As the economy slows, so too have sales of some types of value added produce as many consumers are beginning to trade down to save money, according to the latest edition of the United Fresh Research & Education Foundation’s quarterly research report, Fresh Facts on Retail. The report, produced in partnership with the Perishables Group, measures retail price and sales volume trends for the top 10 fruit and vegetable commodities, as well as value-added, organic and other produce categories.
"This information helps to provide the industry with reliable benchmarks for produce sales and most importantly an accurate look at the overall retail landscape," said United Fresh President Tom Stenzel.
Highlights of this quarter’s report include:
· Average retail prices of fruits and vegetables increased 1.5% compared to Q12008
· Weekly dollar sales of packaged salads fell by nearly 5%, while bulk lettuce sales rose 6.9%
· Three of the top ten fresh fruits, berries, grapes and avocados, increased in volume
· Despite an increase in average price, bananas remained the lowest priced commodity at $0.64
· Weekly sales of fresh-cut fruit fell by 12%, however fresh-cut fruit still owned the majority of the value-added fruit category at 72.4%
· Sales and volume of organic fruit jumped around 10%
Additionally, as it has done in past editions, Fresh Facts on Retail spotlights one facet of the retail produce industry in its Category Spotlight. This quarter, the Category Spotlight focuses on the consumer’s shift toward more conservative spending, and a corresponding shift to less-expensive produce categories and varieties. This quarter's spotlight exemplifies this shift by comparing fresh tomato sales to canned and bulk lettuce compared to packaged.
"As the economy takes its toll, American families are tightening their belts and spending less on everything, including food," said Stenzel. "It is extremely beneficial for our members to have some sense of where that food budget is being spent, and this quarter's Category Spotlight offers a quick look at that information."
Fresh Facts on Retail is sponsored by Del Monte Fresh Produce and can be downloaded here free of charge to all United Fresh members ($50 for non-members). For more information about how to obtain the report or suggestions for future category spotlights, please contact Patrick Delaney, communications manager, at 202-303-3400. For questions about specific data contained in the report, please contact Kelli Beckel at the Perishables Group, at 773-929-7013.
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