Opinion: Passion vs. efficiency
By Nic Jooste, director of marketing and CSR at Cool Fresh Internationalâ€, ‬a Rotterdam-based global marketing organization for†‬fresh produceâ€. ‬
This column first appeared in the January edition of sister publication Produce Business magazine.
In†‬his book†‬The Future of Shoppingâ€, ‬the Belgian author Jorg Snoeck†(‬also known as the†‬‘Captain of Retail’â€) ‬writesâ€: ‬
‘Anonymous uniformity is a thing of the past†‬‮…‬†‬today’s world is a world of nichesâ€.‬’†‬
In this regardâ€, ‬my recent visit to the New York Produce Show and Conference brought with it a rollercoaster of observations and†‬‘WOW’†‬momentsâ€. ‬The most significant experience for me was at the trade showâ€, ‬where I was again able to observe the amazing passion with which the USA fresh produce industry†(‬growers and tradersâ€) ‬is creating niches by using clever brandingâ€. ‬
From the minute I set†‬foot inside the Jacob Kâ€. ‬Javits Convention Centerâ€, ‬I was blown away by a multitude of amazing brands and innovationsâ€. ‬The bold†‬combinations of color and text to produce powerful communication concepts made me very happyâ€. ‬The future of fresh produce was staring me right in the faceâ€, ‬and this led me to ask the questionâ€: ‬‘Why is there such a big difference between Europe and the USA in terms of fresh produce branding and communicationâ€?‬’†‬
In 2015â€, ‬I did my first presentation at the Global Trade Symposium†(‬a co-located conference of the New York Produce Showâ€), ‬during which I highlighted the trend among European retailers to enforce the use of generic packaging for fresh produceâ€. ‬I saidâ€: ‬‘In Europeâ€, ‬the passion has largely gone out of fresh produce marketingâ€. ‬Through thisâ€, ‬consumers are not being engaged at all in†‬the real stories of fresh produceâ€. ‬We are killing our very own added valueâ€, ‬in regards of which the communication should be all†‬about goodnessâ€, ‬flavor and taste but is now predominantly based on priceâ€.‬’†‬
Todayâ€, ‬in The Netherlandsâ€, ‬virtually 80†‬percent of all fresh produce items are sold in an unbranded format at retail levelâ€. ‬Anonymous uniformity has become the normâ€, ‬and efficiency rules the roostâ€. ‬I believe that this†‬‘neutral’†‬approach to fresh produce branding has pushed the door wide open for the processed food industry to cannibalize the real fresh†‬produce industry’s market positionâ€. ‬
If the exhibitors at the New York Produce Show are anything to go byâ€, ‬American fresh produce companies have caught on to this phenomenon and are embracing branding and innovation to promote fresh produce†(‬and its benefitsâ€) ‬in the broadest senseâ€. ‬This was apparent in every aisle of the Javits Centerâ€. ‬Powerful fresh produce communication was everywhereâ€. ‬From the clever wording of Village Farms’†‬Cabernet Estate Reserve snack tomatoes†(‬rich smooth flavorâ€), ‬to Booth Ranches’†‬visually stunning carton for its California citrusâ€, ‬to the inspirational†‬‘Fresh Food Made Easy’†‬display by East Coast Freshâ€, ‬the entire convention center oozed passionate fresh produce inspirationâ€. ‬
The iconic Dutch football coach Louis van Gaal once asked of journalistsâ€: ‬‘Are you so stupidâ€, ‬or am I so cleverâ€?‬’†‬I should ask the same of the European fresh produce industryâ€: ‬‘Are we so stupidâ€, ‬or are the Americans so cleverâ€?‬’
My experience and observations at the New York Produce Show led me to dig deeperâ€, ‬and I eventually came to see that the signs have been there for some timeâ€. ‬In a report released in September 2017â€, ‬the renowned retail research company Nielsen stated thatâ€: ‬‘Walking through the grocery storeâ€, ‬consumers have more choices than ever to meet their needsâ€. ‬These choices go beyond product typeâ€, ‬package size and flavorâ€. ‬As consumer interest in fresh food heightensâ€, ‬so does the focus on product offeringsâ€. ‬While not historically prominent in the produce departmentâ€, ‬brands now play an increasingly important role in the department’s successâ€.‬’
The report then shows some interesting figures over an extended period of timeâ€. ‬In the USAâ€, ‬the overall produce category grew†$‬13.2†‬billion between 2012†‬and 2016â€. ‬More significant though is that branded products’†‬dollar share gained 7.7†‬percentage points in that time periodâ€. ‬On the other handâ€, ‬unbranded produce lost 8.6†‬percentage pointsâ€.‬â€
‬But the most interesting statistic for me was the fact that branded produce represented 72†‬percent of the produce snacking categoryâ€. ‬It is clear that all over the worldâ€, ‬consumers are moving into a more erratic eating modus†(‬see†‬Does Size Matterâ€, ‬Produce Businessâ€, ‬December 2018â€). ‬Healthy fresh produce snacks are becoming a mainstream culinary itemâ€, ‬and the New York Produce Show showcased†‬many of the innovations that are addressing this massive marketing opportunityâ€. ‬
It seems while retailers in Europe have been driving costs down by standardising fresh produce branding and packaging to the level of a commodityâ€, ‬in the United States the fresh produce players have instead opted for cross-pollinationâ€, ‬cross-fertilizationâ€,‬†‬and co-creating new products and brand stories in partnership with their retail partnersâ€. ‬
This out-of-the-box approach also is†‬buoyant at store levelâ€. ‬I walked into a number of randomly selected stores in New York and saw the evidenceâ€. ‬I saw how branded tomatoes were driving sales of Mozzarella cheeseâ€. ‬I saw pure coconut water being pulled along in sales of exotic fruitsâ€. ‬I saw yogurt merchandised next to fresh berriesâ€. ‬I saw the most amazing ranges of freshly squeezed juices focusing on vitalityâ€, ‬healthâ€, ‬immunity and digestion merchandised together with traditional fresh produce itemsâ€. ‬With all that in mindâ€, ‬what I did NOT encounter in the USA fresh produce scene was a fear of stepping into the unknown and doing†‬‘new thingsâ€.‬’†‬
It does not require a master’s degree from Harvard to understand that the new generations of foodies have constantly evolving needsâ€, ‬especially in the areas†‬of healthâ€, ‬nutritionâ€, ‬convenience and innovationâ€. ‬The answer for fresh produce companies lies in adopting one’s business model to meet these evolving needsâ€. ‬This requires some business acumenâ€, ‬but most importantly it requires guts and stubborn determinationâ€, ‬such as I observed at the New York Produce Show and Conferenceâ€. ‬
But that has always been the American wayâ€, ‬has it notâ€? ‬JUST DO ITâ€.