Six Ways to Sell More Spuds

Retailers are allocating more space to potatoes, with a combination of bins, tables and vertical shelving.

Potatoes are one of the best-selling produce items at Corner Market, a 14-store chain based in Hattiesburg, MS, according to Olin Williams, area produce manager who took first place in the 6- to 9-register category in the Idaho Potato Commission’s (IPC) Potato Lover’s Month (PLM) Retail Display Contest in February.

“They are a staple item that you can always count on being on customers’ lists,” says Williams.

U.S. potato growers in 13 states, including Idaho, Washington and Wisconsin, grow the bulk of the 41 to 45 billion pounds of spuds annually, according to the Washington, D.C.-headquartered National Potato Council’s 2024 Annual Potato Yearbook. Over a quarter (26%) of these go to fresh market sales.

The U.S. Department of Agriculture’s (USDA) Economic Research Service estimates total potato production for the 2024-2025 season will be 3% lower than last year, but 4% higher than 2020-2022.

“It’s not a bumper crop this year, but it’s a solid crop. For us, and the industry as a whole, quality looks good with good size profiles,” says Mike Carter, chief executive officer at Bushman’s Inc., in Rosholt, WI, and 2023-2024 chairman of the board of Potatoes USA, the Denver, CO-based marketing and promotion board for the potato industry.

Potatoes contributed 6.6% of the produce department’s vegetable dollar sales, down 1.8%, and 14% of volume in pounds, up 2.4%, during the 52 weeks ending July 14, 2024, according to Chicago, IL-headquartered Circana LLC data as shared by Potatoes USA.

Here are six ways to sell more spuds:

1. OFFER A BUFFET OF VARIETY

One of the biggest things Corner Market’s Williams says he learned from building his winning display is that customers love a large variety of potatoes and potato products to choose from. “The more variety you carry, the more you’ll sell.”

Russets remain the best seller at B&R Stores, a 32-store chain based in Lincoln, NE, which operates under the Russ’s Markets, Super Saver, C&R Market, Grand Center Apple Market, Allen’s, Joe’s Fresh Marketplace and Mason’s Supermarket banners, according to produce director, Randy Bohaty.

“They are universal in their use. Bake, boil and grill; they are an easy side for dinner. However, we’re seeing more variety from growers and interest by shoppers in both mainstream and specialty potato products.”

Russet potatoes represented 51% of category dollars and 63% of pounds during 52 weeks ending June 30, 2024, according to Circana data as shared by Potatoes USA.

“The russet Burbank is the most asked-for russet variety for us,” says Ryan Bybee, sales manager for GPOD of Idaho, in Shelley, ID.

Caribou russets grown in Maine are a newer variety with better taste, appearance, yields, and storability, says Ken Gray, vice president of sales and marketing for the Bushwick Potato Commission, in Woodbury, NY, which celebrates its 90th year.

“We offer a locally grown initiative on the East Coast,” Gray adds. “For example, the Caribou russets have the Real Maine logo on the KwikLok. A QR code links to more information about the potatoes and the farm where they were grown.”

Yellow potatoes have surged in sales, overtaking red-skinned for the No. 2 spot in sales and volume, says Ted Kreis, grower representative for Red River Valley Potatoes, in East Grand Forks, MN.

Yellow potatoes represented 18% of category dollars and 16% of pounds during 52 weeks from July 3, 2023, to June 30, 2024, according to Circana data shared by Potatoes USA.

Potandon Produce LLC offers a non-GMO yellow potato called CarbSmart with 30% less carbs than a standard potato and less than half the carbs of a serving of rice or pasta. “We are hoping it can serve those who are not only looking to eat healthier, but also those with dietary restrictions such as those living with diabetes,” says Sean Davenport, marketing manager for the Idaho Falls, ID, company.

Red potatoes were 15% of dollars and 12% of pounds per Circana data.

Russets and reds grow well in Pennsylvania, where 5% of the crop is sold to fresh market retailers and restaurateurs, according to Lela Reichart, vice president of sales at Sterman Masser Potato Farms, in Sacramento, PA. “Yellows and whites are always fresh and of the highest quality for eastern markets when harvested in the state.”

An advantage to Pennsylvania, adds Nathan Tallman, chief executive officer of the Harrisburg, PA-based Pennsylvania Co-Operative Potato Growers, “is we can repack and do mixed order trailer loads of russets, yellows, reds and whites.”

White potatoes comprised only 4% of category dollars and pounds, according to Circana data.

“SKU optimization in the potato category is increasingly data-driven, with retailers focusing on a balanced mix of varieties, sizes, and packaging that caters to their customer base,” says Drew Callaghan, executive vice president of RPE Inc., in Bancroft, WI.

“Core assortments typically include staple varieties like russets, yellows, and reds, complemented by specialty potatoes and value-added products to attract niche markets,” Callaghan says. “Regionally and seasonally, the mix adapts to local preferences and peak harvest times, optimizing stock for high-demand periods like holidays.”

2. SELL CONVENIENCE

One of the most significant sales transitions B&R Store’s Bohaty has seen in the potato category is toward convenience. “Small, quick-cooking, creamer potatoes of all colors are now mainstream, as are value-added potato products that take minutes to prepare and have seasonings included.”

Petite potatoes represented 8% of category dollars and 3% of pounds from July 2023 to June 2024, based on Circana data shared by Potatoes USA.

One of the newest introductions in this market is bite-sized potatoes from RPE Inc. called Tasteful Selections Nibbles. These come in yellow, red, yellow and red, and yellow, red and purple combinations in 1-pound packs.

The Wada Farms Marketing Group is developing its mini potato program into one with a 12-month supply, according to Kevin Stanger, president of the Idaho Falls, ID, company. “We have teamed up with growers around the company, such as in Idaho, California, and Arizona, to provide a year-round supply of mini red, yellow, and medley potatoes in 1- to 1.5-pound bags.”

Value-added potatoes, which include bite-sized and bigger potatoes such as microwaveable russets, offer retailers an opportunity to capture a higher price per pound versus a bag product. One of the newest examples is Amazables! from Fresh Solutions Network, LLC, in Newport Beach, CA. Six-ounce russets are microwavable in proprietary packaging that leaves skin “oven-crisp.” These come with two sauces: Buffalo Ranch and Loaded.

3. OFFER ORGANIC

Organically grown potatoes are a small, but in-demand, part of the category that represented 5% of dollars and 3% of pounds, according to 52-week Circana data.

“Wisconsin organic russet, red, and yellow potatoes harvest in August and are available through the end of January, says Christine Lindner, marketing manager at Alsum Farms & Produce Inc., in Friesland, WI.“We started our organics program in 2000, and volume and sales dollars have doubled in the last five years. Gen Z and Millennials are an audience that prefers russet, red, and yellow potatoes in 3-pound and 5-pound packs and continues to embrace the organics potato category.”

4. PICK YOUR PACKS

Bagged potatoes are hands-down big sellers over loose bulk. Bagged potatoes totaled 79% of category dollars and 87% of pounds from July 2023 to June 2024, according to Circana data.

“We sell a lot of 5-pound bags of potatoes,” says Marc Goldman, produce director for Morton Williams Supermarkets, a 17-store chain headquartered in Bronx, NY.

Five-pound bags made up roughly half of the sales, at 49% of dollars and 57% of pounds, based on Circana data. One- to 2-pound bags represented 20% of dollars, up 4.7%, but only 7% of volume, while 10-pound bags commanded 13% in dollars, down 6.6%, but were virtually flat at 22% in volume.

“While 5- and 10-pound bags still hold court, we’ve seen a growth in 1-, 2-, and 3-pound pack sizes, coinciding with the mini potato category growth. Most retailers have brought back more of the larger pack styles post-pandemic, but many have adjusted their category footprint with smaller pack sizes. There are more options than ever before in the potato category,” says Potandon’s Davenport.

For example, sustainable packaging, which is recyclable or compostable, is a trend in the potato category, says Kathleen Triou, Fresh Solutions Network president and chief executive officer. “We use BioFlex, which is recyclable and breaks down into gas and soil in compost. Other trends include see-through packaging to see product quality quickly.”

5. CREATE EYE-CATCHING DISPLAYS

Investing in a staple potato display by giving it a prominent position and substantial space can pay off in sales. These are lessons learned by two of the IPC’s PLM Retail Display Contest winners this year.

“We built our grilling-themed display at the front of the store and had it there for a week,” says Ken Marske, produce manager at the 80,000-square-foot Schmitz’s Economart, a single independent retailer based in Spooner, WI. Marske earned first place in the 10-plus register category.

“It (the display) took up room, but it was the first thing customers saw when they entered the store, and the potatoes sold faster in that location.”

Going big is what the Corner Market’s Williams wanted to do with his display. “I had already made a giant baked potato, complete with tin foil and toppings, but I wanted to have something even bigger to carry it. So, I made a pickup truck display featuring our store’s logo. It was adorned with an Idaho license plate and multiple potato-themed bumper stickers.

“We went huge with the amount and the varieties of potatoes and dried potato products for the display. The reaction from customers was overwhelmingly positive, with several stopping to take pictures and, of course, buy potatoes.”

One of the key findings of a comprehensive merchandising best practices study recently conducted by Potatoes USA with IRI underscored the benefits of going big with a potato display.

“Top retailers allocated more space to potatoes, on average 15 feet for all fresh potato types, which is 2 feet more than middle performers and 4 feet more than bottom performers,” says Kayla Vogel, Potatoes USA’s senior global marketing manager for consumer and retail.

more space to potatoes, on average 15 feet for all fresh potato types, which is 2 feet more than middle performers and 4 feet more than bottom performers.”
—Kayla Vogel, Potatoes USA, Denver, CO

A combination of bins, tables, and vertical shelving help call out potatoes to shoppers, says Potandon’s Davenport. “Similar to the potato options, diversity in merchandising helps consumers identify and access potatoes in numerous ways. Endcaps and secondary displays are also great ways to call out newer items, especially if they are near other grocery items like the meat or deli department to help with meal solution ideas.”

Research shows that featuring prepared potato dishes encourages purchases of fresh potatoes, says Dana Rady, director of promotion, communication, and consumer education for the Wisconsin Potato & Vegetable Growers Association, in Antigo, WI. “Any recipes or images that feature unique and creative ways to use different varieties of potatoes are very appealing to consumers.”

6. PROMOTE BY & BEYOND PRICE

Based on recent IPC research, 90% of shoppers pre-plan their potato purchase trips. “Sixty percent of these shoppers compare fresh potato prices before going to the store,” says Ross Johnson, the IPC’s retail and international vice president. “We try to emphasize this because potatoes are basket builders. Plus, the commission has a program where we pay retailers that use the Certified Grown in Idaho logo in their ads. Many retailers use it as part of an in-store sales contest.”

About three-fourths of potatoes are purchased at full price, although potatoes are one of the best bargains in the store, says Potandon’s Davenport. “However, well-timed promotions and/or ads to remind consumers to purchase potatoes is better than training them to look for big discounts on potatoes.

“Fall and winter are typically the highest volume months for potatoes, so running promotions during the early spring and summer is usually recommended instead of when potatoes already sell well.”

Beyond price, another way to continue to drive new shoppers to purchase potatoes is elevating fresh potatoes year-round based on holiday recipe inspiration by food/lifestyle bloggers that can influence the target market to help pull the product through the channel, recommends Alsum Farms & Produce’s Lindner.

“Additionally, retail dietitians help influence consumers by sampling healthy potato recipes in-store and sharing information about potatoes’ health and nutrition benefits. Retail dietitians may also offer a virtual or in-person cooking class that provides how-to inspiration and drives repeat purchase.”

• • •

Wisconsin: The Heartland’s Potato Powerhouse

Quality and quantity, combined with closer proximity to the East Coast population centers, are top advantages for Wisconsin, the No. 3 potato-producing state in the U.S., behind Idaho and Washington to the west.

In 2023, the Badger State produced over 2.8 billion pounds of potatoes valued at $400 million, according to the Wisconsin Potato & Vegetable Growers Association (WPVGA) in Antigo, WI. Some 38% of Wisconsin’s spud crop is sold on the fresh market.

“The state’s favorable climate and rich soils contribute to high-quality and abundant potato production,” says Drew Callaghan, RPE Inc. executive vice president, in Bancroft, WI.

“Wisconsin’s significance as a potato-growing state stems from its central location, which streamlines transportation and distribution across the country. For retailers, this means reliable access to fresh, premium potatoes, benefiting from both the quality and the efficient distribution network.”

The organic black muck soil in southeastern Wisconsin is ideal for red potato production. Red varieties like Red Norland and Dark Red Norland thrive in Wisconsin. However, growers in the state now raise multiple varieties — russets (Silvertons and Norkotahs for the fresh market), reds, yellows, fingerlings, and blue and purple specialty potatoes — to meet the needs of retailers.

“Wisconsin is a one-stop-shop for potatoes. We make it easier for retail buyers that way,” says Mike Carter, chief executive officer at Bushman’s Inc., in Rosholt, WI, as well as the 2023-2024 chairman of the board of Potatoes USA, the Denver, CO-based marketing and promotion board for the potato industry.

“Wisconsin is a one-stop-shop for potatoes. We make it easier for retail buyers that way.”
— Mike Carter, Bushman’s Inc., Rosholt, WI

Growers have shifted their varietal mix to include more yellow varieties like Yukon Gold and fewer red potatoes, says Dana Rady, the WPVGA’s director of promotion, communication, and consumer education. “This trend is occurring throughout North America and is responding to consumer demand.”

This season, Rady adds, early harvest on some varieties began at the end of July, starting in the southern part of the state and gradually moving north. Harvest then continues through early October. “With roughly 65,000 acres planted, the 2024 crop shows varying size, but good quality as of the third week of August.”

The growing season experienced more rainfall than usual, with some low-lying areas becoming quite saturated. As a result, Ray says growers expect a 5 to 10% loss of acres due to the excessive moisture.

Only a small percentage of the state’s potato volume is grown organically, according to the WPVGA. However, growers participate in programs like Healthy Grown, a sustainability effort launched by the WPVGA in 2002, in partnership with organizations such as the World Wildlife Fund, as a new brand and sustainable standard for growing potatoes. Today, participating farms are certified by an independent oversight organization.

“Wisconsin’s fertile soil lends itself as an ideal place to grow eco-friendly potatoes,” says Christine Lindner, marketing manager at Alsum Farms & Produce Inc., in Friesland, WI. “We grow, nurture, and harvest potatoes that make their way to the dinner tables of Americans using the Wisconsin Healthy Grown Program.”

Alsum Farms grows 3,000 acres of Wisconsin Healthy Grown Certified russet, red and yellow potatoes. “This eco-friendly program has guided our farm sustainability practices for nearly 30 years, utilizing Integrated Pest Management to efficiently manage inputs and implement conservation practices that enhance biological diversity.”

Challenges such as weather variability and market competition can arise. However, says RPE’s Callaghan, “these challenges can be mitigated by leveraging a Wisconsin locally grown program and in-store signage to boost consumer appeal and sales. Additionally, growers offer substantial marketing support, including promotional materials and cooperative marketing campaigns, to further enhance retail visibility. By addressing these challenges proactively, retailers can capitalize on Wisconsin potatoes’ unique advantages.”

• • •

Idaho: The No. 1 Potato-Producing State in the US

Russets in 5-, 8- and 10-pound bags; yellow-fleshed and red-skinned each in 3-pound bags; creamers in 1.5-pound packs, plus 60-count loose bakers; 4-pack overwrapped russets; dehydrated flake; and sliced potatoes with flavors like garlic, butter and herb and au gratin. These were just some of the bounty on display in February at the front entrance of Schmitz’s Economart, a single independent retailer based in Spooner, WI.

What every product had in common was the Grown in Idaho seal. The display not only highlighted the bounty of potato products grown in the Gem State but earned produce manager, Ken Marske, first place in the 10-plus register category in the Idaho Potato Commission’s (IPC) Idaho Potato Lover’s Month (PLM) Retail Display Contest.

“The display was a big draw for customers as everyone recognizes the Idaho name,” says Marske, who has been in the prize-giving for the 13 years he’s entered the annual contest.

Idaho is the No. 1 potato-producing state in the U.S.

“The rich, volcanic soil with warm days and cool nights give our Idaho potatoes the best environment to grow,” says Sean Davenport, marketing manager for Potandon Produce LLC, in Idaho Falls, ID. “Sometimes the winters can get very cold in Idaho and surrounding areas like I-80 in Wyoming, stressing the transportation of buying and selling potatoes. However, with good planning, effective communication with our growers, and attention to weather patterns in the winter months, a delay in shipping by a day or two will not cause a major disruption for our retail customers.”

“The rich, volcanic soil with warm days and cool nights give our Idaho potatoes the best environment to grow.”
— Sean Davenport, Potandon Produce LLC, Idaho Falls, ID

Greater planted acreage in Idaho for the 2023-2024 season, representing a little over a third of the nation’s total spud acres, produced a bumper crop of over 14 billion pounds. This season, fields planted in the Gem State are down, according to the U.S. Department of Agriculture’s (USDA) National Agricultural Statistics Service’s June Acreage Forecast. Some of this is due to crop rotation, which naturally enhances the soil’s nutrient density.

“This isn’t a bad thing,” says Kevin Stanger, president of Wada Farms Marketing Group LLC, in Idaho Falls, ID. “Last year, we had an oversupply. This year, there should be a good supply without outrageously high or low pricing. Plus, test digs at the beginning of the season indicated good quality and sizing.”

Approximately 40% of Idaho’s potatoes are sold on the fresh market.

“Idaho is unique because it has more shippers than any other state. We are also the only state with third-party inspections by federally trained USDA inspectors in each production facility, so all growers are on a level playing field. Idaho has a standard to ensure consistent sizing in every bag and to meet the size specs of retail customers,” says Ross Johnson, vice president of retail and international for the Eagle, ID-headquartered IPC.

Idaho is the largest shipper of russet Burbank potatoes, says Ryan Bybee, sales manager for GPOD of Idaho, in Shelley, ID. “That is the potato that made Idaho so famous because of its versatility and consistency.”

However, the state has diversified its potato plantings to match consumer demand.

“It’s impressive how our multigenerational farms have adjusted to grow more of what is in retail demand,” says Johnson, adding Idaho is the No. 1 volume supplier of yellow potatoes in the U.S., and more than 10,000 acres in Idaho are dedicated to growing red-skinned potatoes, and fingerlings are available in assorted colors and varieties.

“Many shippers used proceeds from the robust pricing they received during the 2020-2021 pandemic season to invest in their facilities to pack this greater variety of potatoes,” says Johnson.