Example of a Sales Projection for a New Business
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Food Industry. Facts. Insights. Consulting.
The Mushroom Council
Assessment of Fresh Mushrooms in the
Foodservice Channel
Volumetric Projection of Fresh Mushrooms in the
Foodservice Channel
Prepared by: Funded by:
April- August, 2005
&
Mushroom Methodology: Overview
20 one on one
interviews of
operators in major
chains &
Independents
Primary Research
(Independent Projection
Consumer
Operators & Modeling
Interview
Distributors
interviewed in primary
research)
Secondary Data
from
Technomics
(Industry Volume &
Trends)
2
Objectives
Understand operator usage dynamics relating
to mushrooms
Develop market size and segmentation data
on fresh mushrooms in the foodservice
marketplace
3
Segment Scope
Sub-segments/ Sub-segments/
Segment Examples Segment Examples
Limited Fast food, includes Business & In-plant, in-office feeding
Service hamburgers, sandwich, Industry
Restaurants Mexican and specialty
(LSRs) Excludes pizza
LSR Pizza Includes all restaurants with Healthcare Hospitals
a pizza menu orientation Nursing homes
Full Service Midscale, casual dining and Education K-12 Schools
Restaurants fine dining sit-down Colleges
(FSRs) establishments
Travel & Hotels All Other Supermarket foodservice
Leisure Recreation Foodservice Convenience store
Airlines foodservice
Retailer foodservice
Military
Corrections
4
Methodology
# of Completed
Interviews
1. Structured Operator Interviews
Restaurants
- Full Service Restaurants 127
- Limited Service Restaurants 50
- Other Limited Service Restaurants 50
- Business & Industry 64
- Travel & Leisure 101
- Healthcare 72
- Education 69
- Corrections 10
- Total 543
2. Chain Headquarters 15
3. Distributors/Produce Wholesalers 25
4. Growers/Suppliers 5
5. Analysis and reporting - 5
Product Scope
Fresh mushrooms are the major focus of this
study. Processed mushrooms are specifically
excluded from this assessment
Formats Mushroom Types
White
Whole
Oyster
Pre-Sliced Portabella
Enoki
Pre-Marinated Shiitake
Woodear
Pre-Cooked to Specifications
Crimini/Baby Bellas
6
I. Operator Usage and Attributes
Mushroom Usage
Over half of all operators use fresh
mushrooms in their operations
In particular, FSR and pizza restaurants have
highest fresh mushroom penetration levels
Operator in the West and Midwest have
highest penetration level
Canned mushrooms are used by one in four
operators contacted for the study
Few operators use frozen mushrooms
Operators strongly prefer fresh mushrooms
over canned
8
Heaviest Fresh Mushrooms Penetration in
FSR, Pizza Restaurants
% Operators Using Fresh Mushrooms
79%
62%
58%
45%
42% 40% 38%
23%
Total FSRs Pizza Rest. B&I Healthcare Travel & LSRs Education
Leisure
9
*Weighted based on units
Base: All operators contacted
West Has Highest Mushroom Penetration
Levels
% Operators Using Fresh Mushrooms*
70%
64%
58%
53% 54%
Total Northeast South Midwest West
10
*Weighted based on units
Base: All operators contacted
Few Operators Use Frozen Mushrooms
% Operators Using *
Rationale for Using
Fresh Frozen** Mushrooms
58%
Mushroom
1. Only type distributors offers 22%
2. Best for breaded/deep frying 22
Canned
25%
Mushrooms
3. Same as fresh mushrooms 11
4. Easier to serve than fresh 11
Frozen 7%
5. Good for backup when 11
operator runs out of fresh
Other <1% 6. Lower priced than fresh 11
7. Don’t know 11
11
*Base: All operators contacted
**Base: Operators using frozen; small base
“We Prefer to Use Fresh Mushrooms Over Canned
or Processed Mushrooms”
% Operators Indicating
Completely
Disagree
3%
Somewhat
Disagree
1%
Completely
Neither Agree
Agree Nor 82%
Disagree
5%
Somewhat
Agree
9%
12
Base: Fresh mushroom users
Mushroom Forms and Varieties Used
Whole is the predominant mushroom format
used. Almost 80% of fresh mushroom users
utilize this format.
Pre-cut usage is highest in LSR traditional and
pizza restaurants.
White mushrooms dominate.
Whole portabellas and Shiitake enjoy
significant usage penetration.
Pre-sliced usage is minimal beyond white
mushrooms.
Virtually no pre-cooked to spec was identified.
13
Whole Predominates Formats Used
% Operators Using
Whole 79%
Pre-Cut 38%
Pre-Marinated 4%
Pre-Cooked to
<1%
Spec
14
Base: Fresh mushroom users
Fresh Mushroom Formats Used by Operator
Segment
% Operators Using
Pre- Pre-Cooked
Operator Segment Whole Pre-Cut Marinated to Spec
LSR Traditional 65% 41% 9% 3%
Pizza Restaurants 48 57 4 0
Full-Service Restaurants 88 26 2 0
Travel & Leisure 88 32 6 0
Business & Industry 78 41 4 0
Education 88 33 0 0
Healthcare 75 57 8 0
Total* 78% 38% 4% <1%
15
*Weighted average based on units
Base: Fresh mushroom users
Fresh Mushroom Formats by Region
% Operators Using
Pre- Pre-Cooked
Region Whole Pre-Cut Marinated to Spec
Northeast 82% 35% 7% <1%
South 80 37 6 1
Midwest 68 55 2 0
West 83 30 3 0
Total 78% 38% 4% <1%
16
Base: Fresh mushroom users
Fresh Mushroom Usage by Variety
% Operators Using
Pre- Pre-Cooked
Mushroom Type Whole Pre-Cut Marinated to Spec
White 67% 33% 2% <1
Portabella 39 4 2 0
Shiitake 21 2 0 0
Oyster 11 <1 0 0
Baby Bellas 11 1 0 0
Enoki 5 1 0 0
Woodear 6 <1 0 0
Total* 78% 38% 4% <1%
17
Base: Fresh mushroom users
Whole Mushrooms Used by
Operator Segment
% Operators Using
Baby
Operator Segment White Portabella Shiitake Oyster Bellas Enoki Woodear
LSR Traditional 57% 17% 7% 3% 3% 0% 3%
Pizza Restaurants 48 8 0 0 0 0 0
Full-Service Restaurants 72 57 39 24 17 7 7
Travel & Leisure 73 51 34 14 10 10 9
Business & Industry 61 44 20 10 14 7 7
Education 80 47 27 13 20 7 7
Healthcare 62 40 13 9 9 5 5
Total* 67% 39% 21% 11% 11% 5% 6%
18
*Weighted based on units in each segment
Base: Fresh mushroom users. Multiple mentions accepted
Pre-Sliced Mushrooms Used by Operator
Segment
% Operators Using
Baby
Operator Segment White Portabella Shiitake Oyster Bellas Enoki Woodear
LSR Traditional 41% 5% 0% 0% 0% 5% 0%
Pizza Restaurants 52 5 0 0 0 0 0
Full-Service Restaurants 26 0 0 0 0 0 0
Travel & Leisure 27 3 2 0 0 0 0
Business & Industry 31 13 4 0 0 0 0
Education 33 0 0 0 0 0 0
Healthcare 50 10 5 5 10 5 5
Total* 33% 4% 2% <1% 1% 1% <1%
19
*Weighted based on units
Base: Fresh mushroom users
Specifications of White and
Portabella Mushrooms Used
Grade #1 medium is the most popular used by
operators using whole white mushroom
Grade #1 also most prevalent presliced white
mushroom used
Whole is the most popular among portabella
mushroom users
20
Grade #1 the Most Popular White
Mushroom
% Operators Using by Specification
Whole White1 Pre-Sliced2
64% 83%
25% 25%
20%
11%
8%
Grade #1 Grade #1 Grade #1 Grade #2 Jumber Grade #1 Grade #2
Small Medium Large Stuffer
1Base: 21
Operators using whole white mushrooms
2Base: Operators using presliced whole mushrooms
Whole Most Popular Portabella Mushroom
Specification Used
% Operators Using
Portabella Mushrooms Types
79%
27%
12%
3%
Whole Caps Baby Cubes
22
Base: Portabella mushroom users
Usage Trends
More operators indicate that they are
increasing usage of fresh mushrooms than
indicating decreased usage over the past two
years.
White, Portabella, Shiitake and Baby Bella
have positive “nets.”
However, Oyster, Enoki and Woodear have
negative “nets.”
However, sample size of users of these varieties is
small.
Looking forward, less than one-quarter see
significant growth in mushroom usage.
23
Net Reported Increases in Key
Fresh Mushroom Varieties
Over Past Two Years, Usage Has…
Mushroom Type Increased Decreased “Net”
Whole 26% 4% +22%
Portabella 31 8 +23
Shiitake 22 5 +17
Baby Bellas* 25 4 +21
Oyster* 9 12 -3
Enoki* 7 14 -7
Woodear* 7 13 -6
Note: Balance to get to 100% of increase and decrease is “volume has stayed the same”
24
*Small base
Base: Users of each mushroom type
Net Increases Reported for
Each Mushroom Format
Over Past Two Years, Usage Has…
Mushroom Format Increased Decreased Net
Whole 27% 3% +24%
Pre-Cut 20 4 +16
Pre-Marinated* 23 8 +15
Note: Balance to get to 100% of increase and decrease is “volume has stayed the same”
25
*Small base
Base: Users of each mushroom
Rationale for Mushroom
Volume Increases
“Adding menu items that call for mushrooms,”
and “growth in overall business” are key
reasons mushroom volume has increased
according to operators.
Consumer demand also drives growth.
“Stuffed mushrooms” is the key menu item
added by operators which is driving increased
mushroom usage.
Steak/meat and vegetarian dishes are main
areas where mushrooms have been added to
dishes.
26
Reasons for Mushroom
Volume Increase
% Operators Indicating
Whole Pre-Cut
Added new menu item(s) that call
39% 22%
for mushrooms
Growth in overall business 33 46
Greater consumer demand for mushrooms 20 18
Added mushrooms to existing menu items 20 10
Increased sales of menu items containing
19 12
mushrooms
Format change 4 7
Switch from processed (e.g., canned) 3 3
More promotion of mushrooms by operators 1 6
Labor savings 0 4
Base: Operators reporting whole mushroom or pre-cut usage has increased over the past two years 27
Multiple mentions accepted
Menu Items Added
Containing Mushrooms
% Indicating
Stuffed Mushrooms 36%
Italian Foods 23
Steak Dishes 21
Vegetarian Foods 18
Chicken Dishes 11
Seafood Items 6
Egg/Omelet Dishes 5
Soups 3
Base: Operators reporting mushroom volume has increased due to adding of new menu
28
items containing mushrooms
Multiple mentions accepted
Added Mushrooms to
Existing Menu Items
% Indicating
Steak/Meat Dishes 32%
Vegetarian Foods 29
Italian Foods 21
Chicken Dishes 21
Stuffed Mushrooms 15
Soups 12
Egg Omelet 6
Seafood Items 3
Mexican Items 3
29
Base: Operators indicating mushroom volume has increased due to adding of mushrooms
to existing menu items. Note: Small base.
Current Menu Items Containing Mushrooms
Which Have Increased in Sales
% Indicating
Stuffed Mushrooms 34%
Steak/Meat Dishes 31
Italian Foods 19
Chicken Dishes 16
Vegetarian 13
Soups 6
Mexican Foods 6
Egg Omelet 3
Seafood Items 3
30
Base: Operators indicating mushroom volume has increased due to current menu items
containing mushrooms increasing in sales. Note: Small base. Multiple mentions accepted.
“Consumers Are Increasingly Ordering Menu Items
Containing Mushrooms as an Ingredient”
% Operators Indicating
Somewhat
Agree
19%
Completely
Agree Neither
18% Net
Net
Agree Nor
Disagree
Completely
45% +9%
+9%
Disagree
6%
Somewhat
Disagree
12%
31
Base: Fresh mushroom users
“In Our Organization, We See Significant Increase in
Mushroom Usage in the Next Two Years”
% Operators Indicating
Somewhat
Agree
11%
Completely
Agree
12% Neither
Agree Nor
Net
Net
Disagree
47%
Completely +9%
+3%
Disagree
14%
Somewhat
Disagree
16%
32
Base: Fresh mushroom users
Rationale for Mushroom Usage Decline
Among the few who report mushroom volume
has decreased, decline in operators’ overall
business is the most prevalent reason for this
occurring
Discontinuation of menu items containing
mushrooms and perceived low consumer
demand are secondary reasons given by
operators
33
Reasons for Mushroom
Volume Decline
% Indicating
Overall decline in operators’ business 40%
Discontinued menu item with mushrooms 19
Less consumer demand for mushrooms 19
Discontinued mushroom usage in
7
existing items
Decreased sales of menu items
4
containing mushrooms
High price of mushrooms 4
Don’t know 7
34
Base: Operators stating that mushroom volume has declined in past two years.
Small base
Mushroom Seasonality
Overall, about one-third of all operators
experience variations of mushroom usage by
season
Almost half of Shiitake and Oyster mushroom
users’ usage varies by season
These operators report that their usage of
mushrooms is lowest January-March
Higher usage is in July-September
35
Mushroom Usage Seasonality
%
Indicating Jan-Mar Apr-Jun Jul-Sep Oct-Dec
Volume
Mushroom Varies by
Format Type Season Higher Lower Higher Lower Higher Lower Higher Lower
Whole White 29% 17% 31% 29% 23% 42% 35% 29% 21%
Pre-Cut White 20 * * * * * * * *
Whole Portabella 38 20 27 34 20 46 24 46 22
Whole Shiitake 48 13 33 23 20 47 17 47 17
Whole Oyster 49 * * * * * * * *
Whole Baby Bellas 43 * * * * * * * *
Whole Enoki 60 * * * * * * * *
Whole Woodear 47 * * * * * * * *
36
Base: Users of specific mushroom variety
*Small base of users does not allow for valid data regularly
Mushroom Menu Items
On average, operators have almost 50 items
on their menus. Of these, about 15% contain
mushrooms
Of the menu items that contain mushrooms,
about 13% of them “feature” mushrooms
37
Mushroom Menu Items
# of Menu Share of
# of Menu Share of Items with Mushroom
Items Menu Items Mushrooms Items Where
# of Total Containing Containing as the Mushrooms
Operator Segment Menu Items* Mushrooms* Mushrooms* Feature* Are Featured
LSR Traditional 44.5 4 9% 2 50%
LSR Pizza Restaurants 40 10 25 1 10
Full Service 45 6 13 2 33
Travel & Leisure 40 10 25 2 8
B&I 35 4 11 2 50
Education 75 12 16 2 13
Healthcare 50 5 10 2.5 50
Total Average 47 7 15% 2 13%
38
*Median operator response
Future for Fresh Mushrooms
Among operators interviewed, greatest
opportunities for fresh mushroom are seen in
the full service (both fine dining and casual
dining) segment
More menu mentions and addition of
mushrooms to existing items cited by many as
opportunities for greater usage
Operators state that new recipes with
mushrooms as ingredients are desired
Versatility is a major mushroom benefit that
can be leveraged
39
Operator Segments Representing Best
Opportunity for Increased Mushroom Usage
% Indicating
Full-Service Restaurants (Other than Fine Dining) 21%
Fine Dining 14
Pizza Restaurants 5
Fast Food 3
Hotels 3
Other 1
Don’t Know 53
40
Base: Fresh mushroom users
Opportunities for Greater Mushroom Usage
in Foodservice
% Indicating
Mention usage in menu items 17%
Add to existing menu items 17
No opportunities 11
Customer pull through/demand 11
New applications 9
Use in vegetarian items 7
Use of different mushroom varieties 4
Raise public awareness of nutritional value 3
Lower price 1
Better availability 1
Better packaging to keep mushrooms fresh 1
Don’t know 21 41
Base: Fresh mushroom users
Operator Support Desired from
Mushroom Industry
% Indicating
New recipes with mushrooms as an ingredient 19%
Lower mushroom pricing 19
Nothing 19
Offer fresher product 10
Create demand for mushrooms 7
Better containers for longer shelf life 6
Educate consumers on nutritional benefits 5
Ensure year-round mushroom availability 4
Develop new mushroom varieties 4
More promotional materials for foodservice 4
Don’t know 20
42
Base: Fresh mushroom users
“Mushrooms Are Extremely Versatile and Can be
Used in a Variety of Menu Applications”
% Operators Indicating
Completely
Disagree
2%
Somewhat
Disagree
2%
Neither Completely
Agree Nor Agree
Disagree 68%
9%
Somewhat
Agree
19%
43
Base: Fresh mushroom users
II. Distributor Findings
Mushrooms Carried by Distributors
Whole pre-sliced carried by the overwhelming
majority of distributors interviewed
White and portabella are the most
predominant varieties offered
Vast majority of distributors indicate variety
volume increasing
Business growth and increased operator
application usage are reported to be driving
mushroom within distributors interviewed
45
All Distributors Interviewed Offer White
Mushrooms
% Distributors Offering
White 100%
Portabella 85%
Shiitake 58%
Baby Bellas 38%
Oyster 23%
Woodear 15%
Enoki 8%
46
Base: 26 distributors
Whole, Pre-Sliced Predominant Forms
Offered by Distributor
% Distributors Carrying
100%
92%
19%
Whole Pre-Sliced Pre-Marinated
47
Base: 26 distributors
Vast Majority of Distributors See Increases
in Mushroom Volume
% Distributors Indicating Mushroom Volume
Has Increased Over Past Two Years
85% 85% 87%
White Portabellas Shiitake
Base: Distributors carrying each variety 48
Note: Very small base for all other varieties makes data unreliable
Perceived Rationale for Increased
Mushroom Volume Usage
% Indicating
Growth in overall business 42%
Operators adding new menu items with
27
mushrooms
Operators adding mushrooms to existing
23
menu items
Operators reacting to greater consumer
19
demand
Increased distributor focus on
12
produce/promotion of produce
49
Base: Distributors indicating mushroom volume has increased
Multiple mentions accepted
Trends Impacting Future Usage of Mushrooms (In
Order of Distributor Mentions)
1. “Increasing customer sophistication in
food, which would result in demand for
exotic mushroom varieties”
2. “Big chains getting more involved in
offering fresh products”
3. “More pre-cut in different varieties”
4. “Healthy eating, resulting in usage of
healthier ingredients, including
mushrooms”
50
Trends Impacting Future Usage of Mushrooms (In
Order of Distributor Mentions)
1. Teaching consumers about health benefits
of mushrooms
2. Teaching operators numerous ways to use
mushrooms
3. More organic products/specialty
mushrooms
51
Support Desired from the Mushroom Industry (In
Order of Distributor Mentions)
1. New applications/menu ideas using
mushrooms
2. Showing distributors how to best sell
mushrooms
3. More education on mushroom varieties
and forms
52
III. Fresh Mushroom Market Overview
Fresh Mushroom Market Size
The total foodservice fresh mushroom market
accounts for 356MM pounds in 2004
Whole accounts almost 60% of format used
White mushrooms represent the lion’s share of
mushroom consumption in foodservice
West represent highest volume usage for
foodservice
54
Total Foodservice Market by Form
Total = 356MM Lbs.
Pre-Cut
136MM
38%
Whole
208MM
58% Pre-
Marinated
10MM
3%
Cooked to
Spec 2MM
1%
55
Source: Technomic
Total Foodservice Market by Variety
Total = 356MM Pounds
Brown*
61.9MM lbs.
White 17%
271.1MM
lbs.
76%
Shiitake
4%
All Other**
9.5MMM lbs.
3%
*Portabella, Baby Bellas
56
**Includes, Oyster, Enoki, Woodear
Source: Technomic
Total Foodservice Market by Region
Mushroom Volume Share of Total
Region #MM lbs. Share Industry Volume
Northeast 67 19% 18%
South 85 24 35
Midwest 90 25 25
West 114 32 22
Total 356 100% 100%
57
Source: Technomic
Operator Market Size Segmentation
Full service restaurants represent about 60%
of total fresh mushrooms volume used
Pizza restaurant usage is high in comparison
to total industry volume of all goods going into
pizza restaurants
58
Total Foodservice Market by
Operator Segment
Mushroom Volume Share of
Industry Total
Operator Segment MM Lbs. Share Volume
LSR Traditional 24.9 7% 23%
Pizza Restaurants 77.1 22 5
Full-Service Restaurants 210.0 59 25
Travel & Leisure 18.0 5 7
Business & Industry 10.2 3 6
Education 5.0 1 7
Healthcare 7.5 2 4
All Other Foodservice 3.3 1 23
Total 356.0 100.0% 100%
59
Base: Fresh mushroom users
Historical and Forecasted Fresh Mushroom
Growth by Variety
CAGR
17.0%
3-Year Historical 3-Year Forecast
14.0%
8.0%
7.0%
6.0%
5.0%
3.0% 3.5%
2.0%
1.0%
Total White Brown* Shiitake All Other
*Portabella, Baby Bellas
60
**Includes, Oyster, Enoki, Woodear
Source: Technomic
Mushroom Growth
Growth Drivers
Consumer demand for healthier foods;
produce items including white
mushrooms will benefit.
White Mushrooms High usage in pizza restaurants will
offset some growth, as this segment is
maturing.
Growth Drivers
Operators are increasingly adding
specialty mushrooms into their recipes
to add variety and uniqueness.
All Other Consumers are increasingly adventurous
and experimented with their food-away-
Varieties from-home experiences. They are
demanding unique flavors and textures,
which are provided by specialty
mushroom products.
61
Fresh Mushroom Market Projection
arjun@arjunsen.com
303-521-1988
Penetration and Usage
250.00
Total FreshMushroom Usage (MM lbs) (MM lbs)
200.00
FSR
Total Fresh Mushroom Usage
150.00
100.00
Pizza
50.00 LSR
Travel & Leisure
Education
0.00 Healthcare Business
0.00 0.20 0.40 0.60 0.80
Fresh Mushroom Penetration
Fresh Mushroom Penetration 63
Fresh Mushroom Projection
64
Fresh Mushroom Market Projection
Projection For Restaurant Usage Only
Restaurant Mushroom Consumption
Current Usage
66
Base: Fresh mushroom users
Restaurant Mushroom Consumption
Number of Units in the next 5 yrs
Approximate Approximate
Restaurants 5 yr Restaurants
# of using Fresh CAGR using Fresh
Restaurants Mushrooms Growth Mushrooms
Total LSR 216,000 82,080 5% 86,184
Total Pizza 62,000 38,440 1% 38,825
Total FSR 250,000 197,500 1% 207,841
Total Restaurants 528,000 316,800 1% 319,968
67
Base: Fresh mushroom users
Restaurant Mushroom Consumption
Number of Units in the next 5 yrs
Current Projected Usage 5 years from now
Low end projection High end projection
Total Fresh Total Fresh
Total Fresh Mushroom Mushroom
Mushroom Usage (MM Usage (MM
Usage (MM lbs) lbs) lbs)
Total LSR 24.9 5.0% 26.1 24.8% 31.1
Total Pizza 77.1 1.0% 77.9 14.6% 88.4
Total FSR 210 5.2% 220.9 17.2% 246.1
Total Restaurants 312 4.1% 325 17.3% 366
68
Base: Fresh mushroom users
Fresh Mushroom Market Projection
Projection For Limited Service Restaurants (LSR)
and Pizza
Restaurant Mushroom Consumption
LSR & Pizza: Current Usage
70
Base: Fresh mushroom users
Restaurant Mushroom Consumption
LSR & Pizza: # of Units in the next 5 yrs
71
Base: Fresh mushroom users
Methodology For Projection.
To develop a projection model, the first step was to determine key driver variables.
They are
• Unit Growth: Natural growth in number of restaurants or industry units (e.g. schools,
businesses) over time. This simply means that if everything else remains the same, mushroom
usage will increase or decrease at the same rate of growth of units. This is a driver that the
mushroom industry cannot influence. Still this is a key driver of Mushroom growth.
• Mushroom Penetration Growth: This driver is what % of restaurants or other industry units
(e.g. schools, businesses) are using mushrooms. This is an area the Mushroom Industry can
influence both in a macro and micro sense. Just like it is important to educate and assist units
to get more units to use fresh mushrooms, it is also important to assist current users so that
they continue to use fresh mushrooms and may be more.
• Mushroom Volume per Restaurant Growth: This is equivalent to a per capita or per unit
usage. This is an area again where the mushroom industry can assist and influence. In order
to increase the amount of mushrooms used by each restaurant/unit, we have to help them the
units to the following:
• More Menu items featuring mushrooms.
• Increasing the sale of mushroom menu items
The next step was to determine how each of the driver’s have changed over the
last few years. That helped us determine different scenarios for the future.
The final step was to determine the projection models which follow. 72
Driver’s of Mushroom Volume Growth
1. Unit Growth:
Natural growth in number of restaurants over time.
2. Mushroom Penetration Growth:
A higher percentage restaurants use mushrooms over
time.
3. Mushroom Volume per Restaurant
Growth:
Increasing the amount of mushrooms used by each
restaurant by:
- More Menu items featuring mushrooms.
- Increasing the sale of mushroom menu items.
73
Restaurant Mushroom Consumption
LSR: Current Usage
74
Base: Fresh mushroom users
Restaurant Fresh Mushroom Consumption
LSR: Usage by Mushroom Type
Current Scenario 1 Scenario 2
Driven By Unit Growth Driven my Mushroom
Only Penetration Only
Total Penetration
Whole 65% 24.0% 33.5%
White 57% 5.0% 14.2%
Portabella 17% 5.0% 35.9%
Shiitake 7% 5.0% 80.0%
Oyster 3% 5.0% n/a
Baby Bellas 3% 5.0% n/a
Pre-Cut 41% 5.0% 17.8%
White 41% 5.0% 17.8%
Pre Marinated 9% 5.0% n/a
Pre-Cooked to Specs 5% 5.0% n/a
75
Base: Fresh mushroom users
Restaurant Mushroom Consumption
Pizza: Current Usage
76
Base: Fresh mushroom users
Restaurant Mushroom Consumption
Pizza: Usage by Mushroom Type
77
Base: Fresh mushroom users
Fresh Mushroom Market Projection
Full Service Restaurants (FSR)
Restaurant Mushroom Consumption
FSR: Current Usage
79
Base: Fresh mushroom users
Restaurant Mushroom Consumption
FSR: Number of Units in the next 5 yrs
5.2%
80
Base: Fresh mushroom users
Restaurant Mushroom Consumption
FSR: Current Usage
81
Base: Fresh mushroom users
Restaurant Fresh Mushroom Consumption
FSR: Usage by Mushroom Type
Current Scenario 1 Scenario 2
Driven By Unit Growth Only Driven my
Mushroom
Penetration Only
Total Penetration
Whole 88% 24.0% 31.0%
White 72% 5.0% 12.5%
Portabella 57% 5.0% 14.4%
Shiitake 39% 5.0% 18.7%
Oyster 24% 5.0% 27.1%
Baby Bellas 17% 5.0% 36.1%
Pre-Cut 26% 5.2% 25.4%
White 26% 5.2% 25.4%
Pre Marinated 2% 5.2% n/a
White 2% 5.2%
Pre-Cooked to Specs 1% 5.2% n/a 82
Base: Fresh mushroom users
Fresh Mushroom Market Projection
Non- Restaurants
Non-Restaurant Fresh Mushroom Consumption
Growth
Even though growth is marginal, still this segment is important
• As more than 10% of the volume of Fresh Mushrooms come from here.
84
Fresh Mushroom OPPORTUNITY INDEX
In this section, we have developed an opportunity Index by region and
industry. Follow-up pages show action steps that can be taken.
Regional Mushroom Opportunity Coefficient
The Coefficient Computation:
This coefficient is a measure of the opportunity of fresh mushroom in different industry segments.
Factors:
Opportunity in that
Industry segment
Regional Mushroom
Opportunity
Opportunity in that Coefficient*
region
How to Read Opportunity Coefficient*
Value Ranges from 0 to 400
Where 0 to 20 is Low Opportunity
Opportunity of 21 to 100 is average Opportunity
101 to 250 is better than average Opportunity
Mushroom Types 251 to 500 is high opportunity
501 + is very high opportunity
*This defines volume opportunity only. It does not take into account wastage, prices by
mushroom type and profitability of different types of mushrooms.
86
Regional Mushroom Opportunity Coefficient
The Coefficient Computation:
This coefficient is a measure of the opportunity of fresh mushroom in different industry segments.
The three main factors chosen were:
• Opportunity in that Industry Segment: This is a measure of current usage in the segment, the
segment growth over the last 5 years and the growth projection for the segment.
• Opportunity by Region: After the first factor is established, it is adjusted by regional variations.
• Opportunity of Mushroom Types: Finally the first two factors were adjusted by mushroom types.
The following factor is important but was NOT considered in the model
Eating out Frequency. After analyzing it was determined that Eating out frequency is a function
of industry growth, by industry, by region and then the relevance of different types of
mushrooms in each area.
The weights used:
All three factors were equally weighted. As the regionality and the mushroom type is nestled
inside the industry projections, it makes it a robust projection model.
The cut-off values:
The cut-offs were arrived at by looking at the current volumes and then breaking them in the
values.
87
Regional Mushroom Opportunity Coefficient
The Coefficient Computation:
Opportunity in the
Opportunity in that Opportunity in the Adjusted for Overall Opportunity
Mushroom Type
Industry Segment Region Number Coefficient
Example: How the Northeast White Coefficient for Pizza was
computed.
White in Pizza Restaurant 48%
Pizza usage 77.1%
Pizza % of Volume 22.60%
Northeast Usage 82%
Other factors added: Category growth in the past 5 years.
88
A Frame-Work for TAKING ACTIONS
HOW CAN THE MUSHROOM INDUSTRY BE MORE
SUCCESSFUL?
MUSHROOM
GROWER’S CATEGORY
INDIVIDUAL SUCCESS
SUCCESS
INFLUENCING INFLUENCING
WHAT INDUSTRY INFLUENCING
AM I TARGETING
KEY
DEMOGRAPHICS
KEY
INDUSTRIES
DISTRIBUTORS This is the framework
Details for each area
UNDERSTAND
THE INDUSTRY”S
Build Relevant
Awareness
Understanding
their needs
is in the following
SEASONALITY section.
Benefit
UNDERSTAND (Nutrition) New Recipes
THE Communication
DISTRIBUTOR’S
NEED
New Recipes
Make
enhanced with
TYPE OF Mushrooms
mushroom
MUSHROOM TO Fun
addition
PRODUCE
Mushroom
Handling
Education
89
Fresh Mushroom Opportunity
Regional Projections
Total Mushroom Volume by Region
Total = 356MM Lbs.
West Contributes Northeast contributes
nearly1/3rd of less than1/5th of
mushroom mushroom
consumption consumption
Northeast
West 19%
32%
South
24%
Midwest
25%
91
Summary of Strategy: Valid for all regions
These opportunity areas are valid for all regions
•Use whole white mushrooms to focus for maximum opportunity on
• Full Service Restaurants
•Whole white also has significant opportunities among
• Pizza
•Whole Portabella mushroom have strong opportunity in
• Full Service Restaurants
•Sliced white mushrooms show some opportunity on
• FSR
92
Summary of Strategy: by region
West:
• Whole white also has significant opportunities among LSR.
• Shiitake, Oyster and Baby Bellas continue to have opportunities in the Full Service Restaurants.
• Enoki and Woodear show the most opportunity among all regions in the west.
• Sliced white mushrooms show some opportunity on LSR and Pizza.
South:
• LSR usage is very low. This could turn out to be a significant opportunity for the mushroom industry to develop this segment.
• Whole Portabella and Shiitake, mushroom have strong opportunity in Full Service Restaurants.
• Shiitake opportunity is the highest in the South among all regions.
• Oyster and Baby Bellas continue to have opportunities in the Full Service Restaurants.
Northeast:
• LSR usage is very low. This could turn out to be a significant opportunity for the mushroom industry to develop this segment .
• Portabella, Shiitake, Oyster and Baby Bellas continue to have opportunities in the Full Service Restaurants.
• Sliced white mushrooms also has some opportunity among Pizza.
Midwest:
• LSR usage is very low. This could turn out to be a significant opportunity for the mushroom industry to develop this segment .
• Portabella, Shiitake, Oyster and Baby Bellas continue to have opportunities in the Full Service Restaurants.
93
Other Key Issues
Interviewing operators in major chains, regional chains and independents revealed:
• All operators need information on mushroom handling, storage, processing and quality
determination.
• The primary and the sole source of the information is distributors and vendors.
• It should be noted that the perception is that distributors and vendors do not proactively
give information out to the industry.
• For independents the distributor and the vendor is the same person.
• Some operators did mention education material they had received on mushroom in the
past as very helpful.
• But in an industry where turnover is above 180%, it is important to keep education and
information flow on-going and not one-time.
Hence it is of primary importance for the distributor and the vendor to on an ongoing basis to
educate the end-user about handling, storage, processing and quality determination of
mushrooms.
94
Some Tactic Examples
- Revisit past communication materials and update them on an ongoing basis.
- Communicate the information to the end-users through.
- A website that is communicated on all mushroom materials
- Through communication and training materials.
- Annual mushroom convention that focuses on:
- Best practices
- Handling, sourcing, processing, storage and quality detection training.
- Exciting information and facts
- Recipes and easy of cooking
- Taste testing
- What is new in the mushroom world
- Mushroom promotions by region, by time of the year.
- Mini-breakouts by Chain vs Independents and by industry.
- Mushroom recipes by mushroom type and regions.
95
By Region
Population vs. % Using Mushrooms: Per Capita Usage Of Mushrooms:
30
25.0
West Midwest
South
25 19.9
Per Capita Mushroom Usage
20.0
% of pop using Fresh Mushroom
Northeast
20 15.6
14.5
15.0
15
9.5
10.0
10
5.0
5
0.0
0 Northeast Midw est South West
0 5 10 15 20 25 30 35 40
Pop (in Millions)
Population vs. % Using Mushrooms:
1. Even though west is not the most populated of the regions, it accounts for the highest %
of mushroom sales as it has the highest per-capita mushroom consumption.
2. South, is the most populated but has the lowest % of mushroom sales as per capita
consumptions is less than ½ of that of the west.
3. Northeast has a lower % of population using mushrooms.
96
West: Mushroom Opportunity Coefficient
This coefficient is a measure of the opportunity of fresh mushroom in different industry segments.
WHOLE White Portabella Shiitake Oyster Baby Bellas Enoki Woodear
LSR Traditional 123 34 13 5 5 0 7
Pizza Restaurants 321 49 0 0 0 0 0
Full-Service Restaurants 1312 959 627 346 263 119 142
Travel & Leisure 114 74 47 17 13 15 16
Business & Industry 54 36 16 7 11 6 7
Education 35 19 10 4 7 3 3
SLICED White Portabella Shiitake Oyster Baby Bellas Enoki Woodear
LSR Traditional 89 10 0 0 0 10 0
Pizza Restaurants 348 31 0 0 0 0 0
Full-Service Restaurants 474 0 0 0 0 0 0
Travel & Leisure 42 4 3 0 0 0 0
Business & Industry 27 11 3 0 0 0 0
Education 14 0 0 0 0 0 0
97
How to WIN the West?
• Use whole white mushrooms to focus for maximum opportunity on
• Full Service Restaurants
• Whole white also has significant opportunities among
• Pizza and
• LSR
• Whole Portabella mushroom have strong opportunity in
• Full Service Restaurants
• Shiitake, Oyster and Baby Bellas continue to have opportunities in the
• Full Service Restaurants
• Enoki and Woodear show the most opportunity among all regions in the west.
• Sliced white mushrooms show some opportunity on
• LSR and
• Pizza
• Sliced white mushrooms also has some opportunity among
• Full Service Restaurants
98
South: Mushroom Opportunity Coefficient
This coefficient is a measure of the opportunity of fresh mushroom in different industry segments.
WHOLE White Portabella Shiitake Oyster Baby Bellas Enoki Woodear
LSR Traditional 70 20 9 3 3 0 4
Pizza Restaurants 182 29 0 0 0 0 0
Full-Service Restaurants 745 572 413 211 147 77 75
Travel & Leisure 65 44 31 11 7 9 8
Business & Industry 31 21 10 4 6 4 4
Education 20 11 7 3 4 2 2
SLICED White Portabella Shiitake Oyster Baby Bellas Enoki Woodear
LSR Traditional 50 6 0 0 0 7 0
Pizza Restaurants 198 18 0 0 0 0 0
Full-Service Restaurants 269 0 0 0 0 0 0
Travel & Leisure 24 3 2 0 0 0 0
Business & Industry 16 6 2 0 0 0 0
Education 8 0 0 0 0 0 0
99
How to WIN the South?
• Use whole white mushrooms to focus for maximum opportunity on
• Full Service Restaurants
• Whole white also has significant opportunities among
• Pizza
• LSR usage is very low. This could turn out to be a significant opportunity for the mushroom industry to
develop this segment.
• Whole Portabella and Shiitake, mushroom have strong opportunity in
• Full Service Restaurants
• Shiitake opportunity is the highest in the South among all regions.
• Oyster and Baby Bellas continue to have opportunities in the
• Full Service Restaurants
• Sliced white mushrooms also has some opportunity among
• Full Service Restaurants
100
Northeast: Mushroom Opportunity Coefficient
This coefficient is a measure of the opportunity of fresh mushroom in different industry segments.
WHOLE White Portabella Shiitake Oyster Baby Bellas Enoki Woodear
LSR Traditional 67 19 8 4 4 0 3
Pizza Restaurants 174 28 0 0 0 0 0
Full-Service Restaurants 712 550 355 268 185 74 61
Travel & Leisure 62 42 27 13 9 9 7
Business & Industry 29 21 9 5 7 4 3
Education 19 11 6 3 5 2 1
SLICED White Portabella Shiitake Oyster Baby Bellas Enoki Woodear
LSR Traditional 48 6 0 0 0 6 0
Pizza Restaurants 189 18 0 0 0 0 0
Full-Service Restaurants 257 0 0 0 0 0 0
Travel & Leisure 23 2 2 0 0 0 0
Business & Industry 15 6 2 0 0 0 0
Education 8 0 0 0 0 0 0
101
How to WIN the Northeast?
• Use whole white mushrooms to focus for maximum opportunity on
• Full Service Restaurants
• Whole white also has significant opportunities among
• Pizza
• LSR usage is very low. This could turn out to be a significant opportunity for the mushroom industry to
develop this segment.
• Whole Portabella mushroom have strong opportunity in
• Full Service Restaurants
• Portabella, Shiitake, Oyster and Baby Bellas continue to have opportunities in the
• Full Service Restaurants
• Sliced white mushrooms also has some opportunity among
• Full Service Restaurants and
• Pizza
102
Midwest: Mushroom Opportunity Coefficient
This coefficient is a measure of the opportunity of fresh mushroom in different industry segments.
WHOLE White Portabella Shiitake Oyster Baby Bellas Enoki Woodear
LSR Traditional 74 20 9 5 5 0 4
Pizza Restaurants 194 30 0 0 0 0 0
Full-Service Restaurants 791 579 408 315 220 64 70
Travel & Leisure 69 44 31 16 11 8 8
Business & Industry 33 22 10 6 9 3 3
Education 21 11 7 4 6 2 2
SLICED White Portabella Shiitake Oyster Baby Bellas Enoki Woodear
LSR Traditional 53 6 0 0 0 5 0
Pizza Restaurants 210 19 0 0 0 0 0
Full-Service Restaurants 286 0 0 0 0 0 0
Travel & Leisure 25 3 2 0 0 0 0
Business & Industry 17 6 2 0 0 0 0
Education 9 0 0 0 0 0 0
103
How to WIN the Midwest?
• Whole white mushrooms have the maximum opportunity in
• Full Service Restaurants
• Whole white also has significant opportunities among
• Pizza
• LSR usage is very low. This could turn out to be a significant opportunity for the mushroom industry to
develop this segment.
• Whole Portabella mushroom have strong opportunity in
• Full Service Restaurants
• Portabella, Shiitake, Oyster and Baby Bellas continue to have opportunities in the
• Full Service Restaurants
• Sliced white mushrooms also has some opportunity among
• Full Service Restaurants and
• Pizza
104
Fresh Mushroom Opportunity
By Industry
Total Mushroom Volume by Industry
Total = 356MM Lbs.
Non-Restaurant
Industry contributes Healthcare Oth Foodservice
Education 2%
to 12% of
Business
1%
1% LSR
7%
mushroom 3%
consumption
Pizza
Travel & Leisure
22%
5%
Restaurant Industry
88%
contributes to
of mushroom
consumption
FSR
59%
106
Full Service: Mushroom Opportunity Coefficient
This coefficient is a measure of the opportunity of fresh mushroom in different industry segments.
WHOLE White Portabella Shiitaki Oyster Baby Bellas Enoki Woodear
Midwest 791 579 408 315 220 64 70
Northeast 712 550 355 268 185 74 61
South 745 572 413 211 147 77 75
West 1312 959 627 346 263 119 142
SLICED White Portabella Shiitake Oyster Baby Bellas Enoki Woodear
Midwest 286 0 0 0 0 0 0
Northeast 257 0 0 0 0 0 0
South 269 0 0 0 0 0 0
West 474 0 0 0 0 0 0
107
How to WIN the FSR?
2 national and 3 regional chain operators were interviewed in detailed one-on-one interviews.
- Include in Daily Special
Current Recipes - Incentives to promote
(HOW TO PROMOTE BETTER) - More presence in the menu
- Assist with descriptions and photography
- Help romance the menu
- Help develop seasonal menu items
- Educate operators what is mushroom seasonality
- Help define expectations
New Recipes - How many do you expect to sell.
- Bring more varieties of mushrooms to the menu
- Help source mushrooms
- Understand most common issues
- Storage
- Handling
Operations / Handling Help
- Shelf Life
- How to determine quality 108
Answer FAQ
LSR: Mushroom Opportunity Coefficient
This coefficient is a measure of the opportunity of fresh mushroom in different industry segments.
WHOLE White Portabella Shiitake Oyster Baby Bellas Enoki Woodear
Midwest 74 20 9 5 5 0 4
Northeast 67 19 8 4 4 0 3
South 70 20 9 3 3 0 4
West 123 34 13 5 5 0 7
SLICED White Portabella Shiitake Oyster Baby Bellas Enoki Woodear
Midwest 53 6 0 0 0 5 0
Northeast 48 6 0 0 0 6 0
South 50 6 0 0 0 7 0
West 89 10 0 0 0 10 0
109
How to WIN the LSR?
3 national and 2 regional chain operators were interviewed in detailed one-on-one interviews.
- Some have mushrooms in them in the recipe.
- Why not use in more recipes.
Mushroom As An Auxiliary - Perception: Mushrooms are polarized
Item in a Menu Item - Perception: Mushrooms require different handling.
- Perception: Waste could be high
- Most operators find a challenge to attract vegetarian
customers.
Mushroom as a Feature
Recipe - They go with mixed vegetables or blends to reduce risks.
- They need to be educated on the appeal of mushrooms
- Understand most common issues
- Storage (do you need freezer or refrigerator space)
- Handling (can it be handled with meat)
- Sourcing
Operations / Handling Help - Pricing
- (how can I get the portions I need at a good price?
- This will be an issue to educate distributors 110
Answer FAQ
Pizza: Mushroom Opportunity Coefficient
This coefficient is a measure of the opportunity of fresh mushroom in different industry segments.
WHOLE White Portabella Shiitake Oyster Baby Bellas Enoki Woodear
Midwest 194 30 0 0 0 0 0
Northeast 174 28 0 0 0 0 0
South 182 29 0 0 0 0 0
West 321 49 0 0 0 0 0
SLICED White Portabella Shiitaki Oyster Baby Bellas Enoki Woodear
Midwest 210 19 0 0 0 0 0
Northeast 189 18 0 0 0 0 0
South 198 18 0 0 0 0 0
West 348 31 0 0 0 0 0
111
How to WIN the Pizza?
2 national and 2 regional and 2 local chain operators were interviewed in detailed one-on-one
interviews.
Mushrooms go well with other toppings, but mushroom
Current Menu
only have low mix.
- Most operators find a challenge to attract vegetarian
Mushroom as a Feature customers.
Recipe - They go with mixed vegetables or blends to reduce risks.
- They need to be educated on the appeal of mushrooms
- Understand most common issues
- Cooking: Fresh mushroom dries out faster
- Placing mushroom under the cheese maintains integrity,
texture and flavor
Operations / Handling Help
- Storage (without the correct air tight packing, they dry out faster)
- Washing: How do you wash Mushrooms?
- Quality: How do you know it has gone bad?
- Answer FAQ
- Operators need to see beyond white or portabella. They
Educate on Mushroom Variety need to be educated that premium mushroom will allow
them to offer premium menu items at signature prices. 112
Non-Restaurant: Mushroom Opportunity Coefficient
This coefficient is a measure of the opportunity of fresh mushroom in different industry segments.
Travel & Leisure
WHOLE White Portabella Shiitake Oyster Baby Bellas Enoki Woodear
Midwest 69 44 31 16 11 8 8
Northeast 62 42 27 13 9 9 7
South 65 44 31 11 7 9 8
West 114 74 47 17 13 15 16
SLICED White Portabella Shiitake Oyster Baby Bellas Enoki Woodear
Midwest 25 3 2 0 0 0 0
Northeast 23 2 2 0 0 0 0
South 24 3 2 0 0 0 0
West 42 4 3 0 0 0 0
Education
WHOLE White Portabella Shiitake Oyster Baby Bellas Enoki Woodear
Midwest 21 11 7 4 6 2 2
Northeast 19 11 6 3 5 2 1
South 20 11 7 3 4 2 2
West 35 19 10 4 7 3 3
SLICED White Portabella Shiitake Oyster Baby Bellas Enoki Woodear
Midwest 9 0 0 0 0 0 0
Northeast 8 0 0 0 0 0 0
South 8 0 0 0 0 0 0
West 14 0 0 0 0 0 0
113
Non-Restaurant (contd.): Mushroom Opportunity
Coefficient
This coefficient is a measure of the opportunity of fresh mushroom in different industry segments.
Business & Industry
WHOLE White Portabella Shiitake Oyster Baby Bellas Enodi Woodear
Midwest 33 22 10 6 9 3 3
Northeast 29 21 9 5 7 4 3
South 31 21 10 4 6 4 4
West 54 36 16 7 11 6 7
SLICED White Portabella Shiitake Oyster Baby Bellas Enodi Woodear
Midwest 17 6 2 0 0 0 0
Northeast 15 6 2 0 0 0 0
South 16 6 2 0 0 0 0
West 27 11 3 0 0 0 0
114
How to WIN the Non-Restaurants?
2 schools, 2 travel n leisure areas (one cruise and one resort) and 2 businesses (cafeterias)
operators were interviewed in detailed one-on-one interviews.
In Non-Restaurants the biggest challenge is:
To find the key decision maker and the decision process.
• In case of the schools, decision is made by a committee in the school board.
• The criteria used by them is more nutrient and health oriented than taste.
• Of course kid or young adult preferred items (e.g. pizza, chicken nuggets, burgers,
sandwiches) make the menu easier.
Recommendation:
1. Communicate nutrient and health information.
2. Get an independent survey to prove the appeal of mushrooms among children and young
adults.
3. Assist travel-leisure and businesses with
1. Recipe
2. Sourcing and
3. Handling information
115
Fresh Mushroom Opportunity
by
At Home vs. Away From Home:
Current Situation: Opportunities:
70 Even though 88% of mushroom
consumption is from restaurants, Away
60
Home
From Home occasions, other the FSR
% of pop using Fresh Mushroom
50 provide significant opportunity for
Away From Home
growth.
40
The fresh mushroom industry needs to
30
Other Restaurants focus on Home Occasions, as that is
20 currently developed. This can be
further enhanced by:
10 Fast Food
Others • Offering more exotic varieties of
0 School
0 20 40 60 80 100 120
mushroom in grocery/retail outlets.
Pop (in Millions)
• Attaching free recipes on
packaging.
• Referring on the package to a
website that has recipes.
117
By Race
Current Situation: Actions:
90 This will be an interesting area to
80
White, non-Hispanic probe:
70 • Why is it that the non-white population
% of pop using Fresh Mushroom
60 have a lower usage of mushrooms?
50 This will lead to an understanding of
40 mushroom perception by these
30
demographic groups and also develop
recipes to include mushroom usage in
20
ethnic food (e.g. Mexican, Chinese etc.)
Hispanic
10
Others
Asian
Black, non-Hispanic
This will serve gains in two directions.
0 Mexican
0 10 20 30 40 50 60 70 80
They are:
Pop (in Millions)
• Consumption will increase among non-
white population.
• More restaurants too will start using
fresh mushrooms.
118
By Gender N Age
Current Situation: Actions:
25 It is interesting to see that Fresh
Female: 20-39
Mushroom is the food of the emerging
20 Male: 20-39 generation. This gives us the following
% of pop using Fresh Mushroom
opportunities.
15 Female: 40-59
• How can we make Mushrooms Relevant to
Male: 40-59
kids?
10 Female: 60 and over
• Make mushrooms exciting and interesting
Male: 60 and over
• How to incorporate fresh mushrooms in their
5 favorite recipes.
Male: 12 to 19
Female: 12 to 19
Female: 2 to 11 Male: 2 to 11
• Through PR and product placement make it “cool”
0
to eat mushrooms.
0 2 4 6 8 10 12 14 16 18
Pop (in Millions) • The 20 to 39 yr olds, who have a higher
consumption of mushrooms, how can we
hold on to them as they grow older?
• How can we target the aging population?
• Promote the nutritional values of mushrooms.
• Educate to break any old myths. 119
Fresh Mushroom Opportunity
by Mushroom Type
Mushroom Type: How to increase volume
Educate End-
Users
(population)
Educate
Distributors
Develop Assist in Assist to VOLUME
Recipe Handling Communicate INCREASE
Educate
Operators
121
White:
Current Situation:
Actions:
White mushroom has extremely high usage in the FSR, primarily in the West.
- FSR’s in the west should be explored to determine why usage is high.
Pizza has high usage both in whole and sliced.
- A detailed description in the pizza section discusses how to increase volume.
LSR and Travel is showing signs and needs to be pursued.
122
Portabella:
Current Situation:
Actions:
Portabella usage is high usage in the FSR, primarily in the West.
- FSR’s in the west should be explored to determine why usage is high.
Pizza has potential, especially for upscale pizzerias.
- Recipes should be published in Pizza magazines e.g. Pizza today.
LSR and Travel is showing signs and needs to be pursued.
- Gourmet burger chains should be encouraged to test meat-free portabella burgers.
123
Shiitake:
Current Situation:
Actions:
Fresh Shiitake mushroom usage in high the FSR
- FSR’s in the west should be explored to determine why usage is high.
Travel is showing signs and needs to be pursued.
- This is a mushroom that needs awareness and education.
- Recipes would help significantly.
- Distributors need to be made aware and educated.
124
Oyster:
Current Situation:
Actions:
Oyster mushroom usage is restricted in the FSR.
- FSR’s should be encouraged so we have
- More restaurants using the Oyster mushrooms
- Restaurants can rotate recipes in.
- Educating restaurant guest will increase sales mix.
125
Baby Bellas:
Current Situation:
Actions:
Baby bellas usage is limited to the FSR.
Even though the volumetric does not reflect, this can have a high opportunity in pizza especially as
- It has high shelf life
- Easy handling
- Offers the portabella flavor as a lower cost.
This also could have significant home usage. Its look and feel could make it a common household vegetable.
- This needs to be marketed through distributors and to the direct consumers.
126
Enoki:
Current Situation:
Actions:
Enoki mushroom has limited usage and that too focused in the FSR.
- FSR’s should be educated along with distributors.
127
Woodear:
Current Situation:
Actions:
Woodear mushroom has limited usage and that too focused in the FSR.
- FSR’s should be educated along with distributors.
128
Fresh Mushroom Volume Increase
How to Increase
Methodology
Consumer Centric View:
In a National Omnibus Study, 1200 respondents (who do not have a negative disposition) to mushrooms were
asked the following questions.
1. How many menu items do they expect?
- Mushroom as main ingredients
- Mushroom as one of the key ingredients?
2. What needs to happen to make them offer Mushrooms entrees more often?
130
Mushroom Items Expected: Consumer Feedback
How many menu items do they expect?
Consumers expect mushroom entrees and menu items with mushrooms from all types of restaurants.
Mushroom as main ingredients Mushroom as one of the key ingredients
100% 5% 3% 3% 100%
6% 5% 3%
8% 4% 3%
6%
90% 90% 8% 9%
8% 12%
80% 26% 80% 12% 26%
18%
70% 22% 70%
4 or More 4 or More
60% 35% 3 60% 3
38%
50% 2 50% 2
41% 46%
40% 1 40% 56% 1
0 0
30% 59% 30%
20% 42% 20% 36%
26% 22%
10% 10%
12%
0% 0%
LSR Pizza FSR LSR Pizza FSR
Average: 1.70 1.65 1.47 Average: 1.85 2.63 2.21
131
Making Mushrooms More Appealing: Consumer Feedback
What needs to happen to make them offer Mushrooms entrees more often?
Tell me about Mushroom
36%
Nutrients
Specials/Promotional
33%
offering
Chef Inspired Mushroom
31%
Recipees
Do not overcook
26%
mushrooms
Use Quality Mushrooms 22%
Sampling 19%
I need to see w hole
17%
mushrooms
Educate on Mushrooms
11%
safety
0% 10% 20% 30% 40%
132
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