Report: Whole Foods, King Soopers Make The Most Of Their Plant-Based Offerings

Sales of plant-based meat, dairy and egg alternatives were on the rise even before the pandemic shook up supply chains and resulted in meat shortages in some parts of the country.

Companies large and small that make the products were innovating, turning out hundreds of new items annually, and grocers were making more room in their cold cases for the increasingly in-demand products.

A report released Thursday by the Good Food Institute takes stock of the progress the top 15 U.S. grocery retailers have made in stocking, merchandising and marketing the growing array of plant-based meat, dairy and egg alternatives. The study, which was more than a year in the making, also points out areas of opportunity for retailers looking to boost plant-based sales and grab a bigger share of the market.

GFI looked only at products that were direct replacements for animal-based meat, dairy and egg products, and prepared meals. It didn’t count naturally vegan products like fresh produce, tofu or tempeh.

 “In 2019, more than 700 new plant-based products hit the shelves at U.S. grocery stores, which is another indicator that consumer demand is continuing to increase for plant-based foods,” GFI Corporate Engagement Strategist Emma Ignaszewski said.

Whole Foods Market and Kroger KR -owned King Soopers scored highest overall, while Wegmans won for the largest number of products, with more than 500 items including name brands and private-label products.

All the data is from 2019, so the report doesn’t reflect changes that have happened during the pandemic.

But there’s some evidence that the crisis has further sped demand for plant-based foods. Sales of plant-based meat grew 265% in the eight-week period ending April 18, compared to a 39% increase in sales of conventional meat, according to Nielsen data. Sales of plant-based meats are on track to hit $1 billion this year and book double-digit annual growth in the next few years.

GFI’s new report gives the greatest weight to the number and assortment of plant-based foods under brand names and private-label lines, as well as prepared food offerings. That counts for 60% of the overall grade, while merchandising – a category that includes both product placement and signage – is worth 25% and marketing counts for the remaining 15%.

Making The Most Of Merchandising

The report ranked Giant Food first for Best Overall Merchandising, based on its integration of plant-based foods with animal-based foods in the same category. Giant also tied with King Soopers for Best Signage.

Sixty-five percent of the retailers had at least one plant-based meat alternative in the meat case, the report found, and 91% had employed an integrated merchandising strategy in categories beyond plant-based dairy.

More than half featured aisle signage for refrigerated or frozen plant-based products, and 57% used shelf tags and icons to identify plant-based products.

The presence of signage and point-of-sale promotional materials can be key to raising shopper awareness and sales of plant-based alternatives, but what words and phrases the stores choose to use can be just as important.

The goal is to appeal to flexitarians and consumers looking to try new plant-based products as a way to cut some animal products from their diets. An earlier GFI report found that phrases like “plant-protein,” “plant-based protein” and “plant-based” carry more weight with those mainstream consumers than terms like “vegetarian or “vegan.”

Thirty-one percent of the retailers studied in the new report were using the preferred language, making it an area with room for improvement, Ignaszewski said.

Whole Foods was also lauded for its social media content, which prominently featured plant-based food in posts and photos.

The Path To Growth Is Paved With Private-Label

In its conclusion, the report highlights the growth in the plant-based milk category that came largely through innovation in both product development and merchandising, and the potential to use those strategies to grow sales and market share in other plant-based categories.

Private-label is another key growth area, and one with the potential to attract more mainstream consumers to plant-based products. Overall, sales of private-label products grew 3.7% to $143 billion last year, according to Nielsen data. The report highlights the opportunities for private-label growth in specific categories, including plant-based yogurt.

Private-label can be a draw for flexitarians looking to try new things from grocery banners they already trust at price points that can make the plant-based options more affordable for more people, Ignaszewski said.

“By developing strong plant-based private label lines, retailers are participating in the democratization of plant-based.”