Take a Bite Out of Food Costs

Linda Farr RD/LDlindafarr@sbcglobal.net

210-735-2402

Desired Outcomes

Participants will be able to:

• Identify new food and dining trends• Discuss changing consumer habits• Identify which income level is hardest hit

by rising food cost• List ways to cut food cost through savvy

planning, shopping and preparing

New Food and Dining Realities

Spending Cuts Across All Incomes

• 72% have made significant cuts

• Hardest Hit: $45 K a year or less

• 59% of $100 K a year--cut back

Changing Consumer Habits

63% are more flexible about where to shop and what brands to buy

• 49% shopping at more stores for best deal• 35% switching grocery stores• 53% reducing amount of food purchased• 45% of those making less than $20K want

foods that keep them full longer• 77% want more information about the

content and origin of foods

Consumer Priorities

3 in 4 Americans choose quality and nutritional value over lowest price

• 72% Quality over price

• 68% Nutrition is most important

• Won’t give up meat, poultry and …….

Coffee……….!

Consumer Splurges with $10 more

• 13% (less than $45K) Convenience, compared to only 9% of those with a higher income

• 19% ($45K +) Natural or Organic

• 51% More of items they normally buy (buy in bulk)

• 20% New item not on their list

• #1 Splurge----Dessert

Family of Four—Food Cost at Home

  Thrift Cost Plan Low Cost Plan Moderate Cost Plan Liberal Cost Plan

   

Monthly: $584 $760 $949 $1,154

Annually: $7000 $9100 $11,400 $13,850

USDA—Center for Nutrition Policy and Promotion

http://www.cnpp.usda.gov

Food Purchases as a % of Income

AVG INCOME LOWEST 20 % MIDDLE 20 % HIGHEST 20 %

Income after taxes $60,858 $10,534 $ 45,179 $150,927

Food as % of income 10% 29% 13% 7%

Food at home 56% 66% 59% 50%

Food away from home 44% 34% 41% 50%    

CPI--Projections for Food Prices in 2009

• All Food—up 2-3%– 5.5% in 2007-2008 (highest increase

since 1990)

• Food at Home—up 1.5-2.5%

• Food Away from Home—3.5-4.5%

Percentage of Retail Price Staying with Farmer

For every dollar sold at retail…

1960-- 33%  

1970-- 32%  

1980-- 31%  

1990-- 24%  

2000-- 19%    

PLANNING TO SHOP

1. Price Your Top 10

2. Coupons

3. Discount or Bonus Cards

4. Rebates/Refunding

5. Meal Planning

6. When to Shop

8. Where to Buy

Planning—Start a Price Book

• Buy a small notebook • Put each store on a

separate page • Write down the

– Product name, – Package size– Price per ounce or unit– Store– Date

• Compare these prices to advertised specials.

Planning--Coupons

• Manufacturer—Avg. $1.08 face value– National coupon inserts in newspapers, direct-mailers, magazines,

package inserts, thro surveys, mail-in forms, accompany samples– Manufacturer pays the face value of the coupon directly to the store– Red plum, SmartSource, P&G, Kraft – Send thank you or complaint letters—receive free coupons

• Retailer– Posted in store newspaper ads, thro direct mail, or in local newsletters.– Manufacturer offers an advertising allowance to the store to cover

advertising and mailing expense

• Online– On websites of manufacturers and grocery stores which can be printed

and used in the store.– Shortcuts.com

Coupon Tips—CouponMom.com System

1. Know your prices

2. Use when favorite name brand items hit their lowest price

3. If you clip: organize into broad categories– Dairy, canned, boxed, frozen, cleaning,

4. Download & print electronic coupons– Manufacturers’ website, coupons.com, smartsource.com

5. Use Coupon Mom “Grocery Coupon Database”—free tool– Online database of grocery coupons in Sunday paper– Lists every coupon from your state’s primary newspaper

• RedPlum, SmartSource• Write the date the circular came out at the top

– Website lists item, value, purchase quantity and expiration date– Scroll to brand name you want and check the box—then print a list of the

coupons you want– Go to the appropriate circular and cut out the coupons you need.– Receive weekly email updates

Planning--Discount or Bonus Cards

PROs• members only double coupons• credit dollars on total spending• give the best shoppers something special

CONs• privacy is at risk any time you sign up for anything.• retailers up the price of an item and then turn around and

offer it at a discounted rate (padding)• advocacy groups say this is a way to track an individual’s

spending—(profiling)

Planning--Rebates/Refunding

• Income $100K or more, age 35-64 women are most likely to apply

• Income $50K or less are least likely to apply for rebates

• 70% have taken advantage of manufacturer rebates

• 80% of those succeed • Keep good records

– Date sent in– Date should have received– Phone number of clearing

house

• Be Relentless!

Problems1. Process is a chore

2. Lots of steps with potential for error and rejection due to technicality

3. Missed Deadlines

4. Slow payment

5. Check or debit card may look like junk mail

6. Process designed to make it so complicated that the refunder gives up

Planning--Meals

• Leftovers

• Adds and sales

• Season

• Budget

• Storage

• Then make grocery list

Planning--When to Shop

• Shop alone if possible• When not tired or hungry• Weekly or less often• When store is less crowded• Wednesday AM--when new promotion week begins and

most fresh produce has been restocked

Planning--Where to Buy

Grocery Stores • Double/triple coupons• Rain checks• Stores that charge half price for each

item when “buy one, get one free” is advertised

• Stores that have email newsletter coupons or mail coupons

• Give bonus gift cards for bringing in a new RX or RX transfer

• Accept competitor’s coupons• Allow “stacking” manufacturer’s

coupon with store coupon• Ask for discounts on damaged items

Consumer Reports Readers Survey--CT

Overall Satisfaction with Shopping Experience

#7 Costco

#22 ShopRite

#38 Sam’s Club

#42 BJ’s Wholesale Club

#48 Stop & Shop

#56 Walmart Supercenter

#57 Shaw’s

Where to Buy—Cooperative Food Buying Clubs

Save money on food by sacrificing some free time and convenience

1) Cooperative Warehouse• may require membership fee, credit check, minimum orders• supply food to retail co-ops & buying groups • provides technical assistance to start food cooperatives• owned and controlled by the local cooperative they service

2) Buying Club Co-op • want access to affordable healthy food, in line with their

value system (packaging, local, organic, small business)• increased buying power• involves ordering, picking up the items, sorting, distributing

and maintaining the group.

Where to Buy

Warehouse Clubs:

Sam’s

BJ’s

Costco

• Make most of money on membership fees and underselling competitors by buying in quantity

• Discounts as much as 61% on non-food items

• Lack variety• Some discontinued,

gray market or close-out non-food items

• Stores guarantee and allow returns.

SMART SHOPPING—Cut Your Bill in Half

Consumer Report shopper was able to cut his costs by as much as 46% on 30 items

by adjusting his shopping habits.

• Impulsive Shopper $136.47• Savvy Shopper $73.55• Warehouse Club Shopper $60.49• Store-Brand Shopper $60.25

SMART SHOPPING

1. Store Brands

2. Unit Pricing

3. Supermarket traps

4. Aisle by Aisle Tips1. Beef

2. Other Protein

3. Bread, Cereal, Grains

4. Fruit and Vegetables

Shopping for Store Brands

Store Brands can be 25-35% less

Lower product development and promotion costs

Shopping for Unit Pricing

• Cost per ounce• Identify lowest cost

package size and brand• Compare different forms

(frozen, canned, fresh)• Take calculator if no unit

price• Can you store it properly?

Supermarket Traps

• 100 Calorie packs—cost 16-280% more per ounce

• Sample Tastings• Multiples pricing• Circulars--featured

products in may not be on sale--can increase sales by 500%.

• End of Aisle—increase sales by 33%

• Check out line temptations• Check the receipt for

accuracy—6% were overcharged

• Multiple location of items– deli vs. shelf

Shopping Aisle by Aisle

Beef• New Value Cuts: Flat Iron,

Ranch Cut, Petite Tender, Sirloin Tip Center or Side, Western Griller, Bottom Round.

• 80% lean ground beef –then rinse

• Stock up, wrap properly and freeze

• Buy steaks or roast and cut as needed

• Look for cost per serving

Shopping Aisle by Aisle

Beef Handouts

www.beefitswhatsfordinner.com

www.beefnutrition.org

“How Much to Buy” Guidelines (servings /#)

“Match Cooking Methods to Beef Cuts”

Shopping Aisle by Aisle

Other protein sources• Organic seafood isn’t

worth it. Standards aren’t in place

• Get a whole chicken or turkey

• Beans• Eggs• Peanut butter

Shopping Aisle by Aisle

Bread, Cereal, Grains

• Day Old Bread store• Store-made baked goods

may be less than commercial alternatives

• Bagged cereals• Bread Machine• Longer cooking oatmeal,

unseasoned rice, popcorn• Homemade croutons

Shopping Aisle by Aisle

Dairy

• Use powdered or evaporated milk.

• Shred your own cheese

• Freeze cheese for later if on sale.

• Largest milk container• Switch to skim• Add your own fruit to

yogurt

Shopping Aisle by Aisle

Fruits and Vegetables

• Cheaper by the bag vs. #• Save organic for those most

high in pesticides• Buy uncut• Go frozen when out of

season• Go Local• Private label store brands• Plant a garden

PREPARING MEALS

• Reduce food waste• Store food properly• “Planned-overs”• Make your own

spice blends• Convenience vs.

Home Cooked

Fast Food vs. Home Prepared

¼ # Burger w/ Cheese

Medium Fries

Soda

Fast Food Home Prepared

$2.69 $1.27

$1.00 $. 27

$1.50 $. 17

____________________________

$5.19 $2.08

*Medium Meal Deal at $4.68 =

2 home prepared burgers

Go Out and Gather!

Be a Wise Shopper and a Savvy Educator

Thank you NCBA for your sponsorship!

Linda Farr RD/LD

www.NutritiousTable.com

210-735-2402