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NEFFA 2000

BOSTON (FNS) -- A panel of Northeast consumers said brand names reign supreme and they will spend what it takes for variety and service, during a discussion here at the NorthEast Fresh Food Alliance's 2000 Annual Conference and Exposition.The six demographically diverse consumers, ranging in age from early 30s to late 50s, shared their likes and dislikes during a session moderated by Dr. Roger Selbert,

BOSTON (FNS) -- A panel of Northeast consumers said brand names reign supreme and they will spend what it takes for variety and service, during a discussion here at the NorthEast Fresh Food Alliance's 2000 Annual Conference and Exposition.

The six demographically diverse consumers, ranging in age from early 30s to late 50s, shared their likes and dislikes during a session moderated by Dr. Roger Selbert, a trend watcher and editor and publisher of the bi-weekly newsletter "Growth Strategies." Panelists were selected from NEFFA's Consumer Watch Program database, comprised of more than 4,000 grocery shoppers from throughout New England and upstate New York.

In an address prior to the panel discussion, Selbert, described today's consumer as "time poor, but a little bit more affluent, a little bit more savvy." Indeed, the panel listed convenience and choice as more influential than price.

But while many of the panelists acknowledged time constraints, most said they enjoyed the physical act of shopping and expressed reluctance to buy groceries on-line as a time-saving measure.

"I buy a lot on-line, but it doesn't appeal to me with food," said Virginia Ingram, a single, graphic designer from Hartford, Conn. Other panelists, such as Paula Morgan, a coffee shop owner from Beverly, Mass., said they would consider shopping for groceries on-line, but not fresh foods; that is, she might use the Internet to purchase dry goods for her five-person household, "but not for meats and vegetables."

The responses were in line with a Mainspring and Bain & Co. survey of 17,000 Internet users, cited by Selbert, which found the leading deterrent to on-line grocery shopping is a preference to select food personally. That objection accounted for 54% of users, followed by aversion to pay for delivery (32%) and enjoyment of shopping in-store (also 32%).

According to Selbert, panelists need not worry about having to forsake the physical act of shopping anytime soon. After analyzing on-line food shopping ventures, he said his consulting group, Growth Strategies Group, found no current on-line business model capable of producing profits. Selbert cited a study by Forrester Research that found that because of logistical inefficiencies, only 3% of food and beverage sales are expected to be on-line within five years.

So, what do consumers want when they hit those stores? The panelists, regardless of income level, reached consensus in their demand for variety and quality, especially with regard to fresh foods.

"I'm not really price conscious," said Ingram, who said that while she shops primarily at Stop & Shop, she sometimes also patronizes Walbaum's and Wild Oats. "They offer a little bit more in the fresh foods arena+I like to have a selection in the fresh vegetable area."

Morgan said she forsakes her primary grocery store, Market Basket, to buy meats, even though she said she does consider herself price conscious. "The prices are high, but the quality is better," she said.

Sharon Davis, a materials manager from Wells, Maine, said she never joins her southern Maine neighbors who shop in nearby New Hampshire to avoid paying tax on food, because she doesn't "really care what the price is."

Likewise, Joseph Nista Jr., a retiree from Weymouth, Mass., and avid cook, said his shopping habits are driven by quality rather than price.

"I tend to purchase ethnic food, so if it's not available at Shaw's or Victory, I will go elsewhere. I'm not price conscious. I usually will pay to get what I want."

Accordingly, most panelists said they typically spent a little extra for brand name products.

"If I grew up knowing about Del Monte, Tropicana or Kellogg's, I'd rather have the brand I grew up with," said Davis.

While many panelists acknowledged purchasing generic drugs and some frozen foods, all said name recognition still carried the day for most foods. They said they did not harbor prejudices against genetically modified foods, but none said they sought such food out even though scientific breakthroughs continue to improve the safety of the food supply.

Their views were in line with a Gallup poll on food biotechnology, cited by Selbert, which found that 25% of Americans think it is a health hazard, while 53% believe it is not.

"It's not of great concern to me," said Morgan, echoing the sentiments of the panel.

Since most panelists said they enjoyed the physical act of grocery shopping, members not surprisingly said direct-mail flyers wielded little influence in their decision of where to shop. And, as most said they were willing to pay extra for what they wanted, coupons also received low marks as incentives to purchase.

Once in the store, however, panelists cited a number of factors that influenced their purchase decisions. Signage and on-the-shelf sales information took top credit for introducing customers to new products.

"The only way I know if something is on sale is if it's right there on the shelf," said Ingram. "If it's there, it might influence my decision."

Frank White of Clifton Park, N.Y., a retired member of the New York Police Department who shops for his family of four at Price Chopper, singled out in-store samples as an influential promotion.

"I learn a lot about different things just by the sample stations," said White.

Nista and Davis cast their lot with packaging, one incarnation of which looked so nice to Nista, that packaging accounted for his recent first-time purchase of free-range chicken eggs.

But consensus divided sharply on loyalty cards. "I look for the advantage sticker first, it's really convenient," said White, who noted approvingly that purchases on his card had resulted in free Thanksgiving turkeys the past three years.

Ingram cited the experience of a shopper she watched try to write a check without a loyalty card.

"They wouldn't let her without the card. That's a really big inconvenience," Ingram said. "They shouldn't be used in that way."

"I think it's terrible," said Nista. "Without the loyalty card you can't get the benefit."

All in all, panelists said they were generally happy with recent shopping experiences, even if hitting the supermarket did not top their list of favorite activities.

"I do not enjoy shopping, but I try to make it as pleasant as possible, that's why I shop where I do, because I find it a pleasant experience," said Shaw's regular Nista.

White said he, too, could find preferable ways to spend his time, but gave high marks to Price Chopper for service and convenience. "I'd rather be doing something else than going shopping, but I get in and out and get what I'm looking for," he said.

Perhaps Nista and White would be even more inclined to grab a cart if stores heeded the constructive criticism offered by Lisa Regan, an independent contractor from West Roxbury, Mass.

Said Regan, who enjoys shopping at Roche Bros. for as many as 20 members of her extended family: "The only other service I'd like to see is to have someone come home with you and put the food away."