2007 FRESH-CUT PRODUCE CATEGORY OUTLOOK
Consumers Seek Private Label Brands,
Premium Blends and Grab-n-Go Items in 2007
Ready Pac Reveals Study that Paves the Way for Higher Category Sales
Irwindale , Calif. , Oct. 22, 2006 –The formula for fresh-cut category growth in 2007 will come from three primary sources: (1) retailer-specific private label brands, (2) premium packaged blends, and (3) secondary merchandising of convenience items.
Ready Pac recently conducted a comprehensive sales analysis of the fresh-cut salad category across the major top grocery chains. The results show the optimal product assortment to drive the highest category growth in packaged salads is a combination of two national brands with a store private label brand. Further, the findings reveal savvy shoppers looking for new flavor combinations are choosing upscale blends and organics more often than garden varieties at lower price points.
Two National Brands + Store Brand = Increased Packaged Salad Profits
“Two brands are what consumers consider a choice, plus the store brand private label allows the retailer to offer a point of difference that their competitors can't provide,” said Steve Dickstein, vice president of marketing for Ready Pac. “Our research indicates that sales among retailers who moved to a one-brand strategy have not kept pace with those that are offering a choice. What's more, offering more than two brands and a private label brought diminishing returns.”
Retailers who've tapped into custom gourmet blends and organics with a store brand are capitalizing on the growth trend. Dickstein said a profitable store brand doesn't mean just printing a retailer's name on the bag, “It's about creating blends that are unique, so that consumers realize they can't drive down the street to get the same item. Exclusive retailer-specific blends appeal to consumer loyalists who are already committed to your store brand.”
Fresh-Cut Produce Category Outlook
Dickstein added, “It's important for retailers to establish a strong relationship with a private label supplier that can offer unique customer-specific blended products and provide cutting-edge flavor combinations based on taste trends.”
Ready Pac is a recognized leader in the supply of store brand fresh-cut salads, and has the capability to provide all salad segments, from garden to premium blends and organics. The company has developed special blends and kits for some of the most respected national and regional chains in the country. Fresh-cut salad sales among these retailers have consistently outpaced the category.
Ready Pac‘s development team utilizes the latest culinary and consumer trend data to create some of the most innovative items in the produce section. The company has a long history of creating award-winning, best-selling blends, capturing the American Culinary ChefsBest ™ Best Taste Award for the last seven consecutive years. Additionally, Ready Pac's new Parisian Complete Salad Kit, a distinctive blend of fancy lettuces with julienne carrots, white balsamic vinaigrette dressing, frosted almonds, dried cranberries and feta cheese , has quickly become a top selling complete salad kit in club stores nationwide.
Busy Shoppers Gravitate Toward Grab-n-Go
Secondary merchandising of “grab and go” products is key in driving incremental fresh-cut sales. “When customers placed items like Ready Pac ® Bistro™ bowl salads and Cool Cuts Ô veggie and dip snacks near the front of the store or in the deli section, they saw an upsurge in incremental sales,” said Dickstein. “These items make it easy for busy working people to pop in on their lunch hour or after work and find exactly what they need when they walk in the door.”
Ready Pac's grab-n-go line of products have been a major hit with time-pressed shoppers across every retail channel. The company was first to market in 2003 with Ready Pac Bistro ready-to-eat salad bowls, which have experienced double-digit sales increases each year since their launch.
More Trend Info and Innovations in Fresh-Cut at 2006 PMA Fresh Summit
Ready Pac's Dickstein and his team will unveil the hottest new items in fresh-cut as well as provide important industry updates at the Produce Marketing Association's 2006 Fresh Summit International Convention in San Diego , California , October 20-24. Ready Pac's exhibit will be located at Booth Number 4923 . To schedule media interviews prior to or during the show, contact Pam Johnson, PJ Communications at (818) 846-5318 or pam@pjpr.com.
California-based Ready Pac is a premier producer of convenience fresh foods, including fresh-cut produce. With processing facilities throughout the U.S. , Ready Pac's award-winning salads, fresh-cut fruit and vegetables are distributed in supermarkets and restaurant chains across North America . For more information, visit www.readypac.com .
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