In Their Words: Michael Castagnetto

What’s your take on the organic produce category and its potential?

Michael: Organic produce is a category that is enjoying broad and consistent growth. Organics are becoming mainstream, and shoppers are beginning to substitute conventional items for organic. As supply gaps decrease, retailers have a chance to build organic produce into a high growth category. Working together, we are excited to help build our customers’ business into a growth engine for years to come.

Do you expect organic produce sales to continue to climb or level off?
Michael: Organic retail sales have grown more than 10% annually over the last five years; triple the growth of conventional produce. While commodities smaller in share typically experience faster growth, six of the top 20 commodities by total retail volume have grown more than 20% annually over the last five years: bananas, squash, mushrooms, bell peppers, blueberries and cucumber.

What tips do you have to help retailers maximize sales in the organic category?

For today’s casual shopper, organic purchases are increasingly becoming more of an impulse purchase. The way that produce is merchandised makes a difference in how consumers make purchase decisions. To help increase likelihood of an impulse purchase, we recommend these merchandising tips:

What specifically does Robinson Fresh offer its retail partners to help grow organic produce sales?

Michael: Robinson Fresh brings marketing and consumer insights capabilities to retail and foodservice customers, helping them sell more organic fresh fruits and vegetables in ways that resonate with consumers.We recently completed research on the organic shopper and found that there are a few key qualities that help determine if a shopper is going to purchase organic produce. The organic shopper of today is most likely under the age of 35 or has young children living at home. Organic purchases are also highly correlated to household income; those making more than $50,000 annually are the most likely to purchase organic products.

For those likely to purchase organic produce, shoppers want easier choices. Creating a destination for organic produce can better highlight the options available and build credibility for the retailer. If a destination for organic produce is created, we recommend cross promoting with other organic items—like organic snacks or organic meat—to provide shopping convenience and to showcase the variety and broad assortment of organic items offered.