FRESH FOOD
Produce
A Cut Above VALUE-ADDED PRODUCE CAN HELP RE TAILERS GE T CUSTOMERS TO TRY PRODUCE ITEMS THAT THE Y OTHERWISE WOULDN’T PURCHASE. By D. Gail Fleenor s customers descend on produce aisles again or scan supermarket web pages, many are looking for easy meal ideas. What about a multi-item salad, or soup or stew? Or maybe enjoying a delicious butternut squash without the hassle of peeling or cutting it? Or a luau featuring fresh pineapple bites, without a pineapple that bites back? Customers bought more value-added produce during the height of the pandemic, and they show no sign of going back to peeling and slicing now. Produce department sales reached $69.6 billion, with an increase of 11.4% in dollars versus a year ago for the 52 weeks ending Dec. 27, 2020, as noted in the 2021 “Power of Produce” report from Arlington, Va.-based FMI — The Food Industry Association. The survey, conducted for FMI by San Antonio-based 210 Analytics LLC, found that 40% of customers purchase more fresh fruit now than pre-pandemic, and 35% purchase more vegetables. According to the 2021 “Power of Produce” report, sales of value-added produce came to $15.5 billion, including value-added lettuce, or 22.3% of total produce sales. Without lettuce, value-added produce still increased by a strong 12.4%. However, while value-added produce experienced strong gains in 2020 for value-added vegetables, at 11.4%, sales of value-added fruit were flat, at 0.3%. The pandemic exerted its influence on loyal shoppers in overall produce as well as in the value-added segment. The share of core value-added vegetable customers, purchasing on either a frequent or “whenever available” basis, increased from 31% in 2019 to 37% in 2020, while fruit didn’t change significantly. According to the survey, more than three in 10 shoppers believe they will purchase more value-added produce in the upcoming year — the highest share in four years. According to FMI’s survey, core value-added shoppers
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progressivegrocer.com
Key Takeaways Value-added produce is here to stay. Promotions can help counter the high-price image of valueadded produce. Consumers are more likely to try new fruits and vegetables when they can see inside them.
should be catered to by retailers, because their spending is above average and they shop weekly. These shoppers also indicated that they intend to purchase more value-added produce in the future.
The Value-Added Opportunity
What holds other customers back from buying more? Price. While the retailer needs a higher price on value-added produce to compensate for labor and possible equipment costs, rotating promotions can pull in more sales. As produce managers know, the average retail price for value-added produce is usually twice that of conventional or unprepared produce. Shoppers who understand that pre-cut, prewashed produce can save time and increase convenience will come back to taste and purchase more value-added items. Value-added produce provides another opportunity for shoppers. Some customers have seen only the outside of a jackfruit, butternut squash or rambutan. Based on just their outward appearance, these and other vegetables and fruits might not
