Rethinking Raisins: Strategies for Boosting Produce Sales

Merchandising and strategic positioning in the produce department can breathe new life into raisin sales.

Raisins have long been a staple in households across America — a classic snack and baking ingredient that evokes tradition, nostalgia and simple goodness. Yet, in the highly competitive retail landscape, raisins can get overshadowed by trendier dried fruits or newer snack offerings.

But savvy merchandising and strategic positioning in the produce department can breathe new life into raisin sales. With their naturally sweet profile, affordability and versatility, raisins are uniquely positioned to meet the needs of value-conscious, health-driven, and convenience-seeking consumers.

A LITTLE HISTORY

The year 1988 marked the peak of raisin popularity in the U.S., with per-person consumption reaching 2.5 pounds. This was likely influenced by the widespread appeal of the “California Raisins” commercial campaign, which debuted in 1986.

However, present-day raisin consumption is down. According to Circana household panel data, the percentage of households and buyers, both first-time and repeat purchasers, is declining.

Recent Circana data underscores the urgency of reinvigoration efforts. Year-to-date, total raisin volume (MULO+) is down by over 800,000 pounds. Notably, 64% of this decline stems from losses in incremental volume — a sign that promotional efforts can help refresh the category.

MERCHANDISING THAT MOVES PRODUCT

Retailers are increasingly focused on solution-based merchandising — displaying products as part of a broader use occasion. For raisins, this could mean showcasing with oatmeal, yogurt or baking ingredients.

“Raisins are very versatile and can be used as a component of snacks, such as granolas, trail mixes and cookies,” explains Stephanie Blackwell, president of Aurora Products Inc., an Orange, CT-based packager of all-natural and organic dried fruits, nuts, trail mixes, salad toppings and granolas.

“They are fairly inexpensive, yet healthy. Dried cranberries, blueberries and cherries usually contain added sugar of some sort. Raisins, however, are naturally sweet and do not have any added sugars,” she says.

NUTRITIONAL EDGE

Traditionally, raisins have been shelved in the baking aisle or center store. But there’s untapped potential in treating them more like a perimeter snack item — especially in the produce department where health and impulse buys converge.

“Raisins can and should live in the produce department,” says Blackwell. “They complement fresh fruits and nuts and align with the same shopper mindsets.”

Morton Williams Supermarket, in Bronx, NY, sells raisins with its private label in the produce department, says Marc Goldman, produce director. “It does well there, but I think people tend to go more toward Sun-Maid and other popular brands in the grocery department.”

Small, eye-catching displays in the produce section — featuring raisins alongside apples, oranges or bananas — can encourage cross-category purchases. Trail mix kits or snack station endcaps are another winning tactic.

“Raisins are shelf-stable, nutritious and versatile. They fit right into the perimeter if you give them the right spotlight,” says Blackwell.

Aurora Products adds raisins to its all-natural Berry Nutty Mix and Cranberry Health Mix. “Raisins are probably the most-used ingredient in trail mixes,” says Blackwell. “Most people like them. They are naturally sweet without the detailed processing and hydration with sugar or some other sweetening additive. They are also one of the less costly components in a trail mix that allows the snack to be more affordable to the consumer.”

Portion-controlled packaging is gaining momentum, particularly in the back-to-school season or among on-the-go shoppers. Single-serve boxes or resealable stand-up pouches offer convenience and help reduce food waste.

Clear or window packaging also builds trust, allowing shoppers to judge product quality for themselves. Sustainable packaging, whether recyclable, compostable or made from post-consumer materials, is increasingly a purchase driver, as well.

NEW FLAVOR PROFILES

Sun-Maid Raisins, one of the largest raisin and dried fruit processors in the world, is a name synonymous with raisins and recognized by its iconic little red box. Sun-Maid remains the largest player in the category, with a 70%-dollar market share of raisins in retail, according to Steve Loftus, chief executive officer, Sun-Maid Growers of California, Fresno, CA.

“For over 100 years, Sun-Maid has continued to evolve, with the humble raisin at its core — expanding into organic offerings, specialty dried fruits, and premium snacks, like our newest line, Sun-Maid Farmstand Reserve,” says Loftus.

The Sun-Maid Farmstand Reserve product line is positioned as “the grown-up fruit snack” for its curated and unique selections of sweet, dried fruit. The collection includes Dried Mixed Berries, Sea Salt Chocolate Flavored Coated Banana Chips, Dried Whole Cranberries and Sea Salt Cocoa & Caramel Dusted Raisins.

According to a consumer response on their website, “The raisins are more delicious. The caramel flavor really pops … I love the individual packaging for the on-the-go snacking. Very happy with these.”
In addition to traditional California Sun-Dried Raisins, Sun-Maid offers other specialty dried fruit, like dried mango, dates and apricots, as well as yogurt-covered raisins in several flavors, says Loftus.

UNDERSTANDING ORGANIC

There is a demand for organic raisins, however it doesn’t match the enthusiasm seen for organic figs or dates.

“We supply both organic and conventional raisins, and, while there’s some interest in organics, it’s not as strong as you would expect. People seem to gravitate more toward organic figs and dates,” says Blackwell. “We’re not sure why — perhaps it’s consumer perception. Raisins already feel ‘natural’ to many.”

This opens a door for retailers to educate consumers. Using in-store signage or online content to explain how organic farming practices benefit soil, sustainability and health can help increase demand.
“We also sell private label organic raisins,” says Goldman. “The demand for organic is much less than conventional.”

Also, placing organic raisins near other organic dried fruits, especially figs and dates, can promote trial. “It’s about context,” says Blackwell. “When people see them together, it creates a halo effect.”

COMPETING WITH PRIVATE LABEL

Private label volume share is increasing, but branded raisins can still win on quality, sourcing transparency, packaging innovation and consumer trust. According to Circana data, private label (28% volume share) is up in incremental volume (+33K pounds); however, down in base volume (-300 pounds).

“In our produce department, almost all the dry fruit and nuts are private label,” explains Goldman.
Blackwell says her “biggest competition is private label, particularly for commodity categories like raisins.”

To differentiate from private label, brands and retailers can focus on quality and emotional value. Consumers are increasingly label-conscious, so emphasizing non-GMO verification, organic certification, or family-farm sourcing can tilt purchase decisions in favor of branded options.

Retailers can use branded products as a tiered pricing strategy — offering value, mid-range and premium options to appeal to a broader shopper base. This also reinforces a perception of choice and quality in the produce aisle.

Raisins may be one of the oldest dried fruits at retail, but with new product innovations and on-the-go snacking demand for health-conscious consumers, raisins are the ideal product to move from the shelf and into the produce section.

With the right mix of merchandising, education, packaging and promotion, raisins can claim their rightful spot as a high-performing, health-forward, and impulse-worthy item in the produce department.

• • •

Top Tips for Effective Display & Merchandising

• Create destination displays: Pair raisins with complementary products, like granola, trail mix components or breakfast items.

• Use vertical blocks by brand or variety to create impact and ease decision-making: Grouping organic and conventional raisins separately, while using color blocking to draw the eye, allows consumers to compare offerings and make quick decisions.

• Highlight health benefits with signage: Emphasize “no added sugar,” “natural sweetness,” or “high in fiber.”

• Cross-merchandise with value: Raisins can be positioned as a cost-effective alternative to pricier dried fruits.

• Seasonal tie-ins: Back-to-school, holiday baking, and healthy new year snacking are key promotional windows.