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merchandising review mushrooms
Nearly A Billion Pounds And
Still Mushrooming Nationwide
Versatility, blendability and healthful attributes help spur sales, popularity.
BTY BOB JOHNSON
he already vigorous mushroom category figures to grow even healthier as the leading na- tional producer group rolls out its blending campaign, and as
some consumers are drawn to an increasing array of intriguing specialty varieties.
The volume of U.S. mushroom sales al- ready rose steadily from 800 million pounds a decade ago to 900 million last year, according to the U.S. Department of Agriculture re- port on the commodity released on August 21, 2017, as this familiar food has become a rising star.
“Mushrooms are outperforming the rest of the produce department by quite a bit,” says Kevin Donovan, national sales manager at Phillips Mushroom Farms, Kennett Square, PA. “They’ve been up the past few years. Mushrooms are healthy, nutritious, always available, and they are in interesting recipes that people want to try.”
Phillips is one of many operations in an area west of Philadelphia that produces a majority of all the mushrooms grown in the United States.
The Mushroom Council in Redwood Shores, CA, says mushrooms are a strong growth item at retail that require attention to the category in order to maximize sales, which should be on pace or outpacing the categories in their markets. According to the Council, sales of mushrooms at retail experienced sig- nificant growth in every quarter last year over the prior year.
Most of the commercial mushrooms in the country that are not from Pennsylvania come from Northern California farms, which have sprouted up as interest in specialty mush- rooms has increased.
“The selection you need depends on the demographic of the area,” says Justin Reyes, director of sales and marketing at Gourmet Mushrooms, Sebastopol, CA. “Mushrooms are in the top 15 items in the produce depart-
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ment, and there is a category expansion like there has been in citrus or kale. It started at Whole Foods a few years back. Now a lot of people are interested in the diversification of the produce department.”
SETTING UP THE DISPLAY
When it comes to the mushroom display, size matters because too much shelf space leads to throwing out spoiled product, but too little leaves a retailer unable to carry the variety some customers expect.
“To minimize shrink and maximize sales, it’s important to know your consumer and of- fer the variety that matches the store demo- graphics,” says Mike O’Brien, vice president of sales and marketing at Monterey Mush- rooms, Watsonville, CA. “Use proper ordering to turn product. Use your history and current trends. Stay in stock. Out-of-stocks lead to loss sales, disappointed customers and really
PHOTO COURTESY OF MUSHROOM COUNCIL
plays havoc with your scan data. Mushroom shrink will run as high as 10 percent or more due to the perishability of the category.”
Because mushrooms appeal most to people with a few extra dollars, deciding on the size of the display, and the number of varieties and SKUs, begins with knowing the demographics of the store.
“An affluent demographic with discretion- ary income is where we see the highest pen- etration in mushroom sales,” says Scott Tyo, category business manager for vegetables at Tops Markets, Amherst, NY. “Mushrooms tend to be polarizing and only appeal to a select group, rather than the mass public, so they often tend to be left out of major features or front page activity.”
Some shippers will help their retailer cus- tomers sort through the demographics to make informed decisions on the display.
“Knowing your customers, retailers can