Page 14 - 0419

RESEARCH PERSPECTIVE
Don’t Just Bloom Where You’re Planted
by rick stein
Plants, by their nature, spread as they grow. Growers, by their nature, often add new types of plants to their fields
and orchards over the years.
As consumers are browsing produce from
more places and seeking greater overall variety in their diets, it might not be the time to merely stick to your roots.
Findings from the recently released 2019 Power of Produce report, which looks at the produce category from consumers’ eyes, underscores the importance of offering shop- pers more choices, spanning diversity of selec- tions, growing methods and product formats and packaging, among other attributes. Put simply, success in produce at retail isn’t about bringing in consumers who haven’t eaten produce, but encouraging new occasions and a chance to trade up to more value-added options.
It’s tempting to rest on your laurels in this industry, when 97 percent of shoppers say they eat fresh fruits and vegetables at least once a week and when produce has an envi- able 99.5 percent household penetration. The traditional retail fresh produce channel rings up $60 billion in annual sales. It’s also heartening for those in the brick-and-mortar food retailing business that for the first time in many years, average grocery trip frequency increased last year.
That said, current shopper attitudes and marketplace factors reflect both opportunities and challenges in the produce sector to drive further sales and boost consumption frequency.
Increased competition, for example, is taking a bite out of traditional produce sales in supermarkets. Produce consumption figures are still high, and full-serve supermarkets have the edge over other retail channels (at 51 percent of the market), but growth in specialty-or- ganic outlets and limited assortment stores are changing the retail landscape and, one might argue, putting the squeeze on grocers. To keep or grow their share of the consumer produce dollar, retailers can deliver on the consumer need for new ways to eat and enjoy produce.
According to the 2019 Power of Produce, although nearly all households in the United
The fact 97 percent of respondents say they are trying to eat more produce is a virtual open door to encourage people to find more eating occasions for fruits and vegetables.
States buy fresh produce, only 41 percent of shoppers eat it daily. That, plus the fact 97 percent of respondents say they are trying to eat more produce, is a virtual open door to encourage people to find more eating occa- sions for fruits and vegetables.
Remember when not many people knew what jackfruit was? That’s one example of a fruit that became a darling in foodie circles and later featured in a broader way at both retail and foodservice. You could say the same thing about dragonfruit or kale.
Given the fact most people are in a certain comfort zone when it comes to produce, tending to stick to a small number and type of vegetable and fruit they always buy, there are many intriguing produce items that can attract the attention of shoppers who are in their comfort zone but are willing to step out of it when enticed. What will be the next jack- fruit or kale?
Value-added items represent another pocket of growth. Twenty-eight percent of shoppers expect to buy more value-added produce items this year, up from 23 percent last year.
Produce snacks have been a hotbed of new product development and with good reason: Nearly 40 percent of shoppers are looking for snack-sized vegetables and fruit snack packs. In fact, the number of shoppers who want their produce department to offer more snack size vegetables more than doubled from 2017 to 2018.
Meanwhile, as plant-based proteins continue to garner buzz, there is a lot of poten- tial in this burgeoning segment. The latest Power of Produce research shows protein-rich dinner produce (such as legumes, nuts, seeds, grains and tofu) is being eaten as an occasional meat alternative by 73 percent of shoppers.
From a retail perspective, another way to boost return on produce is to carry or promote
organic items that consumers are increasingly willing to pay for. About a third of shoppers report they are looking for more organic, sustainably grown and non-GMO items. More- over, preferences for attributes associated with growing practices are outpacing conventional produce sales. Tying into that trend, 4-in-10 shoppers have seen references to hydroponic- or greenhouse-grown produce, and general perceptions about the taste and quality of these items are positive.
Mixing up produce-based products also can encourage more frequent consumption of fruits and vegetables. For example, juices aren’t anything new, but there is a veritable bumper crop of produce-based beverages that are trendy among health-minded shoppers, especially younger, male and higher-income shoppers. About half of produce shoppers buy beverages such as cold-pressed juices, fruit smoothies, veggie shakes and produce-infused water, mostly as occasional purchases.
Finally, giving consumers who like produce (and the idea of eating produce) more choices such as value-added products and organic or hydroponically grown items is important moving into 2020 and beyond, but so is education.
This 2019 Power of Produce research shows many people still don’t know how to prepare vegetables and fruits or what to do with them, so providing more recipes and ideas, whether on a package, on social media or in store, will be increasingly crucial for turning strong penetration and appeal into more frequent consumption and sales.
Rick Stein is vice president, fresh foods, for the Food Marketing Institute (FMI). Follow him @Ricks_FreshFood. Visit www. FMI.org/FreshFoods, www.FMI.org/Store.
14 / APRIL 2019 / PRODUCE BUSINESS