Trends in the Marketing of Fresh Produce and Fresh-cut...

1

Trends in the Marketing of Fresh Produce and Fresh-cut Products

DR. ROBERTA COOKDept. of Ag and Resource Economics

U i it f C lif i D iUniversity of California, DavisSeptember 13, 2011

F d

Dollar Sales Quantity Sold

2010 USA Food Sales: $1,241.0 Billion Retail Sales-Equivalent, and Channel Shares, Quantity and Value

$594 269

Food

Retail72.8%

Foodservice47.9%Retail

52.1%

$594.269 Billion

service27.2%

Sources: USDA for dollar sales and dollar shares; Technomic, Inc. for share of quantity sold, 2006.

$646.766 Billion

2

3.6 4.2 4 4 4 4 4 4 4

at homeaway from home

U.S. Food Expenditures as a Share of Disposable

Personal Income, 1970-2010

9.49.4

13.913.913.213.2

11.611.6

%

10.3 9 7.57.47.37.27.27.37.46. 86.86.76.56.46.56.26.25.95.95.95.95. 5. 5. 5. 5. 5. 5.

4.14.24.24.14.14.14.1 4.04.14.24.14.14.1 4.04.0 3.93.93.93.94.04.14.04.03.93.93.9

8 8 7 5 4 5 2 2 9 9 9 9 7 8 6 6 6 5 5

70 80 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

Source: ERS/USDA Ingredients to Prepare vs. Meals to Eat

Top Food Industry Trends• Shoppers have migrated towards retailers with strong value for

money credentials; on-going channel-blurring trend• Many retailers have lowered prices to close the gap with

discount competitorsdiscount competitors• Retail strategies include new pricing initiatives, format

development, e.g., smaller, price impact, and fresh food formats by non-traditional grocery retailers (Walgreen’s, Target P-Fresh)

• Cost-cutting to maintain margins, seeking efficiency gains• Lowering inventory levels, SKU RAT, painful lessons already• Retail corporate restructuring to eliminate duplication and

generate cost savings• Store brand/private label growth

3

• Mutual dependency between buyers and sellers – get away from adversarial relationshipsSt li l h i i ti l di ti

Supply Chain Imperatives

• Streamline supply chain, improve vertical coordination -involves identifying mutually beneficial strategies and tactics, e.g., promotions, packaging, logistics

• Identify which activities add more value than cost• Eliminate non-value-adding activities

D i t l ti l i ffi i i d t • Decrease internal operational inefficiencies – due to lack of ERPs and underutilization of BI, they are often hidden or not considered important enough to attract attention in more favorable markets – but with margin squeeze, they count

Recession Impacts on Fresh Produce and Fresh-cut Produce Produce and Fresh cut Produce

Sales

4

7.2%Dollars Quantity Ave. Retail Price

US Supermarket* Fresh Produce Sales: Quantity, Dollars and Average Retail Price, % Change 2008 vs 2007

3.3%

-3.6%

Source: Perishables Group *Excludes club stores and supercenters

2.7%2 0%

Total Produce Other ProduceFruitsVegetables

US Supermarket Sales of Fresh Produce, 2009 vs 2008, excludes club stores and supercenters

-2.5% -2.4%2 9%

-0.5%-0.9%

1.6%2.0%

0.4%

-2.9%

-3.9%

-5.5%

-4.4%

Dollar Growth Volume Growth Retail Price Change %PY

Dollar Share 46.2% 45.2% 8.6%

Source: The Perishables Group

5

% Change Sales % Change Quantity

US Supermarket* Fresh-Cut Produce: Dollar Sales and Quantity, % Change from 2009* to 2008

P k d l d+0.03

‐1.2

‐4.1 ‐3.8

Fresh-Cut FruitPackaged Salads

Fresh-Cut Vegetables

‐13.8 ‐14.3 Source: Perishables Group FreshFacts® powered by Nielsen; *52 weeks ending July 4, 2009.

*Excludes club stores and supercenters

13.8

US Supermarket* Fresh-Cut Produce: Dollar Sales and Quantity,% Change from Q1 2009 to Q1 2010

Fresh-Cut Fruit


10.8

4.8Packaged Salads

Fresh-Cut Vegetables

0.1

2.4

.8

% Change Sales % Change QuantitySource: FreshFacts® on Retail, Q1 2010, United Fresh Foundation, July 2010.

6

8 4

11.6

US Supermarket* Fresh-Cut Produce: Dollar Sales and Quantity,% Change from Q4 2009 to Q4 2010


8.4

4.11.6

% Change Sales

Packaged Salads

-1.1-2.8

% Change QuantityValue-added

FruitValue-added Vegetables

Source: FreshFacts® on Retail, Q4 2010, Perishables Group and United Fresh Foundation.

g

Weekly $ sales/store Weekly quantity sold/store

US Supermarket* Fresh Produce Dept. Performance, % Change from Q2 2010 to Q2 2011*Excludes club stores, supercenters and other alternative formats.

1.4 1.01.5

3.2 3.1All Produce Fruit Vegetables Other

-1.0 -1.2 -1.3Source: FreshFacts® on Retail, Q2 2011, Perishables Group/United Fresh Foundation.

7

7.0

% Change Sales

% Change Quantity

US Supermarket* Fresh-Cut Produce: Dollar Sales and Quantity, % Change Q2 2011 vs Q2 2010*Excludes club stores and supercenters

3.0

1.7

5.65.0

% Change Quantitysupercenters

0.1

Value-added Fruit

Packaged Salads Value-added Vegetables

Source: FreshFacts® on Retail, Q2 2011, Perishables Group/United Fresh Foundation.

US Supermarket Value-added Fruit Category Sales and Pricing, Q2 2011 vs Q2 2010

Weekly $ Weekly Vol. AverageS l / St St R t il P i

% Change vs. Q2 2010

Value-added Fruit 3.0% 5.0% -1.9%

Fresh Cut Fruit 3.4% 0.7% 2.7%

Overwrap 4.8% 7.2% -2.2%

J & C 2 4% 9 4% 10 8%

Sales / Store per Store Retail Price


Jars & Cups -2.4% 9.4% -10.8%

8

US Supermarket Value-added Vegetables Category Sales and Pricing, Q2 2011 vs Q2 2010

Weekly $ Weekly Vol. AverageS l / St St R t il P i

% Change vs. Q2 2010

Value-added Veg. 5.6% 7.0% -1.3%

Side Dish 10.2% 10.8% -0.5%

Trays -2.1% 0.2% -2.4%

M l P 2 7% 0 8% 1 9%

Sales / Store per Store Retail Price


Meal Prep 2.7% 0.8% 1.9%

Snacking 4.4% 6.4% -1.9%

Valued-added Fruits and Vegetables Show Consistent Growth in Dollars and Quantity in 2010/11*

14.9% 12

Dollars % Chg vs YAGOQuantity % Chg vs YAGO

7.0%

6.6%

%

0.3%

6.4%

8.7%

0.5%

7.9% 5.5%

9.3%

6.0%

11.2%

2.6%

5.4%

5.6%

0.7%

5.6%

7.6%

T

Sources: Perishables Group *52 weeks ending July 16, 2011

Value-added fruit

Fresh-cut fruit

Overwrap

Jars and cups

Value-added vegs.

Side dish

Trays

Meal prep

Snacking

9

Change (%) in Unique Valued-added Produce Items Sold in 2010/11*

8 0%

11.8%

8.0%

4.8%6.9%

2.3%1.1% 0.9%

5.5%3.8%

Source: Perishables Group *52 weeks ending July 16, 2011

Value-added fruit

Fresh-cut fruit

Overwrap

Jars and cups

Value-added vegs.

Side dish

Trays

Meal prep

Snacking

Fresh-cut Trends

Industry Size

10

Estimated Fresh-Cut Produce Sales in US Supermarkets, $4.4 Billion and Shares by

Type, 2011, Preliminary (excludes supercenters and club stores and represents about 62% of supermarket sales)

Fruit

50.6%31.9%

Packaged salads

Fruit

17.5%

Packaged salads

Vegetables

Sources: Estimated by Roberta Cook from various sources.

•Estimated projected national retail fresh-cut produce sales of $9.4 Billion, including all retail channels,

Estimated US Fresh-cut Industry Size, All Channels, 2011, Preliminary

grepresenting about 15% of total produce sales

•Foodservice sales are unknown due to no publicly or privately reported data sources

•Conventional industry wisdom is that foodservice sales t b t 60% f t t l f h t l d represent about 60% of total fresh-cut sales, and as

such foodservice sales may be $14 billion

•Total US fresh-cut sales through both foodservice and retail channels estimated to surpass $23.4 billion Source: Roberta Cook, UC Davis

11

Fresh-cut Trends

Fresh-cut Lettuce/Bagged Salads

3035

U.S. Per Capita Utilization/Consumption of Lettuce, by Type, 1985-2010F

All - 28.2

Head Lettuce

Romaine

1015202530

. Pe

r Ca

pita

17.17.14.0Leaf

05

10

Lbs

Source: Gary Lucier, USDA/ERS, September 2010 F=Forecast

12

Leading US Fresh Market Vegetable States in 2010: Geographic concentration of production (due to climate) limits local sourcing potential, yet it is growing in the summer/fall

Area Harvested Production Value

State% of Total State

% of Total State

% of Total

CA 43 CA 49 CA 48FL 10 FL 8 FL 14AZ 7 AZ 7 AZ 8

Source: Vegetables 2010 Summary, NASS/USDA, January 2011

AZ 7 AZ 7 AZ 8GA 6 GA 5 WA 5NY 4 WA 4 GA 4

Monterey County Head Lettuce Shipments 1990 vs 2010

Million Cartons* Percent Share

P d t F 1990 2010 1990 2010

Bulk to Process 6.9 14.68 15% 33%

Wrapped 14.2 22.72 30% 52%

k d 6 1 6 4 % 1 %

Product Form 1990 2010 1990 2010

Source: Monterey County Ag Commissioner, various annual

reports

Naked 26.1 6.43 55% 15%

TOTAL 47.2 43.83 100% 100%

* 50 lb carton-equivalent units, may not sum to 100 due to rounding

13

Crop Acreage Cartons,

thousands Value,

thousands Carton Share

Monterey County Leaf Lettuce Production, by Type, 2010

Butter Leaf 1,489 1,816 16,744 2.3%Endive 408 429 3,810 0.5%Escarole 339 353 3,135 0.4%Green Leaf 8,294 8,568 80,196 11.1%Red Leaf 2,313 2,396 20,654 2.9%

%

Source: Monterey County Crop Report 2010, Ag Commissioner.

Romaine 36,294 38,254 361,500 49.9%Leaf, bulk N/A 51,816 238,580 32.9%

Total 95,436 87,345 $724,619 100%

$3,000

US Supermarket* Bagged Salad Key Segments: $ Sales and Annual Growth Rates %, 2011,* Excludes club stores and supercenters

1.6 Number above bar

$Millions

$500

$1,000

$1,500

$2,000

$2,500 represents % change vs. prior yr.

11.8

0.6

-2.9 -4 4 -7 9 7 0 3 8$-

$

Source: Nielsen *52 weeks ending July 16, 2011

-4.4 -7.9 7.0 3.8 18.6

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Index of US Packaged Salad Sales ($) by Spectra Lifestyle/Behavior Stage, All Channels

Start-up Families 83 104 82 45 47 50 73 6.3%HHs with young children only <6

Small Scale Families 76 92 69 43 43 38 64 5.2%

Very High 150+ High 120-149 LIFESTYLEAffluent Modest

Cosmopolitan Suburban Comfortable Struggling Working Plain RuralBehavior / Stage Centers Spreads Country Urban Cores Towns Living Total % Total $

Small HHs with older children 6+

Younger Bustling Families 54 72 57 31 37 38 51 3.8%Large HHs with children (6+), HOH <40

Older Bustling Families 124 213 161 61 74 84 144 16.3%Larger HHs with children (6+), HOH 40+

Young Transitionals 87 76 79 58 51 56 67 7.3%Any size HHs, no children, <35

Independent Singles 118 95 105 44 44 51 78 9.5%1 person HHs, no children, 35-64

Senior Singles 85 82 85 51 58 48 68 6.0%1 person HHs, no children, 65+

Sources: Spectra BehaviorScape: Total Dollars / Spectra 07C/PG-Kids-Revision3 52wks (Total Dollars)

p

Established Couples 177 210 198 96 113 100 163 18.6%2+ person HHs, no children, 35-54

Empty Nest Couples 141 172 167 79 85 80 135 13.7%2+ person HHs, no children, 55-64

Senior Couples 117 154 158 65 90 89 121 13.2%2+ person HHs, no children, 65+

Total 111 141 126 56 64 65 100

Percent Total $ 16.5% 33.4% 23.2% 5.8% 12.4% 8.6%

% Share Share Pt. Change

US Supermarket Bagged Salad Category Market Shares by Key Firm (% total $ sales) and Point Change in Market Share

2011* vs 2010

Fresh Express 36.5 -4.3

Private Label 25.4 3.3Dole 21.6 -0.5

g

Earthbound Farm 5.2 0.1Ready Pac 4.7 0.4Organic Girl 1.4 0.6


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Fresh-cut Trends

Value-added Fruit

6

8

U.S. Per Capita Consumption of Selected Fresh Fruit 1985-2009, and 2010 estimates for berries

(all have positive health messages*)

Pounds per capita

0

2

4

6

1985198

6198

7198

8198

9199

0199

1199

2199

3199

4199

5199

6199

7199

8199

9200

0200

1200

2200

3200

4200

5200

6200

7200

8200

9201

0

Blueberries Strawberries Kiwifruit Avocados

*But kiwis slashed generic promotion in the late 90’s and were unable tosustain growth and capitalize on a positive health message.

Source: Fruit and Tree Nuts Yearbook, ERS/USDA, 11-1-10

16

68

U.S. Per Capita Consumption/Utilization of Selected Fresh Fruit 1985-2009

Pounds per capita

0246

1985198

6198

7198

8198

9199

0199

1199

2199

3199

4199

5199

6199

7199

8199

9200

0200

1200

2200

3200

4200

5200

6200

7200

8200

9

Mango Papaya PearPineapple Peach/Nect.

Source: Fruit and Tree Nuts Yearbook, ERS/USDA, 11-1-10

30

40

U.S. Per Capita Consumption/Utilization of Selected Fresh Fruit 1985-2009

Pounds per capita

0

10

20

30

5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9198

5198

6198

7198

8198

9199

0199

1199

2199

3199

4199

5199

6199

7199

8199

9200

0200

1200

2200

3200

4200

5200

6200

7200

8200

9

Melon Orange Grape Banana AppleSource: Fruit and Tree Nuts Yearbook, ERS/USDA, 11-1-10

17

US Supermarket Fresh-cut Fruit Category Shares by Key Item in Dollars and Quantity 2011,* $368.5 million total sales, unprojected

Item Dollar Share % Unit Share %Mixed Fruit 36.7 23.3Apples 19.9 30.8Pineapple 15.4 17.7Watermelon 12.9 13.0Cantaloupe 4.9 5.9Mix d M l 4 4 3 7Mixed Melons 4.4 3.7Mangos 3.2 3.1Berries 1.1 0.9All Other 1.5 1.6


Income and price matter: apple example

• The 2008 Fresh Trends illustrates that 94 percent of households with an income of $100,000 or more are likely to

l f h h l h l h buy apples, versus 76 percent of households with less than $25,000.

• Apples remain the 2nd most purchased fruit in the USA, 2008, so it is logical that fresh-cut apples hold market potential.

• Apple dippers are one of the fresh-cut fruit products that Apple dippers are one of the fresh-cut fruit products that can help mom’s encourage healthy eating, both purchased at retail for in-home consumption, and via purchase in fast food restaurants.

• Quantity sold increased by 13% in 2010.

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Fresh-cut Trends

Value-added Vegetables

U.S. Per Capita Consumption of Select Fresh Vegetables, 1985-2010P

Pounds per capita

5

10

15

0

Carrots Bell pepper Broccoli Chile pepper Cucumber

P=PreliminarySource: USDA/ERS, Vegetables and Melons Situation and Outlook Yearbook, May 2011

19

25

US Per Capita Utilization/Consumptionof Fresh Tomatoes (1985-2010P)

Pounds per capita

5

10

15

20

25

0

5

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

Source: USDA/ERS, Vegetables and Melons Situation and Outlook Yearbook, May 2011P=Preliminary

Fresh Tomato Sales in U.S. Supermarkets: Share of Total Tomato Category Sales by Tomato Type in Quantity and Value, 2010 vs. 2005 vs. 1999

Percent Share of Value Percent Share of QuantityTypeType 2010 2005 1999 2010 2005 1999

Greenhouse: 43 43 42 39 41 31

Round/beef 12 14 21 11 14 18

TOV/Cluster 31 29 21 28 27 13

Round field 16 21 36 18 23 43

SourcesSources:: CTC,CTC, IRI,IRI, andand TheThe PerishablesPerishables GroupGroup **MayMay notnot sumsum toto 100100 duedue toto roundingrounding andandretailerretailer--assignedassigned PLUPLU codescodes..

Roma 16 13 16 26 19 23

Snacking 26 23 6 18 17 3

20

US Fresh-cut Vegetable Category Shares by Key Item (% of total supermarket fresh-cut veg $ sales) and Growth Rate, 2011*

Item Share (%) $ Sales Chg YAG (%)Carrots** 49 6% 1%Carrots** 49.6% .1%Mixed Vegetables 20.0% 2.5%Broccoli 3.7% 3.8%Green Beans 6.6% 29.2%Greens 3.3% 12.0%

Source: Nielsen *52 weeks ending July 16, 2011**32 oz packages or less only

Snap / Snow Peas 2.7% 6.9%Onions 2.0% 14.2%All Others 12.1% NA

U.S. Supermarket Fresh-Cut Vegetable Shares, Quantity and Dollar Sales, by Key Product Category

2009*Snacking

8% Snacking16%

39%23% Carrots

Side Dish

Meal PrepMeal Prep%

16%Carrots32%

Side Dish25%

Quantity Dollars

p29%

Source: Nielsen, *52 weeks ending July 4, 2009.

30%

Snacking quantity sold down 17% vs. YAGO.

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Branded vs. Private LabelBranded vs. Private Label

Private Label Share of CPG Spending in U.S. Grocery Channels, 1989-2010

Dollar Share Unit Share1989 11.6 15.31993 13.9 18.21995 14.9 19.41997 15.7 20.12003 16.1 20.82004 16.2 20.62005 16.1 20.82006 15 9 21 3

Source: VariousPrivate Label Magazines

2006 15.9 21.32007 16.2 21.52008 16.9 21.62009 17.6 22.82010 19.1 23.5

22

Private Label Sales in US Supermarkets, 2010:Top Private Label Categories by Dollar Volume:

Fresh Produce Becoming Important$6.6

$4 1Milk

B d & B k d G d $4.1$3.9

$3.1

$2.2$2.1

Bread & Baked Goods

Cheese

Fresh Produce

Paper Products

Fresh EggsBillion

$1.7$1.6$1.5$1.3

Deli Dress., Salads, Prep'd Foods

Pkg'd Meat

Unprep'd Froz. Meats, Seafood

Canned VegetablesSource: Food Institute Report, June 24, 2011

Example: Branded Importance to US Consumers of Fresh-Cut Fruit is Low

(brand loyalty is also low for bulk fresh produce)

Prefer brand/ Prefer store brand

4%

No Preference68%

Prefer brand/ will pay more

fwill not pay more

13%

Source: “Fresh Summit 2007 Ripe for the Picking,” Perishables Group, Oct. 2007.

p y15%

Also, 74% of Fresh-Cut Veggie Consumers Have No Preference

23

U.S. Supermarket Bagged Salad Market Shares, Top 5 Firms and Private Label, Share of Dollar Sales

Private label share 2 4%

Other share 6.4%

Private label share

Other share 5.2%

Top 5 firms

2.4%

Top 5 firms

share 25.4%

Sources: 1994 - IRI; 2011 - Nielsen *52 weeks ending July 16, 2011

Top 5 firms91.2%

1994 2011

Top 5 firms69.4%

2009* US FRESH-CUT VEGETABLE CATEGORY MARKET SHARES, BY KEY FIRM, (% of Total $ Sales) and Change in $ Sales 2008/09*

Firm Share % Change in $

Sales vs. YAGOPrivate label 45.3% 16.5%Mann’s 5.9% -30.7%Eat Smart 4.5% -16.8%Fresh Express 3.1% 8.0%Greenline 3.1% -4.7%

Source: Nielsen *52 weeks ending July 4, 2009.

Dole 3.0% 2.2%Grimmway 2.3% -11.3%All other 33.0% 10.7%

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All Other 3.5%

Onions

Cooking Greens 4.4%

Celery 3.0% Potatoes -9.0%

Pk d S l ds 57 4%

Dollar % Change vs. Year Ago

Share of Total Private Label Vegetable Sales Accounted for by Key Vegetable Categories in U.S. Supermarkets, 2010 (Latest 52

Wks Ending 09/25/10); and % Change from 2009

Potatoes 20.6%

Pkgd Tomatoes

6.8%

Prepd Veg 6.2%

Onions 4.5%

Pkgd Salads 57.4%

Carrots 4.3%

Lettuce 16.6%

Mushrooms 17.1%

Tomatoes 5.7%

P p’d V 5 5%

Source: FreshFacts® on Retail, Whole and Fresh Cut Produce Trends: Q3 2010, United Fresh Foundation

Salads 19.5%Carrots

16.3%Lettuce 7.6%

Mushrooms 7.5%

Prep d Veg. 5.5%

Onions 17.2%

Cooking Greens 15.9%

Celery 12.2%

2010* US FRESH-CUT FRUIT CATEGORY MARKET SHARES, BY KEY FIRM, (% of Total $ Sales) and Share Point Change,

2010/09*

Share of Sales %Share Point

Change vs. YAGO

PRIVATE LABEL 28.3 1.5

Del Monte 14.4 -1.6Ready Pac 10.7 -2.3Garden Highway 7.6 0.7

Source: Nielsen*52 weeks ending July 17, 2010.

Chiquita 6.8 0.8Crunch Pak 6.8 0.9

25

All Other 0.1%

Cherries 0.2% Prep’d Fruits 8.9%

Cit s 37 7%

Dollar % Change vs. Year Ago

Share of Total Private Label Fruit Sales Accounted for by Key Fruit Categories in U.S. Supermarkets, 2010 (Latest 52 Wks

Ending 09/25/10); and % Change from 2009

Prepd Fruits 48.2%

Citrus Other

Stone Fruits

Grapes 0.3%

Specialty Fruit 0.3%

Citrus 37.7%

Apples 1.4%

Other Fresh 281.3%

Berries 24.7%

Stone Fruits 352.3%

G p s 514 7%Citrus 34.2%

Apples 9.8%

Other Fresh 3.4%Berries

3.0%

0.5% Grapes 514.7%

Specialty Fruit -9.0%

Cherries -32.4%

Source: FreshFacts® on Retail, Whole and Fresh Cut Produce Trends: Q3 2010, United Fresh Foundation

Retailer Sustainability Efforts, 2011

“Neither retailers’ nor suppliers’ environmental and sustainability efforts have been negatively impacted by the recessionary pressures In addition to the the recessionary pressures. In addition to the environmental concerns, retailers and suppliers are learning to leverage the demand for energy-efficient, organic, sustainable, environmentally friendly and socially conscious products and services. As such, sustainable practices can help retailers gain a competitive advantage

Source: US Grocery Shopper Trends 2011, FMI

practices can help retailers gain a competitive advantage or develop a positive public image — as well as achieve operational efficiencies generated by internal practices such as waste reduction and energy-efficiency.”

26

Promotional Measures in Action for Packaged SaladsThe garden premium subcategory sold 67.9% volume on promotion.

• At 76% promotional efficiency, this sub-category

30.

60.

47.

76.

35.

36.

43.

38

90 0%100.0%

% Subsidized % Promo Efficiency

% on Promotion

demonstrated the highest promotional efficiency.

The coleslaw subcategory demonstrated the lowest promotional efficiency, 30.8%.

• Percent subsidized volume in coleslaw

69.2%

39.9%

53.0%

24

64.6%

63.7%

56.2%

61.9%

.8%

.1%

.0%

.0%

.4%

.3%

.8%

.1%

20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%

40

37 36 19

67 34

41 17

Source: Perishables Group FreshFacts® powered by Nielsen

was 69.2%.• Only about 30% of the volume sold on promoted weeks was unexpected.

.0%

0.0%10.0%

Blends

Kits

Organic

s

Garden

Garden Premium

Single

Serve Bowls

Spina

ch

Coles

law

0.8%

7.5%

6.6%

9.4%

7.9%

4.6%

1.6%

7.5%

Promotional Efficiency – Volume. Packaged salads, Retailer X, 52 wks ending 03/28/09.

• Firms at all levels of the fresh produce supply chain must take management practices to a higher level

• Better information technology is a necessary but not sufficient condition for meeting today’s and future standards for efficiency and

Conclusions

condition for meeting today s and future standards for efficiency and performance

• Companies must develop cultures of continuous improvement and innovation in order to fully exploit the potential benefits of information technology

• Understanding consumer segments as they relate to preferences for a product/retail format is vital

• The fresh produce value chain is becoming more vertically coordinated, enabling buyers and sellers to more closely align their incentives and rewards, and supply and demand

Trends in the Marketing of Fresh Produce and Fresh-cut...

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