With new sales data available to us, we’re continuing to get a clearer picture of how COVID-19 is impacting consumer buying behaviors. While produce sales are still up overall, the tremendous spikes seen in the previous two weeks are tapering off as consumers enter a “hunker down” mentality. And with retailers limiting store hours and maximum occupancy to promote social distancing, the shift to online ordering is increasing.
These changes, among others, have prompted urgent pleas for increased agricultural assistance from industry groups and Congress members alike. While consumer purchasing is shifting, the commitment of support for our ag and grocery industry remains strong at the federal level with Congress and the Trump administration. As we wait to see what more financial support will be made available to growers over the coming months, we’ll continue to monitor production, sales data and consumer trends so our industry can collaborate and innovate in this changing landscape. |
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| Source: IRI, Total US, MULO, weeks ending March 1, 8, 15, 22 and 29, 2020. |
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Consumer Demand: New IRI Data Shows Moderate Growth for Fresh Produce
According to new data from IRI (IRI, Total US, MULO, week ending March 29, 2020), during the week of March 29, produce sales continued to show elevated levels regardless of where they were sold in the store, with fresh produce increasing 8.1% over the comparable week in 2019. The two previous weeks saw growth of 34.5% and 29.7%, respectively. Fresh fruit sales growth dropped back down to single digits, at +1.5%, with berries remaining one of the largest categories. For the week of March 29, berries saw 4% in dollar growth.
Shoppers have been distributing their produce dollar between fresh, shelf-stable and frozen. For the week ending March 29, the split was 76% fresh, 14% shelf-stable and 10% frozen.
(Data summarized by The Packer and Produce Blue Book) |
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| Source: IRI, Total US, MULO, weeks ending March 1, 8, 15, 22 and 29, 2020. |
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Food & Farm Aid: NABC Meets with USDA’s AMS To Discuss COVID Impacts
On Tuesday, April 7, the North American Blueberry Council’s (NABC) Procurement Task Force held a videoconference with AMS Administrator Bruce Summers to lay out an initial understanding of the economic loss blueberry growers are facing due to COVID-19.
In addition to the pending $10M Section 32 blueberry buy recently announced by AMS, NABC will be working closely with Administrator Summers and his team in the days and weeks ahead on further opportunities and programs for blueberry purchases.
Food & Farm Aid: Produce Market Stabilization Program
Numerous produce industry groups have submitted a Produce Market Stabilization Program proposal to the U.S. Department of Agriculture (USDA). The program outlines critical support for the produce supply chain, including $5 billion in funding. Due to foodservice and school shutdowns, the industry report emphasizes this is critical to make up for the projected $1 billion per week loss in sales revenue.
Food & Farm Aid: Congress Members Reach Out to USDA
Yesterday, 108 members of Congress wrote a letter to the USDA requesting additional direct support for speciality crop producers. The letter requests that when assessing the allocation of the CARES Act, Congress “reserve funding to develop and execute a recovery and relief plan for the specialty crop industry.” This includes additional USDA purchases of fresh fruits and vegetables, direct payments to crop producers who have suffered COVID-19 losses, and additional assistance for those that can not meet obligations under the Perishable Agricultural Commodities Act (PACA).
Food & Farm Aid: United Fresh Launches New Grant Program
The United Fresh Start Foundation has a new grant program called, “COVID-19 Rapid Response FRESH Grants,” to support impacted providers of the foodservice industry and families that need access to fresh produce. As Produce News reports: “The United Fresh Start Foundation will fund 25, $1,000 grants to produce companies and foodservice distributors that can provide fresh fruits and vegetables to schools, community groups and other emergency feeding sites for those in need. If a distributor can donate at least $1,000 worth of produce, the foundation will reimburse them $1,000. The goal is to break down the barriers that impact access to fresh produce, and bring community members and the supply chain together during this extraordinary time.” Interested distributors can sign up here, and more information on the program is available here.
Food & Farm Aid: Resurfacing the Paycheck Protection Program
We’ve heard a number of members share they’ve had trouble locating information on the Paycheck Protection Program recently rolled out by the U.S. Small Business Association in light of COVID-19 setbacks, so wanted to resurface this critical resource. You can find eligibility information, FAQs, and further loan forms on this page. Having trouble? Let us know at info@nabcblues.org.
Consumer Demand: Buying More, Shopping Less
According to a national study of 2,000 consumers by Category Partners, consumer shopping behaviors continue to shift in light of COVID-19, with shoppers stocking up on more food at once. Consumers report their largest purchase increases have been in center-store food products and frozen foods, but 40% also say they have increased purchases of meat, produce and deli items. One-third of consumers report increased use of online food ordering. |
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| Source: Category Partners, National Consumer Survey, March 30, 2020 |
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Point of Purchase: Retailer Fights to Classify Grocery Employees as First Responders
Albertsons Companies has partnered with the United Food and Commercial Workers International Union (UFCW) to push for grocery store employees to be temporarily designated as "first responders” or “emergency personnel.” This would allow grocery employees to get prioritization for COVID-19 tests and personal protective equipment like gloves and masks. To support this effort, Albertsons took out an advertisement in the New York Times explaining its effort. |
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| Source: Jason Redmond/Reuters |
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Point of Purchase: 4 Waves of Change Coming to Grocery Retail
PMA CEO Cathy Burns featured a recent Forbes article on LinkedIn that highlights four  waves of change coming to grocery retail in light of coronavirus: Hoarding, The ‘Almost’ Normal, Recession, and The New, New Normal. Contributor Neil Stern posits we were in the “Hoarding” stage at the time of its writing, likely now in the “Almost Normal” stage where stores are adjusting policies but, largely, initial stockpiling fervor has died down. While it remains to be seen, it could be that commerce changes dramatically in stages 3-4, with grocers keeping cashless, touchless and technology-focused operations far after the pandemic dies down. |
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