Garlic suppliers report strong demand as foodservice rebounds

Demand for garlic is good at retail and rising at foodservice, suppliers say.
Demand for garlic is good at retail and rising at foodservice, suppliers say.
(Christopher Ranch)

Foodservice demand for garlic has increased and retail demand has receded slightly as consumers return to restaurants – though people continue to prepare more meals at home than they did pre-pandemic.

“As the COVID-19 vaccination efforts continue to roll out, we’re seeing a slight shift back to what we would consider ‘normal,’” said Ken Christopher, executive vice president of Gilroy, Calif.-based Christopher Ranch. “That being said, demand for fresh garlic remains 15% over historical trends, which for a mature industry like agriculture is virtually unheard of. On the foodservice side, we’ve seen orders for our peeled garlic return to pre-pandemic levels, which is likely a sign Americans are much more comfortable with dining out again.”

Jim Provost, president of West Grove, Pa.-based I Love Produce, made a similar observation.

“As we come out of COVID, retail demand is softening and foodservice demand is strengthening,” Provost said. “This seems rather obvious, but as expected. I don’t think foodservice demand is back to pre-COVID levels, and we will see if it gets there.”

Rafael Cisternas, brand manager for Miami-based Garland Foods, also reported continued strong demand at retail and increasing demand from foodservice.

“In general, (for) retail customers that we do business with, as well as what we see, business remains strong coming out of COVID, to levels higher than what we saw prior to COVID,” Cisternas said. ”The garlic category still has high levels of interest as consumers continue to cook at home and eat a healthy diet.

“For foodservice, we have seen a significant uptick in volume as the economy has opened,” Cisternas said. “We expect this trend to continue for the second half of this year as vaccinated people feel more comfortable going out to eat and socialize. In addition, foodservice demand from cruise ships has bounced back quickly to almost pre-COVID levels.”

Back in the spring and summer of 2020, there was a huge shortage of garlic as Chinese production and exporting was shut down for at least three months, Provost said. He noted that while many people in the U.S. are resuming many of their normal activities, the level of return-to-normal differs by country.

“Even though the U.S. is coming out of the pandemic, the rest of the world is still dealing with it to some extent,” Provost said. “I Love Produce is staying on top of the situation so we can maintain supply and meet our customers’ needs into the future.”

Marketing and merchandising trends

Product size and packaging are two arenas in which suppliers and retailers continue to experiment.

“While we pride ourselves on growing some of the largest and the most beautiful California garlic bulbs, many retailers are choosing to maximize their sales by offering smaller bulbs of garlic,” Christopher said. “Fresh garlic is traditionally sold in 30-pound boxes, with a garlic count ranging from 135 bulbs all the way to 410 bulbs, depending on our customers’ needs. We continue to try out different packaging, including display trays that best feature our heirloom product.”

Cisternas also mentioned packaging, noting that in general retailers want more of it.

“We are seeing a demand shift from bulk to packaged product – specifically requesting recyclable packaging – which has increased the purchase size of the transactions,” Cisternas said.

He also noted a growing effort to implement merchandising displays and couponing at store level, plus more interest in store brands.

“We see an increase in demand for private label as many new and existing customers want to grow product offerings while also growing the exposure of their brand,” Cisternas said.

Business updates

After some minor pandemic-related disruptions to the supply chain, Christopher Ranch plans to again offer a year-round organic California garlic program for some of its key customers. Organic is about 10% of the company’s total harvest but is its fastest-growing category, Christopher said. The company also has a new garlic packing facility that has increased its output significantly.

Garland Foods recently launched its Squeezy product line. Cisternas said the items in the line are packaged in a stand-up spouted pouch and provide the same flavor potency as fresh garlic.

“This product is really in a category of its own since it does not belong to the shelf-stable category nor the peeled category,” Cisternas said.

The company is also exploring the possibility of opening a new distribution center in the Northeast as it expands its reach on the East Coast.

 

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