United making news - Fresh Facts

In the backdrop of a friendly rivalry, it is sometimes amusing to see one trade association make news during the lead on to their rival's big expo. You can bank on PMA having a flurry of news releases the week of United's trade show, and United just issued a news release that seeks to direct a little attention their way during PMA's big week.

The story from United is intriguing, and look for coverage in The Packer....

The gist of it is that United is launching a research report called "Fresh Facts on Retail" in conjunction with The Perishables Group and with program sponsor Del Monte Fresh Produce. The news also comes with hard data to digest from the second quarter this year. The top line data showed overall produce dollar sales per store grew 3.2% from the previous year, but volume was down 4.1%.

Developing.....

Produce Pricing May 2008 - Perishables Group

With bananas and onions at opposite ends of the spectrum, Steve Lutz of The Perishables Group passes on information on retail produce pricing in May. From Steve:


Attached is the latest retail price information through the end of May 2008. I pulled the four week average for May compared to the same period last year. As you can see, the average retail for total produce is about 3% higher….with a lot of variation.

Let me know if you have any questions.

Steve Lutz
Executive Vice President
Perishables Group

Deal shopping

I visited with Steve Lutz of the Perishables Group earlier today about consumer behavior in a scenario of rising prices. He pointed out that fresh produce isn't necessarily in a position of strength; consumers already tend to think fresh fruit and vegetable prices are on the high side. In that context, this story from The Houston Chronicle speaks to how retailers are positioning themselves for the value choice:

It's vital for grocers to "show customers they're on their side," said Kit Yarrow, professor of business and psychology at Golden Gate University in San Francisco. "Consumers want to feel like they can trust that their grocer is doing everything they can to help them."

Among retailers, grocery stores have some of the most loyal customers. But now that fuel costs are taking a bigger chunk than ever out of people's income — at the pump and in their light bills — those bonds are in jeopardy of breaking.

"Consumers hate to switch grocery stores and tend to be very loyal, but all that's up for grabs right now, and every smart grocer knows that," Yarrow said.