Options galore — How retailers decide which tomato SKUs to carry

Options galore — How retailers decide which tomato SKUs to carry

by Ashley Nickle, Nov 12, 2019

Flavor plays a major role for many retailers as they decide which tomato products to carry.

“We certainly have to consider all of the customers' needs, so it is essential to carry snacking tomatoes, cooking tomatoes, tomatoes of various sizes, etc.,” said Michael Schutt, produce merchant for West Sacramento, Calif.-based Raley's. “But right after that is flavor.

“It's my feeling that the customer may or may not remember the price they paid or if the product was on sale, but they will remember their experience, and that experience begins with flavor,” Schutt said. “After that, I have to consider if I can sell it, and then the other components of cost structure, like availability, packaging, private label ability, etc.”

Scott Bennett, produce sales and merchandising manager for Itasca, Ill.-based Jewel-Osco, said the company carries 18 snacking tomato SKUs and that the category has seen major growth in recent years.

packaged tomatoes

“Snacking tomatoes have actually taken over the movement on bulk tomatoes,” Bennett said. “This is the first year – this year, 2019 – that we're selling more snacking tonnage than bulk tomatoes.”

Price Mabry, produce sales manager for the Gulf Coast division of Associated Wholesale Grocers, said his evaluation of items begins with availability from the vendor.

“We need to have constant access to the product – at least three times a week – to maintain our quality standards in our facility, whether that be the vendor bring it to us or we pick it up,” Mabry said. “Next is flavor profile. Our customers want a sweet tomato that they can feed to their kids for an afternoon snack.”

Price point is also an important variable.

“We can have one, maybe two, $5.99 retails out there, but a key point for turns in the department is that $3.99 retail,” Mabry said. “We also look at what kind of vendor support we can get as far as (point-of-sale material), sample cases for demos, in-store merchandising racks and tables, and online support such as geo-targeting areas and digital couponing.”

Patrick Mills, director of produce and floral for Niwot, Colo.-based Lucky's Market, said he considers taste tests, value to the consumer, and packaging that is more consumer- and environment-friendly.

Space, as with any category, is another important element.

“I can always pare down another variety to make space, but I don't want to compromise sales, especially on a popular item,” said Kevin Byers, produce merchandiser for Seattle-based PCC Community Markets.

“I try to bring in as many as possible and see what the customer buys," Byers said. "They tell you pretty quick with their purchases which ones to keep and which ones you can stop carrying.”

Louis Scagnelli, director of produce and floral for Alpha 1 Marketing, an affiliate of White Plains, N.Y.-based Krasdale Foods, said he aims for stores to carry the brands and varieties shoppers want.

tomatoes

“We look at each SKU as it becomes available,” Scagnelli said. “Good variety definitely helps grow the category, but there is a limit to how many SKUs a store can handle.  The mixed color varieties with the best flavor and highest sugar content are usually our best sellers.”

Vic Savanello, regional vice president of produce and floral for Grand Rapids, Mich.-based SpartanNash, also acknowledged that stores can only stock so many options.

“Having so many excellent choices is great for our store guests and independent retail customers, but it makes it a bit more challenging for our procurement team,” Savanello said. “For this reason, we build partnerships and relationships with companies that offer products with a great flavor, unique packaging and eye-catching presentation.

tomatoes

“In the end, it all comes down to taste,” Savanello said. “If a tomato wows you with flavor, you'll be back.”

Jeff Cady, director of produce and floral for Williamsville, N.Y.-based Tops Friendly Markets, also described supplier partnerships as playing a key role.

“As a rule, we have one or two partners we deal with and we lean toward their tomato varieties,” Cady said. “We will carry the best-eating, most unique variety that they offer … If we carried every tomato variety from every vendor, we would have to open a specialty tomato store!”

 









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