The Whole Package
Bagged and clamshell-packed salads offer great-tasting convenience and nutrition to time-starved consumers.
Packaged salads are tried-and-true sellers. Consumers love the grab-and-go ease of these fresh, convenient greens.
In the past several years, however, the category has taken a sexier turn with innovative product introductions, inspired ingredients and exciting flavor combinations that offer a field of greens like never before.
Recent data from the Nielsen Perishables Group shows continued growth, with total packaged salad sales up 6.2 percent in dollar sales for the 52 weeks ending June 15. Dollar sales of salad kits were up 8 percent for the same time period, while total single-serve salads (conventional and organic) were up a healthy 20 percent over last year.
As summer winds down and families gear up for back-to-school, packaged salads and salad kits will undoubtedly strike a chord with parents looking to put fresh and nutritious food on the table in a flash. Retailers and suppliers alike are readying for the rush with more new products and promotions.
The Other Green Monster
Boston’s Fenway Park has its big green wall, and Ed Osowski, director of produce for Martin’s Supermarkets, in South Bend, Ind., has his. The 21-store family-owned and -operated chain features 16 feet of case sets, five shelves high, all devoted to bagged and clamshell salads.
If anyone’s ready to school the competition on the salad front this fall, it’s Martin’s. “Obviously, during the summer, salad is a huge push,” says Osowski, “but in the fall, there’s a secondary push, with the time-crunched consumer.”
While Martin’s traditional bagged salad sales are “status quo,” says Osowski, organic greens have taken off. In the past three years, the grocer has seen strong double-digit growth in organic packaged salads, a trend that Osowski attributes in part to the store’s promotional efforts. “We basically run an ad two times a month for organic, and then two times a month for conventional packaged salads.”
Additionally, the supermarket periodically runs month-long promotions that offer salads at a multiple price point, like two bags for $5. “It really generates repeat business, and to grow the whole category, you need that consumer buy-in,” he notes.
Because Martin’s already devotes ample space to the category, the grocer typically tweaks its displays for these promotions, either increasing its facings or occasionally merchandising packaged salads in a secondary area of the store.
Salad kits are also resonating with Martin’s customers hungry for a taste of something new. “Consumers are looking for different eating experiences, so I think that’s why we’ve had good success with salad kits,” Osowski says. “The diversity is part of its appeal.”
Salad Kits Hit Home
Hoping to boost the aforementioned 20 percent growth in individual packaged salad sales higher still, a number of suppliers are expanding their offerings or revamping their packaging in this dynamic subcategory.
“When you look at Nielsen [data], kits are a small segment of the packaged salad category,” says Samantha Cabaluna, VP of communications and marketing for Earthbound Farm, in San Juan Bautista, Calif. “But people who buy them are very loyal to them. The buy a lot, for lunches, etc.”
Earthbound introduced its PowerMeal salad kits, which feature plant-based proteins, several years ago. But, as the item was packaged in a clamshell identical to the one used for the company’s other greens, the idea of the PowerMeal as a single-serve meal was lost on some consumers. Eathbound now plans to relaunch the kits this September in newly designed packaging. “It will be much more clear that it’s intended for single-serve,” notes Cabaluna, who adds that an Asian salad kit is also coming soon.
Ready Pac Foods is bowling over consumers with its Ready Pac Bistro Bowl Salad line in both adult and kid-friendly varieties. Bistro Bowls are a convenient and healthy meal solution, says Tristan Simpson, senior director of marketing and corporate communications for the Irwindale, Calif.-based company, “especially when it comes to busy families with clashing schedules.”
In terms of back-to-school, Simpson notes that Bistro Bowls “are particularly great for pantry loading, providing hassle-free lunch solutions for kids that will stay fresh all week.”
Ready Pac recently expanded its popular Bistro line to include organic, USDA-certified offerings. The four new recipes within the Bistro Organic line are Organic Cranberry Walnut, Organic Chicken Caesar, Organic Southwestern Style, and Organic Honey and Mustard Baby Spinach.
Whether the item is an individual salad kit or a larger package targeted at families, affordability is also part of salad kits’ allure, asserts Simpson. Many of today’s premium salad kits contain ingredients such as cheese, meats, nuts, seeds and grains that if purchased separately, would add up quickly. “Ready Pac Complete Salad Kits are perfect for providing a high-end salad solution without consuming time or breaking the bank by loading up your shopping cart with expensive ingredients,” she notes.
Baby Boom
Sweeter and more tender than their mature counterparts, baby greens have tremendous consumer appeal. The increased availability of pre-washed and nutritious greens are helping to move produce from sidekick to central player at mealtime.
“People are using greens like our new Zen Blend [a mix of baby Asian greens, chards and spinach] for more than salads. They’re using it in all types of cooking, soups and sautés,” notes Earthbound’s Cabaluna.
Or take arugula, for example. “It’s used in lots of different types of dishes, from wraps to pizza. It’s almost used as an herb to add flavor to things,” continues Cabaluna. “Ten years ago, arugula was a blip on Nielsen tracking. Now it’s a huge seller — it’s one of our top three.”
The popularity of superfoods or power greens, like kale, spinach and chard, along with baby versions of these dark, leafy nutritional dynamos, is also spurring the use of more greens in center-of the-plate dishes.
“We’re really training people to expand their horizons that packaged greens aren’t just for salad,” says Cabaluna. “It’s interesting to see how we’re starting to think of this category as packaged greens, not just packaged salads.”
With their delicate texture and delicious flavor, baby greens are integral to the surge in packaged greens/salad sales. “People want their greens with higher nutrient density, but they also want them to taste good,” asserts Cabaluna. “They don’t want to chew weeds.”
To help consumers better distinguish between Earthbound’s salad greens and its Deep Greens line, the company is redesigning the artwork for its blends. “The new look will make it much easier for the consumer to see that those greens live together and to differentiate them from our salad greens,” Cabaluna explains.
Complementing this irresistible combo are the store’s selection of both conventional and organic salad dressings, displayed next to the packaged salads in a 4-foot-wide, six-shelf-high case. Croutons, seeds and nuts are there for the taking as well.
A Juicy Opportunity
The juicing trend is another factor driving sales of packaged greens like never before. According to the Port Washington, N.Y.-based NPD Group, sales of juicers were up 46 percent in the 12-month period ending March 2013 over the previous year. The market research firm puts the juice extractor category at more than $200 million in sales per year.
“There’s a big juicing trend going on right now,” confirms Martin’s Osowski. “Consumers are buying things like baby kale, spinach and the Earthbound Zen Blend, and incorporating them into their juicing repertoire.”
“It’s such a hot trend,” concurs Cabaluna, who says that baby kale, in particular, is a natural for the juicing craze. People know kale is healthful. Baby kale is more tender and doesn’t have the bite of mature kale. With our packaged baby kale, you don’t have to wash or prep it. It’s ready for the juicer.”
Taylor Farms, in Salinas, Calif, is capturing consumer imaginations and sales with baby kale packages featuring a salad and juicing recipe on every package.
Chopped Sensation
A new subcategory in packaged salads is well positioned at the epicenter of another burgeoning food trend: the chopped salad.
Last month, in a story spotlighting the meteoric rise of chopped salad as a lunchtime favorite, The New York Times reported that even Big Apple-based drug store chain Duane Reade has begun serving the sought-after dish. The fad has taken the city’s fine-dining, fast-casual and fast-food eateries by storm.
The chopped-salad sensation is just as hot in the supermarket produce case, notes Christina Barnard, Taylor Farms’ director of marketing. Two years ago, the family-owned company was the first to launch a line of Chopped Salad Kits in three varieties: Garden Vegetable, Asian and Southwest. A little over six months ago, Taylor introduced BBQ Ranch, and most recently it debuted an Italian Chopped Salad to round out the flavor-packed product line.
While salad category growth overall has returned to double digits, primarily driven by organic salads and kits, says Barnard, kit segment growth has been driven by the introduction of chopped salads.
“The consumer response has been phenomenal,” she says of chopped salads. So phenomenal, in fact, that Taylor Chopped Salads created a $100 million dollar segment in all outlet retail sales this year, and in the past two years, the salads experienced exponential growth of more than 1,000 percent.
“It’s interesting to see how we’re starting to think of this category as packaged greens, not just packaged salads.”
–Samantha Cabaluna, Earthbound Farm
“Obviously, during the summer, salad is a huge push, but in the fall, there’s a secondary push, with the time-crunched consumer.”
–Ed Osowski, Martin’s Supermarkets