Supermarket Perimeter - August 2019 - 54

Produce: Fresh-cut

Fresh-cut trends
As a category, value-added vegetables are seeing strong growth, with a
6.6% increase in dollar sales versus last year (IRI MULO, 52 weeks ending
10/7/18), says Dowse of Mann Packing.
"Millennial consumers in particular are looking to minimize time
spent preparing food while also making healthful choices," she says.
"We have found that they are among the core consumers of value-added produce items, according to 'FMI - Power of Produce 2019.'"
Doug Burris, executive vice president of sales and marketing for The
Fresh Food Group, The Woodlands, Texas, says demand is high for
products that add to the convenience value proposition.
"Consequently, fresh cut/value-added produce is moving farther
down the processing continuum," he says. "Our goal is to get product
as close to the ﬁnal state as possible by making it as convenient as possible. This requires continued
investment in R&D, cooking
technologies, and packaging
design."
One ongoing trend affecting fresh-cut produce is
"ﬂexitarianism," the growing
semi-vegetarian trend that
replaces animal-based protein
with varying degrees of fruits
and vegetables, says Goldﬁeld
of Dole.
"A move toward a partial
plant-based diet is increasingly
popular year-round, and often
peaks in August and the fall
when families return to more of
a routine," he says.
To leverage ﬂexitarianism,
Dole works with retailers to
implement innovative marketing and in-store programs to drive incremental produce sales, including fresh-cut produce and packaged salad,
Goldﬁeld says.
Dole's new Bountiful kits work well as a center-of-the-plate salad,
he adds, as each includes a
fresh pouch of vegetables in
addition to salad greens and
a complementary dressing.
However, while there's
a big movement toward
plant-based diets, Valle of
Bonduelle Fresh Americas
says more than 50% of
U.S. consumers say a meal
isn't complete without
meat, according to a 2018
Mintel study.
"In response to this, we've
always looked to balance
our offerings," she says.
54 - AUGUST 2019

"In fact, our new Heat and Eat Harvest Bowls, introduced under the
Bonduelle brand, are a mix of fresh vegetables, meats, nutritional grains
and ﬂavorful sauces.
"This complete meal solution satisﬁes the consumer's need for
quicker, easier and healthier meal that includes both vegetables and
proteins."

Value-added promotions
Fresh-cut produce pairs well with any type of dip that retailers can
cross-promote with, Christou of Del Monte says, including hummus,
salad dressings, yogurts and cottage cheese.
"We also recommend placing fresh-cut vegetables near the meat
department to encourage consumers to incorporate fresh produce in
their meals," he says. "For example, our fresh-cut kabob kits or fajita kits
help make preparing and cooking meals easier for consumers."
Valle of Bonduelle Fresh Americas says the company typically
approach marketing across a consumer's path to purchase, which
includes awareness building campaigns (focusing on digital and social
media - Facebook and Instagram) all the way to in-store with shopper
programs and coupons.
"At the store level, we know it is critical to disrupt consumers to get
them to purchase our great tasting salads," she says. "We rely on retailers for in-store activations, and work with them on pricing promotions
- either intro pricing or buying multiple items at a discounted price.
The store activations that work for our category are in-line POS, blades
and couponing."
Valle recommends cross-promotions with water or other healthy
beverages as interesting options to increase sales.
For the remainder of the year, Dole will be combining a series of original entree, side dish, salad, snack, smoothie and dessert recipes celebrating Disney's "The Lion King" and "Frozen 2" including for holidays,
families with kids, and vegan and gluten-free consumers, says Goldﬁeld.

Fresh displays
Placing fresh-cut fruit in visible, well-lit coolers and maintaining proper
temperatures from delivery to shelf is essential to increase sales,
says Christou.
"Consumers view fresh-cut items as a timesaving solution to their
fast-paced lifestyles," he says. "The ability to enjoy Del Monte fresh
fruits without the hassle of cutting and cleaning motivates fresh-cut
purchases."
Bonduelle Fresh Americas has implemented a racking model to merchandise its products upright on pushers, Valle says, allowing for great
visibility of products to shop the range of ﬂavors offered.
Finally, Burris of The Fresh Food Group says smart retailers are investing heavily in perimeter departments, as fresh categories are merging
and sometimes undeﬁned.
"Fresh-cut is expanding beyond produce and into other departments,
such as deli," he says. "Moreover, consumer tastes and trends change
rapidly. As a result, fresh-cut partners must be agile to quickly adapt to
an ever-changing ecosystem.
"Fresh-cut products and packaging must also be geared toward
omnichannel shopping with the rise of e-commerce, delivery and
online grocery pickup."

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