Dan Borschke of the National Association of Concessionaires joined the State of the Industry panel with John Fithian of National Association of Theatre Owners, Dan Matthews of National Automatic Merchandising Assocaition, and Jeff Mann of International Association of Venue Managers, moderated by NAC President Jeff Scudillo of Promotion in Motion. (VT Photo)
REPORTING FROM DENVER — Concessionaires and food companies are going to battle. Government regulations and consumer expectations are influencing venues to consider healthier options and increased action to fight proposed legislation. Panelists and some of the around 400 attendees at the National Association of Concessionaires’ Concession and Hospitality Expo here July 15-18 discussed the ways venues can work within and fight against new regulations, as well as appeal to the healthier consumer.
Don Lear of Hershey Companies emphasized the importance of staying current and aware of government regulations.
Staying up to date “isn’t so much tactical as it is strategic. These aren’t necessarily going to affect you today, but as laws get passed it will have a dramatic impact on your business,” he said.
Labeling, local and state sweetened beverage taxes, disposable container taxes and various alcohol regulations are hot topics in capital cities and at the conference. Expanding waistlines are the catalyst for extended legislation.
“I think you have to be living in a cave or under a rock to not know that obesity is driving the train on issues hitting you, causing regulations issues for you and causing conversations,” said Registered Dietician and Nutritionist Judy Barbe of LiveBest.
Several states have upcoming legislation to update the 20-year-old nutrition facts panels on packaging. Barbe said the focus of the new labels is mainly on calories and serving size.
“When someone buys something, they generally drink or eat the whole thing, not one-third of it or what the serving size technically says,” she said, expanding that more attention will be called to added sugars, certain vitamins and electrolytes as well as fiber. “
Obamacare included a regulation that requires calorie labeling on menus and signage at chain restaurants, retail food establishments and vending machines with more than 20 locations. While the legislation doesn’t currently extend to venues where the primary focus isn’t to sell food, such as sporting and entertainment venues, panelists cautioned that laws generally tend to get stricter and apply to more areas with Government Relations Director for The Coca-Cola Company Scarlett Foster Moss calling regulations a “slippery slope.”
“It’s almost become a never-ending issue as far as the beverage industry is concerned,” she added. “Some of the proposals wouldn’t pass a ‘straight-face’ test if you were telling your spouse or child.”
For instance, the proposed SB 1000 bill would require any venue that controls the premises where sugar-sweetened beverages are sold in unsealed containers to place a specified safety warning in various locations. The safety warning would have to read: “STATE OF CALIFORNIA SAFETY WARNING: Drinking beverages with added sugar(s) contributes to obesity, diabetes, and tooth decay.” San Francisco has also proposed a two-cent-per-ounce tax on any sugar-sweetened beverage more than 12 ounces.
“They’re creating a movement that’s alive and well and are active in terms of contacting and recruiting the medical community,” said Moss, who added that regulations won’t stop in California. “They were very clear in media statements and testimony on the senate floor that this is the first volley of a multifaceted public health campaign,” she said, adding that the government sees sugar and food taxes as “a money grab to build up their general revenue coffers.”
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Hannah MacKay of Doc Popcorn indulges with samples of Dippin’ Dots and Waffle Cabin Belgian waffles on the trade show floor. (VT Photo)
Venues and food providers can do their part to combat legislation by joining coalition groups such as CalBev and by appealing to health-conscious consumers by making a visible effort to include nutritious options.
“We started the balance for life program, called FitPick, because we wanted to be part of the solution, not part of the problem,” said Dan Matthews, Exec. VP & COO of National Automatic Merchandising Association. The program and corresponding website educate consumers to make better choices regarding food choices and increasing activity. The NAMA has also formed a nutrition advisory council.
“We’ve really turned the discussion around away from the attack on our industry to a way where we can all work together to be healthful, while maintaining the ability for our members to continue selling the products that make them money,” he added.
Initially, healthy options didn’t sell even though the consumer said they felt good about doing business with providers that offered healthy options.
“They wanted you to have it but didn’t want to buy it,” lamented Matthews, who added that the consumption of healthy items is growing, with 64 percent of consumers saying it’s important to eat healthy.
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The Hershey Company's minis and bite-size treats encourage moderation in snacking. (VT Photo)
Though healthy food is great in theory, even Barbe said that taste and price are the two main drivers when it comes to making a purchase.
“That means if it’s healthy but it doesn’t taste good, there’s no sale, but I’m here to tell you the two things can coexist on the fork,” she added. Ways to appeal to consumer palates include using locally sourced meats, seafood and produce, as well as gluten-free options. Some healthier options include different flavorings for popcorn, such as garlic, chili powder, sea salt and black peppers, or herbs and Parmesan. The healthy switches go far beyond making popcorn pop. Other suggestions included pretzels, baked tortilla chips with guacamole and salsa to replace some of the nacho cheeses, and roasted nuts.
Cornell University in Ithaca, N.Y., conducted a Food Brand Lab at the sports stadium at Muscatine (Iowa) High School over two fall sports seasons, tracking concession sales the first year and introducing 10 healthier items the second year. What they found was the healthy items became nine percent of total sales, with sales increasing as people became accustomed to seeing the items on the menu. Total income for the stands also increased by four percent. “It’s the addition of menu items, not removing other items,” said Barbe. “It pleased people to have an expanded choice.”
Eight healthy items proved to be the ideal amount to add to menus at venues.
IAVM’s Jeff Mann also emphasized that venues are looking to maximize revenue in addition to appealing to health-conscious event-goers by incorporating local cuisine.
“If you’re going to visit a city, you want to focus on something that reflects that local environment,” he said. “Branded concessions with local fare is always a great touch, and local craft brews have taken the world by storm.”
Centerplate’s Executive Chef Carmen Callo at Colorado Convention Center said that the facility rebranded two years ago to make its concepts locally relevant, complete with the theme ‘Welcome Colorado.’ The renovation redesigned and reimaged all 14 restaurants at the convention center, adding ingredients from local suppliers including Aspen Baking Company, Colorado Natural, Continental Sausage and Belgium Brewing Company.
The changes have increased year-over-year revenue from 25 percent to 60 percent for repeat conventions with stable attendance.
Now that venues are incorporating healthy items as a way to appeal to consumers and government regulations, there’s only one more step to take — tell people.
“It’s really important to tell your story, whether it’s on the website or menu boards,” said Barbe, who added that the Farmers' Market at Busch Stadium in St. Louis is prominently featured on the facility’s website with directions on what it offers and where to find it.
“If you’re responding to your consumers and customers because they’ve requested healthier items, tell them you’ve listened to them and you’re responding,” she added.
Not only will being vocal about the new message improve sales, it can also increase awareness about important regulation items that could end up on the ballot. Moss said that if people see venues and companies doing their part to combat obesity and regulations, those customers could also affect change through grassroots efforts.
“It’s word of mouth, person-to-person, neighbor-to-neighbor communications,” she said. “It’s the people that live in those states and have business in those states that need to raise their voices.”
Interviewed for this story: Julie Barbe, judybarbe@gmail.com; Carmen Callo, (303) 228-8057; Don Lear, (717) 534-7129; Jeff Mann, (972) 538-1004; Dan Matthews, (312) 346-0370 x232; Scarlett Foster Moss, (425) 990-2540