Cucumber Market Trends

Transcription

1 Cucumber Market Trends General Consumer Habits in the USA MICHAEL J. AGOSTINI

2 Agenda Fresh Vegetable Trends Cucumber Insights Past Present Trends and Drivers Get Ready for the Future Questions / Comments

3 Fresh Vegetable Trends CONSUMER INSIGHTS

4 Up 1.3% over ten years... store fresh up 4.6%... Annual Eatings Per Capita Store Fresh Canned Frozen Home Grown Source: State of the Plate, PBH 2015

5 Eating occasions are changing due to time and convenience... Annual Eatings Per Capita Source: State of the Plate, PBH 2015

6 Younger generations are dominating the future... Fresh Vegetables 65% Percent of Eatings 35% 30% 25% 20% 15% 10% 5% 3% 26% 30% 18% 18% 14% 14% 14% 35% 15% 13% 13% 14% 9% 0% (Proj.) Source: Primary Shopper Report, PBH 2016

7 Good health is a major focus... nutrition is a big part... Major Factors Important to Good Health Physical Exercise Proper Nutrition Reduced Stress Not Smoking Adequate Rest Friends and Family Genetics Spirituality 41% 49% 47% 84% 80% 73% 68% 68% Eating Enough Vegetables? Vegetables / Types Available in Household Too Little 51% 57% Total Veg 90% 93% Fresh 88% Just Enough 38% 81% 47% Canned 74% % 2012 Too Much 3% 5% 2012 Frozen 79% 85% Source: Primary Shopper Report, PBH 2016

8 Retail grocery still dominates... farmer s markets are growing... Where do you purchase fresh vegetables? Grocery Store 54% Super Center 21% Farmers Mkt 9% Club Store 7% Home Garden 4% Other 4% Source: Primary Shopper Report, PBH 2016

9 Grocery ads still rule... internet is coming on strong... Which Communication Methods Do you React To? 4 YR CHG Store Ad Store Sign 86% 86% 1% 3% TV News TV Ad 80% 79% 3% 0% Radio News Internet Ad Social Media Radio Ad Billboard Text Msg 69% 68% 67% 65% 62% 62% 7% 10% 24% 7% 11% 21% QR Code 50% 22% Source: Primary Shopper Report, PBH 2016

10 State of mind, today s consumer are... Facing economic and time constraints Very concerned about health and nutrition Eating more fresh vegetables Shifting in generational demographics Depending more on internet / social media for information

11 Cucumber Insights PAST AND PRESENT

12 Steady growth curve in fresh cucumber consumption... Per Capita Consumption (LBS) Source: Statistica, 2017

13 Exponential growth in Long English, Mini and Pickling Cucumber Sales % by Segment Field English Mini Source: The Perishables Group, Internal Data

14 Cucumbers... % of consumers buying... 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 56% Cucumbers % Purchasing 83% Pk Salads 80% 70% 60% 50% 40% 30% 20% 10% 0% 76% 50% % Used For For Salad As a Snack Receipe Ingredient 41% 40% Side Dish 21% Appetizer Cucumbers % Purchasing 66% 20% 11% 3% Conventional Both Organic Not sure White Cuac. Black Af. Amer. Hispanic Asian Other 51% 58% 52% 49% 47% By Ethnicity Source: The Packer, Fresh Trends On-Line 2016

15 Snacking trend is strong... small is hot... $1.1 Billion fresh produce snacking Double digit volume growth past 5 years Lots of upside remains 44% Fruit / 17% Vegetable 36% of households purchasing over index in younger generations / multi-cultural families Small Cucumbers have: far outgrown the category shown strength in both mini (Persians) and pickling Little to no cannibalization of SS Cucumbers Source: Perishables Group, Fresh Facts, May 27, 2017

16 State of the category today... Growth in all segments Sales are shifting... field to hot house Small sizes are very BIG! There s upside for further growth in sales by usage by demographics

17 Trend and Drivers CONSUMER AND RETAIL INSIGHTS

18 Locally Grown Sales +4X over 10 years 75% grocery stores 25% farmer s markets and other (farm share, etc) 84% of shoppers say they prefer local Broad market appeal higher index to younger generations Lots of gray area defining local large and small growers field to controlled ag accurate marketing Thousands $5.0B Local Food Sales $11.7B Registered Farmer's Markets Est. $20.2B Source; Food Industry, Package Facts Source; USDA / AMS 2017

19 USDA registered farmer s markets Source; USDA / AMS 2017

20 Organic Sales +8.4% in 2016 conventional +3.3% Nearing 10% of total produce sales 40% of total organic food sales Driven by younger generations Millennials Generation X Generation Y Sustainability is expected Billions Thousands Organic Retail Sales Certified Organic Farms Source; Food Business News, May 2017

21 Retailer and Supplier collaboration Coordinated and balanced team efforts jointly creating customer value creating a seamless supply line More effective communication better understanding of each other s roles New communications streams for speed and clarity Increases in forecast accuracy both in production and retail selling improved planning and efficiency Still a wide gap those working together gain competitive advantage old buy-sell model will become increasingly outdated accountability increasing on both sides

22 Retail learning pricing and elasticity Improved systems yielding results more granular pricing competitive targeting more balance across categories Elasticity tools change old myths cucumbers labelled as inelastic learnings show real price lift value new decisions on price investment A few get it competition at retail is fierce when a few move, the rest follow Collaborative efforts are required

23 Retail inventory and waste control efforts Broad based, industry effort retail corp. chain stores sustainability and profit driven seeking competitive advantage Reduced inventory on-hand in stores in distribution centers Benefits fresher product more shelf life to customers faster turns, higher efficiency Challenges out of stocks, DC and/or store substitution / conversion required

24 What s making things happen... Explosive growth in locally grown Momentum in organic products Supply chain teamwork is HUGE for everyone Improved data is driving retail to act differently supplier management pricing inventory

25 Future Outlook GET READY!

26 All of the above.... Healthier eating habits Demographic shifts Snacking craze Local and organic Supply chain collaboration Reducing sustainability footprint

27 Alternative uses... Fresh cut / value added cucurbit family successes what will add consumer value to cucumbers? Non-consumptive products health and beauty care

28 Health Benefits of Cucumbers.... Hydrates the body Regulates blood pressure Promotes joint health Flushes out toxins Reduces cholesterol Regulates body temperature Aids digestion Relieves constipation Regulates blood alkalinity Relieves sunburns Promotes hair growth Prevents bad breath Heals diseased gums Soothes muscle pain Builds connective tissues Low in calories High in Vitamins A, B1, B6, C & D, Folate and Calcium Source; EcoNugenics 25+ on Cucumbers

29 Comments / Questions OPEN FORUM