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Here's 5 things you may have missed in grocery.

5 things: They are hiding something

Here’s 5 things you may have missed in grocery

Supermarket News Staff

November 8, 2024

4 Min Read
A ripped section of blue paper showing a hidden white background with the 5 things logo in the upper right.
Who is behind the hidden costs of grocery?Getty Images

The hidden fees making products cost more: While inflation might be the issue that most people think of when grocery prices go up, and was a hot-button issue in the lead-up to the U.S. presidential election, product manufacturers argue that those extra costs are actually to offset fees handed down by grocery distributors, who are the middlemen barring their products from getting on store shelves. Prices have increased for everything, with manufacturers citing rising labor costs and higher costs for ingredients. These distributors, who buy from manufacturers, store their products, and sell them to grocery chains, have been adding unclear costs that leave producers unsure of what they’ll be paid for their goods. These fees, like those for late shipments, new flavors, in-store promotions, and extra fees for processing the aforementioned fees, pile up and lead to the buck being passed onto the consumer when producers ultimately need to raise their prices. —Ally MacConchie 

Small-business challenges: For a small-business owner in the CPG space, landing a deal with a major retailer can be the dream—but it can also be insurmountable, even once the contract is signed. The Wall Street Journal profiled Florence Dennis, founder of Flows Tasty Treats, who recently got her product into Costco stores after a four-year battle. As Dennis’ story demonstrates, entrepreneurs face challenges not only convincing corporations to take a chance on them, but locking down lending, securing suppliers, and getting product from Point A to Point B. And for people of color like Dennis, it can be even harder: In 2023, 41% of lending requests from Black-owned small businesses were denied. For white-owned businesses, that number was 18%. While Dennis did ultimately get her snacks into Costco stores, the next challenge—keeping them there—could be just as difficult. — Leigh Anne Zinsmeister

Food-borne illness explained: With the recent E. coli outbreak linked to Quarter Pounders at McDonald’s and a listeria outbreak in Boar’s Head meat that killed 10 people earlier this year, food-borne illness is becoming a hot topic that grocers should have on their radar. USA Today published a recent article tracking numerous listeria outbreaks, and the New York Post penned a piece chronicling grocery staples that pose the biggest E. coli risk. In that article, the Post notes that bagged greens, such as chopped lettuce, sprouts, vegetables, and fruit “should be avoided, as they can be a breeding ground for bacteria.” It also singles out cantaloupe, noting that “its webbed rind can trap bacteria.” The story interviews Don Schaffner, who teaches food science at Rutgers University, who said that the more processed the food is, the greater chance of exposure to bacteria. The conversation is a topic to consider for grocers with customers concerned about food-borne illness. —Tim Inklebarger

Pass on the butter: Please tell me how someone with butter fingers can steal from a grocery store? It happened in Ontario, where two thieves (obviously dairy pushers) got away with $1,200 worth of butter. This is not the first time a spreadable caper has happened in Ontario, either. Apparently there have been a string of high-cholesterol snatchings—nine over the past year. The shoplifters sneak away with cases of butter and sell them on the black market, according to police, and when individual packages sell for almost $6 in the open market it translates into a hot stolen commodity. Butter can be frozen, which means a longer theft life. No suspects have been arrested as a result of this cow byproduct theft ring. They all managed to slip away. —Bill Wilson 

Grocer on wheels: Kroger has partnered with public officials and a food bank in Kentucky to create a mobile grocery store for food insecure people, according to a story in WUKY News. The effort by Lexington County Urban County Government, God’s Pantry Food Bank, and Kroger has brought to life a 60-foot trailer that features a makeshift grocery store inside, such as meats, produce, fruits, dairy, and other household products, the news organization reported Friday. Dubbed the Lexington Mobile Market, the trailer visits 24 sites a month, and in its first year made nearly 7,200 transactions worth nearly $100,000 in sales. "This particular program is about providing resources in food deserts, often in locations where folks are limited in their ability for transportation so that they have easy, convenient access to food." Mike Halligan, CEO of God's Pantry, told WUKY. —TI

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