Top Trends for 2007

Another year, another E. coli scare? I certainly hope not, but would anyone be surprised if we face new food safety outbreaks? While our industry tries to do everything possible to prevent food safety contamination, outbreaks seem to be on the rise with better health department reports and investigations at the state level. Perhaps we can corral science to our side in 2007 to find sources of contamination that can be addressed.

The beginning of a year is a great time of optimism. What will 2007 bring? No one knows, so I thought I would take this month’s column and focus on the top produce industry trends as I view them. Some are no-brainers, but all are very important for our industry.

• Food safety scrutiny – Because of the latest outbreaks, there will be an increase of efforts to identify, implement and enforce food safety standards in our industry. Third party audits have grown in importance, and I suggest that by the end of 2007, anyone doing business without at least one annual, independent audit in place will have a tough time staying in business because the customer has too much at stake to let anyone “slide” in this department.

Now that several produce associations are asking for regulations for food safety in the produce industry, the FDA and Congress are paying attention! Areas we need to focus on include trace back and recall plans; verifiable procedures; additional microbiological testing; new anti-microbial treatments; more thorough audits; and additional research.

• Value-added produce – Even more value-added produce items will be available in 2007 – and this isn’t just fresh-cut produce. Value-added can mean new packaging concepts; trimming a commodity to remove waste and increase convenience; combining measured amounts of product into one package for end-user recipes; cross merchandising products in different grocery departments; creation of new recipes for consumers; added consumer support from web-based programs; and brand new commodities in fresh-cut form for the marketplace.

Another new trend is also emerging at production – new applications for familiar products. There will be more assembly done at processing and packing facilities to provide convenience to foodservice operations at restaurants and grocery stores. Preparation of sandwiches, pizzas, soup mixes, individual salads and many more food products can be cost-effectively handled by produce facilities to offer safety and value. Packinghouses can repack more produce from new varieties, colorful mixes or different sized packages to meet demands from different buyer segments.

• Cooking and population dynamics – Every produce supplier should begin to identify different consumer groups to target. Are you selling to aging Boomers or Generation Y kids? Boomers are starting to retire and are creating a more active lifestyle than their parents. They are looking for convenient, authentic and healthy foods. Generation Y kids are members of an even larger population than the boomers – they are known as the “Boomer Echo” generation and they are just graduating from college and moving into their own apartments and homes. This group is not interested in middle-of-the-road – they only want high end or cheap products. Both groups are interested in cooking as much as eating out, so we can draw them in with cooking instructions and recipes to get their attention.

Growth among ethnic groups will also drive different consumption patterns in many food categories. Hispanic people represent the fastest growing ethnic group in America. They cook more at home than other groups and are big consumers of fresh foods and ingredients. Asian people represent the second-fastest growing ethnic group in America. They also cook with lots of fresh foods and with the highest per capita income of any group; they can afford higher end value-added produce.

Finally, dual income families looking for more convenient foods are also driving the Home Meal Replacement (HMR) category at retail and foodservice. Take a look at your local Outback, Carrabba’s, Friday’s or Applebee’s parking lot during evening drive time. Lots of your neighbors stop there to pick up complete meals to eat at home! Don’t ignore the opportunities this fast-growing food category presents.

• Consumer communications – Retailers now expect suppliers to know the consumer better than they do. Information gleaned from consumer survey results and original research will become more valuable to both supplier and retailer.

Websites, e-mail, newsletters, and targeted coupons are just a start for suppliers to reach consumers. Gather information from your retail customers from their loyalty card database targeting the consumers that buy your products frequently. Or start your own list from sign-ups on your web site.

Your package label can also be invaluable to reach consumers. Print an 800 phone number or web site address and get contact information from everyone who calls or visits your site. Hold regular product tastings in grocery stores to build excitement for your products and recognition of your brand. And take your show on the road to schools, hospitals and other institutions to help foodservice managers use more fresh produce in their mix. Bringing produce to children is our best strategy for building loyal consumers for the future.

• Technology – From RFID and trace back software to nanotechnology and more automation, technology will continue to contribute to better and safer produce. Industry members need to keep up with all these developments and try to steer the ship to make sure applications are appropriate to address fresh produce needs.

• The power of perishables – Smaller, neighborhood concept stores like Arthur’s Fresh Market by Marsh featuring fresh produce and meats are spurring new growth in perishable foods. And farmer’s markets continue to expand as more and more consumers look for local fresh products. In fact, the center aisle in traditional retail stores will continue to shrink as more of those dry, grocery-type items are bought in supercenter stores like Costco and Wal-Mart. The shopper of 2007 and beyond will be doing more frequent shopping for perishable items, thus giving retailers less dependence on long-term shelf life. Fresh produce items merchandised in more departments beyond the produce section will meet these changing needs.

How is your company poised to take advantage of any of these trends for 2007? Try to arrange a meeting with your customer to talk about these and other trends you see. Show them you are more than just a supplier – be their solution provider. By being a partner, rather than just a supplier, you can cement your position for the future and sales will grow as you continue to identify early consumer trends.