Help Shoppers Add Onions to Mealtime

Convenience and providing mealtime solutions are key to onion set evolution.

Retailers are finding new ways to grow onion sales without abandoning the category’s traditional strengths. Bulk onions merchandised alongside potatoes remain the backbone of the business, but expanded secondary displays, cross-merchandising programs, and an increasing assortment of bagged and fresh-cut products are helping retailers capture additional sales across multiple consumer needs and purchasing occasions.

Terry Fiorica, produce category merchant at Wegmans Food Markets, Rochester, NY, notes the company has a range of private label bagged product to complement bulk onions, including yellow onions, organic yellow onions, sweet onions, organic sweet onions, red onions and organic red onions.

Fiorica notes online customers are more likely to buy chopped onions vs. bagged or bulk. Year to date, almost a third of chopped onion sales have been digital, a proportion twice that in bagged or bulk.

At The Giant Company, Carlisle, PA, Chris Bush, a regional director, says onion sales also vary with occasion and location. He explains the more meat and potatoes in local diets, the more onions a store is likely to sell. Even a smaller rural supermarket, as one in Everett, PA, recently conferred to the Giant banner, needs fairly large, conspicuous onion displays in association with potatoes.

“This is definitely a meat and potatoes store,” he says.

In an interesting turn, the Everett Giant includes tomatoes in its main display of potatoes and onions, suggesting more variation in onion use, such as guacamole and fajitas.

IN THE BAG

Sloan Lott, director of sales at Bland Farms, Glennville, GA, says bagged onions create new merchandising opportunities.

“Beyond convenience, they give us a chance to tell a much bigger story than you can with bulk product alone,” he said. “With bags, we can highlight recipes, share cooking tips through QR codes, promote seasonal programs and give shoppers more information about what makes sweet onions different. It’s another way to engage consumers right at the shelf and inspire them to put sweet onions in their cart.

“Bulk onions will always have an important place in the department, but bagged onions allow us to build a stronger brand experience and create more impactful merchandising.”

“Bulk onions will always have an important place in the department, but bagged onions allow us to build a stronger brand experience and create more impactful merchandising.”

— Sloan Lott, Bland Farms, Glennville, GA

John Shuman, president and chief executive of Shuman Farms, Reidsville, GA, says a “strong balance between bags and bulk simplifies merchandising for retailers. The clear, bold messaging on the front of our bags helps distinguish the product and eliminate confusion in the onion set.

“The key is merchandising bags and bulk together, leading to bigger, more eye-catching displays and bigger baskets.”

ONION EVOLUTION

Although often the same weekly purchase it has been for consumers over the years, the onion category is evolving as retailers place greater emphasis on convenience, meal solutions and product differentiation, says Steven Shuman, general manager, vice president of sales, G&R Farms, Glennville, GA.

“While yellow, red and white onions remain staples, sweet onions continue to gain momentum because of their mild flavor, versatility and strong seasonal appeal. Consumers are also looking for authenticity, whether that’s regional origin, family farming or a product with a story behind it.”

Jessica Congdon, category marketing manager, potatoes, at Grimmway Farms, Bakersfield, CA, says the onion category is morphing from “a basic commodity presentation toward a more usage-based approach, with retailers increasingly thinking about onions by meal occasion, household size, convenience and value.”

Core yellow, white and red onions remain the foundation of the category, Congdon says, “but retailers can create stronger sets by clearly differentiating use cases: yellow for everyday cooking, red for fresh applications and grilling, and white for sharper flavor profiles and Hispanic-inspired meals.”

Bulk onions remain important for shoppers who want to choose individual pieces and buy only what they need, while bagged onions appeal to shoppers looking for value, pantry stocking and convenience.

“A balanced merchandising strategy is usually best,” adds Congdon. “Maintain a strong bulk destination for variety and quality perception, while supporting bagged options for value-driven and stock-up purchases.”

TAG TEAM FOR MORE SALES

Given onions’ broad use, cross-merchandising can drive sales.

“Onions go with almost everything, making cross-merchandising one of the most underused opportunities in produce,” says Kelsey Weingart, brand manager, marketing, Peri & Sons, Yerington, NV.

“Meal-oriented displays are a natural fit. For taco night setups, guacamole stations and soup season builds, pairing onions with peppers, tomatoes, or broth products gives shoppers a complete meal idea and increases basket size. QR codes linking to recipes at these displays close the loop between inspiration and purchase.”

She notes the traditional potato and onion set remains a solid foundation for core products in both categories and habitual shoppers who are clear on what they want.

“But it shouldn’t be the ceiling,” says Weingart. “The category has room for more dynamic setups, specialty sections, seasonal displays and impulse-oriented placements near high-traffic areas.

“Signage that leads with flavor, rather than just price, turns a commodity display into a category destination.”

“Signage that leads with flavor, rather than just price, turns a commodity display into a category destination.”

— Kelsey Weingart, Peri & Sons, Yerington, NV

Steven Shuman agrees traditional potato and onion displays are a keystone and shouldn’t be the only merchandising strategy. “Seasonal secondary displays, meal-solution merchandising and promotions help generate impulse purchases while showcasing the unique flavor and versatility of sweet onions. Retailers that highlight the limited availability and premium quality of Vidalia onions can create excitement that benefits the entire onion category.”

Spice World has its own way of helping retailers build sales via its minced and chopped packaged onion products.

“We include QR codes on our Easy Onion shippers that take consumers quickly to our website to explore all types of delicious recipes with onions,” says Mike Smith, the company’s senior vice president of sales and marketing. “They can create a shopping list starting right in the produce department.”

To cross-merchandise Spice World Easy Onion products, whether squeezable bottles or resealable jars, Smith recommends retailers surround them with fresh produce that work well with onions, such as tomatoes, tomatillos, peppers and avocados. Cross-merchandising with other compatible produce items creates an opportunity to bring in general merchandise, such as lime juicers and avocado storage holders, to produce displays, he adds.

Dante Galeazzi, marketing order manager, South Texas Onion Committee, Mission, TX, emphasizes onions can benefit from virtual promotion and purchasing. “The growth of online grocery shopping has also created new opportunities through digital recipe recommendations, meal bundles and suggested add-on purchases.”

“As retailers continue to focus on convenience and meal inspiration, cross-merchandising has evolved from simply grouping similar products to helping consumers envision complete meals and occasions.”

THE SWEET LIFE

John Shuman contends that smart merchandising is essential in driving onion category sales. “Retailers should use shelf tags and signage to identify sweet onions as a premium offering and clearly differentiate them from standard yellow onions. Sweet onions provide a bigger ring, and baskets with sweet onions are more likely to contain high-affinity items like peppers, tomatoes, potatoes and squash.”

As the Texas sweet onion season began winding down with summer’s arrival, retailers were still finding creative ways to feature sweet onions, especially in and around the growing region, Galeazzi says.

“This season, display contests featured dedicated bins, Texas-themed displays, cross-merchandising with complementary products and promotional pricing,” he says, “reminding Texans that the state’s own growers offer sweet onions in the spring.”

He also is a believer in cross-merchandising as a superior way to prompt onion purchases, sweets included.

“Sweet onions are most effective when cross-merchandised with complementary products that encourage meal planning and increase basket size,” Galeazzi says. “Opportunities have expanded in recent years as retailers have embraced more meal-oriented merchandising. Today, sweet onions are commonly featured with ingredients for grilling, burgers, fajitas, kabobs, salads and other recipe solutions.”

John Shuman maintains sweet onions are the onion category driver for retailers throughout North America. “Consumption is highest in the northeastern part of the country, where sweet onion sales can account for nearly one-third of total category sales.”

To maximize the opportunity in store, Shuman says sweet onions should be merchandised beside traditional onions so shoppers can easily compare varieties, but dedicated displays help reinforce their premium positioning and seasonal appeal.

“For Vidalia onions in particular, dedicated displays reinforce their unique identity and create excitement throughout the season.”

MAKE IT EASY

Along with sweet, retailers should consider how prepped product can play a role in driving sales.

“Fresh cut onions are critically important to maximizing sales in the onion category,” says Spice World’s Smith. “Cut onions like Spice World’s Easy Onion grew out of the same consumer insight that has guided much of the company’s innovation: People love the flavor of fresh ingredients, but they increasingly want convenience and time savings.”

After the success of Spice World’s ready-to-use garlic products, Smith says their team recognized a similar pain point with onions, prep time, mess and inconvenience. “Easy Onion delivers authentic onion flavor in a format that removes those barriers, making it easier for home cooks of all skill levels to elevate their meals.”

“The key for retailers is to see fresh-cut and whole onions as two parts of the same category serving the same consumer at different moments in their week,” says Peri & Sons’ Weingart. “A well-merchandised whole onion set still anchors everything.”

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Add Organic Onions to Retail Mix

Organic sweet onions have been making gains as shoppers are thinking more about ways to protect their health.

“We’ve continued to see steady growth in organic sweet onions, and it’s very much in line with what we’re seeing across the broader organic produce category,” notes Sloan Lott, director of sales at Bland Farms, Glennville, GA.

“From a pricing standpoint, the category has remained relatively consistent,” he adds. “Like any produce item, there are factors that can influence pricing, but overall, we’ve seen stable demand and a healthy market for organic sweet onions.”

About 5% of Bland Farms’ total crop is organic, with approximately 120 acres dedicated to organic Vidalia sweet onions.

“We expect organic sweet onions to earn even more shelf space and become a more consistent part of year-round programs,” Lott says. “With our 52-week supply from Georgia, Peru, Mexico and other U.S. growing regions, we’re well positioned to help retailers meet that demand throughout the year.”

Dante Galeazzi, marketing order manager, South Texas Onion Committee, Mission, TX, says the organization has detected a growing interest in organic sweet onions in the past few years, including increased adoption by retailers that have incorporated organic TX1015 sweet onions into their onion programs.

“As consumers continue to prioritize health, wellness and organic options, demand appears to be trending upward among a dedicated segment of shoppers,” Galeazzi says. “While pricing can fluctuate based on supply, availability and market conditions, organic sweet onions generally continue to command a premium compared to conventional offerings.“