February kicks off key promotion for Idaho potatoes

February is a good time for retailers to show their love for potatoes. 

One of the Idaho Potato Commission’s signature promotions, the 31st annual Idaho Potato Lovers Display Contest runs from Feb. 1 through April 15.

Jamie Bowen, IPC director of marketing, said in a news release that secondary Idaho potato displays boost sales up to 22%.

“Our IPC research shows test stores that put up secondary displays of Idaho russets delivered at nearly 10 times (the) growth advantage,” Bowen said in the release. “The comparison stores with no secondary display, on the other hand, achieved an average category growth of only 2.5%.”

The contest is a great opportunity for retailers to creatively maximize their potato sales during a traditionally slower time of year, he said in the release.

The commission in early February was starting to get display contest submissions from retailers, said Ross Johnson, international marketing director for the IPC. Last year, the contest drew more than 5,000 entries, he said. 

“I think produce managers look forward to being able to do something a little creative, a little different in their department, and we reward them for it,” Johnson said. “I think that's a unique thing about our contest; everybody wins.”

In addition to offering more than $150,000 in cash and prizes, the IPC will award an Idaho potato-brand Manchurian ash, six-piece steak knife set to each retail display competition entrant.

Promotion outlook

The marketing season for Idaho potatoes will allow for promotions, despite tighter-than-normal supplies, Johnson said.

“A lot of retailers understand that you really need to advertise the items that consumers recognize, such as (Idaho) potatoes,” he said. “At the same time, retailers are needing to put more effort than ever before in communicating with their shipper to make sure that there's enough supply available for them to be able to run the planned promotions that they have.”

With higher prices and tighter supplies, the number of overall potato promotions at retail has declined significantly so far this season, Johnson said.

That has also increased the price of potatoes at retail, he said. “This talk of inflation that we’re hearing, we’re seeing that in real time when it comes to retailers.”

Tight trucks have slowed movement at times. “Costs on trucking have gone up and the availability of trucks has been pinched,” he said. “Our shippers are really struggling to do the best they can to get as much product out the door as they can,” he said.

Through Feb. 5, season-to-date Idaho potato truck shipments were off about 14% compared with the same time a year ago, according to the USDA.

The USDA’s Feb. 11 national retail report said that 2,947 stores promoted 5-pound bags of U.S. russet potatoes that week at an average price of $2.98. For the same week a year ago, the USDA reported that 4,529 stores promoted 5-pound bags of russets at an average price of $2.77.

The outlook for the balance of the season should call for firm prices, as some fresh packers have had opportunities to sell their fresh inventories  to frozen potato processors. At the same time, fresh packouts are down compared with historical averages, Johnson said. 

“Processors have been approaching our growers and trying to purchase the potatoes that they have on hand, and (the growers) have actually turned those offers away, even though it would be more beneficial to them,” Johnson said. “They want to make sure that they're supplying the fresh potato market. They're doing everything that they can to try and maintain the supply all the way through.”