Meeting the Fresh Foods Challenge

<p style="text-align:center;"><em>FMI&rsquo;s FreshForward conference gathered industry leaders to explore opportunities in fresh foods through highlighting research, strategies, and policy insights to help retailers and suppliers continue to elevate the fresh sector.</em></p><p>By: Rick Stein, Vice President, Fresh Foods, FMI</p><p><img src="https://www.fmi.org/images/default-source/blog-images/freshforward-focus-group-2025.tmb-large-350-.jpg?Culture=en&amp;sfvrsn=20fa1568_1" style="float:right;margin:10px;" alt="FreshForward focus group 2025" class="-align-right" sf-size="3321453" />&ldquo;Fresh is in a really good place, and we have an opportunity to bring it to a great place.&rdquo;<br /></p><p>That&rsquo;s how Leslie Sarasin, FMI&rsquo;s president and CEO, characterized the fresh foods industry during her opening keynote presentation at the <a href="https://www.fmi.org/fresh-forward">FreshForward conference</a> this month in San Diego. <br /></p><p>She relayed fresh industry research showing positive trends and posed a challenge to overcome hurdles and further raise the game.<br /></p><p>&ldquo;What would it take to elevate our game from good to great?&rdquo; she asked, borrowing a phrase from the classic business book by management guru Jim Collins. &ldquo;Because we play in a league where the field is already huge and new competitors are springing up every day.&rdquo; <br /></p><p>Speakers at FreshForward took up Leslie&rsquo;s challenge by relaying fresh opportunities tied to this year&rsquo;s conference focus areas &mdash; labor, health and well-being and meals. <br /></p><h5>Sharing Fresh Stats</h5><p>Leslie shared research from FMI&rsquo;s <a href="https://www.fmi.org/forms/store/ProductFormPublic/the-state-fresh-foods-2025">The State of Fresh Foods 2025</a> report that showed a progression of trends in this industry sector. </p><ul><li>87% of responding food retailers said they used fresh prepared/foodservice programs as a top differentiation strategy in 2024, and 63% reported it was a fruitful strategy. </li><li>84% reported local assortment through the produce department was their approach to setting themselves apart from the field, and 73% felt they succeeded at executing that strategy. </li><li>68% said they were increasing space (and none were decreasing space) dedicated to fresh grab-and-go selections.<em> </em><br /></li></ul><h5>Overcoming Labor Hurdles</h5><p>The conference&rsquo;s panel on labor in fresh outlined opportunities to communicate robust career paths to attract and retain employees and offer innovative strategies to guide employees on interacting with new technologies. <br /></p><p>Panelist David Kopsch, senior principal, Mercer, said employees want to interact with technology and AI, and they also want to be able to help manage change. &ldquo;At the end of the day, people buy from people. When something goes wrong, a shopper wants to talk to a manager.&rdquo;<br /></p><h5>Capturing Meal Occasions</h5><p>Speakers on the Meals panel cited opportunities to raise the game with enhanced quality in foodservice and improved abilities for shoppers to identify convenient, time-saving options. <br /></p><p>Jeremy Gosch, chairman of the board and CEO, Hy-Vee, who introduced the panel, noted a shift toward more mindful and budget-conscious shopping. &ldquo;About 86% of eating occasions in the U.S. are sourced from home due to ongoing economic pressures,&rdquo; he said. &ldquo;As grocers, we can inspire consumers and influence their next meal occasions or purchases.&rdquo;<br /></p><h5>Pursuing Health and Well-being Strategies</h5><p>Speakers in the Health and Well-being panel said shoppers are paying more attention to health and fresh, and that the industry needs to provide solutions that are nutritious, affordable and personalized. <br /></p><p>Panelist Laura Brown, Kroger&rsquo;s director of Nutrition, said GLP-1 usage has driven many shoppers to follow more nutrition-centered strategies. &ldquo;People are talking about nutrition more,&rdquo; she elaborated. &ldquo;They are looking for nutrient-dense, high protein, hydration and high-fiber.&rdquo; <br /></p><h5>Addressing Policy Issues</h5><p>Closing keynoter Hunt Shipman, principal and director, Cornerstone, underscored the importance of the current food policy landscape to food industry organizations. He cited a range of topical issues with policy tie-ins, including tariffs, the MAHA movement, ultra-processed foods and federal nutrition programs. &ldquo;Nutrition policy is a highly dynamic area related to fresh foods and consumers&rsquo; access and attitudes,&rdquo; he said. <br /></p><h5>Acting on the Insights</h5><p>FreshForward, developed in collaboration with Deloitte, is always full of insights to help guide retailers and suppliers in their fresh strategies. We&rsquo;ll be publishing more takeaways from FreshForward soon &mdash; including key action steps identified by attendees during breakout groups. The fresh industry is stronger when its leaders gather for education, collaboration and addressing challenges.&nbsp;</p>

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