Walmart braces for a ‘volatile' year in produce

ORLANDO, Fla. — When asked to describe 2025 in one word, Laura Himes, vice president of fresh for Walmart Sourcing said “volatile.” Josh Waters, senior vice president of category management for produce and commodity grocery for US Foods echoed Himes’ sentiment, summing up 2025 as “uncertain.” Himes and Waters made the remarks during a panel discussion at the Southeast Produce Council's Southern Exposure conference.

Jim Thomas, vice president of supply chain and sustainability at Sweetgreen, said “rollercoaster.”

Moderator Rick Stein, vice president of fresh foods for FMI, The Food Industry Association, asked panelists what they thought is one of the biggest challenges for 2025. Waters said “staying on top of everything,” and Thomas said “control what you can control.”

It’s been a tumultuous start to 2025, with President Donald Trump threatening 25% tariffs to Mexico and Canada, which would have a big impact on the produce supply chain this year. As of now, Canadian and Mexican imports have an exemption from tariffs through April 2.

During the panel, FMI and 210 Analytics presented "The Power of Produce 2025" report.

“If you look at the actual absolute price, across all fruit and beverage [with] an average of $3.13 in 2019, that is now $4.22 in 2024,” said Anne-Marie Roerink, president of 210 Analytics. “That led to a list of changes among consumer behavior and that affected foodservice and retail.”

The report showed that 83% of consumers surveyed planned to make one or more changes to grocery buying patterns and 44% of consumers said they planned to eat out less due to the increased cost of food.

“Even though fresh produce did not have the inflation seen in the total store or seen in other areas of produce across the store, we continue to see consumers believing that fresh is expensive,” Roerick said. “I don’t know if we’ll ever lose that reputation. How can we make sure that people understand that it is not all about price; it is about value?”

When Stein asked panelists what the biggest opportunity for 2025 was, Himes said “produce in the center of the plate.”

And when Stein asked the best thing suppliers can do to help in 2025, Waters said to stay on top of trends and continue to think about the consumer.

“Continue to think about what does the customer need,” he said. “Make sure that we're there meeting them where they can stand.”