News Bites – July 2025
Rising Sales at Sprouts Reflect Key Consumer Food & Beverage Preferences
Sprouts Farmers Market’s 17% sales increase in Q2 highlights its successful strategy of offering attribute-focused products. The company invests in innovation centers, showcasing trending products from startups. CEO Jack Sinclair notes the rise in sales from innovative items, with baskets often twice the company average. Moving forward, Sprouts plans to expand its private label, focusing on high-protein and no seed oils claims, with over 450 new high-protein products launching this year.
Learn More
Adapting to Change: Gen Z’s Innovative Responses to Grocery Budget Reductions
Gen Z shoppers are cutting grocery budgets amid economic uncertainty, leaning toward affordability and convenience. They often recreate takeout meals using online recipes, favoring cost-effective proteins like beans over meat. Unlike older generations, they show less brand loyalty, prompting marketers to target ads strategically. Despite their budget consciousness, Gen Z values product versatility and ethical considerations. Overall, brands should highlight multi-use ingredients to appeal to this demographic’s unique preferences and shopping behaviors.
Learn More
Convenience Channels Embrace Healthier Food Selections
Convenience stores are evolving into food destinations, as foot traffic has increased by 59% since January 2021. Moreover, major brands like JM Smucker are entering the c-store space through acquisitions, highlighting growth opportunities. As the line between grocery stores and c-stores blurs, investment in foodservice offerings rises to boost sales. Additionally, NACS notes that robust options like take-and-heat meals attract more customers, making c-stores competitive against quick-service restaurants.
Learn More
Store Brands See Growth, Led by Refrigerated Goods and Beverages
Store brands outperformed national brands in both sales growth and volume, with a 0.4% rise in unit sales versus a 0.6% decline for national brands. The Private Label Manufacturers Association notes positive trajectories in store brand food categories, although general merchandise struggles. PLMA President Peggy Davies highlights the appeal of quality, value, and innovation in store brands. Furthermore, PLMA forecasts store brand sales to reach $277 billion by 2025, a 2% increase from last year.
Learn More
The Rise of Alcohol-Free Beer: Set to Overtake Ale for Second Place Globally
Alcohol-free beer is rapidly growing, set to become the world’s second largest beer category by volume in 2025, surpassing ale. Despite static global alcohol sales, alcohol-free beer grew 9% in 2024, with lager remaining the largest category. This rise is supported by innovation and improved quality, appealing to consumers seeking moderation. Major brewers like Heineken and Budweiser have invested in alcohol-free options. Overall, the no-alcohol category, including wine and spirits, is projected to grow at 7% CAGR from 2024-2028.
Learn More
Check out last month’s News Bites: News Bites – June 2025!
