Retailers need focus on quality, good merchandising plan to boost sales of specialty produce

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Specialty produce is not one of those retail categories where a merchandiser can “set it and forget it.”

Retail consultants say merchandisers must check several boxes to successfully market specialty produce.

The definitions of specialty produce are wide-ranging, said Mike Mauti, managing partner of Canada-based Execulytics Consulting.
Commodities like persimmons, pomegranates and figs are more mainstream items but depend on specific timing and execution, Mauti said.

“To me, it’s all about seasonality, getting the season right,” Mauti said. “right. And particularly for something like pomegranates, it has become such a staple, not just in how people eat, but also how people decorate. A lot of people decorate with pomegranates, it is important to hit it right seasonally, to really go big with it in your store.”

While persimmons or pomegranates have a short season, retailers can made a statement within that season, he said. The peak season for figs from California is the late spring and early summer, but figs are available from other locations throughout the year from other origins, he said.

More exotic fresh produce items like passion fruit or emerging multicultural products such as lychees  or Asian vegetables require great in-store execution, Mauti said, especially since not all importers and wholesaler suppliers can provide merchandising support.

“I think it really, it really comes down to your in-store offer, and picking and choosing the right categories, the right products, making sure it’s priced right,” Mauti said. “The most important part is making sure the quality is good.” Some operators try to hang on to specialty produce too long, hoping that some consumer will buy a “shriveled” passion fruit, Mauti said.

“I think if you look at it as an emerging category, or a category that offers something different to your customer, (then) you don’t worry so much about the shrink,” he said,  noting that in “the grand scheme of things” specialty produce will be a very small part of a department’s shrink. “Just make sure that the quality is right all the time,” Mauti said. “I think that’s the most important part.”

Retailers and marketers together are making progress in creating momentum for specialty produce, another consultant said.
“I think companies like are doing a much better job of understanding and putting together strategies to drive the consumption of (specialty) items,” said Craig Carlson, CEO of Chicago-based Carlson Produce Consulting LLC.

“I am a true believer that to drive consumption, you have got to have a partner that’s going to (active) on social media, has a digital strategy, has a strategy that can help educate your customers on the uses (of specialty items), and drive them to your store to buy it,” Carlson said. Marketers must know how to create influence on Instagram, Facebook and most importantly, Pinterest.

“I’m bullish (on specialty produce) but I think you really need the right partner to be successful, and that can help you drive consumption,” he said.

Carlson said that effective marketing also is needed to support e-commerce sales of specialty produce.

Companies with their own direct-to-consumer platform can find opportunity as well, he said. “I think there is going to be a lot more (opportunity) as this online marketplace grows,” he said.
“There will be opportunities to differentiate yourself from other produce marketers and items,” he said.


 

 

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