senior vice president, retail and indepen- dent merchandising. The Byron Center, Mich.-based wholesale food distributor operates nearly 200 grocery outlets in 11 states under banners that include Family Fare, Martin’s Super Markets and D&W Fresh Market. “While there have been better-for-you trends in the past, this iteration has a much more sustained demand,” he said. SpartanNash groceries are using lim- ited-time offerings, innovations and an emphasis on speed to shelf to spur sales, Pasch said. In addition, operators are adjusting planograms for more efficient merchandising, which includes expanding the yogurt area by providing more space for Greek yogurt drinks while reducing the ready-to-eat desserts section, he said. Stores also are allocating additional space
for real dairy cream and creamers with clean ingredients, Pasch said.
other categories intermingling with the dairy offerings, Crawford said. Keeping the dairy section adequately stocked should be an ongoing retailer focus, said Mike McCully, president of McCully Consulting, a South Bend, Ind.-based dairy and food company management consulting firm. Merchandisers can better maintain the necessary inventory by having close working relationships with suppliers, he said. “Suppliers have had to put customers on allocation for certain products, so being a good customer ensures that you will get priority for filling orders,” McCully said. Dairy department selections also are likely to evolve, he said. “How many more products can be made high protein?” McCully said. “Food companies are looking to develop high fiber options while also maintaining the high protein focus.”
INVENTORY ISSUES Maintaining consistent in-stocks, however, can be challenging due to manufacturing fill rate constraints on high-demand items, including Greek yogurt and other cultured products, ultra-filtered milk and real dairy creamer, he said. “Influencer recipes also create strain on cottage cheese availability,” Pasch said. Having the proper assortments to meet consumer demands is a major mer- chandising issue as well, Crawford said. “Refrigerated shelf space is limited and must be optimized to maximize sales and minimize out-of-stocks,” he said. That includes consolidating all dairy products into a single section without foods from
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