Texas operators consider prospects for selling direct to consumers

The COVID-19 pandemic closed a few doors and opened a few windows for Texas produce operators.

One strategy that several distributors and wholesalers turned to when their foodservice sales were drying up was selling produce boxes direct to consumers.

Ten months later, opinions are mixed among Texas operators about marketing those.

Brothers Produce began its produce box service direct to consumers early in the pandemic, said Brent Erenwert, CEO and branding specialist at the company and CEO at Houston Cold Storage.

“While others quit, we enhanced our (service),” he said.

The renewed restrictions on restaurants at the end of 2020 and the beginning of 2021 have resulted a new bump in direct-to-consumer produce sales, he said. 

“Part of me is kind of excited on that aspect because I’ve always wanted to hit 9 million people that I wasn’t hitting, but then the other part is finding the profitability of that deal.”

Erenwert said one big plus of direct-to-consumer sales of produce boxes is brand exposure.

The company has heavily marketed its produce box program on social media, featuring promotions to nab new customers.

“There could be a bigger play (in produce boxes) down the road,” he said. 
Erenwert said devoting just the right amount of resources for the business is the challenge, especially as the economy begins to reopen in the months ahead.

“We have considered boxes, but do not think they have a major future in our operation,” said Jorge Vazquez, president of Latin Specialties LLC, Houston. 

“As supermarkets, food delivery companies and farmers are getting in on the game, there’s too much competition to be in that arena unless you’re to offer some sort of unique value proposition to the end consumer.”

Liok DeThomas, office manager with Coosemans Houston Inc., said the company has supplied food boxes during the pandemic.  

“The ‘staying power’ beyond the current pandemic is a million dollar question,” DeThomas said.

Frank Schuster, owner of Val Verde Vegetable Co., McAllen, Texas, said the company has tried marketing produce boxes direct to consumers but so far hasn’t found much traction in the idea.

Whit Wagner, retail product and business developer for Houston-based fresh cut processor Texas Harvest Kitchen said it would be difficult to compete on price with the larger players. The firm has not attempted marketing produce boxes direct to consumers, he said.

In September Del Monte Fresh Produce NA Inc. introduced an online ordering service in Dallas with same-day service, offering more than 200 stock-keeping units to residents in the area.

The service, www.myfreshdelmonte.com, started Sept. 29, with fresh and fresh-cut fruits and vegetables from Del Monte and Mann Packing Co., which Del Monte acquired in early 2018.

On Jan. 17, the Del Monte Fresh e-commerce site for consumers was advertising 15% off organic bananas and 15% off fresh-cut produce, a promotion geared to those looking for healthy food options in their New Year resolutions. 

Del Monte Fresh could not be reached in mid-January to comment on the growth of the site since its introduction.