2021 Holiday Entertaining Guide

As for gatherings, there probably will be more of them, kicking off right after Halloween and running through the New Year, with people ready to look ahead to a brighter 2022.  “Don’t just immediately think about the 25^th of December and Thanksgiving – there will be things like Friendsgiving, neighborhood-giving and even just gifting for the holidays with food,” says Jonna Parker, principal at IRI’s Fresh Center of Excellence, in Chicago. “I don’t think we’ve capitalized on mini-occasions to make fresh food turnkey.”

The upshot for grocers in this fluid environment is to offer a mix of products and portions that cater to different levels and kinds of celebrations. Some shoppers will want the biggest turkey and an extra-large bag of potatoes, while others will stick to everyday sizes. In addition to providing options for a range of occasions, retailers should let their customers know that they have multiple solutions based on their unique needs, an approach that aligns with shoppers’ growing desire for personalization and customization.

Sally Lyons Wyatt, EVP and practice leader, client services for IRI, offers some advice: “Occasion-based assortment, with occasion-based messaging. Make it easier on your shoppers – make them want to come into the store and engage, and find those same options online.”

Making it easy for consumers is a goal that cuts across all types of festivities, agrees Stein. “I go back to the macro-trend of convenience – you need to have items and programs prepared for that type of customer and that type of convenience they are looking for,” he notes.

Homemade for the Holidays – Sort of

Providing more (and convenient) options extends to the mix of ready-to-cook and -use offerings that will be in demand. 

Coming out of the pandemic, shoppers have different cooking habits and preferences. On the one hand, people have had plenty of time to bone up on their cooking skills. On the other, shoppers like a little help in the kitchen when they can get it, and for different reasons.

According to Mintel, 60% of consumers say that they’ve been cooking from scratch more often during the pandemic. Bartelme points out, however, that “cooking” isn’t the same for everyone. “One thing I always say is that ‘from scratch’ means so many different things depending on how you look,” she explains. “Assembling a bunch of foods is one definition for people.”

Here, too, it’s about meeting consumers in the middle, with a combination of ingredients for from-scratch and almost-from-scratch meal prep, and shortcuts that allow people to take ownership of a meal without too much hassle. While retailers have long offered a range of supplies and prepared/semi-prepared items for the holidays, making these solutions readily available and highly visible in 2021 will be crucial.

Beware Grinch-like Economic Factors

If further virus-related restrictions – self-restrictions or otherwise – put any kind of damper on the holidays, rising food costs may also preclude this from being a Roaring ’20s kind of extended event.

Inflation, of course, has been rearing its head across many sectors. Food shortages, tied to the labor crunch and sourcing problems, are a twin concern.

In this environment, retailers will find themselves having to meet the needs of some pandemic- weary consumers who want to splurge for their holiday celebrations, along with price-conscious shoppers weighing their purchases more carefully. Of course, this occurs against a backdrop of grocers’ own labor situations and bottom-line mindfulness.

“I think we will see meal budgets grow this year, because more people will be gathering, but the increase likely won't be astronomical,” forecasts Hughes, of Inmar. “Consumers will likely [hold] potluck holiday gatherings to reduce the financial impact on the host – expect party attendees to bring their own booze or provide desserts and appetizers to ease the stress of the holiday host.”

Still, despite the once-again unusual circumstances in which they’re operating a business, retailers are in a better position than some competitors for the proverbial share of stomach. “Prices are increasing 400% to 500% on food away from home,” points out grocery industry observer Burt Flickinger, managing director of New York-based Strategic Resource Group.

With potential shortages and higher prices looming, Flickinger suggests that retailers emphasize their private label selections and larger portion sizes for stock-ups as the costs of feeding families, even at quick-service restaurants, continue to climb. “Retail is the last major area where people can save meaningful money,” he observes.

Grocers can address consumers’ economic concerns in many ways, offering solutions that meet their budgets as well as their party plans and palates. In addition to spotlighting sale prices, retailers can get creative with assortments and promotions.

“I think there is an opportunity like we saw in 2008 during the Great Recession to take products that consumers think are important and right-size them,” says Bartelme. “It’s about, ‘You want to have this at your holiday table, but maybe you just have a bit of it instead of the whole thing.’ “People want to be able to have that indulgence and the premium experience of it without feeling that they have to make that compromise.”

Perimeter Favorites

As grocers plan for what’s shaping up to be another unusual holiday season – at least in comparison to 2018 or 2019 – they’re focusing on all areas of their stores, including brick-and- mortar and e-commerce operations.

For instance, with consumers seeking convenience and fresh gourmet products during the runup to the holidays, the perimeter will be paramount.

Grocers can tout their prepared foods as a solution for shoppers who either want to cut corners or have complete take-home meals made for them. “All of these prepared options, like gravy or side dishes, take away some of the pressure,” notes Bartelme. “In a way, I think the prepared component could be more useful and impactful this year than last year, because it allows consumers to concentrate on the parts of the meal that someone else can take on for them.”

To Bartelme’s point, having an array of prepared foods puts the retailer in a key role as a solution provider. A refrigerated case of grab-and-go staples like containers of gravy, mashed potatoes, cranberries or gelatin salad can be appealing to in-person shoppers and at-home browsers. At the same time, a prepared food area or deli can offer fully prepared meals for two, four, six or more people for order and pickup. Depending on its digital infrastructure, a grocer can set up delivery of complete holiday meals with heat-and-eat and ready-to-eat items.

Such capabilities are a true point of differentiation, according to Jenna Irish, marketing manager for e-commerce company Rosie, in Ithaca, N.Y. “We saw a lot of restaurants bundling meals last year, and grocers can compete with that, with meal solutions,” says Irish. “If I am going to a local grocer, and they are able to do a nice Thanksgiving turkey and sides, I’m totally open to buying that.” Rosie recently developed a merchandising solution called Cater that enables shoppers to order meals online; the app also provides participating retailers with ample lead time for preparation and generates production data reports.

Cheese, Bakery, Charcuterie

In addition to prepared food solutions, grocers can promote the bakery section as a destination for making spirits bright in a less time-consuming way. In-store bakeries have long been go-to spots for things like pumpkin pie, holiday pastries and cakes, and breads.

Offering baked goods in bundles for in-store pickup or buy online, pickup in store (BOPIS) is an option that can appeal to convenience-oriented holiday shoppers. Adding new or interesting varieties of bakery items can pique shoppers’ attention, too, especially items that are indulgent yet simple to serve.

For example, Companion Baking, a St. Louis-based manufacturer of specialty breads and pastries, has expanded its line of bread puddings, including a new banana chocolate chip variety with honey that was created in collaboration with the National Honey Board. “Consumers also want interesting specialty products – we sell a lot of petite loaves and demi baguettes,” notes Companion Baking founder Josh Allen.

With labor stretched thin this year, in-store bakeries should be planning now to meet demand with the staff and products that they have.  According to Allen, Companion Baking will be working to provide its grocery customers with the basics and other products that help them at a time when bakery operations are lean at best. “They are asking for more thaw-and-sell items and take-and-bake items – things that are really retail-ready,” he remarks.

Accordingly, assortment and merchandising efforts can not only showcase the return of beloved items like canned pumpkin, cranberries, crispy fried onions, and basic supplies for cooking and baking, but also spotlight some products that provide a bump of flavor or color to a dish.

“For some people, it will be about tradition – the idea of what Grandma made – that gives a certain sense of comfort,” asserts Bartelme. “Depending on where we are and whether or not we are back hibernating in lockdown, there is also interest in breaking out of what we’ve been doing in the past. If we turned to traditional foods last year, this year, we may want to eat a chipotle- flavored turkey, or maybe not do turkey at all.”

The mantra of making it easier for shoppers applies here, too. For example, while Mintel’s research shows that nearly a third of U.S. consumers describe themselves as confident home bakers, they appreciate some assistance. In a recent survey, 67% of people who bake say that they’d be interested in kits that include all of the necessary ingredients.

With consumers continuing the snacking habits they started well before the pandemic, the center store can also be positioned as snacking central during a season typically defined by eating occasions and busy schedules. “We continue to see snacking as a growth area, especially in protein, or what we call ‘substantial snacking,’” observes Hormel’s Vossler, pointing to Planters nut products that work for both holiday snacks and casual gatherings.