Fresh Fruit Is a Growth Opportunity

November 5, 2014
NACS Online
With increasing sales numbers, the top five fruits are a great pick for retailers.
​NEW YORK – In case you haven’t been paying attention, there’s big money in fruit these days. With last week’s announcement that Chiquita Brands International (known for its iconic banana labels) was being purchased for $1.3 billion, combined with a recent Nielsen report showing that 18% of consumers around the globe prefer fruit as their top snack, fruit is a true growth opportunity for retailers.
Fruit’s increasing popularity is due to a variety of factors, from growing health consciousness and “foodie” culture, which encourages trying new things, to the simple fact that it’s a convenient snack for any daypart. And while produce sales may face some challenges, such as increasing prices and supply fluctuations due to weather conditions, sales are expected to keep going up across all retail channels.
Fortune magazine recently profiled the top five fruits sold at grocery stores, based on sales dollars and volume, according to Nielsen Perishables.
1.Berries (2013 sales: $3.020 billion): Nielsen groups all berries as one category, making it the highest-grossing fruit. It captured that title thanks in part to the category’s “super food” designee: blueberries.
2.Apples (2013 sales: $2.442 billion): Staple fruits like apples are often the ones that lose out when consumers sample new types of fruit, but a new apple innovation has lifted sales since 2009: pre-cut apples. Sliced apples are priced higher than whole apples and have seen an increase of 72% in sales over the past five years.
3.Bananas (2013 sales: $2.183 billion): Like apples, banana sales also tend to decrease as consumers experiment with new fruit. Nielsen notes that the total banana sales listed does not represent one the fastest growing channels for the fruit: convenience stores and coffee shops. Just ask Kwik Trip, whose stores sell 400 pounds of bananas per day!
4.Grapes (2013 sales: $2.135 billion): While the California drought has led to increased prices and slower sales, there are more types of grapes than ever on the market. And new packaging innovations, such as plastic clamshell containers, make the fruit easier to store and transport, for retailers and consumers.
5.Citrus (2013 sales: $2.133 billion): The citrus category is undergoing a transition as the old standby — oranges — makes way for more convenient, seedless versions like mandarins, which have experienced an 89% increase in dollar sales in four years.