marketing merchandising management ......industry movers and shakers convene to honor this year’s...
TRANSCRIPT
NOV. 2008 • VOL. 24 • NO. 11 • $9.90
inside... PUNDIT LOOKS AT DEFENDING THE DIGNITY OF PLANTS • RISING STAR RECEPTION • POST PMA NEW PRODUCTS • CENTRAL AMERICAN IMPORTSPERUVIAN ASPARAGUS • IMPORTED ONIONS • WINTER MERCHANDISING • BANANAS • CITRUS • SPINACH • ATLANTA REGIONAL PROFILE • SPECIALTIES ON THE MENUDRIED FRUITS AND NUTS • FLORAL CATEGORY MANAGEMENT
M A R K E T I N G • M E R C H A N D I S I N G • M A N A G E M E N T • P R O C U R E M E N T
Reader Service # 45
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Change Service requested: POSTMASTER: Send address changes to PRODUCE BUSINESS, P.O. Box 810425, Boca Raton, FL 33481-0425.PRODUCE BUSINESS (ISSN 0886-5663) is published monthly for $58.40 per year by Phoenix Media Network, Inc., P.O. Box 810425, Boca Raton, FL 33481-0425.
NOV. 2008 • VOL. 24 • NO. 11
COVER STORYRETAIL RX FOR THE GLOBAL ECONOMY . . . . . . . . . 30Strong relationships andup-to-the-minute information are key in today’s “flat” world.
COMMENTARYTHE FRUITS OF THOUGHTProduce Is The Silver Lining . . . . . . . . . . . . . . 8
RETAIL PERSPECTIVEResponsive Marketing . . . . . . . . . . . . . . . . . 100
EUROPEAN MARKETQ & A With Philippe Binard . . . . . . . . . . . 101
IN EVERY ISSUETHE QUIZ . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
WASHINGTON GRAPEVINE . . . . . . . . 6
RESEARCH PERSPECTIVES . . . . . . . . 10
COMMENTS AND ANALYSIS . . . . . . 11
PRODUCE WATCH . . . . . . . . . . . . . . . . . 16
FLORAL WATCH . . . . . . . . . . . . . . . . . . . 97
INFORMATION SHOWCASE . . . . . 102
BLAST FROM THE PAST . . . . . . . . . 102
N O V E M B E R 2 0 0 8 • P R O D U C E B U S I N E S S 3
FEATURESDEMAND INCREASING FOR CENTRAL AMERICAN PRODUCE . . . . . . . . . . . . 42Consistent supplies, reasonable prices and quality enhance appeal of Central American produce.
BEST WAYS TO SELL PERUVIAN ASPARAGUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45Add value to the asparagus category through excitingdisplays, enticing promotions and creative cross-merchandising.
MERCHANDISE IMPORTED ONIONS WITH EASE . . . . . . . . . . . . . . . . . . . . . . . . . . . 48Sweet offerings from Peru, Chile and Mexico bring excellent profits when domestic supplies are unavailable.
WINTER MERCHANDISING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54Build spectacular sales this holiday season with cross-merchandising, themed promotions and eye-catching displays.
DEPARTMENTSMERCHANDISING REVIEWS: Nine Ideas For Better Banana Merchandising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66Boost sales of this popular produce item by expanding offerings, building creative displays and promoting beyond price.
Six Tips for Merchandising Citrus Year-Round . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72Find new ways to attract consumers with plentiful displays, usage ideas and effective sampling.
Best Spinach Merchandising Tips . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78Boost sales of this favorite by promoting its diverse usages, playing up health benefits and restoring consumer confidence.
FOODSERVICE MARKETING:Specialty Trends Make Waves On Menus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91Restaurants and other foodservice outlets expand their selection of specialty fruit and vegetable offerings.
DRIED FRUIT AND NUTS:Holidays Ring In Dried Fruit And Nut Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95Encourage sales this holiday season with increased advertising, smart merchandising and recipe ideas.
FLORAL & FOLIAGE MARKETING:Listening To The Numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98Proper category management practices enable floral directors and category managers to make informed decisions about providing just the right product mix.
SPECIAL FEATURESTHE RISING STAR RECEPTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12Industry movers and shakers convene to honor this year’s class of 40-under-Forty recipients and meet industry leaders of tomorrow.
FROM THE PAGES OF THE PERISHABLE PUNDITWelcome To The Age Of Preposterous Reasoning: Defending The Dignity Of Plants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
NEW PRODUCTS UNVEILED AT FRESH SUMMIT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22Once again, PMA is the place to find the new and noteworthy.
REGIONAL PROFILEAtlanta Produce Heats Up The South . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86Prime location, diverse demographics and unique selection of fruits and vegetables keeps this Southern city at the top.
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Photocopies of this form are acceptable. Please send answers to: NOVEMBER QUIZ PRODUCE BUSINESS • P.O. Box 810425 • Boca Raton, FL 33481-0425
WIN A TELESCOPE FIELD CHAIRNo need to be uncomfortable watching kids’ socccer games. The Telescope Field Chairlets you compress the chair into a bundle that tucks neatly into its own shoulder bag.The chair contains cool mesh, a hanging drink holder and utility pockets.
QUESTIONS FOR THE NOVEMBER ISSUE1) What is the web address for Tanimura & Antle? _______________________________________
____________________________________________________________________________________
2) What is the phone number for Plain Jane?____________________________________________
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3) What is the P.O. Box number for T. Marzetti Co.? ______________________________________
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4) What is the fax number for Bland Farms? ____________________________________________
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5) What health organization is “changing the way our children eat -- one bite at a time”?______
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6) How many years has Canon Potato Co. been in business? ______________________________
This issue was: ❏ Personally addressed to me ❏ Addressed to someone else
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THIS MONTH’S WINNER:Eric PatrickMarketing DirectorGrant J. Hunt Co. Yakima, WA
PRODUCEQUIZ
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How To WinTo win the PRODUCE BUSINESS Quiz, the firstthing you have to do is enter. The rules aresimple: Read through the articles andadvertisements in this issue to find theanswers. Fill in the blanks correspondingto the questions below, and either cut alongthe dotted line or photocopy the page, andsend your answers along with a businesscard or company letterhead to the addresslisted on the coupon. The winner will bechosen by drawing from the responsesreceived before the publication of our January issue of PRODUCE BUSINESS. Thewinner must agree to submit a color phototo be published in that issue.
Dull moments are a rarity for Eric Patrick,marketing director, Grant J. Hunt, Co., Yaki-ma, WA. “Every season is different,” henotes. “Nothing is ever the same in thisbusiness. It’s an upbeat, fun industry.”
The 11-year produce veteran has beenwith Grant Hunt since 2005. Grant Huntimports, exports and distributes an array ofitems, including apples, berries, cherries, cit-rus, potatoes, pears, onions, melons, Italianprunes and specialty produce to retailersand foodservice outlets. “We work through-out the United States and in several interna-tional markets.”
A PRODUCE BUSINESS reader since 1997, Ericenjoys reading about food safety, sustain-ability and logistics. “You really are good atgetting in depth on industry issues that real-ly matter,” he says. “You guys certainly havebeen paving the way in that respect. It’s awell-read resource that most of the profes-sionals I work with read and talk about.”
As the winner of the PRODUCE BUSINESSQuiz, Eric wins an organic cotton terrybathrobe.
P R O D U C E B U S I N E S S • N O V E M B E R 2 0 0 84
N O V. 2 0 0 8 • V O L . 2 4 • N O . 1 1
President & Editor-in-Chief • JAMES E. [email protected]
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Contributing EditorsCAROL BAREUTHER, DUANE CRAIG, FRITZ ESKER,PETER LAVERY, LISA LIEBERMAN, K.O. MORGAN,LIZ PARKS, JULIE COOK RAMIREZ, JODEAN ROBBINS,LISA SOCARRAS, JON VANZILE
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SANDY [email protected] [email protected] [email protected] Department MarketingE. SHAUNN [email protected] Solutions and Integrated SalesJIM [email protected] insertion orders, payments, press releases,photos, letters to the editor, etc., to:PRODUCE BUSINESSP.O. Box 810425Boca Raton, FL 33481-0425Phone: 561-994-1118 Fax: 561-994-1610E-mail: [email protected]
PRODUCE BUSINESS is published byPhoenix Media Network, Inc.James E. Prevor, Chairman of the Board P.O. Box 810425Boca Raton, FL 33481-0425Phone: 561-994-1118 Fax: 561-994-1610Entire contents © Copyright 2008Phoenix Media Network, Inc.All rights reserved.Printed in the U.S.A.Publication Agreement No. 40047928
P R O D U C E B U S I N E S S • N O V E M B E R 2 0 0 86
For all the attention produce trace-ability has received lately, you’dthink the industry didn’t alreadyhave the capability to do it. Makeno mistake about it, the produce
industry has the ability — today — to trackour products along the supply chain.
Let’s look at whole-chain traceability andits benefits. Whole-chain traceability is theability to track a product’s path along the sup-ply chain both within a single company andbetween multiple companies. It includesinternal traceability — the confidential orproprietary data and processes companiesuse within their own operations to track/trace product — and external traceability —the processes and data exchange betweenbusiness partners to track/trace product.Whole-chain traceability can impact a compa-ny’s bottom line by reducing system redun-dancies, enhancing supplier performanceevaluations and improving inventory control.Perhaps most importantly, it can facilitateproduct recalls and trace-back investigationsonce a product is correctly identified.
Under the Bioterrorism Act, every compa-ny must be able to track its raw materials andincoming and outgoing products — one-stepforward/one-step back traceability — and theindustry has the resources and capability doit. If a company cannot comply with theseregulations, then strong U.S Food and DrugAdministration (FDA) enforcement of the lawis appropriate. The law also requires compa-nies to keep records showing the one-step for-ward (trace forward) and one-step back (traceback) process along the supply chain and tobe able to provide these records within 24hours. These records must show the sourceand recipient of all raw materials used in theproduction of foods offered for consumption,and they must include a description, lot num-ber, quantity and date received. The existingregulation exempts farms and restaurants, butthe first commercial recipient of a productand companies distributing produce to restau-rants and other points-of-purchase arerequired to maintain these records. Whetherdiscussing packaged or whole commodity pro-
duce, the industry has procedures in placethat provide traceability information from thefarm to the consumer point-of-purchase.
But here is the problem: Current trace-ability practices are only effective one stepat a time along the supply chain and if onerecord (or “link”) is lost anywhere along thechain, the entire trace back or trace forwardis jeopardized. The current system reliesheavily on internal traceability, so compa-
nies’ internal proprietary codes and labelingmust be “translated” or compared to those oftheir suppliers and customers from point topoint along the chain. During a trace back,investigators must move along the supplychain in a linear fashion, relying on accu-rate translation of these codes at each step.This takes time and requires an understand-ing of each company’s internal traceabilitysystems. It can also add inefficiencies to theprocess and slow down trace-back investiga-tions. In other words, while internal trace-ability systems can meet legal obligations,external traceability is needed to achieveindustry-wide, whole-chain traceability.
United Fresh Produce Association, Cana-dian Produce Marketing Association and Pro-duce Marketing Association just announcedthe new Produce Traceability Initiative (PTI)aimed at achieving whole-chain, electronictraceability by 2012 by enhancing externaltraceability systems. A steering committeeof 54 organizations including foodserviceoperators, retailers, distributors, terminalmarkets, brokers, processors, packers andgrowers/shippers and supply-chain tradeassociations developed its recommendations.
The group developed an action plan for
the industry to adopt an effective whole-chain traceability program based on com-mon data standards that serve as the linkbetween company-specific internal traceabil-ity programs. Using two common pieces ofdata — GTIN number and lot code — in con-junction with companies’ internal systems,produce traceability at the case level can beimmediate and thorough. These commondata points will make translating internalsystems unnecessary, and multiple pointsalong the supply chain will know instantly ifand when they handled a particular productand lot number. Simultaneous whole-chaintraceability will be faster and more efficientthan the current linear traceability system.
PTI is a critical step in reaching whole-chain traceability, but it isn’t the only step.The industry must also adopt other trace-ability best practices where appropriate. Forexample, reusing produce cartons is a com-mon practice among produce handlers, butthis practice must be controlled to ensurereused cartons do not pose a contaminationrisk and carton labels are accurate.
Repacking operations have drawn scruti-ny as a special problem, but they don’t haveto be. Just as packaged produce is expectedto have the source and lot code numbers foreach ingredient clearly printed on the pack-age, repackers can treat the same commodi-ty from different growers or packinghousessimilarly, using the same principles andprocesses as those used for each ingredient.
Traceability is the responsibility of every-one along the supply chain. Retailers willhave to invest in tracking cases to the storelevel, imported produce must be held to thesame requirements as domestically sourcedproduce, and “cash and carry” operationsshould be required to maintain records ofthe source of their ingredients and products.The recordkeeping required need not besophisticated, but it should be adequate toassure complete traceability.
The industry must look at traceability asa business function and find ways to be effi-cient and effective. PTI is a necessary com-ponent, but many details still remain.
Produce Traceability
A report on the inside happenings of government.
WASHINGTON GRAPEVINE
SUBMITTED BY ROBERT GUENTHER, SENIOR VICE PRESIDENT, PUBLIC POLICY • UNITED FRESH PRODUCE ASSOCIATION
PTI is a critical stepin reaching whole-chain traceability, but itisn’t the only step.
What is a Pundit?Merriam Webster — a person who gives opinions in an authoritative manner usually through the mass media.
What is the Perishable Pundit?Just ask our readers —
“... providing substance, thought-provoking opinions and, at the very least, waking up many.”
“Excellent commentary on the status of regulators’ positioning on food safety for the produce industry.”
“... bringing some common sense to the E. coli issue of late.”
“... a lively and engaging forum for discussion of issues relevant to the produce industry.”
“... thought-provoking commentary with robust dialog.”
“... keeping the debate going...”
“... kind of an investigative reporter...”
“... extensive coverage leaves no subject without great healthy discussion, and no topic is too sacred.”
“Your courage in stating your opinion and your reaction to criticism is respectful and honest.”
“... focused on the complicated issues relating to food safety in produce.”
“... teaching the industry quite a bit about the power of the internet.”
“... an education for those of us who are still refining our computer skills.”
“... a valuable service.”
“... the most important journalism in the industry, and now we get them every day... you have become the ‘voice’ ...”
“Your analysis of the state of leadership in the produce industry past, present, and future is right on!”
“... a welcome part of the day that stimulates the mind and encourages us to think about and consider a different point of view.”
“... writing with heart and insight...”
“... one of my ‘must-read’ e-mails everyday!”
“Our industry has traditionally not been associated with being ‘deep thinkers’, and you have definitely become our Thought Leader.”
“... a resource that delves deeply into issues impacting our industry. Kudo’s!”
“Keeps us thinking.”
“... spreading your abundant common sense on a daily basis.”
“... most refreshing.”
“The Pundit does, in fact, incite reactions and cause good thinkers to think harder and longer on topics that are current and newsworthy.”
Catch the Perishable Pundit every day. Go to www.perishablepundit.com click onthe “Subscribe Today” button and receive a daily copy of Jim Prevor’s Perishable Punditvia e-mail.
P R O D U C E B U S I N E S S • N O V E M B E R 2 0 0 88
Produce Is The Silver Lining
What was the hot topic of discussion at the ProduceMarketing Association convention in Orlando?Was it food safety? Traceability? Food security?Sustainability? The election? Actually, it was thestate of the 401-K plans of industry members.
How could it be otherwise?It is not a matter of being a wild speculator. If your money was
in an index fund of U.S. stocks, you are probably down around 36percent this year. Which — be thankful for small things — is at leastbetter than the poor folks in Iceland, who are down about 90 per-cent for the year.
And the booming economies of the BRIC (Brazil, Russia, Indiaand China)? Well, those markets are down over 40 percent in Brazil,almost 65 percent in Russia, just shy of 50 per-cent in India and just short of 65 percent inChina. The loss of wealth has been dazzling.
A hit to a stock-market portfolio is a punch tothe gut, because your deflated portfolio doesn’tmean the prices of houses, cars, jewelry, etc.,have dropped as well. It really and truly meansyou are poorer, and that explains why Octobersales at upscale retailer Nieman Marcus weredown an eye-opening 27.9 percent over the pastyear’s sales level.
This downturn has characteristics that willbe felt differently than those of other recentrecessions. First, recent recessions were focusedon blue-collar jobs and, specifically, in the rustbelt. This downturn is hitting highly paid white-collar workers all around the world. Second,recent recessions impacted specific asset classes. This time we areseeing downturns in the value of virtually all assets, which meansthe reverse “wealth effect” is kicking in as people feel poorer andthus rein in spending. Third, this downturn has had so much the airof crisis, with emergency federal bailouts and foreign governmentsneeding loans, that it somehow seems unseemly to spend money.Ostentation is positively out of fashion and this leads to more con-servative spending.
Our new president will doubtless try to right the ship of state buteven if his prescriptions are correct, his freedom to act is constrainedby the financial situation. Having just spent a trillion dollars bailingeveryone out, there just isn’t the money for many new programs.
All of which means it is a great time to be in the produce industry!First, we are selling a non-discretionary product. Oh sure, people
can choose to eat in rather than go out; they can elect to eat pota-toes rather than raspberries; they can even buy canned or frozenrather than fresh — nobody is completely insulated — but, by andlarge, people do have to eat and they will eat lots of fresh produce.As long as people do that, we have the path clear to sustain our
livelihood. That is not as obviously true of those selling $5,000pocketbooks at Nieman Marcus.
Second, in the season of the credit crunch, we can give thanks toRonald Reagan and his Deputy Secretary of Agriculture John Nor-ton for the PACA Trust. John realized that a provision in the Cattle-man and Stockyards Act could be adopted and broadened for freshproduce, and it has turned supermarkets almost into Triple-A cred-its for the produce industry.
The biggest risk in a financial crisis is that the customers won’tpay their bills. Though there is no perfect defense against this prob-lem and due caution is always advisable when extending credit, thebackstop of the PACA Trust makes the produce industry exception-ally strong in the current environment.
Third, man does not live by bread alone. Ina recession, people don’t usually splurge on thebig purchases. They hold off on the beachhouse, the lavish vacation, the new car. Still,they don’t turn into monks, and all thisrestraint can actually serve to increase theirincome available for less dramatic purchases.
Combine more home entertainment with aminor sense of deprivation from not makingbig-ticket purchases and you have a hunger forsmall indulgences. Maybe it is buying somepapaya or mango, since you aren’t going to thatwarm-weather vacation spot. Or maybe it is afew perfect raspberries to drop in champagnewhen friends are coming over. Perhaps a fewcolored peppers to add zip to life. If life becomesdrab, fruits and vegetables are the kind of inex-
pensive pleasures that can delight without being extravagant.And what about those 401-K statements? It is a bit counterintu-
itive, but because the nature of produce means most of the industrycan continue to work and save through the downturn, most willbenefit from lower prices for securities. It is a simple matter really;just ask if you are going to be a net buyer or seller of securities overthe next few years. If you will be buying because you continue toinvest for your retirement, the lower prices of today will allow youto buy more shares. So it is much in your interest to have lowerstock prices now while you are buying.
So the non-discretionary nature of the produce industry com-bines with its solid credit situation and small-indulgence appeal tocreate a solid opportunity to work, earn and save during this down-turn in the economy. This ability to make it through a downturngives those who work in the industry a fantastic opportunity to buydistressed assets others have to dump because their industries arenot as stable.
It is a dual win and as we approach the holiday season, it givesus all something to be thankful for. pb
By James Prevor President & Editor-in-Chief
THE FRUITSOF THOUGHT
Despite
economic clouds,
it is a great
time to be in the
produce industry!
P R O D U C E B U S I N E S S • N O V E M B E R 2 0 0 810
Remember as children how we playedthose connect-the-dots games? Pro-duce safety is a bit like that game,which starts with a grid of dots.While initially the dots don’t seem
related or connected, the more you work at it,the more you find everything is eventuallyconnected.
When Produce Marketing Association(PMA) connected the dots together from someof our recent consumer surveys on producesafety, a clear picture of weary consumersemerged.
At the beginning and near the end of therecent Salmonella saintpaul outbreak, weconducted surveys to garner consumers’ per-spectives on produce safety after a summerfilled with food-safety advisories. On the onehand, we find consumers were more confi-dent in the safety of America’s fresh producein August than they were in June; on theother hand, surveyed consumers judged theproduce industry more harshly than they didjust two months earlier. The negative rating ofthe industry’s handling of the tomato incidentmore than doubled between June and August.
The main reason given by those who havehigh confidence in the nation’s fresh producesystem is trust in government regulators, theproduce industry and farmers. The main rea-son given by those who have a lack of confi-dence is the exact reverse — distrust of thosesame key players. This indicates the challengewe face: for industry and government to reas-sure those consumers who are tired of theuncertainty and need their trust restored.
Recent indications suggest legislators andregulators are weary, too. We heard it fromCongress during food-safety hearings late thissummer, including the traceability hearingwhere I gave testimony. We’ve also heard itfrom legislators and regulators working onvarious food-safety proposals.
I’ve said this before and I’ll say it again:We must do an even better job to defend pub-lic health and safeguard our products — andmust do even more at telling the story aboutwhat we are doing and why.
As discussed extensively at PMA’s Fresh
Connecting These Dots Is No GameSummit just concluded in Orlando, we believerestoring consumer confidence requires anindustry-wide philosophical change. Itrequires that every company in our industryconnect the various dots of food-safetyresponsibility, needs and actions to create notjust a food-safety program but a food-safetyculture, from top management down to everyline worker.
To help us do that, PMA enlisted Dr. BobWhitaker to join us as chief science officerearlier this year. Bob’s addition greatlyenhanced our existing staff’s bench strengthand brought the unique perspective of hisproduce-industry experience to help guide ourfood-safety efforts.
Bob, for example, chairs the technicalcommittee at the Center for Produce Safety(CPS) at University of California-Davis, theorganization PMA helped found to conductproduce-specific food-safety research. Nowfully up and running, CPS will this monthannounce the recipients of its first $1 millionin research grants. And Bob also has a wealthof operational experience that is available toshare with PMA members worldwide throughthe presentations he is giving, the audio blogshe’s posting on our Web site (seewww.askdrbob.pma.com) and the insight heshares one-on-one.
To help us tell our story to the public, theconsumers we surveyed told us which mes-sages resonate with them. They told us thatthey want to hear from the people producingtheir food, more so than they want to hearfrom government. They want to know thatthe same standards apply to U.S. growerswhen they operate in other countries, thatimports are held to American standards, andthat we are improving our food-safety inspec-tions and monitoring.
Bob and our staff are also working dili-gently to tell our story to government agen-cies and Congress, who often have at best anincomplete — and at worst a naïve — under-standing of our industry, our capabilities andour needs. We are working hard to correctthis and to make our expectations of themknown:
(1) Adequate funding for FDA, so it cando the job it has been tasked with; and
(2) Mandatory produce safety regulation.To restore consumer confidence in the
safety of fresh produce, PMA believes thatregulation must be risk-based, to give thegreatest consumer protection; scientificallyproven, to reduce food-safety risks; com-modity-specific, to recognize the inherentdifferences among different products,regions and practices; and that all thesepoints should apply to domestically grownproduce as well as imports.
Our future depends upon our ability toconnect the dots — to restore relationships— between our industry and two key stake-holder groups, consumers and government.Of course, produce safety is no game; livesand livelihoods are at stake. Unlike the chil-dren’s game that only has one winner, every-one wins when all these dots get connected.
Every company in
our industry
must connect
the various dots of
food safety
responsibility, needs
and actions to create
not just a food-safety
program but a
food-safety culture…
N O V E M B E R 2 0 0 8 • P R O D U C E B U S I N E S S 11
always be safer.Right now most retailers establish a mini-
mum standard. This may be rigorous or it maybe lax, but the very existence of this standardremoves food safety from the day-to-day con-duct of most buyers. In other words, if a retail-er requires its California leafy greens be pro-duced by a member of the California LeafyGreens Marketing Agreement (CLGMA), thebuyer doesn’t even engage in discussions withfirms that don’t meet that standard. But theday-to-day business probably focuses on price— as food safety is off the table.
If a producer wants to charge morebecause he exceeds the CLGMA metrics, theretail buyer has no directive to pay more formore food safety.
Some would argue it makes no sense to gobeyond minimum standards as such stan-dards are not “science-based,” but the truth isthe industry is in debt to PMA and TaylorFarms for initially funding the Center for Pro-duce Safety, as we desperately need good sci-ence in this area. For now, we have virtuallyno hard “science” to rely on. We just don’tknow core issues, such as the migration rateof E. coli 0157:H7, so we can’t say how big abuffer zone should be.
The challenge for the industry then is howto prevent our ignorance from becoming anexcuse to do nothing.
Children require a clear path, thus the suc-cess of connect-the-dots games. Adults haveto deal with ambiguities, imperfect knowledgeand hard tradeoffs. By doing all this well, theindustry can merit the trust of the consumer.
The analogy to a childhood pastime isapt because the weariness legislators,regulators and consumers feel overfood safety in the produce industry isan outgrowth of an almost infantile
expectation of magic gain with no pain.When Bryan explains the industry must
“do an even better job to defend public healthand safeguard our products,” this can onlymean we must be prepared to put safety aheadof other interests. If this means making ourfarms less productive by, say, putting in largebuffer zones or making our operations morecapital-intensive by insisting on drip irrigationor incurring higher labor costs to monitor morecompressed trapping, then the cause of foodsafety justifies these higher expenses.
Yet, we are somewhat troubled. Althoughwe have heard hundreds of regulators andlegislators at state and national levels speakto food-safety issues related to produce, wecannot recall even one who urged consumersto prepare for higher prices that will be neces-sary to justify the investment in food safety.
Everyone treats food safety as a “freegood,” ignoring the tradeoffs to design andoperate a growing, packing and transportsystem. Just as a car can always be designedto be heavier, have a stronger bumper, etc., socan we always test the water supply more fre-quently or put traps closer together.
That is why the call of the national producetrade associations for government regulationreally begs the question: What would that reg-ulation be? In a sense, we already have gov-ernment regulation. It is against the law rightnow to sell adulterated food products.
It is highly likely any attempt to regulatespecific horticultural practices will founder onthis reality: FDA has given no indication ithas come to peace with any acceptable levelof foodborne illness in the way the NationalHighway Traffic Administration has come topeace with automobile accidents.
This means FDA will look to avoid thekind of specific regulation that could poten-tially lead to its being blamed for a futurefood-safety outbreak. So we will never get aregulation that actually tells us what to do.
No regulation ever says something like:“Fields must be fenced with a wire mesh fencewith an aperture not to exceed 23⁄4”. The fenceshall extend from six inches below the groundup to six feet above the ground.” Why?Because if an animal manages to get throughthe aperture or burrow below or jump over thefence, FDA would get blamed for an outbreak.
So we will wind up with vague admoni-tions that come out something like: “Fieldsshould be adequately fenced to guard againstunacceptable animal intrusion.”
If regulation is unlikely to solve the prob-lem, what about our “telling the story aboutwhat we are doing and why”? Alas, this formof communication is also problematic. Yes, wehave to tell our story to regulators, and PMA’saddition of Dr. Bob Whitaker to its staff givesneeded credibility to that effort, but speakingdirectly to consumers about food safety is aslikely to do as much harm as good.
Of course, produce companies and theindustry at large should have copious infor-mation available on Web sites for consumersmotivated to study the issue. But there is nogood research indicating raising these issuesactually reassures consumers. One suspects itis just as likely to raise doubts as to reassure.
As to Bryan’s desire that “every companyin our industry connect the various dots offood safety responsibility,” we couldn’t agreemore that the key to food safety is the corpo-rate culture. However, the odds are not good“every company in our industry” is going todo anything, much less something as pro-found as changing its corporate culture.
What we could do is work on changingthe industry incentives. The goal should be toprevent a food-safety culture from becomingdysfunctional. This inevitably means a focuson the buyers.
If buyers focus on getting the lowest price,producers will focus on driving costs out ofthe system. If buyers focus on something else— food safety, quality, flavor, whatever —producers will focus on achieving that goal.
The key to making the cultural shift is tomove away from minimum compliance stan-dards and toward a cultural imperative to
Food Safety Requires Mature Thinking
The goal should
be to prevent a
food-safety
culture from becoming
dysfunctional.
BY JIM PREVOR, EDITOR-IN-CHIEF • PRODUCE BUSINESS
COMMENTS & analysis
Lorna Christie of PMA and Scott Horsfall of California Leafy Greens Marketing Agreement
Dave Corsi of Wegmans
P R O D U C E B U S I N E S S • N O V E M B E R 2 0 0 812
The honored guests of the evening — members of the 2008 40-Under-Forty class
Thanks to our sponsors — Joe Pezzini of Ocean Mist, Jerry Butt of MIXTEC, Ed Boutonnet of Ocean MistFarms and Chris Nelson of MIXTEC
Elliott Grant of Yotta MarkChuck Ciruli of Ciruli Bros. and Jackson Woodward of Horton Fruit
Ken Whitacre of PRODUCE BUSINESS
and Todd Eagan of Costco
Bryan Silberman of PMA
T H E R I S I N G S T A R R E C E P T I O NOn Saturday night, Oct. 25, at the PMA Fresh Summit in Orlando, FL, PRODUCE BUSINESS,
in conjunction with sponsors MIXTEC and Ocean Mist Farms, hosted the fourth annual Rising Star Reception to celebrate this year’s 40-Under-Forty* class.
In addition to the members of the class of 2008, attendees included members of the classes of 2005, 2006 and 2007,as well as many movers and shakers of the produce industry. Forty-eight students from seven U.S. colleges and five interna-
tional colleges also attended.The students were participants of the Pack Family/PMA Career Pathways Fund.
*40 Under Forty, an annual feature of PRODUCE BUSINESS, honors the produce leaders of tomorrow,all of whom have been chosen by industry mentors for their industry and community accomplishments.
Please see this year’s winners by visiting www.producebusiness.com and clicking on our June 2008 issue
Josèe Petitclerc and Josianne Gauthier of Dolbec PotatoJim Prevor of PRODUCE BUSINESS
Joe Merenda, Tom Minnich and Kacie Vieth of Foodsource, and Jim Lemke of C.H. Robinson
Stan Paluszewski and Dan Quier of Four Seasons Produce
Andrew Sharp of Mack Multiples, David Powter of The Grape Co., Rory Astrotus of Green Marketing and Thys Brink of The Grape Co.
Andrew Bianchi and Bob Giragusian of Kern Ridge
Nelia Alamo of Gills Onions andEmily Fragoso of Coast Produce
Mike Tipton of K-VAT Food StoresShane Rogers and Andrew Schwartz of Rosemont Farms
Jackie Wiggins of Frieda’s, Harold Alston formerly of Stop & Shop and Karen Caplan of Frieda’s
Chuck Ciruli of Ciruli Bros. and Claudia Wenzig of United Fresh
Rolando Haches and Andreas Schnindler of Don Limon GmbH
Emily Fragoso of Coast, Miele Shanahan Geis of Buy California Marketing Agreement (BCMA) and Lee Mannering of PMA
T H E R I S I N G S T A R R E C E P T I O N
N O V E M B E R 2 0 0 8 • P R O D U C E B U S I N E S S 13
Kim Roland and Krystal Thomsen of Driscoll’sDaniel Whittles and Joe McGuire of Rosemont Farms
Garrett Bishop, William Amspacher and Kelly Bishop of California Polytechnic State University
Nichole Towell of Duda
Francisco Obregon of C.H. Robinson and Jose Luis Obregon of Hass Avocado Board
Wes Finchof Texas A&M, Austin Miller of Texas A&M, Marci Allen of DMA Solutions, Chad McGee of Texas A&M,Molly Bliss of Cornell, Morgan Mink of Texas A&M and Megan Zweig of DMA Solutions
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Bob Wilkens, Ryan Bybee, Laura Bybee and Deanne Wilkens of GPOD of IdahoElizabeth Pivonka of Produce for Better Health Foundation and Cindy Seel of PMA
Dave Diver and Jan Fialkow of PRODUCE BUSINESS
Robin Sporn and Shaleen Heffernan of Agrexco and Lyn Hughes of Senareider Michael Hollister and Chuck Sweeney of Driscoll’s
Tim Fleming Jr. of Strube Celery and Vegetableand Kisno Bianchi of Kern Ridge
Greg Anderson and Valerie Sill of Driscoll’sKen Nabal, Jarrod Snider and Javier Gonzalez of Frontera Produce
David Neeley and John Anderson of Oppenheimer
Melany Sloan Jolly, Steve Pinto and Mark Shaw of Markon, and Jeff Nichols of Modern MushroomMiguel Usabiaga of Comercializadora GAB SA de CVand Joseph Ange of Markon
Tate Mathison and Christine Lott of Stemilt, and Valerie Sill of Driscoll’s Jamie Strachan of Growers Express
T H E R I S I N G S T A R R E C E P T I O N
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PRODUCEWATCH
Produce Watch is a regular feature of PRODUCE BUSINESS. Please send information on new products, personnel changes, industry, corporate and personal milestones and available literature, alongwith a color photo, slide or transparency to: Managing Editor, PRODUCE BUSINESS, P.O. Box 810425, Boca Raton, FL 33481-0425, or e-mail us at [email protected]
INTERFRESH, INC.ORANGE, CATom Mendoza has joined the sales staff. He will be responsible for new business development for fresh grapes, stone fruit andmelons. He has nine years of experience working in the produce industry and brings awealth of knowledge about the grape andmelon business.
GROW MY PROFITS, LLCLEE’S SUMMIT, MOLarry Shriver has joined the company as anagronomist consultant. He will work primarilywith producers and his duties will include helping them identify the products retailerswant to sell, improve the quality of their produce offerings and allocate available fundsto maximize profitability. He has more than 30years of experience in the produce industry.
Angie Hanson was hired as a sales and projectmanager. A graduate of Kansas State University,she most recently worked as a staff writer forThe Packer.
SPARTAN STORES, INC.GRAND RAPIDS, MIScott Ruth was hired as vice president, freshmerchandising. He will play a key role in profitable growth strategy in grocery retail andwholesale. He will work with the produce andfloral, meat, seafood, deli and bakery departments. His most recent position was vicepresident, food services, for Bashas’.
PRODUCE PRO SOFTWAREWOODRIDGE, ILJohn Raudabaugh was hired as director ofbusiness development and operational solutions. He has more than 30 years of supply-chain experience with an extensivefocus on RFID implementation. He has participated in numerous initiatives during hiscareer, including the Produce MarketingAssociation RFID Steering Group.
SOUTHERN SPECIALTIES, INC.POMPANO BEACH, FLDeanna Monteagudo was hired as a keyaccount manager. She has more than 10 yearsof experience in the produce industry and previously worked for Pro*Act Specialties, LLC.She brings extensive knowledge of specialtyproduce products and is very familiar with theneeds of foodservice customers.
PEAR BUREAU NORTHWESTPORTLAND, ORLynsey Kennedy has joined PBN as international program coordinator and will beresponsible for executing a variety of exportmarketing programs. She is a graduate ofOregon State University and previously workedas a strategist and project coordinator for theWarren McKenna Design Group.
Jenny Sullivan has joined as program coordinator, a newly created position. Herduties will include working closely with management staff in executing communications and marketing programs andevents. She is a 2005 graduate of Portland StateUniversity and previously worked for the Agri-Business Council of Oregon.
ORGANIC TRADE ASSOCIATIONGREENFIELD, MAChristine Bushway was appointed executivedirector. Her responsibilities include strengthening the integrity of the organicindustry while enhancing the business climate for organic companies. She has heldleadership positions in the agricultural tradeindustry and served as chief Washington lobbyist for the egg industry.
CHRISTOPHER RANCH, LLCGILROY, CAAmber Oliveira was hired as a sales and project manager. A graduate of California StateUniversity, Long Beach, she most recentlyworked as an event coordinator for GAX EventManagement Solutions, Inc. She comes from a farming-industry family in California’sCentral Valley.
J.J. JARDINA CO., INC.FOREST PARK, GAMark Jardina has joined the sales staff. Hecame aboard with the company six months ago,joining his brother, Mark Jardina, who is thecompany’s president. Jardina Co. is a wholesaledistributor that handles apples, peaches, melons and other produce.
EUREKA SPECIALTIES, INC.LOS ANGELES, CANeal Esposito has been hired as national salesmanager. He will be responsible for managingsales of fresh culinary herbs to foodserviceaccounts throughout the country. He has more than 30 years of experience in the foodservice industry with an emphasis on sales and marketing.
TRANSITIONS
P R O D U C E B U S I N E S S • N O V E M B E R 2 0 0 818
Produce Watch is a regular feature of Produce Business. Please send information on new products, personnel changes, industry, corporate and personal milestones and available literature,along with a color photo, slide or transparency to: Managing Editor, Produce Business, P.O. Box 810425, Boca Raton, FL 33481-0425, or e-mail us at [email protected]
PRODUCEWATCH
EUROFRESH EXPECTS RECORD CAMPARI SALESEurofresh Farms, Willcox, AZ, anticipates double-digit growth of its Campari tomato variety forthe 2008-09 winter selling season. All EurofreshFarms’ Campari tomatoes are grown in the UnitedStates, certified pesticide-free and available year-round from the company’s farms in Arizona.
FRIEDA CAPLAN HONOREDFrieda’s Specialty Produce, Los Alamitos, CA,announces Frieda Rapoport Caplan, founder andchairman of the board, was recently honored at theCivil Right Gala hosted by the Anti-DefamationLeague (ADL) Orange County/Long Beach RegionalOffice. She was regognized for her ongoing support of ADL and its programs.
SEALD AIR OPENS INNOVATION FACILITYSeald Air Cryovac, Elmwood Park, NJ, openedPackforum Americas, a 28,000-square-foot innova-tion and learning center in Atlanta. The center is a permanent customer forum that brings the foodprocessing, supermarket and foodservice industries together to experience the full globalrange of Cryovac food-packaging systems, programs and services.
VISION GROUP RECEIVES MANGOSVision Import Group, LLC, River Edge, NJ, iscurrently receiving mangos from Brazil and willbegin to receive mangos from Ecuador duringthe first week of November and expects to havethem available through the end of February per-miting weather and market conditions stay favor-able. Although the crop will be delayed and thevolumes may be lower than this past year, thequality should be exceptional. Vision Import shouldreceive its first shipments of Peruvian mangos duringthe first week of January.
VOC ANNOUNCES CONTEST WINNERVidalia Onion Committee (VOC), Vidalia, GA,announced the winner of its Original SweetOnion Trivia Contest, which pushed sales ofVidalia onions and educated more than 6,500consumers about the pioneer of all sweetonions. The grand prize winner, Jo AnneJohnson, was awarded an all-expense-paid tripfor four to Savannah, GA.
HAB ENCOURAGES GAME-DAYAVOCADO CONSUMPTIONHass Avocado Board (HAB), Irvine, CA, promotes avariety of avocado usage ideas for sports fans as ameans of getting people to add avocados to theirmenu must-haves while watching their favoritesporting events. A free copy of the FoodservicePromotion Guide for Fresh Hass Avocados can beobtained by visiting the HAB Web site.
NMB ANNOUNCES CONTEST WINNERSNational Mango Board (NMB), Orlando, FL,announced the winner of its Rising MangoStar, a national contest for kids aimed at challenging them to create their own mangorecipe and boosting their mango consumption.Dean Sturt, 10, won first place for hisMangolicious Flip-Flop Cake and will appearon a segment of Food Network’s SimplyDelicioso with Ingrid Hoffman, the show’s starand NMB spokeswoman .
FSGA KICKS OFF WINTER HARVESTFlorida Strawberry Growers Association, Dover,FL, hopes to boost consumption of Florida-grown winter strawberries, the only winter strawberry harvested in the UnitedStates, by creating awareness about their availability, nutrition and freshness. Florida-grown strawberries are typically sold instores from December through April, but theycan be harvested as early as November.
MANN EXTENDS SAVINGS TO MULTIPLE PACKSMann Packing, Co., Salinas, CA, is offering an on-pack coupon for its Steam in Bag vegetable productline. From Oct. 13 through Dec. 31, consumers cansave 55¢ when they buy any two Broccoli Wokly,Mann’s broccoli & carrots, broccoli & cauliflower, cal-ifornia stir fry or vegetable medley packages. Morethan 35,000 on-pack offers will be applied.
PFK KICKS OFF WELLNESS CAMPAIGNOrange Country Public Schools Food & NutritionServices kicked off the school year and its newcounty-wide wellness program in partnership withthe Produce For Kids (PFK), Orlando, FL, PBS Kidsand Publix Super Markets Eat Smart for a GreatStart campaign. The week-long campaign raisedawareness among kids and parents about the rolefresh fruits and vegetables play in a healthful diet.
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INLINE CONVERTSTO PET MATERIALInline Plastics Corp., Shelton, CT, is converting the man-ufacture of containers previously made from orientedpolystyrene (OPS) to containers produced from polyeth-ylene terephthalate (PET). Some OPS containers havealready been replaced by PET, and Inline expects to con-vert its entire line to PET by early 2009.
SUPPLY CHAIN LEADERS ENDORSE PTIThirty-four produce supply chain companies endorsedthe Produce Traceability Initiative (PTI), a new plandeveloped by Produce Marketing Association, CanadianProduce Marketing Association and United FreshProduce Association to move the supply chain to a common standard for electronic produce traceability bythe end of 2012. The plan involves adopting a standardized system of case bar-coding for all producesold in the United States and Canada, allowing productto be tracked throughout the supply chain.
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ANNOUNCEMENTS
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From Jim Prevor’s Perishable Pundit, Oct. 17, 2008
Welcome To The Age Of Preposterous Reasoning: Defending The Dignity Of Plants
One of the reasons the world is in such terrible shape is that we havelost the capacity as a civilization to make distinctions. We owe a hat tip toLorri Koster, co-chairman, board of directors, vice president, marketing atMann Packing, for passing on this incredible piece from The Wall StreetJournal:
SWITZERLAND’S GREEN POWER REVOLUTION: ETHI-CISTS PONDER PLANTS’ RIGHTS
Who Is to Say Flora Don’t Have Feelings? Figuring OutWhat Wheat Would Want
ZURICH — For years, Swiss scientists have blithely created geneti-cally modified rice, corn and apples. But did they ever stop to considerjust how humiliating such experiments may be to plants?
That’s a question they must now ask. Last spring, this smallAlpine nation began mandating that geneticists conduct their researchwithout trampling on a plant’s dignity.
. . . Dr. Keller recently sought governmentpermission to do a field trial of geneticallymodified wheat that has been bred to resist afungus. He first had to debate the finer pointsof plant dignity with university ethicists. Then,in a written application to the government, hetried to explain why the planned trial wouldn’t“disturb the vital functions or lifestyle” of theplants. He eventually got the green light.
The rule, based on a constitutional amend-ment, came into being after the Swiss Parlia-ment asked a panel of philosophers, lawyers,geneticists and theologians to establish themeaning of flora’s dignity.
“We couldn’t start laughing and tell the gov-ernment we’re not going to do anything aboutit,” says Markus Schefer, a member of theethics panel and a professor of law at the Uni-versity of Basel. “The constitution requires it.”
In April, the team published a 22-page treatise on “the moral consid-eration of plants for their own sake.” It stated that vegetation has aninherent value and that it is immoral to arbitrarily harm plants by, say,“decapitation of wildflowers at the roadside without rational reason.”
. . . Many scientists interpret the dignity rule as applying mainly tofield trials like Dr. Keller’s, but some worry it may one day apply to labstudies as well. Another gripe: While Switzerland’s stern laws defendlab animals and now plants from genetic tweaking, similar protectionshaven’t been granted to snails and drosophila flies, which are common-ly used in genetic experiments.
It also begs an obvious, if unrelated question: For a carrot, is therea more mortifying fate than being peeled, chopped and dropped intoboiling water?
“Where does it stop?” asks Yves Poirier, a molecular biologist at thelaboratory of plant biotechnology at the University of Lausanne.“Should we now defend the dignity of microbes and viruses?”
Seeking clarity, Dr. Poirier recently invited the head of the Swissethics panel to his university. In their public discussion, Dr. Poirier
said the new rules are flawed because decades of traditional plantbreeding had led to widely available sterile fruit, such as seedlessgrapes. Things took a surreal turn when it was disclosed that somepanel members believe plants have feelings, Dr. Poirier says . . .
Crazy Talk?Several years ago, when Christof Sautter, a botanist at Switzer-
land’s Federal Institute of Technology, failed to get permission to do alocal field trial on transgenic wheat, he moved the experiment to theU.S. He’s too embarrassed to mention the new dignity rule to hisAmerican colleagues. “They’ll think Swiss people are crazy,” he says...
New ConstitutionIn another unusual move, the people of Ecuador last month voted
for a new constitution that is the first to recognize ecosystem rightsenforceable in a court of law. Thus, thenation’s rivers, forests and air are no longermere property, but right-bearing entities with“the right to exist, persist and . . . regenerate.”
Dr. Keller in Zurich has more mundaneconcerns.
. . . One morning recently, he stood by afield near Zurich where the three-year trialwith transgenic wheat is under way. Hisobservations suggest that the transgenic wheatdoes well in the wild. Yet Dr. Keller’s troublesaren’t over.
In June, about 35 members of a groupopposed to the genetic modification of crops,invaded the test field. Clad in white overallsand masks, they scythed and trampled theplants, causing plenty of damage.
“They just cut them,” says Dr. Keller, ges-turing to wheat stumps left in the field.
“Where’s the dignity in that?”It is easy to make fun of the lunacy here. Yet it is not half as crazy as
it is a logical outgrowth of decisions made long ago.When western civilization became uncomfortable with religion, when
it became unwilling to see the world through a traditional Judeo/Christ-ian lens, when it no longer believed that there was such a thing as a soul— it was left to look for alternative explanations.
Initially the argument was that value comes from possessing intellec-tual abilities that make one a rational being — a person. It was just asmall step from this to a belief that profoundly mentally retarded people,for example, have no rights as a person. Peter Singer, a bioethics profes-sor at Princeton, has made the case that killing an infant is nowhere nearas serious a moral issue as killing an adult. Singer argues that infants sim-ply lack all the essential characteristics to be deemed “persons” — “ratio-nality, autonomy, and self-consciousness” — and as such “simply killingan infant is never equivalent to killing a person.”
Even this claim, though, is a thin reed to lean on. After all, on whatbasis do we exalt cognitive abilities? Why are these traits more important
From The Pages Of The Per i shable Pundi t
For a carrot, is there a moremortifying fate
than being peeled,chopped anddropped into
boiling water?
P R O D U C E B U S I N E S S • N O V E M B E R 2 0 0 820
www.perishablepundit.com
or valued than physical strength? This is thesoil in which the animal rights movementgrows. When initially passed, our many lawspreventing cruelty to animals were not focusedon concerns about animal well-being; theywere focused on the notion that it is dehuman-izing to be cruel to animals, and if we inure our-selves with such cruelty, surely we will be cruelto men next.
The animal rights movement changed thisaround. Animals now have rights of their ownand human beings have no right to transgressthem.
Yet, once again, this is not a distinction like-ly to hold. Why should it matter that one is an
animal as opposed to a vegetable? Why is sen-tience a morally significant factor? Aren’t wejust valuing it because we possess it?
So as night follows day, we find peoplethinking as this Swiss law reflects. Not so muchbecause sensible people actually believe thatplants have rights, but because these samesophisticated people would feel ridiculous say-ing that God ordained something else, theywould think themselves brutish if they said thathumans get to rule because humans can — ineffect they have lost the ability to defend theirown civilization.
The irony is that these exquisitely sensitiveand morally aware people will one day becrushed by barbarians who will care not a whitfor these values. There is something profoundlytroubling about a culture that so values toler-ance that it allows itself to be destroyed by theintolerant. www.perishablepundit.com
For subscriptioninformation, please go to
producebusiness.comor call us today at
561-994-1118, Ext 109
The International Business Magazine Serving the Fruit, Vegetable and Floral Industries.
To get ahead in the produce business, you need to stay ahead
of the produce business.
The irony is thatthese exquisitely
sensitive andmorally aware people will one
day be crushed by barbarians who
will care not a whit for
these values.
From The Pages Of The Per i shable Pundi t
Each year, many new items, technologies and packag-ing geared toward retail are unveiled at the FreshSummit International Convention & Exposition of theProduce Marketing Association (PMA), Newark, DE.The 59th annual convention, which was held in
Orlando, FL, Oct. 24-27, was no exception. The editors of PRODUCE BUSINESS present our choices for
noteworthy introductions that are sure to impress the retailtrade.
NEW ITEMS FOR RETAIL
Amport Foods, Minneapolis, MN, pre-sented a new “Fresh Pack” line of prod-ucts with a packed-in-the-store look. Thenew line includes dried fruit, nuts, trailmixes and organic product. The packag-ing has a new safety seal that does notrequire a plastic overwrap.
Andrew &
Williamson Sales
Co., San Diego,CA, introducedToscanella Vine
Ripe Baby Roma Tomatoes. This new vari-ety has a distinctive mini-plum shape andis a vibrant deep red color. It has a richbalanced flavor with optimal sugar-to-acidratio. Available in a 12-15 count per 10.5oz. clamshell.
Blue Creek Produce,
LLC, St. Charles, IL, intro-duced Teardrop PearTomatoes. The new shapebrings sophistication toany meal. Comes in bothyellow and red varietiesand are available year-round in 1⁄2-pint clamshells.
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New ProductsUnveiled At Fresh Summit
Once again, PMA is the place for retailers to find the new and noteworthy.
COMPILED BY JAN FIALKOW
P R O D U C E B U S I N E S S • N O V E M B E R 2 0 0 824
Boskovich Farms,Oxnard, CA, hasintroduced Cebolli-tas, barbecue onionsthat are perfectaccompaniments to
grilled foods. Cebollitas are shoots ofwhite onion, harvested young; both thebulb and green tops have a mild, sweetonion flavor. Available in 12 4-count bagsper case or 14 bunches per case.
Bossa Nova
Beverage Group,Los Angeles, CA,introduced a fullline of superfruitjuices each withits own antioxi-dant profile andnutritional value.
The five flavors are Acerola Red Peach,Acerola Mango, Mangosteen Passionfruit,Mangosteen Dragonfruit, and Goji BerryTart Cherry. The 10-ounce bottles aremade of 100 percent recyclable PET.
Brooks Tropicals, LLC, Homestead, FL,will be offering star fruit in clamshellpackaging both to help with the ripeningprocess and to protect the fruit. Theclamshell label will tell the customer howto slice and use the fruit.
Califresh Of California, LLC, Sanger,CA, introduced fresh garbanzo bean dis-play boxes to the U.S. market. Popular inHispanic and Indian markets, fresh gar-banzos are displayed in bulk as a meansto increase impulse buying. Califresh alsohas POS materials, including recipe ideasand display-box danglers to help intro-duce the product and new packaging.
Carolina Blueberry Association, Gar-land, NC, introduced two new beverages,Blueberry Cider and Muscadine Cider,packed in 25.4-ounce bottles. Both have atart-sweet fruit flavor and contain 65 per-cent fruit juice.
Chelan Fresh
Marketing,Chelan, WA, hasintroduced theGrannRoséapple. For yearsapple growershave sortedGranny Smithsfor color, sepa-rating out those
with too much blush. However, studiesshow people tasting high-blush Granniesthought they had overall better flavor andsweeter taste. Chelan Fresh chose a newname to market this fruit grown andpicked at the point of maximum flavor.
Christopher Ranch,
LLC, Gilroy, CA, intro-duced California-grown,peeled and vacuum-sealed garlic in a 6-ouncere-sealable package thatuses 80 percent lesspackaging than its 6-ounce jars. It contains noadditives or preserva-
tives, is packaged in 100 percent recycledplastic and is kosher certified.
Del Monte Foods,San Francisco, CA,introduced its Super-Fruit line of antioxi-dant, rich-in-vitamin-C 8-ounce fruit cupspacked in a blend of100 percent fruit juice.Flavors include Mixed
Fruit Chunks in Mango Passion FruitJuice; Peach Chunks in PomegranateOrange Juice; and Pear Chunks in AçaíBlackberry Juice.
Del Monte also presented its newready-to-enjoy citrus bowls that contain4.5 servings of peeled and sectioned cit-
rus (20.5 ounces) in a table-ready bowlwith a re-sealable plastic lid. The productis packed in slightly sweetened citrusjuice, and includes Red Grapefruit; Grape-fruit Duo with red and white grapefruit;and Citrus Salad with red and whitegrapefruit and oranges.
Del Monte Fresh
Produce, CoralGables, FL, intro-duced fresh-cutand packaged avo-cados in 7- and 12-ounce sizes for con-sumers who want
prepared products but don't want to sacri-fice taste. These avocados are packagedusing a high-pressure technique makingthem read-to-eat and preservative free.
Dole Fresh Vegetable Co., Monterey,CA, introduced five new Premium Babyblends salad greens packaged in 70 per-cent recycled plastic made with 50 percentsolar energy. The greens are unique,upscale, tender leaf 5-ounce blendsoffered exclusively in clamshells. Varietiesinclude Sassy Baby Blend, Baby Arugulawith Spinach, Baby Garden Blend, Baby
Bedford Industries, Inc., Worthington, MN, has added biodegradable additives toits standard twist-ties, printed tags and substrates for elastic tags. The next level willbe for the company to measure the breakdown times for its products, but for now it isbuying materials that are approved as biodegradable.
Earth Buddy Ltd., Wan Chai, Hong Kong, China, is offering Go Green — Earthbud-dy, a line of rigid packing trays made from sugar cane bi-products (bagasse) and certi-fied 100 percent bio-compostable. The line is printable, moisture- and oil-resistant,microwavable and oven-able.
Monterey Mushrooms, Watsonville, CA, has introduced a line of mushroomspackaged in new, environmentally friendly fiber till. Made from recovered paper, thetills can be composted, burned or recycled back into new tills or other paper products.
Paramount Citrus, San Diego, CA, unveiled its new packaging line made with kraftpaper, a 100 biodegradable, unbleached and natural product. The environmentallyfriendly packaging not only incorporates Paramount’s commitment to sustainability butit also reaches out to its consumers by featuring the faces of its employees in a colorfuldesign. The line also showcases its new logo, which depicts a citrus bloom inspired bynatural elements of the citrus industry, including the sun, trees, leaves and fruit.
Smurfit-Stone Corp., Chicago, IL, presented its RecyclaCorr Corrugated Containers,a fully recyclable replacement for wax-impregnated medium, which is specially formu-lated to protect products stored and distributed in cold-humid environments. It alsointroduced Meta Tray-8, a new versatile trayformer.
Waverly Plastics, Waverly, IA, introduced its new biodegradable Tug & Tote pro-duce department bag, the “green way to bag.” The Tug & Tote comes in a rack systemthat easily integrates into any produce department; one-at-a-time dispensing leavesno perforations to tear and lets customers touch only their own bag. The bags meetthe ASTM standard definition for degradable and biodegradable plastic. pb
Green Initiatives
Romaine Blend and Baby Spinach withTender Reds.
Earthbound
Farm, San JuanBautista, CA, hasadded mangoesto its dried fruitprogram andnow offers organ-ic onions, garlic,
shallots in jars and mesh bags. The com-pany is also offering washed whole leavesof Heirloom butter and Bibb lettuce inclamshells as well as Broccollette, a crossbetween Chinese kale and broccoli.
Formaggio Italian
Specialties, Hur-leyville, NY, intro-duced Just Add Let-tuce, its new line ofplastic-jarred “all-in-ones” containing theoil and ingredients
necessary to instantly make Greek, Span-ish and Italian salads. The Betta-Cheeseline includes Betta-Bleu and Betta-Fetaand can be used in a multitude of mealapplications for pasta, salads, as mush-room stuffers and on burgers and steaks.
The Garlic Com-
pany, Bakersfield,CA, has produced atruly consumer-friendly garlic clovepack. Each vacuumpouch pack has aneasy-to-open pull-tab and contains
three to four large peeled fresh garliccloves. VakPak comes in 3- or 6-pouchsizes with a refrigerated shelf life of 60days from date of production.
Global Juices & Fruits, LLC, Eagle, ID,introduced a line of Earthly Delightsready-to-drink teas. The teas are full ofantioxidants and come in white tea,pomegranate tea and green tea and arelightly sweetened with agave.
Goodness Gardens,New Hampton, NY, intro-duced Squ’eezy Fruit,squeezable fruit in a tubemade with real fruit andberries. The product is lowin added sugar and the6.5-ounce tubes are avail-able in apricot, blackberry,
mango, blueberry, peach, raspberry,
strawberry and pineapple.Great Lakes Interna-
tional Trading, Inc., Tra-verse City, MI, introducedseveral new varieties toits packaged dried fruitand nut lines. Theseinclude 8-ounce driedcranberries and 8-ounce
dried cherries, a 16-ounce stand-up bag ofpine nuts and a 32-ounce stand-up bag ofTurkish dried apricots. The larger packagesprovide retailers with a size that can be runon special to compete with club stores.
Green Giant
Fresh/ Sholl Group II,Eden Prairie, MN,offers five versionsof Patio Grillers —fresh vegetables anda butter or olive oil-based sauce in a foil
pan. Cook on the barbecue grill and servefour. Selections include Fire RoastedSalsa; a California blend of broccoli, cauli-flower, squash, zucchini and carrots; BBQblend with broccoli, red potatoes, squashand carrots; a medley of green beans andcarrots; and baby red potatoes.
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HerbThyme
Farms, Compton,CA, introduced certi-fied organic herbsand herb collections,including the PoultryBouquet, in newextended shelf-life
film and self-merchandising shipperboxes. New plastic packaging is superclear for showcasing product and includesrecipe cards. The self-merchandising ship-pers come with a thermal blanket to pro-tect during truck shipment.
Itaueira Agropecuaria S.A., Fortaleza,Ceara, Brazil, exhibited the REI Melonfrom Brazil. This new melon is just recent-ly admissible from Brazil and is beingexported for the first time. The productionfocuses on providing consistent flavor.
Los Angeles Salad
Co., City of Industry,CA, introduced freshshelled English peasin an 8-ounce and a12-ounce packagewith a 14-day shelflife. The 8-ounce pack-age is microwavable
and steam-in-the-bag ready.Mann Packing, Sali-
nas, CA, has intro-duced vegetable partyplatters, the LightBites packaged line,geared toward desk-top diners and “graz-ers,” and retail packs
of leaf singles previously offered only tothe foodservice segment.
Monterey Mush-
rooms, Watsonville,CA, introduced SunBella mushrooms, aline with 100 percentRDA of vitamin D.Mushrooms can soakup vitamin D fromlight sources just as
humans can absorb vitamin D from sun-light through their skin. Vitamin D is anessential nutrient that is available in foodonly through fortification.
Naturally Fresh, Inc.,Atlanta, GA, introducedSalad Toppings, dried andchopped fruits and nuts toadd some crunch to eventhe simplest salad. The3.5-ounce bags come inRoasted Pecan & Almond
Pieces, Roasted & Glazed Pecan Pieces,Glazed Almond & Pecan Pieces and Nuts
and Fruit Mix.NBI Juiceworks,
Orlando, FL, intro-duced Sun ShowerSuper Blends iced cof-fees, teas and lattes.The Iced Coffee,Mocha Cappuccino,Chai Tea Latte andChocolate RaspberryFrappe contain nutri-
tional fortification, are high in protein, lowin fat and contain half the carbohydrates,sugar and calories of competing juiceblends.
Oakshire Mush-
rooms, KennettSquare, PA, has intro-duced Dole brand vit-amin D-enhancedportobello mush-rooms in 6-ouncepackages of caps and
slices. The company has also expandedits stuffed portobello offerings to includeSouthwest flavored.
Ocean Mist
Farms, Castroville,CA, introduced a 2-count artichokehandle bag. Twoartichokes in agrab-and-go han-
dle bag for impulse purchases. An insert
in the bag contains information on how toprepare and cook artichoke recipes, nutri-tion facts, a UPC code and country-of-ori-gin (COOL) labeling.
The Oppenheimer Group, Coquitlam,BC, Canada, introduced the Envy apple.Full figured with intensely red skin, thisRoyal Gala/Braeburn cross has exception-al storage abilities. Initial plantings havebeen made in several countries and plansfor planting commercial volumes in theUnited States are underway. First volumesfor commercial sale are expected in 2010.
Pasco Onions Ltd.,Flower Mound, TX, nowoffers thin sliced, crisp-fried onions. These twonew kosher-certifiedonion products, oneorganic and the other allnatural, in a 3.5-ounceshaker-top container, are
packed without additives or trans fat.Packed 12 packages to the carton with afloor stand display carton pack available.Shelf life is one year when held at roomtemperature below 80° F.
Pioneer Growers,Belle Glade, FL, isoffering a 12-ouncepackage of “Sun Ker-nals,” fresh kernelcorn off the cob. Thisitem will reduce
Micky’s Minis, Millstadt, IL, introduced a Kitchen Herb Center-piece featuring fresh rosemary in the middle. Designed forcooks who enjoy using fresh herbs, the wrought iron center-piece also serves as an attractive bit of decor. The Kitchen HerbCenterpiece holds six 2-inch herb pots and one 4-inch herb potof rosemary in the middle. Assorted herbs are available in the2-inch pots including parsley, oregano and mint. The center-piece is available three per case and can be shipped DSD.
A. K. Nursery, Inc., Apopka, FL, introduced Plant PetPals —moss-filled, critter-shaped plant holders. Shown with orchidsand ivy, the embellished containers are available as puppies,hippos or bunnies. The collectible Plant PetPals measure about7 inches long by 3 inches wide by 3 inches high without theinserted orchid or ivy.
Logigraf, Trois-Rivieres, QC, Canada, introduced a new floralsignage kit to help retailers merchandise cut flowers, plantsand bouquets. The oval-shaped, floral photo sign card with anAs Advertised topper was developed for use as an insert withthe company’s line of telescopic sign holders. The photo signcard has a slot to accept a variety of pre-printed prices. pb
New Floral Items
shipping costs and the carbon footprint.Procacci Brothers
Sales Corp., Philadel-phia, PA, in conjunc-tion with Italian Rose,Riviera Beach, FL, isusing its Santa Sweetsgrape tomatoes andUglyRipe HeirloomTomatoes to manufac-
ture Fresh Organic Salsa, UglyMary Mixand Fresh Tomato Soup. The soup anddrink mix are packed in 50-ounce plasticbottles and the salsa in 16-ounce tubs.
Rainier Fruit Co., Selah, WA, intro-duced the Lady Alice, a spectacular newapple variety offering the perfect combi-nation of sweet and tart. They are slow tobrown and hold their texture well whenused for baking.
C.H. Robinson,
Co., Eden Prairie,MN, presented Fresh‘n Easy QuickSteamvegetable side dish-es (in conjunctionwith River Ranch
Fresh Foods) that can go from refrigeratorto table in less than three minutes. Withseven flavors, the product has no trans fatand between 70 to 100 calories per serv-ing. It is packaged in an easy-to-use heat‘n serve bowl with a proprietary steamcooking system. Flavors include: Alfredo,Asian Citrus, Blue Cheese, Creamy Toma-to Basil, Garlic & Butter, Sharp Cheddar,and Southwestern.
Shenandoah Growers,Harrisonburg, VA, will beexpanding its line of LivingOrganics Culinary Herbs inJanuary to include mintand Italian parsley. The lineof potted herbs is designedto sit on the windowsill orcounter and provide fresh
herbs until the leaves are gone. Data indi-cates the line does not cannibalize exist-ing cut-herb SKUs; instead it attracts itsown unique consumer.
Sundia Corporation,Oakland, CA introducedrefrigerated fresh-cutorganic fruit in a ready-to-eat, single-serve cuptopped with a foldablespork. The product is pas-teurized and film-sealed,
giving it a refrigerated shelf life of up toone year. Fruit varieties include mango,ruby grapefruit, peach and pineapplepacked in 10.75-ounce servings. In Janu-ary 2009, Sundia expects to release Sun-
dia True Fruit Lite, sweetened with Splen-da. Due next June is a True Fruit line forti-fied with specific nutrients including calci-um, omega-3 fatty acids, and vitamin A,C, E combination.
Taylor Farms, Salinas,CA, has expanded itsprepared salad line toinclude Toss Ups, sin-gle-serve salad kitsthat contain protein.All salad componentsare individually
sealed. Flavors include Santa Fe Chicken,Farmhouse (with grilled chicken), ChickenCaesar and Country Chef (with grilledchicken, ham and Cheddar cheese).
Tropical Foods,Charlotte, NC, intro-duced Spices byTropical, ChristelleBay dried fruit, nutsand assorted snackmixes, York’s Harvestcertified organic nuts,
dried fruits and snack mixes, GrabeezSnacks on the Fly in new portable, reseal-able packaging and Artisan Creations witheach nut, fruit or mix designed to impartbolder, more unique flavors.
Waymouth Farms, Inc., New Hope,MN, introduced 100 percent natural kid’ssnacks called FruitMates in Cran-AppleTwister and Lemon Landslide under itsGood Sense flagship brand. Another newproduct just released is Almond Pizazz, all-natural, seasoned and sliced almonds inHoney Roasted, Zesty Ranch, Garlic Herband Oven Roasted varieties.
Wholly Gua-
camole, Ft. Worth,TX, has addedsalsa to comple-ment its line ofguacamoles. Mild, medium andhot salsa is avail-
able in eight 12-ounce resealable tubswith lids.
Wiley’s Healthy
Southern Classics,Fairfield, CT, intro-duced Wiley’s Can-died Yams Kit. Thekit comes with 12 or20 ounces of UnitedStates Department
of Agriculture (USDA) No. 1 fresh-cutyams packed in a clamshell with Wiley’sSweet Potato & Yam Spice.
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Wilson Produce, LLC,Nogales, AZ, having pre-viously sold large clubpacks of midget multicol-ored peppers to the big-box stores, is replacing itsretail pint clamshell packwith a resealable bag forsupermarket selling.
TECHNOLOGY, TRANSPORTATION
AND MERCHANDISING
Blanc Industries,
Dover, NJ, has anew modular signsystem. Metal signholders slot into aframe base as part
of euro tables, island tables and wallcases, giving retailers flexibility in thenumber and placement of 7 x 11-inchsigns. The system makes signs easier forcustomers to find and see clearly.
Carlson Airflo
Merchandising
System, BrooklynPark, MN, intro-duced The Wave, amovable merchan-dising system forrefrigerated wall
units. The “wavy” display can be used forfruit and vegetables and is also appropri-ate for wet racks. It allows for eye-catch-ing displays that stand out from tradition-al linear displays.
Escort Data
Loggers Inc.,Buchanan, VA,introduced theiMiniPlus. EscortIntelligent Minidata loggers have
been developed for the transport indus-tries and are a low-cost solution for tem-perature monitoring problems. The iMini-Plus has internal or external sensoroptions, a large LCD display and a 2-kilo-byte memory, capable of 8,048 readings.
Hurst International, Los Angeles, CA, isnow offering Verasprint System, an on-demand, information-rich label thatallows companies to trace back to a specific farm, orchard or facility where the product was grown, processed orpackaged.
Infratab, Oxnard CA, introduced anRFID-based reader/writer that tracks,traces and monitors produce shipments,helping retailers calculate remaining shelflife. The savings realized by reducingshrinkage can easily offset the item’s $500
price tag. The company’s semi-passivetags last for about one year and sell for$15. This price includes a refundable cred-it when the tags are returned. Infratab hasstructured the tags in this manner so itcan harvest the used batteries and thusqualify as a green item in Europe.
Layer Saver, Hinsdale, IL,is manufacturing a newproduct designed to protectproduce and reduce trans-portation costs. Layer Saveris a 2-layered, collapsible,reusable pallet-shippingvessel made from recycledplastic and designed to
withstand more weight than conventionalwood or plastic. The first tier functions asa standard pallet and the second tierexpands the capacity to hold at least 25percent more product within the samefootprint as a standard pallet.
PakSense, Inc.,Boise, ID, unveiledPakSense Ultra T3, afarm-to-fork traceabil-ity solution with inte-grated temperaturemonitoring and coun-
try-of-origin labeling (COOL) capabilities.Powered by HarvestMark, Redwood City,CA, Ultra T3 gives shippers the ability totrack and trace products through the sup-ply chain while monitoring the cold chainand complying with COOL requirements.Traceability, cold chain and COOL data areuploaded and stored in a hosted data-base, accessible anywhere via a pass-word-protected Web portal.
Sabert Corp., Sayre-ville, NJ, has devel-oped the FreshpackBowl Collection, a newline of clear or blackPET round containerswith lids in 18-, 24-, 32-, and 48-ounce sizesfeaturing a smaller 6.5-
inch diameter and taller sidewall profile. Acommon lid is used for all sizes. All aredesigned for use in cold food applications.
Sambrailo Packaging, Watsonville, CA,introduced a new type of clamshell trayfor blueberries. The new clamshellenables filling at faster speeds, andimproved de-nesting lugs align with conveyor guides to prevent loss duringfilling. These lugs allow for consistentspacing and a flat base grips the convey-or. The lid has been designed so the baseof the package can fit securely into it. The new lid, while secure, still opens withrelative ease. pbR
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Building your produce business demands the best you have to offer. Long hours. Tough decisions. Making sure you get
the most for each dollar. Reaching for the competitive edge.
All reasons why your advertising should be in PRODUCE BUSINESS.
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ways to run businesses better, and searching out new business opportunities for its readers.
Quality editorial combines with a quality environment for your advertising message. Look through the pages of this issue.
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RETAIL Rx FOR THE GLOBAL ECONOMY
Strong relationships and up-to-the-minute information are key in today’s “flat” world.
BY JODEAN ROBBINS
As the international growing and trade community reacts tothe ailing U.S. economy and increasing business costs, aretailer’s best medicine may be firming relationships andgleaning information.
Effects of the higher costs of doing business and the dis-turbed U.S. economy are reaching across borders and caus-ing changes in international sourcing. “With the economy so
tied in to everything right now, it’s going to have an effect on everything else,including international supply,” says Mark Mulcahy, produce director for NewLeaf Community Markets, a 6-store chain based in Santa Cruz, CA. “It’s all relat-ed as long as we’re a global market and it’s one of the challenges a produce
buyer has to face.”“The cost of goods is very high,” states Paul Kneeland, vice president of
produce and floral for Kings Super Markets, a 36-store chain based in Parsip-pany, NJ. “Just as in domestic product, more and more [offshore produce] isgoing to Europe, the United Kingdom and Russia, which really tightens up themarket. Transportation costs, economic issues and inputs are all converging tomake it more expensive and difficult.”
The soft dollar is causing some change in supply. “The weak dollar has ledto reduced availability and increased prices during the import season,” accord-ing to John Anderson, chairman, president, CEO and majority owner of TheOppenheimer Group, based in Vancouver, BC, Canada. “This puts pressure on
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everyone in the supply chain, but it seems the con-sumer is hardest hit because there is a smallerassortment available and prices are high — at thesame time belts are tightening due to our strug-gling economy. The U.S. dollar has strengthenedrecently so there may be some relief ahead.”
In the face of lower returns, overseas exportersremain hopeful. “Exporters to the United States arefeeling a negative effect from the weak dollar andother issues,” notes Jose Luis Obregon, managingdirector of the Hass Avocado Board (HAB) inIrvine, CA. “Fortunately, demand for Hass avoca-dos is strong and transportation costs, while affect-ing producers and importers, have not had a signif-icant effect on consumer demand.”
“Based on U.S. dollar exports, many growers arereceiving 15 to 20 percent less income than theyhad in the past or expected to have,” says Peter A.Warren, special projects with Fresh King, Inc. inHomestead, FL. “Hopefully, the dollar will begin tostrengthen as we move past the elections and we’llsee some relief.”
Foreign producers are reconsidering manyaspects of their businesses. “Producers are beingforced to focus on applying more efficient produc-tion techniques and on eliminating products con-sidered risky from a production standpoint,” notesMark Greenberg, senior vice president procure-ment and COO for Fisher Capespan in Montreal,QC, Canada. “They’re being forced to find newmarkets and to exploit all possible destinations for
their fruit. They’re being forced to ensure theyunderstand the requirements of each market andto segment their exports to be certain each marketgets what it really wants in terms of product, vari-ety, quality and timing.”
GROWERS UNDER PRESSURE
The increasing cost of transportation andinputs, as well as other factors such as weather, areputting growers and shippers under greater pres-sure. “The Chilean Exporters Association, ASOEX[based in Santiago, Chile], reports exports fromChile to the United States decreased by about 10percent in 2007/08 compared to the previous sea-son,” reports Oppenheimer’s Anderson. “This dropwas driven by the strength of the euro as well as thereduction in crop due to inclement weather. Webelieve the 2008/09 season will return to more typ-ical volumes but are cognizant of the importance ofmanaging all costs involved in marketing the fruit.”
“The cost of inputs has just skyrocketed,” saysJohn Campbell-Barmmer, director of marketing atChestnut Hill Farms in Miami, FL. “The cost of get-ting product to market has gone through the roof.It’s been very difficult for producers to cover thecost increases.”
Increased costs are pushing growers either tomore efficient production and distribution or to lossof business. “Increased energy costs have increasedthe cost of production of produce in the country of
origin as well as the distribution cost in the countryof destination,” says Greenberg. “With growers
experiencing increasing costs in all aspects of theirbusiness, the price of produce will of necessityincrease — or the grower will not survive. If the mar-ket is unable or unwilling to deliver higher prices,growers will not be able to afford to ship to it.”
“We believe the2008/09 seasonwill return to more typical volumes but arecognizant of theimportance ofmanaging all costs involved in marketing the fruit.”
— John AndersonThe Oppenheimer Group
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Reader Service # 8
LGS Specialty Sales, Ltd.718-542-2200 • 800-796-2349 • Fax: 718-542-2354
www.lgssales.com
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“Countries such as New Zealand and Chile donot have the luxury of a large domestic populationto absorb production and must bear the additionalcosts,” explains Nancy Tucker, vice president ofglobal business development for the Produce Mar-keting Association (PMA) in Newark, DE. “Thispushes the need for being more efficient in allparts of their business, selling varieties that bringhigher prices and consolidating to achieve greatereconomies of scale.”
Issues in banking and certifications add to theincreasing dilemma. “International banking hasdrastically tightened lending practices, especiallyfor agricultural-based companies, which are con-sidered high risk,” according to Anderson. “Manygrowers need short-term financing to cover pro-duction costs for the season. In many countries,their credit limits have been reduced and interestrates have skyrocketed.”
“Offshore growers view the U.S. market as anincreasingly difficult country to do business in,”Anderson continues. “For example, GlobalGAPfood-safety certification is acceptable anywhere elsein the world except for North America. C-TPAT[Customs Trade Partnership Against Terrorism] com-pliance requires new security practices and placesadditional administration on growers. The pending10+2 regulations for import documentation willplace significant burden on importers and growersdue to information and submission timing require-ments. Country-of-origin labeling [COOL] and newindustry traceability requirements for case codingand record keeping are necessary and important,but add significant costs to the supply chain.”[Edi-tor’s note: 10+2 is a Department of Homeland Securityrule that requires both importers and carriers to submitadditional cargo information before cargo is loaded onU.S.-bound vessels. It describes how importers willreport 10 additional items of information on cargoshipped to the United States, while the carrier providestwo more data sets.]
NOT THE ONLY GAMEAs exporters seek greater efficiency and return,
more product is shifting to markets besides NorthAmerica. “The relative weakness of the U.S. dollarboth against the euro and against the currencies ofthe countries where products originate is having amajor effect on international sourcing,” saysGreenberg. “The relative strength of the euro hasmade European markets more attractive as a desti-nation for produce and has served to divert toEurope some volume that in the past had beenalmost automatically shipped to the United States.Of course, in the last month, the U.S. dollar hasregained much of the value it lost against the euroover the last year. It’s not clear, though, how longthis trend will continue.”
“Diversion of some product to other marketscan cause tighter supplies for us,” says Kings’ Knee-land. “It’s to the point in some cases where sellersright now don’t need the U.S. market. They canmake more money selling the same product and
shipping a shorter distance. Of course, there are alot of growers with loyalties here and they’re stillselling to the United States. Those suppliers, from avolume standpoint, are rewarded in this market.”
“Some products are more expensive because ofthe U.S. dollar opening other markets for interna-tional shippers,” says Henry Lehmann, director ofproduce procurement for Dierbergs Markets, Inc., a23-store chain based in Chesterfield, MO.
Emerging markets are destinations for someshifted product. “In recent years we have seen theemergence of relatively new markets for fresh pro-duce such as Eastern Europe and Russia,” explainsGreenberg. “Increased prosperity in these countries
has created a segment of the population demandingfresh produce and with the ability to pay for it. Foryears, fresh produce exporters have relied exclusive-ly on Europe, Asia and North America to consumeimported fresh produce. Producers now have awider array of potential destinations. This is good,although it makes procuring fruit for North Americaa little more challenging. We’re not the only game intown any more. But in the end, all of the stakehold-ers in the fresh-produce industry benefit when grow-ers are strong, and more market opportunities canonly serve to strengthen producers.”
Growing domestic markets in some producercountries are another home for product. “Farmsare under a tremendous amount of pressure andsince everything is dollar based, the weakening dol-lar hasn’t helped,” states Campbell-Barmmer. “One
“Internationaldistribution channels are notsomething to beturned on and offlike a switch butrequire years, ifnot decades, tobuild. It would bea tremendousstrategic error toabandon a majormarket because of short-termexchange-rateweaknesses.”
— Celso PaganiniPaganini Foods, LLC
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example is how in Brazil the real is very strong sothey’re probably going to send more product totheir domestic market instead of exporting it.”
However, many exporters remain committed tothe U.S. market and some are even benefitting fromthe situation. “The United States is still a very largeand strong market and thus is very attractive,” saysTucker. “For example, even though the weak U.S.dollar has made it very difficult for Europeanexporters to sell to the United States, the Italians aremaking a major push to increase their exports tothis country.”
The higher oil price actually favors importsfrom Italy to the United States, as explained byCelso Paganini, president and founder of Swedes-boro, NJ-based Paganini Foods, LLC, which marketsunder the BellaVita brand. “Because oil pricesaffect costs of domestic trucking more than oceantransportation, it can actually be cheaper to ship tothe U.S. East Coast from Italy than California,” hereports. “For example, right now a container fromItaly to New York costs around $6,500 whereasfrom California to New York it is around $8,500.”
ADAPTATIONSShippers and importers are adapting to the
new environment by searching out better trans-portation options. “Everybody’s looking for thebest deal but there are only so many containersavailable right now,” says Chestnut Hill’s Campbell-
Barmmer. “For example, more asparagus is comingby sea than was projected to come because of thecost. However, there’s not a lot you can do withpineapples from Costa Rica or melons from Hon-duras because there are only so many ways youcan get them here.”
“Some producers are engaged in looking for amore direct route to their clients with the view toeliminating what they may feel are unnecessary costsin the distribution chain,” notes Fisher Capespan’sGreenberg. “Of course, there are added costs andrisks of producers directly supplying retail customers,and exporters going this route need to be certainthey understand the calculus of it.”
The freight-cost issue definitely affects decision-making. Fresh King’s Warren explains, “Whenfreight costs account for such a high percentage ofthe sales price of the product, it definitely opensopportunities in new growing areas in an effort toreduce the cost of freight.”
Many importers are trying to eliminate theoverlap of imported products with the availabilityof domestic supplies. “This is all really tied up inthe importers’ obligation to bring in only fruitaccorded value in the market,” says Greenberg. “Itmeans focusing on understanding what yourclients need or want and not merely on what isavailable from a foreign source. While importerswere focused 10 years ago on simply bringing involume, now we are paying more attention to
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ensuring the market for the imported product willbe there when the fruit arrives.”
“Importers can help mitigate costs by achievingsustainable pricing for growers’ products and mini-mizing complexity and cost by optimizing andaligning the supply chain,” states Oppenheimer’sAnderson. “This means strong collaboration withcustomers and handling all the technicalities andadministration required. It’s also important toestablish the right mix of programs and have alter-nate sources of supply in the event of a disruptionto the supply chain.”
Despite short-term crises, serious shippers andimporters emphasize the importance of beingcommitted to the market and having options.“Importers must help growers understand theyneed to be well diversified in several markets,” saysPaganini of Paganini Foods. “International distribu-tion channels are not something to be turned onand off like a switch but require years, if notdecades, to build. It would be a tremendous strate-gic error to abandon a major market because ofshort-term exchange-rate weaknesses.”
“Certainly, we see the euro drawing fruit awayfrom North America,” adds Anderson. “However,growers do need to keep a foothold here for whenthe tide turns. At Oppenheimer, we work with ourproducers to define the sizes and varieties perform-ing best in this market, matching these with our cus-tomers’ preferences. This way, we can strive to makethe preferred fruit available while also creating a pos-itive return for the growers.”
“While it is somewhat more attractive to go toalternative markets, avocado exporters have devel-oped relationships and are in the U.S. market forthe long term,” reports HAB’s Obregon.
INFORMATION DRIVENInformation and communication are of even
greater value in volatile times. “Communicationand information from suppliers are even more
“The last thingwe want to do isbeat up a shipperwho thinks something willwork for us but inthe end it doesn’tmeet our specs.”
— Henry LehmannDierbergs Markets, Inc.
Reader Service # 84
What Really Matters…• Your customer’s satisfaction?• Reduction in shrink?• Reliability?• Knowing who has grown your product?• A true commitment to food safety?
check for yourself...www.primuslabs.com/psr/platino.aspx
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important in this environment,” says King’s Knee-land. “Now, more than ever, you really have tofocus with all your grower partners. There are waysto work together to benefit everyone. You need tobe an open book with your supplier and really relyon the relationship.”
“Good communication as far as what seasons,quality, and FOBs are going to be like is important,”says Dierbergs’ Lehmann. “The cost isn’t always asbig an issue as the cost and availability. It’s impor-tant we communicate our specs and exactly whatwe want to our shippers so we receive the qualitywe’re expecting. The last thing we want to do isbeat up a shipper who thinks something will workfor us but in the end it doesn’t meet our specs.”
Forecasts and projects are increasingly valu-able. “We’re trying to work closely together withgrowers to keep markets in balance as much as wecan,” according to Chestnut Hill’s Campbell-Barm-mer. “We’re getting better production informationand rolling forecasts.”
“I’m constantly talking to my distributors andasking them what’s going on,” reports Mulcahy ofNew Leaf. “Most produce buyers do this. You’realways trying to project as far out as you can. If Iwere trying to do an international deal right now,I’d be looking into everything I could with the cropso we know what’s going on.”
The new pressures are causing evolutionarychanges in the way international product is sold inNorth America. “The imported fresh fruit industryin the United States has been traditionally charac-terized by the free-consignment method thatworked well when the dollar was strong and therewas some scarcity of product in the market,”explains Fisher Capespan’s Greenberg. “Today,there is a lot of produce being imported and grow-ers are becoming more and more reticent aboutshipping without some indication or guarantee ofprice. More and more exporters are demandingfirm prices for products to be shipped to specificretailers on a program [scheduled] basis. Much ofthis change has been driven by the club stores thatdemand specific packaging and compliance with awell-defined set of product specifications. They’reprepared to fix a price for fruit meeting theirrequirements and this is attractive to growers whomust manage their risk carefully.”
Planning and accurate projections become evenmore important as growers and importers shift to adifferent import model. “Planning is critical to mini-mize costs, and importers are being much morespecific about the type of product [varieties/sizes]the market will take and timing of market entry andexit,” reports Oppenheimer’s Anderson. “Everypiece of the supply chain is examined to minimizecosts and improve efficiencies.”
“This new method does take away the risk ofnot knowing what the fruit will earn in the market,”according to Greenberg. “More and more premiumfruit from exporters is being used to fill these pro-grams. Many other retailers have continued to buytheir fresh produce on a week-to-week basis with
prices determined on the basis of the prevailingprice at the time they order. But if fruit exporterscontinue to favor packing to specific program-ori-ented retailers and start to decrease their shipmentsto the United States because of the high cost ofaccessing the market, these retailers could find itmore challenging to obtain the fruit they require inthe specification their clients demand.”
DIFFERENTIATIONIn the increasingly competitive environment,
exporters, importers and retailers are also lookingfor ways to differentiate their products. “NewZealand is becoming a leader in the industry formeasuring carbon footprinting and food miles anddeveloping sustainable agricultural practices,”reports PMA’s Tucker. “They are also concentratingon taste as a way to differentiate their products.”
Looking for ways to add value through market-ing is another way retailers can make rising prices abit more palatable. “With the economy the way itis, we can’t absorb all the costs so having someadditional marketing programs makes the productmore acceptable to the customers and it’s moresocially responsible,” reports Kings’ Kneeland. “OurFairTrade produce items have received a greatresponse from our customers.” [Editor’s note: Pleasesee FairTrade Growing Business for Retailers onpage 42.]
Kings has incorporated more FairTrade prod-ucts, including blueberries, bananas and pears, intoits produce department and its floral departmenthas FairTrade bouquets and stem flowers. Kroger
currently sells FairTrade coffee and reports it islooking forward to adding FairTrade produce.
“It’s important for Kroger to rise to the stan-dards set forth by our customers,” reports DorothyShaver, RD, LD/N, corporate dietitian for the 126-store Kroger Mid-Atlantic chain, based in Roanoke,VA. “We are constantly striving to fulfill their needsand desires, and FairTrade is just one more way todo this for them.”
“Everybody is looking for the niche to bring peo-ple in beyond just competitive pricing,” adds Mulc-ahy whose New Leaf Markets carry FairTrade pro-duce. “Local and FairTrade fit into this area of mar-keting but it must be tailored for each marketplace.”
As consumers feel pinched financially, commu-nicating the value of imported products becomeseven more important. “We have to do a better jobof communicating the value equation,” notesChestnut Hill’s Campbell-Barmmer. “Consumersare trading down as they feel squeezed. The indus-try needs to work together more than ever beforeto get the message out and cut as much cost out ofthe distribution system as possible.”
Retailers in an increasingly competitive envi-ronment must look to distinguish themselves evenmore by offering value, quality and variety. “Somechains will focus on quality, almost irrespective ofprice,” relates Fisher Capespan’s Greenberg. “Somewill favor value or the ability to offer good fruit atlow prices with promotional opportunities. Otherswill want something different, something theircompetitors don’t have. Importers must under-stand their clients’ specific needs and procure forthem the products most closely matching eachcustomer’s needs.”
SMALLER MARGINS,FOCUSED PROMOTION
With economic and competitive forces build-ing, retailers are urged to skinny-up margins infavor of volume. “Retailers should try to sell ascompetitively as possible,” advises Campbell-Barm-mer. “For example, it’s not a $3.99 asparagus mar-ket anymore. We need promotions on certainitems. The retailer can help by working with its sup-plier more and knowing what’s going to be goodto promote.”
“Margin is a huge point of contention,”according to Fresh King’s Warren. “Last year inasparagus, the average retail margin from thedelivered price was over 150 percent. There mustbe a way to reach the retailers’ objectives and stilloffer value to the consumer.”
Pricing is becoming more of an issue as cus-tomers pinch pennies. “Moderate pricing, com-bined with low-cost promotions such as silent sam-pling, high-impact signage and cross-merchandis-ing will benefit consumers and contribute to thebottom line,” states Oppenheimer’s Anderson.
“Margin is very important to us but at the sametime, we’re in a highly competitive market so ifwe’re advertising we have to be right on retail,” saysDierbergs' Lehmann. “Price points become a major
“With the economy the wayit is, we can’tabsorb all thecosts so havingsome additionalmarketing programs makesthe product moreacceptable to thecustomers and it’smore sociallyresponsible.”
— Paul KneelandKings Super Markets
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issue when writing an ad and planning ahead.”Tighter pricing at retail is seen as a positive for
everyone. “It’s a win-win-win,” explains ChestnutHill’s Campbell-Barmmer. “Consumers feel they’regetting a good deal in these tough times, retailersmaintain their market, and suppliers move theproduct they need to. We need to go for grossmargin dollars and not gross margin percentageright now.”
“More and more retailers are looking at EDLP[every-day-low-price] programs where they’regoing to give you their cost up front,” says Kings’Kneeland. “Similar international growers are prettycompetitively priced, so you will see one country
go after pricing against another country, for exam-ple Canada vs. Holland. Competing suppliers aremore aware of the markets, which helps the retailermake better buys.”
Focusing on value and re-evaluating promotionsis key for retail success. “Don’t bring in fruit withouta reasonable chance of selling at a reasonablevalue,” advises Fisher Capespan’s Greenberg. “Allowsome scarcity in the market to keep sales values eco-nomical or at least avoid large surpluses. This willallow for faster product movement through theimport and sales system, in turn allowing fresharrivals at the chain store depot, resulting in fresherfruit offered to customers, causing repeat purchases,
and resulting in less shrink at the retail level. All ofthis should help keep overseas producers strong,retailers profitable and consumers well-fed.”
“Everybody is re-evaluating their promotions,”says Kneeland. “You see people going back tobasics. You see less promotion on exotic items ver-sus people going back to the 79¢ apple. I thinkyou’ll see more of the basics on sale. You’re alsogoing to see higher retail on some promotionsbecause of tighter supplies.”
“We work closely together with our suppliers asfar as planning and promotions,” says Lehmann. “Weput together a calendar of events. We work closewith our partners to develop new sales and generateextra sales. We want to be on the leading edge as faras new items with international shippers.”
Analyzing location advantages and sourcingefficiencies may give some retailers substantialgains. “Retailers can look at better programming inorder to maximize economies of scale and efficien-cies in the importing process,” suggests Paganini ofPaganini Foods. “Some retailers may be better ableto understand the benefits their location offers. Forinstance, several major retailers are within 10 to 20miles from the main port in the Northeast — amain entry gate for imports from Europe. They stilldo not understand the strategic advantage of theirlocation. Wal-Mart [headquartered in Bentonville,AR], in a similar position, would have leveragedsuch an advantage.”
“The E.U. chain Metro [Cash & Carry, based inDüsseldorf, Germany] is growing its global sourc-ing operations,” reports PMA’s Tucker. “Metro is a€60 billion company with stores in 30 countriesand is opening stores in two new countries peryear, most recently in Kazakhstan and Egypt. Theyhave a global sourcing office in Hong Kong with300 employees. While much of this focuses onnon-food products, they are increasingly sourcingfresh food items.”
Knowing and collaborating with suppliers isincreasingly important. “Retailers need to makesure they know who they are doing business with,”says Warren. “The importer’s background off-shorefacilities and growers are all more important thanever to the retailer. Retailers need to work moreclosely with the import community to evaluatehow the game is being played.”
“Retailers will realize the most success if theycollaborate with their preferred suppliers becauseit’s the only way to drive costs out of the supplychain while ensuring they have consistent supply ofthe products they need,” says Anderson. “Contractprograms allow the supplier to coordinate withgrowers on varieties, packaging, logistics, achievingeconomy of scale in transportation and storage inthe most optimal manner. Retailers can conductjoint planning sessions to go over newconsumer/product trends, coordinatedemand/supply forecasts and establish an annualprogram and seasonal program for pricing and vol-ume, committing both parties working together formutual success.” pbR
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Central America consists of Belize, Guatemala,El Salvador, Honduras, Nicaragua, Costa Rica andPanama, but parts of Mexico that border Guatemalaare also sometimes included in the geographic clas-sification. According to the U.S. Department ofCommerce (USDC), Central America exported $1.6billion of edible vegetables and fruits, excluding cit-rus and melons, to the United States in 2007, up 9percent versus the previous year. Of that $1.6 bil-lon, $536 million came from Guatemala.
Moises Merida, trade commissioner, GuatemalaTrade and Investment Office, Los Angeles, CA,notes the US-Dominican Republic Free TradeAgreement (CAFTA-DR) between the United States
and Central America “has created a lot of enthusi-asm for Central American produce. Now, bothimporters and exporters have the certainty that thecurrent conditions of access and regulations willprevail and won’t be changed arbitrarily or unilater-ally by any of the parties. And a lot of business hasbeen generated by that.”
As consumers become more aware of the healthbenefits associated with incorporating fresh produceinto their daily diets, retailers are responding byadding more types of produce from Central Americainto their product mix, states Dionysios Christou,vice president marketing, Del Monte Fresh Produce,N.A., Inc., Coral Gables, FL. This is done “to meetconsumer demand regardless of the season.”
The demand for produce from Central Americahas also been increasing “as more Spanish andAsian consumers migrate into U.S. communities,”explains Mary Ostlund, marketing director, BrooksTropicals, LLC, Homestead, FL. “They want tropicalfruits and vegetables and they want it beyond man-gos. Tropical fruits and vegetables are not special-ties for these consumers — they are staples.”
Many of Del Monte’s products, such as extrasweet pineapples and bananas, can grow only intropical climates such as those found throughoutthe year in many Central American countries.“North American consumers expect to find theirfavorite produce on retail shelves regardless of thelocal growing conditions,” reports Christou. “Withsignificant offshore growing capabilities, Del Montehas the ability to supply customers and consumerspremium quality products from Central Americaon a year-round basis.”
Teagan Donovan, ethnic produce manager, Jun-gle Jim’s International Market, a single-store retail-er in Fairfield, OH, buys a variety of Central Ameri-can produce and agrees the consumer usage base isboth wide and deep. “We have a pretty broad mix ofconsumers buying produce from Central America.The range includes Indian, Middle Eastern, Hispan-ic, Asian, Caribbean and Caucasian. It’s much more
Consistent supplies of a variety of high-quali-ty produce, ideal temperate climates, easyaccess to U.S. ports, high quality-controlstandards and cost-efficient transportationhave led to an increasing number of U.S.supermarkets offering produce from CentralAmerican countries.
Demand Increasing ForCentral American ProduceConsistent supplies, reasonable prices and quality enhance appeal of Central American produce.
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than just Hispanic or Asian.”More than 50,000 consumers visit Jungle
Jim’s each week and peruse through its2,000-square-foot international produce sec-tion. The product mix from Central Americatypically includes a large assortment ofwhat might be called exotic produce, such asyuca root, malanga yautía, malanga lila,name (white Costa Rican yams), boniato(similar to sweet potatoes) and calabazasquash. The market also offers as much as24 linear feet devoted to 3-tiered displays offruit and at least as much space devoted toroot vegetables. Donovan often uses descrip-tive signs that give consumers informationabout what the product is and how to pre-pare it.
Consumers’ growing recognition of logosand brands from Central America is also dri-ving demand for Central American produce,reports Lou Kertesz, vice president, market-ing and sales, Fresh Quest, Inc., PompanoBeach, FL. For example, Fresh Quest stick-ers each of its “new generation” cantaloupeswith the Fresh Quest logo. “[It’s] our guaran-tee that our melons will consistently besweet and flavorful on purchase,” he adds.
Donovan, who has “always been happywith the quality and consistency of supply,”adds, “In addition to the supply being con-sistent, the prices stay pretty consistent.”
Dean Balzum, produce director, Kowal-ski’s Markets, a St. Paul, MN-based chainwith nine stores, characterizes the consis-tency of supply from Central America as“very good.”
Due to its many micro climates, Guate-mala offers a steady supply of products thatare only seasonally grown in the UnitedStates or other countries. Buying “good qual-ity produce, such as cherries and seedlessgrapes, at a reasonable price from CentralAmerican when they are out of season inthe United States gives us a chance to bringspring to our consumers in January andFebruary,” explains Balzum. “That’s espe-cially true in Minnesota because our win-ters are so long.”
IDEAL CL IMATEAlthough Guatemala is a small country
— about the size of Kentucky — it has awide variety of climates ranging from tropi-cal rain forests to 15-meter-plus highlands tosmall deserts. “So we can grow many, manykinds of different products very quickly,very well and throughout the entire year,”explains Merida of the Guatemala TradeOffice. “That’s why we are called The Coun-try of Eternal Spring. We can pretty muchgrow anything anytime”
Guatemala has a rainy season and thecountry has experienced high-velocity tropi-
cal storms including some that become hur-ricanes elsewhere. In 2007, when the lasttropical storm hit, it created some disrup-tion in production but because Guatemala isprotected by mountains, it was nothing sig-nificant enough to affect supply.
“There have been some hurricanes thathave skirted us,” notes Michael Warren,president, Central American Produce, Inc.,based in Pompano Beach, FL, “They haven’taffected supply.”
Guatemala’s soil is very fertile due inpart to its 32 volcanoes, including a few thatare always spewing ashes. This means thesoil can be used to quickly grow virtuallyany kind of crop without requiring manychemicals during production, Warren adds.
“The tropical climate in most CentralAmerican countries allows for excellentgrowing conditions for many consumer pro-duce favorites,” explains Del Monte’s Chris-tou. “In recent years, consumers have expect-ed these healthful favorites to be at theirlocal retail stores, no matter the season.”
Importers are also bringing in a varietyof exotic produce, including snow peas,
sugar snaps, mini carrots, broccoli florets,green beans, french beans, green peppers,herbs and flowers, full heads of broccoli,chives, Brussels sprouts and peppers. SomeCentral American suppliers are also increas-ing exports of blackberries and raspberriesas well as small-volume or low-demand veg-etables such as leeks, green onions, multi-colored peppers, cucumbers, radicchio, arti-chokes and even organic produce that untila few years ago were not available fromCentral America.
Three years ago, CAFTA-DR granted Gua-temala permission to ship certain producethat it wasn’t allowed to ship in prior years.That list includes red tomatoes, red, greenand multi-colored bell peppers, rambutanand most recently, blueberries, which willbe shipped to the United States this winter.
COST-EFF IC IENT TRANSPORTAT ION
Since Guatemala is so close to the UnitedStates and shares a border with Mexico, thecost of transporting produce into the UnitedStates is relatively low compared to trucking
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Brand Imaging
Guatemala has succeeded in creating abrand image for its coffee, and someimporters are creating brand images
for produce. Central American Produce, Inc., Pompano
Beach, FL, uses the Mayan Pride brand for itsmelons, Mayan Fresh for other products andGusto for its individually bagged radicchio.“Some consumers recognize our Mayanbrand because we’ve had it for years,” reportsMichael Warren, president. “We also featurethe Mayan brand on our Web site, in our POSinformation and in the recipes we create.”
Fresh Quest, Inc., Pompano Beach, FL, ispositioning its Fresh Quest melons, which itcharacterizes as “new generation” melons, aspremium melons with high sugar content,excellent coloring and a longer shelf life thanany other melon on the market,” explainsLou Kertesz, vice president, marketing andsales. In its marketing, Fresh Quest promisesits melons “will always be sweet and favor-able and will hold up after being sliced andrefrigerated for several days.” For the pasttwo seasons, Fresh Quest has individuallystickered all its melons.
Brooks Tropicals, LLC, Homestead, FL,applies labels with its Web site addressdirectly to its papayas, reports Mary Ostlund,marketing director. It does the same with its
cartons of star fruit. “We get a lot of trafficon our Web site because of that. Peoplewant to know more about the fruits or theyare looking for recipes or nutritional infor-mation.” Ostlund also writes a blog dis-cussing the benefits of consuming tropicalproduce as well as ways to use them.
Ayco Farms Inc., Pompano Beach, FL, hasused the logo and brand name, MiniMe, onits personal seedless watermelons for almostsix years. It also promotes the quality, tasteand nutritional value of MiniMe on its Website, according to Kenny Kodish, key accountmanager in sales and marketing.
“That kind of marketing support is veryhelpful and it will be even more helpful withthe country-of-origin labeling law (COOL) ineffect as of Sept. 30th for produce,” statesTeagan Donovan, ethnic produce manager,Jungle Jim’s International Market, based inFairfield, OH.
Kowalski’s Markets, based in St. Paul, MN,creates its own POP for displays, but DeanBalzum, produce director, is “always glad” tosee growers send informational material hecan use to describe exotic produce to con-sumers or to tell them how to prepare it.Some growers/shippers from Central Americaare providing that and Balzum expects andhopes to see the trend continue. pb
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produce from coast to coast. The time lagfrom the harvesting of produce to its arrivalat its end destination tends to vary; the pro-duce is usually transported by ship butsometimes by air.
If a retailer is receiving produce fromGuatemala’s Atlantic coast, “The time willbe shorter for the boat to arrive in Miamithan for the truck to arrive from Los Ange-les,” explains Merida of the GuatemalaTrade Office. “The cost of fuel for the shipwill be less than the fuel costs for the truck,plus there are fewer labor costs associatedwith ground transportation. That gives ourregion a clear advantage over other regionssuch as South America or Asia. Plus,because Guatemala has ports on both itsAtlantic and Pacific sides, we can ship [effi-ciently] to Miami, Los Angeles orLouisiana.”
Jungle Jim’s Donovan emphasizes thatfreight on produce coming from Californiacould cost him “$325 a pallet as opposed to$150 a pallet for produce imported fromCentral America and coming to me fromFlorida. Those types of saving add up quick.”
Kenny Kodish, key account manager insales and marketing, Ayco Farms, Inc., Pom-pano Beach, FL, stresses that escalating fuelcosts are changing the dynamic of produceprocurement. “These days, it costs too muchto ship produce from California, Arizona andMexico to the Northeast and Southeast. Thefreight is almost prohibitive, so while thefreight costs from Central America are notcheap, they are more affordable. We haveheard of trucks costing as much as $7,000 to$9,000 during this past spring and summer,coming from the West Coast to the North-east, as hard as that is to imagine. Is thatgoing to continue this winter? We think so.”
In addition, Kodish points out, theupswing in fuel costs is also causing sometrucking companies to go out of business.“As you take more trucks out of the availabletransportation dynamic, especially duringpeak demand periods [and combine it] withlimited transportation supplies, it results inhigher freight costs.”
VALUE -ADDED PRODUCTSFor the past few years, some Guatemalan
exporters have tried to add more value totheir products by creating specialty items,such as mini vegetables packaged in smalltrays, that deliver more convenience to theconsumer. All the labeling on packages com-ing to the United States is in English andsome exporters are branding their products,either on the trays or with stickers on indi-vidual items.
Almost all Central American growers,packers and shippers use high-quality pack-
ages that main-tain uniformityof the produce,notes CentralAmerican Pro-duce’s Warren.“Central Amer-ica does havean advantageon labor, sothey can makenicer retail andc o n s u m e rpacks. Toextend shelflife, many Cen-tral Americanexporters, arenow using spe-cial enhancedplastic bagsthat maintain ac o n t r o l l e denvironment to contain ripening productssuch as cantaloupe, he adds.
Ayco Farms is exploring a variety ofoptions to move products more efficientlythrough the food chain, including findingways to reconfigure boxes so more can fit ona pallet to maximize freight efficiencies.
FOOD-SAFETY STANDARDSIn recent years, product recalls of pro-
duce contaminated in the field have madefood safety a top priority for everyone in thesupply chain.
“Because of our long-standing tradition ofproducing high-quality products, consumersand retailers can be confident that whenthey purchase Del Monte, they will be get-ting the highest quality and safest produce,”states Christou. “As a vertically integratedcompany, we are able to control everythingfrom our farms in Central America to thestore. Our farming safeguards ensure thatour products meet some of the strictestguidelines for sanitary and phytosanitarymeasures in the food industry.”
Central America exporters and importersrely on “very stringent food safety regula-tions,” notes Warren. “As growers and dis-tributors, we take food safety very seriously.We had an import alert for melons recentlybut no one ever did find a direct connectionbetween the contaminated product and thegrower in Honduras. Everyone is constantlyfood testing, water testing, complying withthe certification requirements of Primus-Labs and GlobalGap as well as creating andmaintaining our own checks and balances.We all consider food safety an importantissue and we all work on improving systemsevery year. It’s a necessity.” pb
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“Per capita consumption of fresh asparagus hasincreased by more than 45 percent since 1998,”notes Priscilla Lleras, coordinator, Peruvian Aspara-gus Importers Association (PAIA), Dallas, TX. “It isanticipated to increase to 1.3 pounds per person,including foodservice, in 2008. Per capita consump-tion of asparagus in the United States has almostdoubled in the past decade alone, exceeding the rateof growth exhibited by nearly all other vegetables.”
She adds, “In 2007, the United States importedmore than 273 million pounds of fresh-marketasparagus of which Peruvian asparagus representedmore than 56 percent of the total world supply. Inthe same year, Peruvian asparagus represented 57percent of the total U.S. import value for fresh-mar-ket asparagus.”
Still, asparagus is often an impulse buy. “Aspara-gus is still fairly an impulse item except for certainholidays,” reports John Campbell-Barmmer, direc-tor of marketing, Chestnut Hill Farms, Miami, FL.“It may be on the shopping list for Thanksgiving,
Christmas and possibly Easter, butotherwise it’s an impulse, whichis why retailers need to concen-trate on merchandising it.”
Promotional techniques, suchas increasing visibility, can helpretailers sell more. “Asparagus hasshown itself to be a popular promo-tional item for retailers becauseconsumers respond well to it,”according to Matthew DeCarlo,president, Altar Produce, LLC,Calexico, CA. “There are bigincreases in demand and sales vol-ume when retailers promote.”
Not everyone shares this view.While Peruvian asparagus serves akey role in supplying asparaguswhen California, Washington and
Mexico are not growing, Leo Rolandelli, president,Jacobs, Malcolm & Burtt Co. (JMB), San Francisco,CA, says it often lacks freshness. “Our customer baseprefers asparagus from California and Mexico.
“The logistics of moving the product from Peru isvery difficult,” he continues. “By the time it’s cut,packed and shipped, no one knows how many dayshave passed since it was harvested. Time is a majorissue with Peruvian asparagus.”
Consumers should be able to find asparagus eas-ily in stores, but this isn’t always the case. “Part ofthe problem is finding asparagus when you go intoa supermarket,” Campbell-Barmmer points out.“You have to really look for it. Giving it a moreprominent display will help increase sales.”
“Placement in the store is important yet manytimes the consumer has to hunt for asparagus,”agrees Dan Borer, sales manager, Keystone FruitMarketing, Inc., a Greencastle, PA-based supplierand marketing partner of Progressive Produce Corp.,Los Angeles, CA. “Make it as visible and attractive aspossible. It’s a great product and it will sell.”
Variety and options in the asparagus display cre-ate excitement and sales. “Marketing different sizesand colors can help to increase profits,” adds DonHessel, general manager, Mission Asparagus, LLC,Oxnard, CA.
The more exposure, the greater the opportunityfor increasing sales. “You’ll always sell more if youput it in high-traffic locations,” states Rick Rutte,produce director, North State Grocery (NSG), Inc., aCottonwood, CA-based chain with 20 stores. “Evenif you just widen out the display in its normal loca-tion, you’ll see some results.”
USE CLEAR S IGNAGESignage is key to attracting consumers to aspara-
gus displays. “One of the biggest mistakes is not hav-ing a visible sign telling customers where the prod-uct is or what the price is,” notes Campbell-Barm-mer. “If consumers have to hunt for the product orguess at the price, they won’t buy it.”
“Signs that promote aggressive pricing to con-
Fresh Peruvian asparagus continues to growin popularity with consumers.
Best Ways To Sell Peruvian AsparagusAdd value to the asparagus category through exciting displays,enticing promotions and creative cross-merchandising.
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sumers are helpful,” DeCarlo notes. “Theycan really help consumers understand whenthe price being offered at a specific time isespecially attractive.”
Signs can convey a variety of usefulinformation. “Signs should educate the con-sumer,” advises Charlie Eagle, vice presidentof business development, Southern Special-ties, Inc., Pompano Beach, FL. “We try toexplain the flavor profile, growing/harvest-ing methods and recipes for white asparagusfrom Peru. You should show pictures of pre-pared dishes where possible.”
“Effective signage describes differentways to prepare asparagus and recipes,” addsNick Osmulski, sales manager, North BayProduce Co., Inc., Traverse City, MI. “Manyconsumers simply aren’t aware of all the dif-ferent usages of asparagus. Numerous times,I’ve seen someone try asparagus prepared ina way they’ve never had before and com-ment on how good it was.”
HANDLE WITH CAREThe perishable nature of asparagus
means retailers should always be consciousof how the product is handled throughoutthe chain. “Refrigeration is extremely impor-tant for asparagus at the retail level to get themost shelf life out of it,” states Osmulski.“Many retailers have very strict specifica-tions for the temperature of asparagus uponarrival to their warehouses. However, whenit gets to the store level, it’s being displayedat room temperature all day.”
“Refrigeration helps prolong the shelf lifefor both the retailer and consumer,” explainsMission’s Hessel. “Optimally, it should be at35° to 36° F and standing in water if possi-ble. Asparagus does best in high humidity.”
“Maintaining a proper cold chain is thesingle most important factor contributing tomaximizing shelf life,” reports Altar’s DeCar-lo. “Maintaining proper cold chain and max-imizing shelf life are important becausethey are directly correlated to the commer-cial value of the product. Maximizing theamount of time a product is fresh and aes-thetically appealing is logically connected todetermining how many consumers enteringa given store will decide to purchase aspara-gus. Put simply, fresh product generatesmore sales and minimizes costs associatedwith in-store shrink.”
Hydration is also important. “Dehydra-tion is a big issue with asparagus,” notesChestnut Hill’s Campbell-Barmmer. “Keep-ing the butts in water or keeping it mistedand refrigerated works against the naturaldehydration process. If it’s not going to bedisplayed in refrigeration, we recommend itbe displayed in water, like an ice tub, whichwill draw water up through the stalk and
keep the asparagus from dehydrating.” Retailers should be careful how they
hydrate and display the product. “It shouldbe displayed in the refrigerated section with-out the water misters hitting it,” according toOsmulski. “A common mistake is displayingit in the correct area but having the waterhit it all day. This causes the tips to get softand slimy throughout the day.”
OFFER VALUE -ADDED Peruvian asparagus importers are work-
ing closely with their suppliers and/or farmsto bring value-added options designed forboth retail and foodservice to market. “AsU.S. consumers increasingly look for health-ful and convenient foods, the Peruvianasparagus importers are providing customerswith various options, including convenient,economical, microwavable and ready-to-eatselections,” explains PAIA’s Lleras. “This ismaking fresh asparagus an easy-to-prepareand convenient option for U.S. households.”
“The value-added products are good in theoff-season because people are cooking more,”reports NSG’s Rutte. “Since I’m in California,consumers may not want to pay the premi-um on value-added when local is in season,but it’s a real value in the import season.”
Promoting value of the product is espe-cially pertinent to consumers. “The value-pack approach is very relevant particularlywith the economy right now,” notes Key-stone’s Borer. “Everybody is looking for
value. Asparagus is a high-value productbecause it’s very nutritional, eye appealingand extremely easy to use. It’s ready to go.”
Eagle suggests “offering a variety ofvalue-added asparagus products from Peru,such as asparagus tips, microwave bags,grilling asparagus and white asparagus.”
CROSS -MERCHANDISERetailers can cross-merchandise aspara-
gus with an array of items. “Asparagus goeswith so many items and can easily be anadd-on vegetable,” advises Campbell-Barm-mer. “It can be merchandised with any saucebeyond the typical hollandaise. Bagged sal-ads are another idea. Cross-merchandisingasparagus with other vegetables, such asbroccoli, gives you the chance to promote ahighly nutritious combination.”
Cross-merchandising asparagus “can beas simple as placing [it] near lemons, hol-landaise sauce or soup mixes,” Eagle states.“Asparagus is particularly good grilled. Placeit near other grilling vegetables and next tomeats and seafood. White asparagus workswell cross-merchandised with prosciuttoham and parmesan cheese.”
Combining products from other depart-ments provides additional solutions. “We’vedone complete meals displayed in one sec-tion with asparagus, meat, bread, cheese andwine — a one-stop meal solution,” explainsNSG's Rutte. “Especially with products suchas white asparagus, having complementary
Thinking Ahead
P lanning ahead can help with promotion and profit. “Often asparagus is flown into theUnited States with higher costs,” explains Don Hessel, general manger, MissionAsparagus, LLC, Oxnard, CA. “Planning ahead can help not only to lower costs but also
to provide more accurate delivery times. Forecasting is difficult but planning ahead can helpto meet scheduled promotion times, keep pricing down and keep the shelves accuratelyfilled helping to maximize sales and profits.”
Rick Rutte, produce director, North State Grocery (NSG), Inc., Cottonwood, CA, says,“Because of the nature of the business, you can’t plan too far out with produce, but I general-ly write ads two to three weeks out and know when [Peruvian asparagus] will be plentiful.You can go by history, too, looking at what you did in the past and how it worked. Our dis-tributor does a good job keeping us informed about availability and what’s coming up.”
Proper planning revolves around good communication. “The more perishable the product,the more important communication is,” according to Dan Borer, sales manager, KeystoneFruit Marketing, Inc., Greencastle, PA. “Staying in close contact with their suppliers will allowretailers to take advantage of changes and to be able to pass the value along to the con-sumer, resulting in success for everybody.”
The Peruvian Asparagus Importers Association (PAIA), Dallas, TX, supports retailersthrough its category-management plan outline for fresh Peruvian asparagus. “The focus inthe development and distribution of the category management-plan outline is to share infor-mation regarding the health benefits of fresh Peruvian asparagus as well as data pertainingto the trade,” notes Priscilla Lleras, coordinator. “Encompassed within the plan are statisticsidentifying market growth and trends, industry facts and informational data aiding retailers inthe marketing and promotion of Peruvian asparagus.” pb
items or a recipe help sell the product.”“One natural combination is asparagus
and steak,” says Altar’s DeCarlo. “Retailerscan utilize promotional floor stand displaysplaced strategically in meat department.”
LOOK BEYOND HOL IDAYSWhile traditional holidays move aspara-
gus, retailers can increase sales during othertimes. “Traditionally, peak production in thefield does not coincide with peak demandperiods or holidays,” explains DeCarlo.“Retail promotions can be a valuable tool tostimulate demand when consumers are notinherently looking for asparagus and espe-cially for those non-traditional asparagusmonths characterized by strong production.”
“Thanksgiving and Christmas are theobvious times to promote asparagus, butretailers also need to look at periods whenvolume is highest and prices are lowest,”agrees North Bay’s Osmulski. “This typicallyoccurs during September and October.”
The combination of volume and qualityfavors early fall promotions. “September is agreat month to promote,” advises ChestnutHill’s Campbell-Barmmer. “You’re still barbe-cuing in September and asparagus is a goodBBQ item. There’s also good promotable vol-ume and pricing at this time.”
“October is a good month for promotions
because it’s in the heart of the best qualityand supply from Peru,” reports Mission’sHessel. “While holidays are a great time topromote asparagus, pricing and logistics canbe an obstacle. Good, accurate planning isvery important during the holiday season.”
Southern Specialties’ Eagle suggests look-ing at other holidays, too. “Peruvian aspara-gus can be successfully promoted for theJewish holiday season in September, Valen-tine’s Day and Easter,” he says. “Both whiteand green asparagus can be offered.”
BE FLEX IBLE WITH PR IC INGThe more flexible a retailer can be with
pricing, the better. “If retailers can shortenthe time required to change pricing at storelevel, they can take advantage of aggressiveand temporary pricing during unforeseenproduction increases and inevitably see hugeincreases in sales of asparagus,” says DeCarlo.“Used periodically throughout the year, thisstrategy contributes to the retailer experienc-ing growth in sales. For those retailers thathave changed prices quickly, we have seenin-store promos — without any print support— quickly and efficiently create significantincreases in demand.”
JMB’s Rolandelli says Peruvian aspara-gus “is not always an easy product to mar-ket.” It is best thing to “try to get it at the
best price possible and feature it duringpeak season,” between September andDecember.
“Pricing is a very complex issue,” addsKeystone’s Borer. “Everybody’s costs on thefarming end are up, and getting moremoney for the product is a challenge foreveryone.” He suggests cultivating sales by“presenting value to the consumer and pass-ing value onto the consumer.”
Pricing and advertising don’t necessarilymean offering bargain-basement prices.“Advertising the product on a monthly promo-tion seems to work well,” reports Campbell-Barmmer. “Asparagus responds well to adsand ads don’t have to be just price driven.”
“We’re able to sell asparagus nearly year-round, but when it gets plentiful enough forad, I put it on ad, which is not necessarily atholiday time,” notes NSG’s Rutte. “It may notbe on ad for 99¢, but even a small price dis-count helps move the product.”
“Retailers probably have a good handle onthe correct strategy for their demographics,”states DeCarlo. “However, one strategy unfa-vorable for marketing asparagus is EDLP[everyday low pricing]. Asparagus productionvaries a great deal based on changes in tem-perature, age of field and many other factors.EDLP works in direct contradiction to equal-izing supply and demand of asparagus.” pb
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Today, that seed provides the companywith very flat sweet onions well into Febru-ary. After that, Bland Farms sources fromEcuador and Mexico.
“What happens is Vidalia basically runsout of its controlled-atmosphere storageonions [in September],” reports BobDebruyn, owner, Debruyn Produce Co.,Zeeland, MI. “It varies year to year. Thereis a market for flat sweet onions and Perufills that gap quite nicely. That deal willtake us around to at least the Mexican
sweet onions, which are rounds, but theyseem to fill in that little gap between Peruand when Vidalia starts back again.”
In order to close the gap between Peru-vian and domestic onions, some companiesare importing sweet onions from Chile.“Chile is just so much farther south thenPeru that the weather patterns are quitedifferent, so Chile is later and would proba-bly be somewhat similar to Vidalia season,”according to Matt Curry, president, Curryand Co., Brooks, OR.
Brian Kastick, general manager,OsoSweet Onions, San Francisco, CA, saysChile’s cool nights help drive the sugarcontent in its onions. “Plus, Chile’s rich soilproduces low pungency, very sweet andvery mild onions.”
“Peru is in harvest from August untilDecember and [into] January. Dependingon the year, Chile comes into play becausethey are harvesting into late Novemberand December and those onions get youinto March,” adds Curry. “Mexican sweetsare going then also, but some people donot like to do those and prefer to stay withChilean product until Texas comes on line.Texas then overlaps with the beginning ofthe Vidalia season.”
“Vidalia shippers tried to store theonions to stretch the season but have nothad a lot of success due to quality issues
In September, when the Vidalia season runs dry,many turn to Peru for sweet onions. DelbertBland, owner, Bland Farms, LLC, Vidalia, GA, sayshis father sent a handful of seed to Peru yearsago with a man who was visiting the country.
MerchandiseImported Onions With EaseSweet offerings from Peru, Chile and Mexico bring excellent profits when domestic supplies are unavailable.
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coincides with the inherent mechanism ofshort-day sweet onions to start bulbing. Atrue short-day sweet onion needs to begrown and harvested weekly. They are notstorage type onions. These certified sweetsmeet the expectation of customers whodemand the sweetest onions all year-round.”
PROF IT OPPORTUNIT IES“The advantage of Peru is the consistent
quality of the onion varieties of which weuse four varieties of Granex,” reports Barry
Rogers, president, Sweet Onion TradingCorp., Palm Bay, FL. “Consumers and buy-ers alike prefer a sweet-flat type. I think thiscomfort keeps sales brisk at store level.”
“The season is a good six months long,”adds John Shuman, president, Shuman Pro-duce, Inc., Reidsville, GA. “That is a tremen-dous advantage for being able to deliver con-sistent supplies. The other particularlyimportant thing is the varieties down inSouth America. We are able to grow the samevarieties in Peru that we grow in Vidalia. I
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coming out of storage,” explains WadeCarmichael, senior category manager ofproduce, Ukrop’s Super Markets, Inc., aRichmond, VA-based chain with 29 stores.“The retail customer who uses the sweetonion is a different customer than the onewho uses a yellow onion for cooking pur-poses. The sweet onion is no longer an in-and-out or seasonal item, but it has ratherbecome a staple item to the consumer.”
Bland of Bland farms believes Peruvianonions rival Vidalias. “They are fresh andthe growing conditions in South Americaare much more conducive to an onion thanthey are here in Georgia,” he states. “Theareas that we grow these onions in Peru, forexample, are places that have had about aquarter of an inch of rain in four years. As aresult, all the water that is put on them isirrigation water so you are able to waterthem exactly when you need to. You don’thave all the humidity and the disease pres-sure that you have in Georgia. The Peruvianonion will be better quality overall than theVidalia. It is a very mild sweet onion — andit only makes you cry when it is gone.”
According to Kurt Schweitzer, president,Keystone Fruit Marketing, Inc., Greencastle,PA, “The best sweet onions are grown dur-ing the spring season in a specific area. This
Onion fields in Peru have a season that lasts nearly six months.
Phot
oco
urte
syof
Shum
anPr
oduc
e,In
c.
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think everyone would agree Vidalia sweetonions created the sweet onion category, andso it is sort of the mother of all sweet onionsin terms of consumer preference and in con-sumer-brand recognition.”
“There aren’t very many products that[cause] consumers [to] tear up,” explainsCurry of Curry and Co.. “So a sweet onion isone way to mitigate that. That is why thecategory consumption has increased.”
According to Bland of Bland Farms, “Allthe onions we bring in from Peru and all ofSouth America, we bring in bulk. We re-grade and repack all of them. Some of these
the year.” Throughout the year, many of hisconsumers ask when each of the varioussweet onions will be arriving.
“[Imported onions fill in] much the sameway the imported Chilean stone fruit andgrapes have filled the gap we used to havewhen the California season ended,” explainsUkrop’s Carmichael. “Other than the firstfew weeks of new crop Vidalia shipping,weekly and ad-case movement remain rela-tively the same on the Vidalia and importedonions throughout the year.”
CHALLENGESThe vagaries of this past year’s market
and this year’s growing conditions haveaffected supplies and sizes. “What was chal-lenging this year is the onions just didn’t getready,” notes Debruyn of Debruyn Produce.“The temperatures hadn’t gone up as high asthey normally do, and they had a lot more
cloudy, foggy days. Those onions will staygreen virtually forever in those conditions.You need a little heat to cure them.”
“One thing about this year’s crop is it issignificantly lighter than last year,” continuesCurry. “Last year, there was a record amountof imported onions that came to the UnitedStates. This year, we will probably see a 25 to30 percent reduction. Nonetheless, there willstill be plenty of promotable volume forretailers. We’re going to see sizing that is notas large as it was last year.”
Shuman of Shuman Produce expects vol-umes to be enough to meet retail demand.“You’re going to see the prices higher thanlast year. One of the reasons is the overallcrop out of Peru is going to be down. That’sstrictly because the farmers in Peru hadsuch a devastating season last year. FOBs inthe United States were so low it didn’t justifya good return for them. It was one of the rea-
onions are packed in Peru. If you packedthem down there and they traveled by boatand then it was 20 days by the time youactually delivered that onion to the grocerystore, it has probably been 45 days sincethose onions were looked at by a person. Sowe definitely repack.”
Henry Lehmann, produce buyer, Dier-bergs Markets Inc., a Chesterfield, MO-based chain with 23 stores, does quite a bitof business in imported onions. “I use BlandFarms,” he says. “They have a good offshoreonion for us that fills in the gap in supply.So it gives us sweet onions 52 weeks out of
“[Imported onions fill
in] much the same
way the imported
Chilean stone fruit
and grapes have filled
the gap we used to
have when the Califor-
nia season ended.”
— Wade Carmichael,Ukrop’s
Super Markets, Inc.
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months. “We import sweet onions fromChile from January through March.”
“Sweet onions are a big part of winter-time onion retail sales,” adds Ken Nabal,vice president of sales and logistics, Fron-tera Produce, based in Edinburg, TX. “Fre-quent promotions with appealing displayscan drive incremental sales.”
Shuman of Shuman Produce recommendshaving consistent variety, shape and flavor tobuild consumer appeal. The holidays andother group-gathering events, such as theSuper Bowl, are excellent times to conductrecipe-driven and bin promotions. pb
sons the crop in Peru came off a little bit latethis year. The farmers in Peru had a toughtime getting their finances together last
spring when it was time to plant. It tookthem two, three, four weeks longer than itshould have — and I’m talking about theindustry as a whole. So the crops were agood couple of weeks behind.”
“Sourcing challenges change every sea-son,” notes Rogers of Sweet Onion Trading.“Our values and expectations are much dif-ferent from the values and expectations ofdifferent countries. Even when they arearticulated, cultural differences can causeproblems in communication.”
“We just work ahead with the shippers. Idon’t wait until the last minute to placeorders,” relates Dierbergs’ Lehmann. “Westay ahead of the game so that we haveample supplies.”
Ukrop’s Carmichael doesn’t experienceany major issues when sourcing onions.“Inspections at shipping points and at theports have improved, and the supply chainhas not been disrupted. The only issues thatcould arise are a late boat or when the ship-pers have weather-related events that cansometimes delay harvest,” which are thesame issues that affect domestic growers.“Normally, once the season starts, it goesuninterrupted until it finishes about the timewe start to ship new crop Vidalia onions.”
PROF ITAB IL ITYDebruyn of Debruyn Produce remarks
that sweet onions have moved toward pre-mium pricing.
“There’s no question they’re profitable,”states Bland of Bland Farms. “They’re goingto have a higher retail [than standardonions]. Having that higher retail meansyou are going to have a better profit margin
and gross margin as well.”“The margin for the retailer is definitely
greater when selling a sweet onion ratherthan a standard onion, and that is why yousee them featured,” explains Curry of Curry& Co. “The retail margins are great and sostores want to build more retail space forthem and do more promotions. I don’t thinkthey need to lower their prices on yellowonions — they just need to have a consis-tent, daily price.”
OsoSweet’s Kastick suggests using plentyof banners and POS materials to promotesweet onions, particularly during the winter
“We just work ahead
with the shippers.
I don’t wait until
the last minute to
place orders. We stay
ahead of the game
so that we have
ample supplies.”
— Henry LehmannDierbergs Markets, Inc.
“Entertaining and cooking at home will becomean even bigger part of the picture,” explains KarenCaplan, president, Frieda’s Inc., Los Alamitos, CA.Not only does this give retailers the opportunity tooffer consumers low prices, but it also allows retail-ers to inspire consumers with variety of ingredients
and new ways to use them, she adds. “Innovativechains, for example, are now doing this with in-store cooking classes.”
This time of year, back-to-back holidays providea variety of wintertime promotional themes.
DECEMBERCHANUKAHDec. 21-29
Celebrated by the Jewish faith, this holiday alsoknown as The Festival of Lights lasts eight days andeight nights. “It’s a time for traditional foods such aspotato pancakes — or latkes — and family gather-ings,” states Caplan.
Produce items ideal to merchandise around thisholiday “include all types of onions such as shallotsand white, gold and red pearls; potatoes such asDutch Yellow, mixed Fingerlings and Ruby Gold;and specialty vegetables such as fennel, horserad-ish, parsnips, beets and celery root,” recommendsRobert Schueller, director of public relations forMelissa’s/World Variety Produce, Inc., headquar-tered in Los Angeles, CA.
Winter MerchandisingBuild spectacular sales this holiday season with cross-merchandising, themed promotions and eye-catching displays.
B Y C A R O L B A R E U T H E R , R D
In the backdrop of a turbulent economy, some consumers areopting to take staycations or stay-at-home vacations this hol-iday and winter season, opting to entertain family andfriends in their own environs.
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Seckel pears are in-season, notes DennisJames, director of marketing, Pear BureauNorthwest (PBN), Milwaukie, OR. “Theseare small, colorful, sweet pears popular withthe Jewish community.”
CHRISTMAS Dec. 25
Christmas Day is one of the biggest foodoccasions of the year. “Christmas displaysshould be colorful, festive and filled withplenty of products,” Schueller reports.
Kings’ Specialty Mushrooms Promotion
C ooking with specialty mushrooms wasthe theme of a promotion held the weekleading up to Christmas 2007 at Kings
Super Markets, Inc., Parsippany, NJ. “We’re knownas the store that offers consumers something newand different, hence the theme ‘Expect the unex-pected,’ explains Paul Kneeland, vice president ofproduce and floral. “Our goal with this promotionwas to bring in some strange mushroom varietiesat a time when consumers were more apt to cookas well as entertain.”
Double-sized refrigerated displays up to 6-feetlong held varieties, such as lobster, maitakes,royal trumpets, and white and brown beechmushrooms. The base of the display held bulkwhile shelves above were set with packaged
mushrooms. Each variety was tagged with a labelidentifying its name and usage tips. Packageddried mushrooms were also part of the display.Some stores, room permitting, cross-merchan-dised some of the specialty mushrooms in themeat department.
Concurrent with the in-store displays, Kingsran a full-page color ad in its weekly circularabout the specialty mushroom promotion. “Inaddition to the mushrooms on ad, we includedthe non-advertised ones in the display, too, toshow off the variety Kings offers,” according toKneeland. “The displays drew lots of attentionand the purpose was to make consumers awareof what was available to intrigue them and toengage them.” pb
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Carrots are a wintertime staple, statesPhil Gruzka, vice president of marketing,Grimmway Farms, Bakersfield, CA. “Whenit gets colder, carrot sales get a natural boostbecause they are key ingredients in soupsand stews. They are also a vegetable thatadds a healthful balance to holiday party
fare. Value-added carrots continue to behuge. Our No. 1 carrot SKU [that has grown]by double-digits every year for the past fewyears is the microwave petite carrots.”
Retailers should display and promote avariety of carrot products, Gruzka recom-mends. “For example, offer a deep discount
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on popular baby carrots paired with a fewcents off another value-added item toencourage customer trial. For example, if a1-pound baby typically retails for $2.29, thendrop the price to $1.29 for promotion andco-advertise carrot chips at $1.78 or $1.89rather than $1.99.”
Wintertime is also peak season for leafygreens, especially leafy cooking greens,explains Jan Berk, vice president of salesand marketing, San Miguel Produce, Inc.,Oxnard, CA. “Spinach continues to be one ofthe most popular leafy greens among con-sumers, however, gaining in popularity arekale, chards and beet greens. These greens,like spinach, are milder in flavor and haveexcellent nutritional value, making themattractive to consumers.
“Bulk leafy cooking greens make for anattractive wet-rack display,” she continues.“Packaged greens displayed near the bulkgreens will provide consumers with a conve-nient and timesaving option when prepar-ing their holiday meal. Providing simple sig-nage that offers preparation and cookingtips helps greens to be less intimidating.This season, we will be providing holidayrecipes to help enhance sales and cross-pro-motional programs with the company’s Cut‘n Clean Greens seasoning.”
“There’s good demand for all types of pota-toes because they are an essential part ofthe traditional holiday meal.”
Red, White and Yukon Gold potatoes aregood movers for the holidays, reports TomCampbell, co-owner, Tri-Campbell Farms,Grafton, ND. “So are our mini-gourmetcreamer potatoes offered in a 28-ounce plas-tic clamshell.”
Size A Red potatoes sell best for Christ-mas, adds Steve Tweten, co-owner, NoKotaPackers, Inc., Buxton, ND. “So do Reds in 5-pound bags.”
Donald Flannery, executive director,Maine Potato Board (MPB), Presque Isle,ME, reports, “We’re historically a round,white-table market. Now, we grow Reds andGolds as well and see them all move wellfrom November right into January and Feb-ruary.”
Tight supplies caused higher prices forpotatoes this summer, slowing sales morethan usual, notes Ted Kreis, marketingdirector, Northern Plains Potato GrowersAssociation (NPPGA), East Grand Forks,MN. “With more plentiful supplies, coolerweather and holidays approaching, it’simportant for retailers to increase space andpromote potatoes again.”
However, “It’s also crucial to keep pricesat a level where producers can make a prof-it,” adds Paul Dolan, general manager, Asso-ciated Potato Growers (APG), Inc., GrandForks, ND. That means retailers aren’t goingto be able to get the same prices they got forpotatoes in the past.”
Retailers shouldn’t worry about deeplydiscounting potatoes for holiday consump-tion. “Consumers are going to buy themanyway, so a deep discount is just givingaway your margin,” advises Seth Pemsler,vice president of retail for the Idaho PotatoCommission (IPC), Eagle, ID. “It’s importantto promote potatoes to keep them top ofmind. Recipes and ways to facilitate theiruse are a great theme during the holidayssince more people tend to cook.”
Brad Brownsey, trade representative,Prince Edward Island Potato Board, Charlot-tetown, PEI, Canada, agrees, adding, “Pro-
Sweet potato sales are strong in Decem-ber, reports Matt Garber, partner, GarberFarms, Iota, LA. “We sell 35 to 40 percent ofour crop in the weeks before Thanksgiving,but Christmas is also a big sales holiday.”
George Wooten, owner and president,Wayne E. Bailey Produce Co., Chadbourn,NC, says, “We offer 10-pound boxes for theholiday. At a special rate of 89¢ to 99¢ perpound, people, especially in the South, seethis as a great gift. A great way to merchan-dise sweet potatoes is by linking them witha recipe. Include the associated ingredientsright in the display, too, for convenience.Recipes really get people thinking.”
According to Dave Moquist, co-owner,O.C. Schulz & Sons, Inc., Crystal, ND,
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mote varieties and their best uses — a pota-to is not just a potato. Add quick and easy-to-prepare tips and recipes to your ads, POSsignage and educational information con-sumers can later peruse at home.”
JANUARYNEW YEAR’S DAYJan. 1
New Year’s Day is filled with college foot-ball games, parades, special events andfood. Entertaining is the theme, explainsFrieda’s Caplan. “Pre-assembled fruit andvegetable trays are big as are the ingredientsfor consumers to make their own. Offeringentertaining party ideas is a great way toincrease produce sales.”
The New Year is also a time many con-sumers think about healthful eating, addsMelissa’s Schueller. “That means they’re try-ing to eat more produce in general.”
Available year-round, salad ingredientsalso offer retailers a chance to boost pro-duce sales around New Year’s celebrations.“In the winter, we source 65 to 70 percent ofour tomatoes out of Florida,” reports JoeComito, president, Capital City Fruit, Nor-walk, IA.
Seasonal fruits, such as pears and apples,are another draw. “Display pears withapples,” suggests Neil Galone, vice presidentof sales and marketing, Booth Ranches,LLC, Orange Cove, CA. “Consumers buyboth, and showcasing product side-by-sidemakes for eye-catching color breaks.”
The healthful, high-fiber, quick-energyattributes of pears will be the focus of a PBN2009 promotion. “We’ll be working withmedium to small chains through theirwholesalers on a promotion called InsPEA-Ration that can be customized in a variety ofways,” states James. “Basically, POS materi-als and ads will convey that pears are a greatpart of a healthful diet and exercise pro-gram. Retailers, working through theirwholesalers, can promote any pears they’dlike. For example, the Northeast likes Boscand the Midwest Green Anjou.”
In-season citrus is a seasonal, cold-fight-
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For complete rules, contact your sales representative.
THAT'S RIGHT. Calling all Produce Directors, all Produce Buyers, all Produce Man-agers, if you want a chance to go to the Super Bowl of Auto Racing all you have to do is
promote SONYA apples during the months of November and December 2008. We aregoing to have a National Display Contest and the Grand Prize Winner will win a trip
to the 2009 Daytona 500 and will meet NASCAR Star Kasey Kahne courtesy ofSONYA APPLES and the Sage Fruit Company.
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Rice Epicurean’sSuper Bowl Promotion
J ust about everything in the producedepartment can tie into snacking and par-ties, “so we have a lot of fun at Super
Bowl time and consumers get hyped,” reportsMark Luchak, director of produce and floral,Rice Epicurean Markets, a Houston, TX-basedchain with five stores. Potatoes, tomatoes, avo-cadoes, berries, dips, watermelon and pineap-ple are just a few of the produce items ties into the promotion. “We’ll also set up displaysand promote produce that ties in to the colorsof the teams that are playing, along with teamballoons,” he adds.
Talking signs accompany each promoteditem. “For example, we’ll write ‘Great for potatoskins’ on the potato sign or ‘Great for dipping’next to the berries,” Luchak reports. “The signsmake an instant connection, giving consumersimmediate ideas of how they could serve andenjoy each item.”
This past year, produce staff turned a num-ber of personal-size watermelons into single-serve boats filled with pineapple chunks,grapes, melon balls and berries. These werefeatured in store and in the promotional circu-lar. “They were such a hit. They went fast,”Luchak notes.
Rice’s Super Bowl produce promotion startstwo weeks before kick-off, “to put it in people’sminds,” he reports. “It’s a soft start, but thebiggest part of the promotion is the week lead-ing up to the game.” pb
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ing and nutrient-packed favorite during thewinter. In early 2009, Florida grapefruit andgrapefruit juice will be the focus of an inte-grated advertising and public relations cam-paign organized by the Florida Departmentof Citrus (FDOC), Lakeland, FL. “The objec-tive is to reach a young demographic andeducate them about grapefruit’s taste andnutritional attributes,” according to LeighKilleen, director of domestic marketing.“We’ll do this via print ads in publications,such as Cosmopolitan and Cooking Light, andwith a celebrity health expert that will headour head-to-toe Ruby Red Carpet campaign.The idea is to tie into the film industryawards season and show how eating grape-
fruit and drinking grapefruit juice can helpyou look and feel great.”
“Florida offers a full line of citrus,” notesDavid Mixon, senior vice president andchief marketing officer, Seald-Sweet Interna-tional, Vero Beach, FL. “In addition to stock-ing Florida navels and grapefruit throughoutthe season, retailers can take advantage ofthe availability of a variety of specialty cit-rus for in-and-out promotions. For example,Sunburst tangerines begin in late Decemberand run through the end of January andHoney tangelos are available in Februaryand March. We provide retailers with a plan-ner that helps them to plan promotions inadvance.”
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Claire Smith, public relations managerfor Sunkist Growers, Inc., Sherman Oaks,CA, agrees, adding, “Cara Cara navels, pum-melos, oroblancos, moro oranges, melogoldsand honey mandarins, for example, are allavailable during the winter.
“The best way to introduce some of theseless familiar varieties is to demo them —cut, sample and provide usage tips andrecipes,” she adds.
Group all citrus into one big eye-catchingdisplay, Smith suggests. “A big, colorful cit-rus display goes a long way toward brighten-ing up the winter gloom and stimulating
items to promote include vegetables such asginger, daikon, baby bok choy and napa cab-bage, edamame, eggroll wrappers and won-ton wrappers, tofu and fruits such as pum-melos, oroblancos and Buddha’s hand.”
Melissa’s offers a useful Chinese NewYear promotional kit to retailers. Each kitcontains shelf strips, danglers and threerecipe tear pads — one for ginger, snowpeas and bok choy.
“We carry bok choy and Napa cabbageyear-round, but we see a spike in sales forChinese New Year,” notes Jesse Perez, salesmanager, Pismo-Oceana Vegetable
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impulse purchases.”During the next five years, “Florida will
have several new citrus varieties available,”states Mixon. “These all aim to provide con-sumers with what they want: taste, flavor,easy peel and seedless.”
CHINESE NEW YEARJan. 26
The traditional Chinese New Year orLunar New Year “combines the elements ofmany American holidays into one celebra-tion,” according to Melissa’s Schueller. “Ideal
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Econo FoodsCelebrates
Chinese New Year
E cono Foods, an Iron Mountain, MI-based chain with 25 stores, hasbeen promoting Chinese New Year
for 10 years. “There aren’t many purelyproduce holidays, except perhaps Cincode Mayo, according to Jim Weber, pro-duce supervisor. “That’s why we firstdecided to do this promotion. Plus, peo-ple want to eat more healthfully at thebeginning of the year. Asian cuisine has ahealthful connotation.”
Napa cabbage, daikon, bok choy,snow peas, sprouts and ginger are amongthe 25 to 40 items each store’s producedepartment features in 8- to 12-foot dis-plays. The displays are signed with themebanners to catch consumers’ attentionand also feature a number of tear-padrecipes for consumers to take with them.
“Only one of our stores has a signifi-cant number of Asian consumers, but werun the promotion in all stores and in ourad circular,” states Weber. “It’s a greatway to draw in new consumers. In fact,we run the promotion for three weeks soconsumers can get familiar with the prod-ucts and we can get repeat sales.”
The promotion resulted in Asian cate-gory sales experiencing a lift of from 10percent during one year without promo-tions to 400 to 500 percent on someitems during the following year whenthese Asian items were highlighted. “Egg-roll wrappers and wontons experienced ahuge lift,” according to Weber. “Bok choyand Napa cabbage also got a big lift, asdid carrots.” pb
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course, guacamole, avocado and other gua-camole fixings.”
According to Jan DeLyser, vice presidentof merchandising, California Avocado Com-mission (CAC), Santa Ana, CA, “Last year,3.18 percent of the total annual retail salesof avocados took place during the SuperBowl and Cinco de Mayo was in secondplace with 2.82 percent.”
To get the most sales out of this holiday,DeLyser says, “Display a line-up of partyfavorites, such as avocados, chips, salads,soda, beer/wine and deli items, to make theselection of process quick and easy forshoppers. Start your displays and advertis-
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Exchange, Oceano, CA.
FEBRUARYSUPER BOWL SUNDAYFeb. 1
The Super Bowl is one of the most wide-ly watched sporting events in the world andthe most popular football game in the Unit-ed States. “This means a day of parties withplenty of fast and easy snack foods,” accord-ing to Schueller. “Best-selling items includesalsa and salsa ingredients, such as toma-toes, chilies and cilantro; limes for salsa andbeer; nuts for snacking; fruits, and, of
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ing of Super Bowl promotions early to max-imize sales and create impact and aware-ness with the shopper. Make sure you haveplenty of ripe avocadoes not only prior toSuper Bowl, but also on Super Bowl Sun-day. Many partygoers make half-time runsto the grocery store to purchase more soda,beer, chips and avocados.”
VALENTINE’S DAYFeb. 14
Everyone thinks of sweets for Valentine’sDay, but instead of encouraging consumersto buy candy and chocolate, retailers shouldsuggest consumers, “Serve healthful fruitsand vegetables in creative ways to showhow much you love your loved ones,” advis-es Schueller. “For example, retailers can pro-mote ingredients, such as crepes, roastedbell peppers, fresh herbs, berries and tropi-cal fruits.”
PBN will again offer its Perfect Pairssweepstakes for Valentine’s Day. The pro-motion has spiked sales of Bosc and RedAnjou pears up to over 100 percent in thetwo years PBN has run the contest in partic-ipating stores, reports James. “The sweep-stakes has a romantic Valentine’s Daytheme and asks entrants to complete theirentry form by listing items they believe pairperfectly with pears. Consumers pick upPerfect Pairs entry forms at their retailer’spear display. This in turn gets consumersfamiliar with these two varieties.”
Winners, who have their entry drawn,are eligible to receive a $200 shopping spreeor the grand prize of $3,000 cash. The pro-motion has been so successful “that manyretailers have extended it to run the wholemonth,” points out James.
POTATO LOVER’S MONTHFebruary
In February, IPC will hold its 18th annu-al Potato Lover’s Month (PLM) Retail Dis-play Contest. In 2008, PLM received nearly2,000 entries and awarded more than$150,000 in cash and merchandise prizes toretailers across the country.
“Historically, I’m told the promotion wasstarted because February was the lowestmonth of the year for potato sales,” reportsPemsler. “While we don’t have national sta-tistics to prove it, the display contest hasmade February one of the best months [forpotato sales]. Last year, for example, ourshippers saw an average 10 percent bump insales and Idaho’s share of the marketincreased 3 to 5 percent compared to otherstates during this time.”
In 2009, IPC will partner its promotion
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with Mrs. Dash and Molly McButter, bothmanufactured by Alberto-Culver Co., Mel-rose Park, IL. “PLM is adapting to the nutri-tion trends of today,” Pemsler explains.
Piggly Wiggly Promotes Potato Lover’s Month
Huge, eye-catching displays stop customersdead in their tracks in the midst of the win-ter doldrums. That’s the attitude taken by
Jeff Stewart, produce manager at the Piggly Wiggly,LLC, store in Bonifay, FL, who won first prize for hisefforts in the Boise, ID-based Idaho Potato Commis-sion’s (IPC) Potato Lover’s Month (PLM) display andad contest this past February. Piggly Wiggly is aKeene, NH-based chain with more than 600 storesand an affiliate of Keene, NH-based C&S WholesaleGrocers, Inc.
It takes four things create this kind of in-storeexcitement, reports Stewart. “The first is a theme.We used a super-hero or super-spud theme to highlight that potatoes arehealthful, nutritious and a good choice after over-eating during the holidays.”
Second, “It takes massiveness,” he adds. “The display was built on palletsfrom floor to ceiling in the middle of the department where we had moreroom. The focal point was a 2-foot by 4-foot Russet we made out of chickenwire and old store circulars turned into paper mache. We created a waterfall
of loose bakers and used 10-pound and 4-poundcello bags of Russets on either side.”
Cross-merchandising is the third importantpoint. “We ran ranch dressing and Cheez Whiz onone side and up the back of the display, and, weset up an ice bin with sour cream on the otherside,” describes Stewart. “Fresh heads of broccoliwere next to the sour cream. Dried potato flakeswere also a prominent part of the display.”
Fourth, creativity is key. “We came up with theconcept and then ordered our banner,” he states.“On it, we played on our Super Spud theme by pic-turing an Idaho Russet in a cape with the words ‘It’s
a Russet. It’s a Baker.’ We also highlighted that the potato is fat-free and cho-lesterol-free and provided the Web site for the IPC so consumers could use itto find recipes.
“The display must be shop-worthy too,” he continues. “Consumers have tobe able to reach every item easily. Sure, it’s about the wow [factor], but moreimportantly it’s about selling product.” pb
“Most folks start a new diet in January andthis is the right product for this time ofyear.” The success of PLM “is that it createsexcitement and draws consumers into the
produce department during the cold of win-ter. It’s important at the same time to edu-cate consumers about all the ways potatoescan be enjoyed.” pb
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Weis-Buy Farms, Inc.
“WE SELL FLAVOR”
Growing and Specializing in Vine-Ripe Tomatoes,
Cucumbers, Pre-Cooled PeppersSquash, Cherries and Grapes.
The Weis-Buy staff continues to build a reputation on the successof delivering quality produce to
customers at a fair price.
ONE CALL THAT'S ALL
Chuck, Mark, Arthur, David and Brian
239.433.3530Fax: 239.433.3773www.weisbuy.com
EAST COAST FLORIDA David Read at 772.562.5594
ATTENTION ALL BUYERS
USE
directories when you are ready to buy.For additional copies of this
directory or any other, please call
561-994-1118and ask for
Directory Sales DepartmentEmail: [email protected]
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Torrey Farms, Inc.
Onions, Cucumbers, Winter Squash, Pumpkins, Green & Wax Beans,
Green & Red Cabbage, Slaw Cabbage,Summer Squash & Potatoes
Phone: 585.757.9941Fax: 585.757.2528
email: [email protected]
Maltby Rd., P.O. Box 187Elba, New York 14058
CABBAGE & ONIONS
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MERCHANDISING
REVIEW
MERCHANDISING
REVIEW
Nine Ideas For Better Banana MerchandisingBoost sales of this popular produce item by expanding offerings, building creative displays and promoting beyond price.
B Y C A R O L B A R E U T H E R , R D
A 2-color program caters to consumers who want ready-to-eat bananas orbananas that will be ripe in a few days.
Some 99.7 percent of all bananassold in the United States areimported, yet this staple is Ameri-ca’s favorite fruit and a sales aregold mine for retailers.
“Bananas are available year-round,they’re a value in spite of recent priceincreases, they’re easy to eat, they come intheir own packaging, there’s no guess workto figuring out when they’re ripe and theyappeal to consumers of all ages,” extolsMark Luchak, director of produce and floralat Rice Epicurean Markets, an upscale 8-store chain based in Houston, TX. “It’s nowonder they’re so popular and such a profitcenter. I expect they’ll stay this way in thefuture, too.”
Bananas are indeed a lucrative category.In 2007, they contributed 5.4 percent of totalproduce department sales, according to sta-tistics supplied by The Perishables GroupInc., West Dundee, IL.
1 . KEEP CAVENDISH K INGThe regular yellow-skinned or Cavendish
banana “is No. 1 and will always be No. 1,”reports Paul Kneeland, vice president ofproduce and floral, Kings Super MarketsInc., a 25-store chain based in Parsippany,NJ. “This variety is synonymous withbanana, much as navel is with orange.”
“Given today’s lifestyle trends, all vari-eties of bananas show an increase in con-sumption, but the Cavendish maintains theNo. 1 spot, controlling 90-plus percent of allbanana sales,” states Dionysios Christou,vice president of marketing, Del MonteFresh Produce N.A., Inc., Coral Gables, FL.
2 . OFFER R IPE BANANASThe single most important factor to guar-
antee maximum banana sales “is having ripe
— meaning the right color — bananas on theshelf at all times,” advises Craig Stephen,vice president and general manager, Chiqui-ta Brands International, Inc., Cincinnati,OH. “In a single color program, this means acolor 4 or 5. This is the nearly ready-to-eatstage consumers look for. A common retailmistake is to put out green bananas, a color3, for example, with the idea of preventingshrink. In the consumers’ mind, however,the green color means not yet ripe andmany will walk away without buying.”
A 2-color program — offering both ripeand unripe bananas — can be difficult toexecute consistently, but it’s worth it,according to Jim Weber, produce supervisorfor Econo Foods, a 6-store chain based in IronMountain, MI. “If you don’t offer both —
meaning bananas ready-to-eat in a day ortwo as well as those ready to eat in a coupleof days — then it’s telling the consumerthey have to come back. If they don’t, thenyou’ve potentially lost half of your sales.”
A 2-color program “varies according tothe market, but a general rule is to offer 60percent ripe and 40 percent green or color3,” notes Marion Tabard, marketing directorfor the Turbana Corp., Miami, FL.
For display purposes, “The productshould be separated by ripeness stage tofacilitate different consumer choices,”reports Christou.
Executing a 1- or 2-color program opti-mally boils down to having the right ripen-ing protocol in place. Smaller chains tend tooutsource ripening to a wholesaler. “We
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For example, according to data from The Per-ishables Group, consumers in the Eastern andCentral states consume the most bananas,while sales volumes are lowest in the South.However, consumers in the South are thelargest purchasers of specialty bananas (4.7percent of category sales versus the nationalaverage of 2.7 percent), while stores in thecentral states see the lowest level of specialtybanana purchases (0.8 percent).
Bagged bananas are another regionalpreference. “Historically, the Northeast hasalways been a bagged banana market,”explains Bill Sheridan, vice president ofsales and marketing, Banacol MarketingCorp., Coral Gables, FL. “The thought is thatthe bag protects the fruit from rubbing andscarring in the box during transit. Also, thatit protects the bananas from chill damage incold weather.”
Turbana’s Tabard adds, “Bagged bananasare also popular in certain formats such asclub stores. The advantage is that you sellone unit per shopper and it reduces shrinkat store level.”
Chiquita is looking at two new packaginginnovations. “Some convenience stores havestarted merchandising single bananas as agrab-and-go snack for up to $1 apiece,”explains Stephen. “The problem historicallyhas been that relatively infrequent deliveryand low sales volume to this channel havecreated problems with shrink. As a result,we have introduced proprietary technologythat creates shelf-life extension. This wouldadd incremental sales and have applicationsin traditional retail formats such as mer-
chandising bananas at the check-out.”Chiquita is planning to re-introduce its
Chiquita Minis in a clamshell pack. Theclamshell would provide a platform for mes-saging such as branding, nutrition and otherserving suggestions.
4 . BU ILD MULT IPLE D ISPLAYS
Some retailers position bananas at thefront of the department to attract con-sumers. “Consumer research continuallyemphasizes the importance of great producedepartments as the primary criterion forselecting a supermarket to shop and oftenthe produce department is judged by itsbanana display,” explains William Goldfield,communications manager, Dole Fresh FruitCo., Westlake Village, CA. “It’s important,therefore, for the display to be bountifulwith quality fruit. A sparse display sends thewrong message. In difficult economic peri-ods, consumers will become even pickierabout quality to ensure the maximum valueis derived from their fresh produce purchas-es. If consumers find an item visually unap-pealing or otherwise impaired, the item willremain on the shelf.”
Other retailers position their banana dis-plays toward the back of the department topull consumers in and through. “Our bananadisplays are two-thirds of the way back inthe department, near the potatoes andonions,” reports Econo Foods’ Weber. “Weleave the front of the department for season-al items and bananas aren’t seasonal.” Con-ventional and organic Cavendish are pre-
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Looking Ahead
R etailers and suppliers are confident the banana category will continue to holdthe top revenue-producing spot in the produce department. “We’ve seen anincrease in both tonnage and sales during the past year in spite of supply
issues this summer,” explains Paul Kneeland, vice president of produce and floral,Kings Super Markets Inc., Parsippany, NJ. “The cost of bananas has risen, true, but sohas the price of nearly all items in the produce department. In spite of the rising tideof all items, I think bananas will still stay No. 1.”
The future of the banana looks good “as it continues to be one of the best valuesin the produce department,” reports Dionysios Christou, vice president of marketing,Del Monte Fresh Produce N.A., Inc., Coral Gables, FL. “In the coming years, however,suppliers and retailers will have to increase their merchandising efforts by creatingeye-catching displays and appealing marketing campaigns as competition from otherproducts is expected to grow. As companies continue to source produce from otherregions, there is a greater variety of products available year-round. In the past threeyears, seasons for stone fruit, citrus and melons have been extended as availabilityfrom other global growing regions becomes available.”
Retailers should not view these challenges as insurmountable because theunique characteristics of the banana draw many different types of consumers, Chris-tou adds. pb
have 5-day-a-week delivery from our whole-saler,” notes Kneeland. “On the weekend,they turn down the ripening. The end resultis a consistent color for our consumersseven days a week.”
Rice Epicurean gets banana deliveriesevery other day. “Occasionally, we’ll see aspike in sales and have to ripen ourselves inthe back room, but that’s not often. We havepretty good forecasting and a dependablesupply schedule from our wholesaler,”according to Luchak.
Many large retail chains ripen bananasand other produce items, such as avocados,in their own distribution centers. DavidByrne, vice president of sales, Thermal Tech-nologies, Inc., Blythewood, SC, says, “Thegeneral rule of thumb is that if you’re sellingthree loads of bananas a week, there can bea benefit to ripening yourself. That’s becauseyou need a minimum of three ripeningrooms to provide flexibility and optimallycontrol color. The same color or ripeness willship two days from one room, before youneed to move to a different room.”
While there are no new technologieswith regards to banana ripening, Byrne saysrefinements in the current process over thepast five to six years have allowed a greaterconsistency of color. “More attention now isbeing paid to controlling the temperature ofthe banana itself instead of the air space inthe room. The temperature of the banana isthe most accurate barometer of how fast orslow it will ripen. For example, a color 4 at58° F may last four days or only 21⁄2 days ifthe pulp temperature is 62° F. Greater con-trol over ripening means greater controlover color and ultimately sales.”
Ironically, offering a ripeness level thatwill maximize sales and minimize shrinkoften drills down to the last 50-feet of thebananas’ 2,000-plus-mile trip from the trop-ics — that is, conditions from the retail back-room to display. “There’s a wide range oftemperature conditions in the backroom,”explains Byrne. “A color 4 banana sent to 100different stores can have 100 different out-comes on the shelf and ultimately in theconsumer’s kitchen.”
Thermal Technologies offers a single-pal-let fruit conditioner designed to storebananas in the back room at the ideal tem-perature of 58° F. “It eliminates the need forupcapping, cross-stacking and sorting,”Byrne adds. “These are backroom best prac-tices that can often damage fruit.”
3 . RECOGNIZE REGIONAL TRENDS
Consumers’ preferences for bananas aregenerally uniform across the nation. Howev-er, retailers can capitalize on niche nuances.
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sented side-by-side on displays a minimumof eight feet wide, adds Weber.
“Organic bananas are best merchandisedaccording to the philosophy of the retailer,”notes Stephen. “For example, a chain whoseconsumers shop there because of its organicdepartment should have organic bananasmerchandised in that area. On the otherhand, a chain that isn’t particularly knownfor its organics should merchandise organicbananas next to conventional with theappropriate barriers for integrity so that con-sumers can see all of their choices at once.”
“We integrate specialty bananas, such as
reds and babies, into the main banana dis-play and use these as color and size breaks,”explains Kings’ Kneeland.
Another way to merchandise specialtybananas “is on end caps or to the left orright of the main banana display,” recom-mends Robert Schueller, director of publicrelations, Melissa’s/World Variety Produce,Inc., Los Angeles, CA. “This way, consumerscan clearly see and be enticed to try thesehigher-margin items.”
Big displays, or an average of 30 squarefeet, should attract more consumers, advisesDel Monte’s Christou, “However, demo-
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graphics and store size should be carefullyanalyzed in order to avoid shrink.”
Often, not enough space is devoted to thisNo. 1 selling fruit, adds Chiquita’s Stephen.“The right size shelf space,” he says, “accom-modates the amount of bananas displayed ina single layer — so they don’t bruise fromstacking — that will turn over in five toseven hours. Longer than this and the dis-play appearance suffers.”
Luchak makes sure bananas are dis-played at Rice Epicurean in multiple spotsthroughout the stores. “Our primary displayis an average 6-foot by 8-foot in the producedepartment. We also have a banana tree dis-play in the cereal aisle and in the deli nextto the sandwiches and prepared meals. Thislast spot has been really productive for us.”
5 . MARKET DEMOGRAPHICALLY
Kids, seniors and ethnic shoppers are allniche consumer groups for bananas. Minibananas “show good interest by kids andparents buying for kids,” notes Kneeland.
“We position our Chiquita Minis as a nat-urally smaller variety of bananas for when alittle is exactly enough,” adds Stephen. “Thatfits with kids. It also resonates with seniorsand anyone else with a smaller appetite.”
The colors, unique tastes and interestingsizes of specialty bananas, such as red andbaby bananas, “are appealing to kids andoffer tremendous opportunities to increaseconsumption among younger consumers,”reports Christou. “Adults and seniors aremore interested in nutritional facts, conve-nience and pricing, so it is important toinclude this information when communicat-ing with these groups.”
Plantains “are the No. 1 specialty bananawith Latin customers,” notes Schueller.
Diversification is important, stresses Tur-bana’s Tabard. “By diversifying the offering,retailers can expand the category and meetthe needs of different shoppers. For example,offering conventional bananas, organicbananas, Fair Trade Certified bananas, aswell as the exotic varieties such as babies,reds and manzanos. This has been a success-ful strategy in several European countries.”
6 . CREAT IVELY CROSS -MERCHANDISE
Cross-merchandising bananas with icecream and sampling the two “are effectivesales boosters for both products,” suggestsKing’s Kneeland.
According to Christou, “By cross-mer-chandising, retailers have the opportunity toincrease banana sales and sales of relatedproducts. Ideas include pairing bananaswith ice cream, strawberries, other tropical
fruit, cereal, salads, chocolate dips andpeanut butter. It can be especially beneficialto pair bananas with other fruits for smooth-ie purposes, as they are a big part of thehealthful lifestyle trend. Cross-merchandis-ing ripe and green plantains with cheesesand other typical Hispanic foods, such asguacamole or rice and beans, can also cre-ate additional sales opportunities.”
7 . OFFER ORGANICOrganic bananas are becoming a “huge
part of the category,” according to Knee-land. “They’re providing a good boost to cat-egory sales.”
Even when organic bananas aren’t set-ting category sales on fire, they are trendingto be must-haves in many produce depart-ments. “Organic Cavendish bananas are ayear-round SKU in our stores,” Luchak adds.“It’s not that they’re a big part of banana cat-egory sales, but they are incremental andthey are our No. 1 selling fruit in organics.”
Weber of Econo Foods reports, “We carryorganic bananas as well as conventionalbecause we feel it’s important to give our cus-tomers’ that choice.”
Organic banana sales currently representabout 2.5 percent of the category, accordingto Chiquita’s Stephen. “There’s been stronggrowth in the past year and in the past cou-ple of years in organic bananas. We expect
this to continue and organic bananas togrow to represent 7 to 10 percent of catego-ry sales in the next five years.”
On the other hand, “Organic sales couldbe adversely affected by cost structure andthe slowing economy,” says Tabard.
“In the future, we may look at offeringChiquita Minis and plantains as organic,”Stephen notes. “But currently, we’re focus-ing on an organic Cavendish since this vari-ety represents the largest segment of thecategory.”
8 . GA IN INCREMENTALSALES WITH SPEC IALT IES
Beyond Cavendish and organic, otherspecialty banana varieties are popular withconsumers at Kings, notes Kneeland. “Thissummer, we brought in the ice cream orHawaiian apple bananas and positionedthem as unique to our stores. We provideddescriptive information and flavor profileand made consumers feel a real emotionalattachment. As a result, we sold out.”
At Rice Epicurean, plantains, redbananas and manzanos are merchandisedas in-and-out items, says Luchak. “We’llbring them in individually for a few weeksat a time and then bring them back whenconsumers start asking for them. This way,it builds excitement and anticipation, andconsumers will buy in case they’re not in
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store the next week.”Specialty banana dollars accounted for
2.7 percent of category sales in 2007, accord-ing to data from The Perishables Group.
“Consumers are becoming more aware ofthe exotic varieties, such as reds, manzanosand plantains and they continue to do well,especially in regions of the country whereHispanic and Caribbean nationalities areprevalent,” reports Christou.
Education is especially important to gar-nering and growing sales of specialtybananas, explains Schueller. “Let consumersknow the story behind the variety. Forexample, the Hawaiian apple banana isgrown on the slopes of Hawaii’s most activevolcano, Kilauea. They are smaller andsweeter than the Cavendish variety.
“Tell consumers about the flavor of eachspecialty banana, its optimal ripeness, tex-ture, nutritional attributes and how best toenjoy, he adds. “This can be done via sig-nage, ad circulars, demos and other commu-nication channels that reach consumers.”
9 . PROMOTE BEYOND PR ICERetailers are promoting bananas less as
the price per pound has risen. “We used topromote two to three times a year,” notesEcono Food’s Weber. “In fact we just putbananas on ad for 38¢ per pound, which ishot since prices have risen to anywherefrom 65¢ to 69¢ per pound after years ofbeing 39¢ to 49¢ per pound.”
Bananas have indeed experienced theirfirst major price increase in years. Accord-ing to The Perishables Group, banana pricesjumped from 53¢ per pound in the fourthquarter of 2007 to 57¢ in the first quarter of2008 and then 64¢ in the second quarter.
Kings didn’t promote Cavendish bananasthis past year, states Kneeland. “We onlypromote the unique items because we foundpromoting regular bananas didn’t reallyboost sales. Sales went right back down tobaseline the week after the ad. Advertisingspecialty bananas is beneficial because con-sumers aren’t as familiar with them.”
Price doesn’t always have to be the pro-motion’s focal point, notes Stephen. “Forexample, a promotion can take place arounda seasonal event such as back-to-school, orretailers can promote bananas’ unique char-acteristics such as their high potassium con-tent or other lesser known benefits.”
Christou concurs and adds, “We offerdemo kits, recipe cards and cross-promo-tions with other fresh produce items. Theuse of POS materials, such as healthfullifestyle display cards that show nutritionalvalue and benefits, recipe cards, inflatablebananas or other props, can also attract theattention of consumers.” pb
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Six Tips For Merchandising Citrus Year-RoundFind new ways to attract consumers with plentiful displays, usage ideas and effective sampling.
B Y J U L I E C O O K R A M I R E Z
Retailers feel the challenge of merchandising quality citrus throughout the year.
Fruit grown in warm, sunny cli-mates has traditionally been in sea-son only during the coldest monthsof the year in most of the UnitedStates. On the one hand, this seems
appropriate because citrus is associated withgood health, giving it extra appeal duringcold and flu season. On the other hand, theinability to acquire what might be termed“sunshine fruit” during the warm summermonths just never seemed right.
In recent years, that has all changed, ascitrus imports have arrived on U.S. shoreswith increasing frequency — and betterquality fruit — boosting consumer interestin a year-round citrus market. “The qualityof the imports is really starting to rival whatwe’ve been accustomed to seeing just in thewinter,” explains Vince Mastromauro, pro-duce and floral director, Sunset Foods, aHighland Park, IL-based chain with fourstores. “With the advent of different vari-eties being shipped out abroad, it brings alot of interest here in the warmer months.”
Consumers are growing accustomed toyear-round availability as a number of retail-ers report increased citrus sales during whatwould previously have been considered theoff-season. “Normally, once the navelorange crop withers away, people aren’t asinterested in citrus, but for some reason,I’ve seen more year-round interest this yearthan ever before,” notes Karen Seitter, pro-duce manager, Seitter’s Market, a single-store operation in New Haven, MO.
This trend gives retailers both a chal-lenge and an opportunity — to merchandisecitrus 12 months a year rather than merelythree or four. “Retailers need to look at cit-rus as more of a year-round item,” statesLuke Sears, president, LGS Specialty Sales,Ltd., Bronx, NY. “There are going to be
opportunities for them to promote duringtime periods when they haven’t in the past,which means they are going to have to keeptrack of the different varieties and keeptheir promotions in line with what the sup-ply is.”
Florida’s fresh citrus season began inOctober, reports Karen Bennett Mathis, pub-lic relations director, Florida Department ofCitrus (FDC), Lakeland, FL. “Exact dates ofavailability vary each season due to weatherconditions,” she notes. “Most Florida citrusvarieties are readily available from Decem-ber through March.”
To best merchandise and promote citrusyear-round, retailers must flex their creativemuscle and find new ways to pique con-sumer interest in citrus. Techniques includeexposing consumers to new varieties provid-ing serving suggestions, offering differentpurchasing options and making sure theappropriate amount of space is being allo-
cated to the product.
1 . KNOW YOUR CUSTOMERSAbove all else, demographics should dic-
tate any retailer’s approach to merchandisingcitrus. By taking into consideration themake-up of their customer base, retailers canbest determine not only which varieties ofcitrus to stock but also how much citrus tostock and how to display it. Fortunately, thisproposition is not as difficult as it firstappears because the groundwork has alreadybeen laid. “Retailers know their neighbor-hoods,” reports Paula Fouchek, marketingdirector, Edinburg Citrus Association (ECA),Edinburg, TX. “They know the people whoare coming into their stores and whateverethnic area they are in.”
Upscale neighborhoods, such as that sur-rounding Sunset Foods, are highly prized,according to Mastromauro. This has led himto seek out fruit, such as the Heirloom Navel,
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which he describes as “the most outstandingcitrus orange you could ever find.”
Sunset’s Mastromauro knows his cus-tomer base very well and understands thatprice is not an issue, particularly with aprized piece of fruit. “With somethingunique like that, there is a price tag attachedto it, but it doesn’t matter when they knowthey are getting a good fruitthat is by far the best.”
Stores located in higher-income areas are also morelikely to experience demandfor organic citrus than retail-ers in low-income areas,explains Jim Marderosian,president, Bee Sweet Citrus,Fowler, CA. If a retailer in alow-income area stocks asignificant amount of organ-ic produce, the chances of it not selling androtting are high.
Darrell Genthner, director of marketingand business development, Noble WorldwideFlorida Citrus Sales, Winter Haven, FL,breaks down the citrus category into fourcustomer segments: bargain, traditional,quality and gourmet trending. He suggestsretailers use that information to “create theright value propositions for the right slots.”Retailers serving consumers who fall into thebargain segment must stock the lowest-priced citrus, period. No other factors comeinto play. Conversely, those serving quality-segment consumers need to ensure theyhave the cleanest, best-looking fruit possible.
Retailers should also consider the ageand ethnicity of consumers. Stores thatcount many families among their shoppersmay wish to increase their stock of Man-darin oranges, particularly at back-to-school
time. Because they are easy to peel andseedless, Mandarins make a convenientlunchbox item, according to RobertSchueller, director of public relations, Melis-sa’s/World Variety Produce, Inc., Los Ange-les, CA.
Paramount Citrus Association, Delano,CA, updated its logo and packaging as a
means of reaching out toconsumers and providingthem with a modern, pre-cise representation of thecitrus leader, notes DavidKrause, president. Theupdated, environmentallyfriendly packaging is com-posed of kraft paper, a 100-percent biodegradable,unbleached, natural prod-uct. It also showcases the
faces of Paramount Citrus employees —growers, packinghouse workers, customerservice representatives and their children.“Paramount Citrus takes the environmentand sustainability very seriously and incor-porates it into business practices, includingour packaging,” he explains. “We wanted toget closer to our customers and their cus-tomers. To do this we asked ourselves, ‘Howcan we get closer to our customers?’ This iswhat we came up with.”
LGS’ Sears says retailers may wish tostock citrus with popular cartoon charactersdepicted on the packaging. “Maybe that willforce the hand of a mom who’s in betweentwo kinds of citrus when the kid wants theDora [the Explorer] bag.”
At the other end of the spectrum, olderconsumers tend to eat more grapefruit, lead-ing retailers in neighborhoods with an olderpopulation to stock more grapefruit.
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Partner In Promoting
T he verdict may still be out on the ability of recipes to boost citrus sales, but a numberof suppliers and retailers testify to the value of cross-promoting citrus with comple-mentary products. Claire Smith, director of corporate communications, Sunkist Grow-
ers, Inc., Sherman Oaks, CA, suggests placing lemons with tea or bottled water.Robert Schueller, director of public relations, Melissa’s/World Variety Produce, Inc., Los
Angeles, CA, recommends merchandising key limes with salsa ingredients or with beer, par-ticularly around Super Bowl time.
At Sunset Foods, Highland Park, IL, produce and floral director Vince Mastromauro con-ducted a successful cross-merchandising program last Thanksgiving, pairing Mandarinoranges with Fresh Express Spring Mix bagged salads.
Darrell Genthner, director of marketing and business development, Noble WorldwideFlorida Citrus Sales, Winter Haven, FL, says retailers should be choosy when selecting itemsto merchandise alongside citrus and thinks placing juicers near juice oranges would be awise move. “Cross-promotions are only good if they entice customers to buy or help themmake better use of your products.” pb
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When it comes to ethnic differences,Asian consumers are more likely to demandkumquats while Latinos prefer Mexicansweet limes, adds Schueller.
2 . DES IGNATE SPACE WISELY
Space is at a premium in produce depart-ments. The fight for shelf space is one ofretailers’ most-discussed frustrations. Whenit comes to determining the optimumamount of space to allocate to citrus, suppli-
ers recommend “the more, the better,” whileretailers may say “not so fast.”
With a growing year-round interest in cit-rus, however, retailers may have to makeroom for more citrus. How they determinehow much room to designate and for whatproducts “depends on how good the price isand if it’s in the ad,” states Donna Sage, pro-duce manager, Klein’s Family Markets, anAberdeen, MD-based chain with eightstores. “If it’s on the front page of the ad,however, you’ll want a massive display.”
Sunset Foods allocates space based ontop sellers. “You look at what your moversare in the citrus category,” reports Mastro-mauro. “You want to promote them and givethem a fair amount of space on your sets.”He typically dedicates 12- to 16-foot sets tocitrus in demand. He takes a somewhat dif-ferent approach than some retailers, mixingcitrus in with other winter fruits to create acolorful end cap. “We try and break it upwith color because that’s how you sell pro-duce,” he adds.
Remember there isn’t a one-size-fits-allanswer when it comes to allocating space,advises LGS’ Sears. He argues space designa-tions vary during different times of the year
based on what’s available. “I don’t think youcan put a number of square footage on itbecause every year is different. A good retail-er is going to expand or decrease its displaysbased on the supply situation and what kindof margins it can make on a product.”
3 . RETHINK BRAND ALLEGIANCE
While there are a number of nationalbrands in the category, citrus is largely acommodity. That leads to the question ofbrand loyalty and whether brand name real-ly matters. The general consensus seems to
be that it doesn’t. Most consumers base theirpurchases on how the product looks, not onthe name on the bag or the sticker. “Peopleare less sensitive to brand when they walkinto the store now,” says Bee Sweet’sMarderosian. “They buy with their eyes. Ifthe appearance is good and it tastes goodwhen they get it home, they are more likelyto come back.”
Seitter of Seitter’s Market agrees, adding,“As long as it looks good and has nice color,that’s what people buy.”
“People just want quality,” says Sage. “Itdoesn’t matter if it’s a cheaper brand as long
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— Vince MastromauroSunset Food
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their effectiveness. “Who are you targetingwith recipe cards?” asks Genthner. “It’s cer-tainly not the bargain consumer. It’s eithergoing to be the quality or the gourmet trend-ing consumers and they’re probably alreadybuying the product, so it’s not bringing any-body new to the category.”
Towell disagrees, stating that providingrecipes is not about bringing new users tothe category but giving them new ways touse the products they are already buying.
6 . ENCOURAGE TR IALSampling is a highly effective tool for
merchandising citrus. Both Klein’s and Sun-set regularly hold sampling events for citrus.Likewise, Seitter’s puts out citrus sampleson Thursdays, Fridays and Saturdays.“When they say sampling sells, it reallysells,” stresses Seitter.
Claire Smith, director of corporate com-munications, Sunkist Growers, Inc., Sher-man Oaks, CA, says sampling helps exposeconsumers to varieties of citrus they hadn’tpreviously experienced. She points to bloodoranges as an example. “If people cut open ablood orange and see purple on the inside,they may not know how to react, but ifthey’ve sampled it and tasted it, it becomesa product they are familiar with and knowhow to use.”
Finch suggests retailers practice visualsampling as a means to boost citrus sales. “Alot of retailers will cut a tangerine in half,cover it and place it in the display case. It’s ablemish-free technique and it’s a great wayto show off the good-eating quality of Flori-da citrus.”
FDC’s Web site offers several techniquesfor cutting fresh citrus for easy samplingand snacking, reports Mathis.
Sampling events can also be used as edu-
cational opportunities. For example,Fouchek suggests teaching consumers theproper way to section grapefruit. Just hav-ing cut citrus on display can be helpful, shesays. “When our Texas grapefruit is outthere, it has a beautiful orange-red color onthe outside, but when you cut the fruit, it’sthe beautiful deep red interior that initiatesthe sale.” Allowing consumers to see thebeauty contained within the fruit can alsohelp mitigate concerns over wind scars,which are common to coastal fruit. “Whenyou cut the fruit, you show the consumerthat those scars are only on the peel andthey don’t affect the quality on the inside.”
As retailers work to meet the challengeof merchandising citrus year-round, it’simportant to remember that the same tech-niques won’t always work for every store.Merchandising decisions must be based on astore’s specific factors, whether demograph-ic, spatial or otherwise. Much thought andcreativity goes into developing an effectivemerchandising program — one that will playup the inherent attributes of citrus, whilegiving consumers the varieties they want inthe format they prefer.
Above all else, retailers should strive tocreate a nice-looking display. Removebruised fruit. Ensure that the display looksfull and plentiful. When in doubt, turn tosuppliers for help. Most citrus suppliers aremore than happy to assist retailers in build-ing creative displays. Noble, for example,makes POP material available featuring theselling points of its citrus.
Sunkist also provides retailers withample POS material, including everythingfrom bin wraps to header cards to recipes.It’s all about garnering the consumer’s atten-tion, explains Smith. “The more you attractthe eye, the more you sell.” pb
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as it looks good.”Sunset’s Mastromauro, however, dis-
agrees, arguing that consumers prize a namethey recognize and trust and adding thatbranded citrus sells well in his store. “We feelthere is no substitute for certain labels.”
4 . SELL BAGGED AND BULKBagged citrus drives up overall sales by
providing a larger ring than bulk product.but in most areas, it is important for retailersto offer both bagged and bulk citrus in orderto satisfy their entire customer base.
“Bulk fruit targets your quality-consciousconsumer, which is your high income, high-ly educated single professional or emptynester, whereas bagged targets bargainhunters and large families,” says Noble’sGenthner. While bags tend to feature small-er fruit, he believes that’s not an issue withconsumers who gravitate toward baggedproduct. “It’s not about how large theoranges are — it’s about ‘I’ve got five kidsand this bag of oranges will at least feed mykids twice over.’”
Bagged citrus may not be as popular incollege towns or urban environments whereconsumers tend to shop for just a day or twoat a time, states Nicole Towell, marketingdevelopment manager, Duda Farm FreshFoods, Oviedo, FL.
“I think it depends on the regions,” statesAl Finch, vice president of sales and market-ing, Diversified Marketing, Inc., Lake Hamil-ton, FL. “Northeast retailers do it by bulk.”
It’s important to note that bags have yetto catch on when it comes to imported cit-rus. That’s because the ring would be pro-hibitively high for most consumers, accord-ing to Stu Monaghan, national sales manag-er, DNE World Fruit Sales in Fort Pierce, FL.
5 . PROVIDE USAGE IDEASOpinions vary when it comes to the use-
fulness of providing recipes and serving sug-gestions. Mastromauro says Sunset’s recipecenter has proven successful in giving con-sumers different ideas of how to use citrus.
Klein’s Sage notes consumers appreciaterecipes because they give them new ideasfor incorporating citrus into their diet.
ECA’s Fouchek suggests placing recipesin ads to eliminate the potential for a messin supermarket aisles and still provide con-sumers the opportunity to add the necessaryingredients to their shopping list. “You’veturned an impulse sale into a planned pur-chase because when they’re trying a recipe,they want to make sure they don’t miss aningredient,” she adds.
While most suppliers and retailers con-sider serving suggestions at least moderatelyhelpful, some in the citrus industry question
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Best Spinach Merchandising TipsBoost sales of this favorite by promoting its diverse usages, playing up health benefits and restoring consumer confidence.
B Y L I S A S O C A R R A S
Spinach has a reputation for pro-moting health, but has had somesetbacks in past years due to food-safety issues. Retailers can scorethe highest ring from spinach sales
by marketing nutritional benefits and reas-suring consumers of its safety.
Ronda Reed, vice president of marketing,Dole Fresh Vegetables, Monterey, CA, notes,“Consumers have migrated from a singularhealth focus to an overall wellness focus.Spinach is a natural product that fits well intothis mind frame. Spinach is a superfood andconsumers readily identify that it is a veryhealthful and tasteful food that can helpmaintain and improve their health and well-ness in a simple, natural way.”
Today’s consumers are interested in thehealth benefits of the foods they eat. “Ibelieve today’s consumer is much more intune to the nutritional values of what theyare putting in their cart,” states Dan Canales,vice president of sales and marketing,Misionero Vegetable Sales, Salinas, CA. “Ibelieve that it is our industry’s job to keepputting solid information in front of con-sumers to give them the ability to makeinformed decisions.”
COMMUNICATE HEALTHRetailers should communicate the health
message. “The trend toward eating morehealthfully should definitely includespinach,” stresses Lindsay Martinez, directorof marketing, Boskovich Farms, Inc.,Oxnard, CA. “Retailers can list the numer-ous health benefits of spinach, such as agood source of vitamins A and C, lutein foreye health, with POS materials.”
Spinach has shown to be helpful in dis-ease prevention and in improving overall
health. “Researchershave identified atleast 13 differentcompounds in nutri-ent-rich spinachthat function asantioxidants andanti-cancer agents,”notes Kori Tuggle,marketing manager,Ocean Mist Farms,Castroville, CAshares. “Spinach hasalso shown to helpthose suffering fromosteoporosis, heartdisease, colon can-cer, arthritis andother diseases.”
Spinach is fat-free, cholesterol-free, low in caloriesand high in fiber, folate and magnesium. Itprovides 70 percent of the daily requirementfor vitamin A, 25 percent of the daily require-ment for vitamin C and 20 percent of thedaily requirement for iron. It also providesvitamin K, which helps to coagulate bloodand strengthen bones, as well as calcium, vit-amin D and phosphorous.
“With all the health benefits of spinachthere is a great opportunity to present thatto consumers either through packaging,labeling or signage,” explains Canales.
Retailers know that by communicatingspinach’s healthful qualities, consumerspurchase more. “Sales can be affected whensuppliers educate consumers about thenutritional value found in spinach,” reportsMaria Brous, director of media and commu-nity relations, Publix Super Markets, Inc., a
Lakeland, FL-based chain with 941 stores.
WATCH PLACEMENTProduct placement and communicating
nutritional values are important to boostingspinach sales. “Retailers should makespinach part of the main merchandising setand neither hide it on the wall nor place itin the packaged salad section,” stressesDole’s Reed. “In-store signage that commu-nicates the strong nutritional benefits ofspinach will also help.”
Tuggle advises merchandising similarproduce items together in the categories ofbulk and packaged. She emphasizes theimportance of using signage to gain con-sumers’ attention, along with providingusage ideas such as recipe cards. Ocean Mistalso provides bunch spinach in two formats:
Packaged spinach offers consumers added convenience.
with root and clipped. Ken Green, vice president of sales, J & D
Produce, Inc., Edinburg, TX says finding theright assortment of loose, bunched, value-added, flat and curly leaf varieties increasessales. Good merchandising that includes find-ing the best display location, display spaceand display method also are important.
“Think about cross-merchandising withcomplementary items, such as slicedalmonds, garlic bulbs, fresh lemon and freshand dried berries,” Ocean Mist’s Tuggle adds.
DISPLAY EFFECT IVELY“Many times, people are looking for sug-
gestions to use spinach in new ways,” statesBoskovich’s Martinez. “Cross-merchandisingspinach with items that complement it,such as dressings and toppings, will createmore sales, and adding POS materials withrecipe and preparation tips can give addi-tional ideas to consumers.”
The amount of space dedicated to theproduct will vary, depending upon the storeand its clientele. “As far as space allocation,it depends on the size and volume of thestore as well as the cases or rows in the pro-duce section,” explains Publix’s Brous.
The display must look attractive to drawconsumer attention. “As with any display, ithas to be large enough to draw attention
and give the appearance of abundance,”according to J & D’s Green.
Consumer demand affects the realestate. “Space for spinach will be deter-mined by consumer demand for each item,”notes Reed. “Some locations will naturallysell more spinach than others and will needmore facings. At a minimum, the retailershould carry two facings per item so con-sumers can easily find them.”
Space should reflect the popularity ofspinach. “I believe it should be one of theleading salads in terms of the salad set —second to spring mix blends,” Misionero’sCanales notes, because of the “versatility ofthe product as well as the nutritional value.”
Space allocation depends on availability.“It really depends on other variables such ashow much shelf space the retailer has avail-able and how many produce SKUs it car-ries,” reports Martinez. “Spinach continuesto have a good presence on the bulk rackand the value-added case.”
Brous stresses the importance of runningadvertisements to increase sales. “Retailerscan sell more spinach by advertising morein weekly sales flyers and offering displays.”
Promotions will increase sales, accordingto J & D’s Green. “Ads are looked at in termsof frequency and amount of price reduc-tion. This has the biggest impact on sales
because it creates trial by new consumers.”
CAP ITAL IZE ON POS IT IVEMEDIA EXPOSURE
Exposure makes consumers more willingto try new recipes. “Cooking shows on TV,food magazines and the growing frequency ofspinach on American menus all help educateshoppers about spinach, how it tastes andhow it can be used at home,” Tuggle adds.
Reed agrees, adding, “Cooking showshave greatly increased consumers’ sophisti-cation with many food categories includingpackaged salads. Consumers have increas-ingly experimented with darker greens,including spinach, and are becoming morecreative with ingredients in their salads.”
Dining out also influences meals preparedat home. “Restaurants are great for introduc-ing new spinach dishes to people, and cook-ing shows give step-by-step instruction forpreparation, giving consumers the means toincorporate more spinach into their diets,”notes Martinez. “Both have been key factorsto increasing spinach consumption.”
Cooking shows encourage creativity andbuild consumer confidence, according toCanales. “It shows the public not only thedifferent creative options for use but alsoinstills consumers’ confidence in the safetyof the product.” pb
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What is your target ethnic market?Tropical fruits and vegetables from Florida, Central and South
America are popular with Hispanic and Asian consumers. Hispanics enjoy having ready access to the produce they found
in their homeland. It may be price and/or availability that tempts our Asian consumers to try Caribbean produce, but it’s the flavor that keeps them coming back. Often, Asians recognize that we’regrowing Asian favorites, such as the Caribbean Red Papaya, in theCaribbean.
What other segments are you targeting?Most definitely, tropical produce attracts the health conscious and
typically the more affluent.
What products are you directing to ethnic consumers?Everything we sell attracts ethnic consumers with many items also
gaining interest in mainstream markets.
How do product preferences differ among segments?Meal time is quality time for family-oriented Hispanics and
Asians. It’s no surprise that they look for quality foods to bring to thefamily table. With many tropicals becoming available year-round,repeat purchases can — and do — build recognizable brands such asBrooks Tropicals.
Discuss supermarket buying habits among your target consumers.
Priorities are quality, price and convenience in that order.
What advice can you share on display tactics?Tropical displays are great attention builders for the mainstream
consumer. Hispanic and Asian consumers, however, care more fordisplays that allow them to visually and physically check outthe produce. Selling papayas cut in half is an appreciatedconvenience for meals on-the-go.
Can you pinpoint key marketing strategies?Buy enough to always have enough but still
order frequently. Build an ‘exit’ strategy for fast ripening tropi-
cals. For example, a Caribbean Red papaya’s skinmay look over-ripe but the flesh inside is extra
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sweet. Cut the papaya in half, add a spoon and cover with film for atreat on-the-go. If the flesh is a little soft, use it to make smoothies,which your Hispanic clientele refer to as batidos.
What are the biggest challenges to ethnic marketing?You've got to identify who your ethnic shoppers are and what they
want to eat and serve their families. Determining the right mix of tropical fruits and vegetables can be tough but very rewarding.
An emerging challenge is knowing when it makes sense to break up the tropicals section and integrate some or all of the fruits and vegetables into the mainstream produce aisles: grouping russet pota-toes with nuttier tasting boniatos, calabaza with pumpkins, chayoteswith squash, Caribbean Red and Caribbean Sunrise papayas with othermelons.
MERCHANDISING TO ETHNIC CONSUMERS
COMPANY: BROOKS TROPICALS, LLC.PRODUCT FOCUS: TROPICAL FRUITS AND VEGETABLES
TARGET ETHNIC GROUP: HISPANICS AND ASIANS
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Arvin, CA
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ATTENTIONALL BUYERS
USE
directories when you are ready to buy.For additional copies of this
directory or any other, please call
561-994-1118and ask for
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Atlanta takes the cake in places to find fresh fruits and veg-etables. Numerous farmers markets dot the city and sur-rounding suburbs, providing an array of locally grown pro-duce — fresh for the picking. For those who love to samplefood from a myriad of cultures, Atlanta offers many ethnic
restaurants that serve up a diverse selection of produce. “What makes Atlanta’s produce market unique is the different vari-
eties and ethnicities of fruits and vegetables that can be found here,”explains Chris Grizzaffe, manager, Produce Exchange of Atlanta, Inc. “Icame here from Tampa [FL], and you didn’t have the ethnicity that youdo here. Here, you have Mexican, Korean, Chinese, Indian and Mid-dle Eastern, mixed with local whites and African Americans. These dif-ferent ethnic groups want to buy for their cultures, but it also exposesother cultural groups to new and exciting types of produce.”
Bill Parcells, general manager, Georgia Tomato Co., Inc., ForestPark, GA, says Atlanta’s large Hispanic and Latin population has“brought a Southwestern type of flavor to the economy. There’s a lot ofproduce here that comes from Mexico — really unique stuff, such as
cactus, for example — andit’s been a huge influenceon this market.”
“Atlanta is a meltingpot,” relates Andrew Scott,sales and procurement,General Produce, Inc., atthe Georgia State Farmer’sMarket, Forest Park. “Thereare a lot of Hispanics here,but there’s also a big influxof Koreans who are open-ing large supermarkets. There’s a large Asian community here in gener-al, as well.”
Large numbers of Asians and Indians call Atlanta home, creating ademand for unique types of produce, adds Parcells. “This large varietyhas helped the produce market grow here.”
“Atlanta is known for its restaurants and different cultural eateries,”
Prime location, diverse demographics and a unique selection of fruits and vegetables keep this Southern city at the top.
BY K.O. MORGAN
ATLANTA PRODUCEHeats Up The South
R E G I O N A L M A R K E T P R O F I L E
www.generalproduceinc.comReader Service # 79
Serving the Southeast with a full line of the freshestFruits, Vegetables & Hispanic produce available.
Wholesale Division ~ 800-782-5833 • Retail Support Division ~ 800-391-8222
Hiram Folds, CEO, Calvin Folds, President, Jeannie Springfield, Vice PresidentRandy Lineberger, Executive Vice President
Andrew Scott, Sales Manager Wholesale Division Derek Powell, Director of Retail Support Division
Delivering throughout the Southeast with our own fleet of satellite equipped trucks.
Atlanta State Farmers Market
e-mail: [email protected]
P R O D U C E B U S I N E S S • N O V E M B E R 2 0 0 888
notes Scott. “This is a major convention cityand a lot of these ethnic restaurants cater tothese conventions.”
EARTH-FRIENDLY EATINGAtlanta is a city rich in ethnicity, and diver-
sity is on the rise, but it’s the local farmers andGeorgia’s indigenous produce that make thebiggest splashes at the city’s most popular mar-kets. “I have friends who come into town andwant to see the produce market because of thebulk and the amount of food that movesthrough here,” says Produce Exchange’s Griz-zaffe. “People don’t realize the amount of pro-duce that moves through here in just one day.”
“Fresh produce is popular in Atlantabecause the fruits and vegetables come [direct-ly] from the farmers,” explains Marsha Thomas,manager, Atlanta Produce Dealers Association(APDA), Forest Park, GA. “A lot is shipped in,but most people come to the farmers marketsbecause of the price; it’s cheaper and fresherthan [produce for sale at] grocery stores,” shestates. “At the supermarkets, there have beenthree or four handlers by the time the consumer
buys it, whereas our produce comes directlyfrom the farmers. In fact, a lot of wholesalers
who deal with the grocery stores also comehere to buy produce from the farmers.”
“Atlanta as a unique produce place startedwith a unique group of characters who startedselling produce here 60 years ago, whenAtlanta was a transportation hub for the rail-road,” explains Lon Langston, president, Geor-gia National Produce, LLC, Forest Park, GA.“Many of these farmers, retailers and whole-salers are third and fourth generation. Othershave simply been influenced by their legacy.”
Harry’s Farmers Market is a 3-storeAlpharetta, GA-based chain owned by WholeFoods Market, Inc., Austin, TX. “We focus onbuying as much local produce as we can,”says Youssouf Diop, produce manager at theRoswell, GA, store. “Buying from the localfarmers means the difference between buyingfresh or buying produce that has to be kept inthe freezer. Local is better because it is fresher,which means it has a better flavor.”
“We purchase produce from local growersto provide our customers with the freshest,most nutritious produce available in theSoutheast,” states Glynn Jenkins, director ofcommunications and public relations, AtlantaDivision, Kroger Co., a 2,274 store chain
W hile General Produce Inc., located at the State Farmer’sMarket in Forest Park, GA, is known as one of thelargest wholesale distributors in the Southeast, repack-
ing continues to be a growing part of its business, explainsAndrew Scott, manager, buying and sales.
This past summer, General Produce purchased an APM Packer1400 from APM, Inc., Norcross, GA. The model 1400 has been usedto pack 2-, 3-, 5- and 8-pound bags of various types of produce.“We can pack to order for customers, especially in these times oftrying to be real close with our inventories and trying not to buytoo much,” Scott emphasizes. General Produce also packs 12/2onions, 9/3 citrus as well as 9/3 and 12/4 potatoes.
“This machine can do it all and it has some real good capabili-ties,” he explains. “It has Ethernet on it. We can look at our comput-er to see what that machine is doing — even from the house.”
Jim Sabourin, APM president, says modems are placed on everymachine and the Ethernet connection allows companies to operateand adjust the equipment from a remote location. Depending onthe commodity, the model 1400 can run 25 to 30 bags of apples perminute and up to 50 bags or more of soft fruit.
General Produce has used the packer to run various produceitems, such as stone fruit, citrus, pears, “very delicate, thin-skinnedpotatoes” and onions, Sabourin says. However, it is primarily amachines designed for apples. “The apples we run in our factory[are shipped] to the market just as if they had been hand-packed.The key to packing apples is not bruising the fruit.
“It is powered by an Allen Bradley PLC [programmable logiccontroller], which is the brains,” Sabourin continues. “It’s the pre-mier manufacturer of a lot of your electronic controllers. Anotherkey feature is that it has digital electronics. It’s very easy to operateand maintain.”
The large weigh buckets are mounted in a drawer that can bepulled out for cleaning and servicing. “In my opinion, it is the mostaccurate produce weigher on the market,” Sabourin adds. “The bigthing is it has non-proprietary parts. All of the parts in that machinecan virtually be bought from a parts distribution house. You don’thave to go to Europe to get your parts. You don’t have to buy themfrom us. You can buy them direct, which really reduces the overallcost of the equipment.” pb
GENERAL PRODUCE BENEFITS FROM APM PACKER By Bill Martin
“We focus on buying asmuch local produce as wecan. Buying from the localfarmers means the differ-ence between buying freshor buying produce thathas to be kept in the freez-er. Local is better becauseit is fresher, which meansit has a better flavor.”
— Youssouf DiopHarry’s Farmers Market
R E G I O N A L M A R K E T P R O F I L E
based in Cincinnati, OH. “Consumers alsorecognize that purchasing vegetables andfruits grown by local farmers has significantadvantages, including helping the economy inthe communities we serve and delivering pro-duce to our stores much more quickly. Locallygrown also means less fossil fuel burned dur-ing preparation and transport and less energy
needed to refrigerate during transportation,which promotes sustainability as well.”
According to Moitaba Aryafar, producemanager, Kroger in Alpharetta, GA, “Organicsare especially big among our consumer base.Luckily, Georgia has many varieties of organic
fruits and vegetables.”“Health concerns are making produce more
popular than ever,” notes APDA’s Thomas.“People are coming back to produce becausethey’re becoming more health conscious.”
“Atlanta is a great place for produce
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T he Atlanta Produce Dealers Association (APDA), Forest Park, GA, is locatedon 149 acres, making it one of the largest open-air markets in the Southeast. In1947, the late Gabe Thomas formed APDA to encourage and protect trade and
commerce among produce dealers and to help those in the produce business withcredit and insurance needs.
Today, the majority of its members are still produce dealers, but it also includesdistribution companies, retailers and wholesalers, along with people in other indus-tries, such as bankers, real estate agents and community leaders, who work closelywith produce dealers.
APDA raises money from golf tournaments and auctions for scholarships offeredto its members and their families. “Our commitment is to help those in the Atlantaproduce business grow stronger,” explains Marsha Thomas, APDA manager, who isalso the founder’s daughter. “It’s something we’ve been doing for 49 years.” pb
APDA CONTINUES TO AID MARKET’S DEALERSBy K.O. Morgan
“Consumers also recognize that purchasingvegetables and fruitsgrown by local farmershas significant advantages,including helping the economy in the communities we serve and delivering produce to our stores much more quickly.
— Glynn JenkinsAtlanta Division, Kroger Co.
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because Georgia has a great climate for grow-ing fruits and vegetables, with a good changeof seasons,” says General Produce’s Andrew.
“We’re well known for our Southern peachesand our Southeastern veggies, such as cab-bage, for example, that start in October, suchas cabbage, for example.”
LOCATION, LOCATION, LOCATIONAtlanta’s central location also helps boost
produce sales. “Location is definitely a hugepart of the answer to what makes Atlanta aunique produce market,” reports Langston ofGeorgia National Produce.
According to Mike Jardina, president andCEO of J.J. Jardina Co., Inc., at the GeorgiaState Farmer’s Market, Forest Park, GA, “Ibelieve that our location in the Southeast withmany cities in every direction combined withthe many ethnic groups make our market avery strong and diverse marketplace where aconsumer can find just about any commoditythroughout the year.”
Proximity and transportation are majorbenefits, agrees Andrew. “The [Hartsfield-Jack-son] Atlanta [International] Airport is [one ofthe] largest airports in the world, and it’s oneof the busiest. From Atlanta’s airport, you canget anywhere in two hours.”
“Faster shipping means even fresher pro-duce because items are picked and packed ata more mature stage, which brings out the fla-vor of the product,” explains Jenkins. “Thatflavor is what makes Atlanta a popular pro-duce market.” pb
“I believe that our locationin the Southeast withmany cities in every direction combined withthe many ethnic groupsmake our market a verystrong and diverse marketplace where a consumer can find justabout any commoditythroughout the year.”
—Mike JardinaJ.J. Jardina Co.
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FOODSERVICE
MARKETING
FOODSERVICE
MARKETING
Specialty Trends Make Waves On MenusRestaurants and other foodservice outlets expand their selection of specialty fruit and vegetable offerings.
B Y P E T E R L A V E R Y
Distributors and restaurateurs areredefining specialty produceand changing their views of thecategory in the process. Whilesome commodity dealers see
specialty as the research and developmentdepartment for the industry, they also rec-ognize the potential for great rewards indealing with unconventional new products.As the category morphs constantly on theEast and West Coasts on divergent paths,produce executives agree chefs’ palates — inboth institutional foodservice and restau-rants — drive much of the evolution of spe-cialty on both coasts.
“Items such as chile peppers, edamame,Fingerlings, baby vegetables, fresh herbs,dragon fruit, pomegranates, passion fruit,cactus pears and lychee are all really hotright now,” reports Karen Caplan, president,Frieda’s, Inc., Los Alamitos, CA. “All of thesespecialty items were listed as hot in theNational Restaurant Association’s [NRA,Washington, D.C.] What’s Hot, What’s Notsurvey, indicating that specialty produce asa whole is getting pretty hot.”
Robert Schueller, director of public rela-tions, Melissa’s/World Variety Produce, Inc.,Los Angeles, CA, sees a trend developing infresh mushrooms. “Cutting-edge varieties ofmushrooms such as hen-of-the woods,maitake, chanterelle and fresh porcini, aswell as black, burgundy and white truffles”are good examples of popular mushrooms.“These are the most expensive [produceitem] per pound, with black truffles at $700to $800 per pound, burgundy at $1,000 perpound and white as high as $2,000 perpound — all depending on air freight anddemand,” he adds.
Fresh herbs are also gaining popularity.
industry trends, states Michael Muzyk, pres-ident, Baldor Specialty Foods, Inc., Bronx,NY. “For example, the organic line is driventhrough retail markets. Typically, retail isnearly recession-proof, but as the economyis on a downward spiral, [I wonder] how thisis going to impact the recent growth inorganics as a specialty category.” Muzykremains hopeful that recent organic gainswill not be lost as Americans tighten theirpurse strings and cut back on dining out.
MENU TRENDSIn California, Melissa’s finds trends simi-
lar to those Baldor’s is enjoying on the EastCoast. “The use of freshness especially isimportant and there is a lot of growth inorganics especially,” says Schueller, whosees many restaurants taking on a greenapproach to business while incorporatinglocally grown and organic produce. But, heconfesses, “Outside of the Southwest, it is
Specialty produce allows chefs to create signature dishes that define their menu.
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“There is more demand in the fall with basilchives, mint, dill and oregano,” Schuellernotes. “The average American still usesdried, but if they know [what] chefs do,[they know] fresh equals [a better] flavorprofile.” He also points out growth in freshethnic spices such as ginger, turmeric,galangal, lemongrass and domestic wasabi.Melissa’s wasabi is grown in northern Cali-fornia. Schueller says Melissa’s defines spe-cialty as “distinguishing yourself [from othersuppliers] by offering what [they] don’t.”
Some chefs demand extraordinary pro-duce items to set their menu apart from oth-ers, states Ande Manos, sales, Babé Farms,Inc., Santa Maria, CA. “Rare ingredients thatchefs have the exclusive on allow them tocreate a signature menu that representstheir identity, qualities and uniqueness.”
Many people discuss specialty in termsof specific products but recognize categorieswithin the realm of specialty as indicated by
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Sun-Dried Tomatoes Do Well in Produce
E ven though produce is all about freshness, many wholesalers carry sun-driedtomatoes in order to capitalize on the item’s resurgence in popularity. KarenCaplan, president, Frieda’s, Inc., Los Alamitos, CA, says the trend rings particu-
larly true in California. Frieda’s carries a full line of sun-dried tomatoes and sun-driedvalue-added products.
Michael Muzyk, president, Baldor Specialty Foods, Inc., Bronx, NY, says the sun-dried tomato is also making a comeback on the East Coast. “It’s back. I move a tractortrailer of sun-dried each week.”
He recalls the popularity of sun-dried produce during the 1980s with the emer-gence of California cuisine. “Double-blanched garlic, sun-drieds, olive oil and cilantro— you could put that on anything.” The popularity of sun-dried tomatoes may havesuffered from lowered quality of certain imports, he says, but those problems havebeen corrected with the availability of today’s products, which may well account fortheir renewed popularity. pb
difficult to do locally grown. This trend ismore media-driven than consumer-driven.”
Baldor’s Muzyk finds a growing interestin local produce as a flourishing specialtytrend in the Northeast. “Local is a very hottopic these days in specialty produce. Localshould mean fresher and therefore morenutritious. Here in New York, we are talkingabout buying from the Catskills versus Cali-fornia, with four hours on the road, insteadof four days.”
He notes logistics costs also drive thelocal trend. “I can get celery for $7 in Cali-
fornia, but it costs $9 to get it here. Thatmakes you look to the Catskills or to Canadato see what’s going on. Necessity is themother of invention.”
According to Manos of Babé Farms,“While organics is certainly respected and apopular trend, the support of the local farm-ers has been a tremendous trend through-out the country. I think the importance ofsupporting your local grower, ultimatefreshness and reducing our carbon footprintare all ways for chefs/restaurants to create anotion of being environmentally conscious,
while promoting and utilizing local flavors.”Drawbacks of switching to more local pro-
duce still exist. “Customers were used to thatperfect squash, perfect size, which may notbe as available when you buy local,” Muzyksays. He admits dealing in local producesometimes means smaller quantities of aspecial product, but chefs get excited aboutproduce from their own backyard. “The localbuzz is so important these days, he adds.“Many people want ripe, ripe, ripe, but the[conventional] system is not made for ripe,ripe, ripe.”
Baldor meets clients’ demands with localproduce despite economically weak smallerlots because Muzyk believes it’s worth pick-ing up that small lot to provide a uniqueproduct that a chef remembers.
Baldor coaches “local growers on what togrow or what varieties to grow,” statesMuzyk. “With heirloom tomatoes, growersrealize they are getting $25 for 10 poundsinstead of $10 for 25 pounds, and that is areal difference. The word heirloom has justexploded when attached to tomatoes.”
As for flavor profiles that specificallyincorporate hot items, Muzyk notes, “We’veseen the Asian thing come and go and comeback again now.” One of Baldor’s points ofpride is the fresh mangosteen. “We haveseen the mangosteen really succeed becauseof the funkiness of the fruit.”
Melissa’s biggest growth is happeningwithin its line of Asian products, includingBuddha's hand, uzu, kaffir lime, rambutan,
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lychee and longan, which Melissa’s brings infrom Hawaii. “We are seeing Asian produceand flavor trends in restaurants and in popu-lar food, but Latin produce is also growingand beginning to segment itself by specific
cuisines,” Schueller explains. “Americans’No. 1 ethnic cuisine is still Italian, but morespecificity is emerging.”
Baldor’s Muzyk agrees, adding, “KoppertCress microgreens [from Koppert Cress USA,LLC, Lake Success, NY] are hot. They’re amicrogreen with the living media attached[and] delivered that way. Some restaurantswheel out a cart to diners who select greensthat are cut and plated table-side. You can’tget much fresher than that. Microveggiesare quite robust with flavor — they’re con-tributing to the composition of the dish, andchefs see that.”
Despite ingredients’ exotic appeal, “Chefsare also keeping simplicity in mind, highlight-ing simple, fresh ingredients with minimalisttechniques,” according to Frieda’s Caplan.“Many chefs are now making fruits and veg-etables center of the plate so fresh flavors andinteresting ingredients are paramount.”
Frieda’s takes a very proactive approachto communicating specialty applications toclients, stressing the importance of constantcommunication, according to Caplan. “Frie-da’s sends out regular correspondence [toclients], including our twice-monthly CropConnection newsletter, bi-weekly MarketReport and e-mail promotions. We also keepour newly redesigned Web site up-to-datewith the latest trends in foodservice, and weprovide our clients with creative and attrac-tive fact sheets and high-quality color pho-tography. It also helps to have a well-informed sales staff who are experts in spe-cialty produce.”
“We’re looking at the restaurant theme,but we’re [also looking] at the demographic
“Many chefs are now
making fruits and
vegetables center
of the plate so
fresh flavors
and interesting
ingredients are
paramount.”
— Karen CaplanFrieda’s, Inc.
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being served, making sure the hard-to-finditems are made available and our clienteleis made aware of them,” reports Schueller.“By offering what others don’t, we can intro-duce things. We bring in fresh mangosteenand Indian mangos, dragon fruit and rambu-tan. We bring samples to customers. Theeasiest sell is if you get it into their mouth.”
With samples of new items, Schuellernotes, “A lot of new light bulbs go on.” Thisapproach benefits not only the clients butalso Melissa’s. “Chefs are our test market. If aproduct works at foodservice, we know it willget to retail. Foodservice picks up on thesenew items faster than other segments, too,trying new things as a [means to maintain]distinctiveness by having the new item first.”
With salads, “Value-added is the trend infoodservice,” adds Schueller. “Ten-pound bagsalad is really the trend, and unless it isbeing used as a garnish, whole, stemmedleaf is not as popular as it once was. Value-added is very popular. That works, but noton everything because of less shelf life.
“There is value in fresh-cut on itemssuch as jícama, celery and carrots, which donot have a shelf-life issue. Microgreens con-tinue to roll on as the leading garnish,whereas parsley not as much anymore,except in the really old-school restaurants,”
he continues.Baby vegetables in
the squash familyaren’t doing too well,but baby root vegeta-bles, such as beets, car-rots and others aregaining popularitybecause of the intenseflavor they provide,according to Baldor’sMuzyk. “That reallydelivers a lot to thecomposition of a dish.That profile of flavorhas really come to thetable now.” He seeslocal, seasonal, wilditems, such as ramps,wild garlic and crosnes(a tuber that is actuallypart of the mint fami-ly), gaining ground.
Baldor has investedheavily in a new fresh-cut facility. The fresh-cut category is “abso-lutely growing and growing as a trend,”Muzyk states. “You peel an onion and get 40percent yield; [restaurants and foodservice]
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DRIED
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Holidays Ring In Dried Fruit And Nut SalesEncourage sales this holiday season with increased advertising, smart merchandising and recipe ideas.
B Y F R I T Z E S K E R
Prominent displays in the produce department spur sales of dried fruits and nuts.
The holiday season is a peak salesperiod for dried fruits and nuts.A number of tips can help retail-ers make the most of this busyseason and keep the momentum
going well into the new year.While dried fruits and nuts have become
increasingly popular as snack items, theyare still considered traditional for holidaybaking and retailers should take advantageof this. “This is the best time of the year forboth dried fruits and nuts,” states AndrewStillman, president, Amport Foods, Min-neapolis, MN.
Prominently displaying dried fruits andnuts during the holiday season is critical.“The biggest thing is getting the products onthe shelves because people are looking forthem during the holiday season,” explainsLinda Cain, vice president of marketing andretail sales at Valley Fig Growers (VFG),Fresno, CA.
Creating special holiday displays fordried fruits and nuts attracts attention to theproduct. “Dried fruit is very much animpulse product,” reports Joe Tamble, vicepresident of sales, Sun-Maid Growers of Cal-ifornia, Kingsburg, CA. Typically, peopleneed to be reminded to buy dried fruits andnuts. If they walk through a grocery storeduring the holiday season and see a holiday-themed display featuring dried fruits and/ornuts, they’re likely to buy them. Retailersshould use signage, shelf talkers and attrac-tive, attention-getting displays to remindconsumers to buy.
Stillman prefers displaying dried fruits inshipper displays because they do not takeup much space. However, when shipper dis-plays are sold out, they’re gone. On the flipside, if a shipper display sells out quickly,it’s proof the items are selling well.
“I’ve always suggested using open bagsand allowing consumers to pick exactlywhat they like,” notes Salvatore Vacca, presi-dent, A.J. Trucco, Inc., Bronx, NY. “Display-ing nuts in bulk provides a fresher look thanpackaged nut displays.”
Sun-Maid has been successful with ship-per displays. During the holiday season,their displays often sell out in one or twoweeks. Larger pallet displays can be used tohold 20 cases. Pallet displays can take up alot of room, but if retailers have the space,they can be beneficial.
It’s important to display dates in fresh,not packaged form, advises Lorrie Cooper,manager, California Date AdministrativeCommittee, Indio, CA, because “Peoplearen’t too familiar with dates.” Displayingfresh dates gives consumers a chance tobecome familiar with them — to see andtouch them. “People like seeing a fresh prod-uct on display in its natural form.”
Dave Nelson, vice president, Bard ValleyMedjool Date Growers Association, Bard,CA, believes it is important for customers tosee the products but says this can be accom-plished through clear packaging.
PRODUCE PROF ITSThe best place to display dried fruits dur-
ing the holiday season is in produce since it’sa logical place for them, explains Tamble.“Raisins, after all, are just dried grapes.”
The produce department is also wheremany healthful foods are located. “There isno place more healthful in the store than theproduce department,” reports Stillman. “It’swhere it will make the most profit for thestore as a whole.” Dried fruits have a numberof health benefits and many customers willbe looking for healthful options to counterbalance the indulgences of the season.
Stillman says retailers should charge fullprice for dried fruits and nuts during the holi-
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day season becausethey’re in high demandand consumers are will-ing to pay full price.Some retailers markdown dried fruits andnuts at this time, but hebelieves this is a mistake.
REC IPES ANDPROMOTIONS
Promotions Retailerscan encourage con-sumers to buy driedfruits and nuts by providing recipes andusage ideas. Sun-Maid’s Web site provideshundreds of recipes and offers five recipebooks available to consumers for free. Forretailers, Sun-maid provides tear pads withrecipes for consumers to take home.
For nine years, the California DateAdministrative Committee has hosted a chefcompetition in which chefs create their ownunique recipes featuring California-growndates. These recipes are then made avail-able to the public to encourage consumersto try the dishes themselves.
Stillman recommends attaching recipesto shipping displays, adding that it’s best toinclude both holiday and non-holidayrecipes because it will make consumerswant to buy dried fruits to use both duringand after the holiday season.
VFG’s Cain believes recipes are vitallyimportant. Each year, VFG does recipereleases with Mission, KS-based Family Fea-tures, which places a full page of fig-relatedrecipes in various newspapers during theholiday season. Cain estimates this strategy
reaches between six and10 million readers. TheVFG Web site also high-lights a variety of recipesthat can work at alltimes of the year.
Diamond Foods,Stockton, CA, is takingan interactive approachto promoting nuts bycreating a contest thatrequires consumers tosubmit their favorite hol-iday-entertaining tips for
using in-shell nuts, says Andrew Burke,senior vice president of marketing. Onegrand prize winner will receive an all-expenses-paid trip to New York City to seethe Nutcracker Ballet.
CROSS -MERCHANDIS INGRetailers should take advantage of cross-
merchandising opportunities as a means toboost peanut sales during the holiday sea-son, which coincides with the second half offootball season. Betsy Owens, executivedirector, Virginia-Carolina Peanut Promo-tions, Nashville, NC, says peanuts can bedisplayed in little plastic football containersto remind consumers they’re a good snackwhile watching a game. Peanuts should becross-promoted with items, such as beer andsoft drinks — two other essentials for foot-ball viewing parties.
Since nuts are often used as a garnish forsalads, ice creams and cereals. marketingnuts with salad items, such as lettuce, saladdressing, ice creams and cereals, is a goodidea according to Burke. pb
Use The Season As A Launching Point
While the holiday rush to buy dried fruits and nuts can mean short-term profitsfor retailers, the season can also be used as an opportunity to encourage year-round consumption. Consumers want dried fruits and nuts year-round, but
many stores take down their dried-fruit displays after the holiday season, according toAndrew Stillman, president, Amport Foods, Minneapolis, MN. “The No. 1 complaint weget is ‘How come I can’t buy these any more?’”
The period right after the Christmas holidays is typically the worst time of the year forfresh fruit, reports Stillman. Fresh fruit is often expensive then because of limited avail-ability. Retailers should take advantage of this to showcase dried fruit. “Dried fruit isalways ripe and always in season,” notes Stillman. “The holiday season should be thebeginning of promoting dried fruits for the next five to six months.”
Keeping dried fruits and nuts in a prominent part of the produce section after the hol-idays is vital. “The reason people don’t buy any more than they do is because they don’tthink about it,” explains Betsy Owens, executive director, Virginia-Carolina Peanut Pro-motions, Nashville, NC. “They need to be reminded. If you have them in the same loca-tion in the produce department all the time, people are more likely to get them.” pb
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N O V E M B E R 2 0 0 8 • P R O D U C E B U S I N E S S 97
FLORALWATCH
Floral Watch is a regular feature of PRODUCE BUSINESS. Please send information on new products, personnel changes, industry, corporate and personal milestones and available literature, alongwith a color photo, slide or transparency to: Managing Editor, PRODUCE BUSINESS, P.O. Box 810425, Boca Raton, FL 33481-0425, or e-mail us at [email protected]
CALIFORNIA ASSOCIATION OF FLOWERGROWERS & SHIPPERS, CAPITOLA, CASteve Dionne was named president. The second-generation owner of Cal-Americas andUnited Floral Exchange, Vista, CA, Dionne originally became involved with the associationin 2002 when he joined the transportation committee. He was later elected to the board of directors and became vice president in 2007.
FLORAL MARKETER OF THE YEAR AWARDDaniel S. Temkin, owner and president ofTemkin International, Inc., Payson, UT, wasnamed 2008 Floral Marketer of the Year at alunch general session during PMA’s FreshSummit International Convention andExposition held in Orlando, FL, October 24-27.The award recognizes an outstanding floral professional who has served the mass-marketfloral industry with dedication and distinction.
MICKY’S MINIS RECOGNIZEDMicky’s Minis, Millstadt, IL, received a 2008 PMAImpact Award during PMA’s Fresh SummitInternational Convention and Exposition held inOrlando, FL, October 24-27. The award recognizescompanies leading the way with exceptional produceand floral packaging that demonstrates imaginationand makes an impact. Vice president Bill Byland ispictured with the PMA Impact award.
VERIFLORA CERTIFIEDDos Gringos, Vista, CA, an integrated flowergrower, bouquet maker and shipper of floralproducts, is the latest California-based floralcompany to earn the VeriFlora CertifiedSustainably Grown label. The certification, conducted by Scientific Certification Systems, Emeryville, CA, confirms Dos Gringos meets high standards of environmental sustainability, social responsibility and product quality throughout its operations.
HANDLED SLEEVE FOR BOUQUETS AND POTSA-ROO Company LLC, Strongsville, OH, introduces the Petal Pouch sleeve, a handledsleeve perfect for fresh floral bouquets and up to 41⁄2-inch potted container plants. Thecrossover-ready floral packaging measures20x18x51⁄2 and is available in clear or various colors from the Simplicity Collection line.
Reader Service No. 317
SPRING COLLECTIBLESBlossom Bucket, Inc., N. Lawrence, OH, introduces Barbara Lloyd’s Waiting for Springcollectible figurine, with its sunny colors, flowers and bunnies. Ideal for any floraldepartment merchandising spring gifts and add-ons. The collectible measures 3.25"H x 6.5"L. Separate orders are accepted and auto-ship is available.
Reader Service No. 318
DESIGNED FOR SMALL SPACESPrimescape Products Co., BuffaloGrove, IL, now offers a 3-foot floralframe perfect for small spaces.Designed for holiday plant displays oryear-round floral displays. Frames areavailable in full diameter, holding 29plants on three tiers, and half diameter,holding 18 plants on three tiers. Theyalso are available in larger sizes (up to20 feet).
BUILD A WAVEStructural Concepts, Muskegon, MI, offerscurved floral cases that can be mixed andmatched. The Wave cases are availablewith inside (concave) and outside (convex)curves and various glass configurations.They also feature the Fresh Flow gravity-fill watering system where the stems of your cut flowers are never out of water.
Reader Service No. 319 Reader Service No. 320
NEW PRODUCTS
VERIFLORA CERTIFIEDKerry’s Nursery, Inc., Homestead, FL, one of the largest orchid and bromeliadgrowers in the world, and TwyfordInternational, Apopka, FL, one of theworld’s largest plant tissue culture labs,have achieved VeriFlora certification,the sustainability benchmark for potted plants and cut flowers sold inNorth America. Scientific CertificationSystems, Emeryville, CA, developedand administers the VeriFloracertification program.
Reader Service No. 315
WF&FSA CONVENTION SET FOR ORLANDOThe Wholesale Florists & Florist Supplier Association,Annapolis, MD, announces the 2009 WF&FSAConvention will be held in Orlando, FL, April 1 - 3 at the Hyatt Regency Grand Cypress Hotel. Ownersand senior managers will learn to better connect withtheir businesses through a combination of speakers,interactive programs, and structured networking exercises with their peers.
Reader Service No. 316
CONGRATULATIONSTRANSITIONS
ANNOUNCEMENTS
Reader Service No. 313 Reader Service No. 314
Reader Service No. 312
P R O D U C E B U S I N E S S • N O V E M B E R 2 0 0 898
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Listening To The NumbersProper category management practices enable floral directors and category managers to make informed decisions about providing just the right product mix.
B Y J O N V A N Z I L E
Category management will be helped by industry-wide standardized UPCs.
Floral category veterans swear by cat-egory management (CM), the prac-tice of using highly accurate scandata to increase sales and reduceshrinkage. Widely used in the pro-
duce and meat departments, CM is relative-ly new to the floral department.
By providing accurate weekly or otherperiod sales data, CM allows floral depart-ments to better respond to customer needs,create more efficient relationships with ven-dors and boost margins by reducing wasteand better predicting sales trends.
CM is more than a tool; it’s a philosophythat redefines the way floral departmentsoperate. While a small chain or an indepen-dent store might be able to effectively oper-ate on intuition, large chains need to mini-mize risk. By providing solid sales data, CMmakes this possible.
The foundation of any successful CMprogram is the categories themselves. Eventhrough floral is a relatively small depart-ment within most supermarkets, it requiresa relatively large list of categories to bestunderstand the flow of product. However,lack of standardization is a complication.Since there is no widely accepted list of UPCcategories, each chain with CM experiencestarted from scratch.
Schnuck Markets, Inc., a St. Louis, MO-based chain with 103 stores, runs an in-houseCM program. Cheryl Bruno, floral categorymanager, notes floral wares are divided into29 distinct categories, including basics suchas bouquets, consumer bunches, roses andarrangements. The floral department alsooffers a full-service design center, so the scandata includes non-perishables such as rib-bons, baskets and giftware. “Category man-agement allows you to allocate space andpinpoint sales opportunities,” she says.
Jon Strom, vice president of floral andlifestyle merchandising at Price ChopperSupermarkets, a Schenectady, NY-basedchain with 114 stores, operates the CM pro-
gram entirely in-house. The chain has iden-tified about 25 categories, including cutflowers, potted plants and non-perishables.
Established programs like these don’t suf-fer for lack of industry standards, but ChrisBuss, president, TotalFloral, Homestead, FL,believes everyone would benefit from astandardized UPC category list. Buss is cur-rently working to create what he hopes willbe the industry standard. TotalFloral recent-ly partnered with The Perishables Group,West Dundee, IL, which is linked withACNielsen Co., New York, NY. ACNielsenprovides regional comparison CM data thatallows supermarkets to track their sales vol-ume and prices against local competitors.
“Right now, we’re working on the floralhierarchy,” Buss reports. “It’s going to take alot to sort it out. The floral industry is highlysubjective. There’s no disciplined approachto how it has set up its UPCs, but everybodyhas something to gain from standardization.”
The service isn’t available yet, but Busshopes when it goes live, it will enable chainsto compare floral results regionally. “I havethe full, clear-eyed realism that the first listwe get done will be rough, and we’ll contin-
ue to refine it and improve it,” he adds.
RUNNING THE REPORTSNo matter how the data is organized, the
real benefit comes from how it is gathered,reported and used. Different floral depart-ments approach this differently. Strom jokesthat his employees call the weekly scan-datainformation “Jon’s favorite reports.”
Price Chopper generates a complete cate-gory analysis every week plus a more in-depth monthly performance analysis thatincludes shrink rates and reduction. “We’vegone beyond category management to in-depth pricing information and micro trends,”Strom notes.
Bruno runs reports every four weeksplus special holiday analyses. Schnucksdoes some reporting for weekly scan items,but it’s not the foundation of the program.
One persistent issue with floral scan datais accuracy. Scan data inaccuracies alwaysexist, but as Bruno points out, “We’re not thecereal aisle with boxes in and boxes out.”
Some floral product might be used for dis-plays or broken out into single-stem salesand some products, such as balloons and
vases, don’t scan easily, so busy cashiers arelikely to key-code the purchase as floralinstead of using the specific UPC code. Theresult is scan data that can be wildly skewed.
“Let’s say you buy 100 roses and only 80are scanned,” Schnucks’ Bruno says. “Itlooks like 20 percent shrink, but that’s notaccurate, because a lot of those might havebeen used in displays and arrangements.”
Unfortunately, no easy solution exists.Educating floral managers and cashiers canhelp, but ultimately, Bruno says, her depart-ment has to recognize that even thoughnumbers aren’t totally accurate, valuableinformation is still available.
REAL -WORLD BENEF ITSCM impacts the bottom line and its real-
life applications are endless. For example,Bruno’s monthly reports recently showedan unusual level of shrinkage in the con-sumer-bunch category. First, she looked atthe vendor relationship and asked herselfwhether the product quality was decliningor if something changed with the product soconsumers found it less appealing.
After discounting these considerations,she next looked at the supply chain itself andfound the consumer bunches were coming inlarge packs, but not every floral departmentwas interested in every item in the pack. Flo-
N O V E M B E R 2 0 0 8 • P R O D U C E B U S I N E S S 99
Holidays And Special Events
Asolid category management (CM) program will generate unique holiday reports,allowing buyers to spot trends in sales of special items and non-holiday items.These data, in turn, guide ordering decisions across the chain.
At Schnuck Markets, St. Louis, MO, data reports have enabled buyers to “go narrowand deep,” explains Cheryl Bruno, floral category manager. “We do a recap every holiday.We run all items by scan data, so we can really focus on top-selling items.”
Ultimately, the central idea behind using CM in floral is to improve overall profitabilityalong the entire supply chain by generating better information. CM can help design pro-motions and pricing, identify problems areas and make pre-booking more accurate.
While it tends to be better suited to larger chains, TotalFloral, Homestead, FL, offers CM toall their customers. Upper-management support is essential to doing CM in house becauseof the costs involved with running and analyzing the reports, states Chris Buss, president. “It’sabout trend analysis. The whole idea is taking it out of the intuitive realm and putting it intothe factual realm. It’s a different language, a different thought process.” pb
ral managers were ordering the large packs,throwing out the items they weren’t interest-ed in and selling the rest. The result wasexcessive waste and reduced profit.
Bruno’s team launched a major effort todirectly address the problem. Pack sizes inSchnucks stores were customized so individ-ual floral managers can order the exactproduct they want, thus reducing shrink.
VENDOR ROLESIt’s no surprise Bruno first turned to the
vendor quality when analyzing the problem.One of the main benefits of CM is its abilityto drill down into the vendor relationshipwith multiple benefits.
Past scan data allows department man-agers to better predict volume and evenwhich products will be needed at whichtimes of year. “We partner with suppliers forthe long range,” Price Chopper’s Stromstates. “I almost always know who the sup-plier is for any particular category, and I canusually tell how they’re performing.” pb
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P R O D U C E B U S I N E S S • N O V E M B E R 2 0 0 8100
Responsive Marketing
When Ohio-born Dick Bere, who would becomepresident of Kroger Co., worked as a producemerchandiser in the Minneapolis area during the1960s, he saw numerous consumers canning andfreezing fresh fruits and vegetables. Never the
one to overlook an opportunity, Bere became a leading promoter oflarge-unit, price-saving selling. While almost every other retailerconcentrated on the traditional pint container, Bere sold value-priced blueberries in 10-pound boxes whose sales experienced dra-matic changes in tonnage and dollar sales.
Blueberry marketing was basically static until the last decadeand a half, when the combination of globalization and categorymanagement, coupled with nutritional importance, helped trans-form the industry. In 1970, production of thethen summer-seasonal item reached approxi-mately 100 million pounds; very few blueber-ries from the southern hemisphere reachedU.S. shelves in the winter.
In 1992, worldwide volume had grown to250 million pounds, but it had taken nearly aquarter century to reach this milestone. By2007, production had nearly doubled to 500million pounds, and it is projected to reach animpressive 800 million pounds by 2012.Expanded acreage in both former producingcountries and new worldwide growing areasthat previously never had blueberry plantingshave contributed to this production gain.
Michigan has historically been the largestproducer of blueberries, doubling its acreageover the last quarter century and ending 2007with more than 19,000 acres. However, Chilehas surpassed that number, reaching 22,700acres. South American blueberries importedinto the United States from October to April,along with expanding acreage in Florida and Georgia, provide ade-quate supplies during this timeframe. The Northern states haveindirectly supplied the balance of the year. The Pacific Northwestacreage expansion for late-summer selling meets the pent-up, non-traditional demand.
The growth of blueberry market penetration represents analmost perfect confluence of events during the past severaldecades. Not the least of these was the increasing affluence of alarge percentage of U.S. consumers coupled with the desire toaccess berries’ nutritional benefits.
At a super store opening with a wide consumer demographicduring the mid-’80s, May retails were triple to quadruple peak-sea-son pricing. It was amazing to watch the quantity of blueberriespurchased during the start of the U.S. production year. In the con-
sumers’ mind, blueberries had finally achieved a place in thehousehold budget.
A decade later, California strawberry marketers recognized twochallenges. The first was how to expand strawberry availability toyear-round prominence and the second was to determine if straw-berries could be developed into a significant category that justifiedmeaningful year-round display space that would keep the productprominently in the consumers’ view.
Large strawberry marketers were not the only group to becomeimporters; U.S. blueberry organizations also expanded their globalreach. Both developed business plans that supplied sufficient prod-uct year-round in order to satisfy continual contact with buyers andtheir consumers.
Simultaneously, big-box club stores with anemphasis on larger size packaging at lower unitprice points than those predominantly found inconventional supermarkets were important tothe sales of increased tonnage. While conven-tional supermarkets continued concentratingon 4.4-ounce and pint-size clamshells, clubstores focused on offering 12- , 18- and 32-ounceunits to value-oriented consumers.
Conventional supermarkets’ limited market-ing response to larger-size packages, especiallynear the seasonal supply peaks as a way toincrease sales and profits, has been a majorsurprise. This may reflect the majority ofsupermarket operators being slow to adopt andpromote the 2-pound strawberry unit.
Perhaps better than those of any other com-modity in recent years, blueberry marketershave addressed and continually are addressingthe increase in worldwide production volume.In the current era of grower-input cost increas-es and fuel-surcharge acceleration, forward
planning is necessary to effectively market the increased produc-tion so everyone in the distribution chain continues to profit.
Plans are being made to ship blueberries in a standard 6-ounceclamshell from South America as seasonal volume warrants. Thisseemingly small increase will account for a nearly 40 percentexpansion of sales and tonnage based on the purchase of a similarnumber of consumer packages. Satisfying growing consumerdemand will also continue to create sustainability for grower opera-tions and success for retailers.
What other commodities have been as successful recently with aresponsive marketing program satisfying consumer demand, grow-er profitability and contribution to retailers? This program providesa blueprint for any marketing group competing in the changingglobal environment. pb
By Dave DiverRETAILPERSPECTIVE
The growth of blueberry
market penetration
represents analmost perfect confluence ofevents during
the past severaldecades.
N O V E M B E R 2 0 0 8 • P R O D U C E B U S I N E S S 101
EUROPEANMARKET
Q & A WithPhilippe Binard
Q: How did the Pan-European School Fruit Scheme evolve?What was the impetus for developing the European-widescheme to provide free fruit and vegetables to schoolchildren?
A: Across Europe, consumption was at best stagnating, and therewas an obvious need to explore any efforts that could stimulate con-sumption. It is important to address consumption during theseimpressionable early childhood years. Trying to get the youngestused to eating fresh product — tastes they don’t know or unfamiliarvarieties — could change their diet and eating habits long term. InEurope, as in America, the level of overweight and obesity amongchildren has been growing, already reaching close to epidemic levels.
There was a greater consciousness among public authorities thatthose who set agriculture policy could take some action. This was ashift in mentality to recognize policy dealing with agriculture couldalso have health impacts on citizens — acceptance at the EuropeanCommission level and for the Directorate-General for Agricultureand Rural Development to believe their action could also contributeto the health of European citizens.
Q: What role does Freshfel play in shaping the program?A: We believe it is about time to have this action implemented.
In the past, we have noted action at regional and local levelsappearing successful in their measured impact. Unfortunately,these programs are small scale in terms of geographic coverage orbudget, not allowing for long-term projects.
Q: Could you provide some examples of these programs?A: The most spectacular one in the United Kingdom has been
securing on a daily basis a piece of fruit for young children in the 4-to-6 or 6-to-8 range, delivering one piece of fruit to each child fivedays a week for three or four years.
Q: Is there any interest in merging successful strategiesacross countries?
A: It makes sense as part of the European umbrella to insure con-sistency, facilitate exchange of best practices and provide greaterawareness. A European umbrella makes it easier to show the gov-ernment in a country where such a program is not seen as a priorityhow it could become a project worth implementing with Europeansupport. We have been supportive from the beginning, lobbying tothe Commission. In the first week of July 2008 they launched a pro-posal and while not yet adopted, at least it’s underway.
Q: What needs to be done to get this scheme adopted? A: For the moment it’s just a proposal. The objective is to see if
what the European Commission is proposing is acceptable. The pro-posed system of co-financing would have the European Commissionprovide 50 percent — and in some countries 75 percent — of the bud-get to supply and distribute the product. This funding should coverthe value of the product plus the cost of distribution. The memberstates should cover the remaining part by taking either the 50 per-cent or the poorest countries only 25 percent.
In order to have a program eligible, it is important that member
states claiming to get the money will introduce some accompany-ing measures to increase consumption. The concept that it will justbe fruit made available is not what the Commission is willing to do.The program will need a promotion measure, educational plan orpsychological element. Some kind of communication is importantto reinforce just making the fruit available.
There is still an element of discussion before finalization of theproposal. There are no details on top of that obligation of monitor-ing to make sure the program is effective. There should be somekind of evaluation before intervention starts and at the end to seewhether the measure has had any impact.
Once the proposal is adopted, before the legal text, there is aneed to make implementation rules and try to explain technicallyhow that will work in practice — what kinds of fruits and vegetablesare in the scheme, should some be out because they are carryingsome sugar or salt, maybe further definition on scope. Then I sup-pose additional rules on good functioning of the program, maybe theCommission will just give flexibility in the scheme. If you look athow schools work — some canteen, some not, some have foodser-vice companies deliver, some don’t operate in the afternoon, somedo not allow vending machine distributing. There are so many for-mats. A call for a national strategy must adjust to local realities.
Q: Is there debate regarding the budget?A: The idea for the budget went like this: The European Union’s
total budget for the national scheme within the E.U. framework was€156 million, out of which €90 million would be E.U. money. Mem-bers eligible for E.U. funding would make a national contribution tocover the balance.
Discussions have been taking place: whether we should skip thenational contribution and boost the E.U.’s contribution to €156 mil-lion to simplify the scheme. This way member states not consider-ing the program as a priority will still do it.
The Parliament would consider €156 million is not enough, andthe program needs €300 million or €350 million to make it success-ful from the beginning. There is lobbying going on.
Q: What is your view?A: Our estimation is that for smaller children to receive one
piece of fruit every day for 30 weeks, you would need close to €900million, so the figure 300 is not a big surprise.
If we compare the cost of obesity in Europe, what is €300 mil-lion? This is where agriculture policy could have a big benefit. It isalways difficult to make the link from savings in one pocket to sav-ings in another pocket. If we don’t act today, the problem will getworse, especially if younger children don’t get used to the flavors offruits and vegetables and begin eating more produce.
A lot of studies show you get used to a taste when you’re young.Once children are becoming teenagers, it is much more difficult.
From an interview by Mira Slott in Jim Prevor’s Perishable Pundit — Oct. 17, 2008
Philippe Binard is the secretary general of Freshfel
Europe, the European associationof fresh produce, importers,
exporters, wholesalers, distributorsand retailers, based in
Brussels, Belgium
This is the first part of a 2-part interview.
P R O D U C E B U S I N E S S • N O V E M B E R 2 0 0 8102
A & L Potato Company, Iinc. . . . . . . . . . . . . . . . . . . . 62 ....................26 ....................800-365-5784 ..............218-773-1850A&A Organic Marketing, Inc. . . . . . . . . . . . . . . . . . . . 82 ....................61 ....................831-685-0303 ..............831-685-0302Agrexco USA, Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 ....................64 ....................718-481-8700 ..............718-481-8710Albert's Organics . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 ....................13 ....................800-996-0004 ..............610-444-0316Apache Produce / Melones International . . . . . . . . . . 23 ......................2 ....................520-281-2282 ..............520-761-1829Associated Potato Growers, Inc. . . . . . . . . . . . . . . . . 62 ....................22 ....................800-437-4685 ..............701-746-5767Awe Sum Organics, Inc.. . . . . . . . . . . . . . . . . . . . . . . 82 ....................51 ....................831-462-2244 ..............831-462-2552Bland Farms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 ....................73 ....................800-843-2542 ..............912-654-3532Blue Book Services. . . . . . . . . . . . . . . . . . . . . . . . . . . 77 ....................87 ....................630-668-3500 ..............630-668-0303Bonita . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 ....................82 ....................718-816-9330 ..............718-556-8457Booth Ranches, LLC. . . . . . . . . . . . . . . . . . . . . . . . . . 75 ......................4 ....................559-626-7653 ..............559-626-4818Brooks Tropicals . . . . . . . . . . . . . . . . . . . . . . . . . . 80-81 ....................71 ....................800-327-4833 ..............305-246-5827Canadian Produce Marketing Association . . . . . . . . . 94 ....................56 ....................613-226-4187 ..............613-226-2984Canon Potato Company, Inc. . . . . . . . . . . . . . . . . . . . 60 ....................20 ....................719-754-3445 ..............719-754-2227Capital City Fruit Co., Inc. . . . . . . . . . . . . . . . . . . . . . . 62 ....................11 ....................515-981-5111 ..............515-981-4564CF Fresh . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 ....................69 ....................360-855-3192 ..............360-855-2430Chilean Avocado Importers Association . . . . . . . . . . 31 ....................46 ....................202-626-0560Christopher Ranch . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 ....................59 ....................408-847-1100 ..............408-847-0581Classic Salads, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . 79 ....................62 ....................831-763-4520 ..............831-763-1542Classic Yam . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 ....................89 ....................209-394-8656 ..............209-394-8714Coosemans Atlanta, Inc. . . . . . . . . . . . . . . . . . . . . . . 89 ....................29 ....................404-366-7132 ..............404-366-7058Curry & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 ......................3 ....................503-393-6033 ..............503-393-6085DeBruyn Produce Co.. . . . . . . . . . . . . . . . . . . . . . . . . 48 ....................74 ....................800-733-9177 ..............616-772-4242Del Monte Fresh Produce. . . . . . . . . . . . . . . . . . . . . 104 ....................54 ....................800-950-3683 ..............305-520-8495Dole Fresh Fruit Company . . . . . . . . . . . . . . . . . . . . . . 2 ....................45 ....................818-879-6600 ..............818-879-6628dProduce Man Software. . . . . . . . . . . . . . . . . . . . . . . 94 ....................52 ..................888-PRODMAN ..............650-712-9973Driscoll Strawberry Associates, Inc. . . . . . . . . . . . . . 84 ......................1 ....................831-763-5000 ..............831-761-5988Duda Farm Fresh Foods, Inc. . . . . . . . . . . . . . . . . . . . 73 ....................16 ..................866-792-DUDA ..............561-978-5705Earth Source Trading . . . . . . . . . . . . . . . . . . . . . . . . . 52 ....................49 ....................888-518-8502 ..............717-721-2589Earthbound Farm . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 ....................58 ....................888-624-1004 ..............831-623-7886East Coast Brokers & Packers, Inc. . . . . . . . . . . . . . 103 ....................36 ....................800-557-7751 ..............863-869-9850Edinburg Citrus Association. . . . . . . . . . . . . . . . . . . . 74 ....................25 ....................956-383-6619 ..............956-383-2435Eli & Ali, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 ....................44 ....................866-354-2547 ..............718-389-1514Eurofresh Farms, Ltd.. . . . . . . . . . . . . . . . . . . . . . . . . 25 ....................27 ....................520-384-4621 ..............520-384-4187European Flavors/CSO . . . . . . . . . . . . . . . . . . . . . . . . 21 ....................75 ................39-0532-904511 ..........39-0532-904520Fidelity Fruit & Produce Co. . . . . . . . . . . . . . . . . . . . . 89 ....................32 ....................404-366-8445 ..............404-361-2279Florida Nursery, Growers &
Landscape Association. . . . . . . . . . . . . . . . . . . . . . 99 ....................18 ....................800-375-3642 ..............407-295-1619The Florida Tomato Committee . . . . . . . . . . . . . . . . . 28 ....................76 ....................407-894-3071 ..............407-898-4296Fresh Partners AB . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 ....................88 ..................46-8-742-1215 ............46-8-742-6201Fresh Produce Association of The Americas . . . . . . . 40 ....................28 ....................520-287-2707 ..............520-287-2948Fruit Logistica. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 ......................5 ....................540-372-3777 ..............540-372-1414G&D Wallace, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 ....................31 ....................360-757-0981 ............360-757-SPUDGarber Farms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 ....................77 ....................337-824-6328 ..............337-824-2676Garden Fresh Distribution Service, Inc. . . . . . . . . . . . 44 ....................78 ....................954-941-2910 ..............609-582-6803General Produce, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . 87 ....................79 ....................800-782-5833 ..............404-361-1841Global Organic Specialty Source, Inc. . . . . . . . . . . . . 85 ....................10 ....................877-952-1198 ..............941-358-6551
Habelman Bros. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 ....................19 ....................715-422-0410 ..............715-422-0406Herb Thyme Farms. . . . . . . . . . . . . . . . . . . . . . . . . . . 83 ....................30 ....................831-476-9733 ..............831-476-3710Idaho Potato Commission . . . . . . . . . . . . . . . . . . . . . 55 ....................24 ....................208-334-2350 ..............208-334-2274International Herbs, Ltd.. . . . . . . . . . . . . . . . . . . . . . . 83 ....................40 ....................604-576-2345 ..............604-574-3689J & J Produce. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 ....................66 ....................561-422-9777 ..............561-422-9778J J Jardina Company, Inc. . . . . . . . . . . . . . . . . . . . . . 90 ....................63 ....................404-366-6868 ..............404-366-1386Kern Ridge Growers, LLC. . . . . . . . . . . . . . . . . . . . . . 84 ....................53 ....................661-854-3156 ..............661-854-2832Lakeside Organic Gardens . . . . . . . . . . . . . . . . . . . . . 85 ....................91 ....................831-761-8797 ..............831-728-1104LGS Specialty Sales, Ltd. . . . . . . . . . . . . . . . . . . . . . . 33 ......................8 ....................800-796-2349 ..............718-542-2354Maine Potato Board . . . . . . . . . . . . . . . . . . . . . . . . . . 64 ....................23 ....................207-769-5061 ..............207-764-4148Mann Packing Company, Inc.. . . . . . . . . . . . . . . . . . . . 9 ....................70 ....................800-884-6266 ..............831-422-5171The Marketsol Group, LLC . . . . . . . . . . . . . . . . . . . . . 56 ....................72 ....................956-782-9933 ..............956-782-9937T. Marzetti Company. . . . . . . . . . . . . . . . . . . . . . . . . . 35 ....................21 ....................614-846-2232 ..............614-842-4186Mayrsohn International Trading Co., Inc. . . . . . . . . . . 44 ....................80 ....................305-470-1444 ..............305-470-1440Melissa's/World Variety Produce, Inc. . . . . . . . . . . . . 84 ....................81 ....................800-468-7111 ..............323-588-7841Miatech. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 ....................50 ....................800-339-5234 ..............503-659-2204Misionero Vegetables. . . . . . . . . . . . . . . . . . . . . . . . . 82 ....................41..................800-EAT-SALAD ..............831-424-0740MIXTEC Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 ......................6 ....................626-440-7077 ..............626-440-1557Mother Earth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 ....................14 ....................610-869-7211 ..............610-869-4729National Mango Board . . . . . . . . . . . . . . . . . . . . . . . . 41 ....................37..................877-MANGOS-1 ..............407-629-7593New Harvest Organics, LLC . . . . . . . . . . . . . . . . . . . . 83 ....................60 ....................520-281-0231 ..............520-281-0237Northern Plains Potato Growers Assn. . . . . . . . . . . . 63 ....................17 ....................218-773-3633 ..............218-773-6227Nunhems USA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 ......................7 ....................800-733-8505 ..............208-674-4005Ozonator LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 ....................43..................877-678-FRESH ..............760-862-2673P.E.I. Potato Board . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 ....................12 ....................902-892-6551 ..............902-566-4914Pacific Fruit Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 ....................82 ....................718-816-9330 ..............718-556-8457Peri & Sons Farms . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 ....................55 ....................775-463-4444 ..............775-463-4028Peruvian Asparagus Importers Association . . . . . . . . 47 ....................83 ....................610-284-0326Plain Jane. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 ......................2 ....................520-281-2282 ..............520-761-1829Produce Exchange Co. of Atlanta, Inc. . . . . . . . . . . . . 90 ....................33 ....................800-480-4463 ..............404-608-0401Produce for Better Health Foundation . . . . . . . . . . . . 17 ....................39 ....................302-235-2329 ..............302-235-5555Sage Fruit Company. . . . . . . . . . . . . . . . . . . . . . . . . . 59 ....................67 ....................913-239-0060 ..............913-239-0055Shuman Produce, Inc. . . . . . . . . . . . . . . . . . . . . . . . . 49 ....................38 ....................912-557-4477 ..............912-557-4478Stemilt Growers, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . 85 ....................65 ....................509-662-9667 ..............509-663-2914Sunfed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 ....................84 ..................866-4-SUNFED ..............529-761-1446Sunlight Int'l. Sales . . . . . . . . . . . . . . . . . . . . . . . . . . 39 ....................34 ....................661-792-6360 ..............661-792-6529Sunrise Logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 ....................49 ....................888-518-8502 ..............717-721-2589Sweet Onion Trading Company . . . . . . . . . . . . . . . . . 50 ....................47 ....................800-699-3727 ..............321-674-2003Tanimura & Antle, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . 5 ....................15 ....................800-772-4542 ..............831-455-3915Thermal Technologies, Incorporated . . . . . . . . . . . . . 67 ....................57 ....................803-691-8000 ..............803-691-8010Torrey Farms, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 ....................90 ....................585-757-9941 ..............585-757-2528Turbana Banana Corp . . . . . . . . . . . . . . . . . . . . . . . . . 70 ....................68 ....................800-TURBANA ..............305-443-8908Uncle Matt's Organic . . . . . . . . . . . . . . . . . . . . . . . . . 85 ......................9 ....................866-626-4613 ..............352-394-1003United Fresh Produce Association . . . . . . . . . . . . . . . 15 ....................35 ....................202-303-3400 ..............202-303-3433Vessey & Company, Inc. . . . . . . . . . . . . . . . . . . . . . . 65 ....................85 ....................888-505-7798 ..............760-356-0137Weis-Buy Farms, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . 65 ....................86 ....................239-433-3530 ..............239-433-3773Well-Pict Berries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 ....................48 ....................831-722-3871 ..............831-722-6340
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COMPANY PAGE # RS# PHONE FAX COMPANY PAGE # RS# PHONE FAXNOVEMBER 2008
In the 1920s, Eugene Harden formed E.E. HardenPacking Co., which later became Harden Farms of Cali-fornia and then Harden Farms, Inc., a Salinas,CA-based grower that worked primarily with ice-berg lettuce, carrots, cauliflower and celery.
In this 1936 photo, women trim outer lettuceleaves while men pack trimmed lettuce heads intowooden crates at the Harden packing shed located ata string of sheds owned by the Growers Ice and Devel-opment Co., Salinas. “The wax sheets [seen in the
upper right of the photo] were placed over the packed crates prior to top-icing thecrate to prevent freezer burn,” notes Burton Anderson, agricultural historian andauthor of Grower-Shipper Association of Central California, A Special Edition Celebrat-ing 75 Years of Service, 1930-2005.
“The women and packers wore rubber gloves to protect their hands, but hairnets were not common or required at this time,” Anderson adds. “Today, workerswould be wearing hair nets and/or hard hats, and in salad plants, they would bewearing white uniforms.”
Blast from the
Past
The Blas t f rom the Pas t i s a regu la r f ea ture o f PRODUCE BUSINESS . We we lcome submiss ions o f your o ld photos , l abe l s o r adver t i sements a long wi thsugges ted cap t ions. P lease send mater ia l s to : Ed i to r, PRO D U C E B U S I N E S S , P.O. Box 810425 , Boca Ra ton , FL 33481 -0425 , o r e -ma i l in fo@producebus iness . com
Rea
der
Ser
vice
# 3
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With the proper blend of the best of tradition and state-of-the-art technology, we take great pride in providing our customers with the very best tomatoes.
Year-round—from Pallet to Plate, the choice is clear.
Batista Madonia Jr. Sales Manager
Batista Madonia Sr. President & CEOEvelyn M. Madonia, Executive Vice President/Secretary-Treasurer
Stephen Madonia All Growing Operations
GROWERS • PACKERS • BROKERS • SHIPPERS
800-557-7751 or 863-425-3500 • Fax: 863-869-9850
Rosemary Madonia, Comptroller
