Report: Fresh-cut produce sales continue to grow

Sales are up and retail prices for fresh-cut and value-added produce products are basically holding their own amid fluctuations in pricing for produce as a whole during the first quarter of 2012.

According to United Fresh’s Fresh Facts on Retail quarterly report, fruit prices are holding steady while the majority of vegetable products decreased in average retail price compared to a year ago. The report analyzes retail price and sales trends for the top 10 fruit and vegetable commodities, as well as value-added, organic and other produce categories.

Still, organic and value-added fruit and vegetable products fared well, with “consumers willing to pay a premium for the products,” according to the report.

Supermarket produce dollar sales were steady for the quarter, while volume increased slightly compared to last year. The shifts were caused by a 1.3 percent decline in average retail price. Fruits were the strong drivers, though, with an average retail price rise of 1.5 percent, resulting in increased dollar sales of 3.0 percent and volume of 1.4 percent.

In the value-added fruit category, which reported an increase in sales of 4.7 percent from a year ago, fresh-cut fruit was the top performer. With sales up 7.4 percent, fresh-cut fruit accounted for the largest dollar share of value-added fruit sales, at 74.7 percent. The average retail price of fresh-cut fruit was also up by an average of 1.2 percent. 

Value-added vegetables had larger gains in weekly dollar and volume sales than value-added fruits during the first quarter of 2012, though prices in all categories slightly decreased or remained steady. Weekly dollar sales rose 7.6 percent and volume increased 8.3 percent.

Side dishes made up 56.2 percent of value-added vegetable sales, driving dollar and volume growth for the quarter. The snacking category, representing almost one-tenth of all value-added vegetable dollar sales, had the second largest increase in dollar (7.2 percent) and volume (8.4 percent) growth.

With convenience remaining king for consumers shopping the produce and deli departments, produce-based deli salads posted both dollar and volume growth in first quarter 2012. Deli salad bars and other lettuce salads both posted 7 percent-plus increases in dollar sales.

The report also addresses promotions in value-added fruits and vegetables. On the fruit side, fresh-cut fruit sold the second highest portion of volume on promotion (18.4 percent) and subsidized the largest percentage of volume (63.7 percent). On the vegetable side, snacks had the second highest percentage of volume sold on promotion (18 percent).

The report was sponsored by Del Monte Fresh Produce and produced by United Fresh in partnership with the Nielsen Perishables Group.