Rx for retailers, consumers: fresh-cut salads offer a popular blend of convenience, nutrition...

"Take two dark green, leafy salads and call me in the morning."

OK. So maybe you haven't heard a doctor say that yet. But just wait...that time might come.

Refrigerated fresh-cut salads are proving to be just what the doctor ordered for retail customers and consumers alike.

"This category continues to grow as baby boomers become more health conscious and as consumers -- in general -- demand more convenient products," says Ken Hodge, editor of Fresh Cut magazine, Yakima, Wash.

"In particular there's been an explosion of growth in dark leafy greens. Consumers are learning that these foods are more nutritious and they're selecting them. Spinach, in particular, has been one of the fastest growing segments in salads and packaged vegetables."

Within the fresh-cut salads area the blends segment drives most category activity. Bill Zinke, vice president of marketing for Ready Pac Produce, Irwindale, Calif., estimates that salad blends -- as compared to traditional garden salads or even salad kits -- are growing at a 20-percent annual clip and drive 40 percent of category sales. These value-added products range from Dole Food's Hearts of Romaine offering to Ready Pac's new Portofino European-style blend.

As an example the 5-oz. Portofino blend combines baby arugula, baby spinach, frisee and lollarosa greens. Zinke says Ready Pac developed the mixture after seeing arugula appear on several mainstream restaurant menus.

"This is part of our high-tier line and we felt as though the time was right for such an offering," he says. "The product has done extremely well and gives consumers a very flavorful, exciting taste experience. It's also visually appealing with texture and colors such as reds, dark and light greens."

Zinke readily admits that even in a healthy category every company has its share of new product successes and failures in new products. Nevertheless, the category remains on-trend for several reasons.

"Time is at more of a premium than money, he notes. "Consumers have shown they're willing to spend a little more to save time. There's an increased awareness of the health benefits of dark leafy vegetables. Spinach is now viewed as a 'power' vegetable with so many good [nutritional] things working for it. Last but not least, consumers want exciting and interesting restaurant-style salads. Although iceberg lettuce is still the most popular salad ingredient by volume, at-home diners can now get restaurant-style flavors and textures in a very convenient package."

He concludes, "These trends will continue over the next year and probably for at least the next five years. Meanwhile, we'll be looking for more ways to save time for consumers and give them an exciting, healthy meal component."

CATEGORY CLOSE-UP: FRESH CUT SALAD BRANDS -- TOP [3.sup.*]

Total U.S. Supermarkets $2 million and over, 52-week period ending Feb.
24, 2002

                  Dollar Sales  $ Sales   Unit Sales  Unit Sales
Category           (millions)   % Change  (millions)   % Change

Total Category      $1,768.4       9.3      781.5         7.3
1. Fresh Express      $651.6      10.8      289.2         7.9
2. Dole               $548.0      10.2      245.3        11.3
3. Private Label      $182.7      10.9       88.2         8.3

Source: Information Resources Inc., InfoScan data
FRESH CUT SALAD LEADERS BY DOLLAR SHARE -- TOP 5

Total U.S. supermarkets $2 million and over, 52-week period ending Feb.
24, 2002


Fresh Express    36.8%
Dole             36.8%
Private Label    10.3%
Ready Pac         8.3%
Earthbound Farm   3.5%
All Other         4.3%

Source: Information Resources Inc., InfoScan data

Note: Table made from pie chart