Skip navigation

CALIFORNIA GRAPE GROWERS UNWORRIED BY DIP IN CONSUMPTION

FRESNO, Calif. -- Per-capita consumption of California grapes has declined by one pound after rising to more than five pounds in 1997, according to an annual study by the California Table Grape Commission here.The group's 1998 Economic Impact Report stated that the drop was throughout the grape industry, where per-capita consumption fell to less than seven pounds after sharply rising to more than

FRESNO, Calif. -- Per-capita consumption of California grapes has declined by one pound after rising to more than five pounds in 1997, according to an annual study by the California Table Grape Commission here.

The group's 1998 Economic Impact Report stated that the drop was throughout the grape industry, where per-capita consumption fell to less than seven pounds after sharply rising to more than eight pounds in 1997.

"There's no major driving event that's shifting the true long-term consumer usage away from grapes," said Dennis James, merchandising director of the CTGC. According to James, the decrease is a reflection of recent consumer demographics such as the number of shrinking households.

"All the different factors that you could look at throughout society definitely have an impact on where [the consumer's] money goes year to year," he said. "It's a small bump in the road that really has no definitive meaning or shows no true trend to it."

Falling consumption aside, California grapes still enjoyed a commanding dominance of the domestic market. According to the study, more than 95% of all grapes consumed in the U.S. are grown in California.

James said his organization planned to emphasize to retailers the importance of carrying a variety of California grapes.

"We know from experience working with many retailers -- increased variety translates into increased profits," he said, noting there were more than 50 varieties of California grapes under the traditional green, red and blue-black colors.

In a separate report released by the CTGC, 1,204 people interviewed about their last 10 shopping trips revealed they purchased 4.8 more pounds of grapes when four or more varieties were offered. The report, 1997 Maximize Profits From Grape Sales, also indicated consumers bought four pounds more when at least three varieties were offered.

Besides offering variety to boost sales, James said retailers should consider product placement as an important marketing element. According to CTGC's 1997 report, the grape category on average produces nearly $100 per foot of space.

"Space allocation has been and will always be a factor within the formula of success," he said. "Placement of grapes at the front of the store is a solid winner."

Other highlights of CTGC's report were the finding that grapes are typically impulse purchases, illustrating the importance of displays and feature ads. The number-one reason, as indicated by the report, consumers buy grapes is because they perceive them as a healthy and nutritious snack. The report found consumers believe grapes are a bargain at 87 cents a pound, but too expensive at $1.70 a pound and cost-prohibitive at $2.11 a pound.

In the second part of the study, which analyzed the scan data of more than 1,000 retailers in five regions of the country, the average retail price-per-pound of grapes for the enitre 1997 season was $1.31; the highest price, nearly $2.15 a pound, was recorded in May, which is the first month of a season that traditionally runs from May through February.

Supermarkets promoted grapes an average of 16 weeks out of 30 weeks in the season, the study found; the Southwest promoted them the most, for 21 weeks.

The study also found that the most effective promotions, which brought the best dollar lift, all had four characteristics: major or featured ads, promotional prices below $1, one or two varieties of grapes and at least one type of red grape.

It found that California grapes contributed an average of 8.8% to overall produce department sales, and made the highest contribution, 10.2%, in September.

To complement promotional efforts, the CTGC encourages retailers to set up sampling programs.

"In some stores, we've seen up to a 40% increase just by expanding variety usage and sampling, " said James. He added that the CTGC assisted retailers by providing point-of-purchase displays, sampling kits and training presentations.

"We are reintroducing for 1999 the frozen signs, where we are continuing to promote something that is extremely popular, which is to freeze grapes and eat them that way," he said.

On a national scale, the CTGC plans to target its primary consumer base -- female consumers between the ages of 25 and 54 -- with a number of commericials and radio spots. He said both media would carry the theme, "California Grapes Just Make Life a Little Easier."

The TV spots are to run from July until October on cable television; the radio commercials will run throughout the whole grape season, in three phases.

The first series, which will run from May through June, will play off the CTGC's finding that 92% of consumers polled prefer grapes from California and will emphasize the overall theme of the campaign. The second series will run from July through October, and will promote grapes for outdoor activities like trips and picnics, promoting the product's portability and variety. The third and final series will promote grapes for the holidays and will run from November through December.

The CTGC's campaign will start targeting the country's rapidly growing Hispanic population, he said; commericials in some areas will be in Spanish.

"We will be more agressively going after the Hispanic market throughout North America this coming year," he said. "The Hispanic program will be tied directly to retailers and supporting promotions with their Hispanic customers. We will be working with those retailers who have an Hispanic clientele to get on the stations and promote grapes."

Another important campaign launched by the CTGC is aimed at informing consumers of the benefits of phytochemicals found in grapes. According to James Howard, director of communications for CTGC, more than 20,000 copies of the brochure Food and Health: The Phytochemical Story, have been sent to retailers to distribute in their produce departments.

According to the brochure, researchers credit phytochemicals with preventing certain diseases, including cancer and heart disease. The brochure makes clear the idea that the area of phytochemicals is a "new field" and most results are still "preliminary."

To educate consumers and retailers, the CTGC has also established a Web site to provide health information and handling practices and recipe ideas.