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merchandising review tomatoes
Still Room To Sell More Tomatoes
Their popularity is soaring, but simple ideas, big displays can be highly profitable.
BTY CAROL BAREUTHER
here was a time when Ameri- cans wouldn’t touch a tomato, let alone eat one. For more than two centuries, this botanically classified fruit
and legally termed vegetable, was thought to be poisonous. One reason is kinship in the potentially deadly nightshade family. Yet, the tomato has graced the tables of people in South America, Central America and Mexico since times B.C. In fact, the word tomato comes from the Aztec word, “tomatl.” Fast-forward to today, and toma- toes have made an about face in terms of popularity. In fact, tomatoes are second only to packaged salads in total vegetable sales, according to FreshFacts on Retail Year in Review 2017, published by the Washington, DC-headquartered United Fresh Produce Association. What’s more, tomatoes are the second-most consumed vegetable in the U.S. behind potatoes, based on the March 2017-released Tomatoes report, by the Ames, IA-located Agricultural Marketing Resource Center (AMRC).
“Tomatoes are a very significant category for us,” says Scot Olson, vice president of produce and floral for Grocery Outlet, Inc., a 270 privately owned discount supermarket chain based in Emeryville, CA, with locations in five Western states, plus Pennsylvania. “In 2017, tomatoes were the No. 6 category in dollar contributions, contributing 6 percent of total produce sales.”
Here are eight tips to sell more tomatoes:
1. STOCK A STEADY SUPPLY
Florida and California are the largest tomato-growing states, accounting for up to three-fourths of all commercially produced fresh-market tomatoes in the U.S., based on AMRC data. Last fall, hurricanes and major storms significantly curtailed production of field-grown tomatoes in Florida and major importing countries such as Mexico, thus leading to price increases near historic levels, according to growers.
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“Although weather has affected and will always continue to affect field-grown tomato supplies, we are seeing more and more over- seas produce grown in hothouse facilities,” says Chuck Weisinger, chief executive officer of Weis-Buy Farms, in Fort Myers, FL. “This has made a difference in marketing because of the continuous supply of tomatoes avail- able from these shippers. The retail buyer is looking for safety and price regularity through marketing at a stable price. More shippers are giving out contracts to a variety of customers through certain dates and guar- anteeing pricing unless catastrophic condi- tions occur.”
Greenhouse growers are taking seasonality out of the tomato business. For example, Red Sun Farms, headquartered in Kingsville, ON, operates 10 facilities across Canada, the U.S.
and Mexico that grow everything from toma- toes on the vine (TOVs), beefsteak, roma, grape and cherry to specialty tomatoes
“We pride ourselves in having quality produce all year long through our vertically integrated high-tech greenhouses,” says Jim DiMenna, president. “Our business model allows us to provide our customers with promotional support 365 days a year.”
2. GIVE EVERYONE SOMETHING
There are as many as 15 SKUs of toma- toes offered for sale to customers at Grocery Outlet stores, based on availability and pricing throughout the year. This is remark- able and shows the popularity and impor- tance of this category to customers and the retailer alike since Grocery Outlet is a limit- ed-assortment format.