, and ensuring fresh goods are delivered on time and consistently stocked, and operating margins clock in around 3%. Talk about no love!

Investors will be closely monitoring this sector today, with Safeway (SWY - Get Report) on deck to report its fourth-quarter results after market close. The reality is that U.S. households are no longer stocking pantries for a number of reasons - they either can't financially, lack actual pantries in scaled-down homes, or view doing so as unnecessary absent an impending snowstorm amidst a Polar Vortex. Hence, same-store sales growth at supermarkets is now often fueled by bouts of inflation rather than unit growth. No inflation, no positive sales, and here come the earnings misses and store closures to keep over-indebted balance sheets from swallowing the entire organization.

Consider this Twitter shareable stat from 2013 produced by research firm Hartman Strategy:

  • 18% of supermarket revenues are generated from low velocity categories that turn an average 89 units per week per store.
  • 40% of supermarket revenues are generated from shrinking "giant" categories experiencing declining volume, for example canned soup, meat, cereal, and frozen pizza.

So to have any shot of growing same-store sales and out-flanking a Wal-Mart (WMT - Get Report), supermarkets must be willing to put new, unproven products from the likes of Kellogg (K - Get Report) and Hormel (HRL), as well as from smaller, unheard of companies, on their shelves that address the evolving preferences of consumers. For instance, products that I would deem "good for you" with slick-looking packaging.

While having a guerilla analyst moment at a local Target (TGT - Get Report) turned partial supermarket, I found 10 new products that are comparable to emerging markets on supermarket shelves. These are products I have also seen at traditional supermarkets. I am emotionally over Greek yogurt in large white containers, and cylinder-shaped tubs of hummus being the new, cool kids on the block, and went in search of even fresher looking products and packaging.

Check out these 10 awesome new foods invading U.S. supermarkets:

1 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
SWY $35.10 -0.11%
K $64.39 0.00%
PNRA $182.77 0.00%
TGT $80.02 0.00%
WMT $77.88 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs