State of the Industry, Part 2: still going, still growing; Prepared fresh salads target health,...

We're not talking about wrinkles or gray hairs, but the prepared fresh salads category is maturing. Gone are the category's annual double-digit dollar and unit volume increases. Acquisitions and mergers mean that some industry players are gone as well.

Even so, fresh-cut packaged salads

"Demand for 'do-it-for-me' convenience has been the big driver behind the tremendous growth of pre-cut, pre-washed and packaged fruits and vegetables for the past 15 years," said Jerry Welcome, president of the International Fresh-Cut Produce Association (IFPA). "But convenience is now getting a big boost from growing concerns about obesity and health issues in general."

Among those hitting on the health theme is category leader Fresh Express, Salinas, Calif. This summer, the company launched "Low Carb Living Made Easy!"--a retail program showcasing three Fresh Express Tender Leaf Blends naturally high in nutrition and low in carbohydrates: Baby Spinach, Spring Mix and Baby Spinach Trio (with baby spinach, arugula and carrots).

"Low Carb Living Made Easy provides participating retailers with a turnkey promotion that plays directly to shoppers' demand for low-carb quality meal solutions," says Robin Sprague, corporate communications director. "Its high-appeal format promises to take our Tender Leaf Blends to a new level in stores while, at the same time, serve the needs of consumers by providing a variety of nutrition-friendly, at-a-glance ideas for menu preparation."

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Fresh Express has been equally busy on the product front. This year saw the company bolster its Premium Garden Salads line with improvements to two SKUs--Green & Crisp and Double Carrot--and the addition of the Lettuce Leaf Trio with Green Leaf and Premium Romaine varieties. The company also added sugar snap peas to two of its popular salads: Veggie Lovers and the Oriental Salad Kit.

For its part, Dole Food Co., Westlake Village, Calif., is targeting consumer convenience. Among its new products are Angel Hair Cole Slaw, ready for use in salads, stir fry's and soups, and Tender Spinach, packaged in a 9-oz. container for quick use in fresh-tossed salads or cooked meals.

Dole likewise has packaged some of its most popular blends--Baby Spinach, Baby Romaine and Spring Mix--in easy-to-open containers that also are reusable and recy-clable. Ideal for on-the-go convenience, they make it easy for consumers to mix in a favorite dressing and eat straight from the container, the company says.

Building on that same theme has been Ready Pac Produce of Irwindale, Calif. Another of the category's leaders, Ready Pac developed the "Easy One-Dish Dinners" in-pack promotion, which features more than 2.5 million coupons for Ready Pac fresh-cut vegetables, fruit and salads. The coupon booklet also includes easy one-dish recipes for quick meal ideas that encourage the use of fresh-cut produce. The booklets will be inserted into Ready Pac's signature European-Style Salads.

Says Marji Morrow, Ready Pac's director of marketing: "Americans are using fewer ingredients at dinner, and Ready Pac is responding to their needs with promotions such as 'Easy One-Dish Dinners.'

Fresh Cut Salad -- Top 5 Brands

Brand               Dollar Sales  Dollar Sales  Unit Sales  Unit Sales
                    (millions $)  % Change*     (millions)  % Change*

1. Fresh Express      777.7       11.4          336.7        8.8
2. Dole               673.2        9.1          315.5        7.9
3. Private Label      219.6        2.5           94.4       -7.1
4. Ready Pac          124.6       10.6           45.1        7.9
5. Dole Greener       106.4        4.8           54.0        2.2
   Selection
Total for category  2,066.6        8.6          903.1        5.8

*From previous 52-week period
Source: Information Resources Inc., InfoScan data, total sales for U.S.
supermarkets, drug stores and mass merchandisers, excluding Wal-Mart,
52-week period ending Aug. 8, 2004