Specialty peppers play supporting role in category
Specialty peppers offer some key choices for retailers — and consumers — to consider, marketers say.
“It seems to be more focused on what an individual market responds to, as opposed to saying one approach works in general,” said Ed Beckman, chief operating offer of La Grand, Calif.-based Live Oak Farms.
Mini sweet peppers have built a strong following, although more work is needed in that category, Beckman said.
“There’s a good market share for it, but we’re not seeing the growth rate is continuing as to where it was a few years ago,’ he said.
“When you’re looking at varieties out there, one observation we’d make, a number of seed companies have two of three colors nailed, as far as the flavor goes. I know the seed companies are working on it.”
Peppers can be tricky to market because of consumer misperceptions, especially where new or specialty varieties are concerned, Beckman said.
“There are some very sweet red and orange peppers, but they are very easily confused by a novice,” he said.
Retailers need to get aggressive in merchandising specialty peppers, Beckman said.
“We have trialed a few with retailers (and) some have done a great job of reaching consumers, but others just threw them out on the store shelf,” he said. “The problem you’re looking at again is the consumer may like the looks but because it’s long and pointy, they think it’s hot.”
Shattering that perception is a tough challenge, but it’s doable, Beckman said.
“If you get them once, chances are you’re going to get them again,” he said.
Some like it hot
Some consumers look for hot peppers, and it’s important for retailers to point them in the right direction, Beckman said.
“There was a retailer during the Hatch, N.M., deal that had peppers from that area, and they had arrows on displays pointing peppers that were hot and arrows pointing to peppers that were mild,” Beckman said. “It’s not exciting, but that retailer did a great job.”
In-store demos likely are considered obsolete in some retail circles, but they actually are useful in clearing up confusion about peppers, Beckman said.
“When you’re dealing with something that may have similar appearance but very different flavor profiles, you have to go ahead and have some sampling to show it’s a sweet snacking item,” he said. “That’s how you get the consumer to try it the first time and hopefully come back for the second.”
Some grower-shippers bypass the specialty peppers and focus on bells.
However, others, such as Gilroy, Calif.-based Uesugi Farms, offer an array of peppers in the mainstream and specialty categories, said Pete Aiello, owner and general manager.
“We do a variety of chili peppers and also mini sweets, both organic and conventional,” he said. “We put those in a 1-pound bag, so we add the value-add packaging to it.”
Specialties serve an important sales role, Aiello said.
“That’s not a really big program for us. It’s just to augment the sales of our bells,” he said. “The retail guys love that stuff. Anything that has a nice value-added package and color.”
Oxford, N.C.-based Bailey Farms focuses on specialty peppers and works to bring consumers to them, said Randy Bailey, manager.
“We use our website that has a plethora of information on peppers, plus over 4,000 recipes that shows the consumer how to use the peppers,” he said. “Creative packaging is another way to get new consumers to the category.”
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The strategy has worked, Bailey said.
“Demand has been good in the specialty pepper market — mini-sweet, Bellafina and chilis,” he said.
London, Ontario-based greenhouse pepper grower-shipper Pure Hothouse Foods Inc. has found success in the mini sweet market, said Chris Veillon, chief marketing officer.
“The popularity of peppers is now seeing a crossover into like-minded products with an emphasis on grab-and-go snacks,” he said, referring in part to his company’s 4-ounce Pure Flavor Mini Munchie Veggie Snack Packs.
