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non-produce items including sandwich items, pastas, deli meats and cheeses. “Del Monte’s merchandisers can assess the opportunities in individual produce departments and identify how different promotions and cross-merchan- dized items affect sales,” he says.
Cross merchandising and other POS aids may seal the sale for some shoppers. “There are consumers who want to eat healthy but don’t know where to start,” says Red Sun Farms’ Paivarinta. “By placing tomatoes with other products, retail can spark ideas and recipes benefiting all involved.”
Veillon notes retailers can assist consumers on selecting the right type of tomato based on use with product information cards, signage on racks holding product and in-store demonstrations. “Featured product demon- strations are key in driving sales,” he says.
Red Sun invests heavily in recipe devel- opment, citing its goal to inspire and help consumers eat clean and healthy. “If our recipe was the deciding factor on whether someone decided to cook on their own, as opposed to going and getting takeout, then we have helped someone take that first healthy step,” says Paivarinta. “By showing consumers how to cook quick, healthy, deli- cious meals, you are enriching their life and creating a repeat customer.”
6: CUSTOMIZE PRICING
Consumer response to tomato prices varies by item and demographic but generally the category responds to promotional pricing. “Price is a primary motivator when it comes to driving sales,” says Veillon. “During most weeks, tomatoes in a variety of formats and types are on sale in some capacity.”
With bulk traditional tomato variety purchases, notes Christou, price has a signif- icant impact on sales. “Most retailers run discounted prices on tomatoes about once a month, but during peak production, discounts occur more frequently,” he says. “Price has less of an impact on grape and specialty tomato sales because they tend to be relatively price inelastic.”
K-VA-T’s top two unit movers are the beefsteak tomatoes and tomatoes on the vine, and Cox reports those are fairly price-sensitive on retails. “If they go up 20-cents per pound,
it’s not a deal breaker,” he says. “However, you can’t get over the $2.99 per pound retail. Once you get into the $3 range, it will kill the move- ment.”
Cox agrees specialty tomatoes are less price-sensitive. “You’re going after a different demographic with these,” he says. “Most customers are willing to pay more for a specialty-type tomato. We carry a cherry-on- the-vine, and our customers understand they have to pay a premium price for it.”
Stores should work with suppliers to plan promotions. “Run sales in spring and fall to promote tomatoes with price as well as color contrast, emphasizing the flavor and health benefits,” says Weis Buy’s Weisinger.
Feighery emphasizes the importance of suppliers knowing all the ins and outs of the business. “We know what a computer won’t ever be able to tell you,” he says. “We’re in touch with all the factors affecting the tomato and can advise our customers what is happening.”
This is especially true when planning promotions, agrees Procacci’s White. “Most retailers are running ads four to six weeks out, so they want an idea of what item in the cate- gory they should be looking at during that time period,” he says. “We want to ensure we have the product, the right pricing for promotions and that we’re pushing the right varieties.” pb
nA FIRM FOUNDATION: GOOD DISPLAYS AND LOW SHRINK START WITH QUALITY BY JODEAN ROBBINS
For a successful tomato category, stores strive for longer shelf life and less waste. Keith Cox, produce category manager at K-VA-T Food Stores in Abingdon, VA, suggests shelf life begins with proper ordering and continues through in-store handling. “Like any other fresh produce item, first check the quality before you display,” he says. “Then, make sure you’re doing a good rotation to keep everything First-In, First-Out (FIFO) to keep product fresh. A good quality tomato when it hits the shelf at store level should last four to six days on display without any issues.”
Optimizing ordering and inventory rotation will reduce shrinkage, notes Dionysios Christou, vice president of marketing for Del Monte Fresh Produce N.A. in Coral Gables, FL. “Low inventory could lead to a loss of sales, and too much inventory could increase shrink,” he says.
Success also means ensuring customers remain happy with their purchase once
they’re home. “Stores must offer good quality so tomatoes don’t go bad in two to three days at the shopper’s home,” says Sam Marrogy, produce manager at Harbor- town Market in Detroit. “Some stores will sell cheap to get rid of old tomatoes. But if that product goes bad in the home, it won’t create a satisfied or repeat customer.”
Good handling practices set up the category for success. Harold Paivarinta, senior director and head of sales for North America for Red Sun Farms in Kingsville, Ontario, Canada, notes tomatoes should be stored at room temperature and not refrigerated. “Chilling tomatoes results in a more ‘watery’ flavor and mealy texture,” he says. “Don’t store tomatoes near ethylene producing fruits such as oranges or bananas as they will accelerate tomato ripening.”
Temperature at retail is a real chal- lenge, agrees Rick Feighery, vice presi- dent of sales for Procacci Brothers Sales Corp. in Philadelphia. “One of the biggest
issues we see is the product being kept too cold either adjacent to a refrigerated shelf or near the front door in the winter,” he says. “Tomatoes must be kept at 55 degrees — temperature can affect flavor and definitely affects shelf life.”
Retailers can utilize Del Monte’s cate- gory management services to optimize sales and minimize shrink. Christou suggests retailers educate and train produce department employees on best receiving, handling and display prac- tices. “Practicing FIFO ensures orderly inventory rotation avoiding age-related damage,” he says. “Personnel should also monitor equipment on a regular basis and confirm produce coolers are at the ideal temperature as well as remove compro- mised product from displays. Failure to remove compromised product could accel- erate the spread of mold and fungus — causing more loss of product and possibly becoming a food safety hazard.” pb
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