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Born, raised, and educated in Boston, the East Coast is also where retailer Paul Kneeland learned the produce business. He spent about 36 years between New England and New Jersey working produce for several chains, including 26 years with Roche Brothers and another eight with Kings Markets/Balducci’s.
Paul Kneeland, Senior Produce Executive, Gelson's Markets
Today, he is plying his trade at Gelson’s Markets in Southern California, where he was named the firm’s senior produce executive about a year ago.
Southern California living and its temperate weather is a bit different than the East Coast environment, but Kneeland said the supermarket scene is fairly similar. He said when you look at individual retail chains, you can find similar operations on each coast. He said Albertson’s is similar to Stop & Shop. Trader Joe’s is the same everywhere, and Gelson’s is much like King’s Market, where Kneeland ran the produce end of the business from 2007 to 2015. Both are upscale retailers with about two dozen locations.
Gelson’s, Kneeland said, has a very strong presence with organics fresh produce, noting organics represent more than 20 percent of total produce sales. “We have a lot of organic customers and they are very knowledgeable,” he added.
While organic sales in that stratosphere are very good, Kneeland said they have not reached a plateau, and the sector is still experiencing solid year-over-year growth. He noted strong sales create an advantageous marketing position, as the velocity of sales is excellent and the turnover in the distribution center is exceptional.
Produce department in Gelson's.
While the company has a strong core of organic suppliers, Kneeland said the increased sales means the company is always looking “for the right growers to partner with that have our same philosophy.”
With the right supplier, Kneeland said it becomes a collaborative effort with two partners creating a go-to market plan as “we share our strategy and philosophy.”
Not surprisingly, that philosophy revolves around providing premium quality produce as the company has a customer base that is looking for the very best. He said the demographics for Gelson’s Markets are conducive to specialty items throughout the store, including fresh produce and specialty cheeses and vinegars.
Gelson's Market
At Gelson’s, Kneeland is also involved in the in-store foodservice department, which he called a dynamic sector that offers a great opportunity for the 26-store chain. He said this is an area where a supermarket can garner increased sales and grow the bottom line. “Foodservice is a differentiator for us, just like produce. People are passionate about foodservice and eager to have a great experience. It’s very similar to fresh produce,” he said.
Kneeland said one major difference between the two coasts is a trend on the East Coast that sees retail chains adopting a philosophy of using the produce department as a loss leader. He has not yet seen this strategy employed in West Coast supermarkets to a great extent.
In general, Kneeland is a fan of the “pile it high, watch it fly” merchandising philosophy.
West Coast living and its advantageous weather is also a bit more conducive to his hobby of long distance running. Kneeland calls himself an “avid runner” and he has run three marathons. He admits, however, that during his first year at Gelson’s, he has had to devote more time to the career and less time running.
