Packaged Food Wants Real Estate in the Produce Aisle: What Are You Going to Do About it?

CoreBanner_PackagedFoodinProduceAisle.pngIt’s not news that CPG products and other non-produce packaged foods are eager to gain supermarket retail space next to fresh lettuce and apples. In fact, the Wall Street Journal wrote about this 5 years ago detailing the “halo effect”: a tendency for consumers to perceive foods placed in the produce aisle to be of fresher and higher quality, even when these foods are packaged or non-produce items. This research has driven CPG brands to not only look for ways to capitalize on “fresh” and gain a coveted space on produce section shelves – but now these brands are gaining space on the tradeshow floor at produce-focused shows like Fresh Summit. As we walked the aisles at the most recent Fresh Summit expo in Orlando, we couldn’t help but notice the increased presence of packaged snacking items and cold-pressed juice brands all eager to gain the attention of the produce buyers that are there to see you.

For some fresh produce marketers, this might be concerning, even a bit of an annoyance. But our challenge to you is to not become discouraged, but instead consider how you can step up your marketing to cement your place in the produce aisle. Allow us to provide some inspiration:

Update packaging to provide value-added information

Data from Yerecic Label presented during PMA Fresh Summit suggests that 34% of shoppers say recipes encourage them to purchase unplanned produce items. People are realizing more and more that their consumption of fresh fruits and vegetables is falling short, but they struggle with knowledge on how to consume more. Consider creating more powerful packaging that moves shoppers into new usage occasions with recipes and calls-to-action to gain more ideas on your website.

Explore product innovation opportunities for convenience and packaged products

We’re excited to see that this effective strategy is already top-of-mind for many produce companies. We recommend that produce marketers assist their product development teams by using analytics to measure and understand consumer preferences. By investing in marketing activities that seek to build a consumer database, you will have the opportunity to ask questions and discover trends and product offerings that interest consumers.

Enact a consumer public relations strategy to gain widespread brand recognition and create connections to your story

We’ve said it many times but it bears repeating: we feel strongly the consumer public relations is one of the biggest tools missing from the modern produce marketer’s toolbox. With an effective strategy, PR will provide constant, dynamic storytelling on behalf of your brand. Cold-pressed juice and “better-for-you” snack brands gaining traction in the produce aisle are using to PR to gain placements in publications like Shape, Women’s Health and more. What if your products received similar buzz and talked up all that your brand has to offer?

Test out a campaign with digital coupons to drive sales

Digital couponing is becoming more popular amongst millennials and digital-savvy consumers. Fresh produce brands should consider harnessing the power of these coupons using apps and services like iBotta to drive additional sales. Bonus: iBotta allows brands to maximize on additional strategies we’ve listed in this post, including polling coupon redeemers about product preferences and creating 2 for 1 co-offers with another brand in the produce aisle.

Consider a brand refresh or redo

We know that this can be an emotional decision for many produce companies, especially those of you who have a very long and impressive history. But if your logo hasn’t been updated in the past 10 years (or beyond!) then it might be time to consider a modern refresh. The non-produce items that are gaining traction in the produce aisle feature attractive logos and cohesive branding designed with the latest shopper preferences in mind. As much as the trade may recognize and cherish your current logo and legacy, they will appreciate an update if it is going to excite their shoppers.

Partner with like-minded non-produce brands

Finally, consider ways to take advantage of our new friends in the produce aisle. The “halo effect” suggests that CPG and similar brands are eager to partner with produce companies to gain association with their healthy and fresh label, so why not invite them to join us? These mutually beneficial relationships will allow both brands to widen their reach and gain exposure to new communities, not to mention you can split costs on more powerful promotions.

Instead of trying to combat the CPG companies that want to capitalize on your FRESH real estate, we hope that you will become encouraged by these strategies and find opportunities within our obstacles. The good news about all of this is that people are placing increased value in fresh foods, so with the right approach, we only stand to gain as an industry.

If you’re interested in incorporating one of the strategies above but you aren’t sure where to start, we’d love to help.