FRESNO, Calif. (FNS) -- Retailers have seized the opportunity presented by table grape growers, offering customers a wider number of choices over a greater period of time. These newfound benefits come as a direct effect of new varieties and significant production shifts achieved by growers over the past few years.
The once significant seedless varieties harvested in the summer and early fall have been joined by newcomers which have effectively extended the harvest season into December. Additionally, new plantings in the primary growing regions of the state's San Joaquin and Coachella Valleys, have also contributed to an increased tonnage available on the market.
These newly planted grape varieties, available in significant tonnage, have opened the door of opportunity to retailers seeking new methods of spurring sales over a longer season.
At Price Chopper, Schenectady, N.Y. the entire compliment of grape variety is promoted at least two times per year. The promotions are highlighted by a full-color advertisement spotlighting the grape varieties to encourage consumer trial, said Dave Proudy, produce category manager. In-store sampling further entices customers to try new varieties.
"The promotions certainly contribute to sales," said Proudy.
To aid retailers in stretching their promotions, the California Table Grape Commission, based here, developed a merchandising campaign dubbed "Variety Sells" aimed at spurring consumption. The campaign operates throughout the newly lengthened table grape season which runs from May through December. It is expressly targeted on expanding consumer's horizons and understanding of grape varieties, while encouraging retailers to feature a greater number of variety of table grapes in their advertisements and on their produce stands.
Retailers report that table grapes generally enjoy 7% to 12% of department sales. Promotions are often built around a full compliment of eight to ten varieties, retailers reported to SN.
Penn Traffic, Syracuse, N.Y. has been able to push sales upwards to 18% to 19% of total produce department sales by focusing on variety. During the first week of September the operator focused on 10 varieties. The items -- ranging from Thompson to Champaign, to Christmas Rose, Red Globes and White Italians -- were priced at 99-cents per pound.
"We ran the promotion early this season to make sure that we could run six or seven varieties," said Mike Smith, vice president produce for the 340-store group. Penn Traffic initiated grape varietal ads three years ago within it's Big Bear group. The success garnered in that division prompted the company to expand promotion of the commodity, as a category. Planning is essential, said Smith. "You have to plan early with shippers when you are promoting any commodity in the early part of the deal," he said.
This year's promotion focused on an advertisement. The chain generally features 12 items on the produce page of the circular. "We have found we do as well just featuring grapes as we do featuring the 12 items," said Smith. "The grape ad makes more of an impression, an image. We offered ten different kinds of grapes. It was quite an impact."
Additionally, grapes were featured in store at the front end displays and on radio advertisements, whether commission-sponsored or the chain's own spots.
"I'm not sure if the commodity actually matters when it comes to evaluating the success of a variety promotion," said Smith. "We conduct many successful promotions, focusing on varieties, with tomatoes, mushrooms, potatoes and peppers. It's just that everyone likes grapes, everybody eats them. They do sell well year-round and they are a certainly a key fruit category."
Most retailers reported that a 20% to 40% increase in sales can be achieved when an event, such as "Variety Sells," is put in place that stresses variety to customers. While retailers agreed that margins may be difficult to meet during an aggressive promotion, it was felt that the impact on other produce items and the department's overall image was well worth any short falls.
In the initial market test of the "Variety Sells" program, sales increases ranged from 66% for a 13-variety advertisement to 18% for a three-variety advertisement during the first year of the targeted promotion, according to Kathleen Nave, executive vice president, California Table Grape Commission. During a pilot program, following the market test, retailers achieved a 60% increase for an 18-variety advertisement to a 21% increase for a seven-variety advertisement. The average increase was 48%, she said.
Focus group research, conducted following the second wave of the "Variety Sells" campaign in six cities across the country, demonstrated that consumers are interested in tasting and using new varieties.
