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7th Annual Green Issue

THE STATE OF SUSTAINABILITY In The Produce Industry By Jim Prevor, Editor-in-Chief

“THE LIVING SKYSCRAPER: FARMING THE URBAN SKYLINE” —BLAKE KURASEK Is this the FUTURE of produce production? EXCLUSIVE INSERT INSIDE:

NOGALES FLORAL BUSINESS DOLE Veg_Ad 8/22/13 9:54 AM Page 1 TOC_Layout 1 9/18/13 5:45 PM Page 1

SEPT 2013 • VOL. 29 • NO. 09 • $9.90

COVER IMAGE BY BLAKE KURASEK p.70    28 THE STATE OF SUSTAINABILITY 42 MARKETING PRODUCE TO KIDS IN THE PRODUCE INDUSTRY Expand your produce business by influencing the family rather than a single customer. In the long run, sustainability may turn out to be a win for producers because 70 FALL IS THE RIPE TIME TO PROMOTE AVOCADOS regardless of dictates from retailers or Explore the ways avocados have become a consumer favorite, and discover how government, only profitable operations the industry plans to use avocados year-round. can be sustained. 76 NEW YORK APPLES: A BEAUTIFUL STATE OF RECOVERY Through a fortuitous combination of weather events, there should be an abundant   supply of the best apples this year. 26 THE ‘WHY’ BEHIND THE GREEN 81 MICHIGAN APPLES: WHAT A DIFFERENCE A YEAR MAKES BUY — UNDERSTANDING Growers are excited for a promising crop this year and share their predictions on favorable varietals. CONSUMER MOTIVATIONS IN SUSTAINABLE PURCHASES 86 PERUVIAN ONIONS GAIN TRACTION How companies can bridge the gap Peruvian onions are poised to attract sweet onion fans. between sustainability aspirations and purchasing behavior. 115 REGULATIONS MOUNT ON DEREGULATED TRUCKING INDUSTRY Trade says regulations are hurting business, increasing costs, affecting service. 36 A FIRST-HAND LOOK AT SOUTH AFRICA’S CITRUS EXPORTERS 135 IDAHO POTATO LOVERS CONTRIBUTE TO (PART 2 OF 2) ANOTHER RECORD-BREAKING YEAR A confluence of profound actions by Retailers and military commissaries show their love for the spud in the annual South Africa’s citrus growers and their Idaho Potato Commission’s Potato Lover’s Month retail display contest. U.S. import and retail partners beckons exciting growth. p.76 p.135  10 THE FRUITS OF THOUGHT Lessons From Hong Kong 158 RETAIL PERSPECTIVE Cross-Pollination Management 160 EUROPEAN MARKET Reasons To Invest In The European Market 162 VOICE OF THE INDUSTRY Retail And Foodservice Commonalities And Differences

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.

SEPTEMBER 2013 • PRODUCE BUSINESS 3 TOC_Layout 1 9/18/13 5:46 PM Page 2

SEPT 2013 • VOL. 29 • NO. 09 • $9.90

    FOODSERVICE MARKETING 8 THE QUIZ 120 Tropicals Splash Into Restaurant Menus Diners no longer need to jet to the islands for a taste of the tropics. 12 WASHINGTON GRAPEVINE p.139 MERCHANDISING REVIEWS 14 PRODUCE WATCH 139 Power Of The Potato The industry shares best practices for merchandising potatoes.

16 RESEARCH PERSPECTIVES 148 Six Sweet Ways To Sell More Pears Retailers and marketers share trade secrets for better pear sales. 17 COMMENTS AND ANALYSIS DRIED FRUIT AND NUTS 156 Pistachios Find Niches And Broaden Flavor Profiles 18 TRADE SHOW CALENDAR With lots of competition in the category, marketers are finding creative ways to differentiate product and ultimately increase sales in Produce. 123 PMA AISLE-BY-AISLE BOOTH REVIEW

164 INFORMATION SHOWCASE   20 FROM THE PAGES OF THE 166 BLAST FROM THE PAST PERISHABLE PUNDIT Will All Efforts To Boost Produce Consumption Wind Up Being Co-Opted By Other Interests? 23 ASCENDENT INDEPENDENTS: BRISTOL FARMS With an emphasis on fresh, uniqueness and local, this California retailer has the right formula for distribution within hours to cater to its high-end customer base.

51 NOGALES IMPORTERS EXPAND PRODUCTS AND SEASONALITY The experienced Nogales industry adds time and products to its line-up. p.51 67 RETAILERS WANT TO KNOW: Where Do Suppliers Envision The Fruit/Gift Basket Category In The Year 2020?

91 REGIONAL MARKET PROFILE: PHILADELPHIA p.123 Customers Find Value In PWPM Differentiation Identifying niches and re-defining business keep Philadelphia wholesalers competitive and relevant to ustomers and shippers.  109 PHILADELPHIA FOODSERVICE PROFILE: LE VIRTÙ   Le Virtù Celebrates ‘The Virtues’ of Produce • Q & A With Centuries-old traditions bring produce flavors to forefront. Andrew Weil, M.D. 111 PHILADELPHIA RETAIL PROFILE: 320 MARKET CAFÉ • Eco-Friendly Movement Family-owned and -operated market retails produce and • Fall Photo Album café food in an amiable atmosphere. p.91 • Prevent the ‘Pinch’

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.

4 PRODUCE BUSINESS • SEPTEMBER 2013 Sun-Maid_Ad 8/22/13 5:46 PM Page 1 Pom Wonderful P2_Ad 8/22/13 11:51 AM Page 1 Pom Wonderful P3_Ad 8/22/13 11:52 AM Page 1 Quiz_Layout 1 9/17/13 10:50 AM Page 1

PRODUCE QUIZ

THIS MONTH’S WINNER Tony Ciluffo Produce Buyer SEPT. 2013 • VOL. 29 • NO. 09 • $9.90 Merchants Distributors, Inc. Hickory, NC P.O. Box 810425 • Boca Raton • FL 33481-0425 Phone: 561-994-1118 • Fax: 561-994-1610 [email protected] As a child growing up in ing different commodities like bananas, the produce world, Tony tropical fruit, melons, egg, and onions.” Ciluffo used to work with Ciluffo has worked at the family-owned PRESIDENT & EDITOR-IN-CHIEF his dad selling bananas off company for 20 years and has been reading James E. Prevor [email protected] the stalk in St. Louis, MO. Today Ciluffo PRODUCE BUSINESS for 10 to 15 years.

is a produce buyer for Merchants Distribu- “I like the advertisements because they PUBLISHER/EDITORIAL DIRECTOR tors, Inc., a private wholesale grocery store keep me updated with the different venders Ken Whitacre distributor based out of Hickory, NC. and the new packaging,” says Ciluffo. “It [email protected] “We service over 600 retail food stores helps me get some good ideas with mer- with food and non-food items in 11 states,” chandising.” SPECIAL PROJECTS EDITOR Mira Slott says Ciluffo. “I am responsible for purchas- [email protected]

INTEGRATED CONTENT EDITOR How To Win! To win the PRODUCE BUSINESS Quiz, the first thing you have to do is enter. The rules are simple: Read Michele Sotallaro through the articles and advertisements in this issue to find the answers. Fill in the blanks corresponding to the [email protected] questions below, and either cut along the dotted line or photocopy the page, and send your answers along with a business card or company letterhead to the address listed on the coupon. The winner will be chosen by drawing from PRODUCTION DIRECTOR the responses received before the publication of our November issue of PRODUCE BUSINESS. The winner must agree to submit a color photo to be published in that issue. Diana Levine [email protected]

WIN A FRAMED U.S. OR WORLD MAGNETIC MAP PRODUCTION LEADER Whether you’re a geography enthusiast or simply need a bet- Jackie Tucker ter way to “map” out produce shipments, this stunning mahogany and burled wood framed map will be sure to command attention PRODUCTION DEPARTMENT Sunshine Gorman in your home or office. The Quiz winner will have the choice Freddy Pulido between selecting the U.S. or World map. Each version features a current Rand McNally map printed on parchment-style paper to EVENT COORDINATOR give an heirloom-quality aesthetic. Either map also includes 50 Jackie LoMonte colored magnets for pinpointing current and future destinations. [email protected]

EDITORIAL INTERN QUESTIONS FOR THE SEPTEMBER ISSUE Madeline Mesa [email protected] 1) What is the phone number to order red onions from Tanimura & Antle?______CONTRIBUTING EDITORS ______Carol Bareuther, Nicole Brayshaw Bond, Michael Femia, Beth Frith, Bob Johnson, 2) Which “Premium Washington Pears” are Sweet Gourmet Pears promoting? ______Oscar Katov, Keith Loria, Jodean Robbins, Barbara Robison

______ADVERTISING Eric Nieman, Associate Publisher 3) Which company uses a key to “unlock the secret to increased bananas sales”? [email protected] ______Sandy Lee [email protected] 4) What four companies are partnering with the movie, Cloudy With A Chance of Meatballs 2?____ Bill Martin [email protected] ______Ellen Rosenthal [email protected] Gino Valconi 5) Which company is “dedicated to a brighter future”? [email protected]

6) Which company uses a soccer ball in its ad for snacks? ______FLORAL DEPARTMENT MARKETING E. Shaunn Alderman [email protected] Send insertion orders, payments, press releases, This issue was: J Personally addressed to me J Addressed to someone else photos, letters to the editor, etc., to PRODUCE BUSINESS, P.O. Box 810425 Boca Raton, FL 33481-0425 Name ______Position ______PH: 561.994.1118 FAX: 561.994.1610 PRODUCE BUSINESS is published by Phoenix Media Network, Company ______Inc. James E. Prevor, Chairman of the Board P.O. Box 810425, Boca Raton, FL 33481-0425. Address ______Entire contents © Copyright 2013 Phoenix Media Network, Inc. All rights reserved. City ______Printed in the U.S.A. Publication Agreement No. 40047928 State ______Zip ______Phone ______Fax ______Photocopies of this form are acceptable. Please send answers to: SEPTEMBER QUIZ PRODUCE BUSINESS • P.O. Box 810425 • Boca Raton, FL 33481-0425

8 PRODUCE BUSINESS • SEPTEMBER 2013 Baero_Ad 8/21/13 5:54 PM Page 1 Jim Column_Layout 1 9/17/13 6:25 PM Page 1

THE FRUITS OF THOUGHT

LESSONS FROM HONG KONG

By James Prevor President & Editor-in-Chief

he hotel rises from the heart of the ence in an important market. As McDonald’s acquired scale, they would T central district of Hong Kong, and I teach or entice someone to meet their standards, and they did. can see spectacular views of Victoria Hong Kong itself is an anomaly, being part of China, but different. Harbor from my suite on the 42nd floor of The slogan is “One Country, Two Systems,” but tiny Hong Kong, with the Four Seasons Hotel Hong Kong. The hotel its British heritage and its Common Law legal system, has the winning is part of the International Financial Center, system. It is not exactly clear how/if the rest of China can make the which contained the tallest building in Hong adjustment. Kong when it opened in 2003 — but this In Asia, one realizes the outsize role America plays in the world. All being Hong Kong, such records don’t last the conversations were about how rising U.S. interest rates would suck long. Now I stare across the harbor at the money from Asia. Frankly, when the U.S. sneezes, the world still International Commerce Center (ICC), the tallest building in Hong catches a cold. Kong and the seventh tallest in the world. Still, I found myself conflicted in Hong Kong. On the one hand, I The wealth here is astounding. The ICC is crowned by a Ritz- was invigorated, seeing such a youthful society so filled with strivers. I Carlton, and every other building seems to have a mall with more drew vigor from the contacts. Yet I confess I also worried for the fate of upscale stores than any in America. The purpose of my visit was to the West. I was, of course, dealing with elites. CEOs of supermarket attend Asia Fruit Logistica and chains, investment bankers and the Asia Fruit Congress. The owners of foodservice operations organizers are attempting to and entrepreneurs of all types, but build an event such as Fruit The potential for trade with China is I know plenty of elites in America Logistica, the giant Berlin event and Europe, and I know few as held each year in Europe, in Asia. vast, but the path may be tumultuous ambitious, hardworking and I would strongly recommend and not a little treacherous. anxious to self-improve as those I Americans go to Asia Fruit Logis- traveled with in Hong Kong. tica, partly because it is a well One analyst went to Oxford organized event with quality and had a successful career at a programming and attendees — prestigious investment-banking but mostly because not too many Americans go. It is, of course, firm where she works lengthy days. She would stay up late to study for important to attend the mainstay American events, but we see that as the U.S. certified public accounting exam, simply because it increased the ante necessary to remain competitive. To gain a competitive edge, her knowledge and one day it might prove useful. How many Ameri- one has to go beyond what one’s peers are doing by visiting new places cans are signing up for that gig? and making new contacts. This reason is why we here at PRODUCE Another woman could have studied law in China but decided to BUSINESS joined up with the Eastern Produce Council to launch The travel a different road, learned perfect English, and then went to NYU New York Produce Show and Conference. For many in the industry, law school. It wasn’t just those with high-end careers either; a woman the intricacies of distribution in the Northeast are such that they who worked for a supermarket in a middle management position might as well be in Hong Kong. explained that she worked each day until 2 a.m. but had trouble finishing We had lots of meetings in Hong Kong and, in the past, have deliv- all her work. The willingness to work hard, the thirst for self-improve- ered many speeches for some of Asia’s leading retailers. As such, we ment, it was all both inspiring and chilling. have lots of friends there, and whether it was a dinner or an office The produce industry in the U.S. argues for immigration reform on meeting, we came away with much optimism. So many people, so the basis that few Americans are willing to harvest produce. Many take many moving into the middle class, import, export, partnerships and this to mean that Americans are only interested in higher-end jobs. But direct investment — all of which offer opportunities for those active we don’t know many Americans interested in working 12-hour days and in the produce trade. then wanting to study for the CPA exam in their free time. The potential for trade is vast, but the path may be tumultuous, and We don’t know many supermarket employees happy to work until 2 not a little treacherous. You really need a partner who knows the busi- a.m. each morning. In Hong Kong, we met wildly educated and most ness, knows the landscape, and has the right connections. You also need sophisticated people who are close enough to a world of poverty to want to be prepared to invest with a very long-term perspective. When to make sure they stay far from it. Motivation comes from both carrots McDonald’s opened in Hong Kong, nobody could cut lettuce to the food and sticks, and the sticks in China are such that you definitely do not safety standards McDonald’s required. Management didn’t see this as a want to fall backwards socio-economically. The Chinese system has reason to not open, so they flew in product daily from Sydney, Australia. many challenges to overcome, but the ambition and industry of the It was financially a loser but part of a long-term strategy to build pres- Chinese will make them very tough to beat. pb

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United Reviews FSMA Initiatives

By Ray Gilmer, Vice President, Issues Management & Communication

e’re beginning to see just how rules, but it’s important that we thoughtfully • “The FDA will periodically evaluate the complicated our nation’s new review them in a line-by-line fashion to ensure performance of each recognized accreditation Wfood safety regulations could be that the final regulations are workable for the body to determine its compliance with the appli- under the Food Safety Modernization Act produce industry. cable requirements.” (FSMA). In late July, the Food and Drug Based on United’s initial review, led by Dr. • Accreditation bodies can be recognized by Administration (FDA) released two additional Gombas, here are just a few highlights from the the FDA for up to 5 years before they have to proposed regulations under that law: the proposed Imported Foods Rule: reapply. Foreign Supplier Verification Programs for • The rule requires all foreign suppliers to • Accreditation bodies “must annually Importers of Food for Humans and Animals, have a U.S. importer agent of record. The conduct a comprehensive assessment of the and Accreditation of Third-party Auditors. “importer” is defined as “the person in the U.S. performance of each auditor/certification body These draft rules join two previously released who has purchased an article of food that is it accredited” and submit that report to the FDA. proposed regulations under FSMA, which being offered for import into the U.S. If the • Audit organizations can be multiple or address produce safety at the farm level, as well article of food has not been sold to a person in single individuals, and can include contracted as food processing and storage facilities. the U.S. at the time of U.S. entry, the importer is auditors (“audit agent”). From the beginning, United Fresh has the person in the U.S to whom the article has • “A foreign government, agency of a underscored the need to see all of the proposed been consigned at the time of entry. If the article foreign government, foreign cooperative, or regulations before allowing the FDA to declare of food has not been sold or consigned to a any other third party may seek accreditation them final. That’s because the rules governing person in the U.S. at the time of U.S. entry, the from a recognized accreditation body (or farms, processing, handling, storage, imported importer is the U.S. agent or representative of the where direct accreditation is appropriate) to foods and third-party auditor accreditation are foreign owner or consignee at the time of entry.” conduct food safety audits and to issue food so interrelated — it would be counterproduc- • All importers must have a written Food and facility certifications.” tive to finalize one of them without fully Safety Verification Program (FSVP), prepared by • “In arranging a food safety audit with an understanding the implications for the others. a “qualified individual” (this is the same defini- eligible entity, an accredited auditor/certification It’s a challenge for the FDA and the produce tion as in the Preventive Controls Rule). body must ensure it has authority … to: 1) industry to anticipate how this tapestry of • The FSVP must have, for each food Conduct an unannounced audit … 2) Access proposed regulations will mesh in the real imported, a written hazard analysis that covers any records and any area of the facility, its oper- world, but United’s members and staff, along biological, chemical, physical and radiological ations, and food of the eligible entity relevant to with representatives from allied industry organ- hazards reasonably likely to occur, EXCEPT that the scope and purpose of such audit … ” 3) The izations, are developing constructive feedback a hazard analysis for a raw agricultural FDA requires sampling and analysis, use of vali- for the FDA. commodity does not need to evaluate microbi- dated sampling or analytical methodologies and Since January of this year, when the first two ological hazards (e.g. pathogens). analysis by a laboratory that is accredited … 4) draft rules were released, United Fresh has • The importer must maintain a written list Notify the FDA immediately if, at any time conducted a deliberative review of the FDA’s of its foreign suppliers. during a food safety audit, the accredited proposed Produce Safety and Preventive The importer must conduct verification auditor/certification body … “discovers a condi- Controls rules, bringing together member activities to ensure the foreign supplier has tion that could cause or contribute to a serious company experts from each segment of the controlled each of the hazards identified in the risk to the public health.” produce supply chain. United has already importer’s hazard analysis; is in compliance with • “A consultative audit report must … be begun the work to apply that same process in relevant the FDA regulations (e.g. Preventive made available to the FDA.” the review of the FDA’s draft rules on imports Controls and Produce Safety Rules). FDA has extended the comment period for and third-party auditors to provide comments And a few highlights from the proposed the draft Preventive Controls and Produce to the FDA. Accreditation of Third-Party Auditors Rule: Safety rules 60 days past the current September United’s Dr. David Gombas, senior vice • It establishes requirements for “accredita- 16, 2013 deadline. president for food safety and technology, helps tion bodies,” both in organization and in how Questions or comments about any of the to lead United’s FSMA review initiatives. He it accredits certification bodies/third-party FSMA proposed rules? Contact Dr. David says he finds “no surprises” in the two new auditors. Gombas at United Fresh, 202-303-3400.

12 PRODUCE BUSINESS • SEPTEMBER 2013 Pom Wonderful P1_Ad 8/22/13 11:46 AM Page 1 Watch_Layout 1 9/9/13 7:25 PM Page 1

PRODUCE WATCH

TRANSITIONS THE UNITED STATES MISSION PRODUCE INC. POTATO BOARD OXNARD, CA DENVER, CO Mission Produce Inc., hires Robb Bertels as the The United States Potato Board new director of strategic marketing. A 25-year (USPB) names produce industry veteran of business-to-business communications veteran, Blair Richardson, as in the produce industry, Bertels' background president/CEO. Over the past includes advertising communications, sales four years, Richardson served management, business development, strategic as CEO for the combined enti- planning, marketing, content development, ties of WesPak Sales, Inc., and personnel management and P&L responsibility. Enns Packing, Inc., Dinuba, CA, LOBUE CITRUS as he assisted the LINDSAY, CA owners of the ANNOUNCEMENTS LoBue Citrus welcomes citrus 110-year-old industry veteran, Norm Gatineau to company with the company as the vice president WAL-MART HONORS READY PAC WITH business AWARD of sales and marketing. Based in aspects and Lindsay, CA, Gatineau oversees the Walmart presents Ready Pac Foods, Inc., Irwin- facilitated dale, CA, with the prestigious Excellence in management of the sales depart- corporate ment, develops and manages the Sustainability award. The award recognizes both mergers and Ready Pac and Clear Lam for packaging innova- marketing strategy and new busi- acquisitions. ness in addition to working with tions developed for the Peel and Reseal Tray retail and wholesale buyers on used for its mixed greens clamshell containers. category development. The trays are a consumer and environmentally friendly development, which sets a new stan- dard for salad packaging. ANNOUNCEMENTS DUDA FARM FRESH FOODS OFFERS PURE FLAVOR EXPANDS ITS YEAR-ROUND MEYER LEMON PROGRAM GREENHOUSE OPERATIONS Duda Farm Fresh Foods, Oviedo, FL, Pure Hot House Foods Inc., Leam- announces that it will now offer Meyer ington, ON, grower, Ernie Ingratta, lemons year-round in an effort to meet the is expanding his operating facili- growing demand. Duda Farm Fresh Foods ties by over 50 percent in acreage has procured a relationship with growers to accommodate for the increased in New Zealand to supplement the company’s domestic crop in demand for Juno Bites, Luna promotable volumes from May to September, just before the company’s Sweets, Romas, and tomatoes on California product becomes available from October to March. the vine, as well as to include new types such as cluster toma- toes. The new greenhouses will SUN WORLD LAUNCHES feature the latest growing tech- SOUTHERN SPECIALTIES nology, lower input costs, and an CONSUMER-FRIENDLY MOBILE SITE PRESENTS LEADERSHIP CLASS extended growing season. Sun World International LLC, Bakersfield, CA, Southern Specialties, Pompano launches its consumer-friendly mobile site to Beach, FL, hosted the 2013 provide smartphone and tablet users faster Southeast Produce Council’s and easier navigation of the company’s STEP-UPP leadership class with website. Consumers can quickly scroll through an educational presentation and product images and videos, learn about Sun tour of the company’s facility. The World’s signature products, find ways of presentation touched on growing, enjoying delicious products through recipe importing, processing and quality recommendations, and directly contact the assurance. The class also learned company with product feedback. about the significant role imported produce plays in the increased consumption of fresh fruits and vegetables in our nation.

CALIFORNIA AVOCADO COMMISSION BEEFS UP PROMOTIONS California Avocado Commission (CAC), YERECIC ANNOUNCES Irvine, CA, is promoting one regional ENVIRONMENTAL ACHIEVEMENTS NATIONAL MANGO BOARD’S “MANGOVER” and one national beef-themed program Yerecic Label, New Kensington, PA, CAMPAIGN DELIVERS RESULTS designed to encourage consumption of announces the environmental responsi- California avocados on a variety of bility accomplishments it achieved in The National Mango Board’s, Orlando, FL, new marketing burgers and fresh dishes with lean 2013. The company takes a proactive campaign, “Mangover,” delivered record-breaking results for beef. The program advocates cross- role minimizing its environmental foot- its consumer public relations and marketing program, which department shopping and additional print. By using positive ecofriendly reached consumers a total of 715 million times at the close of produce purchases along with Cali- practices, Yerecic Label helps customers the second quarter of 2013 — significantly exceeding its fornia avocados and beef. improve their own sustainability goals. second quarter goal of 689 million impressions.

Produce & 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, 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]

14 PRODUCE BUSINESS • SEPTEMBER 2013 Watch_Layout 1 9/9/13 7:25 PM Page 2

PRODUCE WATCH

ANNOUNCEMENTS STERMAN MASSER FORMS MASSER LOGISTIC SERVICES DNE EXPANDS ITS Sterman Masser, Inc., Sacramento, PA, is pleased to announce the FLORIDA PROGRAM creation of Masser Logistics Services (MLS), an operating company DNE World Fruit LLC, Fort dedicated to ensuring on- Pierce, FL, adds to its list of time, accurate, and effi- packinghouses by signing cient delivery of product contracts with Premier Citrus to the customers of Packers, LLC in Vero Beach Masser Potato Farms, and John Stephens, Inc. of Frostproof. Last year, Premier Citrus packed approx- Keystone Potato Products, imately 1 million cartons of Florida grapefruit, and John Stephens Company and the partners of Fresh packed around 420,000 cartons of Florida citrus with a nice mix of tangerines, Solutions Network, LLC. navels, juice oranges and grapefruit.

MARKET FRESH AQUIRES WEST CENTRAL FLORIDA PRODUCE Market Fresh Produce, Nixa, MO, announces its acquisition of West Central Florida Produce in Tampa, FL. The acquisition was PROGRESSIVE MOVES UP completed after the companies finalized all the business details. Progressive Produce, Los Angeles, CA, announces that it is Upgrades began to transform the officially UP! A company-wide wellness program was imple- Florida operation into a state-of- mented for all administrative personnel by issuing each of the-art repacking facility. them the UP Band made by Jawbone. This unique wrist band measures steps, sleeping habits, and can interface with other apps. The goal is a healthier workforce by encouraging employees to get “up” and moving.

CONCORD FOODS PROMOTES FOOTBALL-THEMED SWEEPSTAKES Concord Foods, Brockton, MA, is running an exciting sweepstakes promotion, running from now until November 30. The grand prize winner will receive a trip to a top college bowl game. No purchase is neces- sary to enter or win. Consumers can enter the sweepstakes and view official rules at Concord Foods’ website.

DOLE CELEBRATES THE OFFICIAL BANANA SPLIT BIRTHPLACE Dole Fresh Fruit, the City of Latrobe, and Saint Vincent College teamed up to honor the iconic, triple-scoop treat, and the city where it all began, by hosting a three-day banana split celebration designed as a homecoming for banana lovers worldwide. The Great American Banana Split Celebra- tion featured three days of ceremonies commemorating of Latrobe, PA as the offi- cial banana split birthplace.

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]

SEPTEMBER 2013 • PRODUCE BUSINESS 15 Perspective & Analysis_Layout 1 9/17/13 6:27 PM Page 1

RESEARCH PERSPECTIVE

Private Label Presence Expands In Produce

KELLI BECKEL, SENIOR MARKETING MANAGER, NIELSEN PERISHABLES GROUP

rivate label products have played a Private Label Dollar Growth Surpasses Category Growth 52 Weeks Ending June 29, 2013 variety of roles within fresh food cat- P 14.8% egories in recent years. From a Lettuce necessary recession money-saver to pre- 3.2% mium product-of-choice, the role of private Value-Added Fruit 16.6% label can be multi-faceted and appeal to a 12.9%

variety of consumers. Given its versatility, it’s 19.8% Packaged Salad no surprise private label sales are on the rise. 8.4% For produce, private label offers retail- Private Label Dollar Growth Category Dollar Growth ers a vehicle to communicate product value Source: Nielsen Perishable Group FreshFacts® - Fresh Coverage Area (grocery + WM, Sam’s Club and Target) that unbranded produce cannot, but at a lower price than national branded options. private label or owned brands) bulk, packaged salad sales (compared to the pro- Recent trends show private labels’ pres- unpackaged product. However, unbranded duce department average of 10.9 percent). ence in produce is growing, particularly in share in produce has been stagnant over the Moreover, dollar sales of private label pack- packaged products where private label past two years. During the latest 52-week aged salad increased 19.8 percent, while serves as the value player. In such cate- period, unbranded products’ share of total total category sales increased just 8.4 per- gories, private label growth is even produce decreased 2.3 percentage points. cent in the past year. Other high-value surpassing total category growth. During the past year, private label pro- categories with similar sales movement To effectively leverage private label pro- duce sales growth not only surpassed included lettuce and value-added fruit, for duce, it is important for retailers to unbranded, it outpaced total produce which private label product accounted for understand the context in which this growth (up 13.7 percent compared to pro- 16.6 percent and 11.2 percent of category growth is occurring and why it is valuable. duce’s 7.6 percent increase). Private label sales, respectively. In both cases, private label also kept pace with branded growth, which growth outpaced category growth. A Growing Trend was up 13 percent during this time. Packaged salad exemplifies a category The fresh departments, and especially Private label maintains a strong pres- with a highly developed private label pro- produce, are unique because of the pres- ence in staple categories including gram, but opportunity for retailer branding ence of “unbranded” products. Unbranded potatoes, onions, tomatoes and packaged still exists for packaged produce varieties products bare no store or brand name, while salad. For certain heavily packaged pro- that do not have a well established private private label items are branded with a store’s duce categories, private label not only label presence. For example, private label own label and compete with products that maintained a respectable presence, it drove has a small contribution to total berry sales are branded with supplier labels. growth. Celery, lettuce, packaged salad, at less than 1 percent; however, private label Examining the entire store perimeter, pri- mushrooms and value-added vegetables sales within berries are far surpassing total vate label accounted for one-fifth (19.9 posted solid share gains compared to the berry growth. During the latest 52-week percent) of total perishables dollar sales previous year. In fact, only seven of 44 pro- period, dollar and volume sales of private nationally during the 52-week period end- duce categories monitored decreased share label berries increased more than 25 per- ing June 29, 2013. Private label’s of private label sales during the past year. cent, respectively. Focusing on categories contribution to total perishables sales is big Apples, carrots, cooking greens, pineap- where private label is less developed but is and still growing, fueled by departments ples, stone fruit and beverages were most showing growth potential, like berries, can such as the bakery and deli (accounting for notable among the seven categories. be advantageous for retailers looking to 42 and 30 percent of sales, respectively) attract the value-focused consumer. where there are more opportunities due to The Value Proposition the high volume of packaged products. Packaged salad is generally a higher- At the other end of the spectrum, due to priced produce item, and the category is the high volume of unbranded product in saturated with prominent national brands, produce, private label accounted for just creating a scenario that is ripe with oppor- 10.9 percent of total produce department tunity for a lower-priced option. Branded Nielsen Perishables Group consults with clients in the fresh sales during the 52 weeks ending June 29, packaged salads had an average 5 percent food space. Based in Chicago, IL, the company specializes in consumer research, advanced analytics, marketing com- 2013. Unbranded products’ dominance price premium over private label during the munications, category development, supply chain within Produce reflects the challenge retail- latest 52 weeks. As the lower-priced option, management, promotional best practices and shopper insights. For more information, please visit perishables- ers face for branding (whether through private label accounted for 40 percent of group.com.

16 PRODUCE BUSINESS • SEPTEMBER 2013 Perspective & Analysis_Layout 1 9/17/13 6:27 PM Page 2

COMMENTS & ANALYSIS

Risks Inherent In Private Labeled Produce

BY JIM PREVOR, EDITOR-IN-CHIEF, PRODUCE BUSINESS

rivate label efforts in the fresh pro- cases, the retailer may sell both, but the Pduce department are generally a addition of a private label program can disappointment for produce retail- reduce facings given to branded product, ers. The problem is simple: for most reduce the frequency with which branded retailers, the real motivation behind private product is sampled or on ad. In other Many things other label is margin enhancement. Incorporated words, many things other than consumer in the price of national branded goods is preference for branded versus private label than consumer an allotment to cover a multiplicity of can be reflected in statistics indicating that preference for costs, such as research and development private label is increasing. as well as marketing and advertising. For While financial liability can be limited by branded versus most retailers, the idea with private label contract and with proper insurance, for the private label can be is to cut out those costs, give consumers a retailer a decision to private-label its prod- better price and keep some for enhanced ucts — especially those with higher food reflected in statistics margin. safety risks such as bagged salads — holds indicating that It is a powerful proposition. On a cate- out the potential for severe reputational gory such as dry pasta, one can see damage. It is bad enough for a retailer to private label is dramatic differences. Professor Ed be cited in local news reports for selling increasing. Mclaughlin, Director of the Food Industry product that caused severe illness or even Management Program at Cornell Univer- death; it is another thing entirely for the sity, did a presentation that incorporated retailer’s own name to be implicated on a Wegmans’ private label pricing, and he product that caused illness or death. We reported that while Ronzoni spaghetti is suspect this alone would lead many retail- sold at $1.49 a pound, the basic Wegmans ers to say it is not worth it to use a private private label offering is sold for only 89 label on these products in order to offer but it is, once again, not obvious how to cents a pound. That is a big savings to con- consumers a few percentage-points dis- apply this to packaged salads and certainly sumers and yet, probably, provides equal count or pick up a little margin. After all, not to, say, apples. or better margins for Wegmans. how much can be lost in just one food Trader Joe’s is famous for using private Yet this very dramatic example — safety incident? This is the reason why Paul label on proprietary products such as almost 43 percent off for private-label Newman pulled his salad line when he sauces to differentiate itself. This is a pow- spaghetti — points out the limitations of realized what his name could wind up erful strategy but, once again, it is difficult private label in the produce department. being associated with. to know how to do this with a banana. Even in packaged salads (the category Of course, today private label offerings Even a salad mix is hard to do in such a most similar to grocery items) there is no are often about more than discounts. In dramatically different way that establishes large expenditure on research and devel- fact, Professor McLaughlin’s report indi- totally different flavor profiles to drive con- opment or advertising and marketing that cated that the same Wegmans that sells sumer preference. can be eliminated by moving to private the inexpensive private label spaghetti also This leaves most produce private-label label. This is why the Nielsen Perishables offers an “Italian Classics” private label efforts as legacies of broader corporate Group study shows that branded pack- that is 30 cents more per pound than Ron- branding strategies. In other words, retail- aged salads had a price premium over zoni. There also is a Wegmans “Super ers offer private label produce to have the private label of only 5 percent during the Pasta” that is $1.99 for the package and, same brand in every department. This is a last 52 weeks. because they cut the weight of the pack- rather backwards approach, however. The If all a private label initiative does is age to a little more than 14 ounces, it is world has changed since gourmet meant offer consumers such a small savings, it is actually $2.20 a pound! little jars and bottles from Europe. Today not clear how successful it can really be. So sometimes, private label can be used “fresh” is the new upscale, so produce- Growth of private label sales in raw num- to sell premium products. Yet it is not obvi- centric branding could be the key to the bers may be strong, but mixed up in that ous how applicable this approach is to halo effect for the whole supermarket. For data are many retail decisions. On some fresh produce. Costco is famous for selling the moment, though, supermarket CEOs products, say a coleslaw mix, a retailer may excellent product under its Kirkland brand. seem focused on margin-enhancement, so eliminate the branded option all together We have been told that Costco sells better private label in produce will be a source of and just sell its private label SKU. In other packaged tuna than any branded supplier endless disappointment. pb

SEPTEMBER 2013 • PRODUCE BUSINESS 17 Trade Calendar_Layout 1 9/9/13 7:30 PM Page 1

FORWARDTHINKING

SEPTEMBER 3 - 8, 2013 Phone: +49 221 821-2240 • Fax: + 49 221 821-993410 38TH ANNUAL JOINT TOMATO CONFERENCE E-mail: [email protected] Conference Venue: Ritz-Carlton Golf Resort, Naples, FL Website: anuga.com Conference Management: Florida Tomato Committee & Florida Tomato Exchange, Maitland, FL OCTOBER 12 - 15, 2013 Phone: (407) 660-1949 • Fax: (407) 660-1656 NACS SHOW 2013 E-mail: [email protected] Conference Venue: Georgia World Congress Center, Website: floridatomatoes.org Atlanta, GA Conference Management: National Association of SEPTEMBER 17 - 18, 2013 Convenience Stores, Alexandria, VA EPC & NEPC ALLIANCE EVENT Phone: (703) 684-3600 • Fax: (703) 836-4564 Conference Venue: Marriott Mystic Hotel & Spa, E-mail: [email protected] Groton, CT Website: nacsshow.com Conference Management: Eastern Produce Council and New England Produce Council, Inc. OCTOBER 18 - 20, 2013 Phone: (781) 273-0444 PMA FRESH SUMMIT CONVENTION & EXPO E-mail: [email protected] Conference Venue: Ernest N. Morial Convention Center, Website: easternproducecouncil.com New Orleans, LA Conference Management: Produce Marketing SEPTEMBER 19, 2013 Association, Newark, DE PRODUCE TRACEABILITY WORKSHOP Phone: (302) 738-7100 • Fax: (302) 731-2409 Conference Venue: Double Tree by Hilton Miami E-mail: [email protected] Airport Convention Center, Miami, FL Website: freshsummit.com Conference Management: Peruvian Asparagus Importers Association OCTOBER 28 - 29, 2013 Phone: (817) 793-3133 THE 17TH AMERICAS FOOD AND BEVERAGE E-mail: [email protected] SHOW AND CONFERENCE Conference Venue: Miami Beach Convention Center, SEPTEMBER 22 - 25, 2013 Miami Beach, FL FFVA CONVENTION 2013 Conference Management:World Trade Center Miami, Conference Venue: Ritz-Carlton, Amelia Island, FL Miami, FL Conference Management: Florida Fruit & Vegetable Phone: (703) 259-6120 • Fax: (703) 934-4899 Association, Maitland, FL E-mail: [email protected] Phone: (321) 214-5200 • Fax: (321) 214-0210 Website: americasfoodandbeverage.com E-mail: [email protected] Website: ffva.com NOVEMBER 7 - 9, 2013 45TH NOGALES PRODUCE CONVENTION AND SEPTEMBER 22 - 24, 2013 GOLF TOURNAMENT FLORIDA RESTAURANT & LODGING SHOW Conference Venue: Rio Rico Resort & Tubac Golf Resort, Conference Venue: Orange County Convention Center, Rio Rico, AZ Orlando, FL Conference Management: Fresh Produce Association Conference Management: Reed Exhibitions, of the America, Nogales, AZ Norwalk, CT Phone: (520) 287-2707 • Fax: (520) 287-2948 Phone: (203) 840-5311 E-mail: aadams@freshfrommexico E-mail: [email protected] Website: freshfrommexico.com Website: flrestaurantandlodgingshow.com NOVEMBER 10 - 13, 2013 SEPTEMBER 26 - 28, 2013 WESTERN GROWERS ANNUAL MEETING 2013 SPC ANNUAL FALL CONFERENCE Conference Venue: Sheraton Resort, Waikiki, HAWAII Conference Venue: Marriott Resort & Spa at Grande Conference Management:Western Growers Dunes, Myrtle Beach, SC Association, Newport Beach, CA Conference Management: Southeast Produce Council, Phone: (949) 863-1000 • Fax: (949) 863-9028 Inc., East Ellijay, GA E-mail: [email protected] Phone: (813) 633-5556 • Fax: (813) 653-4479 Website: wgannualmeeting.com E-mail: [email protected] Website: seproducecouncil.com DECEMBER 10 - 12, 2013 NEW YORK PRODUCE SHOW AND CONFERENCE SEPTEMBER 30 - OCTOBER 2, 2013 Conference Venue: Pier 94, New York, NY 2013 WASHINGTON PUBLIC POLICY Conference Management: PRODUCE BUSINESS, CONFERENCE Boca Raton, FL Conference Venue: Hyatt Regency Capital Hill, Phone: (561) 994-1118 • Fax: (561) 994-1610 Washington, DC E-mail: [email protected] Conference Management: United Fresh Produce Website: nyproduceshow.com Association, Washington, D.C. Phone: (202) 303-3400 • Fax: (202) 303-3433 JANUARY 8 - 10, 2014 E-mail: [email protected] POTATO EXPO 2014 Website: unitedfresh.org Conference Venue: Henry B. Gonzales Convention Center, San Antonio, TX OCTOBER 5 - 9, 2013 Conference Management: National Potato Council, ANUGA 2013 Washington D.C. The worlds leading food fair for the retail trade and the Phone: (202) 682-9456 • Fax: (202) 682-0333 food service and catering market. E-mail: [email protected] Conference Venue: Cologne Exhibition Center, Website: potato-expo.com Cologne, Germany Conference Management: Koelnmesse GmbH, To submit events to our Forward Thinking calendar, Cologne, Germany please e-mail [email protected].

18 PRODUCE BUSINESS • SEPTEMBER 2013 NYPS H 2013_2_Ad 8/22/13 11:32 AM Page 1 Pundit_Layout 1 9/18/13 5:40 PM Page 1

Will All Efforts To Boost Produce Consumption Wind Up Being Co-Opted By Other Interests?

FROM JIM PREVOR’S PERISHABLE PUNDIT 07.26.2013

reshfel, the European Fresh Produce Association based in years and seems not to be working satisfactorily from a good Brussels, Belgium, was concerned about proposals to integrate management principle. It has been criticized by audits. We have a Fproduce with other agricultural products, such as milk, in school relatively young system with our School Fruit Scheme, now three years programs, so it issued a statement: in its infancy. The European Commission is looking at whether the school fruit scheme . . . should be merged with other agriculture FRESHFEL QUESTIONS APPROPRIATENESS AND TIMING products; that there could be a benefit of extending the school scheme OF THE ‘CAP’ SCHOOL SCHEMES CONSULTATION to a broader range of products. Freshfel Europe sent a letter to Commissioner for Agriculture, This is where we came in arguing with the Commission that this is Dacian Ciolos, questioning the appropriateness and the timing not a bright idea. The background or the specifications of how and for the Commission consultation on the Common Agriculture why the existing schemes came about are quite different. The main Policy (CAP) schemes providing agricultural products to school reason for the fruit scheme and why the background is important is the children. The association expresses serious concerns in regard to need to educate children on fruits and vegetables because they are the policy options envisaged in the consultation, which it finds good for health. If you look at the main reason for the milk scheme, would be extremely detrimental for the School Fruit Scheme it was introduced because there was too much milk product in the (SFS). EU, so it was a way to get rid of the excess. Freshfel Europe . . . has addressed its letter on CAP schemes for When you have public money, it’s important to know how to milk and fruit distribution in schools which outlines several monitor the program and see the benefit of the program, and a options now open for debate. broader scheme defeats the ability to do that if you add milk, grain or The letter also highlights the specificity of the products and cereal or meat product in the scheme. There are even talks about the logistics of the two schemes, which widely differ and for adding flowers. which a merger would be to the detriment of the need for Q: This sounds like a way to divert focus from the initial objective. frequent distribution of perishable products. The letter further A: If you have such a broad scheme, it helps shorten the supply observes that while all the objectives mentioned in the chain and eliminate food waste, but the Commissioner is mixing consultation paper are laudable objectives, they should not be issues. We need a clear objective. If we dilute the program, it defeats part of a school program, and can be reached through other the purpose of what we argued to the EU as the impetus for the school CAP instruments. fruit scheme — the stagnation of produce consumption — and it will Philippe Binard, General Delegate of Freshfel, stated: “In a be very difficult to monitor. time of budgetary constraints, it is important to have well- Q: Weren’t there other developments underway for the School structured, well-funded and efficient policies, and we urge the Fruit Scheme more to your liking? What happened to the proposed Commission to first further improve the SFS without jeopardizing increased funding that had been gaining ground? its achievements so far.” He concluded: “When launched, the SFS A: For the time being, there are proposals already on the table in was built on the basis of increasing fruit and vegetables the current reform of EU policy to improve the fruit scheme. We consumption together with a clear health objective. Its merits are should give those a chance first and take the steps to improve the more than ever valid today and should not be undermined!” scheme by raising financial support. Now, when you participate in the A ringing statement to be sure! The issue of how best to increase scheme, the EU is supporting 50 percent of the product. There is a produce consumption among school children is a transatlantic concern, financial proposal to raise the EU contribution to 75 percent. as is the public policy question of how such programs should be funded Another element of the proposal is to have the EU co-finance the and organized, so we asked Pundit Investigator and Special Projects accompanying promotion measure that needs to be taken in any Editor Mira Slott to contact Philippe Binard and find out more: school scheme. If you don’t have activity to educate the children, the scheme won’t be effective. This is something that had to be financed Q: Why is Freshfel Europe expressing serious concerns to the by each of the countries. This could help to convince more countries Commissioner for Agriculture regarding policy change considerations to jump into the system. So instead of looking to merge milk and to the European Commission’s CAP (Common Agriculture Policy) vegetables or extend the scheme to other products, we say first do the schemes providing agriculture products to school children? financial proposal already on the table rather than launching a new A: Insight on this problem involves a little open-ended politics. broader scheme. Not focusing on European Union “inside politics,” the European Q: What is the current status? Is the proposed budget increase for Commission is looking for a number of options for maybe improving the school scheme likely to pass? Has that been tempered by larger the functioning of schemes under the Common Agriculture Policy fiscal concerns and the market’s economic volatility? targeting children. The main trouble is that these latest proposed A: It’s on the table now almost 18 months because it has a budget. changes are misdirected and will undermine the school fruit scheme. Just like you have the fiscal cliff in the U.S., we have something similar Q: What sparked the proposed changes, and why do you view in the EU. There are major discrepancies between the Commission’s them as detrimental? proposal for the whole budget and what member states are willing to A: For the time being, the scheme on milk has been there many accept. The member states are reducing budgets.

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FROM JIM PREVOR’S PERISHABLE PUNDIT 07.26.2013

Our budget line for the school scheme is scheme. We’ll see what the main message of addressed by this kind of proposal to broaden 90 million Euros for the time being, and with the Commission will come out of the the scope of the program from just produce to the proposal to change it to 150 million Euros, consultations in progress. We have strong all kinds of items. that budget line for 2014 to 2020 has not support, yet we cannot rest on our laurels. We Mostly, though, it sounds like an effort by been affected, However, as long as there is no must remain vigilant. other agricultural interests to hop on what final deal with the budget, the approval for they perceive as a gravy train and, to mix the school scheme is dependent on that. •••••• metaphors a bit, grab their piece of the pie. Q: What happens if the broader scheme This is, of course, the key problem with any to merge milk and other agriculture products One could argue that there are legitimate large-scale government program. For some goes forward? concerns over logistics efficiency and program reason, people who assume that the A: The matter is not over for the broader monitoring efficiency, which could be individuals in business are always selfish somehow assume that the individuals who work in government are unfailingly selfless. One of those key reasons is that whatever the noble intentions of a program at its start, concentrated interests will tend to bend the program to their own interests. These interests change the incentives for individual politicians and bureaucrats and thus the government bends in their direction. Voters typically have little knowledge of these programs and are little impacted by the small per person cost. So, as Theodore Lowi explained in writing of the Iron Triangle the programs proceed to benefit the interest groups, not the general public. The organic community is starting to feel this, as large food companies are now getting interested in organics and will push to have rules bent to fit their interests. Since the produce industry is not the most powerful interest, it stands a good shot of seeing its programs, if they obtain enough scale, being distorted. So a program focused on making children healthy by changing their dietary patterns may soon be giving out cheese and flowers, etc. Thus, the earnest pleas from our European friends for program purity and focus. One caution we would add is that there is a tremendous risk when the industry supports programs that are not of a sufficient scale to make a difference. Yes, we know that many times one takes what one can get and then hopes to build. But if giving out one piece of fruit a day doesn’t change consumption or health metrics in a verifiable way, the industry itself runs the risk of being perceived as just another special interest group. It is difficult to do politically sometimes, but we would be better off doing an effective program, as a pilot study, on 10 percent as many students, than ineffectively giving fruit to ten times that number. This is because an effective study would provide the intellectual ammunition to call for substantial additional funding. Failure to prove effectiveness makes the whole future of the program a matter of politics. Many thanks to Philippe Binard for helping us to think about such issues.

22 PRODUCE BUSINESS • SEPTEMEBR 2013 Bristol Farms_Layout 1 9/9/13 7:17 PM Page 1

PROFILE SERIES ASCENDENTINDEPENDENTS

PHOTO COURTESY OF BRISTOL FARMS Bristol Farms With an emphasis on Fresh, uniqueness and local, this California retailer has the right formula for distribution within hours to cater to its high-end customer base. BY OSCAR KATOV

alifornia is one of the most fiercely competitive arenas joined a sophisticated butcher shop with a farm for fresh produce. for consumers’ food dollars. Joining the game, with Gronsky lived on Bristol Street in Beverly Hills, and Burbank lived on strong competition, is a chic independent retailer a horse ranch in Rolling Hills Estates, which was the closest place to specializing in exclusive fresh foods to confidently Los Angeles where horses were permitted. When you put these parts attract sophisticated customers. together, we have the ‘British feeling’ from the word Bristol linked Kevin Davis is an astute veteran of the retail food industry and with the ‘down-home-feeling’ from the word Farms and a charming currentlyC is chairman of the board for the California Grocers Associa- tion as well as president and CEO of Bristol Farms, headquartered in Carson, CA. He shares that his management team learned to better identify specialty products and ultra high-end products than large- store and national competitors. “We are able to more effectively serve our wealthy customer base in Newport Beach, Manhattan Beach, Beverly Hills, and Redonda Beach,” he says, jokingly saying that if a location has either the word “beach” or “hills” in it, then there is also a Bristol Farms store nearby. “In the areas covered by our 18 stores, we have positioned our consumer strategy to serve the top 20 percent (in terms of income and education) of the marketplace — that’s our focus,” says Davis. “Because of that reasoning, we don’t try to be everything to everybody. Our emphasis is on Fresh, the unique, and the local so that it is universal in our system — in every department and in every category. Almost 70 percent of our total sales are related to the two key fresh categories — Produce and Meats. I think that in a traditional grocery store, you will A central kitchen find 70 percent of its sales in non-Fresh categories.” provides the stores “Who we are today reflects how the business started,” says Davis, with everything from organic breads to recounting that the two founders, Irv Gronsky and Mike Burbank, 80 different soups.

SEPTEMBER 2013 • PRODUCE BUSINESS 23 Bristol Farms_Layout 1 9/9/13 7:17 PM Page 2

“I think we need to will receive the next day,” explains Davis. “Although the DC is only 50,000 square feet, develop a constant we can efficiently distribute 100 percent of rapport in our stores. our produce to the stores. In fact, we can deliver daily to two-thirds, or more, of our When customers ask stores in 24 hours. Our goal is to deliver our staff, ‘What’s the produce that’s fresh, picked on the tree, and as ripe as possible — that way we can offer best cut of this? a different taste experience. We don’t buy What’s the best peach green tomatoes and throw them in the ripening room to open them up to become now? Tell me about red. We buy red tomatoes ready to eat. We this product,’ we go know they have a short window, but that’s the qualitative difference that drives our out of our way to margins, our higher retails, and a product’s deliver that product.” superior quality.” — Kevin Davis, Bristol Farms LAZY ACRES ORGANICS Two stores are committed to organic prod- concept attached to both. Davis feels that ucts, and they are identified with Lazy Acres the Los Angeles Times readers best define banners. “In Bristol Farms stores we go for Bristol Farms’ wealthy and educated quality and taste first, and at Lazy Acres we customers. “We use the paper, and other go for natural and organic first, but there is papers alike, for timely inserts,” says Davis. some overlap,” Davis explains. “For example, in Produce, there may be 160 organic items at DAILY DISTRIBUTION Lazy Acres, and 110 or 120 at Bristol at the Bristol’s daily challenge in servicing 18 same time. We learned to modify the same stores, including one in San Francisco, relates product to serve customers with different directly to the company’s 50,000 square foot tastes or dietary appeals — such as modi- distribution center, which is a part of the fying sushi. We do this by offering natural corporate complex in Carson. The distribution brown rice in addition to the traditional center also houses a central kitchen with a white rice. We’ll also include some more wide range of capabilities, providing the vegetable-type items that might not be tradi- stores with everything from organic breads to tional items from Japan, but they were 80 different soups. modified to accommodate customer dietary “Historically, grocers have tried to provide preferences for vegans or natural food what customers want. I think we need to customers at Lazy Acres.” develop a constant rapport in our stores. In addition to sourcing specific produce When customers ask our staff, ‘What’s the items for each store’s particular clientele, best cut of this? What’s the best peach now? Bristol utilizes a variety of marketing tactics Tell me about this product,’ we go out of our to notify its customer base about what’s new way to deliver that product. Now we have a at the stores and what to look for during their customer who trusts us, and who asks, ‘What’s next shopping experience. better for my family?’” “We have a digital marketing person in the “Bristol’s distribution system is predicated advertising department, and her sole job is on the needs of the stores, not the other way social media and digital-based media, such around,” explains Davis. “Oftentimes big as sending e-mail blasts to our opt-in companies that deliver standard pack groceries subscribers,” says Davis. “For example, we will tell a store how many deliveries it needs. just executed a promotion through e-mail That store then needs to live off that delivery offering a peach pie. We redeemed more for the week.” In regards to his thoughts on coupons the first day than we have done in deliveries from local farmers, Davis says, one week with a different coupon. That e- “Believe it or not, in Southern California, mail also went to customers on Facebook and where there are 25 million people, we have Twitter and we track it all. I wouldn’t say e- lots of purveyors just an hour or two away.” blasts are strong enough yet to replace “In our produce department, the store traditional media, but it’s rapidly growing, doesn’t order until the afternoon for what it and the concept is really clear.” pb

Editor’s Note: We thank the Food Marketing Institute for its recommendation of independent members who are recognized for their outstanding produce operations in this series of PB articles.

24 PRODUCE BUSINESS • SEPTEMBER 2013 FL Natural_Ad 8/22/13 9:53 AM Page 1 Coverstory-Green buy_Layout 1 9/18/13 5:50 PM Page 1

SPECIAL REPORT The‘Why’ Behind The

GreenUNDERSTANDING CONSUMER MOTIVATIONS Buy IN SUSTAINABLE PURCHASES

t seems everywhere you look today, products or companies. Understanding this gap sustainability has worked its way into the goes a long way toward explaining why, often times, fabric of consumer culture. Whether it is consumers don’t buy the sustainable products they manufacturers marketing products with claim they are interested in. sustainable attributes, including eco- In today’s World of Sustainability, there is a Ifriendly and organic produce, or retailers widening chasm between what consumers say they How companies showcasing their latest efforts to reduce energy, want and what they actually buy. On the one hand, can bridge the water or waste, the world of sustainability and consumers say they want to be eco-friendly and gap between corporate social responsibility (CSR) continues to they want companies to behave sustainably. On the sustainability grow in depth and scope. other hand, when companies do take action, aspirations and Consumers haven’t been immune to such consumers don’t always give them the credit they marketing, or to headlines declaring global might expect. There is an underlying psychology purchasing behavior. warming, oil spills, foreign labor scandals, or animal behind why consumers don’t always prioritize welfare issues. At The Hartman Group, over the sustainability in their purchase behavior. BY DAVID WRIGHT, SENIOR course of our 25-year immersive journey tracking The Hartman Group’s Sustainability 2013: When MANAGER, MARKETING AT consumer aspirations and behaviors to incorporate Personal Aspiration and Behavior Diverge report THE HARTMAN GROUP sustainability beliefs and practices into their shows how the consumer definition of sustainability lifestyles, we’ve witnessed consumers voicing their has broadened: own responsibilities as “agents of change” at • The number of consumers reporting they are household, community, and global levels. familiar with the term sustainability has grown Yet today, our most recent research finds that from 69 percent in 2010 to 74 percent today. the gap is widening between familiarity with sustain- • The number of consumers stating they can ability and the ability to name specific sustainable identify a sustainable product has also grown,

26 PRODUCE BUSINESS • SEPTEMBER 2013 Coverstory-Green buy_Layout 1 9/18/13 5:51 PM Page 2

from 21 percent to 23 percent, but at a • Contribute to the economic viability of a good value. smaller rate — meaning the gap actu- the community ally increased since 2010. • Are sincerely interested in their What Does This Research Mean? The research uncovered the fact that how personal well being Sustainability remains an unwieldy and consumers think about product categories Today, while these concepts continue to emerging platform for both companies and are more relevant to “the gap” than how they resonate with consumers, understanding consumers to engage upon. Companies can think about companies. consumer priorities at the product category bridge “the gap” by addressing barriers of level provides greater insight into why knowledge, practicality, and faith. If sustain- Examining The Consumer Side Of consumers often fail to “walk the green talk.” ability is to be a centerpiece of your brand The Sustainable Product Purchase Gap At the category level, consumers speak to identity, make the most of it by positioning In 2013, eight in 10 Americans (84 the sustainability values that actually guide your activities in a way that resonates with percent) say they consider sustainability their purchase decisions; they tend to eval- consumers. Bridge “the gap” between aspi- when making purchase decisions, and thus, uate companies from a more general rations and behavior for consumers by reside within the World of Sustainability, a perspective, one that originates in the media addressing these barriers: proprietary model created by The Hartman and social discourse. Knowledge. Explain your actions, position Group to help explain consumer motivations The values that guide purchase decisions and priorities so that consumers understand and behaviors around sustainability. vary by category. In produce, for example, why sustainability matters to you; don’t Consumers’ orientation in the World of Dimensions of Responsibility relating to preach, teach or admonish. Sustainability ranges from Periphery (main- natural agriculture and supporting the local Practicality. Consumers are pragmatists tain only minimal, infrequent and less economy are most salient to consumers. and need a reason to believe; don’t make intense involvement) to Core (most intensely (Figure 1) sustainability a tradeoff problem for involved). The World of Sustainability comprises four zones of responsibility: Personal, Social, Envi- Figure 1: ronmental, and Economic. Each zone is Supporting Local 37% Most Important composed of various considerations, which Economy we refer to as “Dimensions of Responsibility.” Dimensions of These Dimensions of Responsibility are Responsibility culturally relevant criteria that consumers in Produce use to assess how economically, environ- mentally, or socially responsible a company’s Natural Agricultural Methods/Practices 35% practices, brands, products or services are, and the degree to which they benefit the consumer personally. Personal Benefit is a unique consumer- Social Zone Environmental Zone oriented zone that explains how consumers Maintain Natural view sustainability, along with conventional Resources 30% Economic Zone zones that include environmental, social, and economic constructs. In order for consumers to see meaning in sustainability, Importance they must see some degree of personal Source: Sustainability 2013: When Personal Aspiration and Behavior Diverge, The Hartman Group, Inc. benefit, regardless of their orientation in the World of Sustainability. According to The Hartman Group’s From the consumer perspective, the most consumers. Marketing Sustainability 2010 report, important dimensions of responsibility in the Faith. Provide evidence that choosing consumers understand sustainability in produce category relate to environmental your company/product will have an impact; terms of companies and brands “doing the and economic zones — in particular, natural don’t put the responsibility on the consumer right thing” and “being responsible.” agricultural methods and support of local for making a difference. Consumers were looking for companies that: economies. While the fourth zone, personal Recognizing and addressing these • They can depend on to keep their envi- benefit, is not shown here, it is almost always barriers and understanding what consumers ronment clean and healthy the most important zone for consumer prod- ultimately value at the category level will help • Are not aloof, but participate in local ucts. With regard to personal benefit, as they companies reach those 84 percent of activities and the social well-being of shop, consumers are looking for produce consumers who consider sustainability when the community that looks bright, feels firm, smells fresh and making purchase decisions.

About The Hartman Group: The Hartman Group is the principal provider of global research on consumer culture, behaviors and demand, and a leading advisor to the world’s best known brands on market strategy. Through a unique suite of integrated custom, primary research capabilities, market analytics, and business strategy services, The Hartman Group uncovers growth opportunities for clients across the consumer-driven marketplace. The Hartman Group is internationally recognized for breakthrough perspectives on emerging trends and evolving consumer behaviors in health and wellness, sustainability, and food culture. For more information, please visit hartman-group.com.

SEPTEMBER 2013 • PRODUCE BUSINESS 27 Coverstory…state of sustainabilty_Layout 1 9/18/13 5:33 PM Page 1

THE STATE OF SUSTAINABILITY In The Produce Industry By Jim Prevor, Editor-in-Chief

“THE LIVING SKYSCRAPER: FARMING THE URBAN SKYLINE” —BLAKE KURASEK Is this the FUTURE of produce production? he issue of sustainability has acquired some odd flavors its very essence. Intrinsic in the argument for sustainability is that over the years. Most notably, sustainability has come to be there are three forces at play: the economic, the environmental and seen as a set of demands that retailers dictate to the social — the famous “triple bottom line” of people, profits and planet. supply chain. Yet the retail focus on sustainability has almost completely negated This is both odd and dangerous. It is odd because the whole issue of social or people. producers and other vendors have every incentive to find efficien- Few retailers have wanted to touch issues related to their own ciesT and sustainable ways of doing things. It is dangerous because staffing and pay practices as part of a sustainable approach. They retail dictates tend to paint with a broad brush, and the imposition of pay lip service to the environment — so called “green washing” — but supply chain standards is likely to create its own waste. it is hard to identify a single initia- If a retailer, out of concern for water conservation, decides to tive undertaken by a publicly held In the long run, sustainability impose water usage standards, such standards typically hit both the retailer in which it chose to do may turn out to be a win grower operating in a parched area where water is scarce and the something for the environment at for producers, because grower on the edge of a bluff in which a rolling river falls to the sea. the cost of its own profits. regardless of dictates from In such situations, the retailer’s dictated sustainability standards So what was once a hearkening retailers or government, may indeed allow the retailer to bask in the glory of statistics that to a new way of thinking about only profitable operations show its policies have reduced supply chain consumption of water, business and life — a vision of the can be sustained. Vertical carbon or whatnot, but the capital invested to achieve such reduc- world reordered around sustain- farm initiatives and propri- tions is lost in the calculations. In reality, our farming operator on the ability priorities — has, in fact, etary produce varieties may bluff invests good money to achieve no purpose at all, and that is simply become a quest for effi- lead to major power shifts the least sustainable of all options. ciency, and with much of that in the industry. Sustainability itself has been tortured by retail policies that deny efficiency expected to be gained,

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The State Of Sustainability

not at retail itself, but in the supply chain. The located in high electric-rate states, which able to hire more teachers. liberating spirit of sustainability has come to also tend to be states that offer the largest Standards intended to benchmark be felt like a boot on the back of suppliers — subsidies for alternative energy, could send sustainability such as LEED (Leadership in especially production agriculture — out press releases celebrating their solar Energy & Environmental Design) have turned compelled to invest without the promise of panels, wind mills and fuel cells. Each instal- out to be wasteful in and of themselves. profitable return or the assurance to main- lation of which represented a Want to “up” your LEED status? Build tain business with the retailer. non-sustainable waste of capital and a showers in your new supermarket so workers horrible drain on the public purse, as grants can cycle to work and shower up. Yet whether Resources Misallocated and tax credits reduced public revenues so any workers ever use that shower is irrele- Much of the publicity garnered by retailers elites could celebrate feeling “green,” while vant to the calculations, so once again, on sustainability over the past few years has poor children were stuck in over-crowded precious capital — the scarcest resource of been something of a sham. Those retailers classrooms because money was not avail- them all — is spent in a misguided effort to not achieve sustainability but to pay homage to credentials that allow one to claim to have made progress on sustainability. Yet it is a pernicious and evil tendency that plays to the vanity of certain social classes while impov- erishing us all. Indeed the whole drive for energy effi- ciency may yet have turned out to be imprudent. Normally decisions about conser- vation are made based on price signals from the market, so sustained high prices for energy lead millions of market participants to take all kinds of actions. For example, indi- viduals may buy more fuel-efficient cars, car pool or decide to live closer to work. Businesses evaluate suppliers on deliv- ered costs, which include transportation costs. When the government intervenes to encourage specific technologies — say ethanol or electric cars — it goes beyond those price signals to alter the market. The idea, of course, is to spur innovation with the hope that by creating incentives in specific markets, R&D funds will flow, and what was previously not viable will become viable. Our experience, however, shows that government intervention is misguided. Perhaps subsidies for research might make sense, but subsidies for inefficient technolo- gies just become sops for money. Germany is the world’s largest solar market as measured by installed capacity, primarily due to enor- mous subsidies given to those who produce solar energy. Most notably, these are high “feed-in tariffs,” which are subsidies that util- ities are forced to pay to buy solar power that others produce and pump into the grid. The cost of the subsidies and the higher power costs in Germany these subsidies necessitated have caused a revolt, and after imposing billions in cost for no known benefit, the government is trying desperately to unwind these massive subsidies. And this is all before the full implications of improved oil and gas extraction technolo- gies, everything from surface mining and in-situ production from bituminous sands,

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The State Of Sustainability THE LIBERATING SPIRIT OF SUSTAINABILITY has come Carbon Footprint Expands to be felt like a boot on the back of suppliers and, Despite Best Intentions especially, production agriculture, compelled to On the consumer level, the blossoming of the sustainability movement in produce has invest without the promise of profitable return or been in the form of the “local” explosion — the assurance to maintain business with the retailer. yet even here both the reality and the prospect are uncertain. There certainly has been a boom in the marketing of local product and a rise of an such as the Alberta tar sands, to hydraulic The production released by fracking has almost parallel industry in which buying fracturing are realized. After years of decline, lowered the cost of natural gas in the U.S. produce is treated as a kind of entertain- U.S. oil production has risen to levels more than 75 percent from its relatively ment. Farmer’s Markets, CSA’s (Community not seen since 1989, thanks particularly to recent highs. Natural gas with the same Supported Agriculture) and whatnot have the Eagle Ford Shale range in Texas, which energy content as a barrel of oil sells for exploded, yet the impact on either retail sales now produces more oil than Iran. The around $18. And the world is just starting to or consumption has been virtually unde- Bakken Shale range in North Dakota also respond. In May of this year, the United tectable. This leads to the assumption that has created an unprecedented boom for Kingdom dropped its ban on fracking to allow though people may enjoy the day visit to a that state. companies to explore for shale gas reserves. farmer’s market or the psychic pleasure of During the last week in May 2013, the Of course, this dramatic change in the supporting a farmer with a commitment to a United States produced more oil than it energy landscape means that all these CSA, the purchase of an unusual heirloom consumed for the first time since February efforts to force investment into so called tomato or the delivery of three pounds of 1995. Imports of crude oil into the U.S. are “sustainable” sources (such as wind and rhubarb does not actually change consump- expected to be down to 5.4 million barrels a solar) may not have been sustainable at all. tion or procurement practices very much. day next year; in 2005, imports were at 12.5 Indeed the implications are that these efforts Though there has certainly been a million barrels a day. Indeed the hottest to promote favored sources of energy may concerted effort to cultivate sustainable energy question today is whether to allow the have caused colossal misallocation of produce farming outside of California, the export of U.S. liquefied natural gas. resources in a most unsustainable way. consequences are still not that substantial

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— leading to a sense that much of the and imports of fresh-market produce the fact that Cleveland now has 3,000 acres “local” explosion is marketing. The National account for a smaller, though still substan- of vacant lots resulting from the shuttering of Agricultural Statistics Service is filled with a tial, portion of consumption. manufacturing operations. The Ohio State wealth of information. It shows that Sophia Wu Huang, Kuo S. Huang and study found that if all this land was used peaches (a product on which much local Hodan Farah Wells of the Economic growing produce, raising chickens and attention has focused for years and where Research Service of the U.S. Department of putting beehives on the land — plus if 9 many believe local producers are believed Agriculture report that “54.3 percent of fresh percent of every occupied residential lot was to have an edge in flavor) still finds Cali- fruits and 25.2 percent of fresh vegetables made into a garden and if rooftop gardens fornia accounts for 74 percent of all U.S. in the U.S. produce market came from and greenhouses on commercial roofs were peach production — accounting for 97 imports during 1999-2010.” Imports are added into the mix — Cleveland could percent of processing peaches and 51 only likely to grow with shortages of land, produce between 46 and 100 percent of its percent of fresh market U.S. production. water and labor restricting the growth of U.S. fresh produce needs, 94 percent of its In contrast, California accounted for 48 production, and liberalized trade. Improved chicken and shell egg consumption, and 100 percent of U.S. fresh peach production in transportation technology, new solutions to percent of its honey. 2004. So after almost a decade of “buy phyosanitary problems (such as increased Of course, unutilized assets create oppor- local” promotion, fresh market peach use of irradiation and even more uniform tunities, but the study has this kind of production is more concentrated in California food safety rules) are likely to drive imports mercantilist economic assessment that than previously. even higher in years to come. simply ignores comparative advantage. Sure, Indeed, for all the local marketing efforts, Cleveland could produce all the bananas and the continuous trend for U.S. produce Is There An Answer In pineapples its people want, but only at much consumption has been for “food miles” to Urban Agriculture? greater cost than such produce could be actually increase, as imports continue to The only hope of changing these patterns acquired elsewhere. Indeed, even more suit- expand as a percentage of U.S. produce may not be good news at all. Researchers at able crops are problematic. Right now, the consumption. The FDA claims that nearly Ohio State University’s Center for Urban Envi- Brooklyn Grange, the Long Island City, NY- two-thirds of the fruits and vegetables ronment and Economic Development based rooftop commercial farm, is the consumed in the U.S. are imported. Of trumpeting the possibility for Cleveland and leading rooftop operation in the United course, that number includes all fruits and other “post-industrial cities,” such as Detroit, States. Its two rooftop farms grow over vegetables, whether canned, frozen or fresh, to become self-sufficient in food, highlight 40,000 lbs. of organically raised — though

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…FOR ALL THE LOCAL MARKETING EFFORTS, the NY-based greenhouse financer and operator BrightFarms design and manage the rooftop continuous trend for U.S. produce consumption has greenhouses, but structural issues and been for “food miles” to actually increase, as imports zoning concerns led the project to morph into a regional greenhouse that supplies continue to expand as a percentage of U.S. produce both McCaffrey’s stores and has enough consumption. excess product to be sold by John Vena Inc., a wholesaler based on the Philadelphia Wholesale Produce Market. not organically certified — fresh produce purposes. First, by replacing originally The project has been controversial each year. Yet New York City had to invest proposed rooftop parking with the green- because the greenhouse is being built on public funds to help Brooklyn Grange expand house, it paved the way for zoning approval public land leased at what some perceive to beyond its Long Island City, Queens, location of the complex. Second, the location directly be a sweetheart rate. to one at the Brooklyn Navy Yard. above the store allows for a kind of hyper- The basic business model of all these The lack of financial feasibility of urban local marketing. Indeed, beyond marketing proposals is somewhat curious. Greenhouse agriculture on a commercial scale means the specific produce grown in the green- developers, such as BrightFarms, basically that many of the proposals are more house, retailers involved in projects such as go to supermarkets and ask for a contract at marketing- than production-oriented. this often hope for a “halo effect” in which an agreed price on future production. This The new Whole Foods Market being built consumers might think all the produce sold eliminates the marketing risk of the projects. on the edge of the notoriously dirty Gowanus by the store is grown locally. It does not eliminate the growing risk — as Canal in Brooklyn is supposed to be topped Because the Whole Foods project is evidenced by Backyard Farms’ recent prob- with a greenhouse, designed, built and oper- being built from scratch with the greenhouse lems with whitefly infestation at its ated by New York, NY-based Gotham Greens planned from the start, it is structurally greenhouses in Portland, ME. — a commercial greenhouse operation that feasible and permissible by zoning. In But why should a produce production also receives subsidies in the form of grants contrast, many other proposals for rooftop facility need a contract? Since time imme- from the New York State Energy Research & production on top of retail stores seem not morial, farmers have raised their crops and Development Authority. to be panning out. Yardley, PA-based McCaf- then sold them on the open market. It seems The new greenhouse seems to serve two frey’s Markets had plans to have New York, as if the price of this product won’t be

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competitive with other sources. Additional THE LACK OF FINANCIAL FEASIBILITY of urban problems come to mind: What about food safety certifications? Most retailers won’t buy agriculture on a commercial scale means that produce from vendors not third-party many of the proposals are more marketing- than audited. Yet there is no mention of third-party audits by any of these companies. production-oriented. There is, of course, a possibility that urban farming will yet be an important component of agricultural production. United States and one in Canada: arugula, basil, and sweet basil vinaigrette. Dickson Despommier, a longtime professor Singapore Canada in the department of environmental health The island country of Singapore Local Garden (www.localgarden.com) sciences at Columbia University, now runs announced that a commercial version of is a newly constructed two-story tall, The Vertical Farm Project. The visionary a vertical farm, Sky Greens, was now in 6,000 square foot transparent building project is based on the fact that by 2050, operation (skygreens.appsfly.com). It is a located on a parking garage rooftop in almost 80 percent of the planet’s population four-story, transparent structure fitted Vancouver, British Columbia. It is outfitted will live in urban areas, and the population with A-frame growing systems that with an innovative growing platform will increase by 3 billion people. produce leafy green vegetables. It uses system (Verticrop: www.alterrus.ca/verti- Based on current standards of agricul- sunlight as a source of energy and crop/the-technology/) that produces tural productivity, this means that more captured rainwater to drive a clever pulley micro-green salad ingredients, baby farmland than is represented by the nation system to move the plants on the grow spinach, and baby kales. of Brazil needs to be added to food growing racks, ensuring an even distribution of Japan capacity of the world to keep everyone fed. sunlight for all the plants. Plant factories (also know as vertical This amount of land doesn’t exist. Dr. USA farms) have been up and running for at Despommier’s solution? Farm vertically. Farmed Here (www.farmedhere.com) least two years. Some have been opera- Although the project’s website (Vertical- opened in 2013 as a commercial-level tional for a lot longer than that. There are Frams.com) is filled with visionary proposals, vertical farm housed in a 90,000 square some 50 of these indoor vegetable farms he identifies several more modest vertical foot post-industrial building in Bedford spread out over most of the country (e.g., farms now operating, including one in the Park, IL. It produces three products — Nuvege/nuvege.com;Angel Farms/angle-

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farms.com). Half of them employ sunlight If we combine the urban vertical farm maybe even be nice! as the sole energy source for growing initiatives with the initiatives to produce This could lead to a more profitable crops, while an equal number use some proprietary produce, such as The Grapery’s production sector, and in that thought, is a variety of LED grow lights. Most of those Cotton Candy grapes (a proprietary grape little secret about sustainability that is not using grow lights resemble large, window- that was initially sold only at the Sains- often noted. People sustain what produces less warehouses. All of them produce a bury’s chain in the United Kingdom) one profits for them, so a more profitable wide variety of high yield leafy greens. can quickly imagine a major power shift in production agriculture sector will lead to One Japanese website estimates that the the industry. It may always be possible to the most sustainable practices. Essentially plant factory industry will grow by over 70 buy produce, but to buy the produce the whole idea of retail-driven sustainability billion yen over the next five years. Most consumers want — from the right local may be a mistake. True sustainability derives factories funded by private investment facility or of the right proprietary variety — from having profitable operations that their are largely driven by consumer demand may not be easy at all. Retailers may have owners consider worth sustaining now and for healthy, radiation-free food in the to pay up, change buying practices, and on into the future. pb aftermath of the Fukushima meltdown. It is fair to say that retailers are falling all over themselves for this hyper-local concept. The Farmed Here project in Chicago lists Whole Foods Market, Mariano’s, Pete’s Fresh Market, Shop ’N Save and other retailers as customers. Altering Future Supply Chains Farmed Here is a certified organic hydroponic growing operation stacked five to six levels high, integrated with an aqua- culture operation and producing basil, arugula and bottling vinaigrette. The oper- ation has plans to grow salad greens. This model just may be a modest expression of the future of both local and sustainable. If so, combined with other trends, the future may be troubling for retailers. The last half century has seen a rise in retail power vis-à-vis farmers. As retail buying consolidated and production efficiencies and expanded trade brought surpluses, the Power of the Purchase Order came to rule the industry. Yet, if hyper-local turns out not just to be a gimmick (like a rooftop farm on a supermarket) that accounts for a tiny share of sales but, instead, turns out to be an actual business in which larger indoor, vertical urban farms supply the community, it is very possible that the retail supply chain will be constrained. These facilities are diffi- cult to site and expensive to build — even more so if they grow in height and complexity as Dr. Despommier predicts. There may not be as many options for retailers to buy from urban farms as there are in Salinas, CA. In fact, in many parts of the country, there may be just one large controlled environment agriculture opera- tion from which to source local product. Indeed retailers may be at risk that these local vertical farms won’t sell them at all if the retailers clip the bills or if the green- house operators don’t like the chain’s buying practices.

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SOUTH AFRICAN CITRUS EXPORTS A First-Hand Look At South Africa’s Citrus Exporters (Part 2 of 2)

A confluence of profound actions by South Africa’s citrus growers and their U.S. import and retail partners beckons exciting growth. WRITTEN BY MIRA SLOTT PHOTOGRAPHY BY JULIA SELTZER

ar away from the seasonal brisk wintery chills nipping at his fertile citrus orchards nestled in the heart F of South Africa, Gerard Stone wiped the sweat off his brow on this hot, humid summer afternoon at bustling Columbus Circle in New York City. Stone, along with other members of the Western Cape Citrus Producers Forum (WCCPF), the United Nations, the Consulate of South Africa, and the Mandela Founda- tion, were participating in a variety of activities to celebrate Nelson Mandela Day in Manhattan. Stone is a director at the (WCCPF) as well as a grower and director for Everseason in Citrusdal, South Africa — a historic citrus growing hub. Weeks earlier, he welcomed PRODUCE BUSINESS to witness a robust harvest that initiated the season’s first select Gerard Stone, director at WCCPF, premium fruit for exporting to the U.S. [See A engages New Yorkers First-Hand Look at South Africa’s Citrus during event for Exporters Part I in PB’s July 2013 issue.] Nelson Mandela Day. Stone cheerfully distributes his ripe, juicy oranges and engages the diverse and curious crowd of talkative New Yorkers. He chised. Vast in its goals, Harvest of Hope largest importers of South African citrus to educates many surprised locals and visi- provides land ownership and company North America — headquartered in St. tors on South Africa’s unique summer shares to disadvantaged workers, as well as Laurent, Canada. citrus program, as well as elicits their supporting skill development, education, “The exclusive program we have with pledges of 67 minutes of public service in childcare and healthcare. Whole Foods is marketed as Fair Trade with tribute of Nelson Mandela’s 67 years of Retailers, such as Whole Foods Market, strict accreditation requirements. It origi- service to humanity. have teamed up with WCCPF members on nated on one of the ALG Farms, a vertically For the WCCPF, the pledge to take action impactful Harvest of Hope projects. In addi- integrated family business with roots dating and inspire change is symbolic of a much tion to the moral imperative, there could be back to 1750. The farm is jointly owned by greater effort that encompasses the a marketing incentive for more supermarket the workers and meets a number of criteria compassion behind its business principles chains to participate since corporate social based on social issues,” says Solomon. and U.S. export strategies to spur joint part- responsibility, sustainability practices, and “Fruit can be marketed and labeled as nerships with U.S. importers and retailers. Fair Trade are becoming increasingly linked Fair Trade and carries a premium price. Then The WCCPF plays an aggressive role in to consumer buying preferences. the fruit comes to us, and we pass it on to South Africa’s challenging post-Apartheid “A big part of why we are participating in Whole Foods. At the end of the day, retailers National Development Plan. The Forum also Harvest of Hope is to socially uplift and and consumers pay, and the money goes pioneered a groundbreaking economic improve lives of all people in the supply directly to a bank account to help the empowerment program called Harvest of chain,” says Marc Solomon, senior vice pres- workers. Funds could be for education, Hope to transform the lives of the disenfran- ident, Capespan North America — one of the recreation, housing, etc. The employees

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work with a rolling fund and get to decide is a social responsibility,” says Solomon. “It’s where the premium goes,” Solomon unfair to say it comes solely from one’s good- explains. “This program is a good example ness of heart. It’s not philanthropic; it’s for of the community working together and a everyone’s benefit. The workers do better, U.S. retailer stepping up to the plate,” the community is uplifted, and the fruit is Solomon adds. He also points out that Fair successfully marketed. It’s a domino effect Trade is known in the U.S. as a way of through the supply chain to make a differ- branding that consumers understand. ence in people’s lives, where everyone “I think the industry recognizes that there profits,” Solomon says. HARVEST OF HOPE AND RIGHTING RACIAL INEQUALITY BY MIRA SLOTT

Nearly 20 years since South Africa’s abolishment of Apartheid and the end of white minority rule, a conspicuous and deep chasm persists between the haves and the have-nots. Despite progress in black household incomes, the most recent census reports show earnings are one sixth of whites, with unfathomable poverty, unemployment and inequality plaguing the over- whelming black majority. “We have a country with the biggest economic discrimination. We have Madele Mouton at childcare facility. certain responsibilities to make the ‘Rainbow Nation’ work and to empower Harvest of Hope and the National Devel- the low-income and disadvantaged. We opment Plan to eliminate poverty, as well accepted the challenge as part of our as a process on how to tackle racial business model,” says Johan Mouton, inequality through the Social Compact chairman of Western Cape Citrus (established in January of 2013),” Smit Producers Forum (WCCPF) and explains. “The citrus industry can managing director of Mouton Citrus, a contribute significantly to these mandates. family grower/exporter in Citrusdal. “We We can offer productivity, social welfare, have to be realistic on what the govern- food security, land reform, redistribution ment can provide,” adds Mouton. of wealth, job creation, job security, educa- “Commercial agriculture has always tion, training, research development, been perceived as the terrible skunk in responsible use of natural resources, etc. All the legacy of Apartheid,” says Gert these elements lead to a domino effect Kotze, co-chair of the (WCCPF), and across the supply chain, creating wide- managing director of Cedarpack. “One spread economic and social impacts,” should never underestimate the true explains Smit. character and spirit of the South African “In our foundation process, everyone producers.” contributes; the retailer pays a little, we pay “We’re at a crucial turning point a little and the consumer pays a little,” where the government and the private explains corporate responsibility manager, sector are joining forces to execute Madele Mouton of Mouton Citrus. change,” says Piet Smit, vice chairman “We’re not there simply to build the of the Citrus Growers Association, a infrastructure,” emphasizes Johan Mouton. director at WCCPF, and producer at “We have a responsibility to care for our Cedarpack. communities and the quality of education “There are synergies between the and services we’re providing.” pb

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SOUTH AFRICAN CITRUS EXPORTS

“Mainly because of Nelson Mandela, my management,” says Cloete, who relished a family decided to stay and prepared to share newfound responsibility to help guarantee our land,” says Gerrit van der Merwe, a the company’s success. director of WCCPF and co-owner of ALG Juanda George, supervisor, fruit reception Farms. “This is the second year there is a for Goede Hoop, started as a seasonal dividend on our jointly owned farm. As we worker and became a shareholder. “When I expand production, we are passing on a walk on the premises, it’s a different greater share of that ownership.” mindset. It’s a better place. I feel privileged to During PRODUCE BUSINESS’ tour of ALG receive shares; something I didn’t ask for. It’s Farms’ childcare and afterschool facility, a a unique concept to this company and others young childcare helper, Dennelize Ovies, in the community look up to us because proudly explained how she received a we’re co-owners,” says George. scholarship from Whole Foods to obtain a Left to right: Donavan Cloete, section head, “We definitely value the Harvest of Hope university degree in child development. ALG quality, and Juanda George, supervisor, fruit program championed by the South African Farms, like other WCCPF members, invests reception at Goede Hoop. citrus growers, and we want to be a part of in multifaceted programs to better the lives it,” says Paul Kneeland, vice president of of its workers, their families and their South Africa. produce, floral and meat for Kings Super- communities. “When the company established an markets, headquartered in Parsippany, NJ. “South Africa’s labor-intensive agriculture empowerment trust to issue shares to “Harvest of Hope goes well with our industry is under pressure with land claims employees, using a criteria of years of service corporate strategy and principles, which and cross-industry labor issues, making it and seniority, and giving them voting powers starts with supporting people in our own difficult for farmers to remain sustainable,” like any other grower shareholder, some stores to better their situation. It goes hand says Stiaan Engelbrecht, a director of WCCPF authority figures were fearful of the conse- in hand with sustainability, organics, the and managing director of Everseason — the quences,” says van Eeden. “Our competition health movement, caring for the environ- export company he founded. said, ‘in making employees co-owners, you’ll ment and social responsibility,” says “I’m investing in agriculture because I burn your fingers; your employees won’t take Kneeland. believe in its future,” Engelbrecht says. “We orders; there might not be dividends; they “For the disenfranchised in South Africa, have 24 farms; seven are black empower- won’t invest back in the company.’” Nothing Harvest of Hope can be truly life-changing. ment farms, and two of those are 100 could be further from the truth. It’s a bonus for consumers to contribute to percent owned by the workers. A grower “There was concern that employees this important cause through their wants to own his land and to have control would sell shares, but not one has done so, purchases, but what’s most important, is over his future. As partners, people under- and when they are able to get more shares, bringing in product that tastes good and stand where the costs come from and want they want to invest and buy more,” says van adds to variety in the produce department,” to farm better. We need to put trust in each Eeden. Kneeland acknowledges. other’s hands,” adds Engelbrecht, describing “When the company handed out our first “This time of year is challenging for a revitalized company culture. dividend, I felt proud to be a co-owner,” says citrus,” says Kneeland. “All the tree fruit is Acting to right inequalities often takes Donavan Cloete, section head, quality with out and the consumer’s mind is in summer courage and steadfast resolve, according to Goede Hoop. “It’s my company, and I’m also mode with cherries. When South African Gabri van Eeden, a founding director of a board member. I’m not a lower class citrus comes out, people are eating WCCPF and managing director of Goede director. I’m a director like anyone else, peaches, plums and nectarines every day. Hoop, one of the largest packing houses in trusted with information, although I’m not top People are looking for a break, and citrus

Childcare helper, Dennelize Ovies (back row, second from the left) and the children from ALG Farms’ childcare and after school facility.

SEPTEMBER 2013 • PRODUCE BUSINESS 39 S African Citrus II_Layout 1 9/13/13 6:42 PM Page 4

SOUTH AFRICAN CITRUS EXPORTS

can be that oasis. empowerment through education. I feel Doug Groendyke, produce manager at the that education is the strongest way to help Kings’ Gillette, NJ, location, says, “It’s about the underserved. We can give and give educating customers on what’s in season, charitable things, but educated people and doing a better job of marketing. South understand their potential, and they can Africa does a nice job on the fruit,” says build a pathway to recognizing opportuni- Groendyke. “Those fresh pears are just in ties and better their lives,” says Fourie. from South Africa,” he adds, noting that While initial attempts to enter the U.S. Kings sells South African apples as well. market were fraught with logistical prob- Petri Fourie, managing director at Goede lems and product inconsistencies, the Hoop Vrugte, a grower/exporter in Ceres, 250-plus member WCCPF has ironed out South Africa traveled to the U.S. to attend the kinks to accommodate leading U.S. various WCCPF-related activities — including retailers’ stringent quality standards and several promotional events at different customized specifications. Kings’ locations — to give consumers a “We’re growing the South African summer personal account of his citrus operations. citrus business every year, bringing in more “The strategy is to get U.S. consumers to varieties, putting out bigger displays and recognize citrus as a summer product, and demos, and increasing promotions,” says to show them South African citrus has a Kneeland. “We’re finding South African citrus superior flavor and taste,” says Fourie. much more consistent in flavor and sizing. Consistent quality stems from tightly knit and It’s shown phenomenal growth as far as strongly principled operations, which involve where the South African summer citrus Doug Groendyke, produce manager at the integrating Harvest of Hope ideals, according program started and where it is now. It has Kings’ Gillette, NJ, location. to Fourie. changed by leaps and bounds. And our sales “We have a firm belief in employee are showing the results.” pb

40 PRODUCE BUSINESS • SEPTEMBER 2013 Grimmway_Ad 8/22/13 11:08 AM Page 1 Marketing to Kids_Layout 1 9/9/13 7:47 PM Page 1

Appeal to parents with nutrition facts and to kids with colorful packaging. Marketing Produce To Kids

Expand your produce business by influencing the family rather than a single customer. BY CAROL BAREUTHER

t’s a myth that kids don’t like to eat 2006, and with nearly 1,400 moms of 8- to marketing at the Orlando, FL-based Produce healthy foods. This was the conclusion 13-year-olds, The Geppetto Group found that for Kids (PFK) and former business support of research conducted by New York, NY- moms wanted marketers to be their partners manager for produce at Acme Markets, a 114- Iheadquartered The Geppetto Group, an in helping kids eat right. Specifically, 75 store chain headquartered in Malvern, PA. integrated marketing agency that focuses percent of moms said they would like Kid-size produce in colorful packaging as on youth-inspired, consumer-insight based, marketers to make healthy products seem well as character branding and eatable and culturally relevant marketing programs cool and fun for kids, 56 percent wanted convenience are all tools CPG companies and products. In the company’s 2005- healthy products their kids would enjoy employ to successfully attract kids and moms. conducted study, Kids, Food and the Health eating, and 48 percent wanted marketers to Produce companies are also creating products Dilemma, over 600 8- to 10-year-old kids were either sponsor or fund programs to teach kids that put these tools into play. asked their opinions on healthy food and healthy eating and physical activity habits. eating habits. Some key results showed that 95 The produce industry is perfectly poised KID-SIZE & COLORFUL PACKAGING percent of kids were willing to taste healthy to meet this demand and take a big bite out “Packaging is of course important, but so food, and 89 percent were willing to eat more of the kid-friendly fruit and vegetable cate- is the size of fruit — sometimes that factor of, or the same amount of, a food that was gory. The first step is by taking a couple of can be overlooked,” says PFK’s James. “For identified as healthful. What’s more, when product development cues from the CPG example, as a mom of 7- and 3-year-old chil- asked to describe what a healthy food is, (consumer packaged goods) industry. The dren, I know my little ones aren’t going to bite answers included “made by nature,” “pure,” and second step is to sell these products via their into your average, large-sized apple and eat “a food that has vitamins and minerals.” tried-and-true reputations as well as take a the entire piece of fruit. Smaller sized fruit are Julie Halpin, The Geppetto Group’s fresh approach to merchandizing. perfect for little hands, or better yet, sliced founding partner and chief executive officer, apples are more appropriate.” says, “Kids get it. They know what healthy CREATING ‘KID-FRIENDLY’ “Many types of fruits and vegetables are food is, and I’d bet the answers would be even PRODUCE PRODUCTS naturally kid-size,” points out Elizabeth more positive today. This bodes well for fruits “Companies that are diving into the kid- Pivonka, Ph.D., R.D., president and chief and vegetables. The time is right for produce friendly produce category are challenged to executive officer of the Produce for Better marketers to talk to kids.” create a product that is tasty and eye-catching Heath Foundation (PBH), in Hockessin, DE. There’s also a great opportunity for for kids, while at the same time, healthy, easy “For example, there are small apples and produce companies to partner with moms. In and safe so moms feel good about purchasing pears, plums, apricots, grapes, kiwi, baby follow-up landmark research conducted in it,” explains Trish James, vice president of carrots and cherry tomatoes.”

42 PRODUCE BUSINESS • SEPTEMBER 2013 Chelan Fresh_Ad 8/21/13 6:04 PM Page 1 Marketing to Kids_Layout 1 9/9/13 7:47 PM Page 2

Sun Marketing, in Minnetrista, MN. “It’s rele- vant and still an effective strategy to market to kids.” More importantly, branding is a valuable way to attract kids to healthful foods. Research published in 2012 by Brian Wansink, professor of marketing at the Dyson School of Applied Economics and Manage- ment at Cornell University in Ithaca, NY, and colleagues, revealed that when over 200 8- to 11-year-olds from ethnically and economi- cally diverse neighborhoods in upstate New York were offered a choice between simple cookies or apples with stickers on them of popular Sesame Street character, Elmo, the apples with the stickers encouraged more kids to choose the fruit. Bashas’ Ruhs says, “Kids are attracted to cartoon characters. Any big packaged food Small-sized fruit options such as apples of the most favored by kids, so we knew they company like Kraft, General Mills and and mandarins are offered to customers at would be a hit, especially in the smaller sizes. Kellogg’s, for example, caught on to this a long Bashas’, a family-owned and -operated 132- The strategy behind the brand is to offer the time ago. It’s not a coincidence that they’re store grocery chain based in Chandler, AZ. citrus and apple/pear varieties that kids love investing marketing dollars by promoting “There’s baby carrots and other ‘baby’ in a size that’s perfect for their little hands and their products with these characters.” veggies too,” adds Bashas’ registered dietitian, also conveniently packaged for moms.” In Ruhs adds, “If suppliers have licensed Barbara Ruhs, MS, RD, LDN. April, the Lil Snappers line extended to cartoon packaging or other branded cartoon- “The lack of a good home for small apples include a mixed bag with Sunkist Navels and logo packs, we’re happy to promote. Another and pears and the huge potential to market to Gala apples from Stemilt. great idea for suppliers is to offer stickers to moms and kids led Stemilt Growers, Inc. [in retailers. We can distribute these to stores to Wenatchee, WA] to develop and launch its Lil place directly on produce items or hand out at Snappers program in 2011,” explains “If suppliers have the cash register to customers buying the item. marketing director, Roger Pepperl. “We licensed cartoon I’ve also seen removable tattoos, balloons and wanted to create a premium pack with apple other in-store items that are kid-friendly.” varieties and packaging that appealed to kids.” packaging or Examples of two companies that have The Lil Snappers line features Stemilt- other branded capitalized on character branding are Chelan grown Braeburn, Fuji, Gala, Granny Smith, Fresh and Crunch Pak. Both have collabo- Honeycrisp, Piñata and Pink Lady apples cartoon-logo rated with Disney to use licensed characters along with Bartlett and d’Anjou pears in 3- packs, we’re happy to on their packages. pound re-sealable, stand-up pouch bags with Chelan Fresh, in Chelan, WA, started colorful kid-friendly graphics. The company promote.” placing Disney characters on its 2-pound offers display shippers and display bins for — Barbara Ruhs, Bashas’ clamshells and slider bags of cherries stand-out merchandising. four years ago. In addition, each bag or Pepperl says, “During test marketing, Similarly, Duda Farm Fresh Foods, Inc. in clamshell contains one of eight Disney moms and dads said they didn’t know we Oviedo, FL, offers its Citrines. Elena temporary tattoos. offered this size apple. We have, of course; Hernandez, marketing manager for Duda, Mac Riggan, vice president of marketing they just didn’t see it.” His biggest challenge explains, “Our colorful Citrines Grab-N-Go at Chelan Fresh, says, “I don’t have any hard “is that this pack is more expensive. However, tote bag includes four to five clementines data, but anecdotally, one mom told us she even at a higher retail we sell more bags. In that provide children and families living life bought 25 bags of cherries in order to get other words, our new pack at a higher cost on-the-go with a healthy and affordable enough tattoos for her daughter’s birthday outperforms traditional 3-pound poly bags.” snacking solution.” party. That’s 50 pounds of cherries. I think Earlier this year, Stemilt partnered with A kid-friendly, eye-catching zip-lock-top there is a lot of this going on.” The company Sunkist Growers to extend the Lil Snappers line. bag of kiwi, labeled Kiwi Kids, containing three now also markets small apples and mandarins Joan Wickham, manager of advertising and to four pieces of fruit will be launched this year in Disney character packaging. public relations for the Sherman Oaks, CA- by Madera, CA-based Stellar Distributing. Crunch Pak, a major sliced apple processer headquartered citrus cooperative, says, “Cara based in Cashmere, WA, united with Disney Cara, Mandarin, Minneola, Moro and Navel CHARACTER BRANDING to create the first co-branded line of produce. citrus varieties are currently available. These “Branding is important,” says Don The Disney line includes portion-pack fresh- varieties were selected because they are some Goodwin, founder and president of Golden cut flavored apple slices marketed as Flavorz

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“Moms, on average, allow their kids to snacking items such as Crunch Pak apples, Buddy Fruits, Dippin’ Stix, Natalie’s Orchid pick out four items per trip. This is good Island 8-ounce juices, Ready Pac Ready Snax news for the fruit and vegetable industry and store-cut watermelon and orange slices. The section was branded with shelf strips and since produce is usually the first depart- an iron man sign. The section also supported ment shoppers enter in the supermarket.” the Acme “Kids Club Card” program by offering members a free single serve bag of — Julie Halpin, The Geppetto Group sliced apples when they shopped in the store. As customers went to the dedicated section to in addition to apples with other items such as means we have an entire 11 to 12 SKUs out pick up their free bag of apples, they were cheese and pretzels sold as Foodles. The there in its own separate destination display.” then introduced to the rest of the offerings. Foodles are packaged in single-serve three Since space is always at a premium in the Melissa Arteaga Marti, social media and compartment containers in the shape of produce department, Watson looked at cate- communications manager for the Coral Mickey Mouse’s head and ears. gory data to ascertain whether the products Gables, FL-based Turbana Corporation Tony Freytag, national marketing director were cannibalizing or providing incremental (which markets kid-size baby bananas), for Crunch Pak, says, “To make our kids’ sales. “We found that the 3-pound Lil Snappers suggests, “Retailers can create mini destina- packaging even more fun, we have multiples were all incremental to the regular 3- and 5- tions within the produce department catering of artwork. For example, each of our Multi pound poly bags of apples. It’s two different to kids. This would encourage healthy eating Pak clamshells holds five bags of fruit, and customers. However, we chose not to carry the habits by providing a fun and exciting envi- those can have any one of four designs Lil Snappers’ navel oranges to prevent redun- ronment. Adding eye level shelves and on them. The labels vary, so it creates excite- dancy and to use the Lil Snappers bag to replace kid-friendly packaging within the destination ment on the shelf — interest for moms and our regular bagged and loose Cara Caras.” area could help with visual appeal.” fun for the kids. We also have a ‘Rub to Smell Lil Snappers display bins are imprinted with the Flavor’ sticker on the outside of the PBH’s “More Matters” logo and QR codes that PUT PRODUCE EVERYWHERE Flavorz packaging.” link to the product’s consumer website, which “Cross-merchandize fresh produce with provides product information, healthy and fun center-store items that moms are already HARNESS KID’S ‘PESTER POWER’ recipe ideas, and games. In addition, Rouses placing in their shopping carts,” suggests “There are really two demographic audi- calls out the display with a colorful 22-inch by Duda’s Hernandez. “For example, peanut ences when it comes to marketing to kids,” 28-inch Lil Snappers poster mounted on a free- butter or almond butter paired with ready-to- says The Geppetto Group’s Halpin. “There are standing floor stand. eat celery sticks.” kids and their moms.” Bashas’ Ruhs says, “Suppliers that offer bin Grimmway’s Borda agrees. “Merchandize Golden Sun Marketing’s Goodwin agrees. wraps and other point-of-sale (POS) mate- baby carrots in the dip and dressing aisle or “Kids are less apt to read signage or pack- rials are a great way for retailers to get the with Ziploc bags.” aging. It’s important to engage them visually attention of moms and kids.” “Take advantage of the greater amount of with something that resonates with their age In addition to destination displays, there refrigerated shelving at supermarket check- group and gender. We, as an industry, are are two other ways retailers can call out kid- out stands,” adds Reichel Food’s Wilson. better at marketing to younger kids than friendly produce products. “Merchandize our Dippin’ Stix in this loca- teens. Merchandizing strategies such as PFK’s James explains, “Just like organic tion in place of candy.” signage, displays and information about foods or packaged salads, health appeals to parents.” kid-friendly products need a “Research shows that kids shop with their home in your produce moms approximately one-third of the time,” department’s planogram. says The Geppetto Group’s Halpin. “Moms, Creating a destination in on average, allow their kids to pick out four your department for parents items per trip. This is good news for the fruit shows your commitment in and vegetable industry since produce is helping them find solutions usually the first department shoppers enter in for their healthy eating the supermarket.” worries. Furthermore, it Joe Watson, director of produce at Rouses allows you to bring in new Supermarkets, a 37-store chain based in products that may not other- Thibodaux, LA, has enjoyed sales success with wise have a place in your Lil Snappers by positioning the products planogram, ultimately driving front-and-center in the fall and winter, rather incremental sales.” than on the wall with the rest of their respec- During James’ tenure at tive categories. “We started the apple program Acme Markets, she created a year and a half ago with all six apple vari- the “ACME Healthy eties, and we now have expanded to the two Eaters” section. This was a 2-foot dedi- pear items and four SKUs of citrus. This cated space in the planogram for healthy PHOTO COURTESY OF SUNKIST

46 PRODUCE BUSINESS • SEPTEMBER 2013 Crunch Pak_Ad 9/5/13 11:36 AM Page 1 Marketing to Kids_Layout 1 9/16/13 1:24 PM Page 4 Side Note Side

EASY TO EAT ut up fresh produce and kids will Dippers, 2.5-ounce portion packs of baby eat more. Proof of this was peeled carrots with ranch dip. Cpublished in the May 2013 issue of “Innovation and new products are the the American Journal of Preventative life blood of CPGs,” says The Geppetto Medicine in an article written by Cornell’s Group’s Halpin. “It’s the ‘what’s new’ Wansink. He and his co-researchers factor. This is powerful for kids.” discovered that when middle school Reichel Foods, Inc., in Rochester, MN, students were served sliced rather than introduced four new products in late whole apples, sales of the fresh-cut form 2012 to its now 12-item line of single- increased by 71 percent. serve Dippin’ Stix. The new varieties are: Publix Super Markets, a 1000-plus- sliced apples with peanut butter and store chain headquartered in Lakeland, chocolate chips, sliced Gala apple FL, offers its customers a wide variety of with Tajin seasoning, celery and peanut fresh-cut, kid-friendly produce products. butter and celery with peanut butter “In addition to Crunch Pak’s Foodles, we and raisins.” carry several options of bento boxes to Greg Wilson, vice president of sales include: sliced Royal Gala apples and and marketing at Reichel Foods, says, Granny Smith apples, grapes, cheese, “Kids like to interact with their food. celery, carrots light ranch dressing or They like to dip.” caramel dip,” says Maria Brous, director Another playful easy-to-eat produce of media and community relations at product is Buddy Fruits, single-serve Publix. “We also offer Apple Dippers such portions of pureed fruit packaged in as sweet and tart apple varieties with squeeze pouches. Eduardo Nigro, senior caramel sauce and a three-pack of vice president of marketing and chief carrots with light ranch dressing for marketing officer for the Coral Gables, FL- dipping.” based company, says, “We’re not just an “There is growth in value added and applesauce maker. We have seven snack packs,” says Bob Borda, vice pres- product lines that include fruit ident of marketing for Bakersfield, smoothies, fruit gels, and fruit bites in CA-headquartered Grimmway Farms, flavors such as apple, strawberry, mango, which manufactures and markets Carrot passion fruit and banana.” pb

“At back-to-school time, we showcase kids,” says Golden Sun Marketing’s snack items in refrigerated displays units, Goodwin. “Ideally, retailers should market to usually near the front of the store,” says Publix kids throughout 52-weeks. If just starting Super Markets’ Brous. out, try two one-month periods targeting kids — maybe in the spring and fall. OFFER KID-FRIENDLY RETAIL-TAINMENT Goodwin suggests creating activity sheets, “In general, produce isn’t presented well to kid’s cooking classes, and store tours that

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SEPTEMBER 2013 • PRODUCE BUSINESS 49 Marketing to Kids_Layout 1 9/9/13 7:48 PM Page 5

affixing PLU stickers to a tracking card. “Fuel Up To Play 60 is a program that “In the end, the “In-store events that encourage healthy encourages kids to play 60 minutes every day long-range goal eating are another great way to create excite- and to ‘fuel up to play 60’ minutes every day ment and engage families,” says PFK’s James. by eating nutritious foods,” explains Chelan is to get kids to “Retailers like Price Chopper Supermarkets, Fresh’s Riggan, whose company offers display see produce as Whole Foods Market and Wegman’s Food bins of apples with the “Fuel Up To Play 60” Markets host kid-friendly cooking classes and signage to participating retailers. The inte- positive. These events in their stores throughout the year that grated program educates students in efforts also are very popular.” participating schools about eating right, In addition, James says, “As part of our retailers use promotional materials in-store to contribute to the partnership with Sprout [the 24-hour reiterate messaging, and marketers (such as organizational preschool channel], we host in-store appear- Chelan) have the opportunity to participate ances with popular characters, like Sportacus in different food categories. goal to sell more from the health-focused show LazyTown, This summer, Buddy Fruits teamed up fresh produce.” to get kids excited about eating fruits with Sony Pictures to build a promotion — Don Goodwin, Golden Sun Marketing and vegetables.” around the release of the movie, The Smurfs “Last year, Turbana partnered with the New 2. The promotion, “Follow Smurf and Buddy England Dairy and Food Council and Shaw’s Fruits to Paris,” features the chance to win a produce in a fun way to generate a kid- Supermarket in the National Football League’s trip to Paris and uses a combination of special friendly atmosphere. ‘Fuel Up to Play 60’ program to promote nutri- blue product packaging, in-store POS mate- PBH offers a “Take Your Child to the tion and physical activity in schools,” says Marti. rials (such as floor displays), and a social Supermarket” kit that provides retailers with “The month-long campaign in Shaw’s retail media to promote the contest. methods to make produce shopping fun. stores throughout Maine, Massachusetts, New “In the end, the long-range goal is to get These tools include taste sampling, guessing Hampshire, Rhode Island, and Vermont kids to see produce as positive,” says Golden games, story time, a treasure hunt, and an included point of sale materials, radio Sun Marketing’s Goodwin. “These efforts also “I’m Stuck on Fruits & Veggies” activity where announcements, and two signs in the banana contribute to the organizational goal to sell kids can keep count of what they eat by sections of produce departments. more fresh produce.” pb

50 PRODUCE BUSINESS • SEPTEMBER 2013 FPAA Cover_Layout 1 9/17/13 10:39 AM Page 1

SPECIAL SUPPLEMENT

New Port To Facilitate Trade

SEPTEMBER 2013 • PRODUCE BUSINESS 51 FPAA_Layout 1 9/17/13 10:32 AM Page 1

Nogales Deal Expands Products And Seasonality The experienced Nogales industry adds time and products to its line-up.

BY JODEAN ROBBINS

est Mexican products entering the United States through the land port of Nogales, AZ, have long played a significant role in the U.S. fresh vegetable trade. “The crops grown in West Mexico are fundamental to the abundant variety and overall quality of produce found across the WU.S.,” says Alicia Martin, CEO of Wilson Produce LLC in Nogales, AZ. “For years, Mexican farmers in Sonora and Sinaloa have utilized the ideal warm climate and abundance of flat farm land to grow some of the best agricultural products. Nogales has served as an avenue to connect growers from one country to consumers in another.” “Nogales is a major source of supply for the chain stores and a major quality supplier for the whole produce industry,” concurs John McDaniel, sales and operation director for L&M Companies in Nogales, AZ. Imports through Nogales have continued to increase in both volume and availability. Lance Jungmeyer, president of the Fresh Produce Association of the Americas (FPAA) in Nogales, AZ, shares, “About 20 years ago, annual imports through Nogales amounted to about $1 billion. Now, it is $2.5 to $3 billion.” “It seems that every year we are seeing more product cross from Mexico through Nogales due to the demand for not just the core products but for the diversity of new prod- ucts that are increasingly consumed in the U.S.,” says Jorge Quintero Jr., managing member of Grower Alliance, LLC in Rio Rico, AZ. “Tech- nology has also made it easier to connect to all parts of the country on a more personal level as well as doing daily business.”

52 PRODUCE BUSINESS • SEPTEMBER 2013 VisionNogales_FP_2013_. 9/9/13 9:34 AM Page 1 FPAA_Layout 1 9/17/13 10:33 AM Page 2

The particulars of the growing areas and production provide the foundation for a successful deal. “The result of cultivating this area is produce that is naturally rich in flavor, color, and nutrition,” says Martin. “West Mexico’s high temperatures and year-round sunshine allow the region to advantageously grow during winter, providing over 50 percent of the U.S. produce during the season.” According to FPAA statistics, some of the fastest moving items include bell peppers (growing over 30 percent since 2008), squash (with a 26 percent growth) and eggplant (posting a 15 percent growth).

“The products we import through this area are of vital importance to the U.S. produce market because of the abundant availability of quality products for 10 months of the year,” says Jaime Chamberlain, president of J-C Distributing Inc. in Nogales, AZ. “Without our Mexican imports, American consumers would be paying much more for their fruits and vegetables during the fall, winter, and spring.” “This region is not new to the produce industry,” Martin points out. “In fact, the first produce was exported from this area to the U.S. nearly 90 years ago. For many American citi- zens, this means they’ve been consuming and enjoying produce from West Mexico regions for their entire lives!”

HEAVY HITTERS The top products moved through Nogales are some of the market’s heaviest hitters — including tomatoes, water- melons, cucumbers, bell peppers, squash, grapes, mangos, honeydews, hot peppers and eggplant. According to statistics from the FPAA, in 2012 these 10 items accounted for over 4.4 billion pounds moving through Nogales. “The highest volume products continue to be the traditional ones, such as toma- toes, cucumbers, bell peppers and squashes,” reports Chamberlain. “We are also increasing our volumes in ‘wet’ items, such as asparagus and lettuce. Mexico’s

54 PRODUCE BUSINESS • SEPTEMBER 2013 J-C Distributing_Ad 8/22/13 11:14 AM Page 1

J-C DISTRIBUTING INC. Fresh Fruits and Vegetables

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We distribute a full line of vegetables and tomato products from our 90,000 sq. ft facility in Nogales, Arizona. We also offer In & Out Services during the Mexican grape season. Our sales associates are also committed to helping YOU with all your produce needs. Call our Sales Staff: Jaime Chamberlain, Andres Gonzalez, Rene Calixtro, or Christian Reyna PHONE: 520-281-1234 • FAX: 520-281-0805 E-MAIL: [email protected] FPAA_Layout 1 9/17/13 10:33 AM Page 3

table grapes have also been an important driver for U.S. and Canadian retail and food- service companies.” According to FPAA statistics, some of the fastest moving items include bell peppers (growing over 30 percent since 2008), squash (with a 26 percent growth) and eggplant (posting a 15 percent growth). “The multiple varieties of bell peppers, squash, and eggplant are what make these commodities most promising,” adds Paul Guy, president of PDG Produce Inc. in Nogales, AZ. “And, we only see this increasing.” Tomatoes have long maintained No. 1 status through Nogales. FPAA’s Jungmeyer states, “It is the most popular vegetable after potatoes, and certainly more exciting because of the development of all the new varieties. There are so many new advances in variety, flavor, color and size profile. Many companies are developing exclusive vari- eties to serve specific niches.” “Tomatoes are the No. 1 item followed by bell peppers and cucumbers,” agrees Quin- tero of Grower Alliance. “These are definitely important to the U.S. produce industry, because they account for the largest portion at retail and at the foodservice level.” “These major items are crucial to the industry because our volume and quality has increased,” says George Mendez, pres- ident of G. Mendez & Co. Inc. in Nogales, AZ. “This gives the market a bigger source and variety to choose from.” Market demand continues to drive the deal. “Tomatoes and vegetables serve a high demand in the U.S.,” explains Martin. “When you look at the American food culture, it is fairly easy to see why everyone is using these products. Whether they compose garden salads, garnish hamburgers, adorn sandwiches, or are just consumed raw, Americans crave vegeta- bles, and Mexico has them.” “We see continued demand and growth in the chili pepper arena,” says John Cald- well, general manager of Vision Produce Company in Phoenix, AZ. “We’re also seeing a lot of growth in shade-house items and colored bell peppers.”

GROWTH- YEAR ROUND Though occupying a strong position, the Nogales-West Mexico industry continues to evolve. “The U.S.-Mexico produce industry is, in many ways, going through a renais- sance,” reports Martin. “A lot of change occurred in the past 20 years — especially

56 PRODUCE BUSINESS • SEPTEMBER 2013 FPAA_Layout 1 9/17/13 10:33 AM Page 4

MONTHLY IMPORTS OF SELECT MEXICAN ITEMS THROUGH NOGALES, AZ, FOR 2012 .

SOURCE: FRESH PRODUCE ASSOCIATION OF THE AMERICAS in the last 10 years. There is an agricultural “Twenty years ago, latest. Now we start shipping in September history and wealth of knowledge obtained and go until the middle of July.” only through years of experience, trial and who would have “Essentially, there is year-round supply error, and new development. On top of that, on tomatoes now and for some other technology, transportation, food safety and thought about growing vegetables too, including cucumbers, seed varieties are quickly evolving, and the a complete crop in lettuce, peppers and avocados,” says produce industry is eager to keep up. FPAA’s Jungmeyer. Farmers are finding that new technologies protected agriculture However, production availability doesn’t and agricultural sciences can yield a covering to have better always translate to sales. Jungmeyer says, stronger more consistent product when the yields and quality?” “For some items, the limiting factor is the right information is applied.” — John McDaniel, L&M Companies cost of transportation from Mexico to the “We used to have four or five months for U.S. market — particularly in the summer- the Nogales season,” concurs Mendez. many items. “Most of West Mexico time when local deals are in production. “Now we ship almost year-round. Also, production is coming from shade houses That being said, many buyers are looking to quantities have increased on all items — not only increasing production and have consistency in quality, sizing, branding through Nogales.” quality, but also creating longer seasons,” and other elements of the program, regard- Technological advances helped the states McDaniel. “Between mainland less of transportation costs. Mexican growth. “Our business grew tremendously Mexico and the Baja Peninsula, we are producers are in a position to provide this.” over the past 20 years,” states J-C’s Cham- able to provide year-round supplies on berlain. “With the implementation of cucumbers and tomatoes. That gives our DRIVING FORCES high-tech and low-tech protected agricul- customer a year-round supply of dark The reasons behind the expansion are tural practices, we have become efficient green and straight cucumbers as well as multi-faceted. “The season continues to and productive. The added investments in on-the-vine ripened tomatoes.” expand every year,” says Jungmeyer. research from the world’s top seed breeders “Twenty years ago, the average season “Technology from greenhouses is one to create seed varieties tailor-made for our of produce from Mexico was November factor contributing to this. Also, Mexico growing regions have also been a huge through May,” says Wilson’s Martin. “Now continues to exploit new microclimates, factor in our success.” we are seeing a shift to September through and more U.S. buyers are viewing Mexico “The modernization in the agriculture August. With the advent of technology, irri- as their de facto choice for supply instead practices in Mexico is tremendous,” adds gation, and infrastructure, there are more of as a supplement.” L&M’s McDaniel. “Twenty years ago, who areas to grow than two decades ago.” Constraints in U.S. production areas also would have thought about growing a “The season expanded greatly,” concurs influence demand for increased Mexican complete crop in protected agriculture Guy with PDG. “I’ve been here since 1981. product. “The season is extended on a lot covering to have better yields and quality?” Back then we started shipping on of items,” says Vision’s Caldwell. “One One noticeable change in the Nogales November 10 and would be done by the reason is because of the labor issues in the deal is the extension of longer seasons for end of April or first week of May, at the U.S. as well as the advantage and ease we

SEPTEMBER 2013 • PRODUCE BUSINESS 57 Mendez & Com_Ad 9/19/13 4:18 PM Page 1

ADVERTISEMENT Who is G. Mendez & Co.?

When custom brokerage firm G. Mendez & Co. was It was in 1999 when the company branched out into standards. This included developing separate areas founded by George Mendez back in 1980, he already perishable warehousing, opening Klondike Cold Stor- divided into different temperature zones to accommo- had 10 years of experience working in the industry. age. date the needs of various types of produce. “I started the company as an individual and grew it “This was something our customers asked us to do,” Today, Mendez and his son David, who joined the com- from the ground up,” he says. Mendez says. “As our business grew, our customers’ pany in the early 90s, run both the brokerage and cold He also became a fixture of the produce industry, hel- needs expanded. Their businesses required warehou- storage businesses, which are housed under the same ping to form the National Mango Board and serving as sing, trucking and forwarding of produce coming out of roof. treasurer and serving on the Board of Directors as well Mexico. Our goal was to adapt to the needs of the The Nogales, AZ-based firm provides door-to-door ser- as being a member of the Fresh Produce Association of industry.” vice as a U.S. Customs broker service, a Mexican Cus- the Americas. Eight years ago, Mendez expanded its warehousing toms broker service and cargo forwarder. It offers port In the beginning, the company imported a variety of operation when G. Mendez & Co. purchased a ware- service in Nogales; Otay Mesa, CA; Douglas, AZ; Pharr, goods from Mexico into the U.S., including produce, house that was under construction at the time and only TX; and Progresso, TX. seafood, mining products, Mexican ceramic ware and about 65% completed. Thirty-three years after being established, the company, basically any commercial item there was a market for “We started with dry warehousing first, then produce which employs 18 and includes 10,000 sq. ft. of execu- in the U.S. warehousing, and finally realized we needed more tive office space, is now a one-stop shop for cus- “Business was simpler back then,” Mendez says. space,” Mendez says. tomers. It was soon determined that produce was THE volume Because there was still much work to do to complete “We can do everything required by companies impor- item being exported out of Mexico, so this is where the the 25,000-square-foot warehouse, Mendez was able ting product from Mexico, including freight forwarding,” company focused its efforts and became specialized. to finish off the construction and details to his high Mendez says. Mendez & Com_Ad 9/19/13 4:12 PM Page 2

Your Custom Brokerage Partner G. Mendez & Co. goes above and beyond as your • Our company navigates the regulations put mail or cell phone. Your truck shipment is custom brokerage partner. forth by the USDA, FDA, Homeland Security tracked from the time it leaves the packing What sets us apart? and U.S. Customs. shed in Mexico. You will know when your ship- • Our company is run by licensed customs bro- • Our customers benefit from our long-standing ment arrives at the border, be appraised when kers, George and David Mendez relationships cultivated over generations with it reaches and progresses through the inspec- • Our experts will handle all aspects of the carriers and agencies. tion process at Mexican Customs, then notified delivery from both the Mexican and U.S. sides • We provide personalized service throughout the to its arrival at and the progress through the of the border. delivery process. U.S. Customs Compound, including USDA and • We are experts in perishable commodities and • We are accessible 24/7. FDA inspections. understand the urgency and sensitivity of pe- • Our truck tracking system provides you with • We provide freight forwarding for shipments rishables. pertinent and real-time information either via e- that need to be sent outside the border area. Cold Storage Capabilities Klondike Kold Storage, established in 1999, provides • Pallet racking systems maximize floor space • In-house-developed warehouse management a web-based inventory control in which customers • USDA inspections software that handles inventory control and have access 24/7. • FDA inspections provides real-time information 24 hours a day. • State-of-the-art facility • A 2,000-sq.-ft. repack and inspection room The program also can be adapted to other soft- • 35,000-sq.-ft. warehouse • In-house quality control services ware programs when necessary • 25,000 sq. ft. of cold rooms • CT PAT certified • Cross Dock service • Four different cold rooms with independent • Primus GFS Certified (Global Food Safety) • In/Out cold room service controls to accommodate perishable products • Certified by Organic Certifiers in accordance • Value-added service, including quality review requiring different storage temperatures with the USDA-NOP National Organic Stan- upon entry, quality inspection per customer • Forced air cooling dards request and repack upon request

G. MENDEZ CO., INC 450 W. Gold Hill Road • Nogales, Arizona 85621 • Tele: (520) 761-5000 • Fax: (520) 761-5001 • Email: [email protected] George Mendez: Tele: (520) 761-5014 • Cell: (520) 841-3165 • [email protected] David Mendez: Tele: (520) 761-5010 • Cell: (520) 988-0164 • [email protected] FPAA_Layout 1 9/17/13 10:34 AM Page 5

now have in obtaining products from Mexico. One example is in jalapeños. I’ve gone from September of last year until mid- August of this year. I may have a three to four week gap on jalapeños in mid- September to mid-October, but that’s it.”

“It’s tougher, so you need to show that you have consistency of supply and quality control of your product. The reason we’re in the deal is to service our existing customers — not to trade FOB.” — John Caldwell, Vision Produce Company

Technology and new production areas allow Mexican growers to hedge produc- tion risks by growing new areas and adding new crops into their business. “Growers who typically cultivate only one item are looking to diversify and grow other items in addition to developing in more areas,” recounts Caldwell. “Higher technology infrastructure allows crops to be available longer,” says Quintero. “Adapted and controlled environments allow growers to produce items for longer periods of time.” “Through protected agriculture, we can expand into the summer months with specific products, which historically we had not been able to participate in,” explains J- C’s Chamberlain. “We are starting our seasons earlier with some product starting in mid-September while we finish in late- July. We never completely stop receiving products, the commodities just change. Summer months are heavy for mangos through this Port.” The dynamic of the Nogales deal is also shifting from open FOB to more specific commitments. “The way the business is going now, we must have ownership of product,” states Caldwell. “It’s tougher, so you need to show that you have consis- tency of supply and quality control of your product. The reason we’re in the deal is to service our existing customers — not to trade FOB. Lots of the products coming up from Mexico are already spoken for in a business like ours. You’re seeing more

60 PRODUCE BUSINESS • SEPTEMBER 2013 FPAA_Layout 1 9/17/13 10:34 AM Page 6

MEXICAN PRODUCE ITEMS EXPORTED THROUGH NOGALES, AZ sacrificing quality or flavor, but the Nogales Commodity Units in 10,000 lbs. industry tackles this issue head-on. “There 2008 2009 2010 2011 2012 can be some issues at the tail end of a season if it’s pushed too far,” warns Cald- Tomatoes 118,431 108,942 144,927 109,488 119,526 well. “This especially depends on the weather. We try to hit the meat of each Watermelons 69,008 62,964 71,609 70,767 66,312 area’s growing seasons and retrieve as Cucumbers 50,358 55,386 64,646 52,761 63,291 much as we can without sacrificing quality. “Many farmers are practicing multiple Bell Peppers 41,620 40,263 50,891 42,245 54,497 planting stages and soil management to ensure a consistent level of quality Squash 42,999 45,018 50,176 52,258 54,211 throughout the season,” reports Wilson’s Martin. Grapes 27,691 23,537 30,073 25,869 30,470 “What dictates quality and flavor is the Mangos 13,582 14,680 17,633 19,242 17,192 market itself,” adds Mendez. “The market requires a certain standard and that’s what Honeydews 16,186 15,577 17,514 17,034 16,452 has to be made. Mexico continues to produce what the market dictates.” Hot Peppers 12,318 13,271 12,346 12,461 15,820 Technology and know-how are important components of West Mexico’s ability to Eggplant 8,903 8,669 11,239 7,739 10,254 extend season yet maintain quality. “Given Source: USDA - AMS the technology of the protected agriculture and the new varieties, we are seeing better companies do business this way.” prior years when more was sold via spot yields and quality without sacrificing flavor,” “Compared to years ago, our Mexico market.” says McDaniel. business is more retail-oriented with part of “We are working closely with seed the production moving toward contracts,” MAINTAINING QUALITY companies — such as Enza Zaden, adds L&M’s McDaniel. “This contrasts with Extending seasons can often mean Seminis, and Harris Moran to name a few

SEPTEMBER 2013 • PRODUCE BUSINESS 61 FPAA_Layout 1 9/17/13 10:34 AM Page 7

— to breed for flavor in addition to working on disease resistance and quality,” states J- New Port To C’s Chamberlain. “This is our commitment Facilitate Trade to our customers for many years to come.” By JoDEAN RoBBINS We have an exciting future . . . because seed breeders are now very intuitive with the demands of the diverse ethnic customer base that we service. — Jaime Chamberlain, J-C Distributing Inc.

“As fast as growers expand products

PHOTO COURTESY OF CUSTOMS AND BORDER PROTECTION/HENSEL PHELPS CONSTRUCTION CO. and seasons, the seed companies keep presenting new varieties in line with long awaited logistics change buildings.” consumers’ need. Whether it is a darker is soon to be completed in “We are all very excited about the color on the fruit, specific sizing, better Nogales. opening of the new Mariposa Port of taste, or better yields for the crops,” says The Mariposa Land Port of Entry in Entry,” reports Jaime Chamberlain, Grower Alliance’s Quintero. “Every year, test ANogales, AZ, is the largest port of president of J-C Distributing Inc., in plots are done to make sure growers select entry for fresh fruits and vegetables Nogales, AZ. “The service we will be the best varieties available.” imported from Mexico, and an able to provide through this port will The diverse growing regions and climates ongoing project to increase and be unmatched elsewhere in the prove advantageous to managing optimum improve the facility expects to facili- U.S. Here in Nogales, we have been quality while extending seasons. “We’re tate trade across the border. the No. 1 source for Mexican fruits moving to optimal production areas,” “The reconfiguration of the port is a and vegetables for over 100 years. The explains PDG’s Guy. “The early fall season unique project that has already combination of our committed comes out of Hermosillo, Mexico, then we increased capacity during the grower base, technological advanced move to Culiacan, Mexico, then back to construction process,” states Lance farming practices, and our innovative Hermosillo. The growers expanded their Jungmeyer, president of the Fresh distribution systems will guarantee region to areas that can produce during Produce Association of the Americas that we serve our American and Cana- alternate times of year. It’s not the same area (FPAA) in Nogales, AZ. “The Mari- dian customer base for at least another trying to produce more, it’s moving to where posa Port doubled its commercial 100 years.” the production should be.” processing lanes during construction, The Nogales community ultimately “We try to overlap areas to ensure with all eight commercial lanes now looks to benefit its customers. “The highest quality,” states Vision’s Caldwell. fully operational. In addition, there are new port will handle more boxes more “For example I’ll be starting squash in expanded dock and offloading areas to efficiently,” says George Mendez, pres- Caborca, Mexico, in mid-October and then better accommodate truck inspections ident of G. Mendez & Co. Inc. in in Obregon, Mexico, in mid-November. as well as improved screening tech- Nogales, AZ. “This will result in better Could Caborca go into early December? nology, such as the use of gamma ray quality, longer shelf-life for products, Maybe so, but my plan doesn’t go that far, machines to better process trucks.” and it will get to the end consumer because the area could be in a freeze then. The port aims to be the flagship quicker.” It’s not worth risking it in our plan.” port of entry for the entire United “The new port should make the Food safety, traceability and quality States. “Phase Three of the project will process easier than what it’s been in control are crucial aspects integrated into be completed and fully operational by the past,” agrees Paul D. Guy president the production system. “Every company November 2013,” states Jungmeyer. with PDG Produce Inc. in Nogales, has a quality control program,” says FPAA’s “Phase Four will be completed by AZ. “It will help Mexican trucks get Jungmeyer. “There is a higher level of partic- August 2014 and includes the removal across the border faster and more effi- ipation in traceability in West Mexico than of temporary facilities and the comple- ciently, ultimately that means even you will find anywhere in North America.” tion of the remaining permanent better, fresher product.” pb “Compared to 20 years ago, the industry in Nogales is now much more sophisticated

62 PRODUCE BUSINESS • SEPTEMBER 2013 FPAA_Layout 1 9/17/13 11:06 AM Page 8

ON THE HORIZON moqua, bitter melon, and Kabocha are The West Mexico-Nogales deal saw much more actively marketed nowadays stunning diversification over the past compared to a decade or so ago,” says J- decade or two. “In the past decade, we’ve C’s Chamberlain. “The Hispanic chili items seen the rise of mini bell peppers, mini are also much bigger. And, of course, you cucumbers, heirloom tomatoes, Persian have all the tomato category specialty items cucumbers, and specialized varieties of like the Kumato, heirlooms, cocktail grapes, more common commodities,” states Quin- and romanitas. The advents of the mini tero. “Also, more than anything, specialty cucumbers and mini peppers have also packs are evolving and changing year in benefited our consumers. We have an and year out.” exciting future in the fruit and vegetable “All the Asian items, like bok choy, fuqua, industry, because seed breeders are now

PHOTO COURTESY OF WILSON PRODUCE LLC

“Almost anything currently grown in California will be available in the future in West Mexico. Researchers are working on varieties to suit the climate.” — Lance Jungmeyer, FPAA

and efficient regarding food safety and traceability,” says L&M’s McDaniel. “Not only as an effort to comply with new laws, but most importantly, for the safety of the consumer. Buyers and consumers should know that the farms in Mexico are very modern. A lot of product is grown in shade houses, and the growers place a high priority on food safety.” The West Mexico industry and FPAA work closely with authorities and growers to ensure high food safety standards. “Our companies and the FPAA work closely with producer associations and government agencies,” explains Mendez. “The FPAA serves as a conduit for information. Ulti- mately, it’s the buyer who requires food safety verification and traceability. If they did not have confidence and reassurance in our supply, they wouldn’t be buying. They ask for proof, and we provide it in terms of documentation.” “Every year, food safety standards get tighter. Mexican growers are staying on par, or ahead of the game, by placing emphasis on this,” says Quintero. “It is no longer a premium to have a food safety program in the packing shed but a common necessity.”

SEPTEMBER 2013 • PRODUCE BUSINESS 63 FPAA_Layout 1 9/17/13 10:36 AM Page 9

very intuitive with the demands of the diverse ethnic customer base that we service. They are breeding seed varieties that fit our lifestyles and specific tastes.” The mix is forecast to expand even further as small volume items continue to grow and new items are added. “Almost anything currently grown in California will be available in the future in West Mexico,” reports FPAA’s Jungmeyer. “Researchers are working on varieties to suit the climate. This includes items such as broccoli, head lettuce, dragon fruit and much more.” “Some new commodities that proved to be explosive values for our customers are Persian mini cucumbers, mini peppers, grape tomatoes, and all organic products,” The West Mexico- says Chamberlain. Nogales deal saw Though Nogales is mostly associated stunning diversifica- with vegetables, fruit imports are on the rise. tion over the past decade or two. “We’re starting to see more fruit, like pineapples, move through Nogales,” states Vision’s Caldwell. “Of course, mangos at certain times of the year are huge here.” only four months long. Now we’re looking at moves through Nogales.” “When I started in the ’70s, mangoes 50 to 60 million boxes in the U.S. during a Mini sweet peppers have seen rapid were a new item,” reports Mendez. “There season that is year-long. Nogales was not a growth recently. Wilson’s Martin explains, were maybe 30 to 35 million boxes total in big mover of mangos back then, but now “These have the appearance of a small bell the U.S. per season — and the season was about 45 percent of the Mexican deal pepper and pack a lot of flavor and nutrition. There are many ways to cook and enjoy them; we’re really looking forward to the new food concepts that are emerging. We’re also seeing new varieties of grapes, melons and cucumbers come into the market.” While not a new product in the market, limes through Nogales are a fairly recent development. “We’re one of the main people doing limes,” states Caldwell. “We bring limes from Colima, Mexico, through Nogales. Years ago, there were no limes through Nogales. Now, we pretty much have them year-round through Nogales, and the quantity is growing. In Nogales, L&M is working hard with farms to increase core items. “Increasing items like bell peppers, cucumbers, romas, eggplant and squash will allow our customers to pick up all the vegetables at one time,” reports McDaniel. Organics is another area to keep an eye on via Nogales. “One of the expanding areas is organics,” reports PDG’s Guy. “Lots of buyers are looking for organics and more are being produced. At our company, we have one salesman that is solely dedicated to organic sales.” “Organic products are in more demand with every season,” agrees Quintero of the Growers Alliance. “We are looking to expand our organic program.” pb

64 PRODUCE BUSINESS • SEPTEMBER 2013 Blue Book_. 9/5/13 12:13 PM Page 1 Fresh Produce AA_Ad 8/22/13 9:58 AM Page 1 Fruit Baskets_Layout 1 9/18/13 2:19 PM Page 1

RETAILERS WANT TO KNOW… Where Do Suppliers Envision The Fruit/Gift Basket Category In The Year 2020? COMPILED BY MICHELE SOTALLARO, AND ARRANGED IN ALPHABETICAL ORDER BY COMPANY NAME.

Suppliers present a future world of closer integration with social media and retail outlets.

RICHARD KNUTSON with the year-end holidays will guarantee this. produced locally due to the increased cost of President These combined influences will result in gift shipping and handling as well as increased Basket Ease baskets that appear quite similar to past prod- labor costs in developing countries. Wicker Prior Lake, MN ucts even though new items and materials are baskets are traditional for fruit and gift Three forces — Local, used to make them. baskets, but costs keep increasing for Sustainable, and Indi- imported baskets. Additionally, availability vidual/Personal — Local can be interrupted due to weather, politics, or will influence fruit Produce and other items that are financial events. and gift baskets, considered Local are increasingly just as they will popular. Produce items may not be Sustainability impact other prod- available in some areas for year-end gifts. Baskets made in the U.S. are usually ucts, into the end of this Other items like cheeses, jams and jellies, or plastic. Wraps and bows are also made with decade. However, tradition has been, and will almost any suitable item that can have some plastic or vinyl. Recycled materials or prod- continue to be, a pervasive factor in fruit and local identity, will be added to gifts. ucts made with natural materials will be gift baskets. The prevalence of sales associated Packaging materials will be increasingly increasingly popular. Containers and wraps

SEPTEMBER 2013 • PRODUCE BUSINESS 67 Fruit Baskets_Layout 1 9/18/13 2:22 PM Page 2

Rick Feighery, vice president of sales for “Where most other products you find in Procacci Brothers, states, “By the year 2020, the produce department sell for single we may see a lot of change in this category. Firstly, the growth of ethnic and specialty digits, fruit baskets range in price from produce could translate into having more $20 to $100 and can maximize a retailer’s non-traditional components in fruit and gift baskets. Secondly, the supermarket shopping shelf space.” experience is changing. Both trends promote — Kevin Delaney, Procacci Brothers Sales Corporation strong growth opportunities for retailers.” Procacci Brothers has seen the growth of can already be made with plastics derived have them shipped without ever leaving their specialty produce firsthand. Carrying a full from corn. home, their office, or even their kid’s sporting line of ethnic and tropical produce, we help The use of other local woods or fibers to event. retailers throughout the East Coast tailor make baskets is also possible. The new 3-D Markets that have done well with programs for the emerging ethnic markets printers could make it possible to produce a continued retail sales have done so by and increasing demand. wide variety of containers in different shapes embracing social media like Twitter and “The growing Hispanic population and sizes with diverse material at almost any Instagram, and using it to keep shoppers coupled with cooking shows and social media location. There will also be increased demand informed as well as developing their own are all helping ethnic and specialty produce for products made with local and sustainable online shopping page. get more exposure and popularity,” says materials because they reduce costs. Consumers’ desires have changed, and the Feighery. “In the past, fruit baskets commonly reality is that the category has morphed from featured items like apples, oranges and pears, Individual/Personal fruit baskets to general gift baskets. but the growth in this category could give our The third force influencing fruit/gift Consumers are looking for more than just the team more options to consider.” baskets in the future will be the increase of a few oranges, apples, pears, and grapes in a Rita Neczypor, produce and packaging individual and personal products resulting basket. They are looking for variety, baskets design coordinator for Procacci Brothers, from the universal connections through the that have chocolates, wines, dried fruit, ciders, dedicates most of her time and energy on Internet. Both purchases and sales will occur desserts, cheeses, organic items, and even designing the next season of baskets. “The more and more frequently via phones, tablets, Kosher baskets — just to name a few. expanded year-round availability of exotic and other new media. Retailers will promote While all the examples above are causes and specialty fruits provides more hardy person to person. People will order what they and effects to declining sale in retail markets assortments and diversity. This trend will help want, when they want it. This will make for fruit baskets, there is one element to create a broader variety of gift and fruit basket scheduling easier for both the retailer and the ponder. The retailer’s mindset for selling options,” says Neczypor. customer. It will make it possible to person- fruit/gift baskets is that they are a sales oppor- As for the baskets themselves, Neczypor is alize products for individual customers. tunity for only the final six weeks of every seeing some additional options in material. year. The online companies view its opportu- “We’re seeing new baskets made from varia- RICHARD P. MICHEELS nities as daily, 52 weeks a year, and have to tions of natural materials, such as rope and W.M.S. Implementation Manager/ generate those sales every day or they different applications of bamboo, as well as new Fresh Pack Manager wouldn’t exist. families of shapes and metals. The whole objec- Indianapolis Fruit tive is to make sure the basket can be reused in Indianapolis, IN KEVIN DELANEY the home of the recipient,” says Neczypor. The effects of fruit basket sales at the typical Director of Marketing Fruit baskets are typically displayed in grocery market over the past decade are a result Procacci Brothers produce, deli and floral departments. of online shopping, social media, customers’ Sales Corporation Fruit baskets are an impulse purchase desires and the transition of a category. Philadelphia, PA and need to be placed in prominent Shoppers can now purchase almost Whether saying “thank locations to increase visibility. anything they want online and have it shipped you” to a friend or The increased visibility leads to to the destination of their choice. This outlet sending best wishes to faster turnover, which helps for purchasing baskets has taken a toll on co-workers during the reduce shrink. The benefit for retailers. With shoppers’ time becoming holiday season, fruit baskets retailers carrying fruit baskets has restricted due to busy have always been a naturally always been the sticker price. lifestyles, their sched- healthy gift that everyone Where most other products you ules are limited, and enjoys. Procacci Brothers has find in the produce department sell they opt for easier alter- been customizing fruit basket for single digits, fruit baskets range in natives to running to programs for retailers for over 60 years. We price from $20 to $100 and can maximize a the local market. attribute our success to offering premium retailer’s shelf space. Shoppers can fruit while featuring baskets with high However, the present and future tech- now purchase gift residual value. Procacci Brothers stays ahead nology of social media and the Internet has baskets online, by monitoring emerging trends outside of the quickened and vastly broadened visibility and pay for them, and category. availability of everything, and could do the

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same for fruit baskets. On the consumers’ address all these issues, which in turn, will help I am so excited right now about new pack- advanced versions of their smartphone, our customers reel in those sales. We never aging we are working on for future fruit smartwatch, tablet, or computer, they will stop exploring new packaging ideas, while basket programs. I want our customers to receive information and advertisements for keeping the cost associated with that pack- hit those sales benchmarks. We will keep fruit baskets via e-mail, websites, and their aging front-and-center. It is our job to help working to find what sells in today’s and favorite social media network. them increase their sales, through packaging. tomorrow’s environments. It’s key to be flex- Many e-commerce sites have done well at For me personally, at Willow, it is not ible in this ever-changing economic market. selling fruit and gift baskets online, but retailers only my career, but my passion to help create Fruit baskets always have been, and always may differentiate themselves by offering more new packaging ideas and find more clever will be, a healthy, affordable and much appre- convenience to online shoppers. Neczypor and labor efficient ways to build fruit and ciated gift. Packaging and display are key advises, “Retailers have an advantage over other gift baskets. to success. pb e-commerce sites because they can offer convenience. Their customers not only can send a gift basket to someone while ordering their groceries, but could have the ability to pick it up from their local store.”

CHERYL THOMPSON Packaging Specialist Willow Group Batavia, NY It wasn’t long ago that fresh fruit, during the winter months, was considered “special.” I’m from Buffalo, NY. Strawberries were available during a few short weeks in June. Oh, we did have a few from Florida, and then some from Cali- fornia, but not like today. “Back-in-the-day,” as my kids would say, a basket full of fruit given as a gift was truly that — a special gift. Today, any variety of fruit is available, even the most perishable, every day of the year. It’s commonplace and expected. So how do we sell a basket of fruit? Will the term “it’s all in the packaging” play a part in catching that sale in the year 2020 as it does today? Yes it does and still will. In the fruit and gift basket packaging industry, we are challenged by the continuing escalation of packaging costs, due to material and labor shortages and increased shipping costs. Baskets are no longer inexpensive. For the first time there’s a greater awareness of the container and packaging cost associated with the construction of a fruit or gift basket. Therefore, the container being used, to house the gift or fruit items, is now much more important. From the consumer’s perspective, it must have an individual value all its own. Especially for fruit baskets, since fruit is so readily available, the container must play the bigger part to capture those sales. Face it; fruit is fruit. Being in this industry, Willow Group, Ltd. is therefore challenged to

SEPTEMBER 2013 • PRODUCE BUSINESS 69 Fall Avocado_Layout 1 9/9/13 7:57 PM Page 1

Fall marks the only time of the year when the U.S. is ABOVE PHOTO COURTESY OF MISSION PRODUCE. PHOTO ON RIGHT COURTESY OF CALIFORNIA AVOCADO COMMISSION supplied with avocados from four growing regions. Fall Is The Ripe Time To Promote Avocados Explore the ways avocados have become a consumer favorite, and discover how the industry plans to use avocados year-round. BY CAROL BAREUTHER

uper Bowl, Cinco de Mayo and Austin to tailgate. Avocados are a staple — a wasn’t there. Since then, the industry has made Fourth of July have become got-to-have item.” tremendous strides. Some countries, for synonymous with peak selling Add to this families’ return to routine and example, have self-imposed minimum oil stan- Speriods for avocados. Now, regular meals in September coupled with dards. This creates a consistency in flavor — retailers can add fall holidays such ample supplies and the fall becomes a ripe time that means there’s no lost sales momentum as Labor Day, Halloween and Thanksgiving to to sell avocados. from the summer.” this list. According to the Irvine, CA-based Fall (the months of September, October Hass Avocado Board’s (HAB) Holidays & Supplies On The Rise and November) marks the only time of the Events 2012 report, Labor Day saw the biggest Hass avocado consumption reached a year when the U.S. is supplied with avocados jump in volume of any holiday in 2012, up 66.1 record of 1.5 billion pounds in the U.S. in 2012. from four growing regions. This season also percent compared to the year prior; while Of this, 427 million pounds were sold during sees a transition from domestic to imported Halloween saw the largest increase in dollars, the months of September, October and fruit. For example, according to data supplied up 17.4 percent. What’s more, savvy retailers November, up 24 percent from the previous by HAB, domestic fruit represents 36 percent are finding that fall sports offer valuable year, according to data supplied by HAB. of the total sold in the U.S. in September promotional opportunities for avocados. Broken down by month, September saw 136 compared to 15 percent in October and 2 There’s tailgating at football games and “home- million pounds of fruit sold in 2012, up 21 percent in November. gating” in front of the television for the major percent; October 147 million pounds, or a 26 Peru started shipping fruit to the U.S. league baseball playoffs. percent increase; and November 144 million market three years ago. This South American Jimmy Ross, vice president of produce at pounds, a 25 percent increase. This year, country’s season goes head-to-head with Cali- Gerland Corporation’s Food Town supermar- volume is projected to increase another 10 fornia during the summer and early fall, yet, kets, a 25-store chain based in Houston, TX, percent to 1.65 billion pounds total for 2013. according to some suppliers, Peruvian fruit says, “We’ll run display contests to promote Driving the supply side is growth in supply fed offers the advantage of larger sizes. avocados, and in the fall, this means a football by insatiate consumer demand. “Arrivals of avocados from Peru should theme. High school ball is big here also. We “With quantity also comes quality,” explains continue until September 15 with fruit in the have four colleges and universities in town, and Emiliano Escobedo, HAB’s executive director. market until September 22,” says Giovanni many of our customers will head over to “Five years ago, the quality of fall fruit just Cavaletto, vice president of operations for

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guacamole,” he says. “The pre-made guacamole is displayed in our Recipe Ready section along with cut fruit and our own salsa. When Halloween is during the week, like it is this year, many customers like to grab the pre- made items for parties.” Avocados go on ad the week after Thanks- giving at Harmons. “Avocadoes aren’t something people traditionally buy for Thanksgiving,” Seegmiller says. “But give them a good price, and it brings customers back in store to use up leftovers — like making a turkey avocado sandwich.” Mary Ostlund, director of marketing for Homestead, FL-based Brooks Tropicals, Inc., which markets its green-skinned Slimcado from June through January, says, “‘Two for’ PHOTO COURTESY OF MISSION PRODUCE promotions always play well in sales.” “Selling two sizes of avocados is another Index Fresh, Inc., in Bloomington, CA. Chilean avocado arrivals to the U.S. begin great way to drive sales,” adds the CAIA’s Brux. Rob Wedin, vice president of fresh sales and in September and last until March. “This meets the needs of different consumers, marketing for Santa Paula, CA-headquartered Karen Brux, the marketing director for the as smaller avocados can be sold at attractive Calavo Growers, Inc., says, “Fall represents the San Carlos, CA-based Chilean Avocado multiple-unit pricing and attract more budget- late weeks of the California avocado Importers Association (CAIA), says, “We minded consumers.” season. Our harvest moves from Santa Barbara expect a volume increase of 30 to 35 percent Brux adds, “Last year’s avocado crop out of into San Luis Obispo. Flavor is excellent, and over last year. Promotable volumes will be Chile had a bit larger sizing because it was a there is opportunity for local displays that available throughout the fall and winter lower volume crop. That being said, Chile is emphasize local flavor.” months, with marketing programs put in place focused on meeting the needs of the U.S. California is expected to ship 82 million to support retail sales.” market and will supply a range of sizes to meet pounds of fruit in the fall, or a little less than a various retail requirements.” fifth of its annual crop. Three Ways To Dip Into More Maggie Bezart, vice president of trade and Jan DeLyser, vice president of marketing for Avocados Dollars In The Fall promotion for the Denver, CO-based the Irvine, CA-based California Avocado “Sports and holidays are good hooks for Avocados from Mexico, says, “There will be Commission (CAC), says, “Many retailers want avocado promotions in the fall,” says HAB’s excellent sizing out of Mexico. Retailers will to stay with local or California when it’s avail- Escobedo. “Combine these holiday displays have plenty of opportunity to promote large, able. That’s the target and our point of with showing customers new ways to enjoy medium and small sizes this fall.” differentiation for this fruit.” avocados, beyond guacamole, and tell “In general, deep discounts are most effec- “California typically finishes its season in consumers about the fruit’s nutritional side.” tive in lifting avocado sales in less developed the early fall,” explains Bruce Dowhan, the HOLIDAYS. Labor Day, Halloween and markets, such as the Midwest and Northeast, Escondido, CA-based executive vice president Thanksgiving collectively represented one-fifth as this provides a value opportunity for and general manager of Giumarra Agricom of all holiday-related avocado sales in 2012, customers to purchase the fruit,” explains Dan and Giumarra Borquez. “Mexico and Chile according to HAB’s report, Holidays & Events Acevedo, director of business development for supply more volume as the season moves 2012. Interestingly, while Super Bowl and West Pak Avocado, Inc., in Murrieta, CA. “In through the holidays.” Cinco de Mayo represented 2.4 and 2.5 percent well developed markets, such as in the West “Mexico has four avocado blooms that of holiday sales, respectively, Labor Day wasn’t and Southwest, price isn’t as effective as is create year-round supply,” says Tim Hallows, that far behind at 2.2 percent. frequency of ads.” regional marketing manager for Mission Robert Seegmiller, sales director of produce SPORTS. “In the fall, baseball playoffs, the Produce Inc., in Oxnard, CA. “The largest of for Harmons, a 16-store chain grocer head- World Series, football parties and tailgate these blooms puts a sizable amount of fruit quartered in Salt Lake City, UT, says, “Labor events take the place of family picnics and into the U.S. market by mid-September. Day is the last outdoor-summer gathering of barbeques,” says Bezart, Volumes out of Mexico continue to ramp up the year for many people, so we’ll promote A sports-themed display contest is one way in October and turn heavy by November.” avocados with a barbecue and burgers theme.” Seegmiller at Harmons promotes avocados this “The boost of avocado supplies out of Seegmiller promotes both fresh avocados time of year. “People think of avocados at the Mexico in the fall is because more acres have and the chain’s homemade guacamole for start of the football season, so we’ll run display become USDA-certified,” adds Hallows. Halloween. “Making guacamole in-house has contests in our stores. Each store isn’t cookie- Calavo’s Wedin says, “There are good proved a good way to decrease shrink on cutter in size and layout. Some are larger and volumes of organic avocados out of Mexico in avocados; plus, I haven’t seen sales on whole have a promotional area in entrance; others are the fall.” avocados go down since we added the smaller and have promotional aisles in the

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PHOTO COURTESY OF CHILEAN AVOCADO IMPORTERS ASSOCIATION

back. That’s why the contest is based on cents per customer —sales of avocados divided by the number of customers. It levels the playing field so every produce manager can show their creativity and have a good chance of winning.” “CAIA will once again run it’s ‘Grab some for the Game’ promotion,” says Brux. “This includes over $40,000 in prize money for winning retail avocado displays. Participating produce managers who submit a qualified Chilean avocado display photo will receive an online scratcher and have a chance to win from $50 up to $500.” To support this contest, as well as other ongoing retail merchandising efforts, CAIA will make a variety of point-of-sale (POS) materials available to retailers. CAIA will also provide retailers with information, recipes, images and videos that can be posted on retail Facebook pages, websites or blogs. “Avocados from Mexico will run strong vertically integrated programs, themed around Major League Baseball playoffs, throughout the fall,” Bezart explains. “These promotions span from National TV and social media advertising to consumer offers with People magazine and Entertainment Weekly such as: buy Avocados from Mexico and get a free can of Rotel Diced Tomatoes to make ‘Rockin Guac.’ In-store will include radio spots, cross-merchandising display shippers, produce partner contests, and consumer sweepstakes with our new ‘All-Stars’ promotional program.” RETURN TO REGULAR MEALS. “There are so many opportunities to fit avocados into fall and winter menus,” says CAIA’s Brux. “When I think of fall and winter foods, I think of soups and hearty salads. We have easy recipes for both of these meals and more on

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A recent 3-year study by HAB on retail opportunities for bagged avocados showed 80 percent growth in bagged avocados’ retail dollars.

PHOTOS COURTESY OF CALIFORNIA AVOCADOS COMMISSION

our website. For example, there is ‘10-Minute Use recipes to sell more avocados per to sell avocados with a good-health theme Tortilla Soup and Avocado Brown Rice Salad.’” purchase occasion. To do this, offer bagged year-round. HAB dedicated 70 percent of its Avocados from Mexico’s Bezart agrees, fruit. Even though bulk sales account for 94 budget to nutrition research at major univer- “With the days of summer behind us, shoppers percent of total avocado category dollars, a sities across the U.S. Study topics include are looking for ideas to create fun, flavorful recent 3-year study by HAB on retail oppor- healthy aging, satiety, weight control, as well recipes to feed their families. Avocados have tunities for bagged avocados showed 80 as heart and brain health. good fats that, when used in certain ways, can percent growth in bagged avocados’ retail HAB’s Escobedo says, “We are working help control cholesterol, diabetes and weight dollars. Within the bagged category, 4-count with the researchers and marketers to trans- management.” Bezart suggests, “cross merchan- bags experienced the highest growth at 98 late the science into a consumer-friendly dising avocados in our new compact percent. The study also found that consumers form. We’ll then package and share this infor- waterproof bin next to the salads for a protein buy bulk and bagged avocados for different mation with the associations who can then replacement is a good idea. Add tortillas to the purposes, so there is great potential for build it into their promotions. Ideally, display for a quick after-school snack or light retailers to add incremental sales. consumers will look to eat more avocados at dinner menu idea.” In the future, there will be greater chances all meals and in many ways year-round.” pb

SEPTEMBER 2013 • PRODUCE BUSINESS 75 NY Apples_Layout 1 9/10/13 4:58 PM Page 1

The New York apple harvest begins in August and continues into October with an expected harvest exceeding 30 New York Apples: million bushels this year. A Beautiful State of Recovery Through a fortuitous combination of weather events, there should be an abundant supply of the best apples this year. BY BOB JOHNSON

“ hen the tree blooms in the spring, the cluster has side blooms and one Wking bloom. The king bloom is the strongest bloom, and makes the strongest apples,” explains Tim Mansfield, director of sales and marketing at Sun Orchard Fruit Co., Burt, NY. When the bloom comes out, if the weather is right and the bees are pollinating, you get more pollination of king blooms. This is what you shoot for every year, but it doesn’t always happen. It did this year.” The New York apple harvest began in year it looks like we will receive it,” says Mans- Thanks to the good weather, the harvest August with early varieties including Paula field. “We had a large bloom, and the should, once again, crack the 30 million Reds, Ginger Golds and Galas, and will pollination weather was good. As far as the bushel benchmark. continue into the middle of October with later number of bushels, it’s going to be larger, and “The volume is substantially up over last varieties like Crispins, Red Delicious and Fujis. we will have sizeable apples. The quality is also year due to our statewide freeze and crop As the New York apples come to market this pretty good.” failure. We expect to harvest around 31 to 32 year, a subtle shift will continue toward newer Producers can think of little, if anything, million bushels,” says Kaari Stannard, president varieties that suit consumer taste, including that they would change in the growing season of New York Apple Sales, Castleton, NY. Honeycrisp and some lesser-known delights. for New York apples this year. New York apples in 2013 are in a beautiful “In terms of quality, the growing season has Volume Doubles From Last Year state of recovery from the hailstorms that been perfect. In terms of quantity, it’s as near The difference between the 2012 and 2013 destroyed half the crop in 2012, and damaged normal as anyone could ask for,” says Lee Peters, New York apple harvests in volume is dramatic. much of the fruit that could be harvested. vice president for sales and marketing at Fowler “The volume in New York looks consider- “Generally, when you have bad weather one Farms of Fowler Brothers, Inc., Wolcott, NY. ably larger than last year. The early estimate for year you have a bumper crop the next, and this “It’s way, way better than last year.” this year in New York is somewhere in excess of

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30 million bushels, compared to just under 14 “The volume is last year,” says Sandy Cohen, president of Cohen substantially Produce Marketing, Camp Hill, PA. Apples are to be in good supply throughout up over last year due the country this year, as the Vienna, VA.-based to our statewide U.S. Apple Association forecasts a 243 million bushel crop nationwide this year, which is 12 freeze and crop percent larger than last year and 9 percent failure. We expect to higher than the five-year average. The abundance of the 2013 apple supply is harvest around 31 to largely because of the recovery in New York and 32 million bushels.” Michigan; additionally, the Washington crop is — Kaari Stannard, New York Apple Sales forecast to be a little smaller this year than last. Prospects look so good that retailers who the Minnesota native that has rocketed up the went elsewhere last year, because they could not list of the top half dozen varieties because of its get New York apples, will come back to their old unsurpassed texture. suppliers in 2013. “Galas, Pink Lady and Honeycrisp are all “I think we’re optimistic and somewhat popular, so a lot of them have been planted. The confident we’ll be able to pick up where we left Honeycrisp is a novelty apple,” Pavero says. off with our markets,” says Jim Allen, president Honeycrisp is the new star among apples, of the New York Apple Association, Fishers, NY. but it is not for everyone because it costs more Add it all up, and 2013 should be an excel- to grow and ship. lent year for New York apples. “Honeycrisp has a big following. It’s “This year is much better both quality-wise increasing in acreage, but not as fast as you and quantity-wise. Last year was a disaster with would think. It’s a difficult apple to grow and the frost, but this year we’ve had a good doesn’t give you as much yield per acre, and it’s growing season,” says Jody Pavero, owner of a difficult apple to pack. Its price at retail is Pavero Cold Storage, Highland, NY. higher because of the lower per acre yield,” says Sun Orchard’s Mansfield. Variety Is The Spice While Honeycrisp is the most prominent Consistant apple varietals come out of New newer variety, there are more varieties coming York, and Honeycrisp is steadily increasing. out of New York. “There have not really important varietal “It’s an evolving market. As new varieties changes over previous years but Honeycrisp come out, consumers taste them and ask for continues to grow in volume as new plantings them, like Zestar and Sweet Tango,” says come into production,” Cohen says. Fowler’s Peters. When they discuss newly popular varieties, Recent releases from the Cornell University apple producers always include Honeycrisp — breeding program are among the new varieties.

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SUPPLYING THE EASTERN SEABOARD Side Note ew York apples developed a repu- A few New York shippers send known tation with markets that run the New York varieties to Western retailers. Nlength of the Eastern seaboard. “We’ll ship local varieties like Empire, “We ship from Boston down to McIntosh, Courtland and Crispin out Florida, to the Midwest, and to the West,” says Tim Mansfield, director of Caribbean. We’ll hit the west side of sales and marketing at Sun Orchard Fruit Pennsylvania, and that’s the farthest west Co., Burt, NY. we go,” says Jody Pavero, owner of But even shippers who send a few Pavero Cold Storage, Highland, NY. loads west are selective about bucking Even global shippers generally keep the freight costs and competition. their domestic apple sales to the eastern “In the fall, we do ship a few loads of half of the country. Cortland and McIntosh to California, but “I would say, generally, New York we stop at Texas since we lose our freight apples go from Maine to Florida and as advantage. Our organization ships as far far west as Ohio, domestically. Globally, west as Texas and as far Midwest as New York and other Eastern apples Minnesota. We also ship to the entire continue to grow in a number of regions eastern seaboard,” says Kaari Stannard, throughout the world,” says Sandy president of New York Apple Sales, Cohen, president of Cohen Produce Castleton, NY. Marketing, Camp Hill, PA. There is enough demand in the Even Pennsylvania apple shippers Eastern markets that New York apples maintain their “Eastern identity.” will theoretically keep increasing. “Although we ship lots of New York “As consumers experience the new apples, we’re located in Pennsylvania. We varieties and the good quality, they buy market and promote Eastern apples. We more,” says Lee Peters, vice president for just moved our office from Aspers, PA, to sales and marketing at Fowler Farms of Camp Hill, PA,” Cohen says. Fowler Brothers, Inc., Wolcott, NY. pb

“We are increasing acreage on varieties such “Our freshness and consistent quality sells as Honeycrisp, Gala, Fuji and managed varieties our product at retail. We deliver mostly over such as RubyFrost and SnapDragon. These are night with our farthest distance to Texas, two- the new varieties announced by the New York day journey. Our taste profile is excellent and Apple Growers Group; apples that came from consumers return for it time and time again,” the Cornell program,” says Stannard of New Stannard says. York Apple Sales. Quality is the key to developing a loyal customer base for New York apples. Display Your Local Product “You need to have quality, well positioned New York apples are often considered local pieces of fruit. If you have that, people will along the Eastern seaboard, and it pays to come back. You’ve got to have consistent display them as such. quality, or people won’t come back because “The Northeast and Eastern seaboard area money is too hard to come by these days,” tend to look at Eastern apples as local, Pavero says. whether they come from New York, New Offering consistent quality takes developing England, the mid-Atlantic or even parts of the relationships with the best New York apple Midwest. We’re within 500 miles of two- shippers. thirds of the population,” says New York “Work with shippers that concentrate on Apple Association’s Allen. quality,” Sun Orchard’s Mansfield advises. The time-honored local appeal of New York “Nothing beats having good quality on the shelf apples goes back generations for many and fresh quality. If it looks good, the consumer consumers, and the appeal has more recently is going to try it. If it is good quality, you’re benefited from environmental concerns. going to have return sales.” “Promoting ‘local’ helps because of the Even the best apples have to catch the overall eating quality and the reduction of the consumers’ eyes. carbon footprint,” Cohen says. “Retailers need to keep them front-and- Shorter shipping distances not only reduce center, and they need to pass on to the freight costs and carbon impacts, they help to consumers the proper margins with a good keep the fruit fresh and of high quality. price,” Fowler’s Peters says. pb

80 PRODUCE BUSINESS • SEPTEMBER 2013 Michigan Apples_Layout 1 9/11/13 11:34 AM Page 1

After last year’s devastating losses, the Michigan apple industry is back in full swing. Michigan Apples: What A Difference A Year Makes Growers are excited for a promising crop this year and share their predictions on favorable varietals. BY BOB JOHNSON

ast year an early heat wave followed by a cold frost-filled spring destroyed nearly 90 percent of the Michigan Lapple harvest — the most devas- tating Michigan apple crop loss in well over a half century. This year growers and shippers from throughout the state report that recovery is in full swing, and they expect a robust crop in 2013, followed by steady growth for years to come. “Michigan is coming back this year,” says John Schaefer, president of Jack Brown Produce Inc., Sparta, MI. “This year looks excellent; we might have a vintage crop. It was a good growing season last year, so the trees were healthy going into the winter. Perhaps we will have even more apples than two years ago. There have been a lot of new plantings put in over the last five years, and those trees are beginning to bear fruit.” “Last year was strictly an event that took very large crop, you tend to have the best Jack Brown Produce ships from the entire the fruit. The trees came into this season well quality,” says Don Armock, president of west side of Michigan, to the Indiana border, rested. We’re probably on the cusp of having Riveridge Produce Marketing, Sparta, MI. to the middle of the state, and began shipping a crop of record size. We have new acreage, The weather has been so cooperative this its first apples the third week of August. and new bearing acreage. When you have a year that the abundant Michigan apples figure

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this year. It looks outstanding compared to Side Note to be even sweeter than usual. last year, where we didn’t really have a crop,” GEOGRAPHICALLY “We’re having relatively dry weather, says Diane Smith, executive director of the SOUND which brings the sugars up rapidly. The early Michigan Apple Committee, Lansing, MI. harvested varieties had exceptional sugar Not only have the apples come back this ichigan apples largely serve levels,” Armock says. year, but recently planted acreage is starting markets carved out of the Mcenter of the country, to bear fruit, which means there should a Ramping Up steady increase in Michigan apples for at least avoiding competition in Washington, This upbeat assessment of how well the a half decade. California and New York, which all have crop has bounced back from the 2012 disaster “We will absolutely continue to grow, both shipping advantages. is generally shared within the Michigan apple our company and the state. The five year “Take a cone from Michigan to community. projections I’ve seen say we’re continuing to Florida in the East and Texas in the “We’re very excited to have a good crop ramp up,” Schaefer says. West. You go much further west and Washington has a freight advantage. You go much further east and New York has a freight advantage,” says John Schaefer, president of Jack Brown Produce Inc., Sparta, MI. That core market in the heartland seems ready to return to Michigan for their apples this year. When asked if the customers who could not get Michigan apples last year will be back this year, Don Armock, president of Riveridge Produce Marketing, Sparta, MI, replies, “We’re pretty confident. Most of our markets are in the central part of the U.S. out to the Rockies, and the Southeast.” There are also important interna- tional markets for Michigan apples. “We ship to 26 states and 18 coun- tries. We don’t go too far west; we go a little west of the Mississippi. But Michigan has a prime location to half of the country. As we increase the size of our crop, we’ll look at different markets, says Diane Smith, executive director of the Michigan Apple Committee, Lansing, MI. As acreage increases, some shippers are already looking at different markets. “We promote them anywhere people like great tasting apples; we don’t limit ourselves geographically,” says Chris Sandwick, vice president for sales and marketing at BelleHarvest Sales, Inc., Belding, MI. Unlike 2012, shipments of Michigan apples are just a phone call away. “We’ll have truckloads on the way,” Armock says, “as soon as you place your order.” pb

Along with recovery in the orchards, prospects look good for recovery of markets that Michigan apple shippers were unable to serve last year. “We’re going to recover the shelf space we

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couldn’t serve last year. We have spent the last varieties consumers are demanding, and summer talking to our old customers, and to growers have responded,” Jack Brown’s some new ones, and the response has been Schaefer says. excellent,” says Chris Sandwick, vice president There are, however, still a large number of for sales and marketing at BelleHarvest Sales, customers who want to eat the apples that Inc., Belding, MI. their parents or grandparents ate. “We have to remember that there are still A Crop Full Of Honey lots of people with allegiances handed down Apple growers all over the country are from generation to generation for varieties increasing their acreage of Honeycrisp, the like McIntosh, Empire and Courtland,” record setting newcomer to the list of top Armock says. varieties, none more so than the Michigan The advisable strategy at the retail level is growers — who got an early start with this to offer choices of varieties, sizes and packs. Midwestern native. “We work the grower and wholesaler end, “We will have record crops of Honeycrisp but as a consumer, I want to see a number of for some years to come, there will be a varieties, both large and small apples and substantial increase this year versus two years both bag and bulk. Consumers want a ago,” Riveridge’s Armock says. “Over the past choice,” Schaefer says. decade, two things have changed. There has The particular mix of choices that makes been a dramatic movement away from apples sense at any particular store depends largely for products like juice and applesauce. The on the neighborhood. other change is that we’ve eliminated some “You need to have the varieties and size of varieties that weren’t doing well and increased pack that is suited to your neighborhood. If Gala, Fuji, Jonagold and Honeycrisp.” price is important to your customers, you Other shippers agree that Honeycrisp will need to have fruit and the style of pack that lead the rise of newer premium varieties for will let them feed their families. If your the foreseeable future. customers are in the upper income range, “Red Delicious, Golden Delicious and you need Honeycrisp and some of the McIntosh continue to be standards, but other new varieties. Not only do you need to what’s coming on are Jonagold, Gala, Fuji and have them, you need to promote them,” Honeycrisp. These are some of the premium Armock says. pb

84 PRODUCE BUSINESS • SEPTEMBER 2013 Produce 4 Better_Ad 8/22/13 11:56 AM Page 1 Peruvian Onions_Layout 1 9/17/13 10:26 AM Page 1

Sweet onions from Peru help bridge the gap between the more familiar domestic sweet onion varieties. Peruvian Onions Gain Traction

Peruvian onions are poised to attract sweet onion fans. BY BARBARA ROBISON

he Peruvian Onion season began “As originators of the ‘Mayan’ sweet onion nent position to deliver sales and profit to the with an estimated 10 percent crop from Peru, we have developed growing prac- produce department.” increase, compared to last year. tices based on what consumers expect from “Each retailer is aware of what works to T Regional Management of La domestic sweet onions in sweetness, taste, and emphasize products. We believe that this Libertad in Peru expects an onion appearance,” says Kurt Schweitzer, co-owner, year’s Peruvian onion crop is of a manageable crop of 40,000 tons this season. “We have a full Keystone Fruit Marketing, Inc., Greencastle, volume — the bigger displays, the better,” range of sizes of our Peruvian onions,” states PA, a produce grower, shipper and marketer. remarks Barry Rogers, president, Sweet Matt Curry, president of Curry & Company, “We’ve done a lot of testing and research to Onion Trading Corporation, Melbourne, FL. Brooks, OR, producer/shipper of sweet onions provide what our customers want. Eighty to “Retailers know their stores and their and other fruits and vegetables. 85 percent of our crop is grown specifically customers’ expectations better than I do. We “The crop is significantly larger than on our farms for our customers, and we have do business with box stores to high-end previous years due to our partnership with our own packing facilities. We grow the sizes markets and work with them in different ways Suncrest Produce Solutions, a large importer especially for the customers’ uses. If they are to help maximize their sales and profits,” of Peruvian sweet onions out of Lake Wales, using bags, we have 2.5- to 3-inch onions for notes Derrell Kelso, Jr., CEO and owner, FL, nearly quadrupling tonnage to over 200 the 2-, 3-, or 4-pound bags, and 3.25- to 4- Onions, Etc., Inc., Stockton, CA, a packer, containers.” inch onions for the 5-pound bags.” shipper and re-packer of onions. “Sweet onions should be displayed in a Peruvian Onion Season Forecast Vital Role For Displays large, central spot in the produce aisle, and “This year’s Peruvian onion crop looks Peruvian onion suppliers agree that well secondary displays should be built to accom- nice with good volume and early crop sizing designed retail displays are an important part modate incremental sales during holiday toward mediums and jumbos,” reports John of a successful onion program. They drive weeks. It’s important to call out the mild, Shuman, president and director of sales at sales. No one display fits all. “We would like sweet flavor of the onions through signage Shuman Produce, Inc., Reidsville, GA, a as much space as possible,” says Curry. placed close to the product. When the flavor grower/shipper of sweet onions. “However, I’d say it isn’t necessarily an profile and versatility of sweet onions are Sweet onions from Peru help bridge the optimum size, but more an optimum posi- emphasized, it causes consumers to value gap between the more familiar domestic tion. Peruvian sweet onions need to be clearly them highly,” states Shuman of Shuman sweet onion varieties, such as Walla Walla, displayed and not confused with the standard Produce. Vidalia and Texas 1015 onions. The flat shape yellow onion set. They demand a premium and characteristic color quickly identify the ring at the register to capture as many of those Growing Sales ‘In the Bag’ Peruvian varieties as sweet. sales as possible. They need to be in a promi- Peruvian onions in bags appear to be of

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increasing interest, both by consumers and retailers. Suppliers are seeing more requests for the bags in 2-, 3-, 4-, and 5-pound sizes. The bags provide an option for colorful displays and also offer a place for proper storage, handling and other information, plus recipes. “Bags and bulk sweet onions seem to attract two different customers,” observes Sweet Onion Trading’s Rogers. Shuman Produce encourages retail part- ners to stock a mix of both bags and bulk product to accommodate the purchasing habits of their customers’ demographics. The demand for sweet onion bags has risen steadily since its introduction to the market and now makes up roughly 40 to 50 percent “Bags are an important part of the retail Onion Etc. also offers bag programs for of the company’s total volume shipped business. Displays of both bags and bulk side Peruvian sweet onions. Kelso views the bag as throughout the year. by side are good for any sweet onion sales innovative, attractive and practical packaging, “Bagged Peruvian onions typically represent program. A second display, especially with which is quickly gaining consumer attention a value-buy, and our percentage of bags potatoes, will increase consumer interest and and stimulating impulse purchases. It works continues to increase. We like to see a display of help build sales,” according to Schweitzer of well for cross-merchandising purchases. “In our large, sweet bulk onions with a bag option. The Keystone. 2-pound sweet onion bag, we print the UPC size of the bag depends on the market. We also “During the season, we like to sell the Peru- code as we pack the onions. A sticker on the continue to see strong bag sales at the start of vian onion 3- and 5-pound bags along with front of each bag identifies the variety. One of each month, so it can be a good strategy to offer running ads for them. We also sell the bulk our sweet onion specialties is a ‘Poppa’s Sweets’ a bagged onion promotion during the first onions, of course,” says Tony Smith, merchan- in a vexar bag,” remarks Kelso. week of each month for a nice sales lift,” dising manager, J.H. Harvey Company, LLC, suggests Curry of Curry & Company. Nashville GA, a 73-store retail food chain. Merchandising Programs Aid Peruvian Sweet Onions When it comes to produce merchandising, Curry & Company is a strong supporter of recipe suggestions for Peruvian sweet onions. “There is still opportunity to educate consumers on how they can be used in every- thing from salads to entrees. Lots of coverage is given to sweet onions on food television shows and in the food sections of magazines and newspapers. Retailers can capitalize on this type of coverage by partnering with local media. In-store signs that advertise, ‘Enjoy this sweet onion recipe as featured in your local newspaper or TV show,’ will not only sell sweet onions but other items in the recipe,” Curry suggests. “Some of our favorite items to use in cross merchandising with sweet onions are yellow squash, red potatoes and zucchini. Our customers like to mix the onions with those items,” says Smith. Shuman Produce makes it easy for its retail partners to offer consumer usage ideas through a variety of recipe preparation videos (featuring the company’s own chefs) called, “Chef and The Fat Man.” The short videos feature dishes prepared by the chefs, and provides step-by-step preparation instruc- tion, along with information about the crop. “Kitchen Counter Merchandiser” is a program Onions Etc. offers retailers as an

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“Some of our favorite items to use in cross merchandising with sweet onions are yellow squash, red potatoes and zucchini. Our customers like to mix the onions with those items.” — Tony Smith, J.H. Harvey Company

interesting way to promote meals eaten at home. It utilizes onions, often stored on the consumer’s kitchen counter, as a catalyst to increase incremental sales of items not on the customer’s shopping list. It is a program designed by a merchandising team of experts, using high graphics. Each sweet onion bag promotes not only onions, but also slower moving SKUs such as root vegetables, herbs and radishes. It also can promote high dollar, high margin SKUs like avocados and berries. “We highlight herbs in every recipe because herbs make dishes taste better. Retailers ask us to promote herbs so consumers will like their own cooking and retailers sell more herbs. A shopping list on the back of the bag helps increase incremental sales as well as sweet onion sales,” explains Kelso. “We work with our individual customers and can provide a video demonstration with a chef explaining the comparison between Vidalia onion and Peruvian onions, which retailers can include in their online programs,” states Keystone Fruit Marketing’s Schweitzer “We also know consumers are interested in finding out more about where and how a product is grown. Our QR (quick response) code used at point-of-sale links to information about our Peruvian farms.” According to Cathi Holloway, produce manager of one of Logan’s Markets, Inc, a privately held, single store supermarket in Vale, OR, “Our customers like to know where things come from and about the products. The stickers on the onions come off sometimes, so we try to display the boxes of Peruvian sweet onions prominently to help consumers see where the onions were grown. We also let them know that sweet onions do not keep as well, and we explain how they should properly handle them for longer use.” pb

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CustomersValue In Find Differentiation PWPM

Identifying niches and re-defining business keep Philadelphia wholesalers competitive and relevant to customers and shippers. BY JODEAN ROBBINS

he Philadelphia Wholesale Produce Market (PWPM) “You’re not in business anymore if you don’t find your niche,” has a long history of seeking out and fulfilling the adds Mike Maxwell, president of Procacci. “The opportunities are needs of its customers. “Our produce business has always out there. You just have to identify and capitalize on them.” always been about serving niches,” says Joe Procacci, The increasingly competitive nature of today’s business puts CEO of Procacci Brothers Sales Corporation. “Back even greater emphasis on niches. “Niches are important to the days on Dock Street, it’s always been a business of finding because Produce is a very competitive industry,” says John Vena, out what your customer wants and how you can best fill it. Today, president of John Vena, Inc. “People need to differentiate their we try to give our customers what they need.” business, going after certain niche groups or making themselves “Niches are important to serving customers,” says Mark Levin, better able to serve particular customers.” Towner and CEO of M. Levin & Co. “You have to define your niche “Niches are driven by competition,” agrees John DiFeliciantonio in the market — whether it’s the small item that takes off in a big partner at Ryeco Produce. “Niches force a company to find ways way or the big item that takes off small.” to be valuable to the customer. Delivery, creating custom packs,

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Mike Maxwell, Joe Procacci and Rick Feighery Jose Flores, Louie Diaz, Jim Canterino and Tom Daly PROCACCI BROS. SALES CORP. PHILLY PRODUCE

Bud Lombardo and Mike Lombardo Fred Penza and Todd Penza PINTO BROS., INC. PINTO BROS., INC.

John Dohanicz and Jimmy Carter Andre Santori, Buyer, SANTORI’S FRUITS AND VEGETABLES G&G PRODUCE and John Nelli, HUNTER BROS., INC.

drop-shipping to customers, cross-docking, am bringing stuff from all over the country regular customer base for bananas and giving more service and the backstory all to meet all kinds of needs. That’s the value serving those who need to fill shorts. When play a role now.” we offer as a market.” you’ve been doing something for 100-plus “More and more companies are “We serve many who recognize our years, you know what you’re doing. In specializing in different areas to attract a value,” says Tom Kovacevich III, general Philadelphia, we are the single oldest customer base,” says Thomas Daly, managerwith T.M. Kovacevich. “Indepen- family-run business, and this fact salesman with Philly Produce, LLC. “They dent retailers, farm markets, international contributes to the solid position we occupy try to attract customers to the market with supermarkets, ‘mom and pops’ and food- in the marketplace. I contribute our success what differentiates them from others.” service are the top five buyers for us right to the hard work of past generations.” The PWPM provides value for a variety now.” Building on proven expertise is crucial of niches. “Our niche is providing the to future success. “We developed a tropi- things people need here 24/7,” says Todd Creating A Niche cals business to complement our already Penza salesman with Pinto Brothers Companies on the PWPM boast years of established strength,” continues Levin. Produce. “For example, Baldor [based in developing their expertise. “Our big niche “Creating a successful niche means Bronx, NY] is here every day because they is obviously the banana business,” states focusing on what you’re good at.” couldn’t load enough at their warehouse Levin of M. Levin. “Because we’ve been John Vena Inc. started developing its or because they’re getting a better deal. I doing it for so long, we’ve developed a niches in the mid ’80s with greenhouse

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Tom Kovacevich, III Louis Penza T.M. KOVACEVICH PHILA., INC. PINTO BROS., INC.

Cheryl Grady, John Vena and Katharine Mandia JOHN VENA, INC.

Marty Strulson, Richie Routhenstein, Nelson Gonzalez and Marty Roth COOSEMANS PHILADELPHIA, INC.

produce and Asian items. “We wanted to vice president of sales for Procacci, serve customers who were underserved,” explains, “We’ve been able to build an says Vena. “We considered other things organic supply with broad variety, and we could develop to differentiate we’re continuing to develop products to ourselves. We found opportunity in hot fill holes in the organics market.” peppers, fresh herbs, ethnic items and T.M. Kovacevich plans to serve the foodservice items. Customer requests led growing organics niche in the near future. to different packaging as well as new “Once we find the right category products. We’re now able to use our manager, we’ll be serving our customers packing facility to serve many different with an outstanding product and service,” customer needs and niches.” says Kovacevich. “We pride ourselves on Organics present additional examples excellence, and we expect our organics of niche-building. Thirteen years ago, expansion to follow suit.” Procacci recognized a void in the need Offering fuller lines of product cate- for a fuller line of organics. Rick Feighery, gories allow companies to concentrate on

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Todd Penza, PINTO BROS., INC. Marty Roth and Marty Strulson and Dan Vena, JOHN VENA, INC. COOSEMANS PHILADELPHIA, INC.

serving their customers. “Everybody’s pack items daily, providing the customer looking for something different,” says Rick with fresh packed products.” Milavsky, president of B.R.S. Produce. G & G Produce Inc., sees a particular “Whatever the hot vegetable is at the time niche in working with all sizes of is what they’re seeking. We offer a full line, customers. “You never know who you’re so we have what our customers need.” going to talk to,” explains G & G’s buying Newcomer Philly Produce opened on and sales manager for pineapples and the PWPM in August 2012. Philly Produce’s Eastern apples, John Dohanicz. “The Daly reports, “We specialize in Chilean companies that buy one and two pallets imports, blueberries, citrus, a full line of can be more important than any single tomatoes, potatoes, onions, domestic citrus, big customer. If you don’t have one’s and apples, and bananas — ripened at our own two’s, you’re not going to be in business. Rick Milavsky facility. Our facility in Newark allows us to We have one customer that was initially B.R.S. Produce Co.

buying only two to four packages at a time. Now, he’s pulling several straight trucks a week.”

Expanding Product Variety Expanding lines and variety are common among PWPM merchants. “Our business keeps evolving,” says Marty Roth, vice president for Coosemans Philadelphia. “We continually seek to add new products; for example, different peppers or new vegetable varieties, to fit customer needs.” Stea Brothers started carrying dried figs found only in Greece’s Kimi Island. “These figs are very hard to find, and they are amazing in taste,” says Frank Stea Jr., co-owner of Stea Brothers. “Everybody who has tasted them bought a box.” Ryeco’s expansion into hothouse prod- ucts has yielded great rewards. DiFeliciantonio reports, “We’re seeing great success in the cluster tomatoes, beefsteak, tray tomatoes, and hothouse peppers — including mini ones. We get shipments every night, and 90 percent is sold within 12 hours of receiving it.” Coosemans is showcasing new Kids Choice watermelons, available in bin 45’s, bin 60’s and bin 36’s, as well as yellow meat, orange meat, and black seedless.

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John Durante, president of Nardella Inc. states Kevin Delaney, director of marketing “Ten years ago, you saw mostly apples, for Procacci. “This allows us to keep up with peaches, etc. Now we have products like emerging trends in these niche markets.” dragon fruit. It’s a great little niche. Our dragon fruits are booked out before they Service Opportunities come in.” Merchants are also differentiating Colotti & Sons Produce is adding new themselves with service. Preconditioned products, such as more fruit and novelty and ripened fruit is an evolving niche. items. “We’re trying to reach out to “There are very few people who can ripen customers who may be pulled in because their own fruit,” says Philly Produce’s Daly. we have these different items,” says John “Preconditioned fruit gives the customer a Tracie Levin Colotti, salesman. “For example, we have better eating experience. We expect to M. LEVIN & CO., INC yellow mini carrots. It’s not big volume, but see an increase of interest in precondi- is a big interest.” tioned items like avocados, kiwi, mangos “This fits the niche of marketing produce Jesse Pitt & Co. is carrying a line of and honeydews.” to kids,” says Nelson Gonzalez, salesman plantain, banana and yucca chips to In June 2012, John Vena opened a at Coosemans. “It’s a relatively new label, complement its line of other fresh tropical ripening facility in partnership with its about two years old, and one of the finest items. “We’re trying to find something no primary avocado supplier, West Pak growers of watermelon in the country. The one else has,” says Rich Clark, buyer for Avocado Inc., based in Murrieta, CA. “The bin graphics attract shoppers, but you Jesse Pitt. “Another niche we have is that rooms have been in operation just over can’t fool the public on taste. You must we cater to smaller customers, because in one year; as a result, we saw a strong have good quality product in the bins, and our store, customers can quickly get in uptick in our overall avocado program,” this third-generation grower is putting and get out.” reports Dan Vena, sales manager. “Real only the best in the box.” Procacci has developed direct sales. value is created for our customers, Nardella has expanded into more “Last fall, we launched our online store to because we are able to offer Hass ethnic fruits. “Compared to 10 years ago, market niche items like fruit baskets and avocados at exactly the stage the the product mix is different now,” says Italian chestnuts direct to consumers,” customer specifies, from green to ready-

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Jack, John and Brian Collotti Kevin Delaney and Rita Netzypor COLOTTI & SONS PRODUCE PROCACCI BROS. SALES CORP.

to-eat. Joe Menei, our avocado ripening unique solution for sourcing and distribu- manager, is an artist when it comes to tion. “We saw a niche where independent avocados, and customers have come to grocers needed someone to buy and rely on the quality of the fruit he prepares. distribute for them,” says Maxwell. “We Joe also pre-conditions tomatoes, also recognized an additional gap in the bananas, papayas and pears for us and floral business — since a lot of companies other customers.” closed during the recession.” M. Levin has a total of 36 ripening In addition to its successful customer rooms between its two locations. “Having orientation, Pinto Brothers found niches this amount of rooms allows us to give our helping the supply side. “Providing serv- customers the right product at the right ices for suppliers has become more stage of ripeness,” says Levin. “We’ve valuable with increasing freight rates and Artie Diamond made an investment in our future to the importance of transportation,” explains Buyer, DIAMOND PRODUCE ensure that our customers are serviced Penza. “Customers want produce deliv- now and for years to come.” ered faster than ever before. An area other customers faster, because in many Procacci’s direct-store-delivery prog- market such as the Philadelphia Market cases, we already have their product here. ram to independent stores provides a can help shippers get their product to For last minute orders or fill-ins, we get it out for them in record time.” The recent move of one of the nation’s leading domestic ocean shipping compa- nies, Charlotte, NC-based Horizon Lines, New Trucking Venture: from Newark, NJ, to Philadelphia, PA, gave Finding Niches In Logistics the PWPM an opportunity to sell produce in Puerto Rico. Newark, NJ-based freight new venture in transportation and logistics seeks to take advantage of niche shipping and trucking company Export opportunities in working with vendors, merchants and customers of the Transport Co., ships regularly to Puerto A Philadelphia Wholesale Produce Market (PWPM). Rico and is sourcing off the PWPM. “We “Our purpose is to provide quality transportation solutions to satisfy the trans- specialize in refrigerated ocean container portation needs of wholesalers, retailers, and shippers by managing customer freight transportation and have been in business from door to door,” says Tom Aupperle, owner and vice president/manager of MVP for over 30 years,” says Jerry Markano, Logistics. “We are a full service logistics/3PL company specializing in the manage- operations manager for Export Transport. ment of temperature controlled freight with coverage in all 48 continental states.” With offices located in the PWPM, but MVP began organizing the business in September 2012 and was granted a license using terminals in Philadelphia, Newark, to operate in October 2012. “The company provides hands-on customer service with and Jacksonville, FL, the company offers both customers and carriers,” reports Aupperle. “From the customer side, each load load consolidation, custom loading, and is followed from pickup through delivery with real-time e-mail updates. Customers inspections of produce being shipped to receive information on each step in the loading and delivery process via e-mail Puerto Rico. “Our location at the PWPM immediately when those steps take place.” has many benefits from not breaking the Its location on the PWPM provides added benefits. “With our office in the PWPM, cold chain to being able to cover shorts we’re in the perfect location for both customers and carriers,” says Aupperle. “This on last-minute orders,” says Markano. adds a personal touch to doing business with each transaction; we listen to indi- vidual customer concerns and needs and then seek the best logistical solution.” pb Taking The Risk Great reward comes only after ample risk. “It’s necessary to take the risk,” says

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Bill DeFelice, Joel Siegel, Jeff Moore, Peter Gabriel, Mark Levin, Lonnie Zweifel M. LEVIN & CO., INC.

Levin of M. Levin. “If you don’t look to “You have to know how much risk varieties or items provides an interest to explore new items, you’re going to be lost.” balances out the potential,” adds attract customers to come in,” says Colotti. A successful business must always be Procacci’s Feighery. “Everything in this “Niche products bring in customers who evaluating what its next move will be, business is a leap of faith. Some of it might not come in otherwise,” advises agrees Procacci. “You have to stay current works, and some of it doesn’t.” Ryeco’s DiFeliciantonio. “For example, we with your customers.” “You have to be confident that the prod- attracted a new customer with the hothouse PWPM merchants look to balance risk ucts and services you offer that make money product, and now he comes in to check out with expertise and a track record of are greater than the risk you’re taking to our purple potatoes or fennel. This helps success. “Everything we do is risky,” states expand,” says Pinto Brothers’ Penza. him expand his business and we learn Kovacevich III. “Balancing risk and reward Carrying niche items plays to increasing more about how we can serve him.” is an important factor in our success.” interest among customers. “Having newer Companies may carry seemingly low

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Carmel Barr, Claudia Redding, Pam Ehling, Gina DiFeliciantonio, Keith Reilly and Mike Reilly, Jr. Lorraine Argenzio and Donna McDowell (Seated), RYECO, LLC RYECO, LLC

volume items just for the novelty factor. “A new,” agrees Stea Jr. “You have to create customer; to find out the details of season, niche item brings people in for other excitement for the customers. Find things pricing packaging. The market helps me items,” says Levin of M. Levin. “People they haven’t seen before.” find this information in one place.” come in for the grapes, fresh olives, or Information and education are impor- figs, and then take something else. It gets tant aspects. “As soon as my customers see A Quality Niche them in the door. Unfortunately most publicity about something new, they want Wholesale markets have long been people scratch their niche items because me to find it,” says Tom Curtis, owner of known for catering to many different they’re not big movers. They lose the Tom Curtis Produce Company, a segments, but the PWPM has evolved to opportunity to capture customers who brokerage business serving a mix of represent a higher quality offering. might come looking for those items.” customers on East Coast and a buyer on “Markets have always had a bit of every- “It helps to be known for something the PWPM. “My role is to educate my thing for everybody, but we’re seeing a

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huge quality emphasis from our quality produce,” Ryeco’s DiFeliciantonio customers,” reports Fadi Abi-Khattar, pres- points out. “In other places, there are ident of Klinghoffer Brothers, Inc. more levels of handling. Here the product “Philadelphia has always been quality- comes direct from the field.” oriented,” states Procacci. “We have Customers are increasingly discerning. companies in this marketplace that are Abi-Khattar relates, “Our customers come outstanding at what they do. We’ve always in and really look through the product. tried to be the best and offer the best.” They’ll pick up clamshells and turn them “Historically, the markets have always over and over. If there is one bad berry or been where you get the freshest, highest tomato, they’ll put it back and pass us up.

Tom Curtis and Anthony Stea STEA BROS., INC

Johnny Abi-Khattar KLINGHOFFER BROS., INC.

We have to offer the best quality at competitive prices.” “Our customers have high demands, and if it’s not perfect, then they don’t want it,” agrees Coosemans’ Roth. “There’s not much of an alternative outlet anymore.” The PWPM allows for quality mainte- nance. “Quality has to be spot-on,” says Curtis. “This market allows me to buy and inspect the product before it’s shipped to my customers. The state-of-the-art cold chain and cold staging areas eliminate a lot of returns or problems on my end.” Pinto’s Penza adds, “We must meet the needs of two niches: our walk-in traffic as well as the more typical wholesale distri- bution customers. My business and facility need to be at the highest standard for all.” Shippers benefit as well from Philly’s quality niche. “An important part of keeping our niche is our relationship with our shippers,” says Abi-Khattar. “When our shippers work with us and send us great product, it helps us best serve our customers and maintain our niche of good quality and value in this marketplace.” “This facility protects the produce from the elements,” explains B.R.S.’s Milavsky. “Here, you have very few mistakes, as far as delivery or handling, since everything is

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John Black Louis-Hunter Kean Mr. Singh, Buyer on The Market and E.W. KEAN CO., INC. E.W. KEAN CO., INC. Ted Kean, E.W. KEAN CO., INC.

color-coded and the docks are easy to get matches the standards of the off-market showcase their best product here because in and out of. The nice smooth surface distributors and wholesalers. We’re not it’s a great backdrop.” means nothing gets bumped or bruised. comparing ourselves to other markets; Shippers know their product maintains its we’re comparing our abilities with other Customer-Driven integrity throughout our facility.” state-of-the-art distribution centers.” Identifying and capitalizing on new The new building has paved the way “We now have the ability to maintain niches often begin with the customer. “New for optimum quality and food safety. “With product in better condition and for longer opportunities come by working together all the increased emphasis on food safety periods of time,” says Tracie Levin, with our customers to identify products they and the confidence customers and ship- general manager of M. Levin & Co. “The need,” says Coosemans’ Roth. pers need in the supply chain, you can’t old days of an open-air market where “Leads often come from customers,” build a new facility and not do what we product is melting in summer or freezing states Procacci’s Maxwell. “You just have to did here,” states Penza. “This building in winter are gone. Our shippers want to listen and sometimes walk in their shoes.

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Nelson Gonzalez John Durante Rich Jones COOSEMANS PHILADELPHIA, INC. NARDELLA, INC. HUNTER BROS., INC.

Alex Dvor, Buyer, ADM PRODUCE and Joe Armata Frank Banecker and Bob Ziernicki M. LEVIN & CO., INC. PROCACCI BROS. SALES CORP./GARDEN STATE FARMS

Our job is to work with the customers, find the solution to their need, and get a product This building matches the standards of the with good value and good legs to them.” “ PWPM’s varied customer base offers off-market distributors and wholesalers. We’re lots of opportunity. “Selling niches is not not comparing ourselves to other markets; about bringing in a lot of product and pushing it out,” says Ryeco’s DiFeli- we’re comparing our abilities with other ciantonio. “It’s about looking at customer state-of-the-art distribution centers. needs and fitting inventory to what they ” —Todd Penza, Pinto Brothers Produce request. The many immigrant communi- ties provide ample opportunity for selling niches and differentiation.” you do, so you need to get educated.” day,” he explains. “Without a robust system, “Our customers are very smart, and we “The needs change every day, so listen we couldn’t keep track of inventory.” can learn from them,” says Gonzalez with well,” advises Procacci’s Feighery. “As for The Internet and social media are other Coosemans. “The type of customer we what the needs will be tomorrow, we don’t beneficial technological outlets for busi- serve has broadened over the years and know, but we find them as we go.” ness. M. Levin uses a Facebook page to now includes many different ethnicities reach customers, the public and vendors. like Indian, Chinese, Latinos, Vietnamese, Tools Of Technology “We use it to keep them updated on what and West African, among others.” PWPM companies build success on the we’re doing,” says Tracie Levin. “Our “The ethnic customers buy products foundation of the past with the tools of the website has our company history, informa- year round that were seasonal years ago, future. “Each generation has wondered tion on our products, and sections to meet such as apples,” explains Nardella’s how the next generation will survive but our family and meet our salesmen.” Durante. “A few of my best Chinese they do,” states Mark Levin of M. Levin. “I John Vena, Inc. uses online and social customers buy just as many apples in always ask the next generation of the media applications. “We have an interac- August as in December.” industry about this, and their answer is, tive website for customers,” explains Gleaning knowledge works both ways. ‘The same way you did — with hard work Katharine Mandia, marketing coordinator “Sales is about education,” says Durante. and new technology.’” for Vena. “We use technology to work with “Sometimes the customer doesn’t know the Vena credits the technology of his customers to educate them on products. product and you need to be the educator. computer system as supporting niche We’re also using social media to interact Other times, the customer knows it before development. “We sell 500 to 600 items a with consumers and customers.” pb

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PHILADELPHIA MARKET PROFILE 2013

Philly Merchants Give Back Located in the City of Brotherly Love, the merchants of the Philadelphia Wholesale Produce Market gladly share the responsibility of providing for the less fortunate. BY JODEAN ROBBINS

he Philadelphia Wholesale Produce Market (PWPM) and its merchants place great importance on giving back to the T community. “PWPM is involved in donations or charitable giving on a daily basis,” reports Sonny DiCrecchio, president/CEO of the PWPM. “The organizations we donate most to include Phil- abundance, Stenton Manor Family Home, Ron Jaworski’s Youth Foundation called Jaws Youth Playbook, the Gary Papa Run for prostate cancer awareness, American Diabetes Association, Amer- ican Cancer Society, Eastern Service Workers Association, American Arthritis Foundation and the American Red Cross.” One of the PWPM’s biggest recipients is Philabundance. Estab- lished in 1984, Philabundance is the Delaware Valley’s largest hunger relief organization serving 65,000 people each week in nine counties in Pennsylvania and New Jersey. “We work to alleviate hunger by distributing food to people in need through a network of close to 500 neighborhood food pantries and a number of direct neighborhood distribution programs like Fresh For All,” explains In cooperation with the United Fresh Produce Association’s United Fresh Bill Clark, Philabundance president and executive director. “Fresh Foundation, PWPM donated a salad bar to promote healthy eating and For All is like a traveling farmers market that sets up in 12 loca- good nutrition in school lunches. tions across the Delaware Valley at the same time, and each week provides fresh produce to people who need it.” Donations from the PWPM are a vital part of Philabundance’s Over 700 high school students at the Esperanza Academy ability to provide access to nutritious food. “PWPM gives 9.7 Charter School in the inner city neighborhood of Hunting Park, percent of our overall pounds and 29 percent of our produce for Philadelphia, received improved access to fresh fruits and vegeta- donations,” says Clark. “Philabundance sends our truck to the bles this past school year through the generosity of the PWPM. In PWPM five days a week. The PWPM vendors are so generous, they cooperation with the United Fresh Produce Association’s United gave 2.4 million pounds, or more than 1,206 tons, of produce in Fresh Foundation, PWPM donated a salad bar to promote healthy fiscal year 2012.” eating and good nutrition in school lunches. The high school is dedicated to providing quality education that prepares critically thinking, socially capable, spiritually sensitive, and culturally aware young adults who can use English, Spanish, and technology as tools for success.

Individual Contributions In addition to what is contributed collectively at the PWPM, individual businesses also support a number of charities. “Many groups from all over Philly solicit donations for programs serving lower income areas,” says Fadi Abi-Khattar of Klinghoffer Brothers, Inc. “There is a big need for produce among these groups and communities.” Nardella contributes to the Little Sisters of the Poor. Richard Nardella, the company’s CEO, explains, “Our donations help support their work at the Holy Family Home, a facility taking care of the elderly poor.” John Colotti of Colotti & Sons, Inc., donates product to the Variety Club, a nonprofit organization providing programs and One of the PWPM’s biggest recipients is Philabundance, Delaware Valley’s largest hunger relief organization, serving 65,000 people each week in services to special-needs children. nine counties in Pennsylvania and New Jersey. Stea Brothers Inc., contributes to the Eastern Service Workers

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PHILADELPHIA MARKET PROFILE 2013

Richard Nardella Frank Stea, Jr, STEA BROS. and Tom Kovacevich III NARDELLA, INC. Fadi Abi-Khattar, KLINGHOFFER BROS., INC. T.M. KOVACEVICH PHILA., INC.

Association. “This group provides fresh produce to areas that was done by handshake; times were tough, and people worked otherwise would not have access to it,” says Frank Stea Jr. together to get through tough times. Lending a helping hand to In addition to product donations to various charities, T.M. the less fortunate is part of that legacy.” Kovacevich also gives back by supporting young artists through PWPM’s DiCrecchio states, “The contributions are important mural painting activities in its warehouse. “Nothing is more for many reasons, most notably, to increase the awareness, expo- satisfying and nurturing to the soul than giving back,” says the sure, and benefits of eating a well rounded, healthy diet that general manager, Tom Kovacevich III. “This is a core value we includes fresh fruit and vegetables. These organizations are deeply strive to instill.” involved in communities that lack suitable access to fresh produce. Several companies are recognized as contributing signifi- We are in a unique position to provide access for individuals and cantly to Philabundance. “We regularly have PWPM vendors on families.” our year end Top 20 Donors list,” reports Clark. “Our 2011 Contributions provide a healthy alternative for many who Community report featured Procacci Brothers, Ryeco, LLC, and otherwise would not have these options. “There is a need for fresh Paul Giordano & Sons. Over the years, companies and individ- produce in the communities served by these organizations,” says uals at PWPM have not only generously given produce but they John Vena, president of John Vena Inc. “The people in these areas have also partnered with us in other ways. From deferring trucks should have access to fresh fruits and vegetables regardless of their with distressed product our way to inviting us to Market events, situation. We can help.” they have shown their support for our mission to end hunger.” “Fresh fruits and vegetables are vital in a well balanced diet, and “We personally support Philabundance in a very large way,” they are usually the first things cut from the grocery list when reports Mark Levin, CEO of M. Levin & Co. “We also donate money gets tight,” says Philabundance’s Clark. “The high quality produce to every marathon run there is in the tri-state area.” donations we get from the PWPM allow us to provide the people In addition to the long-standing relationships with local food we serve with healthy, fresh fruits and veggies they would other- banks, such as Philabundance, Procacci Brothers developed part- wise lack.” nerships to promote healthy eating to children living in Marty Roth, vice president of Coosemans, agrees, “Many of underprivileged areas. “One example is our partnership with a these individuals wouldn’t have access to fresh fruits and vegetables local nonprofit called Shared Ground,” says Kevin Delaney, without our donations.” director of marketing for Procacci. “This organization teaches Charitable produce contributions also help promote a healthy children how to grow their own fruits and vegetables, and then lifestyle. “Donating to runs and walks helps expose people to shows them how to cook and incorporate fruits and vegetables eating produce,” says Tracie Levin, general manager of M. Levin. in healthy meals.” “Instead of giving them a granola or candy bar when they cross the finish line, it’s much better to give them a banana.” Motivation “Produce contributions to food banks affect childhood obesity For the PWPM merchants, giving back is foundational to their and health issues,” says Todd Penza of Pinto Brothers. “Our dona- business. “It’s something that has been instilled for generations,” tions can help not just feed people but increase access to healthy says Levin. “When my grandfather started this business, everything foods and affect future eating habits.” pb

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PHILADELPHIA FOODSERVICE PROFILE

Le Virtù Celebrates ‘The Virtues’ of Produce

PHOTOS COURTESY OF LE VIRTÙ

Centuries-old traditions bring produce flavors to forefront. BY JODEAN ROBBINS

n a quiet street in South Philadelphia, diners can be strengthened relationships with producers, and new inspirations,” transported to Italy’s wildest and most unspoiled says Cicala. “We remain dedicated to showcasing all this area of region of Abruzzo. Restaurant Le Virtù is one of a few Italy has to offer.” restaurants in America dedicated to the culinary Le Virtù also hosts Abruzzese vintners, musicians and other traditions of a specific region in Italy and is one of artists in Philadelphia when they can make the trip. “The Cratil’s the country’s most authentic Italian dining experiences. are very involved with social and charitable groups in Abruzzo,” “The inspiration for Le Virtù (The Virtues) comes from our expe- reports Cicala. “Groups include Let’s Blog Abruzzo as well as Trat- riences at the tables of family, friends and farm restaurants all over turo Magno, which herds sheep through the mountains of Abruzzo Abruzzo,” says executive chef Joe Cicala. “Every dish we prepare twice a year.” Ois rooted in or inspired by Abruzzese culinary tradition, ingredi- ents or philosophy.” Rustic Yet Refined The 60-seat restaurant grosses about $1.8 million in sales Cicala’s rustic yet sophisticated Abruzzo cuisine is founded in annually and transforms to 120 seats in the summer with outdoor produce. “Produce is very important to our menu,” says Cicala. “It patio seating. It is owned by husband and wife team Francis ties in to our cuisine both culturally and economically. We try to Cratil-Cretarola and Cathy Lee, and the kitchen is operated by make fruits and vegetables the star of certain dishes, especially Chef Cicala. Cicala’s wife, Angela Ranalli, serves as Le Virtù’s when they are in season. We also use produce items to accommo- pastry chef. date and accent meats and fish by highlighting the characteristics The entire restaurant, from decor to cuisine, revolves around of its partner on the plate.” representing the Abruzzo region. Cratil’s family is originally from Produce accounts for 75 percent of the menu in the spring, Abruzzo and both the Cratil’s and Cicala’s make frequent trips to summer and fall, and about 50 percent in the winter. The menu Abruzzo to re-immerse themselves in the culture that they’ve varies by season. “We sometimes have minor changes as many as modeled the restaurant after. “We come back with new ideas, three to four times a month — depending on the ingredients,” says

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PHILADELPHIA FOODSERVICE PROFILE

procure through FarmArt (a produce distributor located in Philadelphia, PA) and the PWPM.” Quality and authenticity are the criteria for sourcing seasonal produce. “We look for in-season, organic, pesticide-free, and sustainable items,” says Cicala. “We also work with our farmers to build a stock of indigenous produce from Italy. For example, Green Meadow Farm in Gap, PA, is growing Italian Sulmona red garlic for us as well as a variety of hard-to-find Italian heirloom peppers and bitter greens.” While most of the produce goes into edible applications, the restaurant found a unique use for one produce item. “We use lemon juice for cleaning, disinfecting and Agnolotti alla porchetta polishing our copperware,” reports Cicala. Le Virtù appeals to a broad base of customers. “We see a mix of Center City Cicala. “However, major changes happen Torrone di Ciocolato merges dark choco- young professionals as well as suburban seasonally.” late semifreddo, torrone crumble, salted families frequenting our restaurant,” says There is ample use of produce caramel sauce and whipped cream. The Cicala. “We also have a lot of customers throughout the menu. The Antipasti Crostata di Mirtilli showcases blueberries in with familial roots in Abruzzo or southern includes a flavorful namesake soup made a flaky butter crust with mascarpone gelato. Italy.” of 49 ingredients including a majority of The passion of those behind Le Virtù vegetables. The Insalata di Rucola features Looking For Authenticity seeps from every corner of the restaurant mixed heirloom arugula and sliced Bartlett The quality and authenticity of the and menu. “Our innovations are inspired by pears dressed with mosto cotto and shaved produce is crucial to the restaurant. “Italian and emerge from an understanding of and Abruzzese pecorino. Charred octopus is cuisine, especially in the South, is mostly respect for tradition,” says Cicala. “We complemented by red onion, potatoes, vegetarian,” explains Cicala. “It’s very rural welcome our guests in the Abruzzese spirit arugula, frisèe and lemon vinaigrette. The there and the economy doesn’t allow much as honored friends who we want to feel at Affettati (an assortment of house-cured of a market for meat, normally it’s a special home. We encourage them to relax, linger meats and antipasti) embraces a savory occasion item. Our philosophy is to find the and savor the experience.” pb selection of grilled artichoke, eggplant, and best produce available and do as little as red and yellow peppers. possible to it — a little oil, garlic, red chili The commitment to produce does not flake, salt and pepper and that’s it — fade in the Primi, or pasta selections. The because that’s how vegetables are treated Risotto di Farro is paired with clams, in southern Italy.” mussels, and Gulf Coast shrimp with The restaurant sources from a variety of roasted tomato, red onion and almond locations. “We source all we can from the pesto. House-made Abruzzese-style ‘terra’ surrounding Philadelphia,” says sausage is complemented by porcini, black Cicala. “We get naturally raised pork from truffle and Navelli saffron. An artisanal tagli- Berks County and our lamb, chicken and atelle creatively uses pistachio pesto. rabbit from Lancaster County. What we The Secondi main plates continue the can’t find locally, we import from Abruzzo produce sideshow. The tender Porchetta — items like artisanal honey and cheeses Le Virtù mingles perfectly with cannellini beans and (some of the rarest in America), L’Aquila 1927 East Passyunk Ave. broccoli rabe. A whole roasted Orata (fish) saffron, extra virgin olive oil for finishing Philadelphia, PA 19148 is served with a lemon-potato purée. dishes, dried pastas and even the flour we Tel: 215.271.5626 Roasted Lancaster County chicken joins red use to make our fresh pasta.” HOURS: onions, potatoes and carrots. Produce purchases average about Monday - Thursday: Ranalli’s desserts (or Dolci) offer the $1,500 per month and also focus on local 5 p.m. - 10 p.m. perfect ending to a gratifying meal. The and seasonal when possible. “We source Friday & Saturday: delicate flavors of the Delizia al Limon from local small farms in Lancaster, Bucks 5 p.m. - 10:30 p.m. Sunday: blend lemon cream and white chocolate County and Southern New Jersey when in 4 p.m. - 9:30 p.m. ganache over a basil shortbread crust with season,” states Cicala. “The items we can’t Tuesday: a garnish of fresh basil. The Semifreddo al source locally, especially in the winter, we BYO night (WINE ONLY)

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PHILADELPHIA RETAIL PROFILE

320 Market Café

PHOTOS COURTESY OF 320 MARKET CAFÉ

Family-owned and -operated market retails produce and café food in an amiable atmosphere. BY JODEAN ROBBINS

he 320 Market Café offers a surprising shopping expe- with produce, we were able to turn the business around.” rience for those entering though its unassuming doors. Although the market’s 3,000 square feet may not be extensive Once inside, one could very well be in a tiny corner from a size standpoint, it moves a substantial volume of produce market in Europe facing a delectable assortment of — close to three quarters of a trailer a week. The store, located cheeses and farm-fresh produce and sniffing the tanta- on South Chester Avenue and Route 320 in Swarthmore, PA, lizing aroma of fresh-baked bread. focuses on quality offerings and frequency of purchase to move Upon entering the store, customers are greeted by an inviting product. “There is so much business in food right now,” says display of large vibrant red strawberries in old-fashioned green Cunicelli. “We get people coming in seven days a week to buy picking cartons. Across from the strawberries is an enticing pres- something. Our customers are looking for home-quality in a Tentation of tomatoes positioned like they were just picked from the convenient setting.” field. The market is bustling with customers excited about the fresh Produce is a major element of the store and contributes about variety of food. 75 percent to overall store sales. “Produce is the lifeblood of our “Our philosophy is to offer high quality, freshly prepared store,” he says. “From retail to prepared foods to value-added, it’s foods,” says co-owner David Cunicelli. “We want our customers a crucial component. We’re unique because of our background to feel comfortable in understanding where the food comes from.” as a produce market. The quality of our produce, both in the retail Cunicelli, who co-owns the business with his brother, Jack, section and in our prepared foods, attracts customers.” came into it unexpectedly more than 20 years ago after gradu- Over the years, Cunicelli increased focus on prepared foods ating college with a major in French. “My father had invested in and value-added. “We’ve always been known for having a small produce market with a friend, and it wasn’t doing too high quality produce items,” he says. “But as a business, we well,” he explains. “I felt the need to come in and help turn the needed to mitigate the risks and losses in retail produce. By business around. The European orientation in my studies helped expanding our value-added business, we’ve been able to me bring a more European approach to the business. Once we capture more sales, make better use of the produce and increase started really focusing on how we could differentiate ourselves our profitability.”

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PHILADELPHIA RETAIL PROFILE

prepared foods or value-added once it hits a certain stage,” he explains. “Having Smart Sourcing time on the shelf is a benefit for us, he Market’s success is largely 20 years,” he states. “Our suppliers are a because it is then in perfect condition to based on sourcing quality product crucial part of our business. We go out of use in our kitchen.” T at fair price points. “Our our way to make sure that we treat them customers look first and foremost for fairly. We cultivated the relationships Wide Customer Range quality,” says co-owner David Cunicelli. that allow us to get exactly what we The store serves a wide demographic of “Our success comes from having the need.” customers. “We have older people, young quality and assortment that our Cunicelli notes that the biggest professionals, and working-class individuals customers expect. We’re unique in how benefit of the PWPM is the expertise of in the neighborhoods surrounding us,” he we source because of our background in the market vendors. “I love going down says. “They all frequent the store, even if for produce combined with our focus on to the market and comparing product,” different purposes. The working-class prepared foods. The way we buy produce he explains. “Even the same item can customers mainly come in for sandwiches is very different.” taste different if it came from a certain or some of the prepared foods. The upper Cunicelli’s buying criteria focuses on area or a specific grower. The PWPM income customers will shop for produce flavor and quality. “There are other gives me the venue to compare items and gourmet cheeses. We try to have a little issues,” he states. “However if the flavor and learn more from those handling the something for everyone.” and quality aren’t there, the rest is unim- product. The knowledge of the operators The Market also provides catering serv- portant. Those main center-plate flavors there is a real asset.” ices. “We cater for a lot of upper income are what we look for both to uphold the He visits the market six days a week, customers who have parties at home,” quality of our retail product and for use enjoying the interaction with various Cunicelli explains. “We also provide in our prepared foods.” market vendors to compare products catering for some of the educational institu- He sources 85 percent of product and learn. “Touching and seeing the tions in the area.” from the Philadelphia Wholesale product you buy is invaluable,” he The Market does provide a little extra Produce Market (PWPM). The rest adds. “It’s not always about availability. incentive to purchase some of the comes from local growers, a few direct Sometimes it’s about seeing the prepared foods by sampling, but overall buying relationships, and a general dynamic aspect of one item versus promotion is not needed much in this distributor. The 320 Market’s produce another or one brand versus another. business model. “We do some signage purchases total about $2 million a year. You can’t receive that knowledge or with usage suggestions but not a lot,” he “We’ve had relationships with local quality results by sitting behind a desk says. “In general, the merchandising itself growers and the PWPM vendors for over e-mailing orders.” pb promotes the products.” Cunicelli and the 320 Market are bullish on the future. “We are just getting A Produce Reputation throughout the store. At the end of the started with what we can do,” he says. The small store’s produce retail section is produce aisle, a 6-foot refrigerated case “There is so much potential in our busi- only about 32 linear feet total but is impec- proudly displays a unique selection of ness model. In six months, what we can cably organized. Close to 100 different Market-made salsas, soups, and salads. A become is going to be amazing!” pb items are displayed market-style. A 16-foot 6-foot refrigerated case near checkout refrigerated case lines one wall boasting a offers a variety of fresh-cut melons, berries vast assortment of fruits and vegetables from and fruit salads. Another 6-foot case on the asparagus to herbs to rambutan. The oppo- other end of the checkout provides a variety site side of the same aisle is lined with 16 of appealing grab-n-go salads complete feet of movable tables showcasing non- with dressings. “One of every three people refrigerated items including potatoes, who come into our store buys a salad,” melons, bananas, and pears. Cunicelli reports. The store’s reputation hinges on quality The layout of the store roughly stays the produce despite the decreased size of the same all year long. “In the produce section, retail section to accommodate more some items will be more prominent 320 Market Café prepared foods. Cunicelli explains, “We depending on seasonality,” says Cunicelli. 713 S. Chester Ave. originally focused our produce department “But overall, our layout is the same year- Swarthmore, PA 19081 around two items large retailers just can’t do round.” well such as: strawberries and tomatoes. We Cunicelli believes that one key element HOURS: became known for having the best straw- to the Market’s success is the combination Monday - Friday: berries and tomatoes, and customers of quality produce with the value-added. 8:30 a.m. - 7 :00 p.m. Saturday: sought us out for those. Our reputation for “We love the lead time that we have since 8:30 a.m. - 6:00 p.m. other items just grew from there.” we can bring in good quality produce for Sunday: There are various value-added sections our retail section and then use it in our 8:30 a.m. - 5:00 p.m.

112 PRODUCE BUSINESS • SEPTEMBER 2013 Philadelphia A2_Ad 8/22/13 11:42 AM Page 1 Philadelphia A1_Ad 8/22/13 11:41 AM Page 1 Transportation_Layout 1 9/18/13 2:31 PM Page 1

About 97 percent of U.S. trucking companies own 20 trucks or less, while 90 percent PHOTO TO LEFT COURTESY OF COOL RUNNINGS LTD. PHOTO TO RIGHT COURTESY OF HENRY LEE. of produce trucking operations Regulations Mount On have five trucks or less. Deregulated Trucking Industry

Trade says regulations are hurting business, increasing costs, affecting service. BY BILL MARTIN

lenty of questions surround the issue of a driver shortage in transportation — especially when it comes to hauling produce. With millions of Americans still unemployed, Phow could a driver shortage even exist? The debate has been going on for decades and stretches to whether owner-operators are on the verge of extinction. There is even talk of railroads being a viable alternative to solving these issues.

The Driver Shortage The location American Trucking Association reports a shortage of roughly 20,000 truck drivers each year and says it is only going to get worse. However, Kenny Lund, vice president of Allen Lund Co. of LaCanada, CA, says the driver shortage is primarily with the larger fleets. “If you have 300 trucks and you have to come up with 300 drivers DATA COURTESY OF AGRICULTURAL MARKETING SERVICE, USDA to fill those seats, you may have a driver shortage,” he states. “But produce transportation is dominated by the owner-operator. An out of work, and you can’t fill a truck driving job?” owner-operator by definition doesn’t have a driver shortage. He is the Plotsky’s great grandparents emigrated from Europe to the U.S., and driver — the owner. He doesn’t have to recruit anyone. I don’t see this lived with their parents until they could make it on their own. He has as a driver shortage; it is whether [owner-operators] can continue to relatives that came to the U.S. from Mexico, worked two jobs at a time, exist in a highly regulated industry.” and provided their kids with an education without any government As a truck broker, Lund uses over 20,000 carriers, mostly owner- help. He believes the primary reason there is a driver shortage is due to operators, while arranging over 200,000 loads a year, with refrigerated excessive government handouts, including too many people receiving freight accounting for 40 to 45 percent of the total. Lund notes that unemployment benefits. 97.2 percent of U.S. trucking companies own 20 trucks or less, while Doug Stoiber is vice president of L&M Transportation Services of 90 percent of produce trucking operations have five trucks or less. Raleigh, NC. He sees a long-term solution to the driver shortage coming “In produce, what people don’t understand is that hauling is with technology, particularly with driverless cars and trucks on the absolutely dominated by the small carriers,” Lund says. roads. “Some states [California, Nevada and Florida] already have a Fred Plotsky, president of Kenosha, WI-based Cool Runnings Ltd., few driverless automobiles on the highways,” he says. ponders, “Why is there a driver shortage when there are millions people “Poor treatment of drivers by too many shippers and brokers does

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DATA COURTESY OF AGRICULTURAL MARKETING SERVICE, USDA

not help the trucking situation,” according to Carrier Safety Administration (FMCSA) that costs of operation for owner-operators. Jimmy DeMatteis, president of Des Moines rate the safety of trucking companies. “At any Lund also remains very vocal over large Truck Brokers of Norwalk, IA. “You have to one time, 35 percent of the trucks are going to carriers “being fine with California Resources treat these drivers like real people; like the valu- be rated as unsafe, no matter how many trucks Board (CARB) rules. The big trucking compa- able people they are,” DeMatteis states. are placed out of service,” says DeMatteis. nies rotate their fleets every five years. It’s the He also believes excessive government rules To compound matters for the produce owner-operators who are buying the fleets’ used and regulations are harming the trucking industry, Lund from Allen Lund Co. says it trucks. So the large carriers are fine with the industry. Specifically, he cites the new hours-of- seems the bigger truck lines are doing every- regulations that say anything seven years and service rules recently implemented that further thing they can to make it tougher on older is no longer acceptable in California.” limit the driving hours. He also says that “jobs owner-operators. He lists examples such as big One truck owner, Henry Lee of Ellen- are destroyed in this supposedly deregulated carrier support of CSA-2010, hours-of-service wood, GA, backs Lund’s accusations. Lee trucking industry” by the CSA-2010, which is a changes, and pushing for electronic onboard operates a 2001 Peterbilt truck, pulling a 2006 set of rules administered by the Federal Motor records (EOBRs) — all of which add to the refrigerated trailer.

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“I can’t legally truck in California after the turn-arounds for additional loads; therefore, actually been somewhat lower the past year or end of this year due to the CARB rules,” Lee more drivers and equipment are now needed. two, partly because of lower diesel fuel prices says, noting his trailer will be seven years old Lund supports the notion that owner-oper- and the lack of bumper produce crops in and require expensive updating to comply ator service is also affected by excessive rules California on most items. (See 10-year chart with CARB. and regulations. “Owner-operators dominate on produce rates.) Yet, any conversation To replace the motor on his trailer’s SB-310 produce hauling on cross-country trips. The about added costs soon turns to government refrigeration unit will cost about $10,000, even carriers that haul for us have 25 trucks at most. interference in the marketplace. though the unit still remains in good working We work with over 9,000 refrigerated carriers, Goldstein at Genpro says rates have to go condition. Lee recently spent $14,000 over- and they are mostly guys with five trucks or up to counter the increasing costs of opera- hauling his Caterpillar C15 diesel engine. less,” Lund says. tion caused by everything from hours of “I’ve quit going to California. Instead, I’m service, to CARB, to new emission standards running my rig between the Northeast and Produce Trucking Rates for diesel engines. Southeast now,” says Lee who has been trucking The cost of rates on produce loads has Lund contends that California summer since 1997.

Retaining Drivers Stoiber of L&M Transportation points out some trucking companies have a driver turnover rate exceeding 100 percent. “The truck owner can increase the rate per mile that he pays drivers, increase the pay on employee benefits, and increase the amount invested in driver training,” says Stoiber. Yet, he says, this can be difficult because of the increasing cost of benefits — such as health care for employees. Plotsky at Cool Runnings says he does not see an answer to the high driver turnover rates “as drivers just go someplace else to drive. It’s like a carousel.” Lund notes the driver shortage would be even worse if the California bureaucratic machine wasn’t deterring so many jobs from the state. He says less produce is being grown in California as more farmers shift operations to Mexico. “South of the border is growing better produce than ever, the Mexican infra- structure is improving, and there is less bureaucracy,” says Lund. Lund believes that California is the greatest production area in the world, and the govern- ment is killing it with excessive regulations.

Trucking Services When trucking services are adversely affected, the blame tends to land on the govern- ment’s repressive rules and regulations. Kerry Byrne, executive vice president of Total Quality Logistics LLC (TQL) based in Cincinnati, OH, believes issues faced by the trucking industry adversely affect trucking services. “The ability of drivers to adapt to and work within confines imposed by industry and regulatory agencies is one of the most important factors driving transportation trends,” Byrne says. Rob Goldstein, president of Genpro Inc. in Rutherford, NJ, agrees, stating that the newly implemented hours-of-service rules contribute to the driver shortage. This is because drivers work fewer hours, and their trucks make fewer

SEPTEMBER 2013 • PRODUCE BUSINESS 117 Transportation_Layout 1 9/18/13 2:31 PM Page 4

PRODUCE TRUCKING AND ITS EFFORTS TO BECOME MORE ‘GREEN’ fforts to make long-haul trucking tary program that has been very initiative isn’t necessarily in agreement more environmentally friendly is successful. But what California did was with their corporate green initiative.” Emaking progress, but not without make it (CARB) mandatory on 53-foot Lund cites another example where Side Note Side cost. trailers, dry and refrigerated. We don’t sustainability could be improved. He Jimmy DeMatteis, president of Des even think it [CARB] is legal, because you explains that each state has a different Moines Truck Brokers of Norwalk, IA, calls have to go through a rulemaking process fuel blend, “which is killing the refineries” the California Resources Board’s (CARB) on regulations like that.” who have to shut down operations to rules for the environment “ludicrous” Fred Plotsky, president of Kenosha, WI- make the bi-annual fuel blend changes. because of the expenses involved for based Cool Runnings Ltd., says he has Lund says that a national fuel blend those who have to comply. done business with a couple of customers is needed. DeMatteis is a part of SmartWay, which requiring his company to be a part of Doug Stoiber, vice president of L&M launched in 2004 as a voluntary program SmartWay. Yet at the same time, they are Transportation Services of Raleigh, NC, is administered by the Environmental Protec-telling Cool Runnings to “watch your seeing more trucks switch from diesel fuel tion Agency to improve the environment carbon footprint.” For example, Cool to liquid natural gas to cut fuel costs, and reduce fuel consumption. Runnings was required to send a truck 100 helping the environment and sustain- However, Kenny Lund, vice president ofmiles out of route to pick up nine pack- ability. “Truck manufacturers are standing Allen Lund Co. of LaCanada, CA, says, ages of fruit because the customer wanted in line to buy the new 12 liter Cummins “The California CARB program has to save $3 a box buying direct. natural gas engine. This is the direction hijacked the SmartWay program; we think “What does that do for your carbon people are going,” Stoiber observes. pb that it is a disaster. SmartWay is a volun- footprint?” Plotsky asks. “Their buying

produce rates are lower this year because there means that the truck shortages there are due to says there were a few $10,000 gross freight rates is less volume with most fruits and vegetables. more growing operations foregoing California from California to Boston, but not many, and By contrast, he says truck shortages are more and Texas to operate in Mexico, pushing more those haven’t occurred since around Memorial common in south Texas. Produce acreage in the Mexican produce volume into south Texas. Day. He notes that there have been loads from Lower Rio Grande Valley is actually down. This DeMatteis of Des Moines Truck Brokers California to his home state of Iowa grossing $4,500. However, people don’t mention the $1,800 to $1,900 being paid in the winter. TQL’s Byrne says that shippers who provide “maximum flexibility and transparency to their transportation partners can moderate increasing truck rates. This communication concerns increasing lead times, expressing any potential cost-incurring contingencies in advance of the shipment, as well as building and adhering to an industry-competitive acces- sorial policy.”

Is Rail An Alternative? Railroads hauling produce are a viable alter- native to trucks, but only if you are in certain high traffic lanes, hauling specific produce items, and have a minimum of pickups in a small geographic location. Lund points out that only 1 to 2 percent of produce is transported by rail. It would require billions of dollars in equipment and tracks to become a viable option. “Most produce items don’t like rail,” Lund says. “The rails are more adept at handling perishables such as dairy and wine. The rails don’t like produce and they don’t like the claims that come with it.” Stoiber of L&M Transportation says it still takes trucks to deliver produce to the rails; once at the destination, trucks are necessary to deliver cargo to the distribution centers. pb

118 PRODUCE BUSINESS • SEPTEMBER 2013 We Are Many F-P_Ad 8/22/13 5:52 PM Page 1 Tropicals_Layout 1 9/17/13 4:52 PM Page 1

FOODSERVICE MARKETING Tropicals Splash Into Restaurant Menus

Diners no longer need to jet to the islands for a taste of the tropics. BY CAROL M. BAREUTHER

Taking into account the increase in Hispanic and Asian populations in the U.S., chefs are adding PHOTO COURTESY OF PERKINS & MARIE CALLENDER’S tropical flavors to popular dishes.

ropical fruits and roots are Coral Gables, FL. “Fusion restaurants want to service applications. appearing on restaurant menus attract different consumers by being creative Cottle says, “There’s definitely more nationwide, everything from fast and blending different cultures. Taking into thought process and management that goes Tfood eateries to fine dining estab- account the increase in Hispanic and Asian into ordering tropicals. However, it’s a big plus lishments. What’s more, 55 percent populations in the U.S., chefs are innovative that many are becoming available year-round.” of more than 1,800 chefs who participated in and adding tropical flavors to popular dishes the Washington, D.C.-headquartered to invite diners of all cultures into their estab- 10 Hot Tropicals National Restaurant Association’s What’s Hot lishments. Miss Lily’s, Casa, Macondo, and “Tropicals such as bananas and pineapple 2013 Culinary Forecast, ranked exotic fruits Agozar are examples of trendy New York City are staples on foodservice menus,” says Richard (such as dragon fruit and rambutan), as ‘hot’ restaurants that have integrated tropicals such Perez, sales associate at M&M Tropicals, Inc., and another 12 percent named them ‘peren- as coconut, yuca, plantains, and mango into in Miami, FL. “Now, we’re seeing an expansion nial favorites.’ their dishes.” of everything from mangoes and papayas to Seakyeong Kim, executive chef at Charlie “Tropicals also tie in nicely with many of rambutan and carambola.” Palmer at Bloomingdale’s, in Costa Mesa, CA, today’s chef’s desire to build menus around MANGOS. “Fresh mango continues to (one of 12 restaurants operated by the New fresh ingredients,” explains Jim Cottle, grow on foodservice menus due to its great York City-headquartered Charlie Palmer manager for food and beverage and research taste, versatility and nutrition profile,” says Group) says, “Customers see tropical fruits as and development for Mission Viejo, CA-head- Megan McKenna, director of marketing for the something catchy; something different.” quartered Perkins & Marie Callender’s, LLC, a Orlando, FL-headquartered National Mango The changing ethnic demographics in the 75-plus chain doing business as Marie Board (NMB). “Mangos are used during any U.S. plus the typical American customer’s Callender’s Restaurant & Bakery. “That’s why meal: smoothies for breakfast, sandwiches and craving for authentic cultural dishes are two we featured fresh mangos in a Citrus Mango salads for lunch, and in a salsa or chutney factors placing tropicals on the menu. Chicken Salad as a limited time offer (LTO) complementing a protein for dinner.” “There’s a boom in fusion restaurants that promotion this past spring. It’s something that The NMB’s foodservice public relations integrate tropical products into different added excitement to the everyday menu.” and marketing program assists chefs in incor- dishes,” says Marion Tabard, director of Seasonal availability and offshore sourcing porating fresh mangos on the menu. El Pollo marketing for the Turbana Corporation, in are two challenges of using tropicals in food- Loco, a 395-unit fast food chain based in Costa

120 PRODUCE BUSINESS • SEPTEMBER 2013 Tropicals_Layout 1 9/17/13 4:53 PM Page 2

Mesa, CA, featured a Citrus Mango Tostada culinary support, says Morrison’s worked with become available.” Salad as a limited time offer (LTO) in March fresh mangos for a couple of years. “It started Morrison’s Seidl prefers to source fresh and April. Over 16,000 college students at the when we ran a fresh mango flat bread topping mangos because, as he explains, “at all stages of University of Massachusetts taste-sampled as an LTO. Mango in the latest promotion, the ripeness, there is an application which offers fresh mangos in 16 recipes during a week-long po boy sandwich, puts a flavor twist on the versatility. When it’s firm, it’s easier to shred. promotion in April. Offerings included Mango traditional. Customers loved it. We sold the When it’s closer to ripe, you can easily dice and Lassi, Shrimp and Mango Tacos, Orange Soy heck out of it,” Seidl says. julienne it to add to salads. When it’s really ripe, Pork Tenderloin with Mango Salsa, Grilled there are smoothies.” Tandoori-style Chicken with Mangoes and PAPAYAS. “Papaya is showing up more Thai Mango Salad. In an LTO that ran from “Mango in the latest and more in Central and South American April through June, Marie Callender’s Restau- promotion, the po boy restaurant dishes frequently paired with fish rant & Bakery featured Citrus Mango Chicken and poultry,” explains Lara Grossman, sales Salad on the menu. sandwich, puts a flavor and marketing manager for FoodSource, a “We advertised the Citrus Mango Chicken twist on the tradi- C.H. Robinson Company based in Monterey, Salad on a featured poster patrons saw when CA. “Papaya, along with mango, continues to they walked in, on the menu handed to them tional. We sold the make frequent appearances in salads. Similar with specials, and in server mentions,” explains heck out of it.” to mango, the sweetness of papaya is Cottle from Marie Callender’s. “It was so — Curt Seidle, commonly paired with spicy flavors to provide popular that we’ve put grilled salmon with fresh Morrison Management Specialists a full-bodied taste experience.” strawberry mango salsa on our special Straw- Slow-braised pork belly topped with a berry Heaven menu running this summer.” honey tamarind glaze and paired with charred Last December, Atlanta, GA-headquartered “Tommy Akins, Kent and Keitt varieties are scallion, hearts of palm and compressed Morrison Management Specialists ran a popular with chefs due to their texture, flavor papaya is offered as a first course at Charlie Voodoo Pork Po Boy Sandwich with Sweet and year-round availability, although volumes Palmer at Bloomingdale’s. “We buy whole Potato Fries and Spicy Mango Sauce in its are highest in the summer,” explains Ron papaya,” explains Chef Kim, “It lasts longer that healthcare division, which provides food and Cohen, vice president of sales for the Vision way and we can control the quality better. To dining services to more than 600 hospitals. Import Group, LLC, in River Edge, NJ. “In the make the compressed papaya, we chop it, mix Curt Seidl, Morrison’s vice president of next five years, I think we’ll see more varieties it with limejuice, salt and pepper and put it in

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FOODSERVICE MARKETING

TROPICAL TIPS marketing director at New Limeco, LLC, in Princeton, FL. ropicals aren’t cosmetically National Mango Board (NMB) offers Robert Schueller, director of public rela- “ perfect produce like apples and buyers and chefs tips on how to source tions for Vernon, CA-headquartered Toranges,” says Mary Ostlund, mangos, as well as basic information on Melissa’s/World Variety Produce, Inc., says, director of marketing at Brooks Tropicals handling and cooking with “Sweet young coconuts are sold 80 percent of Inc., in Homestead, FL. “Sometimes the fresh mangos. “We also provide mango the time for their water. Because coconut water uglier the fruit, the sweeter the taste. menu development support for inter- is good for hydration, it’s now sold at sports Plus, tropicals don’t like the cold. Cool ested chains and inspiration by sharing stadiums already open and with a straw. Some temperatures are best for storage.” existing recipes chefs use in other chefs make smoothies with the water, or use “Many chefs expect mangos to be restaurants,” says the NMB’s director of the soft pudding-like meat inside in fruit salads ripe and ready-to-eat when they arrive,” marketing, Megan McKenna. and desserts.” explains Charlie Eagle, vice president of “The waitstaff needs to be educated Unlike the hard brown coconut, sweet business development at Southern on exotic fruits integrated to young coconuts are perishable and must be Specialties, headquartered in Pompano menu dishes,” recommends Marion refrigerated. They are imported year-round Beach, FL. “Foodservice distributors Tabard, director of marketing for the from Thailand, with largest volumes July should account for this in their hold Turbana Corporation, in Coral Gables, through January. time. Some restaurants are not FL. “This is so that when diners ask CHERIMOYA. Also called “custard apple,” prepared to hold and ripen fruit. If they questions, the staff members can this fruit, with its green-shingled skin and its receive rock hard mangos, they may be answer intelligently and encourage U.S. white creamy flesh, is used by Australian chefs hesitant to re-order.” diners to try different tropical fruits in sweet dishes such as cheesecake and The Orlando, FL-headquartered or vegetables.” pb smoothies as well as savory Thai curries. Melissa’s Schueller says, “It’s not a fruit you would present; it needs to be worked with and a Cryovac bag to marinate. The papaya offers a than its interior flesh,” explains Karen Caplan, there’s a learning curve to it — similar to refreshing contrast to fattier meat.” chief executive officer and president of Frieda’s, dragon fruit.” “Formosa and Golden are the two most Inc., in Los Alamitos, CA. “It’s a beautiful Cherimoya is available out of California popular varieties of papaya in foodservice purple on the outside, while inside the from December to May, and imported from operations,” says Lorenz Hartmann de Barros, magenta, pink or white flesh has small black Chile June through November. director of sales at HLB Specialties, LLC, in seeds like a kiwi, but with a mild kiwi flavor.” PLANTAIN. “The cooking banana has Pompano Beach, FL. “The Formosa is large, Mary Ostlund, director of marketing at moved beyond Latin restaurants,” explains about 3 to 4 pounds. Chefs like it because it has Brooks Tropicals Inc., in Homestead, FL, adds, Turbana’s Tabard. “You now see sushi with all a lot of meat. Peeled, seeded and cut into “Chefs are using dragon fruit as a topping for kind of tropical toppings, such as avocados, chunks, it can be used in sweet or savory salads, either cubed and tossed on greens or sweet plantain and bananas. Yuca and plan- dishes. One of the benefits of the Formosa is pureed into a dressing, and made into sorbets.” tain chips are often used as decoration in that it can be eaten when partially yellow or Dragon fruit is obtainable domestically fine-dining.” half-ripe; the Maradol must be all yellow, so from California and Florida during the Plantains can be sourced year-round. there’s less flexibility. The Golden (also called summer. In the winter, irradiated dragon fruit YUCA. In a survey conducted by the Sunrise) is small or about the size of a mango. is imported from Vietnam. National Restaurant Association, some 74 Some chefs will cut it in half, seed and serve STAR FRUIT. Charlie Palmer’s Chef Kim percent of chefs labeled “gluten-free cuisine” as with a scoop of fruit, chicken or seafood salad.” makes sorbet from star fruit, also called caram- a popular trend. Now, Turbana’s Tabard says, Papaya adds bright orange color to dishes. bola. Similarly, with a savory slant, Paula “Tropical roots, such as yuca, are being incor- The fruit also contains papain, a natural meat DaSilva, executive chef at Miami Beach’s 1500° porated into gluten-free diets. For example, tenderizer. The Formosa is imported year- (located in the Eden Roc hotel), serves buttery Pica Pica, in San Francisco serves gluten-free round from Mexico and Guatemala, while the scallops on a bed of parsnip puree topped with yuca fries.” Golden is available year-round out of Brazil carambola sauce. Turbana expanded its product line from and Jamaica. “One of the biggest selling points for chefs bananas to tropicals including yuca as well as RAMBUTAN. The eye-catching contrast of is that when you cut the fruit vertically, it chayote, yellow yams and malanga last fall. The the spiky red shell with exposed white grape- creates star shapes with little labor,” says company provides sourcing, logistical assis- like flesh makes rambutan popular as a Charlie Eagle, vice president of business devel- tance and cost-savings to deliveries when garnish, in fruit baskets or on fruit platters. opment at Southern Specialties, headquartered tropicals are tied into banana deliveries. HLB Specialties’ Hartmann de Barros says in Pompano Beach, FL. “It’s used for its eye- SUGAR CANE. Mojitos at Ruby Tuesday’s, Rambutan is available from May to November. appeal on a plate or rim of a cocktail. Star fruit an 850-unit chain with locations in the U.S. “We source from Guatemala, which is the stands up well to grilling; the heat caramelizes and over a dozen foreign countries, are served longest source of any one location. However, it its sugars.” with sugar cane swizzle sticks. The sticks are also comes in from Mexico, Honduras, Costa Star fruit is available from July through the made from peeled, sliced sugar cane stalks. Rica and Asia.” beginning of April. “For a small monetary investment, this DRAGON FRUIT. “A number of chefs use COCONUT. “Coconut water is a hot trend addition makes the menu look upper dragon fruit for its exterior appearance rather now,” says Doria Potts-Blonder, sales and echelon,” says Frieda’s Caplan. pb

122 PRODUCE BUSINESS • SEPTEMBER 2013 Cover Aisle by Aisle_Layout 1 9/18/13 2:26 PM Page 1

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SEPTEMBER 2013 • PRODUCE BUSINESS 123 DOLE Fruit.qxd_Ad 9/4/13 12:05 PM Page 1 PMA Aisle by Aisle_Page1.qxd 9/18/13 4:04 PM Page 1

PMA AISLE-BY-AISLE BOOTH REVIEW

Booth #156 Booth #166 Booth #235 Booth #247 PAKTRU VERBRUGGEN PALLETIZING MARIANI NUT COMPANY SAGE FRUIT COMPANY Richmond, VA SOLUTIONS Winters, CA Yakima, WA PakTru is a fully owned subsidiary of SSI Pasco, WA A leading California grower and suppli- Sage Fruit is a Grower/Packer/Shipper of AISLE 100 Packaging, a provider of coding and Our target is to provide our customers AISLE 200 er of premium nuts, Mariani Nut Com- High Quality Washington State Tree Fruit marking solutions for over 40 years. Pro- with a tool for the ideal presentation of pany offers new, clear retail packaging specializing in high quality apples, cher- viding superior customer service and their products to their clients. Experi- options along with a high level of cus- ries and pears. Ask us about our award- exceptional solutions-driven value to ence, innovation and teamwork form the tomer service focusing on long-term winning Marketing programs. their many clients. More information can basis of our communication with cus- partnerships. be found at pakTru.com and tomers and potential customers. ssipackging.com.

Booth #303 Booth #311 Booth #337 Booth #403 MATTHEWS SWEET POTATO COLORFUL HARVEST MARIE’S CRUNCH PAK FARM Salinas, CA Brea, CA Cashmere, WA Wynne, AR Colorful Harvest grows premium berries Marie’s®, the leader in Refrigerated Pro- Visit the slice apple specialist Crunch AISLE 400 AISLE 300 Matthews Sweet Potato Farm was estab- and heirloom style produce including duce Dressing nationally, uses the finest Pak for the freshest in slice apple prod- lished in 1885 in Wynne, Arkansas. We Strawberries, Blueberries, Blackberries, ingredients to create our great-tasting ucts including award-winning Dipper Z™, are a sixth generation family-owned and - Melons, Rainbow Crunch® Carrots, dressings with the homemade flavor your FlavorZ™ and Salad KitZ™ and sample operated farm. Three generations are Orange, Purple, Green & White Cauli- customers love. Marie’s makes the ordi- Chef Amanda’s delicious recipes. working on the farm flower, Ruby Jewel® nary extraordinary! today. For 2013 we Sweet Red Corn, farm 800 acres of sweet and seasonal veg- potatoes, 700 acres soy- etables. Colorful- beans, with 160 acres in Harvest.com rice. We pack & ship sweet potatoes 12 months of the year.

Booth #519 Booth #519 Booth #541 Booth #549 JACOBS, MALCOLM & BURTT WELL•PICT BERRIES HBF INTERNATIONAL HARSTER GREENHOUSES INC. San Ramon, CA Watsonville, CA McMinnville, OR West Flamborough, ON

AISLE 500 Since 1888, Well•Pict ships premium, proprietary HBF Interna- Harster Greenhouses Inc. is the earth Jacobs, Malcolm strawberries 12 months of the year, pro- tional sells a friendly grower of trendy and beautifully & Burtt (JMB) has viding a high volume of great tasting wide variety of functional novelty houseplants. New this provided the berries for seamless transition between the freshest year, Crispy Wave Ferns are the “Biologi- highest quality the seasons. We also offer an extended berries under cal Air Purifier.” Highly effective at clean- produce. From season for our luscious and popular pro- the Hurst’s ing the air, these curvy sculpted ferns our specialty asparagus to our variety of prietary raspberries, available through Berry Farm absorb toxins, smoke, other commodities, JMB consistently November. brand. HBF offers premium berries all and odours. Visit our delivers the quality and service that have year round, including blueberries, black- booth to see our 100 kept us in business for over 120 years. berries, and specialty varieties such as percent pesticide-free cranberries, raspberries, and red currants. collection. Harster- greenhouses.com

Booth #563 Booth #567 Booth #575 Booth #583 ALLEN ASSOCIATES BALLOONS DYNAMIC SYSTEMS INC. DEVIK INTERNATIONAL, INC. HAMPSHIRE PAPER Rochester, NY Austin, TX White Plains, NY Milford, NH Balloon Programs Dynamic Systems now has a scale inter- Devik International, Inc. is a leading Hampshire Paper is a domestic manufac- Reduce Helium Consumption 20% face for their SIMBA Automated Tracking importer and distributor of Medjoul, turer of fine decorative packaging prod- • Guaranteed Sale System. Growers, Packers, Shippers label Halawi, Deglet Nour, Hayani and Barhi ucts for the Horticultural, Wholesale Flo- • Vendor Co-Op Shrink Reduction and track their products from field to dates from Israel, South Africa and The ral & Gift Packaging industry. Come visit • 75% Labor Reduction customer with real-time inventory, GS-1 Palestinian Authority. Please visit us on our booth to meet us and discuss the • Obsolete Inventory Buy Back labeling and automatic van loading. The Facebook.com/DevikDelilahDates. specific needs of your business. We look • Custom Catalog scale interface solves the problem of how forward to meeting you. • Nation Wide Helium to record real weights Delivery and print them on GS-1 barcode labels.

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PMA AISLE-BY-AISLE BOOTH REVIEW

Booth #585 Booth #650 Booth #684 Booth #713 HEAT AND CONTROL, INC. FIRSTFRUITS MARKETING PLEXPACK CURRY & COMPANY Hayward, CA Yakima, WA Toronto, ON Brooks, OR See the latest technology for weighing, Our growers have a strong passion for Plexpack, manufacturer of Emplex Bag Expect the Best!™ from our 52 AISLE 600 conveying, blending, tray sealing, and producing high quality fruit with a Sealing Machines, is proud to be display- AISLE 700 weeks/year blueberry, sweet onion and foreign object detection in Heat and greater purpose. We offer more than just ing the Emplex machine at PMA 2013: red/white/yellow onion programs. Our Control booth 585 at the PMA Fresh apple. FirstFruits Marketing is your part- Emplex MPS 6110 Bag/Pouch Sealer with seasonal Vidalia Sweet Carrots and deli- Summit. ner for good. a new INK JET printer that can apply a cious West Coast blackberries create batch, lot or date code on the sealed bags excitement in your stores. or pouches.

Booth #742 Booth #903 Booth #975 Booth #1019 POTTER INC. KWIK LOK CORPORATION RUBY FRESH IPPOLITO FRUIT & Bryan, OH Yakima, WA Firebaugh, CA PRODUCE, LTD. Visit Potter Inc. to see our fresh new Kwik Lok’s New 901 AutoPrinter utilizes Ruby Fresh pomegranate arils are U.S. Burlington, ON AISLE 900 spring upgrade products. Colorful the AutoPilot built by Squid Ink Manufac- grown and available year-round. Try AISLE 1000 Visit North America’s upgrade kits, beautiful hand-tied bows, turing, Inc. The 901 AutoPrint is a pro- them straight from the 8 ounce tray pack, largest Brussels sprouts and corsage backings that are perfect for grammable industrial ink jet system that Salad Jewels 3.5 ounce, 7 ounce topping grower/shipper, and let’s any occasion, make Potter Inc. the leader prints on the Kwik Lok Bag Closure. This kits, or our new mini-serve Aril Cups! talk about getting your company on a in floral upgrade products, for over 35 printer can be year-round Brussels sprout program! We years. field installed on also offer a full line of vegetables, includ- existing Kwik Lok ing artichokes (in a unique microwave- Bag Closing able pack), iceberg, broccoli, cauliflower, Machines. romaine hearts, green onions, leaf let- tuces and specialty vegetables.

Booth #1019 Booth #1019 Booth #1019 Booth #1112 GROWER-SHIPPER MANN PACKING COMPANY STEINBECK COUNTRY ROYAL ROSE LLC ASSOCIATION OF Salinas, CA PRODUCE Salinas, CA CENTRAL CALIFORNIA Visit the Grower Shipper Association Salinas, CA Royal Rose LLC is AISLE 1100 Salinas, CA Pavilion where Mann Packing is featuring Steinbeck Country Produce is a third-gen- proud to announce The Grower-Shipper Association of Cen- two new chopped salad kits: Asian Citrus eration family-owned grower/packer/ship- that Royal Rose Radic- tral California’s Pavilion is your one-stop- Crunch and Cantina Crunch as well as per of fresh fruits and vegetables. Operat- chio is officially certified as a superfood shop for fresh produce. Stop by to see: redesigned Veggie Mac-n-Cheese. ed by the Huntington Family, and head- by SCS Laboratories. High in antioxi- ASA Organics, Church quartered in Salinas, California, Steinbeck dants, vitamins, minerals, and fiber Royal Brothers, GreenGate Country Produce proudly markets premi- Rose Radicchio and Treviso are nutrition- Fresh, Ippolito, J. Mar- um vegetables and strawberries under the al powerhouses. Stop by our booth in chini, Mann Packing, “Nature’s Reward” label. Stop by our NOLA to see superfood Royal Rose The Nunes Company, booth and check out our awesome video Radicchio, and discuss your retail and & Steinbeck Country mini-series. foodservice needs. Produce.

Booth #1162 Booth #1205 Booth #1219 Booth #1229 GENERAL MILLS, INC GLORIANN DUDA FARM FRESH FOODS IDAHO POTATO Minneapolis, MN FARMS Oviedo, FL COMMISSION Introducing a great new product from Tracy, CA Looking for healthy solutions to your Eagle, ID

General Mills, Inc. The In-Store Fresh AISLE 1200 GloriAnn Farms customers’ everyday shopping chal- The Idaho Potato Commission is the mar- Team will be showcasing their new fresh super sweet lenges? Visit Duda Farm Fresh Foods to keting arm for the entire Idaho potato Combo Kit. This innovated solution for corn is offered learn more about how our fresh product industry. The organization created the making fresh yogurt parfaits in the pro- year-round in retail and food- offerings address the evolving needs of well-known “Grown in Idaho®” seal, duce department includes: Yoplait service packs. Family-owned and -operat- today’s busy consumers. which symbolizes quality known around Yogurt, Nature Valley Granola, 40 cups, ed, GloriAnn grows throughout Califor- the world. inserts, lids and labels. Just add fresh fruit. nia and Mexico to provide the freshest corn every day of the year.

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PMA AISLE-BY-AISLE BOOTH REVIEW

Booth #1261 Booth #1300 Booth #1304 Booth #1309 DULCINEA FARMS SILVER CREEK SOFTWARE NATURE’S EATS SETTON INTERNATIONAL Ladera Ranch, CA Boise, ID Boerne, TX FOODS At Dulcinea Farms our commitment is to Visual produce accounting software for Trusted quality and innovation provide Commack, NY

deliver only the highest quality, best tast- AISLE 1300 wholesalers, distributors, packers, brokers Nature’s Eats customers a fresh and dis- Producer of “America’s Best Tasting Pista- ing fruit. We are passionate about provid- and growers offers customer menus, con- tinct product every day. As a SQF certi- chios,” Setton Farms offers a full line of ing the freshest produce and flavor con- tract pricing, lot control, route account- fied business, we create higher standards California pistachios and proudly fea- sumers love year-round. ing, landed cost, EDI, online ordering, and for packaging of fresh foods. Delivering tures 100 percent All Natural Pistachio electronic signature capture Delivery over 150 varieties of natural nuts, trail Chewy Bites with whole pistachios, cran- Tracking. Silvercreek.com/208-388-4555 mixes and dried fruits, our customizable berries and agave nectar. produce rack display generates multiple merchandising opportunities.

Booth #1315 Booth #1321 Booth #1329 Booth #1363 MAYWOOD FARMS THE OPPENHEIMER GROUP NEW YORK APPLE DEL MONTE Corning, CA Coquitlam, BC ASSOCIATION, INC. FRESH PRODUCE Victor, NY We at Maywood Farms have pride in Along with our partner, Total Produce, Coral Gables, FL producing quality CCOF certified fresh and our combined network of global New York Apple Association represents Fresh Del Monte offers retail- organic figs. For over 30 years, we’ve growers, we bring you the freshest in fla- NY apple growers helping to grow sales ers and foodservice operators an array of grown Black Mission, Brown Turkey, and vors and packaging innovations. for consumer innovative solutions to address the Kadota figs that are packed and cooled favorites such as changing tastes and lifestyle needs of onsite. Please come by McIntosh, Empire, today’s consumers. Our extensive distrib- our booth to sam- Gala, Honeycrisp, ution network allows just-in-time deliver- ple our quality figs. Cortland, Fuji and ies of our premium quality fresh products We look forward many more! to your doorstep. For more information to meeting you. call 800-950-3683 or visit our websites, freshdelmonte.com and fruits.com.

Booth #1375 Booth #1400 Booth # 1402 Booth #1403 SUN PACIFIC HUDSON RIVER FRUIT TORREY FARMS, INC. L&M Pasadena, CA DISTRIBUTORS Elba, NY Raleigh, NC Cuties Clementines Coming Soon! Milton, NY Torrey Farms is a twelfth generation fami- L&M will be high- AISLE 1400 Sun Pacific, exclusive distributor of Cuties Celebrating 50 years Grower/Packer/Shipper ly farm with 11,000 acres in western New lighting local grown Clementines, Air Chief Navel Oranges of Apples from NYC Fourth-Generation York. We grow, pack & ship cabbage, from 12 states. We are also and Ripe & Easy Kiwi, is poised for anoth- Company. cucumbers, squash, green beans, red and excited to be hosting our 50th birthday er record new crop season beginning in yellow onions, white and yellow potatoes, party! The L&M Family of Companies November. and miniature pumpkins. offers a full range of services including farming, packing, logistics, consolidation and sales.

Booth #1404 Booth #1414 Booth # 1429 Booth #1429 NEW YORK SPECIALTY CROPS SCS GLOBAL RENAISSANCE FOOD CALAVO GROWERS, Albany, NY SERVICES GROUP, LLC INC./CALAVO FOODS The NYS Department of Agriculture and Emeryville, CA Rancho Cordova, CA Santa Paula, CA Markets is supporting growers, proces- For nearly 30 Renaissance Food Group is a national We’re growing! The first name in avoca- sors, and manufacturers across the state years, SCS Global fresh food company that creates, markets dos continues to grow and offer new by promoting the wide variety of New Services has developed standards and and distributes high quality products for products, technologies and pack sizes. York’s specialty crops including fruits and services supporting growers, producers, consumers via the retail and foodservice Come see what’s growing, fresh and avail- vegetables, dried wholesalers and distributors’ providing channels. able year round! fruits, nuts, and safe, quality produce. As a trusted, inde- more. pendent source for food safety, testing, training and certification, SCS combines rigorous science with outstanding cus- tomer service to ensure the produce is safe, healthy, and flavorful.

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Booth #1429 Booth #1441 Booth #1463 Booth #1619 LIMONEIRA COMPANY TANIMURA & NATURE FRESH FARMS DNE WORLD FRUIT LLC Santa Paula, CA ANTLE Leamington, ON Ft. Pierce, FL Lemons just became tangier and sassier! Salinas, CA Nature Fresh Farms, Leamington, Ontario DNE World Fruit LLC offers year-round Limoneira is introducing its Pink Variegat- The Tanimura & Antle families grow a is 100 percent Canadian owned & oper- citrus of the highest quality to its cus- ed Lemons in new packaging for both full line of field-fresh vegetables including ated with over 130 acres of high-tech AISLE 1600 tomers. Our experience is in growing, retail and foodservice. Please come by Artisan Lettuce, Artisan Romaine, Iceberg, production in peppers tomatoes and packing and marketing citrus from Flori- our booth to see how you can Thrill the Little Gems, Broccoli, Cauliflower and cucumbers. We are a certified green- da, Texas and California as well as Grill and Sink the Pink in the Drink! Romaine. For more information, please house grower and marketer. Visit: nature- importing citrus from countries around visit taproduce.com. fresh.ca/Contact: [email protected] the world. Visit our booth to learn more about our products.

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Booth #1647 Booth #1741 Booth #1929 NATURIPE FARMS LLC SUNLIGHT INTERNATIONAL OCEAN MIST FARMS Estero, FL SALES Castroville, CA Your Total Berry Solution - Naturipe® Delano, CA Innovation is the theme at Farms, is an industry leader in producing Sunlight International has premium Cali- Ocean Mist Farms from healthy and delicious Fresh berries and AISLE 1700 fornia table grapes for all the fall holidays! AISLE 1900 new retail package value added berry products including: We offer a large line of red, green, and options for artichokes Ready To Eat, IQF, Dried Cold Infused, black varietals and a variety of seasonal to new items in the hot Juices, Concentrates, Purées and more. merchandising programs- drop by to Brussels sprouts and cooking Visit us to learn about our new strawber- learn more! spinach categories. Visit the booth and ry and cranberry products! demo Ocean Mist’s new integrated Prod- uct Quality Assurance Microsite —

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debuting at PMA. Booth #2139 Booth #2239 Booth #2107 USA PEARS/PEAR BUREAU MARCO COMPANY DOLE NORTHWEST Fort Worth, TX Westlake Village, CA Milwaukie, OR Since 1984, Marco Company has provid- AISLE 2200 AISLE 2100 Dole Food Company, Inc., is the world’s The Pear Bureau knows pears. From cate- ed the grocery industry with innovative largest producer and marketer of high- gory analysis to developing strategic pro- and cost-effective merchandising solu- quality fresh fruit and fresh vegetables. motional plans, we will help you build a tions. Capabilities include wood, metal Dole markets a growing line of pack- more profitable pear category. and plastic manufacturing, refrigeration, aged and frozen foods, and is a pro- shelf category management and asset duce industry leader in nutrition educa- protection. tion and research.

Booth #2539 Booth #2627 Booth #2738 Booth #2759 T. MARZETTI COMPANY CARLSON AIRFLO MASTRONARDI PRODUCE RPE, INC Columbus, OH Brooklyn Park, MN Kingsville, ON Bancroft, WI T. Marzetti Company is a leading manu- Carlson AirFlo® introduces an all-new, Mastronardi Produce is a leader in the Chef Joey Elenterio joins forces with RPE, AISLE 2700 AISLE 2600 AISLE 2500 facturer of refrigerated salad dressings revolutionary merchandising solution, gourmet greenhouse industry that grows Inc. again this year. The Michelin-star chef and dips. More recently, we introduced AirArt. AirArt provides impactful, unique nationally recognized brands under the brings his creativity to the Tasteful Selec- the very successful Marzetti Simply category management with a bold, cre- SUNSET® label as well as flavorful toma- tions bite-sized potatoes product line, Dressed salad dressings and atively appealing wall display. Use your toes, peppers and cucumbers year and will be demoing a different recipe Marzetti Otria Greek existing Vertical System or completely round. each day of the convention. RPE will also Yogurt Veggie Dips. convert another set. be showcasing the newest additions to its Visit our booth, and See AirArt unveiling at PMA. Old Oak Farms see what’s new for Carlson-airflo.com line. this year!

Booth #2839 Booth #2851 Booth #3014 Booth #3014 SUNKIST GROWERS, INC. STEMILT FLORAL BUSINESS PERISHABLE NEWS.COM Sherman Oaks, CA GROWERS Boca Raton, FL Boca Raton, FL Sunkist Growers is a citrus marketing LLC Come visit Booth 3014 and pick up the Visit our booth to sign up for a free sub- AISLE 3000 AISLE 2800 cooperative founded in 1893, which is Wenatchee, newest tool to help supermarkets floral scription to PerishableNews.com, the first owned by and operated for thousands of WA executives become better news site written exclusively for the entire family farmers growing citrus in Califor- Stemilt Growers is a leading family- marketers, merchandisers, perishables arena. Be among the growing nia and Arizona. owned tree fruit grower, packer, and managers, and buyers of list of subscribers who get instant, daily or shipper based in Wenatchee, WA, floral products: weekly e-mailed with an exclusive apple variety of Piña- FLORAL BUSINESS. announcements. ta, Lil Snappers kid-sized fruit program, and world famous programs for apples, pears, cherries, and stone fruits.

Booth #3014 Booth #3014 Booth #3016 Booth #3020 PERISHABLE PUNDIT PRODUCE BUSINESS PACKAGE CONTAINERS, INC. PRODUCE PRO SOFTWARE Boca Raton, FL Boca Raton, FL Canby, OR Woodridge, IL There is nothing quite like Jim Prevor’s Covering marketing, merchandising, We offer extraordinary sales success that Produce Pro is a fully integrated software Perishable Pundit. Access the Pundit at management and procurement issues you can replicate in your produce solution for wholesale food distributors, Perishablepundit.com and see for your- that affect the sales of produce and floral department. Earlier this year, Package terminal markets, growers, processors, self. Or come by our booth and meet Jim items, PRODUCE BUSINESS uniquely “initiates Containers launched a branded tie-in and importers. Providing real-time inven- Prevor and the whole staff. industry improvement.” promotion program throughout a 79- tory, traceability, reporting and account- store grocery chain sponsored by the U.S. ing capabilities with efficient support and Potato Board and the National Onion services. Association. Using PCI’s performance proven Home-Toter bags, success was immediate. PACKAGING CONTAINERS, INC.

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Booth #3026 Booth #3030 Booth #3051 Booth #3039 SANTA CRUZ BERRY RED RIVER VALLEY POTATOES CALIFORNIA FRIEDA’S, INC. FARMING CO. East Grand Forks, MN SUN DRY Los Alamitos, CA Watsonville, CA The Red River Valley of North Dakota FOODS Frieda’s celebrates over 50 years of inno- Santa Cruz Berry Farming Co. grows and and Minnesota is the largest producer of Danville, CA vation with the Power of Purple and Fla- ships high quality organic and conven- red potatoes in the country and for good California Sun Dry Foods continues to vor Essentials. Come taste, touch and tional strawberries from throughout the reason. Grown in a temperate climate produce the nation’s No. 1 selling sun- smell what the specialty experts have in state of California. Our goal is to produce and fed by prairie rains rather than irriga- dried tomato. Sweet, full-bodied and store for 2014. the highest quality, safest, most flavorful tion, Red River Valley Potatoes truly have intensely flavored, we sun dry only the strawberries possible. “Nature’s Flavor.” finest California grown tomatoes.

Booth #3057 Booth #3140 Booth #3155 Booth #3723 THERMAL TECHNOLOGIES, CHRISTOPHER SHANLEY FARMS GILLS ONIONS Blythewood, SC RANCH Morro Bay, CA Oxnard, CA Gilroy, CA Thermal Tech is the leading provider of pro- Shanley Farms is a grower-shipper of Cit- Come see our new caramelized and AISLE 3700 duce ripening rooms in North America. Our AISLE 3100 Christopher Ranch’s new riburst Finger Limes, Morro Bay Avoca- grilled onions! These California grown, patented TarpLess design ripens over 70 per- crop Monviso California Heirloom Garlic dos, and Sierra Sweet Kiwis. Partner with ready-to-use products make perfect top- cent of all bananas processed across the US, is now available! Monviso is grown from us to bring you the “Seasons Finest” and pings for any meal. Plus, join us as we cel- Canada and Mexico — over 100 million specially selected seed, exclusive to unique produce items. ebrate 30 years of stress free, mess free, pounds a day and growing. Fruit looks better, Christopher Ranch, and has been nur- time-saving solutions. From diced to lasts longer and weighs more with guaranteed tured for over 55 years to preserve its whole peeled uniformity in every box. exceptional flavor, consistency and quali- onions, visit our ty! Monviso is available in a variety of booth to learn sizes and packs including our colorful dis- how we can help play boxes. improve your bottom line.

Booth #3739 Booth #3814 Booth #3830 Booth #3930 FRESH SOLUTIONS NETWORK RIVERIDGE PRODUCE ALLIANCE RUBBER COMPANY BABÉ FARMS, INC. Sacramento, CA MARKETING INC. Hot Springs, AR Santa Maria, CA Fresh Solutions Network, LLC: Opera- Sparta, MI Alliance Rubber Company manufactures Babé Farms is your one-stop “farmers AISLE 3900 AISLE 3800 tions/Insight/Innovation/Marketing for Riveridge is a full-service fresh Michigan American-made rubber/PLU Bands: market,” offering a color palette of spe- potatoes and onions. Network Partners apple grower, packer and exporter repre- imprinted to meet PLU and “COOL” cialty root vegetables, baby lettuces, are: Masser Potato Farms, Keystone Pota- senting fourth, fifth, and sixth generation requirements. ProTape offers PLU band gourmet greens, baby cauliflower and a to Products, Michael Farms, Basin Gold apple farms. Riveridge distributes more benefits, plus barcoding and is easy to wide variety of seasonal specialties. Grow- Cooperative, Green Thumb Farms, Red than 20 varieties throughout the U.S. and use. ing year-round and hand harvesting daily Isle Produce, NoKota Packers, Sun-Glo of globally. in the Santa Maria Valley, CA. Visit: babe- Idaho. farms.com. E-mail: [email protected]. Phone: (805) 925-4144.

Booth #3914 Booth #4122 Booth #4231 Booth #4224 YAKIMA FRESH PAKSENSE, INC POTTER INC. POLYMER LOGISTICS Yakima, WA Boise, ID Bryan, OH Riverside, CA Our growing, packing and shipping expe- Temperature monitoring just got easier! Visit Potter Inc. for a look at our newest Polymer Logistics, a leader and pioneer in AISLE 4100 rience reaches back to the early 1900’s. About the size of a sugar packet, award- AISLE 4200 fruit-gift baskets. Unique basket and con- “One Touch/Retail Ready Packaging” Yakima Fresh was formed by three of the winning PakSens temperature monitoring tainer designs along with coordinating provides merchandising units to clients most successful Northwest growers: labels enables better food quality and hand-tied bows are a sure way to create worldwide. Display-ready from factory to Roche, Stadelman and Yakima Fruit. safety decisions, and can be recycled excitement and boost sales. From ready- retail means significant reductions in Yakima Fresh is your source for all your through the PakSense GreenSens pro- to-sell baskets to in-store kits and sup- replenishment and transportation costs Northwest Apple, Cherry & Pear needs! gram. plies, Potter Inc. can serve all of your fruit- while increasing in-store availability. Our gift basket needs for the holidays and units stack safely when full, and nest and everyday. fold when empty to maximize truck space.

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Booth #4315 Booth #4325 Booth #4330 Booth #4333 REDLINE SOLUTIONS HOLLANDIA PRODUCE/LIVE NATURESEAL, BALL DESIGN Santa Clara, CA GOURMET INC Fresno, CA RedLine Solutions provides practical PTI Carpinteria, CA Westport, CT PMA Member Since 1990. For over 30

AISLE 4300 and inventory control solutions. Our Live gourmet and Grower Pete’s certified NatureSeal brings years, we have specialized in Produce and traceability solutions — from standalone organic hydroponically grown living let- two new products food marketing design. We focus on to integrated traceability suite — pro- tuces, cresses and leafy greens by Hollan- to market. The same NatureSeal innova- dynamic designs, creative advertising, and vide case labeling and traceability com- dia Produce. Experience the difference tion and expertise that drives the fresh- effective promotions. Visit: balldesign.com pliance in the field, packing shed, or freshness can make by visiting us at the cut apple market is available to expand cooler. Visit our booth to see how we PMA Fresh Summit. the fresh-cut avocado market as well. can help you become PTI compliant With the help of NatureSeal, processors while improving productivity. are now offering pre-cut peaches and nectarines that retain their visual appeal and great taste beyond consumer expec- tations.

Booth #4414 Booth #4415 Booth #4423 Booth #4424 SAMBRAILO PACKAGING SUMMERIPE CRUNCHIES FOOD COMPANY BEDFORD INDUSTRIES Watsonville, CA Reedley, CA Westlake Village, CA Worthington, MN Sambrailo Packaging is a third-generation, Our goal is to be your preferred stone Crunchies freeze-dried fruits and vegeta- Stop by the Bedford Industries AISLE 4400 family-owned company that has served fruit partner, functioning as an essential bles are all natural, with no added sugars booth at PMA this year to the produce and floral industries since part of your team. We recognize it’s our or preservatives, gluten free, Kosher, non- view the new equipment from 1923. With locations in California and privilege, to help grow your category. GMO and made in the USA. Over 30 fla- Northfield Corporation Mexico, we have built vors are available in two convenient sizes. designed to automatically our reputation on ser- apply the ElastiTag to bottles or vice and quality. Known other products. The versatility of the for our “design to distrib- Elastitag and the automation capabilities ution” packaging innova- from Northfield make adding brand tions, Sambrailo truly identity, nutritional information, recipes, does “whatever is best for or coupons to your products a snap. the produce.”

Booth #4427 Booth #4445 Booth #4518 Booth #4531 CAVENDISH PRODUCE GIRO PACK INC. YERECIC LABEL KEENAN FARMS Charlottetown, PE Vidalia, GA New Kensington, Kettleman City, CA Cavendish Produce, we are the “Fresh Giro Pack, Inc. is launching our fresh PA Focusing on consumer convenience and AISLE 4500 Potato Specialists” offering an assortment unique package with 3-D dimension and Yerecic Label prides itself on selection, Keenan Farms has added a new of value-added and mainstream potato a kid-captivating design. Gator Bites is a being at the forefront of understanding snack size package to our line-up of sim- products. We are your one-stop supplier new package design in the shape of an what consumers want and need to make ply the best pistachio products. Keenan of top quality potatoes. alligator designed to grab the attention of purchase decisions when shopping. Farms is proud to once kids and their moms. Stand out and differentiate your product again include the official from the message clutter with the newest American Heart Association technology in on-pack labels. Visit our (AHA) heart-healthy food booth to see our LabeBling and the latest logo on all of our in-shell research on labeling! and kernel packaging.

Booth #4532 Booth #4539 Booth #4633 Booth #4651 MIXTEC GROUP CONCORD FOODS DPRODUCE MAN SOFTWARE DEL MONTE Glendale, CA Brockton, MA Half Moon Bay, CA FOODS MIXTEC Group is the No. 1 Executive Concord Foods is introducing a new dProduce Man Software introduces San Ramon, CA

Search Firm in Produce. We provide addition to its line of fruit dips at the AISLE 4600 online accounting and management soft- Del Monte Foods is com- exceptional executive recruitment and 2013 PMA Fresh Summit — Pumpkin ware for the produce industry. New mitted to providing value and leadership consulting to the “who’s who” Spice Caramel dip. This delicious, season- online produce software offers anytime, excellence in our products and services. of the industry. al dip is made with real pumpkin, vanilla anywhere access to essential business Our produce products deliver delicious, extract and classic warm spices. It is per- information from office, home or the healthy, ready-to-enjoy refrigerated prod- fect for dipping apples and other fresh road. ucts specially packaged to seal in flavor. fruit. To sample the new dip, please visit Our innovative product line is driving Concord traffic into the refrigerated fruit section Foods. by transforming it into a destination for healthy snacking and breakfast.

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Booth #4729 Booth #4739 Booth #4815 cALIFOrnIA GIAnt BErry BASkEt EASE LGS SpEcIALty SALES, Ltd FArMS Prior Lake, MN Bronx, NY Watsonville, CA Basket Ease has all the containers and LGS is your year-round source for premi- AISLE 4700 Visit us to learn more about our fall fresh supplies you need to make your own AISLE 4800 um produce from around the world. Our berry season and innovative consumer fruit and gift baskets. Including our core group of commodities includes Hass marketing campaigns underway. We also patented baskets designed to make fruit avocados, Clementines and other citrus, look forward to sharing news about the baskets “The Easy Way.” grapes, apples, pears and stone fruit. We 2014 season ahead. offer a variety of innovative and attractive new packages and pallet configurations to fit the needs of different retailers and fam- ily groups.

Booth #4831 Booth #4939 Booth # 5045 Booth #5230 SEnSItEcH Inc. dOMEX SupErFrESH cOpEXEu ASSOcIAtIOn GrEAt LAkES IntErnAtIOnAL Beverly, MA GrOWErS Buenos Aires, Argentina trAdInG, Inc Yakima, WA . The cold chain experts at Sensitech Inc. Come to Argentina´s booth and make Traverse City, MI AISLE 5000 AISLE 5200 now offer the food industry an even more AISLE 4900 Domex Superfresh Growers® is a leading your off-season business by meeting Great Lakes Awesome Apricot Yummy comprehensive cold chain monitoring grower and shipper of apples, pears, Argentine growers and exporters of fresh Fruit Bus™ is now available in a conve- solution by providing real-time tempera- cherries and apricots from the Pacific pears, apples, blueberries and cherries nient shipper display! Each shipper con- ture monitoring with location tracking. Northwest. Learn how our difference and organics. tains three cartons of makes all the difference™. the original Yummy Fruit Bus. Set up is easy, and your customers will love the presenta- tion. Visit our booth for more information.

Booth #5639 Booth #5650 Booth #5709 Booth #5715 SunSWEEt GrOWErS, Inc. dOuGLAS JOVy FruIt rOLLS ItAuEIrA rEI Yuba City, CA MAcHInES City of Industry, CA MELOnS Sunsweet Growers Inc., a grower-owned cOrp. Introducing Day Fruit – Fruit Snack with São Paulo, Brazil AISLE 5700 AISLE 5600 marketing cooperative, offers a variety of Clearwater, Chia Seeds by the Makers of Jovy Fruit This year, Itaueira is bring- delicious dried fruits and juices including FL Rolls ing something new to the the new Plum Amazins, Amazin Blends, Choose from • No Artificial Colors or Flavors show floor, its Brazilian Canary D’Noir Prunes, PlumSweets, Prune Juice, over 80 Douglas Washers to clean all • 97 Percent Fat Free Melon fresh cut. There will be and Philippine Mango. containers commonly found in the food • Gluten Free demos during the show, so every visitor processing and produce industries. Batch • Kosher can see for themselves how amazing this and continuous cleaning models for melon is. Inside, the flesh is similar to the pans, trays, pallets, lugs, totes, racks, bins, Honey Dew, but the taste is delicious, vats, barrels and buckets. always.

Booth #5723 Booth #5907 Booth #5915 Booth #6024 BEAcHSIdE prOducE, LLc unItEd JuIcE cOMpAnIES OF cMI GrāppLE FruItS, LLc Guadalupe, CA AMErIcA Wenatchee, WA Wenatchee, WA Headquartered in Guadalupe, CA, Beach- Vero Beach, FL Over the last 20 plus years, CMI has Reaching customers with a new taste and AISLE 5900 side Produce, LLC is a year-round grow- We are introducing a new 100 percent steadily grown into one of Washington AISLE 6000 flavor. Try one of the latest juicy, crispy, er/shipper, and one of the leading pro- all-natural juice with a children’s live ani- state’s largest apple, pear and cherry ship- up-and-coming gourmet Grapple brand ducers and marketers of commodity mated show, called LazyTown. United per and grower. The company continues apples at Grapple Fruits’ booth. packed broccoli in the U.S. Beachside Juice Co. teams up with LazyTown to to be a pioneer in new varieties, sustain- Produce provides a full line of vegetable introduce four, 100 percent all-natural ability, creative packaging and growing consolidation for its customer base. juice products for children. Check out technologies. Please visit us at our booth and see what our booth to sample these natural juice we bring “From our Family Farms…to products. your Family’s Table.”

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Visit us at PMA Fresh Summit Booth #4815 Idaho Potatoes_Layout 1 9/9/13 7:40 PM Page 1

US Air Force Academy in Colorado Springs, CO, shows PHOTO COURTESY OF IDAHO POTATO COMMISSION off its spuds. Idaho Potato Lovers Contribute To Another Record-Breaking Year

Retailers and military commissaries show their love for the spud in the annual Idaho Potato Commission’s Potato Lover’s Month retail display contest. BY MICHELE SOTALLARO AND MADELINE MESA

ach February, for the past 22 years, commissaries had to create a display for their information; order point-of-sale materials potato lovers in retail profess their produce department featuring Idaho potatoes from idahopotato.com/retail or through the admiration for Idaho potatoes by and Hormel Real Bacon Bits, plus special- category manager. Eparticipating in the Idaho Potato themed point-of-sale material from the IPC Stores were judged under four categories Commission’s (IPC) Potato Lover’s and Hormel. The display was required to be up according to size: one to five cash registers/ Month retail display contest. About 4,049 in the store’s produce section for at least one Category 1, six to nine cash registers/Category supermarket chains and independent retailers week between Jan. 28 and March 1, 2013. 2, 10 + cash registers/Category 3, military alike, along with military commissaries, Entrants were instructed to follow these commissarie/Category 4. Up to $34,000 was submitted entries for the contest. guidelines for the contest: build an attractive rewarded in cash prizes to winners and all This year, entrants were encouraged to and memorable display with Idaho potatoes entrants received Swiss Army backpacks. cross-merchandize displays with Hormel Real and Hormel Real Bacon Bits; incorporate the PRODUCE BUSINESS congratulates the Bacon Bits to play on the consumer craze websites — idahopotato.com and following stores for their first place wins this around all things bacon. hormelfoods.com — into the display to give year and celebrates the industry’s creativity with To enter the contests, retailers and military customers access to recipes and additional the following pictorial of additional winners.

1 - 5 Cash Registers/ 6 - 9 Cash Registers/ 10+ Cash Registers/ Military/Category 4 Military (k3, k4, k5) Category 1 Winner Category 2 Winner Category 3 Winner (k1, k2) 1st Place 1st Place - $1,500 1st Place - $1,500 1st Place - $1,500 1st Place Donna Evans Christy Inman Brian Taylor Robert Kruse Leon Thomas, Jr. Sheppard AFB Kirkpatrick’s Foodland Marsh Supermarket Sweetbay Supermarket US Air Force Academy Commissary South Pittsburg, TN Indianapolis, IN Wesley Chapel, FL USAF Academy, CO Sheppard AFB, TX

SEPTEMBER 2013 • PRODUCE BUSINESS 135 Idaho Potatoes_Layout 1 9/9/13 7:41 PM Page 2

1  5 CASH REGISTERS/CATEGORY 1 WINNERS st 1st Place - Kirkpatrick's Foodland, nd 1 South Pittsburg, TN 2 2nd Place - Piggly Wiggly #124, Clover, SC 3rd Place - Prenger Foods, Marceline, MO 4th Place - F.T. Reynolds, Baker, MT 5th Place - Fillmore Shop 'n Save, Fillmore, NY 3rd

4th 5th

6  9 CASH REGISTERS/CATEGORY 2 WINNERS st 1st Place - Marsh, Indianapolis, IN nd 1 2nd Place - Pierce's Market Place, 2 Baraboo, WI 3rd Place - Hy-Vee, Canton, IL 4th Place - Sweetbay Supermarket #1865, Spring Hill, FL 5th Place - Marsh, Indianapolis, IN 4th

3rd 5th

136 PRODUCE BUSINESS • SEPTEMBER 2013 Idaho Potato_Ad 8/22/13 11:12 AM Page 1 Idaho Potatoes_Layout 1 9/9/13 7:41 PM Page 3

10+ CASH REGISTERS/CATEGORY 3 WINNERS st 1st Place - Sweetbay Supermarket, nd 1 Wesley Chapel, FL 2 2nd Place - Hy-Vee, Windsor Heights, IA 3rd Place - Carnival Foods, Lancaster, OH 4th Place - Publix Supermarket, Vero Beach, FL 5th Place - Marsh, Indianapolis, IN 3rd

4th 5th

MILITARY WINNERS 1st Place (K1, K2) - US Air Force Academy, st Colorado Springs, CO rd 1 2nd Place (K1, K2) - 3 Dyess AFB Commissary, Dyess AFB, TX K1, K2 K1, K2 3rd Place (K1, K2) - Laughlin AFB Commissary, Laughlin AFB, TX 1st Place (K3, K4, K5) - Sheppard AFB Commissary, Sheppard AFB, TX 2nd Place (K3, K4, K5) - March AFB, Riverside, CA 3rd Place (K3, K4, K5) - Fort Leonard Wood Commissary, Fort Leonard Wood, MO 2nd K1, K2 1st 3rd K3, K4, K5 K3, K4, K5 2nd K3, K4, K5

138 PRODUCE BUSINESS • SEPTEMBER 2013 Potatoes_Layout 1 9/17/13 12:25 PM Page 1

MERCHANDISING REVIEW Power Of The Potato

The industry shares best practices for merchandising potatoes. BY KEITH LORIA

Marketers and retailers agree that a broad assortment of varieties and package sizes can significantly improve potato sales.

n this 21st century world, people want stores carry an assortment that meets the Mac Johnson, president/CEO of Aurora, things fast, simple and don’t adapt well proper demographic. Everything else but the CO-based Category Partners, a joint venture to change in their lives — unless it has to core product is a higher margin.” Pemsler says. strategic retail marketing services company Ido with technology. That creates a chal- “If you only carry Russets, and it’s an upper- owned by Wada Farms and Farm Fresh Direct, lenge for potato suppliers in the U.S. and middle or upper-class area, you’re missing Idaho Falls, ID, says potatoes are often taken Canada who are fighting to change incorrect sales. If you’re only carrying non-Idaho for granted and treated as a commodity versus preconceived notions about fresh potatoes. Russets, as opposed to Idaho, you’re missing a consumer good. Chris Wada, owner of Wada Farms premium sales.” “Certainly not all, but many retailers, have Marketing Group, LLC, Idaho Falls, ID, says a ‘stack them high and let them fly’ mind set,” that in the past, the most important factors for Times Have Changed says Johnson. “Potatoes should be given the increasing sales included quality/freshness, There was a time when many retailers same attention that many other items in competitive pricing, year-round availability carried nothing more than bags of brown Produce receive. There is really no optimal size; and food safety/traceability. Today those potatoes, but that is no longer the case. A look it all depends on the specific retailer, overall factors are viewed as requirements or the cost around the produce department will yield reds, size of the store, and most importantly, the of entry to be a valued supplier to retailers and yellows, organics, microwavable, fingerlings demographics of a particular store’s shopper.” their consumers. and more. Most of these have higher margins “A store that caters to large families should “It’s increasingly more important to really resulting in better profits for the store. carry more 10-pound bags than a store that focus on being customer-centric in all efforts has shoppers who skew to empty nesters and to increase sales of potatoes,” he says. “That baby boomers. A center city store where many customer/consumer obsession will take shape of the customers walk, bike or take a bus in many ways as populations, generations, should carry a selection of smaller sizes of cultures and technology continue to redefine potatoes,” adds Johnson. how the entire supply chain views potatoes.” Dana Rady, director of promotions, Seth Pemsler, vice president, retail/interna- communication and consumer education for tional, The Idaho Potato Commission (IPC), the Wisconsin Potato & Vegetable Growers Boise, ID, says there are a number of elements Association (WPVGA), Antigo, WI, feels there that must be considered in merchandising is a hindrance to Wisconsin potatoes being potatoes correctly, everything from promo- recognized among other types, so recent tions, to the varieties that are stocked, to promotional efforts have centered around showcasing them in the correct manner. pushing Wisconsin-based brand logos and “Part of winning the battle is making sure growers.

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MERCHANDISING REVIEW

“This is something on the lines of a Kwik something new to the consumer. Lok or a picture on a tag,” Rady says. “We’re “A lot of learning from other parts of the trying to find a cost-effective way of marketing world is starting to hit our shores,” she says. “In A Healthy Choice our product and broadening awareness that Canada, we are information-poor. We don’t im Ehrlich, executive director of the Wisconsin is the third largest potato producing have the same access to stats and data that the JColorado Potato Administrative state and No. 1 East of the Mississippi.” U.S. has, so it’s important that we keep up with Committee (CPAC), Monte Vista, CO, Kendra Mills, marketing director at Prince everything that’s going on. We’re seeing growth believes the single most important Edward Island (PEI) Potato Board, Charlotte- in niche varieties and a proliferation of vari- factor in increasing sales is educating town, PE, which grows 25 percent of Canada’s eties in the potato category.” consumers. It is important to know potato production, says there has been lots of why potatoes are good for them and buzz in the industry around proprietary vari- Merchandising Matters to learn about potato nutrition so eties and breeding programs that bring “In-store merchandising of potatoes has consumers make potatoes an impor- tant part of a healthy diet. “Potatoes are an excellent source of vitamin C, potassium, fiber and are inherently low in calories,” says Ehrlich. “In addition, gluten-free foods are also a hot topic in the food industry and potatoes by their very nature are gluten-free.” “No fat, no cholesterol, 45 percent of your RDA for vitamin C, more potassium than any other produce item in the store — who can deny that type of nutrition?” Ehrlich says. “I think many people are unaware of the true health benefits of potatoes, and relaying that message to consumers is a challenge.” Kendra Mills, marketing director at Prince Edward Island Potato Board (PEI), Charlottetown, PE, says that utilizing social media has been the best way to get the word out about potatoes and a method the board offers. Over the past six months, the PEI Potato Board saw tremendous growth in the amount of Facebook “likes” and Twitter followers, and this is an easy way to pass on information about nutrition, share potato recipes and clear up any misnomers. pb

significant challenges due to a couple of factors,” Wada says. “First, the ability to prop- erly merchandise a produce item with relatively low supplier margins makes it difficult to consistently promote with impact. Second, successfully implementing a supplier-backed in-store merchandising program requires a high-level of retail participation to achieve the sales lift needed to justify the time and expense for everyone involved.” “Presentation and good eye appeal are the first factors at retail that will draw the interest of customers and help increase sales,” says Marc Turner, sales manager for Bushwick Potato Commission, Farmingdale, NY.

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“Providing a top quality potato and consis- what they need.” “Some retailers put potatoes in different tently delivering that great quality will keep “You have taken the customer right out of parts of the store. Some refrigerate bulk inven- customers coming back for more potatoes.” the market without them even noticing you tory. The problem is that when consumers “With merchandising, a big mistake that have these beautiful fingerlings or this fresh arrive at one selection, they won’t see the others many retailers make is that they decide to red crop that just arrived,” Pemsler says. because they will not stop at three different offer a giant special and use a five-pound bag “What seemed like a good idea is actually a locations for potatoes,” Pemsler says. as a loss leader,” says IPC’s Pemsler. “The detriment to the department.” “Another core error retailers make is with retailer puts the bag right in the front of the Pemsler recommends keeping the store’s the potato table. Since bulk stock is in a produce section so, as customers walk in, they potatoes together so a consumer can see a full different area, which carries a higher margin, see the giant bin of potatoes at this super-low array of choices and make the best personal consumers might miss it. A bag of potatoes price, add a bag to their cart and then skip the choice — which could lead to a higher market could be two bucks for five pounds, whereas potato section altogether because they have opportunity. bulk potatoes could be 99 cents a pound. If you take the potatoes out of the market for the bulk, you miss that opportunity.” Ted Kreis, marketing and communications director for the Northern Plains Potato Growers Association, East Grand Forks, MN, expresses a concern that prices for potatoes, especially red potatoes, were unusually high this past summer, and that may have caused some retailers to shy away from the category. “Many stores quit promoting or stopped stocking red potatoes altogether at that time,” Kreis says. “Now prices are back to very promotable units, and there is pent-up demand, so it is important to again aggressively promote potatoes, especially reds.” Making potatoes highly visible to consumers in a produce department seems to be a challenge. On a recent trip to a busy downtown Chicago grocer, Kreis noticed that potatoes were displayed beneath a display case on a floor platform, which he never would have seen had he not been looking for them. “Typically, potatoes are a high margin, high volume item, so they should be put where they can be easily found,” Kreis says.

Potatoes Anytime There’s a feeling throughout the U.S. and Canada that potatoes are only appropriate for dinner; therefore, one of the biggest challenges that the industry faces is changing that almost universal notion. “People can have a baked potato for lunch, and we are finding that more people are consuming them for breakfast, which we feel is a great idea,” PEI’s Mills says. “They don’t have to be a side-dish; they can be a healthy meal. If you’re making them the night before, you can easily cook a few more potatoes so you can have them quickly for breakfast or lunch the next day.” A lot of WPVGA’s promotional efforts are directed toward eating potatoes in the morning. For example, its most recent recipe contest, “Put Your Best Foot Forward in the Morning,” received a blast of entries featuring breakfast options using Wisconsin potatoes.

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direct light. “Too often, stores won’t display them properly. They keep the potatoes where they are not cool or are in too much light, which can be damaging to the potatoes,” Dolan says. “It’s a challenge in getting produce managers to treat them properly.”

On Display When it comes to potatoes, like almost all products in the produce department, merchandising and signage can significantly improve sales. Aurora’s Johnson recommends signage highlighting important factors — such as price, sales and key nutritional facts — to help dispel the negatives consumers “It was amazing to see the amount of help their bottom line enough so they start hear about potatoes. different creative ways people used potatoes for taking the time to have attractive, well “Ensuring that the display allows the breakfast,” WPVGA’s Rady says. “I think fami- managed potato displays along with innova- consumers to quickly find what they want, lies are discovering that potatoes are versatile, tive potato promotions.” whether it’s a 10-pound bag of Russets, a 5- and you can cook a healthy meal at any time.” “The United States Potato Board (USPB) pound bag of reds, or smaller sizes of has great, proven guidelines on display size, specialty potatoes, will also help the shopping Time Is On Your Side variety segmentation, packaging, optimal experience,” Johnson says. “It’s also important Another big misconception among promotions, etc. The USPB is also a great to rotate and cull the product on a scheduled consumers is that cooking potatoes takes a partner for any retailer serious about basis, as consumers want fresh, attractive long time, but nothing could be further from improving the bottom line in their potato produce — potatoes are no exception.” the truth. category,” Ehrlich says. Optimal display size will depend on the “The fact that potatoes are easy to prepare APG’s Dolan is in favor of smaller displays store and its location. Lower demographics is really a point that needs to be addressed,” that rotate often — as long as they are out of should concentrate on more 5-pound bags, says Paul Dolan, general manager of Associ- ated Potato Growers (APG), Grand Forks, ND. “Reds and yellows can be prepared in five to six minutes in the microwave with the skin on. I personally feel that people in the 20 to 30 age-range just do not know how easy it is to cook potatoes.” “In the hectic pace of today’s consumers, many want or need to get dinner on the table fast. There are many potato options that can get that done — single-serve microwaveable potatoes, microwave-in-bag options, smaller C- and B-size potatoes can quickly be steamed, broiled or microwaved,” suggests Dolan. “It’s vital that consumers who are looking to get a meal on the table quickly do not overlook these products.”

Other Challenges Consumption is a big challenge. People are often misinformed that potatoes are fattening or inconvenient, or they simply may not have grown up eating them. Another challenge is competition with other produce items in retail, which are typi- cally more favorable options in the minds and hearts of consumers. “Education again comes into the equa- tion,” CPAC’s Ehrlich says, “this time it’s for retailers and produce managers — the ones who need to learn how selling more potatoes

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MERCHANDISING REVIEW Perfect Partners

ne of the strengths of potatoes is they are so versatile Cross merchandising options also exist with sour cream, that they go well with lots of different protein sources cheese and other produce items, such as onions or mush- Oand other vegetables too. That’s why cross marketing is rooms. All these options can be very effective in gaining a great way to increase sales and get them on the minds of attention and incremental sales. people as they shop throughout the store. For the past 23 years, the IPC has run a Potato Lover’s “The best way to cross market potatoes is to put the Month contest every February, where it partners with another whole meal package close together in an attractive display brand and invites retail stores to create a one-of-a-kind display and not limit creativity,” says Jim Ehrlich, executive director around the product partnership. This year, it teamed with of the Colorado Potato Administrative Committee (CPAC), Hormel Bacon Bits. Previous tie-ins included Hidden Valley Monte Vista, CO. Ranch Dressing, Velveeta and Cheese Whiz. [Editor’s note: see According to Mac Johnson, president/CEO of Aurora, CO- the winners of this year’s Potato Lover’s Month contest starting based Category Partners, studies show that when dinner on page 135.] includes a center-of-the-plate protein, potatoes are the No. 1 More than 4,000 entries were submitted for the 2013 side dish, so cross merchandising with meat can be very effec- contest. When giant displays are built, it helps to sell lots of tive. Consider a secondary potato display with meat or a potatoes, but it also helps the produce department as a whole circular ad featuring a roast and red potatoes, a steak and because it drives customers there to shop. As a result, the jumbo russets…the choices are unlimited. consumers buy tie-in items and other produce.

because that’s what is selling; while urban “Potatoes benefit from large displays due to farm theme, for example, adorning potato markets should offer potatoes as singles, the many different varieties that are displayed displays with rustic decorations and anything because there is no room to store larger at retail level. A good presentation, with that correlates farm-fresh with potatoes would inventory. Suburban areas should focus on colorful packaging, will create the best eye make an eye-catching display.” larger displays and offer 5-pound bags in appeal,” Bushwick Potato Commission’s In discussions with produce managers at different varieties. Turner says. “Also, creative displays using a different retail stores, WPVGA’s Rady heard

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potatoes resembles each other closely, it will help the category.” “We always tie in with another coupon off Idaho potatoes if the product — providing a benefit for us customer buys a bottle of its product at Capitalizing On Food Trends and the partner. People might forget to certain times during the year. While baked and mashed potatoes are still put bacon on their potato, so this The reality is, potatoes are bulky, so the two major preparation methods for pota- makes for a bigger display and helps it’s hard to stock them elsewhere for a toes, the smaller C- and B-size potatoes are the store sell more product,” says Seth tie in. The best way to cross market is growing in popularity. Due to a combination Pemsler, vice president, retail/interna- by bringing something else into the of availability, people want to try something tional, The Idaho Potato Commission potato section, and don’t hesitate to put new and convenient with their potatoes. (IPC), Boise, ID. “Part of the reason it shippers on either side with signage. Consumers want options that can be works so well is that February is a slow “The ideal partner is a non-perish- microwaved, boiled, broiled, or steamed in a month for produce. Retailers have time able item, because when you do short period of time. to create something, and all of a perishable, you can’t move them, and “With so many consumers watching the sudden, people are spending more time it’s hard to move the potatoes to a Food Network, using the Internet for recipe in produce than usual.” section like meats,” Pemsler says. ideas, or just wanting to experiment, both Another plus is, tie-in partners “Bacon bits, croutons, onions, jars of fresh and dried seasonings are playing a frequently will provide coupons for pota- garlic, or salt — logical garnishings bigger role in potato preparation and presen- toes with purchases of their product. For that accompany baked potatoes or tation,” Aurora’s Johnson says. “This is example, Mrs. Dash will offer a $1 mashed potatoes.” pb helping to bring in younger demographics and the one- and two-person households that are looking for a different or restaurant-style lots about the importance of “buying local” fresh produce. potato experience. Working with retailers to and supporting the “people in your backyard” “If organic potatoes can be presented get potato recipe ideas out to their customers who help provide the food people take home cleaner, and as close to appearance as conven- can really boost sales.” to their families. tional potatoes, it will help increase sales,” According to IPC’s Pemsler, most Millen- “I think that adding eye-catching signs Bushwick Potato Commission’s Turner says. “If nials don’t know how to cook, and that promoting buying local would be an asset,” the appearance of organics and conventional inability makes it tougher to sell things that Rady says. “Nothing too small or too gaudy, but something that instills the value of the concept.”

The Organic Choice Organic potato sales continue to grow, as does the variety of organic potatoes being grown. Not all stores are right for organics; for those that are, organic potatoes can play an important role. Again, knowing your customers and their consumers is important. “Some retailers have carved an organic produce section; in that instance, it’s easy for the consumer to find organic potatoes,” Aurora’s Johnson says. “But for retailers that incorporate organics into their traditional sets, it is key to ensure the signage clearly states that these potatoes are organic.” As it is for all items in the store, helping consumers find what they want quickly and easily is important to keep those consumers. “Boldly display organic potatoes so consumers see the difference and provide education so consumers understand what organic really means to them,” CPAC’s Ehrlich says. “If a consumer values the organic concept, then promote it with zeal.” As much as organic produce is marketed, or perhaps viewed by many as containing increased health benefits, most people still make purchases based on appearance of

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MERCHANDISING REVIEW

require preparation. Being creative with pota- toes isn’t hard; people just have to learn. Package innovation also plays a role in marketing potatoes to Millennials. Some have recipes listed, while others offer clear microwavable instructions. Some offerings • ALPINE FRESH • AYCO FARMS • CARB-AMERICAS • CRYSTAL VALLEY FOODS • CUSTOMIZED even have sauces mixed right in the packet with the potatoes, which Pemsler says is a great way to address the lack of cooking knowledge. Gone are the days when consumers would shop with a written list, as more people have

turned to tablets and cell phones for organizing TAMBO SUR their shopping needs. • “Having recipe ideas available with the potato display is critical, especially with the new technologies that consumers embrace today while they shop,” CPAC’s Ehrlich says. “With the advent of so many cooking shows and the interest in healthy eating, I can’t help but feel potatoes are in a great position to take

advantage of the trend.” SOUTHERN SPECALTIES The PEI Potato Board has done some recipe • development focused on the non-traditional approach and created appealing formulas for potato pizza and potato hor d’ouevres. “Our No. 1 recipe is potato chocolate cake and uses mashed potatoes for some of the oil in a chocolate cake recipe,” Mills says. “Not only does it add nutrition and a vegetable, its moisture takes the place of some of those fattening ingredients.” The WPVGA also offers a food blog, which presents different posts about how potatoes can help people refuel to stay active. Recipes and other important potato information are included on the site as well.

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The IPC offers data to coach and share with • category managers or new buyers who rely on the knowledge of field experts who have spent at least 25 years in the retail environment and can speak the language of any store produce director or manager. Most retail category managers handle multiple divisions, which could represent over 100 or more SKU’s, so suppliers that offer cate- PROGRESSIVE PRODUCE

gory management and category development • services can significantly help by supplying pricing analysis, market and industry data, consumer insights, promotional recommen- dation, merchandising and signage support. “Most category managers have no shortage of internal data, so a good supplier can help by providing timely, relative and actionable external data,” Aurora’s Johnson says. “The best decisions are made when you have the best information. pb THE PERISHABLE SPECIALIST • ALPINE FRESH • AYCO FARMS • CARB-AMERICAS • CRYSTAL VALLEY FOODS • CUSTOMIZED

146 PRODUCE BUSINESS • SEPTEMBER 2013 PERUVIANASPARAGUS_. 9/17/13 4:53 PM Page 2

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MERCHANDISING REVIEW Six Sweet Ways To Sell More Pears

Retailers and marketers share trade secrets for better pear sales. BY CAROL M. BAREUTHER, RD

Industry experts agree and research shows that merchandizing variety

PHOTO COURTESY OF DOMEX SUPERFRESH GROWERS and pre-conditioning increase pear sales.

pples and pears make quite a pair. 1. Stock What’s Hot “Bosc is another ‘must-have,’” adds Both are members of the rose Ninety-nine percent of the domestic pear Redner’s Stiles. “We don’t sell as many Bosc as family, harvested in the fall, and crop is grown in three western states. Cali- Bartlett or Anjou, but it is definitely a mainstay A primarily enjoyed eaten by hand. fornia provides 15 percent of this total. The variety. So is the Red Anjou. We sell quite a lot However, when it comes to state is projected to supply an average 4.4 of this variety too.” contribution to produce sales, the similarities million 36-box equivalents to the fresh market Bartlett pears led the contribution-to-cate- end. Pears are the unsung heroes that from its season — which kicked off June 20 gory sales at 40.4 percent for the 52-weeks contributed a flat 0.9 percent of total produce and will run through December — according ending May 25, 2013, according to data dollar sales for the 52-weeks ending May 25, to the Sacramento, CA-based California Pear provided by the Nielsen Perishables Group. 2013, according to data provided by the Advisory Board (CPAB). “What makes Bartletts especially popular Nielsen Perishables Group (a Chicago, IL- Washington and Oregon together supply 84 with shoppers is their flavor and texture; based fresh food consulting firm). Apples percent of the U.S.’s fresh pears, according to they’re a softer pear,” explains Brian Coates, provide over six times this percentage. The the Milwaukie, OR-headquartered Pear Bureau senior buyer and produce merchandizer for opportunity gap is huge. Northwest (PBN). This figure is an estimated Meijer, a Grand Rapids, MI-based retailer that Richard Stiles, director of produce and 19.8 million 44-pound box equivalent for the operates 199 supercenters and grocery stores floral at Redner’s Markets, Inc., a Reading, PA- crop that began harvest in August and runs, for throughout five states. “Plus, customers can see based chain that operates 44 warehouse some varieties, through July — which is 2 the skin change color from green to yellow and markets and 14 convenience stores in three percent more than last year and 4 percent know when it is ripe. Several years ago, we did states, says, “For us, the pear category is very greater than the five-year average. Argentina a California ad and got in full yellow Bartletts. important, and it keeps growing in sales. Sure, and Chile ship pears to the U.S. in the spring I had to get extra trucks to rush them in shoppers like apples, but they also want variety and summer. because customers were buying them so fast.” for their meals and snacks. Pears are vital to the Jonathan Holder, senior manager of Kevin Moffitt, president and chief executive total mix of what we offer to our customers.” produce and floral at Raley’s Family of Fine officer of the PBN, says, “Red Bartletts were Pre-conditioning programs, innovative Stores, a 133-store chain headquartered in once in significant volume.” He explains that packaging and creative promotional plat- West Sacramento, CA, says, “Bartlett and the variety has a history of not attaining a full forms all offer new ways to inch pear sales Green Anjou are the most popular due to their red color and re-greening. “Customers buy closer to apples. out-of-hand-eating experience.” with their eyes. As a result, Starkrimson is

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“Retailers need to institute and maintain a consistent ripe pear display at all stores to drive consumer confidence, taste expectations, and repeat purchase

PHOTO COURTESY OF STEMILT behavior.” — Suzanne Wolter, Rainier Fruit Company

beginning to replace pear. This is ditioned fruit we ship is at 7 to 9 pounds. So, Red Bartletts,” says Moffitt. why pre-condi- if the fruit went south, it’s really in the range Bartletts are followed by Anjou at tioning programs, of just right for eating.” 29.2 percent and Bosc at 16.7 percent of pear implemented over the Suzanne Wolter, director of marketing for category contribution for the 52-weeks ending past five to eight years by the Rainier Fruit Company, in Selah, WA, May 25, 2013, according to Nielsen Perishables grower/shippers and retailers says, “Retailers need to institute and maintain Group data. that have in-house ripening facilities, have a consistent ripe pear display at all stores to Roger Pepperl, marketing director for helped boost pear sales at retail. drive consumer confidence, taste expecta- Stemilt Growers, Inc., in Wenatchee, WA, says, Meijer’s Coates explains his experience, tions, and repeat purchase behavior. “We’ll sell three times the amount of Anjou “We’ve tried preconditioned Bosc, red, all Displaying conditioned with non-condi- than Bartlett because of the length of the different varieties. However, these other vari- tioned fruit will sabotage retail efforts of season. Bartletts are available from August into eties don’t have the velocity of Anjou, so it building a successful program.” just after the first of the year, but Anjous go resulted in higher shrink. Today, we only In addition, Wolter says, “Emphasizing the from September into July. The bulk comes precondition Anjous and maybe some early correct procedures at store level is essential to from mid-November when we take them out season Green Bartletts. The added benefit with capitalize on maximum benefits of a precon- of cold storage and precondition.” the Anjous is that they don’t turn color when ditioned pear program. Ripe pears should not By September, the Pacific Northwest is ripe, so preconditioning helps our customers be stacked more than one or two high. Ideally, harvesting a full variety of pears. This includes to be able to buy consistently ripe fruit.” if space allows, the pears should be displayed Comice, Forelle, and Seckel, which represent “Approximately 30 to 40 percent of Anjou in the euro boxes to reduce handling. However, 2.0 percent of pear category dollar sales, with pears shipped out of the Pacific Northwest are several retailers have executed successful other pear varieties (including Concorde), preconditioned,” says the PBN’s Moffitt. “We’ve programs with bulk displays by educating store representing 0.6 percent of category sales for added six to eight retail outlets out of 12 to 15 personnel on handling. One of the biggest the 52-weeks ending May 25, 2013, according targeted annually over the past few years. A big challenges is communicating to consumers the to data from the Nielsen Perishables Group. selling point is using the results from a third- pears’ ripeness. A combination of ads, signage, This variety is ideal for fall and early winter party study we conducted with a California demos and personnel training is important.” ‘pear-arama’ promotions. retailer in April 2012. The research revealed a “Comice eats well,” says Meijer’s Coates, 19.5 percent increase in sales of preconditioned 3. Carry Enough Of The Right Varieties “but it’s not pretty to look at because of the Anjous, and customers continued to buy the ‘Years of data show more varieties equals russeting. I think it is held back because of the preconditioned fruit at a higher rate even two more sales,” says Chris Zanobini, the CPAB’s way it looks.” to three months after the study’s conclusion.” executive director. “It’s a misnomer that preconditioning Many retailers are doing a successful job of 2. Precondition To Promote leads to increased shrink,” says Stemilt’s maximizing category sales by merchandising Repeat Purchases Pepperl. “Studies show that people prefer to multiple varieties. It’s a no-brainer that ripe pears sell faster eat pears when they are at 3 to 6 pounds of In the fall, Raley’s Holder says, “We offer than those that are rock hard. At the same time, pressure. Anjous are usually 17 to 18 pounds up to seven varieties based on availability as not all consumers know how to select a ripe of pressure right off the tree, and the precon- some have short seasons. Throughout the

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year we typically carry at least four varieties: make up about 83 percent of the retail dollar Green Bartlett or Anjou along with a red, sales in the segment.” Comice and Bosc.” “Signage is so important to help shoppers “Meijer’s carries up to 10 SKUs of pears know the difference between the varieties,” from fall to April,” adds Coates. “This includes adds Brett Burdsal, regional director of seven green and red conventional varieties, an marketing for Wenatchee, WA-based apple pear (or Korean pear), and two organics Columbia Marketing International (CMI). such as an organic Bartlett and organic Anjou.” “Knowing the difference allows for more “Organic pears represent a growth people to find their favorite variety.” segment,” says Howard Nager, vice president of John Onstad, director of sales at the Yakima, marketing for Domex Superfresh Growers, in WA-based Sage Fruit Company, says, “One way Yakima, WA. “Organic Bartletts and Anjous to increase variety is to promote more than one PHOTO COURTESY OF RALEY’S

variety at a time in ads.” “October through January is a good time for a ‘pear-arama,’” suggests Stemilt’s Pepperl. “Make a two-week ad, giving produce managers more time to determine movement and sell through. In October, feature Bartlett, Bosc, Concord, Starkrimson and Seckel. In November, add red and green Anjou.” Meijer’s Coates says, “We do as many pear- arama and multi-variety ads as we can. When we do, we line price all the conventional vari- eties; organics are a different price. This encourages customers to purchase something other than the Bartletts and Anjous.” The PBN has positioned itself as the ‘data expert’ by purchasing retail-specific informa- tion, analyzing it, and creating actionable facts that retailers can use to maximize pear assort- ments within a given market region and/or market demographic. Moffitt says, “More variety isn’t necessarily for every retailer. For example, Forelle, Seckel and red pears won’t sell well at a discount chain, because they are typically priced too high. On the other hand, they can drive profits when offered at an upscale chain or a chain that is known for its number of produce SKUs.”

4. Add Packages For Incremental Sales Pears are customarily merchandized loose by the pound. However, some retailers have found incremental sales success by offering packaged pears. One example is Meijer. “We promote a 6-pound bag of pears between Thanksgiving and Christmas,” says Coates. “We used to carry a 3-pound bag, but it got lost on the shelf with the 3-pound bagged apples.” As for packaging type, Coates adds, “We sell Seckel pears in an open bag similar to grapes. This has proven to increase sales and decrease shrink, because these smaller pears tend to not get lost on the shelf.” Oneonta Starr Ranch Growers, in Wenatchee, WA, is introducing a 2-pound

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Davis last fall yielding good results. “The bene- fits of this pack are that it is good for “Small Bartletts are big for us preconditioned fruit sold ready-to-eat, it at back-to-school time. We give them a good protects the fruit, and it can be packed in production rather than have to be repacked,” retail price, such as less than $1 per pound, says the CPAB’s Zanobini. “The negative is that and easily sell through a couple of cases it’s expensive. There is a fine line between value and price.” in each store.” Bob Koehler, the PBN’s lead regional — Richard Stiles, Redner’s Markets, Inc. marketing manager, says, “Studies show increased sales and profits when bags or pack- pouch bag for its Seckel pears this season. Bartlett). It has a flavor description and recipe aged pears are added. It’s a whole different “Another pack Meijer introduced is on each bag. We feel that letting people know customer. It’s all incremental sales.” Stemilt’s Lil Snappers packages,” says Coates. how to include them in everyday simple, full “The sparkle of the graphics help the pears flavored recipes is just as important as how 5. Display: Bigger Is Better stand out. We merchandize the Lil Snappers at each tastes eaten straight out of the pouch. We “The pear category is subject to a high the end of the bulk pear display on cart level will continue to offer pear display sleeves and level of impulse purchases,” says Rainier Metro racks.” tote bags to retailers to encourage large displays Fruit’s Wolter. “Therefore, location has a Stemilt Growers introduced Bartlett and of pears.” direct impact on sales. A front-of-department Anjou pears to its Lil Snapper line last year. “Redner’s sells small pears in tote bags in display location provides the best volume and Bosc and a red pear will be added this season. the fall,” says Stiles. “Small Bartletts are big for dollar sales results.” The fruit is packaged in a 3-pound re-sealable us at back-to-school time. We give them a Size also matters. CMI’s Burdsal says, “We gusseted pouch bags with handles and colorful good retail price, such as less than $1 per encourage a nice big display at the start of the kid-friendly graphics. pound, and easily sell through a couple of new crop through the holidays and a gradual “This fall, CMI will launch a high graphic cases in each store.” paring down of the display as we run through 2-pound pear pouch with the intent of intro- A “hammock” pack, in which six pears are the varieties. Summer brings fresh imports, ducing pears to a whole new generation of suspended in a tray pack (or “hammock”) and we like to see the pear displays increase, customers,” says Burdsal. “The bags come in within a clamshell, was test marketed by showcasing the Argentinian and Chilean fruit four varieties (Anjou, Red Anjou, Bosc and researchers at the University of California at we bring in.”

SEPTEMBER 2013 • PRODUCE BUSINESS 153 Pears_Layout 1 9/12/13 4:52 PM Page 5

MERCHANDISING REVIEW

“Redner’s keeps all of its pear varieties other week. Display/sales contests with together in a destination display,” says Stiles. produce managers proved to be successful in “The large variety helps the category stand out creating excitement in our stores.” to customers.” Meijer chooses to partner with the PBN Meijer also merchandizes its pears together on in-store radio clips when pears are on in a primary destination display. However, promotion. Coates says, “We have had some success with Just like for apples, recipes are a great way to selling Anjous as an in-store promotion and on spur sales of additional pears. “Pears with an endcap next to Honeycrisp apples. It’s cheese, pecans, walnuts, salads, sandwiches and proven a good way to move more tonnage more show customers how this fruit can be when growers need help. We don’t take the easily added to spark up every-day dishes,” says Anjous out of their main display position CMI’s Burdsal. “This year we will introduce a because customers are used to looking for new two-box shipper kit that includes two them there.” boxes of pears and a high graphic display stand At Raley’s, Holder says, “We display our to promote the fruit. The high graphic display pears on refrigerated dry tables along with out- has beautiful images of pear recipes and a QR of-department displays during peak code for easy access to recipes.” promotional weeks. Display size will range The PBN’s website offers a wealth of from 24-square-feet for all varieties to double recipes. One of Redner’s Stiles’ favorites is

or triple that. PHOTO COURTESY OF DOMEX SUPERFRESH GROWERS a spring mix salad topped with sliced pears, “Bins are a good way to display pears, both dried cranberries and pumpkin seeds. “In the inside or outside of the produce department,” 6. Promote By Price And Usage fall and winter, we will have ingredients for says Stemilt’s Pepperl. “We offer a high-graphic Price is the most popular platform on a specific recipe — for instance, all the pear bin that can hold 4-, 5- or 6-pound bags of which to promote pears. “Raley’s stores begin salad items in the same location to create a Anjou or Bosc. A 50- to 100-store chain that promoting pears in early summer featuring a one-stop-shop for customers. You need to get sells through one bin in every store can sell an longtime local grower,” says Holder. “Then in new ideas out there. It’s creativity that drives extra load of pears this way.” the fall we promoted pears an average of every impulse sales.” pb

154 PRODUCE BUSINESS • SEPTEMBER 2013 PBH IN THE BAG_Layout 1 9/12/13 6:02 PM Page 1

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DRIED FRUIT & NUTS Pistachios Find Niches And Broaden Flavor Profiles

With lots of competition in the category, marketers are finding creative ways to differentiate product and ultimately increase sales in Produce. BY MICHELE SOTALLARO

Research reports a 44 percent spike in new pistachio product launches since 2008. PHOTO COURTESY OF AMERICAN PISTACHIO GROWERS

hether in-shell or shelled, Marketing For Specific Consumers Wonderful Brands has become a household pistachios continue to catch Aurora Products, Inc., in Orange, CT, pack- name for pistachios in produce departments — consumers’ attention. With ages not only pistachios but also over 100 especially Wonderful Pistachios’ snack-size Wits increasing flavor profile, different natural and organic dried fruits, nuts, packets. “A handful helps take the edge off heart-health affiliation and trail mixes, salad toppings, and granolas. hunger,” says Marc Seguin, vice president of nutritional benefits, pistachios are a great addi- Aurora’s president, Stephanie Blackwell, marketing at Paramount Farms, POM tion to any produce department’s portfolio. says the company has to do what it can to Wonderful and Paramount Citrus in Bakers- The traditional method of promoting pista- compete with growers that sell direct to field, CA. “It’s a smart snack, acting as a chios during any sporting season — especially retailers, such as Setton Farms, Paramount satisfying ‘bridge’ between meals.” baseball and football — is a tried-and-true Farms and Keenan Farms. “Therefore we “Our members are responding to the strategy. From a manufacturing standpoint, “a need to find our special niche in the pistachio demands of the health-conscience and active recent Mintel research report showed a 44 market,” says Blackwell. “We do this by consumer with unsalted nuts, portable snack percent spike in new product launches with concentrating on the shelled nuts and pack sizes and even a snack product that pistachios since 2008,” reports Judy Hirigoyen, promoting them during baking season.” combines dried fruit with pistachios for an director, global marketing for American Pista- “We carry only naturally opened energy spike,” says APG’s Hirigoyen. “The work chio Growers (APG), based in Fresno, CA. unbleached pistachios,” explains Blackwell. we’re doing is creating new places and times of “Menu mentions of pistachios have increased “Also, Aurora sells more shelled ‘meats’ than in- consumption for our product.” an incredible 176 percent over the same time- shell because there is so much competition for Dwayne Smallwood, produce manager and frame,” adds Hirigoyen. the shelled.” buyer for Okie’s Thriftway Market in Ocean This news, coupled with the influx of Keenan Farms in Kettleman City, CA, was Park, WA, welcomes new pistachio snacks and pistachio popularity after Paramount Farms’ one of the first pistachio processors in the state. variations, and says that as more become avail- Wonderful brand “Get Crackin” awareness Since 1972, the company has been growing, able, the store will include larger assortments campaign started in the fall of 2009, has processing and marketing pistachios. “Over in Produce. marketers broadening promotions for time, our roasting process has become some- consumer and foodservice meal ideas, what of an art; as a result, the flavor profile of Heart Health Is Center Stage snacking options, and health benefits to carve our product is second to none,” says Beth Each marketer may have its niche territory, individual niche markets and increase sales Sequeira, sales and marketing for Keenan but the industry is also playing up heart health at retail. Farms, Inc. in a variety of ways. Heart-health marketing is

156 PRODUCE BUSINESS • SEPTEMBER 2013 Pistachios_Layout 1 9/16/13 2:14 PM Page 2

also a way to keep pistachios front-and-center & Pepper,” says Seguin. “Both flavors offer a events, the company includes tie-ins to the in the produce department year-round. unique and enjoyable taste explosion for those advertising campaign and/or promotions “We’re proud to partner with the American craving a salty snack. The brand has also seen around the product. “All of these marketing Heart Association (AHA) in their Heart-Check the chili flavor category trending lately.” tactics help Wonderful Pistachios attract Program,” says Keenan Farms’ Sequeira. “The consumers in-store and create excitement in the Heart-Check mark appears on our retail prod- Executing Pistachio Sales In Produce produce department,” says Seguin. ucts and makes it easy for consumers to spot “Research shows consumers are absolutely Okie’s Thriftway Market stocks the heart-healthy foods in the store that meet indifferent to brands of pistachios, so the Wonderful brand and uses tie-ins during AHA’s guidelines.” most important element of retail marketing sporting event seasons. “We used to carry bulk “American Pistachio Growers received the is to provide easy and visible access to the pistachios and host events, but then we would American Heart Association’s Heart-Check product, including the private labels,” says find shells everywhere, so now we are doing Certification for in-shell pistachios and APG’s Hirigoyen. predominantly bagged items,” Smallwood says kernels that meet the AHA nutrition require- “If a shipper is available, we will purchase with a light-hearted laugh. ments for heart-healthy food when eaten as them — especially for football season,” says “Our marketing goal is to position Amer- part of an overall healthy diet plan,” explains Thomas Nichols, owner of Harry’s Supermar- ican pistachios under a health halo, with Hirigoyen. “Our member processors have the kets. “We do extremely well with pistachios emphasis on their unique and luxurious ability to feature the mark on their packaging. during football season.” flavor,” says APG’s Hirigoyen. “Health- If an APG member packs for a private label, “Our display shippers provide eye-catching conscience consumers look for them in the mark can be used for that private label displays for in-store sales,” says Keenan Farms’ Produce, and snackers are likely to purchase brand. This is a great resource for both the Sequeira. “Each of our shippers has a particular them when displayed throughout the store.” seller and the consumer.” theme to correspond with special promotions “Our strategy is to use wholesome, active Aurora sponsors many long-distance- or events during the year. We also ship Heart- people who’ve declared American pistachios as running events by giving out free samples on Healthy themed bins that showcase the best their ‘official snack,’ raising awareness to their the day of the race. The company supports a part about eating pistachios.” nutritional benefits and the fact that they’re the range of causes from Lou Gehrig ’s disease to “Retailers can promote Wonderful Pista- ideal snack that fuels a fit body,” explains heart-healthy campaigns. chios in a variety of ways with different bins, Hirigoyen. “As APG works to popularize pista- “Select varieties of Wonderful Pistachios tie-ins and promotions,” explains Seguin. For chios in these segments, retailers should see the (namely, the Lightly Salted and No Salt vari- many of the major holidays, as well as sporting trickle-down effect among consumers.” pb eties) proudly carry the American Heart Association Heart-Check mark — a trusted label for shoppers who are navigating the grocery store looking for heart-healthy prod- ucts,” says Wonderful’s Seguin.

The Future Of Pistachio Sales In addition to understanding the niche markets and health benefits of pistachios, it’s practical for the industry to recognize the bold flavor profiles that pistachio companies are exploring. Santa Barbara Pistachio Company focuses on organic and gourmet flavors such as Onion Garlic Roast, Chile Lemon, and Red Hot Habanero. “We carefully consider consumer prefer- ences when developing new products,” says Keenan Farms’ Sequeira. “For example, this year we’re introducing a new 1-ounce snack-size package. This small unit includes an easy-to- open laser scored edge and is ideal for today’s on-the-go consumer. Our line of unsalted pistachios has also become popular, especially for those looking for low-sodium snacks.” “Pistachios are a perfect addition to salads, pasta dishes, breakfast items and more!” says Sequeira. “They’re the perfect way to add a buttery, protein-packed crunch.” “Last year, Wonderful Pistachios launched a few new varieties including Sweet Chili and Salt

SEPTEMBER 2013 • PRODUCE BUSINESS 157 Harris_Layout 1 9/9/13 7:27 PM Page 1

RETAIL PERSPECTIVE

CROSS-POLLINATION MANAGEMENT

any of us have faced changes in By not acquiring solid knowledge of the industry, these executives Mmanagement, at both senior and are directing many companies, both in supply and retail, in directions peer level, during various times that cannot be sustained and will not be successful. By focusing on throughout our careers. The recent trend of CP-driven goals and objectives, along with financial measures, these bringing non-grocery/food executives into executives are in danger of losing their connection to the customer, the management of retail grocery companies which is a key part of any true merchant’s success. While the influx of has set a disturbing precedent. Experience many of these executives from outside the industry is concerning, taught me that to be successful in working there are success stories where new executives chose to learn about with this type of management, you had to be the industry and adapted their previous experience to fit the needs patient and take the time to educate them on of a grocery/food operation. These executives take time to learn and the peculiarities of retail Produce and the retail grocery business as a gain an understanding of the basic concepts of food retailing and the whole. This effort usually yielded a tacit understanding of our peculiarities of various segments of the industry — including perish- produce industry or at least a tolerance of its idiosyncrasies. However, ables, primarily meat and produce. Subsequently, the companies that when approaching many of these executives are managing these new executives with a continue to have success and particular situation in the growth while meeting sales and produce world, one would While the influx of many executives profit goals. receive blank stares, which told Having worked with these you they just don’t get it! from outside the industry is executives, it is obvious that the The influx of these executives concerning, there are success stories accomplishments of the opera- and managers from outside where new executives chose to learn tion are in direct relation to their industry has produced a shift in ability to understand and learn the management for grocery about the industry and adapted their the ins and outs of the industry. companies. Instead of the previous experience to fit the needs As a byproduct, the willingness merchant’s view of selling of a grocery/food operation. of an executive to learn “the busi- product to the customer, these ness” improves the morale of new executives — mostly from everyone involved and promotes CP (consumer products) cooperation in the achievement companies — tend to take a of company goals. more financial look at the operations and deal with challenges in As we move forward, the jury is still out on this new breed of cross- more of an analytical manner. As more of these executives join the pollination management of the food industry. While this welcoming ranks of management, the more companies veer away from the tried- shows the promise of bringing new blood and new ideas to the table, and-true, traditional ways of food retailing. it also brings the threat of moving the industry into non–sustainable This movement of “cross-pollination” in the industry is not neces- and unsuccessful directions. In many situations, if an executive is sarily a bad thing, as it would bring new and different perceptions and motivated to learn about the food retailing industry (and all of its views of retail. The problem has been that these new immigrants to the intrinsic characteristics), the best of both worlds can be attained, and grocery/food industries do not take the time to learn and understand the potential for continued and sustained growth can be realized. It how food retailing, especially produce retailing, functions successfully. is only common sense and logic that confirms this correlation. The Their approach is to make all aspects of food retailing fit neatly into the term “one-size-fits-all” does not apply in this situation, and the concepts that they have learned in a CP company. For us veterans, we philosophy can be dangerous to the industry as a whole. This is yet have learned through years of experience that this is not necessarily another case where the theory that “knowledge is power” is proven; successful and that these categories don’t neatly fit into this model. and in this case, the key to success in food retailing. pb

By Don Harris Don Harris is a 38-year veteran of the produce industry, with most of that time spent in retail. He has worked in every aspect of the industry, from “field-to-fork” in both the conventional and organic arenas. Harris is presently consulting on all subjects of retail, category development and sales strategies, among others. Comments can be directed to [email protected]

158 PRODUCE BUSINESS • SEPTEMBER 2013 Pundit.qxd_Layout 1 8/22/13 6:09 PM Page 1

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 on the “Subscribe Today” button and receive a daily copy of Jim Prevor’s Perishable Pundit via e-mail. Euro Market_Layout 1 9/9/13 7:09 PM Page 1

EUROPEAN MARKET REASONS TO INVEST IN THE EUROPEAN MARKET

he general wisdom these days is that the management skills and expertise to ensure effective management of Treal growth in U.S. fresh produce exports whole supply chains for specific fruits. Supply chains that follow “tradi- will come from fast emerging markets. It tional” structures are the correct path for inventory that is produced and is only right that new opportunities are sought sold to packers or co-operatives (or other intermediaries that consolidate out in the emerging economies (and the U.S. products) — who then sell to wholesale markets and from there to inde- has been successful with this tactic). While there pendent outlets. Where there is over-supply, such a strategy can only is potential danger to switching commercial, lead to an overall focus on price. For U.S. exporters, this is to be avoided. technical and promotional attention to these The European fresh fruit supply chain embraces a range of company markets too quickly and too exclusively, the structures, from family-owned companies to listed public organizations hard-won markets in more mature economies and co-operatives. In many cases, these companies are vertically inte- (such as the EU, Canada and Japan) may also be neglected. grated with activities encompassing growth throughout distribution, Europe is a classic example. It is exercising greater control over still one of the biggest economic business processes, and focusing markets in the world — 500 million on forming strong relationships consumers in 28 countries — with It is beneficial for the U.S. fresh produce with customers. Such develop- relatively high levels of consumer sector to adopt a well defined portfolio ments facilitate communication affluence, functional legal and to approach international markets. and the development of innova- banking systems, good communi- tive products or services to meet cations and physical customer and consumer needs. infrastructure, and transparent Successful U.S. exporters to Euro- routes to market through the leading retailers. Why would a serious U.S. pean markets will need to display a combination of the following exporter not be tempted to look at this market with interest? characteristics: EU retailers, such as Tesco, Carrefour, Casino, ALDI and Lidl, will be • Align closely to leading retail customers, and invest on a contin- highly influential in the development of retailing in emerging markets uous basis in new facilities for production, procurement, storage as well and will take their knowledge, expertise and supply chain disci- and distribution. plines from Europe with them. The influence of how these EU retailers • Carve a niche in retail business to achieve a degree of importance operate and develop business will be transparent for U.S. exporters, even to the customer base, rather than being one of many potential for those not trading in the EU. suppliers from which a retailer can pick and choose. While the macro economic uncertainty in the EU of the past few • Create a system to supply customers on an annual basis, and years cannot be down-played, alternative markets in Asia and Latin invest in marketing and promotional support to aid customers America are not immune from these pressures either. Since 2007, indus- (and in some cases, private-label brands). tries with an array of customers across geographic markets have typically • Develop a streamlined supply chain that removes any unneces- performed better than ones focused on single markets or regions. In sary costs and inefficiencies. order to access the growth opportunities of the future, the U.S. produce Even the best produce supply businesses (both in Europe and in industries will have to continue to decrease their focus and dependence other countries) that have managed to achieve what has, in effect, on domestic markets and the allure of other markets in the Americas become the “key success factors,” are not immune to the ongoing pres- and Asia. The EU can be part of this. sures from their customers. Of course, the impact of the global financial crisis was severe on the It is beneficial for the U.S. fresh produce sector to adopt a well defined EU fresh produce sector. The effects resulted in: intense competition portfolio to approach international markets. The process begins with between retailers and foodservice companies, ongoing and accelerated examining how much these respective markets are wanted; and just as rationalization of the trade structure at all levels, commercial and tech- importantly, how much these markets want one’s business. Then adopt nical pressure for suppliers, a change in established consumer behaviour, a strategy to maintain, build, invest and treat as an opportunistic venture. and in some cases, a “trading down” by consumers in areas of product One can achieve this by examining and researching key opportuni- choice and selection. The impact was felt across the supply chain. ties and developing a high level of economic, political, social and market Within Europe, leading produce companies from all sources were understanding. With new market opportunities consistently opening forced to improve the efficiency of their supply chains as a result of their around the world, investment in this type of analysis can result in dealings with key retail customers. As consumer demand rapidly changes growers and exporters picking the right markets, at the right time. and businesses grow, large-scale grocery retailers implement category Europe should be one of them. pb

By John Giles John Giles is a divisional director with Cheshire, U.K.-based Promar International, a leading agri-food supply and demand chain consulting company and a subsidiary of Genus plc. Giles is also the chairman of the Food, Drink & Agriculture Group of the Chartered Institute of Marketing. He has carried out a good deal of work in the international fresh and processed produce sectors and this includes work in the EU, Russia, North, Latin and Central America, Middle East, Asia and Africa. For questions, contact Giles via e-mail: [email protected]

160 PRODUCE BUSINESS • SEPTEMBER 2013 PBH Awards_Layout 1 8/22/13 11:35 AM Page 1

TURN YOUR MARKETING INTO AN AWARDING EXPERIENCE

Right now, and on through June 7, 2014, we’re taking entries for the 26th Annual Marketing Excellence Awards Program, presented by PRODUCE BUSINESS. The awards recognize excellence in marketing in each of six categories: retailers, foodservice, wholesalers, shippers, commodity organizations and allied service/product providers. Print, broadcast and other media are eligible to win.

To participate, send us the following for each entry:

1. Your name, company, address and phone.

2. Type of business.

3. Names and dates of promotion (must have taken place between June 1, 2013 and June 1, 2014). 2013 MARKETING EXCELLENCE 4. Promotion objectives. AWARD WINNERS 5. Description of promotion. 6. Promotion results (sales or traffic increases, media attention). What made this program a success? • Avocados from Mexico • Awe Sum Organics 7. All support materials used in the promotion – such as POP, ads, posters, TV commercials. • California Avocado Commission • Columbia Marketing International High-resolution images to illustrate the promotion are encouraged. (Please do not send any produce) • Concord Foods • Idaho Potato Commission • Mann Packing Company, Inc. SEND ENTRIES TO: • National Mango Board PRODUCE BUSINESS MARKETING • Network for a Healthy California EXCELLENCE AWARDS • Ocean Mist Farms P.O. Box 810425 • Boca Raton, FL 33481-0425 • Sunkist Growers Deadline for entries is June 7, 2014 • University of Massachusetts Amherst For additional information, call: 561-994-1118, Ext. 101 VOI_Layout 1 9/9/13 7:32 PM Page 1

VOICE OF THE INDUSTRY RETAIL AND FOODSERVICE COMMONALITIES AND DIFFERENCES

n my 30-year career as a merchandising executive for world, meeting and exceeding budgets along with strategic targets is Iregional, national and global retailers, as well as food- difficult. Doing so without compromising quality, freshness, brand repu- service distributors, I am often asked, “What are the tation, or customer service is a balancing act for all. similarities and differences in working for a retail grocer To highlight the differences, there are some key aspects of foodservice and a foodservice distributor?” The similarities begin merchandising to understand. with category management, in six key areas: In foodservice, a popular model for distribution is the broadline Vendor Management — having the right vendors foodservice provider. Within this segment, these distributors sell to inde- work collaboratively to understand and service the customer is essential. pendent restaurants, healthcare and hospitality facilities, government In addition, both parties must be transparent in their efforts to take operations and educational institutions. The way they approach each unnecessary costs out of the system and work as true partners to achieve segment is different. They typically approach independent restaurants success. with commissioned sales associates. Produce is just a portion of the array Pricing the Customer — balancing the right items at the right price of over 30,000 items to sell. In this approach, the produce department is in each market is a necessity in brought to the customer, who is today’s competitive marketplace. typically a chef, via a delivery You must be nimble and under- truck along with the rest of the stand your positioning within the With many similarities and only a restaurant’s needs. marketplace. few differences between retail and These sales associates have a Promotional Planning — very narrow window of time, developing a strategy for securing foodservice operations, understanding typically 5 to 10 minutes to seasonally relevant items at a cross functionality will lead to success present these items to each chef. competitive price, with a proper in a competitive environment. The salesman’s training and confi- sales forecast, is essential wherever dence in the produce program you are. will determine his or her success Assortments — obtain the in selling to customers. Orders for right mix of items, understand performance, and grasp opportunities these customers are typically five to 15 cases, two to three times per week. that you might be missing. Both segments are driven to satisfy the To support this approach, foodservice is much more focused on customer. selling private label versus selling a branded product. When your Strategic Category Planning — develop a plan for where you want commissioned salesmen are selling to the customer, they are looking for to take a category in the next two to three years. For example, seed and competitive advantages, whether it’s in the quality, price, food safety, variety development or launching new and innovative processes need yield or a balance of all these items. Key items are typically referred to as to happen wherever you are. the PLOT (Potatoes, Lettuce, Onions and Tomatoes) category. These are Innovation — the process of continually differentiating yourself the items that are typically in the highest volume. Customers will within the marketplace is essential. One must anticipate and react to the compare you with your competitors’ prices in a process known as market trends. “spread sheeting.” The philosophy is: If you’re right with the PLOT, you Another similarity lies with food safety and quality assurance. Today, will get the rest of the chef’s order. having the right traceability program and FSQA supply-chain process in The approach to selling the healthcare and hospitality facilities, place is a necessity prior to entering the marketplace. government operations, and educational institutions today is all about Supply chain management is also comparable between retail and leveraging scale since these customers typically participate in purchasing foodservice management. Product shipping cost is impacting how all programs to leverage scale. These programs are typically negotiated by companies operate. New regulations continue to change the game. New a contracting team on the behalf of these customers and delivered via the supply chain solutions are becoming available whether it is consolidation same broadline approach that was described earlier. These accounts typi- solutions, rail or freight. cally take two to three deliveries per week, with the central driving force Talent management and training is another parallel relationship. being the need to push efficiency and supply chain costs out of the Hiring and retaining the right individuals is fundamental wherever you system. are. Finding qualified, passionate associates is difficult. Keeping and In summation, whichever side I have worked on — foodservice or developing them is essential. Balancing the demands to be more produc- retail — today’s environment is competitive. My advice is to work cross- tive and maintaining a positive work environment is a critical part of functionally with all members of the supply chain to generate the most any company’s success. efficient models, and be in the best position for the future. The final similarity is budgeting and P&L accountability. In today’s Good selling! pb

By Craig Carlson Craig Carlson is a 30-year veteran of both the retail and foodservice industry. He worked successfully with all members of the supply chain to build best-in-class produce programs. Carlson is presently consulting in all matters of retail and foodservice on strategy and business development.

162 PRODUCE BUSINESS • SEPTEMBER 2013 PMA_Ad 8/22/13 11:44 AM Page 1 Info Showcase_Layout 1 9/18/13 6:34 PM Page 1

INFORMATION SHOWCASE

Receive supplier information fast using the PRODUCE BUSINESS Information Showcase. Here’s How: SEPTEMBER 2013 Contact the advertiser directly via the Website, e-mail, or phone listed in the ad.

COMPANY PAGE # PHONE WEBSITE COMPANY PAGE # PHONE WEBSITE Alpine Fresh...... 146 ...... 800-292-8777 ...... www.alpinefresh.com L&M Companies, Inc...... 61 ...... 509-698-3881 ...... www.lmcompanies.com Anthony Vineyards, Inc...... 49 ...... 460-391-5400...... www.anthonyvineyards.com M. Levin & Co., Inc...... 102 ...... 800-523-1986 ...... www.mlevinco.com Associated Potato Growers, Inc.....145 ...... 800-437-4685 ...... www.apgspud.com LGS Specialty Sales, Ltd...... 134 ...... 800-796-2349 ...... www.lgssales.com Maurice A. Auerbach, Inc...... 146 ...... 01-807-9292...... www.auerpak.com Maine Potato Board ...... 144 ...... 207-769-5061 ...... www.mainepotatoes.com Ayco Farms, Inc...... 146 ...... 954-788-6800 ...... www.aycofarms.com Mann Packing Company, Inc...... 11 ...... 800-884-6266 ...... www.veggiesmadeeasy.com B.R.S Produce Co...... 94 ...... 215-467-7180 G. Mendez & Co., Inc...... 58-59 ...... 520-281-4995 Baero North America, Inc. ....Floral 8-9 ...... 314-692-2270...... www.baerousa.com Michigan Apple Committee ...... 84 ...... 800-456-2753 ...... www.michiganapples.com Baero North America, Inc...... 9 ...... 314-692-2270...... www.baerousa.com Micky’s Minis Flora Express ....Floral-7 ...... 800-753-6464 ...... www.mickyminis.org Bard Valley Medjool MIXTEC Group...... 34 ...... 626-440-7077 ...... www.mixtec.net Date Growers Assn ...... 30 ...... 800-794-4424 ...... www.naturaldelights.com/retail Nardella, Inc...... 96 ...... 215-336-1558 ...... www.nardellainc.com Basket Ease ...... 69 ...... 800-733-3168 ...... www.basketease.com New York Apple Association, Inc.....77 ...... 585-924-2171 ...... www.nyapplecountry.com Bland Farms ...... 90 ...... 800-440-9543 ...... www.blandfarms.com New York Apple Sales, Inc...... 80 ...... 518-477-7200...... www.newyorkapplesales.com Blue Book Services...... 65 ...... 630-668-3500 ...... www.producebluebook.com Niagara Fresh Fruit Co...... 78 ...... 716-778-7631 ...... www.niagarafreshfruit.com Borton & Sons Inc...... 153 ...... 509-966-3905...... www.bortonfruit.com Paramount Citrus Association ....Cover ...... 213-612-9957 ...... www.paramountcitrus.com Brooks Tropicals ...... 73 ...... 800-327-4833...... www.brookstropicals.com Pavero Cold Storage Corp...... 79 ...... 800-435-2994 ...... www.paverocoldstorage.com Jack Brown Produce, Inc...... 84 ...... 616-887-9568 ...... www.jackbrownproduce.com PDG Produce...... 56 ...... 520-281-2605 Bushwick Commission Co., Inc. ....144 ...... 800-645-9470 ...... www.bushwickpotato.com Penang Nursery...... Floral-5 ...... 407-886-2322 ...... www.penangnursery.com Canadian Produce Peri & Sons Farms ...... 88 ...... 775-463-4444 ...... www.periandsons.com Marketing Association ...... 40 ...... 613-226-4187...... www.cpma.ca The Perishable Specialist, Inc...... 147 ...... 305-477-9906....www.theperishablespecialist.com Capital City Fruit Co., Inc...... 32 ...... 515-981-5111 ...... www.capitalcityfruit.com Peruvian Asparagus CarbAmericas...... 146 ...... 954-786-0000...... www.carbamericas.com Importers Association ...... 147 ...... 817-793-3133 C.H. Robinson Worldwide, Inc...... 121 ...... 877-679-2933 ...... www.chrobinson.com Philadelphia Fresh Chelan Fresh Marketing ...... 43 ...... 509-682-3854 ...... www.chelanfresh.com Food Terminal Corp...... 113 ...... 215 336-3003 ...... www.pwpm.net Collotti & Sons, Inc...... 98 ...... 215-389-3335 Philadelphia Fresh Columbia Marketing Food Terminal Corp...... 114 ...... 215 336-3003 ...... www.pwpm.net International ...... 151 ...... 509-663-1955 ...... www.cmiapples.com Philabundance ...... 93 ...... 215-339-0900 ...... www.philabundance.org Coosemans Philadelphia, Inc...... 97 ...... 215-334-3634 ...... www.coosemans.com Pinto Brothers, Inc...... 102 ...... 800-523-4047 ...... www.pintobrothers.com The Cranberry Network LLC ...... 152 ...... 715-422-0410 ...... www.thecranberrynetwork.com Pleasant Valley Potato, Inc...... 143 ...... 208-337-4194 ...... www.pleasantvalleypotato.com CrunchPak ...... 47 ...... 509-782-7753 ...... www.crunchpak.com Pom Wonderful ...... 13 ...... 800-380-4656 ...... www.pomwonderful.com Crystal Valley Foods ...... 146 ...... 800-359-5631...... www.crystalvalleyfoods.com Pom Wonderful ...... 6-7 ...... 800-380-4656 ...... www.pomwonderful.com Curry & Company ...... 87 ...... 800-929-1073 ...... www.curryandco.com Potandon Produce...... 141 ...... 800-767-6104...... www.klondikebrands.com Customized Brokers ...... 146 ...... 305-471-8989...... www.customizedbrokers.net Primavera Marketing, Inc...... 79 ...... 209-931-9420 ...... www.primaveramarketing.com Del Monte Fresh Produce ...... 168 ...... 800-950-3683...... www.freshdelmonte.com Procacci Bros. Sales Corp...... 103 ...... 800-523-4616...... www.procaccibrothers.com Des Moines Truck Brokers, Inc...... 118 ...... 515-981-5115 ...... www.dmtb.com Produce for Better Dole Fresh Fruit Company ...... 124 ...... 818-879-6600...... www.dole.com Health Foundation...... 85 ...... 302-235-2329 ...... www.pbhfoundation.org Dole Fresh Vegetable Co...... 2 ...... 800-333-5454 ...... www.dole.com/saladkits Produce Marketing Association ....163 ...... 302-738-7100...... www.pma.com dProduce Man Software ...... 121 ...... 888-PRODMAN ...... www.dproduceman.com Progressive Marketing Group ...... 147 ...... 323-890-8100...... www.pmgstrategic.net Eclipse Berry Farms, LLC ...... 49 ...... 310-207-7879 ...... www.eclipseberryfarms.com Rice Fruit Company...... 79 ...... 800-627-3359 ...... www.ricefruit.com Fierman Produce Exchange ...... 32 ...... 718-893-1640 Riveridge Produce Marketing, Inc...79 ...... 800-968-8833...... www.riveridgeproduce.com Floral Business ...... 18 ...... 561-994-1118 ..www.floralbusinessmagazine.com Riveridge Produce Marketing, Inc...82 ...... 800-968-8833...... www.riveridgeproduce.com Florida Elite Produce ...... 24 ...... 813-707-0075 Rosemont Farms Corporation...... 147 ...... 877-877-8017 ...... www.rosemontfarms.com Florida’s Natural Growers ...... 25 ...... 800-237-7805www.floridasnaturalfoodservice.com Ryeco, Incorporated ...... 101 ...... 215-551-8883 ...... www.ryeco.com Foodsource Organics ...... 49 ...... 800-366-8755 ...... www.buyfoodsource.com Setton Farms ...... 157 ...... 559-535-6050...... www.settonfarms.com Fresh Origins, LLC...... 48 ...... 760-736-4072...... www.freshorigins.com Shuman Produce, Inc...... 89 ...... 912-557-4477...... www.realsweet.com Fresh Produce Association Sigma Sales ...... 64 ...... 520-281-1900 ...... www.sigmasales.com of The Americas...... 66 ...... 520-287-2707 ...... www.freshfrommexico.com South Wind Farms...... 142 ...... 208-436-8164 ...... www.southwindpotatoes.com Fresh Taste Produce Southern Specialties...... 147 ...... 954-784-6500 ...... www.southernspecialties.com Limited Canada ...... 95...... 16-255-2361 ...... www.freshtasteusa.com Spice World, Inc...... 40 ...... 800-433-4979 ...... www.spiceworldinc.com Fresherized Foods...... 75 ...... 817-509-0626...... www.eatwholly.com Sun Date USA ...... 49 ...... 460-391-5400...... www.anthonyvineyards.com Genpro Transportation Sun Valley Group ...... Floral-11 ...... 800-747-0396 ...... www.tsvg.com Services, Inc...... 117 ...... 800-243-6770 ...... www.genproinc.com Sun-Glo of Idaho...... 140 ...... 208-356-7346 ...... www.sungloidaho.com Giorgio Fresh Co...... 98 ...... 800-330-5711 ...... www.giorgiofoods.com Sun-Maid Raisins ...... 5 ...... 800-786-6243 ...... www.sunmaid.com The Giumarra Companies...... 74 ...... 213-627-2900 ...... www.giumarra.com SureHarvest...... 38 ...... 831-477-7797 ...... www.sureharvest.com Gourmet Trading Company...... 147 ...... 310-216-7575 ...... www.gourmettrading.net Tambo Sur ...... 147 ...... 954-943-1572 GPW Direct Consumer LLC ....Floral-16 ...... 616-847-1552 Tanimura & Antle, Inc...... 29 ...... 800-772-4542 ...... www.taproduce.com Grimmway Farms...... 41 ...... 661-845-9435 ...... www.grimmway.com Target Interstate Systems, Inc...... 116 ...... 800-338-2743 ...... www.targetinterstate.com Grower Alliance, LLC ...... 54...... 520-761-1921...... www.groweralliance.com Terra Bella ...... 157 ...... 559-535-6050...... www.settonfarms.com GS Distribution ...... 105 ...... 215-463-8000 ...... www.gsdistrib.com Thermal Technologies, Harris Produce Vision...... 80 ...... 269-903-7481 Incorporated ...... 37 ...... 803-691-8000...... www.gotarpless.com Harvest Sensations ...... 147 ...... 305-591-8173...... www.harvestsensations.com Top Banana ...... 21 ...... 718-328-6700...... www.topbanananyc.com Hass Avocado Board...... 71 ...... 949-341-3250 ...... www.hassavocadoboard.com United Fresh Produce Assoc...... 50 ...... 202-303-3400 ...... www.unitedfresh.org Hendrix Produce, Inc...... 90 ...... 800-752-1551...... www.hendrixproduce.com United Fresh Produce Assoc...... 154 ...... 202-303-3400 ...... www.unitedfresh.org Hess Brothers Fruit Co...... 78 ...... 717-656-2631 ...... www.hessbros.com The USA Bouquet Co...... Floral-13 ...... 786-437-6502 ...... www.usabq.com High Point Marketing, Inc...... 31 ...... 201-447-9008 John Vena, Inc...... 104 ...... 215-336-0766...... www.johnvena.com High Point Marketing, Inc...... 33 ...... 201-447-9008 Village Farms...... 22 ...... 888-377-3213 ...... www.villagefarms.com Idaho Potato Commission ...... 137 ...... 208-334-2350...... www.idahopotato.com/retail Vision Import Group LLC ...... 45...... 201-968-1190 ...... www.visionimportgroup.com IPR Fresh...... 63 ...... 520-281-2351 ...... www.iprfresh.com Vision Produce Company ...... 53 ...... 520-223-8920....www.visionproducecompany.com J-C Distributing, Inc...... 55 ...... 520-281-2967 Warren Wheeler Inc ...... 24 ...... 813-239-3353 Jasmine Vineyards, Inc...... 48...... 661-792-2141 ...... www.jasminevineyards.com JC Watson ...... 35 ...... 208-722-6655 E.W. Kean Co., Inc...... 94 ...... 215-336-2321 We Are Many Foundation ...... 119 ...... 877-319-9613 ...... www.wearemanyfoundation.org Kern Ridge Growers, LLC ...... 34 ...... 661-854-3156...... www.kernridge.com Weis-Buy Farms, Inc...... 24 ...... 239-433-3530 ...... www.weisbuy.com Keystone Fruit Marketing, Inc...... 90...... 717-597-2112...... www.keystonefruit.com Well-Pict Berries ...... 49 ...... 831-722-3871 ...... www.wellpict.com Keystone Fruit Marketing, Inc...... 147...... 717-597-2112...... www.keystonefruit.com Western Fresh Marketing ...... 49 ...... 559-662-0301....www.westernfreshmarketing.com Keystone Fruit Marketing, Inc...... 79...... 717-597-2112...... www.keystonefruit.com Wilson Produce...... 60 ...... 520-375-5755 ...... www.wilsonproduce.com T.M. Kovacevich - Yakima Fresh LLC ...... 149 ...... 800-541-0394 ...... www.yakimafresh.com Philadelphia, Inc...... 99 ...... 215-336-3160...... www.tmkproduce.com Zespri International...... 15 ...... 650-368-2870 ...... www.zesparikiwi.com

164 PRODUCE BUSINESS • SEPTEMBER 2013 40 under 40_Layout 1 9/16/13 12:13 PM Page 1

PRODUCE BUSINESS is accepting nominations for its Tenth Annual 40-Under-Forty Project, which recognizes the produce industry's top young leaders. Honorees will be selected based on their professional accomplishments, demonstrated leadership and industry/community contributions. To be eligible, nominees must be under the age of 40 as of January 1 (People born after January 1, 1974). To nominate someone, please fill out this form by April 12, 2014, and fax back to 561-994-1610 OR go to our website at producebusiness.com and look for the 40 Under Forty icon to link to the online application. Once nominated, the candidate will receive forms from us to fill out asking for detailed information. A candidate only needs to be nominated one time. Multiple nominations will have no bearing on selection. ABOUT THE NOMINEE: Nominee's Professional Achievements: ______First Name ______Last Name ______Approximate Age ______Company ______Position ______Nominee's Industry/Community/Charitable Activities: Address ______City ______State ______Postal Code ______Country ______Phone ______Fax ______ABOUT THE NOMINATOR: E-mail ______First Name ______Last Name ______In 100 words or less, describe why this person should be nominated: Company ______(You can use a separate sheet for this) Position ______Address ______City ______State ______Postal Code ______Country ______Phone ______Fax ______E-mail ______

Nominator information is for our use only and will not be shared with candidate or have a bearing on selection. For more information email: [email protected] Blast_Layout 1 9/9/13 7:11 PM Page 1

BLAST FROM THE PAST

A Man On A Mission young Floyd Griffin (pictured to the left) graduated from the “The photo shows where we had the beginnings of the company,” University of Arizona with a chemistry degree and began says Dan Canales, Misionero’s vice president of sales and marketing. “We Aworking with a pesticide company. Every day he would come started out as a traditional commodity company in the early years of the home to his wife and children, exposing them to the harsh chemicals 1970s when we produced cauliflower and broccoli, lettuce, Iceberg, leaf that were on his clothes. He felt that there was a better way to grow lettuce and mixed vegetables.” produce and a way to use fewer chemicals on products. “I’d say about 24 years ago, we got involved with value-added. We Utilizing his chemistry background, he invented an started out with a washed and trimmed leaf product,” says Canales. application/spray that could be applied by growers and that would be “Probably around 21 years ago, we started to get into organics. Now safer for the environment. Eventually, Shell Oil Company bought the our company is 100 percent dedicated to value-added products,” invention. At that point, Griffin examined his life and future by think- explains Canales. ing about what he wanted to do for his career and his family. There’s no question that value-added and organics were the biggest While visiting the Soledad Mission in California, Griffin was inspired changes for Misionero. “We literally got out of the commodity game 100 by the Mission’s history and ambience. He decided to move to the cen- percent about 10 years ago,” says Canales. “It was a hard decision, but it tral coast and started a farming operation. From there, Mission Packing was the better decision for the company. We saw where this business was formed in 1973 and eventually evolved into Misionero Vegetables. headed, and our timing was right.” Floyd’s son, Stephen Griffin (pictured to the right) eventually fol- In addition to following Floyd’s philosophy to do what’s right for lowed in his father’s footsteps once he graduated from college. He began future generations and their food, Misionero works closely with its seed working alongside his dad until his father’s passing in 2006. Now Stephen partners to develop products that are healthy and give consumers what is the company’s current president and CEO. they are looking for in the lettuce category. “The photo shows my father and me in a cauliflower field looking at “We have close relationships with our customers who in turn give us the quality of the produce,” says Stephen. “The shot was taken near the a lot of feedback in the sense of what’s going on in the marketplace. What Soledad Mission area in the mid ’70s. My father was a person who rec- people are really looking for,” explains Canales. ognized the greatest asset to a company was not found on the balance “We realized a couple years ago that there are two things that keep sheet but it could be found working alongside him in the field or office.” coming back into play: nutrition and flavor. At any given time, we have “As we all know, there are not many things that last 40 years. I know at least 10 new product ideas in the loop, and we see what makes the Misionero wasn’t built in a vacuum. Forty years ago, my father had a cut. We factor in those two key components with a lot of other ele- vision; the vision was to start a company that treated its employees with ments like convenience,” says Canales. respect and dignity,” says Stephen.

The Blast from the Past is a regular feature of P RODUCE B USINESS . We welcome submissions of your old photos, labels or advertisements along with suggested captions. Please send materials to: Editor, P RODUCE B USINESS , P.O. Box 810425, Boca Raton, FL 33481-0425, or e-mail [email protected]

166 PRODUCE BUSINESS • SEPTEMBER 2013 PBH PeriNews_Layout 1 8/22/13 11:37 AM Page 1

PerishableNews.com is an outlet for news about all the perishable categories typically featured in a retail store: DAIRY, DELI, BAKERY, MEAT & POULTRY, SEAFOOD, PRODUCE, FLORAL Plus we cover top-level happenings in Retail and Foodservice that are of special interest to a perishable food executive at a supermarket or other retail chain and at a foodservice chain operation or foodservice distributor. Del Monte_Ad 8/22/13 9:50 AM Page 1