Wal-Mart senior vice president, perishables Bruce Peterson believes the US giant can learn a great deal from its Asda supermarket chain in the UK.
Speaking at the inaugural Re:Fresh Conference last week, as part of a lively final session with Bryan Silbermann, president of the Produce Marketing Association, Peterson said that Asda is “one of the finest retailers in the world”.
He said that it is now important that retail chains across the world focus on pleasing and delighting its consumers, adding: “Wal-Mart’s customers have to be satisfied with the purchases they make.”
The duo also stressed that in this age of rising obesity, consumer fears have changed. In 1985 the big issue that concerned consumers was sugar, while in 2003 carbohydrates had become the major issue, in large part due to the Atkins diet. However the two men are sure the Atkins bubble will soon burst.
According to Peterson there are four certainties of the future, which need to be addressed to make produce a hit. He said: “For items to be successful we have to provide value, convenience, indulgence and health/well being. We need to get across to the consumer that produce tastes great and act upon indulgence. Produce appeals to consumers across all of the five senses... If you offer products that have high nutritional value, they have to taste good as well.”
Silbermann added that health and well being is not enough to change people’s behaviour and additional factors have to play a part. He said: “Factors such as flavour and texture are being taken for granted.”
Peterson and Silbermann pointed out to delegates that there is a menu of opportunity for produce in the foodservice sector on both sides of the Atlantic. Foodservice is now the fastest growing segment, now as big as retail. Peterson said: “There are huge opportunities for fresh produce. We are living in a time-poor society. The meaning of ‘fresh’ is changing. Making a fresh salad means opening a bag, cooking is almost getting relegated to hobby status and increasing numbers of consumers are opting to eat out.
“Many suppliers are saying that the majority of their business is going to those in the foodservice sector, to match up with the growth in eating out.”
Peterson also predicted that produce could prove to be the saviour of the fast food industry. He said: “A host of lawsuits against fast food chains acted as the catalyst. The emergence of fast food entrée salads and fruit and veg has led to a recent rise in profits at chains.”
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