Agriculture Reference
In-Depth Information
in bags, the product that was implicated in the outbreak, was down 49% and had the
largest decline. Bulk spinach was down 44%. Bagged and bulk spring mix sales were
down 14% and 15%, respectively. The smaller impact on spring mix may be because
consumers were unaware that this product usually contained spinach or they may have
responded to the leafy greens industry taking spinach out of the mix.
Other lettuce products were also affected by the problems associated with spinach,
most notably the increase in sales for bulk romaine, bulk leaf, and other bulk lettuces.
These are the only two categories that grew in sales. Also, with the outbreaks of
foodborne illness associated with iceberg lettuce in December, they were the only
categories of lettuce untouched by food safety shocks. The growth in romaine hearts
sales did not change in the aftermath of the outbreak. Consumers may have been more
concerned about romaine in bags than bulk romaine.
The impact of the outbreak on spinach has been quite long-lasting. Figure 22.6
shows sales of spinach in bags from 2005 to 2007. 2006 sales were above the 2005
levels until the September 14, 2006 announcement by the FDA when they plunged
immediately. At the end of 2007, over 15 months later, sales volume still lagged
behind the levels of 2005. It is not clear whether there is a permanent shift in consumer
demand for spinach or whether consumers are still adjusting to the shock and may
eventually buy more bagged spinach and continue preshock trends. Producers also cut
back on spinach acreage with total U.S. fresh-market spinach production down 16%
from 2005 to 2007.
Million lbs
.
2.50
2.00
1.50
1.00
0.50
0.00
1
10
20
30
40
50
Weeks
2005
2006
2007
Figure 22.6.
Spinach in bags; retail sales 2005-2007.
Source:
IRI and FreshLook
Marketing.
