In Canada, the consumer merchandising tradition for fresh produce has been to offer in bulk, allowing consumers to choose what they want and place it in a bag. Current trends, however, are moving towards pre-packaged products in many categories, as consumers feel that the product is better protected from contamination.
In general terms, Canadian consumers are mainly looking for new and exciting items, such as healthy snacks and on-the-go foods, year round supply, convenience, food safety, sustainable packaging and, of course, great taste. “In terms of healthy snacking, a lot of developments have been made over the past two years, such as the introduction of mini size Sweet Bell Peppers, or the various Grape tomato varieties, such as the Zima or Splendido, characterised by their great sweetness,” explains Oleen Smethurst, of Costco.
Oleen says that there is a huge correlation between yield and cost, and while consumers are price-savvy, for them quality and taste come first and foremost. “Thus, we work together with seed companies willing to dedicate themselves to growing what we believe will be the next success in terms of taste and quality,” affirms Oleen.
In the field of convenience, Costco has introduced products such as ready-to-assemble salads containing healthy ingredients that do not compromise taste, and which offer customers the illusion of actually creating something.
This desire to create fast, simple dishes with great tasting ingredients has in part been sparked by the many cooking shows aired nowadays. Oleen says that “we are finding that people are going back to cooking at home, although it has to be simple, and the better the quality of the ingredients, the better the outcome.”
In this sense, a product that has become hugely successful for Costco is a salad containing kale, chicory, cabbage, shredded broccoli, Brussels sprouts, roasted & salted pumpkin seeds and dried cranberries and a dressing. It is making a record-breaking 8,000 Canadian dollars per building a week and forms part of a line of ‘superfoods’.
The next generation of ‘superfoods’, according to Oleen, will include stir fry kits, which will aim to meet the new Canadian sodium reduction regulations, as well as smoothie vegetable blends and packaged curly baby kale, which is rich in vitamins and minerals and therefore ideal for a healthy diet.
Another aspect that has gained a lot of relevance is taste. Oleen explains that “the better the flavour and quality in the store, the more consumers will look for those products. Consumers are thus educated to appreciate and demand taste. An example of a product following this philosophy is the lemony arugula blend, which contains leaves with a delicious citrus taste.”
Oleen assures that innovation and item development translates into trends in packaging and merchandising, and innovation can often come from very interesting, yet simple ideas. A great example of this is the process which resulted in the creation of the 8 inch celery sticks. “We were selling packs of celery hearts and were considering discontinuing the item due to low sales,” says Oleen.
4 inch celery sticks were already available in the market, and in order to introduce differentiation, while revitalising celery sales, the 8 inch stick was created; a format generating a much lower amount of waste, as the inedible parts have been removed, and which is a lot more efficient. “Ideas for innovation do not need to be mind-shattering, simply different,” states Oleen. Innovation can also come hand in hand with convenience, as illustrated by the “Shake and taste” salads.In general, Canadian consumers are becoming much more environmentally conscientious, expecting products that have great quality, taste and freshness, but without compromising sustainability. In Canada, consumers are generally opposed to over packaging and this reflects on item sales.
The latest trend in this regard is the Top Seals packaging, which offers advantages such as higher product visibility, stackability and the ability to transport more produce while naturally extending its shelf life by controlling the respiration rates with micro-perforated film. The use of sustainable packaging has resulted in a 25% reduction in plastic (36,350 kilos less) for Costco.
Lastly, it is also worth noting what a big role social media plays nowadays, with consumers interested in knowing where their food is coming from (traceability) and find out ways to use the items they are considering purchasing. “In this sense, QR Codes can be very helpful if they link directly to recipes, cooking methods, but also to grower traceability and grower stories, because they want to connect with the farm,” concludes Oleen Smethurst.
For more information, please contact: www.costco.ca