Potato Grower

May 2018

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32 POTATO GROWER | MAY 2018 32 POTATO GROWER | MAY 2018 STOP THE DROP Volume is declining at retail. Let's stop it! Potatoes USA By Ross Johnson Global Marketing Manager forgoing by not carrying the right products in their category. In a recent study released by Kantar Retail, the Rich Mix Analysis identified to retailers the specific products consumers look for in each region of the U.S. The goal is not necessarily to convince retailers of which items to carry, but it offers new insights into the potato categories. The tool took the latest 52 weeks of sales data from Nielsen and paired that data up with 50 million households of frequent shopper data to analyze how consumers are shopping the fresh potato category. The findings of the tool have prompted a lot of engagement and proactive discussion with retailers all across the country. In my meetings, there has been a lot of conversation regarding how to grow the volume sales of potatoes. Retailers are hungry for data, especially when it comes to the produce department, and the Rich Mix Analysis engages them with potatoes. The study is the first of its kind being used in the produce department, and the data teaches retailers how to merchandise 10-pound, 5- to 9-pound, 1- to 5-pound, and convenience items. The tool also provides recommendations for what varieties to carry depending on the retailer's regionality. Potatoes USA has presented the Rich Mix findings to multiple retailers across the country, and it has led to constructive conversations around how to merchandise the potato set. We have seen retailers implement test sets in stores, bring in new items, and reinforce their core beliefs in how to drive the category. The opportunity for suppliers is to help retailers understand which items are the right mix to drive incremental sales. We also need to shift our promotional thinking: How do we teach consumers to purchase a bag and a convenience potato item on the same trip? Potatoes USA is committed to ending the volume decline at retail. It may seem like an insurmountable task, especially when it has been happening for multiple years. However, if we are able to effectively communicate the power of the potato, we can win retailers support. As we come together as an industry, we can stifle this trend and enjoy figures showing that the category is growing once again. I fully recognize we have seen a dramatic decline in volume sales at retail. However, in 2016-17, we saw an increase in household penetration (HHP) from 87 to 88 percent. This figure captures the number of shoppers or households that purchase fresh potatoes at retail. The HHP potatoes enjoy demonstrates consumers' strong affiliations with our products. However, for retailers, it seems that the decision to display potatoes has increasingly fallen to the back burner compared to all the new produce varieties and packages entering from all around the world. Our charge is to figure out how to get potatoes back to top of mind for retailers. Kantar Retail, a consulting firm focused on the future of retail, still predicts that in 2023, 83 percent of all retail sales will still come from brick-and-mortar formats. Online retail is important, but it is not where the largest opportunity lies for potatoes. The largest growth opportunities, according to Kantar, will come from retailers with a footprint of 50,000 square feet or less. Smaller formats are more easily adaptable to changing consumer demands, and smaller stores means a more focused product offering. Helping retailers understand what those focused items are in the produce department is paramount to their success. Potatoes USA has been working hard to get the retail industry to recognize the substantial volume retailers are Contact Shaun Lough to learn more: (509) 669-7600 • slough@westbridge.com • Stimulate seedling vigor and improve root and tuber development • Improve nutrient utilization to increase disease and stress resistance • Enhance starter and pre-plant fertilizer efficiency • Improve specific gravity by increasing starch deposits in tuber • Optimize potato size and uniformity for better marketability Always use Soil TRIGGRR® and Foliar TRIGGRR® as part of a complete fertility program. Maximize Potato Production Soil TRIGGRR® and Foliar TRIGGRR® are designed to: ® www.westbridge.com ® FOLIAR Plant Growth Regulator ® SOIL Plant Growth Regulator 47523Westbridge13s.indd 1 4/3/18 1:08 PM We also need to shift our promotional thinking: How do we teach consumers to purchase a bag and a convenience potato item on the same trip?

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