Food Fight: Packaged Food Companies Want to Move to the Produce Aisle
Posted on October 24, 2011Makers of packaged foods, dairy products and vegetable juices are eyeing a move to the produce section of the grocery store. The Wall Street Journal has a very interesting article about the latest maneuverings in the grocery store industry. Kraft is just one major company that wants its products moved to the product section to capitalize on the "halo effect" of appearing with fresh produce. Research shows that products that are placed in the produce section are viewed as healthier and more desirable to consumers. Kraft Foods has done a great deal of market reseach and is willing to pay big bucks in slotting fees to get its products in the produce section. V-8 is also looking into the idea of having its juice moved from the soft drink section to the produce section.
Grocery stores have been making changes to the produce sections to make them look more like farmer's markets, with lower displays and pyramids of fruit and vegetables. Produce is usually located at the front of a grocery store, where foot traffic is highest. But if everyone wants to be in produce, there is going to be some major crowding problems. And many grocery stores don't like the idea of packaged foods invading the produce section. The WSJ's Sarah Nassauer discusses this new trend: