Today’s Tomatoes More Complex to Merchandise

To shoppers, it’s a snack, it’s a salad, it’s an ingredient — and it’s indispensable.

The tomato business is going through significant change at the retail, wholesale and grower levels, as the popular category is affected by a variety of consumer trends. And today, rather than four, five or six tomato SKUs, many stores offer a dozen or more.

The tomato’s diversity is driven by foodservice demands, consumer wellness motivation, and gourmet and ethnic food trends. To get the most of the tomato category requires innovation built around these changes and local consumer preference.

Overall, the tomato is the second most commonly consumed vegetable in the U.S., fresh and processed. Fresh tomato consumption in the U.S. started out the century at about 19 pounds per person and peaked at 21 pounds in 2011, according to Statista. The consumption number hovered above 20 pounds until dropping to 17.9 pounds during the COVID-19 pandemic, then began trending up again to reach 19.2 pounds in 2023.

KNOW YOUR SHOPPERS

At Saker ShopRite, Holmdel, NJ, demographics and the popularity of ethnic cuisine drives what the company offers. At the opening of a new store in South Plainfield, NJ, Richard Saker, the company’s president, recently observed his shoppers have strong preferences for tomato products by variety and in terms of form. Saker ShopRite customers today buy fewer fresh tomatoes because they increasingly want convenience, and are often willing to trade money for time. Saker says he runs four commissaries to turn basic commodities, including tomatoes, into what’s increasingly sought by consumers.

“They want to buy fresh salsa,” he says, adding, “This is part of this prepared food generation. They’re buying convenience and services.”

Yet the company doesn’t forsake other tomato forms. The South Plainfield store, on opening, had a special endcap display featuring bulk tomatoes and bagged avocados. To put a trendier spin on the display, the tomatoes were heirloom varieties.

Vince Mastromauro, director of produce operations, Sunset Foods, Highland Park, IL, says devising tomato merchandising programs today is a matter of using space wisely for staples, then building in more to attract more shoppers. So, he’s thinking about the shopping list sale, the add-on sale and the impulse sale at the same time

“It’s getting your bulk stuff, tying it with your tonnage item of an avocado, and your package stuff should be either behind it or on the flip side,” he says. “You’re not going to leave the department without buying a tomato of some sort.”

He looks for deals that will appeal to a customer base that’s affluent and thoughtful about food purchasing, so, when he gets a price on something such as brown tomatoes, he will get it out on a deal.

BEYOND SLICING

NatureSweet has adapted to the change in the tomato business, says Jenny Halpin, the San Antonio, TX-based company’s senior manager, external communications. Its mission, she explains, is to provide premium produce at a time when consumers are more focused on fruit and vegetable origins, quality, healthfulness and flavor.

“Our commitment to quality has driven our growth, leading to an expansion of product offerings beyond our classic snacking tomatoes like Cherubs,” she says. NatureSweet has introduced new varieties, such as Glorys, ideal for grilling, sautéing, roasting and baking, and Constellation, which delivers a burst of color and flavor. D’Vines is an on-the-vine tomato for snacking, salads, and charcuterie boards, and the company’s specialty varieties include Adora, an award-winning heirloom tomato known for its unique flavor and texture.

The increasing shift toward healthier eating and the growing preference for convenient, ready-to-eat options have prompted retailers to prioritize premium and snackable tomato varieties.
— Jenny Halpin, NatureSweet, San Antonio, TX

“Additionally, advances in controlled environment agriculture and sustainability practices have allowed us to remain at the forefront of the sector, providing fresh, high-quality tomatoes year-round,” says Halpin.

NatureSweet has gone to lengths in improving tomato eating experiences in the company’s area of focus.

“When it comes to different segments, our grape tomatoes remain a market leader, while cherry tomatoes are experiencing growing demand,” she says, adding even beefsteak tomatoes “have evolved to appeal to consumers seeking meaty, versatile varieties for cooking, with a strong preference for heirloom and premium options.”

Tomatoes’ nutritional characteristics are consistent with consumers’ desire to eat healthier, Halpin adds.

“The increasing shift toward healthier eating and the growing preference for convenient, ready-to-eat options have prompted retailers to prioritize premium and snackable tomato varieties, like Cherubs and Glorys, which align with these trends,” says Halpin. “This has led to more prominent shelf space in stores, making it easier for consumers to access these high-quality tomato options.”

CONSUMERS WANT CONSISTENCY

Danny Murphy, sales merchandising manager, Pure Flavor Farms, Leamington, Ontario, acts as a point person working directly with stores to enhance their tomato sales. He says some retailers, particularly larger chains, are trending toward uniformity of product and product presentation.

A number of those want store-to-store consistency — in both merchandising and quality — for operational and banner reasons. Other chains lean on seasonality, purchasing the best quality that still satisfies value expectations and providing tomatoes from local growers that their customers want to support.

Murphy works with retailers to build sales of all Pure Flavor labels, including MightyVine tomatoes. He says an advantage of branded produce is that growers and packers are involved in ensuring the quality, and consumers recognize that good brands maintain standards. Not long ago at a Midwestern chain, Murphy brought in 500 branded bins for display in the front of the produce section to emphasize the MightyVine label.

He also works with the Pure Flavor Group to help them develop local tomato programs. “People still care and want to know where their produce is coming from,” he says.

Part of the job is not only helping retailers understand how a branded product can boost their produce department but also helping maintain the availability of the goods. “It’s all about going into stores and relaying the consumer feedback to my buyer so she can build a better rapport with the retail team,” says Murphy.

KEEP AN EYE ON PRICE

Murphy adds that price still counts, and getting a good balance of quality and price for consumers at the store level is important.

Daniel Blumb, senior category growth manager, sales, at NatureSweet, says consumer affordability is an issue, so understanding how a consumer base weighs its options is important, whether for mealtime or snacking.

“Consumers continue to incorporate these products into their households, increasingly opting for more affordable choices, like Romas, slicing rounds and private label options,” he says. “However, many are unwilling to compromise on flavor, leading to sustained demand for premium snacking tomatoes.”

Blumb cites numbers, from the last 13 weeks compared to the previous year, that show the number of buyers for premium snacking tomatoes, like Cherubs, grew by 12%, adding 3.3 million households for a total of 31 million.

BOTTOM LINE

The appearance of more tomato varieties in a greater number of stores — as well as more ways to purchase them, from little cups of cherry tomatoes to bulk beefsteaks — requires food retailers to pinpoint specific consumer demands, whether for cooking, meal prep or snacking, to be able to refine presentations. However, that same development can create a challenge: Retailers still need volume drivers to ensure they remain connected to their core tomato customers, the most consistent and the biggest tomato purchasers.

Michael Armata, buyer and salesman at E. Armata, Bronx, NY, suggests that produce departments, even on a store basis, should each identify and promote the SKUs that are most heavily purchased, and then expand around those to entice additional purchasers and those customers whose preferences are more unique.

You’re not going to leave the department without buying a tomato of some sort.
— Vince Mastromauro, Sunset Foods, Highland Park, IL

“With so many different varieties, it’s a little more difficult to get the volume on one item,” he says, adding he uses the company’s market knowledge to help customers monitor what’s working best for them.

The multitude of tomato products demands more attention, Armata emphasizes. Unless handling at stores is given careful consideration, product quality will diminish, along with shopper satisfaction, and shrink will creep higher. Consumers storing tomatoes in a 35-degree home refrigerator may be a bad thing, but maintaining proper cool temperatures through the supply chain and to the shopper is going to mean greater customer satisfaction.

“You need to store the product with the right refrigeration,” he said. “Then, you have to think about how the rotation is with the stock in the store.”

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Be Nimble Enough to Take Advantage of Market

A tomato glut this winter was the latest twist in the tomato tale.

Michael Armata, buyer and salesman at E. Armata, Bronx, NY, says food retailers had an opportunity this winter to do major tomato price promotions to generate sales. “There has been an overabundance. With the oversupply, people could stir up business.”

Food retailers had a chance to make a statement with deals on tomatoes. On most shopping lists, consumers are generally familiar with tomato pricing, so they won’t miss and are likely to appreciate a bargain provided.

“Everything is so expensive right now with inflation, any savings is welcome. You want to be able to retail any items you can at reasonable prices,” says Armata.

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Unique Merchandising Can Benefit Online and In-Store Tomato Sales

Tomatoes not only provide abundant in-store merchandising opportunities, but they can also be a superior item for weekly ads, especially for those retailers that are emphasizing store pickup and delivery.

On a store visit to a Meijer in Rolling Meadows, IL, a key bulk tomato could be found alongside avocados. However, the bulk tomato display is tucked behind an endcap filled with packaged specialty tomatoes in various sizes and configurations, tempting shoppers to reconsider their purchasing and not in terms of switching, but in adding tomatoes for more uses.

So, while slicing round tomatoes may be on the list for sandwich making, grabbing cherry tomatoes to have with packaged salads is a no-work way of enhancing greens. Not only that, but the available vine tomatoes can slice up nicely for homemade pizza as an aesthetically interesting substitute for sauce. In other words, to get to bulk tomatoes at Meijer, you have to get through a lot of packaged products suggesting additional uses.

Merchandising of that kind suits a larger strategic goal that the company has. By getting more consumers acquainted with and even favoring packaged tomatoes at a time when the company is expanding its delivery service, Meijer has a better chance of getting them to buy online, where bulk can be problematic for some consumers who don’t want to figure out weights, who worry that a picker won’t chose the sizes they like and that people they don’t know are handling their food.

In a recent installment of the company’s weekly ad online, Meijer put Sunset Angel Sweet tomatoes on sale at two 10-ounce packages for $4.

As produce management at food retail is acutely aware today, online sales of fruits and vegetables present selling challenges because it lacks the appetizing impact of walking through a produce section. The colors, the scents and the presentations are missing. However, neatly contained product with bright packaging can entice consumers and be a relief to those who don’t like the idea of a picker selecting and handling their produce.

As such, packaging and branding becomes more important. Although a challenge when it comes to perishable products, branding does afford certain advantages for both pickup and delivered fruits and vegetables, such as tomatoes.

The development of solutions to online merchandising dilemmas is critical, as Meijer demonstrates. In December, the company announced that it was expanding its home delivery service area, tripling the range covered from an approximately 20-minute radius from its stores to 60 minutes.

“We heard from many customers who were interested in using home delivery to make their grocery shopping more convenient but couldn’t because they were outside of the delivery range,” says Emily Henao, vice president of digital experience at Meijer, headquartered in Grand Rapids, MI. “We know our customers are busier than ever, and this expansion gives us a unique opportunity to make their lives easier.”

Changes in the tomato sector are evident in the merchandising encountered at most produce departments, with layered or multiple bulk and packaged product displays, which indicates that produce management has determined that putting a wider variety of products in front of shoppers can generate more off-list purchasing.