inside...PUNDIT LOOKS AT CHILD LABOR •SUPER BOWL MARKETING •MEXICAN PRODUCE • FLORIDA STRAWBERRIES •TEXAS PRODUCE •FLORIDA CITRUS POTATO AND ONION CATEGORY MANAGEMENT • CHILEAN GRAPES •THE PALLET PUZZLE POWER OF PACKAGING • REGIONAL MARKET PROFILE:BOSTON •FLORAL TRANSPORTATION HEALTH DRIED FRUIT AND NUTS:ALMONDS INITIATIVES Starts on page 51

DEC. 2009 • VOL. 25 • NO. 12 • $9.90 Reader Service # 30 DEC. 2009 • VOL. 25 • NO. 12

FEATURES

COVER STORY PRODUCE ISSUES AND TRENDS REPORT 2010 More than 20 industry leaders identify 10 issues that will affect us all...... 16 COMMENTARY THE FRUITS OF THOUGHT Lessons From The Year’s Great Issues ....8 27 RETAIL PERSPECTIVE Contract Gray Areas...... 108 EUROPEAN MARKET GET IN THE GAME WITH SUPER Freshfel: Promoting Produce In The BOWL-THEMED PRODUCE PROMOTIONS ...... 23 European Union — Part I ...... 110 Super Bowl promotions help produce retailers develop happy customers and future sales.

VOICE OF THE INDUSTRY MEXICAN PROMOTION KICKS INTO HIGH GEAR ...... 27 Let Variety Be Your Guide ...... 112 Retailers and other buyers can take advantage of a variety of promotion and support programs backing the Mexican industry.

TEXAS PRODUCE INDUSTRY ADAPTS TO ADVERSITY ...... 38 The Texas produce industry continues to evolve as it recovers from past SPECIAL FEATURES weather disasters and develops stronger shipping ties with Mexican growers. FROM THE PAGES OF THE PERISHABLE PUNDIT MARKETING FLORIDA STRAWBERRIES...... 41 When Child Labor Laws Don’t These red beauties offer consumers a bright, fragrant treat when winter rolls around. Necessarily Help Children ...... 14

BOSTON MARKET PROFILE: FOCUSING ON WHAT THEY DO BEST ...... 83 Boston wholesalers do whatever it takes to maintain the business they love.

BOSTON RESTAURANT PROFILE: L’ESPALIER ...... 95 One of Boston’s finest restaurants focuses on fresh, farm-grown produce.

BOSTON RETAIL PROFILE: DAVE’S MARKETPLACE ...... 96 Pride in a job well done. 38 41

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DECEMBER 2009 • PRODUCE BUSINESS 3 DEC. 2009 • VOL. 25 • NO. 12

IN EVERY ISSUE

THE QUIZ ...... 6 67

WASHINGTON GRAPEVINE ...... 7

RESEARCH PERSPECTIVES ...... 10 FEATURES CATEGORY DEVELOPMENT PRACTICES REVEAL COMMENTS AND ANALYSIS ...... 11 VALUE OPTION OF POTATOES AND ONIONS ...... 46 Is it time to refresh these traditional categories in your stores? PRODUCE WATCH ...... 12 CHILEAN GRAPES PROVIDE STABLE PROFITS ...... 67 Tried-and-true merchandising tips continue to reap success with Chilean grapes. FLORAL WATCH ...... 104 THE PALLET PUZZLE: (PART I OF II)...... 72 INFORMATION SHOWCASE .....114 With an ever increasing number of options and environmental concerns to take into consideration, the pallet business is expanding at breakneck speeds.

BLAST FROM THE PAST ...... 114 POWER IN PACKAGING ...... 75 PMA awards eight companies with its coveted Impact Award for Excellence in Produce Packaging.

78 99

72 DEPARTMENTS MERCHANDISING REVIEWS: Warm Up That Wintertime Ring With Florida Citrus...... 78 Plenty of variety and opportunities to shine makes Florida citrus a serious category contender.

DRIED FRUIT AND NUTS: Almonds Find Success In Produce Department ...... 99 The almond’s health image and enhanced flavors make it a perfect fit with produce.

FLORAL AND FOLIAGE MARKETING: Airports Connect to Floral Departments ...... 101 With efforts to bring floral products from Central and South America directly to more U.S. airports, will retailers look to the skies for shrink solutions?

114 HEALTH INITIATIVES SUPPLEMENT ...... 51

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4 PRODUCE BUSINESS • DECEMBER 2009 800-223-8080 • 718-991-5900 www.darrigony.com

Reader Service # 82 PRODUCE QUIZ

DEC. 2009 • VOL. 25 • NO.12 THIS MONTH’S WINNER: Having grown up surrounded by fresh President & Editor-in-Chief • JAMES E. PREVOR [email protected] fruit and vegetables, it’s no surprise that Tri- cia Taplac ended up in the produce busi- Publisher/Editorial Director • KEN WHITACRE Tricia Taplac ness, nor that she has been at her current [email protected] Buyer/Inspector position at Supervalu for 13 years. “My dad Special Projects Editor • MIRA SLOTT Supervalu was a small fruit and vegetable shipper in [email protected] Fresno, CA Reedley, CA, so I started off helping out in Assistant Editor • AMY SHANNON the fields and the packing shed,” she says. [email protected] Before joining the Supervalu team, where she is responsible for buying fresh vegeta- Assistant Editor • JENNIFER LESLIE KRAMER [email protected] bles and strawberries for the company’s How To Win northern region’s chain stores, Tricia worked Circulation Manager • KELLY ROSKIN To win the PRODUCE BUSINESS Quiz, the first with the USDA for five seasons while in col- [email protected] thing you have to do is enter. The rules are lege. “I had the opportunity to do some Executive Assistant • FRAN GRUSKIN simple: Read through the articles and international business as an inspector for Fuji [email protected] advertisements in this issue to find the apples that were being exported from Brazil answers. Fill in the blanks corresponding to the United States,” she remarks. European Bureau Chief • ROBERT ZWARTKRUIS to the questions below, and either cut along [email protected] the dotted line or photocopy the page, and Tricia has relied on PRODUCE BUSINESS for send your answers along with a business the past 10 years to keep her updated on Production Director • DIANA LEVINE [email protected] card or company letterhead to the address industry happenings. “It’s incredibly infor- listed on the coupon. The winner will be mative,” she says. “I count on it to keep in Production Leader • JACKIE TUCKER chosen by drawing from the responses the loop about new packaging and other received before the publication of our industry developments.” Production Department FREDDY PULIDO February issue of PRODUCE BUSINESS. The RODUCE USINESS As the winner of the P B JOANNA ARMSTRONG winner must agree to submit a color photo quiz, Tricia, an avid golfer, will receive a 19- to be published in that issue. Director of Online Communications piece golf set from Zevo. JASON KAHAN WIN A CUISINART 4-IN-1 GRILL/GRIDDLE Trade Show Coordinator • JACKIE LOMONTE AND PANINI PRESS [email protected] This stainless steel grill/griddle comes with two sets of interchangeable, dish- Contributing Editors washer-safe cooking plates. Floating hinges adjust to the thickness of a variety CAROL BAREUTHER, THERESA BRAINE, JAN FIALKOW, of foods and offer an extra-large open grill, while temperature controls assure JACKIE LIEBERMAN, JODEAN ROBBINS DUARTE, food is properly cooked. BARBARA ROBISON Advertising QUESTIONS FOR THE DECEMBER ISSUE ERIC NIEMAN, ASSOCIATE PUBLISHER [email protected] 1) What is the telephone number for the Farmer’s Best sales office? ______JENNIFER JORDAN [email protected]

2) How many varieties of squash does Frank’s Distributing offer? ______SANDY LEE [email protected] BILL MARTIN [email protected] 3) What is Donna Fagundes’ e-mail address at Cal-King? ______MELISSA MILLER [email protected] ELLEN ROSENTHAL [email protected] 4) How many square feet is Garden Fresh Salad Co.’s new facility? ______Floral Department Marketing E. SHAUNN ALDERMAN [email protected] 5) Name three employees at S. Strock & Co. Inc.______Send insertion orders, payments, press releases,photos, letters to the editor, etc., to: ______PRODUCE BUSINESS P.O. Box 810425 Boca Raton, FL 33481-0425 6) In what Florida city does East Coast Growers and Packers Inc. have an office? ______Phone: 561-994-1118 Fax: 561-994-1610 E-mail: [email protected] PRODUCE BUSINESS is published by Phoenix Media Network, Inc. This issue was: ❏ Personally addressed to me ❏ Addressed to someone else James E. Prevor, Chairman of the Board P.O. Box 810425 Name ______Position ______Boca Raton, FL 33481-0425 Phone: 561-994-1118 Fax: 561-994-1610 Company ______Entire contents © Copyright 2009 Phoenix Media Network, Inc. Address ______All rights reserved. Printed in the U.S.A. City______Publication Agreement No. 40047928 State ______Zip ______Phone ______Fax ______Photocopies of this form are acceptable. Please send answers to: DECEMBER QUIZ PRODUCE BUSINESS • P.O. Box 810425 • Boca Raton, FL 33481-0425

6 PRODUCE BUSINESS • DECEMBER 2009 WASHINGTON GRAPEVINE A report on the inside happenings of government.

SUBMITTED BY ROBERT GUENTHER, SENIOR VICE PRESIDENT, PUBLIC POLICY • UNITED FRESH PRODUCE ASSOCIATION A Step Forward for Food Safety: S.510

f the FDA Food Safety Modernization multiple aspects of the food safety land- product upon FDA’s request. Act of 2009 (S.510) — legislation that scape that remain consistent with these poli- This legislation is most certainly an stands to dramatically alter the food cy priorities and expand FDA’s reach in a aggressive and comprehensive approach to safety system in the United States — number of areas. reforming food safety law. Many of the looks familiar, it’s because United Fresh First, the bill requires all facilities that tough issues and difficult questions raised Iworked with House lawmakers on similar manufacture, process, pack or hold food to by concerned consumers and industry legislation earlier this year. It’s still a work have in place risk-based preventive control members alike have been addressed in the in progress, and United remains engaged to plans to address identified hazards and pre- bill, and we hope that the Senate will move improve the language, but the framework of vent adulteration and gives FDA access to quickly toward its debate and passage. S.510 is similar to the Food Safety Enhance- these plans and relevant documentation. The produce and food industries as a ment Act of 2009 (H.R.2749), which passed Second, S.510 requires importers to verify whole stand at a crossroads. The integrity of the House in late July with widespread sup- the safety of foreign suppliers and imported many food products — produce and non- port. Both the House and Senate versions food, allowing FDA to require certification produce — has been called into question. reflect a continued effort from both sides of for high-risk foods and to deny entry to a Consumers are asking tough questions about the aisle to acknowledge the key priorities food that lacks certification or that is from a the safety of what they eat. It is critical that of the produce industry. foreign facility that has refused U.S. inspec- the produce industry support legislation that United has long maintained that the tors. The bill also creates a voluntary quali- reforms our federal system of food safety future success of any food safety legislation fied importer program in which importers oversight and restores public confidence in rests on three main principles: First, any with a certification of safety for their foreign what too often appears to be a broken system. policy governing food We are an industry safety must be both that provides more than commodity-specific S. 510 provides a clear roadmap to pursue a billion servings of fresh and based on sound produce a day, almost science; second, the a set of policy recommendations that universally without inci- policy must be consis- dent, yet even a single tent for each individual brings us closer to a comprehensive food illness associated with crop regardless of contaminated produce domestic or foreign ori- safety program and will achieve our end can have far-ranging gin, and third, the poli- goal of a stronger fresh produce industry. impact on consumer con- cy must be provided fidence. As such, the with significant federal industry must work hard- oversight to rebuild consumer confidence. supplier can pay a user-free for expedited er than any other — from the solvency and After feedback and testimony from mul- entry into the U.S. functionality of our internal food safety sys- tiple industry stakeholders, lawmakers Additionally, as part of the bill, more tems to the ability of the federal govern- revised the House version of the bill to accountability will be asked of FDA, mandat- ment to have an impact on the safety of our include provisions that strengthen the bill’s ing that the administration conduct more nation’s food supply — to ensure both the commodity-specific approach to produce, frequent inspections of food facilities includ- transparency and accountability of our prac- guarantee equal treatment of imported and ing inspections of high-risk facilities at least tices. S. 510 provides a clear roadmap to pur- domestic produce in food safety standards once a year and inspections of other facili- sue a set of policy recommendations that and ensure the FDA would work with USDA, ties at least once every four years. With that brings us closer to a comprehensive food state departments of agriculture and other accountability comes expanded authority for safety program and will achieve our end agencies in implementing all produce provi- FDA to administratively detain any food that goal of a stronger fresh produce industry. sions. These three elements represented a is misbranded or adulterated under the As we continue to move forward toward strong step toward fulfillment of the indus- Food, Drug and Cosmetic Act. a solid, workable food safety bill, it is the try’s priorities in the form of comprehensive Finally, S.510 also equips FDA with the involvement and integration of the mem- and fair food safety legislation. ability to order a mandatory recall of a food bers of the produce industry that will help to The Senate Committee on Health, Edu- product if the food will cause serious ensure our industry’s priorities are not only cation, Labor and Pensions ensured that adverse health consequences or death and a well-represented in the bill, but an integral S.510 contained similar improvements to company has failed to voluntarily recall the part of its framework.

DECEMBER 2009 • PRODUCE BUSINESS 7 THE FRUITS By James Prevor OF THOUGHT President & Editor-in-Chief Lessons From The Year’s Great Issues ike the three wise men carrying gifts of gold, myrrh and Now, two things have changed: First, the product has changed. It frankincense, the year 2009 brought the produce industry can be specially packaged, branded, grown for niche markets, such in contact with three great issues, each one carrying as upscale or organic; it can be a proprietary bulk item such as Jazz lessons for the future. apples; it can be fresh-cut. Secondly, marketing has changed. In the The first issue was that of the financial crisis and reces- trade, there are national shows, local shows, trade newspapers and Lsion. It has taught us the value of conservatism and preparedness. magazines and there are many digital and web-based communica- All during 2009, conversations with this writer were not based tion tools. There is also a new way of reaching out to consumers uti- on the usual complaints about buyers or competitors; instead it was lizing websites, social media and niche consumer publications. the many small businesses that make up this industry looking for The combination of the ability to variegate the product with new help. It was voices filled with consternation as they found credit marketing tools makes collective action less crucial and the oppor- lines cut and credit cards eliminated. tunity for individual initiative to pay off more substantial. To what degree a business has room to survive these difficult The third issue was the inching through the Congress of food times and anticipate future financial needs is crucial to a company’s safety legislation. In coming to the decision to embrace, rather than long-term success. After all, one can’t be successful in the long run oppose, such legislation, the industry came to recognize the benefit unless one stays in business! of having an authority to buttress industry Financial strength is key. A business must product safety claims. have enough financial strength to not only sur- Like the story There are many things in the food safety vive, but also pay its bills even if it loses a line legislation not to like. Giving FDA recall of credit or if it suddenly has to pay for supplies. of the Magi, authority could lead to abuse and there are a We have also observed that a shortage of lot of expenses for inspections and what not; funds can lead even giant businesses to do once one has plus there is no evidence any of this will help counterproductive things.We’ve seen this with make food safer. some of the upscale retailers. Instead of simply been exposed to The overwhelming win for the industry, is acknowledging that their market — rich people simply in building consumer confidence in the — shrunk a bit and, accepting that profits will the truth, one FDA. If the FDA has the confidence of con- be down or even non-existent for a while, some sumers when it declares food safe, consumers of these upscale vendors have taken actions to is enjoined from will listen. In an age when many are quick to boost sales today by muddying their position in make junk-science allegations, a credible U.S. the minds of consumers. If a recession hurts going back safety authority is a priceless asset. sales of Rolls Royce automobiles, the correct In the various food safety struggles since strategy is not for Rolls to produce a $10,000 to falsehood. the spinach crisis, the industry has not always econo-car. It is to maintain its strategic position- been treated fairly or well by government ing serene in the confidence that it will be suc- agencies, and the industry would have legiti- cessful over time. mate cause to oppose any increase in the The second issue was the defeat of the authority or funding. Transcending this inclina- generic promotion program. We learned the limits of collective tion is evidence of a wisdom acquired only with time and reflec- action and the importance of individual initiative. tion. Many well-meaning people wanted to see this happen. But they In Matthew 2:1-12, the visit of the Magi is described. King Herod ran fast into the enormous difficulty of getting producers of wildly asked the three wise men to find the child in Bethlehem and then disparate commodities, with wildly different cost structures and return to tell him where the child was. He pretended he wanted to wildly different profit margins, to find a way to work collectively. worship the child. In reality, Herod was threatened by the child as The truth is that the produce industry is an awkward construct. the child was “the one who has been born King of the Jews” and What ties together a Maine potato grower and a coconut grower in thus, was a rival for Herod’s throne. the Dominican Republic is really the decision of retailers to market The Magi were warned in a dream that King Herod intended to them in the same department. kill the child so they went home directly “returning another way” so In thinking through the generic promotion proposal, we have as to avoid King Herod. The intellectual and moral implication of learned that this is not your father’s produce industry. Once upon a that decision, though, is that once one has been exposed to the time, almost everything was bulk produce, typically unbranded and truth, one is enjoined from going back to falsehood. of limited varieties. Collective action was almost the only way to As we move into 2010, may the light we have seen in 2009 stay boost consumption because we were selling a series of commodities. with us and grow brighter still. pb

8 PRODUCE BUSINESS • DECEMBER 2009 Reader Service # 8 Change For The Better

hange is the only constant in busi- ness. This adage also rings true for associations with one caveat: change must revolve around the benefit to MA’s new strategic plan, approved by its members, not the organization itself. CThat’s why recent changes in Produce Mar- board in late 2008, defines a bold vision keting Association’s governance and leader- for PMA to strengthen and lead the glob- ship structures have been spurred by our P members, for our members. al community, and a mission to connect, inform PMA’s new strategic plan, approved by its board in late 2008, defines a bold vision for and deliver business solutions that enhance PMA to strengthen and lead the global com- munity, and a mission to connect, inform and members’ prosperity. deliver business solutions that enhance mem- bers’ prosperity. To ensure we could achieve this bold course of direction, the association’s governance and volunteer leadership struc- ture required realignment. The result is a new long-term, direction-setting body. New board provide more information and educate them volunteer leadership structure that will pro- committees will be established to specifically on how they can volunteer. You can learn vide greater opportunities for PMA members address key topics. Second, the current con- more by visiting PMA.com. to participate in their association than in the stituency-based division board and council What isn’t changing is PMA’s longstand- past – from across the supply chain and leadership structure will transition to content- ing commitment to our core values – espe- around the world, from produce and floral, to based committees. These initial “committees cially the core value of courage to change participate in their association to grow leader- of the enterprise” will include membership; when that means better serving our mem- ship skills and to grow their businesses. government affairs; produce safety, science bers. For clarity, “governance” refers to the sys- and technology; and supply chain efficiencies. Another change is also in store, involv- tem used to make policy and strategy deci- Other committees will also be established rel- ing this column. You’re reading PMA’s last sions; governance is the role of an associa- ative to PMA events, including Fresh Summit. Research Perspectives column in PRODUCE tion’s board. “Leadership” speaks to the vol- And third, as new opportunities are identified BUSINESS. When Jim and I began this series unteer structure created to deliver value or emerge, the board can weigh adding other back in 2005, our goal was to help our through programs and services. To ensure committees and subgroups. industry stay on top of important consumer these critical components of an association A recent survey of member needs also val- trends and to encourage our readers to be match directives of the new strategic plan, idates the need for a shift to more volunteer more marketing-focused and less sales-ori- PMA assembled a task force of industry lead- involvement. PMA members told us they ented. ers to evaluate our current structure and our want more opportunities to contribute and Over the years, our dialogue has provid- future needs, and best close that gap. build their leadership skills, and to build busi- ed PRODUCE BUSINESS readers with valuable They were aided by leading association ness relationships in the process. Our new food for thought, which hopefully has management consultants who brought to the structure will do just that: create more oppor- encouraged some of you to change your table their knowledge of association industry tunities for all PMA members to participate in thinking. The series has now run its course, best practices. The task force’s work included their association. and just as PMA governance task force has conducting environmental scans, reviewing This association’s history has been shaped done, it’s time to look forward into the standard association best practices and gath- by the wisdom of early volunteers who plant- future. ering input from current volunteer leaders ed seeds that grew into our core values of I thank Jim Prevor for the opportunity to and grassroots members. Young professionals community, character and courage. Now, as stimulate this conversation; I am grateful in the industry were also surveyed. we work to achieve the goals of our new for the friendship built over these years. Three key changes resulted from this strategic plan, that same volunteer wisdom The staff and I look forward to continuing effort. First, the responsibilities of PMA’s will be employed at greater levels to shape to work with the PRODUCE BUSINESS team board of directors will shift from a “report and PMA’s future. By the time you read this col- to bring our voice elsewhere in the maga- review” body to a more strategic, proactive, umn, PMA will have contacted members to zine.

10 PRODUCE BUSINESS • DECEMBER 2009 Research Perspectives Will Go On

“Americans of all ages, all conditions, and all dispositions constantly form associations… Wherever at the head of some new undertak- he genius of PMA and its board has really ing you see the government in France, or a man of rank in England, in the United States been the discipline of methodically evalu- you will be sure to find an association.” T ating and undergoing strategic planning on — Alexis de Tocqueville a regular schedule without financial pressures. Democracy in America

rade associations provide a quintes- sentially American response to the strength that many organizations lack. This ing and undergoing strategic planning on a question of how businesses ought to author remembers attending a PMA Board of regular schedule, so it can make decisions deal with the challenges of the day. As Directors meeting many years ago when PMA about what to pare, what to keep and what to with most things worthwhile in life, distributed to all board members a copy of plant, without financial pressures. There is a though,T it is easier to found an association Robert J. Kriegel and Louis Patler’s book, If it valuable lesson there for companies through- than to maintain one as they are often estab- Ain’t Broke…Break It! This book gave a differ- out the industry. lished in the midst of a furor over some gov- ent perspective from the oft repeated saw, “If it Publishers have to change, too, so we ernmental action and often dissipate as the ain’t broke, don’tfix it.” We recall Dick Spez- have launched digital operations such as that anger dies. zano, at the time the vice president of produce at PerishablePundit.com and thus moved into When associations are small, they typical- for Vons and the chairman of PMA, pulling us cyberspace. Yet many questions stand the test ly do not have the resources to provide great aside, handing us the book and saying, “You of time. Starting in January, we will be invit- value to an industry, yet when they get large see what a great association this is?” ing different organizations each month to they run the risk of being more interested in We’ve been around long enough to have submit their research. We hope to help publi- perpetuating the association than in helping watched a series of strategic planning cize it, assess it, understand it and lay the the industry. This is not solely a challenge for processes with PMA and, so far, each has kept groundwork for future research. If your orga- industry associations… it is why, for exam- the association strong. This is no small nization has been conducting some research, ple, the March of Dimes keeps marching, accomplishment in this day and age. When and would like to participate, please e-mail us even though polio, its raison d’être, has long PMA’s show in Anaheim this past October at [email protected]. since been vanquished. broke attendance records, it spoke volumes I would be remiss if I didn’t close by This column was founded when PMA about the strength of the show and the orga- thanking Bryan Silbermann for undertaking undertook a new consumer research program nization in a year when many shows were this project for the last four years. Writing an and it represented something rare and pre- seeing drop-offs of 20 to 30 percent or more. article is difficult, and committing to do one cious and wholly commendable on the part of Not fearing change is a big part of prepar- every month, inspired or not, healthy or sick, PMA: A willingness to subject one’s work to ing for success in the future. This is true in busy or on vacation, is a formidable commit- withering scrutiny. associations, in the produce industry and in ment. He didn’t have to undertake it, and he Most associations — for that matter most publishing. With PMA’s consumer research deserves my thanks and the industry’s praise people and organizations of any type — are project being completed, we finished up a for doing so. hesitant to state their views in a forum where number of other outstanding topics and now Bryan and I have been friends for many they will be critiqued. The executive team at it is time to move on. years and I knew him well before we began PMA, including CEO Bryan Silbermann, was When I spoke at the Produce Solutions this project, yet through these four years and shrewd enough to recognize that research is Conference this year, I was asked to discuss 48 columns, we argued the problems of meaningless unless its lessons are accepted ways in which businesses should approach the industry like Yeshiva boys debating the and acted upon, and acceptance depends cru- the recession. One of the most important holy texts. This has given me an insight cially on the notion that the results have been ways was to reassess what activities each into his intelligence, background and belief scrutinized by third parties. business undertook and to concentrate system that one man rarely gets of another. Another thing that PMA has long done resources where they can do the most good. Ithink we gave the industry a small gift well is to work hard at anticipating and The genius of PMA and its board has real- and I am proud we had the chance to do changing to meet that future. This is a ly been the discipline of methodically evaluat- it together.

DECEMBER 2009 • PRODUCE BUSINESS 11 PRODUCE WATCH TRANSITIONS SUNNYRIDGE FARM SYSCO CORPORATION WINTER HAVEN, FL HOUSTON, TX Sal Toscano was hired as product manager. He Craig Watson was appointed to vice president of brings more than 23 years of agriculture experi- agricultural sustainability. Most of his career was ence and more than 18 years of strawberry-specific spent leading the quality assurance department experience having worked with various strawberry into what it is today. Most recently, his responsibil- organizations in the Plant City, FL, area. ities have moved into the area of agricultural sus- tainability.

PERISHABLES GROUP FRESHERIZED FOODS CHICAGO, IL FORT WORTH, TX Brian Allen was hired as retail data programs man- Tracey Altman was appointed to vice president of ager. With more than 20 years of experience in IT marketing for foodservice and retail divisions. This management and user support, he has worked at newly created position complements the compa- Textron Inc. and Ameritech/SBC, First USA and ny's management teams. Directly involved with Warner Electric. His primary role will focus on the the Wholly brand since its launch in 2007, she is management of core client deliverables, client credited as being the force behind the re-branding databases and quality improvement. and re-launching of the entire company.

DUDA FARM FRESH FOODS OVIEDO, FL SAHLMAN WILLIAMS Jason Bedsole was hired to the position of sales TAMPA, FL manager, Eastern sales. He joined the company in Theresa Zuroick was hired as an account executive 2000 as an assistant sales account manager and has for the company’s Southern California office. She earned progressively more responsibilities within brings fi ve years of public relations experience, a the fresh vegetable sales division. Duda's vegetable youthful fervor and genuine appreciation for the and citrus programs will benefit from his leader- produce industry. As PMA's previous public rela- ship in this position. tions manager, she gained valuable experience in media relations, promotional events and crisis communications.

Russell Dollar was appointed to regional sales Jennifer Velasquez was promoted to account exec- manager. He brings more than 20 years of experi- utive from associate executive. She works on ence in the food and beverage industry. He previ- media relations and event coordination for the ously worked for Duda's parent company's food- Chilean Avocado Importers Association and the processing subsidiary, Duda Products Inc., where Georgia Peach Commission. She maintains the he served as a regional sales manager. He will social media programs for key Sahlman Williams work out of Phoenix City, AL. clients.

FRUIT PATCH Meredith Holland was promoted to associate DINUBA, CA account executive from account associate. She Scott Wallace was elected to the Board of Directors. works in the fast-paced retail world with Sweetbay Currently president and CEO, he also sits on the Supermarkets. She coordinates a bi-monthly boards of the California Grape and Tree Fruit newsletter distributed to the retailer's more than League and ML Macadamia Orchards. Under his 8,500 associates. She works directly with the leadership, Fruit Patch has improved overall pack client's marketing department to ensure corporate outs this year to 80 percent, significantly above and key store public relations programs are well results achieved in previous years implemented.

NEW PRODUCTS SOY-BASED VEGGIE BRAND PRODUCTS RUSSET POTATO PACKAGING Galaxy Nutritional Foods, Orlando, FL, Curry & Company, Brooks, OR, jazzed up its launched Veggie Slices, a soy-based cheese brown tubular potatoes with eye-catching pack- alternative that provides an excellent source aging containing recipes and health benefits. of calcium without cholesterol, saturated fat, Recipes include All American Potato Salad, trans-fat or lactose. The Veggie line is avail- able in slices, shreds, blocks and a grated which contains other produce department topping, with flavors including cheddar, pep- favorites such as onions and celery. per jack, American, Swiss, mozzarella and more.

Reader Service No. 300 Reader Service No. 301

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]

12 PRODUCE BUSINESS • DECEMBER 2009 PRODUCE WATCH NEW PRODUCTS VOICE PICKING SOLUTION ECO-FRIENDLY PACKAGING ALTERNATIVE Robocom Systems International, Farmingdale, Clear Lam, Elk Grove Village, IL, launched its NY, released R-Voice 3.0 Voice Picking revolutionary new rollstock packaging innova- Solution to help warehouse and distribution tion, EarthClear PrimaPak. Produced from a roll center managers achieve the productivity of film, the stackable, flexible package joins the gains being demanded of them. A key techni- EarthClear product line of advanced packaging cal advancement is the integration of an XML technologies and materials that help processors interface, which enables an enhanced and retailers minimize their environmental integration with the warehouse impact. management solution. Reader Service No. 300 Reader Service No. 301

SALSA SNACK PACKS PREMIUM JUICE WITH ANTIOXIDANTS Fresherized Foods, Fort Worth, TX, added Sambazon, San Clemente, CA, launched a pow- Wholly Salsa Snack Packs to the Wholly Salsa erfully nutritious premium juice line. line. The all-natural, preservative-free Wholly Antioxidant Elixir is an organic beverage that Salsa comes in a convenient, ready-to-eat, provides powerful antioxidants and 600 percent under-50-calorie serving cup. The new item is of the recommended daily value of vitamin C, available in 3.6-ounce packages in a Classic yet remains refreshingly light on calories, sugar variety -- mild, medium and hot -- and a sweeter and contains no fat. It's available in three fla- Garden Fresca version. vors: açaí berry, açaí passionfruit and açaí black- berry. Reader Service No. 302 Reader Service No. 300 ANNOUNCEMENTS Reader Service No. 300 TANIMURA &ANTLE EMPLOYEES PAKSENSE ADOPTS TEMPERATURE CELEBRATE MILESTONES LABEL RECYCLING PROGRAM Tanimura & Antle, Salinas, CA, hosted its PakSense Inc., Anaheim, CA, launched fifth annual 20-Year Employee Club cele- PakSense GreenSense, a recycling program bration in Corral de Tierra, CA, to honor that facilitates the return of PakSense tem- employees who have served 20 and 25 perature monitoring labels for proper battery years with the company. Ten new mem- and component recycling. Through the bers were inducted into the 20-Year Club GreenSense program, PakSense provides cus- and 12 employees were honored for their tomers with eco-friendly return boxes and 25 years of service. pre-paid postage return labels free of charge. Reader Service No. 304 Reader Service No. 305

WONDERFUL PISTACHIOS CMI SHOWCASES CAMPAIGN UNDERWAY NEW KIKU APPLE Paramount Farms, Los Angeles, CA, launched its $15 Columbia Marketing International, million Get Crackin' campaign, which features eight Wenatchee, WA, showcased the new KIKU celebrity figures demonstrating how they crack open apple and packaging at the PMA Fresh a pistachio -- each in their own unique, light-hearted Summit convention in Anaheim, CA. The way -- through a series of commercials airing on KIKU is a strain of a Fuji apple that is up to 20 national prime-time programming. The national percent sweeter than traditional Fuji apples. campaign also includes promotions, event sponsor- To complement the uniqueness of this new ship and public relations designed to communicate variety, CMI developed the Apple Carriage, new pistachios as a healthful and safe snack option. Reader Service No. 306 apple packaging that replaces plastic clamshells. Reader Service No. 307

GOLF TOURNAMENT HONORS KROGER INCORPORATES NEW TERRANCE TIP MURPHY TECHNOLOGY INTO SALAD LINE The Tip Murphy Legacy Fund, which Kroger Co., Cincinnati, OH, incorporated was created by Ready Pac, Chiquita, Paramount Citrus and Naturipe Farms to HarvestMark traceability technology on the honor the life and career of industry vet- packaging of its private-label fresh salads eran, Terrence "Tip" Murphy, hosted the that enable consumers to learn where the Tip Murphy Memorial Golf Tournament produce was grown. Each bag of Fresh at the Oasis Golf Club & Conference Center in Loveland, OH. The first Selections carries a 16-digit code con- place team (pictured) is Bill Piper and Dan Floyd from Grant County sumers can enter on HarvestMark's Web Foods, and Jim Warken from Chiquita/Fresh Express. Not shown is Mark site to learn more about the salad's origin. Gagnon from Chiquita/Fresh Express. Reader Service No. 308 Reader Service No. 309

BOOTH RANCHES BREAKS VILLAGE FARMS INTRODUCES GROUND ON NEW OFFICE 'BAREFOOT PLAN' Booth Ranches LLC, Orange Cove, CA, will consoli- Village Farms, Eatontown, NJ, introduced date its accounting, sales and management staff its Barefoot Plan, an industry awareness under one roof in a new office building. Construction program aimed at promoting the efficien- on the new 10,500-square-foot facility is expected to cies and environmental benefits included in commence in late October 2010. The building should Village Farms hydroponic greenhouse grow- be ready for occupancy at the end of 2010. ing methods. These include water conserva- tion, land preservation, integrated pest man- agement, recycling C02 and food safety. Reader ServiceReader No.Service 300 No. 310 Reader Service No. 311

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]

DECEMBER 2009 • PRODUCE BUSINESS 13 From The Pages Of The Perishable Pundit When Child Labor Laws Don’t Necessarily Help Children

From Jim Prevor’s Perishable Pundit November 9, 2009

hen ABC broadcast an exposé on child labor in agriculture were out there hanging out with their parents. It’s something we’re look- and specifically focused on the Adkin Blue Ribbon Packing ing into and reviewing to make sure that doesn’t happen again.” W Company, the reaction was both predictable and inevitable. Poor housing conditions also resulted in fines totaling $33,550 for It was certainly no surprise to us. In a piece published over two years ago seven fruit and vegetable growers, including another $4,600 fine for in Pundit sister publication, PRODUCE BUSINESS, titled Wages And Social Adkin Blue Ribbon. Responsibility, we warned that interest in sustainability and social respon- Marr said they were surprised by the federal violations because the sibility will inevitably circle back to labor and working conditions in the company meets all state standards. fields, both in the United States and developing countries. “What we’re finding out is their standards To deal with the exposé, several things happened quickly: are different from the state,” he said. The United Fresh Produce Association sent out a letter to its mem- He said some outdoor bathrooms were too bers, basically saying that everyone has to close to the living units, and they didn’t have redouble their efforts to make sure there is no enough showerheads. illegal child labor in their operations. “Everything at the labor camp was cor- After the buying organizations identified in When we pass laws rected within three days of them pointing it the ABC Report — Wal-Mart, Kroger and Meijer banning behavior out to us,” he said. — announced they were suspending purchases There was hardly another way to handle it. from the farm pending further investigation, without providing The use of farm labor under age 14 is typically news outlets published many pieces saying illegal. Still, it is worth a moment to think things like, Blueberry Grower Shunned Over alternatives, we are not about the practical effects of this law and of Child Labor Charges. All these buying organiza- being everyone’s reaction to the exposé: tions, of course, wanted to distance themselves 1. It is important to note that the investiga- from this illegal activity: ethical; we are just tion, though broadcast now, was done during Wal-Mart and two other top retailers said allowing the summer when school was out. There is no Friday they are suspending business with a suggestion of truancy here. large southwestern Michigan blueberry grow- ourselves to feel self- 2. It is also important to note that though er after investigators found children as young righteous because we the activity is illegal, it is only illegal because as 6 working in the grower’s fields. the parents of these children are hired help or Wal-Mart, Kroger and Meijer said pend- “banned” an because the farm is a large one. ing further information, they have stopped activity — If the parents owned the farm, the children buying products from Adkin Blue Ribbon could engage in the EXACT SAME WORK, and Blueberry Co. near South Haven, about 85 whatever the it would be perfectly legal: miles northeast of Chicago. Exemptions from Child Labor Rules And the U.S. Department of Labor consequences for those in Agriculture: announced that it was imposing fines on Adkin these bans actually Complete Child Labor Exemptions: Youth and others: of any age may be employed at any time, in Two blueberry growers, Jawor Brothers affect. any occupation in agriculture on a farm in Ravenna and Adkin Blue Ribbon Packing owned or operated by their parent or person Co. in South Haven, have been fined a total of $2,584 for child labor vio- standing in place of their parent. lations. In fact, if they worked on a “small farm” and the parents gave con- The fines are the result of an investigation by the U.S. Department of sent, the children could, once again, do the EXACT SAME WORK and it Labor, which found children younger than 12, including a 6-year-old in would be perfectly legal: one case, working in the fields. If the youth is younger than 12, he or she can only work in agriculture Tony Marr, general manager for Adkin Blue Ribbon, said the compa- on a farm if the farm is not required to pay the Federal minimum wage. ny has strict policies on allowing children in the field. It is written in Under the FLSA, “small” farms are exempt from the minimum wage English and Spanish and employees must sign it before they start work. requirements. “Small” farm means any farm that did not use more than “We allow no children under 12 in our field,” he said. “A couple of kids 500 “man-days” of agricultural labor in any calendar quarter (3-month

14 PRODUCE BUSINESS • DECEMBER 2009 www.perishablepundit.com From The Pages Of The Perishable Pundit

period) during the preceding calendar year. “Man-day” means any day the family trees of these Jewish families, but these “trees” were based on during which an employee works at least one hour. If the farm is “small,” occupation, and they were remarkably consistent. Here is her account of workers under 12 years of age can only be employed with a parent’s per- “Subject #18”: mission and only in non-hazardous jobs. A Russian tailor artisan comes to America, takes to the needle trade, 3. Since Wal-Mart, Kroger and Meijer can’t be associated with illegal works in a sweatshop for a small salary. Later takes garments to finish at activity, they all did the smart thing by disassociating themselves from home with the help of his wife and older children. In order to increase his this farm and this controversy. It is, however, worth noting, that it is not salary he works through the night. Later, he makes a garment and sells it at all obvious that their actions help these children, which is, presumably, on New York streets. the point of the child labor laws. He accumulates some capital and goes into a business venture with his The parents who bring their children to the fields are poor. If these sons. They open a shop to create men’s garments. The Russian tailor and chains won’t buy their employer’s blueberries, the company will have to his sons become men’s suit manufacturers supplying several men’s lay off the workers. When you live close to the waterline, you drown if stores...The sons and the father become prosperous...The son’s children you miss one paycheck. So in all likelihood, although disassociating from become educated professionals. the situation may be legally required and create good press, it is not likely to help the children if their parents lose their jobs. Tailor/Garment Maker 4. We have to guard against a kind of moral obtuseness where if we don’t see the harm, it doesn’t exist. These poor people can’t afford to send their children off to day camp in the summer so they can learn archery and go swimming. They can’t afford an academic program so the chil- Garment Maker Garmet Maker Garment Maker dren’s achievements won’t dissipate over the summer. They can’t afford to have Mom quit work and stay home to watch them, so they bring their Lawyer Lawyer children to work. It is not in any way obvious that the children would be better off if their parents made them sit by the side of the field all day long doing nothing. By harvesting, they get to be closer to their parents; they get to Malcolm Gladwell gives another example to show how consistent the do something useful and feel like they are making a contribution to their story is. Here is another family tree illustrating a leather tanner who family. came from Poland in the late 1800s: These people get paid by the piece, so a little extra money from the kids working for a family at this level means a new pair of sneakers before school, a chance to go the dentist or maybe a little something in a Leather Tanner Christmas stocking. In all the anxiousness of retailers to distance themselves from this morally “shocking” activity, nobody stepped up to say the only thing that would really make a difference, which would be to pay more for blueber- Bag Manufacturer Bag Manufacturer Bag Manufacturer ries and set up an arrangement so that the money would go to fund a free summer camp for these children. 5. There is not the slightest indication that the parents of these chil- Doctor Doctor Doctor Doctor Lawyer Lawyer Lawyer dren don’t love them and want the best for them. We all know there are cases of child abuse and neglect but, in general, parents are the ones who know what is best for their children, and when we pass laws banning behavior without providing alternatives, we are not being ethical; we are The Russian tailor, who brought home piecework for his wife and chil- just allowing ourselves to feel self-righteous because we “banned” an dren to help with, did not do it because he hated them. He did not do it activity — whatever the consequences for those these bans actually because he was indifferent to their well being. He did it because they affect. were poor and, in his opinion, this was the best route to get the family out of poverty. ------We don’t know what is the best available option for the children of There is a very interesting book titled Outliers: The Story of Success, by migrant farm workers in the blueberry fields of Michigan. And, of course, Malcolm Gladwell, that explores the nature of what makes certain people we have to follow the law. successful. Still, we are wondering if this law really helps the children or if it just One chapter has to do with Joe Flom, a living legal legend and the last helps advocates feel good. We suspect that our Jewish tailor from Russia living named partner of Skadden, Arps, Slate, Meagher and Flom, the and his family would not have been better off had the government insert- prominent and very successful law firm. The author uses Flom as a sym- ed its judgment for what was best for the tailor’s children between the tai- bol for a generation of Jewish families that arrived in New York at the lor and his family. turn of the century and who worked in the garment trade and whose Just because these migrant farm workers are a different religion and descendents became professionals. from a different place, we are not really convinced that they shouldn’t be He quotes a study done by a grad student, named Louise Farkas, who given the same right to exercise judgment in order to help their children went to nursing homes in New York City and Miami Beach to write up as we extended the Russian tailor decades ago.

DECEMBER 2009 • PRODUCE BUSINESS 15 produceissues& trends report 2010 More than 20 industry leaders identify 10 issues that will affect us all.

BY CAROL BAREUTHER, RD

“A business in the produce industry today needs to be a rapid response team for opportunities that make sense.” — Ed Kershaw, co-owner and CEO, Domex Superfresh Growers Inc., Yakima, WA

Food Safety. The Economy. Value. These are just a few of the topics making headlines in the produce industry. How will these issues and others play out in 2010? PRODUCE BUSINESS asked more than 20 of the industry’s leaders to look into the future and give us their predictions.

1. FOOD SAFETY & TRACEABILITY Fruit and Vegetable Association (FFVA), based in Maitland, FL. New food safety legislation that will give the Food & Drug Adminis- “Food safety and traceability will remain key to boosting consumer tration (FDA) new powers to oversee the nation’s food supply is expect- confidence in buying safe and wholesome food,” says Dave Corsi, vice ed to pass by Congress and become law sometime in 2010, predicts president of produce and floral operations for Wegman’s Food Markets Tom Stenzel, president and CEO of the United Fresh Produce Associa- Inc., in Rochester, NY. “These topics shouldn’t be a competitive issue, tion, headquartered in Washington, D.C. “We think food safety legisla- but an industry collaboration for overall comfort of the consumer.” tion — new rules and regulations — is a good thing. We have pushed Lorna Christie, chief operating officer for the Newark, DE-based for mandatory national oversight to level the playing field and build Produce Marketing Association (PMA), agrees and adds, “Food safety consumer confidence.” is all about the supply chain. It’s a shared responsibility — a partner- What will this mean for retailers? Stenzel contends, “It will be hard- ship — and one that should continue as a collaborative approach, er to source something when it runs out. They will now only be able to both within the industry and with government. The end result should go to vetted and approved suppliers. This is a big trend line.” be a safe food supply, but not at the risk of putting farmers out of busi- If government oversight does become mandatory, industry leaders ness, reducing the availability of produce or by creating exorbitantly agree that legislation impacting produce should be science-based. high prices for produce.” “We don’t want to see requirements made on the industry that don’t “In the past, the industry has tried hard to enact voluntary solutions actually make food safer,” says Mike Stuart, president of the Florida to produce safety through vehicles such as the Leafy Greens Market-

16 PRODUCE BUSINESS • DECEMBER 2009 Reader Service # 38 Bill Bishop Mike Celani Lorna Christie Roberta Cook Dave Corsi Matthew D’Arrigo Jan Delyser

ing Agreement,” notes John McClung, presi- showed some positive GDP [gross domestic jectionable. A company can make $20 million dent of the Mission-based Texas Produce product] numbers, but these were led primari- one year, for example, and perhaps lose $10 Association. “These efforts will continue. There ly by government stimulus programs. Sus- million the next because the market has will also be a continued push toward food tained growth is not strong. Weakness in con- changed. Investment bankers look to make a safety on the national level, and this will sumer spending is still the key issue, especial- return on their investment. This has been a include a continuing effort toward uniform ly with unemployment hovering at 10 percent. success for some and a shock for others. standards not just on a national basis, but Consumers will remain protective of their dis- Those who haven’t had success aren’t lending globally. We hope that these standards will be posable and discretionary income. Businesses and this will make this route of financing even consistent and equally applied to both large remain very cautious and cost cutting will con- more difficult in the future.” and small growers.” tinue. For increased output, businesses are “This focus on food safety will increase the relying more on productivity improvements 3. NEW WAYS OF demand for supply chain transparency,” and less on employment increases.” DOING BUSINESS explains Bill Bishop, chairman of Barrington, “What this all adds up to is the realization As economic pressures continue into 2010, IL-based Willard Bishop Consulting Ltd. “Buy- that there will be no ‘straight lines’ in this eco- Jim Lemke, vice president of produce for C.H. ers, for example, won’t want just a promise. nomic recovery,” continues Schuler. “We will Robinson Worldwide Inc., headquartered in They will want greater assurances that compa- experience many ups and downs with some Eden Prairie, MN, notes, “There will be pres- nies are doing what they say they are doing spikes more severe than others.” sure on operators to contain costs. This means and doing it right, which will lead to a more either cost-reduction or revenue-production sophisticated way of doing business. This is and it applies to both retail and foodservice.” what consumers are looking for and what “Pressure on prices Willard Bishop’s Bishop believes, “Retailers retailers want to offer.” means conventional will be driven to reduce costs by consolidating Mike O’Brien, vice president of produce suppliers and by greater efficiency, perhaps for Schnuck Markets Inc., located in St. Louis, retailers are fighting for by electronic communication with suppliers MO, asserts, “Food safety and traceability ini- sales against discounters and the judicial use of logistics and/or con- tiatives will have a huge impact on our busi- and dollar stores.” tractual agreements. This has been going on ness. For example, every retailer has to in the package side of the store and it now rebuild its system to capture this data. It’s — Steve Lutz applies to produce.” expensive. Trace back from field to fork is a Perishables Group “Wal-Mart’s move to buy direct from grow- huge, but necessary, undertaking.” ers may signal a real change in the industry,” Traceability is now voluntary, admits Sten- says Nelson. “Wal-Mart is a leader, a trendset- zel, “but it will likely be part of a new federal The produce business, in many ways, is ter and a hard act to follow. Other retailers food safety law.” like every other business, says Ed Kershaw, co- may match them in sourcing strategy just to In spite of all precautions, produce com- owner and CEO of Domex Superfresh Grow- stay competitive. I think this is a trend that’s panies must be prepared should an outbreak ers LLC., headquartered in Yakima, WA. here to stay.” of a foodborne illness occur. Steve Tursi, “There are two places to access capital — According to Steve Lutz, the West Dundee, director of business development for Seald- profits and borrowing. The impact of serious IL-based executive vice president of the Per- Sweet International, based in Vero Beach, FL, economic problems and greater taxation is ishables Group, “Pressure on prices means asks, “What would you do if CNN was in your less profit to spend on capital and new hires to conventional retailers are fighting for sales parking lot, the cameras rolling and talking grow the business.” against discounters and dollar stores. Wal- about your product? You have to have an At the same time, produce is different than Mart is the big one, but there are also others, emergency preparedness plan in place. Have other businesses. “Lenders aren’t lending,” such as Aldi in Chicago, that are increasing you put your traceback plan into action? Do Kershaw continues. “Produce is a high-risk their role in fresh foods. Conventional stores you have someone who is media savvy? How business. For example, we have zero control need to keep prices aggressive to maintain would you articulate your message?” over the weather.” customers. This creates a downward pressure Chris Nelson, president and CEO of the on price, and unless you can move more vol- 2. THE ECONOMY Mixtec Group, based in Pasadena, CA, ume, you end up with fewer dollars at the end There are hints of recovery from the cur- reveals, “An emergent trend, and one that has of the day. Price pressure will still be a signifi- rent recession, especially if you look at the been happening over the last five years, is the cant trend into next year.” stock market, says Wegman’s Corsi. “Nonethe- participation of investment banking in the pro- Mike Celani, senior vice president of sales less, it will be some time before we get back to duce industry. Produce is capital-intensive. and marketing for Irwindale, CA-based Ready what’s been recognized as ‘the new normal.’” When banks stopped lending, some growers Pac Produce Inc., points out another trend. Bill Schuler, president and CEO of looked to private equity companies who “There is an acceleration of customer brands,” Castellini Co. LLC, headquartered in New- bought a share in the business in exchange he says. “This is designed to help build store port, KY, agrees and adds, “The third quarter for capital. The problem is, produce isn’t pro- traffic. It’s also a profit and pricing strategy,

18 PRODUCE BUSINESS • DECEMBER 2009 something that has moved from the center of foodservice or retail.” grocery to, say, a generic or No. 2 or 3 brand the store out now to produce.” PMA’s Christie points out, “Value is not just paper towel, than they are to trade down in Bishop foresees the same trend and adds, about a cheap price. There’s a broader defin- produce. In produce, they want quality. Quali- “I think the creation of strong brands by retail- ition. It’s something that consumers have been ty is a value.” ers will prompt more grower/shippers to offer moving toward, but now the recession is Cook agrees, and explains, “There’s defi- branding. The concept of branding goes accelerating it. Part of this definition is about nitely a price-quality relationship that equals beyond just the idea by consumers that the how people connect with their food. They may value. Fresh produce has not fared as well in food is safer. If your thinking stops here, then feel better, for example, because they’re eat- this equation over the last year. For example, you’re underestimating the magnitude of this ing something grown locally or in a sustain- consumers may decide to buy frozen blueber- trend. Branding also lends an assurance, trust able way or because its produced by a com- ries instead of fresh because they are less and consistency in a product that are all of pany that treats its workers fairly.” expensive. But, consumer behavior is not value to the consumer.” Produce is definitely something that con- always indicative of consumer intent. Con- Retailers will find increasing competitive sumers value, says McLaughlin. “For example, sumers may not really want to make this pressures within their ranks. PMA’s Christie consumers will more readily trade down in change and they may switch right back to remarks, “Smaller format stores and neighbor- hood stores are becoming more of a trend.” Dr. Ed McLaughlin, director of the Food Industry Management Program at Cornell University, headquartered in Ithaca, NY, adds, “Smaller stores have the advantage of not needing as much land to build or construction of ‘food deserts’ like inner city neighborhoods. They can also yield high productivity without sacrificing variety. For example, smaller stores can offer the same assortment as larger for-

“Next year, we’re going to continue with a deflationary affect to sales based on the savvy consumer looking for value everywhere.”

— Dave Corsi Wegman’s Food Markets Inc. mats using less facings and not using floor area for warehousing.” As for what’s in store, Dr. Roberta Cook, cooperative extension marketing economist for the Department of Agriculture and Resource Economics at the University of Cali- forni at Davis, says, “There are implications for operating systems and use of information technology beyond traceability to assist in SKU rationalization, getting the right product to the right store at the right time, which can lead to benefits such as reduced shrink and cost con- tainment. CPGs [consumer product goods] have this down. We’re behind in produce, but it will become more evident as retailers respond to more competitive pressures.”

4. VALUE RE-DEFINED “Next year, we’re going to continue with a deflationary affect to sales based on the savvy consumer looking for value everywhere,” says Wegman’s Corsi. “The commodity business is the target and many buyers are jockeying to be the shoppers’ choice for great value. This affects all of us, across the industry, whether in Reader Service # 39

DECEMBER 2009 • PRODUCE BUSINESS 19 their former buying habits when the economy long sub has a new ad: 4 five-foot subs for improves. Or, they may indeed stick with their $13.99. In the supermarket, this will translate new buying habits. Companies that figure out into more meal solutions in-store or in a bun- how consumers will react as we come out of dled ad.” this recession will be the most successful.” The trend for value pricing is also an Despite the economy and cut budgets, opportunity for foodservice, says C.H. Robin- retailers must remember, “Ta s te is a huge fac- son’s Lemke. “We will see more operators look tor in consumer’s perception of value,” says to provide health and wellness on the menu in Jan DeLyser, vice president of marketing for a value format. This might take the form of the California Avocado Commission (CAC), more healthful side dishes, lower-sodium located in Irvine, CA, selections or more produce in the center of Russ Hanlin, president and CEO of Sunkist the plate.” Growers Inc., headquartered in Van Nuys, CA, agrees. “Ta s te is everything when it comes 5. THE “NEW” CONSUMER to fruit. For example, we were pleasantly A new customer has emerged over the past encouraged to see an increase in demand for 18 months, says Castellini’s Schuler. “Ameri- specialty citrus. That is an important message cans have become savers. They stick to lists, for our industry to hear. During the most chal- eat at home, shop at discount formats and buy lenging economy since the great depression, store brands. Consumers will remain protec- consumers were willing to pay a higher price tive of their disposable and discretionary for varieties that taste great. I believe this trend income. What we have to do is be aware of will continue in 2010.” this change in buying patterns and adapt to Consumers are looking for value in differ- this change.” ent ways, says Ready Pac’s Celani. “Foodser- Schnuck’s O’Brien agrees. “Customers vice is down, but we’ve seen a real opportuni- who are back to work and spending again ty in home entertaining. For example, sales of have a change in psychology. They’re more party trays have increased.” conscious of price. We as retailers need to fig- In the foodservice sector, Celani adds, ure out how do we get this customer back “We’re seeing value pricing on meals. For after they’ve left fresh produce.” example, a QSR format that offered a $5 foot- The eating-at-home trend will be one way, Reader Service # 36 Reader Service # 20

20 PRODUCE BUSINESS • ALL CAPS DATE Charles Hall Russ L. Hanlin Ed Kershaw Jim Lemke Steve Lutz John McClung Ed McLaughlin acknowledges Douglas Riley, assistant vice home gardening, contends Charles Hall, their community. If you’re a retailer who wants president of produce operations for Hy-Vee executive director of the Georgia Fruit & Veg- to attract and retain the true locavore, then Inc., headquartered in West Des Moines, IA. etable Growers Association, based in your credibility is at stake if you’re not offering “Expect a lot more cooking at home. This may Lagrange, GA. “The White House vegetable local produce. If I owned a restaurant, I would call for unusual items — those produce con- garden has made headlines and in this econ- hone in on local supply and make it work. I sumers have seen featured in recipes on TV omy, there’s more interest in people doing believe part of those who want to dine will see cooking shows. There will be more experi- things for themselves. I don’t think this will hurt a value in local/regional sourcing. Even the mentation — the opposite of convenience as retail sales, though.” USDA is campaigning about “Know Your families look to cooking meals as a way to Marcia Mogelonsky, global food and bev- Farmer, Know Your Food,” so local is king and share family time.” erage analyst for the Mintel International will remain for some time.” Neil Hendry, vice president of consulting Group Ltd., located in Chicago, IL predicts PMA’s Christie believes the locally grown for consumer and retail markets and financial home canning and preserving will continue to concept is so powerful because consumers services for Chicago, IL-based Datamonitor make a resurgence. “For example, we’re see- are looking for simplicity in an increasingly Inc., says, “Fresh produce is now more rele- ing consumers buy a flat of tomatoes at the complex world. “It’s a way for them to recon- vant as consumers are cooking more from farmer’s market and canning or freezing them nect and feel good about the food on their scratch at home. This is an opportunity for to make this fresh produce last longer.” tables,” she explains. “Locally grown also has retailers to have high quality, fresh and crisp Some retailers have already embarked on educational, entertainment and sustainability produce on hand and leveraging this by pro- what’s emerging as the “food as education” connotations that make it desirable.” viding recipe ideas and other information to trend, reports Christie of PMA. “I think we’ll Regarding locally grown, the CAC’s DeL- help consumers learn how to include more see more of this in the form of in-store cooking yser says, “There is an opportunity for our fresh produce in their meals.” classes, tasting events and even wellness clin- industry to further define it as being about ics led by the chain’s Registered Dietitian. who is growing the food and how it is grown, There will be a re-definition of the supermar- in addition to where it is grown. This ties into “Our industry is passionate ket as not just a merchant, but as an informa- the term ‘pragma patriotism’ or how con- about food, but we don’t tell tion destination.” sumers feel that supporting products from the On the other hand, consumers who are USA is the right thing to do.” the story. What we need to nesting more at home may not know how to Christie adds, “Our industry is passionate do moving forward is to cook or have the time, notes Christie. “This about food, but we don’t tell the story. What we creates opportunities for meal assembly need to do moving forward is to share the share the story. This builds options in-store with produce as an integral story. This builds a relationship with the end a relationship with the end component. In foodservice, we’re seeing user. In most cases, it’s a compelling story. It user. It puts a face behind some of the fast casual concepts experiment puts a face behind the food, which in turn can with ordering online and take-out.” make price less of an issue because there’s a the food, which in turn can There will also be new ways of marketing value in the newfound knowledge about the make price less of an issue to this “new” consumer. Cornell’s McLaughlin product and its perceived quality.” says, “Pretty soon we’ll have a whole genera- Despite the prevalence of the locally because there’s a value in tion of 30- to 40-year old shoppers who just grown trend, many are still unsure exactly the newfound knowledge have cell phones, no land lines. In Japan, 90 what it entails. “What we may see in the year about the product and its percent of the population has Smart Phones. ahead is a better definition of the meaning of The applications on these phones are vast. ‘locally grown,’” hypothesizes C.H. Robinson’s perceived quality.” This can lead to unique marketing opportuni- Lemke. “For example, does it mean the leafy ties such as couponing. Research indicates greens the California farmer grows is consid- — Lorna Christie over 95 percent of text messages are read.” ered ‘local’ only when he sells in-state and not Produce Marketing Association when he sells his product in the East? For us, 6. LOCALLY GROWN we’re using the grower name and face on Sustaining loyalty for local and/or regional more packaging and signage to make sure Consumers want to get the most out of products will make headlines in 2010, we’re giving consumers what they want. I don’t their shopping experience, adds Hendry. believes Wegman’s Corsi. “Let’s face it, the think this is a trend. Moving into 2010 and “Fresh and loose is the real deal,” he explains. consumer has high trust in many regards for even 2011, it will become the new way of “Shrink-wrapped produce, for example, their local grower. To me, this will continue to doing business.” dilutes the experience of buying fresh pro- drive customer loyalty. This just doesn’t start Consumers will continue to be interested in duce. Thus, we may see a move away from and stop in fresh produce. Customers will local food, but not at the expense of food packaging in favor of bulk produce.” look for other items produced either locally or grown in major production areas such as Cali- This focus on freshness may lead to more regionally to connect better in supporting fornia, says Cornell’s McLaughlin. “What con-

DECEMBER 2009 • PRODUCE BUSINESS 21 Chris Nelson Mike O'Brien J. Miles Reiter Bill Schuler Tom Stenzel Mike Stuart Steve Tursi

sumers are interested in is genuine food. Food innovations, says Willard Bishop’s Bishop, salad and baked potato and move more pro- that is grown by someone they can trust.” “Specifically, we need options that can align duce toward the center of the plate.” United Fresh’s Stenzel agrees. “Food grown with a price reduction at the same time. For “Consumers today are in the process of on a family farm is food grown on a family example, suppose someone could create a recognizing that produce consumption and farm, whether it is ten miles away or 1,000 mango that has a smaller pit, but not any less longevity go hand-in-hand,” says Domex’s miles away. This is where good marketing flesh so that yields and efficiency would be Kershaw. “To drive this point home, we, as an comes in.” increased per the same amount of fruit.” industry, will need to provide continual rein- There is a need for innovation in product forcement of this message and do a better job 7. SUSTAINABILITY & SOCIAL marketing too, says Matthew D’Arrigo, vice of getting this message out. We also need to RESPONSIBILITY president of D’Arrigo Bros. Co. of NY Inc., recognize that demand for consumption isn’t Sustainability and social responsibility have located in the Bronx, NY. “Some items need a all in the USA. There are emerging new captured public interest in the past, says shot in the arm. I’ll call them your grandmoth- economies — China, India, Russia, for exam- Seald-Sweet’s Tursi, but it’s represented a er’s vegetables. They’re generically sold, ple — that are willing and able to spend their minority. “Now, this awareness and concern is there’s nothing innovative about them, and money on food. Ethnicity will be the new dri- moving into Middle America,” he notes. “Even less and less are selling. Yet, they are still sig- ver in produce consumption.” third-party audits are incorporating a social nificant categories. Look at what happened to responsibility section. Senior management pomegranates with savvy marketing. Pome- 10. HEALTH & WELLNESS and decision-makers need to figure out how granates are in everything now and acreage According to J. Miles Reiter, president and to address these issues as we go forward, or is up. These other vegetables need the same CEO of Driscoll’s, in Watsonville, CA, “The risk loss of profits. type of marketing.” debate on health care reform has brought Castellini’s Schuler adds, “Sustainability is Mintel’s Mogelonsky adds, “What is fading diet’s role in disease prevention into the light more than just about carbon footprint and today is ‘super fruit.’ Not the fruit, just the of day. We need to keep consumers focused in packaging, it’s about sensibly managing nat- word. It’s a word consumers are tired of hear- this direction by making produce more avail- ural resources. For example, water is the new ing. It was okay at first where the fruits were able, making it an attractive choice over oil. Agriculture uses 70 percent of the world’s exotic, like gogi berries and mangosteen, and something else and keeping it affordable.” water and there’s not enough to sustain there was a mystique associated with them. The CAC’s DeLyser agrees. “We’re starting growth. That’s why we’ll see drought-resistant Then blueberries and cranberries started to to see produce positioned as a preventative, seeds in development and more greenhouses. be called super fruits. There’s no doubt these for example, in the treatment of obesity.” It also adds up as a cost of doing business.” are healthful fruits, but consumers are con- Food as medicine will get more play in the Accountability will be an important watch- fused. Are super fruits exotic or from your coming year, says Mintel’s Mogelonsky. “In word of sustainability, says Mintel’s Mogelon- backyard? Marketers need to come up with today’s economy, people are running to the sky. “If you say you’re sustainable, consumers another word.” doctor for everything. They are self-medicat- are going to want you to provide it, define it, ing more with food. This is an opportunity for or justify it on your label.” 9. GROWING CONSUMPTION retailers and foodservice operators to tell why The FFVA’s Stuart adds, “There are defini- There’s good news for increased con- a certain product or dish is good for you.” tional issues with sustainability and issues that sumption of produce, says United Fresh’s Sten- Ready Pac’s Celani agrees. “The time has address this are be practical and meaningful, zel. “Participants in the WIC program are now never been better to encourage consumers to not window-dressing. In addition, no sustain- buying fresh fruits and vegetables with their eat more fruits and vegetables. One way to do ability or social responsibility efforts will be vouchers. Collectively, this represents this is to make it easy. Research shows that successful if profitability is missing. Profitability $700,000 in annual retail produce sales. consumers eat more snacks than they do needs to be an equal leg on the stool.” Retailers have an opportunity to embrace breakfast or lunch. Retailers who figure out these shoppers and make them feel welcome how to create an effective snacking section in- 8. PRODUCT INNOVATION in the department. To do this, they can provide store will capitalize on this.” PMA’s Christie believes consumers are these Moms with information on how to stretch The produce industry needs to get togeth- looking for new flavors, new textures and new their food dollar and help them to purchase er on the topic of health and wellness, says eating experiences. additional produce.” Seald-Sweet’s Tursi. “It’s not about Company A Schnuck’s O’Brien adds, “Excitement is the Stenzel continues, “As foodservice strug- versus Company B. Produce’s biggest com- way to get people into produce, and taste and gles to entice customers back into restaurants, petitor is cookies, chips and other snacks. flavor is what keeps them coming back. For I foresee there will be more fruits and vegeta- These industries aren’t as close to healthful as example, what will be the next Honeycrisp bles on the menu. These are items that are we are; yet they are marketing health better. apple? Convenience is always important, too. healthful and at the same time, can lower For example, look at the popularity of the 100- We’ll see an aggressive push toward innova- plate costs and menu prices.” calorie snack packs of cookies. We have to tion in the coming year.” Castellini’s Schuler agrees. “I think we’ll show consumers that our products are just as There is especially a need for foodservice see foodservice go way beyond the typical tasty, convenient and healthful.” pb

22 PRODUCE BUSINESS • DECEMBER 2009 Get In The Game With Super Bowl-Themed Produce Promotions Super Bowl promotions help produce retailers develop happy customers and future sales.

BY BARBARA ROBISON

It’s time to get ready for Super Bowl XLIV, to lis, IN. “By building up to the Super Bowl, con- be held in Miami, Florida, in Landshark sumers will say, ‘I know where to go for my tailgat- Stadium on February 7, 2010. ing and football viewing party.’ Waterfall displays, showing the options of convenient party trays or The 2009 Super Bowl was the second most make-your-own sauces and dips, are effective sales watched in history, with more than 95 million builders during this period,” he adds. viewers. Figures for the 2010 Bowl game will likely be similar, providing tremendous potential for AVOCADOS ARE A supermarket produce departments and their suppli- STAR PERFORMER ers. “We treat the Super Bowl period like it is anoth- Produce departments can offer a myriad of er holiday, with store-wide promotions,” says Ricky items to enhance Super Bowl viewing and enter- Takemoto, produce director at HOWS Markets, a taining. “Avocados and guacamole have long been five-store chain headquartered in Pasadena, CA. associated with the Super Bowl, as well as football Basic produce Super Bowl promotional pro- tailgating in general,” says Rob Wedin, vice presi- grams should begin with the start of the football dent of fresh sales and marketing for Calavo Grow- season, continue building through the college bowl ers Inc., based in Santa Paula, CA. “Shoppers love games and climax with the pro play-off games and avocados and supplies should be excellent for their the Super Bowl, according to Shane Towne, market- 2010 Super Bowl needs.” ing and new business development coordinator for A large Mexican crop will be at peak season vol- the Indianapolis Fruit Co. Inc., based in Indianapo- ume, with about 55 percent shipped at that time. The best California crop since 2006 will just be beginning. The Chilean crop will provide some of its last shipments to the United States for the year. Primary volume for the Super Bowl will be from Mexico, with primary growth starting up for the large California crop. “Avocados from Mexico are on track with volume projections,” reports Emiliano Escobedo, marketing director for APEAM, based in Michoacan, Mexico. “We expect to keep strong movement this fall and winter in order to guaran- tee another record season.” The avocado associations have invested years of resources into the high profile Super Bowl. This year is no exception. The Chilean Avocado Importers Association (CAIA), based in Washing- a Avocado Comm i ss on Photos courtesy of Cal i forn a Avocado ton, D.C., has focused on the promotion of Hass Super Bowl is the perfect time for cross merchandising and can increase avocados from Chile. The Chilean Avocado Lovers rings across the entire store. Club consumer contest began in September and

DECEMBER 2009 • PRODUCE BUSINESS 23 will end February 15, 2010, following the Super Bowl. A new in-store display unit con- tains a sweepstakes tear-off pad and handy ripening bags. “We’ve been conducting a Make the Most of Your Produce program throughout the Kroger divisions,” reports Maggie Bezart, CAIA’s marketing director. “It focuses on educating consumers through in- store events, signage and multi-media con- tacts. Chilean Hass avocados will be fea- tured from January 3 to January 30, 2010, leading up to the Super Bowl.” APEAM’s fall/winter marketing program features new general market and Hispanic consumer radio, television and online advertising, providing more than 1.7 billion impressions in key markets. National print ads will reach consumers through popular publications. Also, Chef Rick Bayless’ PBS show “Mexico — One Plate at a Time” will be sponsored. APEAM will launch a high profile in-store Super Bowl program January 25 through February 7, 2010, under the umbrella theme Your Game-Day Upgrade. The retail-centered promotion will tell shop- pers how to easily make game-day gather- ings more festive. “Avocados are thoroughly entrenched in Super Bowl activities,” asserts Jan DeLyser, vice president of marketing for the Irvine- based California Avocado Commission (CAC). “Everyone has their favorite gua- camole recipe, providing an excellent oppor- tunity to cross merchandise avocados with other produce items. While the produce department is the ideal spot, such displays in the chip and beverage aisles have been successful in some markets,” she continues. “Also, as we move into January and Febru- ary, consumers are more weight- and nutri- tion-conscious. Avocados have a great nutri- tion message to present.”

SALSAS AND DIPS ARE FAN FAVORITES Produce departments can also be a source for a wide selection of dressings, dips, sauces and salsas for Super Bowl events. A display of these items along with fresh vegetables for dipping, and perhaps some chips and beverages, can be an invit- ing welcome to the department. “We do a weekly mailer to promote the Super Bowl and run an avocado ad during Super Bowl week,” offers Takemoto of HOWS Markets. “Then we display an array of items for the event. Snack foods and party trays are always popular.” Fresherized Foods, in Fort Worth, TX, marketer of Wholly Guacamole and Wholly Salsa, will be concentrating on retailer pro- motions. Last year, the company rewarded

Reader Service # 24 retailers who focused on football themes.

24 PRODUCE BUSINESS • DECEMBER 2009 The company’s special Dallas Cowboys Super Bowl festivities. The guacamole is ment. The recipe is available on the Com- packaging has created interest and has been topped with a thin layer of mild salsa for mittee’s Web site. “Sandwiches and wraps particularly successful in Texas. The pack- added texture and flavor. are popular for game day events and Florida age will be available in stores for the dura- Many consumers prefer to make their tomatoes are a great sandwich or wrap addi- tion of time the team lasts in the play-offs. own salsa or guacamole. Once again, pro- tion,” says Samantha Winters, director of “We are launching a new Party Time duce departments can come to the fore by education and promotion. “The Florida Dip, which is one layer of Wholly Gua- providing recipes and suggestions. The To m ato Committee is planning a recipe pub- camole topped with a layer of our spicy pico availability of Florida tomatoes makes them licity release at Super Bowl time.” de gallo,” reports Tracey Altman, vice presi- an ideal partner for cross promoting Super “Avocados are our big seller during Super dent of marketing for foodservice and retail Bowl entertainment ideas. The Maitland- Bowl time,” shares Lee Reynolds, produce divisions. “It’s different and will generate a based Florida To m ato Committee promotes director at Haggen Inc, a 33-unit chain ‘wow-effect’ when it’s served at a Super an easy-to-prepare Salsa for Everyone. It based in Bellingham, WA. “We are on ad Bowl party.” includes tomatoes, lemon, bell pepper, pars- with them that week, tying in with a store- Altman suggests produce departments ley and onion from the produce depart- wide Bowl promotion. We don’t offer party set up displays that make customers stop, smile and want to know more. Provide them with ideas for centerpieces they can do at home. A contest with the produce team for the best display is another idea. “I’m amazed at how creative they can be,” admits Altman. “No big agency is needed — just great, creative produce teams.”

“Center aisles may have the chips, but they don’t have the fresh, authentic and healthful refrigerated salsas and guacamoles available in produce department coolers.”

— Karen Caplan Frieda’s Inc.

Salsa is the No. 1 condiment in the Unit- ed States and more guacamole is consumed on Super Bowl weekend than any other time. Retailers should use suggestive selling football-themed decorations and point-of- purchase signage. It’s a once-a-year opportu- nity. “Center aisles may have the chips, but they don’t have the fresh, authentic and healthful refrigerated salsas and guacamoles available in produce department coolers,” points out Karen Caplan, president and CEO of Frieda’s Inc., in Los Alamitos, CA. Frieda’s salsas come in four varieties for every flavor preference: Hot, Mild, Roasted Garlic and Pico De Gallo. The salsas are never heated, preserving the bright, authen- tic flavors. The Pico De Gallo is especially complimentary to Baja-style fish tacos for

DECEMBER 2009 • PRODUCE BUSINESS 25 26 Reader Service # 15 PRODUCE BUSINESS• DECEMBER 2009 Canada, suggeststryingthecompany’ headquartered inLeamington, Ontario, Tom Iles, salesmanagerfor Erie-JamesLtd., during thatperiod.” sellalotof whichwe push isonavocados, They are partofthedeliarea, soourbig trays orsalsasanddipsin our department. al Watermelon Promotion Board, based in twist onthetypicalsalsarecipe. TheNation- to puta market might encourage customers for produce departments to promote. Or, a attractive fruit platters andtrays available the SuperBowlperiod,butthere are many fresh vegetable platter,” hesays. and Sweetbay inFlorida,and are idealfor a customers ofHannaford Brothers inMaine Cukes. “Theyhave becomepopularwith P Caramel DippingPlatter, Tropical Fruitwith Veggie andCheesePlatter, Appleand Platter, Fruit&Chocolate Harvestincludes: trays,theselection tional fruitandvegetable BesidesthemoreReady Pac tradi- Foods Inc. available from Irwindale,CA-based are kitsandpartybowls, ters, alongwithsalad packaging.” with ourspecial over carried toothersportingevents be can good forthem.We SuperBowlsales believe andparents carrots, crunchy knowtheyare enjoythe marketing director. Kidsespecially market,”revealsretail DouglasMcFarland, multiplecolored forthe carrots catching line ofsports-themedtrayswithoureye- “We’vethemed trayofcarrots. introduced a quartered inSalinas,CA,offersafootball- ColorfulHarvest carrots, LLC,rainbow head- qualityandreduces shrink.” that maintains bined withmodifiedatmosphere packaging com- anddisplayattractiveness, efficiencies thedesignprovidesretailers, merchandising ofmarketing.“Fordice Blackmoore, director Can- durabilityandconvenience,” says both i popular.trays are especially Cheese andGourmetTurkey andCheese and configurations.The GourmetBeefand print partytraysinavariety sizes ofproduct oflarge- andsmall-foot- provides aselection basedinGuadalupe,CA, height. ApioInc., atits Bowl timewithinformalentertaining ncludes a rigid servingbase,unmatchedin arigid ncludes Colorful Party Trays Big Score Party Colorful When makingyourownvegetable tray, Fresh fruitmayseemneglected during completelineofevent traysandplat- A To emphasizethebrightappealofits “The Apiopatentedflip-traydesign are especially welcomeduringSuper are especially inpopularity.tinue toincrease They arty traysofallshapesandsizescon- Cool s director of sales andmarketing. ofsales director the SuperBowlperiod,”addsPhil Fendyan, during aggressive pricing trays andwillhave CA. “We andfruit alsoofferothervegetable Food Group inRanchoCordova, LLC, located seasonbyRenaissance ing thetailgating the football-shapedpartytraymarketeddur- football season.” sizing thatthetrayistoenjoyduring to‘Tailgaters,’ changethelabel can empha- Salinas, CA.“We offeravariety ofthem,and basedin forMannPacking Co.Inc., board dent marketingandco-chairmanofthe promotions,” assertsLorri Koster, vicepresi- lent additiontoany market’sSuperBowl generallyhigherring.” a at sales from incremental increased benefits guests forSuperBowlevents. The retailer easy toserve inspired restaurant foodto ness development. makeit “Ourproducts busi- ofstrategic out AliLeon, seniordirector home versus points goingtoarestaurant,” percentmore at are than60 entertaining Crème Dip.“Consumersurveys showthat Lemon ChiffonDipandApples&Cinnamon materials for ourretail customers.” uct information, canprovide recipes prod- andpoint-ofsale We edamame. similar to roasted garbanzos are eatenasfingerfood, prepared, inaboutsixto seven minutes, the fornia LLC,basedinSanger, CA. “Quickly ray, managingmemberofCalifresh ofCali- and football parties,” assertsMorgan Mur- tasty andnutritiousappetizer for tailgating “Fire Roasted Fresh Garbanzos are a hit asa consumer fans isthefresh garbanzo bean. available onthe Board’ and communicationsmanager. Therecipe is fish,” suggestsStephanieSimek,marketing serve asadiporgarnish for chicken or par melon Fire andIceSalsa.“It ’ Orlando, FL,hasbeenpromoting aWater- A bean dipisthefeatured bean ingredientin A “Vegetable partytraypacksare anexcel- An unusualappetizer thathasgained andisidealfor SuperBowlpartiesto e Photo courtesyofReadyPac s Web site. s easyto pre- pb pb Mexican Promotion Kicks Into High Gear Retailers and other buyers can take advantage of a variety of promotion and support programs backing the Mexican industry.

BY JODEAN ROBBINS

As one of the leading suppliers of fresh fruits fits for all. “Promotion really pushes the cross-over and vegetables in the U.S. market, Mexico business,” states Alfonso Cano, retail produce direc- has long been established as a reliable and tor for Gonzalez Northgate Market, a 30-store chain quality source of product. headquarterd in Anaheim, CA. “We can sell mangos Now, the Mexican industry, along with its U.S. or avocados with our eyes closed to the Hispanic partners, is offering a host of promotional programs market, but cross-over customers are attractive for for retailers and foodservice buyers. “Promotion building sales. As customers look for alternative programs are important in our market,” reports markets to shop because of the economy as well as Jimmy Ross, vice president produce operations for the growing interest in different foods, they’re mak- Lewis Foodtown, headquartered in Houston, TX, ing our stores a staple. Promotional programs give with 26 stores. “Making our customers more aware us some additional tools to reach out to these cross- of the products definitely increases sales.” over customers.” Whether you’re in a mainstream or more ethnic Having a storehouse of promotional tools at market, promotion of Mexican products has bene- their fingertips can give retailers an advantage. “Programs are being driven by industry need for more sophisticated support,” reports Jerry Wagner, director of sales and marketing for Farmer’s Best International, headquartered in Rio Rico, AZ. “Retailers today are under a lot of pressure for prof- its, especially during this economic crisis, and it means they depend on strategic programs that achieve real results.”

STRONG BACKING Mexican growers and exporters have invested time and resources into building a competitive busi- ness with solid support. “Produce from Mexico is becoming very competitive, which helps on pricing and with quality,” says Cano. “Companies coming out of Mexico and getting into the U.S. deal are now sourcing year-round and they have a lot of strength and support behind them.” Mexican producers are fortunate to have some stable programs backed by the Mexican govern- ment. “The Mexican government is working very hard to increase the export offer to the entire world,” says Jairo Luke Verduzco, manager of Hor- tiAmericas LLC, in Nogales, AZ, and Los Mochis, Sinaloa, Mexico. “ASERCA runs programs that help

Photo courtesy of The Oppenhe i mer Group Mexican growers to find new markets and new Mexican producers and their marketing partners offer a host of clients. This program is under the Secretary of Agri- promotional programs for retailers and foodservice buyers. culture in Mexico [SAGARPA] and the manager and

DECEMBER 2009 • PRODUCE BUSINESS 27 her team work very hard in promoting Mex- ican growers all over the world.” Two valuable programs backed by the Tips For Retailers Mexican government are the MexBest Pavil- ions at trade shows and the Direct Buying n addition to taking advantage of estab- increase sales by creating displays with ripe Program. “These programs are managed by lished promotional support from compa- avocados that are eye catching. Ripe avoca- ASERCA in coordination with the five For- I nies and organizations, retailers have a dos can outsell unripe by 2-to-1. Increase eign Agricultural Offices [located in Canada, variety of tools available within their own shelf space by using multiple display sta- the United States, Europe, Asia and Central hands to better promote Mexican products. tions to promote large and small sizes and America],” reports Froylan Gracia, coun- Here are some tips: different price points. selor for agricultural affairs at the Embassy Start with quality. “All the promotion in Make the most of POS. “The use of flyers of Mexico, in Washington, DC. “With the world won’t help if you don’t maintain and in-store tasting activities are key to pro- MexBest, the Mexican government sets up the product and give the customer the right moting any product,” states Froylan Gracia, pavilions at trade shows where Mexican stuff,” warns Alfonso Cano, produce director counselor for agricultural affairs at the firms of food products exhibit their goods. for Gonzalez Northgate Market, a 30-store Embassy of Mexico, in Washington, DC. Participation is fully subsidized including chain in Anaheim, CA. “You have to make “Consumer education is essential and show- construction, samples shipping, exhibits, sure the quality of the product is right for the ing them things such as when the product is etc. The only costs exhibitors incur are lodg- sales floor.” ripe as well as the best ways to eat it will ing and travel expenses. The Direct Buying Don’t shy away from prominence and help position the products in stores.” Programs objective is to link as directly as variety. “Consistent promotion, prominent “Showcase promotional cards and possible the Mexican growers/exporters positioning, larger displays and consumer recipes ideal for the football season as well with international buyers such as retailers, education are all part of the formula for suc- as healthy items such as packaged salads,” wholesalers, or distributors. This is done cess in any mango season,” says Wendy advises Escobedo. mainly by the organization of trade missions McManus, director of marketing for the Utilize suppliers and educate yourself. to Mexico, participation in trade shows and National Mango Board, based in Orlando, “Be ahead of the curve and know when the visits from Mexican companies to U.S. buy- FL. “During the Spring/Summer months, product is going to be available,” says Cano. ers.” many retailers can build sales by carrying “Be nosy and get more information from the Buyers benefit from the easy contact more than one variety and/or more than Internet, from suppliers, and even from visit- these programs provide. “The programs help one size of mango.” ing the competition.” support the Mexican producers in better “I normally run two to four Hispanic Cross-merchandise. “We suggest display- participating in the market and making our items in our ads,” reveals Jimmy Ross, vice ing avocados next to items they partner with products more available to buyers,” explains president of produce operations for Lewis in meals and recipes such as tomatoes, Verduzco. “For example, in the recent Pro- Foodtown out of Houston, TX. “We also pro- onions, lemons and limes,” says Escobedo. duce Marketing Association show, the Mexi- mote by displaying a larger end-table dis- “This reminds customers to purchase these can Pavilion (MexBest) was organized so the play. We draw attention to it and try to tie items, and provides a beautiful color con- buyers could most easily find the type of items in together.” trast as well. And don’t forget the power of product they’re looking for. Additionally, Emiliano Escobedo, marketing director suggestion! Try displaying avocados with having a kitchen where chefs prepared the for APEAM, based in Michoacán, Mexico pre-cut vegetables and platters, as well as different Mexican products was helpful to suggests, “Retailers can create hype and chips and beer.” pb allow attendees to try the different ways you can prepare or use these products.” Gracia adds, “By establishing a direct link between Mexican suppliers and U.S. buyers, industry,” says Brent Harrison, president of don Hunt, marketing director for the we allow for information to flow between Al Harrison Co. Distributors, located in National Watermelon Promotion Board, the buyer and the growers so that the needs, Nogales, AZ. “Its basic function is to based in Orlando, FL. “For the retailers, this requirements, specifications of the buyers increase consumption, promote health ben- means the more consumers know about the and consumers are passed along to the efits and work with retailers. Through their health benefits of watermelon, the more grower level. This helps avoid unnecessary promotions, we move more volume and they will consume. This is particularly the handling and repacking of products at mid- bring better returns to the farm, both case in the winter import season, since point distribution points. The idea is not to domestic and foreign. Retailers can benefit much of North America experiences fre- eliminate the middlemen, but to create bet- from the experience and data they provide, quent inclement weather and consumers ter channels of communication so that the as well as the available printed material. are more concerned about health issues, quality, deliveries and logistics are consis- This makes a difference for Mexican prod- weight loss and the need for exercise.” tent with what the retailer needs, helping to uct since 45 percent of consumption comes During this time of year, the NWPB reduce the margins in the distribution chain from imports during the year.” works to inform retailers and consumers of and getting a better return for the growers.” In its efforts toward year-round promo- the results of the latest scientific research in tion and sales of watermelon, the National areas such as the heart healthy aspects of COMMODITY-SPECIFIC HELP Watermelon Promotion Board (NWPB) relies watermelon. “The success of these efforts Commodity-specific programs abound to heavily on regular consumer research to can be seen in the steady increase in help promote products where Mexico has a gauge attitudes and awareness of watermel- imports of watermelon over the past several high participation in the supply. “The on. “Current research has confirmed con- years in the winter months,” says Hunt. National Watermelon Promotion Board pro- sumers are getting the message that water- “Unlike the summer season, winter season motes watermelons year-round for the melon is healthy and delicious,” says Gor- growth continues to be in the fresh-cut and

28 PRODUCE BUSINESS • DECEMBER 2009 Reader Service # 19 agency resulted in the Virtual Test Kitchen concept and we can’t wait to get started.” The Virtual Test Kitchen has very specif- ic foodservice application as well. “Our foodservice agency got very excited when they saw the plan for Virtual Test Kitchen and they wanted to get involved,” says McManus. “As a result, several foodservice publications will be included in the delivery program and these themes of varietal and ripeness differences will be woven into our foodservice PR efforts in 2010. The level of ripeness is particularly relevant to foodser- vice, where they may not have the storage space or the time to ripen firm mangos. We will be providing recipe ideas that work perfectly for crisp, firm mangos and ideas for very soft mangos, too.” Some new POS materials will assist retailers in educating consumers on differ- ent mango varieties. McManus explains, “We are developing some specific green- skinned mango and yellow-skinned mango POS materials to help educate consumers about their different options. Up to this Photo courtesy of APEAM point, when we have communicated with APEAM has launched a fully integrated marketing program to increase consumer shoppers at retail, the message has been purchase frequency and market demand for avocados from Mexico during the more generic, such as Don’t Judge a Mango Fall and Winter seasons. by Its Color. In 2010, we think some retail- ers and their customers are ready for the next level of mango education, which mini watermelon categories. To c o unter the mango ripeness and how to cut a mango, includes educating them about green- misconception that winter is not watermel- which can really help to overcome the ‘fear skinned mangos and yellow-skinned man- on ‘season,’ NWPB encourages retailers to factor’ that consumers somtimes associate gos.” remind their customers that no matter with mangos. Between June and August where it’s from, or when they buy it, water- 2010, this video will be viewed about 28 mil- TOP CHEF MASTER melon is ‘always in season.’” lion times, so the exposure will be fantastic.” Avocados from Mexico have launched a These programs were designed specifi- fully integrated marketing program to VIRTUAL TEST KITCHEN cally in response to consumer and press increase consumer purchase frequency and The Orlando, FL-based National Mango feedback. “With all of our marketing pro- market demand for avocados from Mexico Board (NMB) will introduce two dynamic grams, we are ultimately looking to the con- during the Fall and Winter seasons. Emil- programs for 2010, the Virtual Test Kitchen sumer and trying to unerstand how we can iano Escobedo, marketing director for and Celebrate Summer with celebrity chef, help them choose mangos more often,” says APEAM, in Michoacán, Mexico, explains, Ingrid Hoffmann. “The groundbreaking Vir- McManus. “Much of what we do is focused “One of the most notable program elements tual Test Kitchen program will be the cen- on educating consumers to overcome barri- is a special promotion with Bravo’s ‘Top terpiece of our 2010 outreach to consumer ers. That means teaching them how to Chef Master’ Rick Bayless during the holi- newspaper and magazine editors,” says select, ripen, cut and use mangos in their day and football season, which will be sup- Wendy McManus, director of marketing for own kitchens, and keeping mangos top-of- ported with online marketing, in-store retail the NMB. “It will include deliveries of man- mind so they are more likely to pick up displays offering free celebrity chef recipes gos, videos and information to various publi- mangos on their next shopping trip.” and the sponsorship of his nationally aired cations. Each delivery will be themed, with “Virtual Test Kitchen was formed in PBS show ‘Mexico — One Plate at a Time.’” our focus being on mango varieties and response to some particular challenges that The Avocados from Mexico Fall/Winter using mangos at different levels of ripeness. magazine editors expressed to us,” explains Marketing Program features new general We expect to see the initial results of this McManus. “They wanted test kitchen type market and Hispanic consumer radio, tele- program show up as print and online cover- experiences, but their busy schedules and vision and online advertising that will pro- age for mangos in Spring/Summer 2010, shrinking staffs were making it more and vide more than 1.7 billion impressions in which will be perfect timing for the Mexican more difficult for them to participate in test key markets. “In addition, Avocados from mango crop.” kitchen events. They also started asking Mexico is reaching consumers through McManus continues, “During our Cele- more advanced questions about mangos and national print ads in popular publications, brate Summer program, Ingrid Hoffmann helping us understand they were ready to the sponsorship of Rick Bayless’ national will appear on TV and the Web with great take their readers to the next level in their PBS show, strategic online marketing, summertime mango recipes. Ingrid always mango education. A series of intensive national public relations efforts and in-store takes the time to show viewers how to judge brainstorming sessions with our marketing advertising,” reports Escobedo.

30 PRODUCE BUSINESS • DECEMBER 2009 Not only our tomatoes, but our cucumbers, peppers, squash, melons, grapes and other produce we grow are picked at the peak of ripeness and color, providing great taste and nutrition. That's because they're treated with the best growth-promoter there is: tender loving care. Your customer also has the assurance of food safety programs that are some of the most stringent in the industry, including two separate third-party audits. Our sustainability and social responsibility programs have even won awards. All this is why your customer is now holding a tomato that is much more than you see: a tomato treated with TLC.

Call our Sales Office at 520-281-1411, or visit us at www.farmersbest.com.mx

Reader Service # 40 Prior to the development of the new to increase usage and purchase avocados as a positive. As far as our customers are Avocados from Mexico radio and television from Mexico. After months of research and concerned, their passion and pride is to buy spots, APEAM conducted Hispanic and gen- development, the new creative is ready to Mexican avocados.” eral market focus groups in Houston and go and scheduled to air starting November According to APEAM, this season, Avoca- Dallas, TX, in order to gain consumer 9th through the ‘Big Game’ in February.” dos from Mexico have increased their pro- insights to aid in the development of their Retailers very much look forward to the motional support and added more ways for strategy. “We wanted something relevant avocado program. “The biggest promotion the trade to get directly involved with pro- and motivating,” Escobedo explains. “We we’ve had has been with avocados,” says motions, including the Avocados from Mexi- wanted to brand Mexican avocados by dif- Cano of Gonzalez Northgate. “This past year, co “Best of Show” Display contest as well as ferentiating them from all other avocados. there was an entire media promotion and new POS materials. Escobedo describes, “In Based on the learning from the initial strate- educational pamphlet using our store as a addition to our extensive marketing efforts, gic research, APEAM created and tested sev- base to illustrate their points. APEAM does a Avocados from Mexico are offering retailers eral potential campaigns in order to identify really good job in providing a lot of POS a variety of newly-designed POS materials the one most likely to motivate consumers materials and in promoting Mexican origin featuring mouth-watering avocado dishes to help generate impulse sales in-store. Materi- als can be ordered online and include sec- ondary displays, POS cards, recipe cards fea- turing seasonal recipes by Rick Bayless, and danglers in English and Spanish.”

“By establishing a direct link between Mexican suppliers and U.S. buyers, we allow for information to flow between the buyer and the growers so that the needs, requirements and specifications of the buyers and consumers are passed along to the grower level.”

— Froylan Gracia Embassy of Mexico

“The avocado program gives us great advertising support with radio spots, POP materials and demos,” says Foodtown’s Ross. “The radio spots, POP and contests are very valuable. You can tie it all in and really cre- ate excitement at the store level with pro- duce managers. It gets them involved and gives them motivation.” Additionally, Avocados from Mexico has launched a training program aimed at retail-

Reader Service # 6 ers featuring the S.M.A.R.T. (Storing Mer-

32 PRODUCE BUSINESS • DECEMBER 2009 Reader Service # 52 In addition to offering a number of Mexican-grown products, including tomatoes, Farmer’s Best claims to be the first Mexican importer to have a dedicated category management program that provides retailers with promotional tools and support.

chandising Arranging Ripening Training) Kit earn the ‘S.M.A.R.T.’ certificate.” tomato category management program. to train produce managers about the latest Wagner explains, “Our marketing program is in Best Practices for handing and merchan- COMPANY INITIATIVES trade-directed, and we count on our cus- dising avocados. APEAM’s Escobedo says, Many retailers find ample and valuable tomers — the retailers — to do what they do “The hands-on training is available to retail- support from individual suppliers. “We get best in their own outreach to their cus- ers in need and includes a training DVD in promotional material and support from tomers. However, we provide communica- Spanish and English on handling and mer- many of our suppliers,” points out Ross. tion and promotional tools and support to chandising, backroom posters in Spanish “This is a great addition to the commodity- help them. For example, our tomato catego- and English, a training brochure and even specific programs.” ry program is the first of its kind by a Mexi- an opportunity for produce managers to Farmer’s Best is introducing a unique can importer and the only major one by a 4 3 5 3 # # Reader Serv i ce Reader Serv i ce

34 PRODUCE BUSINESS • DECEMBER 2009 Reader Service # 1 36 Reader Service #80 Reader Service #7 Reader Service #62 PRODUCE BUSINESS• DECEMBER 2009 tomato commodityinformation program we target andcustomize ourcommunications.” canfurther Web andonlinepresence sowe Soon, we are alsoplanningto expand our port, plustryto meetanycustom demand. increase sales. We alsoofferadordemosup- management ofthiscomplex categoryto help retailers train theirpersonnel onbetter shipper inrecent memory.Ourgoalisto Wagner continues, “We have ageneral “In today’s economy newspaper flyersas consumers respond particularly wellto promoted through displays instores.” well asprominent attractive pricing Divemex/Mexico — Jaime Tamayo , which benefitstheentire suplychain.” good experience, itleadsto repeat sales, tryitandhave a Tamayo. “Whenconsumers theproduct thefirst time,” says helps move ers are committingto food safetypractices.” last fewyears, largely becausemanygrow- products hasimproved significantlyinthe top-quality. Thereputation for Mexican are convey thefact thatourMexican peppers their regular promotions, retailers helpus quality items, suchasDivemex peppers in Guadalajara, Jalisco,Mexico. “Byincluding ing managerfor Divemex/Mexico in plays instores,” saysJaimeTamayo, market- though newspaper flyers andprominent dis- ularly well to attractive pricingpromoted today’ peppers through co-opadswithretailers. “In routinely promotes itsbulkandpackaged keting partner, TheOppenheimerGroup, suit thatsegment.” general guidelinesoftheretail program to foodservice clients, andwe willadaptsome approach to thecategory.We have several gory managementplan.Itisasoup-to-nuts specific guidelinesfor buildingatruecate- delves into regional salesdata andoffers gram justfor ourcustomers. Thislatterone have amore customized educationalpro- offer to anychainthatcontacts us. Then,we “Appealing pricingandvisiblepromotion Divemex, withitsNorth Americanmar- s economy,consumers respond partic- pb PRODUCE BUSINESS is accepting nominations for its Sixth 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, 1970).

To nominate someone, please go to www.producebusiness.com and click on the 40 under Forty icon, or fill out this form by March 1, 2010, and fax back to 561-994-1610.

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 the back of this sheet for this) Position ______Address ______City ______State ______Postal Code ______Country ______Phone ______Fax ______E-mail ______

Fax back to 561-994-1610 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] Texas Produce Industry Adapts To Adversity The Texas produce industry continues to evolve as it recovers from past weather disasters and develops stronger shipping ties with Mexican growers.

BY THERESA BRAINE

Texas, always a larger-than-life state, boasts head of the Texas Produce Association, the top pro- an equal-sized produce industry, with an duce items being shipped out of Texas are: citrus, expanded growing area thanks to Mexico. predominantly grapefruit (75 percent) oranges (25 percent); vegetables such as the state’s famed Texas From sweet ruby-red grapefruit grown on Texas 1015 onions, cabbage and a few other commodities. soil to the Mexican-grown avocados that supply a “We’re growing more and more greens and leading guacamole maker, produce grown in and herbs. They tend to be small-acreage, high-value exported through the state has a reputation as far crops,” McClung says. “The dominant import is away as Asia and Europe. limes but we also import most of the mangos con- “Take a bite of Texas produce and you quickly sumed in the United States, and those are huge vol- learn why we say Texas growers produce the best ume crops.” fruits and vegetables in the world,” says Texas agri- Texas has a very healthy produce industry, but it culture commissioner Todd Staples. “Our produce is is changing, says McClung. “Twenty, twenty-five well-known for its excellent taste and quality. Our years ago Texas was the No. 3 producer of fruits and farm-fresh fruits and vegetables vegetables, always trailing California and Florida.” enable our producers and industry However, he adds, a study conducted for the to continue to be recognized lead- Produce Marketing Association (PMA) earlier this ers in the global marketplace.” year “confirmed what I’d been saying for quite Texas’ produce industry is vital, some time, which is that Texas has slipped for some though it has undergone many reason ... from number three to below number ten.” changes throughout the past 20 “At the same time we’re shipping more products years. In 2008 the state produced from Texas to the rest of the nation than we ever $481 million worth of vegetables, have,” McClung says. “We’re going from being the top three being onions, cab- exporters to importers. The trend is to be more bage and watermelon, according importers than domestic producers.” to the Texas Department of Agri- “So that is probably the single biggest economic culture (TDA). reality we deal with in Texas... this shift to produc- “Right now citrus production is tion in Mexico and sales in the U.S.,” McClung says. in full swing, and retailers and farmers markets are pushing local- DIVERSE ITEMS AND SHIPPERS ly grown produce to their cus- Many shippers focus on citrus. Texas’ red grape- tomers,” says Julie Andrews, fruit is known for its sweetness and is sold from TDA’s coordinator for media and California to New York. Its oranges, though not as advertising. “Cabbage will soon be picturesque as California oranges, are big in west available in stores, and pecans are coast markets because they make great juice, being promoted in China, as well according to Trent Bishop, sales manager for Lone as here at home. Texas also pro- Star Citrus Growers, Mission, TX. duces many types of winter “Basically we have the West and Midwest,” says greens that are shipped across the Bishop. “Florida tends to pretty much wrap up the

Photo courtesy of Texas Department ofcountry. Agriculture Texas carrot production Eastern Seaboard; they have a freight advantage, for Cabbage is among the state’s top three will also soon be available.” one thing.” produced vegetables. According to John McClung, But from Texas north to Chicago, Detroit and

38 PRODUCE BUSINESS • DECEMBER 2009 West, Texas orange sales flourish. “Ethnic consumers are huge supporters of our orange crop,” Bishop adds. “Our oranges are the best juicing fruit out there. What we find is that Hispanics and the Asians are still juicing fruits in their kitchens, and they love our oranges.” An innovative seller is the maroon car- rot. According to Jeff Brechler, a sales asso- ciate at J&D Produce Inc., in Edinburg, TX, “The maroon carrot is the healthiest carrot in the world because it has higher levels of antioxidants, beta-carotene and antho- cyanin. That’s what gives it the purplish- reddish color. It’s the same antioxidant Photo courtesy of Texas Department of Agriculture that’s in cherries, grapes, blueberries and The Texas Department of Agriculture’s works directly with retailers and Texas pro- plums — that color on the spectrum.” J&D ducers to help them promote their products and make them easily identifiable. is the only licensed grower of this carrot in North America. Production moves north to The Edinburg Citrus Association knows sion, TX-based TexaSweet Citrus Marketing New Jersey during the summer months. about the freezes firsthand. There was one to promote grapefruit in Los Angeles, CA; Edinburg, TX-based Frontera Produce in 1983 and then another in 1989, says mar- Minneapolis, MN; Houston and San Anto- Ltd. focuses on other items, shipping keting director Paula Fouchek, based in nio, TX; as well as Canada. onions, cabbage, cilantro, chili peppers, jica- Edinburg, TX. “When you get into the twen- The TDA also works closely with the ma, pineapples, among others, says Ken ties for a longer period of time you begin to Southern United States Trade Association Nabal, vice president of sales, out of the lose fruit; low twenties and teens, and you (SUSTA) and its Go South program to pro- company’s Boca Raton, FL, office. begin to lose trees,” she explains. mote other Texas produce in Canada, and “We are proud of all of our product quali- At the time of the 1983 freeze there were partners with SUSTA to promote Texas pro- ty, especially Texas 1015s and our golden about 70,000 acres of citrus, Fouchek says. duce in other international markets, such as pineapples,” Nabal says. “We own our own Then it built back up to about 30,000 until pecans in Japan and China. plantation and have made huge strides in the 1989 freeze lopped a chunk off of that. Some Texas mushroom producers are post harvest to deliver the sweetest pineap- The growers took the time and effort to placing the Go Texan logo on their packag- ple with the highest shell color. Our advan- rebuild, she says, and it is pretty much ing and shipping their products nationwide, tage is the proximity to our packing back. Now the state is working to earn its focusing on the Midwestern states. house/plantation in Mexico, [which boasts a place back in the national consciousness. McClung says much depends on outside two-day turnaround].” factors such as the price of diesel, which Leigh Vaughn, director of produce and MARKETING EFFORTS gives Texas an advantage in some markets floral at Associated Food Stores Inc., in Salt Even in a down economy, “people are and is a detriment elsewhere. Texas has Lake City, UT, acknowledges, “We sell a ton still going to the grocery store and buying always had trouble selling to the U.S. coasts of Texas grapefruit. We will source cabbage fresh produce,” says Fouchek. “We’ve estab- because of Florida’s “quick shot” up the East when we get closer to St. Patrick’s Day. lished a reputation out there, and I think Coast and California’s equally easy access Texas cabbage last year was superior in that’s something that is there regardless of on the west. quality. And frankly the way they shipped the economy.” The Texas Department of Agriculture the product was better as well.” Specific marketing efforts by Edinburg works directly with restaurants, TDA-certi- Citrus focus on trying “to come up with fied farmers markets, pick-your-own farms, REBUILDING THE great ways of using our grapefruit other schools, retail chain stores and Texas produc- CITRUS INDUSTRY than just for a breakfast item,” she says. “We ers to help them promote their products and One reason the Texas produce industry want people to have grapefruit every day.” make it easier for consumers to identify isn’t quite what it used to be is that it has More and more, marketing is spearhead- Texas produce. Its Go Texan Partnership Pro- barely recovered from long-term damage ed by individual companies, McClung says. gram awards grants for in-store produce pro- inflicted by two devastating freezes that But efforts are also under way through the motions. The 2008 Go Texan Restaurant Pro- occurred in the 1980s. Texas Produce Association and the TDA. gram connects Texas producers with restau- “Many of the citrus groves that were “We are marketing vigorously to the rants, encouraging local restaurants to pur- affected by the freezes have been lost to nation’s retailers, both those that are head- chase Texas produce in return for TDA mar- development,” says Andrews of the TDA. quartered in Texas and those that are out- keting assistance. “New plantings and regrowth of damaged side of Texas,” McClung says. “We also are Fresherized Foods, makers of Wholly trees are in place, but production is not selling vigorously into the restaurant, insti- Guacamole, has taken Texas exporting to a where it was a few years back, because less tutional trade and foodservice industries.” new level by growing avocados in Mexico, land is available to plant citrus trees.” Wholesalers, retailers and farmers mar- Chile and Peru for use in its trademark Freezes weren’t the only adverse weath- kets work with the TDA’s Go Texan mem- guac-in-a-pouch and other products. It er conditions, the department noted. July bership marketing program, “which pro- swears by its Tex-Mex production combo. 2008 saw Hurricane Dolly sweep through motes the products, culture and communi- “We have Texas values, but we want to go South Texas, causing the loss of up to 10 per- ties that call Texas home,” according to the where the fruit’s the freshest, and that’s in cent of Texas’ grapefruit crop. TDA. The department is working with Mis- Mexico,” says Tracy Altman, vice president

DECEMBER 2009 • PRODUCE BUSINESS 39 of marketing. The company grows and processes 90 percent of its product in Mexi- co and then distributes it from Fort Worth. “We’re shipping Texas Produce Association members increasingly are buying land in Mexico, more products McClung says. But that’s still relatively less from Texas to the common practice than arrangements between U.S. companies and Mexican grow- rest of the nation ers, he says. Tight controls are in place to than we ever have. ensure that the products meet U.S. health and safety requirements and are grown to We’re going from U.S. specifications, he adds. Programs that encourage research and being exporters to development are also helping, the TDA importers.” says. The Specialty Crops Competitiveness Act of 2004, lets the U.S. Department of Agriculture (USDA) assist states in develop- — John McClung ing specialty crops by enhancing competi- Texas Produce tiveness through research, marketing, trade, Association safety, education and product development, among other initiatives. With this, the TDA is supporting 18 projects in food safety, edu- cation on the health benefits of produce by way of admitting that there is lots of consumption, increasing consumer aware- untapped potential for Texas produce. ness of Texas-grown produce and enhancing “The outlook is pretty positive,” says protection of Texas specialty crops from McClung. Given the new nutritional stan- plant pests and diseases. dards Americans are adopting, “and you look at per capita consumption of fruits and OPTIMISM FOR THE FUTURE vegetables, and you realize there is a great State agriculture officials are optimistic deal of room for improvement.” pb 1 14 42 #3 # # Reader Serv i ce Reader Serv i ce Reader Serv i ce

40 PRODUCE BUSINESS • DECEMBER 2009 Marketing Florida Strawberries These red beauties offer consumers a bright, fragrant treat when winter rolls around.

BY JACQUELINE ROSS LIEBERMAN

Timing is everything, especially when it allows for promotion of domestically produced comes to strawberries. Ted Campbell, execu- healthy product in ample supply during a time tive director for the Plant City-based Florida frame which would otherwise have significantly Strawberry Growers Association, knows Flori- less strawberry availability,” says Vincent Lopes, da strawberries, which are typically available vice president of sales for Dole Berry Co. LLC, in from November through early April, fill a gap Monterey, CA. in strawberry production from other regions, “During the winter, it’s primarily strawberries allowing retailers to offer fresh, beautiful and citrus when it comes to domestic fruit supply, strawberries all year long. and in recent years, the momentum has swung to berries,” Lopes continues. “For some years now, strawberries have been moving toward that banana “Florida strawberries fill a market window that model of being on the shelf 52 weeks a year, and as comes in the months that California historically has the largest part of the category, strawberries have had their lowest production,” explains Gary Wish- catapulted berries to the No. 1 position in North natzki, president and CEO of Plant City, FL-based American retail sales since the end of last year.” Wishnatzki Farms. Many California-based growers have jumped on “Florida is the winter strawberry capital of the the bandwagon, adding Florida strawberries to their United States,” proclaims Tom O’Brien, president of lineup over the years. “It fills a nice production pat- C&D Fruit and Vegetable Co. Inc., headquartered in tern for our year-round harvest,” remarks Dan Bradenton, FL. “Retailers and their customers Crowley, sales manager for Well-Pict Inc., located expect the sweet eating strawberries of Florida in Watsonville, CA. from December through April.” Driscoll’s, in Watsonville, CA, also grows in “It’s great for consumers because they get a win- Florida as well as California and Mexico. “The Flori- ter treat,” adds Keith Mixon, president and CEO for da strawberry season is unique because it marks SunnyRidge Farm Inc., out of Winter Haven, FL. the advent of winter production for local and “The Florida strawberry season is important to regional customers in both the Midwest and East the industry, retailers and consumers alike as it coast, and offers a close-to-market strawberry solu- tion,” explains Val Sill, strawberry business manag- er. “This is important because it optimizes the fruit quality by reducing time-to-market, ultimately maximizing freshness and shelf-life for consumers.”

HOME-FIELD ADVANTAGE Regionally, Florida-grown strawberries are cele- brated for their freshness. Unlike California straw- berries, which must be trucked from coast to coast, Florida strawberries can make it to East coast retail- ers in a matter of hours. Lakeland, FL-based Publix Super Markets Inc. uses that proximity to its advantage. “They are Florida-grown, so they have a shorter delivery time

Photo courtesy of Sweetbay Supermarket from field to store — often as little as 24 hours,” Sweetbay Supermarkets take advantage of locally grown strawberries with reveals Maria Brous, director of media and commu- heavy promotional efforts throughout the season. nity relations. “Publix always strives to offer the

DECEMBER 2009 • PRODUCE BUSINESS 41 best quality and value of produce, grown as close to home as possible. Our Publix pro- duce associates are experts on produce and Improved Varieties seasonal items.” At Tampa, FL-based Sweetbay Supermar- ket, proximity to Florida strawberry growers lorida strawberry growers have ones. “Driscoll’s continues to develop has made promoting the local fruit at its improved their varieties dramati- and introduce new proprietary varieties stores a no-brainer. “It’s our home-field F cally over the past 10 years, accord- in all districts, a constant effort towards advantage,” declares Steve Williams, director ing to Ted Campbell, executive director our goal of providing premium quality of produce and floral. of the Plant City, FL-based Florida Straw- berries with delightful flavor,” reports Val Tom Deblieck, Sweetbay category man- berry Growers Association. “We’ve built a Sill, strawberry business manager for the ager, adds, “The fresher they are, the better strong popularity around having good Watsonville, CA-based company. “In they look. They even smell better.” varieties to offer,” he says. And he Florida, specifically, we are very excited For the past seven years, Sweetbay has expects varieties to continue to improve. about such new varieties as they will worked with the Florida Strawberry Growers To day, “Florida strawberry growers provide a clear point of differentiation Association to promote the berries more are fortunate to have several varieties for our trade partners.” and more each year. As a result, “It’s the one that ship well and also have very good Well-Pict Berries is excited about its promotion that absolutely fires up the stores flavor profiles,” relates Gary Wishnatzki, latest proprietary variety. “A third of our in a big way,” says Williams. “We start pro- president and CEO of Wishnatzki Farms, acreage will be this proprietary variety moting them in mid-December and go all headquartered in Plant City, FL. “I this year. It has great flavor, appearance, the way to the first week in April.” believe that if you ask consumers what aroma and yield — especially flavor. It’s Local and regional consumers appreciate they like about Florida strawberries, they always about flavor for us,” says Dan that freshness. “When the consumer — will tell you that they like the fact that Crowley, sales manager for Well-Pict mostly Eastern and Midwestern U.S. resi- they taste good.” Inc., headquartered in Watsonville, CA. dents — sees ‘grown in Florida’ by, say, “Florida has great tasting varieties At Wishnatzki Farms, “Radiance and O’Brien Family Farms, they know they are during the winter season,” agrees Keith Palomar are the two most promising new getting a great eating berry that is grown Mixon, president and CEO for Winter varieties,” says Wishnatzki. “We have closer to their area,” notes O’Brien of C&D Haven, FL-based SunnyRidge Farm Inc. been trialing Palomar, a University of Fruit and Vegetable. “They have great shippability. They taste California cultivar, for the last two years. great and they look good on the shelf.” We believe its earliness and good flavor SUPPLY RISING TO While many growers use common, will make it popular. The Radiance is a MEET DEMAND proven, Florida varieties, some individ- new UF cultivar. It also will fill in the Florida strawberry growers hope that this ual companies contin ue to develop new early season market.” pb year’s volume will be higher than this past year’s, which was erratic at times due to year. Retailers should look forward to great Campbell believes Florida strawberries weather. “The acreage in the industry is up quality and promotional opportunities from will continue to sell well this winter. “Cus- 10 to 15 percent,” reports Mixon. “The Florida January through March.” tomers are economically stressed, but peo- increase in demand for strawberries has a In addition, growers plan to offer new ple will buy things that are an indulgence, lot to do with that.” products and services related to Florida- even in these times,” he says. “The Florida acreage is up overall,” grown strawberries. “Wishnatzki Farms will Growers expect demand will continue to agrees Wishnatzki, “and there will be quite a have an expanded offering of organic straw- increase. “Despite many years of tremen- diversity of varieties, meaning supplies berries,” Wishnatzki discloses. “We are dous growth, the retail community is not should be steady, barring unusual weather developing a new 2-pound package for con- backing away and is still projecting signifi- events. There is a normal seasonal dip in ventional berries.” cantly more sales moving forward,” notes supplies in early February due to the short- Two -pound packages are growing in pop- Lopes of Dole. “Recently, the industry has ness of the day length. The mix of varieties ularity, according to Williams and Deblieck been selling more berries at higher price should help minimize that impact, but of Sweetbay Supermarket, because they are levels than before in and more importantly, Mother Nature is a fact of life.” a slightly better value and good for large shippers are able to promote volume at “Acreage is up relative to last year, but it families. “It looks very attractive on the dis- higher prices than in the past. This is impor- doesn’t necessarily compute to more vol- play, too,” adds Deblieck. tant as growing costs have also increased ume,” explains Crowley of Well-Pict Berries. The Florida Strawberry Growers Associa- considerably and the improved market tone If volume should be lower than demand, tion is doing its part to increase consumer is necessary to keep growers profitable.” Well-Pict is able to fill in with strawberries demand. “We have good press kits available from other regions, he notes. for the media,” says Campbell, which pro- HOW TO SELL MORE At Driscoll’s, “This season’s plants are motes the berries as both delicious and Displays are key to growing Florida looking remarkably strong,” reports Sill. healthful. Additionally, the FSGA is working strawberry sales. “Strawberries are an “Driscoll’s proprietary varieties are showing with Taste of the South magazine to promote impulse buy,” reminds Campbell of the healthy and uniform plant-stands, which the berries through a Florida strawberry Florida Strawberry Growers Association. should result in great quality and produc- recipe contest. “People see them, they’re beautiful and they tion. We are very excited about this coming “We produce a lot of material for schools buy them. Strawberries have a 96 percent 2009/10 season in Florida,” she continues. and educators, as well,” adds Campbell. popularity for a reason. When you smell “Driscoll’s Florida volume is expected to be “We’re always looking for ways to increase that nice ripe strawberry, it’s a trigger. It’s a higher this season compared to this past berry consumption.” very sensual piece of fruit.”

42 PRODUCE BUSINESS • DECEMBER 2009 Reader Service # 65 “I think the best thing is putting the best to watch the display, but you’ll gain impulse tional materials, as well. “Publix is very product out there,” agrees Crowley of Well- purchases. You have to measure incremen- committed to our Florida strawberry grow- Pict Berries. “People don’t necessarily have tal sales versus the extra labor to care for ers,” asserts Brous. “As part of our At Sea- strawberries on their list.” those displays.” son’s Peak program, now in its third year, Campbell recommends cross merchan- For additional support, the Florida Straw- we promote our Florida strawberries in- dising strawberries with other grocery berry Growers Association offers materials store and with media support in the form of items, such as bakery items and whipped for retailers, such as care and handling radio and billboard ads. Since strawberries topping for shortcakes to increase not only sheets, as well as information that retailers are available globally year-round, customers impulse purchases of strawberries, but of can offer consumers, such as recipe cards. have lost touch with the seasonality of pro- other items, too. This can be done in the Growers can also provide assistance. duce. Throughout our At Season’s Peak pro- produce department as well as other loca- “We’ve done in-store promotions and sig- gram, we remind our customers when Flori- tions around the store. Campbell notes, “If nage. We offer all kinds of promotional da strawberries are at their peak of flavor you have multiple locations, you have to materials,” says Crowley. and ripeness.” The At Season’s Peak pro- watch the refrigeration issue and you have Some retailers create their own promo- gram is also used to promote other produce items, including King of the West Honey- dews and Washington Apples. “During our At Season’s Peak program, strawberries are featured in our ad. In addi- tion, we provide recipes for the strawber- ries,” details Brous. Sweetbay Supermarket stores go all-out when it comes to Florida strawberries, according to Williams. “We filmed our own commercial for strawberries. We’re probably the only supermarket that has a commercial just about strawberries. We have roadside signs. We have in-store signage. We have a pretty lucrative contest between stores for sales,” he says. “We do a lot of tie-ins with grocery items, such as strawberry shortcake,” says Deblieck of Sweetbay. “We promote every week through the whole season. That creates a destination throughout the season.” Although many shoppers go to Sweetbay specifically for strawberries, their monu- mental displays ensure that impulse buyers are not ignored. “In 95 percent of our stores, strawberries are the first display they see — it’s pretty massive, right when you walk in the store,” Williams points out. “The aroma, the nice redness, it just screams fresh. It screams Florida.” In addition, some Sweetbay stores have secondary displays in key locations, such as near the bakery — where cross merchandis- ing is emphasized — or outside in front of the store on weekends. “We encourage sam- pling,” says Williams. No matter how you choose to promote Florida strawberries, communication with growers is key, especially when it comes to winter’s unpredictable weather. “The secret to success in moving berries is to make appropriate plans. All too often, retailers become reactionary,” reveals SunnyRidge’s Mixon. By keeping communication open 60

# with growers, retailers can get the ‘head’s up’ they need. “We’ll tell retailers, ‘In two to three weeks, there will be a great opportuni- ty for promotion.’ Let your consumers know there are going to be plenty of strawberries,”

Reader Serv i ce he suggests. pb

44 PRODUCE BUSINESS • DECEMBER 2009 During every step along the journey from field to market, with our focus on the ultimate in food safety and product freshness, C & D’s personal touch provides quality assurance to our valued customers… …almost as if each berry is one of our children.

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800-899-9175 • 941-744-0505 • Fax: 941-747-8895 Tom, Steve, Dave, Frank, Sam and John Reader Service # 75 Category Development Practices Reveal Value Option of Potatoes and Onions Is it time to refresh these traditional categories in your stores?

BY MEREDITH AUERBACH

In today’s world, category management Simple to define; harder to pull off. tends to mean the detailed process whereby Sexy Top 10 categories such as berries, grapes retailer and supplier-partners collect and and tomatoes attract lots of attention from partners analyze aggregated and differentiated store- who want to work with retail customers to maxi- level scan data in an effort to make a catego- mize categories. Items such as packaged salads ry more productive and profitable. have some of the best data. Other commodities, squash or smaller more exotic fare, often have trou- In actuality, both retailers and suppliers have ble getting good data or interest from retail man- practiced intuitive category management since agers. Management time is a finite resource and retail began. Fundamentally, it is offering the right you have to go where the biggest results happen. product at the right price to the right consumer. So, consider the potato. Potatoes rank at the top When done effectively, sales and revenue increase. of the volume and sales list for vegetables. There’s plenty of activity in areas of varieties, packaging and sourcing and the recession is drawing more consumers back into the kitchen. The concept of value is hot and potatoes fit the bill. Over the last several years, the Denver, CO- based U.S. Potato Board (USPB) has identified itself as the center of potato category management resources and even developed a separate online portal to allow access by growers, shippers, retailers and other interested parties to take a look at the data. Kathleen Triou, vice president for domestic marketing of the USPB, notes, “We view the process as category development rather than category man- agement and want to allow full access to the data and be as inclusive as possible.” Visitors to the portal can view quarterly and yearly data at the total U.S., regional and major market level. Composite comparisons are between any of the 47 major markets and its region. There’s plenty to learn, but it is not effort-free. You can see the relative volume and dollar sales The wide variety within the potato category, including packaging and of the varieties making up the category, the ebb regional options, draws consumers back into the kitchen. and flow of changing consumer preferences for

46 PRODUCE BUSINESS • DECEMBER 2009 Reader Service # 44 What About Onions? Will The Same Strategies Work?

ong paired in produce department displays, potatoes and wish more retailers would ask us to be category partners; we’d do it onions may share the role of cooking vegetables and require in a heartbeat. Onions are a basic ingredient — and a major one. L the same conditions in transport, storage and display, but That makes the category a catalyst for incremental sales from a could hardly behave more differently at retail. Some category devel- basis of dry, yellow onions all the way up to specialty varieties such opment principles do remain the same. as leeks, shallots and cipollini. We specialize in yellow, white, red Few category management programs are in place, and yet, and sweet onions packed for bulk display or in 2- to 5-pound bags onions also place in the Top Ten list of produce categories with a with high graphic consumer information to attract consumers with category contribution to department sales of 3.5 percent and 2008 recipes and information. We find today’s consumer is very educated per-store, per-week average sales of $1,365 from data supplied by about onions, especially the specialty varieties such as sweet Italian Barrington, IL-based Perishables Group. reds, Maui and Vidalias. Retailers need to offer them as soon as Dick Spezzano, founder and president of Spezzano Consulting they are available, even if it’s not going to be in every store.” Service Inc., in Monrovia, CA, says, “Onions are a unique category The category is composed of dry onions — yellow, white, red, as they are so inelastic. Changing the price typically does not sweet, shallots, pearl and boiler — and fresh onions — leeks, scal- impact volume. So ad promotions of basic onions are generally lions and chives and a relatively new segment of fresh-cut or value counterproductive and only erode margins. Ads of specialty onions, added. They are stable, steady performers with good peaks during in essence promoting around more common onions, encourage trial holidays. Robert Schueller, director of public relations for Melissa’s of different varieties and increase sales within the category.” World Variety Inc., in Los Angeles, CA, reminds retailers, “Don’t over- “The onion category falls into the Top 15 categories every quar- look the importance of organic onions as an integral part of the cat- ter,” reports Greg Calistro, director of produce for Save Mart Super- egory, especially during peak pre-holiday shopping periods. You markets, headquartered in Modesto, CA. “As a high volume catego- can make a strong category even stronger.” ry, it is vital to our business to have a plan for it. By looking at Rest Nelia Alamo, director of sales and marketing for Gill’s Onions of Market (ROM) data, planning every-day retails, promotions, quar- LLC, based in Oxnard, CA, makes a similar pitch for value-added terly sales and profit goals with our supply partners, we have been onions — refrigerated, fresh-cut, diced and sliced — saying, “It’s not able to achieve our goals quarter after quarter. necessarily a different consumer uses fresh-cut, but it may be for a Grant Hunt, president of Grant J. Hunt Co., based in Oakland, CA, different occasion. There’s also a whole new generation of cooks to notes, “We view category management programs as a way to devel- whom convenience is still in demand.” op partnerships between retailers and suppliers to drive sales that The need for a full assortment of onions on display mirrors pota- involve consistency, coordination and the use of data to better toes with products designed for every level of consumer. Clearly understand the consumer. Our goal is to define value and develop segmented and tiered pricing helps gain advantage in sales. Infor- consistent distribution to meet consumer needs. In onions, that mation and recipes attract consumers of all culinary skill levels to means reviewing data to drill down to the individual store level, find make the best use of the many varieties and forms. “Promotions in out what works where and plan specific go-to-market strategies at the form of discounts and BOGOs are a big piece of getting con- store level. sumers to try new forms and varieties of onions and when done A similar point of view comes from Darrell Kelso, Jr., owner and strategically, can double or triple movement, adding incremental president of Onions Etc. Inc., headquartered in Stockton, CA, “We sales,” says Alamo. pb

larger or smaller bags, bags compared to son, category development leader for C.H. sets. Growth in specialties, such as finger- bulk and the impact of promotion on sales. Robinson Worldwide Inc., headquartered in lings and varieties, such as purple potatoes, These numbers constitute the science of the Eden Prairie, MN. has slowed but is still positive. process. Turning the numbers into manage- Dick Spezzano, president and founder of Jennifer Campuzano, account manager able, executable strategies for assortment, Spezzano Consulting Service Inc., based in for potatoes with Barrington, IL-based Per- pricing, merchandising and promotion is Monrovia, CA, agrees, calling it “show ishables Group, points out, “Potatoes contin- the art. against the town.” ue to be one of the most affordable options Most of the supply side of the potato in the produce department. The category industry has gratefully turned to the USPB A CURRENT SNAPSHOT has seen consumers trading down from the to provide the service of category manage- For the last year through the end of mainstream segment of 5-pound bags to the ment data and analysis. Retailers and suppli- August, 2009, nationwide, potatoes stand in bargain segment of 10-pound bags, which ers who do work individually together are third place with sales earning 6.2 percent typically have the lowest price per pound.” heavily invested in their process and results total contribution to produce department Another side of trading down is restau- and understandably unwilling to share infor- sales, over $1.6 billion. Greatest volume rant patrons cutting back, but wanting to mation on what they regard as a competi- sales occur in the East and Central regions. duplicate at home what they have had in tive advantage. “Our retail customers are The share of department sales is highest in favorite restaurants. These consumers help particularly interested in comparing them- the South, and potato sales are increasing. keep the premium and specialty segments selves to what other people are doing, espe- Bag or package size is moving from smaller moving. According to the Wall Street Journal, cially direct competition,” says Tom Thomp- quantities back to the 10-pound bag of rus- cookbook sales have been strong relative to

48 PRODUCE BUSINESS • DECEMBER 2009 the book market overall and publishers come from the specialties. Premium pack- ter 1 of 2009, 10-pound bags increased more released nearly 14 percent more cookbooks ages boost gross margin. USPB tests and than 37 percent and topped the 5-pound bag in 2008 than the year before. reports indicate adding specialties, organics, that previously dominated sales for the last premium and value-added products have several years. USPB has added packaging to WHO HANDLES CATEGORY added up to a 15 percent increase in total its list of Best Practices, pointing out the MANAGEMENT? category sales in some chains. These increase in smaller household sizes and Anyway you look at it, the category man- enhancements also provide a means to dif- their need for smaller, but no less appeal- agement process is long-term, time-consum- ferentiate a chain from the competition and ing packages. ing, expensive and, depending upon imple- appeal to the specific demographics of indi- mentation and execution, potentially very vidual stores. 2)Pricing: Communicate effective and rewarding. Assortment means more than just vari- The Value Proposition Suppliers often look at it as a means to eties. Size and packaging also count in the When there is downward pressure on build stronger, fact-based relationships effort to meet consumer demand. In Quar- pricing as in hard economic times, it is espe- designed to build business on both sides of the table and offer the service as one way to differentiate themselves from the competi- tion. This approach can take sales from being simply the lowest cost to being able to look at the role of individual items — increasingly proprietary — and helping to find the right product and mix each demo- graphic group. Commodity promotion groups, such as the USPB, can bring specific expertise and focus to the process. Working with retail partners, the board has the ability to drill down to the zip code and individual store level to spot opportunities. But in a sense, a given retailer’s suppliers may be left out of the loop and pushed more into a com- modity mode at a time when specialty, proprietary, private label and value-added offer the promise of greater store identity and differentiation. Product coding at the consumer package level, only now becoming common through- out the produce department, has the poten- tial to change the dynamic of category development into something we can’t quite yet see. Time will tell how big the changes will be.

POTATO CATEGORY DEVELOPMENT GUIDE “After years of working with retailers, one of our major contributions to the process has been the development of cate- gory Best Practices protocols for the disci- plines of assortment, pricing, merchandis- ing and promotion,” says the USPB’s Triou. “There are seasonal considerations, of course, with the strongest results in Quar- ters 1 and 4, late fall and winter and opera- tional issues based on the ability of individ- ual retailers to implement changes across multiple stores.” The following considerations should be made when managing the potato category:

1)Stock The Full Pyramid While russet, red, white and gold vari- eties can comprise well over 90 percent of

the category, incremental and impulse sales Reader Service # 4

DECEMBER 2009 • PRODUCE BUSINESS 49 cially important to clearly segment pricing found tiered pricing can increase net dollar to reflect value, taking increases where they sales up to 4 percent. are available in premium or specialty prod- ucts and driving volume with some of the 3) Merchandising: Match bargain and mainstream selections. Con- Display With Information stant comparison to the rest of the market Merchandising is most powerful when it becomes a key task. “Retailers should avoid matches consumer needs and solves prob- having the lowest price in every segment,” lems. That can mean displays grouped by advises Grant Hunt, president of Grant J. usage and type, rather than segment or Hunt Co. in Oakland, CA. “It’s a one-way packaging, or by including nutrition infor- road down and not a sustainable strategy.” mation and quick recipes. Additionally, USPB recommends tier The goal is to encourage shoppers to try pricing with perceptible gaps between all different potatoes and understand the best segments. The organization’s tests have ways to use them. Make sure specialty and

premium selections have enough space and are easy to reach, although lower priced bar- gain and mainstream bags and bulk will earn most of the space and drive the vast majority of the sales. Aligning display space with sales ratios is the first step, while rec- ognizing store audiences and their prefer- ences comes next. USPB test stores that used effective con- sumer information and Best Practices rec- ommendations outperformed matching stores with such consumer communication in the same chain by up to 40 percent in vol- ume and 52 percent in dollar sales.

4)Promotion: Grab Consumer Attention And Dollars Most retailers expect that investment in a good promotion should yield between dou- ble, and perhaps triple, the lift in volume and increase sales of the department as a whole. Data shows the greatest potato lift in support of major holidays such as Thanks- giving, Christmas, Chanukah and Easter. While the USPB recommends retail pota- to promotions nine to 10 times each quarter, C.H. Robinson’s Thompson has found once a month to be effective for the company’s retail customers. He reports shares of pro- motion over the last three years has changed, “In 2007, 10-pound bags represent- ed only 16 percent of promotions, increas- ing to 18 percent in 2008 and 24 percent in 2009. However, the opposite movement has occurred in 5-pound bags, dropping from 47 percent of promotions in 2007 to 39 percent in 2009. Three-pound bags have also gained promotion share. The implication is better results at both the top and bottom ends of the spectrum.” USPB Best Practices include discounting potato pricing less than 25 percent on pro- motion and making promotions multi-vari- ety-packaging-type and making sure to included bagged potatoes as part of every promotion. Regional preferences are impor-

Reader Service # 74 tant, too. pb

50 PRODUCE BUSINESS • DECEMBER 2009 HEALTH INITIATIVES Strategies to educate produce executives and their customers on health and nutrition benefits to drive consumption.

SPONSORS KIWIFRUIT...... 52 sponsored by Cal-Harvest Marketing, Inc.

SALADS ...... 54 sponsored by Dole Foods

SWEET POTATOES ...... 56 sponsored by Mann Packing Company, Inc.

APPLES ...... 58 sponsored by New York Apple Association

ARTICHOKES ...... 60 sponsored by Ocean Mist Farms

STRAWBERRIES ...... 62 sponsored by Red Blossom Sales, Inc.

PINEAPPLES ...... 64 sponsored by Turbana Corporation HEALTH INITIATIVES

CAL-HARVEST MARKETING, INC. CATEGORY: 8700 Fargo Ave., Hanford, CA 93230 Kiwifruit 559-582-4000 www.calharvest.com Interview with John Fagundes, President, Cal-Harvest

al Harvest Marketing, Inc., a large grower of kiwifruit, A: Many studies, avail- was formed in 1988 and is owned by Fagundes able on the Cal Harvest C Agribusiness, based in Hanford, CA. Cal Harvest mar- and industry Web sites, kets fresh fruit in North and South America and the Pacific Rim. support the previously mentioned health claims. Q: Can you point to the nutritional properties in your product Green kiwifruit also works that make it an essential part of a healthful diet? well as a natural digestive A: Kiwifruit, already on Dr. Steven Pratt’s elite list of Super- aid and may help relieve Foods, has been found to be among the highest in asthma symptoms in chil- bio-availability compared to other anti-oxidant rich fruits and dren. berries according to research at the USDA’s Arkansas Chil- dren’s Nutrition Center in Little Rock. Dr. Ronald Prior and his Q: Since the FDA has team also claim, “Learning that antioxidants should be con- strict guidelines on what sumed with every meal, and if you routinely skip antioxidants health claims a company in your diet, over time, the excess number of free radicals being can make, what can be produced may begin damaging cellular components, ultimately advertised or put on your leading to atherosclerosis and cancer.” product’s labels ? A: FDA has approved the Q: What are the latest news flashes/surprises regarding following nutrient content health/nutrition benefits of eating kiwifruit? descriptors for kiwifruit: low- A: Bite for bite, kiwifruit contains more essential nutrients fat, saturated fat-free, sodi- than 27 of the most popular fruits, as proven by a Rutgers um-free, cholesterol-free, high in University study, making it one of the most nutrient-dense fruits fiber, high in vitamin C, a good source in the world. of vitamin E and a good source of potassium. Recent research conducted by the University of Oslo in Nor- way reveals that consuming two to three kiwifruit per day can Q: What challenges do you face in getting the health mes- work to thin blood, reduce clotting and lower fat in the blood sage about kiwifruit to consumers and what solutions can you that can cause blockage. In short, kiwifruit consumption has offer? similar effects to the daily dosage of aspirin recommended by A: Though kiwifruit has been readily available in North physicians to improve heart health. America for many years, some consumers have never tried one. Efforts should always be made to get consumers to try the fruit Q: Are there any notable health reasons to target specific and experience its unique taste year-round. California demographics or age groups with your product? produces the most volume of fruit, from October through April, A: Kiwifruit is popular among children because of its small Chile offers fruit April through August, New Zealand exports size, convenience, sweet taste and colorful appearance! And kiwifruit to North America June through October and Italian because of its nutritional value and year-round availability, kiwifruit comes in January through April. moms love it, too. Kiwifruit is also popular among adults and senior citizens. Q: What are the best strategies to relay nutritional/health Research has linked it to reducing the risk of age-related macu- information to consumers on the retail floor? lar degeneration, the leading cause of irreversible blindness in A: Display: Display kiwifruit next to other SuperFoods, such older Americans. as avocados, blueberries, oranges, broccoli and pomegranates Kiwifruit also has a moderate-to-low glycemic index of 52, to form a “Power Aisle,” and display kiwifruit sliced and over- making it a safe choice for those with Type 2 diabetes. wrapped. Point of Purchase/Signage: Signage should promote the Q: Are there simple, catchy phrases to market the health ben- health and nutritional benefits of kiwifruit. Make sure con- efits of kiwifruit? sumers see placards showing the ease of cutting and scooping A: Here are some messages developed by Cal Harvest and the fruit. It can also be eaten whole (skin included) once the the kiwifruit industry: Fuzzy Fruit — Fabulous Flavor, Power Up fuzz is rubbed off. with Kiwifruit — A Nutritional Superpower, Kiwifruit — The Offer in-store demos: Most people will buy kiwifruit after New SuperFood, Green Kiwifruit — The Classic Original — A sampling it. Super Tropical-Sweet Sensation, Organic — 100% Super Natur- Sell in multiple pack styles and sizes: Give consumers a al Quality, Chewable Vitamins, Lean, Green Kiwifruit Machine. choice by placing bags or multi-unit packages with bulk dis- plays. Q: How does your product deliver a powerful punch of nutri- Advertise: Sales increase as much as three times when tion? Do studies back up these claims? advertised.

52 PRODUCE BUSINESS • DECEMBER 2009 “Cal-King", being the oldest continuously used label of kiwifruit, represents one the largest kiwifruit growers in California. This label is marketed by Cal Harvest Marketing, Inc., a family-owned farming and marketing organization that has been at the fore-front of the kiwifruit industry in California since the 1970’s. This kiwifruit has been grown, picked and packed with care and pride for over 30 years. And as your customers start asking about food safety and the environment, you can assure them that Cal-King kiwifruit is safe and has one of the lowest carbon footprints of any kiwifruit sold in North America. The label is now available in both conventional and organic styles. Cal Harvest also markets kiwifruit from Chile and New Zealand to assure you have a high quality, year-round source of kiwifruit.

For information contact: Donna Fagundes • [email protected] • John Fagundes • [email protected] Phone: 559-582-4000 • Fax: 559-582-0683 • www.CalHarvest.com

Reader Service # 41 HEALTH INITIATIVES

DOLE FOODS CATEGORY: One Dole Drive Westlake Village, CA 91362-7300 Salads 1-800-356-3111 www.dole.com Interview with Jennifer Grossman, Vice President, Dole Nutrition Institute

ole Food Company, Inc. is the world’s largest producer offer a convenient, healthful way to and marketer of fresh fruit and vegetables. Chairman get what you need. Harvard D and owner David H. Murdock started the Dole Nutrition researchers found Institute nearly six years ago to “feed the world with knowl- middle-aged edge” through publications, Web sites, videos, articles, packag- women who ate ing and consumer outreach. The institute’s main mission is to the most leafy educate the public about the benefits of fruit and vegetable greens and/or cru- consumption, while also providing nutrition marketing, label- ciferous veggies ing and research support for internal Dole divisions. boosted their odds of maintaining mental Q: How can you distinguish your product from the pack and sharpness in later all the competing nutrition information as people focus more on years, and those who ate the obesity epidemic? at least three servings of A: Simply put, eating our products — specifically salads — spinach and broccoli is the solution to the obesity epidemic. Fruit and vegetables actually did better on cog- have low-energy density, a fancy way of saying they have very nitive tests than those who few calories compared to other foods, pound for pound. Com- ate less. pare a pound of spinach (104 kcals) to a pound of potato chips (2247 kcals) and you’ll see what we mean. Not only does the Q: Are there any myths or spinach have fewer calories, but it also has a much higher confusing nutrition informa- water and fiber content, which helps fill you up so you eat less tion about your product that of other, more fattening foods. Leading scientists are exploring you’d like to clear up? the link between obesity and nutrition deficiencies. A: A serving of iceberg let- A balanced meal with salad can nearly fulfill your require- tuce actually provides nearly a quarter of your daily needs for ments of several key nutrients, providing a deeper sense of vitamin K, higher intakes of which are linked to a 65 percent satiety and curbing the overeating cycle. Researchers have lower risk of fractures among the elderly. It’s a decent source of proven when you start with salad, you consume fewer calories the antioxidant quercetin, linked to lower Alzheimer’s risk and overall. Pennsylvania State University researchers found a lower risk of catching colds and viruses. It also supplies women who began their meal with a salad ended up eating 100 lecithin, which helps promote healthy skin. fewer calories in total. We’re also taking very deliberate steps to Celery is also hugely underrated. It is an excellent source of differentiate our products from the competition — such as the vitamin K and a good source of folate, potassium and vitamin reinvention of our DOLE Salads line to provide consumers with C. Scientists from Case Western Reserve University just found tangible ways for them to experiment with new salad blends the celery phytonutrient apigenin may slow prostate tumor and ultimate eat more salad. growth.

Q: What are the best strategies to relay nutritional/health Q: Are there any simple, catchy phrases that could be used to information to consumers on the retail floor? Can you provide market health benefits of your product? creative merchandising/marketing/promotional ideas that direct- A: That’s what the Dole Superfoods campaign is all about — ly link your product to health and encourage action-oriented we wanted the message to be simple and concise enough to steps? put on a banana sticker or call out on a head of cauliflower. We A: Absolutely. One very current example is our reinvented can quickly and powerfully communicate that spinach is an line of DOLE Salads that now incorporates various new packag- “Antioxidant Superfood” and provide a URL to drive consumers ing and consumer education elements created in response to to a Web site to get more information, details about our labeling research showing that bagged salad users are reluctant to try criteria, recent studies and the like. new blends if the blend they usually buy is out of stock. From a new Easy-Open bag to on-pack taste and texture scales, “pairs Q: Since the FDA has strict guidelines on what health claims well with” information and a recipe unique to that blend, we’re a company can make, what can be advertised or put on labels of making it easier for consumers to break out of their every-day your product packages? salad routines. We’ve even introduced a compelling new DOLE A: Simple nutrient content claims can be added to all our Salad Guide spokesperson to guide consumers through these products letting consumers know it’s not just a case of what’s new features and inspire them to expand their salad horizons. NOT in the product — sugar, sodium, fat, cholesterol etc. — but what IS in it — vitamins and minerals. For example, DOLE Field Q: Are there any notable health reasons to target specific Greens packaged salad contains over 100 percent of vitamins K demographics or age groups with your product? and A. DOLE packaged salads can also display FDA-approved A: Yes! Adolescents ages 14 to 18 are as a group falling health claims. For example, DOLE Baby Spinach and Radicchio down on key nutrients needed for development and health can display the following: “Diets containing foods that are good maintenance. For example, 97 percent of adolescents fail to get sources of potassium and that are low in sodium may reduce enough fiber — almost all DOLE Salads contain some fiber and the risk of high blood pressure and stroke.”

54 PRODUCE BUSINESS • DECEMBER 2009 Reader Service # 32 HEALTH INITIATIVES

MANN PACKING COMPANY, INC. CATEGORY: 1250 Hansen Street Salinas, CA 93901 Sweet Potatoes 800/884-MANN(6266) www.veggiesmadeeasy.com Interview with Gina Nucci, director of food service marketing, Mann Packing Company

ann Packing Company is the leading provider of innov- A: Yams and sweet potatoes are totally different plants. Yams ative ready-to-eat fresh vegetable products. Mann is are a huge, hairy starchy root that originated in Africa. Sweet M dedicated to growing and selling the freshest vegeta- potatoes, including the deep orange-fleshed varieties we call bles. The company first introduced Broccolini brand baby broc- yams, are yet another root vegetable. They originated in the coli to Americans in 1998, and has proudly watched the popular- tropics and belong to the morning glory family. ity of this new-to-the-world vegetable grow with both culinary Calling sweet potatoes yams began as a marketing ploy professionals and home cooks. The family-owned business when, in the 1930s, Louisiana farmers decided to sell their remains committed to its vision of increasing consumption of orange-fleshed sweet potatoes as Louisiana yams to distinguish fresh vegetables in America. them from white sweet potatoes. Their plan succeeded so well that few people today know that what we call yams are simply Q: As America fights the obesity epidemic and other health darker, moister-fleshed sweet potatoes. problems, consumers are inundated about the nutritional values Although sweet potatoes are available in many different col- of just about everything. How can you distinguish your product ors — white, yellow, red and purple — Mann’s fresh-cut sweet from the pack? potatoes are made from the well-known, orange-fleshed vari- A: Sweet potatoes are a nutritional power house! There are eties packing the ultimate sweet flavor and vibrant color use. not many companies with fresh-cut sweet potatoes. Most are found in the frozen aisle full of additives and preservatives. Q: Can you connect your product’s nutritional properties to Where Mann’s fresh-cut sweet potatoes are in produce and have health issues consumers can understand? Can you come up with just one ingredient: Sweet Potatoes. We also have the nutritional simple, catchy phrases that could be used to market health bene- deck on the front package and easy-to-use recipes on the back fits of your product? with the nutritional panel. A: We created a slogan and logo: For a Healthy Active Lifestyle. Because all vegetables are healthful for you, this com- Q: What are the latest news flashes/surprises regarding municates the ease of preparation along with the goal of having health/nutrition benefits of eating sweet potatoes? a balanced, healthful diet and lifestyle. A: Sweet potato consumption increased due to its status as a ‘good carbohydrate’ on the popular Atkins and South Beach Q: How does your product deliver a powerful punch of nutri- diets. That, coupled with its high nutrient content, has moved tion? Can you point to studies that back up these claims? sweet potatoes out of the holiday food category and into the A: A powerhouse of nutrition, the sweet potato is a perfect mainstream. They’re a great source of vitamin E and are fat-free. example of good food that’s good for you. Sweet potatoes are: Sweet potatoes are also a good source of dietary fiber, which • bursting with beta carotene (vitamin A) helps promote a healthy digestive tract and a feeling of “full- • high in vitamin C ness.” One cup of cooked sweet potatoes provides 30 mg • good sources of fiber (50,000 IU) of beta carotene. It would take 23 cups of broccoli to In fact, the sweet potato has taken top honors in two surveys provide the same amount. of the nutritional benefits of vegetables. One medium (4 ounce) Mann is the cooking-vegetables expert, and our line of fresh- sweet potato, baked with the skin, has about four times the rec- cut sweet potato fries and cubes achieves our mission of fresh ommended daily allowance (RDA) of Vitamin A and almost half vegetables made easy. the recommendation for vitamin C.

Q: Are there any notable health reasons to target specific Q: Since the FDA has strict guidelines on what health claims a demographics or age groups? Why? company can make, what can be advertised or put on labels of A: According to the Center for Science in the Public Interest your product packages? (CSPI), the single most important dietary change for most peo- A: We have America’s Vitamin Vegetable on each of our ple, including children, would be to replace fatty foods with fresh-cut vegetable products. We also highlight the nutrition foods rich in complex carbohydrates, such as sweet potatoes. information on the front of each package. We are not the only CSPI ranked the sweet potato Number One in nutrition of all suppliers promoting the health benefits of sweet potatoes. It’s vegetables. With a score of 184, the sweet potato outscored the hard to ignore a readily available and affordable food that offers next highest vegetable by more than 100 points. The reasons so many health benefits. the sweet potato took first place? Dietary fiber, naturally occur- ring sugars, complex carbohydrates, protein, vitamins A and C, Q: What are the best strategies to relay nutritional/health iron and calcium. information to consumers on the retail floor? Can you provide cre- The numbers for the nutritional sweet potato speak for them- ative marketing or promotional ideas that directly link your prod- selves: almost twice the recommended daily allowance of vita- uct to health and encourage action-oriented steps? min A, 42 percent of the recommendation for vitamin C, four A: Retailers can capture sales of this up-and-coming seg- times the RDA for beta carotene, and, when eaten with the skin, ment of the fresh-cut category and watch their profits soar over- sweet potatoes have more fiber than oatmeal. All these benefits all with cross promotions and signage that brings attention and with only about 130 to 160 calories! shoppers into to the category. Sweet potatoes are excellent on the grill and retailers can Q: Are there any myths or confusing nutrition information leverage this by featuring sweet potatoes in grilling recipes for about sweet potatoes that you’d like to clear up? key grilling eating occasions such as summer cookouts!

56 PRODUCE BUSINESS • DECEMBER 2009 Reader Service # 9 HEALTH INITIATIVES

NEW YORK APPLE ASSOCIATION CATEGORY: 7645 Main Street Fishers, NY 14453-0350 Apples 585-455-1969 www.nyapplecountry.com Interview with Linda Quinn, MS, RD Spokesperson/Nutritionist for New York State Apple Assoc.

ew York Apple Associ- Q: Are there any notable health reasons to target specific ation represents apple demographics or age groups with your product? If so, why? N growers and is a A: When it comes to kids, apples are the perfect nutritious source of information and snack. No sticky fingers or need for expensive packaging. Sim- education to the public. ply wash, and go. Our miniature Gala apple is perfect for small- They have an extensive web- er appetites and easier for little teeth to bite into. And, apples site that is updated regularly are “Nature’s toothbrush” so it is a great treat at the end of a to keep consumers informed meal. Since childhood obesity is a major concern in this coun- about the latest health try, apples are a real solution. Packed with fiber and water, research, recipes and press apples fill kids up so they won’t have room for processed releases. They provide news snacks and candy. stations with guest appear- ances of a Registered Dietit- Q: Are there any myths or confusing nutrition information ian to promote the health about your product that you’d like to clear up? benefits and show easy and A: Some people are confused about eating fruit when they fun recipes people can make have diabetes. The truth is that apples are good for the diabetic, to incorporate apples into and a large Finnish study of 10,000 people showed that apple their diet. Award-winning consumption actually reduced the risk of Type II diabetes. commercials and radio news briefs highlighting the nutri- Q: Can you come up with simple, catchy phrases that could tional benefits of New York be used to market health benefits of your product? State Apples are other suc- A: “Eating apples is the easy way to protect your family cessful resources they offer. every day” “Don’t be shaped like an apple, let our apples shape you” Q: How can you distinguish your product from the pack? “An apple a day keeps the doctor away” What nutritional properties in your product make it an essential “An apple peel a day might keep cancer at bay” part of a healthy diet? A: Apples are one of the top rated fruits in the US and Amer- Q: Are there any studies that back up any of the health icans love them! Children choose fruit as their number one claims of your product? What claims can be made? snack and have actually increased their consumption of fruit in A: The current FDA acceptable health claims are based on the past five years (Snacking in America 2008). That is good nutritional analysis. The following claims can be made for fresh news since apples have been shown through research to be apples based on nutritional analysis. These are allowed under one of the healthiest foods a person can eat. FDA’s nutrient database for fresh apples and apple cider: There are literally hundreds of peer-reviewed studies fat free, sodium free, saturated fat free and cholestrol-free. including large scale human studies proving that people who Fresh apples are an excellent source of fiber and apple cider is eat apples and apple products reduce their risk of chronic dis- a good source of fiber.” “Apples, a sodium free food” is appro- ease. Apples are protective against heart disease, cancer, Type priate wording. II diabetes, asthma and even Alzheimers. What makes apples so protective is a group of natural plant substances called phy- Q: What challenges do you face in getting the health mes- tochemicals. We now know that these substances are the real sage about your product to consumers? What solutions can you protectors of our health. Apples have very large amounts of suggest? phytochemicals compared to other fruits. These phytochemi- A: Since ours is a fresh product, one challenge is that we are cals are strong anticancer-antioxidants that protect us from dis- dependent on others for point of service education. We have ease and slow down the aging process. information to share but it is up to the retailer to decide if they will use this information. One solution is to provide easy-to- Q: What are the latest news flashes/surprises regarding understand messages that are short and simple. health/nutrition benefits of eating your product? Tell us some- thing that consumers may not realize about how your product Q: What are the best strategies to relay nutritional/health can improve their health and well-being? information to consumers on the retail floor? Can you provide A: The Iowa Women’s Health Study has been following creative merchandising/marketing/promotional ideas that 34,000 women for over 20 years. They named apples as one of directly link your product to health and encourage action- only three foods that are most effective at reducing the risk of oriented steps? death from heart disease among postmenopausal women. A: We have a variety of posters promoting the Local and A recent study conducted at Penn State University found that fresh message. If people can taste our apples they will men and women who ate an apple 15 minutes before lunch certainly want to buy them. In-store sampling is a great way consumed almost 190 fewer calories than when they didn’t to entice the shopper. Making our brochures, posters and have the apple. Just that one change could equal weight loss of guides available along with website information www.nyapple- over a pound a month. country.com will provide the information consumers need to One delicious apple has as much anticancer-antioxidants as store and use our product regularly. a megadose (1500mg) of Vitamin C.

58 PRODUCE BUSINESS • DECEMBER 2009 Reader Service # 56 HEALTH INITIATIVES

OCEAN MIST FARMS CATEGORY: Castroville, CA 95012 [email protected] Artichokes www.oceanmist.com

Interview with Kori Tuggle, marketing manager, Ocean Mist Farms

Q: As America fights the obesity epidemic and other health prob- lems, consumers are inundated about the nutritional values of just about everything. How can you distinguish your product from the pack? A: Artichokes are a low-calorie, nutrient-rich vegetable. One medium artichoke is an excellent source of fiber and vitamin C and a good source of folate and magnesium. Artichokes also are a great source of disease-fighting antioxidants. In fact, research shows cooked Ocean Mist artichokes are the best antioxidant source among all fresh vegetables.

Q: What are the latest news flashes/surprises regarding health/nutrition benefits of eating artichokes? A: FIBER! The USDA and the Department of Health and Human Services’ Dietary Guidelines recommend men consume 30 to 38 grams per day and women consume 21 to 25 grams per day of dietary fiber. However, most Americans consume about half that 1 amount, according to the American Dietetic Association. The solu- U.S. The results corroborated the earlier study, finding ⁄2 cup of tion is simple: eat artichokes. One artichoke (120 grams) contains cooked Ocean Mist variety artichokes to have a surprisingly high 10.3 grams of dietary fiber, providing a significant contribution to level of antioxidants at 3.559 mmol/serving and the highest among the daily requirement. all vegetables measured.

Q: Are there any notable health reasons to target specific demo- Q: What are the best strategies to relay nutritional/health infor- graphics or age groups? Why? mation to consumers on the retail floor? Can you provide creative A: Very promising preliminary research shows that artichokes marketing or promotional ideas that directly link your product to may offer protection against heart disease in people who already health and encourage action-oriented steps? have high cholesterol. More research is needed to determine the A: Retail Floor: Integrate packaging with POS concepts that exact substances in artichokes that make them cardio-protective focus on preparation, use and nutrition information. There is an and the exact role they play in preventing disease. Until then, there opportunity to build a multi-item artichoke “mini-destination” in are plenty of other heart-healthy reasons to eat artichokes — the produce department. Retainers can bring new users into the they’re loaded with fiber, plus they are fat-free and cholesterol-free. category with simplicity messages, and indulge heavy users with depth and creativity. Q: Are there any myths or confusing nutrition information about On Package: Our packaging boldly promotes the health bene- your product that you’d like to clear up? fits of artichokes on all of our packaging as: “The Ultimate in A: Heating has a varied effect on the antioxidant content of Antioxidants & Fiber.” We also include a statement on all of our foods — it negatively affects some foods, however, it’s good news packaging directing consumers to our website: for artichokes. Research shows that cooking (e.g., microwaving, “For a wealth of Artichoke facts, health boiling) increases the total antioxidant content in arti- benefits, recipes and cooking videos, chokes. To retain the most nutrients in any visit www.oceanmist.com .” vegetables, use cooking methods such as OnLine: Consumers are increas- steaming or microwaving. ingly going to the web to research health benefits of the food they eat. Q: How does your product deliver a We have an entire section of our powerful punch of nutrition? Can you website devoted to the “health & point to studies that back up these nutrition” benefits of artichokes. We claims? also promote recently published stud- A: Therapeutic properties of arti- ies and links to our website through chokes have been documented since sites such as Twitter to reach consumers ancient times; however, two studies show through social media channels. artichokes contain very high level of antioxi- dants. Follow us on twitter: In 2004, USDA researchers measured antioxidant twitter.com/oceanmistfarms levels in more than 100 foods commonly consumed in twitter.com/artichokerecipe the United States. One study found that cooked artichoke hearts were found to be the best antioxidant source among Find us on Facebook: all fresh vegetables, with a total antioxidant capacity (TAC) of www.facebook.com/oceanmistfarms 7,904. Another study published in July 2006 measured the antioxidant Watch us on Youtube: content of 1,113 foods and beverages commonly consumed in the www.youtube.com/oceanmistfarms

60 PRODUCE BUSINESS • DECEMBER 2009 Reader Service # 37 HEALTH INITIATIVES

RED BLOSSOM SALES, INC. CATEGORY: 162 Montgomery Avenue Oxnard, CA 93030 Strawberries 805-981-1839 www.redblossom.com Interview with Michelle Deleissegues, Director of Marketing, Red Blossom Sales, Inc.

ed Blossom Farms has over 2400 acres in California’s protective power of the whole foods themselves. premier growing regions: Baja and Central Mexico, Strawberries contain a multitude of cancer-fighting com- R Oxnard, Santa Maria and Salinas/Watsonville. With pounds, including vitamin C and folate, anthocyanins, strawberry consumption growing faster than any other fruit in quercetin, kaempferol and ellagic acid. Very few foods or their the produce department, Red Blossom is meeting this demand compounds have been shown to reduce risk of some cancers. with a continuous supply of sweet, delicious strawberries year- However, strawberries and/or their constituents have shown round. promise in both cell culture and epidemiological studies. The California Strawberry Commission (CSC) is supporting studies Q: What makes strawberries stand out to consumers trying to in esophageal and oral cancer in cooperation with the Ohio make healthy eating choices? State University Cancer Chemoprevention Program. A: Many dieticians consider strawberries to be a Superfood Research is ongoing to evaluate the impact of strawberry because they are high in nutrients, low in sugar and cholesterol consumption on blood pressure, cholesterol levels and inflam- free. Strawberries are brimming with vitamins, potassium, matory markers that are drivers of heart disease. Clinical stud- fiber, antioxidants and phytochemicals. Studies report people ies are underway at the University of California, Los Angeles, who eat higher amounts of total fiber have a lower risk of heart University of California, Davis, the USDA Western Human Nutri- disease. Potassium is important to balance electrolytes, aid tion Research Center and the University of Toronto. muscle contractions and maintain healthy blood pressure. Antioxidants (including vitamin C) are key to warding off Q: Since the FDA has strict guidelines on what health claims chronic diseases and promoting optimum health. Strawberries a company can make, what can be advertised or put on your can improve memory and heart health while lowering blood product’s labels? pressure and cancer risk. A: We recommend saying strawberries have more vitamin C per serving than an orange; are naturally low in sugar — only Q: What are the latest news flashes/surprises regarding eight grams per serving; rank second among the Top 10 fruits health/nutrition benefits of eating strawberries? in antioxidant capacity; and may help reduce the risk of heart A: In October, Dr. James Joseph, Ph.D., of the USDA Human disease, fight some types of cancer and lower blood pressure. Nutrition Research Center at Tufts University in Boston, pre- California strawberries are certified by the American Heart sented his breakthrough research on everyday foods that pro- Association (AHA) and our packaging may display its heart- mote brain health, at the 39th annual meeting of the Society for check mark. When consumers see AHA heart-check, they know Neuroscience. According to Dr. Joseph, diets rich in strawber- a food meets AHA’s strict criteria for low levels of total fat, satu- ries, other berries, nuts and certain spices may lower age-relat- rated fat and cholesterol. The Produce for Better Health Founda- ed cognitive decline and the risk of neurodegenerative disease. tion’s More Matters campaign is another useful tool that is According to Dr. Joseph, you can protect yourself against the widely recognized by the industry and public. two major villains of aging, oxidation and inflammation, by including strawberries, blueberries, raspberries, blackberries, Q: What are the best strategies to relay nutritional/health walnuts, fish and turmeric in your regular diet. Strawberries information to consumers on the retail floor? and the other listed foods contain plant compounds called A: Retailers have a tremendous opportunity to educate their polyphenols and other plant chemicals which are believed to customers and help them make healthful choices. Giving pro- provide brain health benefits. duce department employees special tips about strawberries to share with customers can promote strawberries and develop a Q: Can you connect your product’s nutritional properties to rapport with customers. Nutritional POS signage is also an health issues consumers can understand? effective educational tool. A: Preventative health is currently a hot topic in the United States. Dr. Joseph of Tufts University has stated, “that with the rising cost of health care and drugs, patients are increasingly turning to preventative lifestyle actions over which they have some control, such as diet and exercise.” This is backed by emerging science which continues to point to natural foods, like strawberries, as sources of beneficial nutrients that can have some positive impact on cognitive function and other health concerns.

Q: How does your product deliver a powerful punch of nutri- tion? Can you point to studies that back up these claims? A: Strawberries are one of nature’s most healthful “pack- ages” of power nutrients. The completion of exciting new research should provide even more reasons to enjoy strawber- ries year-round. Nutrition scientists are looking beyond traditional vitamins and minerals to understand the actions of hundreds of other compounds in plant foods, as well as the

62 PRODUCE BUSINESS • DECEMBER 2009 Reader Service # 17 HEALTH INITIATIVES

TURBANA CORPORATION CATEGORY: 550 Biltmore Way, Suite 730 Coral Gables, FL 33134 Pineapples 1-800-TURBANA

Interview with Alan Dolezal, Vice President of Sales, Turbana Company

urbana Corporation is the North American marketing arm health issues consumers can of C.I. Uniban S.A., the world’s largest banana producing understand? Can you come up T cooperative. In 2005, Fyffes obtained a 50 percent owner- with simple, catchy phrases that ship position in Turbana, leading to Turbana’s current status as could market the health benefits of North American marketer of Fyffes Gold label super sweet your product? pineapples. Headquartered in Dublin, Ireland, Fyffes is the A: The More Matters cam- largest produce importer into the European Union, with annual paign and the Produce For Better sales of over $2.6 billion. Health Foundation (PBH) are great sources for consumers to learn Q: As America fights the obesity epidemic and other health about the benefits of fresh problems, consumers are inundated about the nutritional values. pineapple relative to various How can you distinguish your product from the pack? health issues. A: Fyffes Gold Pineapples are healthful and taste great! Our Fyffe Times Better slogan They’re extremely high in vitamin C and low in calories and addresses five common health contain virtually zero sodium or fat. Regarding obesity, and in issues, since our pineapple is an particular childhood obesity, Turbana is very proud Disney Gar- anti-cancer agent, enhancer of the body’s immune systems, den has named Fyffes Gold as its pineapple of choice in the natural anti-inflammatory agent, proven aid to achieving good new Disney/Imagination Farms campaign aimed at increasing oral health and inhibitor of strokes and heart attacks. the consumption of fresh fruits and vegetables among children. On a lighter note, we also think Fyffes Gold Pineapples con- Q: How does your product deliver a powerful punch of nutri- tribute to positive mental health. Pineapples have always had tion? an exotic image conjuring up thoughts of tropical locales and A: A daily slice or two of our pineapple provides half the rec- warm, sandy beaches — the kind of images to put a smile on ommended daily intake of vitamin C, the benefits of which one’s face, especially in winter. include strengthening the immune system, reducing risk of heart attack and stroke and heightening oral health. The high Q: Tell us something consumers may not realize about how manganese and vitamin A content help prevent free-radical your product can improve their health and well-being? damage to the body’s cells. Free radicals are known to have a A: People may not realize fresh pineapple’s status as an cancer-causing role. anti-inflammatory agent and its ability to boost oral health. Pineapple contains bromelain, a protein-digesting enzyme that Q: Since the FDA has strict guidelines on what health claims helps suppress and counteract inflammation. Pineapple is also a company can make, what can be advertised or put on your extremely high in vitamin C, a high intake of which greatly product’s labels? reduces the risk of gum disease. A: Our pineapples are not packaged and the tag is the only place for some narrative, so they don’t make ideal billboards. Q: Are there any notable health reasons to target specific We work with our retail partners to formulate and execute demographics or age groups with your product? health-oriented advertising and promotions through store circu- A: Childhood obesity is a major concern in our society, and lars, seasonal promotions emphasizing health and fitness and Turbana is very happy to be partnered with Disney Garden and in-store promos using customized POS materials that support Imagination Farms for the purpose of implementing a program health- and nutrition-oriented themes. that will help our children to develop healthful eating habits that will continue through their teen years and into adulthood. Q: What challenges do you face in getting the health mes- sage about pineapples to consumers and what solutions do you Q: Are there any myths or confusing nutrition information have in mind? about pineapples that you’d like to clear up? A: In the age of instant information, it’s easy for consumers A: One misconception about fresh pineapple is that it can to feel awash in a sea of conflicting claims and health be difficult to prepare. Our Fyffes Gold Pineapple has prepara- messages. The key is to provide information from credible, cer- tion instructions on the back of the tag, demonstrating how tified sources (PBH, AMA) and present this information clearly easy it is to cut a pineapple! We also offer a hand-held Easy- and concisely. Slicer corer. Additionally, many retailers core our Fyffes Gold Pineapple and offer both whole and pre-cut fruit in their pro- Q: What are the best strategies to relay nutritional/health duce departments. information to consumers on the retail floor? Another misconception is that pineapples are seasonal; A: Pineapples can be highlighted as both a healthful cook- Fyffes Gold Pineapple tastes the same and contains the same ing ingredient and a nutritious snack. The display and the dietary attributes 52 weeks a year. The shell color of the fruit message should achieve maximum visual impact. may vary slightly from time to time, but the consumer taste A unique vehicle for our message is the Disney experience and the nutritional benefits inherent to the fruit will Garden/Imagination Farms program. We can help affect a real not. paradigm shift in the way children, and the American family in general, perceive and consume fresh fruits, obviously including Q: Can you connect your product’s nutritional properties to pineapple.

64 PRODUCE BUSINESS • DECEMBER 2009 Reader Service # 34 Reader Service # 28 Chilean Grapes Provide Stable Profits Tried-and-true merchandising tips continue to reap success with Chilean grapes.

BY JODEAN ROBBINS

Chilean grapes have become a major compo- of $623 million. Grape imports from Chile have nent of winter fruit sales and a crucial part steadily risen over the past decade and have shown of any retail produce department. an increase of 16 percent over the past seven years. The season begins in December and continues “We do a tremendous amount of business in through April. Josh Leichter, East Coast sales direc- Chilean grapes,” says Ruth Comer, assistant vice tor and director of the grape category for The president of media relations for Hy-Vee Inc., head- Oppenheimer Group, the Vancouver, British quartered in West Des Moines, IA. “This year, we Columbia, Canada-based importer, reports, “Indus- expect to see even more demand for them since the try-wide, the crop has been delayed by seven to 14 California deal is ending earlier than usual.” days due to cold weather, which some attribute to “We’re glad when the Chilean grapes start rolling the El Niño effect. Most growing regions — early, in because California is pretty much done and con- middle and late — have been affected, though the sumers are looking for them,” adds Keith Cox, pro- extent is still being assessed. The later regions will duce buyer/category manager for K-VA-T Foods, have the chance to recover, so the primary impact based in Abingdon, VA. we’re aware of to date is the delay of the start of the According to U.S. Department of Agriculture season,” he explains. “Despite the weather, we import statistics, as of November, 2009, Chile anticipate about a 15 percent bump in volume over exported more than 430,000 metric tons at a value last year. We also anticipate significant late-season crimson volumes.”

VISIBLE DISPLAY High visibility and quality go a long way to sell grapes. Paul Kneeland, vice president of produce and floral for Kings Super Markets, a 36-store chain based in Parsippany, NJ, advises, “Just have the biggest, sweetest and most flavorful grapes avail- able displayed in an area that will attract cus- tomers. Make big displays. They need to be visible and speak to the customer on flavor and usage.” “Once a packaging, pricing, grade and berry size strategy have been determined by any retailer, the key to driving sales is primarily driven by shelf space allocation for the product and how much pro- motion a supermarket wants to put behind the product,” says Rick Eastes, global procurement manager for Market 52, in Visalia, CA. “The ‘yield- per-square-foot’ and the ‘velocity’ [turns] of sales will be the determining factors.” While pricing strategies may vary among retail- ers, the Chilean Fresh Fruit Association (CFFA), headquartered in Sonoma, CA, has some newly New research shows fixed weight packaging, such as bags and clamshells, released information on pricing. Tom Tjerandsen, provide a higher price point and therefore, greater profit. managing director North America for the CFFA,

DECEMBER 2009 • PRODUCE BUSINESS 67 Moving The Marketing Date “Cross-merchandised Chilean grapes are ast April, 2009, the date of the USDA almost all graded as U.S. 1, so we were great for holiday Marketing Order standard affecting able to continue the momentum for our L Chilean grapes was changed from Chilean growers and help bridge the gap promotions. April 20 to April 10. Rick Eastes, global pro- into the Mexican season for our retail cus- Customers can take curement manager for Market 52 in tomers.” Visalia, CA, explains, “Although the theory However, some industry experts note wine, cheese and is that restricting the Marketing Order date an underlying problem of the Marketing grapes to a party. will encourage exporters not to ship to the Order cutoff date. Jim Pandol, president of United States for fear of failure to grade, Pandol Associates Marketing Inc., head- Some may like that practically speaking, and depending on the quartered in Delano, CA, adds, “If anything, better than a veggie market conditions, the 10-day ‘move-up I think it tends to hurt the market. Any time date’ may not discourage exports to the we put in artificial barriers in a market, it tray and for the country at all. If grapes meet requirements disrupts the normal flows that are econom- they are admitted after the Marketing ically or consumer-driven. When the mar- retailer, it’s a Order date. If they fail, most can be keting order date is set earlier, the higher ring and brought into compliance by repacking, or exporters send the grapes earlier and they alternatively, re-shipped to Canada.” sit in storage longer. The volume available lower labor.” So far, it seems the change hasn’t had a for the market has not changed consider- serious effect on shipments. “The change ably, but we have more product shipped — Paul Kneeland had little impact last season,” reports Tom outside of the time it should have been Kings Super Markets Tjerandsen, managing director North shipped.” America for the Chilean Fresh Fruit Associ- Moving forward, each season may ation (CFFA) in Sonoma, CA. “It’s still possi- bring its own adjustments. “Effectively, only ble to ship to the United States, but the market conditions will determine how explains, “Most of the exporters are respond- quality requirements differ. Given the high many grapes come into the United States, ing to the results of our recently published quality of the grape shipments from Chile, regardless of the Marketing Order cutoff Best Practices research, which confirmed this was not a problem. Coachella was late, date,” states Eastes. “Also, rather than har- fixed weight packaging, such as clams, bags but Chile was able to keep a modest vol- vesting and storing grapes in Chile prior to and zips, hold a higher price point and pro- ume in the pipeline until they were ready the original April 20th cutoff, exporters vide greater profit than random weight mer- to ship.” now will choose to ship and store in the chandising.” “Oppenheimer and our growers did not United States with grapes arriving prior to “Consumers are very price conscious,” feel a significant effect when the marketing April 10th. Potentially, the same number of acknowledges Jim Pandol, president of Pan- order date changed and we anticipate the grapes will enter the country as before, dol Associates Marketing Inc., headquar- same would be true moving forward,” says only earlier,” he muses. “This may put tered in Delano, CA. “Average consumers Josh Leichter, East Coast sales director of extra pressure on shipping lines to have have less discretionary money in their pock- sales and director of the grape category for vessels in place to take the cargo earlier, ets than last year. Consumers are trending Vancouver, British Columbia, Canada-based and importers have the effort to find addi- to make more of their buying decisions The Oppenheimer Group. “The only tional short term storage to accommodate based on what money they have to spend notable impact was the sudden pressure the 10 lost shipping dates. Effectively, mov- versus what they would like to spend it on,” on cold storage space in April which we’ll ing the Marketing Order up 10 days does he explains. “Over the last year, there has monitor vigilantly this year. The Chilean not necessarily reduce the volume of been more focus and better movement on industry shipped a fair bit of fruit before grapes arriving in late season, it just adds good quality with a little lower pricing. the cut-off date, so space became tight,” he expense and exacerbates logistics proce- There is less demand for premium quality admits. “We brought a fair amount of Crim- dures,” he concludes. pb at premium prices.” sons in after the marketing order and Putting together the right combination of space, display and price is retailer-depen- dent. “There are myriad merchandising of 63 percent. Secondary displays add want,” states Tjerandsen. strategies, and improving sales depends impulse sales.” “Consumers are most motivated to pur- greatly on any given retailer’s individual “Give your grapes a secondary display chase fresh grapes when two or more vari- policies,” reasons Eastes. “Capturing retail location,” agrees Cox of K-VA-T. “That always eties are on sale at the same time and also space is the game — whatever it takes to increases sales.” when retailers provide more information garner more display space, drives sales.” about the flavor characteristics of grapes,” “Our research report also confirmed a TIE IN VARIETY concurs Craig Uchizono, vice president of number of merchandising tactics for grape Offering increased variety also leads to Southern hemisphere for The Giumarra marketers,” reports Tjerandsen. “It showed higher sales. “The industry is encouraging Companies, headquartered in Los Angeles, that if a minimum of 25 linear feet of space customers to buy red, green and black CA. “Black seedless sales increase if they are is devoted to grapes, sales go up an average grapes to offer shoppers the choices they promoted with red and green seedless.”

68 PRODUCE BUSINESS • DECEMBER 2009 Reader Service # 18 “Marketing by variety, as a taste profile, would increase sales,” suggests Kings’ Knee- land. “Talk about the flavor characteristics of Consider Packaging the different grapes and eventually talk about the sugar content and sweetness. Cus- tomers want to know more.” ariety in packaging may also help NJ. “We’ve dabbled in trying to sell loose, Variety ties into advertising as well. “If boost sales. “We see good results but the bags sell better. Especially as cus- you do a red, green and black ad it helps V with our clamshell program, in tomers are more conscious of price points, generate more grape sales,” says Cox. either bi- or- tri-colored configurations,” the bags offer a better retail. The zip-locks Chile is working on adding new varieties reports Josh Leichter, East Coast sales on the top are popular from a customer to grape availability. “In California, there is a director of sales and director of the grape standpoint.” proliferation of new grape varieties coming category of The Oppenheimer Group, Both retailers and suppliers are looking into production,” reports Market 52’s Eastes. headquartered in Vancouver, British at what labeling changes can be made to “Chile is lagging behind now, but the whole Columbia, Canada. “Clamshells have dis- benefit the business. “We would benefit category is likely to change dramatically in play appeal that attract impulse buys and tremendously by having the name of the the next decade with regards to the varieties deliver high rings.” product on the bag, as opposed to just the that will be grown and marketed over the But with variety comes challenge. PLU number,” maintains Ruth Comer, assis- next few years.” “There is a proliferation of pack-styles, tant vice president of media relations for “We have a new variety of grapes — including a range of clamshell packs Hy-Vee Inc., headquartered in West Des Nature’s Partner Sol Sweet Seedless Grapes desired by retailers,” states Rick Eastes, Moines, IA. “For instance, if the Jumbo Red — which are left longer on the vine to pro- global procurement manager for Market Globes were labeled ‘Jumbo Red Globes,’ it vide a higher sugar content and sweeter fla- 52, in Visalia, CA. “However, the heating would help the stores display the product vor,” reports Uchizono. “Try sampling these and fumigation requirements for table more effectively and ensure customers get unique and great-tasting grapes so con- grapes from Chile create unique post-har- the product they think they are buying.” sumers will be encouraged to try them. Con- vest requirements to assure grapes origi- “Our growers are all working toward sumers may also be interested in the ‘her- nally packed in clamshells in Chile are the implementation of GS1 bar codes on itage’ or story behind their favorite grapes.” properly re-cooled prior to shipment to U.S. their grape bags,” reports Leichter. “Like retailers,” he explains. our retailers and growers, we take trace- TOOLBOX OF PROMOTION Some retailers stand by bagged as the ability very seriously at Oppenheimer, and Retailers have a wealth of promotional best alternative. “At this time, we’re sticking we are working toward 100 percent com- tools promoting Chilean grapes, but any with the clear bag, which is pretty much pliance over time.” good promotion starts with quality product. industry standard,” says Keith Cox, pro- Craig Uchizono, vice president of South- “Retailers know their markets best and there duce buyer/category manager for K-VA-T ern hemisphere for The Giumarra Compa- are hundreds of promotional schemes to Foods, in Abingdon, VA.. “We have tried nies, in Los Angeles, CA, describes Giu- choose from depending on store demo- clamshells without very much success.” marra’s eco-friendly packaging efforts. “We graphics,” points out Market 52’s Eastes. “Bagged grapes work the best for us,” are moving to more environmentally “The most important thing for a supplier is explains Paul Kneeland, vice president of friendly solutions,” he proudly says. “This to provide the product at the level of quali- produce and floral for Kings Super Mar- includes recyclable packing, biodegradable ty, in the appropriate pack-style, and in the kets, a 36-store chain based in Parsippany, options and kraft packaging. pb volume requested, and allow each retailer to merchandise the fruit to its best advantage.” “Successful marketing begins with the fruit we grow,” asserts Giumarra’s Uchizono. “We work with our growers to produce great- tasting varieties using optimum growing practices that focus on flavor and quality. We can also work with our customers on cat- egory management and developing promo- tions to increase their grape business.” “Keep costs down, set ads and keep the product fresh and moving,” advises Pandol of Pandol Associates Marketing. “Ads are crucial to keep product moving since this is especially what consumers are looking for.” Playing up the counter-season works can be a fun and successful theme. CFFA’s Tjerandsen describes, “High performing retailers tend to build promotions for grapes around Grape Spectacular or Extravaganza, June in January, or Chilean Fruit Basket.” Chilean grapes offer significant opportu- nity for cross-merchandising and increasing ring. “Cross merchandising is always benefi-

70 PRODUCE BUSINESS • DECEMBER 2009 ehv normallyexperienced.” have we very high,themovement drops faster than Whenpricesgo the product really moves. promotions atattractive price pointsthen become more exaggerated. Whenthere are these economictimes, the differences more product thanhigherprices. During know thatlower retail priceswillmove move product,” maintains Pandol. “We all duration ofthedeal.” strategy thatdrives salesthroughout the part ofaconsistentpromotion and co-opad ad planners to ourcustomers, whichare found itworks well to provide season-long sales by20percent.” season. Use ofPOSincreases feature pricing together three outofthefour weeks ofthe stronger yearperformance. Promote grapes “Early promotion buildsmomentumfor increase insales,” explains Tjerandsen. Best Food Dayadgenerates 70 percent “Our research shows thefront pageinthe and POSusagehasadefiniteeffectonsales. lower labor.” it’ and for theretailer, thatbetterthanaveggie tray Some maylike can take wine, cheeseandgrapes to aparty. Customers great for holidaypromotions. are play. Cross-merchandised Chileangrapes make for anattractive andinteresting dis- wineandotherproducts from Chilethat of lots are sales,” continuesKneeland.“There the grapes.” ing wine, especiallyfrom Chile, alongwith big way. We’ merchandising itinthegrape displayina taking anicesoftcheese, oracheddar, and cial,” contendsKings’ encourage consumerpurchases. such asthese,lowerretailprceswll During challengeconomctmes “Good promotions andprice pointswill Oppenheimer’ The CFFA research shows advertising “Looking for acountrytie-incanadd re alsolookingatmerchandis- s Leichteradds, “We’ Kneeland.“We like s ahigherringand pb ve

Reader Service #12 DECEMBER 2009•PRODUCE BUSINESS 71 Reader Service #5 Reader Service #51 The Pallet Puzzle: (Part I of II) With an ever increasing number of options and environmental concerns to take into consideration, the pallet business is expanding at breakneck speeds.

BY JENNIFER LESLIE KRAMER

According to industry reports, in one year efforts on behalf of pallet companies is addressed, alone, there are approximately 1.9 billion as well as the creation of a number of new and pallets circulating within the United States. inventive shipping options.

Pallet choices run the gamut from the type of COSTS VS. LIFE EXPECTANCY material used to the degree of ownership. One Regardless of the shipping system a company must also consider costs, environmental sustain- decides to use, there is always great cost associated ability, life expectancy, technological advance- with it, and most would argue it is money well ments and a host of other topics when choosing a spent. After all, what good is it to grow or pack per- shipping system. Thus, it’s no small feat for retail fect produce only to have it ruined prior to arriving executives and grower/shippers to come to a deci- at its destination? Wooden pallets are certainly sion on what kind of pallet best suits their needs. cheaper than their plastic counterparts. However, Recently, the subject of pallets has risen to a the salient question is whether they provide the roar, with a number of new companies touting their most bang for your buck. When exploring the cost latest inventions. There are points in favor of each effectiveness of wooden pallets, it is important to variety of pallet, as well as corresponding questions differentiate between the ubiquitous GMA (Grocery that come with exploring new territory. While each Manufacturers Association) whitewood pallets — a company undoubtedly believes its pallets provide non-pooled pallet that has not been specifically the most thorough, consistent and safe product on marked to indicate ownership — and branded pal- the market, retail executives and grower/shippers lets, which are part of a pallet pool. continue to be inundated with choices in a field While some assume whitewood pallets are less that grows larger and more complex with each pass- expensive than their branded counterpart and thus ing day. With that in mind, PRODUCE BUSINESS has have a shorter lifespan, it’s not as black and white sought to simplify the pallet puzzle and provide a as it may seem. Many shades of grey enter the point-by-point exploration and discussion of the equation when companies begin to consider their concerns that come along with each type of pallet. business model and whether they choose to buy In Part I, the price of pallets and environmental pallets outright or enter a pallet pool. Companies such as Houston, TX-based IFCO, a nationwide pallet management company, focuses much of its energy on elongating the life expectan- cy of whitewood pallets. LeRoi Cochran, director of supply chain solutions, explains that while IFCO constructs some new pallets, "The vast majority of the pallets we sell are recycled, made from refur- bished broken or used pallets. We retrieve used pal- lets from major retailers and other distributors, inspect, repair and then sell these reusable pallets back into the supply chain.” An IFCO-produced whitepaper, Factors Impact- ing the Environmental Sustainability of Pallet Pro- grams, points out that because the GMA whitewood pallet is the accepted standard, numerous compa- nies that buy and sell them independently come together to form one of the most comprehensive

Photo courtesy of the National Wooden Pallet Containerretrieval Association and recycling systems in the world, thus Approximately 92 percent of pallets in circulations are wooden. creating an “open pool” of sorts, capitalizing on

72 PRODUCE BUSINESS • DECEMBER 2009 extended reuse, while keeping economical life span on it, but the choice is clear,” he prices in place. maintains. “You can either use a limited-use The other type of wooden pallet, those pallet a few times versus a CHEP pallet that that are pooled and branded, have a differ- is used dozens of times, repaired when ent cost structure to consider. When enter- needed and used again. They are never ing a pallet pool, one must evaluate all costs thrown away or end up in a landfill.” involved, which can include issue fees, The plastic pallet contingency would beg repositioning fees, daily rental fees and lost to differ. They would point to facts courtesy pallet fees, among others. CHEP, based in of the USDA Forest Service stating in 1995 Orlando, FL, handles more than 300 million alone, approximately 4.2 millions tons of pallets and containers within its open pallet wood pallet materials were land-filled at pool, issuing, collecting, conditioning and municipal solid waste (MSW) facilities in reissuing wooden pallets to manufacturers the United States. and growers worldwide. One of the newer plastic pallet compa- Photo courtesy of iGPS Tim Smith, vice president of business nies today is Orlando, FL-based iGPS, which iGPS' plastic pallets transport fresh development at the company, reports that a offers companies the ability to rent the melons from Scottsdale, AZ-based CHEP pallet costs between $20 and $22 to exact number of pallets they need, thus Martori Farms across the nation. make, compared to a one-way pallet, which avoiding the expense of outright purchase costs $7 or $8. “It’s designed to last for many and maintenance. It’s a well-known fact that In contrast, a wood pallet is far more fragile years,” he says. “It has extra nails for plastic pallets are extremely expensive — and invariably needs repair, taking it out of strength and blocks made to grip the sur- they can cost up to 10 times as much as circulation for up to 90 days,” he remarks. rounding wood. We even use harder wood their wooden counterparts — one of the “Our pallet can turn six times a year, while a on the leading edges of the pallets to protect drawbacks that make companies think typical wood pallet might turn only three them from the tines of the forklift.” twice before beginning a plastic pallet pro- times.” Dole, Del Monte Fresh, Stemilt, River gram. Bob Moore, chairman and CEO, rec- However, there is always the option to Ranch, Duda Farm Fresh Foods and Tanimu- ognizes this setback, but counters, “We have buy, which is where Rehrig Pacific Compa- ra & Antle are just a few of the industry a more efficient business model. Even ny, based in Los Angeles, CA, comes into leaders that have come to rely on the though our pallet costs significantly more play. While the company has had limited strength and lifespan of a CHEP pallet, than a wood pallet, its strength and durabili- interaction with the fresh produce industry, according to Smith. “It’s hard to put an exact ty enable it to stay in circulation full time. it is one of the leading RPC manufacturers 54 # Reader Serv i ce

DECEMBER 2009 • PRODUCE BUSINESS 73 in North America. Bill Mashy, general man- ager for the materials handling group, con- Alternative Options tends that it’s the outright purchasing of pal- lets that make them worthwhile. “The key hile wooden pallets continue to be light yet durable shipping pallets that can for the owners of plastic pallets is that they the most popular choice in pallets, hold up to 10 tons. Because there are no need to be able to hold on to them,” he W a number of companies are buck- dangerous nails or splinters to worry about, asserts. “If you can, then the economics will ing the trend and introducing creative solu- they can be used on the display floor as well. work for you, meaning if you buy a plastic tions to the shipping business. Steve Townsend, president and owner, pallet somewhere in the $50 range and you Layer Saver: This reusable, collapsible points out his pallets are the greenest of lose it, well then it doesn’t make sense. In pallet shipping vessel, made from recycled them all. “Not only are they 100 percent that case, you are just going to go with the plastic material, is a two-layered system recyclable, but they start out from recycled cheaper wooden variety for $8 or $9 every specifically designed to carry more weight wood and paper materials,” he explains. time. But if you can hold on to it — reuse it than a standard pallet. The first level is “Plus, they are so much lighter than wooden — then the benefits of plastic far outweigh designed to hold several rows of corrugated pallets, so they’ll reduce freight costs and the wooden ones.” product — similar to a traditional pallet — greenhouse gas emissions.” For the most part, plastic pallets are not while the second tier, once extended, can Airdex: Specifically designed for air as susceptible to damage as wooden pallets, then hold up to 50 percent more product, all freight, these plastic pallets are made from a due to the fact that they are typically made within the same footprint of a standard pallet. foam core that is shrink-wrapped and then from one solid piece, as opposed to many Charlie Kiolbasa, chairman, founder and encapsulated with a high-impact poly pieces of wood being nailed together. Moore CEO of the Willowbook, IL-based company, styrene (HIPS) that is not only lightweight — of iGPS points out, “Our pallets have a 12- emphasizes his pallet system is also environ- the pallet weighs only 8 pounds — but ther- year, full replacement warranty from our mentally friendly, taking advantage of all mal isolated — preventing heat, and there- manufacturer and an estimated working life available space in a truck. “The Layer Saver fore sweat and moisture — and completely of 20 years. The pallet has proven its dura- concept was started with a full truck load in washable. These characteristics make Airdex bility, as the damage rate is de minimis.” mind,” he says. “Cases of produce are gener- a viable choice for the export produce indus- However, wooden pallet companies are ally susceptible to moisture damage and can try. They are also environmentally friendly. quick to point that an iGPS pallet hasn’t easily end up bent, bowed and damaged The company has 175 collection points even been around that long, so no one can and are thus only stacked five- or six-high in throughout North America to recycle and be sure what a plastic pallet would look like a truck. With Layer Saver, two five-high packs reuse them. 20 years from now. can be safely stacked in a truck.” When it comes to affordability, Vance PBPallets: Made from 100 percent recy- Seagle, CEO, for the Henderson, NV-based THE GREENING OF PALLETS cled material, such as old newspapers and copany, admits, “It costs more than a wood- Opponents of wooden pallets argue they magazines, PB Pallets, a division of North en pallet, but because of the weight-savings are not sustainable or environmentally Georgia Paper Boards, in Chatsworth, GA, in freight, it will give you back money since it friendly and there are many statistics uses a high compression system along with will save you weight — and thus dollars — in stacked against them. One such factoid, inner tubes and a linear rail system to create shipping costs.” pb used by iGPS, states that in 2006, wooden pallets used 7.6 billion board feet of lumber, What’s more, local repair and refurbishment number has completely flip-flopped.” amounting to enough trees to cover an area of IFCO’s pallets at the company’s 50-plus Naturally, the plastic pallet contingency 10 times the size of Manhattan. However, logistics centers strategically placed across sees the other side of the coin. In addition to upon closer examination of the wooden pal- the country facilitate their efforts in pallet pointing out concerns over deforestation, let industry, it becomes clear the group is supply, repair, recycling and redistribution plastic pallet companies also maintain their environmentally conscious, making a whole- and eliminates the need to ship pallets else- pallets are up to 50 percent lighter than hearted effort to offer sustainable products. where, reducing transportation costs, fuel their wooden counterparts. Less weight Bruce Scholnick, president of the Alexan- use and greenhouse gas emissions. means less fuel and transportation costs, as dria, VA-based National Wooden Pallet Con- According to a study by Virginia Poly- well as less harmful greenhouse gas emis- tainer Association (NWPCA), which repre- Technic Institute and the USDA Forestry sions. iGPS calculated that replacing all sents 700 pallet manufacturers, points out Service, less than three percent of the near- wooden pallets with iGPS plastic pallets wooden pallets are constructed from a nat- ly 700 million pallets manufactured and would remove more than 9 billion pounds of ural, abundant and recyclable material. repaired each year end up in landfills. non-value added weight from the nation’s “Despite what you may hear, we are not CHEP, too, strives to be a good steward of supply chain. clearing forests to make wooden pallets,” the environment. “CHEP only uses wood Additionally, Moore contends iGPS pal- asserts Scholnick. “We use the unattractive from sustainable forests and replants more lets are 100 percent recyclable. “In the rare remnants of lumber that were originally trees than are harvested,” asserts Smith. “All instance one of our pallets is damaged, the harvested for furniture or wooden floors. It the hardwood we use, both nationally and inter- steel bars are removed and the resin is still has all the strength and stiffness and nationally, comes from these kind of groves.” reground, refined and remolded into new durability of the more aesthetically appeal- Scholnick is also quick to point how pallets,” he explains. ing wood, it’s just not in perfect condition.” prevalent the recycling of wooden pallets Pick up the February issue of PRODUCE BUSI- Moreover, wooden pallets a re easily recy- has become over the years. “When I first NESS where the concluding part of this article cled. IFCO’s whitepaper points out the com- came to the NWPCA, which was many years will address technological advancements in the pany diverts more than 1.8 million tons of ago, my membership was comprised of 70 pallet business and the rising USDA APHIS wood from landfills annually through its percent new manufacturers and 30 percent controversy over whether wooden pallets need repair and reuse of wooden stringer pallets. recyclers,” he reports. “However, today that to be regulated more strictly. pb

74 PRODUCE BUSINESS • DECEMBER 2009 POWER In Packaging PMA awards eight companies with its coveted Impact Award for Excellence in Produce Packaging.

BY JENNIFER LESLIE KRAMER

Roman Forowycz, Chad Smith and Audra Pura, Abram Murguia, Hillary Femal and Roger Pepperl, Clear Lam Packaging Inc. Earthbound Farm Sean Drake, IFCO Systems Stemilt Growers Inc.

t’s common knowledge that eye ber 3, 2009, at the PMA Fresh Summit Con- Lempert, founder and owner of The Supermar- appeal is buy appeal. So in the case of vention in Anaheim, CA, Bryan Silbermann, ket Guru; Jim Prevor, founder and editor-in- fresh produce, packaging packs a seri- CEO and president of PMA, remarked, “The chief of PRODUCE BUSINESS, DELI BUSINESS and ous punch. Consumers want to see entries we are receiving reflect an increasing the Perishable Pundit; Paul Singh, Ph.D., pro- Ithe product, but also want the packag- industry commitment to the role packaging fessor at Michigan State University’s School of ing to protect the produce from cuts and bruis- can play in maintaining product quality and Packaging; and Dr. Bob Whitaker, PMA’s chief es, be easily accessible and environmentally safety, in communicating with consumers and science officer. friendly. That’s a tall order, but the eight com- in demonstrating another aspect of the pro- Awards were given to: Earthbound Farm panies that were awarded the Packaging duce industry’s commitment to the environ- (environment/sustainability); Yottamark Inc. Impact Award from Newark, DE-based Pro- ment and sustainability.” (food safety/traceability); Clear Lam Packaging duce Marketing Association met all the neces- Thirty-one entries were chosen as finalists Inc. and Taylor Farms Inc. (functionality/tech- sary requirements. and then judged by a panel of industry veter- nology); The Oppenheimer Group and ZESPRI In the three years the awards have been ans including Leonard Batti, senior partner of (marketing design); Stemilt Growers Inc. (mar- given, the industry has taken note. During the Mixtec Group; John Bernardo, founder and keting messaging/content); and IFCO Systems award ceremony, which took place on Octo- owner of Sustainable Innovations LLC; Phil (supply chain efficiencies).

BEST IN ENVIRONMENT/ Samantha Cabaluna, Earth- SUSTAINABILITY bound’s director of communi- Earthbound Farm, San Juan Bautista, CA cations, remarks, “It was Product: Earthbound Farm Clamshell Packages: 5 oz., 11 oz., 1 lb. always on our mind to be & 2 lb. more green and environmen- With Earthbound Farm’s new clamshell packages, the company tally friendly, so this is the nat- becomes the first in the industry to make the switch to 100 percent ural next step. But we first had post-consumer recycled polyethylene terepthalate (PCR PET) plastic. to ensure there would be a Newly redesigned labels — to celebrate the company’s 25th anniver- consistent supply of recycled sary — on the salad containers point out the post-consumer content of PET plastic to use. Our cus- the packaging. tomers care a great deal about

DECEMBER 2009 • PRODUCE BUSINESS 75 76 Reader Service # 61 Reader Service # 76 PRODUCE BUSINESS• DECEMBER 2009 what’s beingdone.” value andunderstandtheimportanceof “It’s aplacewhereconsumerscan receive see alotmoreofthisinthefuture,”heasserts. come. “I’mprettyconfidentwearegoingto company’s bigwin,butknowsthere’s moreto product developmentteam,isthrilledwiththe this troublesomestatistic. fills. Earthbound’s newpackagingaddresses pounds ofusablePETwastingawayinland- new products,leavingmorethan4.5billion in 2007,only23percent wasrecycledinto of PETpackagingwaste Americans produced tection Agency, ofthenearly6billionpounds reverse sideofthenewlabels. ment, thewinningquotewillappearon donation intheirnametohelptheenviron- $500 U.S.SavingsBondandamatching because...” Inadditiontowinnersreceivinga choosing organic —itmatterstome to completethesentence,“Thankyoufor Web site,askingchildrenages17andunder has launchedaKid’s QuoteContestonits interest, too.” from ourcompetitors—ithaspiquedtheir been agreatresponsefromthem,andeven they wantedtoseeimprovements.There’s the earth,andpackagingwasalwaysplace Product: MicroBakerTraceable Labels Yottamark Inc., SAFETY/TRACEABILITY BEST INFOOD for oureffortswiththeMicroBakeryams deal. “It’s reallywonderfultoberecognized Harvestmark, knowstheawardmeansagreat harvested, aswellfoodsafetynotifications. yam, includingvariety, whereandwhenitwas great dealofinformationabouttheirspecific directly toHarvestmark’s Web sitetolearna wrapped yam.Thisway, consumerscango peel-off label,whichadherestoeachshrink- is printedonawater-resistant, 2x 1.5-inch Harvestmarkcode able, MicroBakeryams. A peel-off traceabilitylabelsforitsmicrowave- CA-based ProgressiveProduceintroduced Chad Smith,managerofbusinessand According totheU.S.EnvironmentalPro- In additiontothenewlabels,company Elliot Grant,chiefmarketingofficerfor Partnering with Yottamark, Los Angeles, Redwood City, CA Product: Taylor FreshBagPlus Village, IL&Taylor Farms Inc.,Salinas,CA Clear LamPackaging Inc., TECHNOLOGY BEST INFUNCTIONALITY/ a HarvestmarkapplicationontheiPhone.” but bytheendofthisyear, we’rehopingtoget took ayeartogetthetechnologydeveloped, to seealltheproductstracedinrealtime.It next stepintraceabilityandallowsconsumers FreshSummit]show, whichisthe year’s [PMA Interactive Trace Visualization (ITV)atthis level,” saysGrant.“We justlaunchedour invented awaytotaketraceabilitythenext company isn’t restingonitslaurels.“We’ve strawberries, grapesandtomatoes.Butthe technology. Otheritemsincludebaggedsalad, lion traceableitemsthankstotheHarvestmark very positively.” They lovetheproductandhaveresponded their producemakesthemfeelconnectedtoit. “Providing consumerswithawaytotrace powerful marketingtool. According toGrant, to accessrecipes,transformingthelabelintoa included cookinginstructionsandaWeb site the lifeofeachyam,Progressivehasalso consumers. Inadditiontobeingabletrace the produceindustrytooffertraceableyams accomplished overthepastthreeyears.” MicroBaker, butforeverythingwehave see theawardasrecognitionfornotjust But weperseveredandprovedthemwrong.I and somanypeoplesaiditcouldn’t bedone. because wearepioneeringareallynewpath bottom ofthebagcreatingpuddles, reducing there isatendencyformoisture to settleinthe often bruisedandbattered. Also withbags, ment awayfrombaggedlettuce, whichis explains, “Theconceptevolved from amove- chief marketingofficerfor ClearLam, right ontopofthelettuce. need forindividuallywrappeditemssitting easy-peel toppingcompartmenteliminatesthe ty andthe greater visibili- allows for the lettuce packaged from separately toppings are fact thatthe product. The shelf-life ofthe quality and pings onasealedcontainer, enhancingthe packaging solutionisolatesvarioussaladtop- Taylor Freshhasshown.Thefirst-of-its-kind fect forsingle-serve,ready-to-eatsalads,as Progressive’s yamsareonlyoneof850mil- Progressive Produceisoneofthefirstin Roman Forowycz,grouppresidentand Clear Lam’s latestpackagingoption isper- Elk Grove quality and shelf-life. But this type of packag- ing on healthful fare at the Newark, NJ, air- Part of the bin’s appeal is its colorful, eye- ing protects the product.” port, has already picked it up and has found catching graphics, which includes a photo of Both Clear Lam and Taylor Farms recog- great success,” reports Woodyear-Smith. It’s three generations of the Mathison family — nized the need for this kind of value-added an easy choice for travelers to pick up, throw the family that owns and operates Stemilt. “It’s product that would attract traditional retailers in their bag and eat on the plane.” definitely a trend now,” acknowledges Pep- and club stores. The packaging is easily stack- In the future, Oppenheimer hopes to get perl, “but we have been doing it for years. able, improving merchandising and shelf uti- the product into vending machines, offering a Consumers want to know where their food lization compared to bags. “There are so healthful choice in an area typically filled came from and have a personal connection to many benefits to this type of packaging,” with fried, fatty food choices. it, and we want them to know that we are emphasizes Forowycz. “There’s a higher ring people growing for people.” at retail, which retailers love, and they can BEST IN MARKETING also be merchandised nicely in pyramid dis- MESSAGING/CONTENT BEST IN SUPPLY play. Consumers like it because the lettuce Stemilt Growers Inc., Wenatchee, WA CHAIN EFFICIENCIES stays in good shape, they can see the product Product: Fresh, Flavorful & Family-Farmed IFCO Systems, Houston, TX clearly and it’s easy to reclose with the snap- Cherry Display Bin Product: Reusable Plastic Containers on lid.” There’s no doubt Stemilt’s pop-up cherry (RPCs) The packaging also lends itself to conve- display was a success. In fact, it was so popu- IFCO’s new generation reusable plastic nience stores as an easy and healthful grab- lar that 3,313 stores used the display during containers (RPCs) answer the produce indus- and-go meal solution. “With so many people the peak of cherry season. Research of retail try’s call for sustainable transport packaging. paying attention to their health lately, these scan data found that cherry sales accounted The containers are made for infinite reuse and salads would be a great option in a conve- for 7.9 percent of total produce department generate 29 percent nience store,” muses Forowycz. “Instead of dollars at a large Eastern retailer when a sec- less gases, require 3 picking up the fried burritos or hot dogs, con- ondary display of Stemilt’s cherry bin was percent less energy sumers can make a positive choice. We hope used. This is 1.5 percent above total regions and produce 95 that by next year’s PMA Fresh Summit — or for the same timeframe, confirming the use of percent less solid maybe even sooner — we’ll see this packag- secondary displays is an effective way to mer- weight when com- ing in vending machines.” chandise cherries. pared to corrugated boxes used in the BEST IN MARKETING DESIGN same produce ship- The Oppenheimer Group, Vancouver, ping applications, according to a study by BC, Canada & ZESPRI, Mount Maunganui, Franklin Associates. “We introduced our RPCs New Zealand to the United States market in 1996 and since Product: Kiwi Snack Pack then, have created a new generation every five Oppenheimer’s single-serve kiwi clamshell years,” notes marketing manager Hillary comes with a scoop spoon and even a wet Femal, “but this one, which was introduced in wipe, suggesting kiwis as the perfect grab-and- October, 2008, is definitely the best one yet. go snack. “There’s plenty of display options We were a finalist last year for the award and for retailers who can choose to buy the entire came so close, so it’s really wonderful to win display box, which holds nine of the individu- this year. It’s a validation of what we have ally packed kiwis, or if they’d rather, they can known all along.” buy the single units to include within their One of the reasons for the bin’s wide- Not only are IFCO’s RPCs more environ- kiwi display,” explains Steve Woodyear-Smith, spread success might be its ease of use. The mentally sound than corrugated boxes, they director of kiwifruit and mango categories for display, which holds one standard-size carton also protect the produce while in transit all the The Oppenheimer Group. of Stemilt cherries or multiple clamshells/bags, way from the field to the retail display. “Our The fact that the clamshell comes with has no additional pieces or assembly required. RPCs are designed to keep produce fresh and everything a consumer would need to enjoy It simply pops into place when removed from safe throughout the supply chain,” asserts the fruit on-the-spot is a big selling point, and the bag it is shipped in, a great selling point Femal. “The scalloped smooth interior pre- makes it a perfect application for meal solu- since retailers typically don’t have ample time vents bruising in stonefruit and ample ventila- tions in the produce department or even at to set up complicated merchandising displays. tion helps reduce shrink by increasing airflow. convenience stores. Foodservice accounts “We’re known for our bins,” admits Stemilt’s What’s more, the containers are made with could also benefit from the clever packaging marketing director, Roger Pepperl, “but this the use of water-injection molding, which as it would be an excellent addition to hospi- past year, we wanted it to be very easy with strengthens the crate while reducing the tals, airports, school lunch rooms, cruise ships no moving parts and just one piece to worry weight. This water-injection technology (WIT) and more. “The Grain Station, a new grab- about. The fact is, the guys in the store don’t hollows out the plastic sections with cooling and-go retail have much time, so it needs to be user-friend- water and creates a thinner, more uniform and concept focus- ly and a 1-2-3 assembly.” smooth wall, compared to the conventional What’s more, the clear plastic used to ship gas-assist molding, which is also harmful to the display makes it easily visible for produce the environment. It’s this consistent shape and managers, reducing the chance it will get lost size of the side walls that allows them to be in the shuffle of the unloading docks. “The latched together with user-friendly clips, mak- clear bagging lets it stand out from the tons of ing them easy to assemble or collapse. IFCO’s brown, corrugated boxes arriving on a daily crates are the only RPCs that incorporate WIT basis,” points out Pepperl. in their construction. pb

DECEMBER 2009 • PRODUCE BUSINESS 77 M E R C H A Warm Up That Wintertime N D I S Ring With Florida Citrus I Plenty of variety and opportunities to shine makes N Florida citrus a serious category contender. G BY CAROL BAREUTHER R E urricanes and diseases, such as Al Finch, vice president of mar- V canker and greening, have taken keting for Diversified Citrus I a toll on Florida’s citrus indus- Marketing Inc., based in Lake E try. For example, total citrus pro- Hamilton, FL, “But we antici- E duction acreage and volume pate a good season ahead.” W Hdeclined by 20 to 30 percent, respectively, The state’s 2009 citrus crop between the 2003-04 and the 2007-08 grow- estimate, released October 9 by ing seasons, according to the report, Eco- the USDA indicates the state nomic Impacts of the Florida Citrus Industry will produce 136 million boxes in 2007-2008, published by researchers from of oranges, 19.8 million boxes the University of Florida’s Institute of Food of grapefruit and 5.9 million and Agricultural Services, in Gainesville, FL. boxes of specialty fruit, which However, the total value of the citrus fruit represents a 14.5 percent Sweetbay’s Season’s Finest program focuses on increased by more than 30 percent to $1.76 decline from actual production fresh, Florida citrus. billion — with fresh fruit accounting for in the 2008-09 crop year. Grape- $253 million — during this same time frame fruit production will be down nine percent McLean, president and CEO for Uncle due to higher prices. This makes the state’s and specialty citrus will increase 18 percent. Matt’s Organic Inc. and Uncle Matt’s Fresh, citrus industry a major economic force, both Approximately 10 percent of the state’s total in Clermont, FL. to the local economy and to the bottom line citrus crop is sold fresh, while the remaining of produce retailers instate and nationwide, goes into processing. THE CITRUS SELECTION especially for fresh fruit during peak pro- Sam Jones, Florida citrus operations At Sweetbay, category manager Tom duction from December into March. manager for Oviedo, FL-based Duda Farm DeBlieck carries a variety of citrus includ- Steve Williams, director of produce and Fresh Foods Inc., maintains, “Although over- ing, “Florida oranges, grapefruit and tanger- floral at Sweetbay Supermarket, a chain all orange production is down due to a ines and within this, several different vari- based in Tampa, FL, and member of Del- spring cold event, there are still excellent eties that change with the season.” haize America, the U.S. division of Brussels, quality and promotable volumes on early-, Florida growers offer conventional as Belgium-based Delhaize Group, remarks, mid- and late-season Florida oranges.” well as organic citrus. McLean asserts, “Our customers specifically look for Florida On the grapefruit front, Paul Genke, “Even though organic citrus is still a small citrus and we work with growers to bring in director of sales and marketing for The niche market, it’s an important one because fruit when it eats its best.” Packers of Indian River Ltd., headquartered consumers keep asking for it.” Juice oranges, Red Navels, Honey Tan- in Ft. Pierce, FL, admits, “Rain last year Hearl notes, “One industry trend is gerines, tree-ripened Tangelos, Honeybells adversely affected the eating quality of the bagged citrus — grapefruit, oranges, tanger- and Red and White grapefruit from Florida, fruit. This year, although our volume is ines. This is an area of growth for several are all displayed in the produce department down, the crop is shaping up to have better reasons. Consumers are leaning toward in January, according to Dave Brossart, gen- eating quality and external eye appeal.” smaller packages due to smaller households. eral manager for produce and floral at Jun- Kathy Hearl, marketing promotion man- The economy is changing consumer-pur- gle Jim’s International Market, a single spe- ager for DNE World Fruit Sales, located in chasing behavior toward buying smaller vol- cialty store in Fairfield, OH. Fort Pierce, FL, which markets both red- and umes and making more frequent trips to the white-fleshed grapefruit under the Ocean supermarket to avoid any waste. We offer SEASONAL OUTLOOK Spray label, agrees and adds, “Reports show smaller 3-pound bags in most of our vari- Unseasonably warm weather delayed very good Brix levels.” eties to meet the needs of consumers.” maturity and the start of Florida’s citrus “Now we just hold our breath and hope The Lakeland-based Florida Department crop harvest by about three weeks, reports for no freezes this winter,” says Matt of Citrus (FDOC) has updated and distrib-

78 PRODUCE BUSINESS • DECEMBER 2009 Reader Service # 25 M E What’s New? R R pecialty citrus, or easy-peelers, seem December.” C to be the continuing bright spot for According to Chaires, the USDA-ARS H S fresh citrus, says Nichole Towell, Laboratory in Ft. Pierce, FL, is in the process marketing development manager for Duda of patenting an early season, low-seed Tan- A Farm Fresh Foods, Inc., in Oviedo, FL. “There gerine variety called the Early Pride, as well N is strong consumer demand for sweet and as a seedless Pineapple Orange variety. easy-to-peel citrus.” The Tango, a seedless Mandarin D D Several new varieties of citrus are in released by the University of California’s Cit- I development, says David Mixon, senior vice rus Breeding Program, is a variety of which S president and chief marketing officer for the NVDMC has obtained Florida rights. Seald-Sweet International, in Vero Beach, Chaires says, “We see some initial plantings I FL. “However, we won’t see a good volume in the north part of the state and south, but N of production for about five years.” the problem is a limited supply of bud One of the first new varieties is the wood.” G Sugar Belle, developed and patented out of Flavor and easy-peel are traits Florida cit- the University of Florida’s IFAS (Institute of rus breeders are breeding for in newer vari- R Food and Agricultural Sciences) Citrus eties. However, according to a February 13, Research and Education Center, located in 2008-released report, Florida Department of E Lake Alfred, FL. Peter Chaires, executive Citrus Tangerine Taste Test, commissioned V director of the New Varieties Development by the FDOC, consumers ranked freshness & Management Corp. (NVDMC), in Lake- (78 percent), flavor (76 percent), appearance I land, FL, says, “This is a Mandarin hybrid (62 percent), juiciness (65 percent) and price E 5 variety. It resembles a Honeybell Tangelo, (55 percent) as “extremely important” ahead W #3 but with a richer internal and external color of number of seeds (53 percent). and robust complex flavor. It’s risen to the Chaires adds, “This recent evidence sug- top in consumer taste trials against other gests that while seedlessness remains a Mandarin varieties. The Sugar Belle harvests strong determinant in citrus selection, it is four to six weeks ahead of the Honeybell, not exclusively driving purchase decisions Reader Serv i ce therefore it will be available in early as once thought.” pb

uted its Produce Buyer’s Guide to Florida David Mixon, senior vice president and Citrus this year. The guide is a useful refer- chief marketing officer for Seald-Sweet ence for produce buyers and other responsi- International, located in Vero Beach, FL, ble for purchasing the state’s citrus. recommends the Temple orange. “It is a Oranges: Florida oranges are featured in good-eating, easy-peel specialty orange with Sweetbay Supermarkets, according to a 4- to 6-week window that starts in Janu- DeBlieck. “We started with Navels this fall, ary.” Mixon adds, “Some retailers will just followed by juice oranges such as Hamlin. run a short one-week to 10-day promotion Pineapple oranges will come in the first of on a piece of fruit, such as the Temple the year and then we’ll have Valencias until orange, and then not carry it. We suggest May or June.” carrying it for its full window of availability. As for Navels, Diversified’s Finch reveals, Retailers who do this have found success “Industry wise, we’re looking at about a 30 and few found dollar sales.” percent smaller crop. This is due partly to Grapefruit: There’s a smaller crop and weather and partly because its an alternate smaller overall sizing of Florida grapefruit bearing year. The message for retailers is this season, says Finch. “Smaller 48s and 56s that we probably won’t have Florida Navels in 5-pound bags are a great promotional into January and there are concerns we opportunity. Larger sizes like 27s and 32s won’t make it to Christmas. We’ve seen high will be more of a premium.” demand for Navels early in the season com- Most domestic customers prefer red- ing off the high FOBs on imported Navels fleshed grapefruit, Finch adds. “Many retail- this summer and Navels are big in the gift ers have discontinued white grapefruit out fruit market, which all combines to mean of their order guides,” he discloses. “This we move through inventory faster.” variety is primarily exported to Japan.” 27

# Some varieties, such Ambersweet However, Scott George, domestic sales oranges, which are available from October manager for DLF International Inc., based into January, will tend to size smaller this in Vero Beach, FL, contends, “Some domes- season, says Finch. “They’ll peak on 100- tic retailers, for example a chain in Kansas count sizes. This means opportunities for 4- City and another one in New Jersey, are

Reader Serv i ce and 5-pound bag promotions.” positioning white grapefruit as an upscale

80 PRODUCE BUSINESS • DECEMBER 2009 boutique item and playing on its sweet fla- vor and have had success.” Tangerines & Tangelos: At Sweetbay, Competition & Cooperation DeBlieck reports, “Tangerines do well with n 2008, Florida accounted for 71 per- demand has grown for darker red vari- our customers. They enjoy the taste, low cent of the total U.S. value of production eties.” number of seeds and easy-peel features. I for oranges, 68 percent for grapefruit Nichole Towell, marketing development We’ll carry a variety through the season, and 27 percent for tangerines, according to manager for Duda Farm Fresh Foods Inc., in starting with Fallglo, then, for example, Sun- the 2008 Florida Agricultural Statistical Oviedo, Fl, says, “The increased competi- burst, Dancy and Honey Tangerines.” Highlights, published by the Tallahassee- tion from imported and California-grown DNE’s Hearl details, “Sunburst Tanger- based Florida Department of Agriculture specialty citrus has caused growers to ines are available through early January. and Consumer Services (FDACS). Texas and begin examining other specialty citrus vari- Sizing will be smaller than last year. A good California, as well as a number of foreign eties that are compatible with Florida grow- promotable item for the holiday season is countries, compete with Florida — as well ing conditions.” the 3-pound bag.” She adds, “This season, as buy the state’s citrus. Retail buying The largest impact on Florida’s ability to you will see an increase in volume and size habits reflect this. sell its citrus this season comes on the on Honey Tangerines, which are available Maria Brous, director of media and com- heels of the USDA Animal and Plant Health from January to mid-April.” munity relations for Publix Supermarkets, Inspection Service’s (APHIS) October 22 rul- Florida’s two main Tangelo varieties are headquartered in Lakeland, FL, says, “We ing that the state’s fruit quarantined for cit- the Orlando and the Minneola, or Honey- have always supported the Florida grower. rus canker can now be shipped to all U.S. bell. George notes, “Honeybells are a bou- Our philosophy is to first look to our local states, including Arizona, California, tique item for us. They have a short win- growing areas for quality product that pro- Louisiana and Texas and U.S. territories. dow, the first through third week in Janu- vide value to our customers. If a product is This ruling is based on the results of new ary, are expensive, perishable, and hard to not available in Florida, we look across the and thorough scientific research, explains harvest, but the flavor is something that has Southeast, then throughout the U.S. Only Richard Kinney, executive vice president of made them a real growth item and a major after we have exhausted resources in the the Lakeland-based Florida Citrus Packers program for us.” States do we look internationally for the Association. “This opens up the possibilities products our customers want.” of where a grower can market his fruit and MERCHANDISING TIPS Competition from other areas has is a tremendous relief for the industry.” Uncle Matt’s McLean reports, “Large con- changed Florida’s fresh citrus industry. For Kathy Hearl, marketing promotion man- ventional retailers will carry three to four example, David Mixon, senior vice presi- ager for DNE World Fruit Sales, in Fort varieties of citrus, such as a juice orange, dent and chief marketing officer for Seald- Pierce, FL, says, “The reopening of the citrus Navel, grapefruit and tangerine. Specialty Sweet International, headquartered in Vero producing states is very important for retailers carry as much as a grower can give Beach, FL., points out, “After the freeze in Honey Tangerines, since the crop is larger them. For us, this includes Satsumas, Min- the early 80s, Texas started planting more this year. In the past, we relied heavily on neola Tangelos, Temple oranges, Honeybells Star Ruby grapefruit. Now, both Florida and California and Texas to move a large seg- and Pummelos.” California have followed suit as consumer ment of this crop.” pb When it comes to organic citrus, McLean prefers to see it integrated with convention- Sweet’s Mixon, “especially if it is something Spray fresh citrus with Ocean Spray juice al product. “This way, customers can see all unique and available for a short window.” drinks that has been very successful over of their options and don’t have to go out of Lastly, an important merchandising tac- the past few years. It takes place nationwide their normal guying pattern. A good exam- tic is sampling demos. Hearl advises, “Get- during January when many consumers ple of this is Super Target. Its citrus displays ting consumers to break out of their comfort think about dieting and health. This season are on a two-tier system with conventional zone and purchase something new can be a we will be using a high graphic display bin fruit on the bottom shelf and organic fruit challenge. This is one of the reasons we for the promotion.” on the top.” support sampling citrus during its peak fla- For the second year, the FDOC is offering At Sweetbay, in addition to the regular vor. Interacting with consumers and letting free grapefruit spoons with the purchase of set, “We’ll open up additional space alloca- them taste it before they purchase is a great fresh Florida grapefruit or grapefruit juice. tion when fruit is on ad,” says Williams. “For way to increase sales.” Florida packers will insert the grapefruit example, a 4- to 8-foot set in the front of the spoon redemption offer in bags of fresh department. We’ll also build freestanding PROMOTIONAL STRATEGIES Florida grapefruit. In addition, FDOC secondary displays of Florida citrus in the Publix promotes Florida citrus as part of encourages retailers to display the grapefruit produce department. In addition, we feel it’s the chain’s At Season’s Peak program, while spoon redemption offer next to fresh Florida important to cut a piece of fruit in half on Sweetbay does the same with its Season’s grapefruit displays and at the point of pur- the display. This gives customers a good Finest program. chase for Florida grapefruit juice. visual of what’s inside. Eye appeal sells.” Diversified’s Finch notes, “January is This season, FDOC will also run a 15-sec- Florida citrus displays are well labeled at when production is at its peak, so it’s a great ond video promoting fresh grapefruit, Sweetbay. Williams adds, “We’ve designed time to run mix-and-match ads. For exam- oranges and tangerines in the produce and and printed 7x11-inch and 3x5-inch signs ple, multi-unit pricing on 3-pound bags of deli departments of 648 Northeast super- that have the Fresh From Florida logo. They tangerines, 4-pound bags of oranges and 5- markets in the New York, Boston and really stand out and allow consumers to pound bags of grapefruit can capture a high- Philadelphia markets. The videos will fea- readily identify Florida-grown citrus.” er ring for the category.” ture Michael Marks, ‘The Produce Man,’ and Is it important to sign and promote citrus According to DNE’s Hearl, “We will con- appear on 42-inch plasma screens during by varietal name? “Absolutely,” says Seald tinue to run a cross-promotion of Ocean the first quarter of 2010. pb

DECEMBER 2009 • PRODUCE BUSINESS 81 82 Reader Service #21 Reader Service #22 PRODUCE BUSINESS• DECEMBER 2009

Reader Service #23 Tangerines, Minneolas,Satsumas Navel Oranges: mid-October throughDecember. Lemons: California grownandavailable & RoyalMandarins.Available Citrus Varietals: California’s desertregion, Coastal Californiaandthe www.sun-world.com October throughMarch. oranges withthickskin. superior flavor, call: flavor, superior San JoaquinValley. For produce with with produce For 760.398.9430 661.631.4160 Bakersfield: Grown inSoutheastern Coachella: Winter seedless Fairchild

Reader Service #3 Reader Service #2 directores whenyouarereadytobuy Email: [email protected] rectory SalesDepartment Directory rectory orany other,directory please call For additonalcopesofths ALL BUYERS ATTENTION 561-9941118 and askfor USE . BOST ON MARKET PROFILE

Focusing On What They Do Best Boston wholesalers do whatever it takes to maintain the business they love.

BY JAN FIALKOW

The Boston produce market — actually two separate markets that abut each other, the Boston Market Terminal in Everett, MA, and the New England Produce Center in Chelsea, MA — is a 21st century amalgam of tradition and forward thinking. It is the home of long-established companies, many of which are welcoming the third, fourth and even fifth generations of their founding families. [Editor’s note: please see Lots Of Lineage on page 92.] It is also a dynamic operation striving to weather national economic trends by adapting new business practices to compete in a much-changed financial reality.

DECEMBER 2009 • PRODUCE BUSINESS 83 BOSTON MARKET PROFILE

Paul Travers, Mutual Produce Corp. Richard Travers, Mutual Produce Corp. Butch Fabio, J. Bonafede Co. Inc.

Most of the wholesalers on the markets both to maintain the levels of the past. Accord- ing with staples. We’re doing what we’ve done note their businesses are doing well, but they ing to Steven Piazza, president of Community- since 1973. We’re working as hard as we ever need to expend more time, more services or Suffolk Inc., based in Everett, MA, “We’re stick- have to maintain the business, but it’s working. We’re providing more service and more value to our customers.” Another member of the Community-Suffolk family, David Piazza, vice president of sales, relates, “The market is doing OK, but it takes a lot of work. The big days are Monday, Thursday, Friday and Saturday. Tuesday and Wednesday are slow now. I speak to New York every night around 12:30 to see what’s going on, what’s up, what’s down. It gives me a jump before it gets busy here. I come in the earliest and I leave the earliest. Steven stays late, so it’s a good fit.” Yanni Alphas, owner of The Alphas Co. Inc., in Chelsea, MA, acknowledges the tough cli- mate, saying, “The economy is finally catching up with us. We have to work harder than ever before. The easy lay-ups are gone.” “Business is slow this year — it isn’t as robust as usual,” says P.J. Forster, a sales associ- ate with Chelsea, MA-based Mutual Produce Corp. “We have to work harder and be more alert. The flow is different; you just have to be on top of it. We focus on what we do best.” Patrick Burke, in sales and procurement for Garden Fresh Salad Co. Inc., located on the New England Produce Center, offers this assess- ment: “You have to fight for your sales. You have to be a little more aggressive than normal. Customers may call every day but you have to push the product.” “We give a damn about our customers,” says Dave Patnaude, sales manager of Coast to Coast Produce LLC, headquartered in Cheshire, CT, with a branch at the Boston Terminal Mar- ket, in Everett, MA. They’re like our families. Without them, we’re not in business. We try harder and we’re always available. We answer the phone 24/7. They can talk to us. Our cus- tomers and suppliers help us be what we are.” Anthony Sharrino, owner, president and director of Eaton & Eustis Co., located in Chelsea, MA, has a philosophical take on the state of the business. “You have to reach for the right price point to keep merchandise moving. There aren’t as many highs and lows in pricing. Now people will do without or they’ll buy only as they need. They’re watching their invento- ries. If a guy wants 30, you can’t sell him 40.

Reader Service # 48 You work thinner and watch expenses. But I still

84 PRODUCE BUSINESS • DCEMBER 2009 Reader Service # 63 BOSTON MARKET PROFILE

Peter Bonafede, J. Bonafede Co. Inc. John Finn, Coast To Coast Produce Sean Murdock, Coast To Coast Produce

love the business — I love what I do.” MA, “The Saturday openings began gradually, days a week.” but now everybody is open. Hannaford [the Ken Cavallaro notes, “Brazilians, South MAKING ADJUSTMENTS 171-store chain based in South Portland, ME] Americans in general, Asians and Russians are Boston is one of the country’s few terminal wanted a Saturday pickup, so the market start- the major ethnic groups. The ethnic groups still markets that still have significant chain busi- ed making exceptions.” cook. The immigrant generation doesn’t assimi- ness, albeit mostly fill-ins. “The chains have An on-going change in the produce busi- late quickly to the U.S. diet. They try to main- always been a major part of the market here — ness revolves around the constantly changing tain what’s familiar; that’s why there are so I can’t speak for the rest of the country,” says ethnic make-up of the community. Where once many ethnic restaurants. They add to our prod- Ken Cavallaro, treasurer at John Cerasuolo Co. Italians, Irish and Eastern Europeans were the uct mix — we have more varieties to sell. But Inc., in Chelsea, MA. predominant immigrants, today’s ethnic com- mainstream U.S. items are still predominant.” One way the Boston wholesalers are cater- munities tend to be Central and South Ameri- “We’ve added Asian, Indian and Hispanic ing to this segment is by expanding their open- can, Asian, Russian and African. The cuisines lines because the customer base is more diver- for-business hours to include Saturdays. “The may demand different produce items, but the sified,” explains David Piazza. “They eat well market is now open for five hours on Saturday business of delivering those items stays the because they actually cook. Brazilians have from 4:30 to 9:30 am. We have to be. The same. “The biggest new ethnic buying groups always supported the market. They’re the dealers outside the market are open seven are Brazilians, Russians, Central Americans and largest ethnic group in the Chelsea area. Lots of days,” explains Sharrino. Vietnamese,” reports Steven Piazza of Commu- Brazilian restaurants are opening.” According to Butch Fabio, treasurer at J. nity-Suffolk. “They don’t have warehouses yet It’s helpful, says Steven Piazza, because, “We Bonafede Co. Inc., headquartered in Chelsea, so they have to shop the market four to five supply a lot of folks who supply restaurants. Reader Service # 77 Reader Service # 64

86 PRODUCE BUSINESS • DECEMBER 2009 Reader Service # 59 BOSTON MARKET PROFILE

Dave Patnaude, Mario Cutone, Sheldon Borodkin, Paul Tavilla, Peter Renda, Marco Imbergamo, Coast to Coast Produce M. Cutone Mushroom Costa Fruit & Produce Arthur G. Silk Inc. Arthur G. Silk Inc. Arthur G. Silk Inc. Co. Inc.

trade to South American trade, Brazilian espe- cially. Some of the items are the same, but the names are different.” “We see continued growth in ethnic foods,” concurs Gene Fabio, president of J. Bonafede. “Different groups have different names for the same thing. Part of doing business is learning the names. Most groups have specific varieties of an item particular to their cuisines. For exam- ple, there are over 20 kinds of eggplant. We have four or five suppliers so we can satisfy everyone’s varied needs. “Finding a new item can be profitable,” Gene Fabio continues. “In the beginning, it tends to Jackie, Steven, and Tom Piazza and Ron Dugas, Community-Suffolk Inc. be short term and low volume, but once every- one knows about it, it shifts. We’re offering There’s a good balance between the retail and considered a staple by any ethnic group sells Hawaiian plantains. Right now, Ugandans — the foodservice business.” well. The first generation tends to eat ethnic they call them metoki — are the only group Bonafede’s Fabio notes, “Anything that’s food on holidays. The shift is from Caribbean that eats them. There’s a significant Ugandan population in the Northeast. We FedEx’d a box to western New York. It cost $30 to ship a $40 box of metoki.” Another way to cater to the demands of the new economic realities is to recognize that there is still seasonality in the produce busi- ness. Seasons play a role because the business- es that buy from the wholesale market are often governed by the weather. “Lots of early rain in the tourist areas put everyone off schedule,” relates Steven Piazza. “The most difficult aspect is keeping people on track with payment sched- ules. We’re working with them.” “Business progresses smoothly — we want to feed everyone we can. Still, there’s been a slight lull. We’re looking forward to holiday business. We wait for March. This is a spring business,” adds Gene Fabio. Seasonality also plays into what type of pro- duce customers are looking for. It’s not that items are unavailable, but certain items move better at certain times of the year. “Pumpkins moved very well this year. I was surprised because cash is tight — you don’t know how many people will spend $10 to $12 for a big pumpkin,” says Steven Piazza. According to Patnaude of Coast to Coast 46

# Produce, “October [when this interview was done] is the worst month for the market. Lots of local vegetables and apple picking take the business. Historically, it’s a tough month all over — that’s why PMA is in October.”

Reader Serv i ce “At this time of year, things are slow any-

88 PRODUCE BUSINESS • DECEMBER 2009 BOSTON MARKET PROFILE

Tom Ciovacco P.J. Forster Skip Cavallaro Stephen Condakes John Bonafede Stephen Silk Mutual Produce Corp. Mutual Produce Corp. John Cerasuolo Co. Inc. Peter Condakes Co. Inc. J. Bonafede Co. Inc. Arthur G. Silk Inc. way,” says Bonafede’s Butch Fabio, “but this year, the drop-off is steeper. We have a good spurt for several days before the holidays.” Domestic citrus is still a winter crop but, fruit imported from the southern hemisphere has made it available during the summer. Jackie Piazza, responsible for citrus sales at Communi- ty-Suffolk, notes, “The market itself is very strong. The Chilean lemon deal should have been an in-and-out deal, but they continue shipping. They’re still coming in — and that’s brought the market down. “The South African Navels came in with great quality,” Jackie Piazza continues. “Chilean Dominic Cavallaro, III, Angelo Melito and Ken Cavallaro, John Cerasuolo Co. Inc. Navels were allowed into the country for the first time this year for a few weeks [following the South African crop] and the quality is Mineolas. As we go into winter, the citrus busi- just started, but the quality looks OK.” amazing. They put the South African deal to ness picks up. There’s a wide variety and some- In October, when this interview was con- sleep. South Africa went on to other things, like thing else is always coming in. The Florida stuff ducted, Jackie Piazza commented, “We’ve added Reader Service # 79

DECEMBER 2009 • PRODUCE BUSINESS 89 BOSTON MARKET PROFILE

Jim Primpas, Gene Fabio, Anthony Sharrino, Jim Ruma, Kevin and Mary Jane Maher Buyer on the Market J. Bonafede Co. Inc. Eaton & Eustis Co. Ruma Fruit & Produce Coosemans Boston Inc. Freska Produce Co. Co. Inc. gories to maximize their positions. “We’ve added a new melon category — seedless and mini-seedless watermelons,” says Patnaude. “It’s retail-generated. Consumers like mini watermel- ons and want them year-round. Watermelon consumption is growing because the melons contain so many nutrients.” Patnaude believes this growth comes at the expense of more traditional business. “Can- taloupe and honeydew are falling off,” he admits. “The honeydews are too large and young people don’t want big melons. They want these melons in a processed form. Honey- dew costs a lot to ship and competes with watermelon. Besides, many consumers don’t Yanni Alphas, Brian Scolaro and Damien Colloca, The Alphas Co. Inc. know how to pick a ripe honeydew. One way to pomegranates. We’re only in the second week, become popular.” help is with ripening programs. For example, so I’m not sure if they’ll succeed. They’re very King O’ The West — that’s a Turlock brand — expensive, but there is a demand — restaurants SPECIALIZATION ripens the melons for Publix [the 1,000-plus- use them a lot. Before the holidays they Some wholesalers specialize in specific cate- store chain based in Lakeland, FL] and gets 47 57 # # Reader Serv i ce Reader Serv i ce

90 PRODUCE BUSINESS • DECEMBER 2009 BOSTON MARKET PROFILE

George Salis and Peter John Condakes, Peter Condakes Co. Inc. them to the sweetness Publix wants.” However, he does see continuing strengths for the tradi- tional melon business, adding, “The business is there with the ethnic buyers, and the Tuscan melon may have more staying power.” At M. Cutone Mushroom Co. Inc., in Chelsea, MA, president Mario Cutone remarks, “The economy has hurt everything, but we’re doing OK. The information about mushrooms being so healthful is definitely helping. I have no complaints. Oyster mushrooms have really picked up. The restaurants are introducing peo- ple to new varieties. The wild stuff is really tak- ing off because restaurants are trying whatever they can get.” Noting that even with mush- rooms there is seasonality, fresh Porcini is one popular variety still governed by Mother Nature. To supply those customers that want Porcini year-round, Cutone offers them frozen as well as dried. Filling a specific niche is another way to maintain market share. Jim Ruma, president of Reader Service # 50 Ruma Fruit & Produce Co. Inc., headquartered in Everett, MA, began selling fruit baskets in 1973 and the company still does the lion’s share of its business in gift baskets. But from early April to late June each year, the name of the game is fiddleheads. The young, edible fern shoots that still grow wild in northern New Eng- land and Canada are a delicacy with a short window of availability. “We started with the fid- dleheads after somebody showed up at our door with a pick-up filled with fiddleheads and asked if we wanted them,” Ruma explains. “Now we ship all over the country.” In addition to fid- dleheads, the company also sells ramps, a spring vegetable also know as wild leeks, which are highly sought after by chefs, and this year, added wild Maine blueberries. Coosemans Boston Inc., headquartered in Chelsea, MA, is dedicated to specialty produce. Kevin Maher, vice president, notes, “Business has been more sporadic than in the past — months that should be good aren’t, but by the same token, months that should be bad aren’t. Some restaurants have gone out of business and some have stopped offering lunch. Many are doing small bites to keep the prices down. Yet chefs are asking for fava beans — they’re primarily a spring item, but they’re coming in from Mexico. “An item has to be unique to get in the mix

CONTINUED ON PAGE 94 Reader Service # 49

DECEMBER 2009 • PRODUCE BUSINESS 91 BOSTON MARKET PROFILE Lots of Lineage Boston market businesses boast multiple generations of family members. BY JAN FIALKOW

orking in the produce industry has a lot ly, the others are getting used to the idea — it of advantages, but also some disadvan- just takes them longer. Once all the computers W tages as well. go up, they’ll handle wholesale and processing,” On the plus side, Izzy D’Alleva, founder, she says. president and owner of Garden Fresh Salad Co. Many members of the next generation point Inc. out of Chelsea, MA, waxes nostalgic out that working with their family is an impor- remembering how he found a home in the tant part of their career choice. “I’m working industry after emigrating to this country in very closely with my aunts,” relates Melissa. “I 1955. He goes on to say that his son Lou “came love it — our family is very close. A lot of what I in to work after school. That’s how he learned missed at my other job the business. My sons, daughters and their was seeing my family, spouses work here. My granddaughter works especially my father here, too,” he proclaims proudly. because we were on On the negative side, there are the hours. totally opposite sched- According to Anthony Sharrino, owner, presi- ules.” dent and director of Eaton & Eustis Co., based in Chelsea, MA. “The talent is out there, but the CERASUOLO hours make it hard to attract anyone outside the John Cerasuolo Dominic Cavallaro, III, family.” Co., located in John Cerasuolo That viewpoint is confirmed by David Piaz- Chelsea, MA, has two Co. Inc. za, vice president of sales for Community Suf- members of the third folk Inc., in Everett, MA, who notes, “Very few generation working in the family business — people come into the business unless their fami- Dominic Cavallaro III, son of Skip Cavallaro ly is in the business already.” and Kara Cavallaro-Rullo, daughter of Ken Cav- Luckily for many companies, there are usual- allaro. lymembers of the next generation who want to Dominic III graduated Southern New work alongside their families. Hampshire University in 2007 with a degree in advertising. He attended on a hockey scholar- GARDEN FRESH ship and continues to Melissa D’Alleva, Izzy D’Alleva’s grand- play in pick-up leagues. daughter and Lou D’Alleva’s daughter, is the He’s been coming to third generation to be a part of Garden Fresh. the market since he was She graduated from Merrimack College in 2006 just a kid. “I’ve been with a degree in digital media. “I used to work coming in full-time here during the summer during the summer when I was in college, in since I graduated from the office, helping with high school. I came in odds and ends,” she when I was very young, Kara Cavallaro-Rullo, John Cerasuolo explains. “I learned how but mostly I just Co. Inc. the business works. I played.” worked elsewhere for “The business is in my blood,” Dominic three years as a photogra- continues. “I do everything — drive trucks, load, pher’s assistant, but I unload, sell — whatever they need me to do. I’m Melissa D’Alleva, missed it here.” Garden Fresh Salad the low man on the totem pole — I have to work “I’m doing a lot of my way up.” office work and putting in new computer sys- Those tough hours are never out of mind. tem,” Melissa adds. “I’m learning it and teaching “Waking up at 1:00 am isn’t easy, but I love the it [to our team at the same time.] People are business,” says Dominic. coming around to the idea. They’re learning a Kara Cavallaro-Rullo graduated from Merri- whole new way of doing business. They’re being mack College with a major in communications very supportive and helpful. The people in my and a minor in business. As a girl, she experi-

Reader Service # 58 generation grew up using computers. Fortunate- enced the gender discrimination that has just

92 PRODUCE BUSINESS • DECEMBER 2009 BOSTON MARKET PROFILE recently begun to fade from the wholesale mar- University and is the vice president of sales and Development, but I do everything and anything ket. “I came to play here when my grandfather marketing. She has a B.A. in sociology and an on a daily basis,” continues Michael. “That’s was alive. I couldn’t work here as a teenager M.A. in education. “I was a teacher in Los Ange- part of running a family business. I’m currently because I was a girl. I wanted to come to work les for 11 years, teaching middle school reading working on several endeavors, including our in 2002 when I graduated college, but my dad and writing. I was ready for a change and could new banana and tropical fruit program. We said ‘No girls allowed!’ When I was 27, the com- not not find anything I liked. I knew I could go opened a new ripening facility and distribution pany got really busy and needed help. They also home — so I did. I’m in charge of web sales and center in November and we’re very excited by needed someone to bring it into the 21st centu- revamping the Web site. I’m involved with the new opportunities that this presents.” ry,” she explains. “When an old-timer who was search engine optimization,” she notes. “Access Adam Strock, son of Bruce Strock, joined the in her 70s left, I came on board and introduced to Google analytics helps me know when peo- company in June, 2008, after graduating from computers to the company! Three years ago, I ple are on the Web site, how long they stay on the University of Massachusetts at Amherst with introduced Excel and e-mail, but they still write and where they go next. I don’t have actual a degree in environmental science. He manages all the tickets by hand. I do some accounting, names but I can track patterns. I’m also doing IT and food safety. “It’s my job to make sure payables and receivables, some inventory, gener- catalog design. We do a third quarter mailing for that the company has the safest possible prod- al office stuff and IT.” the fourth quarter. I buy lists of corporate gift ucts. I’m steering the company into a culture of Kara is married and has a new baby — buyers. The recipients of gifts often become food safety — bringing it into the 21st century.” Francesca — perhaps she’ll become a member of buyers themselves,” Andrea concludes. Adam views his job as combining two very the fourth generation in the produce industry? distinct viewpoints — technological and cultural. Kara also does floral design when she’s not at S. STROCK & CO “I have to think from multiple sides. The future work on the market. S. Strock & Co. Inc., located in Chelsea, of food safety is to focus on what we do now MA, has been in business for 113 years and now and do it better. You can have technology, tech- RUMA FRUIT & PRODUCE is the workplace of two members of the fifth nical know-how and equipment, but you need a Ruma Fruit & Produce Co. Inc., located in generation of Strocks. food safety culture. You need to teach people to Everett, MA, was a finalist in the Northeastern Michael Strock graduated from Bentley Uni- see what they’ve been doing in a different way. University Center for Family Massachusetts versity this past May with a double major in That’s hard — and it will take time. Youth is an Business of the Year Award, thanks to advantage on the technology side — it the efforts of Mark and Andrea Ruma, gives me credibility. But on the culture son and daughter of Jim Ruma. side, the older folks look at you like Mark joined Ruma in 1994 after you have three heads. They ask a lot of attending the University of Massachu- “Staying in one place and working questions about why we have to setts at Boston, where he majored in change.” business. He is currently the vice presi- with your family gives you a sense Serendipity dent of operation. “I didn’t know what of your own history. You’re played a role in I was going to do. One day I just came Adam’s career to work here and never left,” he says of carrying on a tradition.” path. “I didn’t his entry into the family business. — Adam Strock, know I was But he understands that taking going to come one’s rightful place in a family business S. Strock & Co. Inc. into the busi- is a path not easily traveled. “We’re ness,” he members of the Northeastern Universi- admits. “My Adam Strock, S. Strock & Co. Inc. ty Family Business Forum. It helps us father came to prepare to take over the company and offers aid corporate finance and accounting. The 23-year- me with the problem — the increasing complexi- old son of Rick Strock, Michael has been work- ty of food safety needs — and I analyzed it and ing at the company since he was a just a young saw that the company needed someone to take boy. “Starting when I was 14, I worked every it on. Everyone else had their own areas. My summer in the warehouse unloading trucks, grandfather offered me the job. I’d just graduat- picking orders and ed college and here’s this perfect opportunity. sweeping the floors,” he The timing was impeccable. It was like fate.” remembers. “I always Like the other members of generation next, knew I’d go into the Adam sees the family connection as being para- business; I think I was mount. “Working with your family opens up a Mark and Andrea Ruma, Ruma Fruit & Produce Co. Inc. bred for it. One of my whole new way of thinking about life,” he main- grandfathers dedicated tains. “A lot of people grow up, go to college, in succession issues, things that are unique to his life to his boutique become something and often they find them- family businesses. There are meetings of about fruit store. The other, selves disconnected from where they grew up, Michael Strock, 20 people every six weeks. They come from all Sam Strock, is an icon in S. Strock & Co. Inc. their community, their friends — they could be kinds of businesses — an elevator company, a the wholesale produce anywhere. Staying in one place and working bakery, assisted living facilities — but we all have industry.” with your family gives you a sense of your own similar issues that other companies don’t. We Family is important to Michael. “You get to history. You’re carrying on a tradition. My father have to work out professional relationships with see your family every day,” he says. “Working and grandfather have a tremendous sense of our parents and siblings. Only 3 percent of fam- with my grandfather is the greatest part. He’s pride in what I’m doing — and they have no ily businesses make it to the fourth generation.” my mentor. He taught me everything I know.” trouble communicating it. This is part of our Andrea Ruma graduated from Villanova “My official title is Director of Business home. Work is part of our home.” pb

DECEMBER 2009 • PRODUCE BUSINESS 93 BOSTON MARKET PROFILE CONTINUED FROM PAGE 91 gourmet medley from Mastronardi is very popu- produce Center, notes, “We started ramping up here,” Maher continues. “Microgreens do well. lar. Specific items do well when our customers food safety in 1989-99, and ramped up again We have local growers, one in New Jersey have them on ad.” in 2002. We’re a relatively small company in the and one in California that supply us. Micro- grand scheme of things. We’re 10 years into flowers do well, too. Brussels sprouts started FOOD SAFETY this,” he reiterates. “Some folks on the market about a month ago — the babies are in now. Food safety is an important part of the pro- are doing it, some aren’t. Most of the big ship- “Maine tomatoes have been very good and duce picture. “Food safety is a priority at the pers are certified. When are they going to ask if very consistent,” Maher explains. “Backyard Coosemans family of companies. We have to the receivers are certified? When will they say I Farms [based in Portland, ME] just opened adhere for the sake of our customers,” pro- won’t ship to you anymore because you’re another greenhouse. We take a lot of their claims Maher. messing up my supply chain? I’m not looking loose tomatoes — they’re very good. Cherry Peter John Condakes, president of Peter for government regulation — I’m looking for and on-the-vine tomatoes are coming on. The Condakes Co. Inc., located on the New England self-regulation. That being said, shopping is done on price, not on quality, safety and trace- ability. The customer base and shipping com- munity have not bought into the Produce Trace- ability Initiative yet. With all the emphasis on food safety, how do you handle the demand for farmers markets and buy local?” he asks. “There’s no question that we’re doing what we should,” adds George Salis, a sales associate with Peter Condakes Co., “but many people aren’t. The others should have caught up by now; we’re not on an equal playing field.” “We’re being penalized [but the expendi- tures aren’t the same]. A portion of the busi- ness doesn’t care about safety — only price,” continues Condakes. “We will adapt — food safety and traceability will work. It has to.”

WHAT WILL BE? The future will largely be determined by the economy, and no one has an accurate crystal ball. Right now, everyone is looking for whatever positives they can find. “We’re not as tied to the economy as a lot of other industries,” says Cerasuolo’s Cavallaro. “Retail is doing a bit bet- ter and foodservice is a bit off. People are eat- ing home more.” According to Paul Travers, president of Mutual Produce Corp., “Prices are real high right now so things have slowed downed. Peo- ple still have to eat.” “I’ve been doing this for 25 years,” notes Mutual’s Forster. “There’s more phone and fax business now. The buyers used to come in. If you have a good relationship, the buyers trust you and do business by phone.” Garden Fresh’s Burke also comments on how business is done. “Not as many people are walking the market. There’s no longer an open- ing rush. People are here throughout the hours we’re open. Mostly, they go where they already do business.” “We’re a lot more cautious than we were,” relates Sharrino of Eaton & Eustis. “Volume is up and down. You have three strong days out of a 5-day week. The business never fully recov- ered from 9/11 and now you have to add in the complication of the financial meltdown. If peo- ple don’t have discretionary dollars, there’s no impulse buying. On the market, we’re every- body’s warehouse. I don’t mind — as long as we’re compensated.” pb

94 PRODUCE BUSINESS • DECEMBER 2009 BOST ON F OODSERVICE PROFILE L’Espalier

One of Boston’s finest restaurants focuses on fresh, farm-grown produce.

BY JAN FIALKOW

hortly after L’Espalier opened its doors on Boylston Street in Boston 31 years S ago, it began receiving accolades for introducing haute cuisine to a city then best known for baked beans and fried clams. In 1982, the restaurant moved into a beautiful, quirky, historic townhouse on Gloucester Street in the Back Bay — one of Boston’s toniest residential neighborhoods — where it remained until 2008 when it moved back to Boylston Street, this time in the Mandarin Ori- ental Hotel complex. The staff shops daily for all produce, operation. Sel de la Terre, the more casual included braised lamb and black pepper pap- seafood and meat items and supports local restaurant under the L’Espalier imprimatur, also pardelle with parsnips and Pecorino Ginepro growers and purveyors whenever possible. Pro- receives fresh produce from the chef’s farm. cheese; confit leg of duck with Brussels sprouts, prietor and chef, Frank McClelland, who pur- The restaurant also turns to Sparrow Arc hummus and Shishito peppers; Apple Street chased L’Espalier in 1988, lives on and works Farm in Troy, ME, for gourmet and heirloom Farm chicken livers crostini with balsamic glazed the land at Apple Street Farm in the North vegetables, salad and braising greens, herbs onions and grapefruit glaçage; and seared loin Shore town of Essex. The 14-acre organic farm and apples. When produce cannot be grown of cod with fried caper potato salad and Wood grows fresh herbs and heirloom fruits and veg- locally and for items the chef does not grow, Ear mushrooms served with lemon vinaigrette. etables. It’s also home to chickens and livestock L’Espalier relies on brokers from the local mar- Dessert was almost too beautiful to eat. The that are fed the farm’s fresh produce and ket, such as A. Russo & Sons Inc., in Watertown, aptly named chocolate decadence is a rush of whole-grain breads that remain unsold at Au MA, and Baldor Boston LLC, in Chelsea, MA. dense, silky, intense chocolate ganache offset Soleil Bakery & Catering, L’Espalier’s sister by the tart crunch of pomegranate arils. pb A Luxurious Lunch Lunch at L’Espalier is a glorious experience — quiet, refined and elegant. Diners can choose from a seasonal 3-course prix fixe or L’ESPALIER 6-course degustation menu, a 3-course power 774 Boylston Street lunch or à la carte selections. Boston, MA PRODUCE BUSINESS dined at L’Espalier in 617-262-3023 October, when the menu reflected the best of the seasonal harvest. Shortly after being seat- HOURS: ed, our waiter brought each diner an amuse Lunch: bouche — a small triangular slice of smoked Monday - Friday: 11:30 am - 2:30 pm salmon Napoleon topped with American Saturday & Sunday :12 noon - 1:45 pm caviar. It started the meal on a very fine note. The autumn prix fixe appetizer choices Dinner: included duck breast salami salad with pome- Daily: 5:30 - 10:30 pm granate arils and Honeycrisp apples; crispy black pudding with wild mushroom ragoût and Tea: a poached egg from Apple Street Farm; oys- Saturdays & Sundays: 2 pm - 3:30 pm ters with Saint Germain (elderflower liqueur) and American caviar; and house-smoked Salon: Cocktails & small bites, salmon with pink grapefruit roulade, cream 11 am - midnight cheese and King salmon roe. Moving on to the entrée, the choice

DECEMBER 2009 • PRODUCE BUSINESS 95 BOST ON RETAIL PROFILE Dave’s Marketplace Pride in a job well done.

BY JAN FIALKOW

here’s something very familiar about the Dave’s Marketplace store in East T Greenwich, RI. It makes you feel as if you’re stepping back in time to a world where customer service, bountiful displays and top- quality produce were the norm rather than the exception. In October, when PRODUCE BUSINESS visited Dave’s, produce associates throughout the department were tending to displays and greeting customers by name. Everywhere you looked, people were smiling. According to Charlie DiMascio, director of produce, “Customer service is our No. 1 priori- ty” — and it shows. This is a top-down attitude The team at Dave’s Marketplace includes Dennis Hogan, Eddie Forte, Bill Hogan, Lou evident in even the smallest details. For exam- Furcolo and Charlie DiMascio. ple, every store in the chain offers customers free coffee all day, every day. Even better, the ables, perishables — produce, deli and pre- highlight the health benefits of each item and coffee is delicious and the coffee kiosks are pared foods. Seafood is another major driver. some offer cooking tips. In October, the sea- clean and inviting. Most of the chains are getting out of seafood.” sonal areas were filled with apples, pumpkins, The history of the company is pure Ameri- Dave’s must be doing things right. “Our squash, fresh cranberries and loose Brussels cana. In 1969, Dave Cesario opened a roadside same store sales are up — we haven’t been sprouts. The outside displays are for local pro- fruit and vegetable stand called Dave’s Fruitland hurt by the recession,” points out Hogan. “We duce in season — corn and tomatoes in sum- in Smithfield, RI. By 1978, it had grown to a service an educated demographic. It’s essential- mer, apples in fall. small 8,000-square-foot store that sold pro- ly the same customer Whole Foods is chasing. DiMascio buys off the the New England Pro- duce and deli. Today, Dave’s Marketplace oper- It’s easier to compete now. There’s a lot of duce center and Boston Terminal Market several ates eight stores and is the largest independent opportunity for an operator in Rhode Island days a week. “The guys in Boston take care of grocery chain in Rhode Island. Bill Hogan, gen- right now. The economy is actually creating lots their own — and good customers are their eral manager, explains the company by saying, of opportunity.” own,” he explains. He also buys from Tourtellott “We’re local and we want to stay that way.” Produce, the first department upon enter- & Co. Inc., a wholesaler in Warwick, RI. “Produce is the draw,” Hogan continues. ing the store, sets the tone for the operation. “We buy locally in season and the farmers “Our stores are all about perishables, perish- Unobtrusive signs throughout the department deliver right to our stores,” notes DiMascio.

96 PRODUCE BUSINESS • DECEMBER 2009 UPS foroutofstate,” Hogancontinues. “We same day orthenext day.” the store thenext day. On-lineorders shipthe oronline.In-store orders are available at store they buy theirown. You canorder baskets in- sons, Charliebuys fruitforthem,otherwise ment,” says Hogan.“Duringtheholiday sea- from theproduce depart- entity and aseparate are custom-made “Fruit baskets commissary. be can’t made instore ismadeina12,500-square-foot What year. a 25,000 giftbaskets both withandwithoutproduce. Infact,itsells type ofapple. eachaisle isnamedafter a — Apple Orchard square-foot produce themeis department Smithfield inOctober. Thenearly 7,000- ty. Theeighthandnewest store openedin ment ring. appeal to theclientele andincrease thedepart- other complements to thefresh produce. They gourmet salts, finecheeses, condiments and areduce department add-onitems suchas merchandise ofinferiorquality.” if anitem isunavailable —butwe willnot sell duce upondelivery. Customers willunderstand whom heisbuying from, “We inspectallpro- andwe pay themafairprice.”Regardless of — “We as support many localfarmers as we can Lcldieswl eie nsaeandwe use willdeliver instate “Local drivers Dave’s does abigbusiness ingiftbaskets, Each store has its own themeandpersonali- Placed strategically throughout thepro- otherwise everyone would begood.” — “You have to begoodat thingsthat are difficult dent andwell deserved. As BillHogannotes, store upandrunningforcustomers.” one has worked around theclockto keep the whenevery- tion. For example, after ablizzard managers canalsoholdadinnerat theirdiscre- Furcolo, director ofstore operations. “Store one around thewinter holidays,” explains Lou appreciation dinner—oneinthesummerand takes prideinwhat they do.” this company are. Everyone connectingto nice thecashiers even commentonhow ple very well. Customers company. We’re like family. They treat theirpeo- forabetter never worked Hogan, says, “I’ve week —part-time! —andisnorelation to Bill director ofproduce whostillworks 40 hours a ever worked for. DennisHogan,theretired Dave’s. DiMascio callsitthebest company he’s time, part-time, seasonal — like working for and like working forus.” ple eachyear —they know what they’re doing in thestate andwe tend to hire thesamepeo- fact, we’re oneofthelargest private employers so we’re asubstantial seasonal employer. In hire peopleto make thebaskets andto deliver The pridethat characterizes Dave’s isevi- “Twice ayear thecompany has anemployee It seemsvirtually alltheemployees —full- OTNRTI PROFILE RETAIL BOSTON East Greenwich,RI02818 Sunday: 7:00 am-8:00pm DAVE’S MARKETPLACE 1000 DivsonStreet Monday - Saturday: Monday -Saturday: 7:00 am-9:00pm 401-558-0190 H OURS : pb DECEMBER 2009•PRODUCE BUSINESS

97 Reader Service #73 Reader Service #33 Reader Service # 29 D R I E Almonds Find Success D F R U In Produce Department I T The almond’s health image and enhanced flavors make it a perfect fit with produce. & BY BARBARA ROBISON N ore consumers recognize U the almond is a nutritional T treasure. They associate S almonds with the health and freshness of fresh Mfruits and vegetables. “We sell a significant amount of almonds in produce,” acknowl- edges David Turner, president of Suntree LLC, based in Orosi, CA. “The nut’s nutri- tional values are well known, prices have been at good levels, and they are a great promotional item.” Okie’s Thriftway Markets, headquartered in Ocean Park, WA, part of the Portland, OR- Versatility makes almonds a consumer favorite and an easy sell within produce aisles. based chain of Thriftway Stores Inc., sets up large nut displays immediately following has become especially popular.” of the more than 6,000 California almond Halloween. “We offer in-shell nuts in large growers and processors. One of the Board’s bins and arrange assorted packaged nuts in EMPHASIZE ALMOND current consumer programs emphasizes the one-half bushel baskets on end-cap displays, HEALTH VALUES health message with the Simple Solutions adjacent to the bins,” explains produce man- Mariani Nut Co., in Winters, CA, learned theme. “Almonds fit into any life style,” ager Dwayne Smallwood. “During the holi- through industry research and its own com- asserts Harbinder Maan, manager of North day period, we run in-store nut specials. pany-sponsored efforts that consumer inter- America ingredient and category marketing Almonds are popular with our customers.” est in healthful food choices is growing and for the Board. “We suggest ways for con- All domestically produced almonds are is strongly skewed to heart health. “We’ve sumers to fit them into their busy lives grown in California. The current California just launched a retail merchandising pro- through advertising, public relations and almond harvest estimates are for a 1.35 bil- gram supporting almonds, a first for our working with consumer media. We provide lion pound crop compared to a 1.6 billion company,” reports president Matt Mariani. ideas to jazz up almonds during the holi- pound crop last year, according to Ron Fish- “Our campaign — Get Your Heart Pumping days. We also offer a Tip of the Day, such as er, founder, president and CEO of Modesto, — will be supported by materials that can be keeping a jar of almonds on the office desk CA-based Fisher Nut Co. “With the shorter customized for our retail customers.” for a healthy snack.” crop and European buyers more interested A one-ounce serving of almonds (about Many snack mixes include almonds. A in our almonds, because of the dollar 23) provides fiber, “good” monounsaturated popular one in produce departments is a exchange rates, prices are beginning to fat, and six grams of protein. A serving is combination of jumbo golden raisins and firm,” he states. also cholesterol-free and has only 160 calo- cranberries with almonds, according to Adar Robert Rocha, sales manager for P-R ries. In 2003, the U.S. Food and Drug Raitses, president of Holbrook, NY-based Farms Inc., an almond grower, packer and Administration (FDA) recognized almonds Nature’s Best Snacks, a division of CTC Sales shipper out of Clovis, CA, reveals, “We sell with a health claim. It suggested that eating Group Inc. “We like to emphasize the health indirectly to retailers through rebaggers and 1.5 ounces per day of most nuts, such as values in the mixes, especially when they roasters, and our customers tell us the almonds, as part of a diet low in saturated contain almonds,” he adds. almond business in produce is growing. fat and cholesterol may reduce the risk of Chefs have embraced the idea of combining heart disease. FLAVORS ENHANCE almonds and produce on the Food Network, The Modesto-based Almond Board of Cal- ALMOND SALES APPEAL which has helped. Almond usage in salads ifornia (ABC) promotes almonds on behalf Versatility, with many shapes and flavors

DECEMBER 2009 • PRODUCE BUSINESS 99 D R Food Safety First I ood safety concerns are a part of To date, the FDA has approved oil- E marketing any food product and roasting, dry-roasting, blanching, steam D F almonds are no exception. The Cali- processing and propylene oxide (PPO) fornia almond industry has made it a top processes as acceptable forms of almond priority in the growing and marketing of pasteurization. F its products. The Almond Board of Cali- “Promoting the fact that our nuts are fornia, (ABC) located in Modesto, CA, from California resonates with con- R R worked with the USDA to institute an sumers,” points out Matt Mariani, presi- U industry-wide pasteurization program dent of Mariani Nut Co, headquartered in I beginning in 2007. Its purpose is to Winters, CA. “The fact that all the Califor- ensure consumers are provided with safe, nia almonds are pasteurized, and that our T wholesome food products, free from company participates in voluntary potentially harmful levels of unsafe bac- almond sampling for aflatoxins and in teria that can cause illness, without com- orchard sanitation programs, is important & promising the qualities of almonds. to our success.” pb

N available, is one reason that almonds sell excellent,” reveals Mark Devencenzi, nation- U well when merchandised in produce depart- al sales director for SunRidge Farms, in T ments. Whether it’s in salads, as a vegetable Pajaro, CA, a marketer of all-natural and topping or with a selection of fresh fruits, organic nuts, seeds and dried fruits. “We also S the nut provides many ways to quickly add have a wide selection of other flavors, which interest to a menu. include tamari-roasted, a wasabi blend, and To emphasize the compatibility of almonds with organic coatings of dark almonds with many produce items, Para- chocolate and yogurt.” The company mar- mount Farms Inc., in Bakersfield, CA, is kets 50 to 60 trail mix formulas, many of marketing the Almond Accents line. The all- them with almonds as a major component. natural, flavored, sliced almonds are dry- Reader Service # 45 roasted with no added oil, cholesterol or DIVERSIFIED PACKAGING trans fat. The packaged nuts come in a vari- Almond packaging and containers are ety of flavors specfically designed to com- becoming more diversified. In response to plement today’s newer entrée salads. “We retail produce managers’ requests, Mariani introduced a new Almond Accents holiday has introduced a 12-ounce clear pack, in promotion,” says senior marketing manager addition to its 10-ounce stand-up bag. “The Margaret Tom. “We are giving away a free clear packaging concept is consistent with glass shaker with the purchase of two bags products found in fresh produce where con- of the nuts. The shaker and nuts are pack- sumers want to view the product in the aged together and shipped in a pre-packed package,” states Matt Mariani. “Within a display. The promotion will last through week of its introduction, our clear package December, or as long as supplies last.” received a positive response. This included a Original oven-roasted, honey-roasted, significant number of private label orders.” ranch, and roasted garlic Caesar almonds Hines Nut Co., based in Dallas, TX, a are selling well for Naturally Fresh, head- supplier of edible tree nuts and peanuts, quartered in Atlanta, GA, a marketer of all provides a biodegradable tray pack for its natural and organic nuts, according to mar- shelled almonds. “It is like a meat pack and keting manager David Federico. “There is comes in 10-, 12-, and 16-ounce sizes,” more interest in sliced almonds now,” he explains Carol Santana, a member of the 1 relates. “Our 3 ⁄2-ounce almond pouches company’s retail sales department. provide an excellent merchandising item for Milam’s Market, a five-store chain based produce. There are real tie-in opportunities in Miami Springs, FL, likes using a rack for for almonds, especially with salad greens its packages of sliced and whole raw and our salad dressings.” almonds, according to produce manager Besides the traditional almonds, more Mario Herrera. Free-standing display racks, unusual flavored ones are appearing in pro- with 24 pegs to hold almond packages, are duce departments. These include vanilla available from SunRidge Farms. The compa- pomegranate, chipotle-roasted and butter ny also offers almonds in a poly bag set toffee glazed. SunTree has experienced a inside a cardboard box, with a Plexiglas lid. spike in cinnamon-flavored almond sales. Customers can easily scoop out the nuts, “Raw almonds sell well, but interest in and it is a convenient display piece for cross

Reader Service # 26 our roasted hickory-flavored almonds is merchandising in produce. pb

100 PRODUCE BUSINESS • DECEMBER 2009 F L O R A Floral Transportation L & Airports Connect to Floral Departments F O With efforts to bring floral products from Central and South America L directly to more U.S. airports, will retailers look to the skies for shrink solutions? I A BY E. SHAUNN ALDERMAN G E

M onsumers have no idea it nearly importer and provider takes a village to bring offshore of fresh-cut flowers, A floral products into their homes. bouquets and con- R Eighty percent of the flowers sumer bunches. K sold in the U.S. are grown off- “Miami has the most E Cshore. Once harvested, flowers travel by efficient port for cut land, sea and air to reach North American flower clearance, T supermarkets. logistics, sales and I Approximately 86.3 percent of all flowers marketing. It also has N entering the U.S. enter through Miami. With a large staff of cus- its international airport, the list of “villagers” toms and agriculture G in Miami managing floral product arrivals personnel with years includes USDA inspectors and fumigation of experience han- specialists, Department of Homeland Secu- dling fresh flowers.” rity, and Customs and Border Protection. Boldt concurs, say- From there, the list involves additional par- ing Miami has the ticipants including bouquet manufacturers, facilities and the logis- freight forwarders, consolidators, distribu- tics to back up its Photo courtesy of Miami-Dade Aviation Department. tors and transforwarders, among others. position. “Logistics in Floral cargo arriving in Miami is a given, but what will Latin With so many players involved in the Miami can’t be dupli- American flights to new U.S. airports mean for retailers? logistics, there are bound to be a few glitch- cated.” She believes es along the way. Accusing fingers often most people would be point to Miami and blame floral shipment surprised to know the manpower it takes to because the product is simply not lasting delays on an overworked system, especially get flowers to consumers. long enough to sell. Retailers continuously during the holidays. The system is not per- look for fresher products and methods to fect but dealing with temperature-sensitive KEEPING IT maintain freshness once the floral products products is detail-oriented and demanding. CONSISTENTLY COLD reach their stores. And temperature man- According to Christine Boldt, executive In addition to the occasional bottleneck- agement always plays a part in preventing vice president of the Miami, FL-based Asso- ing occurring in Miami, some customers floral product loss. ciation of Floral Importers of Florida (AFIF), blame the South Florida heat as another rea- Retailers often depend on floral suppliers Miami’s floral transport system involves cus- son to consider alternate ports. Warm tem- to evaluate technology and new cold chain toms inspections 24 hours per day, seven peratures during transit or during transit management practices during shipping. days a week. Miami also has 32 truck lines stages cause significant problems with floral Concern that new technology overrides cost operating seven days a week, 365 days a postharvest performance. Consistent cold effectiveness is typical, but having more year, and demand makes necessary the chain management is only one factor that options for shipping flowers allows the operation of two floral fumigation stations. affects shelf life but it is at the top of the list. receivers to evaluate what is good, better or “The problem with our industry is that Product with low shelf life is only one cause best for the product. “As innovations in tem- Miami is considered a place, not a link in of shrink. perature-controlled shipping containers con- the logistic chain,” explains Christine Mar- Retailers naturally question how much is tinue their advance, the cost of leasing older tindale, owner of Esprit Miami, Inc., a floral too much when throwing out flowers technologies will decrease, which in turn

DECEMBER 2009 • PRODUCE BUSINESS 101 F will offer shippers cost effective access to L highly effective cold chain options,” explains Mark Mohr, manager, Product Development O and Specialty Sales, Continental Airlines Diversification Focus R Cargo, Houston, TX. For Truckers A When retailers evaluate shrink problems in their floral departments, their minds L don’t necessarily lead them to the closest auling flowers and plants no longer brings home enough bacon. Credit the airport. But with efforts to bring floral prod- crunching economy or applaud on-going obstacles such as high fuel prices, ucts from Central and South America to H but strategy-minded transportation companies offering trucking services are & & more U.S. airports, retailers can choose now diversifying. among several air transport hubs. “Almost every one we speak to says they are down three to 10 percent because of F the economy,” says Richard Martins, vice president of Peninsula Trucking Inc., Sorren- HOUSTON OPENS to, FL. “We are trying to diversify into produce in addition to our foliage division.” O WITH HOPE Known for transporting foliage, the Central Florida LTL foliage carrier has been hauling L Need and desire have spurred the open- since 1982. Martins explains supermarkets will benefit by their move to deliver pro- ing of the new Houston Fresh Air Cargo IAH duce because Peninsula’s service spurs more competition in transportation. I facility, located at the Bush Intercontinental Also diversifying into produce is Armellini Express Lines Inc., Miami, FL. “We have A Airport, Houston, TX. The general idea is to started carrying any produce that can be combined with flowers from an ethylene gas G bring floral products in directly from Colom- standpoint,” discloses Stephen Armellini, vice president of sales. Armellini says the bia and bypass Miami. “What this means for service extension is beneficial to supermarkets because, “We can now haul more of E retailers is 24 to 72 hours of extended shelf their perishables, not just flowers.” The company also has what it endearingly calls the life for the flowers,” says Kerry Galegher, Basil Truck. Maintaining a 55 degree temperature, the herb truck carries a full range director, Tradewinds Cargo Handling, owned of fresh herbs up the East Coast departing Miami Mondays, Thursdays and Fridays. M by New Jersey-based Group One Invest- Diversification for the 54-year-old transportation company also means an exten- A ments LLC. sion of services. J.A. Flower Service Inc., created in 1977 by Armellini Industries Inc., R Additional perishables products will Palm City, FL, now has a production division in Miami that offers floral “chop-and- eventually be scheduled. Galegher says 35 drop” services. “We have opened a production operation to wet pack bouquets to fur- K million people live within a six-hour drive of ther serve our customers,” explains Armellini. Located a few blocks from the airport E Houston. With adequate access to the west the customs-bonded, refrigerated warehouse is a 43,000 square foot facility. pb and easy access to Highway 59 and I 45-N, T Galegher sees the facility servicing the I region from Colorado to Chicago. He’s also N confident about the floral forwarding by air- labeling imports prior to shipment to distrib- MidAmerica Perishables Center opened lines flying from Houston. ution centers or retails outlets. Certified a 19,000-square-foot warehouse a year ago to G The largest grocery store chains in the cargo screening for airlines, freight for- receive weekly floral shipments from Houston region have signed commitments warders, consolidators and commercial ship- Bogotá, Colombia. Shut downs became nec- to use the new facility for produce and flow- pers will be offered as well. Galegher essary. Tim Cantwell, director of MidAmeri- ers, according to Marlene McClinton, com- reports extreme security precautions are ca St. Louis Airport, explains, “Management munications manager, Houston Airport Sys- being taken and 100 percent of all cargo will inside cargo went sideways and the supply tem. “We are not yet ready to announce the go through X-ray. chain for freight going southbound wasn’t air carriers we’ll be working with in Bogotá. Transporting foliage and floral material working.” Operating since November 20, However, I can say that Continental Airlines to 48 states, South Florida-based Armellini Cantwell believes the re-start will bring Cargo has already signed on in a big way Industries Inc. plans to provide ground expansion. Flights are now on Fridays and they will be using the Fresh Air Cargo transportation from Houston. “We are not at instead of Thursdays and beginning the sec- Center heavily for both domestic and inter- all involved in promoting the Houston Fresh ond week of January, Cantwell says two national routes,” states McClinton. Air Cargo Center, but our customers know flights per week are scheduled. Martindale of Esprit Miami discloses, “We they have our support. Our transportation Naysayers predict Houston’s south- are discussing using Houston as a port of services will be available for floral products bound flights will cause the death of the pro- entry.” brought into Houston,” explains Stephen gram. What cargo will Houston fill the With an eye on eventual larger volumes Armellini, vice president of sales, Armellini planes with for return flights to South Amer- of floral material going on to Europe and Express Lines Inc., Miami, FL. ica? According to Galegher in Houston, Asia, Mohr of Continental envisions North extensive research conducted while forming American expansion to involve climate- OPTIMISM IS NECESSARY the cargo facility partnerships showed secure products flown from Colombia to Other airports such as Orlando, Mem- southbound flights will contain petro-related Houston and then Houston to Newark, NJ. phis and most recently MidAmerica St. products and high-tech products brought From there floral products would be trucked Louis have tried what Houston is attempt- into Houston’s port, which currently are to Canada. “The quicker it gets there, the ing. LAX in Los Angeles, CA, opened a being shipped by truck to Miami. longer it lasts and the less there is to throw 12,700-square-foot refrigerated facility in In touting the attributes of doing busi- away,” sums up Mohr. April 2009 to bring in flowers from Colom- ness through Miami, Martindale of Esprit Galegher says Tradewinds Cargo Han- bia and Ecuador. LAX receives 6.6 percent Miami says, “Miami has back-load freight, dling will offer a range of services including of all flowers coming into the U.S. from the which is necessary to subsidize the incom- pre-cooling imports, sorting imports and re- entire world. ing freight. Otherwise, we will have to pay

102 PRODUCE BUSINESS • DECEMBER 2009 Reader Service # 81 FLORAL Blooms Across WATCH The Ocean ccess to global floral products means consumers receive flowers shipped as sea freight. For retailers, A this means offering consumers a world of blooms that have gone from the fields to temperature-controlled containers that are monitored during ocean transit. Cold- chain management and manageable freight costs are desirable factors that seem to spur the interest and busi- ness of shipping flowers by sea. Tropical Plant Industry Maersk Line, the largest container carrier in the world, headquartered in Copenhagen, Denmark, entered into a Exhibition project four years ago called StarFlower. Various floral industry members and suppliers participated. “The target JANUARY 14-16, 2010 of this project was to convert flower transport from air Broward County Convention Center freight to marine containers,” says Peter Wedell-Neergaard, Fort Lauderdale, FL Maersk Captain, Reefer Management. Wageningen Univer- Hosted by Florida Nursery, Growers and Landscape Association sity in Holland conducted the StarFlower research. Orlando, FL Quality upon arrival remains the goal as with all shipped perishables. Some floral material handles ocean transit better than others. Wedell-Neergaard says roses, TPIE is the trade event that offers everything foliage, floral and tropi- depending on cultivar, have been the most challenging. cal… all in one location, at one time, at one place. TPIE’s trade show is Continued industry research is addressing typical quality more than an exhibit area – it’s 200,000 sq. ft. of living and vibrant plants issues such as botrytis, and temperature management is creating a virtual indoor garden of show-stopper displays. always in focus Educational seminars are a popular part of the annual event. With more Though Maersk’s main destination is Europe, the com- than 400 exhibiting companies, TPIE offers wholesale buyers the widest array of resources for foliage and tropical plants in the country. pany is actively shipping flowers and foliage from Latin America, Africa and The Far East. In addition to possible economic advantages floral products shipped as sea AISLE-BY-AISLE BOOTH PREVIEW freight offer retailers another way to promote their efforts Booth 124 Booth 225 of bringing a world of blooms to their customers. pb DecoWraps AG 3 Inc. Doral, FL Eustis, FL Deco Wraps has become a leading AG 3 is a leader in plant tissue cultur- supplier of distinctive packaging ing, cloning over 12 million plants per options for fresh flowers and potted year that are shipped to nurseries and for the trip both ways!” Boldt of AFIF says Miami has the plans. We offer prompt service, sim- greenhouses worldwide. AG 3 pro- advantage with some 30-plus years in the making. “You have plified logistics and competitive pric- duces perennials, grasses, tropicals, to have backhaul. Everyone tries but they can’t match the ing. We create products that are aquatics, ferns, bulbs, carnivorous, capabilities of Miami. With its multiple flights, the airlines can always fresh and innovative. Come landscape and foliage varieties in a visit us and see our exciting new 72-cell pack liner. gather products from all over the world to fill backhauls.” items.

PITTSBURGH MAKES A PLAY Booths: 230, 237, 3003 Booth 234 Primescape Products Co. Bay City Flower Company Retailers within a 500-mile radius of Pittsburgh, PA, might Buffalo Grove, IL Half Moon Bay, CA some day have access to fresh flowers flown directly from The industry’s premier The family-owned Bay City Flower Latin America to Pittsburgh International Airport. PIT contin- provider of interior landscaping con- Company celebrates 100 years of ues to make efforts to expand air cargo business. It has plenty tainers/supplies showcases custom- growing! We are known for producing colored Lechuza products, innovative the most diverse assortments of of land for expansion and uncomplicated access to interstates, metal pots and fiberglass containers in unique, high quality flowering plants according to Cece Poister, cargo manager, Air Cargo Task booths 230 and 237. Visit booth 3003 in the country. Our aim is to keep our Force. for an up-close look at Waterboy customers’ floral displays fresh, inter- With a focus on floral, Poister says the effort is chain-store watering-machines and, upscale plant esting and colorful. containers. driven. Time/savings and truck/costs studies have been con- ducted and Poister states there is a genuine interest to devel- Booth 229 Booth 316 op an efficient system that will enable retailers to receive Razbuton Ferns Inc. Pure Beauty Farms Winter Garden, FL Miami, FL flowers from South America faster then what is currently in Bright, bold and Pure Beauty Farms is a wholesale place. beautiful — our 10" fern baskets grower catering to southeastern mass From Pittsburgh, Poister explains that 65 percent of the speak for themselves. When you SEE merchandisers, retail garden centers, U.S. industrial population can be reached overnight by truck our ferns you will KNOW they are for landscapers and florists. We grow you! For TPIE, we are offering special over 100 varieties of annuals, perenni- and 50 percent of the Canadian population can be reached prices for these 10” beauties when als and holiday plants such as poinset- overnight by truck. The geographic positioning and the avail- shipped to you before Valentine’s tias. Our Miami and Georgia facilities ability to greatly expand existing air cargo facilities is a draw Day. Visit our booth for full details on combined provide us with over 250 Pittsburgh is promoting. pb pricing. acres of growing capacity.

104 DECEMBER 2009 • PRODUCE BUSINESS FLORAL WATCH Tropical Plant Industry Exhibition JANUARY 14-16, 2010 Broward County Convention Center Fort Lauderdale, FL Hosted by Florida Nursery, Growers and Landscape Association (FNGLA), Orlando, FL (Booth numbers are subject to change.) AISLE-BY-AISLE BOOTH PREVIEW

Booth 330 Booth 429 Booth 603 Booth 813 Pride Garden Products Kerry's Nursery Inc. Oglesby Plants International Inc. Country Joe’s Nursery King of Prussia, PA Homestead, FL Altha, FL Lake Worth, FL Pride Garden Products manufactures We create demand with the most We are a tissue-culture laboratory and We supply garden centers and floral innovative baskets, containers, carts fashion-forward products featuring the young plant supplier, in business since supply companies throughout the U.S. and accessories for supermarkets, highest quality orchids, bromeliads 1947. We produce liners for the tropi- and Canada with florist-quality, accli- mass markets, club stores, green- and eye-catching pottery from around cal plant, pot and landscape indus- mated tropical foliage and spring time house growers and garden centers. the world. Visit our booth and discov- tries. Visit our booth for the highest patio flowering items. Specializing in Our patented AquaSav™ coco liner er how our compelling, value-minded performing liner plants. Our roots are Grafted Ficus Bonsai, Mini Sansevieria, reduces watering 50% and promotes living arrangements can be the solu- deep in the horticulture industry and Arboricola “Mini” Braid, Ponytail Palm healthy root systems. tion you have been looking for to we are committed to growing for you. and much more. grow your floral department.

Booth 817 Booth 835 Booth 911 Booth 1003 Landmark Plastic Corporation Stewart’s Greenhouse Inc. Wekiwa Gardens Inc. Growing Systems Inc. Akron, OH Mount Dora, FL Apopka, FL Milwaukee, WI Landmark Plastic Corporation offers Committed to bringing the finest Family-owned Wekiwa Gardens has Growing Systems has been manufac- one of the most extensive and dynam- quality of indoor foliage to our cus- gained a reputation for producing tured propagation trays for all types of ic lines of thermoformed and injec- tomers, we provide a wide array of florist-quality plants. Known for our vegetable transplants for over 35 tion-molded horticultural packaging varieties in the Calathea, Ivy, and Aphelandra, we also grow Cissus, fra- years. We also manufacture seeders, products in the industry. Over 500 Aglaonema families as well as Golden grant Hoya, blooming Lipstick, Spike dislodgers, traveling irrigators and base products to help you grow your Pothos, Spathiphyllum and Palms. We Moss and Pothos. Let us help you monorail trolley cart systems. All user- plants better, smarter, and faster. See grow an assortment of sizes ranging offer unique, decorative plants that friendly and very accurate. Visit our our NEW Decorative Hanging Basket. from 2” to 10”. will keep your customers coming back. booth at TPIE for a demonstration. Booth 1014 Booth 1109 Booth 1035 Booth 1127 Peninsula Trucking Inc. Conrad Fafard Inc. IGI Marketing Deroose Plants Inc. Sorrento, FL Agawam, MA Sorrento, FL Apopka, FL Established in 1982, Peninsula Truck- To create horticultural masterpieces, IGI, a leading producer of Quality and strong customer service… ing, Inc. is one of the largest LTL & TL you need to start with the right mate- indoor foliage in the Apopka area These are our areas of focus at carriers in Florida. Servicing 48 states rials. Fafard mixes and custom blends since 1983, is your ultimate resource Deroose Plants Inc. Whether you’re with our multi-decked air ride trailers, have been the canvas for commercial for quality foliage and exceptional ser- looking for high quality liners or plants can be shipped without boxing, growers for almost a century. We test vice. We have over 240,000 total unusual and highly desirable finished arriving in better condition with less each batch of mix, use only the finest, square feet of state-of-the-art growing products to boost your profits, we impact on the environment. all-natural materials, and guarantee facilities, specializing in Ivy ‘Hedera,” have a line that will fit your business the quality and consistency of our Schlumbergera “Christmas Cactus,” needs. Let us grow along with you. mixes. assorted 4” plants and foliage liners. Booth 1211 Booth 1305 Booth 1339 Booth 1427 Dyna-Gro Nutrition Solutions Holmberg Farms Inc Pottery Land LLC Plants In Design Inc. Richmond, CA Lithia, FL Atlanta, GA Miami, FL Dyna-Gro Nutrition Solutions contain We are a quality wholesale grower of With 16 years in the Plants In Design Inc. is best all 16 essential mineral elements an excellent selection of container- pottery business, we serve our cus- known by interiorscapers who plants need for optimum growth and grown citrus, roses, tropical color, lin- tomers from either our east or west demand florist-grade bromeliads at all flowering. Pro-TeKt®, “The Silicon ers, palms, and woody ornamentals. coast warehouses; or direct from our times. We also ship significant quanti- Solution”® reduces environmental In business since 1962, we ship any- three factories. We aim to be your ties of these plants directly to upscale stresses to plants by strengthening where in the southeast. Visit our source for the best in glazed and rus- garden centers and supermarkets. We the cell walls. K-L-N Rooting Concen- booth and see our offerings online at tic pottery, offering a broad range of are the premier grower of bromeliads trateTM and Root-Gel® stimulate root www.holmbergfarms.com. See how products at the best possible pricing. of the most discriminating buyers. growth. we can grow your business. Booth 1503 Booth 1707 Penang Nursery Inc. Better Blooming Orchids Apopka, FL Kissimmee, FL Penang Nursery, Inc. is a grower and Better Blooming Orchids provides distributor of foliage in all sizes. Spe- high-quality elegance with truly better cializing in uniquely designed gardens orchids. We offer one grade of 4” of foliage, bamboo and bonsai, and four grades of 6” potted orchids Penang Nursery, Inc. is known for inno- with a vast selection of colors in each vation in our industry. Come see our shipment. Best Blooming grade has newest line of low maintenance self- three, four or five spikes per plant, watering pots. Discover the difference! and all have a high bud count.

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]

PRODUCE BUSINESS • DECEMBER 2009 105 FLORAL WATCH Tropical Plant Industry Exhibition JANUARY 14-16, 2010 Broward County Convention Center Fort Lauderdale, FL Hosted by Florida Nursery, Growers and Landscape Association (FNGLA), Orlando, FL (Booth numbers are subject to change.)

AISLE-BY-AISLE BOOTH PREVIEW

Booth 1713 Booth 1815 Custom Booth 1939 Booth 2101 Jaderloon Custom Foliage Service Foliage Jade Systems LLC Nature’s Dream Nursery Irmo, SC Apopka, FL Service Mills River, NC Miami, FL Jaderloon provides greenhouses, For over 20 years, Custom Foliage Jade can supply all your greenhouse Nature's Dream Nursery started five greenhouse equipment, nursery carts Service has provided A Grade Florist needs, from replacement parts to a years ago with a clear vision of inno- and quality service to help our cus- Quality indoor tropical foliage to new turnkey greenhouse from the vating by applying new technologies. tomers “grow.” Jaderloon has over 33 Wholesalers, Garden Centers, Super- ground up. Our #1 goal is customer State of the art automated retractable years of experience providing green- markets, Florists, and Interiorscapers. satisfaction. Products include energy- roof greenhouse and Ellepot machines houses from hobbyist to commercial We offer a full line of products from 3- shade systems, heaters, bench sys- mark the start with quality liners, and growers. Stop by our booth to see inch to large specimen material. Stop tems, irrigation, lights, rollup curtain the process continues to produce how we can help you “grow.” by rediscover what service is all about! walls, greenhouse structures. beautiful tropical ornamentals.

Booth 2139 Booth 2202 Booth 2315 Booth 2320 Tropical Plants and Foliage ASB Greenworld Inc. A-ROO Company LLC Batson's Foliage Group Inc. Apopka, FL Valdosta, GA Strongsville, OH Mount Dora, FL Tropical Plants and Foliage, a whole- For more than 30 years, ASB Green- For more than 40 years, A-ROO has Batson’s Foliage Group Inc., is family- sale nursery, offers a beautiful array of world has been a supplier to the floral created marketing, merchandising owned company that specializes in indoor foliage and plants for the industry. We are producers of peat and packaging solutions for the floral growing premium quality tropical home and business. We offer our moss and related mixes, including industry. We have containers and foliage. We cater to a high-end clien- clients quality indoor plant and foliage potting soils, mulch and bark items. vases, decorative packaging, display tele that demands the very best. We products and excellent professional Our own peat bog is located in New fixtures and accessories, films, sleeves are large enough to offer you a wide service. We provide shipping informa- Brunswick, Canada, with locations in and wraps, pot covers, ribbons, bows variety of product, yet small enough tion using sleeved or boxed material Mt. Elgin, ON, Canada, Valdosta, and picks. Offices in Ohio, Florida, to still give you the personal attention on a host of truck lines. Georgia and Virginia. Texas and California. you deserve. Booth 2531 Booth 2629 Booth 2926 Booth 2952-2954 Grow-Tech Inc. Capital Garden Products Ltd Eve's Garden Inc. GrowTech Solutions LLC Lisbon Falls, ME Oldwick, NJ Land O' Lakes, FL Rogersville, MO Providing solutions for professional For nearly 30 years, our Eve's Garden Inc., is a family-owned, We provide on-demand print systems, growers of all sizes in hydroponics, fiberglass containers with authentic, Bonsai Tree and Lucky Bamboo nurs- whereby you can print your own forestry and floriculture markets. The long lasting finishes have enhanced ery just north of Tampa. SEE OUR Signs, Banners, Tags & Labels on- Grow-Tech process binds common prestigious residential and commercial NEW LINE OF SEED KITS! We offer demand, in color, as few or as many as substrates into a high-tech stabilized venues throughout the world… even unique products designed, produced you need! Output is weather- growing media. Grow-Tech stabilized the keenest eye cannot distinguish and sold by us DIRECTLY to you. Our durable outdoors for about a year rooting products provide growers with them from original materials. Stock mission is to provide with the Best with minimal fading. Software, Print- faster rooting and optimal conditions designs range from traditional to con- Quality, Pricing and Customer Service. ers, Print Media & Supplies. for more rigorous young plant growth. temporary. Booth 3035 Booth 3043 Booth 3047 Booth 4416 AAA Imports Dongjin Plastics Chrysal USA Atchison Exotics Inc. Apopka, FL Co. Ltd. Miami, FL Delray Beach, FL We are a manufacturer, importer and Parkton, MD Chrysal Americas is an international A "Nice Little Nurs- distributor of a wide variety of con- Dongjin Plastics Co, Ltd. is a leading company offering a multitude of prod- ery" specializing in tainers made from a variety of materi- plastics company manufacturing fine ucts for the complete nutrition and growing Tropical als such as resin, dolomite, terra cotta, quality food packaging and horticul- care of fresh cut flowers for growers, indoor Pre-Bonsai metal, porcelain and wire. With over tural products at highly competitive wholesalers, florist and supermarkets plants. We also grow Flowering and 80,000 square feet of warehouse, we prices. We also have bio-degradable in the United States, Canada and Indoor Foliage plants. Feel free to have the inventory to support your products. Latin America. stop by anytime or visit us at needs. www.atchisonexotics.com

TPIE is the trade event that offers everything foliage, floral and tropical — all-in-one location at one time, at one place. TPIE’s trade show is more than an exhibit area — it’s 200,000 square feet of living, vibrant plants creating a virtual indoor garden of show-stopper displays. Educational seminars are a popular part of the annual event. With more than 500 exhibiting companies, TPIE offers wholesale buyers the widest array of resources for foliage and tropical plants in the country.

106 DECEMBER 2009 • PRODUCE BUSINESS You work hard... Your advertising should too.

Building your produce business demands the best you have to offer. Long hours. Tough decisions. Making sure you get the most for each dollar. Reaching for the competitive edge. All reasons why your advertising should be in PRODUCE BUSINESS. PRODUCE BUSINESS is the industry’s leading magazine reaching more purchasing decision-makers than any other produce publication. Its articles, departments and columns are unique… exploring the business of produce, presenting ways to run businesses better, and searching out new business opportunities for its readers. Quality editorial combines with a quality environment for your advertising message. Look through the pages of this issue. Superior paper. Excellent color. A permanently bound magazine, every month. You’ve earned your business’ reputation by giving a little extra, striving to be the best. Shouldn’t the place you advertise reflect your effort? To find out more about how PRODUCE BUSINESS can make your advertising work harder for you, give us a call.

P.O. Box 810425 • Boca Raton, FL 33481-0425 561-994-1118 • Fax: 561-994-1610 www.producebusiness.com RETAIL By Dave Diver PERSPECTIVE Contract Gray Areas

he recent awarding of the Nobel Prize in Economics to to take a $20,000 loss by placing the load on the Boston terminal Oliver Williamson, a 77-year-old professor at the Berke- market. When we added up the reduced store handling cost by sell- ley campus of the University of California, shines some ing better berries, the increase in profitable sales and maintaining light on the subject of contracts so frequently a part of our reputation with our customers, any loss became insignificant, the produce business world. According to Professor another contract gray area and contingency. TWilliamson, “A contractual agreement can never be complete: there Although there had been a long-term business relationship, the are always contingencies that haven’t been accounted for. The individual’s phone number was forgotten and the buyers were other is that people act opportunistically within the gray area of always unavailable to accept incoming phone calls. This is a close contracts to make sure they benefit the most. And that can lead to similarity to the airline ticket agent, berated by a passenger going to problems. For example, in the financial crisis, many credit market London, sending his luggage to Tokyo. Long before, we had learned contracts were written without regard for the possibility that so the lesson of providing what our customers expected. A competitor many loans could fail, and then market participants further snarled had advertised an item in poor condition at a ridiculously low price. the markets by haggling over contract terms with one another.” However, our neighboring stores selling at a higher retail for better Competitive markets work relatively well product experienced increased sales while the because buyers and sellers can turn to other competitor encountered spoilage from the trading partners in case of dissent. But when Competitive lower-than-anticipated volume. market competition is limited, firms are better Unfortunately, decisions didn’t always suited for conflict resolution than markets. markets work speak well for our organization. Once, an Williamson argues, “Markets and firms should relatively well overeager buyer cancelled a previous commit- be seen as alternative governance structures ment for a high-quality sale item and substitut- that differ on how they resolve conflicts of because buyers ed end-of-season product from a different grow- interest. Repeat purchasing on the daily market and sellers can ing area, thinking the promotional retail could to meet requirements represents case-by-case turn to other be lower and more profitable. Wrong on all bargaining and is importantly different from accounts; years were required to regain our relationship-specific dealings formed over time trading partners reputation with shippers from that region of with a specific supplier.” in case of dissent. the country. Often those in the industry may have vary- Well I remember having cost ranges guaran- ing views and interpretations of what may But when market teed for a several month EDLP program, become contingencies and grey areas. My competition is including iceberg lettuce, when the market suf- belief has always been whenever one made a limited, firms are fered a precipitous decline. There was nothing commitment one honored it, regardless of the left to do but meet competitive advertised consequences. One’s word is their bond. It did better suited retails and accept the product at the previously not take long to realize that in this — as well as for conflict agreed cost. The loss was significant, but other other industries — this isn’t always the case. pricing adjustments provided balance — a good Conveniently, suppliers may find reasons not resolution lesson learned by an upper management that to ship and stories abound about receivers find- than markets. does not fully accept markets are different for ing ways to refuse product when they were fresh and packaged goods. overstocked or in the face of rapidly declining Now, a major industry concern is retailer markets either at a shipping point or on a terminal market. demands related to traceability and food safety and then potentially It wasn’t always about price declines. One memorable instance not standing behind their rhetoric and supposed commitments. was the purchase of a truckload of Florida strawberries from a bro- How prevalent this is — or will be — remains to be seen. There is ker I had known for many years. The description he had provided nothing to prevent any seller or purchaser from attempting a con- of the product and his knowledge of our requirements should have tractual modification within the supply chain. Both parties should created a sufficient understanding of what would be acceptable. recognize contingencies and grey areas prior to entering into a com- When the load arrived, the product was not what our customers mitment. Equally as important are the ethics and integrity of every- were used to purchasing. According to the government inspection, one in the supply chain while recognizing the needs of their ulti- the berries just made grade since the grade regulations provided mate consumer. Professor Williamson’s Nobel Prize winning work is sufficient tolerance to make them technically acceptable. The bro- applicable to understanding the consequences and obligations of ker and the shipper stood by the inspection. We made the decision contractual relationships. pb

108 PRODUCE BUSINESS • DECEMBER 2009 PRODUCE BUSINESS Congratulates

Nichole Towell Marketing Development Manager Duda Farm Fresh Foods,Inc. Winner of the Tip Murphy Scholarship for Leadership Excellence

PMA FOUNDATION FOR INDUSTRY TALENT Awarded by the PMA Foundation for Industry Talent (PMA FIT) “Our scholarship committee felt that Nichole’s personal statement in particular eloquently demonstrated her commitment to the industry and her passion for furthering her personal and professional development,” said PMA FIT Executive Director Cindy Seel. “She was the best of a very strong field of deserving applicants.” A graduate of California Polytechnic State University with a degree in agricultural business management, Towell has been employed in the produce industry for 11 years, nine of them spent at Duda. She said her mission throughout her career will be to give back to the produce industry through leadership and by promoting sustainable business practices industry-wide. “I am deeply honored to be selected as the 2009 recipient of the Tip Murphy Scholarship for Leadership Excellence. Mr. Murphy’s leadership qualities clearly set him apart as an industry professional, and the scholarship is truly representative of his commitment to emerging produce industry leaders,” Towell said. The Tip Murphy Scholarship for Leadership Excellence, posthumously named after industry veteran Terrence “Tip” Murphy, supports the produce industry’s emerging leaders. Unveiled in October 2008, the scholarship covers registration fees and associated hotel expenses for any PMA or PMA FIT professional development event, including Leadership Symposium, Fresh Summit International Convention and Exposition, and Foodservice Conference and Exposition. Eligible candidates must be employed in any segment of the produce supply chain at the time of application and the time of the chosen event, have been employed in the produce industry for a minimum of three years, and demonstrate character, leadership and a desire to make a meaningful contribution to the industry. The scholarship is supported by the Tip Murphy Legacy Fund, a restricted account set up and funded by friends and col- leagues of Murphy to honor his life and career. The fund and scholarship program are managed by PMA FIT, in keeping with the foundation’s mission to attract, develop and retain talent for the produce community. EUROPEAN Interview By Jennifer Leslie Kramer MARKET Freshfel: Promoting Produce In The European Union — Part I

Mr. Phillippe Binard, general delegate of Freshfel Europe, headquartered in Brussels, Belgium.

n Part I of II, PRODUCE BUSINESS examines the roll of Freshfel place in this respect with APHIS. In the identification of priorities, Europe within the continent’s produce industry, the organiza- it was agreed upon that apples and pears should be on the top of tion’s reach and new marketing initiatives. In the conclusion the agenda, given the notified interest of several Member States, of the interview, Mr. Binard discusses the organization’s posi- which, for the time being, are not allowed to export these products tion on food safety, traceability, sustainability and organics. given the lack of protocols agreed by APHIS. I Besides market access issues, much can be learned from the Q: What is the purpose of Freshfel? supply chain perspective on both sides of the Atlantic regarding A: Freshfel Europe represents the fresh fruit and vegetables industry developments. We therefore seek to cooperate with U.S. sector at the EU level. We are closely following legislative develop- industry organizations such as PMA or United Fresh. ments regarding agricultural policy, health and safety, as well as trade and environmental policies. Freshfel is a platform of discus- Q: What are some of the organization’s latest marketing sion for matters of common concerns within strategies to increase the consumption of the sector, from production down to retail. All fresh produce throughout Europe? of our activities are ultimately dedicated to fos- A: Freshfel looks at this issue of consump- ter and stimulate the consumption of fresh Besides market tion from several angles: We support the produce by providing an environment for the access issues, much development of a Pan-European school fruit sector that stimulates the consumption of fresh can be learned scheme for the distribution of fresh produce fruit and vegetables, which itself remains in to schoolchildren. We also follow closely and most of the EU Member States under the World from the supply influence the EU promotional funds for agri- Health Organization’s (WHO) recommenda- chain perspective cultural products. Moreover, we consider tions. on both sides of actions that could be undertaken within the framework of the EU Platform for Action on Q: What is the mixture of Freshfel’s the Atlantic Diet, Physical Activity and Health to prevent board of directors in terms of business regarding industry obesity and closely monitor the impact of the classifications (retailers, wholesalers, new legislation regarding nutrition and processors, packers, shippers, etc.)? developments. health claims. We also follow other policy A: The Freshfel Board adequately reflects issues that could have an influence on con- the various segments of the business from pro- sumption such as quality or food safety ducer groups down to retailers as well as representatives from the issues. Furthermore, we discuss Best Practices based on experi- various trade segments, such as wholesalers, shippers, exporters ences from our members in undertaking promotional activities. and importers. The Board tries to have an adequate balance in Finally, we look at new segments and at hurdles for fresh fruit view of the main markets and to benefit from the experience of and vegetables to penetrate markets such as the various foodser- the oldest generations together with the input of the youngest. As vice segments. Freshfel is a participative organization, all meetings are open to all the members or associated members. Q: What is the purpose of the Citrus Working Group and is there much discussion about U.S.-grown citrus? Q: Does the organization’s reach extend to dealing with A: The objective of the group is to set up a global discussion produce imported from the United States? platform for the citrus community. The platform is global in A: Most of the discussions are not origin-specific, but cover terms of sourcing, markets and stakeholders. The primary objec- instead matters of common concerns for the whole product and tive is to improve transparency by facilitating collective data shar- industry segment with a supply chain perspective. However, busi- ing. This information is made available largely for the benefit of ness with and from the United States is quite relevant. The United the industry and to improve transparency. The focus is obviously States exports several fruit categories to the EU such as grapefruit, on the Mediterranean basin production and the United States for apples, pears and cherries. On the other hand, the EU exports the Northern Hemisphere. The group is also widely supported by some citrus and specialty vegetables, among others. But some countries of the Southern Hemisphere. Besides exchange of infor- efforts still need to be undertaken to open new markets, such as mation, the group could also discuss other matters relating to those as for apples and pears. Currently, discussions are taking plant health, marketing and promotion. pb

110 PRODUCE BUSINESS • DECEMBER 2009 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. VOICE OF By Jennifer Armen-Bolen THE INDUSTRY Let Variety Be Your Guide t’s a challenging time for retailers, with light at the end of the sive supply access due to limited availability. Set yourself apart as tunnel of the recession, but a long way to go before consumers someone who is willing to invest in the consumer experience. resume easy spending. In an effort to reduce prices and keep customers, too many GETTING STARTED produce departments have adopted similar strategies and now Just like many retailers make it a point to visit their produce Ilook all too similar. vendors and growers to maintain strong relationships, it is now time SKU rationalization and simplification of the consumer shopping to extend that practice back to the source of the plant material. experience can be the foundation of sound retail practices as long Learn what the possibilities are with those who invest in the devel- as retailers focus first on the full consumer experience, from shop- opment of proprietary varieties. Know what’s coming along and ping and cooking to serving and eating. how quickly. Participate in the process and make sure your Differentiation offers a way for consumers to perceive a unique knowledge of the consumer and the needs of the supply chain identity and, over time, a clear preference for both figure into the objectives of the product’s one produce department over another. The pro- attribute development. duce industry is just beginning to understand Gaining a practical science-based understand- and take advantage of what seed genetics can The produce ing of what and how to bring to the consumer bring to the table — a range of textures, rich- industry is just the eating experience they seek is what all mem- er colors, desirable flavor profiles and nutri- beginning to bers of the retailer/grower/plant source team tional improvement for a better consumer gain through collaboration. It is a fundamental eating experience — with varieties of fresh understand and step in the process of development. familiar fruits and vegetables that are new or take advantage newly rediscovered. AVOID THE Having been deeply involved with the of what seed COMMODITY TRAP development of seed varieties and responsible genetics can Obviously, not every product in the pro- for bringing them profitably to consumer and bring to the table duce department can or should be a unique, foodservice markets throughout my career, I identifiable variety. It’s equally clear that the am convinced that retail companies have every with varieties of very best tomato or apple varieties available reason to collaborate closely with vegetable familiar fresh must be marketed and presented to the con- seed companies and incorporate variety differ- sumer as something different from just a toma- entiation as a merchandising strategy. Howev- fruits and to or an apple in order to reach its fullest eco- er, this does not necessarily mean more prod- vegetables that nomic potential. ucts for consumers; it means better products are new or newly Opportunities for retailers exist to begin that please customers so they keep coming right now, partnering with seed companies and back for more. rediscovered. growers to provide consumer exposure and Over the last decade, the seed industry and marketing support at store level. Some compa- vine and tree nurseries have invested heavily nies are already tackling these projects. Exper- to better understand the inherent attributes of their varieties, pay- tise in bringing new or improved varieties to market is available. ing more attention both analytically and experientially to the char- A full commitment to better consumer eating experience is a acteristics important to consumers: taste, texture, aroma, color and culture that permeates the entire supply chain. It’s a very long-term the ability to pick and use products at optimum levels of ripeness proposition, accepted as the product of years. But, why should we and maturity. They have discovered the commercial opportunity not strive for every product in our arsenal to be something that the residing in their breeding material, that properly developed, grown, consumer truly wants to eat? By working together from the seed to handled and marketed can get products to market more effectively. the consumer, we can deliver a winning proposition to our industry Look at the recent successes in the vegetable world of colored and our customer. pb carrots, specialty lettuces, the range of tomato varieties, sweet onions and fingerling and colored potatoes. Proprietary varieties of Jennifer Armen-Bolen, a 25-year veteran of the vegetable seed and crop grapes, unique varieties of citrus and apples and hybrid tree fruit all protection industry, recently began operating as an independent consul- offer retailers ways to stand out in the mind of the consumer. Cer- tant based in Sammamish, WA. Instrumental in downstream marketing tainly some of these successes were created with the consumer eat- initiatives with Syngenta’s Dulcinea Farms and Nunhem’s vegetable ing experience in mind, but there is more we can do. Be involved seed companies, she specializes in strategic business development and early in the development process and take advantage of the exclu- downstream marketing. She can be reached at [email protected].

112 PRODUCE BUSINESS • DECEMBER 2009 Got Produce? Increasing Consumption One Item At A Time: In Search Of Product Innovations Excerpted from Jim Prevor's Perishable Pundit, November 20, 2009

ll the time and attention paid to the pro- establishments. Yet we never once purchased When you have wide- posal to introduce a generic promotion them to cook at home. Now this quick and con- ly diversified prod- A board to the fresh produce industry venient package has caused us to easily ucts that have widely won’t be wasted if it leads to a new focus on increase ten-fold the quantity of Brussels varying margins, uni- increasing consumption. Sprouts we consume in a year. form promotional efforts In our piece, Got Produce? Next Move Is To Of course, not all packaging and processing are difficult to pull off and Push For School Salad Bars, we pointed to a boosts consumption. Sometimes it can have may not make much policy approach, in this case spearheaded by the opposite effect. sense. United Fresh, to increase consumption by get- Publix sells bowls of fresh-cut melon, typi- However, efforts such as ting a salad bar in every school. cally cantaloupe, honeydew and watermelon. those we have recorded Private companies, though, play an impor- Now it is always difficult to select a sweet whole here — to market a sweet tant role in increasing consumption, and so melon from the shelves and, doubtless, this mini pepper snack pack, here at the Pundit, we thought we would men- inability to ensure a tasty experience each and a fresh-cut mango, a tion three examples of products that have every time depresses melon sales. Still, as a microwaveable package of helped us boost consumption and also raise sealed product of nature, we tend to cut our Brussels Sprouts and, perhaps, to find a way to concerns with another type of presentation that local supermarket some slack. communicate to consumers the sweetness of has the potential to depress consumption. However, when we buy the fresh-cut honey- the melon chunks — all point to how wildly During late hours producing this Pundit, we dew, for example, and it is sweet one day and divergent efforts can all boost consumption. snack more than we should. But instead of tasteless the next, we suspect consumers tend Now we didn’t do a study of consumption- pretzels, we now keep a package of sweet mini to blame the store. After all, this product was boosting products, and we are sure that there peppers shipped by Bionova Produce under cut open, it could have been tested for brix lev- are many more out there. It is also probable the Masters Touch label — or, as the label also els or tasted by a melon El Exigente. It seems to that others around the country are producing says, presumably with Quebec in mind, Doux us that a strong argument can be made that similar products to some of those we highlight- Sur la Plante Piments Miniatures. every one of these fresh-cut melon bowls ed and we just happened to mention brands Perhaps other companies make a similar should consistently provide tasty fruit. and shippers whose product is being sold at product; this is the one we mostly see sold at Food manufacturers just don’t put bad tast- Publix near Pundit headquarters. both Costco and Publix near Pundit headquar- ing food in their packaging — it is not 100 per- We think that the industry role in boosting ters in Boca Raton, FL. It is a great example of cent clear that produce processors should consumption is likely to come from innovative how supply creates demand. The mere exis- either. If we sell tasteless produce, we will products and concept such as we have dis- tence of this little snack pack has more than never build up the consumer perception that cussed in this piece. doubled our weekly consumption of peppers. consumers can rely on a brand or store’s To encourage the industry in this direction the We are also big fans of mango and, though fresh-cut melon. Pundit will give out an annual prize for product cutting mangos is fine at home, in our office At the very least, if we want to keep avail- innovation that is likely to boost consumption. fridge we prefer something peeled and cut. ability year-round, but the flavor profile at cer- We think it appropriate to name this award Publix sells a fresh sliced mango product tain times won’t meet sweet standards, we after our friend, Joe Nucci, who died at age 40 under the Incredible Fresh brand. This product should, surely, advise consumers of what they as President and CEO of Mann Packing. Joe is produced by Fruit Dynamics LLC, which are getting. was on vacation at Walt Disney World with his does business as Incredible Fresh. The mango If we are going to sell products that are vari- family, the Pundit and the Pundit’s family when is neat and easy to eat. Sure, at home we might able in sweetness throughout the year, we he passed away. select a softer, juicier, riper mango than works ought to try to advise consumers of what they Joe was secretary-treasurer at PMA and on in this fresh-cut operation, but it is tasty and are getting. In the short term, this may reduce the rotation to become Chairman. He was also consistently delivers the same product, and the sales, but it would increase consumer satisfac- known as an industry innovator and as the convenience has easily caused us to double tion and that will lead to higher sales. “father” of broccoli coleslaw. mango consumption. We’ve been focused on issues of flavor for a So each year we will present the Joe We also always keep a bag of Fresh long time. At one point, we even mentioned Nucci Award for Product Innovation in Ser- Trimmed Brussels Sprouts in the office refriger- Wal-Mart by name and urged Wal-Mart to take vice of Expanding Consumption of Fresh ator. The label explains they are packaged in the lead in presenting consistently good-tasting Fruits & Vegetables to the product judged state-of-the-art, stay-fresh microbags and are produce. That was back in the Bruce Peterson to be most likely to increase consumption distributed by the Los Angeles Salad Company. days and he had the Pundit fly down to Ben- of a given item through product, packaging You cut a corner of the 8-ounce bag, put it in tonville to discuss it — but it was always just a and marketing innovation. 1 the microwave for 3 ⁄2 minutes and it is ready to little too problematic to implement. Entries for the 2009 award will be accepted eat. A nutritious and, to us, delicious, snack. In any case, the point here — and one we through February 1, 2010, but if you are ready, Once in a while, we order Brussels Sprouts have made before — is that the industry can- you can download the entry form by going to at a restaurant and, in fact, it seems that they not increase consumption in general without ProduceBusiness.com and clicking on the icon are a hot item right now in trendy foodservice increasing consumption of particular items. depicted on this page.

DECEMBER 2009 • PRODUCE BUSINESS 113 here’s no denying it: Walla Walla onions are an old favorite and this 1983 Ten- nessee newspaper ad brings the point Blast home. Kathy Fry, director of marketing from the T for the Walla Walla Sweet Onion Market- ing Committee, based in Walla Walla, WA, keeps the cute and comical ad framed and mounted on her office wall. “It’s so adorable,” she says, “and it’s fun to turn the Past clock back for a moment. Plus, it’s interesting to me that Walla Wallas were so well known in Tennessee!” Ads such as these — with talking cartoon characters — are a thing of the past. “It’s really a sign of those times,” maintains Fry. “It has some nostalgia to it, and right now, that’s what people need. People want to look back and remember the good times. Whenever I have visitors they always mention it. They notice those prices immediately, but then I remind them the ad is more than 25-years-old.” Fry reminds us that in today’s market, consumers are paying more than a dollar-a- pound, which makes the ad even more shocking. While prices have changed, one thing remains the same within the advertising technique — the use of serving sugges- tion at the bottom of the ad. Pricing increases or not, consumers want education and cooking tips and techniques. The Blast from the Past is a regular feature of PRODUCE BUSINESS. 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]

INFORMATION Receive supplier information fast using the Produce Business Information Showcase. Here’s How: 1) Please go to www.PRODUCEBUSINESS.com and click on The Electronic Rapid Response Card and enter the Reader SHOWCASE Service numbers that correspond to the ad and the information showcase. 2) Contact the advertiser directly via the Web site, e-mail, phone or fax listed in the ad. DECEMBER 2009 COMPANY PAGE # RS# PHONE FAX COMPANY PAGE # RS# PHONE FAX

Agrexco USA, Ltd...... 26...... 73 ...... 718-481-8700 ...... 718-481-8710 Keystone Fruit Marketing, Inc...... 25...... 78 ...... 717-597-2112 ...... 717-597-4096 APEAM (Avocado Producers & Layer Saver, LLC ...... 73 ...... 54 ...... 630-272-8250 ...... 866-597-7278 Exporting Packers of Michoacan) ...... 29...... 19 LGS Specialty Sales, Ltd...... 35...... 1 ...... 800-796-2349 ...... 718-542-2354 Apio, Inc...... 24...... 24 ...... 800-454-1355 ...... 805-343-6295 LGS Specialty Sales, Ltd...... 82...... 2 ...... 800-796-2349 ...... 718-542-2354 Arctic-Temp ...... 76...... 61 ...... 800-362-3243 ...... 407-834-3359 Lisa Inc...... 36...... 7 ...... 520-281-1863 ...... 520-281-2848 Baero North America, Inc...... 103 ...... 81 ...... 314-692-2270 ...... 314-991-2640 M&M s, Inc...... 26 ...... 15 ...... 800-634-7898 ...... 305-233-0813 Blue Book Services...... 98 ...... 29 ...... 630-668-3500 ...... 630-668-0303 Mann Packing Company, Inc...... 9 ...... 8 ...... 800-884-6266 ...... 831-422-5171 J. Bonafede Co., Inc...... 88 ...... 46 ...... 617-884-3131 ...... 617-889-2929 Mann Packing Company, Inc...... 56-57 ...... 9 ...... 800-884-6266 ...... 831-422-5171 Bushwick Commission Co., Inc...... 50...... 74 ...... 800-645-9470 ...... 516-249-6047 Miatech...... 40...... 14 ...... 800-339-5234 ...... 503-659-2204 C&D Fruit & Vegetable Co., Inc...... 45 ...... 75 ...... 800-899-9175 ...... 941-747-8895 MIXTEC Group ...... 100 ...... 45 ...... 626-440-7077 ...... 626-440-1557 Cal-Harvest ...... 52-53 ...... 41 ...... 559-582-4000 ...... 559-582-0683 Mutual Produce Corporation ...... 86 ...... 64 ...... 617-889-0035 ...... 617-884-2544 Calixtro Distributing ...... 36 ...... 62 ...... 520-281-3432 ...... 520-281-3438 Mutual Produce Corporation ...... 94 ...... 617-889-0035 ...... 617-884-2544 Capital City Fruit Co., Inc...... 80 ...... 35 ...... 515-981-5111 ...... 515-981-4564 New York Apple Association, Inc...... 58-59 ...... 56 ...... 585-924-2171 ...... 585-924-1629 John Cerasuolo Co., Inc...... 90 ...... 47 ...... 800-875-8286 ...... 617-884-8272 Nokota Packers, Inc...... 49 ...... 4 ...... 701-847-2200 ...... 701-847-2109 Chantler Packaging Inc...... 76 ...... 76 ...... 800-565-5245 ...... 905-274-9522 Northern Plains Potato Chilean Avocado Importers Association ...... 17 ...... 38 ...... 202-626-0560 Growers Assn...... 19 ...... 39 ...... 218-773-3633 ...... 218-773-6227 Coast To Coast Produce Co...... 84...... 48 ...... 877-836-6295 ...... 617-381-0067 Ocean Mist Farms...... 60-61 ...... 37 ...... 831-633-2492 ...... 831-633-4363 Community Suffolk, Inc...... 91...... 49 ...... 617-389-5200 ...... 617-389-6680 Pandol Brothers, Inc...... 71...... 12 ...... 661-725-3145 ...... 661-725-4741 Cooseman’s Boston, Inc...... 86 ...... 77 ...... 617-887-2117 ...... 617-887-2579 Produce for Better Health Foundation ...... 66 ...... 28 ...... 302-235-2329 ...... 302-235-5555 D’Arrigo Bros. Co. of New York ...... 5 ...... 82 ...... 800-223-8080 ...... 718-960-0544 Produce Pro Software ...... 40 ...... 31 ...... 630-395-0535 ...... 630-572-0390 Dole Fresh Fruit Company ...... 2 ...... 30 ...... 818-879-6600 ...... 818-879-6628 Red Blossom Farms, Inc...... 62-63 ...... 17 ...... 805-981-1839 ...... 805-693-0032 Dole Fresh Vegetable Co...... 54-55 ...... 32 ...... 800-333-5454 ...... 831-754-5243 Rene Produce Distributors, Inc...... 34 ...... 43 ...... 520-281-9206 ...... 520-281-2933 dProduce Man Software...... 97...... 33 ...... 888-PRODMAN ...... 650-712-9973 Ruma Fruit & Produce Co., Inc...... 90...... 57 ...... 800-252-8282 ...... 617-387-7894 Duda Farm Fresh Foods, Inc...... 79 ...... 25 ...... 561-978-5714 ...... 561-978-5705 Arthur G. Silk, Inc...... 89 ...... 79 ...... 617-884-1370 ...... 617-884-7693 Duda Farm Fresh Foods, Inc...... 82 ...... 22 ...... 561-978-5714 ...... 561-978-5705 State Garden, Inc./Olivia’s ...... 92 ...... 58 ...... 617-884-1816 ...... 617-884-4919 East Coast Brokers & Packers, Inc...... 115...... 16 ...... 800-557-7751 ...... 863-869-9850 S. Strock & Co., Inc...... 87...... 59 ...... 617-884-0263 ...... 617-884-7310 Eastern Propak, LLC...... 82 ...... 3 ...... 856-881-3553 ...... 856-243-0154 Sun World International ...... 82 ...... 23 ...... 760-398-9430 ...... 760-398-9613 Eaton & Eustis Co...... 91 ...... 50 ...... 617-884-0298 ...... 617-884-2611 Sunlight Int’l. Sales ...... 69 ...... 18 ...... 661-792-6360 ...... 661-792-6529 Edinburg Citrus Association...... 40 ...... 42 ...... 956-381-8520 ...... 956-383-2435 SunnyRidge Farm, Inc...... 44 ...... 60 ...... 800-725-8856 ...... 863-299-7794 Farmer’s Best ...... 31...... 40 ...... 520-281-1411 ...... 520-281-4163 Tanimura & Antle, Inc...... 20...... 36 ...... 800-772-4542 ...... 831-455-3915 Fisher Capesapn...... 20...... 20 ...... 800-388-3074 ...... 514-737-3676 Tepeyac Produce, Inc...... 36...... 80 ...... 520-281-9081 ...... 520-281-9732 Fisher Capespan...... 71 ...... 51 ...... 800-388-3074 ...... 514-737-3676 Trinity Fruit Sales ...... 7 ...... 5 ...... 559-433-3777 ...... 559-433-3790 Frank’s Distributing Co...... 33 ...... 52 ...... 520-761-1578 ...... 520-281-2425 Turbana Banana Corp ...... 64-65 ...... 34 ...... 800-TURBANA ...... 305-443-8908 Garden Fresh Salad Co., Inc...... 85 ...... 63 ...... 617-889-1580 ...... 617-889-3035 Virginia-Carolina Peanut Promotions...... 100 ...... 26 ...... 252-459-9977 ...... 252-459-7396 Grower Alliance, LLC ...... 34 ...... 53 ...... 520-761-1921 ...... 520-377-9189 Vision Import Group...... 82 ...... 21 ...... 201-968-1190 ...... 201-968-1192 Idaho Potato Commission ...... 47 ...... 44 ...... 208-334-2350 ...... 208-334-2274 Well-Pict Berries...... 116 ...... 83 ...... 831-722-3871 ...... 831-722-6340 Jem D International ...... 32...... 6 ...... 519-733-3663 ...... 519-733-9970 Wishnatzki Farms...... 43 ...... 65 ...... 813-752-5111 ...... 813-752-9472

114 PRODUCE BUSINESS • DECEMBER 2009 Reader Service # 16 Reader Service # 83