Positioning kiwi as the next big thing in produce
[Note – This article will appear in the Winter 2024 issue of Produce Business Magazine and will publish on www.producebusiness.com on or near December 12.]
By Vanessa Salvia
In the crowded fruit aisle, where aromatic oranges and shiny apples vie for attention, the humble kiwifruit is often overlooked. Unassuming and brown on the outside, most people don’t see the fresh green color on the inside. Now, golden varieties of kiwi are gaining traction and more consumers are discovering that this small, fuzzy fruit packs a powerful punch of flavor and nutrition. Across the country, produce retailers are uncovering kiwi’s untapped potential to capture consumer taste.
Frieda Rapoport Caplan, who died in 2020 at age 96, founded specialty produce company Frieda’s Inc. in Los Alamitos, CA. Caplan is credited with introducing kiwifruit, then known as Chinese Gooseberry, into American markets in 1962. After a name change to become more consumer friendly, Caplan’s began flying in kiwifruit from New Zealand.
Packaging Matters
Alex Jackson, vice president of sales and procurement at Frieda’s Branded Produce, says packaging plays a vital role in consumer purchasing decisions. “Selling kiwis individually allows customers to select their preferred quantity, catering to those who may want to try the fruit without committing to a larger purchase,” he says. “On the other hand, bagged kiwis offer convenience and can be more appealing to families or bulk buyers.”
Josh Rector is produce category manager at Harp’s Food Stores, a regional chain of supermarkets based in Springdale, AR, with stores throughout Arkansas, Oklahoma, and Missouri. Rector says Harp’s has traditionally sold bulk kiwi but this summer introduced a 1-pound clamshell of green kiwi and 1 pound or less of Golden kiwi, both from Zespri, which they place near berries. “Not only did that reduce shrink, it upped our dollar sales, and also achieved that same idea of putting it somewhere more visible,” he says.
When comparing individual kiwi versus clamshells or bags, all have their attractions. Audrey Desnoyers, director of business development and key account management for produce distributor Oppenheimer Group, headquartered in Coquitlam, British Columbia, says clamshells are the best way to offer kiwifruit. “The graphics on the pack show off the beauty of the fruit’s colorful center, and talks up the taste profile and many health benefits of kiwi,” she notes.
Jackson says selling kiwis individually allows customers to select their preferred quantity, catering to those who may want to try the fruit without committing to a larger purchase. “On the other hand, bagged kiwis offer convenience and can be more appealing to families or bulk buyers,” he says. “Sales data indicates that both methods have their own advantages: individual sales attract first-time buyers and those looking for smaller quantities, while bagged kiwis can boost overall volume sales.”
Brianna Posner, marketing director for Awe Sum Organics, an off-season importer of organic grapes and organic kiwifruit in North America, praises the clear packaging of clamshells. “For organic, it is important to highlight the fruit in an eye-catching color to indicate that the product is organic,” she says.
Placement Matters
Sarah Deaton, North American marketing manager for Zespri, a New Zealand–based cooperative of kiwi growers, concurs that placing kiwi next to berries helps. Based on a third-party merchandising study (Kantar, Everyday Shelf Market Research 2022), Deaton says moving Zespri SunGold kiwi from the exotic section next to berries may result in +64% total fresh fruit sales uplift, driven by higher basket spend. “Placement of Zespri next to berries also has no negative impact on berries,” she says. This discovery was based on a virtual study that recreated a store and invited people to come in as if they were shopping. “We had kiwi in different places and we looked at what they were putting in their basket,” Deaton says. “When kiwi was with the berries, it did very well.”
Rector says Harp’s has success with placing kiwi near bananas. “The banana table is probably the most frequented place in the department, so we use that to our advantage,” he says. “We’ve also done that with mangos and Medjool dates and some other things that kind of fit that tropical narrative, but also fit nicely in with bananas.”
Strawberries and blueberries are a high-traffic area, which makes them harder to overlook. In the Midwest, Rector says tropical fruits such as mangos don’t move as well due to lack of familiarity. “Tropical fruits in general have been a focal point of ours, because for the longest time it was just bananas and pineapple and occasionally kiwi or mango hidden somewhere on the fruit wall,” Rector says. “We took a step back and looked at how we were merchandising kiwis and whatnot and took a deep dive on not having those fruits hidden on the fruit wall, moving them to the banana table, displaying them with the berries, and giving them more exposure overall. If you’re used to selling half a case of something, and then you’re selling two cases, that’s a pretty big increase for your individual store, not to mention the company overall.”
Displays & Signage
Jackson from Frieda’s notes that effective display strategies such as using vibrant colors, clear signage and strategic placement. “Signage should not only highlight the kiwi’s origin and benefits but also include engaging facts or recipes,” Jackson says. “Position kiwis at eye level in high-traffic areas to maximize visibility and encourage impulse purchases.”
Seasonal displays capture customer attention by creating a sense of novelty and urgency. For example, in summer, Jackson says stores can create a tropical-themed display with kiwis alongside other exotic fruits such as dragon fruit and pineapples. During the winter holidays, incorporate kiwis into festive arrangements, perhaps with suggestions for holiday recipes or gift baskets.
Desnoyers likes to use shipper bins to merchandise kiwifruit. “They help this special item that isn’t usually on the shopping list stand out,” Desnoyers says. “While apples, berries and bananas get many shoppers to the fruit aisle, kiwi are often an impulse purchase, so positioning them where they can easily catch their eye is key.”
Zespri has attention-grabbing display bins for SunGold, organic, and green kiwi. Deaton says these displays make a significant difference in sales. “Retailers saw an 80% lift in sales average when a display was paired with a TPR ,” says Zespri’s Deaton.
Advertising & Promotion
Justin Rowe, produce category business manager at Tops Friendly Markets, says they advertise kiwi in their weekly circular once a month or more. Tops, headquartered in Schenectady, NY, is in the process of a merger with Price Chopper, and the parent company is now called Northeast Shared Services, which maintained Price Chopper’s headquarters based in Buffalo, NY. Combined, there are 300 locations in New York, Vermont, Pennsylvania, and Connecticut.
“We’ve seen the most success when we pair kiwi along with something else that’s a little more mainstream,” Rowe says. “A buy one get one free with berries and kiwi is probably one of the more successful promotions we run, and putting it in the ad helps increase volume.”
Another successful promotion is a four for $3 mix-and-match deal allowing shoppers to purchase any combination of kiwis with lemons, limes and navel oranges. “That has helped sales for bulk kiwi which has also helped the package sales that helps graduate them into the 1-pound packages and to try the Golden kiwi,” Rowe says.
Rowe says that including kiwi in their advertisements encourages their stores to put kiwi on display along with whatever else is on sale. For the second year, Rowe says they have concentrated on increasing sales of Golden kiwi by breaking it out from the home display and into their own display bins in about 80 to 90 Tops stores.
At Harp’s, Rector says they combine special placement for kiwi along with temporary price reductions. Harp’s highlights marked-down items with a bright pink tag, both for items in the circular or in-store specials. “Our customers have grown accustomed to looking for that sale tag, so that’s how they know there’s a value,” Rector says. “We’ve done some TPR pricing on kiwi to generate those pink tags, as well as giving kiwi the overall exposure by being in the berry cell.”
Increasing Familiarity
Melissa’s, a large variety supplier of produce in the United States, offers four main kiwi products: traditional green flesh, Golden kiwi, organic kiwi, and kiwi berries. Golden kiwi represents about 5% of kiwi production, with potential for growth, says Robert Schueller, director of public relations for Melissa’s. Traditional green kiwi has a fuzzy, brown exterior that is typically peeled away, although it doesn’t have to be. Golden kiwi has a smoother, less fuzzy skin. And kiwi berries, about the size of a quarter, have a thin, edible skin. Melissa’s focuses more on organic kiwis and kiwi berries, which have fewer suppliers.
Consumers tend to purchase products they recognize and trust. Without the opportunity to sample less familiar items such as kiwis, shoppers may be reluctant to add them to their shopping carts. Kiwis face an additional challenge: their brown exterior resembles a small, fuzzy potato, masking the vibrantly colored interior.
Desnoyers suggests that kiwifruit can be marketed through vibrant displays and cross-merchandising with complementary items including smoothies, yogurt and granola. Another option is to increase the amount of kiwi in cut fruit bowls and platters. Once customers taste and begin to recognize the kiwi as cut fruit, they may seek it out when it is on display.
Demand For Organic & Private Label
Desnoyers says there is a definite interest in year-round private label options for kiwi, especially the green kiwi, with quite a few initiatives already in progress. “Organic green kiwis are also in demand, reflecting the growing consumer preference for organic produce,” she notes. “There is strong demand for both organic green and gold kiwi, with demand often exceeding supply. This highlights a significant market opportunity for expanding organic kiwi production and availability.”
Zespri’s Deaton says demand for organic kiwifruit is strong. This past season, organic Zespri eclipsed $5 million in total retail sales across the U.S. market, a dollar growth of +28% and a volume growth of +20% (Source: Circana Total US (WE 10/8/23 and WE 12/31/23). One-pound organic SunGold accounts for more than half of the total Zespri organic sales this past season while also driving the largest growth (+60%). One-pound organic Zespri Green is the second best-selling organic Zespri item, growing +8% to a total of $1.8 million in sales. Organic Zespri has seen five straight years of growth in the U.S., with a 4-year CAGR of 92%.
Kiwis of the Future
Eric Ziegenfuss, category director of tropicals for Oppenheimer Group, points to innovative new products including Red Passion and Gold Passion kiwi varieties, which, combined with existing but less-familiar products such as the kiwi berry, demonstrate the fruit’s untapped potential. Shoppers who are already familiar with kiwi are primed to explore and embrace a wider range of kiwi products, and those who are just discovering kiwi have much to keep them interested beyond the traditional green variety.
Looking ahead, the kiwi industry shows promise despite recent challenges. Ziegenfuss anticipates increased volume from Italy, Greece, and Chile in coming years. While inflation has affected this traditionally niche fruit, kiwi is transitioning from a specialty item to a more mainstream choice. Barring significant climate events, the outlook remains optimistic. As supply expands to match demand, the kiwi market appears poised for continued growth and wider consumer acceptance.
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