CPAC study shows that promoted potatoes enjoy higher volume
CPAC study shows that promoted potatoes enjoy higher volume
A recently released competitive analysis done by the Colorado Potato Administrative Committee stated that retailers "can enjoy case lifts [increased volume] on promoted potatoes up to 345 percent above non-advertised weeks, a rate almost three times greater than that of another leading vegetable, lettuce."
Moreover, the analysis noted, the lifts are experienced during summer months.
As part of its 2004 season category development effort for retailers, the commitee said that while potato sales had declined in more recent months, "the category is still the leader in the department ... [and] surpasses top-sellers in promotional lift rates."
Former Albertsons Produce Director Jim Straub, who now consults for the potato committee, was quoted in the analysis as saying, "Not only is the case lift so much greater during promotional periods, but dollar lifts can also be upward of 75 percent over non-advertised periods."
He continued, "Because the category offers extensive variety and packaging options, retailers can advertise potatoes weekly, which is not often possible with other major categories. This ensures greater margins year round."
Mr. Straub will use this information as part of a series of retailer category seminars nationwide, the committee said.
Other findings in the analysis included the fact that "everyday potato volume tends to be smaller, regardless of the season," which is "contrary to the common assumption of more cases sold during the fall-winter months."
In addition, case movement was shown to remain consistent throughout the seasons, "meaning that there is steady consumer demand for the commodity year round and thus [there is a] rationale to promote accordingly."
And "because of higher average retail, potatoes help retailers increase the "average sales per customer? ring," the study concluded.
CPAC Executive Director Chris Voigt said that his group was "committed to providing value-added solutions? to potato marketing efforts.
?In a time when many chains have reduced educational resources, we are helping them train their produce teams about the realm of possibilities when it comes to potato promotions," Mr. Voigt said. "With the 100 or so varieties grown in Colorado, the possibilities are indeed endless."
In addition to the competitive analysis, the committee plans to launch a proprietary, exclusive consumer education initiative called "Potato Programmed Learning," which will involve consumers in self-education. A reward process designed to enhance potato buying and consumption habits will be used in response to retail requests for consumer education.
(A full report on San Luis Valley potatoes appears in the Feb. 7 issue of The Produce News.)
Moreover, the analysis noted, the lifts are experienced during summer months.
As part of its 2004 season category development effort for retailers, the commitee said that while potato sales had declined in more recent months, "the category is still the leader in the department ... [and] surpasses top-sellers in promotional lift rates."
Former Albertsons Produce Director Jim Straub, who now consults for the potato committee, was quoted in the analysis as saying, "Not only is the case lift so much greater during promotional periods, but dollar lifts can also be upward of 75 percent over non-advertised periods."
He continued, "Because the category offers extensive variety and packaging options, retailers can advertise potatoes weekly, which is not often possible with other major categories. This ensures greater margins year round."
Mr. Straub will use this information as part of a series of retailer category seminars nationwide, the committee said.
Other findings in the analysis included the fact that "everyday potato volume tends to be smaller, regardless of the season," which is "contrary to the common assumption of more cases sold during the fall-winter months."
In addition, case movement was shown to remain consistent throughout the seasons, "meaning that there is steady consumer demand for the commodity year round and thus [there is a] rationale to promote accordingly."
And "because of higher average retail, potatoes help retailers increase the "average sales per customer? ring," the study concluded.
CPAC Executive Director Chris Voigt said that his group was "committed to providing value-added solutions? to potato marketing efforts.
?In a time when many chains have reduced educational resources, we are helping them train their produce teams about the realm of possibilities when it comes to potato promotions," Mr. Voigt said. "With the 100 or so varieties grown in Colorado, the possibilities are indeed endless."
In addition to the competitive analysis, the committee plans to launch a proprietary, exclusive consumer education initiative called "Potato Programmed Learning," which will involve consumers in self-education. A reward process designed to enhance potato buying and consumption habits will be used in response to retail requests for consumer education.
(A full report on San Luis Valley potatoes appears in the Feb. 7 issue of The Produce News.)
