WASHINGTON — Consumer demand for convenience, snacking options and portion variety helped boost sales of value-added fruits and vegetables during the second quarter this year, according to the most recent edition of FreshFacts on Retail, a retail research report produced by the Perishables Group for the United Fresh Foundation.
Dollar sales of value-added fruits were up 3% compared with the second quarter of 2010, averaging $1,944 per store, per week. These gains were driven by a solid 5% increase in volume sales. Total category prices fell 1.9%, to an average retail of $2.19 per item.
Fresh-cut fruit remained the category's strongest performer, although volume sales of fresh-cut fruit rose less than 1% compared with 2010.
However, this modest growth suggests that shoppers remained loyal to the subcategory despite slightly higher prices. A 2.7% increase in average retail price led to a 3.4% increase in dollar sales, which averaged $1,341 per store, per week.
By contrast, a 2.2% decrease in average prices for overwrapped cut fruits helped boost volume sales by 7.2% in this smaller subcategory. As a result, dollar sales rose 4.8% to $375 per store, per week.
Similar trends were evident in the value-added vegetable category. There, dollar sales rose 5.6% to an average of $1,070 per store, per week. A 7% increase in unit sales offset a 1.3% decline in average retail price per item.
Side dishes, defined by the Perishables Group as “fresh cleaned and cut vegetables, such as broccoli and cauliflower, which are typically served as side dishes,” were particularly strong performers. Average retail prices were essentially unchanged, compared with the second quarter of 2010, but dollar sales in this leading subcategory rose 10.2% to reach $568 per store, per week. Volume sales were up a corresponding 10.8%.
Mixes, medleys and other cut vegetables intended for meal preparation saw smaller sales growth of 2.7% to reach $181 per store, per week. Those gains were driven primarily by retail price increases averaging almost 2%. Volumes rose less than 1%.
The larger vegetable tray subcategory fared worse, but held its ground. Volume sales were flat, despite a 2.4% decline in average retail price per item compared to the second quarter of 2010. As a result, dollar sales declined 2.1% to $224 per store, per week.
Growth in value-added items is an encouraging sign for produce departments. In recent months, for the broader fresh produce category, any increase in price has been met with a corresponding decrease in volume, and vice versa.
For example, in the second quarter, total category sales rose 1.4% to reach almost $50,000 per store, per week, while average prices rose 2.4%, and volumes declined 1%.