Focusing on Fresh Herbs

This high-impact category influences the perception of the produce department.

The fresh herbs category is quietly transforming from a convenience purchase into a strategic merchandising opportunity. Although it occupies relatively little space in the produce department, herbs help retailers reinforce freshness, inspire meal solutions and encourage shoppers to experiment with new flavors and cuisines.

That shift is reflected in stronger consumer demand. Robert Schueller, director of public relations for Melissa’s/World Variety Produce, Los Angeles, CA, reports year-round demand for fresh herbs has grown 12%.

Todd Smith, senior category manager for produce at The Save Mart Cos. (TSMC), Modesto, CA, says shoppers are approaching the category with greater purpose.

“Fresh herbs have become a much more intentional purchase than they were even a few years ago.”
Save Mart’s stores reflect that evolution, with traditional fresh-cut herbs, organic offerings and living herbs available across Save Mart, Lucky California and FoodMaxx banners.

“One thing we’ve learned is customers aren’t necessarily looking for more choices; they’re looking for better choices,” notes Smith. “If we can deliver freshness, quality and relevance, the category continues to grow naturally.”

Despite their small footprint, fresh herbs play an outsized role in shaping shoppers’ perception of produce quality and freshness, says Smith.

Social media has become today’s recipe box.

“Customers are discovering new herbs, new flavors and new cooking techniques every day, and they’re bringing that curiosity into the produce department,” says Smith. “They start by trying one new herb, and that curiosity continues expanding the category.”

WHAT DRIVES GROWTH?

Like all produce, the herbs category has to fit an area’s demographic. TSMC adjusts its assortment and merchandising to reflect the communities it serves.

“Some herbs naturally align with specific cooking traditions,” says Jorge Gomez, TSMC’s senior category manager, vegetables. “Cilantro continues to perform especially well in many Hispanic communities, while basil has become one of the category’s most universal herbs because it works across so many different cuisines.”

Fresh basil use is an example of how customer habits evolve.

“Years ago, many shoppers associated it primarily with Italian cooking,” says Gomez. “Today, they’re using it on sandwiches, pizzas, grilled vegetables, salads and fresh summer dishes. That broader usage has helped expand the category.”

Jill Overdorf, interim marketing director for San Marcos, CA-based San Diego Farms LLC, parent company of Fresh Origins and BrightFresh, says behavior is more important than age.

“Confident cooks buy and use more herbs,” she says. “Consistent quality and flavor ensure repeat purchases.”

In addition to a clamshell program, New Seasons Markets has a robust bulk program that allows customers to grab as much or as little fresh herbs as needed.

“We see Millennials and younger going for fresh herbs,” says Jeff Salchenberg, the retailer’s program and category manager for produce. “New Seasons customers tend to be more adventurous in their cooking habits and are willing to try herbs from ethnically diverse recipes found online.”

It helps retailers to know their customers and be open to new fresh herb items. For example, New Seasons Market recently added lime and curry leaves.

In addition to Millennials and Gen Z shoppers who enjoy cooking at home, health-conscious consumers are also driving growth.

“We also see strong demand among multicultural households where herbs are an everyday cooking staple rather than an occasional purchase,” says Philipp Harlov, vice president of sales and marketing at Infinite Herbs, based in Doral, FL.

Heavy fresh herb buyers tend to be consumers who prioritize organic ingredients and are already engaged with food, spanning a large variety of demographics, says Suzette Overgaag, vice president/co-founder, North Shore Greenhouses, Thermal, CA.

“By choosing herbs in the produce department, as opposed to the center aisles, they’re demonstrating they’re looking for peak freshness and flavor.”

— Suzette Overgaag, North Shore Greenhouses, Thermal, CA

“By choosing herbs in the produce department, as opposed to the center aisles, they’re demonstrating they’re looking for peak freshness and flavor,” she says. “They cook often, care about details and see food as more than just fuel.”

SEASONAL PUSHES

Although fresh herbs remain an everyday category, certain varieties become more relevant throughout the year. For example, Schueller at Melissa’s sees an upsurge for fresh herbs in the fourth quarter by 20%.

Seasonality also creates opportunities to highlight specific herbs based on how customers are cooking. Salchenberg says rosemary, sage, and thyme dominate the fall and winter holidays, while basil is popular in summer.

As customers move into grilling season, tomato season or the holidays, different herbs become part of the meal solution. Rather than changing the category, seasonality changes the conversation, says Smith.

“Mint sees increased demand during the summer for beverages and entertaining,” adds Infinite Herbs’ Harlov. “Rosemary, sage, thyme and poultry blends peak during Thanksgiving and Christmas.”

Although basil has strong demand throughout the summer when tomatoes are in season, he sees it becoming a year-round staple.

“Cilantro remains one of the most consistent herbs year-round due to its widespread use across many cuisines,” says Harlov. “The key is inspiring consumers beyond holiday recipes.”

In overcoming seasonality, it’s not about convincing customers to buy more, but providing reasons to use them.

“When herbs are merchandised alongside meal solutions instead of standing alone, they naturally become part of the shopping trip throughout the year,” says TSMC’s Smith.

Seasonality will always influence individual varieties, but herbs as a category continues growing because customers are becoming more comfortable experimenting in the kitchen.

South San Francisco, CA-based Bay Area Herbs, Organics & Specialties provides approximately 22 culinary herb varieties, with most available year-round. “In the summer, we can localize purchases better, since we’re less reliant on Mexico,” says Michael Schutt, director of herb procurement.

PROMOTION WORKS

The good news is that seasonality is not a limitation. It informs a compelling merchandising calendar.
“Retailers sell more herbs when they treat them like meal inspiration, not garnish,” says Overgaag at North Shore Greenhouses. “The biggest sales drivers are visibility, education and usage ideas.”

The best way to move herbs into year-round sales is with powerful and strategic merchandising. “For example, we developed a potted mint shipper specifically for the Kentucky Derby,” says Overgaag. “This not only increases basket rings for that event, but also adds a fresh twist to the famous Mint Julep.”

QUALITY MAKES DIFFERENCE

Customers notice quality immediately, so execution has to be consistent every day. Frequent replenishment, proper handling and merchandising around how people cook are what separate a good herbs department from a great one.

“One thing we’ve learned is customers don’t usually shop for herbs because they need herbs; they’re shopping for the meal they’re making that night,” Smith says. “The more we merchandise around meal occasions, the more relevant the category becomes.”

“Customers don’t usually shop for herbs because they need herbs; they’re shopping for the meal they’re making that night. The more we merchandise around meal occasions, the more relevant the category becomes.”

— Todd Smith, The Save Mart Cos., Modesto, CA

Herbs are one of the quickest categories where customers recognize quality. “If cilantro is crisp, basil looks vibrant, and parsley is fresh, customers have confidence in the department; if those expectations aren’t met, they notice just as quickly,” says Gomez.

TSMC’s living herb program was introduced in response to customers seeking product that stays fresher longer.

“The appeal goes well beyond the organic shopper,” says Gomez. “Customers may not come in asking specifically for a living herb, but after they take one home and experience the difference, they understand the value.”

Depending on the type of fresh herb, the merchandising environment is crucial.

“Delicate herbs like dill can’t withstand the rigors of being out of temperature,” notes Schutt at Bay Area Herbs. “Although you need to create a destination and everything in this segment needs to live in this space, stores can get away with herbs living in a cool case that doesn’t get wet, is self-facing and not too cool.”

In terms of storage, clamshell packaging works best, and temperature, airflow, handling and replenishment all affect quality.

“If herbs get wet, the leaf will turn dark black,” says Melissa’s Schueller. “All herbs should be refrigerated, except basil and root herbs.”

MAKE A CONNECTION

Clean displays, frequent rotation and merchandising around meal occasions make the category feel approachable, while reinforcing freshness. “A full display isn’t always the best display if freshness begins to suffer,” says Smith at TSMC.

Whether it’s grilling season, fresh tomato season or holiday entertaining, customers respond when herbs are connected to what they’re already planning to cook. Smith recommends cross-merchandising with tomatoes, proteins, vegetables or meal ingredients.

Schueller encourages retailers to use point-of-sale customized signs with information on use, storage and nutrition, along with recipe links. “Many herbs look similar, so this helps to identify and differentiate them.”

Secondary displays also create opportunities to introduce customers to herbs they may not normally purchase, or can highlight a holiday or season.

“Retailers can also use attractive branded displays, recipe cards and QR codes that link directly to meal ideas,” says Bay Area Herbs’ Schutt. “The easier it is for consumers to visualize how they’ll use the herbs, the more likely they are to purchase them.”

Salchenberg at New Seasons Markets warns produce departments not to offer too many versions of the same item.

“Merchandise herbs together in a block,” he says. “Living herbs can be merchandised on an end of a table near tomatoes. During holidays, merchandise cooking herbs near the turkeys in the meat department or wherever customers are picking up their proteins.”

Infinite Herbs’ Harlov recommends retailers highlight herbs alongside seasonal meal solutions throughout the year, while also promoting quick weeknight recipes that rotate with the seasons.
Clear usage ideas, smaller package sizes, strong freshness, cross merchandising and simple recipes all help increase purchase and repeat use, San Diego Farms’ Overdorf says.

• • •

Grouping Herbs

Retailers should group herbs by use, rather than alphabetically. Categories can include:

• Everyday essentials

• Taco and global cooking

• Pasta and Mediterranean meals

• Grilling and roasting

• Cocktails and beverages

• Finishing herbs and microgreens

• • •

The Online Influence of Herbs

Online shopping has become another opportunity to build confidence in fresh herbs.

“Delivering quality through e-commerce is just as important as delivering it in-store because the customer’s expectation doesn’t change,” says Todd Smith, senior category manager for produce at The Save Mart Cos. (TSMC), Modesto, CA.

“Consumers shopping online tend to purchase herbs when they’re already buying ingredients for a specific recipe rather than browsing,” says Philipp Harlov, vice president of sales and marketing, Infinite Herbs, Doral, FL. “As meal planning and recipe integration continue improving across grocery platforms, we expect fresh herbs to continue growing in e-commerce.”

Jill Overdorf, interim marketing director for San Marcos, CA-based San Diego Farms LLC, says online shopping can move product, but digital listings must do more work. “Customers cannot smell or inspect herbs online, so listings need strong photography, package size, flavor, storage guidance and clear usage ideas.”

Social media also has spurred more sales for fresh herbs.

“Recipes shared through social media, cooking shows and digital creators introduce customers to new flavors and ingredients every day,” Smith says. “That curiosity continues expanding the herb category because customers are willing to try something new without completely changing the meal. We’ve also seen customers ask for herbs they may never have considered before because they saw them used in a recipe online.”