Prepare to win this holiday season

Each year the fresh produce industry supply chain and retailers lean into the final two months of the year to capitalize on a strong demand for fruits and vegetables as well as ancillary and seasonal products meant to charm the senses and elevate the attitude during what generally is a jubilant and festive period.

Enter 2020, which has presented challenge upon challenge but opportunities as well. Retailers have been the beneficiary of a strong demand for fresh produce from consumers seeking to have new food experiences at home and supporting their own immunity through healthy eating.

According to the latest retail sales trend data released by PMA, dollar and volume growth continue to be in the double-digit territory. So what does this mean when it comes to holiday supply and demand, especially when producers had to forecast year-end demand months ago with no guarantee what level of recovery the foodservice sector would realize after the early shutdowns and reduction of customer capacity in their businesses?

In recent years, restaurants have grown substantially in capturing the holiday food dollars by creating holiday social experiences families can enjoy together.

Five years ago, I would have never considered having a Thanksgiving of Christmas meal anywhere other than at the home of family or friends, but I learned through my own experience that dining out during the holidays is very much a growing trend.

This year, however, restaurant options in many parts of the country will be limited due to ongoing capacity restrictions, so a shift in the food dollar back to the retail sector is a real opportunity.

The kitchen is alive and well

What we have learned over the course of the past eight months is that creativity and exploration have returned to the home kitchen. Data from IRI shows that consumers have invested in more kitchenware and appliances than they have in years.

Additional data shows that people are looking for new menu ideas and products to incorporate into their meal planning, and the holidays present an amazing opportunity to meet those expectations.

Prepare for the exciting

In my years in retail, the holidays were always an exciting time. We knew which items were going to be in high demand from a historical perspective, but identifying new, trendy or unique items we wanted to have available to capture our customers’ attention was always top priority.

Ten years ago, it may have been Brussels sprouts stalks, and five years ago it was Murasaki sweet potatoes. Those are two examples I personally had.

I will always remember them because we could not keep enough supply to meet demand; it was exciting if not a bit perplexing.

So consider that this year presents the opportunity to create demand for dozens of items that are not the typically on the holiday shopping list.

The plan to win

Holiday planning for fresh produce is always driven by metrics and strategy with a few entrepreneurial goals thrown in to achieve beneficial outcomes. If 2020 has proven anything, it is that we must think differently to succeed. The old produce merchandising concept of “Stack it high and watch it fly” still has value applied correctly, but it cannot be the primary strategy to rely on to grow sales in this new era.

Capitalize on the immunity-boosting trends with related products because consumers are continuing to seek them out. When they add these items into their holiday meal planning, they’ll create discussion and conversation, which will lead to even greater demand.

The holiday period is a great time for introducing line extensions or varieties of products within a certain category, such as other colors of cauliflower – purple, green and gold – and Romanesco (a very trendy item, by the way).

Hard squash is often overlooked aside from butternut, green acorn and spaghetti squashes, but there are at least a dozen or more widely available varieties, each with its own unique characteristics and usages. When promoting hard squash, be sure to offer a tips, preparation and recipe ideas for customers.

Dates have long been a staple in the produce department, but new products and packaging offered by companies marketing this amazing fruit have created more demand and new ways to use them – and they are a superfood.

Holiday surprise?

The surprise of the holiday season may be the mushroom category; throughout 2020 mushrooms have been in the top 10 of dollar and volume gainers every week. And what better time to promote and add mushrooms to recipes than the holiday season.

After living near the mushroom capital of the world of Kennett Square, Pa., and having the opportunity to try mushrooms in ways I hadn’t before, I’ve learned a lot.  

One of my favorite ways to enjoy mushrooms now is mushroom and brie cheese soup! This soup served as a starter to a holiday meal will be a conversation piece.

Building a winning plan for the holidays has never been more important than in 2020. Retailers and in particular the produce department will likely achieve historic volume and dollar growth and possibly even set the stage for emerging food trends for 2021.

This column is part of a series by Joe Watson, who spent 30-plus years as the director of produce for Rouses Markets and was named Produce Retailer of the Year in 2014. Joe now serves as a vice president of member engagement for PMA.