CONSISTENT FRESH-CUT FRUIT TOPS RETAILERS' WISH LISTS

TOM ZIND

It's been heralded as the next "big thing" in the supermarket fresh produce department. Ever since bagged salads took off and never looked back, rendering heads of Iceberg lettuce a virtual specialty item, fresh-cut fruit has been viewed as the heir to the throne. Years later, though, fresh-cut fruit on a mass-produced scale remains largely a "next-generation" concept. But, oh, what promise it holds.

The fresh-cut industry, at least, makes a pretty convincing case for what displays full of everything from sliced apples and sectioned citrus to melon chunks and wedges of mangoes -- in all sorts of permutations and high-tech packaging concoctions -- might ultimately do for the produce department.

Cut fruit, processors say, has even more potential real-world applications than fresh vegetables, and would be a timely play on many emerging food trends, from convenience to healthful eating to a lust for fresh and flavorful foods. At the same time, widespread adoption could significantly boost overall fruit consumption by making fruit easier to eat, recasting the produce department as an even more important destination department in the process.

Retailers, on the other hand, remain somewhat skeptical, having yet to see firm evidence that processors can supply products that offer a better value than the limited selection many now offer by doing it themselves, in limited fashion, at store level.

A September seminar sponsored by the International Fresh-cut Produce Association, Alexandria, Va., provided a forum for both views. The association's annual fall seminar, "Fresh Cut Fruit: Drawing Board to Cutting Board," brought together retailers, processors, market watchers and technical experts to slice and dice the prospects for the category. The conclusion: Cut fruit has a great chance of success if the many technical hurdles that still dog it can be overcome.

Quality issues with processor-supplied cut fruit were cited by at least one retailer who spoke up at the meeting, according to IFPA executive director Edith Garrett. The representative of Giant Food, Landover, Md., said he's yet to find a processor who can offer a better product and more reliable program than what the chain can do itself, in-store.

"He said he was interested in doing more with processors, but hasn't yet seen a product that would work for him," Garrett said.

That's a sentiment shared by other retailers, many of whom see the potential but are inclined to stick with product prepared at the store until they're more comfortable with the concept of processor-supplied products.

Richard Draeger, owner of Draeger's Super Markets, Palo Alto, Calif., said his in-store program meets his customers' fresh-cut fruit demand, which, though limited now, is likely to grow, especially if consistently high-quality products emerge.

"You have better control if you do it yourself at this point, so we're just waiting right now to see if it can be done outside on a high-quality basis," Draeger said. "It seems like the early adopters of this cut fruit technology have had inconsistent supply, so you hate to have to devote shelf space to something that at this point you can't always get."

Fresh Express, a pioneer in the packaged salads category, is the latest produce company with a national scope to take a stab at putting together a major fresh-cut fruit program. In late August it unveiled several cut fruit products under the name Real! Fresh! Fruit! that are being test-marketed in two California chains -- Save Mart Supermarkets and Albertsons' Northern California division.

The company said the line-up, which includes 3.5-ounce cups and 12- and 24-ounce combinations of cut fruits such as cantaloupe, honeydew, watermelon, grapes, apples, pineapple and oranges -- as well as a line that pairs many of those same fruits with selections of cheese and crackers, yogurt and granola, and bagel and cream cheese -- incorporates many features that will likely make cut fruit appealing to consumers.

"The product line is a breakthrough in terms of being a consumer-driven product that's more in line with how we see consumers using cut fruit in their daily lives," said Jennifer Whittle, vice president of fruit marketing. "In addition to being different from a quality and processing technology standpoint, the packaging is designed to be more portable, as opposed to large, bulk containers."

While user-friendly packaging is important, even more vital -- and elusive -- in the evolution of fresh-cut fruit will be achieving a product quality that meets consumer expectations. Flavor is a much more important characteristic for fruit than it is with vegetables, Garrett said. Consequently, no matter how convenient it is, fresh-cut fruit that doesn't deliver on taste won't succeed.

If logistical issues facing fresh-cut fruit can be solved, though, Garrett sees a bright future for marketers of cut fruit and retailers who sell it.

"Exotic and tropical fruits that are more difficult to eat will be helped, and there's also an opportunity to increase fruit consumption at many different eating occasions," she said.