How Supermarkets Can Get Labeling Right

Labeling on fruits and vegetables can be a powerful marketing tool, but it must be used strategically to avoid confusion and drive consumer interest effectively. At the 2024 Organic Produce Summit in Monterey, industry experts discussed best practices for supermarket labeling and how grocers can capitalize on the power of claims like “organic,” “fair trade,” “sustainable,” “pesticide-free,” and “locally grown.” However, it is crucial to ensure that these labels resonate with the right consumers and are not overused.

Key Insights for Effective Labeling:

1. Be Strategic with Claims:
   • Too many labels can overwhelm consumers, making it harder to distinguish key selling points. Michael La Kier, Vice President of Brand Development at The Independent Grocers Alliance (IGA), advised that a maximum of three claims should be used on any given product to ensure clarity and focus.
   • It’s essential to understand your target consumer and focus on the claims that truly motivate them to purchase. For instance, claims like “organic” or “fair trade” may resonate with health-conscious or ethically-driven shoppers, but not every consumer will prioritize these attributes.
2. Educate Consumers:
   • Labels like “Fairtrade”, “USDA Organic”, and “Women Owned” can differentiate products, but consumers must understand their meaning. Kim Chackal, VP of Sales and Marketing for Equifruit, emphasized that packaging alone cannot do the marketing. Consumers need additional context to understand the significance of these claims.
   • Effective communication through in-store signage, QR codes, and point-of-sale messages can help bridge the gap between labels and consumer understanding. These methods allow retailers to share more information without cluttering the packaging.
3. Avoid Overloading with Labels:
   • Label overload can dilute their impact. Joe Merenda, President of Misionero, noted that creativity in product presentation is key, as not all labels appeal to every shopper. Retailers need to tailor their approach to different customer segments.
   • Not every label will be important to every shopper, so it’s vital to align the product’s labeling with specific consumer needs and motivations.
4. Quality and Freshness Are Paramount:
   • While labels are important, price, quality, and freshness remain the primary drivers of purchase decisions. If the product quality is not up to par, no amount of labels will compensate. La Kier stressed that consumers expect both quality and price to be right before they are influenced by labels or claims.
   • Supermarkets should focus on ensuring freshness and product quality as the foundation of their offering before relying on labels to differentiate the product.

Conclusion:

To maximize the effectiveness of product labeling, supermarkets must balance strategic use of claims with an understanding of their customers. Overloading products with multiple certifications can confuse consumers, so it’s critical to focus on the most relevant labels that drive purchasing decisions. Furthermore, while labeling can differentiate products, it should never overshadow the importance of quality and freshness. Combining well-thought-out labeling with clear communication channels and strong product quality will help supermarkets succeed in today’s competitive market.