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Friday, April 19, 2024

Produce is getting a makeover: Branded veggies and fruit hit grocery store shelves and e-commerce sites

Even apples were sent to the 'stylist's chair.'
(Yes! Apples photo via The Wall Street Journal)
What's better than the most perfectly shaped, webbed, orange-spotted fresh watermelon? The same watermelon in splashy packaging. "More farmers and produce companies are now moving to a business model they've seen work in other product categories: differentiate even the plainest products with fun packaging and an interesting back story, gain customers' loyalty and sell more units at higher margins," reports Katie Deighton of The Wall Street Journal. "Branding the previously unbranded helps companies use marketing tools that had been unavailable."

Is it possible to pick out bananas and look trendy? Maybe. Across the United States, branded fruits and veggies are popping up on e-commerce sites and grocery store shelves wrapped in fresh marketing designs that "promote their provenance and sustainable credentials," Deighton writes. Previously, most fruits and veggies were marketed based on price and quality.

This shift has occurred partly because Americans started taking a closer look at where their groceries came from, particularly in the produce aisles. Online grocery sales also increased, as "buyers can't examine the products in person, making brand names a more useful signal of consistency," Deighton reports.

"[Shoppers] also showed a growing tendency to shell out for cool food brands that say something about their lifestyles and tastes, even during a time of food price sensitivity."

So far, produce marketing is growing more slowly than other sectors because its product changes from year to year. Michael Perdigao, president of advertising and corporate communications for the Wonderful Company, told Deighton, "We don't know from year to year how big the crop is going to be. We may have committed to a media buy or bought in the upfront market or something and then don't need it."

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