The package is a billboard

See how to seize fresh opportunities for produce growth.

When it comes to produce category growth, thinking outside the box may involve thinking more about both what’s in and on the actual box.

In today’s competitive marketplace, production and messaging are inextricably linked, as consumers are savvier — and want to be even more knowledgeable — about what they buy, spend and use. During a disruptive decade and on the heels of elevated inflation, shoppers are expanding their horizons as they make decisions at the point of sale. FMI’s report, U.S. Grocery Shopper Trends: Finding Value, shows a whopping 91% of shoppers concerned with higher prices have made some changes to their shopping habits. More than a third (37%) are using their mobile phones to compare information across stores, up 28 percentage points from 2016.

Shoppers’ quest for more information and options is evident in the produce section. The 2024 Power of Produce report from FMI confirmed that, compared to 2017, significantly more shoppers think through their purchases before they head to the store, including evaluating their need for fresh produce and what kinds of fruits or vegetables they will buy. Six out of 10 shoppers report that they check promotions and prices across two or more stores, and even more look at specials at their primary store and/or across items.

Throughout the field-to-fridge chain, there are ways to boost sales by focusing on the evolving value proposition, variety, sustainability and innovation. Food suppliers, retailers and other stakeholders can work together to provide consumers with the products they want that fit their lifestyles.

Working together has arguably never been more important. Even as they execute against their own business goals, suppliers and grocers can collaborate on creative ways to reach these increasingly discerning consumers.

Veer toward value

Although inflation is coming down from its earlier highs, shoppers still have a laser focus on value. FMI’s recent trends report on value confirms that shoppers managing higher prices optimize purchases for personal enjoyment, ease of use and waste reduction at home.

Reducing waste has moved up the list of value-centric priorities. According to this year’s Power of Produce research, 58% of consumers say they can’t afford to waste fruits or vegetables, and 41% are concerned about the environmental impact of fresh produce waste.

Such attitudes matter because they directly affect behaviors. Just over half (51%) of consumers told us they buy less fresh produce to avoid throwing away food due to spoilage.

Here’s where that whole-box thinking comes in. Many retail fresh departments use the boxes in which products come to build their displays. This is an opportunity for a supplier to enhance their produce boxes by adding graphics or information to their shipping boxes. The previously blank-slate box can now include information on maximizing the shelf life, portion size or tips for using the product. Why not add a QR code that links back to recipes and tips for storing or freezing produce items?

On that note, we know ample opportunities exist to educate people about properly storing fruits and vegetables to make them last longer. The latest Power of Produce shows that two-thirds of shoppers would like to receive more shelf-life tips to prevent waste and loss. People may not know, for instance, that refrigerating potatoes and tomatoes can affect the shelf life and eating experience of those items or that keeping berries at room temperature can result in faster spoilage.

Beyond educating people about handling and storage, growers and grocers can share ways to incorporate produce into their regular consumption so they don’t throw things away. Berry producers, for example, have been successful in promoting berries as snacks and ingredients. Parents always look for creative ways to add vegetables to meals and snacks that appeal to kids.

Beyond shipping boxes, suppliers can leverage various tools to share ideas for optimizing freshness for greater value. Packages are billboards for all kinds of information, and social media and digital platforms are increasingly pivotal resources for consumers.

Share sustainability messaging

Sustainability concerns also drive the desire to optimize fresh produce. Despite inflation, consumers strive to make responsible choices, and suppliers can align with retailers to tell that story to the public.

The Power of Producereport finds that agricultural practices focused on water and soil conservation and fair wages for supply chain employees are increasingly among today’s consumers’ purchasing priorities. In addition, 37% of shoppers say they would be willing to pay a 10% upcharge on a $5 bag of apples if the sustainability benefit is clear.

We know that younger shoppers, including millennials and Gen Z, place a particularly high priority on supporting sustainable growers and providers. They represent the biggest bubble for years to come, and their expressed willingness to pay more for sustainably produced items will likely continue and should be noted.

Here, too, QR codes are an important touchpoint for messaging around sustainability, especially since today’s consumers are adept at and interested in using digital tools. By code or another mode, produce growers can share details about their practices that support sustainability, such as soil conservation, water use, packaging conversions or other efforts.

Focus on your strengths

One thing I often stress to fresh food leaders is to play to your strengths. Fruits and vegetables offer a variety of health and wellness benefits that are important to today’s shoppers, so tell that story early and often.

Another hallmark of these products is their vibrancy. The produce department is often the most colorful part of the in-store experience, and these products are fun to use, eat and, yes, snap for social media posts. Companies should consider that in their marketing efforts both in-store and online.

Together, suppliers and their food retail partners can emphasize the many benefits of fruits, vegetables and other forms of produce that are available in today’s stores and that can be successfully merchandised to consumers driven by simultaneous needs and interests. Whether it is a new and interesting variety or a tried-and-true favorite, fresh sales opportunities are there for the picking.

Rick Stein is VP of Fresh Food, FMI – The Food Industry Association. Rick joined FMI in 2014 and is responsible for developing a portfolio of services and activities to assist members in formulating and executing their fresh food strategies. fmi.org

September 2024
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