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“The tomato shoppers are
becoming connoisseurs
in many respects; they are
hunting for the right toma-
to depending on its usage.”
— Chris Veillon, Pure Hothouse Foods Inc.
organic produce: integrated versus segregated merchandising strategies. Both are experi- encing growth, so both are valid, notes Red Sun Farms’ Paivarinta.
Segregated merchandising on a larger scale shows customers you are committed to organics and are constantly expanding offer- ings in a dedicated space within the produce department, he says. “The only downside is that if you shop organics infrequently or aren’t a committed consumer, you just bypass the dedicated space,” adds Paivarinta.
“We’ve seen the best results converting consumers to purchase organics with a higher frequency is through fully integrated merchandising strategies.”
By merchandising organics directly adja- cent to conventional offerings, shoppers can assess both options “head to head” and make their choice.
“We have experienced a faster shift, and organic category growth occurs faster with many retailers who’ve embraced the inte- grated-merchandising strategy, especially now that the price, quality and offerings of organic produce has improved over the past five years,” says Paivarinta.
There are several important variables that need to be considered when it comes to retailer merchandising sets, says Ferman of Brighthouse Organics.
“Small tomato usage also continues to increase as consumers focus more on salads and other healthy, on-the-go products,” he says. “We provide consumers with variety to meet the needs of different usage occasions all year long and recommend at least 50 percent of the category be within the small tomatoes category.”
Unlike Paivarinta, Ferman is in the camp that recommends a segregated organics section.
“Brighthouse Organics recommends merchandising all organic items together in the same area of the produce department, as the organic shopper is looking to buy organic across their basket,” he says.
can find everything they need reduces the time to search and compare and, ultimately, makes for an enjoyable experience with a greater likelihood they leave the store with everything they want.”
Procacci Bros. Sales Corp.’s Feighery says choosing between a segregated or integrated organic section depends on the retailer and their pricing.
“With integrated sets, we’ve seen good pulls on organics if the pricing structure is similar to conventional,” he says. “It depends
on the flow of product and types of customers shopping the store. If you’ve got customers buying only organic, it’s easier for them to shop a segregated display.”
Pure Hothouse Foods Inc.’s Veillon says it’s typical for retailers to carry upwards of 12-15 different conventional tomato SKUs compared to two to three organic options.
Romero at Kroger says space allocation is driven by store size and customer demo- graphic/purchase patterns.
“Similar to conventional, a blend of bulk
“Creating a destination where the shopper
PRODUCE BUSINESS / AUGUST 2018 / 63