While the announced renovation of the Market is a step in the right direction, it will leave much of the wholesale portion of the market underserved. This is a vast opportunity just waiting for a creative solution, one that may be usurped if not met quickly as the way consumers want to buy their perishables continues to evolve.
Given Texas’ many seasonal offerings, from tomatoes and melons to citrus and berries, consumers can turn to roadside stands, popup farmer’s markets, and CSA (community supported agriculture) subscriptions services for some of their fresh produce needs. Restaurants and foodservice firms are making deals
with local growers, or putting in rooftop gardens, while larger, national chains are ordering direct and cutting out the middlemen.
The good news is that Houstonians, like the rest of the nation, want to eat healthy and are seeking more fresh fruits and vegetables. And with Houston’s proximity to the Mexico border and its own functional port—the foundation is there to bring much more fresh produce to the city’s receivers.
Opportunity Nearby
One advantage for both the Produce Center and the Farmer’s Market is their proximity to the Port of Houston. Although it is the U.S.’s second-largest port in terms of total trade, traditionally, the Houston Port hasn’t been much of a player in the fresh produce arena due to a lack of refrigeration capabilities. But this is changing: in the spring of 2016, the Port announced plans to build a 300,000-square-foot refrigerated facility next to its Bayport Terminal.
The goal, of course, is to attract more refrigerated cargo to the port, which would be great news to wholesalers who rely on imports from McAllen and Mex-ico, and surprisingly, from the Port of Philadelphia, to maintain supply.
Once the new facility opens, which will feature multiple temperature control areas for both fresh and frozen product, suppliers can rely far less on the faraway Port of Philadelphia for fruit and vegetables and get them to retail shelves and foodservice handlers faster and at lower cost.
Competing for Shopping Dollars
Shopping for fresh produce is something Houstonians love to do. As a result, the city boasts a wealth of regional and national supermarket chains, all competing for the cart space of residents. The three biggest players in the market are San Antonio-based H-E-B with 94 stores; Walmart with 100 stores; and Kroger with 101 locations.
While these giants dominate, there are plenty of other chains to keep price and and availability top of mind, including Aldi, Randall’s, Fiesta Mart, Trader Joe’s, Austin-based Whole Foods (under new ownership by Amazon), as well as membership wholesalers like Costco and Sam’s Club.
