Innovation Fueling Produce Consumption

Disrupting consumer behavior to move the needle in fresh produce consumption one commodity at a time.

Editor’s Note: With this cover story, we launch an annual Innovation Issue, to be published each November. We invite our readers to participate in the dialogue of “What is Innovation?” by encouraging you to email your thoughts at: [email protected]

Innovation is often defined as a new method, idea or product. However, innovation also can be viewed as the application of better solutions to meet new requirements, unarticulated needs or existing market needs. Such is the case in the produce department, where changes in lifestyle, buying behavior and health concerns, among others, are catalyzing innovation in products and packaging.

“Innovation in produce happens in at least two major ways, production and genetics,” says Kevin M. Folta, PhD, professor and chairman, Horticultural Sciences Department, Plant Molecular and Cellular Biology Program and Plant Innovation Program, University of Florida, Gainesville, FL. “Production faces many challenges, while consumers want higher quality, low prices, variety, flavors and aromas. This scenario means innovations must satisfy many consumer desires while meeting industry production demands. Consumers, however, care most that produce is easy, good, safe, inexpensive and fast; genetics and production matter less to them.”

Apples Get an A

Innovation has brought tremendous change to the apple category. A generation ago, bins were dominated by pretty varieties such as Red Delicious, Golden Delicious and later, Granny Smith. Today, several dozen types of apples take their turn during the extended apple season, which begins in late summer and ends well into the winter.

The Honeycrisp apple stands out among the most innovative and popular. “The apple was commercialized in the early 1990s, and we had a decent amount of fruit available in the early 2000s,” says James Luby, Ph.D., professor, Department of Horticultural Science, University of Minnesota, St. Paul, MN, and a developer of the Honeycrisp. “The apple has a different texture from other varieties, with its crunchy breaking texture that maintains well in storage, has lots of juice and a sweet-tart flavor.”

The marketplace now includes “children” of Honeycrisp. “Our team is trying to bring apples to market sooner in the year by crossing Honeycrisp with early ripening varieties,” says Luby. “Results include Sweetango, Rave (a Honeycrisp-MonArk cross) and a specific brand for Minnesota growers called First Kiss.”

Stemilt, with headquarters in Wenatchee, WA, prides itself on a culture of innovation centered on new varieties, packaging and technologies toward a goal of growing fruit with a better flavor experience. Many of its commercially available apples were developed by the University of Minnesota.

“We are constantly seeking new varieties for the ‘wow’ factor in flavor,” says Brianna Shales, Stemilt communications manager. “Any new variety we consider bringing into our family of signature varieties has to be better than what is out there today or else it won’t make it with the shopper.”

Shales stresses the importance of branding and marketing new varieties in order to get consumers excited about their attributes. “Rave, our newest apple brand, gives us an earlier jumpstart on apple season with a fantastic tasting apple that has that Honeycrisp crunch, but its own unique flavor profile with zing and juice.”

Among the most innovative varieties is the Arctic Golden, a non-browning genetically modified apple, developed, grown and marketed by Okanagan Specialty Fruits, Summerland, British Columbia, Canada. Neal Carter, president, along with his wife, Louisa, cultivated the apple to offer benefits across the supply chain. “Superficial browning from improper handling of apples can occur in the orchard, in the processing facility, at supermarkets and at home. As a result, Arctic apples can reduce shrink, eliminate the need for costly anti-browning treatments on sliced apples and offer exciting new options for consumers,” he says. He adds Arctic apples taste as great as they look and are packaged exclusively as slices in 10-ounce grab-and-go bags.

Grapes Break New Ground

The Grapery, Shafter, CA, works with partner, International Fruit Genetics (IFG), Bakersfield, CA, to find and breed grapes that are unique to the market. (Photos Courtesy of Okanagan Specialty Fruits and Grapery)

Like apples, grape bins were dominated for years by a limited number of varieties. Grapery, located in Shafter, CA, sought to change that 17 years ago when its founders embarked on an ambitious grape breeding program. “We work with our breeding partner, International Fruit Genetics (IFG), Bakersfield, CA, to find and breed grapes that have the potential to taste great,” says Jim Beagle, chief executive. “On the consumer side, I know that what I like may be different from what consumers like, so we interact with them to understand their preferences and to drive our feedback loop about meeting their expectations. We engage consumers in conversation so we can show retailers that flavor matters.”

Beagle stresses the importance of retailers as ambassadors for the company’s brands. “Displays have to be well-positioned, well-stocked and well-managed.”

Andy Higgins, IFG’s chief executive, says the company has been guided since its inception in 2001 by a simple but bold vision “to create and develop the best-tasting varieties of table grapes and cherries on earth through innovating and challenging the status quo.”

The company’s fruit geneticists collect and analyze grape and stone fruit varieties from around the globe. The IFG team then combines and cross-breeds them to produce varieties that are both resilient and flavorful. “We have scientifically analyzed hundreds of thousands of varieties for information about product yield, quality and flavor,” says Higgins. “Typically, it takes eight to 10 years to commercialize a variety. Some of this time and effort is internal while some is spent validating the variety with growers, marketers, retailers and consumers.”

IFG has developed 26 commercial seedless table grape varieties to date, including the highly successful Cotton Candy, Sweet Celebration, Sweet Sapphire (Moon Drops), Jack’s Salute and Sweet Globe grapes.

Next Up…Cherries

Cherries have been limited to a handful of commercial varieties, but IFG and others are working toward expanding consumer options.

“It takes much longer — 12 to 15 years — to develop a new cherry variety, so the cherries we started working on in 2001 are just coming into the market now,” says Higgins.

“We are working on the gene pool to enhance cherries in several ways, including bringing sour cherry flavor into sweet varieties and improving grower attributes to better handle climate change. Cherry growing areas are experiencing extreme weather events; as a result, a really good year is hard to come by. Our breeding focuses on earlier season varieties that don’t require as much chill. This allows cherries to be grown in parts of the world that haven’t had commercial cherries before.”

Stemilt recently introduced a new cherry called Skylar Rae. Shales describes it as “a bi-colored cherry that was discovered growing by chance back in 2005 in Wenatchee, WA. It is the sweetest and firmest cherry we grow, and those two characteristics do not usually go together.”

Evolving VEG Category

Dave Haider and Kristen Koontz Haider, two of the four co-founders of Urban Organics.

Salad greens are the poster children for innovation, changing the greens landscape from heads of iceberg, Romaine, red leaf and green leaf to flexible bags and clamshells of colorful washed, bowl-ready assortments. It’s no surprise the category continues to evolve.

At the Dole Food Company, Westlake Village, CA, Dole Chopped Salad Kits and Dole Organic Kits are among the company’s fastest-growing value-added lines. Dole notes its new products address the produce industry’s strong shift toward convenience and flavor.

“Chopped salads are one of the biggest innovation trends to hit the salad bowl over the past few years — but traditionally, consumers have had to either dine out or spend considerable time in the kitchen to enjoy one,” says Bil Goldfield, director, corporate communications.

Earthbound Farm, San Juan Bautista, CA, stresses the importance of customer relationships in its business and stays connected with key customers to ensure it offers a full portfolio of products that target consumers’ needs. “We initially revolutionized the category by packaging organic salads for wider consumption, then were the first to bring clamshell packaging to market,” says Meg Stocker, brand manager. “Each step in the evolution of our company has centered around making produce accessible, and giving people fresh, organic choices in the produce space.” Earthbound Farm recently launched organic Chopped Salad Kits, and it has plans for additional launches in early 2018.

Urban Organics, St. Paul, MN, farms with aquaponics, where fish and plants help each other grow.

Indoor and urban farms are leading the next innovation in greens, with their controlled environments and inputs. Urban Organics of St. Paul, MN, recently announced the opening of its second aquaponics farm. Founded in 2012, the company established its first farm in 8,500 square feet as a pilot facility using tilapia and growing salad greens in water bathed with nitrates from the fish waste. The new farm uses 87,000 square feet and has 14 fish tanks and 50, five-tier racks for greens.

“We offer nine different USDA certified organic blends of greens that can include bok choy, kale, lettuce, arugula, chard and spinach,” says Dave Haider, president and co-founder. “We currently grow about 500,000 to 750,000 pounds annually for supplying to local restaurants and retailers such as Hy-Vee, Lunds & Byerlys and regional co-ops. We are excited about the sustainability aspects of this method of farming. We use 95 percent less water than if we were growing the greens outside, and our two facilities help revitalize the community and create jobs.”

Color It Bright

Produce departments are more colorful than ever, with selections beyond the traditional green, red, orange, yellow and white. Among the most noticeable trends is the move toward purple, led by Frieda’s Specialty Produce, Los Alamitos, CA. Frieda’s adopted purple as its corporate color by accident when a sign painter painted the company’s first sign purple back in 1962. The color converged with innovation in 2013, when Frieda’s noticed more purple foods available in the market.

“We declared 2013 the ‘Year of Purple’ and did a Power of Purple campaign with our Stokes purple sweet potato as the anchor,” says Alex Jackson Berkley, senior account manager. “Then purple took off. Purple foods are naturally purple due to anthocyanin, an antioxidant that creates a natural purple pigment and may have health benefits. Consumers started looking for purple produce, and retailers recognized the color break it provides on a display. Now purple items are staples in the produce department.”

Innovation on the Outside

Packaging alone won’t contribute to long-term sales, but innovative packaging can capture a shopper’s attention, add value and convey convenience. Dan’l Mackey Almy, president and chief executive of DMA Solutions in Dallas, notes “the innovation in packaging has evolved tremendously over the past few years. With the demand for convenience items at an all-time high, we’ve seen produce items come packaged in portable cups, portable bags, microwaveable bags, as well as packaging to include dips and spreads.”

Del Monte recently developed new packaging for its Del Monte Fresh-Cut Grab-N-Go fruit and vegetable lines that include non-spill, resealable containers that fit conveniently in car cup holders.

Many Green Giant pouch packages feature an easy-carry handle and zip-top closure, and are steam-in-pack ready. High-impact graphics catch the eye of the consumer, and also offer recipes and usage ideas to help home cooks get creative.

Growth is expected in snack items and kits, which “redefine convenience and meal solutions,” says Green Giant’s Dixon.

“We introduced Del Monte Smoothie Kits as a healthy option to eliminate prep work and make it even faster and convenient for consumers to prepare delicious and nutritious snacks and meals,” says Dionysios Christou, vice president of marketing, Del Monte Fresh Produce N.A., Coral Gables, FL.

Pure Flavor, Leamington, Ontario, Canada, offers snack-friendly products such as grape tomatoes, mini peppers and cocktail cucumbers, each packed in 4-ounce oval clamshells. Merging convenience, portion control and on-the-go-eating, Tasteful Selections, a specialty potato brand from RPE, Bancroft, WI, recently introduced its SteamPak Mini, a single-serve, 5.8-ounce, microwavable package.

Innovative Marketing

“Innovation in marketing is essential if a company wants to stay ahead of competitors,” says John Stanton, Ph.D., professor, marketing, Saint Joseph’s University, Philadelphia. “The market is changing so quickly that yesterday’s choices may not be good enough. For example, keep track of the more exotic produce in meal kits to make sure it’s in the produce department as well.”

Stanton also advises the industry to up its game with in-store marketing. “Consumers are accustomed to outreach that is not currently used in produce, such as signage on carts, floor graphics and POS signage; this is where I give the produce industry an F. You can’t just put the name of the item and the price on a sign. You have to at least talk about freshness and ease of preparation.”

The Wonderful Company, Los Angeles, stands out for its prominent branding and marketing programs that have turned commodities such as pomegranates, Mandarin oranges and pistachios into must-have items. The company invests millions of dollars each year and contributes significantly to sales in the produce department. “We enjoy trying new things in the store, including POS displays big and small,” says Adam Cooper, vice president of marketing. “We create brand awareness and love for our brands. We innovated with pomegranate, first with the great benefits of pomegranates and juice, then with a beautiful bottle that stands out on the shelf, and now with arils in a ready-to-eat convenient cup. Because we are vertically integrated, we control the whole process from tree to table, including going into stores to help the staff put up great displays.”

Dole echoes the value of marketing innovations. “Even the most innovative new products are only truly successful if they are supported with a similar level of innovation in packaging, marketing, in-store support and shopper marketing programs,” says Goldfield. “Every Dole new product launch is supported by an integrated marketing, public relations, social media, influencer and retailer support effort to maximize consumer trial and the chances for adoption.”

Innovate for Tommorrow

Since innovation can take 10 years or more from concept to consumer, it may be instructive to look at consumers with the longest shelf life, i.e., Millennials. Among the questions to ask are what prevents them from buying and eating more fruits and veggies and how can the produce industry respond? Current trends and practices suggest communication with shoppers and use of media to reach them will continue to grow.

“Even the most innovative new products are only truly successful if they are supported with a similar level of innovation in packaging, marketing, in-store support and shopper marketing programs.”

— Bil Goldfield, Dole Food Company

Food waste and sustainability are likely to remain on the forefront. Blurring of lines between center-of-the-store items and the produce department may lead to solutions, for example, reduced shrink in fresh tomatoes by also offering canned salad-ready cut tomatoes, or stocking innovative companion products that improve the produce experience. Two such products are the BluApple, which absorbs the ethylene gas emitted by fruits and vegetables and slows ripening and rotting, and VeggieZips produce storage bags and liners that help control humidity.

University of Florida’s Folta predicts modern breeding with DNA genomics-based selection will bring new, improved varieties to market in a year or two rather than the current ten-year timeline. “Additionally, innovation in postharvest biology helps get fresh produce to the shelf in better shape, and that will appeal to the consumer.”

Creating New Categories

Vegetable pasta has been trending with consumers and continues to gain in popularity.

Vegetable noodles represent the rare category of items that are new to produce. Created as an alternative to pasta and first created from zucchini, veggie noodles of different brands, cuts and shapes occupy a prominent spot in the cooler section of the department.

Veggie Noodle Co., based in Austin, TX, exclusively produces and markets vegetable noodles. “People love veggie spirals. We pioneered the first packaged USDA organic products using patent-pending machinery,” says Jennie Shen, marketing “gourdinator.” “We make noodles from several types of sweet potatoes, along with zucchini, butternut squash and beet. In addition to spirals, our newest line is Veggiccine, a flat, thicker, wider cut that can hold more sauce and seasoning.”

Veggie Noodle recently moved into a new, custom-designed building. Mason Arnold, founder and chief executive, notes it will “increase production capacity by more than five times and enable Veggie Noodle Co. to continue to lead the market with a national presence.” The company’s products can be found in 2,000 stores in 38 states.

Other companies in the vegetable noodle space include Del Monte, which offers noodles from zucchini, butternut squash, sweet potato, beet, yellow squash and carrot, and Green Giant, with five varieties available in a 6-ounce bowl, 10.5-ounce steam-in-pack pouch and 14-ounce clamshell.

Salinas, CA-based Mann Packing stands out for its innovative ready-to-use fresh veggie offerings. “We have a unique way of cutting fresh vegetables into shapes that inspire creativity for everyday meals,” explains Jacob Shafer, senior marketing and communications specialist. “We also are very focused on vegetable-based salad kits with new, innovative, and unique blends that include multiple on-trend vegetables and are available in conventional, club, and multipack formats.

Nourish Bowls are breaking new ground in the industry.

Mann’s recently broke new ground with its Nourish Bowls, the first and only warm bowl kit in the marketplace. Shafer notes Mann’s ability to innovate attracts new consumers. “We provide quick and easy solutions in grab-and-go formats to create the ultimate in convenience for life on the move.”

It’s hard to ignore the groundbreaking success of cauliflower crumbles, also called cauliflower “rice.” Like veggie noodles, cauliflower crumbles appeal to shoppers who seek to reduce the amount of carbohydrates or starch calories in their diet.

“Our patented Cauliflower Crumbles product was first to market and has gained wild popularity along the way,” says Jamie Strachan, chief executive, Growers Express & Green Giant Fresh, Salinas, CA. “We followed with two additional Crumbles products — Cauliflower Crumbles Fried Rice Blend and Sweet Potato & Cauliflower Crumbles. The most important part of our innovation process is identifying how consumers are using our products and then developing and making these new formats more widely available.”

Another first-to-market item is Green Giant’s new patent-pending Spaghetti Squash product. The squash is peeled, cored and cut into chunks for easy cooking or steaming right in the pack. “We’re happy to provide healthful, gluten-free, Paleo-friendly and lower carb and calorie alternatives for health-conscious and time-starved consumers,” says Jennifer Dixon, vice president, marketing.

Seeds Produce a Better Sensory Experience

Innovation often starts with seeds. Bringing a new product to market can take years, and the breeder and other specialists dedicate themselves to identifying desirable traits for the coming years.

“First and foremost, we focus on benefits that will always be paramount for growers and consumers: high yield, good plant vigor, disease-resistance, ease of harvest, and superior taste and texture,” says Alicia Suits, digital media marketing specialist, Sakata Seed America, Morgan Hill, CA. “We also look at consumer trends. Several years ago, Sakata noticed a steady shift in consumer broccoli preferences toward more crown-cut and short-stemmed products. Although our program continues to breed for multi-use varieties, we have concentrated considerable time and effort into the development of varieties that are more suited for the changing market.”

The company invests in sensory data analysis of its products and their genetics compared to the competition. “This gives our customers credible third-party data on the difference in flavor, texture, shelf life and overall quality in our products,” says Suits.

Today’s seed companies marry conventional breeding with technology and other tools to identify traits that are most desirable to consumers. At Monsanto Company, St. Louis, consumer sensory lead Chow-Ming Lee, Ph.D., works with breeders and technology development teams to help the company identify and deliver sensory components in such crops as tomatoes. “We want to know what flavors and textures are most appealing to the panels of consumers we bring into our lab,” says Lee. “We also taste all the varieties ourselves to better understand what we are working with. By combining feedback from 150 or so people, we get a sense of consumer preferences.” Lee notes he and his colleagues also study the effects of volatile compounds on the smell preferences, which are more challenging to measure and understand.

“Zespri relies on innovative practices and technologies to guide us in providing the best eating experience for our consumers,” says Sarah Deaton, marketing manager, North America, Newport Beach, CA. “We have an extensive, natural cross-breeding program where we look to create new kiwifruit varieties. SunGold [Kiwifruit with golden yellow flesh] provides consumers with a balanced, sweeter taste and longer shelf life. It has a tropically sweet taste that is similar to a cross between a mango and a strawberry. With its thin, hairless skin, SunGold is easier to enjoy out of hand like an apple or plum, or cut and scooped out.”

Innovating in Foodservice

The vegetable-forward plate has become widely adopted across restaurants and higher education dining services, bringing a flurry of innovation.

“Independent and fast-casual operators are approaching produce with a different philosophy, not just to mimic meat,” says Maeve Webster, president, Menu Matters, Arlington, VT. “They treat vegetables with a certain level of respect. Rather than offering just a few options on the menu, operators are making their vegetable dishes as good as anything on the menu. And they’re offering really interesting dishes as limited-time offers.”

Amy Myrdal Miller, MS, RDN, FAND, founder and president of Farmer’s Daughter Consulting, Carmichael, CA, says innovation in fast food and convenience goes a long way back. “A company I worked for approached a convenience chain to sell packaged bananas in plastic. Because the chain wouldn’t risk shrink, my employer pivoted to packaged salads instead.” Myrdal Miller also notes Subway now offers mashed avocado on sandwiches as a result of long-term relationship building and new processing innovations on the part of the California Avocado Commission in Irvine, CA.

McDonald’s takes pride in its use of innovation to add fresh produce to its menus. Michelle Claravall, manager, culinary menu innovation, McDonald’s, Oak Brook, IL, describes using only refrigeration to preserve fresh produce. To facilitate meal assembly, its suppliers package “kits” for freshly prepared pico de gallo inhouse every day. Others quickly cool and freeze fresh fruit to lock in natural flavor. “We leverage the insights of our produce suppliers as freshness subject matter experts to bring us produce innovations,” she says. “We also seek out fresh produce innovations from our global teams — for example, a buzzworthy burger from McDonald’s Australia that features sliced pickled beets.”

Among colleges and universities, Yale Hospitality enjoys a reputation among the most innovative college dining teams. Team members describe “deliciousness, the simple attractive appearance of freshly made food, inherent attributes of health and wellness, local ingredients and sustainability” as what sets the university apart.

Yale Hospitality avidly uses specialty produce in its menu items. “In recent years, hybrid varieties of vegetables have become more prevalent and accessible. Our catering and executive services division uses a wide variety of specialty produce that becomes a conversation piece for guests,” says Gerry Remer, director, sustainability and sourcing. Remer notes produce purchasing is up 40 percent since 2010.

“On the supply side, we partner with FreshPoint and other specialty produce providers to source from local and regional farmers,” says Allison Arnett, RD, health and wellness manager, Yale Hospitality. “We charge our supply partners with the responsibility of foraging exciting superfoods that are nutrient rich, seasonal and flavorful. Through these relationships we create learning opportunities for our students with local farm tours during harvest season.”

Quintin L. Eason, regional executive chef for Chartwells Higher Education, Rye Brook, NY, says “one of the biggest ways to promote innovation in foodservice is to educate students. For example, they may not know pumpkin can be prepared in 10 different ways with various types of ethnic flair and flavor profiles. We might serve pumpkin hot sauce for chicken wings and kebabs with pumpkin as an entree.”

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