trends in u.s. fresh produce marketing dr. roberta cook dept. of ag and resource economics...
TRANSCRIPT
Trends in U.S. Fresh Produce Marketing
Trends in U.S. Fresh Produce Marketing
DR. ROBERTA COOKDept. of Ag and Resource Economics
University of California Davis
Fresh Produce and Floral Council Luncheon
September 2004
$498.3 billion food retailing (excluding non-food grocery store sales)
53% of total $445 billion food service (including
$17.8B foodservice sales made by food retailers)
47% of total around 844,000 outlets
TOTAL 2003 U.S. FOOD* SYSTEM: $943.3 BILLION
*Excludes alcoholic beverages and other grocerySources: ERS/USDA and The Food Institute
10.2
3.6
9.1
4.3
7.7
4.3
7.5
4.3
7.4
4.3
7.2
4.3
7.2
4.3
7.3
4.3
7.4
4.2
7.0
4.2
6.8
4.3
6.9
4.4
6.7
4.3
6.6
4.2
6.7
4.4
6.6
4.4
6.2
4.1
5.4
4.7
5.5
4.7
5.4
4.7
5.4
4.7
70 85 87 89 91 93 95 97 99 2001 2003
Source: ERS/USDA
At-home Away-from-homeAt-home Away-from-home13.413.4
12.012.0 11.711.711.511.5 11.511.511.611.611.611.6 11.211.211.111.1 11.311.3 11.011.010.810.811.111.1 11.011.0 10.310.3
11.8
13.813.8
10.110.110.210.2
U.S. FOOD EXPENDITURES as a SHARE
of DISPOSABLE PERSONAL INCOME, 1970-2003
10.110.1 10.110.1
11
,57
4
9,6
32
9,6
99
9,4
17
9,8
14
11
,13
1
12
,50
3
13
,26
6
16
,86
3
15
,00
6
12
,89
3
12
,39
8
10
,30
1
8,1
83
0
5,000
10,000
15,000
20,000
25,000
1988 1990 1991 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
NonfoodFood
Source: The Food Institute Report, 2-2-04; Column totals in white represent combined food and nonfood new product introductions.
19,458
16,56216,695
18,04319,331
20,076
17,56616,143
13,244
10,558
19,572
22,572 22,374
U.S. Grocery Industry New Product Introductions, 1988-2003
23,181
3.2% 3.4%
4.6% 4.3%3.8% 3.9%
0%1%2%3%4%5%
Food At Home Food AwayFrom Home
Total
1990-2000 2001-2010
Trends in US Food Expenditures
CAGR
Source: ERS/USDA 2004
US Foodservice Segment Shares, 2003
8%
37%
3%
36%
4%
4%
6%
Fast- food Full- Service Restaurant
Retail store Other Commercial
Education Recreation
Other Noncommercial Hotel/motel
Full-Service Restaurant
Fast-Food1%
Since 1992 consumer spending at restaurants is up 56%
Consumers are trading up, contributing to higher sales in full service restaurants and fast casual (like Baja Fresh, Chipotle, Panera)
Consumers search for VALUE, 62% say they are “willing to spend more time and money for better quality food.”
91% of consumers say “It’s worth it to wait a little for food customized to my liking.”
Foodservice fresh produce and fresh-cut demand rising.
FOODSERVICE OPPORTUNITIES FOR FRESH PRODUCE
1996
Source: FMI Trends in the Supermarket 2003, 2004
Sources of Takeout* Food in the US, Supermarkets Gaining!
2004
5%
1%35%
1%
27%18%
10%
Fast- food rest. Restaurant
Supermarket Other
Gourmet/specialty store C- Store
Don't know
25%12%
1%4% 48%
3%
6%
Fast-food rest.Fast-food rest.
RestaurantRestaurantSupermarketSuper-
market
*Takeout only, not all foodservice
US Estimated Fresh-cut Produce Sales, All Marketing Channels, $
Billion
Source: DoleSource: Dole
6.03.3
15.011.8
9.07.1
02468
10121416
1994 1997 1998 1999 2003 2005 Over 60% estimated to be sold via foodservice channels Sources: IFPA and IRI
$ billion
$4 plus at retail
U.S. Fresh Fruit and Vegetable Value Chain,
2002 Estimated Billions of Dollars institutional wholesalers food service
establishments
supermarkets and other
retail outletsconsumers
exports
farms shippers integrated wholesale-
retailers
produce and general-line wholesalers
farm & public markets
imports
$3.4$3.4$19.2$19.2
$5.9$5.9
$40.0$40.0
$81$81$39.7$39.7
Source: Estimated by Dr. Roberta Cook, UC Davis, based on numerous public and private sources
$1.3$1.3
415716 831 981 1,1691,3281,4771,671
2,0302,453
197
Source: IRI
U.S. SUPERMARKET FRESH-CUT
SALAD SALES, Million $
US Fresh-Cut Vegetable Facts
• Fresh-cut veggies represented 31% of all pre-packaged produce retail sales in 2003.
• Carrots were about half the $1.3 billion fresh-cut veggie category, followed by spinach ($108 million), potatoes ($87 million), celery ($85 million) and mixed vegetables ($69 million)
• 77% of consumers purchase fresh-cut veggies, but on average, only once every 9 weeks
Source: IRISource: IRI
US Fresh-Cut Fruit Facts • Fresh-cut fruit is still a small share of total fresh-cut
sales, retail sales were estimated by IRI at $238 million in 2002, with total fresh-cut sales (incl. foodservice) estimated at at least $600 million. Forecast by IRI to reach $1 billion by 2008. Household penetration of only 17% in 2003.
• Great potential for fruit in both retail and foodservice channels
• McDonald’s offering apple slices as alternative to French Fries in Happy Meals
• Quick-service restaurants and fast casual segment keep adding fresh produce, including fresh-cut
Supermarket Trips Per US Household Per Year
85 83 78 75 73 72
0
20
40
60
80
100
1998 1999 2000 2001 2002 2003
Source: Coca-Cola Retailing Research Council of N. America 2004
81%62%
54%31%
33%23%
Cereal
Paper Products
Nonprescriptiondrug
US Supermarket Share Continues to Decline for Key Grocery Categories
Source: FMI Trends in the US, Consumer Attitudes and the Supermarket, 2004
20042001
20042001
2004
2001
(% Shoppers Who Generally Buy That Item at the Supermarket)
Top Factors in US Consumer Selection
of Primary Supermarkets, 2004
88%
85%
80%
79%
74%
73%
72%
68%
66%
65%
65%
62%
Source: FMI Trends 2004
Items on sale or specialsStore layoutFast CheckoutPersonal safety outside the storeAccurate shelf tagsUse-before/sell-by-date markedConvenient locationCourteous/friendly employeesLow pricesHigh-quality meatHigh-quality fruit/veg.Clean, neat store
Quality of Shopping Experience by Channel, TRI*M Index (Differences of 3 or more are
signficant)
Warehouse Club, 101
Limited- Assortment, 106
Dollar Store, 100
Supercenter, 93
Mass Merchandiser, 93
Supermarket, 91
Drug Store, 87
C- Store, 80
Source: Coca-Cola Retailing Research Council of N. America 2004
Quality of Shopping Experience by SUPERMARKET TYPE, TRI*M Index (Differences of 3 or more are
signficant)
Natural/Organic, 109
Total Supermarkets, 91
Upscale, 100
Main- Tier, 89
Price- Oriented, 96
Source: Coca-Cola Retailing Research Council of N. America 2004
US Store Format Growth Trends and 2003 Sales*
2003 Sales$Million
2003 #Stores
2003 $% Share
2008 $% Share
Traditional $422,791 41,530 56.3 48.3
Nontraditional $235,100 40,721 31.3 39.7
Total C-Stores $93,518129,00
0 12.4 12.0
GRAND TOTAL $754,408213,98
1 100.0 100.0•Grocery sales only, excludes electronics, prescription drugs, toys, jewelry, sporting goods, gas, clothing, footwear, knickknacks, and hardlinesSource: Competitive Edge, June 2004
US Store Format Growth Trends and 2003 Sales*Traditional Grocery Channel
2003 Sales$Million
2003 #Stores
2003 $% Share
2008 $% Share
Total Traditional $422,791 41,530 56.3 48.3
Conventional $97,110 12,450 12.9 11.6
Superstore $164,268 8,100 21.9 18.5
Food/Drug Combo $114,400 5,000 15.2 13.1
Limited Assortment $16,107 3,150 2.1 2.1
Super Warehouse $14,331 530 1.9 1.6
Other (Small Grocery) $16,575 12,500 2.2 1.5
* Grocery sales only, excludes electronics, prescription drugs, toys, jewelry, sporting goods, etc.Source: Competitive Edge, June 2004
US Store Format Growth Trends and 2003 Sales*
Traditional Grocery Channel
* Grocery sales only, excludes electronics, prescription drugs, toys, jewelry, sporting goods, etc.Source: Competitive Edge, June 2004
Total Store Area
Average Total SKUs
AverageWeekly Sales $
Grocery & Consumab
les % of Sales
Total Traditional 195,777 100
Conventional 25,800 22,000 150,000 100
Superstore 51,200 30,000 390,000 100
Food/Drug Combo 55,700 52,000 440,000 100
Limited Assortment 11,200 1,900 98,333 100
Super Warehouse 59,500 33,000 520,000 100
Other (Small Grocery) 9,000 3,000 25,500 100
US Store Format Growth Trends and 2003 Sales*Nontraditional Grocery Channel
2003 Sales$Million
2003 #Stores
2003 $% Share
2008 $% Share
Total Nontraditional $235,100 40,721 31.3 39.7
Wholesale Club $51,953 1,030 6.9 8.7
Supercenter $85,155 1,840 11.3 17.0
Dollar Store $10,686 15,000 1.4 2.9
Drug $33,189 18,500 4.4 5.2
Mass Merchandise $49,873 4,170 6.6 5.3
Military $4,243 181 0.6 0.6* Grocery sales only, excludes electronics, prescription drugs, toys, jewelry, sporting goods, etc.Source: Competitive Edge, June 2004
US Store Format Growth Trends and 2003 Sales*
Nontraditional Grocery Channel
Total Store Area
Average Total SKUs
AverageWeekly Sales $
Grocery & Consumab
les % of Sales
Total Nontraditional 124,466
Wholesale Club 135,000 5,500 970,000 59**
Supercenter 190,000 125,000 890,000 60**
Dollar Store 8,000 4,000 13,700 66
Drug 12,000 20,000 34,500 34
Mass Merchandise 100,000 95,000 230,000 23**
Military 29,400 15,000 450,800 100
* Grocery sales only, excludes electronics, prescription drugs, toys, jewelry, sporting goods, etc.** Does not include gasoline salesSource: Competitive Edge, June 2004
SUPERCENTER INDUSTRY SALES and UNITS, 1993-2007, (About 35-40% estimated to be grocery-
equivalent)
305
419 592
708
816
951
1,5
73 1
,971
1,3
01
2,4
57
2,2
12
1,7
77
1,0
93
2,7
12
2,9
87
$132$117
$98$84
$72$52
$41$34$26$16$13
$153$175
$228
$200
0
500
1,000
1,500
2,000
2,500
3,000
93 94 95 96 97 98 99 00 01 02 03* 04* 05* 06* 07*
$0
$50
$100
$150
$200
$250Units Sales (billions)
un
its
Sales
*forecastSource: The Food Institute’s Food Industry Review 2003
Domestic and International U.S. Membership Club Sales and Unit Growth Slowing, 1993-2007, (61% estimated to be grocery-equivalent)
1,1481,2101,3201,3701,420
1,270
1,078
886932
845786 822805
989
728
1051019691
37 40 41 46 48 5460 67
74 8087
0
200
400
600
800
1,000
1,200
1,400
1,600
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
*
2004
*
2005
*
2006
*
2007
*
$0
$20
$40
$60
$80
$100
$120Units Sales (billions)
un
its
Sales in $ billion
*forecastSource: The Food Institute’s Food Industry Review 2003
Competing in a Value-Driven Market
• Channel blurring has caused the retail landscape to be overstored.
• Plus, foodservice channels compete with all forms of food retailing which tend to offer ingredients to prepare instead of meals to eat.
• Retail Home Meal Replacement helping somewhat and fresh produce value-added products benefiting.
Competing in a Value-Driven Market
• Grocery retailers have been losing share to foodservice for decades, now to value retailers
• Conventional grocery retailers must identify value propositions they can own if they are to remain competitive! (fresh produce can be a point of differentiation)
• Bottom line: more structural change expected in the US grocery industry and more pressure on suppliers!
The Revealing PercentagesConven’l Super Disc. ClubGrocery Center Drug Store
Gross 25.3 25.0 20.0 11.0Oper Exp 21.8 17.5 16.0 7.5
Net Margin 3.5 7.5 4.0 3.5 (Before taxes)
Source: Glen Terbeek
U.S. FOOD BUSINESS MERGERS & ACQUISITIONS
1981-2003
666
588645
583
658724
599652
556
415365
468485522529
538
734
813753
641
516
413415
1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003
Source: The Food Institute’s Food Industry Review, 2003
Percent of U.S.
grocery store sales
0
10
20
30
40
50
60
70
1987 1993 1995 1997 1999 2001 2003
Top 4
Top 8
Top 20
U.S. Grocery Retail Concentration*
Source: Phil Kaufman,ERS/USDA; US Retail Census
33
4758
*Includes grocery-equivalent supercenter sales ONLY. Excludes sales of c-stores with gas. Excludes the portion of any grocery chain’s sales corresponding to their drug store, jewelry store or other non-grocery store sales.
U.S. Fruit and Vegetable Supply-SideMarketing Structure Becoming Less Fragmented, 2002
Fruit, berry and nut farms* 26,571Vegetable and melon farms* 15,355
Number of fresh shippers 5,000Total chains, grocers, wholesalers 1,079Retail chains 267Produce wholesalers 188*Selling over $50,000/yr.; Total of 107,707 fruit, berry, nut farms and
59,044 total vegetable and melon farms, all sizes – US 2002 Census of Ag
Stock Price Performance, Top 5 US Stock Price Performance, Top 5 US Grocery RetailersGrocery Retailers
1/1/99 – 2/23/041/1/99 – 2/23/04
Chain % Change
Wal-Mart + 48%
Kroger -32%
Safeway -61%
Albertson’s -57%
Ahold -75%
Dow +15%
Wal-Mart 9.04% 3.48% 2.60
Kroger 5.18% 1.96% 2.64
Safeway 1.61% 0.78% 2.06
Albertson’s 4.11% 1.74% 2.36
Return on Asset Comparison, Top 4 US Return on Asset Comparison, Top 4 US Grocery RetailersGrocery Retailers
ROA = Profit/Sales X Sales/Assets
• The experience from the merger trend of the late 1990’s has shown that getting bigger wasn’t enough to meet the new competitive benchmark imposed by Wal-Mart’s success in logistics, data management and cost reduction.
• President of Safeway just announced a move to net, net pricing, moving away from allowances, following on the Wal-Mart model. But, as always, fresh produce lags grocery.
Conventional Retail Chains Reconsidering their Models
• The challenge for retailers is to effectively utilize scanner, customer loyalty card and other data in order to identify the right product mixes at the individual store level.
• Food retailing is inherently local, and as retailers get larger and consumers more diverse, intensive data management is critical!
Conventional Retail Chains Reconsidering their Models
The FutureWal-Mart will be the mainstream retailer for the foreseeable future but there will also be lots of new winners.
New price driven retailers will increase competition for Wal-Mart and Wal-Mart’s growth may slow as it tackles issues faced with expansion in urban areas (high land costs, unions, local regulatory policies).
Consumer research conducted by The Hartman Group indicates that consumers don’t express excitement or devotion about shopping at Wal-Mart. Many just view it as a way to save on staples without taking over their shopping lives. Lukewarm support creates opportunities for competitors.
The FutureThe winners will compete on various dimensions of value: price, product, service, and selection.
There are a number of formats successfully defining “white space” market opportunities. Examples include Trader Joe’s, Whole Foods, Dollar Stores, and conventional chains like Wegman’s and HEB, as well as independents.
Retailers can deliver value to consumers at both the high and low ends of the price spectrum, depending on product selection and quality levels, and format design, by understanding the needs and wants of target segments for specific shopping occasions.
The middle, unclearly defined ground – retailers with no clear value proposition – will be increasingly challenged.
• “Quality is yesterday’s news. Today we focus on the emotional impact of the product.” (Dilbert comic strip)
• Research from Cornell and U of Colo. show that income level is positively associated with experiential over material possessions. (Van Boven and Gilovich)
• Ego – Starbuck’s – an affordable luxury for all income levels
Products Distinguishing Themselves More Through Aesthetics, Adding Emotional Value to
Practical Use – Food Especially!
• Travel; eating out, increasingly in restaurants providing more memorable experiences; and differentiated foods purchased at retail are gaining. “Upscale” positioning may be bundled with several perceived emotional values - organics benefit. Fresh produce is a part of the trend.
• But, to afford these “extras” people are often making a greater effort to economize in their routine grocery purchases, hence, growth in value retailers.
Products Distinguishing Themselves More Through Aesthetics, Adding Emotional Value to
Practical Use – Food Especially!
Consumers are Becoming More Eclectic: Unabashed Wal-Mart Shopper Speaks
The writer found a brown stretch top with a ruffle drizzling down the V- neck, for about $9, and jeans made of two-inch-wide strips of washed corduroy, denim and a blue lace print, reminiscent of Dolce & Gabbana, $17.98, at Wal-Mart. She wore them with Celine platforms, $420.
Adapted from Food Marketing Institute 2002
Value Propositions and Needs! This also applies to food. Flavor Density re calories.
EATING OCCASIONS MATTER!
US PER CAPITA VEGETABLE CONSUMPTION, POUNDS, 1976-2004F
0
50
100
150
200
250
300
350
400
450
1976 1987 1989 1991 1993 1995 1997 1999 2001 2003
ProcessedVegetables
ProcessedPotatoes
FreshPotatoes
FreshVegetables
Source: USDA/ERS, Vegetables and Specialties Outlook, July 2004
Pou
nd
s p
er
cap
ita
17646
90
126
438
359
115150
119
76
49
‘04
(Excl. potatoes)
US PER CAPITA FRUIT CONSUMPTION, POUNDS 1976-2002
0
50
100
150
200
250
300
1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002
ProcessedCitrus
ProcessedNoncitrus
FreshCitrus
FreshNoncitrus
Source: USDA/ERS, Oct. 2003
Pou
nd
s p
er
cap
ita
28387
96
2476
264
5529
78
102
0%20%40%60%80%
'96 '97 '98 '99 '00 '02 '03 '04
very concerned about nutritional content
my diet could be healthier
Shoppers’ concern about nutritional content
and evaluation of diet
4562
Source: FMI Trends in the US Consumer Attitudes and the Supermarket 2004
Changes for healthier diet
Source: FMI US Consumer Trends and the Supermarket 2004
0%
20%
40%
60%
80%
100%
'96 '97 '98 '99 '00 '02 '03 '04
more fruits/vegetables
less fats/oils
less meats/ redmeats
less sugar
more poultry
more fish
more organic,natural
U.S. DEMOGRAPHIC INDICATORS, 2002
U.S. DEMOGRAPHIC INDICATORS, 2002
Sources: US Bureau of Census; Food Institute Demographics of Consumer Spending 2004 for food spending only
111.3 million households 289 million inhabitants 2.6 persons average household size Average household income of $57,852 Median household income of $42,409 Average household food spending of
$5,375 (including $3,099 at-home and $2,276 away-from-home)
SEGMENTATION/TARGET MARKETS• Variables commonly used to categorize consumer
differences to focus marketing activities– geographic– demographic– psychographic--based on attitudes & activities
• STATUS SEEKERS, CHASE & GRABITS, ENVIRONMENTALISTS
»Mass individualization!»Problem solving is key!»Understanding needs and constraints in individual eating occasions essential!
US Household Composition, 2002
Ave. Household Size: 2.5 People
US Household Composition, 2002
Ave. Household Size: 2.5 People
Source: Demographics of Consumer Food Spending 2004, The Food Institute
Husband & WifeHusband & Wife
Single ParentSingle Parent
SingleSingle
OtherOther
50%
6%29%
15%
Husband & Wife with Children
under 1819% of Total Households
Husband & Wife with Children
under 1819% of Total Households
$910 $1
,356
$855
$1,1
88
$876
$754
$546$1
,240
$1,5
58
$1,1
99
$1,4
72
$1,2
44
$1,1
08
$937
Average One Two OrMore
Two Three Four Five OrMore
U.S. Per Capita Food Expenditures, 2002, by household size – Small households
spend more per capita!
U.S. Per Capita Food Expenditures, 2002, by household size – Small households
spend more per capita!
Source: Demographics of Consumer Food Spending 2004, The Food Institute
Food at homeFood at home Food away from homeFood away from home
$70,000+23%
<$15,00021%
$50,000-69,999
15% $30,000-49,999
22%
$15,000-29,999
21%
Source: Demographics of Consumer Food Spending 2004, The Food Institute
Source: Demographics of Consumer Food Spending 2004, The Food Institute
% of total at home food expenditures contributed by
each income group
% of total at home food expenditures contributed by
each income group
Average fresh produce expenditures per income
group $
Average fresh produce expenditures per income
group $
$520 /32%$520 /32% $235 /13%$235 /13%
$303 /18%$303 /18%$342/21%$342/21%
$384 /16%$384 /16%
DISTRIBUTION of US HOUSEHOLDS, SHARE of TOTAL AT HOME FOOD EXPENDITURES/INCOME LEVEL and FRESH
PRODUCE EXPENDITURES, 2002
DISTRIBUTION of US HOUSEHOLDS, SHARE of TOTAL AT HOME FOOD EXPENDITURES/INCOME LEVEL and FRESH
PRODUCE EXPENDITURES, 2002
Share of householdsShare of households
Consumer Food Expenditures, by Household
Income Level 2002
$0
$1,000
$2,000
$3,000
$4,000
$5,000
Food At Home: 2,116 $2,483 $2,768 $3,006 $3,241 $3,555 $4,524
Food Away From Home 1,034 $1,286 $1,581 $1,875 $2,261 $2,994 $4,350
<$15,000$15,000 - $19,999
$20,000 - $29,999
$30,000 - $39,999
$40,000 - $49,999
$50,000 - $69,999
$70,000 Plus
Source: Demographics of Consumer Food Spending 2004, The Food Institute
Source: Demographics of Consumer Food Spending 2004, The Food Institute
$184$181
$136$128
$242$247
White/Other
African-American
Hispanic
US Fresh Produce Consumption by Race
2002, $ Per Household
Source: Demographics of Consumer Food Spending 2004, The Food Institute
VegetablesFruits
Vegetables
Vegetables
Fruits
Fruits
U.S. Hispanic Population Projections,
Millions
38.2 43.7 49.3
0204060
2005 2010 2015
Source:US Bureau of Census
Hispanic Population Boom,
1%12%
11%4%
72%
HispanicAfrican- AmerAsiansOtherNon- Hisp. Whites
1%
14%
23%10%
52%
HispanicAfrican- AmerAsiansOtherNon- Hisp. Whites
2000(U.S. Census)
2050(Projected)
Conclusions
Streamlining the Distribution Channel
How best practice retailers are
using information: Identifying and merchandising product affinities associated with popular items.
Grooming vendor capability to provide useful insights.
Source:Willard Bishop Consulting, Ltd.
Streamlining the Distribution Channel
New tools using data-mining capabilities
are entering the market to provide:
Cost-effective consumer-centric business processesCustomer purchase patternsProduct promotions
Source:Willard Bishop Consulting, Ltd.
SHELF CAPTAINS• Leading, technologically savvy
vendors—sometimes brokers
• Take category interface responsibility for section
• May work in retailers’ headquarters
• Recommend shelf sets, product placement
• Very influential to category management
Basic Strategies for Shippers• Low-cost grower/shipper• Differentiated year-round grower/shipper marketing a
premium product or product with identifiable preferred characteristics that are commercially perceived and valued
• First strategy increasingly difficult as buyers push more demands and services upstream to suppliers
• Increasingly shippers must add value and at the lowest cost – need strong core competencies!
CONCLUSIONS: The Future?
• More and more, large year-round grower-shippers may become the sourcing entities for retailers, procuring volume above and beyond their own via geographic diversification, including imports.
• Smaller seasonal players will need to find niche markets.
60
Quantity Quantity
FlexibilityFlexibility
CostsCosts
Tracking andtracing
Tracking andtracing
Quality:• taste!• freshness• temperature • shelf-life• nutrition value• consistency
Quality:• taste!• freshness• temperature • shelf-life• nutrition value• consistency
Specific requirements• packaging• pallets• size• tailor-made
Specific requirements• packaging• pallets• size• tailor-made
On-time deliveryOn-time delivery
Shippers
Safety: microbialand pesticides
Safety: microbialand pesticides
Fierce competition places multiple demands on fresh produce suppliers while product perishability continues to limit bargaining power... So more
shipper/supplier consolidation to come!
Fierce competition places multiple demands on fresh produce suppliers while product perishability continues to limit bargaining power... So more
shipper/supplier consolidation to come!
Source: Adapted from Rabobank MexicoSource: Adapted from Rabobank Mexico