WWW.PRODUCEBUSINESS.COM APRIL 2017 • VOL. 33 • NO. 04 $9.90 APRIL 2017
AN INDEPENDENT STREA Probing the Distributor-Chef Relationship
INSIDE
HEALTHY HOME MARKET • CANADIAN RETAIL STORIES • PALLETS MUSHROOM MARKETING • SOUTHERN FRUIT • GUACAMOLE • GRAPES AUSTRALIAN/NEW ZEALAND FRUITS • TOMATOES • SWEET ONIONS FRESH-CUT PACKAGING • REGIONAL MARKET: MILWAUKEE • NUTS Dole F-P.indd 1 3/23/17 9:41 AM APRIL 2017 • VOL. 33 • NO. 04 • $9.90 special features features 18FROM THE PAGES OF THE 30DECODING CANADA’S PERISHABLEPUNDIT.COM PRODUCE SUCCESS AT RETAIL Swedish Supermarket Should Be Ashamed A competitive environment challenges As Its ‘Organic Study’ Won’t Pass Scientic retailers to excel in the basics, tailor Scrutiny And It Disparages Conventional business to customers and innovate. Produce Without Cause
35PALLETS: A QUESTION OF 20ASCENDENT INDEPENDENTS: SUSTAINABILITY HEALTHY HOME MARKET Reduce, reuse and recycle is the mantra. e North Carolina-based natural foods retailer enters produce, grocery arena. ‘MUSHROOMING’38 RETAIL SALES 80 Fungi pack valuable nutrients, cover story MILWAUKEE deliver health benets and versatility. REGIONAL MARKET PROFILE: 22AN INDEPENDENT STREAK TRADITIONAL TOWN e distributor-chef relationship MEETS 21ST CENTURY 44A TASTE OF THE SOUTH drives produce on restaurant plates. Distribution centers and ethnic e benets of marketing its delicious fruit. markets serve an evolving metropolis.
50FRESH GUACAMOLE ELIMINATES GUESSWORK commentary Convenience, health attributes 14 THE FRUITS OF THOUGHT helping to drive sales, consumption. Déjà vu Retailing departments On A Dierent Scale MERCHANDISING REVIEW 55 63 THE TOMATO EVOLUTION SPRING GRAPE DEAL EXPECTED TO OFFER SUPERIOR PRODUCT 86 RETAIL PERSPECTIVE For 20 years the category has grown Tech Versus Networking with state-of-the-art ideas from seed to Initial reports indicate weather has been perfect store — innovating new varieties while for growing grapes in Mexico and California. 87 WHOLESALE MARKET maintaining popularity of the originals. Controlling e Controllable 59 69 SWEET ONIONS’ AUSTRALIA/NEW ZEALAND: 88 EUROPEAN MARKET SMELL OF SUCCESS MORE THAN JUST APPLES AND ORANGES Where Next For British ere is plenty of opportunity for Expanding varietal and product innovation Produce Post-Brexit? increased movement and sales. Recognize amplies opportunity. the importance of the category, promote 89 PRODUCE ON THE MENU correctly and watch sales soar. Healthy Eating In Restaurants: Barriers And Opportunities FRESHCUT MARKET FRESHCUT PACKAGING: 76 in thisQUIZ issue NOW AND IN THE FUTURE 4 What do executives need to know? What 6 WASHINGTON GRAPEVINE should they look for in the coming years? 8 PRODUCE WATCH DRIED FRUITS & NUTS 12 FORWARD THINKING THE SKINNY ON NUTS 84 RESEARCH PERSPECTIVES Good for you, good 16 for produce sales. 17 COMMENTS AND ANALYSIS 90 BLAST FROM THE PAST 55 90 INFORMATION SHOWCASE Change Service requested: POSTMASTER: Send address changes to PRODUCE BUSINESS, P.O. Box 810425, Boca Raton, FL 33481-0425. PRODUCE BUSINESS (ISSN 0886-5663) is published monthly for $58.40 per year by Phoenix Media Network, Inc., P.O. Box 810425, Boca Raton, FL 33481-0425
PRODUCE BUSINESS / APRIL 2017 / 3
TOC.indd 1 3/31/17 12:00 PM produce quiz
THIS MONTH’S WINNER JERRY WEINMEISTER Owner APRIL 2017 • VOL. 33 • NO. 04 • $9.90 Al’s Food Market Castro Valley, CA P.O. Box 810425 • Boca Raton • FL 33481-0425 Phone: 561-994-1118 • Fax: 561-994-1610 [email protected]
PRESIDENT & EDITOR-IN-CHIEF James E. Prevor Jerry Weinmeister has been in the community grocer with a very diverse mix [email protected]
grocery/produce business for 46 years. of customers, located in Castro Valley, CA. PUBLISHER/EDITORIAL DIRECTOR His career started with Lucky Stores, where Weinmeister has been reading PRODUCE Ken Whitacre [email protected] he worked for 19 years. Weinmeister was BUSINESS for the past 20 years. He enjoys initially hired as a bagger and worked his the advertisements, “Blast from the Past” VP EDITORIAL Ellen Koteff way up in both the produce and grocery and the retail-focused articles. “The articles [email protected] departments, eventually being promoted help keep me up-to-date with the trends SPECIAL PROJECTS EDITOR to assistant manager. and new items available. They also help Mira Slott In January 1990, Weinmeister ventured with new ideas and have me rethinking old [email protected]
out on his own, buying Al’s Food Market, a ideas,” he says. PRODUCTION DIRECTOR Diana Levine [email protected]
How To Win! To win the PRODUCE BUSINESS Quiz, the first thing you have to do is enter. The rules are PRODUCTION LEADER simple: Read through the articles and advertisements in this issue to find the answers. Fill in the Jackie Tucker blanks corresponding to the questions below, and either cut along the dotted line or photocopy the page, and send your answers along with a business card or company letterhead to the address PRODUCTION DEPARTMENT listed on the coupon. The winner will be chosen by drawing from the responses received before the Sunshine Gorman Freddy Pulido publication of our June 2017 issue of PRODUCE BUSINESS. The winner must agree to submit a color photo Christopher Sizemore to be published in that issue. EVENT COORDINATOR Jackie LoMonte [email protected] WIN BEST MICRO-CUT SHREDDER This commercial shredder chews through 14 sheets of paper at CONTRIBUTING WRITERS Chris Auman, Carol Bareuther, one time and completely destroys CDs and credit cards. With Mindy Hermann, Bob Johnson, an 8 ½-gallon bin, the shredder pulls out from the cabinet for K.D. Loria, Sophia McDonald, Jodean Robbins, Barry Sparks easy emptying. Rolls smoothly on four hooded casters. Has auto start/stop and reverse. ADVERTISING Eric Nieman, Associate Publisher [email protected]
Linda Bloomfield Linda.Bloomfi[email protected]
Katelyn Grace QUESTIONS FOR THE APRIL ISSUE [email protected] Steve Jacobs 1) When is the United FreshMKT [email protected] ______Sandy Lee [email protected] 2) Which company “turns browsers into buyers”? ______Mayme Mesa [email protected] 3) What trend has emerged from the demand of grab-and-go eating patterns among consumers? Ellen Rosenthal [email protected] ______Carolyn Silberman 4) Where is Healthy Home Market [email protected]
FLORAL DEPARTMENT MARKETING ______E. Shaunn Alderman 5) How many times per week do Canadians shop for produce? [email protected] Send insertion orders, payments, press releases, ______photos, letters to the editor, etc., to Produce Business, P.O. Box 810425 6) Which advertiser says it is “Indiana’s largest tomato repackers”? ______Boca Raton, FL 33481-0425 PH: 561.994.1118 FAX: 561.994.1610 ______Produce Business is published by Phoenix Media Network, Inc. James E. Prevor, Chairman of the Board This issue was: Personally addressed to me Addressed to someone else P.O. Box 810425, Boca Raton, FL 33481-0425. Entire contents © Copyright 2017 Name______Position______Phoenix Media Network, Inc. All rights reserved. Printed in the U.S.A. Company______Publication Agreement No. 40047928 Address______City______State______ZIP______Phone______Email______Photocopies of this form are acceptable. Please send answers to: APRIL QUIZ PRODUCE BUSINESS • P.O. Box 810425 • Boca Raton, FL 33481-0425
4 / APRIL 2017 / PRODUCE BUSINESS Wonderfull Citrus.indd 1 3/16/17 4:37 PM Focus On e Bill
BY JULIE MANES, DIRECTOR OF GOVERNMENT RELATIONS, UNITED FRESH PRODUCE ASSOCIATION
o say things have changed recent- that incorporated language devoted to the Committees have begun to hold hearings ly in Washington, D.C., is an un- needs of our industry. on various aspects of the bill and solic- derstatement. With the changes More specifically, in that Farm Bill iting stakeholder input. That’s why it was in administration and Congress, and successive Farm Bills, Congress has significant the House Agriculture Subcom- those who seek to affect federal shown its recognition for the importance mittee on Biotechnology, Horticulture and Tpolicy regarding agriculture are facing new of the fresh produce industry and other Research invited two members of United challenges and opportunities. While there specialty crops by passing legislation that Fresh to testify recently on the needs of has been a great deal of adjustment going incorporates our industry’s key priorities specialty crops in the bill. On March 9, on in the policymaking arena, some things of block grants to enhance competitive- 2017, in written and oral testimony, James remain the same. One thing that’s stayed ness, research, pest and disease miti- Field with Frey Farms of Keenes, IL, the constant is the need to review and update gation, trade and nutrition programs for nation’s largest pumpkin producer, and America’s policies regarding agriculture America’s schoolchildren. The Alliance has Charles Wingard with Walter P. Rawl and production and nutrition programs. These been able to maintain momentum from Sons of Pelion, SC, which sells southern policies, known collectively as the Farm Bill, that initial success so that the 2014 Farm leafy greens throughout the eastern United were last updated in 2014 and are set to Bill contained: States, addressed the need for Congress expire in 2018. At a time when the policy • $85 million for the Specialty Crop to maintain and protect specialty crop outlook for the fresh produce industry con- Block Grant Program programs in the Farm Bill. More specifi- tains some serious hurdles, the Farm Bill • $80 million for the Specialty Crop cally, Field and Wingard highlighted how is an example of tremendous opportunity Research Initiative the industry needs specialty crop programs — one where we have a solid foundation • $75 million for pest and disease miti- to keep export and import markets open of success on which to build. gation and fair, conduct research on devastating First, the produce successes in the • $150 million for the Fresh Fruit and crop diseases such as citrus greening, Farm Bill: starting with the 2002 Farm Bill, Vegetable Program block grants to educate growers about United Fresh was able to bring together the • $200 million for the Market Access food safety best practices, and to ensure various factions of the specialty crop sector Program to open up foreign markets America’s neediest schoolchildren get the to form the Specialty Crop Farm Bill Alli- • $9 million for the Technical Assistance exposure to nutritious fresh fruits and vege- ance, a coalition of organizations around for Specialty Crops Program to address tables they would not otherwise get. The the country dedicated to advocating for non-tariff barriers to trade for specialty men spoke effectively about what these federal policies that better enable specialty crops programs mean to the sector and to the crop providers to be successful in ensuring The fact Congress accepted nearly word nation at large. They both also addressed a Americans have access to an abundant for word the policy recommendations of perhaps even more pressing specialty crop supply of fresh fruits and vegetables. the Alliance shows our sector has a great priority: the need for immigration reform to Prior to 2002, the Farm Bill did not deal of support among policymakers on a ensure an adequate agriculture labor force. contain a cohesive section dedicated to bipartisan basis — a much too-rare occur- The timing for actual debate and legis- specialty crops. Providers in that sector rence in Washington these days. This level lative activity on the Farm Bill is still up in saw a need to identify policy changes that of support gives us tremendous opportu- the air, but the leadership of the agricul- would enhance the competitiveness of nity for advancing fresh produce industry ture committees has indicated they want specialty crops and through the bill, saw needs in the upcoming Farm Bill on which to get started sooner rather than later. The an opportunity to turn those priorities into Congress has begun to work and get ready Alliance has begun the work of reviewing policies. With United Fresh serving as the for debate and reauthorization. current policies and developing new recom- coordinating body, the Alliance achieved As part of their preparations for reautho- mendations. its goal of having Congress pass a Farm Bill rization, the House and Senate Agriculture
6 / APRIL 2017 / PRODUCE BUSINESS PMA Growing.indd 1 3/16/17 4:34 PM produce watch
TRANSITION TRANSITION TRANSITION FLORIDA TOMATO COMMITTEE CALIFORNIA GIANT CRYSTAL VALLEY FOODS Michael Schadler was named deputy manager of the Watsonville, CA-based California Giant Berry Farms Crystal Valley Foods, Miami, has appointed Katiana Florida Tomato Committee and senior vice president has named Tom Smith to the newly created position Valdes marketing director. of the Florida Tomato Exchange and the Florida of director of foodservice. In her new role, Valdes will Tomato Growers Exchange, all located in Maitland, Smith brings more than be responsible for devel- FL. Schadler was 10 years of experience in oping and implementing director of interna- produce, specifically the the company’s marketing, tional marketing for foodservice segment, and branding, social media and the Florida Depart- will build a team within the public relations programs. ment of Citrus in sales office to serve the She will also support sales Bartow, FL, from foodservice sales channel. efforts by developing promo- 2013-2016. Previ- tional programs tied into ously, he worked at both the foodservice and the Seattle-based retail categories. Bryant Christie Inc., consulting firm TRANSITION where he managed U.S. Department of STEMILT GROWERS Agriculture Market Stemilt Growers, Wenatchee, WA, has named Katie Harmon marketing Access Program-funded citrus, tomatoes and hops communications coordinator. In her new role, Harmon will contribute content programs. Schadler worked closely with the Florida to Stemilt’s various communication channels and manage social media and California tomato industries. His work will channels and tradeshows. primarily involve government policy and industry relations. ANNOUNCEMENT
ANNOUNCEMENT NEWSTAR FRESH FOODS EXTENDS LINE OF “PICK ME” ANNOUNCEMENT PRODUCTS DEL MONTE FRESH NewStar Fresh Foods, a LAUNCHES NOODLE LINE Salinas, CA-based shipper of iceless green onions, Del Monte Fresh Produce, Coral Gables, FL, has has introduced a new line of culinary herbs under launched its new Del Monte Vegetable Noodle the “Pick Me” brand. The “Pick Me” line of products product line. The noodles are available in six includes a variety of herbs packed in clamshells that healthy blends, including zucchini, butternut include clear, easy-to-follow preparation instruc- squash, sweet potato, beet, yellow squash and tions. carrot. The noodles are pre-cut and ready to add to salads, sauté or boil. Found in the refrigerated ANNOUNCEMENT Front row, left to right: Josh Mattek, Eric Schroeder, Mark produce section, the noodles are 100 MANN PACKING OFFERS Finnessy, Gary Wysocki and Ron Krueger (inset). Back row, left percent fresh and preserva- to right: Andy Wallendal, Steve Diercks, Rod Gumz and Wes tive free, and come NEW KALE BEET BLEND Meddaugh. In keeping with the trend for conveniently healthy food options, Salinas, packaged and WPVGA BOARD NAMED CA-based Mann Packing’s new ready to cook The Wisconsin Potato & Vegetable Growers Kale Beet Blend offers a colorful or serve. Association (WPVGA), Antigo, WI, has elected Eric twist on two of the line’s top Schroeder of Schroeder Brothers Farms Inc., Antigo, sellers: Power Blend and Broc- WI, president of its board of directors for 2017. coli Cole Slaw. A combination Josh Mattek of J.W. Mattek & Sons Inc., Deerbrook, ANNOUNCEMENT of kale, golden beets, kohlrabi WI, was elected vice president; Gary Wysocki, RPE BLUEBERRY COOPERATIVE MBG and red cabbage, the product Inc., Bancroft, WI, was re-elected secretary; and MARKETING GOES GLOBAL can be served on its own or incorporated into Wes Meddaugh, Heartland Farms Inc., Hancock, salads, smoothies and other meals. The blend WI, was elected treasurer. In addition to the four is made from fresh vegetables; it is gluten free, board officers, the remainder of the WPVGA board non-GMO and all natural. of directors includes: Mark Finnessy, Okray Family Farms, Plover, WI; Steve Diercks, Coloma Farms, ANNOUNCEMENT Coloma, WI; Ron Krueger, Eagle River Seed Farm, The Blueberry People, a grower-owned blueberry LLC, Eagle River, WI; Rod Gumz, Gumz Muck Farms, TANIMURA & and blackberry marketing cooperative, has taken LLC, Endeavor, WI; and Andy Wallendal, Wallendal a strategic step into the global foods market by ANTLE LAUNCHES Supply Inc., Grand Marsh, WI. establishing MB Global Foods, a new international EMPLOYEE STOCK frozen fruit and vegetable business. The organiza- OWNERSHIP PLAN tion is headed by Larry Ensfield, president and chief Salinas, CA, grower-pack- executive, Stephen Mullin and Paul Gibis. er-shipper Tanimura & Antle today has launched an Employee Stock Ownership ANNOUNCEMENT Plan (ESOP), allowing employees to become partial owners of the company. Tanimura & Antle is one CONSOLIDATED FRUIT PACKERS FURTHER INVESTS of the first grower-packer-shippers in U.S. history IN THE SOUTHERN OKANAGAN VALLEY to share company ownership with all qualified, Consolidated Fruit Packers (CFP) of Kelowna, British Columbia, domestic employees, from seed to sale. An ESOP is Canada, has finalized the acquisition of Graem Nelson Associates a retirement plan that allows qualified employees Ltd., a long-standing Okanagan cherry marketer and international to vest into a percentage of ownership of the distributor. Through this further investment in the Okanagan company. Through the new ESOP, employees can Valley, CFP bolsters its acreage in cherry production, further earn stock ownership in Tanimura & Antle. strengthening its position in Canadian fruit.
Produce & Floral Watch are regular features of PRODUCE BUSINESS. Please send information on new products, personnel changes, industry, corporate and personal milestones and available literature, along with a high resolution image to: Managing Editor, PRODUCE BUSINESS, P.O. Box 810425, Boca Raton, FL 33481-0425 or email us at [email protected]
8 / APRIL 2017 / PRODUCE BUSINESS ANNOUNCEMENT ANNOUNCEMENT ANNOUNCEMENT MARKET FRESH INVESTS SCHOLARSHIPS AVAILABLE FOR IN SCOTT STREET TOMATO HOUSE LEADERSHIP CONFERENCE Nixa, MO-based Market Fresh Produce has made a The Tyler Phipps Memorial Scholarship Fund is capital investment in Scott Street Tomato House, accepting applications for a scholarship to attend Memphis, TN. Scott Street will become the strategic the 2017 PMA Executive Leadership Symposium May supply partner for the Midwestern region, taking 16-17, 2017, in Dallas. The conference offers industry the strategic alliance between the two companies executives an opportunity to network and think from vendor partner to capital investment partner, strategically about global trends and innovations to and allowing both companies to combine resources help improve the performance of their companies. and improve logistics to more effectively serve its This is the second year the Tyler Phipps Memorial RÄ NANOSHOOTS GETS PICKED UP Sacramento-based Rä Foods’ Rä Nanoshoots customer base. Scott Street has been a selected Foundation will be offering the scholarship, which are now in the produce section of more than 120 co-packer of the premium Market Fresh brand for covers the registration fees. Southern California Vons stores. The company also more than 12 years. The Tyler Phipps Memorial Foundation also offers an annual scholarship of $3,500 awarded to high has distribution at Stater Brothers, Save Mart and school seniors who are intending to continue their Lucky stores. An alternative to traditional sprouts education for a career in the agriculture industry that have been plagued with food-safety problems, and a $5,000 scholarship to a wrestler at York the company’s patent-pending cold grown process College. The Tyler Phipps Memorial Foundation was results in a die-off of pathogens and eliminates established in 2015 in honor of Tyler Phipps who handling that can promote spoilage. lost his life on Sept. 26, 2015. Phipps was a member of Nixa, MO-based Market Fresh Produce. Phipps ANNOUNCEMENT attended the PMA Executive Leadership Symposium on behalf of Market Fresh in 2012. For more informa- GREEN GIANT GETS CRUMBLES PATENT ANNOUNCEMENT tion and to submit an application, visit GrowingTal- HASS AVOCADO BOARD’S NEW entbypma.org/ELS. Deadline for the scholarship is April 14, 2017; deadline for the symposium is May 5. DIGITAL AND SOCIAL MEDIA TIP SHEET The Hass Avocado Board, Mission Viejo, CA, has released its Digital and Social Green Giant Fresh, Salinas, CA, has been issued a Media Tip Sheet, U.S. patent on its Cauliflower Crumbles chopped which showcases cauliflower processing method; a Canadian patent key insights from the is pending. The company’s patented method — 2016 study Digital comprised of elements from processing to packing and Social Media — maintains the freshness of the products while Influence on Shopping ANNOUNCEMENT preventing discoloration and ensuring an optimal Behaviors. The tip sheet highlights key trends to DOMEX ORCHARD UPDATE shelf life of 16-plus days. Following the popularity help retailers optimize their marketing strategies Dave Gleason, chief horticulturist for Domex Super- of Cauliflower Crumbles, Green Giant Fresh rolled with new media to drive Hass avocado sales. fresh Growers, Yakima, WA, says the Superfresh out two new products: Cauliflower Crumbles “Fried orchards are a month behind normal bloom and six Rice” Blend and Sweet Potato & Cauliflower Crum- ANNOUNCEMENT weeks behind the previous year. The long winter bles; both are distributed nationwide. allows Superfresh Growers to pace its pruning and WPVGA HONORS LEADERS ANNOUNCEMENT The Wisconsin Potato & Vegetable Growers Asso- can also lead to a shorter spring, which is ideal for ciation (WPVGA), Antigo, WI, presented several tree fruit growing conditions. Harvesting is expected PIÑATA APPLE PERFECT industry awards at a banquet held Feb. 8, 2017, to begin late August/early September 2017. FOR CINCO DE MAYO in Stevens Point, WI. Andy Diercks of Coloma Farms, Wenatchee, WA-based Stemilt Coloma, WI, was named Volunteer of the Year. Rod Growers’ Piñata is a crisp Gumz of Gumz Muck Farms LLC, Endeavor, WI, and juicy apple with a high was named Young Grower of the Year. The WPVGA sugar and high acid flavor Researcher of the Year Award was awarded to Hor- profile that comes from a trio ticulturist Dr. Jeff Endelman, an assistant professor of heirloom apples, including in the University of Wisconsin’s department of Cox’s Orange Pippin, Duchess of Oldenburg, and the horticulture. Wayne Solinsky of Jay-Mar Inc., Plover, well-known Golden Delicious. Harvested in WI, was awarded the Associate Division Business mid-October, Stemilt has steadily expanded the Person of the Year Award. The Agri-Communicator supply and season for Piñata through June, making Award for excellence in communication and dedicat- it an ideal promotional item for Cinco de Mayo. ed service in presenting a positive message about ANNOUNCEMENT the agricultural industry was presented to Louis ANNOUNCEMENT CRUNCH PAK OFFERS Wysocki. KINGDOM FRESH LAUNCHES SOCIAL MOVIE SWEEPSTAKES Crunch Pak, a Cashmere, WA-based MEDIA CAMPAIGN provider of sliced apples, has Kingdom Fresh Farms, launched The Movie Magic Sweep- Torreon, Mexico, has stakes. By encouraging people to launched a new social enter for a chance to win movie-themed prizes, media campaign to the brand plans to support and share information promote the quality attributes of its product line of related to its snacks featuring many beloved movie round, Roma, grape tomatoes and organic grape characters and consumption of fresh fruits as movie tomatoes. The campaign includes video spots, snacks. Participants have the chance to win a year’s social media content, trade media appearances worth of free movies, deluxe gift baskets filled with and tradeshow presence. Each tomato will have a $25 Fandago gift card, a Blu-Ray and digital copy its own character describing specific and unique of a “fan favorite movie,” popcorn and vouchers for characteristics, including health, texture, sturdiness Rod Gumz Wayne Solinsky free Crunch Pak products and swag. sustainability and more.
Produce & Floral Watch are regular features of PRODUCE BUSINESS. Please send information on new products, personnel changes, industry, corporate and personal milestones and available literature, along with a high resolution image to: Managing Editor, PRODUCE BUSINESS, P.O. Box 810425, Boca Raton, FL 33481-0425 or email us at [email protected]
PRODUCE BUSINESS / APRIL 2017 / 9 CPMA CONVENTION AND TRADE SHOW WE ARE PRODUCE MAY 9 - 11, 2017 METROXXXXXXXXXXXXXXXXX TORONTO CONVENTION CENTER BOOTH #440 BOOTH #610 BOOTH #1622 BOOTH #907 BOOTH #1520 BAKO SWEET BLUE BOOK SERVICES CHANTLER PACKAGING INC. DEL MONTE FRESH DOMEX SUPERFRESH (COUNTRY SWEET PRODUCE) Carol Stream, IL Mississauga, Ontario, Canada Coral Gables, FL GROWERS Bakersfield, CA Grow sales. A leader in exible packaging and Fresh Del Monte Yakima, WA Bako Sweet is bringing the heat Manage busi- engineered solutions for interna- o ers retailers and Domex Superfresh Growers is this year with its newly designed ness risk. Blue tional produce, PrimePro reduces foodservice operators an array of a leading grower and shipper Micro Steamer Bag and Single- Book member- food wastage through shelf-life innovative solutions to address of apples, Sweet. Grown in the ship gives you extension in multiple simple- the changing tastes and lifestyle pears, cher- sweet spot of the business to-apply formats. EnduroPouch e ec- needs of today’s consumers. Our ries and apri- California, information you need! Stop by tively packages produce for retail extensive distribution network cots from these steamy and learn more about our new (e ective gauge). allows just-in-time deliveries of our the Pacific spuds will local source database and Know premium quality-fresh products to Northwest. We are The Force brighten any Your Commodity Guide. your doorstep. Behind Fresh. meal.
BOOTH #1209 BOOTH #1007 BOOTH #1120 BOOTH #1130 BOOTH #212 DRC DUDA FLORIDA TOMATO COMMITTEE THE GIUMARRA COMPANIES HOUWELING’S Ottawa, Ontario, Canada Salinas, CA Maitland, FL Los Angeles, CA TOMATOES We provide harmonized stan- Celebrating Every hand-picked The Giumarra Companies Delta, British dards, procedures, services generations Florida tomato is markets a full line of fruits and Columbia, Canada and education to avoid of innova- regulated by a Federal Marketing vegetables under the Nature’s Houweling’s Tomatoes is a greenhouse and resolve disputes in the tion, Duda Farm Fresh Foods Order comprised of the toughest Partner brand, all while o ering grower with farms in British Columbia, produce industry in a timely, will feature its full line of fresh grade, size, quality, maturity, compli- uncompromising service to California and Utah. Houweling’s grows a cost-e ective manner. Visit our produce, including celery, ance and food safety standards in the customers and growers. wide array of fresh, avorful, locally grown booth to radishes and citrus, as well as world, ensuring that Florida tomatoes tomatoes, cucumbers and peppers sustain- learn more its ever evolving fresh-cut value- are the very best eld-grown toma- ably year-round. about our added line. toes you can buy. Florida tomatoes services. — quality you can trust!
BOOTH #1523 BOOTH #509 BOOTH #1513 BOOTH #1208 BOOTH #1324 IDAHO POTATO COMMISSION LITEHOUSE INC. NATURIPE FARMS NATURESEAL INC. NATURESWEET Eagle, ID Sandpoint, ID Salinas, CA Westport, CT TOMATOES The Idaho Potato Commission Litehouse will showcase the new OPA Since 1917, our Naturipe family NatureSeal San Antonio, TX is the marketing arm Greek Yogurt Pourable Dressing of growers has been dedicated leads the The only tomatoes that guarantee for the entire Idaho line and Litehouse Organics. These to growing premium berries. This fresh produce consistent, superior taste year- potato industry. on-trend products are contributing year, we honor industry in round, NatureSweet tomatoes are The organization to some of the fastest-growing our family farms preservation technology. Our sold at major grocers, mass retailers created the well- refrigerated dressing segments. and the passion products maintain the fresh qual- and club stores in the United States, known “Grown in that goes into ities of cut produce. Our produce Canada and Mexico. Idaho” seal, which producing wash water treatments are highly symbolizes quality every berry. e ective against pathogens. known around the world. BOOTH #1025 BOOTH #1207 BOOTH #1013 BOOTH #1711 BOOTH #401 OCEAN MIST FARMS PACIFIC INTERNATIONAL PEAR BUREAU NORTHWEST PURE FLAVOR RED SUN FARMS Castroville, CA MARKETING (USA PEARS) Leamington, Ontario, Canada Kingsville, Ontario, Canada Ocean Mist Farms is a fourth Salinas, CA Milwaukie, OR Red Sun Farms is the largest high- generation family owned business Paci c International Marketing Discover why USA Pears grown tech greenhouse growing operation and the largest grower of fresh o ers a complete line of year- in Washington and Oregon in the NAFTA region, with ownership artichokes in North America. round organic are a fresh choice for produce of more than 600 acres in Mexico, The company’s full line of 30 and conven- departments, and learn how Pear Pure Hothouse Foods Inc. is a the United States and Canada. fresh vegetables tional produce. Bureau North- grower and shipper of greenhouse includes Season & Call us today west resources grown vegetables with a team of Steam and Ocean and let us be your grower, packer, can help opti- energetic and consumer-driven Mist Organic shipper and processor of quality mize category individuals dedicated to bringing product lines. fresh vegetables. performance. innovative products and fresh experiences to the market. BOOTH #1420 BOOTH #431 BOOTH #213 BOOTH #608 BOOTH #1422 SNOBOY (AMERIFRESH INC.) SAGE FRUIT COMPANY SAN MIGUEL SENSITECH WHOLLY GUACAMOLE Scottsdale, AZ Yakima, WA Oxnard, CA Beverly, MA (FRESHERIZED FOODS) Since 1925, Snoboy has been the Located in San Miguel Sensitech Inc. is a Saginaw, TX leading brand for quality fresh the heart of Produce is a leading provider of Wholly Guacamole fruits and vegetables in North the Pacific vertically inte- supply chain visibility makes it easy for America. For our foodservice, retail Northwest, grated grower solutions, serving global leaders in people to enjoy and wholesale customers, Snoboy the growers at and processor the life sciences, food, consumer great-tasting guaca- is triple inspected and packed to Sage Fruit Company have been o ering bulk goods and industrial markets. mole at home. Made with hand- order with a freshness guarantee. serving customers with only the and packaged nutrient-dense The company enables customers scooped Hass avocados and best apples, pears and cherries organic and conventional dark, leafy to monitor temperature/condi- nothing arti cial, you can taste for more than three generations. greens. Bulk Asian and ethnic herbs tion, mitigate risks and optimize the fresh avor with every bite. are also available. logistics performance to achieve Taking dips to a new level, the increased product quality, integrity brand will be launching its new and e ciency. Layered Dip innovations this year.
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10 / APRIL 2017 / PRODUCE BUSINESS CPMA.indd 1 3/16/17 3:35 PM FORWARD THINKING
APRIL 5 – 7, 2017 MAY 20 – 23, 2017 PBH ANNUAL MEETING 2017 AMERICAN FOOD FAIR 2017 Conference Venue: Omni Scottsdale Resort Conference Venue: McCormick Place, Chicago & Spa at Montelucia, Scottsdale, AZ Conference Management: NASDA, Arlington, VA Conference Management: Produce for Better Health Phone: (703) 259-6120 • Fax: (703) 934-4899 Foundation, Hockessin, DE Email: [email protected] Phone: (302) 235-2329 • Fax: (302) 235-5555 Website: nasdatradeshows.org Email: [email protected] Website: pbhfoundation.org JUNE 7 – 9, 2017 THE LONDON PRODUCE SHOW APRIL 23 – 24, 2017 AND CONFERENCE 2017 NORTHWEST FOODSERVICE SHOW 2017 Conference Venue: The Grosvenor House, Park Lane, Conference Venue: Oregon Convention Center, London, United Kingdom Portland, OR Conference Management: Phoenix Media Network Ltd., Conference Management: O’Loughlin Trade Shows, Boca Raton, FL Portland, OR Phone: 44 (0)2031433222 • Fax: 44(0)2030068568 Phone: (253) 756-2121 • Fax: (253) 756-6898 Email: [email protected] Email: [email protected] Website: londonproduceshow.co.uk Website: nwfoodserviceshow.com JUNE 13 – 15, 2017 APRIL 26 – 28, 2017 INTERNATIONAL FLORICULTURE EXPO 2017 WORLDS OF FLAVOR 2017 Conference Venue: McCormick Place, Chicago Conference Venue: Culinary Institute of America Conference Management: Diversified Business Communi- Greystone, Napa Valley, CA cations, Portland, ME Conference Management: Culinary Institute of America Phone: (207) 842-5508 • Fax: (207) 842-5509 at Greystone, St. Helena, CA Email: [email protected] Phone: (707) 967-1100 Website: floriexpo.com Email: [email protected] Website: ciaprochef.com JUNE 13 – 15, 2017 UNITED FRESH 2017 MAY 9 – 11, 2017 Conference Venue: McCormick Place, Chicago CPMA 2017 Conference Management: United Fresh Produce Associa- Conference Venue: Metro Toronto Convention Centre, tion, Washington, D.C. Toronto Phone: (202) 303-3424 Conference Management: Canadian Produce Marketing Website: unitedfresh.org Association, Ontario, Canada Phone: (613) 226-4187 • Fax: (613) 226-2984 JUNE 25 – 27, 2017 Email: [email protected] • Website: cpma.ca SUMMER FANCY FOOD SHOW 2017 Conference Venue: Jacob Javits Convention Center, MAY 17 – 19, 2017 New York SIAL CHINA 2017 Conference Management: Specialty Food Association, Conference Venue: Shanghai New Int’l Expo Centre, New York Shanghai Phone: (212) 482-6440 • Fax: (212) 482-6459 Conference Management: Imex Management Inc., Email: [email protected] Charlotte, NC Website: fancyfoodshows.com Phone: (704) 365-0041 • Fax: (704) 365-8426 Email: [email protected] JUNE 25 – 28, 2017 Website: imexmanagement.com IFT 2017 Conference Venue: Sands Expo and Convention Center, MAY 20 – 23, 2017 Las Vegas NRA SHOW 2017 Conference Management: Institue of Food Technologists, Conference Venue: McCormick Place, Chicago Chicago Conference Management: National Restaurant Associa- Phone: (312) 782-8424 • Fax: (312) 416-7933 tion, Chicago Email: [email protected] Phone: (312) 853-2525 • Fax: (312) 853-2548 Website: ift.org Email: [email protected] To submit events to our Forward Thinking calendar, Website: restaurant.org/show please email [email protected].
12 / APRIL 2017 / PRODUCE BUSINESS NYPS-2017.indd 1 3/16/17 4:31 PM fruits of thought
Déjà vu Retailing On A Different Scale BY JIM PREVOR, PRESIDENT & EDITORINCHIEF
t is worth paying attention to Yogi Berra, whose biographer, Allen What is quite odd is the way old patterns are repeated. When Barra, explained had “the winningest career in American sports.” Wal-Mart started its rollout of supercenters across the country, IYogi had ten World Series rings, more than anyone else, was named supermarkets, of course, responded. Indeed consultants made a MVP more times than any baseball player, save the drug-discredited living for a long time teaching supermarkets how to compete with Barry Bonds, and he has a panoply of other wins to his credit. Yet he Wal-Mart. The plan? Become the anti-Wal-Mart – emphasize high is famous as much for his “Yogisms” as his athletic performance. service, fresh product, and organics, wherever Wal-Mart was weak. Many are useful in business: In the end, though, these efforts, even when successful, did not “When you come to a fork in the road … take it” – good advice much help retailers compete with Wal-Mart. The efforts basically for business executives on the necessity of making choices. instructed retailers how to get out of Wal-Mart’s way and still survive. “You can observe a lot by watching” – yet an awful lot of In the United Kingdom, efforts by the “Big 4” to compete with Aldi, executives don’t bother to get out and see things beyond their Lidl and similar concepts were, at first, stymied because the retailers immediate interests. were unwilling to take the margin hit necessary to be competitive. This “It's déjà vu all over again” – comes to mind as we look at led to a lot of elaborate tiered private label schemes with torturous the situation with Aldi and Lidl. efforts made to offer prices comparable to the discounters, but only These so called “deep discounters” seem by every predictable on products made sufficiently unattractive that traditional shoppers metric to likely be the growth story of the next would not opt for them. This type of effort to seg- decade, maybe two. Aldi is already the fastest regate customers worked well in airlines where growing food chain in America, and Lidl is about Saturday night stays could easily distinguish to burst out and likely take that title away from between business and leisure travelers. But it Aldi, as Lidl starts with a smaller base. With more Like their earlier has limited success in food, especially when store than 1,600 U.S. stores, Aldi already has some managers have compensation schemes tied not critical mass, and Lidl has announced plans to response to Wal-Mart to total profit but to margin percentages. open 100 stores along the East Coast – but with supercenters, retail- These discount stores have pros and cons 10,000 stores across Europe, the potential in the ers are allowing deep like all concepts. But they are right for many United States seems vast. shoppers. Some need to save money and like to Although discount prices are a calling card discounters to grab not be singled out by the tier of product in their for these concepts, in places such as the United market share. shopping carts. Others have plenty of money Kingdom the stores have evolved to be attractive but like the self-esteem boost that comes from to a more upscale demographic – maybe not for buying smart. all purchases but, certainly, a key to success has What is interesting is virtually no mainstream been making sure shoppers are not embarrassed retailers are rolling out divisions with these types to say they bought items at these stores. of deep discount concepts. They just seem prepared to watch while 10 Though private label is dominant, Aldi produce departments percent of their business goes away. In this, retailers are echoing the often have the most prominent brands in the USA displayed openly. response to Wal-Mart’s rollout. It was clear supercenters were a big In its leaks to journalists and public pronouncements, Lidl is trying part of the future and hardly anyone rolled out competitive concepts. to align itself with the product quality and trendy edge of Trader Joe’s. At least with supercenters, competing with them involved selling But that may be to avoid direct comparisons with Aldi. more non-food products – and supermarkets didn’t have that exper- Compact footprints allow for many conveniently located stores. tise. But the response to Aldi and Lidl requires only evaluating and And the limited assortment not only keeps costs down, but speeds adjusting assortment. shopping trips. It is more a lack of imagination and an unwillingness to change The threat to conventional retailers is obvious. With market shares one's self-identification. Retailers need to be concept-neutral – over 10 percent in the United Kingdom and Ireland, the discounters prepared to sell their food in small, medium and large stores; sell it have dealt a body blow to mainstream conventional supermarkets. online and sell it with heart. Retailers need to not think of themselves These deep discounters count for less than 1 percent of the U.S. as prisoners of their historical business. market – but for how long? And retailers have high fixed costs and are likely to be severely impacted if this new class of trade takes 10 percent of sales away – which seems quite possible, maybe even probable, in time.
14 / APRIL 2017 / PRODUCE BUSINESS
Jim's Column.indd 1 3/31/17 12:33 PM Mann Packing F-P.indd 1 3/20/17 9:46 AM RESEARCH PERSPECTIVE
Seafood And Vegetarian Diners Seek Innovative Plant-based Dishes BY MAIA CHANG
ealthy eating is undoubtedly one of the most important and impactful Htrends in the foodservice industry. Whether as an ingredient that adds Consumers are paying more attention to flare to the dish or as the leading what they’re eating, and they want to eat more unprocessed foods like fruits and ingredient, vegetables will increasingly vegetables. Research conducted in Tech- nomic’s 2016 Healthy Eating study shows influence consumers’ considerations as that 72 percent of consumers say they are they peruse menus. more likely to buy foods and beverages labeled as unprocessed. Further, 78 percent of consumers also state greater likelihood of buying items labeled as containing a if there is meat or seafood present, such as vegetarian and vegan items becomes more full serving of vegetables, and 74 percent a “charred cauliflower Panini with chicken” common. In fact, nearly half of consumers of consumers say the same for items con- or “cucumber dish with strawberries, radish (45 percent) who eat these items have family taining a full serving of fruits. and shrimp.” or friends who are vegetarian or vegan, Consumers of all ages are making an This “flipping the plate” trend will lead underscoring the importance of offering effort to eat more healthfully, and that to more vegetable-centered entree plates. tasty meatless meals that can help negate desire is driving an uptick in vegetable To balance these dishes, operators will offer the veto vote. consumption. Research from Technomic’s meatier and carb-heavy side dishes. Prices Positioning these items as plant-based 2017 Center of the Plate: Seafood and for these vegetable-centered dishes will rather than meatless or vegan may help Vegetarian Consumer Trend Report shows remain on par with those of meatier entrees. these dishes gain traction. Plant-based that 41 percent of consumers report eating Restaurants will justify these prices with can appeal to a wider audience and help more vegetables now than they did a year interesting and unique preparations such overcome negative value connotations. To ago. The study compiles findings from Tech- as spiced-up vegetables at the center of the capitalize on interest in vegetarian or vegan nomic’s Digital Resource Library, Menumon- plate, featuring Indian, African and Middle options, restaurants will innovate meatless itor and an online survey of a nationally Eastern flavor profiles. options with bold flavors and new types representative sample of 1,500 consumers Further, data from the report shows of meat alternatives like those made from who eat meals with seafood, vegetarian or that the growing variety of vegetarian and jack fruit or dishes that allow plant-based vegan items. healthy dishes is drawing some consumers’ ingredients to shine. Specifically comparing As consumers strive to eat more health- attention to meatless dishes. Research protein content will help signal that these fully, trends indicate that animal protein shows that on occasions when consumers dishes are nutritious and filling. sizes will shrink and vegetables will grow order vegetarian or vegan dishes, they are As consumers’ needs and palates shift, to be a larger portion of the plate. Further, purposefully ordering vegetarian or vegan vegetables will grow to play an increas- data from the Seafood and Vegetarian dishes only 34 percent of the time. This ingly important role on consumers’ dishes. Consumer Trend Report also suggests that suggests that consumers who order meat- Whether as an ingredient that adds flare to vegetables will increasingly hold their own less dishes frequently do so because they the dish or as the leading ingredient, vege- and play the starring role on menus. As are looking for healthier options or simply tables will increasingly influence consumers’ vegetables move center stage, in many cases because the item sounds tasty. It’s worth considerations as they peruse menus. Taking they will take on meat preparations and noting that younger consumers — ages advantage of that opportunity to innovate presentations. Interesting preparations, like 18-34 — are slightly more likely than their new, unique dishes, while playing up the blackened, smoked and charred vegetables, older counterparts to specifically seek out health aspect, will spark interest among can further drive the impression that these vegetarian or vegan items on menus. consumers and may help drive traffic. dishes are equal in value and taste to dishes Beyond just offering more vegetable-for- with meat. Animal proteins will no longer ward dishes, research also shows opportu- necessarily be the essential component of nity to grow vegetarian or vegan offerings. Maia Chang is a senior research analyst for Technomic, a dish. Vegetables will increasingly be the Consumers are becoming more comfort- a Chicago-based food industry research and consulting star player called out in menu titles — even able with these types of items — as eating firm.
16 / APRIL 2017 / PRODUCE BUSINESS COMMENTS & ANALYSIS
Will Today’s Restaurant Reality Yield To A Plant-based Future? BY JIM PREVOR, EDITOR-IN-CHIEF, PRODUCE BUSINESS
hat are we to do when re- search indicates one thing, By focusing on a certain class of Wbut the marketing of today’s leading-edge consumers, they largest restaurant chains, those that have real money on the line, tells us those same provide insight as to what may yet consumers are not representative of their customers? be the great restaurant trends of It is obviously true, and important, that seafood and vegetarian consumers respond tomorrow. to Technomic by saying they are interested in produce-heavy, unprocessed food. But the Burger King is pushing its BBQ Bacon We don’t know, but vendors don’t report fact the consumers surveyed are limited to a King Sandwich – an 1,100-calorie paean a dramatic shift in consumption toward small subset of restaurant patrons who “eat to beef, cheese and bacon – eliminating plant-based meals. meals with seafood, vegetarian or vegan all those vegetables one will find on its Sometimes the quest to eat healthy is items” may be a more significant distortion traditional Whopper. Over at Wendy’s, the complicated by changing nutritional guid- factor than is recognized by the typically official hamburger of the is ave’s ance. It wasn’t long ago French Fries were white collar well educated and affluent ouble which is calories a bit less than villainized because they were fried. Now users of studies such as these. ave’s Triple which is calories. These with trans fats mostly out of the oil and We would love to see this research are not the largest burgers sold, but they nutritional information advancing, many presented without filters with the results are all being promoted now — which does public health experts would say the oil is representing the U.S. consumer in toto. not seem the path these chains would take the healthiest part of the French Fry! Without a true representation of the popu- if their customers were demanding healthy, Even consumers who claim to be vege- lation we can only look at the Technomic plant-based menu items. tarian or vegan often don’t follow the research with an eye toward possible trends Even chains that are supposedly exam- official definition of these terms. Though if the future were to change dramatically ples of healthy eating trends often seem the data is weak, the Internet had some and more consumers intended to follow a more image than reality. A couple of years fun with a study that found 37 percent of stricter seafood and vegetarian diet. ago, The New York Times analyzed a large vegetarians admitted to eating meat when o most consumers today really strive group of online orders for hipotle and they were drunk – and 69 percent of those to eat more healthfully? Are consumers determined the following: kept it a secret. yearning for blackened, smoked and charred With the help of a large sample of online So what sense is there to be made of vegetables to take center stage on their orders, we set out to answer a question that a study such as this The best retailers plates ertainly some consumers act this piques our interest every time we walk into often attend trade shows focused on the way and the Technomic study highlights this a Chipotle: What do people actually order? latest upscale and trendy specialty food cohort of diners. But in reading these types How healthy is a normal Chipotle meal? items. Many of the vendors at these events of studies, one has to remember we have no Today, we have a ballpark estimate. The couldn’t possibly supply a big supermarket statistical information that indicates produce typical order at Chipotle has about 1,070 chain, and the sales of many items would be consumption is on the upswing. Our best calories. That’s more than half of the calories too small to justify a slot at major retailers. data is disappearance data – production that most adults are supposed to eat in an But large retailers attend because these minus exports plus imports – and that has entire day. The recommended range for specialty food trends may go mainstream been basically flat for years. most adults is between 1,600 and 2,400. in the future. Of course, the data is imperfect, so we The spike around 1,000 calories Studies such as this Technomic report look for other clues. Large restaurant chains represents “standard” burrito orders – a are probably not representative of Amer- are sending us some serious messages that meat burrito with typical additions: cheese, icans today. But by focusing on a certain the consumers they serve are not focused salsa, lettuce, sour cream, rice and beans. If class of leading-edge consumers, they this way. c onalds is the biggest of all you order Chipotle’s meat burrito with these provide insight as to what may yet be the and its big promotion right now centers on toppings, it is likely to reach 1,000 calories. great consumer trends of tomorrow. If this the Big Mac, which is available in three sizes, Would a similar hipotle study done unfolds, the future of the produce industry including a larger calorie “ rand ac.” today show radically different eating habits? is bright indeed.
PRODUCE BUSINESS / APRIL 2017 / 17 FROM PERISHABLEPUNDIT.COM 06.06.2016
Swedish Supermarket Should Be Ashamed As Its ‘Organic Study’ Won’t Pass Scientific Scrutiny And It Disparages Conventional Produce Without Cause JIM PREVOR EDITOR-IN-CHIEF
oop Sverige AB, a Swedish supermarket 5 people who didn’t eat organic and took urine synthetic pesticides known to be widely used in chain that “promises to do everything samples. They then had the family eat strictly agriculture and, lo and behold, the study found it can to support organic farming and organic food for two weeks and then took more residues of these substances in the urine. Then, Curges others who sell food to do the same,” has urine samples. when the test subjects switched consumption to posted videos, such as one called, The Organic They tested for several conventional pesticides organic product, grown without these substances, Effect, in support of its cause: and determined that eating organic dramatically the incidence of these substances in the urine Here are the first paragraphs of the study’s reduced the amount of these pesticides in the either declined or disappeared. summary on which the video is based: urine of this family. But this is a bizarre study. After all, those The IVL Swedish Environmental Research Obviously, the study was small, with just one organically grown substitutes were not grown Institute was commissioned by Coop Sverige AB person of a particular age and sex, so no real without pesticides and fungicides, and many of to conduct a small survey on whether a switch lessons can be drawn. But, more importantly, the substances used in organic farming are toxic. from conventional to organic foods can provide the study is flawed in its design: Obviously, any reasonable research would study a measurable effect on the level of plant protec- pesticides used in conventional agriculture and tion products in the body. The study has been 1) No long-term outcomes organic agriculture. Then an assessment would conducted using a family with three children If one wishes to study the health effect of have to be made if residues of one are more who usually do not eat organic food. The family something, one actually has to study a long-term dangerous than residues of another. first had to eat conventional, non-organically outcome. Did people with a certain chemical in Consumers like all kinds of things, and this grown food, followed by only organic food. Urine their urine die earlier than people without this Pundit will battle to the death for their right to buy samples were taken from all family members chemical in their urine? Did they get cancer more organic if they so choose. But there is something throughout the period and their pesticide residue frequently? Develop dementia more frequently? wrong with retailers funding one-sided studies content was analyzed. Otherwise, we don’t know if there is any harm and putting them out as offering an important The results of the survey clearly show some at all. insight into the health effects of consumption of pesticides are absorbed into the body through conventionally produced foods. diet. By choosing organic products, it is possible 2) Odd thing to study It seems like a scare tactic to move consumers by and large to avoid the consumption of these Urine is an odd thing to study since if some- to higher margin items, a marketing trick to try to chemicals through food. Compared with the thing is in the urine, we know the kidneys have differentiate one chain from another. The reality, period when the family consumed convention- done their job of getting this substance out of though, is that it needlessly downgrades the ally grown food, the concentrations of pesticide the body. In this sense, the study indicates the conventional items sold in the store and attempts residues decreased on average by a factor of 6.7 opposite of the implication the video tries to make. to play on the emotions of consumers rather than when the family ate organic food. The children The study indicates the body is capable of their intellect. in particular had lower concentrations during excreting substances it doesn’t require or which That seems an unlikely path to lead people to the period of organic food consumption. Levels might be dangerous. make prudent decisions about their food choices of most, but not all, tested pesticides fell in and their budgets. the adults. 3) Selective testing The study was simple... they took a family of The study tested the urine for certain common
18 / APRIL 2017 / PRODUCE BUSINESS Avocados F Mexico.indd 1 3/16/17 3:34 PM ASCENDENT INDEPENDENTS Healthy Home Market The North Carolina-based natural foods retailer enters produce, grocery arena.
BY DOUG OHLEMEIER
PHOTOS COURTESY OF HEALTHY HOME MARKET
he newest store opened by a Tar to the nearest natural foods store. alcohol is on the store’s opposite side. Heel state retailer attempts to break e produce department accounts for e produce area features new elements through to shoppers seeking natural 6,000 square feet of the store’s overall 36,000 that weren’t available in the older store, foods products sold inside a regular square feet. e produce aisle carries around including organics, a juice bar, a smoothie grocery store. 600 items, with organic produce constituting bar and a salad bar. Fresh items are located TOn Feb. 11, 2017, Healthy Home Market, a 20 percent of products. Approximately 30 along the prominent side of the store where regional chain based in Charlotte, NC, opened percent of the store’s produce is sold through people enter. “Our fresh products greet its Farm 2 Family Foods by Healthy Home national brands while 70 percent is sold under shoppers as they walk into the store,” says Market concept store in Lenoir, NC. Farm 2 the store’s Farm 2 Family Foods brand. e Hartman. “To be able to show people new Family Foods combines a traditional grocery produce section delivers 14 percent of store and unique produce items and special oerings store with a natural and organic health food sales and 30 to 40 percent of the store’s is extremely important as they walk into the store. gross pro t, says Chad Hartman, director of store. If the rst thing people see is a dirty Situated in the Blue Ridge foothills near marketing for Healthy Home Market and produce department, they will walk out. It’s the Appalachian Mountains, the Lenoir loca- snack supplier Truly Good Foods. Truly Good nice to be able to walk into a clean and well- tion is the regional chain’s rst combination Foods shares store ownership. kept department to see something new rather store. e store was previously a Just$ave Foods e prominence of the produce department than the same-old-same-old. We are hoping discount store owned by Hickory, NC-based is evidenced by the store’s layout. As shop- this captures what people want in a store.” holding company Alex Lee Inc. Healthy pers enter the store, colorful and attractive e trac pattern creates a mixture of what Home Market remodeled the building into produce is the rst to greet them. As they walk shoppers are used to and adds new items, as the new concept store in just ve days. through the produce aisles, the wellness or well as the deli and meat areas, which represent Fresh produce is a key focus of the hybrid health department is situated behind produce a natural ow in most stores. In between, the location, which is about an hour and 15 on the left, with bulk foods to the right. Deli wellness and bulk foods areas are sprinkled in minutes’ drive northwest of Charlotte. e and bakery are in the back corner on the right. for value. Natural foods customers can quickly store’s clientele includes former discount A seating area is situated between deli/bakery see past the rectangular-shaped produce area grocery shoppers, as well as health food and the meat department. Grocery is in the and view the products they seek, while tradi- customers who previously drove 30 minutes middle of the store with dairy and frozen; tional shoppers can see the items they’re use to
20 / APRIL 2017 / PRODUCE BUSINESS placing in their shopping carts, as well as new oerings. “We want to have that ‘personality of expertise,’” says Hartman. “We want people to come in and feel welcome to ask questions about produce and their health benets.” Organics are marketed separately, using signage to identify the category’s products. “Organics are important to us,” says Hartman. “We feel there’s a certain segment of society who wants it. We want to be able to provide a choice.” e inclusion of organics helps attract new customers. Specialty produce and tropicals, including dragon fruit, yucca and roots, are merchandised in a separate produce depart- ment section and experience consistent move- ment. Merchants Distributors (MDI), Hickory, NC, supplies most of the store’s produce. Healthy Home Market procures local and regional produce from area growers, including bananas and berries as “hot deals.” vegetable misters. An electronic kiosk in the highly popular cherry tomatoes. During a Healthy Home Market promotes produce produce department provides recipes and grand opening day promotion, the local toma- heavily in weekly ads, and uses almost any other information on produce items. Signage toes quickly sold out. Hartman says he expects excuse it can nd to attract shoppers’ attention, is designed via templates to provide a clean and to heavily promote both the region’s and state’s including special coupons, percentages-o, consistent look throughout the department. produce, including apples, blackberries, blue- customized holiday food tastings, special A large wet rack displaying bulk vegetables berries, strawberries, watermelon, potatoes and events, customer appreciation days, Saturday stretches 40 to 50 feet along the wall. sweet potatoes. “Anywhere we can get the best “grill-outs,” patio parties and anything to add In addition to the juice, smoothie and and freshest product, with an emphasis on value to a customer’s visit. e store has expe- salad bars, Farm 2 Family Foods also oers a local, is our sourcing strategy,” he says. rienced strong response from its weekly email pineapple corer, a peanut grinder adjacent to e company opened its rst store, a natural newsletters. e newsletters receive 20 percent the produce department for making peanut foods store, in 1979, in the Plaza Midwood response, which is above-average in terms of butter, as well as a hot bar in the deli area. part of Charlotte. Its Davidson, NC, location, newsletter engagement, says Hartman. “For us, these new services are important,” also a natural foods store in the Charlotte area, “Produce is doing well at the store,” says says Hartman. “Anytime you can put some- is transitioning to the natural foods-grocery Hartman. “For this particular store, what we thing in the store to separate yourself from hybrid. Jerry York and his wife, Betty, the want to do is give people choices. We want the competition, whether it’s a product or a chain’s original owners, operated Tropical shoppers to come to our store, experience our service, it gives people a dierent reason to Nut & Fruit Co., a Charlotte wholesaler of educated sta and make choices on what they come into the store.” snack mixes, roast nuts and dried fruits. e want to eat. If they want to buy traditional Some executives who previously worked couple opened the stores to supply themselves groceries, that’s ne. If they want to try to with successful hybrid stores recently joined a built-in large customer base and to give their start eating healthier through organics, we Healthy Home Market. e chain capitalized company more of a community presence. eir can help them with that journey. For us, it’s on their experience in establishing the hybrid daughters, Angela Bauer and Carolyn Bennett, more about oering them choices and helping market, says Hartman. “A lot of mainstream now own the company. them walk through if they want to change retailers are already kind of dabbling in natural Lenoir represents a typical rural North their eating habits.” and organics, but not going full into them,” he Carolina town, but at the same time includes While produce is merchandised in the says. “We’re doing it the other way, marrying technology jobs from Google’s data center outer rims of the section, produce pods placed natural and organics with a traditional grocery and other high-tech companies that employ throughout the department merchandise a store. What should be taken from this is the many of the city’s 18,028 residents. Located variety of items. Pods may include a mix of natural and organic marketplace is becoming on the town’s main road, it is surrounded by berries or apples and oranges. e depart- more mainstream. ere’s a higher demand for some established neighborhoods just south of ment also cross-merchandises produce with them.” pb the city’s downtown. non-fresh items. Salads are cross-merchan- e store’s competitors include local dised in the pods with carrots, croutons, dress- FACT FILE: grocers, as well as Food Lion and Wal-Mart. ings and nuts, while non-fresh items, including Healthy Home Market During the store’s grand opening week, it dessert items, fruit dips and smoothie mixes, 1208 Hickory Blvd. sponsored some aggressive pricing promotions are also paired with produce. “Anytime there’s Lenoir, NC 28645 to attract shoppers. e promotions high- a clear companion item, we do that,” says P: (828) 728-0499 lighted produce and the outside advertising Hartman. Hours: Mon — Sat 7 am to 10 pm; Sun 7 to 9 pm focused on common produce items, including e store also uses electronic scales and Website: healthyhomemkt.com
PRODUCE BUSINESS / APRIL 2017 / 21 AN INDEPENDENT STREA
The distributor-chef relationship drives produce on restaurant plates. BY MINDY HERMANN
PHOTO COURTESY OF TAPESTRY
ndependent restaurants are leading and seasonal — think heirloom tomatoes, CHE S HELP RIDGE THE GAP the way with mouth-watering peppers, Brussels sprouts, kale, baby greens “We carry a rotating stock of vegetables entrees that are veggie-centric. — but they also expect niche, new, and and fruits throughout the course of the year, From leading culinary centers like year-round availability. and one of my major roles is to come up New York, Los Angeles and Chicago Enter the distributor, the company in the with ideas for new seasonal dishes based Ito small cities and towns, produce dishes middle that bridges the gap between farm on the vegetables and fruits we carry,” says are being transformed by creative chefs who and fork. Local distributors like Baldor, Chef Chris Neary, corporate executive chef, are taking vegetables to a whole new level. Riviera and J. Kings Food Service in metro Crown 1 Enterprises, Bayshore, NY. “I also In fact, the veggie-centric plate is one of New York; Gordon Food Service in Mich- help restaurants manage costs by devel- two major restaurant trends driving menu igan; and Royal Food Service in Georgia oping new, different, better and less expen- development today, according to research not only supply products, but also share sive prepared dishes for every season. I have by Gordon Food Service, Grand Rapids, information on seasonal and local avail- to consider both seasonality and current MI. Chefs and diners are embracing local ability, recipe ideas and trend intelligence. costs before working new ingredients into
22 / APRIL 2017 / PRODUCE BUSINESS Idaho Potato.indd 1 3/16/17 4:30 PM PHOTO COURTESY OF GORDON FOOD SERVICE PHOTO COURTESY OF GORDON FOOD SERVICE PHOTO COURTESY OF J. KINGS FOOD SERVICE existing and new recipes.” tified e eta le ce tricit as e f the t Michelin restaurants, to be photographed As with many distributors, Sysco m st i e tial macr tre ds i resta - and go mainstream overnight,” observes Corporation, Houston, supplies chefs with rants,” says Chef Gerry Ludwig, corporate Chef Neil Doherty, senior director, culinary “trendy” vegetables and fruits through a consulting chef, culinary R&D, Gordon development, Sysco. formal, innovative program with its produce Food Service. “Within the macro trends “Social media helps us monitor local companies that constantly brings in new are smaller observations and ingredient and regional trends and learn from what products for consideration. “We review applications. For example, the popularity restaurants are doing in other parts of the new items by committee and introduce of items such as watermelon radishes country,” says Greet. “Chefs love to post them to our restaurant customers on an and sunchokes. We then derive ingre- photos on the internet. We try to follow ongoing basis,” says Nancy Johnston, senior dient-driven opportunities based on the our chef customers as they post the meals manager, produce sales. “We are constantly research we gather from the three big cities.” they create from our items and dishes that reviewing the latest trends and challenging Gordon shares its research, trends anal- they eat at other restaurants.” our in-house chefs to create recipes and ysis and presentation resources with street- “We use social media, particularly Insta- exciting menu items to help bring creativity level chefs through an online resource that gram, to monitor restaurant produce trends to our chef and restaurant customers. is accessible by its chef customers, who use in the United States,” says Bondi. “We “We have chefs at each of our compa- the information to best meet their needs. follow Michelin-star restaurants to see what nies, and they are included in the business Ludwig also develops recipes and recipe they are doing and creating and whether review process with key customers. They ideas that are inspired by what his team they are using anything interesting that we provide recipes and concepts based on sees and tastes in the trendsetter cities. can source out. We also follow other distrib- fresh and seasonal availability. Additionally, These are both shared with chef customers utors like Baldor on Instagram, Twitter and we work with our corporate produce team and used to create new appetizers, soups, Facebook — if Baldor Foods (Bronx, NY) and recommend seasonal offerings in our entrees and side dishes to offer as part of has it, we know it’s in season and potentially Foodie magazine that is distributed to more the company’s foodservice offerings. Chef available to our chef customers.” than 8,000 customers.” clients create their own signature touches Royal Foodservice, Atlanta, provides by simply adding a few ingredients, such SHOPPING MADE EASY sample boxes of complementary seasonal as fresh or fresh-cut fruits and vegetables, Distributors are particularly adept at items to chefs to serve as inspiration for fruit salads, vegetable kits, whole and cut creating resources to help customers peruse menu creativity. “Our best meeting room is salad greens and blends, and fresh herbs produce offerings. Baldor Specialty Foods, the kitchen in front of a work station, where that Gordon can supply. Bronx, NY, creates peak-of-season and we can cut and taste peak-of-season items Markets that tend to follow rather than seasonal menu guides, displayed on its with our chef customers,” says Richard lead trends learn from the larger cities. website, to show favorite and seasonal items Greet, sales manager and a trained chef. “Toronto restaurants lag behind those in that are available to its chef community, e als e efit fr m the a ilit a d e er- major U.S. cities,” says Ezio Bondi, account with an online form to facilitate ordering. osity of growers and producers to provide manager, Bondi Produce, Toronto, Ontario, In February, for example, Baldor featured us with samples to share with chefs to help Canada. “We contact our partner distribu- four different varieties of radicchio on its get traction on new items.” tors in the United States when we’re looking Peak Season page — Italian Tardivo, Rosa for a particular item because they probably Di Gorizia, Castelfranco and Radicchio Del MONITORING TRENDS have sourced it already and can share the Veneto. Its winter pages displayed citrus Each year, a team of chefs from Gordon information.” fruit (lemons, limes, grapefruits, oranges, Food Service dedicates three weeks visiting Mandarins and tangerines), seasonal roots, new restaurants in three metro areas — USING SOCIAL MEDIA such as beets and celery root, an assort- New York City, Los Angeles and Chicago. Social media has become a popular tool ment of chicories, cooking greens and wild The Gordon team gathers menus, tastes for sharing photos of memorable meals, mushrooms. dishes and shoots photographs as it takes and that means faster access to restaurant “When we get something new and the pulse of culinary innovation in inde- vegetable and fruit trends, particularly for exciting, we do everything we can to get pendent restaurants. those in smaller metro areas. “Social media our customers to know about it — social “For the past several years, we’ve iden- enables creative dishes, even ones from media, emails and the homepage on our
24 / APRIL 2017 / PRODUCE BUSINESS Potato USA.indd 1 3/16/17 4:34 PM website,” says Benjamin Walker, senior to learn about healthy food selection and The steak draws them in and the vegetables director, marketing and development, preparation for their patients and clients. seduce them.” Baldor Specialty Foods. “Vegetable-forward dishes are in my DNA c r rati l al i e ces ariet and in my head, so I no longer have to and color generates excitement about RELIANCE ON DISTRI UTORS make an effort when I plan a menu,” says Saran’s vegetable-centric plate. Among Suvir Saran, executive chef, Tapestry, Saran. “In my restaurant, for example, I his vegetable-laden creations are a turkey e r it e it mi es a d defi es the serve a modest 3-ounce Wagyu beef steak burger with Cheddar cheese and cara- vegetable-centric chef, having worked for along with nearly a pound of vegetables melized onion served with tostones and more than 15 years on the Harvard Healthy — roasted carrots and turnips, caramelized l t s r t chi s a her ec ed sla a d Kitchens Healthy Lives project; this initia- Cippolini onions and a vegetable baklava. I homemade tomato chutney, and a rabbit tive gathers health professionals, health give customers the most sought after piece tostada appetizer accompanied by pepper executives, foodservice directors and chefs of steak, but it’s just a small part of the plate. chutney, salsa verde, yuzu-cilantro-yogurt crema and mizuna. Saran credits Baldor Foods with making sure he has the vegetables and fruits that he needs. He also acknowledges Frieda’s, Los Alamitos, CA, for its efforts to procure “beautiful and inspiring produce year- round.” Saran advises that while serving seasonal and local may be popular, it is not always practical. “People talk seasonality, but they want what they want,” says Saran. “They expect citrus and greens to always be on the menu, even when they are neither local nor seasonal.”
SIMPLY ALUE ADDED Preparation of produce has the potential to increase restaurant labor costs, which explains the continued growth of value- added produce. Chef Neary sees tremen- dous opportunity in value-added produce beyond conventional slice-and-dice and into both fancier cuts and veggie noodles. “Restaurants want fancy cuts, but they don’t want to spend on the additional labor in-house,” observes Neary. “That is why we have a division of 35 employees whose only job is to craft fruits and vegetables. e res ded first t re ests f r e e- table linguini made from yellow and green s ash a d e ha e e machi es that allow us to create noodles from more firm e eta les s ch as eets t r i s carrots and parsnips.” The popularity of vegetable noodles for low-carb diets propelled them into supermarket produce sections nearly simultaneously. a li er c ti es t e lar a d interest in value-added products is high. er e is i t riced ca li er hich we supply and also use in prepared dishes such as stir-fries, where it takes the place of rice,” says Neary. “Shredded Brussels sprouts also are in demand, particularly for salads and appetizers. Fruits have moved beyond salads into candied versions and decorative garnishes,” says Neary. Riced
26 / APRIL 2017 / PRODUCE BUSINESS ca li er a d sha ed r ssels s r ts fr m its al e added r d cti . SparCs’ t made a ra id lea i t retail. r rietar e eta le le d is a tri- e t de se der that resta ra ts ca se HEALTH SPURS INNO ATION i their s s sm thies a d ther items. th resta ra t di ers a d s ermar et al i c cti ith r ct c st mers i creasi l dri e dema d f r erates a r ram called Greener Fields m re healthf l ch ices. e a a d e e- Together that hel s c ect l cal a d taria ha e ta e a fr t seat i resta ra ts s stai a ilit f c sed farmers ith its distri- sa s sc s hert . e are e c ra i ti et r . The als f Greener Fields r chef c st mers t create m re r d ce Together are t im leme t s stai a ilit dishes as ce ter f the late me items. ractices that ill im r e e ir me tal The reat thi a t r d ce is ca PHOTO COURTESY OF GORDON FOOD SERVICE im act a d t e s re the a aila ilit a d dress it as ld a stea . rre tl safet f r d ce f r f dser ice a d retail sc als is r i ith chefs eth ic c siderati is triti . e created a art ers i all i d str se me ts. c isi es that are r rti all hea ier i e ie r er that e ted t t mar et e arra e t ic their e eta- r d ce a d rai s. sc i art ershi eca se it had t m ch s di m a d fat les a d fr its ta e er l istics st ra e ith r d ce r etter eath is a d t ma cal ries sa s ear . e a d f d safet d c me tati a d the creati a f dser ice f c s r ith ca t ass me that a dish made ith e e- deli er them t r resta ra t c st mers erat rs t fi d a s t t m re r d ce ta les a t maticall is health . e lai s al s reet. e free farmers the me a d se d messa i health t f c s hat the d est r the eati ha its h me ith c st mers. SUSTAINA ILITY est r d cts. d f r e er r d ct s ld ermar et chai s are rese ti stai a ilit ca ite distri t rs r ct ret r s a erce ta e t farmers distri t rs ith c st mer dri e lists f a d resta ra ts as the r t ether t ia a ra t f d that is ted fell i redie ts that ca t e sed i re ared i crease c s m ti f fr its a d e e- farmers chefs a d the e eral lic. f ds i their st res. Th se re ests a d ta les. ald r created a r ram SparCs restricti s carr er i t distri t r ffer- scra s s elled ac ard t re r se GI E AND TA E RELATIONSHIPS i s t their resta ra t clie ts. ther f d aste amel eels a d s i s The relati shi s a d art ershi s
PRODUCE BUSINESS / APRIL 2017 / 27 we’ve kept with longstanding vendors are enables us to source pretty much anything,” very important to us,” says Chef Suzanne says Baldor’s Walker. “We more often than Cupps, chef de cuisine at Untitled in the not will try a new item to see if it sticks. Whitney Museum, New York City. “We We can tell right away if we have a best challenge the normal restaurant portion seller on our hands.” by putting more vegetables on a dish and Often, chefs propel trends forward. “A less protein; and we challenge our farmers popular chef will call and ask for an inter- to grow even more specialized types and esting product,” says Bondi. “We move sizes of vegetables.” fast, sourcing that item within two weeks to “We rely on our customers and farmers make it a reality for the chef. But as a middle to keep us apprised of new items or trends, man, my challenge is to keep the chef happy and our vast network of farms and partners and make sourcing worth my vendor’s time.
PHOTO COURTESY OF J. KING’S FOOD SERVICE
Nobody wants an order of one case, so I will buy a bit extra and promote the surplus to our customer base. Sometimes it’s a quick hit; other times I sample it out to generate interest.” Bondi adds each new item to the company’s “toolbox,” an expanding database of vendors from around the world who can be approached for the next order of that item. Royal encourages its buyers to scout out trends at local farmers markets and send reports of what’s available. “We put that information in our database for seasonality and use it to time our promotions to restau- rants,” says Greet. “For example, if heirloom vegetables appeared in farmers markets in March of the previous year, we know to begin promotions the following February for the new crop. While we typically don’t source from farmers markets because they don’t have adequate volume or logistics for our restaurant customers, we ask farmers to introduce us to others who might have the appropriate scale for our network.” Royal, Gordon and Crown 1 all employ chefs. At Royal, every person on the restau- rant sales team has a culinary background and worked as a chef, a line cook or along- side a certified master chef. The sales team serves as a resource to restaurant chefs for information on handling, preparation, storage temperature and other information on our fruits and vegetables. Greet explains that “we suggest produce ingredients like we would offer paint to Picasso — we’re the supply experts and the chef is the artist. Chefs drive the product that we bring to them as much as we drive what they serve in the restaurant.” Greet observes that fruits and vegetables sell themselves when distributors provide chefs with the best available items at peak season. “Chefs take those individual items and pair them with others in a way that is exponential. Imagination is the limit.” pb
28 / APRIL 2017 / PRODUCE BUSINESS Blue Book.indd 1 3/16/17 3:34 PM Decoding Canada’s Produce Success At Retail
ABOVE PHOTOS COURTESY OF LONGO BROTHERS FRUIT MARKETS INC.; PHOTOS BELOW COURTESY OF SAVEONFOODS
A competitive environment challenges retailers to excel in the basics, tailor business to customers and innovate.
BY JODEAN ROBBINS
roduce in Canada means big business, regardless of retailer size. e country’s diverse population of 36.5 million (as reported by the United Nations) yields a diverse and thriving retail sector for produce. According to government statistics, the agriculture and agri-food industry contributes more Pthan $100 billion annually to Canada’s gross domestic product (GDP). “We may not have as large a retail base as the United States, but the diversity of retail in Canada is huge and contributes to our success,” says Ron Lemaire, president of the Canadian Produce Marketing Association (CPMA) in Ottawa, Ontario, Canada. Bruno Bertucci, category manager of produce for family-run Longo Brothers Fruit Markets Inc. in Vaughan, Ontario, with 30 stores, asserts a lot of Canadian retailers place big emphasis on produce. “Produce is a crucial component of our business, and we cater to a diverse marketplace,” he says. Canada’s successful produce climate is bolstered by the way Cana- dians view produce. “Fresh is important in Canada, and a majority of Canadians shop two or three times a week for produce,” says Lemaire. “Our consumption is around four servings per day per capita.” cations company, Faye Clack Communications Inc., and president of Canadian consumers buy what looks fresh and appealing, as well the Ontario Produce Marketing Association. “ is results in a higher as what may be on their shopping list, according to Virginia Zimm, ring from the produce department,” she says. president and owner of Ontario-based food and beverage communi- Price and quality serve as core drivers for Canadians. “We must
30 / APRIL 2017 / PRODUCE BUSINESS FL Department.indd 1 3/20/17 9:51 AM “Forced walk-through of produce upon entering the basics well enhances produce sales. “Retailers store, along with fresh, well-culled and full displays, have to be vigilant on standards, quality, merchandising and value,” says Lewis. “Ensure contribute to success; cross-promotion and companion you have the right assortment for your demo- placement add to incremental sales.” graphic, and don’t be afraid to take a risk in your displays to drive additional sales. Make — Virginia Zimm, Faye Clack Communications Inc. sure your ier is well represented with displays in your department and you have tie-ins of high-margin items complementing your ad o er the best quality, freshest delivery and Longo’s Bertucci agrees Canada’s retail item and shielding your margin.” good pricing because it’s what our consumers competition makes operations sharper. “You Zimm attributes healthy sales to cross-pro- demand,” says Lemaire. “Quality is paramount have to do better or you’ll go by the wayside,” motion and companion placement, as well and underlies everything we do, yet Canadians he says. “You must be priced right with the as the ve decks used around perimeters are also price-sensitive. is equation creates best product, and be knowledgeable about in combination with large harvest tables. a successful model at retail.” the trends and demands of your customers.” “Canadians often choose products based on Brian Lewis, produce director for Feder- associative behavior, so when products are ated Co-operative Limited in Saskatoon, MAKING THE MOST OF THE SPACE cross-promoted and companion-placed, sales Saskatchewan, operating 350 food stores across Perhaps success stems in part from a major increase. We also have areas in the depart- Western Canada, says the trend to consume commitment to space — according to Bertucci, ment dedicated to particular categories, such more produce will continue. “Our research most produce departments take up one-third as bagged and boxed fruit, or organics.” tells us eating healthier is top of mind for the of a store. Save-On-Foods, a subsidiary of the larger demographic of our trading area. Many “Canadian produce departments are consid- Overwaitea Food Group in Langley, British of our demographics are heavy produce users, ered the cornerstone of every retailer,” says Columbia, focuses on display contests to build so we constantly add new fruits and vegetables Zimm. “All stores are designed to ensure a excitement and move product. One successful to our sets to satisfy these needs.” forced walk-through of the produce depart- promotion is the company’s “Apple Cup” – a While many seek to unearth the secret ment when entering the store.” month-long display contest in conjunction to Canadian retail success, industry experts e industry takes pride in the fact produce with BC Tree Fruit and in partnership with point to a variety of factors. “Forced walk- creates more revenue relative to the amount Sunripe. “is engages store personnel and through of produce upon entering the store, of space taken up. “About 19 percent of all customers, and challenges the departments to along with fresh, well-culled and full displays, retail space is fresh produce, and we sell about create excitement in the store,” says a company contribute to success; cross-promotion and 21 percent of store revenue on average,” says representative. “is is just one example of the companion placement add to incremental Lemaire. “In some stores, it can be as high as many promotions we do.” sales,” says Zimm. 26 percent revenue with as low as 12 percent Store cleanliness and appearance is another Lemaire maintains there is no one magic space.” crucial basic. “Creating both a holistic look and bullet for success. “It is truly a combination of Federated reports a high distribution of quality feel are key,” says CPMA’s Lemaire. everything,” he says. produce sales. “ere has been a company-wide “One pertinent trend is a focus on shopping focus on the fresh departments,” says Lewis. carts. Providing clean shopping carts is funda- COMPETITIVE LANDSCAPE “All new stores and most remodels are set up mental. If customers walk into a store and see e old saying, “A rising tide lifts all boats” so the consumer enters the store and walks a dirty cart, this is the rst impression. Stores may be an appropriate mantra for Canada’s right into produce, causing a high percentage are looking at the whole approach to create food retailing environment. of foot trac.” the entire value and experience.” “e Canadian retail environment is very competitive,” says Zimm. “To compete success- DOING THE BASICS WELL EMBRACING DIVERSITY fully, the produce department needs to be more Canadian retailers acknowledge doing the Canada’s growing ethnic and cultural diver- robust and fresher compared to competitors.” sity is a major factor in increasing produce sales. Lemaire describes Canada’s national retail “Over the course of the past 20 years, Canada market as a diverse blend of consolidated has become a true multicultural mosaic,” says large retailers, innovative medium and small Faye Clack Communications’ Zimm. “By virtue chains, and unique format stores. “We have of our cultural roots, Canadians shop di er- major chain stores, including Sobeys, Metro, ently — three to ve times per week — are Loblaws, Wal-Mart and Costco,” he says. “At more health-conscious and embrace di erent the regional level, we have Overwaitea Foods cuisines from other cultural backgrounds.” and Federated Co-op driving excellence and Longo’s has experienced this through the really forcing major retailers to look at what rst and second generations of immigrant they do so they don’t lose market share. en, customers. “ey demand really fresh produce, we also have innovators such as Colemans, shop quite a bit and their baskets are very Farm Boy, Longo’s and Country Grocer really large,” says Bertucci. “roughout our 60 years, lifting the market competitiveness for every- we have grown with the rst and second gener- body.” PHOTO COURTESY OF LONGO BROTHERS FRUIT MARKETS INC. ations, and are now serving their Millennial
32 / APRIL 2017 / PRODUCE BUSINESS FL Tomato.indd 1 3/16/17 4:28 PM “We just launched microgreens in a big way and saw a positive reception — these especially reflect the juicing and healthy lifestyle trends.” — Bruno Bertucci, Longo Brothers Fruit Markets Inc.
children. We focus on adapting to best serve Half your Plate. “ is program and the focus each group and culture as they grow.” the stakeholders have in promoting healthy Bertucci notes some of the ethnic items consumption aects sales in Canada for the don’t represent a large percentage of sales, positive,” says a representative. but are still necessary. “It makes the produce Dietitians and Canadian public health- department look more interesting and full,” he care associations are also taking a more active says. “And especially where we are competing role in preventative healthcare. “ e Ministry with ethnic stores catering to their specic of Education is providing more information demographic, it’s a must-have for us to attract and food skills knowledge through the curric- these shoppers.” ulum in our education system at all levels,” says Zimm. “Associations, including the Cana- REMEMBERING THE GENERATIONS dian Produce Marketing Association and the Marketing to specic age demographics Produce Marketing Associations, are working represents another crucial piece. Lemaire notes in conjunction with government agencies to the importance of the senior demographic: promote increased consumption of fruits and “ ey have money and are driving a healthy vegetables.” lifestyle and diet.” Young families also present growing oppor- AGGRESSIVE DIFFERENTIATION tunity. “Millennials having babies are changing Store dierentiation is fundamental to the way things move as they look at how to Canadian retail competition. To dierentiate bring fresh, avorful and healthy into their itself, Federated Co-operative complements real-world family,” says Lemaire. “We know standard items with emerging, innovative prod- through our Nielson stats that households with ucts. “We are constantly adding new varieties kids have a higher percentage of consumption of apples, such as Envy, Smitten and Lady than those without kids. We are working hard Alice,” says Lewis. “ is past December, we to drive consumption via school initiatives, had the Aoshima Mandarins available for two including our Freggie children’s program and weeks. We bought the entire product shipped even on our convention tradeshow oor.” into Western Canada. We continually add As age demographics change, Canadian these great items; it’s where we see incremental retailers adapt their strategies. “More SKUs are growth.” available for the condo dweller/single person Many stores highlight local to help dier- demographic, including smaller formats, entiate them. Federated is known for being a vegetable kits and ready-to-use,” says Zimm. leader in locally grown produce, something “More fruit and vegetables are displayed loose, Lewis notes is attractive to many segments of allowing consumers to choose which piece and its consumer base. Save-On-Foods also reports how many — appealing to singles, families a strong commitment to local and to providing and seniors alike.” healthy choices to customers. “Fresh produce plays a key role for both of those things,” says PRODUCE AS PART OF HEALTHCARE a company representative. “It’s important to As Canada’s population ages, produce as our customers, so it’s important to us.” a health component is growing from indus- Focusing on seasonality is another dieren- try-wide initiatives to store-level campaigns. tiator. “In our markets, we always push what’s “Health trends are driving produce consump- in season,” says Longo’s Bertucci. “When in tion and sales,” says Bertucci. “We have season, local is front and center; when it’s shoppers juicing, pickling and canning for a primetime for California stone fruit, that is healthier lifestyle. We just launched micro- front and center.” greens in a big way and saw a positive recep- Increasingly, Canadian retailers dierentiate tion — these especially reect the juicing and their stores by creating a community experi- healthy lifestyle trends.” ence. “More stores, even chains, are trying to Save-On-Foods points to programs like the create a neighborhood feel when customers Canadian Produce Marketing Association’s walk in the store,” says CPMA’s Lemaire. pb
34 / APRIL 2017 / PRODUCE BUSINESS PHOTO COURTESY OF GERAWAN FARMING PALLETS: A Question Of Sustainability Reduce, reuse and recycle is the mantra. BY BOB JOHNSON
he choice shippers make concerning FL. “ere are economic and environmental Patrick Atagi, vice president for advocacy and material and design for the pallets bene ts. You avoid having to harvest additional external aairs at the association. “If you use used to transport fruits and vege- wood, or use more plastic.” the pallet design system you are optimizing tables from elds to supermar- e choice of materials, design and manage- the resources and can use the USDA Certi ed kets across the country aects the ment systems for pallets comes down to the Biobased Product logo.” Tsustainability of the entire produce distribution increasingly familiar catch phrase: reduce, reuse e Pallet Design System is a software system. and recycle. program that lets users enter what they want Fortunately, sustainability and economics to transport, in what quantity, and then receive usually go hand in hand, because the most REDUCE MATERIAL IN PALLETS 2D drawings of the pallet design using the ecient use of materials and fuel to move e National Wooden Pallet & Container least possible material that will let them safely produce has both the lightest footprint on Association of Alexandria (NWPCA), VA, move those products. the environment and the smallest impact on is taking optimization of resources in pallet “It enables you to make the best use of your the wallet. design to a higher level in collaboration with resources,” says Annette Ferri, vice president “When you reuse a product, you extend the the U.S. Department of Agriculture that could of communications at the NWPCA. life of it; you’re getting more value out of it,” help retailers merchandise their commitment is program, which has been regularly says Tim Debus, president and chief executive to sustainability. improved since its introduction in 1984, is of the Reusable Packaging Coalition, Tampa, “We have a pallet design system,” says described in detail on the association’s website.
PRODUCE BUSINESS / APRIL 2017 / 35 Late last year the NWPCA gained certi - cation for pallets designed using this software “With biobased certication you’re designing a pallet to display the USDA Biocerti ed seal, which that uses te optimal amount of material and less fos- is an eort to reduce reliance on petroleum by promoting the ecient use of farm-based sil fuel to make and transport. You should request this alternatives. from your suppliers or pallet maker.” Atagi, a member of the United Fresh Supply — Patrick Atagi, National Wooden Pallet & Container Association Chain Logistics Council, says initial industry response to the possible merchandising value of a Biocerti ed label has been enthusiastic. “e retailers aren’t just saying ‘our straw- is allows for a reduction of more than 200 same condition as when it was shipped,” berries or potatoes are organic or sustainable,’ square feet of storage space per truckload when says Schutz. “When suppliers ship on reused they can also put a stamp on the pallets that compared to double-face stringer and block pallets, there is a chance for product damage. says they are USDA Biocerti ed,” says Atagi. pallets. ey also contribute to reducing inju- is would include crushed boxes, pallets that “With biobased certi cation, you’re designing ries related to lift truck trac. ey save fork may have fallen over in transit and damaged a pallet that uses the optimal amount of mate- truck drivers time and energy by transporting product. Ultimately, a retailer should identify rial and less fossil fuel to make and transport. up to three times as many per trip.” what is most important and strive to achieve You should request this from your suppliers those goals.” or pallet maker.” REUSE WHERE APPROPRIATE In situations where it is imperative to use a Another way to reduce the use of mate- e impact on both the environment and pooled pallet, Gerawan prefers a plastic model rials is to ship on smaller pallets, if possible; the bottom line can also be softened when with tracking capability. suppliers are competing with various economic pallets are reused. “e retailer normally drives the decision on models. “We are nding more and more pallets in whether to rent or buy, but we always share our “One of the biggest trends in platform reusable systems,” says Reusable Packaging point of view,” says Schutz. “ere is no better management is the robust CHEP 40 inch by Coalition’s Debus. “Wood pallets are designed pallet in the industry than our Prima Pallet, 24 inch shared (pooled) half-pallet,” says Ben and built to be reused. e material doesn’t and this is something we share with all of our Eugrin, director of supply chain solutions at determine whether it is reused. ere is a trend retail partners. If we must use a pooled pallet, it CHEP North America, Orlando, FL. “Retailer toward reuse of material.” will always be a plastic iGPS pallet. We prefer and manufacturer feedback shows the half- Reuse is becoming more practical because the plastic iGPS pallet because of its overall pallet is an eective platform for increasing technology, originally developed to improve appearance, durability and cleanliness.” sales and reducing labor costs.” traceability for food safety purposes, can also Many shippers appear to be moving toward CHEP is a global pallet and logistics solu- be used to help track the location of pallets. the economical system of reusing pallets from tions company owned by the Australia-based “An exciting technology development a pool. conglomerate Brambles, a supply chain is enabling better tracking and recovery “Increasingly, retailers and manufacturers logistics company that owns CHEP’s sister of the pallets,” says Debus. “As technology are moving to a shared operating model for company, IFCO, which oers pallet recycling, develops and advances, it gives better control their platform management needs,” says used pallets, used wood pallet supply and reus- of inventory and allows for automatic case- or CHEP’s Eugrin. “At CHEP, our business able plastic containers. pallet-level tracking; we see greater use of this model is based on shared and reusable assets Litco International Inc., Vienna, OH, technology every year.” that provide unique economic and sustain- oers half- and even quarter-sized versions Pooling specialists are using this tracking ability bene ts to our customers.” of the pallets it presses out of damaged or technology to more eciently move pallets In addition to pallets, CHEP oers logis- recycled wood. “e pallets are lightweight, from one job to the next. tical services it contends frequently save but very strong, resist moisture and are bug, “Intelligent Global Pooling Systems (iGPS) customers substantial sums of money. bark, mold and odor free,” says Gary Sharon, in Orlando, FL, has RFID tags installed in “Platform management is just one vice president of Litco International. “ey each pallet and also uses barcodes to keep track important aspect of eective supply chain come in the standard Grocery Manufacturer’s of their assets and determine dwell times,” says management,” says Eugrin. “Our Supply Association’s (GMA), full size 48-by-40 and a Denver Schutz, technical services manager at Chain Solutions Portfolio is a collection of half-size, 24-by-40. New to the product line is Gerawan Farming, Sanger, CA. “e preferred powerful tools that leverage our end-to-end a quarter-size 20-by-24, priced at only $2.65 way to keep track of pooled pallet assets is supply chain expertise to help customers each in truckload lots. All of the pallet sizes by having the shipper ‘move’ the pallet from become more ecient, save money and reduce are designed for easy access with a hand jack.” origin to destination by entering the speci c their environmental footprint. For instance, ese molded pallets are light and nestable, information into an online application.” 95 percent of CHEP customers that utilize which means they reduce the amount of space Gerawan, a California tree fruit grower, our Value Stream Mapping capability found and fuel needed to store or transport. prefers to make its own pallets rather than 12 or more areas where they could become “For companies that want a pallet supplier buy or rent, because the company says it oers more ecient along their supply chain. One committed to sustainability, Litco’s Inca greater control to the quality and safety of company saved $280,000 by cutting third-party molded wood pallets are a complement to the fruit. warehouse costs.” any company’s initiative to stay lean and green,” “First and foremost, retailers should focus CHEP provides pallets, but it is a large says Sharon. “e nestable design saves space. on arrivals and getting their produce in the company that also researches transportation
36 / APRIL 2017 / PRODUCE BUSINESS solutions. the sale of promotional items and other prod- and fractional pallets,” says Eugrin. “Shared “With biobased certication you’re designing a pallet “We specialize in the development of inno- ucts displayed on half pallets in high-tra c pallets are often the most cost-eective. In that uses te optimal amount of material and less fos- vative supply chain solutions, including unit areas of the store,” says Eugrin. “In addition, addition, they can reduce labor costs and load optimization, product damage reduction the half-pallet has shown an ability to reduce product damage, and help our customers sil fuel to make and transport. You should request this and packaging performance optimization,” says out-of-stocks and product replenishment time meet their environmental sustainability goals from your suppliers or pallet maker.” Eugrin. “e CHEP Innovation Center in at retailers.” when it comes to reducing waste and carbon Orlando, FL, is a state-of-the-art test facility emissions.” — Patrick Atagi, National Wooden Pallet & Container Association that simulates real-world conditions like RECYCLE THE MATERIAL Litco makes its line of lightweight pressed supply chain handling, warehouse stacking, Eventually, any pallet will reach the point wood pallets from broken, or otherwise already unit load deection, package handling, trans- that it is no longer useable, and that’s where used up, material. port vibration and environmental conditions recycling comes in. “Our Inca molded wood pallets have to test how the product and its packaging Even shippers who strongly prefer to use recently been compared to new and recycled perform throughout the rigors of the modern pallets one time only, like Gerawan Farming, wooden pallets for strength and stiness,” says supply chain.” make sure the used pallets return to the supply Sharon. “Testing at e Center for Packaging Another strategy for reducing the overall system. and Unit Load Design, Virginia Tech, Blacks- footprint is to reuse the pallet on the produce “We sell all of our used and broken pallets burg, VA, has proven molded pallets are stier department oor as part of the display. to third-party pallet companies,” says Schutz. and more functional than the traditional GMA “If retailers use pallets for bases under “ey normally x the pallets and sell them to style wooden pallet.” point-of-purchase displays, then they should other companies that may use them. at is just Consumers have no way of knowing that a strongly consider using Litco’s molded wood too risky for us. We always stack our fruit on retailer’s commitment to sustainability extends pallets,” says Litco’s Sharon. “ey are designed new, and never previously used, Prima Pallets.” to the tools used to ship produce from the for safe interaction with the public. ey do Companies that say the best and most eld to the store unless they are told about it. not have sharp corners or bottom boards for economical system is pooled pallets, such as “People don’t think about wood as sustain- consumers to trip over.” CHEP, also oer the use of recycled. able or recyclable,” says Wooden Pallet & e smaller pallets seem more amenable “To help our customers meet their business Container Association’s Atagi. “Unless you for this secondary use as part of retail displays. needs, CHEP provides a variety of platform tell them, people don’t know the product you “CHEP customers are seeing an increase in options, including shared (pooled), recycled are using is biobased.” pb
PRODUCE BUSINESS / APRIL 2017 / 37 ‘Mushrooming’ Retail Sales Fungi pack valuable nutrients, deliver health benefits and versatility.
BY BARRY SPARKS
ushrooms are guring more THE MUSHROOM AUDIENCE of Oakshire Mushroom Farm, a Kennett prominently in plant- and Many factors are driving popularity, Square, PA-based distributor of Dole brand meat-based dishes, leading to including their nutrition value: low in calories, mushrooms. “Some demographics are not as an all-time high in domestic fat-free, cholesterol-free, gluten-free and low produce-centric as others. Typically, the more production and value, in sodium. Mushrooms also provide important a¤uent neighborhoods oer more options. Maccording to the Mushroom Council, San Jose, nutrients, including selenium, potassium, ribo- Retailers need to be keyed into the demo- CA. According to IRI/Freshlook Marketing, a avin, niacin, vitamin D and more. graphics of their area and meet the local Chicago-based research company, mushrooms Mushroom shoppers represent a signi- demands.” reached nearly $1.1 billion in retail sales for cant audience for retailers. e spend rate and Mike O’Brien, vice president of sales the year ending June 28, 2015. e Mushroom average transaction size of mushrooms are and marketing for Monterey Mushrooms in Council forecasts the supply of mushrooms among the highest of all vegetables, according Watsonville, CA, says retailers can optimize will grow 3.2 percent per year through 2019. to a research study by AC Nielsen Consumer shelf space to maximize sales and prots “Everything is lining up. It’s not any single Panel, a New York-based company. through sophisticated category management. meal occasion, cuisine or environmental or So, how do retailers take advantage of the He suggests utilizing scan sales, purchases social benet. It’s all of them,” says Bart growing popularity and buying power of shop- and shrink data, and matching demographics Minor, Mushroom Council president and pers? How do retailers eectively use shelf to planograms. He stresses access to IRI or chief executive. “We seem to line up with space to get the most sales out of mushrooms? Nielsen data is also an important component every single trend right now, including weight “e demand for mushrooms is growing, of category management. “We believe in part- management, vitamin D deciency and the and sales have been strong,” says Pete Wilder, nering with our retail customers in collabo- aging population looking for that fountain marketing director for To-Jo Mushrooms, rative category management,” he says. “Our of youth.” Avondale, PA. “Mushrooms are a category in-house team works with our retail customers e biggest trend in mushrooms these days that denitely deserves shelf space.” to help customize planograms and to collec- is “e Blend” — mixing nely chopped mush- According to Wilder, retailers traditionally tively develop programs to increase transaction rooms with ground meat to boost avor and cut dedicate 6 feet of shelf space to mushrooms, count and market basket.” calories, fat and cost in foods like burgers, tacos while some have expanded to 8 feet. However, Mark Hartwell, senior business analyst and chili. e Blend — which has garnered a most growers agree there is no ideal amount for Giorgio Foods Inc., a Blandon, PA-based lot of attention through mainstream and social of shelf space. mushroom supplier to supermarkets for more media — has caught on with chefs, foodservice “Each retailer needs to nd the right than 50 years, says, “While there are industry and television cooking shows. mix,” says Quintin Schroeder, vice president trends on how mushrooms are most often
38 / APRIL 2017 / PRODUCE BUSINESS VALUEADDED ITEMS Despite the increase, the value-added Value-added items such as kabobs and category made up approximately 1.5 percent stu ed mushrooms are a growing category as of total sales during the past 12-month consumers look to save time in meal prepara- period, according to Hartwell. Savvy retail ‘Mushrooming’ tion. “People love mushrooms, and they love marketers are expanding beyond traditional to save time,” says O’Brien. avenues. One of the easier ways to encourage Georgio’s Hartwell says value-added prod- increased sales is through promoting larger ucts are one of the fastest-growing categories, package sizes, including 16 and 20 ounces. Retail Sales with nearly a 15 percent increase in dollar ese sizes, popular in club stores, are attractive Fungi pack valuable nutrients, sales from the previous year. “Retailers who are to customers looking for value. Specialty mush- deliver health benefits and versatility. taking advantage of this trend are denitely rooms such as King trumpet, beech, maitake, seeing the benets,” he says. shiitake, oyster and enoki appeal to gourmet BY BARRY SPARKS
PHOTO COURTESY OF GIORGIO FOODS INC.
merchandised, many of our customers view the category a little di erently. So, it’s important to personalize merchandising based on a chain’s shopper base and purchasing patterns.”
CROSSMERCHANDISING Because mushrooms are versatile and used in many cuisines, there is a plethora of oppor- tunity for cross-merchandising. O’Brien recommends merchandising mushrooms in the store’s best refrigerated case next to bagged salad since they are often used in salads. “e mushroom will be the hero item and sell at regular retail because of the subtle suggestion of adding it to the salad,” says O’Brien. Schroeder agrees. “When mushrooms and salads are promoted together, we see an increase in sales. Mushrooms make an excellent topping for salads and pizzas.” Wilder recommends retailers work with the meat department to promote mushrooms with kabobs, or showcasing Portabellas on the grill or as part of a burger. Since grilling is a favorite summertime activity, produce managers should consider displaying grilling techniques and recipes next to both the mushroom and meat displays. Retailers should place brown mushrooms at eye level to capture the shopper’s atten- tion. Placing mushrooms near peppers and onions provide customers with an ideal trio for sautéing. Chef Dave Eger of Earthy Delights, Okemos, MI, says dried mushrooms o er a number of cross-merchandising opportunities. He recommends displaying them with pasta and sauces, and with soup ingredients, such as chicken and beef vegetable stocks. Shii- take dried mushrooms can be merchandised with Asian ingredients; while Porcini dried mushrooms can be placed with Arborio rice for risotto.
PRODUCE BUSINESS / APRIL 2017 / 39 chefs and oer interesting alternatives to tradi- its organic production, and retailers, aided by take up minimal shelf space. Dried mushrooms tional mushrooms. Carrying specialty mush- the company’s category management capa- are an easy add-on item for customers, and rooms can make a store a destination spot for bilities, can increase sales by adding organics since they are considered a gourmet item, they gourmet cooks and sophisticated home cooks. to their mix. can deliver a healthy pro t margin. O’Brien says the organic mushroom cate- Dried mushrooms are helping boost the While white and brown mushrooms are gory, driven by Millennials, has grown 15 retail ring thanks in part to the ease of handling top sellers, carrying a wide variety can bene t percent. Monterey Mushrooms has increased and storing — they have a long shelf life and retailers. “In order to ensure customers have n ALLEVIATING SHRINK Retailers have to consistently focus on starts with efficient inventory manage- priately and turn product; and stay in stock. alleviating the shrink rate — they are one ment. Another option is to consider pack Out-of-stocks lead to loss sales, disappoint- of the most perishable categories. size on slower-selling items. ed customers and plays havoc with scan Mark Hartwell, senior business analyst Joseph Salvo, president of Ponderosa data. for Giorgio Foods Inc., Blandon, PA, says Mushrooms, Port Coquitlam, British Colum- Pete Wilder, marketing director for To-Jo shrink can typically range from 4 to 12 per- bia, Canada, says removing older mush- Mushrooms, Avondale, PA, advocates price cent on better-selling items and 13 to 25 rooms from the display keeps everything promotion to decrease shrink. He says percent on slower-selling items. He says looking its best and, in turn, increases some customers look for a deep price pro- shrink on specialty items can run higher sales. He also recommends retailers with motion a couple of times a year,while oth- than 25 percent. Mike O’Brien, vice presi- delis, in-store kitchens or home meal re- ers look for slight price cuts more regularly. dent of sales and marketing for Monterey placement products offer more items using Retailers not only get a boost in sales with Mushrooms, Watsonville, CA, maintains cooked and prepared mushrooms. the promotion, but often times, maintain the shrink rate for a well-run produce de- O’Brien says alleviating shrink rate the increase afterward. partment typically runs between 6 and 8 comes down to following the basics. He “Shrink is on everyone’s mind,” says percent. offers three tips: maintain the cold chain Quintin Schroeder, vice president of Oak- How can retailers combat shrink? Hart- from farm to retail shelf; use the store’s shire Mushroom Farm, Kennett Square, PA. well says effective shrink management history and current trends to order appro- “Our target, of course, is no shrink.” pb
40 / APRIL 2017 / PRODUCE BUSINESS n ALLEVIATING SHRINK
PHOTO COURTESY OF TOJO MUSHROOMS
access to the right mushroom for their recipes and preferences, a variety should be o ered,” says Eger. “e various mushrooms o er a huge spectrum of avor and texture.”
BUILDING EXCITEMENT Joseph Salvo, president of Ponderosa Mush- rooms, Port Coquitlam, British Columbia, Canada, says, “A well-rounded display with lots of variety not only looks great, but builds excitement and generates more interest. is also encourages the consumer to try new vari- eties.” Hartman reminds retailers, however, that simple testing is valuable when it comes to determining space allocation and what vari- eties to carry. “If there are too many SKUs and not enough space, sales will be challenged. Retailers need to ask some key questions: Will the better-selling items have out-of-stocks since there isn’t enough room to stock them appropriately? Will the specialty items not have room on the shelf? SKUs and space are intricately linked, so sales-to-space ratios need to be part of the planning.” As interest in food has taken hold and the local food movement has grown, interest in mushroom varieties has as well — the white button mushroom is no longer the only mush- room consumers purchase. “Palates are much more sophisticated, ethnic food is far more prevalent and sought after. Variety is the key,” says Eger. Television chefs have become trendsetters, exposing the viewing audience to a variety of mushrooms and how to use them. “Because of television cooking shows, consumers are much more comfortable using mushrooms as part of their meals. eir knowledge and comfort level with specialty mushrooms also has increased,” says Oakshire Mushroom Farm’s Schroeder.
THE HEALTH CONSCIOUS In today’s health-conscious society, mush- rooms are an important protein for vege- tarian and vegan diets. ey also are great
PRODUCE BUSINESS / APRIL 2017 / 41 for low-carb diets and weight management. “It’s easy to play the health card when it comes to Research published in the January 2017 issue of the Journal of Medicinal Food suggests mush- mushrooms. They are a great whole food. They rooms can help stave o dementia. have everything you want in a produce item.” “It’s easy to play the health card when it comes to mushrooms,” says Oakshire Mush- — Quinton Schroeder, Oakshire Mushroom Farm room Farm’s Schroeder. “ey are a great whole food. ey have everything you want in a produce item.” to the sun’s ultraviolet rays, our bodies produce tional information and recipes, will increase Chef Eger says mushrooms have long been vitamin D; mushrooms do the same.” consumers’ knowledge. associated with health benets, dating back “Education is in everyone’s best interest,” more than 2,500 years to traditional Chinese MORE PROMOTION says Schroeder. “It’s an opportunity to increase medicine. While distributors generally praise the sales and create life-long customers.” “People want to eat healthy,” says Wilder. work of the Mushroom Council on touting O’Brien says education is needed to prompt “e National Mushroom Council has done the health benets of mushrooms through customers to use mushrooms, or more mush- a great job promoting the health benets of unprecedented coverage in mainstream media rooms, in the dishes they prepare. Mushrooms mushrooms.” and social media, most agree more work could have the advantage of possessing the nutri- One of Monterey Mushrooms larger be done. tional attributes of produce, as well as attri- marketing initiatives has been promoting the A recent national survey of 674 consumers butes more commonly found in meat, beans health benets of mushrooms with a particular by the University of Florida Institute of Food and grains. focus on vitamin D. “A 3-ounce serving of and Agricultural Science, Gainesville, FL, “e Blend” initiative is helping keep mush- our mushrooms provides the required daily revealed only 18.5 percent of respondents said rooms top of mind. “Mushrooms are coming allotment of vitamin D. If you’re running low, they knew the health benets of mushrooms. out of the dark. e demand should continue to the calcium you get from food doesn’t absorb Of course, part of the onus of educating increase as more consumers nd out about their properly, leading to thin and brittle bones,” consumers about mushrooms’ health bene- health benets, versatile usage and increasing says O’Brien. “e main source of vitamin D ts and versatility falls on retailers. Providing role as a part of balanced meals,” says Giorgio is exposure to sunlight. When we’re exposed educational materials, including nutri- Foods’ Hartwell. pb
42 / APRIL 2017 / PRODUCE BUSINESS Produce 4 Better.indd 1 3/16/17 10:35 PM he coming of Spring can be counted on for the birds heading north, baseball games and some of the best fruit from the Southern states being harvested for consumption. Te months of April, May and June are the perfect time for grocery retailers to spot- light their produce oerings, as some of the year’s freshest peaches, watermelons, blueber- ries, strawberries, tropicals and other popular Southern fruit oerings become available. Georgia has become a blueberry power- house. e state is now the largest East Coast producer, following Washington and Oregon. Georgia, South Carolina, North Carolina and other southern states ship ample supplies of fruits for spring promotions. Because southern fruit ships during two of the summer’s most important holidays, Memorial Day and Independence Day, the A TASTE OF THE SOUTH commodities work well in retail promotions, according to Greg Leger, president and owner The benefits of marketing its delicious fruit. of Leger & Son Inc., in Cordele, GA. Leger &
Son is a leading watermelon grower-shipper. BY K.D. LORIA & DOUG OHLEMEIER Adverse growing conditions, however, which include drought and heavy rains, can aect out about the products any way it can. the transition from Chilean production, which supplies. In South Carolina, watermelons and canta- typically begins winding down in March and Southern fruit remains a shopper favorite. loupes begin shipping in mid-June and are nishes by early April. Florida typically begins “Southern fruit is grown with heart,” says available throughout the summer. Blueberries harvesting by late March and early April, and Angela O’Neal-Chappell, director of sustain- and strawberries are also available through the usually nishes in late May. e Florida Blue- ability and marketing for Coosaw Farms, head- summer. According to Martin Eubanks, assis- berry Growers Association, Brooksville, FL, quartered in Fairfax, SC. “We’re a patchwork tant commissioner of agriculture for the South has reported early estimates on the season are quilt of farms, farming families and organi- Carolina Department of Agriculture, head- looking better than in 2015 and 2016. zations that are so dedicated to the land and quartered in Columbia, SC, some fruits require Al Finch, president of Florida Classic its ability to cultivate the purity of fruit,” she more attention in handling. “It’s important for Growers in Dundee, FL, says the upcoming says. “e consumer loves avor. We know it’s retailers to know where to hold the products southern fruit season is mixed, though he does embraced by the letters and emails we receive in the cool room or a room that’s not so cold foresee an overall strong season. “For blueber- from consumers letting us know our water- so the highest quality product is there on the ries, we had very light volume early because of melon label has been stuck to the refrigerator shelf for the consumer,” he says. e next step a weather event with very low temperatures, for 10 months, or they froze our blueberries, is stationing trained produce sta that can which is abnormal for mid-March,” he says. waiting all year for Coosaw Farms to be in answer consumer questions. “We look to get back into harvesting the blue- their local store again.” Peaches, for example, should be stored berries toward the third week of March. e Kevin Hardison, horticultural marketing above 50 degrees. If they are stored in outlook for the season is very good. Last year specialist for the North Carolina Department temperatures from 36 to 50 degrees, the fruit was our rst year of marketing blueberries. of Agriculture, Raleigh, NC, says people are will become mealy and lose its characteristic We should see volume of ve times what it looking for healthy and nutritious foods, and avor and texture. Because eastern canta- was last year.” many of the southern fruit products meet loupe is dierent from western cantaloupe, Florida production typically overlaps the this request. Still, he knows people like new if retailers store eastern cantaloupe in colder start of Georgia’s two seasons. e southern things, so not everything is about the “typical” areas, instead of the recommended storage at highbush production usually begins in mid- southern fruit people have come to expect. 57 to 58 degrees, the fruit won’t produce the to late April and nishes in late May. Rabbit “Growers are often looking for new varieties desired quality, says Eubanks. “You can take eye varieties begin in late May and nish so they can maximize the e¡ciency and the a good product and ruin it in a hurry just by in early July. South Carolina and North margins,” he says. “We help growers come up improper storage,” he says. Carolina usually start shipments in mid- to with marketing plans to succeed in the industry late-May. South Carolina generally nishes and nd new markets any way we can. We THE BLUEBERRY CROP by mid-June while North Carolina ends in also work with a wide variety of buyers and Florida is the rst domestic blueberry-pro- early- to mid-July. wholesalers.” ose eorts include advertising, ducing region of the spring. e state’s south, In South Carolina, Coosaw Farms will working on social media and getting the word central and northern growing regions serve as harvest Southern highbush blueberries
44 / APRIL 2017/ PRODUCE BUSINESS SC Department.indd 1 3/16/17 4:35 PM mid-April through mid-June, as well as water- Genuine Georgia Group, based in Macon, melons. Its location allows it to ship to a variety GA, says avor is king with today’s demanding of retail customers, says O’Neal-Chappell. customers. “Southern fruit is synonymous with “South Carolina is positioned in the middle sweet and summertime,” he says. “Georgia of a high concentration of growth,” she says. peaches generally kick o in late-May and “We can ship north, south and west from our are the perfect prelude into avor-lled farm and reach retail distribution centers with summer. Draw a line from west Texas up to truly fresh-picked avors to enjoy.” the Dakotas — any market from that line to the Eastern seaboard is the market for sweet JUST PEACHY Georgia peaches.” In the past, Georgia was the rst U.S.-pro- Titan Farms in Ridge Spring, SC, is one ducing region to begin peach harvesting. In of the largest East Coast peach grower-ship- recent years, new low-chill varieties have pers. South Carolina is the second-biggest helped Florida enter the March to mid-May fresh peach-producing state. “As a company, window, when peaches aren’t usually avail- we grow and ship more peaches than Georgia,” able after Chile begins lessening shipments says Daryl Johnson, vice president of sales and in March. Florida growers usually begin marketing. harvesting in mid- to late-March and nish Titan Farms’ upper south location allows by mid-May, ahead of Georgia’s typical mid- it to ship to customers throughout the East to late May commencement. South Carolina Coast. “We are able to ship to the East Coast usually begins later in May. Georgia production quickly and eciently thanks to our proximity, can run through mid-August, while South and therefore provide fresh peaches and better Carolina typically ends by late August and avor,” says Chalmers Carr, president and early September. Virginia and West Virginia chief executive. “All of our products are fully production begins in mid-July and also ends supported with marketing materials available by early September. to the retailer, which will help them in their Will McGehee, marketing director for the eorts to better market the fruit.” Georgia Peach Council and Pearson Farm’s is year will mark Florida Classic Growers’
46 / APRIL 2017 / PRODUCE BUSINESS seventh season of o ering tree-ripened peaches. “Couple your personal and commodity groups and the merchandising e company produces on 700 acres. According tools o ered through the states for on-trend to Finch, harvesting began in mid-March local grower stories with messaging with local heart.” and will soon hit promotable volume. “ese elements of the broader are ready-to-eat,” says Finch. “is is a true TROPICALS ON THE RISE free-ripened peach that consumers don’t have commodity groups and the Brooks Tropicals LLC, in Homestead, FL, to take home from the store and place on the merchandising tools of- grows and packs SlimCado avocados, caram- counter for three days to ripen.” bola, guava, passion fruit, lychee, dragon fruit, fered through the states for jack fruit, sapodilla, mamey and various other WATERMELONS ON A ROLL on-trend messaging with tropical fruits in South Florida. As many Georgia and Carolinas growers Peter M. Leifermann, sales and procure- begin watermelon harvesting from south and local heart.” ment director, says heirloom varieties and central Florida in mid- to late-April, May small, specialty crops are as sought-after as — Angela O’Neal-Chappell, Coosaw Farms is when bigger domestic volumes typically ever, while demand for full-avor, unique commence. In early June, Georgia usually starts varieties — not just regular availability — is harvesting and can overlap with north Florida strong and growing. “e South Florida region production, which begins by late May and runs the right place in the store. ” o ers a broad range of climates and growing through mid-June. Along with high-graphic bins, proper conditions,” he says. “By developing strong Retail displays and signage are critical signage on the bins aids in merchandising. relationships with southern grower-shippers, for e ective watermelon promotions. While Retailers should also consider promoting the retailers can pull from seven di erent USDA some retailers merchandise watermelons in liquid refreshment the fruit provides. “ey hardiness zones; the South o ers the only single bins, more innovative retailers display should have signage to promote the water- practical sub-tropical production.” the fruit in up to six bins. “ey dedicate melon and the hydration of the fruit,” says Because of their unique nature and the more oor space and more marketing to the Jordan Carter, Leger & Son’s director of sales maturing palate of the consumer, tropical fruits fruit,” says Leger & Son’s Leger. Along with and marketing. “Retail dietitians are trying to represent a hot commodity, says Leifermann. pumpkins, watermelons are one of the produce hit on the fact that with watermelons, it’s all Due to its ease of use, carambola is becoming department’s largest-sized fruit, and therefore, about hydration, which is a big selling point for mainstream and can be eaten out of hand. occupy more space. “While that may be one parents and kids, especially with the summer.” The somewhat limited availability of of the downfalls in produce, it can also be an Coosaw Farms’ O’Neal-Chappell recom- exotics, including lychee, passion fruit and opportunity to use that bin as a billboard,” says mends retailers take advantage of materials dragon fruit grabs consumers’ attention and Leger. “Watermelon is a billboard opportunity, provided by shippers. “Use your resources,” desire for something new. Brooks Tropicals which is the package. A high-graphic bin draws she advises. “Couple your personal and local is developing a Florida red guava and new consumers to at least take a look, if placed in grower stories with elements of the broader passion fruit varieties that Leifermann says
n MERCHANDISING MATTERS The Southern fruit season typically much about; now everyone loves them. loupes in August; and honeydews and starts in May and runs through February, I see dragon fruit and guava really taking cantaloupe in September. depending on the crop. Promotions can be off in this way.” “As a Southeastern retailer, we benefit found almost every month. Savvy retailers Maria Brous, director of community from the local relationships we’ve formed will make sure they are marketing the relations for Publix Super Markets Inc., over the decades and are proud to show- ripest fruit at peak times. in Lakewood, FL, says the retailer high- case our suppliers,” says Brous. “Fruit consumption is such an integral lights southern fruit offerings in its stores, North Carolina Department of Agricul- part of a healthy diet, but many consumers just as it does every season. “Publix ture’s Hardison says cross-promotion in don’t fully realize that sweet, ripe fruit can believes deeply in communicating with the store can also boost sales, and retailers be a delicious and nutritious dessert,” says its customers and associates about the should be creative. Leifermann. “A great tip for retailers is to importance of the seasonality of fruit,” “For strawberries, matching them with pair a variety of fruits with chocolate or she says. “This is achieved through our chocolate or champagne is always a great hazelnut dipping sauces, whipped cream program, ‘At Season’s Peak,’ which high- idea,” he says. “I’ve even seen strawber- and powdered sugar.” light the benefits of each fruit and its ries marketed with meats, so there’s really Carricarte notes sales of southern fruit optimal flavor profile.” no end to what retailers can do to help — especially tropicals — have increased Through the At Season’s Peak program, promote them.” due to retailers giving them a chance on Publix shares information in-store, on Of course, with unpredictable weather the shelves. “ radio and TV, and via digital advertising patterns, retailers need to be ready to act They are sampling the items and intro- for several southern fruits, including on a moment’s notice. That means having ducing customers to tastes they’ve never strawberries in February and March; mixed back-up plans for marketing items in case experienced before. It’s like mangos, berries in June; peaches and nectarines in certain items are not available when which 20 years ago no one really knew July and August; honeydews and canta- expected. pb
PRODUCE BUSINESS / APRIL 2017 / 47 will “really knock your socks o with their expects mangos, mamey, guava and dragon tioned for local promotions,” says Kulinski. taste.” e company is also continuing to plant fruit to have a good year. “Our growers can grow a variety of di erent its patented avocado varieties that will help it products. In Georgia Grown, the state has extend the Florida season into March. LOCAL INTEREST a great brand and high name recognition. Unity Groves, a grower, packer and shipper Most produce grown in Georgia is shipped Georgia is nationally renowned for peaches based in Homestead, FL, primarily deals in out of state, according to University of Georgia and Vidalia onions. It’s starting to spread that tropicals. Louie Carricarte, president and research cited by Matthew Kulinski, deputy recognition to items like blueberries, water- owner, says there has been an increasing director of marketing for the Georgia Depart- melons, corn and southern vegetables. We will interest in these fruits in the past year, which ment of Agriculture, Atlanta. “Most of the fresh start to see Georgia promoting its fruits and has helped his farm expand. “We do about fruits and vegetables leave the state because the vegetables more and more outside the state.” 150,000 bushels each year, but we’re expecting growers produce large volumes relative to the Local allows buyers to capture the essence closer to 300,000 this year,” he says. “Tropi- state’s population. Before July Fourth, Georgia of where they live, according to Coosaw Farms’ cals is our main product; the demand for the is one of the biggest watermelon-producing O’Neal-Chappell. South Carolina e ec- di erent fruits has really risen year to year.” regions that ships fruit to retailers throughout tively captures and communicates the state’s is year Carricarte expects avocados to the entire East Coast,” he says. edible aura through “Certied SC Grown” be a bumper crop, as early signs point to one Expanding interest in local produce also and “Fresh on the Menu” programs. Coosaw of its best growing seasons in years. He also helps move volume. “Georgia is uniquely posi- Farms features the Certied SC seal in packing
48 / APRIL 2017 / PRODUCE BUSINESS and labeling blueberries and watermelons, the best fruit lands on the shelf. retail customers are in Canada. However, it which then connects to its recognition in Coosaw Farms ships throughout the East often ships to retail customers in the Midwest; stores through the broad Certi ed SC Grown Coast. “While a concentration of distribution peaches can sometimes travel as far west as branding. e state’s marketing program also is the Southeast and Mid-Atlantic, our reach Denver. In the past few years, Titan Farms has includes roadside stands, chalkboard menus, is from north of New England to south of even exported peaches to Mexico. In 2015, the social media, as well as billboards and glossy Miami,” says O’Neal-Chappell. “Every season grower-shipper sent a large amount to Mexico, print materials. “You’re connected to a season, is di erent and dictated by supply needs.” but in 2016, it didn’t send as much. soil and climate in a culinary form,” she says. Leger & Son ships watermelon throughout Titan Farms remains one of a few the eastern U.S. and Canada, as well as North southeastern growers to have received EXPANDING DISTRIBUTION Dakota, Wisconsin, Missouri and Texas. governmental approval to ship to Mexico. While the primary distribution range for Depending on Texas and Arizona production, “e bene ts of being in the South and southern fruit growers remains the Southeast, the company often trucks loads to California. Mid-Atlantic is geography lends to quicker Northeast, eastern Midwest and Canada, most “Unless there’s a crop failure or issues in the arrival times, better quality, and less lead time growers will ship anywhere, including Southern West, we can go west to help out,” says Leger. for placing orders and receiving product,” says California and the Paci c Northwest. e way Titan Farms distributes peaches throughout Johnson. “It allows retailers to have quicker to be successful is to take post-harvest steps like the Southeast and Northeast, primarily east turns. In a nutshell, it enhances eciency of the hydro-cooling and other measures to ensure of the Mississippi River. Some of its leading job the buyer does.” pb
PRODUCE BUSINESS / APRIL 2017 / 49 PHOTO COURTESY OF AVOCADOS FROM MEXICO AT JEWELOSCO FRESH GUACAMOLE ELIMINATES GUESSWORK Convenience, health attributes helping to drive sales, consumption.
BY CAROL M. BAREUTHER
tart with a 700-year-old recipe rst concocted by the convenience remains important. ancient Aztecs in 14th century Mexico. en, add America’s is is a recipe that has fueled the rapid expansion of prepared insatiable demand for avocados, which has seen per capita guacamole in retail produce departments. After all, per a 2015 usage consumption grow from 3.2 pounds in 2004 to 7.0 pounds segmentation study by Avocados from Mexico, an Irving, TX-based in 2014, according to the USDA’s Economic Research marketing group, guacamole is the most frequent form in which SService. Finally, stir in shoppers’ need for convenience, a trend the avocados are eaten in the United States. NPD Group identied last year from its Eating Patterns in America “Guacamole is a good-selling item in produce,” says Richard Stiles, data, which showed while consumers value fresh and authentic foods, director of produce and oral for Redner’s Markets, a Reading, PA-chain
50 / APRIL 2017 / PRODUCE BUSINESS LPS 4 PB.indd 1 3/22/17 4:44 PM with 44 markets and 13 Quick Shoppes in “While the growth of the Hispanic population in the Pennsylvania, Maryland and Delaware. United States is a key factor in increasing demand for gua- Retail sales of prepared guacamole increased 22 percent in 2016 to $65 million camole, the target audience for prepared guacamole skews in annual sales, according to statistics provided by the Nielsen Perishables Group, Chicago. toward higher income, college educated consumers.” However, while this product represents a very — Jim Garsow, Good Foods Group LLC small portion of total produce sales, it did contribute to 4.6 percent of avocado category dollars last year. positioned to address both of these consumer extremely high water pressure rather than Two additional factors are driving prepared needs.” heat to kill potential food-borne bacteria, guacamole purchases. Jim Garsow, vice president of marketing for has enabled manufacturers to produce fresh First, “Inconsistency in the quality of fresh the Pleasant Prairie, WI-based Good Foods guacamole products. Since there is no high avocados has helped the expansion of prepared Group LLC, agrees. “While the growth of the temperature used, there is virtually no change guacamole,” says Jessica Brown, director of Hispanic population in the United States is a in product taste, texture or nutrient content. marketing for Yucatan Foods, L.P., in Los key factor in increasing demand for guacamole, Most importantly for guacamole, HPP Angeles, which markets its product under the the target audience for prepared guacamole halts browning. Fresherized Foods, head- Cabo Fresh brand. skews toward higher income, college educated quartered in Saginaw, TX, and a subsidiary Redner’s’ Stiles agrees. “Prepared guacamole consumers. Caucasians, age 25 to 44, are the of MegaMex Foods LLC, was among the takes the guesswork out of knowing when health-conscious consumers. is shopper rst to commercialize the HPP technology avocados are ripe.” group is interested in fresh, nutritious prepared more than 20 years ago. Today, the company Secondly, “we’ve noticed the rising popu- foods, with simple, clean, real ingredients, no markets its prepared guacamole under the larity of dips and a large increase in healthy preservatives and ready-to-eat convenience.” Wholly Guacamole brand. snack item consumption,” says Dionysios “Albertsons was our rst retail customer, Christou, vice president of marketing for Del GUAC TO GRABANDGO then Wal-Mart and Safeway, and the product Monte Fresh Produce, N.A., Inc., in Coral e advent of High Pressure Processing took o¡,” says Jay Alley, vice president of retail Gables, FL. “Prepared guacamole is ideally (HPP), a pasteurization method that uses sales.
52 / APRIL 2017 / PRODUCE BUSINESS and value-added veggies. 13-ounce tub with minimal labeling. “is “We have an 8-foot snack section in produce is the perfect solution for the ‘fresh-packed’ where we display items like mini carrots, celery experience without risk or cost. On the other hearts, Mann’s pre-cut vegetables and dips like hand, one of our best-sellers is our 2.5-ounce salsa and guacamole,” says Redner’s Stiles. “As individual single serve size. is item is avail- for the guacamole, we oer ve dierent types able in a 4-pack or 50-count bulk case for of manufacturer-made and our own in-store foodservice and individual sales,” says Kristyn prepared. Aside from avor, the best-sellers Lawson, vice president of retail sales. are the large package sizes.” To accommodate the variety of prod- Retailers are often trying to minimize the ucts available and a broad range of customer labor component in operations and for this demand, Fresherized Foods’ Alley suggests reason Good Foods Group launched a clear retailers create a 4-foot guacamole set in the
PHOTO COURTESY OF LITEHOUSE FOODS
Today, several companies oer prepared guacamole products for sale at retail. ese products have a shelf-life from date of pack that ranges from 30 to 90 days. “Our best-selling avor is Authentic, followed by Pico de Gallo and then Caliente,” says Ron Araiza, vice president of the foods division at Santa Paula, CA-based Calavo Growers Inc. e newest avor introduced by Good Foods Group is Spicy Guacamole, a combi- nation of jalapeno, serrano and black pepper. “Consumers are interested in more intense avors; this product delivers,” says Garsow, who also says the company’s Tableside Chunky Guacamole remains its agship seller. Green Chile Guacamole and Spicy Green Chile Guacamole are the two latest products produced by Hope Foods in Louisville, CO, which got its start as a hummus manufac- turer. e company also manufactures a spicy avocado hummus. Meanwhile, both Calavo and Fresherized Foods oer a guacamole avored with trendy Hatch chilies. Fresherized Foods’ newest products are layered dips. ese include Spicy Pico over Guacamole, Roasted Corn over Guacamole and Black Bean over Guacamole, each in 10-ounce tubs and marketed under the Wholly Guacamole brand. “ese add adventure and complexity to regular guacamole — just what Millennial customers are looking for,” says Alley.
CREATE A DESTINATION Each retailer has its own destination for guacamole. Some display in the deli with other dips, others in the meat department as a burger, burrito or fajita topping, while others build a category in the produce department next to refrigerated dips and dressings, as well as snack
PRODUCE BUSINESS / APRIL 2017 / 53 produce department. “Oer two to three SKUs of specic products and gain attention from of 8-ounce packs, four to ve SKUs of minis, consumers. Using consumer insights, we also two to three SKUs of 10-ouncers and either a establish category management programs to store-made or specialty avor like Hatch chili. help extend a retailer’s growth beyond industry If you only oer one to two SKUs, the product averages,” says Christou. will get lost on the shelf,” he says. Del Monte Fresh Produce, which markets BEYOND CHIPS its popular Classic Fresh Guac in 2-ounce Few people eat guacamole straight o a cups and 8-ounce trays, provides various spoon and with nothing else, says Will Burger, point-of-sale materials to support retailers in director of marketing for Hope Foods, Louis- their avocado and guacamole programs. “We ville, CO. “erefore, it’s important for retailers
promote display contests to encourage the sale PHOTO COURTESY OF DEL MONTE FRESH PRODUCE to build bridges or call out all the ways it can be used.” Del Monte’s Christou agrees. “Cross-pro- n MAKING GUAC INSTORE moting guacamole with chips, salads, sushi and vegetables such as celery, carrots and broc- The popularity of guacamole has led produce department, according to Richard coli are great ways to increase sales and gain many retailers nationwide to make this Stiles, director of produce and floral. consumer acknowledgment. Signage should creamy green dip in-store, according to In the Midwest, Jewel-Osco held a highly always inform consumers about the dierent Robb Bertels, vice president of marketing successful in-store avocado merchan- usage options and occasions for the product, for Mission Produce Inc., in Oxnard, CA. dising program in December 2016 through and recipe cards can be placed directly next to “Some use fruit that is over-ripe from their February 2017 for the Big Game season. the product to drive sales,” he says. displays for guac prep, while others have The Chicago-based retailer, which oper- Additionally, “Retailers can raise the visi- a more robust program where they source ates 186 stores in Illinois, Indiana and Iowa bility of their prepared guacamole by pairing fruit specifically.” and is one of the Boise, ID-based Albert- it with other complementary items on display One of these is Northgate Markets, sons Companies, worked with the Irving, for quick and easy snack or meal solutions, and a 41-store Hispanic retailer based in TX-based marketing group, Avocados from also promoting it in ads,” says Good Foods Anaheim, CA. Mexico (AFM), on the program. Group’s Garsow. “Two years ago, in one store we tested A big focus of the merchandising effort making guacamole fresh on the sales floor was focused on creating an in-store theater YEARROUND SALES and sampling it to customers,” says Produce by bringing fresh-made guacamole out Beyond day-to-day use, “we’ve seen that Director Alfonso Cano. “The success of this from the back room. The new refrigerated holidays and events are key drivers for increased type of action station follows the trend guacamole stations used for the program guacamole demand, as it’s a quick and easy we see in restaurant chains like Chipotle are now being tested in 17 Chicago-area dish that’s also a crowd pleaser,” says eresa and Subway of enabling consumers to stores. AFM is collaborating with CSSI, a Lindholm, assistant brand manager at Sand- customize. We can make it spicy, medium Chicago-based Fresh Food Culinary Innova- point, ID-headquartered Litehouse Foods, or mild — just the way they want it.” tion Group, to develop a complete program which introduced its Guacamole Herb Blend Cano says that the in-store guaca- that retailers will be able to follow from in 2016. For example, Americans consumed 8 mole program is part of Northgate’s recipe to execution. The program will be million pounds of guacamole for Super Bowl “Our Mexican Kitchen” or prepared foods ready to launch in September 2017. 2016, according to the California Avocado department rather than produce. However, “Customers have shared that in-store Commission. these action stations, placed in high- fresh guacamole brings a better margin Football season is a big time for guacamole traffic areas, are surrounded by displays and higher contributions to department sales. “at’s because men prefer to buy the — ranging in size from 2-by-2 to 4-by-4 — sales,” says Maggie Hall, AFM’s vice pres- product pre-made while women usually like of fresh produce items such as tomatoes, ident of trade and promotion. to make their own,” says Redner’s’ Stiles. cilantro and avocados. Other companies can also assist Retailers can best market to this audience “There are always those customers retailers in setting up an in-store-made by running various print and digital ads during who want to make guacamole from guac program. For example, in the past peak season and sporting events, setting up scratch. However, premade guacamole is five years, Concord Foods has provided its relevant in-store promotions and promoting an impulse purchase and a way to intro- dry mix in bulk to retailers interested in use on social media, suggests Del Monte’s duce the product to a new generation. This developing a turnkey store made guaca- Christou. ultimately increases our overall sales of mole program. Guacamole’s popularity isn’t limited to avocados since we pre-ripen the fruit and “Using our mix allows retailers to sports. ere’s an opportunity every month deliver to both departments of our stores.” have an easy-to-make and repeat recipe to tie in guacamole with a themed ad. For At Redner’s Markets, a Reading, which ensures consistency from store to example, “after the Super Bowl, there’s March PA-chain with 44 stores and 13 Quick store,” says Samantha McCaul, marketing Madness, a green theme for St. Patrick’s Day, Shoppes in Pennsylvania, Maryland and manager for the Brockton, MA-based Cinco de Mayo, graduation and Father’s Day Delaware, employees make guacamole company. “Since 2014, sales of our mix gatherings, July 4th picnics, back-to-school, fresh in the deli daily and also sell it in the have grown 73 percent.” pb Halloween parties and anksgiving. pb
54 / APRIL 2017 / PRODUCE BUSINESS Spring Grape Deal ExpectedTo Offer Superior Product Initial reports indicate weather has been perfect for growing grapes in Mexico and California.
BY BARRY SPARKS
PHOTO COURTESY OF GIUMARRA BROTHERS
rapes are on consumers’ minds. of time. Nogales, AZ, says his company will supply For more than a decade, grapes “We expect our earliest varieties out of grapes from May 8 through June 15. have joined apples and bananas, Mexico to start at the end of April or the Initial reports indicate the weather has been ranking in the top three of the beginning of May,” says Megan Schulz, director ideal for growing grapes in both Mexico and most popular fruit consumed. of communications for Giumarra Bros., Los California. Mexico’s harvest is on track to be GAccording to a study by the California Table Angeles. “Our season will conclude in June.” slightly ahead of California’s Coachella Valley. Grape Commission, Fresno, CA, 52 percent of John Pandol, director of special projects for One of the questions this time of year is: How grape shoppers in the United States purchase Pandol Bros., Delano, CA, says the desert grape will the end of the Chilean deal aect the at least once a week and 45 percent make the deal is a 10-week long deal loading the week beginning of the spring deal? Pandol says it’s decision to purchase before going to the store. of May 1 through the week of July 3, with the always unknown how much of the Chilean Although grapes are available year-round, most availability from May 25 through July 3. crop will be sent to the United States and spring grapes are particularly sought after Steve Yubeta, vice president of sales and how long shippers will try to hold it. He says because they are available for a short period marketing for Farmer’s Best International in most retailers switch to desert whites in the
PRODUCE BUSINESS / APRIL 2017 / 55 rst half of May and reds in the second half.
PROMOTABLE VOLUMES According to Schulz, volumes of spring grapes will be ample enough to oer promo- tional prices during a time when consumers are starting to gear up for summer travel and parties. “For Memorial Day, we will have promotable volumes of all three colors — red, green and black,” she says. Jason Fuller, sales manager for Sun World International, LLC, in Bakers eld, CA, says retailers should expect superior, high-quality grapes with promotable volumes. “e spring grape deal should generate lots of excitement.” Red seedless varieties are most popular with consumers. Schulz says consumers can be encouraged to purchase black seedless varieties if they are promoted alongside red and green varieties. It also helps if customers can sample the black seedless varieties. e three most popular grape varieties are Flame, Perlette and Sugraones. Flame and Perlette harvest in early May, while Sugraones harvest in late May. Each variety has unique characteristics. Flame is red, seedless, juicy and said to be the PHOTO COURTESY OF CALIFORNIA TABLE GRAPE COMMISSION sweetest of grapes. Perlettes are pale green, seedless, crisp, juicy and not as sweet as the Flames. Sugraones are pale green, seedless, sweet avor with a hint of Concord. Its esh is Pandol points to another factor: most vari- large and have just a hint of sweetness. juicy with tender skin. It’s available throughout eties are developed for temperate climates and Farmer’s Best has several early season vari- May into the beginning of June. not low-chill/no-chill climates like Mexico eties from Mexico. Early Sweet is a proprietary or Peru, so growers need time to adapt and variety. It is the earliest commercial green seed- MORE VARIETY AHEAD trial varieties. less variety out of Mexico, available at the end While there has not been a signi cant “e trend in retail is to nd better eating, of April. It has a creamy color, excellent eating inux of newer varieties, it is starting to change, more avorful fruit for consumers,” says Fuller. quality, and is durable in cold storage and according to Pandol. He says newer varieties “We are seeing new varieties being tested. Our transportation. Passion Fire is the company’s were not made available to most growers, or goal is to get the best fruit we can.” newest red seedless variety. It has large, crisp were available under commercial agreements Since spring grapes typically are in high berries and a cherry color. Its avor is described that were unattractive to growers. Even though demand, what size of displays is most eective? as “a sweet apple avor with high sugar.” It’s newer varieties are limited, Pandol estimates “A large, bountiful display with all three available in mid-May. Summer Royal is an up to 20 percent of the spring volume could colors of grapes will attract consumer atten- early season black seedless grape that has a be called newer varieties. tion,” says Schulz. “Research shows a signif- icant portion of grape sales are purchased on impulse, so the more eye-catching a grape display, the better. Display as many varieties as possible for the best result.” Yubeta believes the bigger the display the better. “We suggest three varieties so customers can choose from dierent grape tastes with a range of sweetness. Displays are more attractive when they have a lot to oer.”
MORE SPACE, BETTER SALES e more space you devote to grapes, the better your sales will be, according to research from the California Table Grape Commission. Research shows displays of more than 25 feet
PHOTO COURTESY OF FARMER’S BEST INTERNATIONAL can increase sales up to 63 percent.
56 / APRIL 2017 / PRODUCE BUSINESS “Creating a display with prefer California grapes over imported when Commission. the price is the same; 77 percent still prefer Grapes are extremely versatile. Ninety-two other kid-friendly snacks grapes from California over imported, even percent of consumers use them as a snack; 30 will encourage parents to when the price is higher. percent use them in a dessert, while 21 percent Ninety-nine percent of the commercially use them in a salad, according to the California buy grapes and put them in grown table grapes in the United States is Table Grape Commission. Other popular uses their kids’ school lunches.” grown in California. “e past three seasons include as an ingredient in a recipe, in a side have seen a total crop of more than 110 million dish and as an appetizer. — Steve Yubeta, Farmer’s Best International boxes, with the 2016 season setting a record crop value of $1.85 billion,” says Kathleen CROSSMERCHANDISING Nave, president of the California Table Grape Spring grapes’ versatility oers a number of Yubeta emphasizes the importance of displaying grapes in a way that maintains quality. Bags of grapes should be placed side by side and never stacked on top of each other. Also, it is important to keep grapes within a specic temperature range at all times. e quality can be altered and they can become damaged if there is a temperature change. “Displaying grapes to entice purchase is one of the most important things for retailers to consider for increasing California grape sales,” says Cindy Plummer, vice president of domestic marketing for the California Table Grape Commission. “Grapes are visually appealing and a beautiful display can increase sales. e display needs to be abundant and frequently refreshed.” Yubeta suggests retailers promote the spring grape harvest by featuring it in store newsletters, on store websites and on social media channels. Placing grape displays at the front of the produce section will also generate customer awareness. “Advertising California grapes is important to reach shoppers and drive trac to retail stores,” says Plummer. e California Table Grape Commission oers a number of promotion opportunities for retailers in the early part of the season. As of May, retailers can tag their store name onto trac radio ads for California grapes. Retail tagging opportunities in Food Network maga- zine ads and in online pre-roll video spots for California grapes will be available as of June. According to Plummer, 45 percent of grape purchases are impulse buys. “In-store promo- tions are equally as important as advertising, since most people shop with their eyes; it can be an eective way to support advertising and prompt impulse grape purchases,” says Plummer. Point-of-purchase materials for California grapes also are available to retailers throughout the season, including danglers, price cards and variety charts/training and merchandising guides. Recent California Table Grape Commis- sion research shows 96 percent of U.S. shoppers
PRODUCE BUSINESS / APRIL 2017 / 57 cross-merchandising opportunities. there’s room for improvement in a closer align- variety of pairings. For example, grapes with “Grapes are a convenient grab-and-go ment between the produce department and the bread and peanut butter suggest a quick sand- snack, and pairing them with other snack items cheese department.” wich. Grapes with bagged salads and salad like cheese and crackers, is a good option,” says Yubeta suggests putting cheese, wine and ingredients spark the idea of a lighter meal Giumarra Bros.’ Schulz. “For a sweet-and-sa- other fruits and nuts around a grape display as the days get warmer. Grapes with cheese vory party platter idea, pair grapes with wine to encourage shoppers to make a bountiful and wine provide the elements for an instant and other appetizer items, including cheese, cheese board. “Creating a display with other party. Displaying grapes with small individual nuts and antipasto.” kid-friendly snacks will encourage parents to containers and bags makes them more portable. “Grapes are a natural part of cheese plat- buy grapes and put them in their kids’ school When it comes to packaging, Fuller says ters,” says Sun World International’s Fuller. lunches,” he says. there has been little change from recent years. “While many retailers already feature the In addition to marketing grapes as a snack, He notes, however, there is a lot of interest in combination of grapes and cheese, I think the fruit can be cross-merchandised with a new packaging and dierent styles are being tested. Approximately 83 percent of California grapes sold in the United States is sold in bags. Of those, 90 percent are in pouch bags and the rest in zip-type bags, slider bags and non-sealable bags, according to the California Table Grape Commission. Fifteen percent sold in the United States are in clamshells. Pandol notes bags are going back to less rigid plastics, but are maintaining the tote form. He says there’s a wide range in regards to preference for graphics on the packaging — some prefer a lot of graphics and storytelling, while others prefer no graphics. Most, however, have modest graphics. Pandol recommends a sampling tray or bag of grapes, compiled from shatter. “is avoids customers from picking over bunches and leaving you with bunches that won’t be sold,” he says. “is promotes grapes and helps you to decrease shrink at the same time.” It’s important to emphasize spring grapes’ convenience and avor, while simultaneously promoting their health benets. Grapes are packed with nutrients and antioxidants, including vitamins B, C and K, copper, potassium and phytosterols. Grape skin contains resveratrol, a powerful antioxidant known to help ght breast, liver and colon cancers. Phytonutrients found in grapes may also help ght the u. Grapes also have been shown to have anti-inammatory benets and can help with the regulation of blood pressure. Grapes are fat-free, saturated fat-free, sodium free and cholesterol-free. While more than 90 percent of consumers think of grapes as an ideal snack, most don’t think to add them to a recipe. Consider sharing recipes, such as green grape smoothies; frozen yogurt pistachio-cov- ered frozen grapes; broccoli, bacon and grape salad; chicken salad with grapes and kale; and grape and blue cheese atbread. Retailers can boost their bottomline with the proper promotion of spring grapes. “Grapes are a trac driver in the produce department,” says Schulz. pb
58 / APRIL 2017 / PRODUCE BUSINESS Expanding varietal and product innovation amplifies opportunity. AUSTRALIA/ BY JODEAN ROBBINS hough known for apples and NEW ZEALAND: oranges, Australia and New Zealand provide even greater opportunity More Than Just Apples with expanding counter-seasonal oerings. Marketers maintain the Tcounter-seasonal nature of the region’s exports And Oranges is a crucial element for retail. “Australia and New Zealand’s opposite production seasons ensure stores get the best-tasting fruits of the season,” says Robert Schueller, director of public relations for Melis- sa’s Produce in Los Angeles. Products from Australia/New Zealand t in easily at Redner’s Markets in Reading, PA, with 44 stores. “It allows us to keep citrus, apples and other fruits consistently available as demanded by our customers,” says Richard Stiles, director of produce and oral. Karen Caplan, president and chief executive of Frieda’s Specialty Produce in Los Angeles, observes counter-seasonal produce makes merchandising easier for retailers since best- selling items are available year-round. e wide variety from Australia and New Zealand means “counter-season” may be broadly dened. “Depending on commodities, New Zealand’s harvest begins in December for stone fruit and ends with apples avail- able well into August,” says Jason Bushong, division manager of Giumarra Wenatchee in Wenatchee, WA. Supplying o-season makes for mutually benecial relationships, according to Mike Chapman, chief executive of Horticulture New Zealand in Wellington, New Zealand. “We
receive counter-seasonal fruit from the United PHOTO COURTESY OF GIUMARRA WENATCHEE States in our o-season,” he says. “is presents a great opportunity to work together.” In fact, Wayne Prowse, principal and senior of fresh fruit in 2016 worth US$17 million, sonality gives retailers the opportunity to oer analyst at Fresh Intelligence Consulting in which had declined from 40,000 tons in the fresh-crop apples in the spring and summer, Sydney, reports Australia is a net importer of past decade,” says Prowse. a welcome alternative to storage apples,” fresh fruit from the United States and in 2016, According to Horticulture New Zealand, says David Nelley, vice president, categories imported 45,000 tons worth US$110 million. the country’s horticultural exports to North for Oppy in Coquitlam, British Columbia, “Trade has doubled from 20,000 tons in 2006 America grew to NZ$176 million (about Canada. as grapes, summer fruit and cherries gained US$126 million) in 2015. Chapman a¡rms According to Prowse, apples and kiwi- access to the Australian market during the amazing growth is happening. “Our horti- fruit comprised 98 percent of the fresh fruit o-season,” he says. “New Zealand imported cultural exports between June 2014 and June exported by New Zealand in 2016. “e split 20,000 tons of fresh fruit, mostly citrus and 2016 grew 40 percent,” he says. between apples (70 percent) and kiwifruit (30 grapes, worth US$42 million in 2016.” percent) has changed little in the past decade,” Australia and New Zealand remain strong, WATCH THEM APPLES AND PEARS he says. consistent exporters of fresh fruit despite ups Apples and pears from New Zealand are Since the United States does not produce and downs. “Australia exported 10,000 tons available April through August. “Counter-sea- certain varieties in volume, Nelley notes New
PRODUCE BUSINESS / APRIL 2017 / 59 Zealand fruit keeps varieties such as Jazz and apples has evolved, allowing New Zealand to Envy on the shelf year-round. Oppy markets set itself apart from domestic U.S. and foreign Jazz, Envy and Royal Gala apples, along with growers by oering new varieties, alternate Taylor’s Gold pears. “e mix has changed mouth feels, creative avors, innovative pack- dramatically in the past decade, with newer aging and investment in natural shelf-life varieties taking space once dedicated to such extenders.” standards as Braeburn and Granny Smith,” PHOTO COURTESY OF MELISSA’S PRODUCE Retailers are encouraged to capitalize on says Nelley. innovations such as the Rocket apple. “is Oppy reports Jazz and Envy continue to to create enthusiasm for the category. “New apple is positioned as a snack item,” says perform superbly. “According to Fresh Look varieties stimulate consumer interest and sales,” Moore. “It’s all about consistency and size data, in 2016 Jazz ranked third among premium says Stiles. “Sales of basic varieties are down — a smaller apple with a longer shelf life and apples for sales dollars and Envy ranked fth,” and being taken over by these newer varieties.” packaged in a tube as an on-the-go snack.” says Nelley. “For the entire category, Jazz sat Sean Moore, head of primary food sector Giumarra expects special varietal apples, in 11th place and Envy at 14th.” North America for New Zealand Trade and such as Lemonade, and pears including New Zealand’s most recent apple export Enterprise (NZTE) in New York City, credits Angelys, to grow in popularity. “e Lemonade numbers evidence this performance. “Over the New Zealand’s success with its ability to adapt apple has a refreshing zzy avor with just the last year, the volume of apples going into the to changing U.S. demands for consistency in right amount of tartness,” says Bushong. “It United States has increased quite dramatically,” size, color, taste, texture and supply. is a rm, crisp apple with a golden-yellow says Chapman. “From 2015 to 2016, we saw “New Zealand’s produce companies are background and a beautiful orange blush.” an increase from 35,000 tons to 49,000 tons investing heavily in ensuring their product of apples. at’s massive growth for one year.” allows for similar uniformity across the market,” KIWI SUCCESS Retailers like Redner’s look to new varieties he says. “Over past years the product mix in Kiwi represents another staple and n TOP MERCHANDISING TIPS Marketers of fruit from Australia and New with demonstrations and appealing price next to lemons to make the orange color Zealand point to a few key elements for points — critical to the successful launch pop for a strong visual.” successful sales: of a new item. “Sampling creates enthusi- asm retailers can build on throughout the Connect With Customers Focus On Freshness season,” says Steve Woodyear-Smith, Oppy Consumers increasingly say they want Retailers are encouraged to plan the vice president, categories. to feel more connected to their food sourc- seasons by setting promotions around es. “Providing information about growers, freshness, country of origin and the Visible Displays sustainable practices, both environmental- best-eating fruit in-season. “Market fla- Building large displays to draw atten- ly and socially, and quality standards are vor and health,” says Jason Bushong, di- tion is crucial for any product, and market- ways to connect with consumers,” says vision manager of Giumarra Wenatchee ers confirm one reported barrier to greater Hughes. “Zespri offers custom-marketing in Wenatchee, WA. “Health is top of mind kiwi sales is that consumers cannot find programs for SunGold kiwifruit, including for consumers, but they also want to feed the product in-store. “Bigger displays to- in-store sampling, branded POS displays, their families delicious, unique foods. ward the front of the department are cru- ad circulars and more.” Robert Schueller, director of public rela- cial to help consumers find this nutritional Educating customers on the benefits tions for Melissa’s Produce in Los Angeles, powerhouse,” says Ben Hughes, regional of seasonality encourages the purchase. links retail desire for differentiation with market manager, India, Middle East, Afri- “Take the opportunity to point out count- use of items from Australia/New Zealand. ca and the Americas for Zespri in Newport er-seasonal apples and explain why they “These items allow a more unique offering Beach, CA. are fresh in spring and summer,” says Nel- versus what is available at the store across Woodyear-Smith suggests creating a ley. “There are times when imported ap- the street,” he says. destination display. “Don’t hide kiwifruit ples and pears simply offer a better eating in a wicker basket,” he says. “Experiment experience because they are fresher than Demo with bulk and packaged options to call the local.” Getting crispy, sweet, juicy fruit into fruit out on the shelf and price it attrac- people’s mouths at point-of-sale is a key tively.” Use Supplier Resources driver, according to David Nelley, vice pres- Likewise, visible displays also drive cit- Marketers provide support and informa- ident, categories, for Oppy in Coquitlam, rus sales. “Focusing on large bulk displays tion readily available for stores to use. Giu- British Columbia, Canada. “Give consumers of Australian Navels results in a real wow marra offers a variety of recipe and point- a taste of New Zealand when products hit factor by showing off color and cosmetic of-sale materials to promote New Zealand the shelves,” he says. “The fresh crop truly beauty,” says Jack Cannon, national ac- fruit, both digitally and at stores. Zespri differentiates itself in flavor and texture, counts manager, Australian sales team undertakes significant public relations and so sampling sets the stage for a successful leader for DNE, a division of Wonderful social media activities to create and sus- import season.” Citrus Packing LLC, in Ft. Pierce, FL. “Make tain consumer awareness for both the Sun- Zespri and Oppy support fruit at retail sure displays are full and perhaps placed Gold and Zespri Green kiwifruit. pb
60 / APRIL 2017 / PRODUCE BUSINESS expanding category for New Zealand, and According to DNE, a division of Wonderful between Clementine and Mandarin varieties. Chapman notes a massive year-over-year Citrus Packing LLC, in Fort Pierce, FL, the It is a welcome volume support for retailers growth from 11,000 tons in 2015 to 19,000 rst Australian citrus arrives in the United during this time period.” tons in 2016, exported to the United States. States the last week of June in the form of e region’s citrus oerings expand to new “Providing consumers with year-round supply Daisy tangerines. “On the back side of the items for the U.S. market with Meyer lemons of consistently top-quality kiwifruit is a key season, the Australian Mandarins also continue from July to October. “Meyer lemons have part of Zespri’s strategy,” says Ben Hughes, to increase in volume,” says Jack Cannon, been available from New Zealand for the last regional market manager, India, Middle East, national accounts manager, Australian sales three years,” says Melissa’s Schueller. “ey Africa and the Americas for Zespri in Newport team leader. “is item comes in during the are trending nicely because the product is in Beach, CA. “In the United States, Zespri kiwi- late August through September window when more demand, more available and starts three fruit from New Zealand is in season from May other summer citrus from Chile and South months before the U.S. domestic season.” to November.” Africa are in their varietal transition window Melissa’s imports blood oranges and Cara For the past 20 years, Zespri has managed sales and marketing programs for two varieties in North America: Zespri Green Kiwifruit, the company’s longstanding backbone product, and Zespri SunGold, its new gold variety. “SunGold kiwifruit was introduced in small quantities starting in 2013 with volume signi- cantly increasing year over year,” says Hughes. “SunGold is driving growth in the kiwifruit category in the United States by oering consumers a new kiwifruit with superior nutrition and a unique tropical-sweet taste.” Redner’s reports sales increasing for the SunGold. “is year sales have easily doubled versus last year,” says Stiles. Oppy markets Zespri Green and SunGold kiwifruit and reports the primary change in the kiwifruit category is the successful transition to SunGold. “Conventional and organic SunGold have performed very well since their introduction, achieving 70 percent growth in 2016 over the prior year,” says Steve Woodyear-Smith, vice president, categories, at Oppy. “Looking ahead, we expect a strong market for Zespri Green, especially this spring and summer.” According to Zespri, the kiwifruit cate- gory is on trend, boasting year-over-year sales increase of 8.2 percent compared to total fruit at 0.3 percent. “Zespri is on track for sales of more than 5 million trays of fruit this season, up more than 20 percent from sales last season,” says Hughes.
CITRUS EXPANSION Citrus — oranges and Mandarins — accounts for more than 98 percent of fruit exported from Australia to the United States, according to Prowse. “Australia’s supply peaked in 2007 at almost 40,000 tons, though it has faced increased competition from South Amer- ican suppliers with geographic and cost advan- tages,” he says. “Australian Navel oranges are well-known for superior quality and maintain steady supply of around 10,000 tons mostly to the U.S. West Coast areas from July to October when local Navel oranges are not available.”
PRODUCE BUSINESS / APRIL 2017 / 61 Caras in September from Australia. Frieda’s says Prowse of Fresh Intelligence Consulting. Frieda’s Caplan says Kensington Pride and reports more volume of both Meyer lemons “ese products should see strong growth in R2E2 Australian mangos have high color with from New Zealand and Cara Caras from the market in the next few years during a small silky-smooth texture and great avor. “is Australia than it did more than a decade ago. supply window from November to February.” is preferable over some of the North Amer- Melissa’s imports four types of Australian ican varieties,” she says. “When the avor TROPICAL TREASURES mangos during December through March. and appearance are so much better, often the Australia’s newfound U.S. access for mangos “e Australian mangos are new varieties not consumer will pay.” and lychees represents yet another growing available anywhere else, including Honey Gold, Schueller forecasts big opportunity for category from Down Under. “Although Kensington Pride and R2E2,” says Schueller. Australia with these avorful mangos. “is the volumes are below 100 tons, Australian “ese varieties are consistent with like vari- is a time when other imported mangos are exporters and U.S. importers see potential for eties from other popular growing regions in not as appealing to the U.S. consumer,” he these products in premium market sectors,” the U.S. market.” says. “Although Peru and eventually Mexican mangos are available during this window, Australian mangos oer a avor advantage to the typical imported mango at this season and time only, and are thus premium priced.”
AN EYE ON THE UNIQUE Retailers are encouraged to look to unique items available from Australia and New Zealand to build sales. Specialty houses such as Frieda’s and Melissa’s list passion fruit (from March to June), Kiwano melons (from February to May), feijoa (from March to June), tamarillo (from May to September), kiwiberries (March) and gs (March to April) among their increasing product oerings from the region. Schueller reports feijoas, imported from New Zealand for more than 20 years, are marketed to upscale retailers and those with Latin/Hispanic shoppers. “It’s a cousin to the guava, which is popular with this customer segment,” he says. Highland Park Market in Farmington, CT, with ve stores, carries a fair amount of exotics from New Zealand. “Items such as dragon fruit and lychee add variety and excitement to our department,” says Brian Gibbon, produce director. “Dragon fruit, when it hits its season, draws a lot of attention.” Cherries, passion fruit and strawberries are increasing in export volume, too, according to Horticulture New Zealand’s Chapman. “Good passion fruit is commanding a high price in the export market,” he says. Organic product is another rising trend. “New Zealand exports a lot of organic kiwi to the United States,” says Chapman. “Plans are to increase organic kiwi for export.” NZTE’s Moore credits New Zealand as constantly investing in innovation to serve evolving demands. “is includes creating natural solutions to extend shelf life, provision of year-round supply and alternative packaging formats. ere is also real opportunity from an R&D perspective to engage with buyers to focus specically on creating custom varieties with the retailer consumer base in mind.” pb
62 / APRIL 2017 / PRODUCE BUSINESS tomatoes merchandising review e Tomato Evolution
PHOTO ON LEFT COURTESY OF NATUREFRESH FARMS; PHOTO ON RIGHT COURTESY OF BACKYARD FARMS
For 20 years the category has “ is makes it a necessity for retail produce quadrupled in size and includes a relatively grown with state-of-the-art departments to have an assortment of high- complex variety of tomatoes.” ideas from seed to store — quality tomatoes available year-round,” he says. Another factor contributing to more year- innovating new varieties George’s Market at Dreshertown, an round choice has been the addition of newer upscale independent grocer in Dresher, PA, methods of growing. “ e most recent change while maintaining popularity has seen its tomato section evolve consid- in the tomato category has been a signi cant of the originals. erably in the past 20 years. “Back then, the shift to hot house, or protected agriculture entire tomato section was on an end cap,” says production, both with Mexico and domestic BY JANEL LEITNER Nancy Grace, produce manager. “Today, it has product,” says Christou. Consumer education plays another role, according to Jim DiMenna, chief executive of n the past two decades, the tomato Red Sun Farms, Kingsville, Ontario, Canada. category increased signi cantly in “Consumers have become more educated on sales, choice oerings and its impor- varieties, recipe applications, ethical growing tance to the produce department. standards, organic requirements and food “ e tomato category has safety practices,” he says. “ ese grown into a Top Five category higher standards result in the need in both sales and pro t for most for better communication from a Iretailers,” says Keith Cox, produce brand standard.” category manager for K-VA-T Food Stores in Abingdon, VA, VARIETY INFLUENCES SALES operating 132 stores. “In the last A focus on great-tasting variety will several years, the variety and the yield good returns. eating experience have continually “While some retailers may have 20 improved.” or more varieties or packaging choices, Dionysios Christou, vice presi- retailers should always stock tomatoes dent of marketing with Del Monte with good, consistent avor,” says Cox. “Have Fresh Produce Inc., in Coral Gables, FL, says tomatoes remain one of the most NatureFresh Farms’ TomBar allows shoppers to select up to 13 greenhouse-grown snacking tomatoes. consumed produce items in the United States. PHOTO COURTESY OF NATUREFRESH FARMS
PRODUCE BUSINESS / APRIL 2017 / 63 merchandising review tomatoes a slicing size, grape and Roma tomato, as these Farms International in Heathrow, FL. “On a tions or individually since they are used as three are at the top of most consumers’ needs.” prot-per-square-foot-basis, drive a higher either accent pieces to traditional recipes or NatureFresh Farms in Leamington, average with specialty items along with some as a decorative condiment for specialty dishes. Ontario, Canada, bears witness to the explo- standard items like tomatoes on the vine and “As these varieties become more mainstream, sion in the types of tomatoes oered. “ese beefsteak.” there will be demand to provide them in larger include red/yellow/orange grapes, red cherry, pack sizes,” says DiMenna. mixed medley, cocktails, beefsteak, tomatoes PRESENTATION AND PROMOTION Maglio cautions producers and buyers to on the vine, heirlooms and Romas,” says Chris e surge in variety has brought about make thoughtful choices on heirlooms. “While Veillon, director of marketing. “We’ve seen a more precise process in how each tomato they provide a diverse selection, it can be di- an evolution in the formats they are sold in, is promoted through packaging and display. cult for the consumer to identify what they like including bulk, cluster, clamshell, bag and top “Our cooking varieties — beefsteak, tomatoes and become a repeat purchaser,” he says. “My seal lm.” on the vine and Romas — are sold in larger suggestion is to focus on one or two varieties, Roma tomatoes continue to be the leading pack formats,” says DiMenna. and build a following for those. ey need variety from a tonnage standpoint and are Sam Maglio, president of Maglio Compa- to look similar to the mainstream products Number Two in dollars, according to Christou. nies in Milwaukee, suggests cross-promoting in order to be appealing. Zebra striped green “New varieties are being tested that bring more beefsteaks with the meat department. “ink and purple tomatoes don’t seem like tomatoes, avor and perform better based on usage,” about a small display outside of the produce and consumers can’t tell when they are ripe.” he says. department and keep it culled and stocked,” Cherry tomatoes may nd a special niche According to Lori Castillo, marketing he says. “e main display can be wide and with health-conscious Millennials. director for NS Brands Limited in San tall, but not deep — tomatoes do not like the “Merchandise cherry tomatoes to feature Antonio, when consumers go to the store, they pressure caused by the weight of tall piles.” high avor and as a healthy, portable snack typically purchase 1.1 tomatoes per trip. “We For tomatoes on the vine, Maglio recom- option,” says Kling. know what they really want are two tomatoes mends simplicity. “e vines’ aroma triggers Increased variety has also led to more pack- — a smaller size for salads and snacking, and thoughts of summer, so it’s important to not aging options. According to Rick Feighery, vice a larger size for sandwiches,” she says. tray and overwrap them,” says Maglio. “It is president of sales with Procacci Brothers Sales Jim Darroch, director of marketing with tempting to reduce the shrink from handling, Corp., Philadelphia, packaging has changed Backyard Farms in Madison, ME, recommends but this is one item that needs to provide considerably in the past 20 years in providing ordering based on customer feedback. “It’s not sensory stimulation.” options to consumers. “Today, the increased easy to nd time to ask customers what they Maglio says large displays of plum toma- displays of clamshells, overwrap trays and bags want, but it’s incredibly important,” he says. toes increase sales. “is is a meaty variety add value to customers,” he says. “In many Eric T. Janke, vice president and chief and can withstand the stacking, so pile high departments, about 70 percent of produce operating ocer of DiMare Fresh Inc., Fort and cross-merchandise with peppers, onions items are prepackaged in some fashion.” Worth, TX, agrees retailers should cater to and avocados for a fresh pico de gallo. In late Consumer-friendly packaging draws atten- their audience to increase sales. “Variety has summer, local supplies of plum become the tion to smaller varieties and their specic appli- more of an impact on a regional basis versus a perfect ingredient for canning.” cation. “Snacking varieties such as Monarch national basis based on demographics,” he says. Appearance and presentation are important Pearls, Scarlet Pearls and organic grapes are George’s Market at Dreshertown uses when promoting specialty tomatoes. Red Sun sold in pack sizes geared for sharing and variety to spike customer interest. “Some of Farm’s heirlooms and its proprietary Cocoa snacking,” says Red Sun Farms’ DiMenna. our basic varieties are tomatoes on the vine, Tomato are sold in smaller pack congura- Packaging designed to appeal to the beefsteaks and, of course, grape and Compari,” health-conscious consumer promotes usage. says Grace. “When local Jersey tomatoes are “Our Bon Bon grape tomatoes are excep- available, they are the superstars.” tionally sweet and come in a 5.5-ounce grab- K-VA-T Food Stores maintains a good and-go cup for the on-the-go consumer and variety, yet keeps consumer dierentiation in a patented re-sealable snacking bag,” says Del taste and usage in mind. “A retailer may not sell Monte Fresh’s Christou. a large volume of green tomatoes, for example,” says Cox. “Yet, they must be in stock for that DISPLAY, CONNECT, SELL special recipe the consumer may have.” A protable connection with the consumer Sometimes too many varieties can over- starts with a good display. “e racks and whelm consumers. “is prevents the required displays we provide retailers to aid in merchan- turn rates to ensure the freshest possible dising eorts can help increase sales nearly produce being oered,” says Red Sun Farms’ 30 percent,” says NS Brands’ Castillo. “We DiMenna. “Each retailer carefully balances also provide promotional shippers and POS available varieties with retail space and their materials.” target market needs.” K-VA-T Food Stores’ Cox says a secondary Variety also helps the retailer in price. “It is display is a must to drive tomato sales and imperative to carry several options to vary price prot. “Change out the tomato weekly to point, “says Douglas Kling, senior vice pres- promote each variety, since many times this will ident and chief marketing ocer for Village be an impulse buy for the consumer,” says Cox.
64 / APRIL 2017 / PRODUCE BUSINESS Wholesumm.indd 1 3/16/17 4:36 PM merchandising review tomatoes
Maglio recommends retailers acquire half- pint units if possible. “ese can be placed at the checkout in lieu of the traditional candy bars, and retail for 99 cents,” he says. George’s Market at Dreshertown empha- sizes the importance of diverse sizes in its produce section. “Beautiful packaging of smaller tomatoes, such as Compari, Constel- lation and Cherubs to name a few, adds dimen- sion to our display,” says Grace. For smaller variety tomatoes, Backyard Farms’ Darroch recommends good product placement. “Put the packaging to work by stacking cocktail varieties vertically so consumers see the product and recognize the branding.” To further consumer connection, Christou job of this by placing large recipe cards with as they connect with consumers. recommends using point-of-sale material and photos of other ingredient products at the “is has contributed to the demand for recipe guides to enhance tomato displays. point of sale,” says Darroch. specialty varieties,” says DiMenna. “Online “Retailers may place small signage around George’s Market at Dreshertown creates recipe resources also add credibility to the the product describing the health benets, displays using sight and smell. “Heirlooms brand, as consumers will more likely purchase nutritional information and proper handling and heirloom grape/cherry varieties add color; a brand they are aware of, follow and trust.” instructions,” he says. when avocados are added for a color break, it Proccaci Brothers’ Feighery agrees these Helping busy consumers solve meal prep helps drive sales on both avocados and toma- formats have been a contributing factor. “We’ve challenges is a great way to build loyalty while toes,” says Grace. “Add basil for an amazing seen an increase in demand for specialty vari- increasing the sale of complementary products. aromatic eect.” eties due in part to online recipes and popular “Hannaford Supermarkets is doing a great TV, Pinterest and Facebook drive demand television cooking shows,” he says.
66 / APRIL 2017 / PRODUCE BUSINESS Focusing on origin and sustainability also grape tomatoes,” says Veillon. “ey can take right doesn’t happen in a day, so we are verti- promotes consumer connection. Village Farms’ as few or as much as they want of any of their cally integrated, controlling everything from Kling recommends using POS featuring fresh, favorite red, yellow or orange snacking toma- seed to shelf.” healthy photos of farms and families enjoying toes.” Successful tomato sales begin with the product. “Strong features on environmental Advertising campaigns are eective in seed. Backyard Farms has breeders trying farms with sustainable characteristics attract highlighting tomatoes. NS Brands’ Castillo to nd the next best-tasting tomato. “ese attention based on the dynamics of ‘where is says campaigns showcasing good quality from days, the emphasis is on small snacking and my food coming from,’” he says. “People want the beginning can be a signicant promoting mixed medley grape tomato packs, including to know where their product is coming from tool. “While ‘Tomatoes Raised Right’ is our mini Heirloom and mini San Marzano vari- and what growing partners oer that appeal.” newest campaign, it’s all about our company’s eties,” says Darroch. “ese are on-trend, niche DiMare Fresh’s Janke agrees developing a philosophy of growing our tomatoes from start items that are great complements to in-store link between the consumer and product origin to nish,” says Castillo. “Raising something education campaigns on healthy eating and builds business. “Many types of tomatoes are based on regional ‘locally grown’ programs,” he says. Lucky Lee, vice president of sales for Lucky’s Real Tomatoes in Brooklyn, NY, sees the focus on local only getting stronger. “For many Americans, outside of their local growing season, that means ‘grown in the USA,’” she says. “Consumers will always continue to look for that summertime avor, most often found in their local eld-grown, seasonal tomatoes.”
INNOVATIVE IDEAS Innovative merchandising ideas create enthusiasm not only for the category, but for the customer as well. “Based on feedback we heard during a ‘Meet Your Produce Manager’ breakout session at the 2015 PMA Fresh Summit in Atlanta, we developed a 360-degree merchandiser allowing produce teams to display all our products simultaneously,” says Backyard Farms’ Darroch. “ey are portable enough to set up for key tomato-buying events like the Super Bowl or Cinco de Mayo, yet durable enough to live in the department for months at a time.” NatureFresh Farms launched two new tools in 2016 — the TomBar and the TomBall Machine —to help increase fresh produce consumption and reduce food waste, and engage consumers while delivering choice, quality and value. e TomBar is set up like a self-serve salad bar and oers up to 13 greenhouse-grown snacking tomatoes. “Hand-selected by the consumer, they can take as many dierent types as they like, or as few as they need,” says Veillon. e TomBall Machine is based on the same concept as the gumball machine and oers a self-serve solution for consumers to select the quantity and type of grape tomato they want. Consumers hand-pack the toma- toes in the TomBox, a container similar to a Chinese takeout container and made from 100 percent recycled board. Waste is reduced because consumers select only what they want. “Consumers can mix and match their favorite
PRODUCE BUSINESS / APRIL 2017 / 67 merchandising review tomatoes snacking.” the tomato, permanently altering the avor,” Procacci Brothers credits good avor “Narrowing product he says. “Warehousing and transportation tend with consistent work on a good seed. “Most oering can help reduce to be the critical points of loss. Trucks typically of the tomatoes we grow are from our own have three temperatures: frozen (0 degrees), seed company,” says Feighery. “Our varieties shrink via higher-quality refrigerated (38 degrees) and ambient (0 to provide a consistent avor prole year-round items or locally grown 100 degrees). None of those temperatures are from multiple growing locations. Our research ideal for tomatoes, but they end up in the and development team works diligently year- items with signicantly refrigerated compartment wrapped up to help round searching for new tomato varieties that protect them. Sometimes it works, sometimes oer the same characteristic.” less food miles.” it doesn’t.” New varieties have the potential to accel- — Chris Veillon, NatureFresh Farms Christou advises storing between 55 and erate sales in the category. According to Village 60 degrees. “It is important to promptly place Farms’ Kling, the company’s Heavenly Villagio them in unrefrigerated displays or storage to Marzano (exclusive Mini San Marzano) receiving, retailers should inspect product dates avoid extreme temperatures,” he says. “It’s continues to build equity with consumers based and product package integrity upon arrival,” important for retailers to educate and train on strong avor, great mouthfeel and a shelf he says. “Tomato inventories should also produce department employees to prevent and life in excess of 21 days. “In addition, our True be checked and product rotation should be correct handling mistakes.” Rebel Mix Medley continues to grow based on managed constantly to ensure FIFO (First Retailers concerned with minimizing risk strong consumer appeal for new items, color In, First Out).” of shrink will maximize prots. “is can be variety and avor,” says Kling. At the end of the day though, Backyard achieved by procuring quality produce with the Farms’ Darroch says it’s all about produce freshest possible shelf life, as well as oering AVOID MISTAKES managers keeping their stas trained. “ey enough diversity in the category to meet Regardless of innovation and marketing, must stay on top of product rotation and not consumer demands while avoiding saturation,” basic handling and quality issues are the foun- overstack the product,” he says. says Red Sun Farms’ DiMenna. “e best way dation of a good tomato program. Del Monte’s Maglio notes the challenge of refrigeration to avoid this is with good management from Christou recommends several components and transportation on tomato avor. “Once the seed to the store.” retailers should follow and maintain to ensure that tender piece of fruit goes below 50 degrees, DiMare Fresh’s Janke recommends tomatoes are kept at their best. “Starting with irreversible chemical changes happen within larger displays by variety, consistent rota- tion, improved quality and freshness to turn inventory. “Competitive retail pricing also sells product faster,” he says. Keith Cox of K-VA-T Food Stores says certain retailers will move more or less volume. “Each retailer must nd that magic number to keep the momentum going,” he says. Packaging also plays a role in keeping product fresh and attractive. “ere is increased desire for a guaranteed ‘best if used by’ date on products,” says NS Brands’ Castillo. “e ability to guarantee fresh, tasty and convenient products is important in driving retail sales.” Cox believes packaged tomatoes may not be as sensitive as loose tomatoes in some instances. “Some consumers don’t have, or take the time, to pick out tomatoes individually,” he says. Market proximity may help ensure quality and shelf-life as well. “Narrowing product oering can help reduce shrink via higher-quality items or locally grown items with signicantly less food miles,” says NatureFresh’s Veillon. Lucky’s Real Tomatoes distributes through its Brooklyn, NY, facility strategically located close to its Northeast customer base. “Our Tasti-Lee tomatoes are packaged on-de- mand in our facility, enabling us to deliver fresher product and extending shelf life for our customers,” says Lee. pb
68 / APRIL 2017 / PRODUCE BUSINESS sweet onions merchandising review Sweet Onions’ Smell Of Success
FROM LEFT TO RIGHT: PHOTOS COURTESY OF PERI & SONS, KEYSTONE AND POTANDON
There is plenty of opportuni- produced most of the year. In mid- to late Bakers eld, CA. ty for increased movement March, Texas kicks-o mainland domestic “Retailers report the category is expe- and sales. Recognize the production, which usually runs through riencing sales increases. is is despite the importance of the category, mid-May. Georgia’s Vidalias typically begin in product always being an anity to something mid- to late April and via storage, ship through else — never a snack item, a side dish or a desti- promote correctly and watch late August and into early September. In the nation item — which makes merchandising sales soar. Paci c Northwest, Washington’s Walla Walla challenging. Conversely, onions are low-shrink sweet onions start harvesting in mid-June and compared to higher shrink items like berries BY DOUG OHLEMEIER ends by late August. Other production orig- and cut fruit, and represent a category oering inates from Hawaii (mid-February through high-margin sales,” says Scott Tyo, category late fall), California (late spring through fall), business manager for vegetables for Tops he arrival of spring signals the New Mexico (in the summer), Colorado (late Friendly Markets in Williamsville, NY. commencement of larger and summer and fall) and Nevada (late August Creative promoting through theme displays more signi cant sweet onion to the start of the year). Oshore production and ads helps increase sales. “We nd when promotions. Retailers can commences in early September in Peru and we pair them with something, it works well,” erect impressive displays with usually begins winding down in February, says Tyo. Examples include teaming the onions signage and point-of-sale materials to help before Mexico’s harvesting starts in the middle in chili displays with ground beef, and meal increase sweet onion sales and expand the of the month and ships through March. Chile, deals where shoppers receive a free sweet onion landscapeT of the category year-round. Ecuador and Guatemala also produce sweet with a protein purchase. Merchandising sweet Whether originating from Mexico, Texas, onions. onions with green peppers provides consumers Georgia, Washington, Central America or According to Chicago-based Nielsen half the ingredients needed for stir fry meals. Peru, growers produce and ship volumes year- Fresh, sweet onions account for the second- round that require eective promotions. In largest share of total onion sales behind yellow CROSSPROMOTION SUCCESS recent years, sweet onion demand has steadily onions. e average store sells $435 in sweet Sweet onions can be eectively cross-pro- increased. To meet higher demand, many onions each week, and the category constitutes moted in nearly any vegetable display. ey retailers merchandise sweet onions in bulk or 27 percent of total onion sales. In terms of can be paired with carrots, summer squash loose jumbos, in consumer bags of mediums, as department volume, onions are second only to for grilling, with salad displays featuring salad well as through end caps, stand-alone displays potatoes. e overall onion category represents dressings and croutons, and with potatoes, and through displays that cross-merchandise 7.2 percent of retail vegetable sales. It is fourth where customers buying potatoes can also the vegetable with other vegetables, meats and in sales behind lettuce, tomatoes and potatoes, receive a free bag of sweet onions versus only other products in the stores. up 4.8 percent in 2016 compared to 2015, buy-one-get-one-free onions. In the United States, sweet onions are according to data from Gruszka Consulting, “Sweet onions are a great item to merchan-
PRODUCE BUSINESS / APRIL 2017 / 69 merchandising review sweet onions
dise,” says Tyo. “ey’re very exible; they go achieve sales success. “e category has had a with nearly anything. When looking to oer tremendous amount of attention in the past, some heavy deep promotions on salads, you can but recently, it has gone on autopilot with some add sweet onions to help drive margins up.” retailers,” says Matt Curry, president of Curry Cross-merchandising is important as & Co., based in Brooks, OR. “With some retailers need to help shoppers searching attention, retailers could drive more volume.” for meal ideas. Sweet onions can be placed Curry blames personnel changes, which nearly anywhere in the store, including next pushed the category to the back burner as to cooking oils, cooking wines and our mixes personnel became re-educated about other for those desiring to make deep fried onion commodities thrown at them. “It’s more a petals. “e thing about sweet onions is, they people issue than a product issue,” he says. transcend all dierent types of customers,” “ere are other commodities that steal time says Teri Miller, senior category manager at from people who are new. In general, there e Fresh Market, based in Greensboro, NC. is plenty of product. You have to choose to “Not every customer is the same. You have PHOTO COURTESY OF BLAND FARMS LLC promote them or not. e only way you can to understand that and merchandise to their drive lift is through ads.” needs. at will be what drives you. You can’t grano onions in Mexico, Texas and the West. As sweet onions represent a premium drive the customer; they need to drive you.” As yields are becoming closer to the globes, product, merchandisers should market them Regular promotions are necessary as shop- Bland Farms is increasing its Mexican at as such in displays larger than regular onion pers can become oblivious to produce aisle onion plantings. displays. “Merchandising through appro- products when merchandised in the same area “e dierent growing regions produce priate displays and during optimal promo- all the time. Retailers should position sweet varying avor proles, with some tending to tional periods could help increase movement,” onions in end cap displays or in bowls near taste sweeter,” says Jarrod Snider, director of says Curry. “It’s not some crazy science we’re meat counters. During the summer, sweet sales for Richter and Co. Inc., Charlotte, NC. trying to accomplish. As the highest margin onions are ideal in small outdoor displays, While imported sweet onions are not at retail is in the sweets, how you get eyeballs which prompt shoppers to purchase grilling usually merchandised any dierently from is by grabbing attention. e way to do that items, says Miller. e product can also be domestic, retailers don’t promote the oshore is through displays. If you compartmentalize merchandised with carrots, potatoes and salads. product as much as the U.S. season. With them between the whites and reds, one’s eyes According to Nielsen Fresh, baskets fewer outdoor grilling events, fall and winter will go over versus toward them.” containing sweet onions are about 40 percent demand is typically smaller than spring and Because sweet onions aren’t a sexy larger than those without. Shoppers who summer. “Shelf space, therefore, is generally commodity and are available throughout the purchase sweet onions are more likely to reduced compared to the Vidalia deal, which year, retailers don’t see big inuxes of shoppers purchase tomatoes, potatoes, peppers, mush- hits Memorial Day, Independence Day and seeking them. “e loss of seasonality could rooms, squash and celery. Labor Day promotional windows,” says Snider. have caused a slight sales decline, which made Shuman Produce Inc., Reidsville, GA, While spring and summer see expansive for easy ignoring,” says Derrell Kelso Jr., presi- provides retailers large display units, as well as promotions, the popularity of sweet onions is dent of Onions Etc., a division of Farmington smaller secondary display units for promoting prompting suppliers and retailers to consider Fresh Sales, in Stockton, CA. “You have to sweet onions outside the produce department new ways to promote during fall and winter. always be investing in it and working on them. during peak season and holidays. e smaller e Vidalia identity retailers market disap- You can’t just put them on the shelves.” units work well in meat departments during pears when the deal ends. According to Brian As sweet onions are no longer an “event,” grilling season and feature seasonal recipes Stanley, sales manager of Generation Farms, suppliers and merchandisers must work to and images of onions in the eld. Shuman Lake Park, GA, oshore sweets are typically nd eating events, including Passover and Produce also recommends placing sweet onions generically merchandised as sweet onions. Fourth of July, to couple onions in ads with in the center of the produce department to “Retailers should erect better displays during other items, including herbs like tarragon. highlight their versatility and importance. “By the o-season. During the fall and winter, we Another non-sexy item that rarely sees large creating displays using bags, bins and boxes need to work on some things. Consumption ads, herbs partner well with onions and add that complement each other and feature the would be down a bit during those periods, but spice, making food taste better. Retailers like product in bright, colorful imagery, retailers we could improve during those times,” says to tell shoppers how to use herbs, which easily can draw shoppers’ eyes,” says John Shuman, Stanley. “We have to gure out how to get spoil and are quickly discarded. By teaming president. people excited about sweet onions during other them with sweet onions, a retailer could see times of the year, like during the Super Bowl.” improved sales. Merchandisers should promote VARIETY DIFFERENCES at can be done through display contests, sweet onions at least once per quarter. Ads and Because they were developed with the same circulars, newsletters and concentrating more displays should shower attention on avor. seeds and fertilizer practices, Peruvian onions on social media. During the winter, merchan- are nearly identical in taste and appearance disers can focus on signage and erecting large KEEPING IT FRESH to Vidalias, says Delbert Bland, president of displays promoting sweet onions merchandised Cross-merchandising can help retailers Bland Farms LLC, Glennville, GA. ose with soups and winter cooking recipes. keep the category fresh. End cap displays growing regions produce at granex-style Many retailers aren’t paying close attention send messages, but end caps displaying sweet onions compared to the round, globe-shaped to the category, which requires coordination to onions with sweet corn and other seasonal
70 / APRIL 2017 / PRODUCE BUSINESS Shuman F-P.indd 1 3/21/17 12:42 PM merchandising review sweet onions
summer produce items send larger messages important. Having enough promotional space that shoppers can do more with sweet onions is critical to getting the message out. ey need than conventional onion usage. “You can drive to take advantage of point-of-sale material to extra value by planting ideas in consumers’ market the graphic bins full of consumer bags.” minds about usage ideas,” says Ralph Schwartz, vice president of marketing, sales and innova- SPRINGTIME SENSATION tion for Potandon Produce LLC, headquar- Because Vidalia onions have become a tered in Idaho Falls, ID. “Placing sweet onions well-known brand, the start of the season has near grocery products, including sauces and become a springtime event in the produce processed sweet onion items, helps expand department. To announce the season’s start, consumers’ understanding of sweet onions.” retailers erect large displays of high-graphic One way Richter attempts to keep the cate- bins and secondary displays. e commence- gory fresh is through providing new types of ment of Georgia sweet onions not only drives stock-keeping units, including sweet Georgia Vidalia sales, but also increases sweet onion red onions, as well as packaging alternatives category sales, according to Susan Waters, to the traditional ways onions are marketed executive director of the Vidalia Onion through bags and bulk. “Generating interest Committee (VOC), based in Vidalia, GA. is important,” says Snider. “ e last thing you e VOC recommends retailers cross-pro- want is category stagnation. It’s easy to do on mote Vidalias with related items, including items traditionally sold as bulk, like cabbage. tomatoes, packaged salads, cucumbers and Cross-promoting helps keep them fresh.” avocados. e committee provides retailers Snider encourages retailers to use graphics a variety of recipes to feature in displays or and point-of-sale materials to create excite- online. Retailers recognize the appeal of sweet ment and help educate shoppers. “Retailers onions and build merchandising displays that need to make sure they’re promoting aggres- include key varieties, bulk and packaged onions. sively during those key windows,” he says. To provide shoppers choices, the VOC advises “ e month of May is huge. ey need to retailers to merchandise sweet onions in bulk be building large displays, which is the most and in 2-, 3- and 5-pound bags in the same
72 / APRIL 2017 / PRODUCE BUSINESS Vidalia Onion F-P.indd 1 3/24/17 2:48 PM merchandising review sweet onions section. It recommends retailers place Vidalias with recipes and get them excited.” in secondary displays in other areas of the store “Displays fuel sales. Demos do well in club stores, while many to cross-promote the onions with burgers, buns Sweet onions should be grocery stores don’t have enough personnel and related grilling accessories. and capacity to conduct them. “When we talk “Our research shows there is tremendous merchandised alongside about merchandising space, we are not really power in the brand. ey appeal to a broad complementary products competing with other onions as much as with cross-section of consumer demographics, with other items — the strawberries and bananas 91 percent of consumers familiar with Vidalia that draw consumers in taking up space,” says Bland. “Retailers who onions,” says Waters. “During the Vidalia try to blend yellow onions with sweet onions season, Vidalias account for 62 percent of and raise the ring at the in displays to improve margins can harm sweet sweet onion sales, 22 percent of total onion register.” onion sales, he says. dollars sales and outpace the growth of sweet and other onion varieties.” — John Shuman, Shuman Produce Inc. DEMO OPPORTUNITIES More than merely posting signs, retail Retailers should conduct demos at the start produce department managers should ensure of the season, during promotional periods signage is accurate. Kim Reddin, director of to create a clear distinction between them and and store grand openings. Demos help create public and industry relations for the National the yellow and Spanish onions. Proper signage excitement in the produce department and Onion Association (NOA), Greeley, CO, says and high-graphic packaging also help separate can solidify a retailer’s position as the ideal she once saw signs marketing storage onions as sweets. Retailers should state the onions are local grocery store for produce. “Displays fuel Walla Walla onions in December, long after the sweet onions and that shoppers will experience sales. Sweet onions should be merchandised Washington season had ended. “Sometimes, a mild avor.” alongside complementary products that draw things are on auto pilot in the stores. A lot of consumers in and raise the ring at the register,” sweet onions are sought after by name. It’s easy MERCHANDISING TO MILLENNIALS says Shuman Produce’s Shuman. to be complacent when it’s important not to be. Many Millennials aren’t familiar with Working with suppliers to provide innova- ough it’s not as apparent with some items as onions. Sweet potatoes and sweet onions make tive pack sizes can also help. “You have to keep others, onions need that extra eort. If you’re a strong combination for Millennial shoppers it exciting and give shoppers an option every calling out a specic location and it changes, because both are healthy foods. Sweet onions week,” says Tops’ Tyo. “ose weeks where we make sure the signs are also changing and are can be eectively merchandised in the meat pair sweet onions with other items are typically in sync so consumers can follow.” department and soup aisle. Many retailers will some great weeks for us. We see a lot of lift.” Retailers should use eective point-of- feature them in the front of the store or in Sweet onions can be eectively merchan- purchase materials and signage to showcase other high-trac areas to let shoppers know dised with avocados and tomatoes for Cinco the product’s avor and nutritional bene- the Vidalias are available. de Mayo displays, as well as for promoting ts, which represent an easy sell to shoppers “ere are all kinds of dierent areas you with proteins like grilled fajitas. NOA’s Reddin looking to prepare tasteful food absent of salt can place them depending on the time of the recently visited a produce department display and cholesterol. Proper merchandising includes year,” says Bland Farms’ Bland. is spring, promoting sweet onions and bell peppers with large and attractive displays promoting the Bland Farms plans to oer $1 o coupons for fajita foil packets. Signage encouraged shop- product with usage tips, recipes and nutrition Vidalia onion bags when shoppers purchase pers to visit the meat department for their details in the display and on the packaging. its processed Vidalia chips and petals. In the favorite protein. Displays provided information “is helps retailers increase sales,” says Marty fall, Bland Farms plans to provide bar codes on how to easily prepare fajitas and helped Kamer, president of Keystone Fruit Marketing for bins merchandising sweet onions and sweet steer clueless shoppers on what to make for in Greencastle, PA, and a division of Progres- potatoes. After shoppers scan the codes, they dinner. While erecting such displays requires sive Produce LLC, in Los Angeles. “Sweet will be taken to a website providing recipes to investment in time and logistics, it does pay o. onion usage is very diverse and cross-mer- show them how to prepare the two products. “Cross-merchandising is critical,” says Reddin. chandising opportunities are limitless,” he says. Shoppers can scan quick-response codes “Retailers can do a lot that can be helpful to “Many retailers strive to take advantage of Peri & Sons axes to its bags and learn more consumers, leading them and making some cross-merchandising by strategically placing about the product. “If there’s any group that suggestions through cross-merchandising.” onions and products that can be utilized with does its research and looks-up things, it’s the Promoting grapefruit, radishes, salads, sweet onions. ” Millennials. ey want to know more about smaller potatoes and barbecue sauces and other Sweet onions can be promoted with prod- sustainability, clean and safe products, and items with sweet onions can also increase sales. ucts in and out of the department, including they want to see the farms. We try to support Onions Etc.’s Kelso has noticed a practice that steaks, burgers and kabobs. ey are also ideal retailers with a lot of information,” says Gibson. involves developing state-specic merchan- as an ingredient in fresh fruit baskets. As they didn’t grow up in the kitchen or dising areas within stores. A produce depart- e key to merchandising sweet onions is with home cooking, Millennials need to be ment, for example, may construct a “Prod- distinguishing them from other storage onions. educated on sweet onions. “We need to get ucts From Georgia” section featuring sweet “Retail produce people are busy, but it’s really them to understand sweet onions and where onions along with other Georgia products important for sweet onions to be called-out,” they can use them in their recipes, as well like sweet corn and green beans. Such displays says Teri Gibson, director of marketing and as how they can use them,” says Generation allow shoppers to experience California- or customer relations for grower-shipper Peri & Farms’ Stanley. “ey like ready-to-eat meals, Arizona-themed meals and stores experience Sons Farms Inc., in Yerington, NV. “It’s critical like Blue Apron. We have to lead them a little increased sales.
74 / APRIL 2017 / PRODUCE BUSINESS ETHNIC FACTOR Retailers should also understand how ethnic groups in uence purchasing. e United States is experiencing population increases from India, the Middle East, and South Africa and growing Asian and Hispanic cultures, many who are heavy onion consumers. Indians, for example, consume up to ve times more onions than conventional American shoppers. “We really suggest retailers value promoting onions because it will bring in new customers or will be active warfare in bringing those people in with your price and quality,” says Kelso. As commodities ght for produce depart- ment space, a challenge is persuading depart- ment managers to properly value sweet onions. Strong promotions in large displays can range from 59 cents a pound up to $1.29 a pound, depending on region. “Build big, nice waterfall displays, as long as the prices match,” says Kelso. “Don’t put up a big display and try to sell them for $2.99 a pound and expect them to ow out of the store. e displays must match the price, which also has to match variety, quality and color breaks.” Kelso suggests merchandisers watch sales numbers, discuss possible deciencies with suppliers and solicit supplier ideas for increasing sales, and talk with them about new products and merchandising eorts. To prevent sloppy-appearing displays, retailers should work to keep them free of debris by clipping stems and minimizing the onions’ “rough look,” particularly those fresh from the eld, says Potandon’s Schwartz. Department workers must understand sweet onions are more delicate than conventional onions and therefore require more handling. e industry does a good job educating buyers about sweet onions’ dierences. “When the Texas 1015s began shipping, most retailers knew about them because the Texas shippers shipping Mexican sweet onions had been promoting the Texas product during the winter,” says Schwartz. “Retailers need to strike while the iron is hot. If you’re on the East Coast and you don’t have a prominent department location and big signs calling attention to the Vidalias, you’re really missing a sales oppor- tunity.” Likewise, Pacic Northwest retailers need the same urgency in promoting Walla Walla sweets. Sweet onions oer plenty of opportunity for increased movement and sales. rough cross-merchandising programs, stores expe- rience increased sales of onions and other products within and outside the produce department. pb
PRODUCE BUSINESS / APRIL 2017 / 75 fresh-cut marketing packaging Fresh-Cut Packaging: Now And In e Future
PHOTO COURTESY OF INLINE PLASTICS AND MANNPACKING
What do executives need to nology and food safety, has a more in-depth Plastics Corp., which designs and manufac- know? What should they look explanation for what he refers to as modi ed tures clamshells and two-piece packaging. e for in the coming years? atmosphere packaging. “Almost always, you’re company is based in Shelton, CT. “ese can be packaging something that’s inert,” he says. time-stressed parents who want to grab some- “It just sits there. With produce, it’s alive and thing healthy for themselves or their family, as BY SOPHIA MCDONALD breathing. It breathes in oxygen and gives o well as Millennials, who often embrace four carbon dioxide. Once you seal the bag, the to ve smaller meals during the day, which he fresh-cut packaging rev- atmosphere begins to change; and by de ni- translates to more snacking occasions.” olution is most noticeable tion, you’re in a modi ed atmosphere package. in bagged salads, where the e trick with modi ed atmosphere packaging STEAMABLE PACKAGING moisture-controlled plastic is designing a package around that breathable A fresh-cut packaging type that’s been bags created a whole new cat- produce that achieves an optimal modi ed around for a while but is getting more popular egory. However, it’s since moved into many atmosphere with steady conditions that extend is steamable packaging. “As ready-to-eat foods additional sections of the produce depart- the shelf life.” get more popular, consumers are ocking to ment.T What do executives need to know According to Brandenburg, a good modi- vegetables that can be steamed in the pack- about it? And what does the future of fresh- ed atmosphere package will do three things. aging,” says Shafer. at can include cut vegeta- cut packaging look like? “By reducing the oxygen, you put the produce bles, such as broccoli orets or green beans, or Jacob Shafer, senior communications to sleep. You slow down its physiologic proper- whole foods like microwavable sweet potatoes. specialist with Mann Packing, a Salinas, ties, and that extends the shelf life. By getting Stores that want to create their own steam- CA-based provider of fresh and ready- the oxygen down below 3 percent, you reduce able vegetable packets should take care to select to-use fresh-cut vegetables, provides a basic enzymatic browning reactions or ‘pinking.’ By the right type of packaging. “You want the definition: “Fresh-cut packaging allows increasing the carbon dioxide in the package, container to be able to sustain the heat so it manufacturers to sustain product quality you also slow down the growth of spoilage doesn’t melt all over the product,” says Bran- and provide consumers with a fresh expe- bacteria, as well as yeast and mold.” denburg. rience without the use of preservatives.” “e trend toward fresh-cut packaging is Jerey Brandenburg, president of the JSB in response to the increase in demand of grab- ANTIFOGGING PROPERTIES Group, a Green eld, MA-based consulting and-go eating patterns among consumers,” says Fogging occurs when water beads up on the rm specializing in package design/tech- Jack Tilley, market research manager at Inline front of the bag. It doesn’t aect the quality of
76 / APRIL 2017 / PRODUCE BUSINESS the produce at all. However, “a fogged container “The pouch bags make “e pouch bags make it a lot easier to reduces the merchandising value of the product it a lot easier to display display products on the shelf,” says Rick Rutte, because consumers can’t judge the quality of produce director for North State Grocery, the food contents,” says Tilley. products on the shelf. which operates stores under the names Holiday To create anti-fogging bags, manufacturers Markets and SAVMOR, and is headquartered typically coat the material with a chemical from For grapes and cherries, in Cottonwood, CA. “For grapes and cherries, the surfactant family. e chemical changes it also helps as a safety it also helps as a safety issue. You don’t have the surface tension of the water. “It’s the same loose grapes rolling all over the place like you idea as wax on a car,” says Brandenburg. “e issue. You don’t have did years ago.” chemical makes the water lie at instead of loose grapes rolling all e other advantage to the pouch bags is beading so you can still see through it.” the ability to print brand names and marketing over the place like you messages on them. “We do really well with MICRO PERFORATED BAGS Welch’s grapes when we have California grapes Besides using bags with an anti-fogging did years ago.” in season,” says Rutte. “at Welch’s label is agent, Tilley says a good way to deal with obviously well-known. It gives that sense of fogging issues is to oer containers with — Rick Rutte, North State Grocery freshness and quality. Companies are also able venting to release outgassing from produce to provide recipes or health information on the outside the container. back of the bag.” Another option for venting is micro perfo- “e quality of the graphics, the message ration. “Micro perforated bags have tiny holes if the produce gets warm, the membrane allows that’s getting across and the brand management not visible to the eye that allow gases to move more gas to move in and out.” is becoming a big part of produce packaging,” in and out,” says Brandenburg. “ey’ve been says Brandenburg. “It’s all about dierentiating around for a while, but they’re getting much PACKAGING GEOMETRY yourself from your competition and having it more accurate.” Brandenburg calls fresh-cut packaging in pop at the retailer so it’s noticeable.” Being A newer technology is bags with breathable the form of stand-up pouches “the most inno- able to print on packaging also helps from membranes. “ey can adjust their breathability vative thing that’s come along in a while. It’s a regulatory standpoint, he adds. Printable with the temperature,” says Brandenburg. “So not the packaging per se, it’s the new geometry.” packaging can be used to share details such
PRODUCE BUSINESS / APRIL 2017 / 77 fresh-cut marketing packaging as country of origin, allergens and food safety information.
FRUIT IN FRESHCUT PACKAGING Because bagged salads have been such a hit, people tend to think of fresh-cut pack- ag-ing as a way to manage vegetables. But placing fruit in modi ed atmosphere pack- aging is a big part of the market segment. “You’re going to see more and more different types of produce items in packages, and in different configurations — shredded, chopped, sliced, etc.”
— Jeffrey Brandenburg, JSB Group UNIQUELY CUT VEGETABLES says Stefano Cavallo, global segment lead for As gluten-free, Paleo and other diets gain lms and cards at NatureWorks. “e starch in popularity, many shoppers are looking to is fermented using advanced and patented “Fruit tends to be the strongest in-house substitute vegetables where they used to use processes and eventually polymerized into category we do,” says Je Fairchild, produce carbohydrates. Produce departments can cash Ingeo plastic pellets.” ose pellets are then director for New Seasons Market, a 20-store in on this trend by selling spiralized vegeta- sold to converters and turned into the materials chain headquartered in Portland, OR. “at bles, cauliower “rice” and similar products in produce managers see on their shelves. stands in contrast to most vegetables. We’ve fresh-cut packaging. “Ingeo lms use 50 percent less non-re- found it’s a good skinny category,” he says. “Spiralized vegetables like zucchini and newable energy and results in 75 percent less “We haven’t found that the sales continue to sweet potatoes have done pretty well,” says greenhouse gases to manufacture than lms ramp up.” Fairchild. “ose have a pretty strong pull made from non-renewable fossil carbon,” says Rutte agrees the fruit category is an right now.” Cavallo. important one. North State Grocery has been “You’re going to see more and more e company is also working to develop a purchasing fresh-cut packaged fruit for a year dierent types of produce items in packages, lm that may be as much as 50 percent thinner now and the program has grown. “I see a lot of and in dierent con gurations — shredded, than current polypropylene lm. “inner lm people buying it for lunches,” he says. chopped, sliced, etc.,” says Brandenburg. “ere contributes to more sustainable packaging e store doesn’t add its own marketing will be more and more blends, even whole through less material sourced,” says Cavallo. materials to the packages, but it does have a meals where you make a mixture of produce, “In terms of lm used for commodity products, marketing program. “If there’s something I protein and carbohydrates. We’ve seen some consumers care about freshness, not neces- want to promote, I’ll have in-store signage in of that, but I think you’ll see more of it. at’s sarily what those lms are made of,” he adds. the refrigerator case,” he says. “e signage on something that’s been very common in Europe “For dierentiated high-end organic products, the doors draws attention.” for a long time.” which command higher prices for product and package, the fact that they are packaged SUSTAINABLE PACKAGING using renewably sourced plastic helps generate Another area of growing consumer satisfaction.” interest is sustainable packaging. JSB Group’s Brandenburg sees demand for “Shoppers are very conscious of eco-friendly packaging growing. He also sees it,” says Rutte, especially his more interest in using science to deliver pack- organic customers. aging that ts with other consumer demands, Some eco-friendly including products with antimicrobial prop- fresh-cut packaging does erties. exist already. Nature- No matter what type of bag or box a Works LLC, Minnetonka, product is packaged in, the best way to keep MN, manufactures lm and its contents fresh is to store correctly. “at sheets for rigid packaging aects shelf life more than anything else,” says under a product line called Ingeo. Brandenburg. Generally, bags and containers PHOTO COURTESY OF NATURE WORK PACKAGING “Plants produce sugar in the form of starch,” should be kept at less than 5 degrees C. pb
78 / APRIL 2017 / PRODUCE BUSINESS PMA.indd 1 3/16/17 4:33 PM MILWAUKEE MARKET PROFILE Traditional Town Meets 21st Century
D . By Bob Johnson
ack Marchese recalls the time not long ago when the Milwaukee wholesale produce business was concentrated in the late 19th century three-story Commis- sion Row building on Broadway, in the Jcity’s historic ird Ward. “When I was a kid, I would go in the truck with my father to Commission Row, when Milwaukee still had a Commission Row,” says Marchese, vice president of Marchese Inc., Milwaukee. “He would pick up 30 cases of hothouse tomatoes, 20 cases of peaches, 10 cases of lettuce and cases of bananas.” Marchese, now 54, recalls going with his father in that truck, loaded with produce, to the small local grocers that served the nearby neighborhood. “He had a route on the south side of Milwaukee, which was mostly small Polish stores,” he says. “He’d go in, ask the owner what he wanted, and go out to the truck, bring it in, get paid and be done.” Produce wholesalers have long since left the Commission Row building, which has been rehabilitated and now houses restaurants and boutiques. John and Anne Nehring, owners of numerous grocery outlets in the city, revived the Commission Row name four years ago when they opened a produce outlet on Water Street, a few blocks from the old wholesale market, to help alleviate the shortage of fresh fruit and vegetable vendors serving the neighborhood. But the business of produce in Milwaukee has changed in ways familiar to people in the industry in most cities in the country — orders have gone high-tech, a larger Hispanic popula- tion has created demand for a di¦erent mix of fruits and vegetables, middle-class consumers have come to expect to see organic o¦erings, and concern about food safety is everywhere.
80 / APRIL 2017 / PRODUCE BUSINESS Left to right: Ronnie Morrison, Angelica DeJesus, Mike Conti, Jack Merchese, Branden Wandersee, Josh Webber, Dave Olzerwicz, Brian Waldron, John Haas, Josh Green and Patrick Doke of Marchese Inc., Milwaukee
MODERN WAY OF PEDDLING Milwaukee produce is di erent then it was “WE STILL SELL TO Some of them have concentrated on a when Marchese went store to store with his THE LARGE STORES. smaller number of large retailers in response father peddling the produce in the back of to consolidation. that truck. FOR THE ONES WITH “ere are fewer and fewer customers; “Now we have two semis and 55 trucks,” the retail is more consolidated,” says Jerry says Marchese, thinking of the extraordinary DISTRIBUTION CEN- Kowaleski, president of Kleen-Pak Foods Inc., growth he has seen in the family’s wholesale TERS, WE MAINLY Milwaukee. “ere used to be Cole’s, Century, produce business. “We took orders over the Fleming, SuperValu. ere are fewer places phone for a long time. Now it’s gone to outside DO FILL-INS WHEN now. Roundy’s and Piggly Wiggly are our two sales people with email or fax orders. e phone THEY COME UP SHORT biggest customers. Our main item is onions; systems can take 30 calls at a time.” we also rebag some spinach, that’s our second Modern technology has brought the area ON SOMETHING.” item. We supply Roundy’s with onions. We do even closer to the global produce supply chain. — JAMES KIRCHEN, TOPIC BANANA CO. private labels on the bags. For Piggly Wiggly, “Everybody’s a lot smarter; the analytics we rebag onions, but we don’t do labels.” are alive,” says Paul Schulz, director of sales In addition, Kleen-Pak Foods services and marketing at Maglio Co., Milwaukee. intermediaries that deliver to individual stores “Logistics and technology vastly improved “We’re the major player here in town; we and restaurants. the capacity out of Mexico; that product has manage our own logistics,” says Schulz. “We Some wholesalers are able to still serve a become much better than it was. We built a are a wholesaler. Chicago still has a terminal wide range of markets, including chains with facility in McAllen, TX, and have relationships market and Milwaukee used to. We moved o distribution centers, by specializing in a small there.” Commission Row in 1998 and were followed number of produce items. Maglio’s is a fth-generation wholesaler by Jennaro and Marchese.” “Our business has been increasing,” says that started in Chicago in 1902, opened a Modernity has also meant that in Tom Gianciola, president of Pre-Pac Produce Milwaukee facility in the 1940s, and has since Milwaukee, as elsewhere, the major super- Distributors Inc., Milwaukee. “I pack red and expanded to Boston and, most recently, opened markets receive almost all of their fruits and Yukon gold potatoes. I sell to both restaurants a 30,000 square-foot repack and fresh-cut vegetables at their own distribution centers, and mainstream markets. It’s a regular deal facility in McAllen, TX. rather than wholesalers. with the markets; it’s not just lling the gaps. “We still get most of our tomatoes out of “We still sell to the large stores,” says James I get the potatoes from all over, as far away as Florida,” says Schulz. “Florida is still our rst Kirchen, sales representative for Topic Banana California if that’s where they’re in season. It choice for U.S. grown tomatoes. We get them Co., Milwaukee. “For the ones with distribu- seems like the Yukon golds are becoming more from Florida, then California and Mexico. We tion centers, we mainly do ll-ins when they popular. My number of customers is about get tomatoes, peppers, squash and zucchini. come up short on something. ere are so many the same, but all of my customers have been from Mexico. Limes are a huge product out independents that do not have distribution increasing the amount of produce they want. of Mexico.” centers, and we sell to them.” is has been happening the past two years e end of the city’s terminal market made Wholesalers have developed a wide range or so; maybe the population of Milwaukee is each wholesaler even more responsible for of strategies in order to stay in business in a increasing a little.” his or her own logistics in the global produce produce world dominated by large chains that Other wholesalers have adapted by shifting supply system. have their own distribution centers. the focus of their business toward various food-
PRODUCE BUSINESS / APRIL 2017 / 81 MILWAUKEE MARKET PROFILE service outlets. “We do a little with large supermarkets, but we’re mostly foodservice,” says Marchese. “We do both bigger and smaller chain restau- rants, and independents. We do schools and hospitals.” Still, other wholesalers nd there are still enough smaller chains in the area to sustain their trade. “We’re in Kenosha, and we go into Wisconsin, Illinois, and a little into Minne- sota and Indiana,” says Bill Dietz Jr., president of Heartland Produce Company, Kenosha, WI. “Milwaukee seems to be a good market. You have Sendik’s Food Market, Pick ‘n Save, Woodman’s Food Market and some indepen- dents. We sell to everybody.” Heartland, however, expects change and Paying homage to Milwauke’s history, Commission Row sells fresh fruits and vegetables at the Milwaukee stays in business by being prepared to replace Public Market. lost customers with new ones. “You do get consolidation among retailers a gathering place for Milwaukee’s inux of trative assistant at El Rey Mexican Products, — some close, and some open,” says Dietz. “We immigrant workers from Mexico. Villareal’s Milwaukee. “ ey get them from the whole- opened in 1989, and we have a few customers sons were able in 1978 to expand that store salers. Our customers are 100 percent Hispanic. who have been with us since the beginning.” to include many of the fruits and vegetables Our Hispanic population is growing. My their immigrant customers missed from home. parents came here in 1978, and this store was A CHANGING POPULATION “ ey wanted to oer products that would opened at that time because many Hispanics In the 1960s, Octavio Villareal opened make them comfortable, that were what they’ve were coming to Milwaukee.” a small corner grocery that quickly became grown up with,” says Sonia Villareal, adminis- As immigrants continue arriving from
82 / APRIL 2017 / PRODUCE BUSINESS the past 10 years or so,” says Marchese. “We’re seeing a lot more in the root vegetables, and dierent varieties of leafy greens. We have Mann Packing’s Burgundy Honey Gem lettuce in the spring; we’ve got Tanimura & Antle’s artisan lettuces. We see value-added produce becoming more and more important.” Wholesalers are even taking the initiative to help improve shelf stability of value-added produce. “Sam Maglio developed a bag that extends the shelf life of quartered watermelon,” says Schulz. “It’s a gusseted bag.” Milwaukee wholesalers are keenly aware modern shoppers have also come to expect the highest standards of food safety, and have prompted the development of regulations to ensure it. Above: The historic Third Ward, in the Commission “In the past 10 years the biggest change Row area on Broadway, was a hub for Milwaukee’s produce business. Right: Present-day view of the has been food safety and traceability of the Third Ward. produce,” says Marchese. “We like to stay on the cutting edge with third-party audits.” Part of staying on the cutting edge at PHOTO ABOVE LEFT COURTESY OF THE ITALIAN COMMUNITY virtually every corner of Latin America, CENTER/MILWAUKEE PUBLIC MARKET; PHOTOS ON PREVIOUS PAGE Marchese is having a full-time food safety produce sales at El Rey have steadily increased. AND ABOVE PHOTO COURTESY OF MIKWAUKEE PUBLIC MARKET specialist on sta. “Business is increasing little by little,” says “I was trained at the Charles Deibel Lab,” Villareal. “A little bit of everything is coming says Brian Waldron, HACCP manager at to Milwaukee — Puerto Ricans, Dominicans, “BUSINESS IS INCREAS- Marchese. “I am certied for HACCP. Not Mexicans, Argentineans and Cubans.” ING LITTLE BY LITTLE. too many wholesalers have their own HACCP ough not as fast as Los Angeles, New manager.” York or nearby Chicago, Milwaukee is experi- A LITTLE BIT OF EVERY- ere is a payo to making such a large and encing an ethnic change, and, with it, a change THING IS COMING TO tangible commitment to the highest possible in what consumers want in their mix of fruits food safety standards. and vegetables. MILWAUKEE — PUERTO “We can show customers our audits from “ere’s denitely more ethnic shoppers Primus, and they can see we do more than is than there were,” says Heartland’s Dietz. “We RICANS, DOMINICANS, required,” says Waldron. “I write our program get more calls for mangos, avocados and Roma MEXICANS, ARGENTIN- and monitor it. We monitor the coolers, how tomatoes.” we receive the produce and how we ship it. Other wholesalers with their roots in an EANS AND CUBANS.” We are also monitored by Primus. It helps us
older Milwaukee have also noticed and adapted — SONIA VILLAREAL, EL REY MEXICAN PRODUCTS with our customers.” to the change. Some people in the business, however, is city of 600,000 on the shores of Lake wonder how much of the interest in organic Michigan continues to grow more diverse, as produce is not really about the fruits and more than 100,000 Hispanics have joined the better quality, and the economics of scale have vegetables but, instead, about delivering the roughly equal number of African-American made it more aordable. e feedback I get subliminal message that this store oers quality. and Anglo residents. from retailers is if the price of organic is close “We see a little more organic,” says Topic “It’s not a huge population; it’s not like to conventional, the consumers prefer to buy Banana’s Kirchen. “It doesn’t seem to sell all Chicago,” says Marchese. “But with the organic.” that well, but the retailers have to have it.” Hispanics, we have more mixed peppers.” e interest in organic fruits and vegetables But Kirchen has also noticed another, very is part of a broader interest in value-added, dierent, trend that is a holdover from the MODERN CONSUMERS quality produce. recent lingering recession. Wholesalers are noticing and responding “Organic is something that continues to be “People are looking to do specials — to the trend of young and modestly upscale desired by the young users,” asserts Maglio’s anything to get the price down,” he says. “ey Milwaukee residents looking for organic Schulz. “Value-added is in demand, too. People started in 2007 and 2008 with the recession, produce. are looking for quality products.” and they are still doing it. People get into a “ere’s more of an emphasis on organic,” is trend is evidenced in greater demand routine. People are looking for larger packs. says Dietz. “It’s been growing in the past 10 for some of the more interesting leafy salad Instead of the 1-pound strawberries, they want years or more. You have more large growers greens. 2 pounds. Instead of loose grapefruit, they want and shippers with organic. ey’re producing “We’ve been selling more leafy greens in 5-pound bags.” pb
PRODUCE BUSINESS / APRIL 2017 / 83 dried fruits & nuts nuts The Skinny On Nuts
Good for you, good for become more aware of the health benets. saturated fat. “Nearly two decades of research produce sales. e best ways for produce departments to shows eating almonds can help support a cash in on this trend is to learn more about healthy heart and cholesterol levels,” says BY SOPHIA MCDONALD the health benets of nuts, educate consumers Spence. about those benets and come up with creative eis Markets, a super- promotional campaigns. WALNUTS market chain based Walnuts have made headlines in recent in Sunbury, PA, with PISTACHIOS years for being high in alpha-linolenic acid, a more than 200 stores Pistachios may not be the rst nut that type of omega-3 fatty acid. ey’re also high along the Atlantic comes to mind when identifying healthy prod- in protein, ber and magnesium. Research Coast, uses the popular term “Superfood” to ucts, but more than 30 studies have shown suggests eating walnuts can have a positive promote healthy products throughout stores. pistachios are a strategic food for weight loss eect on heart health and cognitive and phys- SinceW almonds, walnuts and pistachios are or maintenance. “ere have been a number of ical function. e compounds in walnuts may now known to t within that category, Weis’s larger epidemiological studies and they don’t help ght cancer, particularly breast, colorectal produce departments are including these nd any association between pistachio or nut and prostate types. It’s also thought that eating tasty morsels into this highly successful cam- intake and a higher risk of weight gain or walnuts may help ght type 2 diabetes and paign. obesity,” says Dr. Arianna Carughi, a science other metabolic conditions. “e idea came up two years ago and our advisor for American Pistachio Growers, a senior management team really latched onto trade association based in Fresno, CA. PECANS it,” says Kathryn Long, RDN and LDN, the Pistachios are also high in potassium, an- Pecans are high in manganese, copper, thi- company’s healthy living coordinator. “We tioxidants and carotenoids. Eating them on a amine, magnesium, zinc and phosphorous. e picked 25 foods throughout the store that we regular basis can have a positive aect on blood manganese makes them benecial for obese thought were everyday foods that were excep- pressure, cholesterol levels and eye health. people who are trying to lose weight; studies tionally healthy. ere’s a sign by each that says, have shown the nutrient helps people regulate for example, ‘Almonds are a Superfood.’ Each ALMONDS blood sugar and insulin levels. e zinc makes sign gives a little bit of the nutrition prole “When compared ounce for ounce, almonds them good for skin. e high levels of antiox- and suggestions for dierent ways people can are the tree nut highest in six essential nutri- idants in pecans aid in reducing inammation incorporate the product into their diet rather ents: protein, ber, calcium, vitamin E, ribo- within the body, and the “healthy” fats in the than just eating them. On pistachios, for ex- avin and niacin,” says Molly Spence, director nuts make them good for controlling blood ample, we say they’re great for snacking or for of North America for the Almond Board of pressure, lowering the risk of heart disease and using as a crust for chicken and sh.” California. e marketing, research and quality maintaining good mental function. e program has had a very positive impact control organization has its headquarters in on sales. “Almonds, walnuts and pistachios Modesto, CA. “Just one ounce of almonds is CASHEWS, BRAZIL NUTS, HAZELNUTS showed up in the Top 10 items by how much an excellent source of magnesium and a source “Cashews are a good source of protein, they had increased in sales from the year prior,” of potassium, phosphorus and iron.” ber, iron, copper, phosphorus, manganese, says Long. Like other nuts, almonds are high in magnesium and zinc,” says Chad Hartman, Nut sales continue to rise as consumers “healthy” monounsaturated fat and low in director of marketing for Tropical Foods, a
84 / APRIL 2017 / PRODUCE BUSINESS Charlotte, NC-based manufacturer and im- PEANUTS in the rst place, so the learning curve is less porter/packager of nuts, other snacks and spe- Peanuts are a legume, not a nut. ey oer steep.” cialty foods. “ey’ve been associated with some of the benets of both, including being “Pistachios do best when sold in produce,” reducing triglyceride levels, which can help high in protein and ber. ey’re packed with says Judy Hirigoyen, vice president of global diabetics and the heart.” “healthy” fats like monounsaturated fat, as well marketing for American Pistachio Growers. Brazil nuts also have many health benets. as vitamin A, folate and niacin. Recent studies “When they’re in the snack aisle, they’re guilty “Brazil nuts are the highest natural source of into resveratrol, an antioxidant that’s found in by association. If they’re merchandised in the selenium,” says Hartman. “ey’re high in peanuts and other foods such as grapes and produce department alongside other healthy manganese, magnesium and copper. ey’re dark chocolate, show consuming peanuts can products, they’re considered healthy.” also a great source of plant sterols and avo- help lower the risk of stroke, heart disease, “We’ve seen more supermarket chains and noids, and are tied to a healthy heart and liver.” some cancers and Alzheimer’s. grocery stores include health messaging around Hazelnuts have more folate than any other nuts,” says Spence. “e produce department nut. ey also have the highest level of proan- PROMOTE HEALTH BENEFITS is a good place to highlight ingredients that thocyanidins, a class of compounds that may ere are some good reasons to push the support heart health or are friendly to specic reduce the risk of blood clotting and urinary health benets of nuts in the produce depart- diets, including gluten-free, Paleo, non-dairy tract infections. Besides being high in ber ment. “Produce departments have an edge and exitarian.” Since produce carries many and protein like all other nuts, they provide when promoting nuts,” says Hartman. “Con- other items consumers are looking for, it makes a signicant dose of manganese and copper. sumers have knowledge of nuts being healthy sense to include nuts along with fruits and vegetables. PROMOTIONAL TIPS As was highlighted in the Weis Market example, working with dietitians can be a pow- Tropical Foods’ Chad Hartman, director about nuts and how beneficial they are; erful way to share the health benets of nuts of marketing, is a fan of sharing recipes even more than three or four years ago with consumers. and nut information with shoppers.“I when we started,” he adds. Between that “e California Walnut Commission re- believe simple sign displays near the and the company’s educational efforts, cently wrapped up a partnership with 12 gro- nuts could make a significant impact,” sales of packaged nuts have increased cery chains across the country called I Heart he says. “Something along the lines of, 10 to 12 percent in the last three years. Walnuts,” says Jennifer Olmstead, marketing ‘Did you know Brazil nuts are the highest General nut sales are up three to five director for domestic public relations. e com- source of natural selenium?’ would help percent in the same time period. mission, which represents California walnut the cause. Simple information cards Another option for pushing the health growers and handlers, is based in Folsom, CA. that consumers could take showing the benefits of nuts is to display them next to “e program consisted of in-store and point multiple healthy attributes of nuts would complementary items, such as salads or -of-sale signage, ad placements, sampling be beneficial. To take it a step further, once fruit. “Merchandising walnuts next to other events and walnut recipe demonstrations at you tell consumers about the increased nutritious whole foods in the produce multiple chain locations. e results of the health benefits, give them a recipe card so department encourages the cross-pro- program showed a signicant uptick in year- they know how to apply the knowledge.” motion of multiple goods,” says Jennifer over-year sales from individual grocery stores Ali Moezzi, vice president of produce for Olmstead, marketing director for domestic specically. Northgate Gonzáles Markets, which has 30 public relations for the California Walnut “What made this program unique was our stores in Los Angeles, San Diego and Orange Commission. partnership with the supermarket registered County and is headquartered in Anaheim, While meal options may be the primary dietitians who worked at these chains,” says CA, says his company communicates catalyst to bring most consumers to Olmstead. “ey helped us educate customers the health benefits of nuts with consumers produce, don’t forget about the snack about the versatility and health benets of through advertisements. They also have market. “In a recent study, consumers walnuts. For example, we collaborated with a a campaign to educate consumers about listed apples and almonds as the Top chain to do a series of cooking demonstrations the health benefits of nuts — but not one Two foods they think of as nutritious led by a chef and registered dietitian. We found the chain is carrying out by itself. snacks,” says Molly Spence, director of this to be particularly educational for custom- “We really let the vendor take the lead North America for the Almond Board of ers because the chef was able to speak to the and talk to people because they have a California. many uses of walnuts in the kitchen and the lot more knowledge than we do,” he says. “Since we know from this data dietitian was able to share information about Their vendor provides display racks and consumers are looking for almonds for the nutrition and health benets of walnuts.” packaged nuts, and can send people to their snack occasions, marketing almonds Weis Markets’ Long has also participated do sampling and demos. by pairing their displays with apples in cooking demonstrations that helped pro- “They can educate people a lot better and other healthful foods like bananas, mote nuts, although in a dierent format. “Our than the produce manager,” says Moezzi. granola or dried fruit, could help increase dietitian team recently started doing Face- “There’s a tendency a lot of times to sales.” Adding educational signage to book Live videos,” she says. “People are more ignore the vendor, but we’re happy to those displays makes it even more likely inclined to watch a short video than read an let them take the lead. shoppers will add nuts to their cart or article.” But blog posts and links to recipes can “I think people are a lot more educated basket. pb also be eective ways to communicate messages about health and cooking to customers. pb
PRODUCE BUSINESS / APRIL 2017 / 85 retail perspective
Tech Versus Networking
BY DON HARRIS
uring conversations with management concerning attendance In the past few years the industry has experienced an influx of at industry trade shows, the question often comes up from personnel from industries outside the produce world, especially from Dmanagement as to why it is necessary to attend in person. The the CPG industry. While this type of infusion of new blood is a good, common reply from the produce person is that it is an opportunity the concern is influxes of this nature will alter the produce business to meet with customers and “network” to improve relationships. into the image of another industry. It seems the newer executives Management counters with the statement there are plenty of ways entering the produce industry are trying to adopt the methodology to communicate with others, including Facebook, Twitter, Snap- from former employers and convert the produce industry. chat and email, that are far cheaper than the cost These disruptors are trying to turn produce of attending these shows in person. As in other into a simple numbers game using figures and matters, management once again demonstrates processes to drive presentation and sales. Common “they just don’t get it!” methods include communications with customers It just so happens the produce industry behaves By establishing via purchase orders, faxes, emails and any other differently than most others. Throughout its a personal method that does not involve personal contact. A history, it has been a truly personal industry where phone call is an extremely rare occurrence from deals are consummated with a simple handshake, relationship with some of these individuals, as they seem to prefer and “your word is your bond.” This arrangement your customer the impersonal approach with customers. They is based on personal relationships between the you begin to build seem to be adverse to any kind of personal contact parties on both sides of the distribution channel. or conversation, and instead rely on the cyber It is this personal-relationship-driven activity that trust between world. This is something that the industry should defines the uniqueness and success of the produce their operation be greatly concerned about and should not allow. food channel. In recent times, it seems the industry and yours. By taking proactive steps to incorporate some is placing a lot of emphasis on speed of communi- of these new technologies, and coupling with cation and the removal of personal relationships. the proven benefits of personal relationships, it I believe this is a mistake and if not rectified, it would ensure the industry’s continued success could lead to turning the produce business as we and growth. know it into a numbers-driven, impersonal activity. It is certainly no Perhaps the veterans in the industry (myself included) did not do a coincidence that the operations at retail and throughout the supply good enough job of mentoring the upcoming generation of leaders on chain that continue to be successful and drive their businesses the benefits of personal relationships that are the foundation of the engage in the cultivation and promotion of personal relationships industry. Regardless of the reason, there is still time to work together with customers. to restore the vital nature of the industry by continuing the emphasis We all recognize the value of these industry gatherings as oppor- on personal exchanges between both sides of any equation and the tunities to meet face-to-face with customers and spend quality time incorporation of new technology to enhance these interactions. discussing mutual relationships. The “networking” time spent at The “old school” veterans and new industry entrants need to work these gatherings is invaluable in the development of these types of together to maintain and nurture the unique nature of the produce relationships. The simple fact more and more of these gatherings are industry to ensure the continued success we have all enjoyed. It may popping up across the country illustrates their value. There is nothing seem old-fashioned to want to maintain our industry’s successful better than discussing business opportunities with your customers growth, as well as identity and function, but to lose its unique and and seeing their eyes light up, or the excitement reflected in their personal characteristics would be a loss we can’t afford. pb voice, at the mention of an opportunity. No email, text or posting can provide such insight. These personal exchanges provide extremely valuable insights into a customer’s needs and wants concerning their Don Harris is a 41-year veteran of the produce industry, with most of that time spent in retail. He worked in every aspect of the industry, from “field-to- business operation. By establishing personal relationships with your fork” in both the conventional and organic arenas. Harris is presently consult- customers, you begin to build trust between their operation and yours. ing and is director of produce for the Chicago-based food charity organization, This has been a well-established formula for success for many years. Feeding America. Comments can be directed to [email protected].
86 / APRIL 2017 / PRODUCE BUSINESS wholesale market
Controlling The Controllable BY ALAN SIGER perating a business is truly like life on a treadmill — no matter bus full of lawyers’ kids?” Imagine a serious outbreak of E. coli or how good the previous month or year was, the meter resets salmonella with the implicated product linked to your facility? Think Oto zero at the beginning of each accounting period. it can’t happen? Think again. Most industries have seasonal peaks and valleys. For example, Most wholesale distributors run a fleet of trucks that are driven the candy and confection folks have Halloween, Valentine’s Day and hundreds of miles a day. There are bound to be a few incidents each Easter; the beer industry has the 4th of July and Labor Day. Likewise, year involving your company’s vehicles, but how do you minimize produce wholesalers look forward to holiday bumps, but it’s never the accidents, while at the same time making sure you’re prepared a sure thing. to deal with a possible tragedy? During a busy season, a produce wholesaler may deal with supply First and foremost, proper training for all your drivers is paramount. issues. Though still faced with the challenge of strategically managing New hires’ competencies should be assessed before putting them on raw materials, other industries face a different set of concerns. Barley the road alone. Don’t assume someone who has a commercial driver’s and cocoa prices may rise because of light crops, license and has passed all the background checks but there will still be plenty of candy and beer to is ready to roll. Institute ongoing training updates be sold when it’s promotion time. In our world, a even for your most experienced employees. We cherry crop can be wiped out by a devastating hail- don’t often think of continuing education for storm, which can result in the virtual elimination Simply put, food drivers and warehouse folks, but it helps to keep of a given product line. safety programs skills sharp and everyone up-to-date on the latest In my 40-plus years of running a wholesale changes in regulations. Consider consulting your produce company, I’ve been through plenty of ups must be the leasing company or equipment supply company, and downs. I’ve seen red-hot markets crash and Number One as they often have training programs at little or burn in a matter of a day or two, and I’ve watched priority of your no cost. as an item you couldn’t give away one week became Simply put, food safety programs must be the the one that everyone’s looking for the next. One organization, as Number One priority of your organization, as there gets used to the occasional wild ride and learns to there is too much is just too much at stake. Consumers have died, never get too excited about the ups, or too upset at stake. companies have been ruined and executives have about the downs. You can’t change a lousy market, gone to prison because of improper handling of but you can fight for a bigger share of the pie. fresh produce. Quit thinking about what you need The last quarter of 2016 into the first part of to do to pass your next audit, and start doing what- 2017 was tough for many produce wholesalers. ever it takes to run a safe operation. Make sure Over-supply, and the resulting price deflation of every member of your organization understands many key commodities, turned a good start to 2016 into a mediocre what his or her role is in maintaining a safe food environment. fiscal year. I spent some time with industry friends this past January, Involve your insurance carrier with corporate safety programs, and one described 2016 as having a 13 to 2 lead in the eighth inning, as no third-party cares more about preventing accidents and elimi- and barely hanging on to win the game. Times like that are never fun, nating claims. Also, consider reviewing your coverage, particularly but you learn to push forward and prepare to take advantage when your liability umbrella — in today’s litigious society, you can never things turn around. have enough coverage. I’ve always tried to focus my energy on things I could change, The wholesale produce business is unique; dealing with a perish- and not waste time or resources on things I could not. Managing able commodity in a fluctuating market keeps operators on their employees, keeping customers satisfied, dealing with banks, inves- toes. An uncertain future means every day is different, and that’s tors and government regulations was always enough to keep my mind what makes it fun to go to work every day. pb off of the things I couldn’t control. The things that kept me up at night weren’t everyday issues like markets or operational problems. Though day-to-day problems can Alan Siger is chairman of Siger Group LLC, offering consulting services be aggravating, and if left unattended, costly, they are not going to in business strategy, logistics and operations to the produce industry. Prior to selling Consumers Produce in 2014, Siger spent more than four decades change your world forever. growing Consumers into a major regional distributor. Active in issues affecting The thought of a catastrophic event is what kept me up at night — the produce industry throughout his career, Siger is a former president of the what happens if one of your trucks runs into the proverbial “school United Fresh Produce Association.
PRODUCE BUSINESS / APRIL 2017 / 87 european market
Where Next For British Produce Post-Brexit? BY JOHN GILES s I write this column, the British government just announced employment of foreign workers is also prevalent. It is estimated that it intends to formally notify the European Union on March 29, up to 40 percent of all labor in this sector is foreign. Anything that A2017, of its intention to exit the EU by invoking Article 50 of makes it more difficult for farming and food companies to find the the European Union’s treaty. right type of labor will not help an industry already under pressure. There are many issues that need to be sorted out, and there is an Post-Brexit will see the opportunity for the British government to initial two-year period in which to do so. Many political commentators develop its own policy regarding the production and use of geneti- say this is too short a period, but the British government insists it is cally modified crops. With very little activity presently, it could take achievable. Time will tell. anywhere from five to seven years for a policy to be developed. Life Post-Brexit has brought attention to the opportunities for British science companies would need to carry out extensive R&D work to companies to develop exports away from Europe. develop crops that are applicable to the growing There are also other key areas, such as the role environment. There may also be concern among of migrant labor, and the opportunity to shape consumer groups and with retailers/leading food- new policy in key agricultural areas. It’s quite an For the U.K., it service companies regarding the use of genetically agenda. seems unlikely modified technology in agriculture. Britain will need to negotiate trade access with that it will be The quick completion of the U.S.-EU trade deal a plethora of new countries, including the United is now open to debate with the election of Donald States. This will clearly take time and resources to exporting huge Trump. To secure a trade deal with the United achieve. And even with good tariff and non-tariff volumes of States, the U.K. will be forced to start the talks all access, the job of building exports to emerging produce. The over again. Being outside of the EU means that the markets in Asia and the Middle East, understanding country could negotiate deals with China, India customer and market culture, as well as the actual country still and Latin America, based on its own priorities. route to market itself, is highly demanding. needs to meet Countries in Latin America and the United States For the U.K., it seems unlikely that it will be its own market might see this as an opportunity to not only supply exporting huge volumes of produce. The country products, but create competition among domestic still needs to import large volumes to meet its own requirements. producers. market requirements. Where the U.K. might be able What’s next for the United Kingdom? The road to see more success is in the provision of technical is unclear. Agricultural policy could begin to focus skills and products, as well as educational/training services — areas upon further moves toward market-oriented policies with lower levels it is inherently strong. Many leading U.K. agricultural and food univer- of support than previously seen. The U.K. Treasury will cover any sities are developing joint ventures in Asia to meet this opportunity. shortfall in payments made under the Common Agricultural Policy While some sectors of the British economy have done well in (CAP) — subsidy and support programs operated by the EU — to terms of exports in the past 10 years, food and drink exports, while farmers, but this is limited to the end of 2020. There are no guaran- growing impressively, are still pretty modest. Total U.K. food and tees what payments will be made thereafter. drink exports are worth around US$15 billion per annum. What we do know is it will be a challenging two years — and more In terms of fresh produce, the U.K. exports approximately US$250 — for the U.K.’s produce sector. As the government starts to show million per annum. These are dwarfed by fresh produce imports into how it will approach exiting the European Union, it is possible to the country that are worth around US$4 billion per annum. Europe assess what some of the outcomes might be. This allows businesses is by far the biggest supplier to the United Kingdom. to begin to plan accordingly, although the next two years will surely The importance of imports and exports to the rest of the EU bring some twists and turns, and will add to a general feeling of only underlines the importance of the U.K. being able to negotiate uncertainty at the macro level in the agri food sector. pb continued favorable access to the European market. One would hope that large produce suppliers to the U.K. from within the EU would want to retain access to the country. Anything that disrupts this trade could have serious consequences for the supply of produce John Giles is divisional director of Promar International, the value chain to the U.K. market. consulting arm of Genus plc, Basingstoke, Hampshire, England. He has worked on fresh produce assignments across the United Kingdom, as well as Another question that begs consideration is who will work the in Latin and North America, Africa, the Middle East, India, China, SE Asia and farms? It is estimated that as much as 65 percent of farm labor in the Oceania. He is also the chair of the Food & Agricultural Group of the Chartered U.K. is from other EU countries. In the food processing sector, the Institute of Marketing. He can be contacted at [email protected].
88 / APRIL 2017 / PRODUCE BUSINESS produce on the menu
Healthy Eating In Restaurants: Barriers And Opportunities
BY AMY MYRDAL MILLER
n mid-February I attended the Sacramento Business Journal Health- When survey respondents were asked what enables them to make care Leadership Forum, where a panel of chief executives of major a healthier choice, many reported their intent is stronger earlier in Ihospitals, insurance companies and managed care organizations the day. This may present opportunities to feature more produce discussed the future of healthcare. Despite the uncertainty created at breakfast, but operators need to pay attention to sensory cues. by all the “repeal and repair/replace” talk in Washington, D.C., this Appealing menu descriptors, beautiful photos of healthy items on group quickly reached consensus on one important issue: if we’re menus and menu boards, nutrition information and enticing aro- going to control healthcare costs in this country, we need to put more mas are all cues that can motivate a diner to make a more healthful emphasis on prevention. choice. The Datassential research shows that Millennials, people As a registered dietitian/nutritionist who works closely with many with incomes greater than $75K and diners eating early in the day major foodservice leaders, I started thinking about ways to shift the (7-9 a.m.) are most likely to be persuaded to eat healthy by menu consumer mindset when it comes to eating healthy in restaurants. language, photos, nutrition data and aroma cues. On average, we eat about 20 percent of our meals in restaurants When asked what the top barriers to eating healthy at a QSR or today; yet we still think of eating out as a “treat.” FCR, the top responses were eating out is a treat, Datassential, a leading foodservice market it’s not a time I want to eat healthy; cost of healthy research firm in Chicago, recently conducted a options; and too few healthy options available. Of consumer study on behalf of members of The Cu- these, the biggest opportunity for menu developers linary Institute of America Healthy Menus R&D is to provide a greater variety of healthy options Collaborative that focused on determining drivers If we are going to featuring fresh ingredients, especially vegetables. and barriers to healthy eating in quick-service and control healthcare But health-seeking diners want more than salads. fast-casual restaurants. Collaborative members Datassential also looked at factors that create include culinary and nutrition professionals from costs in this coun- the perception of healthy. The list includes the top chain restaurants and contract foodservice try, we need to put ability to customize orders, freshly prepared food, companies in the United States. Collectively, Col- more emphasis on and the use of lots of vegetables and lean proteins. laborative members feed more than 100 million Freshness is the Number One cue that something Americans every day. prevention. is healthy, but this can mean fresh produce, as Members of the Collaborative wanted data well as freshly baked bread or fresh, never frozen, to help them identify what could compel their ground beef. customers to more often order a more healthful, What do people who want to eat healthy tend to better-for-you choice. Here’s what they discovered. order at QSRs and FCRs? The top responses were Nearly half of people who eat in a quick-service salads, sushi, soup, bowls and cold sandwiches. restaurant QSR, think McDonald’s, Taco Bell, Subway, Chick-Fil-A All these menu items can prominently feature vegetables. But let’s — at least once a week earn less than $50,000 per year. When they not limit healthy menu innovation to these categories. If we’re going are looking for healthy menu options, they need affordable options. to put more emphasis on prevention in this country, we need to give Their primary reason for choosing a QSR is to satisfy hunger, followed people more opportunities to make a healthy choice. And that choice by getting great-tasting food. Health is not a driver for most people needs to be a competitive choice, one that is more appealing and on visiting a QSR; 40 percent say they go because they have a craving par price-wise with the conventional, less healthful option. for a treat, and they know what they’ll order before they get to the We need to create healthier menu items that meet diners’ tendency restaurant. to think of eating out as a “treat.” Someone else is doing the cooking, Nearly 40 percent of people who eat at a fast-casual restaurant — someone else is doing the dishes and I can feel good knowing I just FCR, think Chipotle, Panera Bread — at least once a week earn less than ate something delicious, as well as healthful. pb $50,000 per year. They too report their primary reason for choosing this style of restaurant is to satisfy hunger and get great-tasting food, Amy Myrdal Miller, MS, RDN, FAND is a farmer’s daughter from North but they are willing to spend slightly more to get food that is perceived Dakota, award-winning dietitian, culinary nutrition expert, known kale hat- er, and founder and president of Farmer’s Daughter Consulting Inc. You to be fresher, better quality and more healthful. Any restaurant that can learn more about her business at farmersdaughterconsulting.com and communicates messages about “freshness” and displays lots of you can follow her insights on food and flavor issues on Twitter @AmyMyrdal- vegetables is perceived to be a better, healthier option. Miller.
PRODUCE BUSINESS / APRIL 2017 / 89 BLAST FROM THE PAST FROM SICILY TO MILWAUKEE . Marchese traces its roots back to 1928, when Vito Marchese Wertz, took over the family business. Like generations before, the arrived in Milwaukee from Trappeto, company was servicing the small stores, VSicily, Italy, at age 18. While working but many were closing because of the im- for the railroad, he sold produce door-to-door pact of supermarkets moving in. To move part-time. “He pushed a cart on Milwaukee’s the business forward, the trio concentrated South Side,” says grandson Salvatore “Sal” on selling to the neighborhood restaurants, Marchese, who is also president of the com- hotels, schools, hospitals, chain stores and pany. “I remember my grandfather telling me other institutions. how much more he enjoyed selling vegetables Today, the third- and fourth-generation than working for the railroad.” business operates from an 80,000-square- In 1934, Marchese purchased his first truck foot building near the Menomonee Valley. as seen in the photo, and took up space in a The company boasts more than 50 refrig- building on Milwaukee’s Commission Row in erated trucks to deliver product in the Mid- the Third Ward — the home of many wholesale west. Seven years ago. the company started grocers. He serviced small mom-and-pop gro- a fresh-cut division called Cut Fresh. It is one cery stores. “My brother and I would ride in of only a handful of wholesalers in the Mil- the truck with our grandfather and our father, waukee area with a full fresh-cut operation. Jack “Jake” in the 1960s,” says Marchese. “We “We’ve come a long way since my grand- went to all the little stores, and it seemed like father started selling door-to-door,” says my grandfather and father knew everybody Jack Marchese, vice president. “So much has in the neighborhoods.” changed, but our family will never forget our In 1985, brothers Sal and Jack, and nephew humble beginnings.” pb
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90 / APRIL 2017 / PRODUCE BUSINESS Peri News.indd 1 3/16/17 4:32 PM Del Monte.indd 1 3/16/17 3:36 PM