Potatoes at Retail: Monthly Update – March 2021

March 16, 2021

Retail Sales

Total store sales for January 2021

• Retail sales for edible groceries remained strong in January, with fresh and frozen increasing by double digits.

• Potatoes and onions had the largest growth in the frozen category during January.

• Vegetable sales in produce increased by over 12% compared to fruit, which increased by just over 7% compared to last January.

• Fresh potatoes increased by almost 16% in January 2021 compared to January 2020.

Potato sales for Marketing Year To Date (July 1, 2020-February 21, 2021)

• Total store potato sales are up almost 14% in dollars compared to the same time period the previous marketing year.
  • Frozen potatoes remain the growth leader in both dollar and volume sales.

• Within fresh potatoes, all types grew by almost 4% or greater in dollars and volume.
  • The largest growth can be seen in both dollars and volume for medley potatoes.

• One through four-pound potato bags are growing the most for this marketing year in both dollars and volume.
  • Five-pound bags of potatoes remain the largest volume share category.

Trends

In-Store

• Retailers are capturing new fresh buyers by focusing on out-of-store promotions driving consumers in-store. (IRI)
  • For example, Amazon Live teaches consumers how to cook recipes.
• In-store shopping trip times are down by more than five minutes compared to a year ago. (IRI)
  • The current average trip length is 29.9 minutes.
• Supplemental Nutrition Assistance Program (SNAP) Households spend about $77 billion annually on groceries. (IRI)

• Consumers are looking for secondary displays highlighting meal solutions with more than one item. This can be used to drive bigger baskets. (IRI)

Online

• An average of 16% of households are ordering groceries online as their primary source. (IRI)
• Eighty-one percent of shoppers expect to use online even more (compared to pre-pandemic levels) for grocery shopping after the restrictions are lifted. (IRI)
  • Fresh foods e-commerce sales are up by 87% compared to a year ago. This is the largest growth of any category across the store.
  • Fifty-nine percent of consumers ordering fresh foods online are picking it up at the store, and 16% are having it delivered to their home.
• Inspiration on social media and retailer websites can drive consumers towards specific ingredients and drive purchasing in-store and online. (IRI)
• Quotient is the third-party agency managing Albertsons/Safeway’s online marketing, including its website and social media.
  • Quotient’s Back-to-School seminar highlighted the differences between Millennials and Gen Z and the best ways to reach these consumers online.

• Back-to-school sales play a significant role in both in-store and online spending starting in August. (Quotient)

Total Store

• The Produce Marketing Association (PMA) discusses their new training program, Essentials of Produce at Retail, to help retailers learn what consumers are looking for when shopping for produce. (The Packer)
  • Cohesive training on produce best practices is an area of opportunity for commodities.
  • Every retailer sees training as important but paying for adequate training is the biggest barrier.
  • Informed store employees are very important to consumers. If a store employee is unable to answer a consumer question, it negatively impacts their trust in the retailer.

• Tip of the Iceberg, The Packer’s podcast, discusses strategies to connect with retail consumers on social responsibility. (The Packer)
• The Packer names Milt Carter the 2021 Potato Man for All Seasons. (The Packer)
• United Fresh Produce Association hosted its annual produce marketing conference, Brandstorm. The ten marketing takeaways from the conference focus on investment in marketing and how to strategize as the U.S. starts to open up. (The Packer)
• Aldi is investing in future ag leaders by partnering with Management Development Services (MDS) to offer their employees leadership training. (AndNowUKnow)
• Produce for Better Health Foundation launched engagement strategies for reaching Gen Z and Millennials. (AndNowUKnow)
• Eighty-four percent of retail shoppers’ meals are still being eaten at home compared to 48% of meals in 2019. (IRI)

• The top categories with 2020 sales growth were driven by consumer trends to try something new. Lamb, fowl, and exotic meats drove the growth followed by rinses to ensure fresh produce was ready for consumption and safe. (IRI)