Desired Outcomes
Participants will be able to:
• Identify new food and dining trends• Discuss changing consumer habits• Identify which income level is hardest hit
by rising food cost• List ways to cut food cost through savvy
planning, shopping and preparing
New Food and Dining Realities
Spending Cuts Across All Incomes
• 72% have made significant cuts
• Hardest Hit: $45 K a year or less
• 59% of $100 K a year--cut back
Changing Consumer Habits
63% are more flexible about where to shop and what brands to buy
• 49% shopping at more stores for best deal• 35% switching grocery stores• 53% reducing amount of food purchased• 45% of those making less than $20K want
foods that keep them full longer• 77% want more information about the
content and origin of foods
Consumer Priorities
3 in 4 Americans choose quality and nutritional value over lowest price
• 72% Quality over price
• 68% Nutrition is most important
• Won’t give up meat, poultry and …….
Coffee……….!
Consumer Splurges with $10 more
• 13% (less than $45K) Convenience, compared to only 9% of those with a higher income
• 19% ($45K +) Natural or Organic
• 51% More of items they normally buy (buy in bulk)
• 20% New item not on their list
• #1 Splurge----Dessert
Family of Four—Food Cost at Home
Thrift Cost Plan Low Cost Plan Moderate Cost Plan Liberal Cost Plan
Monthly: $584 $760 $949 $1,154
Annually: $7000 $9100 $11,400 $13,850
USDA—Center for Nutrition Policy and Promotion
http://www.cnpp.usda.gov
Food Purchases as a % of Income
AVG INCOME LOWEST 20 % MIDDLE 20 % HIGHEST 20 %
Income after taxes $60,858 $10,534 $ 45,179 $150,927
Food as % of income 10% 29% 13% 7%
Food at home 56% 66% 59% 50%
Food away from home 44% 34% 41% 50%
CPI--Projections for Food Prices in 2009
• All Food—up 2-3%– 5.5% in 2007-2008 (highest increase
since 1990)
• Food at Home—up 1.5-2.5%
• Food Away from Home—3.5-4.5%
Percentage of Retail Price Staying with Farmer
For every dollar sold at retail…
1960-- 33%
1970-- 32%
1980-- 31%
1990-- 24%
2000-- 19%
PLANNING TO SHOP
1. Price Your Top 10
2. Coupons
3. Discount or Bonus Cards
4. Rebates/Refunding
5. Meal Planning
6. When to Shop
8. Where to Buy
Planning—Start a Price Book
• Buy a small notebook • Put each store on a
separate page • Write down the
– Product name, – Package size– Price per ounce or unit– Store– Date
• Compare these prices to advertised specials.
Planning--Coupons
• Manufacturer—Avg. $1.08 face value– National coupon inserts in newspapers, direct-mailers, magazines,
package inserts, thro surveys, mail-in forms, accompany samples– Manufacturer pays the face value of the coupon directly to the store– Red plum, SmartSource, P&G, Kraft – Send thank you or complaint letters—receive free coupons
• Retailer– Posted in store newspaper ads, thro direct mail, or in local newsletters.– Manufacturer offers an advertising allowance to the store to cover
advertising and mailing expense
• Online– On websites of manufacturers and grocery stores which can be printed
and used in the store.– Shortcuts.com
Coupon Tips—CouponMom.com System
1. Know your prices
2. Use when favorite name brand items hit their lowest price
3. If you clip: organize into broad categories– Dairy, canned, boxed, frozen, cleaning,
4. Download & print electronic coupons– Manufacturers’ website, coupons.com, smartsource.com
5. Use Coupon Mom “Grocery Coupon Database”—free tool– Online database of grocery coupons in Sunday paper– Lists every coupon from your state’s primary newspaper
• RedPlum, SmartSource• Write the date the circular came out at the top
– Website lists item, value, purchase quantity and expiration date– Scroll to brand name you want and check the box—then print a list of the
coupons you want– Go to the appropriate circular and cut out the coupons you need.– Receive weekly email updates
Planning--Discount or Bonus Cards
PROs• members only double coupons• credit dollars on total spending• give the best shoppers something special
CONs• privacy is at risk any time you sign up for anything.• retailers up the price of an item and then turn around and
offer it at a discounted rate (padding)• advocacy groups say this is a way to track an individual’s
spending—(profiling)
Planning--Rebates/Refunding
• Income $100K or more, age 35-64 women are most likely to apply
• Income $50K or less are least likely to apply for rebates
• 70% have taken advantage of manufacturer rebates
• 80% of those succeed • Keep good records
– Date sent in– Date should have received– Phone number of clearing
house
• Be Relentless!
Problems1. Process is a chore
2. Lots of steps with potential for error and rejection due to technicality
3. Missed Deadlines
4. Slow payment
5. Check or debit card may look like junk mail
6. Process designed to make it so complicated that the refunder gives up
Planning--Meals
• Leftovers
• Adds and sales
• Season
• Budget
• Storage
• Then make grocery list
Planning--When to Shop
• Shop alone if possible• When not tired or hungry• Weekly or less often• When store is less crowded• Wednesday AM--when new promotion week begins and
most fresh produce has been restocked
Planning--Where to Buy
Grocery Stores • Double/triple coupons• Rain checks• Stores that charge half price for each
item when “buy one, get one free” is advertised
• Stores that have email newsletter coupons or mail coupons
• Give bonus gift cards for bringing in a new RX or RX transfer
• Accept competitor’s coupons• Allow “stacking” manufacturer’s
coupon with store coupon• Ask for discounts on damaged items
Consumer Reports Readers Survey--CT
Overall Satisfaction with Shopping Experience
#7 Costco
#22 ShopRite
#38 Sam’s Club
#42 BJ’s Wholesale Club
#48 Stop & Shop
#56 Walmart Supercenter
#57 Shaw’s
Where to Buy—Cooperative Food Buying Clubs
Save money on food by sacrificing some free time and convenience
1) Cooperative Warehouse• may require membership fee, credit check, minimum orders• supply food to retail co-ops & buying groups • provides technical assistance to start food cooperatives• owned and controlled by the local cooperative they service
2) Buying Club Co-op • want access to affordable healthy food, in line with their
value system (packaging, local, organic, small business)• increased buying power• involves ordering, picking up the items, sorting, distributing
and maintaining the group.
Where to Buy
Warehouse Clubs:
Sam’s
BJ’s
Costco
• Make most of money on membership fees and underselling competitors by buying in quantity
• Discounts as much as 61% on non-food items
• Lack variety• Some discontinued,
gray market or close-out non-food items
• Stores guarantee and allow returns.
SMART SHOPPING—Cut Your Bill in Half
Consumer Report shopper was able to cut his costs by as much as 46% on 30 items
by adjusting his shopping habits.
• Impulsive Shopper $136.47• Savvy Shopper $73.55• Warehouse Club Shopper $60.49• Store-Brand Shopper $60.25
SMART SHOPPING
1. Store Brands
2. Unit Pricing
3. Supermarket traps
4. Aisle by Aisle Tips1. Beef
2. Other Protein
3. Bread, Cereal, Grains
4. Fruit and Vegetables
Shopping for Store Brands
Store Brands can be 25-35% less
Lower product development and promotion costs
Shopping for Unit Pricing
• Cost per ounce• Identify lowest cost
package size and brand• Compare different forms
(frozen, canned, fresh)• Take calculator if no unit
price• Can you store it properly?
Supermarket Traps
• 100 Calorie packs—cost 16-280% more per ounce
• Sample Tastings• Multiples pricing• Circulars--featured
products in may not be on sale--can increase sales by 500%.
• End of Aisle—increase sales by 33%
• Check out line temptations• Check the receipt for
accuracy—6% were overcharged
• Multiple location of items– deli vs. shelf
Shopping Aisle by Aisle
Beef• New Value Cuts: Flat Iron,
Ranch Cut, Petite Tender, Sirloin Tip Center or Side, Western Griller, Bottom Round.
• 80% lean ground beef –then rinse
• Stock up, wrap properly and freeze
• Buy steaks or roast and cut as needed
• Look for cost per serving
Shopping Aisle by Aisle
Beef Handouts
www.beefitswhatsfordinner.com
www.beefnutrition.org
“How Much to Buy” Guidelines (servings /#)
“Match Cooking Methods to Beef Cuts”
Shopping Aisle by Aisle
Other protein sources• Organic seafood isn’t
worth it. Standards aren’t in place
• Get a whole chicken or turkey
• Beans• Eggs• Peanut butter
Shopping Aisle by Aisle
Bread, Cereal, Grains
• Day Old Bread store• Store-made baked goods
may be less than commercial alternatives
• Bagged cereals• Bread Machine• Longer cooking oatmeal,
unseasoned rice, popcorn• Homemade croutons
Shopping Aisle by Aisle
Dairy
• Use powdered or evaporated milk.
• Shred your own cheese
• Freeze cheese for later if on sale.
• Largest milk container• Switch to skim• Add your own fruit to
yogurt
Shopping Aisle by Aisle
Fruits and Vegetables
• Cheaper by the bag vs. #• Save organic for those most
high in pesticides• Buy uncut• Go frozen when out of
season• Go Local• Private label store brands• Plant a garden
PREPARING MEALS
• Reduce food waste• Store food properly• “Planned-overs”• Make your own
spice blends• Convenience vs.
Home Cooked
Fast Food vs. Home Prepared
¼ # Burger w/ Cheese
Medium Fries
Soda
Fast Food Home Prepared
$2.69 $1.27
$1.00 $. 27
$1.50 $. 17
____________________________
$5.19 $2.08
*Medium Meal Deal at $4.68 =
2 home prepared burgers
Go Out and Gather!
Be a Wise Shopper and a Savvy Educator
Thank you NCBA for your sponsorship!
Linda Farr RD/LD
www.NutritiousTable.com
210-735-2402