Cultivate and capture root customers

The retail carrot category is growing. Does your store’s set reflect that increase?

Originally printed in the April 2024 issue Produce things.

Carrots have had a place at humanity’s table for well over millennia. This Old World root veggie remains a New World favorite, with Americans each consuming an average of 8.38 pounds per year, based on the USDA Economic Research Service’s Vegetables and Legumes Outlook: December 2023.

The introduction of fresh-cut technology that brought baby carrots and other value-added carrots to the market in the 1990s, along with organic production and shoppers’ interest in colorful varieties, made carrots a year-round category. was indispensable for fruit and vegetable retailers.

“The carrot category is growing and probably accounts for about 5% of our vegetable sales,” says Terry Esteve, director of produce and flowers at Robért Fresh Market and Lakeview Grocery, a six-store chain based in New Orleans, LA.

YEAR-ROUND PURCHASE

The long availability all year round, a relatively long shelf life overall and an affordable price make carrots a shopping list item that consumers often take for granted on the shelves. Things are not always that simple on the purchasing side of retail.

“Availability during the Christmas and New Year period was difficult. The demand was high, the suppliers were evenly distributed and we had a number of days a week when we ran out of carrots,” says Esteve. “Now things are back to normal and the supply is stable. The demand for all varieties is still good, but not like during the winter holidays.”

Similarly, Charlie’s Produce in Seattle, WA, which supplies several independent retailers in the Pacific Northwest as well as larger chains such as Fred Meyer and Sprouts, sold almost all of its carrots before St. Patrick’s Day.

“Between higher demand and abundant rain in some of California’s prime growing areas, we were ready to order again as soon as the holidays were over. No one cares about carrots until you can’t get them anymore,” said Jason Kazmirski, retail specialist at Charlie’s Produce.

Many carrots sold in the US are produced domestically, with California growing more than 85% of the carrots harvested in the US. This production is distributed year-round from four major production areas: the southern San Joaquin Valley and Cuyama Valley (Kern County), the Southern Desert (Imperial County), the High Desert (Los Angeles County), and the Central Coast (Monterey County). ). , according to the University of California Plant Research and Information Center, in Davis, CA.

In general, the highest volume comes from California in the first half of the year, and the lowest in the latter part of the year.

“We were harvesting in the Southern California desert at the end of February and plan to return to the Central Valley in May,” said David Bright, vice president of marketing for Grimmway Farms in Bakersfield, CA, as he the prospects for the root supply through spring and summer are positive.

Bright says Grimmway continues to expand its growing areas into other regions, including the Pacific Northwest and the Southeastern United States. “An additional benefit of these regional agricultural activities is a reduction in transportation costs to customers operating near these areas.”

In February, Israel-based BDA/Dorot Farm, a third-generation growing company with offices in Melville, NY, announced it was working with California growers to introduce baby carrots to its portfolio.

“Our baby carrot program in California will last 12 months for our U.S. retail and foodservice customers,” said Ami Ben-Dror, founder and CEO. The company also specializes in high-quality jumbo carrots for foodservice and fresh-cut businesses, and carrots in cello bags in 1, 2, 3 and 5 pounds supplied to supermarkets.

Outside of California, the two other major carrot producing states are Michigan, where harvest begins in late July, and Texas. Fresha LLC, headquartered in Morris, MN, also grows carrots in Georgia and Minnesota. The Georgia season runs from January to June, while Minnesota carrots are available from August to December.

Matthew Wulf, vice president of sales and marketing for Fresha, expects good availability this year, with consistent supply expected. “The current crop in Georgia is lagging slightly in size due to cooler weather in the Southeast this winter, but product quality is excellent. We had a mild winter in the Upper Midwest, which positions us well for early planting in Minnesota.”

“Our growing regions are not affected by water availability like some other growing regions,” he adds.

Domestic carrot production dominates the American market. However, according to May 2022 USDA ERS data, Mexico accounts for 75% of the total volume of carrots imported, followed by Canada with 20% and Israel with 1.7%.

SOURCE A RANGE

Ensuring a robust range of both conventional and organic carrot products, including baby, premium, cello and whole (loose/bunch) items, is key to driving sales year-round, said Karen White, vice president president of marketing of Bolthouse Fresh Foods, headquartered in Bakersfield, CA.

Carrot category SKUs have grown over the past two decades, creating more and more sales opportunities. According to data from Nielsen Total US, the category totaled 1.9% of total produce sales and 3.9% of vegetable dollars for the 52 weeks ending February 24, 2024. Baby carrots accounted for 43% of the dollar, whole carrots for 41.9% and added value for 15.1%.

“Baby carrots are a top product for us because of their grab-and-go nature,” says Charlie’s Produce’s Kazmirski, while whole bulk carrots are also selling well.

The company also often purchases the jumbo size. “Even if a customer doesn’t buy them, the sheer size of these carrots will get their attention,” he says. Top-on carrots also sell well because their “bright green leaves signal freshness.”

According to Esteve of Robért Fresh Market, carrots in whole two-pound cello bags are the highest value in the current economy. “New varieties such as rainbow peels, microwaved sweet baby carrots, sticks and chips and snack packs for children’s lunches are all starting to surpass baby peeled in sales.”

While conventionally grown baby carrots in 1-pound packages continue to occupy the top spot in Bolthouse Fresh Foods’ product lineup, White says the company is adapting to changing consumer preferences. Other top-selling SKUs include 2- and 5-pound packages, carrot chips in 1-pound packages, matchsticks in 10-ounce packages and carrot sticks in 12-ounce packages.

“Consumers are increasingly attracted to these value-added options because of their convenience, versatility and turnkey nature,” says White.

Kern Ridge Growers in Arvin, CA, is considering adding value-added carrot chips to their purchasing and sales lineup, according to Rob Giragosian.

Organically grown carrots represented 27.3% of total carrot dollars, according to the 52-week Nielsen Total US data ending February 24, 2024. Among organic products, whole cellos were top sellers, with 55% of the dollar, while baby carrots came in second took place with 31.4% and added value of 13.6%.

“Organic whole carrots are a steady movement,” says Esteve.

When it comes to consumer demographics, Melissa Oliver, vice president of retail at Bolthouse Fresh Foods, is noticing some interesting trends.

“While both organic and conventional carrot shoppers share similarities in demographics, such as household size and racial demographics, there are notable differences. Organic carrot buyers tend to be slightly younger, with a higher share of millennials and Gen X consumers. Moreover, households with children show a greater preference for organic carrots.”

Colorful carrots attract the attention of consumers.

“We get a whole baby rainbow carrot that we peel and package so we can easily prepare the meal,” says Esteve of Robért Fresh Market.

Little Bear Produce, in Edinburg, Texas, offers maroon carrots from early December through late March or early April “until it gets too hot,” says company representative Jeff Brechler. “Maroon carrots, which have a sweeter taste and crunchier texture than orange carrots, are a niche/boutique item most popular in health food stores and high-end retailers. They are also popular as a local product at Texas retailers.”

The company sells its maroon carrots bundled in 25- and 40-pound boxes.

For retail, Babé Farms, based in Santa Maria, California, focuses 100% on whole young bunch carrots in six varieties, including French (orange), yellow, purple, pink, white and round (thumbelina).

“One of our most popular items at retail is our Baby Mixed Carrots, which include a variety of colors (3+) so retailers can create a rainbow in their product display,” says Matt Hiltner, marketing manager.

“We expect a good supply of all varieties of our colorful carrots in the spring,” he adds. “While we faced some minor challenges earlier this year due to rainy weather, the impact was minimal and we expect to be on track for spring, one of the busiest times of the year.”

Grimmway’s rainbow carrot sales grew last year, Bright adds, “particularly for baby and fresh cello rainbow carrots at retail, as well as several value-added packages at both retail and foodservice, including carrot chips and shreds.”

CULTIVATE SALES

Esteve of Robert Fresh Market sells all packaged carrot SKUs in one set. “There are five or six options and I try to keep everything in one place to save the customer time. Time is valuable; You don’t have to run around the entire department looking for what you want.”

While the display layout may vary depending on the retailer and its customer base, Bolthouse’s White agrees that creating a dedicated carrot destination set can deliver significant benefits.

“We observed a potential 3% to 5% year-over-year increase in sales when root products were grouped together in a dedicated display area. Consolidating all root products, including whole products and value-added options, into one cohesive display can effectively capture consumer attention and drive purchase intent.”

As for promotion, “There’s enough variety in the category to have a SKU on sale every week,” says Charlie’s Produce’s Kazmirski. “We also recently created a root vegetable advertisement featuring carrots for one of our chains.”

A combination of in-store promotions, digital marketing and educational initiatives is the best way to promote carrots, says Fresha’s Wulf.

“We provide retailers with promotional materials such as recipe cards, point-of-sale signage and social media content to drive sales. Retailers can expect to see increased sales from these promotional efforts, especially when combined with strategic merchandising and customer engagement tactics.”

Seasonal refrigerated displays with prominent cross-merchandise featuring carrots and items from other departments at the store entrance or at the front of the produce department provide shoppers with the ingredients for simple meals or fun solutions, says Grimmway’s Bright. “Every season offers a unique opportunity to draw attention to and promote carrots.”