Upward foodservice sales trend continues

Foodservice business accounts for a significant portion of sales for many produce suppliers, and most report that the segment is growing, as is the number of products they offer for foodservice.

That makes sense, considering that the National Restaurant Association says that 70% of consumers list “healthy menu items” as a factor in choosing one restaurant over another.

The association projects restaurant-industry sales will reach $798.7 billion in 2017, a 4.3% gain over estimated sales of $766 billion in 2016.

Research by the Produce Marketing Association in 2015 indicated 42% of produce is sold through foodservice channels, and that is expected to grow as a result of factors like vegetarian menu trends and increasing demand from millennials.

Produce suppliers offer a wide range of fruit and vegetable products for their foodservice customers and say they’ve noticed some significant industry trends.

Salinas, Calif.-based Church Brothers Farms grows and processes a line of fresh vegetables and salads for the foodservice channel, said Kori Tuggle, vice president of marketing and business development.

“We grow the staples of iceberg to the trendy kales and arugulas,” she said.

Church Bothers helps foodservice customers achieve several goals aside from providing healthful menu options, Tuggle said.

One of those objectives is reducing food waste, which the company helps customers achieve through its “imperfect” product line launched two years ago.

Church Brothers also helps foodservice customers reduce labor needs by offering value-added products such as pre-washed, pre-cut salad items.

At Boskovich Farms Inc., Oxnard, Calif., Mike O’Leary, vice president of sales and marketing for the fresh-cut division, said he also has noticed that increased labor costs and labor shortages “are pushing restaurant operators to look for cost containment measures to help stabilize menu prices.”

“Salad kits that reduce back-of-the-house labor are options that offer similar quality standards while minimizing prep time,” he said.

At the same time, seasonal items and limited-time offers continue to push diverse offerings at foodservice, he said.

Boskovich Farms offers a traditional line of salads and fresh-cut vegetables and specializes in products like spinach, cilantro, green onions and parsley.

Foodservice growth is strong on the commodity and value-added fronts for Salinas-based Mann Packing Co. Inc., said Gina Nucci, director of foodservice marketing.

“Our Arcadian Harvest blends are doing really well,” she said. “We recently introduced an organic version.”

Better Burger Leaf is another popular leaf item at Mann Packing, she said.

“On the value-added side, our Veggie Power Blend — a slaw made from seven superfoods — is colorful, crunchy and nutrient dense,” she said.

Foodservice sales are up and continue to be a growing channel for Del Monte Fresh Produce NA Inc., Coral Gables, Fla., said Dennis Christou, vice president of marketing.

The company offers a wide range of fresh-cut products as well as avocados and bananas, but he said the fastest-growing fresh-cut foodservice product has been mangoes.

Foodservice demand has increased steadily in the foodservice sector over the past three years for Andy Boy brand items from Salinas-based D’Arrigo Bros. Co., said Claudia Pizarro-Villalobos, director of marketing and culinary.

Andy Boy offerings include shredded lettuce, salad blend, chopped lettuce, chopped romaine, spring mix, arugula, cello spinach and baby spinach.

Suppliers and commodity boards report sales increases for a number of commodity items, as well.

• Recent research conducted by Datassential for the Fresno-based California Table Grape Commission showed 80% of the operators surveyed say they use grapes on their menus, and more than one-third expect to use more of them than in the previous year.
• Watermelon on menus has grown by 27% in the past four years, according to a recent MenuTrends Research study commissioned by the Orlando, Fla.-based National Watermelon Promotion Board and conducted by Datassential.
• Demand for garlic at foodservice is “off the chart,” said Mitch DiMarco, director of foodservice/industrial operations for Spice World Inc., Orlando, Fla. “It’s the No. 2 spice behind black pepper.”
• Avocado foodservice sales continue to rise, largely because of demand from millennials, said Robb Bertels, vice president of marketing for Oxnard-based Mission Produce Inc.