Misshapen Bell Peppers Offer A Great Bargain For Consumers
July 25, 2014 As a leader in West Coast pepper production, Baloian Farms wanted to make better use of the approximately 30% of bell peppers that are misshapen. After all, the peppers are just as tasty and nutritious as their big, blocky, beautiful cousins.
At the time, about two years ago, they were selling them to processors and food service providers for considerably lower prices than traditionally shaped peppers. Initially, the company was thinking about packaging them for the consumer as an item that would look just the same when chopped up, hence the name “Charlie Chopper” in honor of founder Charles Baloian.
However, Baloian Farms, which is headquartered in Fresno, CA, but grows and packs peppers in numerous locations in both California and Mexico, found the name didn’t really appeal to women, who buy the bulk of the retail produce. “Oddbells,” on the other hand, appealed to women, said Jeremy Lane, the company’s sales manager.
“As a company, we are always looking for new ways to add value to not only our bottom line, but the bottom line of our customers — including the consumers who ultimately take our product home,” he said. “Oddbells were a great place to use ingenuity more than innovation and add value without adding cost.”
Win/Win/Win
The retail price of Oddbells is up to the grocer or supermarket, but one Midwest chain sells a 1-pound three- or four-pack for about $1.30, not much more than the price of a single big, blocky pepper. Lane says it’s a win/win/win.
“You’ve got a real value there,” he said. “It’s a little better return (over selling them to processors), which is beneficial to us as a grower, and it helps people find a value. Also, the retailer gets a marketing gimmick.”
The misshapen peppers, which are caused by seasonal changes affecting pollination or the crowding of fruits on a plant, are not meant to replace traditional bell peppers, said Lane.
“These are for the consumer who is seeking a little better value,” he said, adding that sales have been going well. “We believe Oddbells have a clear place in the market and ultimately increase total sales for the category.”
Where To Shop
Consumers decide where to shop based on the following factors, according to Baloian Farms.
- Good value for money
- Better selection of high-quality brands and products
- The closest store
- The most convenient/easy parking
- Uses recyclable bags and packaging
Bargain Bells
The packages, which can include both red and green peppers, are brightly colored with a character-driven style intended to gain consumers’ attention on the shelf. Messages on the pack note the cost savings and the goal of avoiding waste, which helps consumers understand the value of the uniquely shaped peppers, says Lane.
The company’s survey results show that 93% of consumers purchase products based on how the display communicates value. Just over half of consumers said they have started replacing higher priced produce with more affordable options since the beginning of The Great Recession. Finally, 39% of consumers are shopping multiple channels to find better deals.
Furthermore, purchases of bell peppers are on the rise by about 3% a year as consumers like the taste, color, and nutritional value. Consumers report that bell peppers are one of the vegetables they are buying more frequently, ranking behind only avocados and asparagus in percentage increase, said Lane. They are now the fifth most purchased vegetable.
“We’re just giving people more bells for your buck,” he said.
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