Big Opportunity In Edibles

Big Opportunity In Edibles 

Between the economic downturn facing the country and the desire of the consumer to obtain fresh produce that has not been tainted with chemicals, the edibles category has become the fastest growing sector of the green goods industry.

According to the National Gardening Association (NGA), 31 percent of all U.S. households (36 million) participated in some form of edibles gardening in 2008. And 43 million households planned to do some kind of edibles gardening in 2009–a whopping 19 percent increase. No other sector of green goods can claim anything close to these numbers. In fact, some would argue most categories are flat to declining. And it seems logical the 2010 edibles figures, along with the figures to come, will continue to show strong growth.

Although these numbers are impressive, it was apparent this spring there were a limited number of bedding plant growers participating in the growth of edibles. The dominant provider of vegetables to the national retailers is Bonnie Plant Farm, which serves all three national retailers coast to coast with minimal involvement from local growers. There are, however, some new programs and players entering the category, and this will bring more innovation and creativity to this fast-growing category.

Big Edibles Picture

While Bonnie Plants dominates, there are new entries like the Lowe’s “Grow Your Own” brand that is arguably the most extensive edible program. Plus, there’s Burpee Home Gardens. You would expect with Burpee’s consumer awareness and brand recognition, it will become a significant factor in the category.

There are also a few regional programs that are interesting and have a lot of potential. Chef Jeff’s, a regional brand sold only to independent garden centers, has some of the best packaging and POS materials, plus a good consumer website at ChefJeff.com.

In the Northwest, Smith Gardens developed two vegetable and herb brands that are organically grown: earthe and growe. Both have excellent packaging, labeling and POS materials.

Another organic branded program is Organiks from the Plug Connection in California. It seems to be more prevalent on the West Coast, although it has been seen at Pike Nursery locations in the Atlanta market.

New for the 2011 season is a Proven Selections program called Tasty Treats, a line of vegetables and herbs in a 288 plug tray sold as a 252 tray. The program has an extensive line of high-quality POS materials. The line is positioned as the best performing varieties that are the tastiest. Expect to see a lot of activity if highly promoted by the Proven Winners group.

More Than Herbs & Veggies

The edibles category is rapidly evolving into a broad spectrum that includes dwarf fruit trees, berries and items like onion sets, potato eyes and dormant strawberries. An area of edibles that seems to be somewhat untapped is the container sector and, according to NGA, 48 percent of all households have reported growing edibles in containers.

There seems to be a growing interest in berries, with many more blueberries, blackberries and raspberries appearing on retail shelves the last two seasons. One notable company that is a leading breeder of berries is Fall Creek Nursery. It’s developing dwarf berry plants that can flourish in a container or in the ground with attractive flowers, foliage and colorful canes.

Where’s The Money?

With annuals and perennials suffering from little to no growth, the edible category presents many opportunities for sales growth and is a highly profitable sector with increasing demand. When reviewing the current retail price points, it becomes clear there is little resistance to premium prices from the consumer as evidenced by the number of 1-gallon vegetables sold at $5 to $7 at the national retailers–and even higher at independent garden centers.

Consumers who live in urban areas often purchase one to three plants because of space limitations and seem to have little concern for the price point. After all, they will spend more on the container, soil, trellis and fertilizer.

Container gardening is a large sector in the edibles category, with 48 percent of consumers reporting they participated in container gardening of edibles. We all get excited about creating flowering container gardens and spend a lot of time trying to create the right recipes, but there seems to be little emphasis on creating compelling edibles containers.

There are many opportunities relative to creating compelling and profitable edibles containers, and it does not have to be a complicated process. Take for instance a 10-inch patio pot with one tomato and trailing annuals around the perimeter. This combination of edibles and annuals could help make very enticing displays at the point of purchase. What about adding marigolds that are perceived to be insect deterrents? Or planting a hanging basket with dwarf tomatoes and edge it with verbena?

Floranova has developed this incredible line of dwarf vegetables under the brand Vegetalis. Its vegetables are ideal for hanging baskets, mixed patio pots or used as individual varieties in small patio containers. With these types of varieties, low-cost, high-margin containers could easily be created. Imagine the sell-through potential with some really cool dwarf vegetables in a 7- or 8-inch container under $10 retail. There are some real opportunities in both patio edibles and mixing flowers and edibles.

Great Margins

In an environment of shrinking margins and flat demand, the edibles category is an area of growth and a category of some of the highest gross margins in a grower’s product portfolio. Considering the cost of perishable inputs, what other category has lower input costs?

Consider the difference between a 4.5-inch vegetative annual from an unrooted cutting (URC) with a grower cost of 25 cents with an average selling price of $3.98 retail. Compare that to a 4.5-inch vegetable from seed with a 3-cent grower cost and a $3.48 cost at retail, assuming the same grow times for each. A 10-inch patio pot with four URCs costing $1 compared to the same container with one tomato seed costing 3 cents clearly shows vegetables present great opportunities for increased margins.

The vegetables category is growing fast and brings in new gardeners. Now is the time to take advantage of the opportunities while giving consumers what they want.

Leave a Reply

More From Finance/Operations...

March 4, 2015

Nexus Corporation’s Cheryl Longtin Encourages Women To Seek Volunteer Leadership Opportunities

When Cheryl Longtin came to the horticulture business in 1994, she applied her experience in the automotive industry to promote the adoption of more technology in greenhouse production. Longtin says horticulture, with its rich family tradition, has long promoted women in the industry compared to other industries, but women in horticulture must continue to seek out opportunities to provide volunteer leadership in organizations that shape the future of the business.

Read More

March 4, 2015

Second Annual GreenhouseConnect Will Bring Growers and Suppliers Together in San Diego This October

Following a successful inaugural event in Tampa last fall, Greenhouse Grower has announced the dates of its second annual GreenhouseConnect: October 26-29, 2015. Representatives of an expected two dozen leading greenhouse operations from across the U.S. will join senior-level suppliers at Rancho Bernardo Inn in San Diego for several days of one-on-one strategic meetings, a growers-only roundtable, informational sessions and a variety of networking events.

Read More
cultivate'15 logo

March 4, 2015

Cultivate’15: AmericanHort Announces What’s New

In an industry that has seen major changes occurring at a fast pace, many industry professionals leave Cultivate with their heads spinning and no clear idea of how to regroup and strategize. Cultivate’15 is “Changing the Game.” As this year’s focus, Changing the Game will call your attention to the ways in which our industry has changed and your opportunities to compete successfully.

Read More
Latest Stories

March 4, 2015

Second Annual GreenhouseConnect Will Bring Growers and …

Following a successful inaugural event in Tampa last fall, Greenhouse Grower has announced the dates of its second annual GreenhouseConnect: October 26-29, 2015. Representatives of an expected two dozen leading greenhouse operations from across the U.S. will join senior-level suppliers at Rancho Bernardo Inn in San Diego for several days of one-on-one strategic meetings, a growers-only roundtable, informational sessions and a variety of networking events.

Read More

March 4, 2015

Maryland Green Industry Associations Unite

The Maryland Nursery and Landscape Association recently announced that it is expanding its reach to include the greenhouse industry, meaning it has become The Maryland Nursery, Landscape and Greenhouse Association (MNLGA). The change comes as a result of the planned dissolution of the former Maryland Greenhouse Growers Association and the invitation for those members to join the existing and renamed association.

Read More
IPPS Sharing Plant Production Knowledge Globally Logo

February 25, 2015

International Plant Propagators Western Region Sets Ann…

The annual meet for the International Plant Propagators' Society (IPPS) Western Region has been set for this September. It will take place September 23 to 26 in Modesto, Calif., and will include learning sessions, tours to local nurseries, a research poster display and poster presentations, various networking opportunities and an awards banquet to close the event.

Read More
myers industries Lawn and Garden Logo

February 24, 2015

Myers Industries, Inc. Lawn And Garden Business Sold, N…

The management of Myers Lawn and Garden Group, along with Wingate Partners V, L.P. have recently acquired the Myers Industries, Inc. Lawn and Garden business. The new company is named The HC Companies, and will continue as a North American leading provider of horticulture containers supplying the greenhouse, nursery and retail markets.

Read More
american-hort-logo

February 17, 2015

AmericanHort Announces New Board Members

AmericanHort recently announced the election of new officers and members to the board of directors. Each will assume their positions on the board during Cultivate’15, July 11 to 14 in Columbus, Ohio.

Read More
All American Selections

February 17, 2015

All-America Selections Elects New Officers, Names New J…

While meeting during the Flower and Vegetable Seed Conference in Tampa, Fla., hosted by the American Seed Trade Association, All-America Selections elected new officers for a two-year term. Read on to learn about the new officers, as well as all of the new judges that were added in 2014.

Read More
Greenhouse Grower.com on your desktop, on your phone, on your tablet

February 11, 2015

GreenhouseGrower.com Relaunches With Responsive Design …

Greenhouse Grower magazine, the nation’s leader in profits, production and education for greenhouse growers, announces the launch of its completely redesigned website, GreenhouseGrower.com. The new design is the product of direct user feedback and GreenhouseGrower.com analytics, and includes responsive design for ease of mobile use.

Read More
Andy Higgins

February 3, 2015

MasterTag Names Andy Higgins As Its New President

Former CEO and president of Ecke Ranch, Andy Higgins, joins MasterTag as its new president. He brings more than two decades of industry experience to the position.

Read More
Syngenta Bioline Hires Ronald Valentin For Technical Lead Role

January 28, 2015

Syngenta Bioline Hires Ronald Valentin For Technical Le…

Ronald Valentin has been appointed technical lead for Syngenta Bioline, effective January 2015. He will be responsible for technical support of Bioline biological control agents and will be instrumental in helping growers develop integrated pest management (IPM) solutions.

Read More

January 27, 2015

Give Equal Time To The Number Crunchers

Before investing in a new business opportunity, check in with the financial gurus of your organization to make certain you have the cash flow to back up your efforts.

Read More
Plant Introductions, Inc. partners Mark Griffith, Dr. Michael Dirr and Jeff Beasley and Bailey Nurseries President Terri McEnaney.

January 20, 2015

Bailey Nurseries’ Purchase Of Plant Introductions Inc. …

When Bailey Nurseries purchased its long-time breeding partner, Plant Introductions, Inc. (PII), in early January 2015, it freed the PII team to concentrate on what they do best: develop new plants. Bailey Nurseries will take on the business management side of the partnership, but otherwise the relationship it has enjoyed with PII for years will be largely unchanged.

Read More
Plant Introductions, Inc. partners Mark Griffith, Dr. Michael Dirr and Jeff Beasley and Bailey Nurseries President Terri McEnaney.

January 13, 2015

Bailey Nurseries Acquires Plant Introductions

Bailey Nurseries has acquired Plant Introductions, Inc. (PII), effective January 1, 2015. PII has developed numerous innovative new varieties that have been marketed worldwide, many introduced by Bailey Nurseries.

Read More

January 7, 2015

How Inflation Affects Your Business And Why You Can’t I…

Awareness of the true increase in costs after inflation is a necessary part of good financial management for greenhouse operations.

Read More

December 4, 2014

New Developments In Shipping/Logistics Software

Improved shipping and logistics software from Picas Software and MapMechanics makes it easier for growers to plan loads efficiently and automate day-to-day distribution planning.

Read More
Fritz Dramm

December 2, 2014

Dramm Corporation Welcomes Back Fritz Dramm

Dramm Corp. recently welcomed Fritz Dramm as the new fertilizer production and compliance manager. Dramm previously worked at the company through high school and college, and is back after 20-plus years.

Read More
Sarah Harwood

November 24, 2014

Take Control Of Your Operation’s Succession Planning Pr…

Proper business and estate planning with your intentions clearly expressed can ensure your goals for the future of your business are fulfilled.

Read More

November 24, 2014

Succession Planning For Growers

Succession planning is a sensitive subject, but one that needs to be addressed when deciding on your operation's legacy. Greenhouse Grower caught up with two growers who shared their process and provided tips for a smooth transition.

Read More

November 24, 2014

BrightFarms Pioneers Hydroponic Greenhouses For Urban A…

BrightFarms brings fresh, local produce to underserved areas with hydroponic greenhouses located on neglected urban spaces.

Read More