From Tommy Leighton in California
PMA president Bryan Silbermann, listed as one of the top 50 drivers of the US food industry, called on the produce industry to deliver a more consistent experience to consumers, in order to take advantage of a growing and evolving marketplace.
Silbermann told Fresh Summit delegates that foodservice consumer spend is now on a par with the retail equivalent in the US market and that 878,000 foodservice outlets now sell $474 billion worth of products. The US has the most developed foodservice sector in the world.
"Retail is still evolving around the world and foodservice is still emerging. It is becoming a much more potent marketplace sector outside the US. Foodservice is growing faster than retail, but it is less consolidated and will remain so for quite some time. The sector has done a very good job of cutting the gap between food you eat out and food you prepare at home," he said.
"But we still treat it as a step-child."
He predicted that the foodservice sector will bring produce more towards the "centre of the plate" in the next decade. PMA research suggests that 49 per cent of restaurateurs believe produce is 'very important' to the future of foodservice, 70 per cent believe that the number of fresh produce items in foodservice will increase and 65 per cent think that healthy options on restaurant menus will increase in perceived value.
"Produce improves the 'value perception' of a meal and lowers the plate cost," said Silbermann. "The bottom line is that we [the produce industry] are improving the bottom line for restaurants."
He added that the emphasis of foodservice customers on long-term supply contracts - which has not been a dominant feature of the US retail sector to date - is changing the role of the supplier. "It's not what you grow, but what you know that stands you apart as a supplier and decides who are the winners and losers," said Silbermann.
And quality of produce remains key to its success in the market. "One of the things that we often lose sight of though, is that it is the consumer who defines quality, we don't," he opined. "There are a number of criteria we have to better align ourselves with."
He listed the top criteria cited by consumers as taste, convenience, experience, variety, consistency, colour and health. "I leave health until last on that list because healthy eating is critical, but most consumers will not give up the other factors on the list to buy or eat foods because they are healthy. Rice cakes, for instance, are not the opiate of the masses.
"The health message alone is never going to be effective," he said before quoting "the fear of dying is not a great motivator, the joy of living is" as a phrase that food marketeers should keep close to their hearts.
Price is less of an issue if you can consistently deliver great taste, he added, saying that consumer research tells PMA that in-store tasting and cross-merchandising are highly efective tools. "Fifty per cent of women have switched grocery stores because one offers more consistent tasting fresh produce than the other," he said.
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