Walnuts need a major makeover.
Usually, about 65% of the walnuts grown in California are sold to the overseas market, but a September heat wave means darker walnuts, which isn’t the preferred style for that market, said Robert Verloop, CEO of the California Walnut Commission.
Listen to the full interview here or on your favorite podcast platform.
So, the commission and its producers are shifting their focus to more domestic markets. The commission has a plan for a walnut makeover to increase sales and consumption.
Walnuts can be two things at once: fit into the health focus of the new year but also the comfort-food indulgences that consumers gravitate toward in winter, such as brownies and cookies.
“But our long-term vision, really, is to shift walnuts into more of a fresh, eating-out-of-hand snacking opportunity,” Verloop said. “We've had a phenomenal health story to tell about walnuts, but that gets kind of lost in the baking aisle.”
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The commission is developing retail promotions with cheese, yogurts, cereals and a lot of other fresh produce items. The commission’s research in the past year showed that well over 70% of the people understood that walnuts go together very well with fresh produce items because of the health benefits.
Verloop is impressed by the “thoughtful and progressive” programs conducted by some almond and pistachio sectors. “But walnuts haven't had that same level of attention. And a lot of that has to do with the industry's focus has been on international development,” he said — plus walnuts’ relegation to the baking aisle.
In 2023, there are about 4,000 walnut growers and more than 70 handlers for a crop that’s typically about 1.5 billion pounds. Normally, the primary markets are Turkey, Germany, elsewhere in Europe, the Middle East, India, Japan and Korea.
In places like Turkey and throughout Europe, walnut consumption is in the kilos per year, while in the U.S., it’s 0.7 pounds per year. “That barely scratches the surface. And especially when you consider that a lot of that is in the baking application,” he said.
Verloop wants to increase the points of distribution and improve walnut packaging.
The commission is funded by mandatory assessments of the growers and is an agency of the state of California, working with the California Department of Food and Agriculture, focusing on health research and export market development activities.
These are some walnut findings and tips than can help retailers:
- Commission research found that 76% of consumers are more likely to purchase walnuts when they are displayed alongside fresh fruits and vegetables in the produce aisle. The most obvious pairings are squash, apples and pears, but salad greens and many, many other pairings work well.
- Tap into consumers’ focus on health by displaying walnuts with their top nutritional benefits — especially omega-3 fatty acids.
- Retail registered dietitians can encourage consumers to incorporate walnuts into their meals and snacks, providing information about the broad health benefits and suggesting easy and delicious ways to eat walnuts on a regular basis.
- Look for better packaging, more flavors, special walnut butters and a walnut meat program.
- Market, promote and merchandise walnuts on boards, following the butter, vegetable and charcuterie board trend.
The California walnut industry is seeking to do more direct activities with retailers, whether through the commission, or individual companies, Verloop said.
"Our handlers that are developing some of these new products are reaching out,” Verloop said. “I think there's a latent opportunity to expand — really significantly — a high value item that doesn't need a tremendous amount education.”
Listen: Full interview with Robert Verloop on the "Tip of the Iceberg" podcast here.
