Saturday, December 18, 2010

Walmart Launches New 'Marketside' Fresh Food Lines - Plus A 'Fresh' Campaign to Create Brand Buzz

Private Brand Showcase: Fresh Foods

Walmart Stores, Inc. has been busy creating and launching new fresh food product lines under its "Marketside" private brand, along with adding new SKUs to its existing lines, since we last reported on and wrote about the introduction of a new line of "Marketside"artisan breads and related baked goods in September. [Read the story - September 9, 2010: Walmart Introduces 'Marketside' Brand Packaged Fresh-Baked Breads, Sub Rolls and Chocolate Chunk Cookie.]

Since then, Walmart has launched three notable new "Marketside" lines: a line of ready-to-use refrigerated dips (for chips, crackers, fruits and veggies); a cook-in-three-minute fresh, refrigerated pasta line; and a companion line of ready-to-heat fresh-prepared pasta sauces.


Dips: The extensive line features numerous SKUs, including Guacamole; a range of ranch dips like Chipotle Ranch and Buttermilk Ranch; Bleu Cheese; a cream cheese and vanilla bean fruit dip; and others.


Fresh Pasta: The "Marketside" line of fresh, refrigerated pasta includes numerous pasta shapes, along with ravioli and tortelloni varieties filled with meat and cheese, like the Three Cheese Tortelloni pictured above. All of the fresh pasta varieties take three minutes to boil.

Pasta Sauce: The "Marketside" refrigerated, fresh-prepared pasta sauces come in tomato-based and cream varieties, as well as pesto. The cream-based sauce varieties include the Asiago and Smoked Provolone cheese sauce pictured above. The tomato-based marinara sauce varieties include the Tuscan-Style Marinara Sauce, also pictured above.

Walmart has yet to add the new "Marketside" fresh pasta, pasta sauce and dip lines, as well as some of the new SKUs added to the existing lines, to its Marketside.com product website.

Walmart's "Marketside" private brand now includes lines and products in the fresh-prepared foods, fresh produce and bakery categories.

The fresh-prepared food lines include both ready-to-eat items - grab-and-go salads and sandwiches; party trays; Rotisserie chicken and other meat and non-meat items and side dishes; plus the dips and sauces - and ready-to-heat or quick-cook items, such as entrees, side dishes, pizzas, pastas and sauces.

There's also a line of "Marketside" packaged fresh cheese and a line of packaged lunch meats which are sold in some Walmart stores.

The fresh food products are sold in the retailer's Walmart Supercenter, Walmart Neighborhood Market and marketside by Walmart banner stores in the U.S. Additionally, selected "marketside" items are also sold in some of the retailer's discount format stores.

The product grouping above - the ready-to-eat rotisserie chicken and take-and-bake pizza, along with a bag of fresh spinach, a loaf of fresh bread and a cookie - is a good graphic depiction of the "home meal replacement" marketing positioning focus Walmart is using for its "Marketside" fresh foods brand.

Home meal replacement positioning, building brand buzz

Walmart's strategic vision and marketing strategy for "Marketside" is to create a multi-line family of fresh food products and position them to shoppers as an affordable, fresh and high-quality "home meal solutions" brand and concept, which it has started doing, using a handful of marketing and promotional vehicles.

The retailer's new campaign for "Marketside," which began the first week of November, is designed to create online buzz around the brand by engaging food-oriented bloggers and "mommy" bloggers, many who are members of Walmart's moms' blogger group.

The "home meal replacement" positioning for brand "Marketside" is the central theme of the campaign. Boulder, Colorado-based design and corporate identity firm Mighty Fudge Studios, the creators of the "Marketside" product packaging, prepared an attractive and detailed collateral piece for the week-long promotion. The package was sent to the bloggers as an information piece about the brand, along with inviting them to receive a selection of free "Marketside" products over a period of time, which they could try and hopefully write about in their respective blogs, thereby creating some desired online grassroots buzz for and around the brand.

The marketing communications piece (pictured above) uses the "home meal solutions" positioning as its overall theme, focusing the "Marketside" brand message on that key element.

A number of the food-oriented and "mommy" bloggers who received the free products and market communication piece have since posted about the "Marketside" products, along with posting recipes they created using the fresh food items.

More brand 'Marketside' to come

In addition to introducing the new "Marketside" fresh food lines, Walmart has added new SKUs to many of its existing lines over the last couple months, such as new fresh bread items, ready-to-heat refrigerated soup varieties, value-added produce items and a some others.

New line creation and SKU expansion are far from over at Walmart for brand "Marketside." The retailer is currently working on additional new fresh food lines, including prepared-foods, and new SKUs to add to the existing lines, for introduction in the first half of 2011.

Stay tuned.

Related Stories

September 9, 2010: Walmart Introduces 'Marketside' Brand Packaged Fresh-Baked Breads, Sub Rolls and Chocolate Chunk Cookie

March 31, 2010: Walmart Adds Additional Marketside Fresh Food Items to Marketside.com Not Long After Our February Reports

March 9, 2010: Walmart Adds Two More SKUs to its Marketside Ready-To-Heat Fresh, Prepared Entree Line

March 2, 2010: Walmart Launching New 'Marketside Fresh Garden Salsa' Line Under its Fast-Growing Fresh Foods Store Brand

February 28, 2010: Walmart Introducing New Ready-To-Heat Prepared Entrees, Fresh Soups Under its Marketside Brand

February 28, 2010: Walmart Launching New Value-Added Pre-Packaged Fresh Produce Line Under its Marketside Fresh Foods Brand

Thursday, December 16, 2010

New Retail Center Would Bring Ralphs Supermarket, Target Store to South Los Angeles' Crenshaw Corridor

Above and below: Two views of the three-level, 300,000 square-foot "District Square" retail center/mall planned for Crenshaw Boulevard and Rodeo Road, achored by a Ralphs supermarket and Target discount format store. The Ralphs and target are at the far right. Click on the renderings to enlarge. [Credit: Charles Company.]

Southern California Market Region

[Related Story - December 16, 2010: City Council Approves Crenshaw-South Los Angeles Fresh & Easy Neighborhood Market Store Despite Opposition]

Tesco's Fresh & Easy Neighborhood Market isn't the only food and grocery retailer coming to Crenshaw Boulevard in south Los Angeles.

Developer Charles Company is working on bringing a Ralphs supermarket and a Target store, which would have one of its "P-Fresh" fresh food and grocery stores inside, to a new development, "District Square," on a six acre site at the corner of Crenshaw Boulevard and Rodeo Road in south Los Angeles. Ralphs, which is the leading grocery chain in Southern California, is owned by Kroger Co.

In addition to the Ralphs supermarket and Target store, the planned $93 million, three-level, 300,000 square-foot urban retail center, which is near Los Angeles' new Exposition Light Rail Line and the popular West Angeles Cathedral, is to include stores from off-price apparel retailers Marshall's and Ross Dress for Less, along with other retail stores and restaurants, including a Chuck E Cheese.

There is an existing Ralphs supermarket at the site. It would be demolished and a new store built on the ground-level of the 300,000 square-foot urban mall/shopping center.

The Target store would be on top level, along with a parking lot, as you can see in the architect's rendering above.

Under the plans, the City of Los Angeles is providing about 30% of the developer financing, using a federal HUD loan, along with funds from the city's Community Redevelopment Agency. There would then be a revenue sharing scheme that would see a percentage of sales tax money from the new center being used by the city to pay off the loans, rather than going into its general fund.

With two Fresh & Easy stores on Crenshaw Boulevard on the way [See -December 16, 2010: City Council Approves Crenshaw-South Los Angeles Fresh & Easy Neighborhood Market Store Despite Opposition], as well as the new Ralphs and Target stores planned for the "District Square" retail center, the Crenshaw corridor in south Los Angeles, which is underserved by grocery stores offering fresh foods and groceries at reasonable prices, is about to get a food retailing shot in the arm, providing a little added shopping sustenance for residents of the Crenshaw "food desert," added sales tax revenue for the City of Los Angeles, and competition between three food retailers - Fresh & Easy, Ralphs and Target - in a part of the city that's long been trying to lure more grocers.

Related Stories

November 9, 2010: Bullseye: Target Goes From Zero-to-Eighty-Seven 'P-Fresh' Food Markets in Southern California in Under Two Years

September 24, 2010: Target to Have 'P-fresh' Fresh Food & Grocery Markets in 850 Stores By 2011 End; First Smaller Urban Store Set For Seattle in 2012

December 10, 2010: Fresh & Easy Neighborhood Market CEO Tim Mason Says 70 New Stores Possible in Los Angeles Area

July 11, 2008: 'Food Desert' Neighborhoods and Southern California: More on the Fresh & Easy Store Planned For South Central Los Angeles

July 15, 2008: Fresh Food to Bloom in An Inner-City Food Desert: Tesco's Fresh & Easy Breaks Ground For New Store in Underserved South Los Angeles Neighborhood

Click here for a selection of stories and posts about the "food desert" issue

City Council Approves Crenshaw-South Los Angeles Fresh & Easy Neighborhood Market Store Despite Opposition

Pictured above is an artist's rendering of the planned Fresh & Easy store at 52nd Street and Crenshaw Boulevard in south Los Angeles. The design of the parking lot - it's located next to rather than behind the building - generated opposition to Fresh & Easy's plan. But twelve of the 13 members of the Los Angeles City Council voted to approve the plan with the parking lot as is, next to the store. [Artist's rendering: KL Architects.]

Southern California Market Region

[Related Story - December 16, 2010: New Retail Center Would Bring Ralphs Supermarket, Target Store to South Los Angeles' Crenshaw]

Despite objections by a number of neighborhood groups, the Los Angeles City Council voted to approve (13 members for and just one member against) a proposed Fresh & Easy Neighborhood Market store at 52nd Street and Crenshaw Boulevard, in south Los Angeles.

The store will be the fresh food and grocery chain's second market in south Los Angeles, a part of the city that's currently underserved by supermarkets offering fresh food and groceries at reasonable prices.

In September of this year the Los Angeles City Planning Commission granted Tesco-owned Fresh & Easy Neighborhood Market four of the five exemptions it requested to what's called the Crenshaw Specific Plan, an area zoning policy that prohibits certain types of new development in the neighborhood, including automotive businesses, drive-through establishments, gun and pawn shops, swap meets, public storage facilities, motels, bars not attached to dining and dancing businesses, recycling and buy-back centers and strip malls.

The four exemptions are:

>To permit two wall signs along the façade facing Crenshaw Boulevard and one pedestrian sign (three total) along the façade facing 52nd Street in lieu of the maximum of one wall sign and one Pedestrian Sign (two total) which is otherwise permitted for each business establishment located on a street corner.

>To permit a sign along the east elevation of the proposed project (Crenshaw Corridor frontage) to have 184.6 square feet of sign area, and to also permit a sign along the north elevation (52nd Street frontage) to have 124.7 square feet of sign area, both of which exceed the maximum 75 feet of sign area otherwise permitted.

>To permit the northern facing ground floor façade (facing 52nd Street) to have 20 percent transparent building elements in lieu of the otherwise required 50 percent.

>To permit a surface parking lot for the proposed Fresh & Easy Market to be located at the side of the structure instead of the rear of the building as is otherwise required.

The Crenshaw Specific Plan, which mandates that all new developments have parking behind the retail or office buildings, is also designed to encourage pedestrian foot-traffic along Crenshaw Boulevard and the neighboring streets.

Following the granting of the exemptions and approval of Fresh & Easy's plans by the planning commission for the store at 52nd Street and Crenshaw Boulevard, The Hyde Park Organizational Partnership for Empowerment (HOPE), a non-profit neighborhood organization, along with a couple other community groups appealed the commission's decision to the Los Angeles City Council. (You can view a December 3, 2010 "open letter" HOPE director Winnifred Jackson wrote about the group's opposition to the store here.)

The key point of opposition HOPE and the others have to the proposed Crenshaw Fresh & Easy market is design-related: They want the store's parking lot to be placed in back (behind) the store rather than next to it (see the artist's rendering at top). One of the exemptions to the Crenshaw Specific Plan (number four in the above list) given to Fresh & Easy allows for the parking lot to be next to rather than in back of the store.

The opponents argued to the city council at yesterday's meeting that the parking lot should be located behind the grocery market because doing so fits the elements of the Crenshaw Specific Plan, including encouraging more pedestrian-friendly development. They claim having the parking lot next to instead of in back of the Fresh & Easy store creates an automobile-related strip mall development, which is prohibited in the Crenshaw Specific (zoning) Plan. (See above.)

Tesco's Fresh & Easy says the shape of the parcel prohibits placing the parking lot behind the store.

The Los Angeles City Council, led by Councilmember Bernard C. Parks who represents L.A.'s Eighth District, disagreed with the opponents' position, however, and upheld the planning commission's decision to grant Fresh & Easy the five zoning exemptions, approving the plans for the store with the parking lot beside it rather than behind it, by a huge majority of votes.

"In a community with the highest rate of diet-related health problems - such as obesity and diabetes - as well as the lowest life expectancy in the city, this is a monumental step toward providing residents the choices they need to take control of their diet and their health," Parks said yesterday in a statement about the vote in favor of bringing the Fresh & Easy store to the majority African-American neighborhood in south Los Angeles.

Additionally, the majority of Crenshaw District residents who packed yesterday's city council meeting were in support of rather than in opposition to bringing the Fresh & Easy market to the neighborhood, regardless of where its parking lot will be situated.

Walter Cathey Jr, a regional director for Fresh & Easy Neighborhood Market in Los Angeles, worked to rally support among neighborhood residents in advance of yesterday's council vote in favor of the planned fresh food and grocery market.

Cathey also worked closely with Councilmember Parks and other supporters to make sure the project had a broad range of support, not just from neighborhood residents, but also from city officials and other stakeholders.

For example, a member of the Los Angeles Police Department spoke out in favor of Fresh & Easy's store plan at yesterday's council meeting. Andre Dixon, a senior lead officer from the 77th Division, which is located in the neighborhood, said having the parking lot next to (the approved design) rather than behind the market (what the opposition wants), was superior from a public safety standpoint because having parking behind the store would decrease visibility and pose a public safety risk.

According to Councilmember Parks, the Fresh & Easy store, which the grocer plans to start construction on early next year, will be the first new grocery market to be built in the Eighth District in a decade.

Fresh & Easy is also planning a second store on Crenshaw Boulevard, at Crenshaw and Jefferson Boulevards. The store is part of the $12 million "West Angeles Plaza" retail project that's being developed by the West Angeles Community Development Corporation.

The south Los Angeles region, which comprises numerous neighborhoods, is a "food dessert" area, meaning it offers a less than desired number supermarkets that offer fresh foods and groceries at reasonable prices.

Tesco's Fresh & Easy Neighborhood Market opened its first store in south Los Angeles in February of this year. [See - February 24, 2010: Fresh & Easy Store Opens its Doors in South Los Angeles.] That store, which is at 1025 East Adams Boulevard (Central & Adams), has thus far been one of the grocer's better performing Southern California units, our sources tell us.

The grocer also has a store in nearby Compton, which also has a history of being undeserved by supermarkets. [See - February 10, 2008: Tesco's Fresh & Easy Opens Latest New Store in 'Food Desert' City of Compton, California.]

The majority of the 92 Fresh & Easy stores in Southern California are suburban locations, located in middle-to-higher income neighborhoods in the region. There are currently 155 Fresh & Easy markets - 106 stores in California, 28 in Arizona, and 21 in Nevada.

But the Tesco-owned grocer appears, based on our research and reporting, to be considering implementing a more aggressive urban strategy as part of its new store opening plans and growth in Southern California.

For example, as we reported last week in this story - December 10, 2010: Fresh & Easy Neighborhood Market CEO Tim Mason Says 70 New Stores Possible in Los Angeles Area - Fresh & Easy Neighborhood Market CEO and Tesco corporate director, told a San Fernando Valley business group last week that the food retailer has identified 70 new store locations in Los Angeles County and could open up to that many stores in the region down the road.

We learned this week from our sources that a number of those potential future store locations are in lower-income Los Angeles neighborhoods that are underserved by supermarkets. Whether the grocer opens that many (oreven close to it) stores in Los Angeles though, we will have to wait to see.

But residents of the 52nd Street and Crenshaw Boulevard area will only have to wait perhaps until late 2011, the time period when the grocer hopes to open the market, for Tesco's Fresh & Easy to come to their south Los Angeles neighborhood.

Related Stories

December 10, 2010: Fresh & Easy Neighborhood Market CEO Tim Mason Says 70 New Stores Possible in Los Angeles Area

December 15, 2010: Fresh & Easy Neighborhood Market's California WIC Voucher Expansion Program Stalled

July 2008 piece: Tesco's to Open A Fresh & Easy Grocery Market in Low Income, Underserved South Central Los Angeles Neighborhood

February 24, 2010: Fresh & Easy Store Opens its Doors in South Los Angeles

February 23, 2010: Food Deserts & WIC Vouchers: Half A Loaf For the New Fresh & Easy Store Opening Tomorrow in South Los Angeles

July 28, 2010: What A Long, Strange Trip it's Been: South Los Angeles Will Be First Fresh & Easy Neighborhood Market Store to Accept WIC Vouchers Starting Tomorrow

July 30, 2010: Fresh & Easy Neighborhood Market Store at Central & Adams in South Los Angeles is Now Accepting WIC Vouchers; Additional Stores to Follow

July 11, 2008: 'Food Desert' Neighborhoods and Southern California: More on the Fresh & Easy Store Planned For South Central Los Angeles

July 15, 2008: Fresh Food to Bloom in An Inner-City Food Desert: Tesco's Fresh & Easy Breaks Ground For New Store in Underserved South Los Angeles Neighborhood

July 6, 2008: Former NBA Great Earvin 'Magic' Johnson is Working His Business Magic in Urban, Inner City Neighborhoods; We Offer An Idea For Tesco's Fresh & Easy

Wednesday, December 15, 2010

Fresh & Easy Neighborhood Market's California WIC Voucher Expansion Program Stalled

Related story - December 15, 2010: A Tale of Two California's: Welcome to the Once Thriving Central Valley.

In July of this year we reported that after much delay, Tesco's Fresh & Easy Neighborhood Market finally began accepting WIC Vouchers at one of its 106 stores in California, the unit at 1025 East Adams Boulevard (Central & Adams) in low-income South Los Angeles. There are 155 Fresh & Easy stores. In addition to the 106 California markets, there are 28 units in Arizona and 21 stores in Nevada.

In our story about the development - July 30, 2010: Fresh & Easy Neighborhood Market Store at Central & Adams in South Los Angeles is Now Accepting WIC Vouchers; Additional Stores to Follow - we reported that following the test at the Central & Adams store in South Los Angeles, which opened in February 2010, Fresh & Easy planned to roll out the acceptance of the vouchers, which are provided by the state to low-income mothers so they can purchase specific nutritious foods like whole milk, infant formula, whole grain cereals and breads, and fresh produce, for their children, to selected other stores in California.

At the time, Fresh & Easy was looking to expand its acceptance of the WIC Vouchers to additional stores by at least the early fall, according to our sources.

However, nearly five months later, the grocer has yet to begin accepting the vouchers at any additional Fresh & Easy Neighborhood Market stores in the Golden State, according to our research.

Not long after it began taking the WIC Vouchers at the south Los Angeles market in July, Fresh & Easy sent out a memo, which included a "WIC cabinet/shelf schematic," to store managers at various stores in Southern California and in the Central Valley (Bakersfield and Fresno regions), alerting them that an expansion to other stores would be coming in the near future. But five months later, and with 2010 coming to an end, the roll out has been long-stalled.

We've recently talked to a number of store managers and team leaders at Fresh & Easy markets in Southern California and in the Central Valley, particularly those in low-income neighborhoods, who tell us they aren't sure if or when the acceptance of WIC Vouchers will be rolled out to additional stores, despite being under the impression since this summer that such a roll out was coming well before the end of the year.

One Fresh & Easy management employee in the Central Valley tells us that at least three of the seven stores in the Bakersfield region could see a 10%-15% sales boost simply if WIC Vouchers were accepted at the markets. The employee also told us the other four stores should see an at least 5%-10% increase from WIC because WIC Voucher use is up so much since the recession hit the area hard in 2007-2008.

The Fresh & Easy worker sited a Save Mart-owned Food Maxx discount grocery store and a Safeway-owned Vons supermarket, both located near a Fresh & Easy unit in Bakersfield, that generate tens of thousands of dollars a week in sales from customers using the WIC Vouchers to purchase high-ticket items like infant formula, whole grain breads and cereals, and gallons of whole milk.

A store-level manager in the Fresno area told us a similar story, saying WIC Voucher and food stamp use has grown so much in the Central Valley region over the last few years because of the high joblessness and growing poverty rate that the particular store turns away customers regularly who attempt to purchase WIC-approved items like whole milk, produce, cereals, eggs and other items but are unaware the Fresh & Easy stores don't except the vouchers.

The manager, who has extensive grocery retailing experience in the region, said all seven of the Fresno-area Fresh & Easy stores would see sales growth if they could accept the vouchers, with at least three of the stores likely gaining double-digit sales increases if the WIC acceptance to expanded to the area.

The Central Valley has the highest joblessness rates in California, ranging from 14% unemployment in the best counties to 20% in the worse areas. California's unemployment rate is currently 12.4%.

The region's poverty rate is also among the highest and fastest-growing in the nation. Many experts have taken to calling the Central Valley "America's new Appalachia," for example, because of its high and growing poverty rate.

Unlike food stamps, which today are called SNAP and come loaded on a plastic debit card so grocery stores can handle the transfer of payments electronically at the point-of-sale, WIC Vouchers are paper, similar to a check. Grocers must process the vouchers in the same way they do paper checks.

Tesco's Fresh & Easy Neighborhood Market has self-service checkout and doesn't accept paper checks in the stores. Therefore, its point-of-sales systems aren't set-up to process the paper vouchers - along with paper checks or manufacturers' cents-off coupons.

In order to process the WIC Vouchers at the south Los Angeles store, Fresh & Easy had to make modifications to the store's point-of-sale system. Additionally, store clerks must assist each customer who pays for their purchases using the vouchers.

Based on our reporting, it appears two factors are primarily behind Fresh & Easy's having not rolled out the acceptance of the WIC Vouchers to additional California stores, despite the fact its plans, at least this summer, were to do so.

First, Fresh & Easy Neighborhood Market has had numerous problems with the adapted point-of-sale system at the Third & Adams store in south Los Angeles, in terms of processing the paper WIC Vouchers.

In addition, the grocer doesn't want to establish a full-service checkout lane in each of its stores, which it might have to do if it accepted the vouchers in all 106 of its California stores. Doing so would add to overall store labor expenses. (In our experience and analysis, the added sales from WIC would more than make up for any such added labor costs though.)

Meanwhile, store managers and clerks at numerous Fresh & Easy markets in California, particularly those in low-income neighborhoods in Los Angeles and other parts of Southern California, as well as in the Central Valley, wonder what's taking so long in terms of expanding the acceptance of the WIC Vouchers to additional stores in California?

It seems like a good question for them to ask, since as they've told us, Fresh & Easy store workers are regularly sending shoppers who come in the stores wanting to use WIC Vouchers - as well as customers who use food stamps and cash to shop at the stores but also get WIC Vouchers but can't use them when they shop at Fresh & Easy - down the street to a Vons, Ralphs, Stater Bros., Albertsons, Walmart, Save Mart or other competitor's store - virtually every chain and independent of note in California accepts WIC Vouchers - and losing needed sales in their stores.

[Editor's Note: Three years ago, Fresh & Easy Buzz first pointed out and reported on the fact that Tesco's Fresh & Easy Neighborhood Market, which opened its first stores in November 2007, didn't accept WIC Vouchers. Additionally, in analysis and commentary pieces beginning in 2008 - and right up until the grocer decided to accept the vouchers at its first store, the Central and Adams unit in South Los Angeles on July 29 - we've also pointed out in detail how, from both business (added sales) and ethical grocer perspectives, Fresh & Easy was missing the boat by not accepting WIC in its stores. All this time later, the grocer continues to miss that same boat by failing to roll out the acceptance of WIC to additional stores in California.

Below is a selection of some of those past stories from Fresh & Easy Buzz:

July 30, 2010: Fresh & Easy Neighborhood Market Store at Central & Adams in South Los Angeles is Now Accepting WIC Vouchers; Additional Stores to Follow

July 28, 2010: What A Long, Strange Trip it's Been: South Los Angeles Will Be First Fresh & Easy Neighborhood Market Store to Accept WIC Vouchers Starting Tomorrow

July 7, 2010: Tesco's Fresh & Easy Neighborhood Market to Start Accepting WIC Vouchers at Central & Adams Store in South Los Angeles This Month

September 7, 2008: Analysis & Commentary: Should Tesco's Fresh & Easy Put An Asterisk Next to its Motto? Yes; Unless it Corrects Four Operational Omissions

December 29, 2008: Tesco's Fresh & Easy, 'Food Deserts' and WIC Vouchers; A 'Year-End' Analysis & Commentary

February 10, 2008: Tesco's Fresh & Easy Opens Latest New Store in 'Food Desert' City of Compton, California

July 2008: Tesco's to Open A Fresh & Easy Grocery Market in Low Income, Underserved South Central Los Angeles Neighborhood

March 7, 2009: Analysis & Commentary: The Seven Retail Operations Changes Tesco's Fresh & Easy Neighborhood Market Needs to Make to Help it Get On the Success Track

July 11, 2008: 'Food Desert' Neighborhoods and Southern California: More on the Fresh & Easy Store Planned For South Central Los Angeles

July 15, 2008: Fresh Food to Bloom in An Inner-City Food Desert: Tesco's Fresh & Easy Breaks Ground For New Store in Underserved South Los Angeles Neighborhood

February 23, 2010: Food Deserts & WIC Vouchers: Half A Loaf For the New Fresh & Easy Store Opening Tomorrow in South Los Angeles

February 24, 2010: Fresh & Easy Store Opens its Doors in South Los Angeles

April 22, 2010: Breaking Buzz: Tesco's Fresh & Easy to Accept WIC Vouchers at its East Adams Store in South Los Angeles

May 14, 2010: Fresh & Easy Neighborhood Market Not Yet Accepting WIC Vouchers at South L.A. Store; No Start Date Set

July 6, 2008: Former NBA Great Earvin 'Magic' Johnson is Working His Business Magic in Urban, Inner City Neighborhoods; We Offer An Idea For Tesco's Fresh & Easy

May 12, 2008: Food Deserts: Coalition to Create 'Blue Ribbon' Commission, Draft Report to Encourage Grocers to Open Stores in Underserved Los Angeles Neighborhoods

February 13, 2008: Leading Democratic Candidate for President Barack Obama Joins Group in Asking Tesco's Fresh & Easy to Put More Stores in Underserved Neighborhoods

June 3, 2008: Fresh & Easy Buzz Redux: Barack Obama to Tesco's Fresh & Easy in Our February 13 Piece: 'Build More Stores in Underserved Neighborhoods'

September 23, 2008: Food Retailing, Society & Economics: 'Food Deserts' and Public Health

March 20, 2009: Federal Government Spending Bill Increases WIC Voucher Program Dollars by $1.2 Billion; 21 Percent Increase

May 28, 2008: Las Vegas Market Report: A 'Food Desert' Neighborhood to Get A New Grocery Store; But it's Not A Fresh & Easy Neighborhood Market

April 27, 2008: New Study Points to Increasing Urban 'Food Deserts' In North America: Locating Stores in 'Food Deserts' A Part of Fresh & Easy's Strategy

March 7, 2008: Former NBA All-Star and Sacramento Native Kevin Johnson is the Driving Force Behind a Fresh & Easy Market in Sacramento's Oak Park Neighborhood

July 29, 2008: Tesco's Fresh & Easy and San Francisco's Tenderloin Redux: Upcoming Developments Offer First Mover Opportunity For Fresh & Easy or Competitors

A Tale of Two California's: Welcome to the Once Thriving Central Valley


Related story: December 15, 2010: Fresh & Easy Neighborhood Market's WIC Voucher Store Expansion Program Stalled.

[Fresh & Easy Buzz editor's note: Noted historian, classics scholar and writer Victor Davis Hanson, who's also a senior fellow at Stanford University's Hoover Institution, is a native of Selma, a small city near Fresno in California's Central Valley, where Tesco's Fresh & Easy Neighborhood market has 14 stores - seven each in the Fresno and Bakersfield metro areas.

Hanson currently lives in Selma, where he runs a family farm in addition to pursuing his scholarly work. Two of his most recent books are, 'Makers of Ancient Strategy: From the Persian Wars to the Fall of Rome,' which he edited, and 'The Father of Us All: War and History, Ancient and Modern,' which he authored.

Victor Davis Hanson, who's also a contributing writer for the conservative publication National Review, spent the last three weeks touring the Fresno, California area and other parts of the valley, including its many rural cities and small towns, by bicycle and automobile. The Central Valley native son scholar- farmer wrote about the results of what he calls his "unscientific experiment" in an essay, "Two California's," published in today's edition of National Review Online.

People of differing political ideologies can disagree with Victor Davis Hanson's arguments as to why the Central Valley is where it is today in terms of its high poverty and high joblessness. But despite those reasonable disagreements, the writer paints a very real picture of a region - California's Central Valley - which just happens to produce more food and fiber than any other place in the world - that's in very real and serious economic trouble.

Below is the Central Valley native's essay, which we're pleased to share with our readers today, courtesy of National Review Online.

December 15, 2010
Two Californias
Abandoned farms, Third World living conditions, pervasive public assistance - welcome to the once-thriving Central Valley.

By: Victor Davis Hanson

The last three weeks I have traveled about, taking the pulse of the more forgotten areas of central California. I wanted to witness, even if superficially, what is happening to a state that has the highest sales and income taxes, the most lavish entitlements, the near-worst public schools (based on federal test scores), and the largest number of illegal aliens in the nation, along with an overregulated private sector, a stagnant and shrinking manufacturing base, and an elite environmental ethos that restricts commerce and productivity without curbing consumption.

During this unscientific experiment, three times a week I rode a bike on a 20-mile trip over various rural roads in southwestern Fresno County. I also drove my car over to the coast to work, on various routes through towns like San Joaquin, Mendota, and Firebaugh. And near my home I have been driving, shopping, and touring by intent the rather segregated and impoverished areas of Caruthers, Fowler, Laton, Orange Cove, Parlier, and Selma. My own farmhouse is now in an area of abject poverty and almost no ethnic diversity; the closest elementary school (my alma mater, two miles away) is 94 percent Hispanic and 1 percent white, and well below federal testing norms in math and English.

Here are some general observations about what I saw (other than that the rural roads of California are fast turning into rubble, poorly maintained and reverting to what I remember seeing long ago in the rural South). First, remember that these areas are the ground zero, so to speak, of 20 years of illegal immigration. There has been a general depression in farming — to such an extent that the 20- to-100-acre tree and vine farmer, the erstwhile backbone of the old rural California, for all practical purposes has ceased to exist.

On the western side of the Central Valley, the effects of arbitrary cutoffs in federal irrigation water have idled tens of thousands of acres of prime agricultural land, leaving thousands unemployed. Manufacturing plants in the towns in these areas — which used to make harvesters, hydraulic lifts, trailers, food-processing equipment — have largely shut down; their production has been shipped off overseas or south of the border. Agriculture itself — from almonds to raisins — has increasingly become corporatized and mechanized, cutting by half the number of farm workers needed. So unemployment runs somewhere between 15 and 20 percent.

Many of the rural trailer-house compounds I saw appear to the naked eye no different from what I have seen in the Third World. There is a Caribbean look to the junked cars, electric wires crisscrossing between various outbuildings, plastic tarps substituting for replacement shingles, lean-tos cobbled together as auxiliary housing, pit bulls unleashed, and geese, goats, and chickens roaming around the yards. The public hears about all sorts of tough California regulations that stymie business — rigid zoning laws, strict building codes, constant inspections — but apparently none of that applies out here.\

It is almost as if the more California regulates, the more it does not regulate. Its public employees prefer to go after misdemeanors in the upscale areas to justify our expensive oversight industry, while ignoring the felonies in the downtrodden areas, which are becoming feral and beyond the ability of any inspector to do anything but feel irrelevant. But in the regulators’ defense, where would one get the money to redo an ad hoc trailer park with a spider web of illegal bare wires?

Many of the rented-out rural shacks and stationary Winnebagos are on former small farms — the vineyards overgrown with weeds, or torn out with the ground lying fallow. I pass on the cultural consequences to communities from the loss of thousands of small farming families. I don’t think I can remember another time when so many acres in the eastern part of the valley have gone out of production, even though farm prices have recently rebounded. Apparently it is simply not worth the gamble of investing $7,000 to $10,000 an acre in a new orchard or vineyard. What an anomaly — with suddenly soaring farm prices, still we have thousands of acres in the world’s richest agricultural belt, with available water on the east side of the valley and plentiful labor, gone idle or in disuse. Is credit frozen? Are there simply no more farmers? Are the schools so bad as to scare away potential agricultural entrepreneurs? Or are we all terrified by the national debt and uncertain future.

California coastal elites may worry about the oxygen content of water available to a three-inch smelt in the Sacramento–San Joaquin River Delta, but they seem to have no interest in the epidemic dumping of trash, furniture, and often toxic substances throughout California’s rural hinterland. Yesterday, for example, I rode my bike by a stopped van just as the occupants tossed seven plastic bags of raw refuse onto the side of the road. I rode up near their bumper and said in my broken Spanish not to throw garbage onto the public road. But there were three of them, and one of me. So I was lucky to be sworn at only. I note in passing that I would not drive into Mexico and, as a guest, dare to pull over and throw seven bags of trash into the environment of my host.

In fact, trash piles are commonplace out here — composed of everything from half-empty paint cans and children’s plastic toys to diapers and moldy food. I have never seen a rural sheriff cite a litterer, or witnessed state EPA workers cleaning up these unauthorized wastelands. So I would suggest to Bay Area scientists that the environment is taking a much harder beating down here in central California than it is in the Delta. Perhaps before we cut off more irrigation water to the west side of the valley, we might invest some green dollars into cleaning up the unsightly and sometimes dangerous garbage that now litters the outskirts of our rural communities.

We hear about the tough small-business regulations that have driven residents out of the state, at the rate of 2,000 to 3,000 a week. But from my unscientific observations these past weeks, it seems rather easy to open a small business in California without any oversight at all, or at least what I might call a “counter business.” I counted eleven mobile hot-kitchen trucks that simply park by the side of the road, spread about some plastic chairs, pull down a tarp canopy, and, presto, become mini-restaurants. There are no “facilities” such as toilets or washrooms. But I do frequently see lard trails on the isolated roads I bike on, where trucks apparently have simply opened their draining tanks and sped on, leaving a slick of cooking fats and oils. Crows and ground squirrels love them; they can be seen from a distance mysteriously occupied in the middle of the road.

At crossroads, peddlers in a counter-California economy sell almost anything. Here is what I noticed at an intersection on the west side last week: shovels, rakes, hoes, gas pumps, lawnmowers, edgers, blowers, jackets, gloves, and caps. The merchandise was all new. I doubt whether in high-tax California sales taxes or income taxes were paid on any of these stop-and-go transactions.

In two supermarkets 50 miles apart, I was the only one in line who did not pay with a social-service plastic card (gone are the days when “food stamps” were embarrassing bulky coupons). But I did not see any relationship between the use of the card and poverty as we once knew it: The electrical appurtenances owned by the user and the car into which the groceries were loaded were indistinguishable from those of the upper middle class.

By that I mean that most consumers drove late-model Camrys, Accords, or Tauruses, had iPhones, Bluetooths, or BlackBerries, and bought everything in the store with public-assistance credit. This seemed a world apart from the trailers I had just ridden by the day before. I don’t editorialize here on the logic or morality of any of this, but I note only that there are vast numbers of people who apparently are not working, are on public food assistance, and enjoy the technological veneer of the middle class. California has a consumer market surely, but often no apparent source of income. Does the $40 million a day supplement to unemployment benefits from Washington explain some of this

Do diversity concerns, as in lack of diversity, work both ways? Over a hundred-mile stretch, when I stopped in San Joaquin for a bottled water, or drove through Orange Cove, or got gas in Parlier, or went to a corner market in southwestern Selma, my home town, I was the only non-Hispanic — there were no Asians, no blacks, no other whites. We may speak of the richness of “diversity,” but those who cherish that ideal simply have no idea that there are now countless inland communities that have become near-apartheid societies, where Spanish is the first language, the schools are not at all diverse, and the federal and state governments are either the main employers or at least the chief sources of income — whether through emergency rooms, rural health clinics, public schools, or social-service offices. An observer from Mars might conclude that our elites and masses have given up on the ideal of integration and assimilation, perhaps in the wake of the arrival of 11 to 15 million illegal aliens.

Again, I do not editorialize, but I note these vast transformations over the last 20 years that are the paradoxical wages of unchecked illegal immigration from Mexico, a vast expansion of California’s entitlements and taxes, the flight of the upper middle class out of state, the deliberate effort not to tap natural resources, the downsizing in manufacturing and agriculture, and the departure of whites, blacks, and Asians from many of these small towns to more racially diverse and upscale areas of California.

Fresno’s California State University campus is embroiled in controversy over the student body president’s announcing that he is an illegal alien, with all the requisite protests in favor of the DREAM Act. I won’t comment on the legislation per se, but again only note the anomaly. I taught at CSUF for 21 years. I think it fair to say that the predominant theme of the Chicano and Latin American Studies program’s sizable curriculum was a fuzzy American culpability. By that I mean that students in those classes heard of the sins of America more often than its attractions. In my home town, Mexican flag decals on car windows are far more common than their American counterparts.

I note this because hundreds of students here illegally are now terrified of being deported to Mexico. I can understand that, given the chaos in Mexico and their own long residency in the United States. But here is what still confuses me: If one were to consider the classes that deal with Mexico at the university, or the visible displays of national chauvinism, then one might conclude that Mexico is a far more attractive and moral place than the United States.

So there is a surreal nature to these protests: something like, “Please do not send me back to the culture I nostalgically praise; please let me stay in the culture that I ignore or deprecate.” I think the DREAM Act protestors might have been far more successful in winning public opinion had they stopped blaming the U.S. for suggesting that they might have to leave at some point, and instead explained why, in fact, they want to stay. What it is about America that makes a youth of 21 go on a hunger strike or demonstrate to be allowed to remain in this country rather than return to the place of his birth?

I think I know the answer to this paradox. Missing entirely in the above description is the attitude of the host, which by any historical standard can only be termed “indifferent.” California does not care whether one broke the law to arrive here or continues to break it by staying. It asks nothing of the illegal immigrant — no proficiency in English, no acquaintance with American history and values, no proof of income, no record of education or skills. It does provide all the public assistance that it can afford (and more that it borrows for), and apparently waives enforcement of most of California’s burdensome regulations and civic statutes that increasingly have plagued productive citizens to the point of driving them out. How odd that we overregulate those who are citizens and have capital to the point of banishing them from the state, but do not regulate those who are aliens and without capital to the point of encouraging millions more to follow in their footsteps. How odd — to paraphrase what Critias once said of ancient Sparta — that California is at once both the nation’s most unfree and most free state, the most repressed and the wildest.

Hundreds of thousands sense all that and vote accordingly with their feet, both into and out of California — and the result is a sort of social, cultural, economic, and political time-bomb, whose ticks are getting louder.

Tuesday, December 14, 2010

Fresh & Easy Neighborhood Market to Open 5800 Third Street 'Flagship' Store in San Francisco Later in 2011 Than Originally Announced


Northern California Market Region Special Report

Tesco's Fresh & Easy Neighborhood Market now plans to open what we've termed its Northern California "flagship" market, the store at 5800 Third Street in San Francisco's Bayview District pictured above, later in 2011 than it had originally publicly announced this summer. [See - Tesco Will Open its First Eight Fresh & Easy Neighborhood Market Stores in Northern California in 'Early 2011.' for the August 19, 2010 announcement].

Instead of opening the store in "early 2011" (February or March based on our reporting), as it announced in would be doing in the August 19, 2010 press release (see above), El Segundo, (Southern) California-based Fresh & Easy Neighborhood Market is now planning to open the market in the new 5800 Third Street residential condominium project at Third Street & Carroll Avenue in San Francisco in the early summer of 2011, according to our sources, which include a person in a position to know about such plans at the grocery chain.

Additionally, John Gavin, an account manager at the San Francisco-based public relations firm HMS Associates, which Tesco's Fresh & Easy has hired to do public and community relations ahead of its Northern California launch next year, told San Francisco's Southeast Sector Food Access working group (SEFA) at a recent meeting that the opening of the future Fresh & Easy store at 5800 Third Street is now planned for the "early summer of 2011," rather than in "early 2011," according to members in attendance who talked to Fresh & Easy Buzz. The neighborhood association promotes increased access to healthy foods for residents in San Francisco's Bayview neighborhood, along with advocating for other food and nutrition objectives.

In early November of this year, Tesco's Fresh & Easy Neighborhood Market sent out a second press release about its planned "early 2011" Northern California launch. In the release Fresh & Easy listed 12 stores it said it's currently hiring for and that will be the first batch of markets to be opened in "early 2011." The 5800 Third Street unit wasn't one of the 12 Fresh & Easy units listed in the release, even though it was one of the first eight Fresh & Easy stores the grocer said it would be opening in Northern California in "early 2011," in that original August 19, 2010 announcement. [See - November 12, 2010: Postponed But Not Abandoned: Fresh & Easy Neighborhood Market Gearing Up For Northern California Launch for details about the early November announcement.]

Regular readers of Fresh & Easy Buzz are well aware of a caveat we often mention when it comes to the dates of new store openings at Tesco's Fresh & Easy Neighborhood Market. The caveat: Planned new store opening dates at Fresh & Easy are fluid and dynamic. In other words, they're always subject to change.

Below are the locations of the 12 stores Fresh & Easy Neighborhood Market at present plans to open in "early 2011." According to our current information, the first stores out of the 12 are set to start opening in March of next year. However, depending on a couple of variables, some of those first 12 stores could be opened starting in February 2011.

• Concord - Clayton Rd. & Ygnacio Valley Rd.
• Danville - Diablo Blvd. & Hwy. 680
• Hayward - Mission Blvd. & Rousseau St.
• Modesto - Oakdale Rd. & Lancey Dr.
• Napa - Imola Ave. & Jefferson St.
• Pacifica - Cabrillo Hwy. & Linda Mar Blvd.
• Pleasanton - Rosewood Dr. & Santa Rita Rd.
• San Francisco - 32nd Ave. & Clement St.
• San Jose - Bird Ave. & Minnesota Ave.
• San Jose - Saratoga Ave. & Payne Ave.
• Vacaville - Elmira Rd. & Nut Tree - Vacaville Rd.
• Walnut Creek - Ygnacio Valley Rd. & San Carlos Rd.

Ten of the 12 stores are in the San Francisco Bay Area.

Vacaville is about halfway between the nine-county San Francisco Bay Area and the Sacramento region, where Fresh & Easy has numerous sites it plans to start opening at a later time.

Modesto is located in the Northern Central Valley. Modesto, and the store at Oakdale & Lancy, is a little over an hour's drive from the Pleasanton unit at Rosewood & Santa Rita, which is the closest Bay Area Fresh & Easy store to Modesto in terms of proximity.

In addition to the 5800 Third Street store in San Francisco's Bayview District, Fresh & Easy Neighborhood Market also previously planned to open a market, which it's had since late 2007-early 2008, at Tasman Drive & Fair Oaks Avenue in Sunnyvale, California near San Jose in the first quarter of 2011. We reported on that development in a September 22, 2010 story - Fresh & Easy Neighborhood Market Plans to Open Two Additional Stores in Northern California in Early 2011.

However, according to our sources, Fresh & Easy has decided to postpone the opening of that store for later next year as well. Instead, the grocer has replaced it for an "early 2011" opening with a second San Jose unit, at Saratoga Avenue & Payne Avenue, which is one of the 12 stores in the list at top.

We broke the news of the existence of the Saratoga Avenue and Payne Avenue future Fresh & Easy store location in a November 5, 2010 story - Fresh & Easy Neighborhood Market Queuing Up Three Additional Stores in Northern California For Early-to-Mid 2011 Openings - a week before Tesco's Fresh & Easy Neighborhood Market announced the location and included it as one of the 12 stores set for "early 2011" openings.

Prior to our November 5, 2010 story Fresh & Easy had not yet even announced it planned a store at the Saratoga & Payne location in San Jose.

Tesco's Fresh & Easy Neighborhood Market currently plans to open 22 new stores in the first quarter of 2011, all in California - the 12 units in Northern California, along with 10 new stores in Southern California.

The 10 new Southern California Fresh & Easy markets are set to open between January-March 2011, as we've previously reported. [See - November 4, 2010: Fresh & Easy Neighborhood Market Confirms Our October Reports On 10 New Stores Opening in Early 2011; October 25, 2010: Fresh & Easy Neighborhood Market to Open 10 New Stores in 10 Southern California Cities in January-February 2011; and October 17, 2010: No Additional New Fresh & Easy Neighborhood Market Stores Set to Open This Year; Ten New Units Planned For January 2011.

Tesco will end 2010 with 155 of its small-format Fresh & Easy Neighborhood Market fresh food and grocery stores in California, southern Nevada and metropolitan Phoenix, Arizona, down from 168 units. The grocer closed 13 under-performing stores in November. [See - 13 Closing Fresh & Easy Stores List.]

There are 106 Fresh & Easy stores in California - 92 units in Southern California; seven stores in the Bakerfiedl metro region; and seven Fresh & Easy markets in the Fresno area. There are 28 Fresh & Easy stores in metropolitan Phoenix, Arizona and 21 units in metro Las Vegas, Nevada.

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From the Editor's Desk - Fresh & Easy Northern California: A Reporting Chronology

Fresh & Easy Buzz has been ahead of the curve all year on Fresh & Easy Neighborhood Market's planned Northern California launch.

For example, in this story on April 19, 2010 - April 19, 2010 - Tesco Debating Whether to Launch Fresh & Easy Into Northern California This Fiscal Year... or Wait - we reported and detailed a debate within Tesco's Fresh & Easy about launching into Northern California.

Tesco originally planned to launch into the region in early 2009 but postponed it. The grocer also internally postponed a 2010 launch.

On June 26, we followed that report up with a story in which we reported the grocer's plans to announce when it would launch into Northern California and open its first stores in the region. See - June 26, 2010: Tesco Planning to Announce in July When First Northern California Fresh & Easy Neighborhood Market Stores to Open.

We also offered additional evidence of our June 26, 2010 report in this piece, which we published on July 29, 2010: Tesco's Fresh & Easy Neighborhood Market Putting Together List of Managers Interested in Transferring to Northern California

Tesco's Fresh & Easy announced its plans to launch into Northern California 19 days after we reported it would in our June 26 story, doing so on August 19, 2010. See - August 21, 2010: April 2010 Prediction Correct: February 2011 Target to Open First Eight Fresh & Easy Neighborhood Market Stores in Northern California; and August 19, 2010: Tesco Will Open its First Eight Fresh & Easy Neighborhood Market Stores in Northern California in 'Early 2011.' August 19 was when Fresh & Easy offered the list of the original eight stores it planned to open in "early 2011."

We also reported on the additional stores, comprising the 12, that Fresh & Easy plans to open in "early 2011" before the grocer announced the revised list on November 12 of this year. See - November 12, 2010: Postponed But Not Abandoned: Fresh & Easy Neighborhood Market Gearing Up For Northern California Launch.

Below are those reports:

>September 14, 2010: Eight Plus One: Napa Unit Added to Eight Fresh & Easy Neighborhood Market Stores Opening in Northern CA in Early 2011

>September 22, 2010: Fresh & Easy Neighborhood Market Plans to Open Two Additional Stores in Northern California in Early 2011

>September 22, 2010: Tesco's Fresh & Easy Neighborhood Market Planning A New, Third Store in San Jose, California

>November 5, 2010: Fresh & Easy Neighborhood Market Queuing Up Three Additional Stores in Northern California For Early-to-Mid 2011 Openings

Additionally, in July our 'The Insider' columnist wrote this column - July 18, 2010: 'The Insider' - When it Comes to Northern California - its Competitors are Rome Burning and Tesco's Fresh & Easy Neighborhood Market is Nero Playing the Fiddle - which received thousands of hits, according to our blog and twitter analytics, about the competitive danger Tesco faced if it continued to postpone its Northern California launch.

Tesco's Fresh & Easy announced its plans to enter the Northern California market region on August 19, a month and a day after we published 'The Insider's' July 18 column. See - August 19, 2010: Tesco Will Open its First Eight Fresh & Easy Neighborhood Market Stores in Northern California in 'Early 2011.' Plus - August 21, 2010: April 2010 Prediction Correct: February 2011 Target to Open First Eight Fresh & Easy Neighborhood Market Stores in Northern California.

Below are some additional stories in our coverage so far this year on Fresh & Easy Neighborhood Market and its planned "early 2011" launch:

>May 28, 2010: First Phase of Fresh & Easy Neighborhood Market-Anchored Condo Development in San Francisco's Bayview Set For Completion in June

>July 21, 2010: Vacant Fresh & Easy Neighborhood Market Store in Pacifica, California Has the City's Mayor in a Pickle

>August 22, 2010: The Insider: Challenges & Opportunities: Tesco's Fresh & Easy Neighborhood Market Will Supply its Northern CA Stores From its Riverside County DC in Southern CA

[Editor's Note: We began our 'Northern California Market Region Special Report' series in April of this year. It's one in a number of special report series' we've done in Fresh & Easy Buzz over the last three years. Taken as a whole, we beleive the nine months' of stories offers one of the best up-to-date snap shots of the Northern California market region, which Tesco's Fresh & Easy Neighborhood Market plans to enter in early 2011, that's currently available. Below are the stories in the series thus far. Click on the title to read the story.]

December 7, 2010: Sunflower Farmers Market Confirms Our Report It's Headed to Northern California; Roseville Store to Open April 2011

December 9, 2010: Launching Sunflower Farmers Market Into Northern California is a 'Second Act' of Sorts For Founder-CEO Mike Gilliland

November 30, 2010: DeLano's IGA Markets Closing Five Stores in San Francisco & Marin County; Fairfax, Davis Units to Remain Open (For Now)

November 29, 2010: Veteran Grocer Harley DeLano's 'DeLano IGA Markets' Chain On the Verge of Closure in San Francisco Bay Area

November 22, 2010: Tesco's Fresh & Easy Neighborhood Market Plans Five New Stores in Northern California's Sacramento Region

November 12, 2010: Postponed But Not Abandoned: Fresh & Easy Neighborhood Market Gearing Up For Northern California Launch

November 8, 2010 - Fresh & Easy Neighborhood Market's '5800 Third Street' Northern California 'Flagship' Store in San Francisco is Taking Shape

November 5, 2010: Fresh & Easy Neighborhood Market Queuing Up Three Additional Stores in Northern California For Early-to-Mid 2011 Openings

November 3, 2010: Tesco's Fresh & Easy Neighborhood Market Plans New Store in Northern Central Valley, California City of Ceres

November 1, 2010: Tesco's Fresh & Easy Neighborhood Market Planning to Build its First Store in Northern California City of Brentwood

October 30, 2010: Raley's Launches New 'Raley's TO GO' Pre-Packaged, Refrigerated Fresh-Prepared Foods Line

October 27, 2010: Save Mart CEO Bob Piccinini Poised to Make it to the 'Bigs' as Member of Golden State Warriors' Ownership Group

September 26, 2010: While Tesco's Fresh & Easy Neighborhood Market Postponed, Target Opened 42 'P-Fresh' Fresh Food and Grocery Markets in Northern California

September 22, 2010: Sunflower Makes Three: Sunflower Farmers Market's First Northern California Store Will Be in Roseville

September 22, 2010: Tesco's Fresh & Easy Neighborhood Market Planning A New, Third Store in San Jose, California

September 22, 2010: Fresh & Easy Neighborhood Market Plans to Open Two Additional Stores in Northern California in Early 2011

September 21, 2010: A Look Inside Whole Foods Market's Newest Store, A Mall Location in Santa Rosa, California

September 20, 2010: About Today's Walmart Stores, Inc. Smaller Stores Media Frenzy: We Scooped it On July 6, 2010

September 19, 2010: Whole Foods Market Gives Itself A 30th Birthday Present: 299th Store Opens This Week in Santa Rosa, California

September 18, 2010: Keep On Truckin' - Whole Foods Market Celebrates 30 Years This Weekend

September 14, 2010: Eight Plus One: Napa Unit Added to Eight Fresh & Easy Neighborhood Market Stores Opening in Northern CA in Early 2011

September 5, 2010: BevMo Chain Ends Full Time Employment For Store Workers; They Say No Way and Join With UFCW Union to Demand 'A Better BevMo'

September 3, 2010: How the California Grocers Association and its Members Can Snatch Victory From the Jaws of the Defeat of California's Plastic Bag Ban

August 25, 2010: Going Rural: New Fresh & Easy Neighborhood Market Store Planned for Sutter Creek in Northern California

August 23, 2010: Hybrid 'Good Eats' Market-Cafe From Raley's CEO Michael Teel & Company Opens Today in Sacramento CA

August 22, 2010: The Insider: Challenges & Opportunities: Tesco's Fresh & Easy Neighborhood Market Will Supply its Northern CA Stores From its Riverside County DC in Southern CA

August 21, 2010: April 2010 Prediction Correct: February 2011 Target to Open First Eight Fresh & Easy Neighborhood Market Stores in Northern California

August 19, 2010: Tesco Will Open its First Eight Fresh & Easy Neighborhood Market Stores in Northern California in 'Early 2011.'

August 17, 2010: Henry's Farmers Market 'Beats' Fresh & Easy Neighborhood Market to Northern California Despite Multi-Year Head Start; Elk Grove Store Opens Tomorrow

July 29, 2010: Tesco's Fresh & Easy Neighborhood Market Putting Together List of Managers Interested in Transferring to Northern California

July 25, 2010: Safeway to Start Construction on New Pleasanton, California Flagship Store Soon; Thanksgiving 2011 Target Opening

July 22, 2010: 'The Insider' - After Four Years in the High Weeds in Northern & Central California, Kroger Co. is Emerging to Grow its Foods Co Chain

July 21, 2010: Vacant Fresh & Easy Neighborhood Market Store in Pacifica, California Has the City's Mayor in a Pickle

July 18, 2010: 'The Insider' - When it Comes to Northern California - its Competitors are Rome Burning and Tesco's Fresh & Easy Neighborhood Market is Nero Playing the Fiddle

July 14, 2010: Tony Bennett Has Nothing on Whole Foods Market When it Comes to Loving San Francisco...That City By the Bay

July 6, 2010: Walmart Looking for Store Sites in Northern California For 20,000 Sq-Ft Neighborhood Market by Walmart Prototype Store

June 28, 2010: Smart & Final to Open its New Format SmartCo Foods Stores in California and Arizona

June 26, 2010: Tesco Planning to Announce in July When First Northern California Fresh & Easy Neighborhood Market Stores to Open

June 14, 2010: Newly-Named Whole Foods Market CO-CEO Walter Robb Comes Full Circle With the Opening of the New Store in Mill Valley CA

June 5, 2010: Sprouts Farmers Market Opens First Northern California Store in Sunnyvale; Strikes Up Partnership With Local Non-Profit Farm

May 29, 2010: Going Rural: Fresh & Easy Neighborhood Market to Build First Store in Los Banos, California

May 28, 2010: First Phase of Fresh & Easy Neighborhood Market-Anchored Condo Development in San Francisco's Bayview Set For Completion in June

May 9, 2010: A Whopping 15 of Whole Foods Market's 41 New Stores in Development are in California - And Nine of The 15 Are In Northern CA

May 8, 2010: Sprouts, and Likely Henry's to Beat Fresh & Easy to Northern California Despite it's Big Head Start

May 6, 2010: Going Smaller & Getting 'Hybrid': Walmart's Smaller Supercenter in Vacant Retail Buildings Strategy Began in 2008

April 19, 2010: Tesco Debating Whether to Launch Fresh & Easy Into Northern California This Fiscal Year... or Wait

[Also: click here , here and here for a selection of past stories on Fresh & Easy and Northern Calfornia.]

Monday, December 13, 2010

House (Sparking) Cider Rules at Fresh & Easy Neighborhood Market

Private Brand Showcase

Tesco's Fresh & Easy Neighborhood Market has introduced a new, two-item line of sparkling cider under its 'fresh&easy' private brand, just in time for the Christmas and New Year's holiday season, which is the key retailing period for the fizzy, fruit-flavored non-alcoholic beverages.

The house brand sparking cider (pictured at top) comes in two varieties - apple and grape. Apple is the leading flavor in the sparkling cider category in the U.S., followed by grape.

Both varieties of the 'fresh&easy' Sparkling Cider retail in the stores everyday for $2.29 bottle. This week Fresh & Easy has the items on promotion at $1.99 bottle.

The packaging for the sparkling ciders was designed for Fresh & Easy Neighborhood Market by London-based international design firm P&W, which has a solid history of product-packaging design in the United Kingdom for parent company Tesco, and has designed the packaging for numerous fresh&easy brand lines and items since the grocer began creating its private brand products at corporate headquarters in El Segundo, California in 2006-2007.

Sparkling ciders are primarily seasonal specialty beverage items in terms of sales frequency and movement. Category sales in the U.S. are highest during the Christmas and New Year's holiday period. Sales of the beverages also spikes during other festive holidays, such as Easter, Valentines Day and (particularly of apple) Halloween.

The fizzy and fruity beverages have also become a beverage choice of consumers for celebrations like birthdays and similar personal events because they offer a non-alcoholic but still festive option for their guests.

Emphasis on niche, specialty products

The new sparkling cider line fits with what has been the primary emphasis of Fresh & Easy Neighborhood Market's 'fresh&easy' private brand new product development in the shelf-stable dry grocery and beverage segment over the last two years. That focus: Specialty or niche-oriented packaged goods products, including those with natural/organic and premium attributes.

For example, the Tesco-owned fresh food and grocery chain recently introduced a new line of imported premium chocolate cookies under its 'fresh&easy' brand.

Packaging for the cookie line was also designed by P&W.

The cookies, which are covered in Belgian chocolate and have a variety of different fillings, come in four varieties: Orange flavored Belgian Dark Chocolate; Coconut Belgian White Chocolate; Caramel Belgian Milk Chocolate; and Hazelnut Belgian Milk Chocolate (pictured below).
Another recent example of Fresh & Easy's specialty foods private brand focus include bagged plantain chips, which we wrote about in Private Brand Showcase in October - October 16, 2010: Fresh & Easy Neighborhood Market 'Bags' the Humble and Nutritious Plantain For A New Snack Chip Item. The niche item focuses on both specialty and natural attributes.

Two other recent examples of the specialty focus are the line of' 'fresh&easy' brand kids' cereal and fruit candies, both introduced earlier this year. See -October 16, 2010: Fresh & Easy Neighborhood Market's Private Brand Kids' Cereal Wins Bronze 'Pentaward' in 2010 Packaging Design Competition. Also see - July 17, 2010: New Fresh & Easy Neighborhood Market Clock-Shaped Private Brand Candy Line Hits the Shelves at Fresh & Easy and June 24, 2010: New Fresh & Easy Clock Logo-Shaped Candies Are A Pretty Sweet Idea.

The kids' cereal line focuses on a niche market - kids - which makes it a specialty-oriented item rather than a mass-market one. The candies, which are in the shape of Fresh & Easy's clock logo, are niche and specialty-oriented as well, based on their unique shape and flavor profile.

The 'fresh&easy' brand is the fresh food and grocery chain's primary house brand.

Brand 'eatwell'

Fresh & Easy Neighborhood Market's other private brands include 'eatwell,' which it introduced early this year, starting with a line of ready-to-eat and ready-to-heat fresh-prepared foods. [See - April 2, 2010: Fresh & Easy's New 'EatWell' Healthier Fresh, Prepared Foods Brand to Hit Stores on April 7.]

The 'eatwell' brand is positioned as Fresh & Easy's healthy foods' brand, similar to what Safeway Stores has done with its 'Eating Right' brand, which it introduced a few years ago and has continued to expand. 'Eat Well' is approaching $1 billion in annual sales, according to Safeway Stores, Inc. CEO Steve Burd. To put the 'Eating Right' brand's sales in perspective, $1 billion is nearly double the most recently reported annual sales for Tesco's Fresh & Easy Neighborhood Market.

Over the summer, Tesco's Fresh & Easy then extended its 'eatwell' brand into the dry grocery category, introducing a canned chili item under the healthy foods' house brand. [See - August 18, 2010: Fresh & Easy Neighborhood Market Extending 'eatwell' Healthy Foods' Private Brand Into Dry Grocery Category

Most recently, the grocer extended 'eatwell' into the frozen foods category, when it introduced a line of frozen meal items, based on the varieties of the 'eatwell' fresh-prepared foods entrees adn side-dishes, in September, as we reported on exclusively. [See - September 27, 2010: First Items in Fresh & Easy Neighborhood Market's 'eatwell' Brand Frozen Foods Line Arriving in Store Freezer Cases This Week.

Brand 'fresh&easy' 'goodness'

This year Fresh & Easy also expanded its 'fresh&easy goodness' co-branded (goodness is the primary brand name but the packaging also includes fresh&easy as a secondary brand name) line, which is targeted to kids as a healthy foods' alternative. [ See - August 29, 2010: Fresh & Easy Neighborhood Market Expanding its fresh&easy 'goodness' Co-Branded Line; Launching Numerous New Items.]

Tesco's Fresh & Easy meighborhood Market is in the process of developing a number of new food and beverage items under the 'fresh&easy goodness' brand. The new items are scheduled to be introduced into the stores early next year, according to our sources.

Cousin (Trader) Joe

Fresh & Easy's dry grocery category private brand focus is looking even closer today to the Trader Joe's model and strategy than it did when the first Fresh & Easy stores opened in November 2007, as the 155-store Tesco-owned fresh food and grocery chain has increasingly focused on specialty-oriented packaged goods products, especially under its flagship fresh&easy house brand, as we detailed earlier.

From the start, Southern California-based Trader Joe's private brand product strategy, as well as its numerous store brands and products, were a model for Tesco's Fresh & Easy. The original Fresh & Easy corporate category managers who created the first fresh&easy brand products, for example, were told to look to TJ's efforts - and private brand products on the store shelves - for inspiration and ideas. And they did. That hasn't changed today.

But there's already a Trader Joe's, which happens to be considered to have the best private or retailer brand development program - and most favored store brands - of any grocery chain in the U.S., by what arguably is a majority of industry experts, as well as by consumers.

Fresh & Easy Neighborhood Market's private brand efforts aren't a complete clone of what Trader Joe's does. For example, Fresh & Easy offers numerous basic grocery products under the brand, while the majority of store brand items in Trader Joe's stores are specialty, natural and organic category packaged goods items.

But the similarities are extremely strong - and as we've suggested Fresh & Easy's private brand focus is in the specialty segment - which begs the question: Is there room for two small-format grocers, with stores in California, Nevada and Arizona, with very similar private brand category (specialty/premium/natural/organic) strategies and product offerings, particularly in the dry grocery packaged goods category?

Time will tell. After all, three are a lot of stomachs and kitchen pantries in the three Western U.S. states. But there's also an increasing number of grocer's, led by Trader Joe's, mining similar private brand grocery product retail ore as well.