Natural Products Are Driving Fresh Sales

Daniel Lohman
Strategic Advisor

Natural products are driving growth in almost every category. Shoppers are looking for healthier alternatives to supplement their diets. They’re reading labels because they want to know what’s in their food and how it was produced.

But what about the fresh department? How can retailers capitalize on these important trends in the fresh department to satisfy their shoppers’ needs and attract new loyal customers?

First, retailers need to understand what’s driving the trends in natural. Natural or better-for-you products are capitalizing on shoppers’ demand for products that fully meet their nutritional needs. This includes unprocessed or minimally processed products. This also includes the raw ingredients that the products are made from, like grass-fed animals.

At the heart of the natural product movement are words like “authenticity” and “transparency.” Many consumers believe that “non-GMO” is “better” than organic, but non-GMO simply means that the seeds used to grow a plant aren’t genetically modified. It doesn’t dictate how the crops are cultivated.

Only certified-organic products come with the promise of not containing pesticides and herbicides. Many organic products have “clean labels,” meaning there’s complete transparency and authenticity in every step of how they’re made, from the raw ingredients to the final product. This frequently includes sustainable farming methods and giving back in the form of fair wages to growers.

A retailer that wants to be a market leader in better-for-you products needs to offer a healthy balance of natural/organic products to enhance and augment its current product selections.

The fresh department is the entry point for consumers who want healthier products. This is where they begin to explore nutritional options to decide what products will best meet the needs of their families. For example, several experts recommend that children drink only organic milk produced by cows that aren’t treated with antibiotics and are given GMO-produced feed. Others may want fruits and vegetables free of pesticides and herbicides.

The important point here, regardless of retailers’ beliefs regarding organic products, is that consumers want choices. Shoppers want to make choices based on their beliefs, wants and needs. Retailers willing to provide well-merchandised, quality choices will reap the benefits of increased category sales, loyal shoppers and a reputation for being customer-centric.

An added benefit of this strategy will be the opportunity for the retailer to help educate shoppers about healthy alternatives. Several retailers have deployed nutritionists throughout their chains; other have adopted product nutrition-grading scales. Some retailers effectively use both.

These initiatives enable a retailer to develop a more intimate relationship with its shoppers. This is perhaps the best form of sustainable customer loyalty program. Shoppers want and need to be appreciated and valued. Sometimes, the best way to accomplish that is to partner with them to help them reach their goals for health and vitality – and the happier life that comes with them.

About the Author

Daniel Lohman

Daniel Lohman is a strategic advisor in the CPG and organic industry, whose mission is "Empowering Brands and Raising the Bar." Lohman's weekly newsletter, educational podcast and training courses are resources for brands and retailers seeking a competitive advantage. To learn more, visit BrandSecretsandStrategies.com or email [email protected].

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