Source: The Packer
Even in a pandemic year — or, perhaps, because of it — potatoes and onions are an easy sell, marketers say.
“Potatoes contribute as much as 11 percent to produce sales volume in some channels, meaning they are one of the most important drivers in produce, so make sure there’s enough dedicated space to such a popular item, especially since the segment continues to show double-digit growth during the pandemic,” said Rachel Atkinson-Leach, category and brand manager with Bancroft, Wis.-based potato and onion grower-shipper RPE Inc.
Retailers do well to market specialty and bite-size potatoes on end caps and in secondary locations during promotional and non-promotional periods, Atkinson said.
“In addition, from a marketing perspective we try to influence and connect with the consumer on as many pre-shop and in-store shopping moments as possible to convert them to purchasing potatoes,” she said.
Marketing onions is equally fundamental because they are an ingredient and a staple in many cuisines, Atkinson-Leach said.
“Onions are also less price-sensitive so they do not require deep discounted promotions. Too frequent of promotions can leave money on the table for the produce department.”
The key to finding success in marketing potatoes is getting the merchandising right, said Ross Johnson, director of category management with the Eagle-based Idaho Potato Commission.
“Retailers can capitalize on the holiday season by making sure to build big displays with 5- or 10-pound bagged potatoes,” Johnson said. “The key here is using your merchandising to place some varieties nearby.”
Retailers must believe they need to place their specialty potatoes on ad in order to drive consumption, Johnson said.
“However, we have learned that advertising russets is what drives consumers through a retailer’s doors,” he said.
“Once you get a customer, you can achieve incremental category sales by strategically merchandising your target specialty items near your russet displays. The specialty category does not cannibalize russet sales; they are an incremental purchase.”
Know Retailer Needs
It also is important to know what a retailer needs, said Nick Leger, salesman with Lake Wales, Fla.-based potato-grower-shipper Mack Farms Inc.
“Some of the main keys to success of marketing staple produce items are industrywide support, using marketing data to target specific demographics and getting to know one’s customers and markets to successfully promote products effectively,” he said.
The pandemic is a great opportunity to capitalize on the nutritional value of onions, said Rene Hardwick, director of public and industry relations with the Eaton, Colo.-based National Onion Association.
“Several studies continually show the health value that onions provide with its natural antibacterial properties,” Hardwick said.
“When you add all that up, marketing onions in a pandemic becomes a valuable public service. We have been marking the immunity-building power of the onion since this past spring, and we’ll continue through the winter, as we get more into cold and flu season.”
The good-for-you aspect is important in marketing potatoes, too, said Dana Rady, director of promotions, communication and consumer education with the Antigo-based Wisconsin Potato and Vegetable Growers Association Inc.
“It’s important to focus on the fact that potatoes are nutritious, delicious and versatile,” she said.
According to Potatoes USA, record potato sales continued at retail from July through September, said Christine Lindner, marketing manager with Friesland, Wis.-based potato grower-shipper Alsum Farms & Produce Inc.
“Potatoes, being a mature produce category, are finding resurgence as (a) pantry staple by consumers, with some retail customers experiencing a 25%-plus lift over last year’s volume amidst the lingering pandemic,” she said.
Total store potato sales increased by 13.6 percent in dollar sales and 10.6 percent in volume sales, compared to the same time frame in 2019, which is the highest they have been for the past five years, Lindner said.
“With more consumers cooking at home, demand at retail by consumers seeking nutritional and local foods, like potatoes, will continue to stay well above last year’s levels for the foreseeable future,” she said.
What Clients Want
Vidalia onion grower-shippers, who market sweet onions from the Vidalia district and elsewhere, say their products are easy to market and move at retail.
“Premium sweet onions from Peru are a very special item in the onion category,” said Trish James, chief marketing officer with Reidsville, Ga.-based Shuman Farms.
“Sweet onions are driving category sales, and their versatility is one reason, as it makes it easy for them to be cross- merchandised throughout the produce and other fresh departments. We encourage retailers to pair sweet onions with items like peppers, tomatoes and mushrooms, as well as steaks and roasts in the meat department.”
Delbert Bland, president of Glennville, Ga.-based Bland Farms, agreed.
“Vidalia got them on the shelf, and Peru just followed them. They’re similar in taste and appearance to the Vidalia sweets; it’s just a continuation of the Vidalia marketing.”
The key to success in marketing staple items, such as potatoes and onions, is not to “treat them like a commodity,” said Jessica Peri, retail sales manager with Yerington, Nev.-based onion grower-shipper Peri & Sons Farms.
“Each color is unique and has its own purpose in dishes,” she said.
“We focus on quality and flavor. We want to win with the consumer every time, which in turn is a win for the retailers we supply. ‘An onion is an onion’ is not the way to look at the commodity. Not all onions are the same.”
The key to a successful potato category starts with targeted market segmentation, aligning the appropriate bag sizes and types with demographics most likely to buy those items, said Andreas Trettin, marketing director with Houston-based MountainKing Potatoes.
“It’s also about identifying the highest volume potato consumers and using their status as opinion leaders and influencers to pave the way for new flavorful varieties,” he said. “Make no mistake: This must be carried out intentionally with associate education and ‘wow’ merchandising. It’s how we’re winning over younger shoppers with the convenience, flavor and value of our smaller, pre-sized Baby Golds, Baby Reds and fingerlings.”
The Marketer
Success in marketing onions and potatoes also depends on the marketer, particularly during the 2020 pandemic, said Dallin Klingler, marketing and communications agent with Idaho Falls, Idaho-based Eagle Eye Produce.
“Marketing onions in the midst of COVID takes grower-shippers who are as versatile as the onion,” he said.
“There is a bigger focus on your brand identity/packing capabilities/quality and digital content. We are thankfully in a spot now where we can adapt quickly and pivot to meet our customers’ rapidly changing needs.”