IN THE TRENCHES: Outstanding produce quality has increased sales and consumption
IN THE TRENCHES: Outstanding produce quality has increased sales and consumption
You want to purchase a stepladder at your local home improvement store. You have a choice between an inexpensive, cheesy, bargain-basement stepladder and a premium, quality priced, extra heavy-duty unit. Which ladder would you climb with a full gallon of red paint?
You're planning to take a vacation on a cruise ship. There are many options for vessels that are heading out to sea. There is the el cheapo cruise ship Old Pinhole Sides that recently underwent some patching. Then there's Queen Reliable that is recognized for its well-built structure and safety record. The price package for this cruise is somewhat higher, but it certainly should operate right on the open sea. Would you spend a little more money for a quality product to float around on the water?
What about shopping for fresh fruits and vegetables in a supermarket? Do you think consumers want to buy small sizes or second-grade product for a low price? They used to years ago, but not anymore. Today, shoppers buy more produce and are even willing to pay more for it if they can get the very best. They desire product that not only looks good and will last longer, but also tastes good. Quality is at the top of their priority list.
According to the Produce Marketing Association, per-capita consumption of fruits and vegetables in the United States continues to rise. In 1990, consumption per capita was 287 pounds. By 2000, it increased to 329 pounds. Today, that figure stands at 343 pounds -- and it is still rising.
PMA data also show that retail industry produce sales are trending toward $55 billion. In 1997, sales were $30 billion. In 2005, that number reached $53.6 billion.
In addition, PMA research reveals that sales of organically grown produce rose from $2 billion in 1998 to $5.8 billion in 2006. During the past eight years, organic produce has continued to experience double-digit percentage growth. By the end of 2007, organic produce sales are expected to exceed the $6 billion mark.
What big reasons are there for sales and consumption results to show such positive growth? Why are these consistent increases happening? Of course, there is a combination of reasons that contribute to this success: better merchandising, greater promotions, healthier eating habits and changing lifestyles.
The big boost in produce growth over the past couple of decades -- and especially today -- is primarily due to the improved quality of fruits and vegetables in general. Overall, produce is superb in every way.
I've spoken with growers, shippers and retailers across the nation. I visited them, toured their operations and sat down to get to know them better. Most are doing a great job to improve produce quality at many different levels.
There are growers who are really doing the job right. They have upgraded the quality of produce with hard work, patience and technology, and especially by being good listeners to retailers and consumers. Growers have committed much to the exquisite quality of produce we now have in the marketplace.
Mike Aiton, senior vice president of sales and marketing at Sun World International LLC in Bakersfield, CA, told me, "A lot of the credit goes to the farmers. They are always pushing to get better. The old standard varieties of years ago are being replaced by newer and much better varieties. Shippers also have to be sharper."
"The quality bar gets raised higher -- especially by retailers," said Keith Wilson, vice president of sales and marketing for Sunny Cove Citrus in Orange Cove, CA. "The competition is fierce today, not only domestically but internationally as well. This makes the expectations for best quality a big challenge. "
Dan Avakian, owner of Dan's Fresh Produce LLC, a retail produce store in Alameda, CA, commented, "The best deal is getting top-quality produce all of the time. The consumers demand it here in the heart of the San Francisco Bay area. Growers contribute to better quality. They know that the big food chains drive quality. The development of newer varieties and taste also contribute to better quality."
Speaking under the condition of anonymity due to corporate policy, a produce director of a major retail chain told me, "We've raised the bar on expectations. We're more demanding for better quality produce from growers today in the way of better product, taste and packaging. "
Most industry experts agree that top quality is a primary reason for generating sales and per-capita consumption. Having high quality standards is a major benefit for better display presentation, better flavor and better shelf life. A consistent, top-quality supplier results in consistent customer purchasing.
When it comes to buying fresh fruits and vegetables, today's consumers can be overwhelmed with all the options available. They have many choices in varieties, sizes, packages and pricing, but the choice that drives most sales is that of the best quality product.
Premium quality is the dramatic driving mechanism that increases the volume of produce. With quality comes success. That's why people should buy their produce from you.
(Ron Pelger is the owner of RONPROCON, a consulting firm for the produce industry. He can be reached by phone at 775/853-7056, by e-mail at [email protected], or check his web site at www.power-produce.com.)
You're planning to take a vacation on a cruise ship. There are many options for vessels that are heading out to sea. There is the el cheapo cruise ship Old Pinhole Sides that recently underwent some patching. Then there's Queen Reliable that is recognized for its well-built structure and safety record. The price package for this cruise is somewhat higher, but it certainly should operate right on the open sea. Would you spend a little more money for a quality product to float around on the water?
What about shopping for fresh fruits and vegetables in a supermarket? Do you think consumers want to buy small sizes or second-grade product for a low price? They used to years ago, but not anymore. Today, shoppers buy more produce and are even willing to pay more for it if they can get the very best. They desire product that not only looks good and will last longer, but also tastes good. Quality is at the top of their priority list.
According to the Produce Marketing Association, per-capita consumption of fruits and vegetables in the United States continues to rise. In 1990, consumption per capita was 287 pounds. By 2000, it increased to 329 pounds. Today, that figure stands at 343 pounds -- and it is still rising.
PMA data also show that retail industry produce sales are trending toward $55 billion. In 1997, sales were $30 billion. In 2005, that number reached $53.6 billion.
In addition, PMA research reveals that sales of organically grown produce rose from $2 billion in 1998 to $5.8 billion in 2006. During the past eight years, organic produce has continued to experience double-digit percentage growth. By the end of 2007, organic produce sales are expected to exceed the $6 billion mark.
What big reasons are there for sales and consumption results to show such positive growth? Why are these consistent increases happening? Of course, there is a combination of reasons that contribute to this success: better merchandising, greater promotions, healthier eating habits and changing lifestyles.
The big boost in produce growth over the past couple of decades -- and especially today -- is primarily due to the improved quality of fruits and vegetables in general. Overall, produce is superb in every way.
I've spoken with growers, shippers and retailers across the nation. I visited them, toured their operations and sat down to get to know them better. Most are doing a great job to improve produce quality at many different levels.
There are growers who are really doing the job right. They have upgraded the quality of produce with hard work, patience and technology, and especially by being good listeners to retailers and consumers. Growers have committed much to the exquisite quality of produce we now have in the marketplace.
Mike Aiton, senior vice president of sales and marketing at Sun World International LLC in Bakersfield, CA, told me, "A lot of the credit goes to the farmers. They are always pushing to get better. The old standard varieties of years ago are being replaced by newer and much better varieties. Shippers also have to be sharper."
"The quality bar gets raised higher -- especially by retailers," said Keith Wilson, vice president of sales and marketing for Sunny Cove Citrus in Orange Cove, CA. "The competition is fierce today, not only domestically but internationally as well. This makes the expectations for best quality a big challenge. "
Dan Avakian, owner of Dan's Fresh Produce LLC, a retail produce store in Alameda, CA, commented, "The best deal is getting top-quality produce all of the time. The consumers demand it here in the heart of the San Francisco Bay area. Growers contribute to better quality. They know that the big food chains drive quality. The development of newer varieties and taste also contribute to better quality."
Speaking under the condition of anonymity due to corporate policy, a produce director of a major retail chain told me, "We've raised the bar on expectations. We're more demanding for better quality produce from growers today in the way of better product, taste and packaging. "
Most industry experts agree that top quality is a primary reason for generating sales and per-capita consumption. Having high quality standards is a major benefit for better display presentation, better flavor and better shelf life. A consistent, top-quality supplier results in consistent customer purchasing.
When it comes to buying fresh fruits and vegetables, today's consumers can be overwhelmed with all the options available. They have many choices in varieties, sizes, packages and pricing, but the choice that drives most sales is that of the best quality product.
Premium quality is the dramatic driving mechanism that increases the volume of produce. With quality comes success. That's why people should buy their produce from you.
(Ron Pelger is the owner of RONPROCON, a consulting firm for the produce industry. He can be reached by phone at 775/853-7056, by e-mail at [email protected], or check his web site at www.power-produce.com.)
