2025 Masters of Merchandising: Cal Organic Farms (Grimmway

Insights

The organic wet rack is the powerhouse destination for fresh organic produce sales. Data from Circana showed more than 50 percent of dollar and volume sales in 2024 spent by U.S. retail shoppers on organic vegetables were selected from the wet rack. By comparison, sales of conventionally grown vegetables from the wet rack comprised 40 percent of dollar sales and 37 percent total conventional vegetable sales.

Retail sales from the organic wet rack were resilient last year with a 2.4 percent increase in dollar sales and a 5.7 percent increase in volume. This result outperformed total organic vegetable sales and total fresh produce dollar sales. The retail average price per pound for items on the organic wet rack decreased 3.1 percent in 2024 from the prior year, compared to flat pricing for total fresh produce.

Organic vegetable shoppers are very valuable to retailers.

The organic produce buyer is more likely to:

• Consume fresh produce every day

• Take multiple trips per week and spend more on a per person basis, with focus on healthy eating

• Be younger, either Gen Z or Millennial

• Shop at specialty/organic stores and online

• Have kids, particularly younger kids, ages 0 to 6 or 7 to 12

• In 2023, the average grocery shopper basket was $45.90, while the average organic produce basket size was $112.42. The average number of items in the average organic produce shopper’s basket was more than double the number of items in average shopper’s basket.

• Mid-October through May is peak season at retail for the organic wet wall. Backyard gardens and local farmers markets complement supply through the summer season. High volume periods are as follows:

• January begins to annual uptick in volume as consumers start to think health and fitness.

• Super Bowl, St. Patrick’s Day, Easter, and Earth Day bring seasonal sales spikes in volume as households accommodate friends and family.

• National Organic Harvest month in September is a time for retailers to connect with shoppers and to help them discover the many benefits of fresh organic produce.

• Thanksgiving sees the biggest spike in organic volume. Retailers should be well stocked across organic varieties to capture this opportunity.

Assortment

Assortment should focus on these areas:

• Volume Drivers – Cabbage, Cauliflower, Beets, Broccoli, Green Onions, Kale, Lettuce, Potatoes, Onions

• Growth Drivers – Baby Bok Choy, Cilantro, Dill, Parsley, Leafy Greens

• Regional Drivers – Adjust your variety mix for regional preferences

• Seasonal Drivers – Rotate seasonal favorites to encourage discovery and trial

Promotion

Broadcast to shoppers about the availability of organic vegetables with regular promotions featuring organic vegetable items to draw them into your store. Combine varieties to create themed recipe ideas.
Create an annual AD planner to support themed base promotions throughout the year while ensuring supply and minimizing out-of-stocks.

Merchandising

Sixty-eight percent of shoppers prefer retailers to display organic items in a separate section.

• Merchandise the wet wall in a visually compelling way using color and texture to create contrast and clean lines

• A variety of different vegetables and colors helps create a sharp-looking wet rack

• Keep displays well-stocked and rotate product to keep the freshest items arranged front and center

• Produce team members should learn as much as they can about the commodities displayed so they can educate consumers on usage and benefits

• Create visible product ID tags to highlight organic produce

• Supply organic marked purple bags to ensure proper scanning at checkout

Messaging

• Organic vegetables should be displayed in their own section clearly labeled with signage and channel strips

• Use signage to tell shoppers about the farmers who grew the vegetables and provide nutritional information and ideas to prepare the items

• Communicate the sustainable practices and level of care required to produce organic vegetables

• Display signage featuring trusted farms and farmers to develop a connection between the shopper and the grower

• Provide shelf talkers with inspiring recipes and cross promotional offers

• Use QR codes to educate consumers

RETAILER EXECUTION

Retailers should develop a strategic promotion plan to capture high-volume weeks and year-round opportunities. Evaluate your shopper demographics to ensure the right product mix across stores. Implement signage that highlights organically grown produce.

Contact your Cal Organic Farms sales representative or distributor for serving suggestions, recipes, and merchandising ideas to draw more shoppers to your organic vegetable set.

GRIMMWAY FARMS/CAL-ORGANICS FARMS
P.O. Box 81498, Bakersfield, CA 93308
661-845-3758
www.grimmway.com