Value: Packaged products cost more than bulk produce does, but often they add value, and with the economy forcing such inflated prices, that's all we can offer.
When shoppers are trying to buy less or save money other ways, price dominates their purchase decisions, but not as much as the industry would think, according to market research firm 210 Analytics data from April.
Shoppers said, when buying fresh produce, this is what mattered most: 59% price, 53% quality, 51% nutrition and 42% versatility. With price being less flexible, retailers can focus more on quality to drive sales.
“You see some retailers really highlighting that idea of quality, simply calling out in-store that ‘we work with the best producers. We really stand behind that,'” said Anne-Marie Roerink, founder and principal of 210 Analytics, at the June 9-10 Retail Conference hosted by International Fresh Produce Association in Schaumburg, Ill. “Make sure that message is out there, in your stores and for your brands, as well.”
With the consumer's tightened budget, produce brand marketers and retailer professionals need to hone their communication skills to convince the shopper to buy, say, stone fruit and cherries, in addition to the more staple items such as potatoes, said Meghan Diaz, East Coast sourcing senior category manager at Sprouts Farmers Market, Phoenix. “It's important for us to really amp it up, to storytell, to bring things to life in the department and omnichannels, and also really redefine how we're presenting it to the customer,” she said.
Tell that story on the packaging. Make that higher-priced purchase seem worth it.
Besides providing real estate for marketing messaging — nutrition, recipe ideas, sustainability efforts, certifications and farmer stories — packaging can reduce shrink by better protecting the food. Plus, it's often a more convenient product for consumers to pick up quickly.
Time is quite a hot commodity, too.
While some people are still working from home more than before, community events, evening sports and travel have all picked up significantly.
“So, convenience has become extremely important yet again,” Roerink said.
Optimized transactions and shopper baskets show that entertaining, convenience and on-the-go produce products — such as melons, salad kits, mixed fruit and party trays — are selling the most, according to IRI Integrated Fresh data from the last 52 weeks ending March 27.
Of course, suppliers can always decrease the volume or amount within a package while maintaining the same price, to avoid losing consumers. But industry leaders discussed being transparent about those changes, to avoid the perception that they're being misled. Point-of-sale materials can give a quick explanation saying the change was made with their budgets in mind.
Also, a Datassential report showed 75% of consumers were looking for new innovation in products in 2022, said Joe Watson, the association's vice president of retail, foodservice and wholesale.
The Packer and PMG's Sustainability Produce Summit awarded companies that showed innovations in sustainability, including in packaging:
Packaging Award
Los Angeles-based 4Earth Farms won for communicating tangible results in the packaging. “Our new, fully compostable netted bag replaces a nonrecyclable polypropylene plastic bag,” the contest entry said. “This plant-based fiber material is a new innovation, developed from natural beechwood fiber. This new pack will eliminate over 15,000 pounds of nonrecyclable plastic.”
Business-to-Consumer Messaging Award
Wenatchee, Wash.-based CMI Orchards' simple, no-stress messaging — “Relax!” — to consumers was a favorite. The consumer-messaging strategy involved exploring, innovating, communicating and educating. The communicating component focused on telling consumers about “the key sustainability benefits of the package in simplistic, easy-to-action terms,” the entry said, and the educating component was about “giving consumers a pathway to access more information from our website.”
Social Media
Brooklyn, N.Y.-based Gotham Greens won because of its partnership with the iconic Grateful Dead for a limited-edition packaging and marketing campaign that “celebrates our shared commitment to sustainability, community and plant-based eating,” the entry said. For every package of Grateful Greens sold, Gotham Greens and the Grateful Dead will plant trees in partnership with Forest Nation. The posts and photos generated thousands of likes and hundreds of comments across platforms.