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retailers draw consumers to, and lift volume in, the grape category: Use front page ads, promote multiple varieties, advertise weekly and discount price. It names printed circulars and in-store sales and coupons as top shop- ping resources for grape consumers.
Don Goodwin, president of Mound, MN-based Golden Sun Marketing, which helps clients across the supply chain develop and sell compelling strategies, says the expan- sion from commodity into specialty creates marketing conflict.
“Treating all grapes like a commodity won’t lift sales, and marketing on price and color doesn’t acknowledge the nuances of variety. So, shippers and retailers have to market the uniqueness and seasonality of the various vari- eties that might be available for just a few weeks — scarcity creates demand — and what differ- entiates one type of red or green grape from another. Comprehensive marketing should incorporate in-store tastings, well-signed displays, produce managers who can talk to shoppers and strategic digital ad campaigns.”
THE POWER OF PRICING
In 2018, grapes sold at an average retail price of $1.96 per pound, according to USDA data. “Among the three key factors that drive sales — availability, quality and price — price is what jumpstarts the category,” observes Goodwin. “Retailers who race to the bottom on grape pricing — for example, $0.99 per pound — will drive traffic but find it hard to capture value.” Goodwin points out that consumer expectations around pricing become a particular problem when selling specialty grapes, as these require higher retail pricing.
Spezzano calls attention to the impor- tance of strategic pricing for optimal sales and margins. “During last year’s long California season, grapes priced at $0.99 per pound generated a huge lift in sales. But advertising just one variety at that price is more effec- tive because advertising all three colors at a discount hurts margins. With clamshells, retailers can reduce price from $5.99 to $4.99 rather than $2.99, get good lift and good margins, and not destroy the entire category.”
PACKAGING SUPPORTS SALES
The transition in the 1990s from bulk to bagged grapes simplified grape buying for the consumer. “Customers love the conve- nience of being able to slide open a zippered bag and take out the amount of grapes they want without having to rip apart the bag,” says Wakefern’s Jenkins. “These bags also offer great packaging and artwork from the grower/
shipper, and that helps drives product sales.” Bags are particularly prevalent for commodity grapes, while clamshells domi- nate the specialty grape subcategory. Jenkins says clamshells labeled with the variety and carrying a UPC code help at the front end by makingiteasierforcashierstodifferentiate between varieties of grapes and also to ring
up the correct product.
Grower/shippers offer a wide range of
custom packages, from bag to zippered bag to tote and also clamshells of various weights. “A
display might have red, green and black grapes each in a zippered pouch, plus one or two red, green, or black specialty grapes in clamshells with a special message and premium price,” says Spezzano. “Retailers can request from grower/shippers a one-pound or two-pound clamshellpack,ormaybemultiplevarietiesin a clamshell, or even snack-size packaging.”
FRESHNESS SELLS
As a supplier of imported grapes, Pacific Trellis stresses the importance of establishing,
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