Ready to Take on U.S. RETAIL MARKET the No.1 Player in the U.K
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inside... The Pundit Looks At Tesco • OCEAN SPRAY’S LAWSUIT • Canadian Retailers • Tie-Ins • Refrigerated Juice • Pictures From Mexico Regional Profile: Chicago • Fruit Ripening • Latino Consumers • South African Citrus • Fresh Herbs • Organic Fruit • CHERRIES MANGOS • MELON MERCHANDISING • Stone Fruit • Portable Dried Fruit Snacks • Exotic Plants and Flowers MAY 2007 • VOL. 23 • NO. 5 • $9.90 MARKETING • MERCHANDISING • MANAGEMENT • PROCUREMENT TESCO Ready To Take On U.S. RETAIL MARKET The No.1 player in the U.K. retail world is set to launch a major U.S. venture. © 2006 Reader Service # 13 MAY 2007 • VOL. 23 • NO. 5 FEATURES 94 OCEAN SPRAY SUED BY LONGTIME ASSOCIATES . 32 Lawsuit alleges special deals for Costco, H.E. Butt at the expense of Sam’s Club, B.J.’s, and others. Cover photos courtesy of THE CANADIAN RETAIL ENVIRONMENT . 42 Fresh Produce Journal Responding to a diverse and demanding public reveals these supermarkets staying flexible and tuned-in to their customers. COVER STORY TIE-INS PROVIDE INNOVATIVE WAYS TO MOVE PRODUCE . 50 TESCO READY TO TAKE ON Consumers looking for novelty and convenience are U.S. RETAIL MARKET . 18 the target audience for a wide variety of add-on items. The No.1 player in the U.K. retail world is set to launch a major U.S. venture. INDUSTRY POLL: WHAT’S IN STORE FOR THE REFRIGERATED JUICE CATEGORY?. 54 Industry leaders discuss the future of this rapidly expanding category. COMMENTARY DEPARTMENTS OF AGRICULTURE PROMOTE THE INDUSTRY (PART 1) . 75 THE FRUITS OF THOUGHT A sampling of these state agencies shows them as powerful produce industry advocates. Wal-Mart’s Organic Woes. 8 FRUIT RIPENING — A PROVEN SALES BOOSTER . 84 VOICE OF THE INDUSTRY Consumers who purchase tasty and ripe fruit will come back for more. Seven Ways To Attract High-Spending Boomers . 149 MARKETING TO LATINO CONSUMERS . 94 The fastest growing segment of the population has a specific set of needs. RETAIL PERSPECTIVE A Long-Term Outlook . 150 SOUTH AFRICAN CITRUS — A SUMMERTIME TREAT. 100 Imported citrus allows U.S consumers to enjoy the category year-round. EUROPEAN MARKET E.U. Expansion And FRESH HERBS — THE NEWEST PRODUCE DESTINATION. 106 Residue Reduction . 152 Herb volume may not be high, but the category’s contribution to department sales is impressive. IN EVERY ISSUE DEPARTMENTS THE QUIZ . 4 ORGANIC PRODUCE MARKETING Organic Fruit Review. 110 More organic fruit will become available this year, WASHINGTON GRAPEVINE . 6 although suppliers believe demand will still outpace supply. RESEARCH PERSPECTIVE. 10 MERCHANDISING REVIEW Cherries Continue To Captivate Customers. 118 Proper handling, bountiful displays and strong promotions put wings on this fruit. COMMENTS AND ANALYSIS . 11 MERCHANDISING REVIEW Eight Ways To Move Mangos . 126 PRODUCE WATCH . 12 Mainstream U.S. consumers are discovering what the rest of the world already knows — mangos are delicious. INFORMATION SHOWCASE . 153 MERCHANDISING REVIEW Six Ways To Sell More Melons . 132 BLAST FROM THE PAST . 154 Sweet, juicy and luscious melons draw shoppers year-round. FOODSERVICE MARKETING SPECIAL FEATURES Stone Fruit On The Menu . 137 FROM THE PAGES OF Foodservice operators can delight diners by THE PERISHABLE PUNDIT promoting the seasonality, taste and versatility Looking At Tesco . 16 of stone fruit. PICTURES FROM MEXICO. 59 DRIED FRUIT AND NUTS Portability, Longevity And Taste CHICAGO REGIONAL PROFILE Pack Profits In Produce . 142 CHICAGO MARKETPLACE EXPANDS . 59 The great taste and convenience of dried fruit, nuts and trail mixes spur both impulse and repeat sales. CHICAGO RESTAURANT PROFILE DELACOSTA. 72 FLORAL AND FOLIAGE MARKETING Exotic Plants And Flowers. 146 CHICAGO RETAIL PROFILE Consumers looking for cutting-edge exotics are turning CARNICERIAS JIMENEZ, INC. 73 137 to the supermarket floral department. 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. MAY 2007 • PRODUCE BUSINESS 3 PRODUCE QUIZ MAY 2007 • VOL. 23 • NO.5 THIS MONTH’S WINNER: President & Editor-in-Chief • JAMES E. PREVOR Michelle Pollak [email protected] Assistant Purchasing Manager Personalized Distribution Publishing Director • KENNETH L. WHITACRE Systems, Inc. Personalized Distribution Systems, a [email protected] Eight Four, PA distributor for Dublin, OH-based Wendy’s, Editorial Director • LEE SMITH has been in operation for about 25 years. [email protected] Michelle has been with the company for 10 years, having joined fresh out of col- Managing Editor • JAN FIALKOW SPONSORED BY lege. Among the many items she buys are [email protected] all the types of fresh produce that Wendy’s offers as part of its menu options. Special Projects Editor • MIRA SLOTT [email protected] How To Win “The produce business is challenging,” To win the PRODUCE BUSINESS Quiz, the first she says. “There are so many aspects to thing you have to do is enter. The rules are Circulation Manager • KELLY ROSKIN simple: Read through the articles and consider, like Mother Nature and how it [email protected] advertisements in this issue to find the affects the products — this is going to be a very challenging year!” Executive Assistant • FRAN GRUSKIN answers. Fill in the blanks corresponding [email protected] to the questions below, and either cut along Michelle has been reading PRODUCE the dotted line or photocopy the page, and BUSINESS for five or six years. “It provides a European Bureau Chief • ROBERT ZWARTKRUIS send your answers along with a business lot of information. I keep up with the leg- [email protected] card or company letterhead to the address islative news — food safety and keeping listed on the coupon. The winner will be better track of foods. I also look to see if Production Director • DIANA LEVINE chosen by drawing from the responses there are new vendors out there. I want to [email protected] received before the publication of our July know about them before we speak.” issue of PRODUCE BUSINESS. The winner must Production Leader • JACKIE TUCKER agree to submit a color photo to be pub- As the winner of the March quiz, she [email protected] lished in that issue. wins an iPod Nano. Production Department WIN AN IPOD NANO 2ND GENERATION FREDDY PULIDO JOANNA ARMSTRONG 2 GB with 1.5-inch backlit color LCD, anodized aluminum body, holds up to 500 songs/25,000 iPod Nano viewable photos, up to 24 hours playback when fully charged, skip-free playback, Mac Trade Show Coordinator • Jackie LoMonte and Windows compatible, silver finish. [email protected] QUESTIONS FOR THE MAY ISSUE Contributing Editors E. SHAUNN ALDERMAN, CAROL BAREUTHER, 1) What is the street address for Yakima Fresh? __________________________________________ HEATHER CROW, DUANE CRAIG, BOB JOHNSON, TOMMY LEIGHTON, JACQUELINE ROSS LIEBERMAN, ____________________________________________________________________________________ BILL MARTIN, BARBARA ROBISON, KIMBERLY RINKER, TRISHA J. WOOLDRIDGE 2) What is the toll-free number for Flavour Pict? _________________________________________ Advertising ERIC NIEMAN, ASSOCIATE PUBLISHER ____________________________________________________________________________________ [email protected] SANDY LEE 3) What is the Web address for Tanimura & Antle? _______________________________________ [email protected] ____________________________________________________________________________________ BILL MARTIN [email protected] 4) In what city and state is Thermal Technologies located?________________________________ ELLEN ROSENTHAL [email protected] ____________________________________________________________________________________ Send insertion orders, payments, press releases,photos, letters to the editor, etc., to: 5) What is the booth number for Olivia’s Organics?_______________________________________ PRODUCE BUSINESS P.O. Box 810425 Boca Raton, FL 33481-0425 Phone: 561-994-1118 Fax: 561-994-1610 6) What is the fax number for East Coast Brokers and Packers? ____________________________ E-mail: [email protected] ____________________________________________________________________________________ PRODUCE BUSINESS is published by Phoenix Media Network, Inc. This issue was: ❏ Personally addressed to me ❏ Addressed to someone else James E. Prevor, Chairman of the Board P.O. Box 810425 Name __________________________________ Position ____________________________ Boca Raton, FL 33481-0425 Phone: 561-994-1118 Fax: 561-994-1610 Company ____________________________________________________________________ Entire contents © Copyright 2007 Address ______________________________________________________________________ Phoenix Media Network, Inc. All rights reserved. City__________________________________________________________________________ Printed in the U.S.A. Publication Agreement No. 40047928 State ____________________________________ Zip _________________________________ Phone __________________________________ Fax _________________________________ Photocopies of this form are acceptable. Please send answers to: MAY QUIZ PRODUCE BUSINESS • P.O. Box 810425 • Boca Raton, FL 33481-0425 4 PRODUCE BUSINESS • MAY 2007 t Rosemont Farms, we don’t just look at local or A regional standards when establishing the metrics by which we