September/October 2024
APC, APPB focus on moving pecans away from and breaking out of stereotypical holiday role
The American Pecan Promotion Board (APPB) and American Pecan Council (APC) continue to hear great feedback on the Unified Pecan Promotion Plan. This plan includes four initiatives aimed at helping increase sales volumes and prices for pecan growers and supply chain partners.
The second point on that list aims to grow the pecan industry beyond its traditional role in our holiday culture. I call this “Christmas in July” for pecans.
We all know that the winter holiday season drives a large part of the demand for the pecan industry. Pecan pies and treats are part of the holidays for families everywhere.
That is important for our industry, and certainly something we will preserve; however, we also want to help break pecans out of their stereotypical role and expand demand all year long.
Doing this would encourage more frequent purchases by consumers for a wider variety of occasions, which can help increase the value consumers place on pecans and induce more turnover on grocery store shelves.
Where we are today: rooted in the holidays
Consumer demand for pecans — both in the U.S. and globally — has grown over the years. However, there is a notable discrepancy between consumer interest and actual purchase frequency, especially during non-holiday periods.
This imbalance may contribute to lower prices for pecans being determined by seasonal fluctuations rather than reflecting the overall annual demand. To address this issue and maximize pecan sales throughout the year, your Unified Pecan Promotion Plan calls for marketing to increase usage occasions, thereby ensuring more stable pricing dynamics for pecan growers.
As one grower pointed out to me, “Americans love their chocolate-covered and candied pecans,” and trust me, so do I. We don’t need to leave the holiday treats behind, but we can also capitalize on other ways to eat pecans throughout the year and advance our industry together.
To reach our goals, we have two pathways. One we can undertake now and one that is a longer-term position for the industry.
What we’re doing now to grow non-seasonal demand
Today, we need to provide consumers with an increase of accessible retail purchase opportunities — especially outside of holidays — tied to new usage occasions. Think snacking, inclusion in cooking, baking as ingredients, and nutritious pecan-focused recipes.
A few facts about pecan purchase behavior today [1]:
- 51% of pecan shoppers choose pecans for baked goods.
- 42% of pecan shoppers choose pecans during festive occasions.
- Yet, a new study recently completed by Arizona State University found most of these consumers only purchase pecans a few times a year. [2]
Pecans have an excellent reputation for having good taste, which is our product’s driving benefit in the marketplace today. The second reason for adding pecans to a shopping cart is because they are good for cooking and baking. Lesser known among consumers, but still important, is the fact that pecans provide health benefits and nutritional value.
We have room to grow our health benefits messaging and we can do it through targeted marketing campaigns highlighting the versatility and health benefits of pecans, fostering partnerships with retailers to promote pecans as a staple ingredient in everyday cooking and snacking, and exploring innovative product offerings to appeal to a wider range of consumers.
Among other tactics, this plan considers:
- Partnering with national online retailers like Amazon and Instacart to drive relevancy and additional sales online.
- Creating in-store promotions in grocery chains nationwide to call out pecans as the snack of choice in the snacking or produce aisle, even if pecans are still hiding in the baking aisle.
- Partnering with complimentary products (e.g. yogurt) when pecans can up-level a dish.
Our longer-term plan to grow everyday demand
Next, we need increased investment in product innovation through foodservice partnerships and improved retail packaging to fuel a wider range of options for consumers. We want to expand pecan presence on menus so consumers can get a taste of all pecans offer at their favorite restaurants and help pecan companies and other food brands expand pecan-based products and packaging.
This could include but is not limited to the following ideas for growth and innovation:
- Work with foodservice partners to innovate menu offerings using pecans
- Leverage diet trend information (e.g. plant-based, keto) to show how pecans easily fit into preferred menu options for today’s consumers
- Work with influential chefs/restaurants to create adaptable food service recipes
- Deliver research and insights for packaging improvements
- Track competitive packaging landscape and best practices to share with the entire industry
- Provide concept inspiration and testing for industry consideration
Your APPB and APPC team, under my leadership as your CEO, is taking immediate and long-term steps to break pecans out of their holiday mold and grow year-long demand.
We are excited about the role nutrition positioning can play in driving demand with consumers. This is just one of our four key initiatives to increase pecan sales volume and price to support a sustainably profitable value chain that feeds the world.
We value and welcome your feedback on our Unified Pecan Promotion Plan
I want to reiterate the values under which I and your entire APC/APPB teamwork operate. We are here to be your trusted partners and be known for our transparency and accessibility.
I welcome your feedback and thoughts on the plan detailed in this article. Your texts, calls or one-on-one visits at a variety of upcoming shows and meetings are communications I look forward to.
We are committed to unifying the industry and taking actions that support the whole. Like you, we are driven by excellence and strive for an increasingly higher return on your industry investment.
[1] Euromonitor. Pecan Market Analysis. July 2023.
[2] Grebitus, C. and K. Fuller (2023). Increasing Demand and Willingness-to-Pay for Arizona- Grown Pecans. Project Report.
