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New President Kafarakis Brings Fresh Ideas to Specialty Food Association

By Lorrie Baumann

With a new President at the helm, the Specialty Food Association and its board of directors are taking a fresh look at how the Fancy Food Shows will evolve beyond the vibrant marketplace they already are into a vehicle that provides even greater service to the association’s member companies, said Phil Kafarakis, who became the SFA’s President in July. Kafarakis brings 35 years of experience in the food industry to the table. Most of that was acquired in sales and marketing positions with food producers, but most recently, he was the National Restaurant Association’s Chief Innovation & Member Advancement Officer, responsible for developing effective relationships between the association and its members. At the Specialty Food Association, he’s eager to help the Fancy Food Shows evolve to incorporate a little bit more education and entertainment around the periphery of the show and to leverage the association’s media and social platforms into relationships with member companies that extend beyond the twice-yearly experience of the Fancy Food Shows.

The Specialty Food Association will be celebrating its 65th anniversary in 2017, and its growth over those years is a reflection of the innovation and entrepreneurship of individuals who might have started their small food companies in a garage but who then went on to create new categories that have entered the mainstream of the American food industry, Kafarakis said. “The Fancy Food Show has been the guiding light of the organization and of the food industry in general,” he said.

He suggested that while the Fancy Food Shows have been extremely successful as a marketplace, they haven’t traditionally showcased the entire range of the Specialty Food Association’s activities, including the market research that helps new businesses enter and succeed in the industry. Nor has the association been particularly effective in helping members network with each other outside the show floor, he noted. “Our membership is very early start-up and smaller family-run businesses, versus bigger companies,” Kafarakis said. “We see ourselves becoming a greater resource for them as they become market-ready.”
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Newer food businesses face many challenges as they scale their operations up from local production and farmers market sales into national and even international production and distribution, and the Specialty Food Association is positioned to help them navigate the regulatory environment, legislation that may affect them, funding needs, supply chain concerns and connecting with buyers who are aligned with their social values, according to Kafarakis. “We are evolving so we become a greater service provider to them and getting them market-ready,” he said.

Currently, the SFA’s board has been working on a strategic refresh of its lifetime achievement and sofi Award recognitions, with sofi categories being re-evaluated to ensure that there’s a category fit for entries that haven’t quite fit well into the existing categories in past years. “Strategically, going forward, the sofi platform and the recognition platforms will play a major role,” Kafarakis said. “We can connect back to the wonderful social values of the organization…. We are going through a very deliberate review of the criteria the judging, adding some categories to make it broader, to make it simpler to understand and to take some of the complexity out.”

As it moves forward, the Specialty Food Association’s great strength will be that it’s continuing to do what it already does best, which is to communicate the values of the specialty food industry to the greater marketplace, according to Kafarakis. “Given that the consumer is so inquisitive about where their food comes from, and how it was made, the experimental nature of food has brought us into the limelight,” he said. “We’re celebrating 65 years now, and we want people to know that the creative, innovative side of food starts here with our members.”

Virginia Diner: a Passion for Peanuts

By Lorrie Baumann

picture-042The original Virginia Diner, a roadside family diner along the main highway route across Virginia towards the beaches, Williamsburg and Jamestown, has an 87-year history as that place where you stop if you’re making one of those road trips, and while you’re waiting for your meal and letting the vibrations of the road work their way out of your bones, you get some free peanuts to nibble on. “In Virginia and the Mid-Atlantic, people know the restaurant. They have a fond memory of going to the beach on vacation, and we’re part of that experience. It gives people a fond memory of what they’ve done,” says Scott Stephens, Virginia Diner’s Director of Sales. “People have been coming here since the Depression and all through World War II. It’s the longest-running roadside diner in the state.” Customers loved it. Then they started asking if they could take a piece of that experience home with them, and suddenly, Virginia Diner was in the peanut business. “The mail-order business grew from people coming into the restaurant, picking up peanuts while they were eating, and asking if we could send them some,” Stephens says.

Those peanuts were locally grown – they’re a major crop for southeastern Virginia. “What we grow in this area is the Virginia-type peanut, and we only buy the super extra-large size,” Stephens says. “There are a lot of peanut companies in this area, but the Diner is the most well-known of all the regional brands because of the restaurant.”

Today, Virginia Diner has turned a passion for peanuts, especially the super extra-large peanuts, a bit of nostalgia and home team pride into a product line comprising peanuts and cashews with multiple added flavorings or chocolate covering packaged in cans with art that honors the team mascots for colleges around the country and the artistic vision of Norman Rockwell. “We started licensing in 2007,” Stephens says.“Licensing really took off for us, and it became dominant.”
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pac-12-collection-lowSalted Peanuts are the company’s best sellers, along with Chocolate-Covered Peanuts and Old Bay-Seasoned Peanuts. They do well in both gift shops and in specialty food markets. All of the company’s salted and unsalted peanut products are non-GMO Project Verified, kosher and certified by the American Heart Association.

Products packaged in college colors do especially well during back-to-school season, while the Norman Rockwell-themed packaging moves a lot of nuts during the winter holiday season.

Virginia Diner is currently exploring other licensing partnerships to expand the products’ appeal throughout the year as well as continuing to develop the existing line of interesting flavors. “All of it’s for the purpose of giving someone a reason to pick up the can, compelling them to buy peanuts,” Stephens says. “We have some year-round licensing opportunities that we’re creating to pull the product off the shelf and into the shopping basket.”

Study Looks at Millennials’ Eating Habits

How can supermarkets attract the newest generation of grocery shoppers, the much-publicized Millennials, and turn them into loyal customers? That’s probably the biggest strategic question facing retailers today and new research suggests that the answer may be found in the fresh departments along the store perimeter.

A nationwide survey of more than 1,800 shoppers age 20-29 by the Private Label Manufacturers Association reveals that Millennials love food but want food done their way. Fresh and healthy foods are at the top of their shopping lists, while prepared and portable foods are also very popular.

These food choices reflect a distinctive way of eating. For Millennials, eating is largely unscheduled. They incorporate food consumption—whether meals, snacks or bites—into a range of everyday activities, ranging from work and play to exercise and commuting, according to the research in PLMA’s latest report “How America’s Eating Habits Are Changing.”

While Millennials purchase from many different sources, they frequently shop at supermarkets. And once inside the store they often head to the fresh dairy, deli and bakery departments. The study found that three-quarters of shoppers buy deli items in the supermarket where they do their regular grocery shopping, 77 percent buy dairy items and 59 percent buy bakery items.
Reflecting their on-the-go eating habits, one third “always or frequently” purchase heat-and-eat food from the supermarket, 29 percent pick up prepared or ready-to-eat food, and 27 percent buy grab-and-go prepared food items from a source such as a supermarket or convenience store. Millennials are a generation of nibblers and experimenters, so in-store sampling and demonstrations are popular.
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Home or away, meals or snacks, this age group is drawn to all things fresh. On occasions when they eat at home, including meals and snacks, 57 percent of them “always or frequently” opt for fresh fruits, 35 percent for fresh baked bread products, 30 percent for fresh prepared meals and 30 percent for fresh and chilled deli salads.

The PLMA study indicates there is likely to be a big payoff for supermarkets who successfully adapt to the new eating habits of the Millennials. Contrary to expectations, these shoppers are more loyal to their favorite stores than their parents. Nine of 10 do their regular grocery shopping in only one or two stores. This represents a dramatic departure from recent PLMA studies that saw consumers spreading their shopping among a multiplicity of stores.

This loyalty has important implications for store brands. As they select products, Millennials are well informed about brands, including store brands, and where foods come from. Nine of 10 say they are aware of the ingredients in the food products they eat and three of four read the nutritional labels on products. Their awareness of store brands and national brands is virtually the same at 84 percent, compared to 86 percent, respectively.

Commenting on these findings, Brian Sharoff, President of PLMA, said, “Store brands remain the retailer’s most potent weapon in developing strategies for this age group. It offers flexibility and opportunities to be creative with product assortment and concept without waiting for national brands. But it requires an understanding of what this age group likes and will buy.”