Show remains upbeat: product showcase added to roster, convenience food still hot trend - Fmi 2003 - Food Marketing Institute's convention in Chicago

DSN Retailing Today, May 5, 2003 by Debbie Howell

CHICAGO -- Against the backdrop of a tough economy and low consumer confidence, the atmosphere at the food industry's largest trade show is expected to remain upbeat, with new items tapping into trends of convenience, nutrition, natural foods and ethnic offerings.

About 30,000 people were expected to attend the annual Food Marketing Institute convention, which runs May 4 to 6 at McCormick Place in Chicago.

"Organic and natural products continue to be very popular, as well as convenience foods--particularly those that are healthy or vitamin-fortified," said FMI spokesman Todd Hultquist. "Of course, there will be a few surprise hits, just as there are every year."

Hultquist said the economy has impacted attendance at this year's show. The number of exhibitors, anticipated at 1,000, would be about 16% lower than last year. International visitors, who account for 10% to 15% of show attendees, could be affected the most based on early registration figures.

"With the nation at war, a struggling global economy and the spread of SARS, travel plans are being curtailed or at least delayed, especially with the international groups," he said.

Nevertheless, the show must go on, and will. Besides a full schedule of workshops on hot industry issues, one added feature this year is a new product showcase. As of mid-April, 54 companies had submitted products to be featured in this area, which will be at the entrance to the North Hall at McCormick.

Another variation this year is the movement of the Fancy Food Show to the South Hall, which houses the majority of exhibiting food companies. In 2002, this show took place at Lakeside Center. Like last year, technology. service and display vendors will be exhibiting in the North Hall.

Hultquist said technology exhibits will focus on irradiation, self-checkout and biometrics. One highlight will be an exhibit by FMI and the Massachusetts Institute of Technology Auto-ID Center, featuring electronic product code and radio frequency identification applications within the food industry.

A sampling of food items launched at the show confirms the trends of convenience, variety and nutrition as uppermost in consumers' minds this year.

Kraft, for example, will debut more than 150 items across all of its product categories. Jell-O smoothies in portable snack cups and new Lunchables items offer representatives from four of the Food Guide Pyramid's major food groups and tie into trends of convenience and nutrition. Another theme involves decadent new flavors, such as strawberry and French vanilla Cool Whip, creme caramel instant coffee and Newton's cookies featuring fruit and cream fillings such as Cherries 'N Cheesecake and strawberry shortcake.

Products featuring yogurt, smoothies and snack bars may be popular this year. General Mills' has expanded flavors of Yoplait Nouriche and a new Oatmeal Crisp Fruit & Cereal bar that will launch at FMI.

Topics at this year's seminars reveal the continued trend of channel blurring in the food industry, with supercenters, clubs, drug stores and dollar store growth primary issues of interest. Other topics of interest pertain to Hispanic marketing, organic food, state-of-the art technology and private label strategies.

Expansion of the show will take place next year, with a deal recently struck between FMI and the United Fresh Fruit & Vegetable Association to bring the United Produce Expo to McCormick in 2004, where it will coincide with the FMI Show.

Median Weekly Sypermarket Sales

      Current Dollars  Real Dollars *

1998     $333,411         $206,959
1999     $334,479         $203,702
2000     $335,242         $199,075
2001     $368,779         $212,430
2002     $361,564         $204,505

Not surprisingly, weekly supermarket sales decreased from 2001 but were
higher than figures recorded five years ago.

Source: Food Marketing Institute

* Real dollars are computed using the CPI for food-at-home to 1982 to
1984 dollars as a base.

Note: Table made from bar graph