Want to squeeze more sales out of your mushroom category? Try something exotic.
For the 52-week period ending May 14, sales volume was up 7.3% for the exotic – or specialty – mushroom category, and dollar sales were up 6.8%, according to data gathered for the Mushroom Council by Chatsworth, Calif.-based Fusion Marketing.
“Adding specialty mushrooms to your promotional mix is a great way to increase sales while building awareness with shoppers of the many tasty varieties that are available,” says Steven Muro, president of Fusion Marketing.
Specialty mushrooms fit in with the modern consumer’s healthy lifestyle, says Fred Recchiuti, general manager of Basciani Foods, Avondale, Pa.
“And they’re just delicious,” he adds. “Each specialty mushroom has its own flavor profile and texture.”
Specialty varieties account for no more than 5% of mushroom sales at Basciani Foods, but the specialty segment is growing faster than the category as a whole, Recchiuti says.
“Every year we sell more.”
Going mainstream
Specialty mushrooms no longer are limited to specialty, natural and organic stores, says Justin Reyes, head of sales and marketing for Gourmet Mushrooms Inc., Sebastopol, Calif.
That coincides with the general “diversification of categories” in the produce department — like the burgeoning number of kale, citrus and potato varieties.
Mushrooms are the “the next frontier for the produce departments,” he says.
Reyes attributes some of the rapid, double-digit year-over-year sales growth compared to button mushrooms to consumers discovering the health benefits of mushrooms from scientific research and blog posts.
Good sellers
Not long ago, some supermarkets seemed to merchandise specialty mushrooms just to have them on the shelf, says Kevin Donovan, national sales manager for Phillips Mushroom Farms, Kennett Square, Pa.
Today, thanks to millennials, the proliferation of recipe ideas and nutrition information, exotic mushrooms actually are selling, he says.
“This is one of those times when mushrooms are in a good spot for those looking to taste something different,” Donovan says.
Shiitake, maitake and royal trumpet seem to be the varieties attracting the most interest at Phillips Mushroom Farms, he says. Oyster mushroom and some other exotics also are starting to catch on.
Retailers who offer specialty mushrooms typically feature about three kinds, he says, and merchandise them loose or in overwrapped packages.
Manage the category
Category management best practices can help retailers optimize shelf space to maximize sales and profits of the mushroom category, says Mike O’Brien, vice president of sales and marketing for Monterey Mushrooms Inc., Watsonville, Calif.
Make use of scan data that tracks purchases and shrink and match your planograms to your store demographics, he suggests.
Monterey Mushrooms partners with its retail customers in “collaborative category management,” he says.
“We offer a dedicated in-house team to work with our retail customers to help (with) customizable planograms and collectively develop programs to increase transaction count and market basket (size),” he says.
Spread the word
The more information you offer about mushrooms — whether online, in recipes or through in-store demos — the more mushrooms you’re likely to sell, Donovan says.
Recchiuti says featuring mushrooms in the meat department, especially with ground beef to promote the Mushroom Council’s “blendability” concept, is a good idea but can be “problematic,” since there are two different profit centers and the meat department may be reluctant to relinquish space.
Handle with care
Care and handling should be top of mind when dealing with mushrooms, since mushrooms are one of the most perishable categories in the produce department, O’Brien says.
“To minimize shrink and maximize sales, it’s important to know your consumer and offer the variety that matches the store demographics,” he says.
Display various pack styles side-by-side to give shoppers a wide selection, rework mushroom packs each morning and spot check throughout the day.
Be aware that the shelf life of specialty mushrooms can vary, Donovan says.
For example, he says pom pom mushrooms (also called lion’s mane) and oyster mushrooms have a shorter shelf life than maitakes, shiitakes or royal trumpets.