By Danielle Kaye and Waylon Cunningham
NEW YORK, Aug 8 (Reuters) - Michigan health officials cleared shoppers to put lettuce back in their grocery carts, but anxiety about cyclosporiasis is lingering in the grocery aisles, with some produce sellers supplied by local farms saying customers have turned to their markets instead.
An FDA investigation has linked the outbreak, which has spread to 15 states and has hit Michigan the hardest, to iceberg lettuce sourced from Taylor Farms operations in central
Mexico.
The outbreak has shaken consumer confidence in fresh produce beyond just recalled products, hitting sales at restaurant chains and supermarkets.
U.S. unit sales for fresh lettuce in the week ending July 18 were down 9% from a week earlier, according to market research firm NielsenIQ. The cyclospora parasite can cause diarrhea, nausea and other gastrointestinal symptoms.
So far, lettuce sales have not yet rebounded at Sunrise Market in Au Gres, Michigan, despite the all-clear from the state, said owner Angie Bussinger.
"I didn't even know that as a store owner, so I doubt the customers are seeing it yet," she said, predicting at least two more weeks of anxiety and a 1% to 2% drop in monthly produce sales.
Bussinger, 43, said it's not just lettuce and greens: raspberry, blueberry and strawberry sales dipped in July, too, as shoppers latched onto online rumors that seeded fruit would also put them at risk, amid confusion about the scope of contamination.
For now, she’s leaving the lettuce and salad aisle almost entirely empty.
"I don’t want to be Taco Bell," Bussinger said, referring to the chain's sales dip after it was linked to the outbreak.
Foot traffic at U.S. Taco Bell stores, owned by Yum Brands, was down more than 11% on Saturday, August 1, compared to the year-earlier period, according to researcher Placer.ai. Salad chain Sweetgreen on Thursday said it expected a 7% to 8% decline in comparable sales for the year, citing the outbreak.
DEMAND FOR DISCOUNTED GREENS
Michigan, which has reported more than 12,000 cases linked to the outbreak, including two deaths, has seen a variety of reactions.
Romaine and other lettuce sales stayed relatively stable at Steve’s Country Market located in Harrison, in the central part of the state, said Tammy Hayes, the store’s night manager.
"These outbreaks come and go like the weather. You become immune to it,” said Hayes, 61.
In Wisconsin, where far fewer cyclospora cases have been reported, regional supermarket chain Woodman's Markets began discounting Taylor Farms products at the start of the outbreak, said Claire, a cashier who asked to only use her first name.
Roughly 30% of the carts she handles at checkout have Taylor Farms products, from green beans to pre-made salads.
"It seems like most people are taking advantage of the sale instead of being averse to the potential health issues," she said.
A PREFERENCE FOR LOCAL PRODUCE
The farmers market in New York City's Union Square on Friday, which features local vendors, was bustling in the summer heat.
Shopper Melody Fifer said last week she only bought vegetables she could cook, but now she was adding back some greens. "I missed my salads," she said, holding a bag of watercress.
Several salespeople said sales have actually improved. "Right now, people seem to prefer locally grown food," said Samer Saleh, running a stall for Halal Pastures.
Darlene Wolnik, program director of the Farmers Market Coalition, a national nonprofit, said market managers have told her sales surged 15% to 30% as concerns grew over foodborne illnesses.
Argus Farm Stop in Ann Arbor, Michigan, whose storefronts are supplied directly by surrounding farms, has felt the same bump, and local farmers are racing to keep up with demand, said Alex Blume, marketing manager.
“The lettuce is kind of flying off the shelves," he said.
(Reporting by Danielle Kaye and Waylon Cunningham in New York; additional reporting by Nora Eckert in Ann Arbor, Michigan; editing by Peter Henderson and David Gaffen)
