USA: Sales of fresh products remain very high
Despite the Coronavirus and its complications in the United States, sales of fresh produce in retail have remained very high, according to the latest data from the week that ended April 5. While the FoodService continued to experience deep declines.
As 210 Analytics, IRI and PMA did a few weeks ago, they once again partnered to carry out an analysis report on the effect of Covid-19 on the sale (dollars and volumes) of fresh produce in the United States.
According to this report, consumer behavior in the midst of COVID19, although it continues to show an increase, also shows differences in sales in dollars between fresh, frozen and long-lasting or packaged / canned products (such as milk, canned fruit ), during the week of April 5.
• Fresh products increased 14.2% compared to the same week in 2019.
• Frozen foods grew + 47.4%.
• Long-life or packaged / canned products experienced an increase of + 48.1%
Source: IRI, US Total. USA, MULO. At week 14-2020.
"Sales during the first week of April were likely influenced by the previous Easter, as well as higher daily demand that is driving a new baseline that is well above normal," said Joe Watson, VP of PMA. .
“At the same time, the sales results must be seen in a context where many stores have shortened their opening hours, there are closed services, there is a limit or control of the entry of consumers to the stores, as well as limitations in the purchase. of the items with the highest demand, and others that are simply not in stock. The effects of canceled events such as March Madness on products used for entertainment also have an influence, ”added the professional.
Fresh products
In March, the upward trend in dollar sales for fresh fruit shows very strong results for the weeks up to 15 and 22 March. While the two weeks that followed showed very high sales, particularly for fresh vegetables.
Compared to the same period in 2019, fresh produce generated an additional USD $ 170 million in sales, of which USD $ 129 million was generated by vegetables.
The report also highlights that stockouts and purchase limits may have affected reported earnings. Additionally, it indicates that distributors are finding creative ways to go directly to the consumer, with some restaurants now selling groceries. But those sales are not reflected in the numbers in the current report.
The report highlights that the most important question is, what role did the price play in all this, with a very reduced demand for FoodService that affects a wide range of products? At the beginning of the coronavirus in the US, sales in dollars and in volume they were relatively on par, reflecting + 0.4% in dollars and + 1.3% in volume.
However, from the week until 22 MarchSales by volume far exceeded sales in dollars, indicating an established deflation in retail in some areas. For the week of April 5, volume increases exceeded dollars by almost five percentage points.
The gap was larger for vegetables, particularly the past two weeks. For the week ending April 5, vegetable sales volume gains were more than 10 points higher than the growth of the dollar.
For the fourth consecutive week, potatoes were the leader in growth in absolute dollars, selling $ 35 million more than in the same week in 2019, or + 66.9%. Others who earned a lot in dollars were berries (+ $ 17 million), onions and tomatoes (+ $ 15 million each), and oranges (+ $ 14 million).
However, at the category level, large differences between dollars and volume were also observed for some fruits and vegetables. "Avocados, onions, and carrots are three big ones that surprise me," Watson said, adding that "others outside the top 10 in absolute dollar growth were limes (16 percentage points in volume / dollar gap), asparagus ( 13 points), Brussels sprouts (14 points), cabbage (12 points) and celery (30 points).
Celery has been one of the top products sold for juice, but during the week of April 5, dollars fell 3%, while volume sales increased 27%. ”
Fresh fruit
During the analysis period of the report, it stands out that fresh fruits recovered, reflecting an increase of 7,4%. Berries saw the largest gain in absolute dollars, with USD $ 17 million during the week of April 5 compared to the same period of 2019. Berrines were followed closely by oranges with an increase of almost USD $ 14 million in sales in the same period of 2019, and representing an increase of 60.5%.
Other large taxpayers in dollars were avocados (+ USD $ 9 million or + 19.6%), bananas (+ USD $ 6.5 million or + 10.4%) and lemons (+ USD $ 6 million or 42.2%).
Generate actions to promote fruit sales
Berries, apples, and bananas remain the largest categories of fruit in terms of dollars and volumes.
“While current shopper grocery shopping patterns are challenging, generating demand is crucial for fresh fruit,” said Jonna Parker, Team Lead, Fresh for IRI.
“The fruit generally benefits from flashy displays and impulsive sales, despite leading indicators pointing to fewer trips to stores and more online orders in the near future. I am encouraged to see retailers highlight the vitamin C attributes of oranges at displays to increase marketability, as well as introduce more bagged products to speed up shopping and give consumers peace of mind. "
In fact, several consumers commented on the loose and unpackaged items in the CCF (Constant Customer Feedback) program of the Retail Feedback Group. "Many items are loose and bagless, which contributes to the contact potential of other customers," said one buyer in the CCF program.
“I suggest packing the fresh produce before putting it on the shelves,” pointed out another. A third added: “I love the contactless hand washing station at the entrance. It would be nice to see that in the fresh produce section as well. I imagine that people touch the fruits and vegetables, and then put them back in their place, which is a way to spread disease. "
"Despite the constant assurances that fresh produce is safe for consumption, we are dealing with a situation where perception is reality," said Parker.
Fresh vegetables
On the fresh vegetables side, potatoes continued to have great growth, marking + 66,9%. Other categories that showed this impressive increase were onions, carrots, and mushrooms.
Fresh VS frozen VS packaged
Consumers continued to divide their production dollar in three ways, throughout the week through April 5. Frozen and canned vegetables had continued great growth during the first week of April, and have been leading sales growth since the onset of the Coronavirus, since the first weeks of March.
Lessons from European markets
Consumers, in most European countries that were affected before the Coronavirus changed sales patterns in the US, are moving towards a moderately high level of purchase.
Regarding food, the daily baseline has had a trend between 10% and 20% higher than the same week in 2019 for Italy, Greece and the Netherlands. While it was 5% to 10% for France and Germany.
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