Grow the Market

A new report published by Dutch lender Rabobank’s Food & Agribusiness Research and Advisory team says that despite efforts by governments to promote the benefits of a healthy diet, consumption of fruit and vegetables in Western Europe and the U.S. has declined over the past decade.

Reasons for the decline:

1. Lower incomes and perceived price increases
On a household level, there is a clear relationship between income and fruit and vegetable intake. So in a tough economic climate, consumers become more susceptible to fluctuations in price. This impact can be exacerbated by the common misperception among consumers that unhealthy food is cheaper to eat than healthy food.

2. Strong competition from processed and convenience foods
Processed foods have become a strong competitor for fruits and vegetables for different reasons: availability, taste, marketing, product range and convenience. Even when consumers do opt for a healthy choice, they will likely select processed foods in the “health and wellness category” over a fresh option.

Three ways to fix it:

1. Reducing inconvenience:
Convenience is often cited as a barrier to consumption of fruits and vegetables, a claim that is supported by the popularity of prepared products. Find innovative ways to boost convenience, like vegetables that can be heated directly in the microwave without removing packaging.

2. Marketing based on more than health benefits:
Consumers already know fruit and vegetables are good for them. So, focus on the convenience, taste, enjoyment, and versatility of fruits and vegetables.

3. Better cooperation along the supply chain:
Short dedicated supply chains in which the brand owner is in control can help partners improve quality and freshness (by reducing time to market or choosing the tastiest varieties).

Yes, women are all that
Recently, Neilsen, Pew and the Private Label Manufacturers Association (PLMA) released studies reaffirming the critical importance of women to retail success. These studies offer insights for supermarkets and others to strategize around. Here are highlights of what their reports show.

According to Nielsen, women made 72% of trips to dollar stores and mass merchants in 2012, as well as 69% of trips to supercenters, 68% to drugstores, 63% to supermarkets, 61% to wholesale clubs, and 43% to convenience/gasoline outlets.

Women also spend more money per trip than men in every channel. Nielsen specified, for instance, that women drive the larger, planned stock-up trips and outspend men by $14.31 per supercenter trip and $10.32 per supermarket trip.

Source: www.factsfiguresfuture.com

 
Did you know? Research has found that two-thirds of U.S. and half of all European products referencing fruit on their packaging contained no or only trace amounts of fruit.
Source: PR Newswire