Shoppers Want More Value-Added Spuds

Packaging, prep and convenience driving new sales of an old friend.

Value-added potatoes are a convenience category unlike other fruits and vegetables — it’s less about fresh cuts, and more about creating ways to make spuds easier to prepare and enjoy.

While true convenience products are still a small proportion of overall potato volume, a number of factors — smaller families, the popularity of quick-cook and single-pan recipes and, in an important development, countertop air fryers — is triggering a range of value-added potato items.

At Super Foodtown in the Bronx, NY, community of Throggs Neck, bagged baby spuds get a high-profile placement adjacent to the main potato display. Managing Partner Harry Celentano says the middle-class, multi-ethnic community requires the store to carry products for a variety of needs, but convenience has become more important across his customer base.

When it comes to potatoes, the company offers Little Potato Co. bags in yellow and red varieties and also a multi-color pack. The smaller scale product is placed on the end of the run, behind the main potato and onion display. Although he still has 5-pound bags of potatoes on an endcap, Celentano says consumers demand having convenient alternatives available at all times.

“That’s the way the consumer is now,” he says.

HOUSEHOLD SHIFT IS DRIVING CHANGE

It’s incredible that the smaller potatoes have only been around since about 2007, says Ross Johnson, vice president, retail and international, at the Idaho Potato Commission, Eagle, ID. As such, a consensus on how to position them within a potato category that’s still dominated by russet sales hasn’t emerged.

“The category has been the most difficult for category managers to understand,” Johnson says. “Since Idaho covers potatoes all over the country, we see retailers who have a sole focus on growing just the baby potato category with a single partner to retailers who are carrying products from up to five different suppliers.

“Yes, it is true that consumers are loving to utilize the baby potatoes more and more each year. However, they still make up less than 20% of dollar sales in the category.”

Marc Turner, general manager at Bushwick Potato Commission, Farmingdale, NY, says value-added potatoes are part of a shift in household dynamics. Fewer consumers are purchasing for large families, and go through potatoes more slowly. The decreasing demand for 10-pound bags and the increased prevalence of 5-pound bags has been part of the potato category evolution for some time, and 3-pound bags are the biggest spud sellers for many retailers today.

“The value-added potato I see as having more of a growth trajectory would be the smaller potatoes, whether fingerlings or C-size potatoes,” says Turner. “They’re smaller potatoes and cook up faster.”

Johnson emphasizes retailers have to take a balanced approach to the potato category. Russets remain the category driver and should be a focus of promotion because of their ability to build the bottom line. However, he adds, the baby potato segment doesn’t cannibalize the more established russets, red, or yellow varieties, “meaning that shoppers will actually purchase both options on the same shopping trip.”

FRESH FOODS FAST

When it comes to selling value-added products or positioning potatoes today, it’s all about convenience.

“Consumers are looking for convenience and new ideas on how they can prepare potatoes and other produce items that they love,” says Christine Lindner, marketing manager, Alsum Farms & Produce, Friesland, WI. “Grower/packer/shippers are responding to the changing consumer taste and preferences by introducing value-added potato products to provide the consumer with ready-to-serve, healthy potato offerings to meet the growing trends for fresh foods fast.”

Lindner says the company’s potato varieties have shifted, with “huge growth” of yellow potato and petite categories the past three years. “As a result, Alsum Farms has added more yellow potato and petite red and petite yellow acres that were previously red potatoes.”

“Consumers are demanding ‘healthy convenience’ now more than ever,” says Jessica Hughes Anderson, director of innovation at EarthFresh, Burlington, Ontario. “Busy work and family lifestyles have influenced consumers to choose a quick healthy solution when planning meals. Potatoes don’t necessarily have to take a long time to prepare and cook, which is contributing to the growth in the baby potato market and the baby potato value-added product offerings: microwave/oven/grill-ready products.”

She says EarthFresh responded to this demand by developing fresh, healthy, quick solutions like its Steam & Go and Fast.Fresh.Gourmet line of products.

“With launching the oven/grill trays in 2023 and soon after, the one-step microwave bags in 2024, we are excited and ready to launch our microwave trays in 2025. All of these products are available in Canada and the United States.”

Value-added products are expanding across the potato category, says Rachel Atkinson-Leach, vice president, brand & category excellence, RPE, Bancroft, WI.

“Whether it’s wrapped, in a micro bag or in a tray, you’re seeing more choices in the types of potatoes: fingerlings, russets, yellow, bite-size,” she says.

Smaller potato varieties will, for the foreseeable future, play a role in bringing convenience to the potato category, Atkinson-Leach adds. “By design, bite-size potatoes have thin-skins, no need to peel, and are a quick/easy prep. All of these factors mean more bite-size potatoes end up in sheet pan, Crock-Pot, easy recipes to save time and add convenience.”

NEW KINDS OF CONVENIENCE

Air fryers have become more popular lately and have helped to improve sales in multiple produce product categories. However, the microwave is still an important driver of value-added potato sales.

“Microwave-ready potatoes steamed in bags or trays offer consumers a healthy, quick, and convenient potato offering that can be seasoned based on consumers’ taste and preference,” Alsum’s Lindner says.

Atkinson-Leach agrees. “We continue to see growth in the micro-tray value-add potatoes. The all-in-one microwaveable tray with potatoes and seasoning has been steadily growing for the last several years.”

Bushwick Potato Commission’s Turner says increasingly popular air fryers work well for folks who want to throw in a few small potatoes and some seasoning. As such, even without purpose-made packaging, retailers have an opportunity to attract convenience-oriented consumers by suggesting use and recipes that feature quick cooking. Turner says in his own cooking he has made a potato dish more fun for the family by taking potatoes of different colors and preparing them in the air fryer.

Turner says it makes sense for suppliers and retailers to team up on promotions that focus on air fryer use.

“We can promote recipes or just promote potatoes as perfect to cook in the air fryer, to make things quicker and easier. The really great thing about potatoes is that you don’t have to use them right away,” Turner says.

Still, microwaving has made potatoes more convenient for some time, so reiterating the ease of preparation and coupling that with ideas and recipes that produce new dishes consistent with eating trends can revive sales associated with the cooking method. Turner says the microwaving prep method isn’t going away, with some value-added products specifically packaged as microwave-ready.

“The good thing about potatoes is they’re so versatile you can do a million things with them,” Turner says. “It’s almost too open ended.”

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Value-Added Potatoes Give Instant Refresh to Potato Category

Because convenient, value-added potatoes can win in-store sales on impulse, profile is important.

“Always put value-added items in the potato set to give as many options to shoppers as possible,” says Rachel Atkinson-Leach, vice president, brand and category excellence, RPE, Bancroft, WI. “The highest success is reached by putting out secondary displays, endcaps and cross-merchandising with easily paired items. Make the display a meal solution or experience, like kabobs in the meat department.”

Retailers that get the most of their investment into value-added potatoes are going to be those retailers that merchandise and promote them conspicuously.

“This is an opportunity for retailers to capture a higher price per pound on a value-added potato offering versus bag product,” says Christine Lindner, marketing manager, Alsum Farms & Produce, Friesland, WI. “Value-added potato products appeal to consumers seeking convenience and they are willing to pay for it.”

In merchandising terms, Lindner says, the potato category today is a new animal that offers a range of selling opportunities. Retailers can promote potatoes up front, or with potato signage visible from the store entrance. Raised bins are helpful, but produce managers should consider secondary locations and endcaps.

“Having a fresh, well-uniformed, and merchandised potato category with POS recipe ideas, educational signage on storage and preparation of fresh potatoes is key to increasing sales of potatoes at retail,” Lindner says. “Well lit, eye-catching, market-like potato displays are visually attractive to consumers. We eat with our eyes and attractive displays will help maximize category profit margins.”