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merchandising review onions
Seven Ways To Propel
Onion Category Sales
Keep in mind some key merchandising habits
that appeal to consumers from varying demographics.
OBY JODEAN ROBBINS
nions remain a staple retail product with continued market potential for retailers who assert some key merchandising habits. Sales
continue to increase, according to Steve Gill, owner of Gills Onions in Oxnard, CA. “Onions represent the third-largest fresh vegetable industry in the United States,” he says. “U.S. per capita consumption of onions translates to more than 450 semi-truck loads of onions used each day.”
A ubiquitous product used in most cuisines, onions enjoy widespread consump- tion. “With nearly 70 percent of consumers regularly purchasing onions throughout the year, they’re deeply rooted in Ameri- ca’s kitchens,” says Teri Gibson, director of marketing and customer relations for Peri & Sons Farms in Yerington, NV.
René Hardwick, director of public and industry relations for the National Onion Asso- ciation, based in Greeley, CO, reports the latest
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figures from the U.S. Department of Agricul- ture indicate onion consumption holding steady at around 20 pounds per capita per year.
Trends in the onion category, including sweet varieties and value-added, propel sales. “Sales are growing within the category,” says Paul Kneeland, executive director of produce, food service, floral and bakery operations for Gelson’s Markets in Santa Fe Springs, CA, with 26 stores. “Sweet onion sales are up; green onions are also up; chopped and value- added onions are way up.”
At 130-store K-VA-T Food Stores in Abingdon, VA, onions remain a popular item. “We continue to see high demand, especially the sweet onion category,” says Keith Cox, produce category manager.
Yet, by tweaking a few crucial merchan- dising areas, retailers can drive even more onion sales.
1. OFFER VARIETY
One imperative of onion merchandising is offering variety, and retailers are encouraged to link usage to what they offer. “Unlike an apple, banana or grapes, no one buys an onion for a snack while driving home,” says Derrell Kelso, president of Onions Etc. in Stockton, CA. “Onions are used only when cooking at home.”
PHOTO COURTESY OF PERI & SONS
Kelso recommends promoting variety based on usage. “Yellows are for slow -cooking, BBQ, casseroles, steaks and fish,” he says. “They appeal to all ethnic groups, from Pacific Rim to European to Indian foods. Reds and sweet yellows are great for salads, sandwiches, Hispanic foods, picnics, hamburgers, salsa and relishes. White onions particularly appeal to Hispanic consumers.”
Because different varieties of onions are used in multiple recipes, Hardwick suggests grocers carry all varieties of onions. “Onions are produced and sold year-round, and certainly they are consumed all year long,” she says. “Onions enjoy the limelight as more recipes call for a mix of savory and sweet options. Yellow onions are great for caramel- izing and grilling; white onions add punch to Mexican fare; red onions are just right for pickling or topping a sandwich.”
Cox agrees on the importance of core variety. “All stores should have red, white, yellow-cooking, sweet and fresh green onions,” he says.
2. HIGHLIGHT SWEETS
One of the biggest boosts to the onion category in past decades has been the advent of the sweet onion. “We see the onion cate- gory expanding, especially on the sweet onion