Food Gifting in the U.S.

Table of Contents

Chapter 1 Executive Summary

• Scope and Methodology
• Scope of Report
• Report Methodology
• The Gift Market
  • Gift Cards Grow in Popularity
  • Consumer Food Gifts Grow Apace
  • The Corporate Gift Market Dilemma
• Food-gifting Sales by Channel
• Brick-and-Mortar Retailers
  • Grocery Attracts Last-minute Food Gift Shoppers
  • Wal-Mart Builds Its Food Gift Offerings
  • Don' t Forget Target
  • Boxed Chocolates Falling out of Favor at Traditional Retailers
  • Will Department Stores Rebound?
  • Interest in Gourmet Chocolate Fuels Gourmet Retailers
• Online and Direct Marketers
  • Harry and David' s Wholesale Business Booming
  • 1-800-FLOWERS Ventures into Food Gifts
  • Online and Direct Marketing Channel Highly Fragmented
• Independents and Franchises/Distributorships
  • Independents Optimistic, Despite Increasing Competition
  • Franchise Model Works Well for Cookie and Fresh Fruit Bouquets
• The Food-gifting Consumer
  • Boxed Chocolates Still the Most Popular
  • Assortments, Nuts and Salty Snacks Top Specialty Food Gifts
  • Consumers Value Quality and Variety Most
  • Visibility the Biggest Challenge for Specialty Food Gifts
  • Consumer Demographics in the Online and Direct Marketing Channel
• Looking Ahead
  • Customization Will Grow
  • Organic/Ethnic/Wellness Food Gifts
  • Food-gifting All Year Round
  • Industry Consolidation
  • Market Forecast

Chapter 2 The Gift Market

• Scope and Methodology
• Product Definitions
• The Gift Market
  • Table 2-1 U.S. Consumer, Corporate and Total Gift and Food Gift Spending, 2004-2006 (in million $)
  • Consumer Gift-giving Down 8% from 2004 to 2006
  • Table 2-2 Total Retail and E-commerce Sales vs. Consumer Gift Expenditures, 2000-2006 (in billion $)
  • People Spending More…on Themselves
  • Gift-giving Wanes as Many Find It Frustrating
  • Rising Gas Prices Means Less Money for Gifts
  • Stagnant Population Growth Among Younger Children
  • But People Still Need to Buy Gifts
  • Electronics Blur the Line Between Family and Self-gifting
  • Gift Cards the Perfect Gift…Especially for Retailers
  • Consumer Food Gifting up 56% Since 2004; Now 15% of Gift Sales
  • Figure 2-1 Total Retail Gift Expenditures and Food Gift Share, 2000-2006 (in billion $)
  • Gourmet and Organic Foods Fuel Growth
  • Gift Cards vs. Food Gifts
  • Corporate Gift Market Mature and Difficult to Measure
  • Food-gifting Companies Report Mixed Results in Corporate Market
  • Independents and Franchises Cater to Local Professionals

Chapter 3 Food Gift Market Channels

• Food Gift Market Highly Fragmented
• Figure 3-1 Share of U.S. Food Gift Sales by Channel, 2006
• Brick-and-Mortar Retailers
• Online and Direct Marketers
• Independents and Franchises/Distributorships

• Brick-and-Mortar Retailers
  • Table 3-1 U.S. Food Gift Sales by Brick-and-Mortar Retailers, 2004-2006 (in million $)
  • Mainstream Retailers
  • Figure 3-2 Percentage Who Purchased a Specialty Food Gift, by Source
  • Mainstream Retailers Capture the Impulse Shopper
  • Shoppers Consolidate with Fewer Trips Overall
  • Figure 3-3 Average Retail Outlet Trips per Shopper per Month, 2003-2006
  • Figure 3-4 Average Retail Outlet Trips per Shopper per Month by Channel, 2006 and % change from 2005
  • Grocery Retailers Favor Gift Cards
  • Target Drives Food-gifting Sales Through Distribution Gains, Online Sales
  • Table 3-2 Target' s Online Assortment of Best-selling Gift Baskets and Gourmet Foods, March 2007
  • Wal-Mart Captures Holiday Shoppers
  • Table 3-3 Wal-Mart' s Online Assortment of Best-selling Gift Baskets and Gourmet Foods, $25-$50 Price Range, March 2007
  • Boxed Chocolates-the Original Food Gift-Fade at Traditional Retailers
  • Table 3-4 U.S. Gift-Boxed Chocolate Sales by Food, Drug and Mass Merchandisers: Total, Percent Change and Share, 2004-2006 (in thousand $)
  • A Rebound for Department Stores?
  • Macy' s Refocusing Its Efforts
  • Costco Partners with Harry and David
  • Gourmet Confectionary Retailers
  • Chocolate Lounges Inspire
  • Godiva Chocolates
  • See' s Candies
  • Natural/Organic and Specialty Foods Retailers
  • Williams-Sonoma
  • Cost Plus
• Online and Direct Marketers
  • Table 3-5 U.S. Food Gift Sales by Online and Direct Marketers, 2004-2006 (in million $)
  • Online Food Shopping Emerges Once Again
  • Catalog Sales Flourish at the Same Time
  • Figure 3-4 Percentage of U.S. Adults Buying Food/Perishables by Catalog in the Last 12 Months: Total, Harry and David, Omaha Steaks and 1-800-FLOWERS, 2003-2006
  • The Floral Industry Fuels Gourmet Food Gift Growth
  • Specialty Food Direct Marketers
  • Harry and David
  • Omaha Steaks
  • Hickory Farms
  • The Swiss Colony
  • Online Gift and Floral Companies
  • 1-800-FLOWERS
  • FTD.com
  • All Other Online and Direct Marketing Companies
  • Few Dominant Players-But This Is Changing
  • Amazon.com
  • Table 3-6 Amazon.com' s Best-selling Gourmet Foods, with Customer Ratings, March 2007
  • Provide Commerce
• Independents and Franchises/Distributorships
  • Overview
  • Table 3-7 U.S. Independent and Franchise/Distributorship Food Gift Company Revenues, 2004-2006 (in million $)
  • Independent Gift Basket Companies
  • Table 3-8 Independent Gift Basket Companies: Number, Average Revenue and Total Revenues, 2003-2006 (in million $)
  • Prices Rise, Gap Between Corporate and Consumer Baskets Narrows
  • Table 3-9 Independent Companies' Average Retail Price, Corporate vs. Consumer Gift Baskets, 2004-2006
  • Most Popular Items for Gift Baskets
  • Table 3-10 Independent Gift Basket Companies' Top Products, 2004-2006
  • Independent Gift Basket Companies Differentiate Through Customization
  • Table 3-11 Independent Gift Basket Companies' Top Trends, 2006
  • Competition from Large Chains and Discounters Biggest Worry
  • Table 3-12 Gift Basket Companies' Biggest Concerns, 2006
  • Profile of Business Owners
  • Winter Holidays Just 40% of Revenues
  • Table 3-13 Independent Gift Basket Companies' Best-selling Occasions Outside of Major Holidays, 2004-2006
  • Franchise and Distributorship Food Gift Companies
  • Table 3-14 Franchise/Distributorship Gourmet Gift and Gift Basket Companies: Units, Revenue per Unit and Total Revenue, 2004-2006 (in thousand $)
  • Cookies by Design
  • Candy Bouquet
  • Edible Arrangements
  • Le Gourmet
  • FruitFlowers
  • Cookies in Bloom

Chapter 4 The Food-gifting Consumer

• Note on Simmons and Packaged Facts Data
• Gift Spending
• Most Spend Under $500 for Winter Holiday Gifts and All Other Gifts
• Figure 4-1 Gift Spending, Winter Holiday Gifts vs. All Other Gifts
• Boxed Chocolates and Other Gift-packaged Candy
• Boxed Chocolate Most Popular Food Gift
• Figure 4-2 Gift-packaged Candy Purchased for Self or as a Gift
• Valentine' s Day Biggest Occasion for Gift-packaged Candy
• Table 4-1 Percentage Purchasing Gift-packaged Candy, by Occasion
• Table 4-1(cont) Percentage Purchasing Gift-packaged Candy, by Occasion
• Gift-packaged Candy Given to Spouse/Significant Other Most Often
• Table 4-2 Percentage Purchasing Gift-packaged Candy, by Recipient
• One-Quarter Bought Gift-packaged Candy for Three or More People
• Table 4-3 Percentage Purchasing Gift-packaged Candy, by Number of Recipients
• Most Spend Less Than $20 on a Boxed Chocolate or Packaged Candy Gift
• Table 4-4 Amount Typically Spent on a Single Purchase of Gift-packaged Candy
• Most Spend Less Than $100 Total on Gift-packaged Candy
• Table 4-5 Amount Typically Spent on Gift-packaged Candy in a Year
• Russell Stover Leads in Gift-packaged Candy Purchases
• Table 4-6 Percentage Purchasing Gift-packaged Candy for Self or as a Gift, by Brand
• Table 4-6(cont.) Percentage Purchasing Gift-packaged Candy for Self or as a Gift, by Brand
• Specialty Food Gifts
• Specialty Food Gifts Given by 39% of Respondents; Assortments, Nuts and Salty Snacks Top Choices
• Table 4-7 Specialty Food Gifts: Percentage Buying for Self and as a Gift and Percentage Receiving as a Gift
• One-Third Give Specialty Food Gifts for Winter Holidays
• Table 4-8 Percentage Purchasing Specialty Food Gifts, by Occasion
• Friends, Family and Spouse Most Likely to Receive Specialty Food Gifts
• Table 4-9 Percentage Purchasing Specialty Food Gifts, by Recipient
• One out of Five Buy Specialty Food Gifts for Three or More People
• Table 4-10 Percentage Purchasing Specialty Food Gifts, by Number of Recipients
• Nearly Two-Thirds Spend More Than $20 on a Single Specialty Food Gift
• Table 4-11 Amount Typically Spent on a Single Purchase of a Specialty Food Gift
• Most Spend Less Than $100 Annually on Specialty Food Gifts
• Table 4-12 Amount Typically Spent on Specialty Food Gifts in a Year
• Attitudes Toward Specialty Food Gifts
• Four in Ten Spend More on Specialty Food Gifts Than Previous Years
• Table 4-13 Change in Spending on Specialty Food Gifts, Last 12 Months vs. a Few Years Ago
• Specialty Food Gift Givers Want Treats That Others Will Use and Enjoy
• Table 4-14 Reasons for Buying Specialty Food Gifts
• Quality and Variety Top the Attributes People Look for in Specialty Food Gifts
• Table 4-15 Attributes People Look for When Buying Specialty Food Gifts
• Gift Cards and Plants/Flowers Lead as Alternatives to Specialty Food Gifts
• Table 4-16 Alternative Gifts Likely to Be Considered in Lieu of Specialty Food Gifts
• Mass and Grocery Top Locations for Buying Specialty Food Gifts
• Table 4-17 Sources for Buying Specialty Food Gifts
• Oversight Tops the Reasons Shoppers Don' t Buy Specialty Food Gifts
• Table 4-18 Reasons That Could Prevent Purchasing Specialty Food Gifts
• Trends and Demographics of Online and Direct Marketing Shoppers
• Food/Perishables in Online and Direct Marketing Channels Grow at the Same Time
• Figure 4-3 Percentage of Households Buying Food/Perishables via Mail/Phone/Internet/Catalog and Catalog Alone, 2003-2006
• Prime Shoppers are Middle-aged Females with Incomes over $100,000
• Table 4-19 Demographic Characteristics Favoring Online and Direct Marketing Purchases of Food/Perishables

Chapter 5 Looking Ahead-Future Trends and Forecast

• Customized Food Gifts
• Organic/Wellness/Ethnic Food Gifts
• Organic/Wellness Food Gifts
• Ethnic Specialty Food Gifts
• Food Gifting All Year Round
• Industry Consolidation
• Forecast for 2010
• Brick-and-Mortar Retailers
• Table 5-1 U.S. Food Gift Sales Forecast by Channel, 2004-2010 (in million $)
• Online and Direct Marketers
• Independents and Franchises/Distributorships
• Consumer vs. Corporate Markets
• Table 5-2 U.S. Food Gift Sales Forecast for the Consumer, Corporate and Total Markets, 2004-2010 (in million $)