ORLANDO, Fla. - Now's the time to get serious about organic and natural products, as well as whole grain foods, speakers said at the International Dairy-Deli-Bakery Association's annual seminar and expo here.
Consultant Terry Roberts, president, Merchandising By Design, Carrollton, Texas, urged retailers to educate customers about all-natural and organic foods, underscore the benefits they deliver and merchandise the items appropriately.
At the same time, retailers could benefit by putting whole grain products in the spotlight, noted Joanne Slavin, a registered dietitian and professor at the University of Minnesota, Minneapolis.
"Consumers generally know whole grain products are good for them, but they don't know exactly which are the products, and they don't know where to get them. We need to make it easy for them," Slavin said.
Roberts cited studies that show less than a third of consumers believe supermarkets do a good job educating them about "healthy" foods. The same research showed consumers think retailers make extra profits on healthful products. To overcome that perception, retailers must plan product displays carefully.
Whether integrated or segregated, organic and all-natural products should stand out in some way, she said. She pointed to retailers like Wegmans Food Markets who are committed to the categories. Indoor cooking demos and an enthusiastic, highly motivated staff go a long way to quell consumer concerns about price.
"Most grocers respond to competition by slashing prices, wreaking havoc on already razor-thin margins, but you don't see that happening at Wegmans," Roberts said. Focusing on bakery, Roberts noted that organic and natural items have evolved in quality and taste and can be easy to sell, as long as customers can find them and be tempted by the products.
"You'll never carry everything a Whole Foods does, so concentrate on the core categories," she said. "A store-developed, signature organic or all-natural bakery product could serve as the display's hub."
Roberts has been working with SuperValu to highlight natural and organic products at its bigg's stores. The retailer successfully cross-promotes the products, and has become "naturally focused and at the same time maintains its price image," Roberts said.
