Retail View: Produce snack sales on the rise
Retail View: Produce snack sales on the rise
The number and sales of produce items at retail that fit into the convenience or value-added category continue to grow, according to Galina Zelfond-Orlosky, category business manager for produce for Daymon Worldwide.
Zelfond-Orlosky is stationed in New England for Daymon, an international firm that specializes in representing branded product at the retail level.
“We are seeing significant growth in retail business for these items,” she told The Produce News.
Though much of the conversation revolved around the growth in snacking category for fresh produce, in many measureable ways produce snack items and value-added items are lumped together.
The Daymon expert said convenience and value-added items account for about 7 percent of retail vegetable sales and 9 percent of sales in the fruit category. And both are growth items, seeing sales increase in the 10 percent range in year-over-year numbers.
Zelfond-Orlosky said there are various reasons why this combined category is on the rise. She said there is a demographic shift with a younger population headed to the stores, smaller families, and the baby boom generation also shrinking in household size as it ages. All three of those groups are looking for more value-added and convenience food either because they don’t want to spend as much time in the kitchen, or they haven’t been brought up cooking meals from scratch.
As far as the growth in healthy snacks, she said the crusade being led by First Lady Michelle Obama is having an impact. More and more people are looking for healthier, more nutritious snacks for their children when they are in the grocery store.
Zelfond-Orlosky said the produce industry is responding with increased variety and increased options. Where once there was only fruit cups in heavy syrup and mini carrots with ranch dressing, there is now a wide array of options.
On the fruit side, she said packages of apple slices, cut mangos and pineapples, pomegranate arils and cups of fresh grapes are only the tip of the iceberg.
Snacking vegetables have also progressed, albeit a bit slower. There aren’t as many options in the snacking arena, but value-added vegetables have exploded. She said petite mini-peppers with dressing are just one example of the opportunities.
Even with whole produce, Zelfond-Orlosky said there is a trend toward more consumer- and kid-friendly options.
For example, in the apple category she said there are many options that go well beyond the apples of a generation ago, noting that the grape-flavored apple seems to do quite well among the younger set.
For the most part, she said retailers are well aware of this evolution and are participating, but Zelfond-Orlosky noted that “not all retailers are capturing the opportunity.”
While she is generally pleased with the space retailers devote to convenience and value-added produce options, she said there is room for significant increase in sales by using end displays and promotional bins for the movement of these items.
She said there are also portable refrigerated or ice-cooled display cases that allow for the prominent secondary display of these items, which typically do need to maintain the cold chain.
“We are seeing more and more insulated coolers being used,” she said.
Zelfond-Orlosky said nutritious snacks targeting kids and convenient foods targeting on-the-go families should continue to be growth areas for the produce industry. Recently, she has seen vegetables already packaged in bags that can just be steamed and opened, which she believes is a perfect example of meeting a need.
Adding to the popularity of these pre-packaged foods, said Zelfond-Orlosky, is the food-safety benefit. Consumers are clearly interested in reducing risk and these items do bring a perception of being properly handled.
The Daymon Worldwide executive did not have figures on actual fresh produce sales but she said her company is forecasting “constant growth” in 2015 and 2016 in the convenient and value-added produce sectors.