Fluctuating Prices Have Varied Effects In Q1 FreshFacts On Retail

WASHINGTON, D.C. – Fresh produce retail prices fluctuated in the first quarter of 2012, though fruit categories managed to remain steady while the majority of vegetable products decreased in average retail price compared to the first quarter of last year. Organic and value-added fruit and vegetable products fared well regardless of variable retail prices, with consumers continuing to pay a premium for the products, according to the latest edition of FreshFacts® on Retail, the quarterly retail research report of the United Fresh Foundation.

Supermarket produce dollar sales were steady this quarter, while volume increased slightly compared to last year.  These shifts were caused by a 1.3% decline in average retail price.  Fruits were the strong drivers behind produce dollar gains, with an average retail price increase of 1.5% that increased dollar sales 3.0% and volume 1.4%. 

The FreshFacts® on Retail report, produced in partnership with the Nielsen Perishables Group and sponsored by Del Monte Fresh Produce, measures retail price and sales trends for the top 10 fruit and vegetable commodities, as well as value-added, organic and other produce categories.

Highlights of this quarter’s report include:
•Four of the top 10 fruits and three of the top 10 vegetables posted dollar sales that exceeded Q1 2011. Berries and avocados were the primary drivers of both dollar and volume growth within fruits, and mushrooms were the only vegetable category to post dollar and volume growth.

§  Value-added fruits continued upward growth in dollar sales during Q1 2012, up 4.7% from a year ago with fresh cut fruit as the top performer.

§  Value-added vegetables had larger gains in weekly dollar and volume sales than value-added fruits. This upward movement was unaffected by average retail price, as prices for the four value-added vegetable sub-categories slightly decreased or remained steady compared to Q1 2011.

§  Organic produce posted double-digit growth in dollar and volume sales during Q1 2012, despite an average 80% price premium over conventional produce retail prices. Weekly dollar sales per store of organic fruits increased 28.6% and organic vegetables by 11.0% compared to the first quarter of last year.

Each FreshFacts® report also features a Quarterly Spotlight on one industry segment in particular. This quarter, the report looks at pricing and promotions in value-added produce categories. This spotlight highlights the factors and dynamics that influence the success of value-added product promotions, noting that consumers have become less price-focused in certain categories while others still rely on promotions to attract shoppers and boost sales.

The completeFreshFacts® on Retail report can be downloaded free of charge for all United Fresh members ($50 for non-members) by clicking here. For more information about how to obtain the report, please contact Shannon Young, United Fresh education manager, at 202-303-3400 ext. 405 or syoung@unitedfresh.org. For questions about specific data contained in the report, please contact Kelli Beckel at the Perishables Group at 773-929-7013.

Founded in 1998, the United Fresh Produce Association Foundation is a 501(c)(3) not-for-profit organization committed to meeting the public’s needs for an abundant supply of healthy, safe and affordable fresh fruits and vegetables. The Foundation is dedicated to increasing the availability of fresh fruits and vegetables to children as a critical step in combating childhood obesity and launching a lifetime of healthy choices. To assist industry members in meeting these goals, the Foundation offers educational programs, leadership development, public outreach, and industry training through four different Centers — Center for Leadership Excellence, Center for Nutrition and Health, Center for Food Safety and Quality, and Center for Global Produce Sustainability. For more information, visit www.unitedfresh.org or call 202-303-3400.

Source: United Fresh Produce Association Foundation