Grocers Look In-Store, Online to Promote Produce

As the bountiful fall produce and busy back-to-school season approaches, grocers and suppliers are gearing up to increase sales both online and in store.

Last month, Bentonville, Ark.-based Wal-Mart Stores Inc. announced the expansion of back-to-school essentials available through its Online Grocery Pickup and Pickup Today services. The mega-retailer also introduced Back-to-School Helpers, employees dedicated to saving customers time while they shop in store.

Walmart’s website features a School Essentials tab from which users can shop a variety of categories, from lunch bags to calculators to snacks. Healthful produce-based snacks, including Wonderful Pistachios, SunMaid Raisins, Sunkist Fruit Chips and Blue Diamond Almonds, are all just a click away.

The company increased its back-to-school staples available for Online Grocery Pickup by 150 percent year-over-year, allowing customers to stock up on lunchbox favorites at the same time that they shop for school supplaies, and have them all delivered to their cars. It also doubled the number of items available for same-day pickup.Walmart currently has more than 800 Online Grocery Pickup locations across the country.

Earlier this year, CNBC cited a report from Citi Research indicating that Walmart was “‘best positioned’ among the major food retailers to capitalize on the next phase of growth in online grocery and take on Amazon.” The report, released prior to Amazon’s bid to purchase Whole Foods Market, ranked the Austin, Texas-based natural grocer at the bottom of the list.

Citi Research considered profitability, brick-and-mortar pricing, online pricing, exposure to Seattle-based Amazon and early-adopter advantage in its analysis.

Consumer spend on online grocery shopping could reach $100 billion by 2025, according to the initial findings of the “Digitally Engaged Food Shopper” study from Food Marketing Institute and Nielsen, released earlier this year.

The study further found that “within the next decade, online food shopping will reach maturation in the U.S., far faster than other industries that have come online before.”

Sporty Sales

With an eye to this burgeoning market and an understanding of how consumers — particularly Millennials — shop today, The Wonderful Co., in Los Angeles, has heightened its investment in digital marketing.

This fall, Wonderful Pistachios is making its largest digital investment ever, in tandem with in-store sports-inspired point-of-sale materials, and television spots during NFL games on Sunday and Monday. Healthful snacking with personality is a core theme of the campaign.

“Nearly half of our consumers enjoy pistachios during sports,” notes Adam Cooper, VP, marketing for The Wonderful Co.

The $55 million Wonderful Pistachios marketing campaign also boasts a new billboard in New York’s Times Square. With additional funding from Wonderful Halos and POM Wonderful, all three brands appear together in the billboard campaign for the first time.

“We’re starting to see real success,” says Cooper of the company’s digital presence and online sales. He reports that online sales of Wonderful Pistachios are up 35 percent this year, and bigger- pack ships are particularly strong sellers.

Building on the success of last year’s football-focused campaign, which included online videos of the Seattle Seahawks’ Richard Sherman and in-store display units featuring life-size cutouts of the star athlete, this year’s campaign will also feature Clay Matthews, of the Green Bay Packers.

New videos of Sherman touting Wonderful Pistachios as the healthful snack for game day are also on tap. The campaign runs from Sept. 10 through football season.

A Digital Feast

“Digital is a great channel for video, because a consumer shopping from the comfort of his or her home is likely to be more relaxed and captive than someone in a hurry at the store,” affirms Megan Schulz, director of communications for Los Angeles-based Giumarra Cos.

From recipes to product information to grower stories, opportunities for greater depth in digital versus in-store marketing abound.

This fall, Guimarra will dramatically increase its volume of persimmons. The produce marketing company is working with a new California grower of the fruit.

“Persimmons are an excellent source of vitamin A and dietary fiber, and can be used to complement a variety of sweet and savory dishes,” Schulz explains. Guimarra has created several persimmon recipes that can be highlighted in store or online to generate excitement about the category.

“Without a doubt, Millennials are connected to social media,” asserts Jacob Shafer, senior marketing and communications specialist for Mann Packing Co., in Salinas, Calif. “More importantly, they are using it as their primary source to find and hear about products, special deals and shopping news/trends.”

Mann’s recently launched a redesigned website with a new recipe format and product locator. The company has found that recipe searches drive consumers to its site. It plans to regularly update the site with new recipes and more.

Local Flavors

The New York Apple Association (NYAA), in Victor, N.Y., is encouraging retailers to focus on flavor and buying local this fall.

“This is a very exciting time to be involved in the apple industry, as the category is undergoing a renaissance,” enthuses NYAA President and CEO Cynthia Haskins. “Consumers are excited about apples again!”

Flavorful new varieties and old favorites alike are contributing to the resurgence. “New York state and Cornell University lead the industry in new variety innovation,” says Haskins. Cornell has introduced such new varieties as RubyFrost and SnapDragon, both of which can be grown only in New York state.

As local remains the hottest trend in food, New York apple growers hope that area grocers will capitalize on the fruit’s homegrown appeal.

“New York state has the market advantage of being in the backyard of New York City, the largest consumer market in the country, and within a day’s drive of every major market on the East Coast,” notes Haskins.

Grocers seeking to increase sales of New York-grown apples can turn to the NYAA and its custom marketing programs that are designed to meet the needs of individual retailers. “Our toolbox includes both ‘high-touch’ and ‘high-tech’ support, from demos to point-of-sale promotions to print advertising and digital coupons,” adds Haskins.

While she says that building harvest displays with fresh apples and apple cider is a great way to highlight the flavors of fall, the NYAA has developed a host of merchandising and promotional ideas for grocers that are available through its YouTube channel, NewYorkApples1.

“Looking beyond the fall, we would love to see the market keeping a spotlight on New York state apples for as long as we’ve got fruit in the marketplace,” urges Haskins. While New York growers and packers can typically supply fruit for three seasons, most grocers focus on apples in the fall.

Fall Forward

The avocado category is also ripe with opportunity this fall and beyond. Grocers that build on the momentum of peak-season sales can help drive purchases through the end of the year.

According to the Hass Avocado Board’s (HAB) “Shopper Segmentation Study: Using Shopper Insights to Drive Retail Sales of Hass Avocados,” household avocado purchases are highest in Q3 and dip to a quarterly low in Q4.

What’s more, 3 percent of “super heavy” user households and 7 percent of “heavy” user households drop out of the avocado category altogether in Q4.

“Finding ways to keep these influential shoppers interested in avocados during Q4 has huge potential,” says Alejandro Gavito, HAB category data and research manager. Strategic marketing that leverages the seasonality and quality of the fruit is key in store. Taking a dual in-store and online approach also shows promise.

Another recently released study from Mission Viejo, Calif.-based HAB, “Avocado Category Channel Overview,” reveals that despite competition from emerging channels, 73 percent of all avocado purchases (in dollars) were still made in traditional brick-and-mortar grocery stores in 2016. The study also found, however, that many households are shopping for avocados in more than one channel.

“Avocados play a very prominent and important role in fresh produce departments,” asserts Gavito, “and, with the growing popularity of fresh avocados in the U.S., avocados are becoming available in an increasing number of retail outlets and formats. We see tremendous opportunity for avocados across all channels, including ecommerce.”

Colorful and Convenient Organics

Mann’s recently expanded its organic line with the addition of Organic Green Beans, Organic Cauliflower Florets and Organic Super Blend, featuring kale, colored carrots, green cabbage and broccoli.

“The product stands out on shelf, offers exceptional versatility, and can be served on its own or incorporated into dishes like salads, smoothies or other meals,” notes Shafer.

To capture the shopper’s attention in store, Shafer recommends creating “destination categories” to help consumers find innovative products.

The specialty produce experts at Frieda’s Inc., in Los Alamitos, Calif., predict that purple and organic will reign supreme in produce departments this fall.

“Our focus this fall is on Stokes Purple Sweet Potatoes, both organic and traditional,” says Frieda’s Alex Jackson Berkley, adding, “Organic is definitely where the growth is.”

Frieda’s exclusive Stokes grower is planting about 10 percent more organic Stokes Purple Sweet Potatoes (in pounds) each year. The company expects the growth in organic to continue.

The well-touted health benefits of purple produce in general, and Stokes Sweet Potatoes specifically, are helping to drive sales. An excellent source of vitamin C and rich in anthocyanins, Stokes Purple Sweet Potatoes also have a low glycemic index when boiled, which is an important factor for diabetics.

“Now is the perfect time to plan fall sets,” says Berkley, who recommends that grocers cut open a Stokes potato to give customers the opportunity to see the vibrant color within. Frieda’s labels also provide an image of the inside of the potato.

“Stokes is the only true purple sweet potato grown in the U.S., and it’s exclusive to Frieda’s,” adds Berkley. The season runs from September through April.

Savoring Mushrooms

Foraging for fall flavors will invariably lead health-conscious consumers to the satisfyingly meaty taste and texture of mushrooms.

“The Blend initiative is keeping mushrooms top of mind at restaurants and in supermarkets,” says Mike O’Brien, VP of sales and marketing for Monterey Mushrooms, in Watsonville, Calif. “This effort communicates how blending fresh mushrooms with ground meat — beef, pork or poultry — can enhance flavor, and substantially reduce fat, sodium and calories, in favorite recipes.”

In addition to The Blend, promoting the health benefits of mushrooms, especially vitamin D, is a key marketing initiative for Monterey Mushrooms this fall and beyond.

“Mushrooms are the only produce item with natural vitamin D, which is important for strong bones and essential to healthy immune systems,” asserts O’Brien.

What’s trending in mushrooms? “The conversion from white button mushrooms to brown mushrooms continues,” he observes. “In fact, total mushroom category dollar sales growth is being driven by brown mushrooms.”

Leading this trend are cremini mushrooms, which are actually young portabella mushrooms that are often referred to as “baby bellas.” “They look much like white button mushrooms; however, they are darker in color and have a stronger taste,” explains O’Brien. “They are very popular.”