OKLAHOMA CITY (FNS) -- Fleming Cos. here is rolling out a new private-label line of fresh packaged salads to its retail customers, after an initial trial in Fleming-operated stores.
The salad line, dubbed Nature's Finest, was introduced in mid-May at 270 stores run by the Fleming Retail Group, the wholesaler's retail arm. By mid-June, the salads will also be available to the balance of Fleming-supplied operations.
Fleming officials told SN that they evaluated the store-brand packaged salad business for about two years, watching its volume grow from between 2% and 3% to 13% of the total salad category. That track record within such a vibrant part of the produce department prompted Fleming to develop its own program and jump in.
"Prepackaged produce has grown to represent about one-third of all produce in supermarkets, so Nature's Finest offers Fleming's retailers an opportunity to participate in that growing consumer interest," said Bill Dowd, president and chief operating officer at Fleming.
Bruce Bolton, director of produce marketing for the wholesaler, added that, "These branded products give our retailers a point of differentiation from the store across the street. Consumers can only purchase Nature's Finest items from Fleming-supplied stores. We want to help our retailers compete and give them a strategic differentiation."
Bolton said the timing is right. "The branded-produce market is primed for a quality store brand right now. Branded-produce sales have grown from $53 million in 1990 to $1.1 billion as of December 1997.
"We chose to begin with salads, because that segment in particular has grown from $26 million in 1991 to $159 million as of December 1997," Bolton said.
The Nature's Finest line includes Garden Salad in 6-ounce, 2-pound and 3-pound sizes; Caesar Salad, Classic Italian and Baby Spinach, each in 10-ounce bags; and Cole Slaw, in 1-pound bags.
To back up the introduction, the wholesaler has built its own training and support program, to ensure that the product is taken to market correctly and that the cold chain is maintained throughout the system and into the customer's hands, Bolton said.
Fleming is providing training to store owners and store-level personnel as the Nature's Finest line rolls out. Continuing support to fully develop the brand's potential is also being incorporated into the program.
"Training is important, and we anticipate it to be an ongoing process continuing the education as time goes on," said Bolton. "We want to initially open up the retailers' eyes to the fact that produce is a key area. Produce can be a profit and image maker, it can be a differentiation point."
The most crucial aspect of the training is repeated emphasis on what the cold chain is and how it is important to product freshness, shelf life and consumer confidence, Bolton said.
"Cold-chain execution is important," said Bolton. "If these items come into the 55- to 60-degree range, their shelf life is reduced by 50%. Shrink decreases profits and the shrink numbers for value-added salads are staggering. We hope that with education on proper handling, operators can capture these lost dollars."
With the produce department's chunk of total store distribution having grown 4% to 5% over last year, Bolton said he sees tremendous potential for the future.
"Consumers are looking for quality, convenience and healthy products. What better makes that statement than a ready-to-eat salad, an apple or peeled carrots?"
Fleming's initial wave of training came in the form of a video conference, sent to all 14 divisions with Fleming-owned stores. This is intended to serve as a "training the trainers" session.
As the product line now rolls out to the wholesaler's distribution centers, independent retailers will receive one-on-one training, in some cases through venues such as food shows and retailer meetings. For retailers who own several units, there will be central training points, Bolton said. Produce managers, store managers and owners will receive the specialized training.
The training includes handling tips to maintain quality and reduce shrink, using proper sanitation, rotation and equipment.
Merchandising tips to increase sales and profits, selection, availability and service are also covered in the training.
The Nature's Finest training program also includes tips on consumer questions, consumer interaction and proactive selling skills.
Bolton said he is hopeful the training will produce a dividend in increased consumer confidence in the safety of the products.
Consumers who are more confident should be easily convinced to increase their purchases, he said.
Currently, 52% of consumers purchase one salad bag every two months, according to ACNielsen data.
"Imagine what sales would be if we could move these users to buy a salad every month," Bolton said. "We would double our sales."
The comprehensive program includes materials for store-level personnel to use as references and reminders. "They can refer back to the charts, which show what temperature does to shelf life, what the effect of time and temperature is," said Bolton.
Following the introduction of the five prepackaged salads, Fleming plans to expand the line to include baby carrots, clip-top carrots and potatoes this fall.
Other items under consideration are apples, tomatoes and salad dressings.
"We will look at categories that make sense," said Bolton. "If retailers ask for items, we will look hard at those particular items. We will be looking at all fruits and vegetables."
