California Walnuts’ plan to move out of the kitchen

The California Walnut Board is encouraging retailers to treat walnuts as a fresh food with uses that extend beyond baking. 

Promotions, recipes, and closer retailer relationships are driving the strategy, CEO and Executive Director Robert Verloop told FreshFruitPortal.com during the Global Produce & Floral Show in Orlando, Florida, this month.

What progress are you seeing in repositioning walnuts?

It has been very rewarding, and we really are getting some traction. We collect retail scan data through Circana, and while the overall nut category has been relatively flat, with some declines in recent years, walnuts are outperforming it.

We attribute some of that to repositioning walnuts and bringing in the promotional tempo you see in produce that you don’t see in the center of the store. We're seeing kind of a fresh produce mentality coming into what we think is a produce item.

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What is the argument for produce managers?

Our analysis shows that baskets containing walnuts are around $50 higher in value. We also see produce items among the products associated with those purchases.

So it only makes sense that the produce manager, the merchandisers, and buyers are all in sync because it helps their department. And so, 65 percent of our promotions today are in produce. 

We still respect and want the business that goes on in baking and snacking, but really to drive volume, you need to be in the produce department.

How are retail sales developing?

In the last 52 weeks, our total sales are over 60 million pounds in US retail, which is a 12 percent increase over the last five years. 

Those are encouraging improvements. It also means that this Feel Good campaign is connecting with younger consumers. We're trying to get them to be thinking more about walnuts, not as a baking item, but as a fresh, real food.

What resonates with younger consumers?

The younger generation is much more in tune with nutrition, health, and wellness. And the health and nutrition messaging that we have out there is resonating with them because that's what they're looking for: They're looking for things that are good for them, make them feel good physically, and help them feel good about what they're doing for themselves, for their families, and, in many cases, sharing with friends. 

Charcuterie boards are a good example. Walnuts are a natural partner for cheese, and younger consumers have embraced those occasions, often with a premium approach. People love to entertain. They like to show off what they've learned in their travels or restaurants that they've been to. 

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And we find that those recipes help people express themselves to their friends on Friday and Saturday night. We're seeing those recipes get bigger hits.

How are you broadening usage?

We work with chefs on culinary applications and ways to include walnuts throughout the day. 

Limited-time restaurant offers are increasing, and we are doing cross-promotions with products such as yogurt, oatmeal, and salads. There are cultural connections too, including walnuts and dates for Ramadan. 

This versatility gives us different ways to introduce walnuts to consumers.

How do you work directly with retailers?

We have three regional retail merchandisers in the United States who call on accounts and help set up promotions. 

That can include secondary displays, joint marketing with other products, recipes, and demonstrations. We encourage larger displays and new ideas around pack sizes. 

Retailers then work with suppliers to fill those displays. We also arrange meetings and tours involving our processors and retail partners.

Written by Tom Azzopardi | Reported by Ed Vernon in Orlando, Florida

*Main image by Ed Vernon; other images are referential via Shutterstock.

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