Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Friday, March 13, 2009

Mushrooms - how well positioned?

I recently posed these questions by email to Bart Minor, president of the San Jose, Calif. based Mushroom Council:


How are retail promotions of mushrooms being impacted by the recession? Frequency/type of product promoted/etc?

We have findings that show mushroom sales were up 4.3% in 2008 (IRI Food Store Sales research), demonstrating that despite the current economy, consumer demand for fresh mushrooms remains strong. The data also revealed that fresh mushrooms were the fourth largest growth category in produce with positive sales– and the only vegetable to show positive growth in sales and volume. Furthermore, this data is in line with a recent survey that found consumers point to mushrooms as their third favorite vegetable, after tomatoes and broccoli (May 2008 Rose Research).

A recent study commissioned by the Mushroom Council (Encore Associates January 2009 Retail Best Practices study), revealed that incorporating a fundamental promotion strategy can strengthen mushrooms’ sales performance. In fact, during a recession like we are experiencing now, the frequency and type of mushroom promoted greatly impacts mushroom sales potential.


What’s the message to retailers about the value of promoting mushrooms?


The message to retailers is that mushrooms are a reliable value generator for the produce department and their stores. During a year when consumers are monitoring how they spend money, mushroom demand increased. In fact, Mushrooms were among 6 of 20 produce categories with a positive volume increase; They were a top 15 produce category in terms of dollars spent; Consumer spend rate on mushrooms was among the highest, trailing only potatoes and tomatoes; and aA shopping basket with mushrooms is more than double the value of a shopping basket without mushrooms.

What type of adjustments are growers/marketers making because of the recession?

Marketers can make adjustments to be proactive in this economy, starting with incorporating the best practices marketing strategy mentioned above to increase overall store sales.

As far as growers, specific adjustments may vary by the grower and specific economic conditions in that region.

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