Category Spotlights

Cooking vegetables have a growing presence in the produce department. While they comprise less than 5% of department sales, solid dollar gains occurred across most types of cooking vegetables in the past year. Packaged and value-added products were a significant driver of the category’s growth.

 

Cooking Vegetables:  Year in Review

Cooking vegetables accounted for 4.3% of produce department sales during the 52 weeks ending June 25, 2011, and sold an average of $1,798 per store per week nationally, up 5.4% compared to the prior year.

Broccoli and asparagus, which accounted for more than 50% of the category, helped drive dollar sales with respective increases of 5.4% and 5.2% in the latest 52 weeks, on par with the average cooking vegetable increase of 5.4%.

Brussels sprouts, although a small percentage of the category at 2.5%, had one of the greatest sales increases, up 15.6% in dollars and 11% in volume over the previous year. Atypical for produce sales, this increase in volume occurred despite a 4.1% increase in average retail price. Brussels sprouts’ success can be attributed, at least partially, to an increased presence on television food shows, restaurant menus and in cooking magazines.

The average retail price for the cooking vegetable category was up 6.4%; however, volume declined 1% compared to last year.

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The only subcategory to decline in sales was other cooking vegetables, which include greens and fuzzy melon squash. Because this subcategory contributes less than 1% to the category, the decline did not impact cooking vegetables’ overall performance.

In the five year period from 2006 to 2010, cooking vegetables experienced a 9.9% increase in packaged product sales, which at first glance could indicate a rise in convenience purchases. However, non-packaged sales increased at a similar rate of 9.7%, a sign that cooking vegetables in general are gaining traction among health-minded consumers looking to eat nutritious meals at home.

Following a trend apparent in much of the produce department, the organic segment of the cooking vegetable category grew 11.5% in the latest 52 weeks. Helping to drive this trend was the No. 1 selling broccoli subcategory, which increased its organic sales by 10.4% compared to the prior year.

Evaluating regional differences in cooking vegetables, the East led sales with $2,704 per store per week. A gap of $1,419 occurred between the top-selling East region and the bottom-selling South region, which sold an average of $1,285 per store per week.

 Although the South had the lowest sales, it also had the most significant dollar increase of 7.2%, 1.8 percentage points greater than the national average growth of 5.4%.

Average retail price increased across all cooking vegetable subcategories except okra. Okra, despite a 6.5% price decline, grew in both volume and dollar sales. Asparagus and Chinese celery realized the most significant price increases.

Assortment analysis is an important component of category management. Due to limited shelf space and a continued proliferation of products, item-level analysis is constantly conducted by category managers. While analysis of item performance is critical, it’s valuable to analyze categories at a higher level to determine what product characteristics drive category performance.

The use of product attributes or product characteristics coded into the sales data allows for the roll-up of items. This roll-up enables analysis across attributes, to determine which characteristics drive category success. This type of study is beneficial when evaluating trends across markets or regions, where item analysis can be too cumbersome. Item attributes such as organic, natural, brand, package size and flavor are all critical characteristics used to understand how assortment contributes to category performance.

Package type, for example, is an attribute that allows for the comparison of packaged (UPC) versus random weight (bulk) products. As food safety continues to be top of mind for consumers, packaged produce provides some consumers peace of mind regarding what their product has touched. During the latest 52 weeks, packaged cooking vegetables grew in both dollars and volume, while random weight (bulk) products grew in dollars but declined in volume. This data does not include value-added vegetable products, such as precut vegetables or microwavable packaging.

Success of packaged cooking vegetables varied by subcategory. Broccoli and asparagus realized the greatest gains in packaged product sales, with dollar increases of 8.7% and 18.1%, respectively. Packaged root vegetables, eggplant and peas also gained dollar sales. Cauliflower and artichokes were the only cooking vegetable subcategories to decline in packaged product volume sales. 

Package size is also a valuable product attribute in understanding consumer purchasing behaviors during recent economic times. Are consumers purchasing larger package sizes as a result of eating at home more often and stocking up to freeze?  Or are consumers purchasing smaller package sizes to reduce unnecessary waste?  For cooking vegetables, the answer is clear: larger package sizes are driving category sales growth.

The majority of packaged cooking vegetable products under 15 ounces lost dollar sales during the latest 52 weeks, with only the 7.5-ounce and 8-ounce products gaining sales. Conversely, the majority of cooking vegetables above 15 ounces realized positive performance. Family-size packaging saw sales gains in all sizes except 16 ounces, 256 ounces and 480 ounces. The most significant dollar gain across all cooking vegetables occurred in 15-ounce packaging.

For the two top performing cooking vegetables, broccoli and asparagus, again the larger package sizes saw positive category performance.

Beyond assortment, comparing price points and promotional activities across attributes can further help to understand the success criteria of fresh produce items.

 

Consumer Insights:  Value-added vegetables value-minded consumers

With consumers watching every penny, products with convenience attributes and higher price points can be at risk. While value-added vegetables possess many time-saving benefits, such as precut products and microwaveable packaging, it is assumed these products are quick to be cut from the shopping lists of consumers watching their wallets. However, recent data shows these items have a solid place in shopping carts.

Across the latest 52 weeks, value-added vegetable side dishes sold an average of $553 per store per week nationally, up 8.7% compared to the prior year. Volume sales also remained strong, with 5.6% growth.

Several value-added cooking vegetables contributed to the success of these healthful snacking and meal solutions. All value-added side dishes that included cooking vegetables remained steady or gained sales in the latest 52 weeks. Value-added brussels sprouts posted average volume and dollar gains of 32.1% and 36%, respectively, selling an average of $33 per store per week. Broccoli, while flat in dollar sales, was the second highest contributing side dish to value-added vegetables, selling $67 per store per week nationally.

While today’s consumer continues to find ways to stretch their dollar, they are open to purchasing cooking vegetables that save time and provide healthful options for their family. With consumers busier than ever, finding quick ways to get fresh vegetables on consumers’ plates is a large opportunity.