In a market where consumers are increasingly concerned with health and wellness, the produce aisle may be a silver bullet for supermarket retailers. Combining healthfulness, flavor, and convenience, fresh-cut fruits and vegetables are foundational to a proper diet, and grocers are reassessing their merchandising and supply-chain strategies to ensure that health-minded consumers get only the freshest goods.

According to the International Fresh-Cut Produce Association, fresh-cut is expected to become a $10.5 billion business this year. To harness the double-digit growth in the category, retailers are pouring money into the renovation of their produce departments. Given the influence fresh produce has upon consumers' supermarket preferences, the investment is well placed.

Shoppers' expectations of freshness, however, can be a serious challenge to grocers. As Richard Draeger of Menlo Park, California's Draeger's Supermarkets points out, "Customers have become more and more familiar with farmers' markets. As a result of farmers' markets, and with that exposure, they expect us to provide that [level of freshness]." Suppliers are responding to these high expectations by developing new products and alliances that will lead to a more effective merchandising of fresh-cut goods.

As some analysts have noted, if retailers succeed in delivering a fresher raw-product selection and developing the proper in-store presentation, produce may see a big breakout. That quick-service restaurant chains including McDonald's and Wendy's have recently added cut-fruit products to their menus is a clear sign that a profitable new trend is in play.