Drinking your lunch -- from the fresh produce department
Drinking your lunch -- from the fresh produce department
Most trends that change the landscape of produce departments evolve somewhat gradually. One major chain will make a noticeable display or arrangement change that proves successful, and soon another chain follows suit. Often the changes have their roots at small independent retailers, especially gourmet-level stores that do not have set corporate guidelines and more freedom to make creative changes. That is how, for example, produce departments were ultimately moved from the rear of stores to the front. Today it is a rare grocery store -- major chain or independent -- that does not greet its customers with large, colorful and sometimes lavish displays of fresh produce when they walk in the front door.
One of the more notable produce department changes in recent times is the substantial amount of space being dedicated to premium juice drinks, including flavored and vitamin-packed waters. In some stores, these sections seem to be taking as much, if not more, space than fresh fruits and vegetables.
There is good reason to market premium juices in the produce department. They fit perfectly with the "grab and go" products that are selling strongly today. Ready-made salads in clamshells with small pouches of dressing and croutons tucked inside, fruit salads and other value-added items that are convenient and ready to eat are perfectly suited for people who are taking a quick lunch or snack break or who are buying something on the way home from work to have for dinner. This "in-your-face" display method, the "ready- to-eat" benefit and the average price of $2.99 work well for nearly all retailers and consumers across the United States.
Going an extra mile is the concept of "meal-in-a-bottle" beverages, which fit the nutrition and health trends of the day. The movement got its start when POM Wonderful began showing up in produce departments in 2002. The double-bubble bottles caught consumers' attention. The media jumped, as did shoppers who had been busy learning new terms like "polyphenol antioxidants" and "free radicals." The company is a huge success story in the premium juice category, and other companies were quick to jump on the juicy bandwagon. In the past few years, Naked Juice, Bossa Nova, Nantucket Nectars, Juice Squeeze, Arizona Iced Tea, Hansen's, Fruitopia, Snapple, Izze, Noble Juice, Dole, Bolthouse Farms, Natalie's Orchid Island, Juice Heads, Cherrish, Tart is Smart, Frutzzo, Wild Fruitz, Uncle Matt's and many others have been vying for shelf space. And as a category, premium juice is sharing shelf space with flavored and nutrient-packed waters, ready-to-drink coffee and tea beverages, and sports drinks.
While the majority of beverages are a single or double serving, even large sizes of premium juices are performing well in produce departments, especially if they have something extra to offer consumers -- like certified organic products. In early July this year, Uncle Matt's Organic in Claremont, FL, an organic fresh citrus and organic juice producer, is premiering three flavors of premium juices in 32-ounce bottles developed for produce departments.
"Organics are very important to the health and wellness set today," said Matt McLean, chief executive officer. "Orange juice is traditionally used in many ways, so many consumers consider the larger bottles a value. Some retailers are telling us that they do not particularly want more smaller-size juices."
The price of the Uncle Matt's product will put some competitive pressure on other drinks. The 32-ounce bottles have a suggested retail price of between $2.99 and $3.49 - which is what most eight- or 12-ounce bottles cost at retail.
Many major producers are using gorilla-marketing techniques in this highly competitive market. They utilize every possible venue to highlight their products and emphasize what they believe is its special niche. But some, like Odwalla in Halfmoon Bay, CA, go far beyond just spending promotional dollars. This producer delivers, stocks and manages the inventory for nearly every retailer that handles its products.
Steven McCormick, general manager and chief executive officer of Odwalla, said that the company stands out because of its space-management program.
"Odwalla supplies and merchandises the coolers," said Mr. McCormick. "We keep the coolers flawless and restock the storage areas. Produce managers never have to worry about running out of product, if shelf life on bottles is nearing expiration or which flavors are most popular -- we do it all for them. We also guarantee sales. If the product doesn't move, we pick it up, take it back and give the retailer full credit. There is absolutely no risk to the grocery store - no shrinkage and no labor - which are all issues that cost produce departments a lot of money. Our delivery representatives are at their stores frequently enough to keep inventory fresh and well stocked."
Mr. McCormick said that the coolers have traditionally been placed adjacent to or in the produce departments, but when store managers realize how fast the juices sell, they are quickly relocated to in front of the checkout counters -- though they also tend to continue to stock the product in the produce department among other juices. The company continues to expand rapidly with both wider distribution and by adding new beverage flavors.
Professionals in the produce industry are quick to learn about a new trend, and, when possible, they latch on to a new movement. As a result of the growing beverage category, increasing numbers of distributors are handling the products, and their SKU lists are growing quickly.
Bob Kirch, executive vice president and chief operating officer for Caito Foods in Indianapolis, said that the premium juice category has taken the place of salad dressings in produce departments today, and the number of products is growing quickly.
"We now carry over 100 SKUs of fresh natural juices, and we are adding to the line continually," he said. "'Bolthouse Farms,' 'POM Wonderful,' 'Naked Juice,' 'Noble Juice,' 'Orchard Island,' among others, are all important brands today. Produce departments are getting larger to accommodate these high-profit, low-shrinkage items, and are even being redesigned for better utilization of space because of the category. Multi-deck cases hold much more than case designs of past years, and they have become an imperative for retailers who realize the importance of offering a wide range of products in their produce departments."
(For more on premium juices, see the June 18 issue of The Produce News.)
One of the more notable produce department changes in recent times is the substantial amount of space being dedicated to premium juice drinks, including flavored and vitamin-packed waters. In some stores, these sections seem to be taking as much, if not more, space than fresh fruits and vegetables.
There is good reason to market premium juices in the produce department. They fit perfectly with the "grab and go" products that are selling strongly today. Ready-made salads in clamshells with small pouches of dressing and croutons tucked inside, fruit salads and other value-added items that are convenient and ready to eat are perfectly suited for people who are taking a quick lunch or snack break or who are buying something on the way home from work to have for dinner. This "in-your-face" display method, the "ready- to-eat" benefit and the average price of $2.99 work well for nearly all retailers and consumers across the United States.
Going an extra mile is the concept of "meal-in-a-bottle" beverages, which fit the nutrition and health trends of the day. The movement got its start when POM Wonderful began showing up in produce departments in 2002. The double-bubble bottles caught consumers' attention. The media jumped, as did shoppers who had been busy learning new terms like "polyphenol antioxidants" and "free radicals." The company is a huge success story in the premium juice category, and other companies were quick to jump on the juicy bandwagon. In the past few years, Naked Juice, Bossa Nova, Nantucket Nectars, Juice Squeeze, Arizona Iced Tea, Hansen's, Fruitopia, Snapple, Izze, Noble Juice, Dole, Bolthouse Farms, Natalie's Orchid Island, Juice Heads, Cherrish, Tart is Smart, Frutzzo, Wild Fruitz, Uncle Matt's and many others have been vying for shelf space. And as a category, premium juice is sharing shelf space with flavored and nutrient-packed waters, ready-to-drink coffee and tea beverages, and sports drinks.
While the majority of beverages are a single or double serving, even large sizes of premium juices are performing well in produce departments, especially if they have something extra to offer consumers -- like certified organic products. In early July this year, Uncle Matt's Organic in Claremont, FL, an organic fresh citrus and organic juice producer, is premiering three flavors of premium juices in 32-ounce bottles developed for produce departments.
"Organics are very important to the health and wellness set today," said Matt McLean, chief executive officer. "Orange juice is traditionally used in many ways, so many consumers consider the larger bottles a value. Some retailers are telling us that they do not particularly want more smaller-size juices."
The price of the Uncle Matt's product will put some competitive pressure on other drinks. The 32-ounce bottles have a suggested retail price of between $2.99 and $3.49 - which is what most eight- or 12-ounce bottles cost at retail.
Many major producers are using gorilla-marketing techniques in this highly competitive market. They utilize every possible venue to highlight their products and emphasize what they believe is its special niche. But some, like Odwalla in Halfmoon Bay, CA, go far beyond just spending promotional dollars. This producer delivers, stocks and manages the inventory for nearly every retailer that handles its products.
Steven McCormick, general manager and chief executive officer of Odwalla, said that the company stands out because of its space-management program.
"Odwalla supplies and merchandises the coolers," said Mr. McCormick. "We keep the coolers flawless and restock the storage areas. Produce managers never have to worry about running out of product, if shelf life on bottles is nearing expiration or which flavors are most popular -- we do it all for them. We also guarantee sales. If the product doesn't move, we pick it up, take it back and give the retailer full credit. There is absolutely no risk to the grocery store - no shrinkage and no labor - which are all issues that cost produce departments a lot of money. Our delivery representatives are at their stores frequently enough to keep inventory fresh and well stocked."
Mr. McCormick said that the coolers have traditionally been placed adjacent to or in the produce departments, but when store managers realize how fast the juices sell, they are quickly relocated to in front of the checkout counters -- though they also tend to continue to stock the product in the produce department among other juices. The company continues to expand rapidly with both wider distribution and by adding new beverage flavors.
Professionals in the produce industry are quick to learn about a new trend, and, when possible, they latch on to a new movement. As a result of the growing beverage category, increasing numbers of distributors are handling the products, and their SKU lists are growing quickly.
Bob Kirch, executive vice president and chief operating officer for Caito Foods in Indianapolis, said that the premium juice category has taken the place of salad dressings in produce departments today, and the number of products is growing quickly.
"We now carry over 100 SKUs of fresh natural juices, and we are adding to the line continually," he said. "'Bolthouse Farms,' 'POM Wonderful,' 'Naked Juice,' 'Noble Juice,' 'Orchard Island,' among others, are all important brands today. Produce departments are getting larger to accommodate these high-profit, low-shrinkage items, and are even being redesigned for better utilization of space because of the category. Multi-deck cases hold much more than case designs of past years, and they have become an imperative for retailers who realize the importance of offering a wide range of products in their produce departments."
(For more on premium juices, see the June 18 issue of The Produce News.)
