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fresh cut marketing packaging
“The smartest grocers are dealing with higher wages by shifting the labor status quo,” says Randall. “That means taming labor costs that already exist, finding opportunities to outsource certain labor-intensive activities, taking labor out of the back office via tech- nology and exploring cutting-edge pricing and merchandising techniques.”
However, customers are footing at least part of the bill to help offset such expenses. “Anytime you outsource fresh-cut items it will drive profitably down for the retailer, but with labor costs now soaring, that disparity in prof- itably is shrinking,” notes Granata.
Given such variables, retailers can consider smart sourcing, as pointed out in a 2013 report from consultant McKinsey and Co., based in New York. The cost of goods sold in the fresh department typically amounts to up to a third of the total cost base of a grocery chain. But despite the importance of fresh sourcing, many retailers approach it unsystematically and thus end up paying above-market prices. Typical, pitfalls in fresh sourcing include factors such as buyers who think their primary responsibility is to secure sufficient supply and thus spend most of their time processing orders rather than managing suppliers and conducting fact-based negotiations, as well as limited transparency into the performance and strength of indi- vidual suppliers and the supplier base as a whole (many retailers track only one of the following metrics: buying price versus benchmark, margin, availability of products and quality).
WHICH CUT PRODUCE SELLS?
When it comes to the palate and the popularity of specific fresh-cut fruits, Bashas’ Eastridge says cut melons, including water- melon, cantaloupe and honeydew have always been one of the better selling items in the produce department. Customers now are purchasing more berry cups, such as raspberries, blueberries, blackberries and strawberries, as well as items like grapes and pineapple, he says.
Granata notes mango chunks, followed by sliced apples are his company’s best sellers.
According to the Produce Marketing Asso- ciation, mixed fruit, watermelons, pineapples and cantaloupe were among the top 10 value- added categories of fresh fruits based on dollar sales in 2018. To increase sales of cut fruit, PMA recommends offering pre-cut snack packs with dip and adding pre-cut fruits to salad bars for the lunch crowd.
Convenience goes a long way toward fueling the rate of consumption, says Eastridge. “Summer’s a great time for cut fruit due to all of the in-season variety.”While Granata notes
peak selling time is May through August, he adds, they sell all year long.
Who’s buying? “There’s not really one segment of consumer buying more but, of course, the younger, health-conscious consumers would be the target audience,” says Granata. “Those trying to eat healthier opt for fruit instead of chips or cookies when reaching for a snack, [not to mention] moms giving
their children healthier snack options. They also like the convenience factor.”
Although promotions such as buy-one- get-one-free work with many items, not neces- sarily cut fruit, says Granata. “[That’s] because you want it to be fresh, and the product has a date on it. Unless you consume it right away, it may go out of code. The longer you keep it, the [more it diminishes the flavor.]” pb
n PACKAGING HAS COME A LONG WAY
BY MATT OGG
Whether it is modified atmosphere packaging (MAP) to foster quality or techniques that reinforce food safety, technology has come a long way to improve the consumer experience with fresh-cut produce.
Danielle Ohl, digital and online marketing specialist at Oostburg, WI-based Viking Masek, a leader in global packaging technologies, says MAP either maintains or creates a specific environment to increase the shelf life of perishables.
“One way to do this is by fitting a packaging machine with nitrogen gas flush,” says Ohl. “This technology pumps nitrogen gas into a package prior to closing to displace oxygen, thereby decreasing the rate of product degrada- tion and giving fresh produce a longer shelf life.”
She highlights stand-up pouches are seeing strong growth as they provide a premium shelf presence, feature a large amount of surface area for messaging and branding, and are much easier to stock and display than loose produce.
“While it does cost more to package fresh produce in this manner, consumers have been more than willing to pay for this convenience,” she says.
Dr. Matthew Wilson, a postdoctoral research fellow at the ARC Training Center for Innovative Horticultural Products at the Tasmanian Institute of Agriculture in Australia, notes packaging, form and functionality have a great influence on consumer perceptions of fresh produce.
“New packaging innovations can deliver more usable and convenient fresh products to consumers, with improved quality, freshness and longer fresh shelf-life,” says Wilson. “Efficient packaging is also important for reducing waste of resources and produce.
“Passive modified atmosphere pack- aging (MAP) has long been used for fresh produce, however the latest devel- opments are ‘active packaging’ that opti- mizes ripening and controls bacterial levels, ethylene or odors.”
Ohl adds proper sanitation of fresh produce packaging equipment is a top priority to avoid recalls and potentially devastating reputational damage.
“Produce companies can employ a number of technologies to decrease the risk of product contamination during the packaging process,” she says.
These include open and simple modular packaging machine designs under the premise, “If you can’t see it, you can’t clean it,” while tweaking aspects such as angles and electropol- ishing the finishing of surfaces.
“The smoothing and sealing of corners, open seams, exposed threading and pits can eliminate acute angles or niches on the machine where micro- scopic contaminants can hide,” says Ohl. “Sloping the tops of enclosures or adding a trench for proper draining means contaminants will not collect on or in product contact areas.
“To protect fresh produce from any falling debris while it is being packaged, a drip pan can be placed above the packing machine that redirects contam- inants away from the packaging area,” says Ohl. pb
106 / JUNE 2019 / PRODUCE BUSINESS