Thyme, potted herbs driving growth for category
Meal preparation habits established during the pandemic bode well for the fresh herbs category, as retail sales remain above 2019 levels even as demand flattens out amid the return of foodservice.
“The 13-week Nielsen herb numbers (for dollar sales) are 3% versus the 52-week number of 17.4%, so you see the effect of the country beginning to open up and the increased consumer mobility,” said Steve Wright, chief customer officer for Rockingham, Va.-based Shenandoah Growers, noting the numbers include fresh and processed herbs.
“The great news is the category has advanced well beyond its 2019 pre-pandemic base, and the world has found new and lasting ways to use fresh herbs.”
Vivianna Greene, marketing manager at Thermal, Calif.-based North Shore Living, also noted significant upticks for thyme and potted herbs along with growth in the category overall.
“People, after they started cooking fresh and realizing this tastes better, and in the long run is probably cheaper than eating out … they’re starting to just continue to cook more from home still,” Greene said.
Camilo Peñalosa, managing partner of Miami-based Infinite Herbs, noted that the increasing use of meal kits during the pandemic has also contributed to the growth of the category. People try the fresh herbs as part of meal kits and then go look for them when they do their regular shopping – because now they have a better idea of how to cook with fresh herbs, Peñalosa said.
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Peñalosa noted that meal kits have been a source of new business for Infinite Herbs during the pandemic, and while demand from foodservice is picking up again, retail demand has held strong so far.
As far as specific areas of the category, living/potted herbs have been seeing significant growth.
“That category is on fire and up 28.8% over the last 26 weeks,” Wright said. “Our display-ready shipper has been a real hit, and our That’s Tasty Living organic basil is the number one SKU in the category. Thyme continues to grow in popularity and has officially passed mint as the number two SKU in the category.”
Greene also mentioned thyme and potted herbs as hot items in the category.
“A lot of people are going over towards the potted brands because they are wanting to replant or they’re wanting something that’s just as fresh as they can possibly get it,” Greene said.
Marketing and merchandising
Greene noted that North Shore Living’s marketing efforts are focused on consumer education, particularly around the story of the company – its origin, its sustainable practices, its growing process – but also about how to use its products and why living herbs are preferable.
North Shore Living is also starting to come out with more shippers for secondary displays and cross-merchandising in departments like meat, seafood and liquor, Greene said.
Wright noted that, within the produce department, building around basil is a proven strategy.
“In terms of merchandising basil is the key to the category,” Wright said. “Successful retailers get basil right and have a robust offering of multiple SKUs and sizes. We continue to see major growth in large pack basil, which is driving the category.”
Wright also noted that the company’s display-ready living herbs shipper has been a big success and will continue to be an emphasis for Shenandoah the rest of the year. Also, the company plans to meet the demand for potted herbs with four large pot offers: Ulta-Mint, Tuscan Blend, Mosquito Blend and Back to Basil.
One trend Peñalosa mentioned was the demand for sustainable packaging. The options that most satisfy interested consumers are more expensive than traditional packaging right now, but Peñalosa expects that in the coming years more packaging suppliers will offer those options and costs will come down.
Business updates
North Shore Living plans to have two new value-added items available by the end of this year or early next year. The company expects to have mockups to showcase at the Produce Marketing Association’s Fresh Summit in October.
Shenandoah Growers is expanding its Sherman, Texas, and Elkwood, Va., facilities, and over the next two years the company will be completing construction of three large indoor, organic biofarms. Shenandoah also has new leadership: new CEO Matthew Ryan, new CFO Mike Buckley, new chief science officer Tessa Pocock and new chief operating officer Cameron Geiger.
Peñalosa said Infinite Herbs has been building the logistics side of its business to diversify and better utilize its network of warehouses and trucks. The company is also using more flow-pack packaging for sustainability reasons, Peñalosa said.
