Ten years ago, clementine mandarins were a complicated, delicate fruit typically promoted only during the holidays. Now, they make up more than a third of the citrus category, thanks to packaging and branded products.
Branding in produce is nothing new, says Kathy Means, vice president of industry relations for the Produce Marketing Association.
Grower-shippers have had their names on cartons and business-to-business materials for years, but the consumer sphere is ripe wisth produce branding opportunities for a few reasons.
Produce companies no longer consider their offerings “just commodities,” she says.
Another reason? Packaging.
“As soon as you have a package,” Means says, “you have a canvas on which you can paint.”
The “weak” brand preference in the produce department in the past meant there was “an opportunity in citrus to reclaim a brand identity,” says Bonnie Powers, managing director of San Francisco-based Hatch Design. The Cuties and Halos brands disrupted the status quo, Powers says, by focusing on reaching moms and kids with their on-the-go branded snack positioning.
Now, mandarins make up nearly 35% of citrus sales, she says, and many consumers ask for a specific brand, which had been a relative rarity in the produce department, until branding played a role.
Household name
The Wonderful Co., Los Angeles, transformed mandarins into a household name with Wonderful Halos, says Adam Cooper, vice president of marketing. “Halos have been the No. 1 mandarin brand since we launched in 2013,” he says, “and we're continuing to grow our share.”
Similarly, Cuties brand mandarins have experienced double-digit year-on-year growth for more than 10 years, says Bob DiPiazza, president of Pasadena, Calif.-based Sun Pacific Shippers.
Valencia, Calif.-based Sunkist Growers Inc. led the charge in branding produce, says Joan Wickham, director of communications. Most recently, Sunkist formed a partnership with Stemilt Growers LLC, Wenatchee, Wash., offering Lil Snappers — juicy, kid-sized citrus fruit in colorful 3-pound pouch bags. Stemilt and Sunkist also market mixed orange/apple combination bags, including a “pink” bag with cara cara navel oranges
and Pink Lady apples.
Classic Harvest, a relatively new citrus grower based in Dinuba, Calif., has offered branded citrus and grapes from California and Florida as well as imported fruit since the company was established in 2014, says president and partner Linda Cunningham.
Classic Harvest focuses on the Eat Brighter! label for kid-oriented packs of clementines, navels, lemons, grapefruit and other items. The company sells its more adult-oriented cara cara oranges under the Oh La La! label. The firm unveiled its new Organic Harvest brand in September and plans to launch its California Classics heirloom navel label in December, Cunningham says.
Branding doesn't come cheap.
This year, Wonderful will allot a record $30 million for a campaign that includes new television ads, digital, print, billboards, public relations, in-store, point-of-sale and more, Cooper says. It also will include six free-standing inserts during the California season from November to May. The new campaign celebrating kids making healthy choices was scheduled to launch with new TV spots on Oct. 31, he says.
Indeed, creating consumer awareness in a brand requires heavy investment in marketing and advertising, DiPiazza says. Typically, branded packaging is more upscale than conventional packs, he says, and that also adds to the cost.
“Based on the success of Cuties and our other branded products — Mighties kiwifruit and Vintage Sweet heirloom oranges — we think it's worth it,” he says.
“Investing in the way products go to market, produce or otherwise, is critical in today's retail environment, where time-starved consumers are in a hurry and faced with many choices,” Wickham says.
Marketing boost
Retailers find it easier to market branded citrus versus unbranded product, Cooper says. “Our in-store displays are instrumental in driving purchase at the retail level. (They) include high-graphic POS, freshness bins, balloons, tuck cards and more that are timed to our key consumption occasions.”
These in-store displays can be considered unique signage themselves because they serve as a billboard for Wonderful brand products within the produce department, he says.
Most retailers says they want to deal with a brand their customers trust, DiPiazza says.
“For merchandising purposes, branded products often offer display materials and POS kits to help drive brand awareness and sales,” he says.
How retailers manage branded produce differs depending on their approach to the produce section, Wickham says. “For retailers that embrace branded products, it in some cases may be more turnkey to create eye-catching displays with branded items,” she says.
Retailers themselves play an important role in helping a supplier create a successful brand, Means says. “The retailer is the buying agent for the consumer,” she says. “It's their job to buy what consumers want.”
That means retailers must understand their customers, she says. Price Look-Up numbers are one way to track what shoppers are looking for. No matter how you look at it, it seems suppliers, retailers and consumers today are helping to take produce branding to new levels.
“Any way that produce items can market in a way that competes with snacks that aren't as healthy is a win for the industry,” Wickham says.